STUDY OF INDIAN AUTOMOBILE INDUSTRY

2001 - 08

INTRODUCTION

1898 - first imported car was seen on Indian roads. 1942- Hindustan motors incorporated. 1944- Premier automobile started. 1948-First car manufactured in India 1955-only 7 firms received approval to operate 1960-1970 Two, three wheeler industry was set up 1990-With liberalization, oligopoly ,monopoly markets slowly disappeared , the government of India tied up with Suzuki of Japan. 1991-license raj was dispensed, and auto industry was allowed to expand freely 1993-Many multinationals came into existence like Daewoo , general motors, Mercedes Benz. 1997-National highway policy was announced 1999-supreme court passed an order to comply with EURO-1 emission norms

OBJECTIVES
1. 2. 3. 4.

5.
6. 7.

To know about the auto policy of the government of India. What are the barriers faced by the companies to enter the automobile industry? To know about the taxes levied by the central and state government on automobile industry. What are the recommendations made by automotive mission plan? Who are the key players in the automobile industry? What are the challenges automobile industry is facing? What are the strategies government should plan to make Indian automobile industry globally competitive?

RESEARCH METHODOLOGY
RESEARCH INCLUDES GATHERING BOTH

PRIMARY AND SECONDARY DATA PRIMARY DATA: IT IS THE FIRST HAND DATA WHICH IS SELECTED AT FRESH THUS IT IS ORIGINAL IN NATURE. DUE TO TIME AND MONEY CONSTRAINT COMPARABLY LESS STRESS IS GIVEN TO SECONDARY DATA. SECONDARY DATA:IT IS THE DATA WHICH IS COLLECTED BY SOMEONE ELSE AND ALREADY PASSED THROUGH STATISTICAL PROCESSES.

FACTS ABOUT INDIAN AUTO INDUSTRY

Second largest two wheeler market
India on every global automobile player roadmap Fifth largest bus and truck market Fourth largest commercial vehicle market

Eleventh largest passenger car market Expected to be third largest automobile industry by 2030

Auto policy
Promote integrated and self sustained growth Establishing international hub for the manufacture of affordable passenger cars

Modernization of industry with research and development

Steer Indian software industry into automotive technology

Development of automobile propelled with alternate energies

Development of domestic safety and environmental standards.

BARRIERS TO ENTRY
Cost of developing high volume production facilities To gain access to technology of major global operators High competition between domestic companies and foreign companies

TAXATION
EXCISE DUTY VAT
CUSTOM DUTY SERVICE TAX
AN INDIRECT TAX LEVIED ON THE AUTOMOBILES MANUFACTURED IN INDIA AND FOR HOME CONSUMPTION TAX LEVIED ON MANUFACTURERS OF GOODS AS WELL AS SERVICE PROVIDERS. INDIRECT TAX LEVIED ON GOODS IMPORTED INTO INDIA AS WELL AS EXPOTED ABROAD TAX LEVIED ON SERVICES RENDERED BY THE PERSON,IMPOSED ON SERVICE PROVIDER

AUTOMOTIVE MISSION PLAN

MANUFACTURING AND EXPORT TO BE PROMOTED

ATTRACTIVE TARIFF POLICY TO ATTRACT INVESTMENT

AUTO DESIGN CENTRE TO BE ESTABLISHED

NATIONAL ROAD SAFETY BOARD TO PROMOTE SAFETY

PRODUCT AND SERVICE SEGMENTATION

PASSENGER CARS : MARKET SHARE

PASSENGER CAR: SALES

COMMERCIAL VEHICLES

COMMERCIAL VEHICLES: SALES

TWO WHEELERS

TWO WHEELERS SALES

THREE WHEELERS

THREE WHEELERS :SALES

UTILITY VEHICLES

TATA MOTORS
INDIA LARGEST AUTOMOBILE COMPANY AMONG TOP 3 IN PASSENGER VEHICLES,ACQUIRED JAGUAR AND LAND ROVER

LEADER IN COMMERCIAL VEHICLES,JOINT VENTURE WITH SPANISH HISPANSO AND BRAZIL MARCOPOLO

HAS SOLD OVER 4 MILLION VEHICLES IN INDIA

FIRST COMPANY TO BE LISTED IN NEW YORK STOCK EXCHANGE

MARUTI SUZUKI INDIA

LARGEST PASSENGER CAR COMPANY WITH 45% SHARE IN INDIA IT OFFER WIDE RANGE OF CARS FROM HATCHBACKS TO SEDANS TO SUVS HAS SOLD 7.5 MILLION CARS IN INDIA AND EXPORTED 50,000 UNITS

ITS REVENUE FOR 2008-09 STOOD OVER 4 BILLION

HYUNDAI MOTORS INDIA

IT IS THE WHOLLY OWNED SUBSIDIARY OF WORLDS FIFTH LARGEST COMPANY,HYUNDAI MOTORS,SOUTH KOREA

LEADING EXPORTER WITH MARKET SHARE 66%OF TOTAL EXPORT OF PASSENGER CAR FROM INDIA

IT HAS BEEN THE NO.1 EXPORTER OF PASSENGER CAR ,AND EXPORTS TO 110 COUNTRIES

IT MARKETS 49 VARIANTS OF PASSENGER CAR

MAHINDRA AND MAHINDRA

MARKET SHARE :COMMERCIAL VEHICLES 10.01%,CARS 6.50,% THREE WHEELERS 1.31%

IT COMPETES THROUGH ITS JOIN VENTURE COMPANIES MAHINDRA NAVISTAR (CV) AND MAHINDRA RENAULT(CARS)

IT SOLD AROUND 22 LAKH VEHICLES IN 2009

IT IS EXPANDING ITS FOOTPRINTS IN OVERSEAS MARKET

GOVERNMENT STRATIGIES
CUTTING DOWN RAW MATERIAL COST

FLEXIBLE LABOUR LAWS

CORPUS FOR R&D EXPANSION

AUTO EXPO ZONES

RESEARCH CENTRES

CONCLUSION
Passenger vehicles sales have almost

Doubled to 18,50,000 in 2008 to 9,60,000 in 2001. Commercial vehicles sales have also Shown an increasing trend, it has Increased from 1,90,000 to 9,45,000. Around 30,000 crores investment is Expected in India by 2012. Competition is intense as most firms have entered the market. India is second largest two wheeler, fifth largest commercial vehicle and eleventh largest passenger car market.