AuLomoblle lndusLry

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kapll Sharma
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SFCT0R
t begins as early as 1769.
The automobile sector is one of the key
segments of the economy having extensive
forward and backward linkages with other key
segments of the economy.
t contributes about 4 per cent in ndia's
Gross Domestic Product(GDP) and 5 per
cent in ndia's industrial production.
ndian Automobile sales growth rate would be
9.5 % by 2010.
ACTS
9th largest automobile industry .
2nd largest two-wheeler market,
4th largest in Heavy Trucks.
2nd largest tractor manufacturer.
11th largest passenger car market and
expected to become 7
th
largest by 2016.
Sale of passenger cars in ndia is likely to
grow at an average of 14.9% each year to
touch 2.1 million mark by 2010.
CCk1UNI1ILS
% ommerclal vehlcles
% eavy LhrusL on mlnlng and consLrucLlon acLlvlLy
% lncrease ln Lhe lncome level
% uL ln exclse duLles
% 8lslng rural demand
% argesL asplrlng mlddle class
1nkLA1S
8lslng lnLeresL raLes
uL LhroaL compeLlLlon
ack of Lechnology for lndlan ompanles
lncrease ln luel prlces
lncrease ln prlces of raw maLerlals
ressure on prlces from CLM's conLlnue
SLrengLh
Access Lo laLesL Lechnology
arge uomesLlc MarkeL
oLenLlal for exporL markeL
abor avallable aL approprlaLe cosL
SLrong dealer neLwork
Weakness
ompeLlLlve auLo componenL vendor base
More dependenL on forelgn Lechnology
lncrease ln Lhe amounL of royalLles
abor hassle