Automobiles From the Eyes of Amit

8/6/2019 Automobiles From the Eyes of Amit

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AUTOMOBILE SECTOR

PRESENTED BY:-

AMIT SINGH RAWAT


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CONTENT

y Introduction of automobile sector

y Evolution of sector

y Key products

y Key players

y Contribution in terms of GDP.

y SWOT analysis

y Future of Automobile Sector


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The design of the Cugnot Steam Trolley (1769)

y History of the automobile begins as early as 1769, with the creationof steam-powered automobiles capable of human transport In 1806.

y The first cars powered by internal combustion engines runningon fuel gas appeared, which led to the introduction in 1885 of theubiquitous modern gasoline or petrol-fueled internal combustionengine.

Automobile History in brief


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AUTOMOBILE SECTOR

y The automotive sector is one of the key segments of theeconomy having extensive forward and backwardlinkages with other key segments of the economy.

y It contributes about 14 per cent in India's GrossDomestic Product (GDP) and 15 per cent in India'sindustrial production.

y This sector has generated about 4.5 lakh of directemployment and about one crore of indirectemployment.


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The automobile industry in India

y 9th largest automobile industry .

y 2nd largest two-wheeler market,

y 11th largest Passenger Cars producers.

y 4th largest in Heavy Trucks.

y 2nd largest tractor manufacturer.

y Annual production of over 2.3 million units.


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Evolution of Sector

INITIAL YEARS - BEFORE 1980S

Manufacturing was licensed.

Excise duties, sales tax & custom duty.

Premier automobiles Ltd & Hindustan Motors .

PROTECTIONISM 1980S

Entry of MUL, Better Product with govt. support

Sellers Market .

Long waiting periods .

Strict licensing, restrictive tariff structure


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Con.

LIBERALIZATION 1990S

Decrease in custom & excise .

Auto finance boom more players . Joint ventures trend .

GLOBALIZATION - 2000S

Buyers market .

Control the market .

Easy finance .

Diversifying to related activities .


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KEY PRODUCTS


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AUTOMOBILE

2 WHEELER 3 WHEELERPASSENGER

VEHICLE

COMMERCIAL

VEHICLE

MOTORCYCLE SCOOTERS SCOOTERETTES MOPEDS


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MAJOR PLAYERSy TATA

y MARUTI SUZUKI

y ASHOK LEYLAND

y BAJAJ

y HERO HONDA

y TVS MOTORS


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The Key PlayersThe Key Players

Commercial

vehicles

TATA Motors, Ashok Leyland, Swaraj Mazda, Mahindra & Mahindra ,Force

motors, Eicher Motors

Passenger

vehicle

TATA Motors, Maruti Udyog, Honda Motors, Toyata, Skoda, Mahindra &

Mahindra, Daimler Chrysler, Hindustan Motors

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

Three Wheeler Bajaj Auto

Bajaj Auto,

24.4%

TVS Motors,

17.7%

Yamaha,3.8%

Others, 5.8%

HondaMotors, 8.5%

Hero Honda,

39.8%

Maruti, 50.37

Hyundai, 19.17

Tata Motors,

17.19

Honda, 5.33

Others, 5.73

Two wheeler Passenger vehicle


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*As on Dec 2008

GDP


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*Estimated

FOREIGN TRADE


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SWOT Analysis

Strengths

y India is the strongest player in the small

car segment of the global automobilemarket.

y Sustainable labor cost advantage .

y

Government incentives for manufacturingplants .

y Strong engineering skills in design.


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Weakness

y Indian is lacking in properinfrastructure. This is slowing the paceof growth of auto industry.

y Rising cost of production .

y Low investment in Research andDevelopment.


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Opportunities

yEfforts for fuel economy.

yTechnologies using Hydrogen

as automotive fuel.

y Cut in excise duties .


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Threats

y Companies not focusing on R &D are under great risk.

y High competition from foreignplayers.

y Lack of technology for Indiancompanies.


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yAutomobile industry expert predicts that by2050 every sixth car in the world will be for

Indians.

y By 2010 India will take over Germany insales volumes and Japan by 2012 .

y Nissan Motors plans to export 250,000vehicles manufactured in its India plant by2011.

y General Motors announced its plans toexport about 50,000 cars manufactured in

India by 2011.


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THANK YOU

Automobiles From the Eyes of Amit

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