2. 2
Indian Automobile Industry Overview
Historical View :
The dawn of automobile actually goes back to 4000 years when the first wheel was used for transportation in
India
In 1897, the first car ran on an Indian road. An embryonic automotive industry emerged in India in the
1940s. Hindustan was launched in 1942, long-time competitor Premier in 1944, building GM and Fiat products
respectively. Mahindra & Mahindra was established by two brothers in 1945, and began assembly of Jeep
CJ-3A utility vehicles. Hindustan was the first to launched in 1942.
Current Scenario :
The Indian auto industry is one of the largest in the world with an annual production of 21.48 million vehicles in
FY 2013-14 .
India has became 4th largest automotive market by volume, by 2015
The automobile industry accounts for 22 per cent of the country's manufacturing gross domestic product
(GDP).
India is also a substantial auto exporter, with solid export growth expectations for the near future.
Various initiatives taken by the Government of India and the major automobile players in the Indian market is
expected to make India a leader in the Two Wheeler and Four Wheeler market in the world by 2020.
India is also a substantial auto exporter, with solid export growth expectations for the near future.
The today's market is growing fast in terms of economy, the industry grew 16-18%, selling around three million
units as per news article –Business standard
According to the New York Times, India's strong engineering base and expertise in the manufacturing of low-
cost, fuel-efficient cars has resulted in the expansion of manufacturing facilities of several automobile
companies like Hyundai, Nissan, Toyota, Volkswagen, and Maruti Suzuki
1
4. 4
Passenger Car Market (2012 - 2017)
In 2012-17 Shows the marker goes
continuous high as per the sales growth
Sales growth is ~ 12.98 during the future
years
Currently the sales shows the highest % of
growth rate as per the trend Indian market is
Passenger car driven market (2014-2015)
In April-March 2015, overall automobile
exports grew by 14.89 percent over the same
period last year. Passenger Vehicles, grew
by 4.42 percent during April-March 2015 over
the same period last year.
Maruti Suzuki has captured the largest share
in Indian market by 1152128 Units.
0.5%0.1%3.0%2.3%0.0%7.4%18.4%
12.6%
72.2%
11.1%
11.4%
4.4%
47.1%
75.0%
100.0%
Supply Share Jan'14-Dec'14
Fiat
Force Motors
Ford
General Motors
H.M.
Honda
Hyundai
Mahindra
Maruti Suzuki
Nissan
Renault
Skoda
3
5. 5
Market by segmentation (Classification)
The market has been divided by
Samlll, Medium, Premium &
Luxury Segment which is further
categories by Cost & feature of
Vehicle.
Luxury Category ~INR=<25 Lac
Higher-end cars, Premium
category~INR. 10-15 Lac length is
=<5000 MM, Mid size Vehicle
category ~ INR. 3.5 -6 Lac with 3401
-4000 MM size and Small very
economical basic feature category
vehicles =<3.5 lac size upto
3400MM.
passenger car" as a unique class, but
also identifies two other categories
involving passenger vehicles—the
"passenger van" and "light utility
vehicle"—and these categories are
inconsistently handled across the
country
Car Segment
•A1
•A2
•A3
•A4
•A5
•A6
•B1
•B2
•SUV
Length of Car
•Up to 3400 mm
•3401 to 4000 mm
•4001 to 4500 mm
4501 to 4700 mm
•4701 to 5000 mm
•more than 5000mm
•Vans
•MUV/MPV
•SUV
Model
Type/Brand
•Nano
•Alto, i 10, wagon R
•Manza, Logon, Dzire,
City
•Corolla, Octavia, Optra
•Accord, Camry, Sonata
•Mercedes S class
•Versa, Omni
•Sumo, Innova
•Vitara, CRV
Car Segment
•A
•A1
•A2
•B1
•B2
•C1
•C2
•D1
•D2
•SUV
Distinguishing
feature/Cost
•=<3.5 Lakh
•3.5 to 6 lakh
•6 to 7.5 Lakh
•Vans
•MUV/MPV
•7 to 8 Lakh
•8 to 9.5 Lakh
•10 to 15 Lakh
•15 to 25 Lakh
•SUV
Model Type/Brand
•Alto, Spark, Nano, Eon
•Santro, Indica, Beat
•Ritz, i10, i20, Swift, Figo
•Versa, Omni
•Sumo, Innova
•Indigo, Fiesta, Sunny
•Verna, Manza, Linea
•Fluence, Corolla
•Sonata, Camry, Kizashi
•Vitara, CRV
Segment by Length/Model type
Segment by Value
4
6. 6
Key Factors for Driving Growth
Finance
Availability
• Investment allowance (additional depreciation) at the rate of 15% to manufacturing companies that invest more than INR 1
Billion in plant and machinery acquired and installed between 01.04.2013 and 31.03.2015
• For large and mid-segment cars – the duty has been reduced from 27% to 24% and 24% to 20% respectively.
• A lower rate of excise duty on automobiles provided in the interim budget has been extended, until December 2014
Rising Family
Income
• A growing working population and an expanding middle class are expected to remain key demand drivers
• ndia has the world’s 12th largest number of high net worth individuals, with a growth of 20.8%, the highest among the top 12
countries
• Increasing disposable incomes in the rural agri-sector
Favorable
duty structure
• Easy finance schemes, owing to which the auto finance industry has grown at the rate of 13% between 2008-13. Car finance
penetration has increased from 68% to 70% between 2008-10 and between 70% to 72% in 2011-13
• Favourable government policies like lower excise duties, automotive mission plans, the constitution of NATRiP etc
• 100% FDI is allowed under the automatic route in the auto sector, subject to all the applicable regulations and laws.
Improved
Infrastructure
• To emerge as the world’s destination of choice for design and manufacture of automobiles and auto components with output
reaching a level of USD 145 Billion, accounting for more than 10% of the GDP and providing additional employment to 25
Million people by 2016.
• The setting up of a technology modernization fund focusing on small and medium enterprises.
• The Automotive Mission Plan II for the period 2016-26 is under preparation and will be finalized by mid-2015
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7. 7
Key Challenges In Indian Industry
Infrastructure development
6
1
2
3
4
5
6
7
8
Cost competitiveness
Improve productivity of both labour and capital
Scale up Capacities & Absorbing newer technologies
Favorable and predictable business environment
Availability of raw material commensurate with growth
Availability of auto grade technically advanced material
Availability of cost effective capital
8. 8
Key players and their share in passenger car market
List of Top 10 Automobile Companies in India (Figures in Crores)
ET
500 Rank
Company Turnover PAT MCRP CR Assets
7th Tata Motors Ltd. 123,223 9,274 56,500 52,209
2th Mahindra & Mahindra Ltd. 37,026 3,080 49,945 36,926
19th Maruti Suzuki India Ltd. 38,141 2,382 31,476 14,763
41th Hero MotoCorp Ltd. 19,669 1,928 40,399 4,447
46th Bajaj Auto Ltd. 17,008 3,455 46,886 5,155
67th Ashok Leyland Ltd. 11,133 631 6,653 6,621
101th Sundaram Clayton Ltd. 7,419 65 529 2,429
110th TVS Motor Company Ltd. 6,570 128 2,985 1,745
148th Eicher Motors Ltd. 5,139 243 4,448 474
396th Force Motors Ltd. 1,574 59 730 583
22,889
19,669
19,533
12,861
9,541
8,724
8,515
7,667
6,820
6,709
0
5,000
10,000
15,000
20,000
25,000
Top 10 selling cars of January 2015-
Units
Key observations
Among the top 10 selling cars for the
month, 4 are from Maruti Suzuki India, 3
from Hyundai, 2 from Honda and 1 from
Mahindra
Mahindra's top-selling product, the
Bolero, once again retained its position
in the top-10 selling cars in India
7
