STRATEGIST 2015-16

AUTO AND AUTO ANCILLARIES

Harshita KothariAbhishek Saraswat

DEMAND DETERMINANTS OF INDIAN CAR INDUSTRY

ECONOMIC GROWTH • High growth in GDP reflects higher economic activity• It results in higher income levels, better purchasing power

of people and hence higher demand for passenger vehiclesINTEREST RATES AND AVAILABILITY OF FINANCE• Automobile sales are heavily dependent on the availability

of retail finance• Higher interest rates can adversely affect the demand• Lower interest rates stimulate demand that can adversely

affect as it results in lower cost of acquisition

DEMAND DETERMINANTS OF INDIAN CAR INDUSTRY

COST OF FUEL• Increase in fuel prices results in higher operating cost

and thus increased cost of the carDISPOSABLE INCOME OF CONSUMERS • Increase in per capita income and standard of living

in the country results in higher demand for carsNEW PRODUCT LAUNCHES• New product launches provide significant push to car

sales as customers are tempted to bring forward their decision to purchase vehicles

FUTURE OF INDIAN CAR INDUSTRY

• High performance Hybrid cars are likely to gain greater popularity among consumers•More than half of the cars are going to be powered by diesel by 2020•Self governing cars are predicted to be on the streets by 2020

WHAT ARE GREEN CARS ?

• A green car is a car that uses alternative fuel sources to run.

• alternative fuel sources, such as biodiesel fuel, solar energy or rechargeable battery electricity, to run the car.

• Types : Hybrid Car – Features a gas engine with an electric motor.

• Electric Car – Uses an electric-powered motor and a battery to operate.

• Decreases greenhouse gases• Cheaper to run and maintain • Provides renewable energy sources• Reduces the risk of such health problems• Does not contribute to acid rain• Reduce expensive oil imports from other countries

Benefits of Green Cars

• The biggest development in green automotive sector.

Hybrid Technology

FEATURES OF HYBRID• Regenerative Braking : • Electric Motor Drive/Assist : • Automatic Start/Shutoff :

Plug-in Hybrid

Toyota Prius (Best Green Car)• The Prius is sold in more

than 70 countries and regions, with its largest markets being those of Japan and the United States

• Fuel economy 35 km/L• most fuel efficient

compact car

THANK YOU