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Presentation ON Automobile Industry

The presentation summarizes the growth of India's automobile industry. It discusses how the industry evolved from an early protectionist phase to a period of liberalization and globalization. Several factors such as rising incomes, infrastructure growth, and favorable policies are driving increasing demand. The automobile industry is a major contributor to the Indian economy and is projected to become the 7th largest car market by 2016 with sales of over 31 million vehicles annually. The low current vehicle penetration rate indicates significant potential for further growth in the coming years.

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Praveen Mayar
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177 views

Presentation ON Automobile Industry

The presentation summarizes the growth of India's automobile industry. It discusses how the industry evolved from an early protectionist phase to a period of liberalization and globalization. Several factors such as rising incomes, infrastructure growth, and favorable policies are driving increasing demand. The automobile industry is a major contributor to the Indian economy and is projected to become the 7th largest car market by 2016 with sales of over 31 million vehicles annually. The low current vehicle penetration rate indicates significant potential for further growth in the coming years.

Uploaded by

Praveen Mayar
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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PRESENTATION

ON
AUTOMOBILE INDUSTRY

Presented by –
Deepak Upadhyay
Abhishek Tiwari
Nitin Meher
Praveen Mayer
Shrikant Somani
Amit Maithil
• The automotive sector in India is growing at
around 18 per cent per annum.
Evolution and growth of Indian auto industry

• Protectionism – Early 1980s


• Liberalization – 1990s
• Globalization – 2000s

• It is estimated that India will see over Rs 30,000


crore being invested by 2010
Evolution of Automobile Industry

Initial Years
Early to mid 90s
Manufacturing was licensed
•Seller’s market and long
•High Customs duty on import Mid 90s – Early 2000s
waiting periods
•Steep excise duties & •Buyers market
•Delicensing in 1993
•sales tax
•Increase in Indigenization
•Removal of capacity
•2 Major players:
restrictions •Easy Auto finance
Premier Automobiles Ltd
& Hindustan Motors •Decrease in customs &
•Manufactures diversifying
excise
1980s into related activities:
•Auto finance boom- more finance lease, fleet
•Entry of MUL, better product, management, insurance and
players (foreign banks & non
with government support used car market
banking companies, better
•Seller’s Market schemes.

•Long Waiting Periods


Factors affecting the demand and growth of the
auto sector in India

• Rise in the industrial and agricultural output


indirectly helps Indian Auto industry
• Growth in the road infrastructure increases
demand for vehicles
• Rise in the Per capita income increases
two/four wheeler  sales
• Urbanization changes the face of Indian auto
industry
Factors affecting the demand and growth of the auto sector in
India

• Rising working class and middle class contribute


to increased demand of automotives
• Exhaustive range of options in price and models of
automotives
• Attractive Finance Schemes for purchase of
automotives
• Favorable Government Policies for the auto sector
• Cost efficiencies contributing to lower production
costs
The future of Indian Auto Industry

• According to a report from United Nations Industrial Development


Organization’s (UNIDO) in ‘International Yearbook of Industrial Statistics
2008’,
• India enjoys 12th position amongst top 15 automakers in the world.
• India is at the 4th position amongst the auto makers of developing
countries.
• By 2016 the size of the Indian automobile industry is expected to grow
by 13%, to reach a mark of US$ 120-159 billion. 
• Presently, India is the 2nd largest two wheeler market in the world and
• Fourth largest commercial vehicle market worldwide.
• The allies in a strong economy, rising demand and financial backing,
Indian auto industry is standing at the threshold of success.
Evolution of Automobile Industry

Initial Years
Early to mid 90s
Manufacturing was licensed
•Seller’s market and long
•High Customs duty on import Mid 90s – Early 2000s
waiting periods
•Steep excise duties & •Buyers market
•Delicensing in 1993
•sales tax
•Increase in Indigenization
•Removal of capacity
•2 Major players:
restrictions •Easy Auto finance
Premier Automobiles Ltd
& Hindustan Motors •Decrease in customs &
•Manufactures diversifying
excise
1980s into related activities:
•Auto finance boom- more finance lease, fleet
•Entry of MUL, better product, management, insurance and
players (foreign banks & non
with government support used car market
banking companies, better
•Seller’s Market schemes.

•Long Waiting Periods


The Key Players…
Others, 5.8%
Yamaha, Honda
Others, 5.73
3.8% Motors, 8.5%
Honda, 5.33

TVS Motors, Tata Motors,


17.7% 17.19
Maruti, 50.37
Hero Honda,
39.8%
Hyundai, 19.17

Bajaj Auto,
24.4%

Two wheeler Passenger vehicle


Commercial TATA Motors, Ashok Leyland, Swaraj Mazda,Mahindra & Mahindra ,Force
vehicles motors, Eicher Motors

Passenger TATA Motors, Maruti Udyog, Honda Motors, Toyata, Skoda, Mahindra &
vehicle Mahindra, Daimler Chrysler, Hindustan Motors

Two Wheeler Hero Honda, Bajaj Auto, Honda Motors, TVS Motors, Yamaha , Kinetic Motors

Three Wheeler Bajaj Auto, Piaggio India


Growth Trajectory of Indian Auto Industry
Growth in past 20 years
What makes the Indian Auto Market attractive?

• There is a huge potential for the demand of cars because of the low
penetration rates of 11 cars for 1000 people.
• In 2007, India was ranked as the 12th fastest growing market in the world.
• Presently, India is the 2nd largest two wheeler market in the world and
4th largest commercial vehicle market worldwide.
• India is the 11th largest market in the passenger car segment globally
which is expected to become the 7th largest market by 2016.
• India holds a total of 3% share in global four wheeler production and
ranks 9th in the world in the production of cars.

• There is a huge potential which needs to be tapped through an integrated


effort of the government, OEM’s and also the auto component
manufacturers.
• India is a base for the manufacturing of small cars and has attracted the
attention of global giants for investing in this segment.
The graph below shows that Indian Auto industry
has a potential to sell 31.96 million vehicles by
2015-2016
Projection of auto industry
• Ernst and Young has predicted the Indian passenger car market to
grow at 12 percent annually
• the next five years to touch 3.75 million units by 2014 from 1.89
million units at present.
• Analysts with Ernest and Young say that “The industry’s turnover
is estimated to touch $155 billion by 2016, this would make the
Indian auto industry the seventh largest in the world, and the
third largest by 2030, behind China and the US.   “
• The government’s Automotive Mission Plan also envisages India
emerging as the world’s seventh largest carmaker by 2016,
contributing over 10 percent to the country’s $1.2-trillion
economy from under five percent at present.

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