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    Industrial Data: Group: 2

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    Elle7lobo
    The document analyzes the Indian automobile industry's growth rate and impact on the Indian economy. It discusses key topics like the major players in the automobile market, the industry's contribution to the GDP and employment, factors influencing it like subsidies and inflation, and the government's mission plan to double the industry's economic contribution by 2010 through policies promoting competitiveness and indigenous production. The observation is that the industry is in a growth phase with opportunities for further investment.

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    Industrial Data: Group: 2

    Uploaded by

    Elle7lobo
    119 views17 pages
    The document analyzes the Indian automobile industry's growth rate and impact on the Indian economy. It discusses key topics like the major players in the automobile market, the industry's contribution to the GDP and employment, factors influencing it like subsidies and inflation, and the government's mission plan to double the industry's economic contribution by 2010 through policies promoting competitiveness and indigenous production. The observation is that the industry is in a growth phase with opportunities for further investment.

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    Automobile Industry

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    The document analyzes the Indian automobile industry's growth rate and impact on the Indian economy. It discusses key topics like the major players in the automobile market, the industry's contribution to the GDP and employment, factors influencing it like subsidies and inflation, and the government's mission plan to double the industry's economic contribution by 2010 through policies promoting competitiveness and indigenous production. The observation is that the industry is in a growth phase with opportunities for further investment.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    119 views17 pages

    Industrial Data: Group: 2

    Uploaded by

    Elle7lobo
    The document analyzes the Indian automobile industry's growth rate and impact on the Indian economy. It discusses key topics like the major players in the automobile market, the industry's contribution to the GDP and employment, factors influencing it like subsidies and inflation, and the government's mission plan to double the industry's economic contribution by 2010 through policies promoting competitiveness and indigenous production. The observation is that the industry is in a growth phase with opportunities for further investment.

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    of 17

    INDUSTRIAL DATA

    Group : 2

    AUTOMOBILE INDUSTRY
    TOPICS

    Name Contents
    Fiona Introduction, Players in
    the market

    Ghansham Impact on the economy


    Elvira Forces that influence
    the automobile
    industry
    Deepika Mission plan 2010
    Dhara Observation
    OBJECTIVE

    To analyze Indian Automobile Industry’s growth rate


    and its impact on Indian economy.
    INTRODUCTION
     Automobile Industry:
     One of the major industrial sectors in India is the automobile sector.
     Until 1982, only three manufacturers - M/s. Hindustan Motors, M/s. Premier
    Automobiles and M/s. Standard Motors tenanted the motor car sector.
     In 1983 , Maruti Udyog Ltd. (MUL) came up as a government initiative in
    collaboration with Suzuki of Japan to establish volume production of
    contemporary models.
     Automobile Industry was delicensed in July 1991 with the announcement of the
    New Industrial Policy.
     With the gradual liberalization of the automobile sector since 1991, the number
    of manufacturing facilities in India has grown progressively.
     Indian Automobile Industry at Global level:
    India ranks 1st in the global two-wheeler market

    India is the 4th biggest commercial vehicle market in the world

    India ranks 11th in the international passenger car market

    India ranks 5th pertaining to the number of bus and truck sold in the world

    India is the second largest tractor manufacturer in the world.


    PLAYERS IN THE MARKET

    Product Players
    Cars/SUVs Suzuki, Honda, Toyota,
    Mitsubishi, GM, Ford, Daimler-
    Chrysler, Skoda, Fiat, Hyundai,
    Tata, M&M
    Two-wheelers TVS, Hero Honda, Bajaj, Yamaha,
    Kinetic, LML
    CVs Tata, Ashok Leyland, Tatra, Eicher-
    Mitsubishi, Swaraj-Mazda, M&M,
    Volvo
    Tractors Escorts, M&M, L&T, Punjab
    Tractors, New Holland, ITL-
    Renault, John-Deere, Steyr
     Domestic Sales
     Passenger Vehicles segment in 2010 (April-August), grew at 33.88 percent over same
    period last year. Passenger cars grew by 34.32 percent, utility vehicles grew by 22.56
    percent and multi purpose vehicles grew by 50.68 percent in April-August 2010 over
    same period last year.
     The overall domestic sale of commercial vehicles segment registered growth of 44.75
    percent in 2010 (April-August) as compared to the same period last year. Medium &
    Heavy Commercial Vehicles (M&HCVs) registered growth at 65.91 percent and Light
    Commercial Vehicles (LCVs) grew at 29.68 percent.
     During 2010 (April-August), three wheelers sales recorded a growth rate of 20.15
    percent. While passenger carriers grew by 23.84 percent and goods carriers grew at
    5.46 percent in this period.
     Two wheelers registered a growth rate of 27.22 percent in 2010 (April-August).
    Scooters, mopeds and motorcycles grew by 44.45 percent, 24.18 percent and 24.41
    percent respectively.
     Exports

     In 2010 (April-August), overall automobile exports registered a growth rate of 48.42


    percent.
     Passenger vehicles, two wheelers, commercial vehicles and three wheelers segments
    grew by 5.07 percent, 56.71 percent, 91.51 percent and 114.86 percent respectively in
    2010 (April-August) over 2009 (April-August).
    IMPACT ON THE ECONOMY
     GDP and Automobile Industry
     The average income of Indians has grown by 10.5% to RS. 44345 in
    2009-10 as against RS. 40141 in 2008-09. reflecting improvement in the
    living standards of an average Indian.
     Today, automobile sector in India is one of the key sectors of the
    economy in terms of the employment.
     As the world economy slips into recession hitting the demand hard and
    the banking sector takes conservative approach towards lending to
    corporate sector, the GDP growth has downgraded it to 7.1 per cent for
    2008-09 and predicted it to be 6.5 per cent for FY 2009-10 Mr. Montek
    Singh (Planning Commission of India.)
     Recession
     All the major auto companies enjoyed the high growth ride till the mid 2008.
    But at the end of the year, industry had witnessed the fall in sales compared
    to last year. In December 2008, overall production fell by 22 % last year.
     One of its supporting facts is that the sales in December 2008 for passenger
    vehicles fell by 13.86% over December 2007 .
     Two Wheelers minor growth of 1.85 % during April – December 2008.
    However, Two Wheelers sales recorded 15.43 percent fall in December 2008
    over the same month last year. Although the sector was hit by economic
    slowdown, overall production (passenger vehicles, commercial vehicles, two
    wheelers and three wheelers) increased from 10.85 million vehicles in 2007-
    08 to 11.17 million vehicles in 2008-09.
     Passenger vehicles increased marginally from 1.77 million to 1.83 million
    while two-wheelers increased from 8.02 million to 8.41 million. Total number
    of vehicles sold including passenger vehicles, commercial vehicles, two-
    wheelers and three-wheelers in 2008-09 was 9.72 million as compared to
    9.65 million in 2007-08.
     Inflation
     The effect of inflation has affected every sector which is related to
    car manufacturing and production.
     Despite of negative inflation, there was an increasing trend of sales
    in auto sector.
     FDI’s
     In India FDI up to 100 percent, has been permitted under
    automatic route to this sector.

     India enjoys a cost advantage with respect to casting and forging


    as manufacturing costs in India are 25 to 30 per cent lower than
    their western counterparts.
     FDI inflows in Automobile Industry 2008-09 was Rs.5,212 Cr an
    increase of 47.25% compare to 2007-08, while in April-May 2009 it
    was around Rs.497 Cr.
    FORCES THAT INFLUENCE THE AUTOMOBILE INDUSTRY

     Threat of Substitutes

     Barriers to entry

     Supplier’s power

     Buyers’ Power
    MISSION PLAN 2010
     Policy Initiatives

    Auto Policy

     Vision
    To establish a globally competitive Automotive Industry in India and to double its
    contribution to the economy by 2010.
     Objectives
    This policy aims to promote integrated, phased, enduring and self-sustained
    growth of the Indian automotive industry. The objectives are to:-

    (i) Exalt the sector as a lever of industrial growth and employment and to achieve a
    high degree of value addition in the country;
    (ii) Promote a globally competitive automotive industry and emerge as a global source
    for auto components;
    (iii) Establish an international hub for manufacturing small, affordable passenger cars
    and a key center for manufacturing Tractors and Two-wheelers in the world;
    (iv) Ensure a balanced transition to open trade at a minimal risk to the Indian economy
    and local industry;
    (v) Conduce incessant modernization of the industry and facilitate indigenous design,
    research and development;
    (vi) Assist development of vehicles propelled by alternate energy
    sources;
    (vii) Development of domestic safety and environmental standards at
    par with international standards.
    OBSERVATION

     Indian Automobile Industry is in the growth phase and the expected


    growth rate is 9-10% for FY2009-10.

     There is lot of scope for growth and huge opportunities to invest in


    Foreign Companies setting up their ventures in India.
    WEBLOGRAPHY
     www.acmainfo.co
     www.ibef.org

     www.surfindia.com

     www.siamindia.com

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