Automobile Sector in India

Automobile Sector
In India there are 100 people per vehicle, while this figure is 82 in China. It is expected that Indian automobile industry will achieve mass motorization status by 2014. India is the fourth largest car market - recently crossed the 1 million mark.

Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%).
The first automobile in India rolled in 1897 in Bombay. India is being recognized as potential emerging auto market. Foreign players are adding to their investments in Indian auto industry.

SWOT Analysis
STRENGTH
LARGE DOMESTIC MARKET LABOR COST ADVANTAGE PRODUCT INNOVATION. THE QUALITY ADVANTAGE.

WEAKNESS
UNAFFORDABLE FOR LOWER CLASS. RISING COST OF PRODUCTION LOW INVESTMENT IN RESEARCH AND DEVELOPMENT

 OPPORTUNITY
LOAN FACILITY. INDIAN RURAL MARKET. INCREASE IN THE INCOME LEVEL

THREAT
. CUT-THROAT COMPITITION. . RISK FACTOR. .LACK OF TECHNOLOGY IN INDIA.

LARGEST CAR MANUFACTURERS IN INDIA

MARUTI SUZUKI HYUNDAI TATA MAHINDRA GM CHEVROLET HONDA TOYOTA FORD FIAT SKODA MITSUBISH

Four Wheels Market Share

8

30.2 18.4

Hyundai

Maruti Suzuki Tata Motors others

44.4

TWO WHEELER MANUFACTURERS IN INDIA

HERO MOTO CARP
TVS HONDA YAMAHA BAJAJ

MAHINDRA
ROYAL ENFIELD

Two Wheels Market Share

3.2 11

12.3

42.1

Hero moto corp

Bajaj
TVS Honda
31.4

Others

EFFECT OF AUTOMOBILE INDUSTRY IN BSE

4 OUT OF 30 COMPANIES ARE THE AUTO COMPANIES WHICH
ARE LISTED IN BSE. HERO HONDA (40,410 crs)

M&M (36,047 crs)

MARUTI SUZUKI (39,735 crs) TATA MOTORS (46,121 crs) Hence, any fluctuation in automobile industry is of great influence for the BSE

FDI IN AUTOMOBILE
The automobile industry in India is growing by 18 percent per year. The automobile sector in India was opened up to foreign investments in the year 1991. 100% Foreign Direct Investment (FDI) is allowed in the automobile

industry in India.
The production level of the automobile sector has increased from 2 million in 1991 to 9.7 million in 2006 after the participation of global

players in the sector.

Import of components is allowed without any restrictions and also encouraged

EXPORT
India has emerged as one of the world's largest manufacturers of small cars. In 2008, Hyundai Motors alone exported 240,000 cars made in India. Nissan Motors plans to export 250,000 vehicles manufactured in its India plant by 2011. Similarly, General Motors announced its plans to export about 50,000 cars manufactured in India by 2011. In September 2009, Ford Motors announced its plans to setup a plant in India with an annual capacity of 250,000 cars for US$500 million. In 2009 India surpassed China as Asia's fourth largest exporter of

cars.

AUTOMOTIVE MISSION PLAN 2016

PM RELEASED AUTOMOBILE PLAN 2006 2016 TO GIVE A
ROAD MAP TO INDIAN AUTOMOBILE INDUSTRY. INCREASE TURNOVER TO $145 BILLION BY 2016.

INCREASE EXPORT REVENUE TO $35 BILLION BY 2016.

PROVIDE EMPLOYMENT TO ADDITIONAL 25 MILLION PEOPLE BY 2016. BY 2016, AUTO SECTOR IS EXPECTED TO CONTRIBUTE 10% OF THE COUNTRYS GDP & 30-35% OF THE INDUSTRY.

Thank You