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History The automotive industry began in the 1890s with hundreds of manufacturers that pioneered the horseless carriage . For many decades, the United States led the world in total automobile production. In 1929 before the Great Depression, the world had 32,028,500 automobiles in use, and the U.S. automobile industry produced over 90% of them. At that time the U.S. had one car per 4.87 persons. [3] After World War II , the U.S. produced about 75 percent of world's auto production. In 1980, the U.S. was overtaken by Japan and became world's leader again in 1994. In 2006, Japan narrowly passed the U.S. in production and held this rank until 2009, when China took the top spot with 13.8 million units. With 19.3 million units manufactured in 2012, China almost doubled the U.S. production, with 10.3 million units, while Japan was in third place with 9.9 million units. [4] Safety Safety is a state that implies to be protected from any risk, danger, damage or cause of injury. In the automotive industry, safety means that users, operators or manufacturers do not face any risk or danger coming from the motor vehicle or its spare parts. Safety for the automobiles themselves, implies that there is no risk of damage. Safety in the automotive industry is particularly important and therefore highly regulated. Automobiles and other motor vehicles have to comply with a certain number of norms and regulations, whether local or international, in order to be accepted on the market. The standard ISO 26262 , [5] is considered as one of the best practice framework for achieving automotive functional safety . [6] In case of safety issues, danger, product defect or faulty procedure during the manufacturing of the motor vehicle, the maker can request to return either a batch or the entire production run. This procedure is called product recall . Product

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Transcript of Kkkkk

HistoryThe automotive industry began in the 1890s with hundreds of manufacturers that pioneered the horseless carriage. For many decades, the United States led the world in total automobile production. In 1929 before the Great Depression, the world had 32,028,500 automobiles in use, and the U.S. automobile industry produced over 90% of them. At that time the U.S. had one car per 4.87 persons.[3] After World War II, the U.S. produced about 75 percent of world's auto production. In 1980, the U.S. was overtaken by Japan and became world's leader again in 1994. In 2006, Japan narrowly passed the U.S. in production and held this rank until 2009, when China took the top spot with 13.8 million units. With 19.3 million units manufactured in 2012, China almost doubled the U.S. production, with 10.3 million units, while Japan was in third place with 9.9 million units.[4]

Safety

Safety is a state that implies to be protected from any risk, danger, damage or cause of injury. In the automotive industry, safety means that users, operators or manufacturers do not face any risk or danger coming from the motor vehicle or its spare parts. Safety for the automobiles themselves, implies that there is no risk of damage.

Safety in the automotive industry is particularly important and therefore highly regulated. Automobiles and other motor vehicles have to comply with a certain number of norms and regulations, whether local or international, in order to be accepted on the market. The standard ISO 26262,[5] is considered as one of the best practice framework for achieving automotive functional safety.[6]

In case of safety issues, danger, product defect or faulty procedure during the manufacturing of the motor vehicle, the maker can request to return either a batch or the entire production run. This procedure is called product recall. Product recalls happen in every industry and can be production-related or stem from the raw material.

Product and operation tests and inspections at different stages of the value chain are made to avoid these product recalls by ensuring end-user security and safety and compliance with the automotive industry requirements. However, the automotive industry is still particularly concerned about product recalls,[7] which cause considerable financial consequences.

EconomySee also: Automotive industry by country

Around the world, there were about 806 million cars and light trucks on the road in 2007, consuming over 260 billion US gallons (980,000,000 m3) of gasoline and diesel fuel yearly.[8] The automobile is a primary mode of transportation for many developed economies. The Detroit branch of Boston Consulting Group predicts that, by 2014, one-third of world demand will be in the four BRIC markets (Brazil, Russia, India and China). Other potentially powerful automotive

markets are Iran and Indonesia.[9] Emerging auto markets already buy more cars than established markets. According to a J.D. Power study, emerging markets accounted for 51 percent of the global light-vehicle sales in 2010. The study expects this trend to accelerate.[10][11]

World motor vehicle production

By year

Global production of motorvehicles

(cars and commercial vehicles)

Year Production Change1997 54,434,0001998 52,987,000 -2.7%1999 56,258,892 6.2%2000 58,374,162 3.8%2001 56,304,925 -3.5%2002 58,994,318 4.8%2003 60,663,225 2.8%2004 64,496,220 6.3%2005 66,482,439 3.1%2006 69,222,975 4.1%2007 73,266,061 5.8%2008 70,520,493 -3.7%2009 61,791,868 -12.4%2010 77,857,705 26.0%2011 79,989,155 3.1%2012 84,141,209 5.3%2013 87,300,115 3.7%

By country

— Top 20 motor vehicle producing countries 2013 —

By manufacturer

Rank of manufacturers by production, 2012

Rank Group Country Total Cars LCV HCV Heavy Bus1 Toyota  Japan 10,104,424 8,381,968 1,448,107 268,377 5,972

2 GM  United States 9,285,425 6,608,567 2,658,612 7,558 10,688

3 Volkswagen  Germany 9,254,742 8,576,964 486,544 169,064 22,170

4 Hyundai  South Korea 7,126,413 6,761,074 279,579 70,290 15,470

5 Ford  United States 5,595,483 3,123,340 2,394,221 77,922

6 Nissan  Japan 4,889,379 3,830,954 1,022,974 35,451

7 Honda  Japan 4,110,857 4,078,376 32,481

8 PSA  France 2,911,764 2,554,059 357,705

9 Suzuki  Japan 2,893,602 2,483,721 409,881

10 Renault  France 2,676,226 2,302,769 373,457

11 Chrysler  United States 2,371,427 656,892 1,702,235 12,300

12 Daimler AG  Germany 2,195,152 1,455,650 257,496 450,622 31,384

13 FIAT  Italy 2,127,295 1,501,979 498,984 85,513 40,819

14 BMW  Germany 2,065,477 2,065,216 261

15 SAIC  China 1,783,548 1,523,398 190,848 67,805 1,497

16 Tata  India 1,241,239 744,067 314,399 165,171 17,602

17 Mazda  Japan 1,189,283 1,097,661 91,622

18 Dongfeng Motor  China 1,137,950 539,845 245,641 337,545 14,919

19 Mitsubishi  Japan 1,109,731 980,001 127,435 2,295

20 Changan  China 1,063,721 835,334 166,727 59,978 1,682

21 Geely  China 922,906 922,906

22 Fuji  Japan 753,320 734,959 18,361

23 BAIC  China 720,828 83,033 285,081 348,659 4,055

24 FAW  China 706,012 480,443 52,983 168,793 3,793

25 Great Wall  China 624,426 487,704 136,722

26 Mahindra  India 606,418 429,101 173,083 3,461 773

27 Isuzu  Japan 600,470 32,309 565,617 2,544

28 Chery  China 563,951 550,565 13,386

29 AvtoVAZ  Russia 553,232 553,232

30 Brilliance  China 489,770 231,527 231,862 26,381

31 JAC  China 476,356 200,278 114,864 145,811 15,403

32 BYD  China 455,444 455,444

Rank Group Country Total Cars LCV HCV Heavy Bus33 Chongqing Lifan Motor Co.  China 272,657 183,750 24,035 64,872

34 Volvo  Sweden 234,680 224,000 10,680

35 Proton  Malaysia 162,455 134,934 27,521

36 China National Heavy Duty Truck  China 127,792 1,224 125,792 776

37 Paccar  United States 125,336 125,336

38 GAZ  Russia 125,319 88,899 21,561 14,859

39 Ashok Leyland  India 117,738 30,776 61,519 25,443

40 Hunan Jiangnan Automobile Manufacturing Co.  China 117,051 117,051

41 Guangzhou Auto Industry  China 114,157 87,408 25,611 1,138

42 Shannxi  China 86,283 8,044 166 77,808 265

43 Porsche  Germany 86,083 86,083

44 South East (Fujian)  China 85,515 81,512 4,003

45 Navistar  United States 83,371 72,005 11,366

46 Xiamen King Long  China 78,226 36,451 41,775

47 UAZ  Russia 70,434 32,469 37,965

48 Tangjun Ou Ling  China 69,167 16,459 52,708

49 Hebei Zhongxing  China 63,221 4,955 58,266

50 Sichuan Nanjun  China 60,743 18,296 41,602 845

Automobile industry in National Level

Automotive industry is the key driver of any growing economy. It plays a pivotal role in

country's rapid economic and industrial development. It caters to the requirement of equipment

for basic industries like steel, non-ferrous metals, fertilisers, refineries, petrochemicals, shipping,

textiles, plastics, glass, rubber, capital equipments, logistics, paper, cement, sugar, etc. It

facilitates the improvement in various infrastructure facilities like power, rail and road transport.

Due to its deep forward and backward linkages with almost every segment of the economy, the

industry has a strong and positive multiplier effect and thus propels progress of a nation. The

automotive industry comprises of the automobile and the auto component sectors. It includes

passenger cars; light, medium and heavy commercial vehicles; multi-utility vehicles such as

jeeps, scooters, motor-cycles, three wheelers, tractors, etc; and auto components like engine

parts, drive and transmission parts, suspension and braking parts , electricals, body and chassis

parts; etc.

In India, automotive is one of the largest industries showing impressive growth over the years

and has been significantly making increasing contribution to overall industrial development in

the country. Presently, India is the world's second largest manufacturer of two wheelers, fifth

largest manufacturer of commercial vehicles as well as largest manufacturer of tractors. It is the

fourth largest passenger car market in Asia as well as a home to the largest motor cycle

manufacturer. The installed capacity of the automobile sector has been 9,540,000 vehicles,

comprising 1,590,000 four wheelers (including passenger cars) and 7,950,000 two and three

wheelers. The sector has shown great advances in terms of development, spread, absorption of

newer technologies and flexibility in the wake of changing business scenario.

The Indian automotive industry has made rapid strides since delicensing and opening up of the

sector in 1991. It has witnessed the entry of several new manufacturers with the state-of-art

technology, thus replacing the monopoly of few manufacturers. At present, there are 15

manufacturers of passenger cars and multi-utility vehicles, 9 manufacturers of commercial

vehicles, 16 of two/ three wheelers and 14 of tractor, besides 5 manufacturers of engines. The

norms for foreign investment and import of technology have also been liberalised over the years

for manufacture of vehicles. At present, 100% foreign direct investment (FDI) is permissible

under the automatic route in this sector, including passenger car segment. The import of

technology for technology upgradation on royalty payment of 5% without any duration limit and

lump sum payment of USD 2 million is also allowed under automatic route in this sector. The

Indian automotive industry has already attained a turnover of Rs. 1,65,000 crore (34 billion

USD) and has provided direct and indirect employment to 1.31 crore people in the country.

The growth of Indian middle class, with increasing purchasing power, along with strong macro-

economic fundamentals have attracted the major auto manufacturers to Indian market. The

market linked exchange rate, well established financial market, stable policy governance work

and availability of trained manpower have also shifted new capacities and flow of capital to the

auto industry of India. All these have not only enhanced competition in auto companies and

resulted in multiple choices for Indian consumers at competitive costs, but have also ensured a

remarkable improvement in the industry's productivity, which is one of the highest in Indian

manufacturing sector.

The Department of Heavy Industry, under the Ministry of Heavy Industries and Public

Enterprises, is the main agency in India for promoting the growth and development of the

automotive industry. The department assists the industry in achievement of its expansion plans

through policy initiatives, suitable interventions for restructuring of tariffs and trade, promotion

of technological collaboration and up-gradation as well as research and development. The

department is also concerned with the development of the heavy engineering industry, machine

tools industry, heavy electrical industry, industrial machinery, etc.

The automobile sector recorded growth of 13.56% in 2006-07. During the year 2007-08 (April-

December), the industry decelerated at 3.49%. The automobile exports crossed the US$ 1 billion

mark in 2003-04 and increased to US$ 2.76 billion in 2006-07. The industry exported 15% of its

passenger car production in 2006-07, 10% of commercial vehicles production, 26% three

wheelers and 7% two wheelers. Similarly, during the year 2006-07, the auto component industry

continued its high growth path and emerged as one of the fastest growing sector in Indian

engineering industry by clocking 21% growth in output during the year. This industry crossed a

total turnover of over US $ 15 billion (Rs. 64,500 crore), with exports of US $ 2.9 billion (Rs.

12,643 crore) during the year. Investment in the industry also grew by over Rs. 4500 crore

during the year as the industry continued to invest in capacity enhancements and new greenfield

sites to cope with the increasing demand. The auto component industry’s export growth was 15%

in 2006-07. While, the total imports was US $ 3.3 billions (Rs. 14,644 crore). On the quality and

productivity front, auto component industry maintained its leadership with more than 95%

companies being certified as per the ISO 9000 system standards and more than 70% of the

companies are certified as per the ISO/TS 16949 standards. It has also the distinction of having

the maximum number of 11 Deming award winning companies.

In order to further accelerate and sustain advancements in the auto sector, the department has

undertaken several policy measures and incentives. The most important being the announcement

of the 'Auto Policy' of 2002, which aims to establish a globally competitive automotive industry

in India and double its contribution to the economy by 2010. The policy seeks to set out the

direction of growth for the sector and promote R&D therein so as to ensure continuous

technology upgradation as well as building up of better designing capacities. It emphasizes on

low emission fuel auto technologies and availability of appropriate auto fuels in order to take

auto manufacturing to a self-sustaining level. Broadly, the objectives of the auto policy are to:-

Exalt the sector as a lever of industrial growth and employment and to achieve a high

degree of value addition in the country

Emerge as a global source for auto components

Establish an international hub for manufacturing small, affordable passenger cars and a

key center for manufacturing tractors and two-wheelers in the world

Ensure a balanced transition to open trade at a minimal risk to the Indian economy and

local industry

Conduce incessant modernization of the industry and facilitate indigenous design,

research and development

Steer India's software industry into automotive technology

Assist development of vehicles propelled by alternate energy sources

Development of domestic safety and environmental standards at par with international

standards.

Another milestone in this field has been the launching of the National Automotive Testing and R

&D Infrastructure Project (NATRIP) which aims to create core global competencies in

automotive sector and facilitate its integration with the world economy. It seeks to develop 'state-

of -the- art' testing, validation and R& D infrastructure in the country with a view to support the

growth and development effort of the automotive industry to reach international levels. NATRIP

envisages setting up of world-class and homologation facilities in India with a total investment of

Rs. 1,718 crore within the three automotive hubs of the country. These are:- Manesar in Northern

India; Chennai in Southern India; and Pune and Ahmednagar in Western India. The project

largely aims at:-

Creating critically needed automotive testing and validation infrastructure to enable the

Government to usher in global vehicular safety, emission and performance standards

Deepening of manufacturing in India by achieving high degree of value addition and

enhancing employment potential in the country

Facilitating convergence of India's strengths in IT and electronics with automotive

engineering

Enhancing India's global outreach in this sector by facilitating development and mass

production of high technology driven, affordable and globally acceptable automotive

products and by de-bottlenecking their exports and

Removing the crippling absence of basic product testing, validation and development

infrastructure for automotive industry.

Besides, the announcement of 'Automotive Mission Plan' for the period of 2006-2016 is a major

step taken to make India a global automotive hub. The Mission Plan aims to make India emerge

as the destination of choice in the world for design and manufacture of automobiles and auto

components, with output reaching a level of US$ 145 billion (accounting for more than 10% of

the GDP) and providing additional employment to 25 million people by 2016. It envisages

increase in production of automotive industry from the current level of Rs. 169000 crore to reach

Rs. 600000 crore by 2016. The Mission seeks to oversee the development of the automotive

industry, that is, the present scenario of the sector, its broad role in the growth of national

economy, its linkages with other key facets of the economy as well as its future growth

prospects. This is involved in improving the automobiles in the Indian domestic market,

providing world class facilities of automotive testing and certification as well as ensuring a

healthy competition among the manufacturers at a level playing field.

The future challenges for the Indian auto industry in achieving the targets defined in the

Automotive Mission Plan would primarily consist of developing a supply base in terms of

technical and human capabilities, achieving economies of scale and lowering manufacturing

costs, as well as overcoming infrastructural bottlenecks. It also involves stimulating domestic

demand and exploiting export and international business opportunities. In all these, the role of

the Government is of facilitating infrastructure creation, promoting the country’s capabilities,

creating a favourable and predictable business environment, attracting investments and

promoting R&D. While, the role of industry is primarily of designing and manufacturing

products of world-class quality standards, establishing cost competitiveness, improving

productivity of both labour and capital, achieving scale and R & D enhancing capabilities as well

as showcasing India’s products in potential markets.

All such initiatives indicate that the Indian automotive industry has been emerging as a sunrise

sector of the economy. It is not only meeting the growing domestic demands, but also gradually

increasing its penetration in the international markets. It has been continuously restructuring

itself and absorbing newer technologies in order to align itself to the global developments and

realize its potentialities. Endowed with several advantages like low cost and high skill

manpower; globally competitive auto-ancillary industry; established testing and R & D centres;

production of steel at lowest cost; etc., the industry provide immense investment opportunities.

This has instilled confidence in auto manufacturers to face international competition as well as

improve quality standards of vehicles with safety norms in the wake of rapidly increasing traffic.

Various policy incentives including time bound implementation of Automotive Mission Plan

together with establishment of world class testing, homologation and certification facilities

would ensure Indian automotive industry a distinct edge amongst the newly emerging

automotive destinations of the world.

Automobile industry in State level

India poised to overtake China as world’s largest two-wheeler market over the next five years.

While growth in the past was driven by relatively developed, more rbanized states, future

prospects of the market will be increasingly driven by lesser saturated, developing states. While

over 60% of urban householdscurrently own a two-wheeler, less than 20 percent ofrural

households own one. In relatively developed more states, more than half og addressable

households have been covered. Afaster growth in average incomes and road infrastructure and

accessibility will drive stronger growth in two wheeler demand in the underpenetrated states.

Income and infrastructure disparities reflect on automobile demand distribution

13%

28%

28%

31%

Region-wise demand distribution (2012-13)

EastWestNorthSouth

From a regional perspective, the Southern region leads in term of two-wheeler sales owining to

higher income level. The estern region lags far behind other in automobile demand despite a

commensurate share of population owing to significantly lower income and infrastructure

penetration levels.

Less penetrated states hold key to automobile industry growth

At the state level, the top five states (Maharashrtra, Tamilnadu, Uttar Pradesh, Gujarat and Andra

Pradesh) contributed over 50% of automobile sales. Expect Uttar Pradesh, these top states all

above average in temns of per capita GDP and four wheeler penetration. Hence , to better gauge

difference in demand potential across states, a comperisaon of penetration levels, sales growth

trinds and structural demand drives in nessary

Growth trend versus penetration levels across major markets (2010-11)

Our Study shows that states with low but fast-growing average income levels (including most

eastern states) and higher sales growth of lower-priced consumer durables (such as CRT

televisions), recorded the sharpest growth in automobile sales over 2006-07 to 2010-11. On the

other hand, state towards the extreme left of the graph such as Tamil Nadu and Punjab have

already started showing lesser sensitivity of automobile penetration levels to incremental income

growth.

Road development, spending patterns highly linked to two wheeler sales

Evidence of infrastructure development driving ownership of durables in less-penetrated states is

also already visible. Better road connectivity in several states has sharply driven up two-wheeler

ownership during 2004-05 to 2009-10. In Rajasthan, Bihar, Orissa and Uttar Pradesh, although

overall ownership of two-wheelers remains low as compared to more developed states,

ownership has more than doubled between 2004-05 and 2009-10.

PESTEL

Political/ Legal Economic Social Technological

-Environmental

regulation and

protection

- Economic growth - income distribution - Government

spending on research

- Taxation - Monetary policy - Demographics - Government and

industry focus on

technological effort

- International trade

regulation

- Government

spending

- Labor/social

mobility

-New discoveries and

development

- Consumer

protection

- policy towards

unemployment

- Lifestyle changes - speed of technology

transfer

- Employment law - Taxation - Attitudes to work

and leisure

- Rates of

technological

obsolescence

Government

organizatio n

- Exchange rates - Education -Energy use and costs

- Competition

regulation

- Inflation - Fashions and fads - Changes in material

sciences

- Stage of the business

cycle

- Health and welfare -Impact of change in

information

technology

- Economic mood”

- Consumer

confidence

- Living condition - Internet

Political

In 2002, the Indian government formulated an auto policy that aimed at promoting

integrated, phased, enduring and self-sustained growth of the Indian automobile industry.

Allows automatic approval for foreign equity investment up to 100 percentage in the

automotive sector and does not lay down any minimum investment criteria.

Confirms the government’s intention on harmonizing the regulatory standards with the

rest of the world.

Indian government auto policy aimed at promoting an integrated, phased and conductive

growth of the Indian automobile industry.

Ensure a balanced transition to open trade at minimal risk to the Indian economy and

local industry.

Establish an international hub for manufacturing small affordable passenger cars

Assist development of vehicle propelled by alternative energy source.

Promoting multi-model transportation and the implementation of mass rapid transport

system.

Economic

Economic pressures on the industry are causing automobile companies to reorganize the

traditional sales process.

Government has granted concessions, such as reduced interest rates for export financing.

The Indian economy has grown at 4.8 percentage per annum (2013 March)

The manufacturing sector has grown at 8-10 percentage per annum in the last few year.

More than 90 percentage of the vehicle purchase is on credit.

Finance availability to vehicle buyers has grown in scope during the last few year.

Several Indian firms have partnered with global players. While some have formed joint

ventures with equity participation, other also has entered into technology tie-ups.

Establishment of Indian as a manufacturing hub, for mini, compact cars, and for auto

components.

Social

Since changed lifestyle of people, leads to increased purchase of automobiles, so

automobile sector have a large customer base to serve.

The average family size is small, which makes it favorable to buy a four wheeler.

Upward migration of household income levels.

85 percentages of cars are financed in India.

India customers are highly discerning, educated and well informed. They are price

sensitive and put a lot of emphasis on value for money.

Preference for small and compact cars. They are socially acceptable even amongst the

well off.

Preference for fuel efficient cars with low running costs.

Technological

More and more emphasis is being laid on research and development activities carried out

by companies in india.

The government of india is promoting national automotive Testing and Research and

Development infrastructure project (NATRIP) to support the growth of the auto industry

in india.

Technological solutions helps in integrating the supply chain, hence reduce losses and

increase profitability.

Internet makes it easy to collect and analyses customer feedback.

With the entry of global companies into the Indian market, advanced technologies, both

in product and production process have developed.

With the development or evolution of alternate fuels, hybrid cars have made entry into

the market.

Major global players like Audi, BMW, and Hyundai etc. have setup their manufacturing

units in India.

Few global companies have setup Research and Development centers in India.

Environmental

Physical infrastructure such as roads and bridges affect the use of automobiles. If there is

good availability of roads are smooth then it will affect the use of automobiles.

Physical condition like environment is pleasant then it will leads to more use of vehicles.

Technological solution helps in integrating the supply chain, hence reduce losses and

increase profitability.

With the entry of global companies into the Indian market, advanced technologies both in

product and production process have developed.

Few global companies have setup Research and Development centers in india.

Legal

Legal provision relating to environment population by automobiles.

Legal provisions relating to safety measures.

Confirms the government’s intention on harmonizing the regulation standard with the rest

of the world.

Indian government auto policy aimed at promoting an integrated, phased and conductive

growth of the Indian automobile industry.

Establish an international hub for manufacturing small, affordable passenger cars

Current trends

After the de centralization in 1991 put the Indian automobile industry on a new growth

trajectory, which attracted foreign auto giants to set up their production facilities in the country

to take advantage of the various benefits it offers. Large middle class population, growth earning

power and strong technological capability have been boosting automobile demand for the past

few years. Despite economic slowdown, the Indian automobile sector has recorded phenomenal

growth, epically in passenger car segment. The passenger cars segment. The passenger vehicle

market, which constitutes around 80 Percent of automobile sales, has immense growth potential.

Anticipating the future market potential, the production of passenger vehicle is forecasted to

grow around 10 percent till 2013-14. Tata Nano has brought about a new revolution in the

country’s small car segment. Seeing the good initial response from consumers many other

players I n the industry are chalking out their plans to launch cars in the segment in next few

years.

The research covers various aspects of the Indian automobile market and gives a detailed

analysis of its various segments such as passenger vehicle, commercial vehicles, utility vehicles,

multi-purpose, two wheelers and three wheelers. Each section concisely explains the current and

future market trends, and developments in the Indian automobile market. There are immense

opportunities for various industry players including automobile manufactures and players of

automobile companies.

The government also planes to set up and auto Ancillary Park for standard district and precision

Engineering Park in Dahej. A special economic zone for auto parts also likely to be set up in

Kutch. The entrepreneual spirit and a strong base of auto ancillary units make the environment

congenial for auto makers in Gujarat. With the automakers focused on exports, Gujarat becomes

attractive with its well-developed ports. The transparency in dealing with official, ease of setting

up a business has also been hailed big advantages here.

While automobile manufactures face frequent labors strikes in other states, Gujarat has not been

confronted with major labor issue.

However, Gujarat faces strip competition from Tamilnadu and Maharashtra, with have already

established Automobiles industry’s hotspots. One of the most industrslised state in the country,

Gujarat has emerged as a manufacturing power house attracting many companies. Gujarat

account for 17 percent of India’s total fixed capital.

Ford India will set up its manufacturing unit right next to Tata Motors Nano Factory at Sanand.

This would be ford,s second plant is India. It already at manufacturing unit in maraimalai nagal,

Chennai, which has an annual capacity of 200,000 units.

MAJOR COMPETITORS OF MARUTI SUZUKI

1. Hyundai Motor India Limited

Hyundai Motor India Limited is a wholly owned subsidiary of the Hyundai Motor

Company in India. It is the 2nd largest automobile manufacturer in India.

Hyundai Motor India Limited was formed in 6 May 1996 by the Hyundai Motor

Company of South Korea. When Hyundai Motor Company entered the Indian

Automobile Market in 1996 the Hyundai brand was almost unknown throughout India.

During the entry of Hyundai in 1996, there were only five major automobile

manufacturers in India, i.e. Maruti, Hindustan, Premier, Tata and Mahindra. Daewoo had

entered the Indian automobile market with Cielo just three years back while Ford, Opel

and Honda had entered less than a year back.

For more than a decade till Hyundai arrived, Maruti Suzuki had a near monopoly over the

passenger cars segment because Tata Motors and Mahindra & Mahindra were solely

utility and commercial vehicle manufacturers, while Hindustan and Premier both built

outdated and uncompetitive products.

2. Tata Motors

Tata Motors Limited (formerly TELCO, short for Tata Engineering and Locomotive

Company) is an Indian multinational automotive manufacturing company headquartered

in Mumbai, Maharashtra, India and a subsidiary of the Tata Group. Its products include

passenger cars, trucks, vans, coaches, buses, construction equipment and military

vehicles. It is the world's seventeenth-largest motor vehicle manufacturing company,

fourth-largest truck manufacturer and second-largest bus manufacturer by volume.[7]

Tata Motors has auto manufacturing and assembly plants in Jamshedpur, Pantnagar,

Lucknow, Sanand, Dharwad and Pune in India, as well as in Argentina, South Africa,

Thailand and the United Kingdom. It has research and development centres in Pune,

Jamshedpur, Lucknow and Dharwad, India, and in South Korea, Spain, and the United

Kingdom. Tata Motors' principal subsidiaries include the British premium car maker

Jaguar Land Rover (the maker of Jaguar, Land Rover and Range Rover cars) and the

South Korean commercial vehicle manufactuer Tata Daewoo. Tata Motors has a bus

manufacturing joint venture with Marcopolo S.A. (Tata Marcopolo), a construction

equipment manufacturing joint venture with Hitachi (Tata Hitachi Construction

Machinery), and a joint venture with Fiat which manufactures automotive components

and Fiat and Tata branded vehicles.

Founded in 1945 as a manufacturer of locomotives, the company manufactured its first

commercial vehicle in 1954 in a collaboration with Daimler-Benz AG, which ended in

1969. Tata Motors entered the passenger vehicle market in 1991 with the launch of the

Tata Sierra, becoming the first Indian manufacturer to achieve the capability of

developing a competitive indigenous automobile.[8] In 1998, Tata launched the first fully

indigenous Indian passenger car, the Indica, and in 2008 launched the Tata Nano, the

world's most affordable car. Tata Motors acquired the South Korean truck manufacturer

Daewoo Commercial Vehicles Company in 2004 and purchased Jaguar Land Rover from

Ford in 2008.

Tata Motors is listed on the Bombay Stock Exchange, where it is a constituent of the BSE

SENSEX index, the National Stock Exchange of India and the New York Stock

Exchange. Tata Motors is ranked 314th in the 2012 Fortune Global 500 ranking of the

world's biggest corporations.

3. Hindustan Motors

Hindustan Motors is an Indian automotive manufacturer based in Kolkata, West Bengal,

India. It is part of the Birla Technical Services industrial group. The company was the

largest car manufacturer in India before the rise of Maruti Udyog.

It was the producer of the Ambassador motorcar, widely used as a taxicab and as a

government limousine. This car is based on the Morris Oxford, a British automobile

dating to 1954. Production of the Ambassador ceased on May 24, 2014.[1]

One of the original three car manufacturers in India, founded in 1942 by Mr. B. M. Birla,[2] it was a leader in car sales until the 1980s, when the industry was opened up from

protection. All through its history, the company has depended on government patronage

for its sales and for survival by eliminating competition. Manoj Jha was the Managing

Director and R. Yeshwanth. Manoj Jha stepped down from the post on 21 February 2012.[3] It began in Port Okha near Gujarat; in 1948, it moved to West Bengal. The Place is

now Called Hindmotor.

4. Mahindra & Mahindra

Mahindra & Mahindra Limited (M&M) is an Indian multinational automobile

manufacturing corporation headquartered in Mumbai.[2] It is one of the largest vehicle

manufacturers by production in India and the largest seller of tractors across the world.[3]

It is a part of Mahindra Group, an Indian conglomerate.

It was ranked as the 10th most trusted brand in India, by The Brand Trust Report, India

Study 2014.[4] It was ranked 21st in the list of top companies of India in Fortune India

500 in 2011.

5. Toyota

Toyota Motor Corporation (Japanese: トヨタ自動車株式会社 Hepburn: Toyota

Jidōsha KK?, IPA: [toꜜjota], / t ɔɪ ̍ oʊ t ə / ) is a Japanese automotive manufacturer

headquartered in Toyota, Aichi, Japan. In 2013 the multinational corporation consisted of

333,498 employees worldwide[5] and, as of January 2014, is the fourteenth-largest

company in the world by revenue. Toyota was the largest automobile manufacturer in

2012 (by production).[6] In July of that year, the company reported the production of its

200-millionth vehicle.[7] Toyota is the world's first automobile manufacturer to produce

more than 10 million vehicles per year. It did so in 2012 according to OICA,[6] and in

2013 according to company data.[8] As of November 2013, Toyota was the largest listed

company in Japan by market capitalization (worth more than twice as much as #2-ranked

SoftBank)[9] and by revenue.[10]

The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his father's

company Toyota Industries to create automobiles. Three years earlier, in 1934, while still

a department of Toyota Industries, it created its first product, the Type A engine, and, in

1936, its first passenger car, the Toyota AA. Toyota Motor Corporation produces

vehicles under 5 brands, including the Toyota brand, Hino, Lexus, Ranz, and Scion. It

also holds a 51.2% stake in Daihatsu, a 16.66% stake in Fuji Heavy Industries, a 5.9%

stake in Isuzu, and a 0.27% stake in Tesla, as well as joint-ventures with two in China

(GAC Toyota and Sichuan FAW Toyota Motor), one in India (Toyota Kirloskar), one in

the Czech Republic (TPCA), along with several "nonautomotive" companies.[11] TMC is

part of the Toyota Group, one of the largest conglomerates in the world.

MAJOR OFFERINGS

Maruti Suzuki Celerio

Maruti Suzuki Celerio Price by Versions

Maruti Suzuki Celerio comes in following versions with 1 engine and 2transmission and 2 fuel

options.

Maruti Ciaz

News Highlights:

February 5, 2014: Maruti Ciaz, the all-new mid-size sedan from Maruti, has been introduced at

the Delhi Auto Expo 2014. Codenamed as YL1 sedan, it is supposed to replace the current

generation SX-4. This concept model is expected to be launched during the festive season, this

year. Based on the Ertiga platform, it draws its styling cues from the Suzuki Authentics Concept

previewed at the Shanghai Motor Show'13. The petrol version features 1.4-litre K2 petrol engine,

while the diesel counterpart features 1.3-litre DDiS mill, both of which are coupled with five

speed manual gearbox. There is also an automatic version of the model. Some of its exclusive

features include extended headlamps, prominent and shining grille and increased ground

clearance. Maruti Ciaz is available in six different variants - LXi, LDi, VXi, VDi, ZXi and ZDi.

The top variants of this model are enriched with features like automatic climate control,

sunglasses holder, ABS+EBD, twin airbags, 16 inch alloy wheels, stereo system with USB and

Bluetooth functions, chromed door handles and wood trim over the dash. All the variants come

with projector headlamps.

Maruti Suzuki Swift

Maruti Suzuki Swift comes in following versions with 2 engine and 1transmission and 2

fuel options.

Maruti Suzuki Ertiga

Maruti Suzuki Ertiga comes in following versions with 2 engine and 1transmission and 3 fuel

options

Maruti Suzuki Swift DZire

Maruti Suzuki Swift DZire comes in following versions with 2 engine and 2transmission and 2

fuel options.

Maruti Suzuki Ritz

Maruti Suzuki Ritz comes in following versions with 2 engine and 2transmission and 2 fuel

options

Maruti Suzuki Alto 800

Maruti Suzuki Alto 800 comes in following versions with 1 engine and 1transmission and 2 fuel

options.

Maruti Suzuki Stingray

Maruti Suzuki Stingray comes in following versions with 1 engine and

1transmission and 1 fuel options.

Maruti Suzuki Gypsy

Maruti Suzuki Gypsy comes in following versions with 1 engine and 1transmission and 1 fuel

options.

Maruti Suzuki Eeco

Maruti Suzuki Eeco comes in following versions with 1 engine and 1transmission and 2 fuel

options.

Maruti Finance

Maruti Suzuki Finance helps customers realize their dream of owning a car, with deals right at

the dealership. Starting from choosing the right financier, until the completion of loan

formalities, we are there for our customers at every step of the auto finance process.

Advantages of Maruti Finance

One stop shop for customers’ needs: Maruti Suzuki Finance offers a customer, the

convenience of a one stop shop for all his vehicle finance related needs – the customer

can complete all finance related formalities at the dealership i.e. buying car, availing

finance – all under the same roof.

Wide Choice of financier: Maruti Suzuki Finance has a tie-up with 34 finance partners

like Sundaram Finance Car Loan, Shriram Car Finance and Bajaj Finance Car Loan, who

have a pan-India presence. This provides a wide variety of choices to the customers, who

can avail finance from any of the partners, according to their needs and profiles.

Special offers and benefits: Maruti Suzuki Finance negotiates with its finance partners

to launch special sales promotion schemes like low down payment schemes, low interest

rates and other promotional offers that are not available otherwise. We also help

customers buy cars from the wide network of Maruti Suzuki dealers who help customers

with the best car finance interest rates.

Creating customer delight: Maruti Finance, through the finance partners,endeavors to

create customer delight by providing the best car finance, financier for every profile and

geography, better interest rate, processing time etc.

Maruti Finance partner

PRIVATE FINANCE

HDFC Bank ICICI Bank Axis Bank IndusInd Bank

NBFC’SMahindra & Mahindra

Financial Services Ltd.

Sundaram Finance Ltd. Sundaram Finance Ltd Kotak Mahindra Prime

Ltd.

Reliance Capital Ltd Cholamandalam

Investment and

Finance Company Ltd.

Shriram City Union

Finance Ltd.

PUBLIC SECTOR BANK

State Bank of India State Bank of Bikaner

and Jaipur

State Bank of Patiala State Bank of

Travancore

State Bank of Mysore Punjab National Bank Bank of Baroda Oriental Bank of

Commerce

Corporation Bank Punjab and Sind Bank Allahbad Bank Canara Bank

UCO Bank IDBI Bank Jammu and Kashmir

Bank

Bank of India

United Bank of India Andhra Bank

MARUTI GENUINE ASSEORIES

MSIL caters to diverse customer segments and believe in creating a delight thru our products. We respect the

individuality and unique taste of each customer & take pride in fulfilling his aspirations.

In order to do so Maruti Genuine Accessories provides a wide range of 1600 plus accessories, which helps

customer make a style statement by making his car look rich & glamorous. Today accessorizing your car has

become "Way of Life".

Keeping this in mind we make MGA products as perfect amalgam of Quality, Durability, Aesthetics and

Designing. By making customers aware of true quality in accessories, MGA has always set new standards in

the car accessories market.

Institutional Customer

Corporate Sales

Corporate Sales

Maruti Suzuki has been maintaining a business relationship with many corporate houses and

various benefits are given to these customers depending upon the eligibility criteria.

Customers are broadly classified under Elite, Signature and Value . We also provide Group /

Bulk purchase incentives with minimum quantity criteria. The purchases can be made as a

corporate or for the personnel.

EPCG / High Sea Sales

Foreign diplomats, ambassadors and members of international organizations enjoy excise duty

waivers & sales tax waivers, as per exemption given by Government of India on car purchase.

The newly launched Grand Vitara is also available under EPCG / High Sea Sales.

Special Scheme

Maruti Suzuki, being the market leader, is ever looking forward to expand the market and

include newer segments of the Indian population into its fold. Few of the segments tapped by the

company are the Government Employees, Teachers and Doctors.

Fleet Solution

Fleet Solution

From Maruti Suzuki Alto to Grand Vitara, Maruti Suzuki has all models to suit all kinds of

business requirements and safety. We offer customized solutions as per your business

requirements for your Fleet / Taxi.

DGS&D

DGS&D

Sale to Government Departments is being carried out by the terms and conditions as defined by

DGS&D (Director General of Supplies and Disposal). Government department purchases

vehicles in the name of their department based on the terms and conditions as defined in the rate

contract issued by DGS&D.

Eligibility

All Central Government Departments

All State Government Departments.

All PSUs

Rate Contracts

Sales Process

Process for DGS&D is clearly written down in DGS&D rate Contract with other terms &

conditions*.

Advance Payment:

Supply order with Advance payment in favour of Maruti Suzuki India Limited*.

Form-131 for Credit operations:

Supply order completes in all respects with financial certificate.

Prices

Prices for the vehicles are mentioned in the Annexure-A of the rate contract.

Rate contract copies can also be downloaded from the DGS&D website

DGS&D rate contract for Gypsy

DGS&D rate contract for SX4

DGS&D rate contract for Non AC staff Car

DGS&D rate contract for Ambulance.

Our Customers

Canteen Stores Department (CSD)

Canteen Stores Department (CSD)

CSD Eligibility

This scheme is extended to all Commissioned Officers and PBORs who as per the guidelines

defined by the Ministry of Defence.

Models

All Maruti Suzuki models (except Gypsy and special application) are registered with Canteen

Stores Department.

General procedure to book a car through CSD

1. Submission of an Indent for purchase of a car in the CSD Depot.

2. Full Payment by a Demand Draft in favour of 'Canteen Stores Department Public Fund

Account (Main)' payable at selected location.

3. Serving officer, to attach copy of salary slip and PAN Number (or as per Guidelines by CSD).

4. Retired officer, to attach copy of discharge slip/preliminary pension order and PAN Number

(Or as per guidelines by CSD).

5. Once booking is complete, Canteen Stores Department will place an indent of purchase on a

delivery dealer.

6. Dealer will process the case.

Documents required by the customers:

1. Indent application form

2. Demand Draft in favor of Canteen Stores Dept. Public Fund A/c (Main) payable at depot

location

3. Residence Proof

4. Serving Certificate

5. Latest pay slip copy

6. Proof of permanent registration

7. PAN card copy

8. In case the customer is not personally coming (It would be most appropriate if the customer

comes) an authority letter is required in the name of AREA MANAGER CSD Depot - With the

concerned person?s name. The same has to be signed by the customer.

9. On submission of the above mentioned documents, CSD will release the purchase order.

The following documents will be provided by a dealership to a customer:

Copy of Purchase Order (P.O) issued by CSD.

Copy of Authority letter issued by CSD.

Copy of Sales Certificate (Form 21) issued by CSD.

Copy of Dealer invoice / Bill copy.

Temporary registration (The customer should inform this beforehand about the Temp.

Registration address)

N2N Leasing

N2N Leasing and Fleet management services

Maruti Suzuki's N2N 'Leasing and Fleet Management Services', as the name suggests, takes care

of all the end-to-end needs of a Corporate Fleet. N2N offers corporate clients a hassle-free

experience of owning a car, through comprehensive services like Leasing, Maintenance,

Convenience services and Re-marketing. Maruti Suzuki is the first automobile manufacturer to

tailor-make Lease solutions for corporate clients and we have been satisfactorily serving our

clients for more than a decade now.

What is Leasing?

It is essentially a way of obtaining a vehicle for a defined period of time (tenure)

It is a mode for financing a Residual Value (RV) based product (RV - Residual Value is the

value which the car is likely to fetch at the end of the tenure)

You only pay for usage of the asset for a time period fixed by you

What is Fleet Management?

Fleet management as an offering means taking care of all vehicle related needs

Following services are normally offered through fleet management:

Vehicle Acquisition

o Comprehensive Vehicle Acquisition Program with single window solution

o Insurance, registration and road tax management services

Insurance Cover

o A comprehensive Insurance Renewal and Accident Management Program with

virtually cash-less claim transactions

o Zero-Depreciation policy for full accidental cover

Vehicle Maintenance

o A comprehensive OEM-backed Full-Service Maintenance Program

o Tyre/battery replacements as per OEM recommendations

o Extensive MIS reporting of car's condition from time to time

o Emergency support services

o Replacement vehicles in case maintenance down-time is more than 24 hours

Vehicle Remarketing

o A Vehicle Resale Program for your fleet

o Hassle-free resale of vehicles through Maruti Suzuki's Pre-Owned Car channels

Our Leasing products:

Operating Lease (with or without maintenance)

Finance Lease (with or without maintenance)

Benefits under N2N:

Maintain a healthy balance sheet - Off balance-sheet transaction

Save on Income Tax - Rentals can be claimed as expense

Save more - VAT benefit under N2N leasing

Hedge risk against fluctuating market value and resale price of the vehicle

Monthly rental fixed - Long term accurate budgeting

No down payment - No blocking of funds

Complete Fleet Care - Scheduled maintenance by authorized workshops

Zero depreciation accidental cover

Increase in liquidity for your company

Choice to keep or return the vehicle at the end of lease tenure

NRI “Dil Se”

NRI “Dil Se”

Maruti Suzuki’s exclusive programme for Indians( NRI's/PIO's) residing overseas- “Dil Se”,

makes it easy for one to gift a car in India to their loved ones.

Under this programme, you can buy/gift a car online where we offer you a special price and host

of other value added services that will ensure that you have one absolutely unique & magical car

buying experience.

Maruti Suzuki has made your purchase of car online simple with the most convenient payment

options and also a free home delivery of the car anywhere in India.

Gift a car to your loved ones and enjoy the buying experience!

Major Player

Starting from the era when there was too slim of a variety of cars available in Indian market,

Indian automobile industry has come up a long way to have a diverse array of cars these days.

There are a number of top automobile companies running their operations in India, which again

have a range of models in different segments of cars. However, while looking for top 10

automobile companies in India, one name that would always lead the list is Maruti Suzuki India.

Maruti Suzuki has consistently been the dominant leader in the Indian automobile industry.

However, there are also other big names like Tata Motors, Mahindra and Mahindra, Hyundai

Motors, Hindustan Motors etc. - See more at: http://business.mapsofindia.com/automobile/top-

automobile-companies.html#sthash.NJ9zUtSd.dpuf

During its early days, the most of the Indian car auto manufacturers banked upon foreign

technologies. But the scenario has changed over the years and currently, the Indian auto

manufacturers are using their own technology. Due to the growing pace of Indian automobile

market, a number of car manufacturers including the global leaders have locked their horns in the

Indian auto market.

After the recent setback due to the global recession, the Indian automobile market has again

started to grow up. Though the auto sales except commercial vehicles started creeping up since

the beginning of this financial year, it's only the month of September 2009 when the market saw

buoyant sales. It fuelled optimism in the industry. The retail trade also started soaring up. The

auto sales saw a 9.6% rise in the month of September with a sale of 1,092,262 units. The

passenger vehicle sales also grew by 20.32%. The two wheeler market was also augmented by

7.67% during the same period with a total sale of 838,150 units. The same trade is applicable for

the three-wheeler market, which saw a growth of 13.51% (with sale of 41,137 units) during the

same period.

List of Top Automobile Companies in India, 2011(Figures in ` Crores)

2011 ET 500 Rank Company Turnover PAT MCRP CR Assets

7 Tata Motors Ltd. 123222.91 9273.62 56499.77 52209.48

21 Mahindra & Mahindra Ltd. 37026.37 3079.73 49945.17 36926.19

19 Maruti Suzuki India Ltd. 38140.69 2382.37 31475.63 14762.9

41 Hero MotoCorp Ltd. 19669.29 1927.9 40398.63 4447.22

46 Bajaj Auto Ltd. 17008.05 3454.89 46885.69 5154.96

67 Ashok Leyland Ltd. 11133.04 631.3 6653.15 6621.16

101 Sundaram Clayton Ltd. 7419.41 64.63 529.23 2428.87

110 TVS Motor Company Ltd. 6569.99 127.94 2985 1745.06

148 Eicher Motors Ltd. 5138.64 243.12 4448.27 474.14

396 Force Motors Ltd. 1574.05 58.62 730.05 583.79

1. Tata Motors

Tata Motors is the largest automobile company of Asia headquartered in Mumbai, India. Annual

Projected revenue for 2010-11 is US$ 27.629 billion. It also occupies the number one position in

commercial car segment. Tata Motors enjoys 31.2% of market share in the multi-utility vehicles,

which in luxury car segment, it has 6.4% market share. Most of the Tata Motors' vehicles are

sold predominantly in India and over 4 million vehicles have been produced domestically within

India.

Tata sold 52,531 units of vehicles during September 2009, comparing to 49,647 units during

September 2008 (a growth of 6%). In domestic market, Tata Motors sold 49,650 units during the

same period, comparing to 45,234 units in September 2008.

2. Maruti Suzuki India Limited (MSIL)

Maruti Suzuki India is an undisputed leader in the Indian automobile industry. Started its journey

in February 1981 as Maurti Udyog Limited, the company created history in the Indian

automobile market with its hugely popular four-wheeler model Maruti 800. The company

became the first Indian automobile company to manufacture one million vehicles in 1994. The

company became Maruti Suzuki India Limited on September 17, 2007.

Maruti's average revenue for the year ending 2010-11 is US$7.13 billion. Maruti sold 83,306

units of vehicles in September 2009, comparing to 71,000 units in the same month in the

previous year (with a growth rate of 17.3%). It also exported 11,712 units during September

2009, comparing to 6,318 units in the same month in the previous year (with a growth rate of

85.4%).

3. Hyundai Motor India Limited (HMIL)

Hyundai Motor India Limited, founded in 1998 and a subsidiary of Korean auto giant Hyundai

Motor Company, is the second largest car manufacturer in India. It is also country's largest

passenger car exporter. Hyundai Motor came very close to the hearts of the Indian auto lovers

through its flagship model Santro.

After the recession, Hyundai Motor saw a growth rate of 25% in the domestic market. During

September 2009, HMIL sold 53,804 units, comparing to 46,218 units during September 2008. In

the domestic market, it sold 27,803 units in September 2009, comparing to 22,311 during

September 2008. The overseas sales during the same period also grew up 9% as it sold 26,001

units in September 2009, comparing to 23,907 units during the same month in the previous year.

4. Mahindra & Mahindra Limited (M&M)

Mahindra &Mahindra Limited is another auto-giant in India. A part of the Mahindra Group,

M&M is the largest SUV maker in the country. In September 2009, M&M registered a domestic

sale of record 26,921 units, comparing to 22,729 units in September 2008 (with an increase of

18.4%). On the other hand, it sold 15,296 units of UV in the same period comparing to 10,641

units in September 2008 (with a whooping growth of 43.7%).

5. General Motors India Private Limited (GM India)

General Motors India Private Limited is another top player in Indian automobile industry. A

wholly-owned subsidiary of the auto giant General Motors, GM India saw a Y-o-Y sales growth

of 49% in September 2009 with a sale of 7,654 units, comparing to 5,154 units in September

2008.

Hero MotoCorp Limited

In 2010, When Honda decided to move out of the joint venture, Hero Group bought the shares held by

Honda. Subsequently, in August 2011 the company was renamed Hero MotoCorp with a new corporate

identity.

Hero Honda Motors Limited, the joint venture between Hero Group and Honda, was the biggest two-

wheeler manufacturers in the world. It shook the Indian two-wheeler market with its famous model Hero

Honda Splendor, which became the largest selling motorcycle in the world. It consistently sold more than

1 million units of Splendors every year.

In 2008-09, Hero Honda sold about 3.28 million bikes and registered a net profit of ` 1281.7 crore. It sold

4,01,290 units of two-wheeler in September 2009, comparing to 3,85,262 in September 2008. It already

sold 11,83,235 units of two-wheelers in Q2 of FY10 with a growth rate of 21.7% against the

corresponding period of the previous year.

Bajaj Auto

Bajaj Auto is the second largest two-wheeler manufacturer in India. It is also the fourth largest two and

three-wheeler maker in the world. In September 2009, Bajaj Auto sold 249,795 units of two-wheelers,

comparing to 218,494 units in September 2008 (with a growth rate of 14.3%). During September 2009, it

also registered a growth of 12.4% in the domestic two-wheeler sales and 19.9% in two-wheeler export.

Honda Siel Cars India Limited (HSCI)

Honda Siel Cars India Limited, a joint venture between the Japanese auto giant Honda Motor Company

Limited and the Indian company Siel Limited, started its operation in December 1995. In September

2009, HSCI sold 5,794 units, comparing to 3,104 units in September 2008 (with a growth rate of 86.7%).

Toyota Kirloskar Motor Private Limited (TKM)

Toyota Kirloskar Motor Private Limited is another top Indian automobile company. A joint venture

between the Japanese auto giant Toyota Motor Corporation and Kirloskar Group, TKM has a number of

car models including Innova, Corolla, Fortuner, Camry and the Land Cruiser Prado. It sold 7,657 units in

December 2009.

Hindustan Motors

Hindustan Motors is another top automobile company in India. It was once country's largest car

manufacturer before Maruti Udyog overpowered it. Its popular model 'Ambassador' has been extensively

used as government limousine as well as taxi cab in India.

Board of Directors

Mr. R. C. Bhargava

Chairman

Mr. Kenichi Ayukawa

Managing Director & CEO

Mr. Toshiaki Hasuike

Joint Managing Director

Mr. Osamu Suzuki

Director

Mr. Amal Ganguli

Independent Director

Mr. D. S. Brar

Independent Director

Mr. Toshihiro Suzuki

Director

Mr. Kazuhiko Ayabe

Director & Managing Executive

Officer (Supply Chain)

Mr. Masayuki Kamiya

Director (Production)Mr. Kinji Saito

Director

Ms. Pallavi Shroff

Independent Director

Mr. R.P. Singh

Independent Director

Organisation Structure

DIVISIONS AND DEPARTMENTS

Corporate Services Division

Legal & Secretarial Department

Corporate Communication Cell

Protocol

Strategic Initiative Group

Recruitment & Management Compensation

Human Resource Division

Employee Relations Department

Establishment & Time Office

Factory Administration Department

Organizational Development Department

Production Division

Plant- 1

Plant- 2

Plant- 3

Plant- 6 at Manesar

Production Engineering

Production Engineering Division

Production Service Division

Engineering Directorate

QAIN Division

Service Division

Service- 1-5

MSS(D)

Parts Inspection Division

Engineering Division

Supply Chain division

Supply Chain- 1,2,3 Division

Shipping & transport Department

Imports Department

Consumables Department

Information Technology Division

Application Group1 (AG1)

Application Group2 (AG2)

Application Group3 (AG3)

Information Technology Strategies(ITS)

IT Operation and Services(ITOS)

Marketing & Sales Secretariat

Marketing Strategy & Development

Marketing

Sales

Exports

Web-IT, E-Commerce

Spare Parts Division

Spare Parts Procurement

Warehousing & Dispatch

Spare Parts Sales

Accessories

Vigilance Division

Security Wing

Vigilance Wing

Finance Division

Budget, Cost & Accounts Department Income Accounting

The total project costs, priority, completion time and personnel’s required were estimated. Initial

plans were drawn up as to how the project would proceed to its final implementation, while

running the existing system so that company’s information needs were not affected.

SWOT analysis tof Maruti Suzuki

Strengths

Maruti Udyog limited (MUL) is in a leadership position in the market with a market share of

48.74.

Major strength of MUL is having largest network of dealers and after sales service centers in the

country.

Good promotional strategy is adopted by MUL to transfer its thoughts to the people about its

products.

Maruti Suzuki recorded highest number of domestic sales with 9,66,447 units from 7,65,533

units in the previous fiscal. It recently attained the 10million domestic sales mark.

Strong Brand Value and Loyal Customer Base are big strengths for MUL.

There are around 15 vehicles in Maruti Product portfolio. Has good product lines with good fuel

efficiency like Maruti Swift, Diesel, Alto etc.

Alto still beats the small car segment with highest number of sales.

MUL is the first automobile company to start second hand vehicle sales through its True-value

entity.

MUL has good market share and hence it’s after sales service is a major revenue contributor.

Weaknesses

Low interior quality inside the cars when compared to quality players like Hyundai and other

new foreign players like Volkswagen,Nissan etc.

Government intervention due to having share in MUL.

Younger generations started getting a great affinity towards new foreign brands.

The management and the company’s labor unions are not in good terms. The recent strikes of

the employees have slowed down production and in turn affecting sales.

Maruti hasn’t proved itself in SUV segment like other players.

Opportunities

MUL has launched its LPG version of Wagon R and it was a good move simultaneously.

MUL can start R&D on electric cars for a much better substitute of the fuel.

Maruti's cervo 600 has a huge potential in tapping the middle class segment and act as a strong

threat to Nano

New DZire from Maruti will capture the market share and expected to create the same magic as

Maruti Esteem(currently not available)

Export capacity of the company is giving new hopes in American and UK markets

Economic growth of the country is constantly increasing and the government is working hard to

increase the gdp to double digit.

Threats

MUL recently faced a decline in market share from its 50.09% to 48.09 % in the previous

year(2011)

Major players like Maruti Suzuki, Hyundai, Tata has lost its market share due to many small

players like Volkswagen- polo. Ford has shown a considerable increase in market share due to its

Figo.

Tata Motors recent launches like Nano 2012, Indigo e-cs are imposing major threats to its

respective competitor’s segment

China may give a good competition as they are also planning to enter into Indian car segment

Launch of Hyundai's H800 may result in the decline of Alto sales

MARKET SHARE

24%

26%

50%

2012-13 Market Share-Segment A2

TATAHYUNDAIMARUTI

20%

14%

6%20%

7%

17%

2012-13 Market Share-Segment A2

TATAFORDGMHONDAOTHERSMARUTI

16%

4%

3%

1%1%

3%

2005-06 Market Share-Pessenger Cars

TATAHONDAFORDGMTOYOTAOTHERS

COMPETITION MODELS

Segment Maruti Competition

A1 (Mini -

Hatchback)

M800

A2 (Compact -

Hatchback)

Zen, WagonR,

Alto, Swift

Hyundai - Santro & Getz; Tata - Indica &

Palio; GM - Corsa Sail

A3 (Mid Size) Esteem, Baleno Hyundai - Accent; Tata - Indigo & Petra;

Honda - City; GM - Corsa, Optra, & Aveo;

Ford - Ikon, Fusion, & Fiesta

A4/A5/A6

(Exec./Prem./Luxury

)

Hyundai - Elantra & Sonata; Honda -

Accord; GM - Vectra; Ford - Mondeo;

Skoda - Octavia & Superb; Toyota -

Corolla & Camry; Daimler Chrysler - C,E,

& S Class;

C (Van Type) Omni, Versa

MUV (Utility

Vehicles)

Gypsy, Grand

Vitara

Mitsubishi - Pajero; Hyundai - Terracan

& Tucson; Ford - Endeavor; Toyota -

Prado & Innova; Nissan - X Trail; Honda -

CRV; GM - Forrester & Tavera; Tata -

Sumo & Safari; Mahindra - Jeeps,

Scorpio, & Bolero

.RESEARCH METHODOLOGY: