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Section D Group 10:
Ashish Gautam - 2013PGP078
Jophin George - 2013PGP170
Mukul Kumar Singh - 2013PGP229
Rahul Chohan - 2013PGP301
Shantanu Pramod Awandhe - 2013PGP367
Sunit Nanda - 2013PGP412
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Automobile Sector
Contributes about 4% in Indias GDP
5% in Indias industrial production Generated about 4.5 lakh of direct employment
About 1 crore of indirect employment
India is the 7thlargest Passenger Cars Producers
Growth over last 20 years:
1. ProtectionI Phase till mid80s
2. LiberalizationII Phase post 19903. GlobalizationIII Phaseearly 2000
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Industry Overview
The passenger cars segment
78% of domestic four wheelers sales during FY2009-13
Growth rate 2.2 % during FY2013
Domestic passenger vehicle sales are expected to increase 3-5%
during FY2014
Indias passenger vehicle exports increased at 9.0% (YoY)
aggregating to 0.5 million units during FY2013
Expected to grow by 10-12 per cent in 2013-14 Total passenger vehicle sales volume showed reduced growth of
-6.7% during FY2013
Passenger vehicle penetration levels are low at around 4.7%
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Major Automobile Players in IndiaTata Motors Market share of 11.7%
The company offers products in the compact, midsize, andutility vehicle categories
The company has entered into joint ventures with a number offoreign car manufacturers such as Fiat and Daewoo
Since 1954, the company has manufactured and sold more than4 million cars in India
Some of the well-known cars manufactured by Tata Motors are:Tata Indica, Tata Indigo, Tata Indigo Marina, Tata Sumo and
Tata safari.Management Senior Vice President: Ankush Arora
CFO & President: C Ramakrishnan
Chairman & Non-Executive Director: Cyrus P Mistry
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Maruti Suzuki
Market share of 39.12% Biggest passenger vehicle company in India
Holds more than 45% of the market share of the domestic
vehicle market in India
Maruti is headquartered in New Delhi Some of Maruti's most popular cars are: Maruti 800, Alto,
Omni, Gypsy, Zen, Wagon R, Versa, Esteem, Baleno and Swift
Management Chairman: R C Bhargava
Managing Director & CEO: Kenichi Ayukawa
Managing Director: Toshiaki Hasuike
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Mahindra and Mahindra Market share of 11.56%
Presence all over the world majorly in China, UK and U.S.A
Mahindra and Mahindra is partners with two of the international
companies: Renault SA of France and International Truck and Engine
Corporation of U.S.A
The company entered the passenger car market quite later with
Logan in April 2007
The company has also entered into a joint venture with Ford named
Ford India Private Limited on built passenger cars
Mahindra and Mahindra also have a controlling stake in Mahindra
Reva an electric car
Management Chairman & Managing Director: Anand G Mahindra
Executive Director: Bharat Doshi
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Industry scenario in India
High inflation and slowing economy
Decrease in disposable income
Petrol prices increased substantially
Deferment of purchases and shift in demand to diesel vehicles
Increase in interest rates
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Opportunities & Risks
Opportunities Infrastructure Growth
Rural market penetration
Exports from IndiaRisks Deterioration in economic conditions
Interest rates and other inflationary trends
Input Costs / Supplies
Environmental Regulations
Intensifying Competition
Changes in tax, tariff or fiscal policies and regulations
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Key Govt. Policy Changes
Before 199 s: Low volumes, obsolete tech, no govt. attn.
Reforms in 91 tax reliefs, cut in export tariffs
Equity regulation and banking reforms Emission norms
Mid 9 s Opened up for foreign investments - 96
Ford, GM, Toyota etccompetitive landscape
Fuel specifications
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Key Govt. Policy Changes (contd)
Auto Policy 2002
For global competence, and increased contribution to GDP
Automatic approval for 100% Foreign Investments
Huge incentives for R&D Fuelled modernization of Auto Industry in India
Recent trendsFuel subsidy, auto hubs & tax free exports!!
Compliance to Global norms - Harmonization
Globalization of Auto Industry
GOI to align Indian norms with International regulations
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Competition from foreign players
Toyota, Ford, and General Motors have started penetrating the
small cars segment recognising the potential in this segment.
Major international players are now developing models
specifically to meet Indian consumers preferences and marketconditions
The new models have been priced at fairly aggressive price and
as new entrants ramp up their volumes small car segment will
face more competition.Many global players are setting up capacities to locally develop
engines and transmissions in India with vendor development in
India forming a key part of their strategy
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Growth in Passenger Car Segment
Source: Automobile Consul t ing Group -Passenger Vehicle Analysis Fiscal Year 2012-13
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Growth in Passenger Car Segment
over the years
Source: RBSA Advisors-Synopsis of Indias Automobile Sector FY 2012 13
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Contd.
Source : SIAM, ICRA Estimates
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All small cars-12 % excise duty (unchanged)
Concession for specified parts of electric and hybrid vehicles
extended up to 31 March 2015
Excise duty on SUVs increased from 27 to 30 percent. (Exception -
SUVs registered as taxies)
A 25 per cent hike in import duty for Completely Build Units (CBUs)
No increase in the service tax
Import duty on luxury cars increased from 75% to 100%
Union Budget (2013-2014)
affecting automobile industry:
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Impact
Demand for SUVs will get affected
High import duty will boost domestic production of cars
Rising costs of parts will lead to increase in car prices
Boost to Electric and hybrid cars
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References
http://autobei.com/blog/passenger-vehicle-analysis-fiscal-year-2012-13/
http://www.siamindia.com/upload/SIAM-Forecasts.pdf
http://www.etintelligence.com/etig/researchchannels/sectors/autoReport.jsp
http://www.researchandmarkets.com/reports/1191955/
https://www.crisilresearch.com/industryasync.jspx?serviceId=7&State=null#storyId#28179#sectionId#2594#newsFeedId#undefined
http://autobei.com/blog/passenger-vehicle-analysis-fiscal-year-2012-13/http://autobei.com/blog/passenger-vehicle-analysis-fiscal-year-2012-13/http://www.siamindia.com/upload/SIAM-Forecasts.pdfhttp://www.etintelligence.com/etig/researchchannels/sectors/autoReport.jsphttp://www.etintelligence.com/etig/researchchannels/sectors/autoReport.jsphttp://www.researchandmarkets.com/reports/1191955/https://www.crisilresearch.com/industryasync.jspx?serviceId=7&State=nullhttps://www.crisilresearch.com/industryasync.jspx?serviceId=7&State=nullhttps://www.crisilresearch.com/industryasync.jspx?serviceId=7&State=nullhttps://www.crisilresearch.com/industryasync.jspx?serviceId=7&State=nullhttps://www.crisilresearch.com/industryasync.jspx?serviceId=7&State=nullhttps://www.crisilresearch.com/industryasync.jspx?serviceId=7&State=nullhttp://www.researchandmarkets.com/reports/1191955/http://www.researchandmarkets.com/reports/1191955/http://www.etintelligence.com/etig/researchchannels/sectors/autoReport.jsphttp://www.etintelligence.com/etig/researchchannels/sectors/autoReport.jsphttp://www.etintelligence.com/etig/researchchannels/sectors/autoReport.jsphttp://www.siamindia.com/upload/SIAM-Forecasts.pdfhttp://www.siamindia.com/upload/SIAM-Forecasts.pdfhttp://www.siamindia.com/upload/SIAM-Forecasts.pdfhttp://www.siamindia.com/upload/SIAM-Forecasts.pdfhttp://autobei.com/blog/passenger-vehicle-analysis-fiscal-year-2012-13/http://autobei.com/blog/passenger-vehicle-analysis-fiscal-year-2012-13/http://autobei.com/blog/passenger-vehicle-analysis-fiscal-year-2012-13/http://autobei.com/blog/passenger-vehicle-analysis-fiscal-year-2012-13/http://autobei.com/blog/passenger-vehicle-analysis-fiscal-year-2012-13/http://autobei.com/blog/passenger-vehicle-analysis-fiscal-year-2012-13/http://autobei.com/blog/passenger-vehicle-analysis-fiscal-year-2012-13/http://autobei.com/blog/passenger-vehicle-analysis-fiscal-year-2012-13/http://autobei.com/blog/passenger-vehicle-analysis-fiscal-year-2012-13/http://autobei.com/blog/passenger-vehicle-analysis-fiscal-year-2012-13/http://autobei.com/blog/passenger-vehicle-analysis-fiscal-year-2012-13/http://autobei.com/blog/passenger-vehicle-analysis-fiscal-year-2012-13/http://autobei.com/blog/passenger-vehicle-analysis-fiscal-year-2012-13/http://autobei.com/blog/passenger-vehicle-analysis-fiscal-year-2012-13/8/12/2019 D 10 Passenger Car
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