HISTORY

In 1897, the rst car ran on an Indian road.

An embryonic automobile industry emerged in India in the
1940s.
Hindustan Motors was launched in 1942.
The Indian Automotive industry has emerged as a Sunrise
Sector in the Indian Economy.
India is emerging as one of the worlds fastest growing
passenger car markets and 2nd largest two wheeler
manufacturer.
 FACTS
The auto industry currently contributes 18% to the
country's total excise revenue.
Auto industry generates employment of 13 persons for
each truck, 6 persons for each car and four persons for
each three wheeler and one person for two-wheelers.
Auto industry contributes 25% to the total
manufacturing GDP.
According to Automotive Mission Plan 2006-16 auto
industry turnover was to reach $145 billion by 2016
but it is expected to be just over US$110 billion, a
shortfall of about 25%.

Source: Economictimes.indiatimes.com/auto/industry
 24
24 million
million
units(FY16)
units(FY16)

21.5
21.5 million
million
units(FY14)
units(FY14)

11
11 million
million
units(2007)
units(2007)

0.6
0.6 million
million 2008
2008 onwards
onwards
units(1992)
units(1992)
1993-2007
1993-2007

0.4
0.4 million
million 1983-1992
1983-1992
units(1982)
units(1982)

Before
Before 1982
1982

Source: ibef.org
Source: Business.mapsofindia.com
 Capacity Considering low cost of Production.
addition
Companies are eying India as an outsourcing hub.

In 2015-16, few of the newly launched cars were

Launch Of
new models Volkswagen Ameo, Mahindra e- Verito, Rolls-
Royce

Firm focusing on selling out a chunk of profits on

Marketing
Marketing &
&
Advertisement
Advertisement
advertisement.
Making Customers brand conscious.

India boasts a large population of middle class.

Catering
Indian needs Most of the firms adapted themselves to cater to
this class.
 11.7 2%
G R:
CA
 New Product Launches.
Alternative Fuels
New Financing options.
Improving Product Development

capabilities.

Source: ibef.org
Strengths
Evolving industry.
Continuous product innovation & technological advancement.
Growth shifting to Asian markets.
Increasing demand of VFM vehicles.
Increase in demand of luxury commercial vehicles.
Manufacturing facilities in Asian nations to control cost.
Weakness
Cars recalled.
Bargaining power of consumers.
Growth rate of Automobile industry.
Opportunities
Introducing fuel-efficient vehicles.
Introducing fuel-efficient vehicles.
Changing lifestyle & customer groups.
Market expansion.
OEM priorities.
Threats
Intense Competition.
High fixed cost and investment in R & D.
Sluggish Economy.
Volatility in the fuel Prices.