Documentos de Académico
Documentos de Profesional
Documentos de Cultura
Submitted by:
Poonam Acharya (A010)
Ayushi Agrawal(A014)
Deepashikha Godbole(A029)
Apeksha Narula(A042)
Vidhi Agarwal(A073)
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INDEX
SL.NO
CONTENT
PAGE NO.
1.
INTRODUCTION
2.
6-7
INDUSTRY
5.
8-12
6.
MARKET SIZE
13-14
7.
INVESTMENT
15-16
8.
GOVERNMENT INITIATIVES
17-19
9.
20-22
10.
23-24
SECTOR
11.
25-26
12.
27
13.
28-29
14.
STATISTICS
30
15.
CASE STUDY
31-33
16.
CONCLUSION
34
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INTRODUCTION
The Indian automotive industry has emerged as a 'sunrise sector' in the Indian
economy. India is emerging as one of the world's fastest growing passenger car
markets and second largest two wheeler manufacturer. It is also home for the
largest motor cycle manufacturer and fifth largest commercial vehicle
manufacturer. India is emerging as an export hub for sports utility vehicles
(SUVs). The global automobile majors are looking to leverage India's costcompetitive manufacturing practices and are assessing opportunities to export
SUVs to Europe, South Africa and Southeast Asia. India can emerge as a supply
hub to feed the world demand for SUVs. India also has the largest base to
export compact cars to Europe. Moreover, hybrid and electronic vehicles are
new developments on the automobile canvas and India is one of the key markets
for them. Global and Indian manufacturers are focussing their efforts to develop
innovative products, technologies and supply chains. The automotive plants of
global automakers in India rank among the top across the world in terms of the
productivity and quality. Top auto multinational companies (MNCs) like
Hyundai, Toyota and Suzuki rank their Indian production facilities right on top
of their global pecking order.
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.
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 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.
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Most non-tariff barriers have also been relaxed or removed. The Government
has moderated and lowered taxes and duties on automobiles, including customs
duty. Value Added Tax (VAT) is also proposed to be introduced across the
country from 1 April 2001. The Government has also allowed private sector
participation in the insurance sector. Norms guiding external commercial
borrowings (ECBs) have been liberalized and lending rates within the country
have also been reduced further strengthening the environment of investment. An
ambitious programme to upgrade the quadrilateral of highways in the country,
the Government is laying an eight lane expressway linking all metropolitan and
several important capital towns across the country paving the way for
movement of heavier haulage vehicles.
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wheeler model Maruti 800. The company became the first Indian automobile
company to manufacture one million vehicles in 1994. The company became
Maruti Suzuki India Limited on September 17, 2007.
Maruti's average revenue for the year ending 2010-11 is US$7.13 billion.
Maruti sold 83,306 units of vehicles in September 2009, comparing to 71,000
units in the same month in the previous year (with a growth rate of 17.3%). It
also exported 11,712 units during September 2009, comparing to 6,318 units in
the same month in the previous year (with a growth rate of 85.4%).
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7. BAJAJ AUTO:
Bajaj Auto is the second largest two-wheeler manufacturer in India. It is also the
fourth largest two and three-wheeler maker in the world. In September 2009,
Bajaj Auto sold 249,795 units of two-wheelers, comparing to 218,494 units in
September 2008 (with a growth rate of 14.3%). During September 2009, it also
registered a growth of 12.4% in the domestic two-wheeler sales and 19.9% in
two-wheeler export.
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Companies
Ashok Leyland
Asian Motor Works
Bajaj Auto
BMW India
Daimler Chrysler India
Eicher Motors
Fiat India
Force Motors
Ford India
General Motors India
Hero Honda Motors
Hindustan Motors
Honda
Hyundai Motors
Kinetic Motor
Mahindra & Mahindra
Maruti Suzuki
Piaggio
Royal Enfield Motors
Skoda Auto India
Suzuki Motorcycles
Swaraj Mazda Ltd
Tata Motors Cars
Toyota Kirloskar
TVS Motor Co
Volvo India
Volkswagen India
Yamaha Motor India
Segments
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MARKET SIZE
Sales of commercial vehicles in India grew 5.3 per cent to 52,481 units in
January 2015 from a year ago, according to Society of Indian Automobile
Manufacturers (SIAM).
Sales of cars also grew for a third month in a row to 169,300 units in
January 2015, up 3.14 per cent from the year-ago period.
Car market leader Maruti Suzuki India witnessed 8.6 per cent higher sales
at approximately 118,551 units in February 2015, out of which 107,892
were sold in domestic market and 10,659 units were exported.
Hyundai Motor India Ltd (HMIL) reported a 2.4 per cent growth in total
sales at 47,612 units in February, compared with 46,505 units in the same
month last year.
In the two-wheeler segment, Hero MotoCorp witnessed sales of 484,769
units in February 2015.
TVS Motor Co posted 15 per cent higher sales at 204,565 units against
177,662 units.
Bajaj Auto sold a total of 243,000 two and three-wheelers segment.
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INVESTMENT
To match production with demand, many auto makers have started to invest
heavily in various segments in the industry in the last few months. The industry
has attracted foreign direct investment (FDI) worth US$ 12,232.06 million
during the period April 2000 to February 2015, according to the data released
by Department of Industrial Policy and Promotion (DIPP).
Some of the major investments and developments in the automobile sector in
India are as follows:
DSK Hyosung has announced to set up a plant in Maharashtra and is planning
to add 10-15 dealerships in the next financial year (FY 15-16) mostly in
the tier-II cities and introduce more models in the 250cc segment.
Germany-based luxury car maker Bayerische Motoren Werke AGs (BMW)
local unit has announced to procure components from seven India-based
auto parts makers.
Mahindra Two Wheelers Limited (MTWL) has acquired 51 per cent shares in
France-based Peugeot Motocycles (PMTC).
Suzuki Motor Corp is planning to sell the automobiles made in the Gujarat
plant, in Africa.
Tata Motors Ltd, Indias largest automobile maker, will sell trucks in
Malaysia, Vietnam and Australia to strengthen its presence in the AsiaPacific region.
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Reasons to Invest:
1. By 2015, India is expected to be the fourth largest automotive market by
volume in the world.
2. Over the next 20 years, India will be a part of the big global automotive
triumvirate.
3. Tractor sales in the country are expected to grow at CAGR of 8-9% in the
next five years, upping Indias market potential for international brands.
4. Two-wheeler production has grown from 8.5 Million units annually to
15.9 Million units in the last seven years. Significant opportunities exist
in rural markets.
5. Indias car market has the potential to grow to 6+ Millions units annually
by 2020.
6. The emergence of large automotive clusters in the country: DelhiGurgaon-Faridabad in the north, Mumbai-Pune-Nashik- Aurangabad in
the west, Chennai-Bengaluru-Hosur in the south and Jamshedpur-Kolkata
in the east.
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GOVERNMENT INITIATIVE
The Government of India encourages foreign investment in the automobile
sector and allows 100 per cent FDI under the automatic route. Excise duty on
small cars, scooters, motorcycles and commercial vehicles was reduced in
February last year to 8 per cent from 12 per cent to boost the Make in India
initiative of the Indian government.
Some of the major initiatives taken by the Government of India are:
Under the Union budget of 2015-16, the Government has announced to
provide credit of Rs 850,000 to farmers, which is expected to boost the
tractors segment. The government is aligning to ensure that at least one
family member is economically strong to support the family. This is
expected to improve the sentiments of entry-level two-wheelers.
The Government plans to promote eco-friendly cars in the country i.e. CNG
based vehicle, hybrid vehicle, and electric vehicle and also made
mandatory of 5 per cent ethanol blending in petrol.
The government has formulated a Scheme for Faster Adoption and
Manufacturing of Electric and Hybrid Vehicles in India, under the
National Electric Mobility Mission 2020 to encourage the progressive
induction of reliable, affordable and efficient electric and hybrid vehicles
in the country.
The Automobile Mission Plan for the period 20062016, designed by the
government is aimed at accelerating and sustaining growth in this sector.
Also, the well-established Regulatory Framework under the Ministry of
Shipping, Road Transport and Highways, plays a part in providing a
boost to this sector.
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Road Ahead:
India is probably the most competitive country in the world for the automotive
industry. It does not cover 100 per cent of technology or components required to
make a car but it is giving a good 97 per cent, highlighted Mr Vicent Cobee,
Corporate Vice-President, Nissan Motors Datsun.
The vision of AMP 2006-2016 sees India, to emerge as the destination of
choice in the world for design and manufacture of automobiles and auto
components with output reaching a level of US$ 145 billion; accounting for
more than 10 per cent of the GDP and providing additional employment to 25
million people by 2016.
The Japanese auto maker Maruti Suzuki expects the Indian passenger car
market to reach four million units by 2020, up from 1.8 million units in 201314.
Market break up by production volume
1. Two wheelers dominate production volumes; in FY15, the segment
accounted for about 79.40 per cent of the total automotive production in the
country
2. India is the worlds second-largest two wheeler manufacturer and fourthlargest producer of commercial vehicles
3. A unique feature of Indian auto sector is the presence of three wheelers which
are a form of public transportation equivalent to taxis
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ii.
iii.
2. WEAKNESS:
i.
Infrastructural drawback
ii.
Low productivity
iii.
iv.
3. OPPORTUNITY:
i.
ii.
4. THREATS:
i.
ii.
iii.
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Escorts Yamaha:
Hero Motors:
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Kinetic Honda:
A joint venture between Kinetic Engineering Limited, India and Honda Motor
Company, Japan. The JV operated during 1984 - 1998, manufacturing 2-stroke
scooters in India. In 1998, the joint venture was terminated after which Kinetic
Engineering continued to sell the models under the brand name Kinetic until
2008[207] when the interests were sold to Mahindra.
Standard-Triumph:
Standard Motor Products of India Ltd. (SMPI) was incorporated in 1948 and
their first product was the Vanguard, which began to be assembled in 1949. The
company was dissolved in 2006 and the old plant torn down.
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STATISTICS
The total turnover in 2010-11 was USD 58.5 Billion, turnover by 2016 is slated
to be USD 145 Billion.
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CASE STUDY
MERGER OF MAN SCANIA AND VOLKSWAGEN:
Due to complexity of the truck and bus business it needs to continuously focus
on its core. To compete with the Daimler and Volvo, VW created this merger
concept by putting together business of same nature to get better results. As a
part of VW strategy, first Volkswagen latin American became part of MAN SE
business unit and then VW increased majority stake Scania. MAN is mainly
focusing to save some cost in purchasing and R&D. there should be some
effective coordination between MAN and SCANIA in the area of sales and
product concept to. Parts and platform should be common for all three product
base. VW, MAN and SCANIA should redefine there strategy map to get better
results through its cooperation.
Volvo is reducing cost to increase its profit by putting multiple efforts in
production and organisation structure. Its production cost also needs to be
managed effectively. Daimler is focusing on synergy amount among all brands
to reduce cost. MAN, SCANIA and VW CV expected to reduce cost by
merging of entities.
MERGER OF TATA MOTORS AND LAND ROVER AND JAGUAR:
Ford accepts an offer by the rapidly expanding Tata Motors of India for the
purchase of Land Rover and Jaguar. In the US, General Motors
announces annual losses for 2007 of $39 billion -the largest ever loss by a US
car manufacturer and a further sign that many of the older established
car makers are struggling to compete with the surge of production from Asia.
Jaguar Land Rover has been acquired at a cost of $2.3 billion on a cash-free,
debt-free basis. The purchase consideration includes the ownership by Jaguar
AUTOMOBILE SECTOR OF INDIA
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Under the joint venture Hero Group could not export to international markets
(except Sri Lanka and Nepal) and the termination would mean that Hero Group
can now export. Since the beginning, the Hero Group relied on their Japanese
partner Honda for the technology in their bikes. So there are concerns that the
Hero Group might not be able to sustain the performance of the joint venture
alone.
The Japanese auto major will exit the joint venture through a series of off
market transactions by giving the Munjal familythat held a 26% stake in the
AUTOMOBILE SECTOR OF INDIA
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CONCLUSION
Easier and faster mobility of people and goods across the regions, countries and
continents is a cherished yearning of mankind. The automobile industry s
potential for facilitating this mobility is enormous. Wheels of development
across the globe would have to be powered by this industry. However, a
seamless development of this industry across countries and continents alone will
help in realization of this objective. For such seamless and barrier-free
development of the sector, countries will have to come together and develop
better understanding. Industry across countries will have to meet challenges of
newer technologies, alternative fuels and affordability of automobiles by people
at large through constructive cooperation. The industry has recorded
phenomenon growth during the last decade. A market trend is growing at a
faster rate. The opening of the Indian automobile market for foreign companies
the competition is expected to enhance further. The opportunities can be
grabbed through the diversification of export basket in untouched foreign
destinations. Thus strict quality standards, services and use of latest technology
can provide an edge over competitors across the globe.
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