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Automobile Industries Automobile IndustriesRoles and Contribution toRoles and Contribution to

IndiaIndia

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Cugnot's steam wagon, the second (1771) version

Th e design of t h e Cugnot Steam T rolley (1769)

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After Independence in 1947, t h e After Independence in 1947, t h eGovernment of India and Private sector Government of India and Private sector

jointly started automobile industry. jointly started automobile industry.

In 1950, slow growt h .In 1950, slow growt h .Nationalization and License Raj system.Nationalization and License Raj system.In 1970, steady growt h (tractor,In 1970, steady growt h (tractor,

commercial ve h icles and scooters).commercial ve h icles and scooters).In 1980, Joint venture JapaneseIn 1980, Joint venture Japanese((MarutiMaruti UdyogUdyog) M C and L M C.) M C and L M C.

Automobile industry in India

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EE conomic liberalization in Indiaconomic liberalization in India in 1991.in 1991.Th eTh e automobile industry inautomobile industry in IndiaIndia is t h eis t h enint h largest in t h e worldnint h largest in t h e world with an annualwith an annualproduction of over 2.3 million units in 2008.production of over 2.3 million units in 2008.

In 2009, India emerged as Asia's fourth

In 2009, India emerged as Asia's fourth

largest exporter of automobiles, be h indlargest exporter of automobiles, be h indJapan, Sout h Korea and Th ailand.Japan, Sout h Korea and Th ailand.T ata MotorsT ata Motors ,, MarutiMaruti SuzukiSuzuki andand Ma h indraMa h indra

andand Ma h indraMa h indra .In.In February 2009, mont h lyFebruary 2009, mont h lysales of passenger cars in India exceededsales of passenger cars in India exceeded100,000 units.100,000 units.

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Role of Automobiles in Indias GDPRole of Automobiles in Indias GDP

Passenger Cars 13.50%L M C 16.05%

Number of automobiles sold 1,01,09,037 in2006-07

Marut h i is t h e largest manufacturers in t h ecountry. 20.7%

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Foreign InvestmentsForeign Investments

Mergers and AcquistionMergers and AcquistionEgypt, Mahindra and Mahindra collabrotionsEgypt, Mahindra and Mahindra collabrotions

with Bavarian Motors.with Bavarian Motors.TVS TwoTVS Two--Wheelers with Karawang inWheelers with Karawang in

Indonesia.Indonesia.Jagura and Lowear Rower owned by FordJagura and Lowear Rower owned by Ford

Motors with TATA MotorsMotors with TATA MotorsIndian automobile industry and foreignIndian automobile industry and foreign

sectors contributed upto US$ 515 Millionsectors contributed upto US$ 515 Million

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CategoryCategory 19981998--9999 20042004--05 ( Ap r 05 ( Ap r--Dec)Dec)

Passenger Car Passenger Car 2546825468 121478121478

Multi Utility VehiclesMulti Utility Vehicles 26542654 38923892

CommercialCommercialVehiclesVehicles 1010810108 1993119931

Two WheelersTwo Wheelers 100002100002 256765256765

Three WheelersThree Wheelers 2113821138 5153551535

Percentage GrowthPercentage Growth - -16.616.6 32.832.8

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Analysis of Indian

ExportsStrengthsCost competitiveness in terms of labor and raw material.Established manufacturing base. Economics of scale due to domestic market.Potential to harness global brand image of the parent company.Global hub policy for small car like Hyundai, Suzuki , etc.

WeaknessPerception about quality.Infrastructure bottlenecks.

OpportunitiesHuge export markets such as Europe, America, Africa, and others for Indian

cars.Threats

China, Malaysia, Thailand, etc.Many other countries also have strategies for export promotion.

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RankRank 20052005 20042004 20032003 20022002

11 ChinaChina ChinaChina ChinaChina ChinaChina

22 IndiaIndia ThailandThailand ThailandThailand ThailandThailand

33 ThailandThailand IndiaIndia USAUSA USAUSA

44 VietnamVietnam VietnamVietnam VietnamVietnam IndonesiaIndonesia

55 USAUSA USAUSA IndiaIndia VietnamVietnam

66 RussiaRussia RussiaRussia IndonesiaIndonesia IndiaIndia

77 KoreaKorea IndonesiaIndonesia KoreaKorea KoreaKorea

Table s h owing t h e rank of India in t h e past four years

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CompaniesCompanies March15March15 AprilApril mar 15mar 15 %change%change

20102010 20092009 20102010 20092009

MarutiMarutiUdyogUdyog

250250 36.636.6 10071007 401401 151151

Bajaj AutoBajaj Auto 177177 60.060.0 717717 305305 135135

M&MM&M 236236 Nil Nil 560.5560.5 34.534.5 15251525

TATATATAMotorsMotors

115115 Nil Nil 445445 9090 394394

HeroHeroHondaHonda

139.9139.9 150150 554.4554.4 464.4464.4 1919

ADVANCE TAX PAID

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