Automobile Industry in India 2
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Transcript of Automobile Industry in India 2
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SLOWDOWN OF
AUTOMOTIVE INDUSTRYIN INDIA.
BY :-
SOP2 ,B2
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TEAM MEMBERS
SREEJITH KURUP
RAKESH KR. VERMA
VIKASH SINGH
MADAN MOHAN
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SOP OWNER.
MR. BINU.R
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CONTENT. INTRODUCTION
SEGMENTATION & CONTRIBUTIONTOGDP GROWTHRATE AUTOMOBILE
PRODU
CTION
TRENDS
FESTIVALSALES DOMESTIC SALES IMPACTOFSLOWDOWN SCOPE CHALLENGES INCENTIVES OPPORTUNITIES
ACMAAPPEAL CONCLUSION BIBLIOGRAPHY
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INTRODUCTION>10th largest in the world with an annual
production of 11.07 million units.
>One of the key industry propelling Indianeconomy.
>Provide employment to 1.31 crore (13.1million) people including both direct &
indirect employment.>100% FDI is permissible.
> It crossed a total turnover of over US $15billion(Rs64,500crore).
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SEGMENTATIONS &
CONTRIBUTION TO GDP.Automobile industry in India issegmented into three parts:-
Two wheeler Four wheeler
Heavy vehicle
>Adds 4-5% to the countrys GDP.>Contributing 17% to the kitty of
indirect taxes to the government.
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GROWTH RATE Performance of the industry for the
fiscal year 2006-07 was very upbeat.Overall growth rate of this sector was13.56%.
The growth rate of automobile sector
in fiscal year 2007-08 was 10.7%. The growth rate of automobile sector
in current fiscal year is just 4.3%.
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FESTIVAL FAILURES. Vehicles sales declined by 14.42% in
October to 8.65 lakh against 10.11 lakh
last year. According to SIAM domestic car sales
falls 6.59% to 98,900 units in oct 08against 1.05 lakh units in oct 07.
Maruti Suzuki and Tata Motors are themost affected companies.
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DOMESTIC
SALES.
Source: BUSINESS LINE
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IMPACT OF SLOWDOWN
ASHOK LEYLAND:-
AL has decided for three days
work a week to decrease theproduction, as the demand hasdecreased by 40%.
It has reported 50% slump inOctober sales as compared to lastyear.
Ashok
Leyland shares fell to
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Contd..TATAMOTORS:-
TM has given three days holidays from 6-
8 nov to match production with demand.
No work notice to its non permanentworkers.
Sales decreased by 25-40% last month. Shares dropped to Rs131 as 52 week
lowest.
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Contd..HYUNDAIMOTORS:- HMILTarget was to sell 6 lakhs cars in
2008 which includes export of 2.7lakhs
cars. But now the target is to close with5.15 lakhs cars.
In 2007 HMIL total sales went by 9.2% to3,27,160 cars of which domestic sales roseby 7.6% to 2lakh & exports 11.8% to1.26lakh cars.
Company sold 4.07 lakh cars till October,up by 49% over the same period in 2007which include domestic sales of 2.15lakh,
28% increase & export of 1.92lakh cars anincrease of 83%.
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Contd..MARUTISUZUKI:-
During the financial year 2006-07, it sold
6,35,629 units with a turnover of Rs145.9billion with a profit of Rs15.62 billionhaving a market share of 54.6%.
It sold 7,64,842units including export of
53024 units. The sales rose up by 13.3% inthe year 2007-08. the company had a totalincome of 1,88,238 million with a profit of17,308 million after tax.
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SCOPE# The industry is going through a phase of
rapid changes and high growth. With new
projects coming up on a regular basis, theindustry is undergoing technologicalevolutions to compete with world players.
# The major players are expanding their
plants and focusing on mass customization,mass production, etc.
# The overall investment in the sector hasbeen increasing quite rapidly.
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ContdIndian automobile sector will be investinga huge amountof Rs. 30,000 crores by2010.
# For example----- Maruti Udyog Ltd has plans of investing
Rs. 6,500 crores. Tata Motors is coming up with an
in
vestme
nto
fR
s. 2,000 cro
res in
itscompactcar project.
Apart from the Indian auto giants foreignplayers like Hyundai is also coming upwith an investment planof more thanRs.
3,800 crores inIndia.
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CHALLENGES
Lack of the availability ofconsumer finance.
Rise in the cost of raw materials.
High Interest rates.
High cost of fuel. Fall in demand.
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INCENTIVES Excise duty on small cars reduced to
14% E
xcise cut on two and three wheelers to12% Excise duty on buses and chassis cut
from 16% to 12% Excise duty on hybrid cars cut from 24%
to 14% Custom duty on steel reduced from 5%
to nil.
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OPPORTUNITIES
Among fastest growing car market .
Overall growth of 9%.
Focus on to set up R&D andengineering centers.
Exposure to address the global automarket while leveraging the domesticmarket.
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AC
MA APPEAL ACMA-- Automotive components Association
of India.
It has appealed to government to provide a
relief package in the form of Bridge Policyto help the sector cope with the currenteconomic slowdown.
The president of ACMA has suggested some
measures to the government to beimplemented as soon as possible.
They are:-
>Waving off of custom duty on raw material.
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Contd>Assured funding from bank on capital
expenditure.
>Increasing the time of repaymentofSMEs.
>Further cutdownonthe CRR.
>Special loan scheme for the autocomponent industry at concessionalrate.
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CONCLUSION.India is a developing economy andhas immense potential to overcome
the hindrance. But currentlygovernment need to provide someimmediate relief to the industry tosustain their growth over the next
few months so as to ensure that themomentum built over the last fiveyears is continued in the future also.
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BIBLIOGRAPHY http://www.automobileindia.com
http://www.newstrackindia.com
http://www.indianbusiness.nic.in
http://www.business.mapsofindia.com
http://www.automotiveworld.com
The Economic times
The Hindu
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questions ???????...
most welcome
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Thanks