Bharat Forge FSCL

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Name of the company: Bharat Forge

FSCL-Company analysis/Industry analysis Report

SUBMITTED TO

INDIRA INSTITUTE OF MANAGEMENT, PUNE


POST GRADUATION DIPLOMA IN MANAGEMENT

BY
KESHAV KUMAR
(PGDM BATCH 2019-2021)
UNDER THE GUIDANCE OF
Prof. Neha Jain.

INDIRA INSTITUTE OF MANAGEMENT PUNE


(TAPASYA, PUNE-411033)
INDEX Sr. PARTICULARS PAGE N
No

1 Introduction of the company 3

2 Board of the directors

3 Products/Services offered by the company

4 Business model of the company

5 Marketing mix

6 Major achievements

7 Corporate governance activities

8 Management outlook of the company

9 SWOT Analysis of company

10 CAGR growth rate for net sales & net profit of 11-
the company for last 3 years

11 Financial statement analysis of the company 13-


using ratio for last 3 years

12 Market capitalization of the company for last 3


years

13 Analysis of capital structure of the company

14 Market price analysis of the company for last 3


years
COMPANY INFORMATION

Qualitative factors
Bharat Forge Ltd., incorporated in the year 1961, is a Large Cap company (having a market
cap of Rs 24292.09 Crore) operating in Auto Ancillaries sector.

Bharat Forge Ltd. key Products/Revenue Segments include Steel Forgings which contributed
Rs 6050.28 Crore to Sales Value (92.79 % of Total Sales), Scrap which contributed Rs
252.92 Crore to Sales Value (3.87 % of Total Sales), Export Incentives which contributed Rs
167.38 Crore to Sales Value (2.56 % of Total Sales), Job Work which contributed Rs 31.38
Crore to Sales Value (0.48 % of Total Sales), Dies & Tools which contributed Rs 13.17 Crore
to Sales Value (0.20 % of Total Sales) and Wind Mills which contributed Rs 4.87 Crore to
Sales Value (0.07 % of Total Sales)for the year ending 31-Mar-2019.

Founded By: Nilkanthrao Kalyani

Location: India Pune Cantonment Mundhwa Pune - 411 036 INDIA

Email: [email protected]

Plant Locations over the global


 Ennepetal, Germany
 Saxler, Germany
 Brand-Erbisdorf, Germany
 Bharat Forge Scottish Stampings Limited,
 Scotland
 FAW Bharat Forge (Changchun) Company Ltd,
 China

Vision

Bharat Forge believes in giving back to the society in some measure what it has gained
from it. It is therefore committed to address issues relating to child welfare, women
empowerment and safety and security of senior citizens etc. through their various
initiatives which will lead to protection of environment, health & hygiene and skill
education on sustainable basis for society as a whole

Mission

Spirit of innovation is the core of the organization's DNA and plays a paramount role in
delivering value to customers through extensive focus on technology & value addition.

Board of Directors

 Mr. B N Kalyani-Chairman & Managing Director


 Mr. G K Agarwal-Deputy Managing Director
 Mr. Amit B Kalyani-Deputy Managing Director

Executive Directors

 Mr. B P Kalyani-Executive Director


 Mr. S E Tandale-Executive Director
 Mr. Kishore Saletore-Executive Director

Businesses:

AUTOMOTIVE (main):

 Passenger Vehicles
 Commercial Vehicles
 SUV

INDUSTRIAL:
 Power
 Oil & Gas
 Locomotive & Marine
 Aerospace
 Metals & Mining
 Construction
 General Engineering.

Marketing mix: With reference to Automotive division


Products (Product Mix)

This aspect of the marketing mix pertains to the outputs of the business. Each product line
represents a group of outputs or products. The set of all the product lines is called the product
mix. In General Motors’ case, the product mix shows limited business diversification.
Nonetheless, the company offers a wide variety of products, such as different brands, types,
and models of automobiles. The product lines in General Motors’ product mix are as follows:

1. Automobiles
2. Automobile parts
3. Commercial vehicles
4. Financial services

Prices and Pricing Strategies


The setting of price points and price ranges for the company’s products is the main concern in
this aspect of the marketing mix. Pricing affects the perceived value of brands and products,
and influences sales in price-sensitive markets. In this case, General Motors’ pricing
strategies for its automotive products are as follows:
1. Market-oriented pricing strategy
2. Premium pricing strategy

Promotion (Promotional Mix)

Promotional activities are considered in this aspect of General Motors’ marketing mix of 4Ps.
These activities are also known as marketing communications tactics. The combination of
these tactics is called promotional mix or marketing communications mix. In General
Motors’ case, the following promotional activities are used, arranged according to
significance in the automotive business:

1. Advertising (primary)
2. Direct marketing
3. Personal selling
4. Sales promotion
5. Public relations

Place/Distribution in GM’s Marketing Mix

In this aspect of General Motors Company’s marketing mix or 4Ps, the virtual or physical
locations of transactions are considered. Such locations are significant because they enable
the company to reach target customers in specific markets, while also allowing customers to
access information and GM products available from the automotive business. The following
places are used in the distribution of General Motors’ products and services:

1. Official websites
2. Dealerships
3. Automotive shows and exhibits

Major achievements
 SWORD OF HONOUR for safety success by the British Safety Council for our
Health & Safety Management Systems .
 FIVE STAR RATING by The British Safety Council, UK. The award aims to
recognise the 'best of the best' in health and safety management.
 Mr. Baba Kalyani, Chairman and Managing Director, Bharat Forge Limited was
today, conferred with the prestigious LAKSHYA BUSINESS VISIONARY AWARD
by the National Institute of Industrial Engineering (NITIE).
 B. N. Kalyani, CMD, BFL was honoured with the CROSS OF THE ORDER OF
MERIT of the Federal Republic of Germany.
 The French government has bestowed the award of KNIGHT OF THE NATIONAL
ORDER OF THE LEGION OF HONOUR (CHEVALIER DE L’ORDRE DE LA
LÉGION D’HONNEUR) on Baba Kalyani, CMD, BFL.

Corporate governance activities

 Pratham Pune Education Foundation (PPEF)


 LAKSHYA (Looking at Knowledge in Sports and Help Youth Achieve)
 Tie ups with BITS, Pilani, Warwick University and IIT Bombay
 Kalyani Centre for Technology and Innovation (KCTI), which addresses the group's
requirements of augmenting employee knowledge and skills through three areas
namely Advanced Technical training, Advanced Academic Courses and Research and
Development
Management outlook of the company

 B.N. Kalyani, Chairman and Managing Director said: "The quarter gone by has been
the toughest period witnessed by the company in this decade. The sluggish
macroeconomic environment in India resulting in weak demand across sectors
coupled with automotive OEM''s need to destock ahead of introduction of BS VI
emission standards led to demand declining continuously through the quarter.
 "The surprise to investors came in the form of management commentary which
effectively poured cold water on hopes of an early cycle recovery," said ICICI
Securities.
 "On a longer-term basis, we like BHFC''s strategy of revenue diversification;
however, the weak CV segment outlook coupled with low visibility on recovery in oil
& gas segment makes us cautious," it added.
 The brokerage downgraded the stock to ADD from BUY.
 The company, which produces a range of components for the automotive and non-
automotive sector, said that sluggish macro-economic environment, weak demand
across sectors and introduction of BS VI emission standards led to the decline in
demand.
 Bharat Forge scrips on Friday reported a profit before tax (PBT) decline of 27 per
cent year-on-year (YoY) to Rs 251 crore for the quarter ended September.
 In its forward looking statement, the company said: "Given the prevailing
environment in India and the slowdown in North America and Europe, we expect H2
FY20 to be lower than H1 FY20.
 Focus on technology and moving up the value chain paid off: Amit Kalyani, Bharat
Forge

SWOT ANALYSIS
Strengths: Weaknesses:
1. Over-dependence on
1. High Economies of scale
Automobile segment
2. Strong and trusted Brands 2. Lack of in-house R&D Less

3. Technology and manpower focus on small forging

cost advantage equipments

Opportunities: Threats:
1. High demand in automobile
1. Rising input costs, particularly
industry
steel & electrical power.
2. Demand in Nuclear, Power and
Refinery sectors 2. Demand for new products,

3. Access to better technology & especially from foreign OEM’s

work practices across globe which may not match by


Economic Order Quantity.

Quantitative factors:
CAGR growth rate for net sales & net profit of the company for last 3
years:

CAGR SALES

Year Sales
2016-2017 3,817.69
2017-2018 5,063.09
2018-2019 6,094.83

Compound Annual Growth Rate: 16.87%

Interpretation

Over the course of 3 periods your investment grew from $3,817.69 to $6,094.83, its
compound annual growth rate, or its overall return, is 16.87%

CAGR PROFIT
Year Profit
2016-2017 585.08
2017-2018 707.30
2018-2019 1,071.28

Compound Annual Growth Rate: 22.34%

Interpretation

Over the course of 3 periods your investment grew from $585.08 to $1,071.28, its compound
annual growth rate, or its overall return, is 22.34%.

Financial statement analysis of the company using ratio for last 3 years:

Liquidity position- Current ratio & liquid ratio:

Current Ratio=Current Asset/Current Liabilities


Year Current Ratio
2018-19 1.558868
2017-18 1.35215
2016-17 1.527023

Interpretation
Normal standard: - 2:1
If It is not in 2:1 then it is issue of concern for company. In this case current ratio is not in
2:1 so company should focus on it.

Liquid Ratio:

Liquid Ratio=Liquid Asset/ Liquid Liabilities

2018-19 1.289909
2017-18 1.141363
2016-17 1.341167

Liquidity Ratio
1.4

1.35 1.34

1.3 1.29

1.25

1.2

1.15 1.14

1.1

1.05

1
2018-19 2017-18 2016-17

Interpretation
If Liquid ratio is decreasing, then it is bad sign for company.
If Liquid ratio is increasing, then it is good sign for company.

Here
Company Lr is decreasing over the year so it is not good for company.

Profitability position- Net profit margin & return on assets:

Profit Margin Ratio=Net Income/Net Sales

2018-19 1.320581
2017-18 1.303032
2016-17 1.254601

Interpretation
If profit margin ratio is increasing over the year it is good sign for company.
Here
Profit margin ratio has increased from 1.25 to 1.32, so it is good for company.

Return on Assets:
Return on asset=Total Revenue/Total Asset
2018-19 2017-18 2016-17

6,686.01 5,434.66 3,964.15


9,939.06 8,365.95 7,677.03
0.6727 0.64962 0.51637

Interpretation
Company Return on asset is increasing over the year it is good sign for company.
Here
We can see in the above graph company return on asset is consecutively increasing over the
year.

Solvency position- Debt/Equity ratio: -

2018-19 15.22775
2017-18 9.76914

2016-17 16.97123

Debt/Equity ratio
18 16.97
16 15.23

14
12
9.77
10
8
6
4
2
0
2018-19 2017-18 2016-17

Interpretation
If this ratio is increasing, then debt is increasing on company.

Turnover position: Total assets turnover ratio


Total Asset turnover ratio=Net Sales/Total
Asset
Net Sales=Revenue from operations  

2018-19 2017-18 2016-17


6,094.83 5,006.11 3,616.22
9,939.06 8,365.95 7,677.03

0.61322 0.598391 0.471044

Total Asset turnover ratio


0.7
0.61 0.6
0.6

0.5 0.47

0.4

0.3

0.2

0.1

0
2018-19 2017-18 2016-17

Interpretation
If these ratio is increasing over a period of time, it suggest that company is utilizing its asset
efficiently to generate the sales.
Here, Company turnover ratio has increased over the year from 0.47 to 0.61.
Dividend pay-out ratio:
Year Dividend

2018-19 125%
2017-18 125%
2016-17 250%

PE Ratio
YEAR P/E Ratio
2018-19 25.89895687
2017-18 42.14519073
2016-17 34.77350992

Market price analysis of the company for last 3 years

Capital Base
Average Market Appreciatio Gain=Capital Year
Year price Dividend n appreciation+dividend Price Return(%)
2018-19 595.68 125 -44.51 80.49 640.19 12.57
2017-18 640.19 125 203.43 328.43 436.76 75.20
2016-17 436.76 250 -61.20 188.80 497.96 37.91
2015-16 497.96 25        
             
AVERAGE
RETURN FOR 3
  Years   41.90      

Year EPS P/E Ratio


2018-19 23 25.89895687
2017-18 15.19 42.14519073
2016-17 12.56 34.77350992

Interpretation
If earning per share is increasing, then it is good sign for company.

Here

Company EPS is increasing over the year, so it shows that company is doing good, It is good
for company.

Market capitalization of the company for last 3 years:-

Year Enterprise Value


(in Rs. Cr.)
2016-2017 25656.17
2017-2018 34490.15
2018-2019 26492.19

Analysis of capital structure of the company:

XPeriod Instrument Authorized Issued -PAIDUP-


Capital Capital
From To   (Rs. cr) (Rs. cr) Shares Face Capital
(nos) Value (Rs. Cr)
2018 2019 Equity Share 195 93.2 465588632 2 93.1
2017 2018 Equity Share 195 93.2 465588632 2 93.1
2016 2017 Equity Share 60 46.6 232794316 2 46.6

SHARE HOLDING PATTERN


Share Holding Pattern in (%)
Standalone Jun-19 Mar-19 Dec-18 Sep-18

Promoters 45.76 45.76 45.76 45.76

Pledged 0 0 0 0
FII/FPI 18.89 19.27 19.26 20.19
Total DII 23.02 22.79 21.74 21.87

Fin.Insts 4.06 3.96 3.96 3.46


Insurance Co 1.6 1.6 1.55 1.49

MF 7.51 7.07 6.83 7.09


Others DIIs 9.85 10.16 9.4 9.83

Others 12.34 12.18 13.24 12.17


Total 100.01 100 100 99.99
AUTOMOTIVE INDUSTURY ANALYSIS

Introduction to the outlook of Industry.

The automobile industry in India is world’s fourth largest, with the country currently being
the world's fourth largest manufacturer of cars and seventh largest manufacturer of
commercial vehicles in 2018. Indian automotive industry (including component
manufacturing) is expected to reach Rs 16.16-18.18 trillion (US$ 251.4-282.8 billion) by
2026. Two-wheelers dominate the industry and made up 81 per cent share in the domestic
automobile sales in FY19. Overall, Domestic automobiles sales increased at 6.71 per cent
CAGR between FY13-18 with 26.27 million vehicles being sold in FY19. Indian automobile
industry has received Foreign Direct Investment (FDI) worth Rs 1,49,424 crore (US$ 22.35
billion) between April 2000 and June 2019. Five per cent of total FDI inflows to India from
April 2000 to June 2019 went into the automobiles sector.
Domestic automobile production increased at 6.96 per cent CAGR between FY13-19 with
30.92 million vehicles manufactured in the country in FY19.
In FY19, commercial vehicles recorded the fastest pace of growth in domestic sales at 17.55
per cent year-on-year, followed by three-wheelers at 10.27 per cent year-on-year.
The passenger vehicle sales in India crossed the 3.37 million units in FY19 and is further
expected increase to 10 million units by FY20. Production of passenger vehicles rose 2.8 per
cent.
The government aims to develop India as a global manufacturing as well as a research and
development (R&D) hub. It has set up National Automotive Testing and R&D Infrastructure
Project (NATRiP) centres as well as a National Automotive Board to act as facilitator
between the government and the industry. Under (NATRIP), five testing and research centres
have been established in the country since 2015. NATRIP’s proposal for “Grant-In-Aid for
test facility infrastructure for Electric Vehicle (EV) performance Certification from NATRIP
Implementation Society” under FAME Scheme which had been approved by Project
Implementation and Sanctioning Committee (PISC) on 3rd January 2019.
The Indian government has also set up an ambitious target of having only electric vehicles
being sold in the country. Indian auto industry is expected to see 8-12 per cent increase in its
hiring during FY19. The Ministry of Heavy Industries, Government of India has shortlisted
11 cities in the country for introduction of electric vehicles (EVs) in their public transport
systems under the FAME (Faster Adoption and Manufacturing of (Hybrid) and Electric
Vehicles in India) scheme. The first phase of the scheme has been extended to March 2019
while In February 2019, the Government of India approved the FAME-II scheme with a fund
requirement of Rs 10,000 crore (US$ 1.39 billion) for FY20-22. Number of vehicles
supported under FAME scheme has increased to 192,451 units in March 2018 from 5,197
units in June 2015. On July 29, 2019, Inter-ministerial panel has sanctioned 5,645 electric
buses for 65 cities.
Overall automobile exports reached 4.63 million vehicles in FY19, implying a CAGR of 8.11
per cent between FY13-19. Automobile exports grew 14.50 per cent in FY19. It is expected
to grow at a CAGR of 3.05 per cent during 2016-2026.
Domestic two-wheeler industry is expected to grow at 8-10 per cent during FY19.
Contribution of Industry towards India’s GDP, Employment etc.
Major players in the Industry.
Hindustan Motors:

One of the oldest car manufacturing companies in India, it has produced cars like
Ambassador and Contessa. Having collaborated with foreign companies like Mitsubishi, and
General Motors Corporation of USA, it has made an irrefutable mark in the manufacturing
cars like the Lancer. Apart from this, the company has impressive manufacturing statistics in
the field of passenger Cars, utility vehicles, and earthmoving equipment.

Mahindra and Mahindra:

Established in the year 1945, this company has given a cutting-edge dimension to the Indian
automobile industry. It began as a general-purpose utility vehicle manufacturing unit and
expanded its business to automotive, tractor, MSL and inter trade. Presently, the largest
company in the private sector, this company boasts of an advanced technological
infrastructure and manpower.

Bajaj Auto Limited:

Established in the year 1945, Bajaj Autos started off as a trading company. It was responsible
for marketing two-wheelers from Italy in India. Presently, one of the front runners in market
capitalization, Bajaj Autos attained its license to produce two wheelers in the year 1959. With
the help of technical collaboration from Piaggio of Italy, the company now boasts of being
the top five automobile companies when it comes to annual turnover.

As the company's contract with Piaggio expired in the year 1971, it became the sole
manufacturer of two and three wheelers under the 'bajaj' tag. Its manufacturing hub in
Maharashtra has an annual production of 1.35 million.

Maruti Udyog Limited:

The first ever Indian company to manufacture low cost cars, in collaboration with Suzuki of
Japan, Maruti is considered to be the largest automobile company in India. The company is
known for producing high quality, fuel-efficient cars with Japanese technology, but adaptive
to Indian roads. The company has attained the annual production mark of 3,20,000, which is
a trend setter for any Indian company. Among the cars it has manufactured are the Maruti
800, Zen, Maruti Omni, Wagon R, Baleno and the like.

Tata Motors:

India's biggest manufacturer of commercial vehicles, the company boasts of an annual


turnover of Rs 101.3 billion. It is counted among the top ten vehicle manufacturing
companies of the world in 5-15 tonnes segment. Among its chief productions are light
commercial vehicles, commercial vehicles, multi-utility vehicles, and passenger cars.

PESTEL Analysis of the automotive/automobile industry

The global automobile industry is a multi billion industry with several large brands
competing for market share. Since its foundation in the 19th century, this sector has grown to
become an important part of the world economy in terms of revenue. Due to the large size of
the auto industry, it’s growth and revenue are impacted by several forces. The recent financial
crisis had hit this sector really hard. However, since the global recession has passed, the sales
of automotives are again back on track. Apart from the manufacturing of vehicles globally,
this sector is also involved in the marketing and sales of automotives. During the recent
years, the Asian markets have proved highly lucrative for the automotive brands. China has
particularly grown to become the world’s largest market for vehicles. In the 21st century
technology and  innovation have become the main basis of  differentiation for the vehicle
manufacturers. Apart from it, the focus is on fuel efficiency and environment friendliness.
The pressure on the industry with regards to pollution control and carbon footprint has
gotten high. All the major players are trying to bring more fuel efficient and low emission
vehicles to the markets. The sales of electric vehicles that are emission free, is also catching
up. Presented below is a PESTEL Analysis of the automotive industry that  shows how the
political, economic and other  factors impact this industry.
Political :

Political factors play an important role and have a direct impact on the profitability of
the automotive industry. Governments around the world are favoring low emission vehicles.
Moreover, taxes on the luxury vehicles and fuel guzzlers have grown higher. The markets
like EU and UK are providing government subsidy for the low emission vehicles.
Environment friendly vehicles have grown in demand globally. They are also receiving
higher government support for their low environmental impact. As such the government rules
and regulations heavily affect the revenues of the vehicle brands. Technology that is fuel
efficient and low on emission can easily pass government rules. Moreover, the import rules
and taxes vary from country to country. Overall, there are so many political factors affecting
the auto industry. Changing government regimes as well political regulation of the market
can from time to time cause favorable or unfavorable fluctuations. However, the political
factors are generally outside the control of the businesses except for lobbying. Still, their
importance can be understood from the fact that companies have shifted their manufacturing
bases to countries where the wage related regulations are lenient. Companies have to manage
their costs and the political factors can have a significant role in this area. If China has
become a favorite of several brands then the reason is the low labor cost which is because of
the lenient wage regulation. The import and export laws that vary across nations can also be a
headache for automakers in case of the nations where import laws are stiff. Thus, the
government policies to a remarkable extent affect the fortunes of the auto companies.

Economical:

Economic forces are also of particular importance in the context of the automotive industry.
This sector was hit hard by the recent economic crisis. When the economic conditions are not
good, the sales of vehicles fall. The demand for luxury or high priced vehicles is also affected
poorly during poor economic conditions. Moreover, the taxes on the high priced vehicles are
high in several markets. If the economic conditions are good, the sales of vehicles can remain
high. The sales are generally higher in the developed countries. In the developing and under-
developed markets, they are comparatively low. The developed markets see higher sales
as the purchasing power of the customers is higher. In these markets, the sales of the higher
priced variants is also higher. The lower priced variants are generally in demand in the
developing and underdeveloped markets. Thus, the size of the economy and the economic
conditions globally, have a major impact on the profitability of the  auto industry in various
markets. There are various angles to analyze the importance of the economic factors for the
industry. The most used angle is the purchasing power of the customers. It dips during
economic downturns. Industries are  dependent heavily on the purchasing power of the
customers. If a large number of brands have focused on bringing low cost cars to the market,
it is because they know they can tap into a larger customer segment this way.

Socio-Cultural:

The market is influenced deeply by the socio-cultural forces. The automotives industry is also
affected by the changing socio cultural trends and people’s preferences. Vehicle makers have
to adopt to these forces. Every year new models are released keeping people’s preferences in
mind. Moreover, specific styles are preferred in certain cultures. In some markets while the
SUVs might be in higher demand, in the others the sedans might be preferred. Age
distribution in the various populations is also an important factor that  vehicle makers have to
keep in mind while targeting the consumers. They should release vehicles based on the
preferences of their target population. Apart from it from culture to culture, people’s style and
preferences also differ. The result is that while a particular model will sell in a market, it
might not be as popular in the other. Social trends also keep changing continuously affecting
the popularity of brands and models. Changing trends may some times make the older models
obsolete or go out of fashion.
 

Technological:

Technology and innovation have become important determinants of market share in the
automotive industry. The more innovative the company, the higher is its market share. Given
this fact, all the major players make huge investments in research and development. Brands
like Toyota, Hyundai and Ford are investing in low emission and  environment friendly
vehicles. Toyota is even planning to release a driverless car in the coming years. Not just this,
the major technological players are trying to enter this sector of the industry. In the recent
years technological innovation has remained a major basis of differentiation for the
automotive makers. It is because the customers’ focus shifted towards fuel efficient and high
mileage vehicles. The sales of the low  emission and fuel efficient vehicles is always high. It
shows that technology is one of the most important factors  affecting the sales and
profitability of the automotive industry.
 
Ecological/Environmental:

The laws related to environment friendliness and carbon emissions are growing stiffer around
the globe. Given that all the major players in the automotive industry had to focus upon low
emission vehicles. The vehicles which are low on emissions and fuel  consumption receive
tax subsidies and are favored by the government and law. The pollution tests have grown
stricter and the vehicles passing these tests only are allowed in certain markets including EU
and UK. Environment friendliness has become an important test for the vehicle makers in the
21st century as governments have started focusing heavily on pollution control.

Legal:

Law is another important factor that gets to affect the profitability and performance of the
vehicle brands. Vehicles selling in the international market are subject to laws related to
product quality and safety. The pollution laws have grown stricter. The vehicles being
exported overseas have to pass strict  emission controls. Next are the laws related to product
safety that have an important impact on the sales of the vehicles. Recently, Toyota had to
recall its vehicles because of its faulty airbags. There have been similar cases in the past
putting passenger safety under question. Due to such accidents, governments have made laws
related to passenger safety stricter. Apart from it, there are environmental laws, tax laws and
several other laws that the vehicle companies have to deal with while operating in
the international market.

Conclusion:

All the factors discussed above are of importance in the context of the trillion dollar
automotive industry. The relative importance of the economic, environmental and legal
factors has grown in the 21st century . More and more vehicle makers are now focusing upon
low emission, high mileage and low cost vehicles. The socio-cultural factors and consumer
preferences also have a major and direct impact on the auto industry. However, above all it is
the emergence of the new markets that  has affected the intensity of competition in this
sector. Every major player is investing in technology and innovation to grab a larger share of
the market.

References:

https://www.ibef.org/industry/automobiles-presentation

https://www.moneycontrol.com/financials/bharatforge/balance-sheetVI/BF03#BF03

https://www.economywatch.com/indian-automobile-industry/top-players.html

https://notesmatic.com/2016/09/automotive-industry-pestel/

http://panmore.com/general-motors-company-marketing-mix-4ps-analysis

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