3. BRIEF HISTORY
• Creation of steam engine automobiles for human
transport in 1769
• In 1807, the first cars powered by an internal
combustion engine running on fuel gas appeared
• Gasoline- or petrol-fuelled internal combustion
engine introduced in 1885
• Cars powered by electric power briefly appeared
at the turn of the 20th century but largely
disappeared from use until the turn of the 21st
century.
4. HISTORY IN INDIA
• The first car ran on India's roads in 1897. Until the 1930s,
cars were imported directly, but in very small numbers
• Hindustan was launched in 1942, longtime competitor
Premier in 1944. They built GM and Fiat products
respectively.
• Following the independence, in 1947, the Government of
India and the private sector launched efforts to create an
automotive component manufacturing industry to supply
to the automobile industry.
• By the 1980s, the automobile market was still dominated
by Hindustan and Premier, who sold superannuated
products in fairly limited number. During the eighties, a
few competitors began to arrive on the scene.
5. FACTORS AFFECTING GROWTH
• Indian Government’s impetus to the industry by
allowing continuous economic liberalization since
1991
• Convergence of Government policies
• Economy’s growth
• People’s purchasing power
• Rise in the industrial and agricultural output
indirectly helps Indian Auto industry leading to
higher GDP , more purchasing power and hence
more sales of vehicles for domestic and commercial
consumption
6. • Growth in the road infrastructure increases
demand for vehicles
Indian highways and roads have improved a
lot in quality and connectivity in the last 20
years.
• Projects like the Golden Quadrilateral aim to
make even remote areas accessible by road
8. EMISSION NORMS
• In tune with international standards to reduce vehicular
pollution, the central government unveiled the
standards titled 'India 2000' in 2000 with later upgraded
guidelines as 'Bharat Stage'. These standards are quite
similar to the more stringent European standards and
have been traditionally implemented in a phased
manner, with the latest upgrade getting implemented in
13 cities and later, in the rest of the nation.
Delhi(NCR), Mumbai, Kolkata, Chennai, Bangalore,
Hyderabad, Ahmedabad, Pune, Surat, Kanpur,
Lucknow, Solapur, and Agra are the 13 cities where
Bharat Stage IV has been imposed while the rest of the
nation is still under Bharat Stage III.
10. SIZE OF THE INDUSTRY
• India's passenger car and commercial vehicle
manufacturing industry is the sixth largest in the
world, with an annual production of more than 3.9
million units in 2011.
• According to recent reports, India overtook Brazil
and became the sixth largest passenger vehicle
producer in the world (beating such old and new
auto makers as Belgium, United Kingdom, Italy,
Canada, Mexico, Russia, Spain, France, Brazil),
grew 16 to 18 per cent to sell around three million
units in the course of 2011-12
11. • As of 2010, India is home to 40 million passenger
vehicles. More than 3.7 million automotive
vehicles were produced in India in 2010 (an
increase of 33.9%), making the country the
second (after China) fastest growing automobile
market in the world in that year
• According to the Society of Indian Automobile
Manufacturers, annual vehicle sales are projected
to increase to 4 million by 2015, no longer 5
million as previously projected.[
12. RECENT TREND IN SALES
• As per data released by the Society of Indian Automobile
Manufacturers ( SIAM), car sales were down by around 7.5
per cent in July, though major players like
MarutiSuzuki,Honda and Hyundai showed some improvement
in August.
• A total of 13.4 m two-wheelers were sold in India in FY12, a
growth of a strong 14% over the previous year. Motorcycles
accounted for 89% of the total two wheelers sold. The growth
came in despite firm interest rates and rise in fuel prices
especially petrol. The scooters (geared & ungeared) improved
their sales considerably, largely due to improved performance
of the ungeared scooter segment. The 3-wheeler segment was,
however, at the receiving end as volumes dipped by 2%.
14. DOMESTIC SALES TREND
Year Year Year Year Year (No. of
vehicles)
CATEGORY 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
Passenger
vehicles
1,549,882 1,552,703 1,951,333 2,501,542 2,618,072 2,686,429
Commerci
al vehicles
490,494 384,194 532,721 684,905 809,532 793,150
3 wheelers 364,781 349,727 440,392 526,024 513,251 538,291
2 wheelers 7,249,278 7,437,619 9,370,951 11,768,910 13,435,769 13,797,7
Grand
Total
9,654,435 9,724,243 12,295,397 15,481,381 17,376,624 17,815,618
15. OPERATIONAL TRENDS
• Increasing urbanization and evolving customer needs to
have greater influence on OEM strategies and buying
behaviour than reactive regulatory policies.
• Increasing risks across value chain position OEMs to
deploy range of mitigation strategies.
• domestic OEMs are strengthening their technological
capabilities through organic and inorganic investments.
• OEMs leverage digital marketing for urban consumers
and non-traditional distribution channels for rural markets
• New entrants using creative business models for mobility,
in-vehicle services and after-sales support
16. • Suppliers to enhance local product development
capabilities, supply chain competency, and flexibility
to meet diverse OEM expectations
• Dealers to focus on managing their capital agenda,
skill development and shifting revenue contribution
of high-margin allied services
17. MARKET STRATEGIES
• Commercial vehicle-maker Ashok Leyland announced a
voluntary retirement scheme (VRS) for its executive
cadre as the market continued to show a downslide. In a
statement issued here, the company said the VRS was
conceived as a response to the continuing slowdown in
the market. The scheme aimed to reduce manpower costs
and align fixed costs to reduced activity levels.
• Hyundai Motor India today launched automatic version of its
compact car Grand i10 in the country, with price starting at Rs
5.64 lakh . The Grand automatic transmission further improves
THE value proposition offering smooth and effortless driving
for customers
18. • Hero MotoCorp, the two-wheeler maker, on Thursday
announced two high-profile appointments in key positions, a
move that closely follows a back-to-back management rejig
the company made in recent times.As part of its endeavour to
beef-up its in-house research & development (R&D) team,
Hero roped in Markus Feichtner, an expert on engines
technology, to head the newly-set up division called "Engine
Design & Development".
• Harley Davidson's recent unveiling of two Dark Custom
motorcycles starting at an estimated 4.5 lakh in the 250-300 cc
segment with competition intensifying in premium vehicles.
The iconic motorcycle maker wants to make and sell these
smaller-engine bikes with extensive local involvement to bring
prices down, said two persons close to the development.
19. • Mahindra & Mahindra today announced the launch of the
entry level 'W4' model of its popular SUV, the XUV500 at a
price of Rs 10.83 lakh . As a customer centric organisation, it
has incorporated customer feedback at every step.
• Country's largest car maker Maruti Suzuki India has topped
customer satisfaction with dealer service for a 14th
consecutive year, rated by market research firm JD Power Asia
Pacific on various factors like service quality, vehicle pick-up,
service adviser, service facility and service initiation.
20. SEASONALITY
• After months of gloom, the Indian automobile
industry saw some hope as the sector saw an 8.7 per
cent growth in September 2013. But the market
continues its apprehensive outlook ahead of the
Indian festive season.
• During the festive season, from October to January,
there is an average increase of 15-20 per cent demand
for automobiles due to discounts on interest rates as
well as the product and upgrades.
• Most companies come up with discounts around
December to offload older models and then jack up
prices in January. This is a seasonal phenomena.
21. • Interest rates may not boost sales during the
festive season despite cut in auto interest loan
by public sector banks because the overall cost
of ownership is high and continues to rise
steadily due to the frequent rise in fuel prices.
• The monsoons will have a positive impact on
agriculture. The sales of tractors and
commercial vehicles are witnessing an
increase due to this.
22. SENSITIVITY TO ECONOMIC
FLUCTUATIONS
• The auto industry, which contributed 7 percent to India’s
gross domestic product and attracted 6.7 percent of the
foreign direct investments in the 2012-13 financial year, has
been hit by sluggish domestic demand as economic growth
slows, and costs of imported auto components rise with the
rupee’s depreciation.
• Bigger manufacturers like Tata Motors have also been
affected because they have foreign currency-denominated
debts.
• Car sales in India have fallen for nine months straight, from
November last year to July, the first time the industry has
seen a decline since the global financial crisis.
23. • Many auto makers are exploring the option of raising prices
to cope with the stress on their margins. But a price
increase, coupled with rising fuel prices and possibly higher
interest rates, does not bode well for companies or
consumers in the upcoming festive season, when sales
usually pick up.
• While the faltering economy is not good news for Indians, a
weak rupee is not all bad news, even for the automobile
industry, because it makes cars and auto parts produced in
India cheaper when sold in overseas markets.
• Industry sentiment is at an all-time low, with underutilized
capacity, production cuts, a slowing down of expansion
plans and [more recently] layoffs.
• India has one of the lowest automobile-penetration in the
world according to the organization, and a huge potential
domestic market and rising disposable incomes may save
the sector.
35. AUTOMOBILE INDUSTRY
REGULATIONS IN INDIA
• The Indian automobile industry is the tenth largest in the
world.
• It has an annual production of approximately 2 million
units.
• There has been a sustained growth in the automotive
sector of India following the economic reforms of 1991
which opened up 100 percent Foreign Direct Investment
in this sector. The competitiveness in the automotive
sector has been increasing since then
• The industry has been growing annually at 20 per cent.
• India is set to be a key player in the automotive sector.
36. • The automotive regulations in India are governed by
the Ministry of Shipping, Road Transport & Highways
(MoSRT&H) which is the nodal ministry for regulation
of the automotive sector in India.
• Along with MoSRT&H, ministries such as Ministry of
Environment & Forests and Ministry of Petroleum &
Natural Gas also have a vital role in the formulation of
automotive regulations and standards in India.
•
The principal instrument governing the automotive
sector in India is the Motor Vehicles Act, 1988 (MVA)
along with the Central Motor Vehicles Rules 1989
(CMVR).
•
The Act governs emission norms and safety standards
in India and consolidates the law pertaining to motor
vehicles. The CMVR provide the rules that explain the
MVA in detail.
37. • MoSRT&H has constituted two committees to recommend and advise the
ministry on issues relating to Safety and Emission Regulations.
• These committees are - Central Motor Vehicles Rules-Technical Standing
Committee (CMVR-TSC) and Standing Committee on Implementation of
Emission Legislation (SCOE).
• Central Motor Vehicles Rules-Technical Standing Committee (CMVR-TSC) was
formulated to receive draft recommendations from other committees, such as
Automotive Industry Standards Committee and Bureau of Indian Standards, and
to finalise and approve safety recommendations made by such committees.
• The joint secretary of MoSRT&H is the Chairman of CMVR-TSC. CMVR-TSC
comprises of representatives from Ministry of Heavy Industries and Public
Enterprises, Bureau of Indian Standard (BIS), Automotive Component
Manufacturers Association of India (ACMA), Select State Governments, Testing
agencies, SIAM and other invitees.
• The purpose of CMVR-TSC is to finalise and approve the draft standards and
norms submitted by various committees.
• The CMVR-TSC is assisted by the Automotive Industry Standards Committee
(AISC) and Bureau of Indian Standards (BIS).
38. • AISC is a committee set up by MoSRT&H. The purpose of
establishing this committee was to review the safety
standards with regard to motor vehicles in India on a
periodic basis and to give recommendations.
• The Chairman of this committee is the Director of
Automotive Research Association of India (ARAI) which is
one of the testing agencies constituted under CMVR-TSC.
• The AISC safety standards are formulated and prepared by
separate Panel comprising of representatives of various
stakeholder associations such as Department of Heavy
Industries, Department of IPP, Department of RT&H, BIS,
Vehicle Research and Development Establishment (VRDE),
SIAM, ACMA and ARAI.
• The representative of ARAI is the member secretary of this
committee.
39. ROLES OF ARAI
• Government approved test agency to carry out
mandatory/ certification testing
• Research Association and service provider to carry out
sponsored R&D work and development testing
Also engaged in
• –preparation & harmonization of standards
• –Deliberation of policy matters affecting auto R&D
• –Creation of facilities and building up competence by
undertaking forward looking research & technology
demonstration projects
National institution to disseminate information and
create forum for knowledge sharing in association with
industry / academia
40. FEATURES & TYPES OF APPROVAL SYSTEM
• 3rd Party Type Approval (TA) system is similar to UN-ECE
• Implemented in year 1991
• TA administration Agencies
• Notifying agencies: MoRTH, MoEF, etc.
• Standards and other requirements are notified under CMVR
• Testing & Approving agencies: ARAI and others
• TA & CoP certificates are mandatory
TA standards
• Bureau of Indian Standards (BIS) prepares IS standards
• AISC Technical committee prepares AIS standards as an interim step
• Standing Committee on Emission (SCOE) prepares Emission Standards
(TAP 115/ 116)
Roadmap of Regulations
• Agreed by industry, test agencies and government
• National Policy is to align with ECE regulations to the extent possible
48. 2010-20: UN’s DECADE OF ROAD SAFETY
Increasing Road Safety requires initiatives
in ...
Road
Safety
ENGINEERING
-Vehicle
-Road
EMERGENCY
ENFORCEMENT
EDUCATION
&
AWARENESS
ARAI has submitted Action Plan on
4 “E”s of Road Safety
• Improve Road
Engineering
• Road Safety Monitoring
• Increasing Road User
Education and
Awareness
• Controlling Behavioural
changes
• Legislations and its
enforcement
49. SAFETY STANDARDS IN FUTURE
•Electromagnetic
compatibility (EMC)
•Spray suppression
•Day time running
lamps?
•Vehicle Alarm
system
•ABS?
•Electromagnetic
compatibility (EMC)
•Driver safety
•Passenger safety
•Advanced Braking
System
•Head on, offset
frontal and side
crash
•Head restraints
with controlled
back-set
•Electromagnetic
compatibility (EMC)
•Child Restraint
•Vehicle alarm
system & protection
against
unauthorized use
•Hybrid vehicles
50. SAFETY STANDARDS IN FUTURE
Bus construction
•School bus
•Sleeper coaches
•Protection against
unauthorized use
•Electromagnetic
compatibility (EMC)
•Hybrid vehicles
•Fire protection
•Advanced Braking
Systems
•Navigation/ Fleet
management
Agriculture
Trailer Code
•Rear vision
•Field of vision
•Attendant/ passenger
seat
•Ballast mass
•ROPS
•Mechanical
couplings
Truck construction
•Automotive trailer code
•Conspicuity markings
•Protection against
unauthorized use
•Electromagnetic
compatibility (EMC)
•Close coupling and
mechanical coupling
devices
•Advanced Braking
System
•Navigation/ Fleet
management
51. ITS APPLICATION : BEYOND 2013
Advanced
Traffic
Management
Advanced
Traveler
Information
Advanced
Public
Transportation
Advanced
Traffic
Information
Electronic Toll
Collection
Incidence
Management
Weighing in
motion
ITS
Applications
REGULATION IN PIPELINE
Fitment of RIMD for Toll
collection
68. HOW LONG HAVE THEY BEEN IN
BUSINESS
PASSENGER VEHICLES-
MARUTI SUZUKI- SINCE 1981
HYUNDAI- SINCE 1967
TATA MOTORS- SINCE 1945
COMMERCIAL VEHICLES-
TATA MOTORS- SINCE 1945
ASHOK LEYLAND- SINCE 1948
EICHER MOTORS- SINCE 1948
TWO WHEELERS-
HERO- SINCE 1984
BAJAJ- SINCE 1960s (FIRST MODEL)
TVS- SINCE 1978
HONDA- SINCE 1948
THREE WHEELERS-
BAJAJ- SINCE 1960s
PIAGGIO- SINCE 1884
MAHINDRA - SINCE 1945
TVS- since 1978
70. MARKETING STRATEGIES
• Advertisements on the Audio visual medium are a rage as it gives the car
makers an opportunity to flaunt their cars. Flashy cars can be demonstrated on
television but when it comes to the finer prints of the cars, print and online media
comes to the rescue.
• The digital medium offers a greater flexibility to the car companies since they
come with a lot of interactive features like demonstrating the interiors of the car
with its salient features.
• The print medium on the other hand provides an opportunity to the car makers
to explain the function of a car in detail.
• Celebrity endorsements and testimonial advertisements have come a long
way and they are also doing their bit to sell the cars. Super star Shahrukh Khan has
been associated with Hyundai Motor Company for a long time and he comes
regularly on television to promote the Santro car. Similarly Ford has roped in
Abhieshek Bachan for the promotion of the latest offering from the company Ford
Fiesta.
72. MARUTI
Adopted JIT to achieve high operational effeciencies and
reduce inventory carrying cost.
Recycling groundwater : Uses techniques like soak pits,
recharging shafts and rainwater harvesting that help in
recharging groundwater from rainfall.
Adoption of e-nagare system – release of schedules on hourly
basis that helps in maintaining less than two hours inventory of
components within the country.
Kaizens(shop floor improvements) have drastically reduced
the consumption of water and power and the waste
Annual dealer interactions and reviews which help the dealers
in cost savings and customer convenience.
73. MAHINDRA
Concept of reverse engineering implemented
Partnering with local universities for new technology
develpoment.
74. TATA MOTORS
Jaguar Land Rover has re-hauled its supply chain to secure
cost savings as well as a sustainability equation that gives the
company a green edge.
A redesigning of process equipment at Tata Chemicals’Haldia
plant that cut process downtime by 40%
Use of fewer and smarter resources to begin requiring lesser
cleanup at the final disposal.
76. • FOR MARUTI SUZUKI :
Maruti has car models in every segment with a wide price
range to choose from, apart from being the most reliable name
in Indian automobile market.
Largest distribution network of dealers and after sales service
centres.
Maruti is the largest passenger car company in India,
accounting for around 45% market share
Good advertising, product portfolio, self-competing brands
Complete automobile segment including sedans & SUV’s
India’s No.1 automobile brand with strong legacy
77. • FOR HERO MOTORCORPS :
Tag line – Hum Mein Hain Hero
Huge brand equity and one of the biggest players in the two
wheelers Indian market
Excellent distribution, over 3000 dealerships and service
centers
Good advertising and excellent rebranding from Hero Honda
to Hero Moto Corp
Positioning - Every person has a hero and a winner within
one’s self
78. • FOR TATA MOTORS :
One of the oldest and trusted brand with extensive distribution
and strong market penetration
Slogan – Inspired By People- indicating a connect with
customers.
Good market penetration in the taxi & rental segment
Highly diversified product portfolio
Many associations like Jaguar Land Rover, Hispanso,
Macropolo etc which increases international presence
Wide & extensive distribution and service network
