Name of Presentation!

History of Automobile Industry

First theoretical plans for a motor vehicle Leonardo da Vinci and

Isaac Newton. In 1769 The very first self-propelled road vehicle was a military tractor invented by French engineer and mechanic,

Nicolas Cugnot was the inventor of the first automobile.

Cugnot drove one of his road vehicles into a stone wall

In India.
Railways first came to India in 1850's In 1865 Col. Rookes Crompton introduced public transport First car brought in India by a princely ruler in 1898 1928 assembly of CKD Trucks and Cars was started by American General Motors

1942 Hindustan Motors Ltd incorporated and their first vehicle was made in 1950
In 1944 Premier Automobiles Ltd incorporated and in 1947 their first vehicle was produced.

1955
Hindustan Motors Limited,, Ashok Leyland Limited, Standard Motors Products of India Limited. Premier Automobiles Limited, Mahindra & Mahindra and TELCO received approval.

1983 Entry of mul 1990 onwards(LPG)

Overview of Automobile industry

The US$ 73 billion Indian automobile industry (Source: IBEF) The automobile industry in India contributes 6 % of GDP of India CAGR of 12-15% 17% to the kitty of indirect taxes of the Government. The Indian Automobile Industry is manufacturing over 11 million vehicles Exporting about 1.5 million every year

provides direct and indirect employment to over 13 million people.

The dominant products of the industry are two wheelers The level of technology change in the Motor vehicle Industry

Vision statement for Indian Automotive

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% of the GDP and Providing additional employment to 25 million people by 2016.

Contribution in GDP (in %) Contribution in GDP (in %)

2006

2010

2016

2021

5.20%

7.20%

10.40%

14.70%

PCC

India : 12

Segmentation of the Indian market

Segmentation of the Indian market

Indian automobile industry fact

The key to success in the industry

labor productivity labor flexibility capital efficiency. Having quality manpower Infrastructure improvements Raw material availability also play a major role Access to latest and most efficient technology Utilizing manufacturing plants to optimum level and understanding implications from The government policies are the essentials in the Automotive Industry of India.

Key players

SWOT Analysis

TRENGTHS

. Large domestic market Sustainable labor cost

W
T

EAKNESSES

Labor productivity Strike from labor High interest cost Rising production cost Low investment in R & D Attitude Internal factors

Government support
Strong engineering skill Productivity in performance FDI

PPORTUNITIES

HREATS

Commercial vehicle Heavy trust on mining Increases in income level Cut in excise duty Rural demand

Rising interest rate Cut throat competition Lack of technology

External factors

Positive

Negative

Supply chain management

Demand of car

Statistical analysis

Total : 106,591,000

Geographical segmentation

. Tamil Nadu had about 16 million new vehicles registered, Maharashtra had over 13 million, and Gujarat had over 10 million. About 91% of these vehicles are non-commercial vehicles purchased by households looking for a two wheeler, or a car. Only about 9% of new vehicles registered are used for commercial purposes. Details of category wise new vehicle registrations in the various states and union territories are displayed in Appendix 1. The number of new vehicles registrations has grown by about 66% in the past five years

production 11087997 9743503 8467853 10853930

11175479

2005-06

2006-07

2007-08

2008-09

2009-10

passenger car production

passenger car production 2000000 1800000 1600000 1400000 1200000 1000000 800000 600000 400000 200000 0
2005-06 2006-07 2007-08 2008-09 2009-10 1209876 1309300 1545223 1777583 1838697

Sales from 2004 to 2009

Sales from 2004 to 2009

10123988 8906428 7897629

9654435

9723391

2004-05

2005-06

2006-07

2007-08

2008-09

Key Competitors

Major player

Five Competitive Forces

Threat of New Entrants

Bargaining Power of Suppliers

Rivalry Among Existing Competitors Threat of Substitutes

Bargaining Power of Customers

Exports

India exports automobiles in about 203 countries The total revenues from exports of automobiles, in the year 2008-2009 were USD 6,001.81 million with a growth of 33.85% from the previous

year.
The total exports from India in the year 2008-2009 were USD 185,295.36 million and in the year 2007-2008 were USD 163,132.18

million
The automobile industry in India contributes 3.24% of total exports in the year 2008-2009

Exports

passenger vehicle 22% commercial vehicle 3%

two wheelers 65%

three wheelers 10%

Total export 1,530,660

Demand Determinants

Exchange Rate
Affordability

Product Innovation
Demographics

Infrastructure
Price of Petrol:

Current affairs
Biggest drop in the monthly sales in July declined 16 percent

The car sales in the country dipped to 133,747 units as against 158,767 units sold in
the same month last year As per the JD Power, India is all set to become the third largest auto market in the world by year 2020, Its current status of the sixth largest car market. The sales figures were also impacted by MSIL, which reported a loss of 17,000 units due to changes in the production process at the companys Manesar plant According to SIAM, the car makers sold 48,091 units in overseas markets last month compared to 34,149 units in the corresponding period last year

Current affairs

Conclusion