FOUR WHEELER

INDUSTRIESBY:

GROUP 3

Introduction of four wheelers

•The first car rolled onto the Indian Roads in the year 1898

• Initially, the car market in India did not experience much boom but with intervention of the favorable government policies the automobile market and car market in India, specifically, have seen great developments.

• At present India offers fourth largest passenger car market in Asia.

Car markets experience growth..!!

• The liberation policy of the Indian government has encouraged several foreign investors to come in and invest in the car market.

• Decrease in the rate of duties for small cars has also encouraged a significant boom.

• By noticing the trend of car buyers, sellers and manufacturers, it has been stated that the car market in India can be ranked the third largest car market in the world after China and USA.

How did this growth happen..??

• A good network of roads and transportation system.

• With increased GDP, per capita income and high ownership capacity several foreign companies coming in India led to a significant rise in the lifestyle of the people residing in the country.

• shedding of the geographical limitations through the intervention of media.

Factors affecting demand for four wheelers...

• Life standard of people.• Income of people.• Prices of the four wheelers.• Price of fuel.• Family size.• Number of buyers.• Price of other four wheelers.• Future prices.• Quality of the four wheelers

manufactured by different four wheeler companies.

Recent demand of four wheelers in india

•Demand for cars outstrips supply •This festive season, interest

rates and new car launches made the customers to go for four-wheelers.

•Due to huge demand, many of the established car brands in India are out of stock.

• Domestic car market is expected to scale new sales graph for the fiscal in September on the back of this huge demand.

• This would help the industry surpass the mark of 1.2 lakh cars that were sold in August,2009 in India. This also suggests that both used cars and new cars will be in demand for a long period.

Exports of four wheelers from India

• India has emerged as one of the world's largest manufacturers of small cars.

• India's strong engineering base and expertise in the manufacturing of low-cost, fuel-efficient cars has resulted in the expansion of manufacturing facilities of several automobile companies

• Export of passenger cars from India have grown considerably over the last decade.

Four wheeler sales

Import of four wheelers to India

•Imported cars attract a bulky import duty, therefore people prefer to opt for the locally assembled cars.

• the car import sales slowed down by 4 per cent to 4,951 units in 2008 and in turn the domestic sales of luxury car reported a good sales growth.

Effect of inflation on car market

• The increase in the price of fuel and the steel has led to a slower growth rate of the car industry in India.

• The production of Indian cars has been brought to a noticeable halt for inflation.

• Due to inflation it has also been noticed that the sales of car are being motivated by the discount offers that the automobile companies are offering to the buyers.

• Overall it has been noticed that the automobile market in India and specially the car market in India have experienced a downtrend .

• The hike in petrol went by 5% whereas the price of diesel went up by 3%. The rise in the price of the fuel has depreciated the sales of cars by 8%.

Four wheeler production..

• The findings of International Organization of Motor Vehicle Manufacturers revealed that in India the car production had grown to 30% in 2004, thus leading the table, Brazil came a distant second with the increase of 17%.

Major players in India

• Maruti Udyog • Hyundai Motors India Ltd • General Motors India• Tata Motors Ltd.• Mahindra and mahindra Ltd.• Hindustan Motors • Daimler Chrysler India Private Ltd • Skoda Auto India Private Ltd • Fiat India Private Ltd • Nissan Motor Co. Ltd.

MARUTI SUZUKI INDIA LTD.

• Maruti Udyog limited was established in February 1981 and changed its name and ownership in September 2007, to Maruti Suzuki India limited when Suzuki motor corporation Japan bought a major stake (54.2%) in the company.

• Headquarters in Gurgaon, next to New Delhi.

• Market leader in automobile production and revenue generation.

• Brought automobile revolution in India

• Annual production capacity of over 7,00,000 units in two facilities, located in Gurgaon and Manesar.

• Largest automobile company in India having sold over 7,50,000 cars in the year 2007-2008 of which only 53,000 were exported.

• Over 6 million cars on India’s roads since the rolling of first car in Guragaon plant in December,1983.

• On the international market India is the forth largest exporter of automobiles due to high demand for Maruti Suzuki cars.

• Exports to Kenya, Uganda, Sri Lanka, Ethiopia, Europe, etc.

• Maruti Udyog ltd has added an impressive number of packages to boost and underpin their car sales.

• There are over 2600 franchised service stations to ensure that their Maruti vehicles are properly serviced.

• Maruti insurance, established in 2002, provides insurance cover for its customers.

• Maruti finance provides customers with loans to purchase the Maruti vehicle.

• There is also a Maruti TrueValue, which is a market for used Maruti cars, customers are able to sell, buy or exchange used vehicles

Hyundai

• It is a subsidiary of Hyundai motors company that is based in South Korea.

• Largest passenger car exporter and second largest car manufacturer in India.

• Ever since the company, started it has had intentions of placing high tech vehicles in the market, and as a result it built a second plant.

• This plant produces 3,00,000 units annually, raising the total production of both plants to 6,00,000 yearly.

• In 2008, this company has registered total sales of 4,89,328.

• These sales had increased by 49% compared to the previous year.

• In the domestic market it sold 2,45,387 units while exported 2,43,931.

• To celebrate its achievement of 10 yrs of service, in 2008, the company drove i10 kappa from New Delhi to Paris.

• This company believes in producing eco friendly cars and hence received a certification for sustainable management practices.

• The company has employed over 75,000 persons stationed in 193 companies.

• To meet its great demand it has opened 6,000 showrooms and dealerships.

• This company is known for quality and sleek cars.

• They always produce car that stand out from other brands,

General motors India

• Established in 1994 as a joint venture with the CK Brian group of companies.

• Joint venture lasted till 1999 when GMOC decided to buy the remaining shares and completely own the company.

• It is owned by world’s largest automaker GM.

• This automobile company is located in Halol and has its headquarters at Gurgaon, Haryana.

• Chevrolet is the fastest growing brand name in India.

• The car is known for its quality, safety, reliability, environment friendliness and innovation.

• This company has 95 sales point and 110 service points.

• To serve its clients fully the company has opened call centers that work 27x7 to answer client complaints and other information related to its products

• Due to the increasing demand of Chevrolet vehicles its manufacturing plant has expanded from 60,000 units to 85,000.

•The company is also constructing a new plant in Talegaon which will be producing 1,40,000 vehicles annually.

•It is one of the stable automobile manufacturing companies in India.

•General Motors India earns high annual revenues and offers employment to many Indian citizens.

Advantages of four wheeler industries

• Cars are a necessity in the modern world. These are used to transport people and goods to various places.

• Cars are more comfortable, spacious and elegant.

• The four wheeler industries keeps the research and design divisions working constantly to build better and more fuel efficient cars.

• It has generated new jobs. (example : US moved its manufacturing processes overseas due to cost of labor )

• The oil problem has also prompted manufacturers to try finding alternative fuels to power these vehicles. Japan has developed the electric car.

• The advantages of the automotive industry outweigh its disadvantages.

• Though this might make the world one giant corporation, as long as there is a demand from the consumer, manufacturers will still continue to build better, safer and more efficient machines.