post recession performance of automobile sector

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Post Recession performance Of utomobile Sector By Amit Samanta

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Page 1: Post Recession Performance of Automobile Sector

8/4/2019 Post Recession Performance of Automobile Sector

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Post Recession

performance

OfAutomobile

Sector

By

Amit Samanta

Page 2: Post Recession Performance of Automobile Sector

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What is recession?

A part of business cycle.

A slowdown in economic activities.

GDP, employment, household income,business profits, inflation all FALLduring recession .

Bankruptcies, unemployment rate rise.

Page 3: Post Recession Performance of Automobile Sector

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A Brief Overview Of Financial 

Crisis 2008:o Worst financial crisis since the great depression

of 1930s.

o Affected the whole world.

o Started: December 2007.

o Believed that it ended in june2009.

o Company failures: Lehman Brothers, net bank,terra securities, Mervyns, Washington mutualetc.

o Company bailed out:American InternationalGroup(AIG) (US$150 bn), Chrysler.

Page 4: Post Recession Performance of Automobile Sector

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Post recession performance : VICTROY PODIUM:

9 th largest automobile industry in the world.

 World’s no 1 two wheeler market. 

4 th largest exporter in Asia after Japan, S.Korea &Thailand.

 Asia’s 3 rd largest passenger vehicle market. 

5th largest bus &truck market in the world.2nd fastest growing automobile market in the world

after china.

 A home of 40 mn vehicles.

Page 5: Post Recession Performance of Automobile Sector

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 Domestic sales 2010:

76%

16%

4% 4%

Sales

Two Wheelers

Passenger Vehicles

Commercial Vehicles

Three Wheelers

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Growing automobile production:

0

2000000

4000000

6000000

8000000

10000000

12000000

2003-04

2004-05

2005-06

2006-07

2007-08

2008-092009-10

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Growing Automobile Export:

0100000200000300000400000500000

600000700000800000900000

2009-10

2010-11

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Projections Of Automobile Industry for 

2015-16:Category Domestic

sales(mn)Export(mn)

Total(mn) Currentglobalposition

Globalposition in2016

Passenger Vehicle

3.00 1.10 4.10 9 7

Commercial Vehicles

0.70 0.08 0.78 11 4

Three Wheelers

0.97 0.50 1.47 1 1

Two Wheelers

32.00 3.00 35.00 2 2

Total 36.67 4.68 41.35 9 7

Page 9: Post Recession Performance of Automobile Sector

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SWOT Analysis of Indian Automobile

Industry: Strengths:

Large domestic market

Sustainable labor cost

Government incentives for manufacturing plants.

Strong engineering skills.

 Weaknesses:Low labor productivity 

 Various forms of taxes push up the production cost.

Low investment in R&D.

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Cont….. Opportunities:

Commercial vehicles: SC ban on overloading.

Heavy thrust on mining and construction activities.

Increase in income level.

Rising rural demand.

Threats:Rising input costs.

Rising interest rate.

Cut throat competition.

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Conclusion:Companies are doing well in India.

Suffered minimal during recession times.

 Will maintain its growth rate in recent future.Have a tremendous prospect in India.

Competition will rise.

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 References:Documents from CII logistic summit 2010,New Delhi.

Society of Indian automobile(SIAM) forecasts.

Recession.orgGlobal financial crisis-Charles I. Jones

Thomas White international Ltd. Report onautomobile industry for BRIC cuntries-

 www.thomaswhite.com

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