automobile sector in india
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- INDIAN AUTOMOBILE INDUSTRY
- Automobile Industry
- Where it has been
- Where its going
- Indian automotive industry Pre 1983 1983-1993 1993-2007
- Closed market
- Growth of market limited by supply
- Outdated models
- Players
- Hindustan Motors
- Premier
- Telco
- Ashok Leyland
- Mahindra & Mahindra
- Suzuki, Japan and GOI joint
- venture to form Maruti Udyog
- Joint ventures with companies in commercial vehicles and components
- Players
- Maruti Udyog
- Hindustan Motors
- Premier
- Telco
- Ashok Leyland
- Mahindra & Mahindra
- Delicensing of sector in 1993
- Global major OEMs start assembly in India (Toyota, GM, Ford, Honda, Hyundai)
- Imports allowed from April 2001; alignment of duty on components and parts to ASEAN levels
- Implementation of VAT
- Automotive Companies in India Major Multi-national companies Major Indian Companies
- NODAL AGENCIES
- ARAI
- Provide research & development, testing, certification and calibration support for developing safe, reliable and eco-friendly vehicles / components
- SIAM
- Apex Industry body representing 44 leading vehicle and vehicular engine manufacturers in India.
- Future Prospects Of Indian Automobile Industry
- SKODA AUTO
- SKODA Auto is planning to make India its regional manufacturing hub.
- Company plans to start to manufacturing in India from 2010 with a target of 50000 cars a year.
- TATA MOTORS
- TATA motors plan to manufacture 80000 units of its NANO car in Pantnagar plant in UTTARAKHAND.
- The Mother facility in SANAND, Gujarat may be fully functional by 2010-11 with a capacity of 1.5 lakhs/year
- RENAULT
- RENAULT has entered into partnership with NISSAN Motors to setup a manufacturing unit near Chennai.
- Project costs around $ 901.35 millions and having Capacity of 4lakh cars /year
- HONDA MOTORS
- Investing US $ 250 million in a new plant in Rajasthan with capacity of 60,000 car per year
- TOYOTA KIRLOSKAR
- Toyota- Kirloskar motors planning to launch its own small car in India by 2011
- GENERAL MOTORS
- To manufacture small cars at its Talegaon, Maharashtra plant with 80% local input.
- Why India?
- GROWTH DRIVERS OF INDIAN AUTO MARKET 2010
- Rising industrial and agricultural output
- Favorable demographic distribution with rising working population and middle class
- Urbanization
- Greater affordability of vehicles
- Easy finance schemes
- The Indian Auto Components Market
- Original Equipment Manufacturers (OEMs)
- Replacement Parts Production and Distribution : e.g. Air filters, oil filers and replacement lights
- Rubber Fabrication : tyres, hoses, belts etc.
- Estimated componentmarket sizeis US$ 6.7 bn
- The Indian Auto Components Market
- Composition Of Indian Auto Exports
- PEST ANALYSIS OF INDIAN AUTOMOBILE INDUSTRY
- POLITICAL
- Indian govt. launched AUTO POLICY for its Self Sustained growth.
- Allowed Foreign Equity Investment up to 100%
- Formulation of FUEL POLICY
- Promotes for Vehicles propelled by AES
- ECONOMIC
- Weighted Tax Deductions up to 150% for in house R&D activities.
- Reduced Interest rates for export financing.
- Economy has grown over 8.5% per annum for last 5 years.
- Manufacturing sector has grown 8-10 % for last few years.
- Social
- Changed Lifestyle leads to Increased demand
- The Average family size is 4 which makes it favorable to buy a four wheeler.
- 4 th largest economy on PURCHASING PARITY INDEX
- Preference for small and compact car
- Preference for Fuel efficient cars with low maintenance
- TECHNOLOGICAL
- More & more emphasis on R&D.
- Govt .is promoting NATRIP(National Automotive testing and R&D Infrastructure Project) to support the growth of Auto industry in India.
- Customized solutions (Designer cars ets)can be provided with proliferation of technology.
- With Entry of global brands both product and production process has been improved.
- SWOT ANALYSIS OF INDIAN AUTOMOBILE INDUSTRY
- STRENGTHS
- Automobile industry is established and
- Evergreen industry.
- India is the strongest player in small car segment
- Indian Companies are best cost innovators
- Assembly line manufacturing, and JIT inventory management, the automotive industry has been able to achieve significant gains in productivity.
- Exceptional human resource base
- WEAKNESS
- India lack proper infrastructural facilities
- Poor after sales service
- the automotive industry lags behind other sectors such as IT and financial services in management training, reward
- and retention.
- Opportunities
- Small cars is a future
- Green cars
- Auto financing
- Royalty through Patents
- THREATS
- Global Crisis
- Companies not focusing on R & D are under great risk
- High competition from foreign players
- Lack of technology for Indian companies
- Due to liquidity crunch buyers stayed away
- Mahindra & Mahindra recorded a fall of about 40%, Tata Motors showed 12% decline in the car sales.
- Resulted into less production
- Job Cuts
- Three Major Players of Automobile(Car) Sector
- MARUTI SUZUKI
- Founded: 1981 (as Maruti Udyog Limited)
- Headquarters: Delhi, India
- Key people: Mr. Shinzo Nakanishi, Managing Director and CEO
- Revenue: US$4.8 billion (2009)
- It offers 14 brands and over 150 variants
- WHY MARUTI ???
- Sales and service network
- Maruti Insurance
- Maruti TrueValue
- Maruti Driving School
- Hyundai
- Founded: 6 May 1996
- Headquarters: Chennai, India
- Key people: Mr. H.W. Park, MD
- The second largest car manufacturer in India
- HMIL presently markets 6 models of passenger cars across segments.
- HMIL has set up a modern research and development facility in the cyber city of Hyderabad.
- TATA MOTORS
- Founded in 1945 by JRD Tata
- Headquarters: Mumbai, Maharashtra
- Revenue: $20 billion (2009)
- Key people: Ratan Tata, Chairman; Ravi Kant, Vice Chairman; Carl Peter Forster, CEO
- Tata Motors is a dual-listed company
- IMPORTANT DEVELOPMENTS
- Tata Indica
- Tata Nano
- Compressed Air Car
- Electric Vehicles
- CAREER OPTIONS AFTER MBA IN AUTOMOBILE SECTOR
- CHENNAI IS CALLED AS DETROIT OF INDIA
- Opportunities for All
- Stream Designations Offered
- HR HR Manager, Personnel Manager, Compensation Analyst.
- Marketing Sales Manager, Marketing Manager, Product manager
- Operations Production Manager, Purchase Manager, Inventory Manager
- Finance Financial Analyst, Risk Manager.
- Interested in & around Mumbai?
- MUMBAI: MAHINDRA AND MHINDRA.
- PUNE: TATA MOTORS, TELCO, FORCE MOTORS,LUCAS TVS, MAHINDRA & MAHINDRA,VOLKSWAGON, GM,DAIMLER CHRYSLER,FIAT INDIA,BAJAJ AUTO,EICHER, KINETIC, BAJAJ TEMPO,HERO HONDA MOTORS LTD,PIAGGIO,PREMIER Ltd,
- Besides This Many Auto Component Industries are in Pune.