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Auto mobile industry preformance

Date post: 09-Sep-2014
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Automobile Industry Performance- Prepared By PRAVEEN KOHINKAR key contributor to the Indian economy
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Page 1: Auto mobile industry preformance

Automobile Industry Performance-

Prepared By

PRAVEEN KOHINKAR

key contributor to the Indian economy

Page 2: Auto mobile industry preformance

Indian Market Overview

Largest Two-Wheeler Manufacturer in the World

2nd Largest Tractor Manufacturer in the World

5th Largest Commercial Vehicle Manufacturer in the World

Global Motorcycle Manufacturer is in India

4th Largest Car Market in Asia - crossed the 1 million mark

Page 3: Auto mobile industry preformance

Key players in the Indian auto industry - Passenger Cars and CVs

The largest player in the Indian industry. Plans to launch new and excitingproducts in the Indian markets, including the ‘100,000’ car

Suzuki’s JV in India and the largest passenger car manufacturer in India

The third largest passenger car manufacturer in India and one of the largest exporters of vehicles. Has established India as one of its manufacturingbases in the world. Is planning to invest heavily to boost exports from India

Has vision of capturing 10 % share of the Indian passenger car market by 2010

One of the leading players in the Indian premium cars segment

One of the leading players in the Indian premium cars segment

Page 4: Auto mobile industry preformance

Key players in the Indian Auto Industry - Passenger Cars and CVs

One of the leading players in the Indian premium cars segment.

One of the largest players in the UV / MUV segment

The 2nd largest CV manufacturer in India

Worlds Leading supplier of Commercial Tansport, The brand isshared between Volvo Group and Volvo Cars

Has great plans for India it is willing to postion India as its manufacturing base; it has joined hands with Renault and Mahindra to produce cars. As its sister Renault has decided to enter India in a bigger way with car like Logan, Nissan also wants to join the fray

Page 5: Auto mobile industry preformance

Key players in the Indian Auto Industry - Passenger Cars and CVs

Bajaj Auto, the largest three-wheeler maker in the country, said it is planning to enter the four-wheeler market with small cars has taken up the challenge of making India's cheapest car.

The GERMAN gIANT

Page 6: Auto mobile industry preformance

Key players in the Indian Auto Industry - 2 wheelers

The largest 2 wheeler manufacturer in the world

The 2nd largest 2- wheeler manufacturer in India and the largest 3 wheeler manufacturer. Has plans for establishing a manufacturingfacility in Indonesia & Also Planning to Enter in four wheels

The third largest 2 wheeler manufacturer in India. Has plans for establishing a manufacturing facility in Indonesia

Has recently entered the Indian market through its direct subsidiary( in addition to its JV – Hero Honda)

Has recently entered the Indian market through its direct subsidiary

Page 7: Auto mobile industry preformance

Key players in the Indian Auto Industry - 2 Wheelers

Still Struggling to show its presence in Indian Market, is also planning to launch Scooter By-2009

After its Success in 3&4 Wheelers Recently A 250 bn Group Completed its Portfolio By Entering in 2 Wheeler segment

Page 8: Auto mobile industry preformance

Current Scenario

Weak demand across all segments drag aggregate volume growth to record first monthly decline during FY09, volumes shrink 9% YoY during Oct-08

Major players post negative sales growth during festivals month despite new variants/launches

Higher interest rates and stiff credit norms reduce affordability – main villains for decline Dip in consumer confidence and postponement of purchases ahead of new model launches

further dent demand CVs witness sharp 36% YoY decline, while domestic passenger cars and 2-Wheelers also

tripped Exports maintained strong growth; rising 41% YoY with sales of 144,083 units during Oct ’08

Page 9: Auto mobile industry preformance

Outlook

Domestic macro scene remains challenging with production cuts and job-losses across industries.Bunching of all negative forces might see auto sales see weakest quarter (3Q) ending Dec ’08

Huge capex incurred by major auto players would squeeze the free cash flows as well as return ratios for the companies

Drop in commodity prices and softening interest rates could give relief to the auto majors by lifting cost pressure

Short-term outlook is grim. Recent liquidity transfusions by the central bank and global stimuli make long term outlook positive on the sector

Near term, we maintain neutral outlook on the sector. Long term, the outlook is positive with favorable demographics, lower penetration and prospects of return to higher margins

Page 10: Auto mobile industry preformance

Positive Factors Good performance of the economy – higher all round growth leading to high GDP growth of 8% Brisk activities on infrastructural development Emergence of India as an manufacturing hub for the Automotive Industry

Page 11: Auto mobile industry preformance

Negative Factors

No Excise duty reduction on passenger vehicles No Softening of interest rates and improved financing Cancellation on Availability of finance in rural and urban areas on 2 Wheelers Global Recession Impact hitting badly since mid of 2008 Increase in input prices

Crude oil & derivatives Ferrous & Non-Ferrous Metals Natural rubber Increase in Steel Prices

Page 12: Auto mobile industry preformance

Automobile Domestic Sales Trends

Automobile Domestic Sales Trends

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

Year

sale

s Fi

gure

s

Passenger Vehicles Commercial Vehicles Three Wheelers Two Wheelers

Passenger Vehicles 707,198 902,096 1,061,572 1,143,076 1,379,979 1,547,985

Commercial Vehicles 190,682 260,114 318,430 351,041 467,765 486,817

Three Wheelers 231,529 284,078 307,862 359,920 403,910 364,703

Tw o Wheelers 4,812,126 5,364,249 6,209,765 7,052,391 7,872,334 7,248,589

2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Page 13: Auto mobile industry preformance

OverAll Indian Automobile Market Scenario (2007-08)

CVs4%

Total Passenger Vehicles14%

Three Wheelers4%

Two Wheelers78%

Page 14: Auto mobile industry preformance

2 Wheeler Sales performance F/Y Wise

0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

Year

Motor Cycles

Scooters

Mopeds

Motor Cycles 2887194 3647493 4170445 4964753 5815417 6553664 5768341

Scooters 908268 825648 886295 922428 908159 940673 1050167

Mopeds 408263 338985 307509 322584 332741 355870 415051

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Page 15: Auto mobile industry preformance

%

Used Cars V/s New Cars

100,000 Dream Car By TATA & BAJAJ

New Cars50%

Used Cars50%

Used Cars sale v/s New Car sale

Premium Segment0.6%

99.4% Entry level, Deluxe, Scooter-

Segment

Premium Segment includes Vehicles Above 75000(Pulsar220,Karizma, Yamaha R1)

Page 16: Auto mobile industry preformance

Jan 2009-The Wait is Over

The TATA Dream Car(1 Lac Car) The Long awaited TATA NANO Queen is on

the way Will push up the 4 wheeler Market & change

the landscape of the Indian passenger cars

Hamara Bajaj takes to four wheels&has taken up a challenge fo making indias cheapest Car

The Another Queen is getting Ready to Hit The Indian Roads

Bajaj s Cheapest Car—Getting Prepared

Page 17: Auto mobile industry preformance

2009

2010

2011

2012

2013

0

5

10

15

20

25

30

% Sales

Indian Automotive Ahead

Cars No longer remains a status symbol

Car becomes common in middle class segment too like cell phones

Page 18: Auto mobile industry preformance

India Next

• Traffic Jams • Parking Space Problem

• Fluctuation in Petrol Prices • Increase in No of Accidents

• Increase in Travelling Time • Less Mileage

Page 19: Auto mobile industry preformance

%

Back 2 Pavillion

Car can be used only as family transport vehicles

2 Wheeler the only option that remains with indian to lead a comfortable life

100,000 Car Customers

One Lac Car Customers


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