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The Automobile Sector

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EVOLU

TION

IN

IND

IA

Initial years- License Raj and high customs duty on imports

1980s- Entry of MUL, better product , Govt. support

Early to mid 80s-Sellers market and long waiting periods,

de-licensing in 1993, removal of capacity restrictions

Mid 90s early 2000s-Buyers market, increase in indigenization,easy auto finance, manufacturers are diversifying into related

activities

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CON

TRIBU

TION

IN

2009-10

Size of auto and ancillary industry :- USD 50 billion

Vehicles sold in India :- 14 million

Export figures :- 1.8 million

GDP share of auto sector :- 7%

People employed by industry :- 13 million

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TYPE

SPassenger Vehicles :

Buses, Cars

Commercial Vehicles :Trucks,

2-Wheelers : Scooters,

Motorcycles,

3-Wheelers :- Auto-

rickshaws,

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TECHNOLOG

YEVOLU

TION

The automobile as we know it was not invented in a single day

by a single inventor. Vehicles have evolved gradually over a period of time out of the

urge to cover long distances in a short time span.

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TECHNOLOG

Y INVE

STMEN

T With the urge to go faster evolved a

whole new form of sport: racing

Formula 1, costliest sport, has fostered

the growth of technology. Requires multi-million$ investment, which

has paid-off

Monocoque body: light weight as well

as safe and easy to manufacture. Fuel efficient engine: go more for every

drop of fuel.

Tubeless tyres: low cost as no tube

inside tyre. also no tube bursting:

so safe.

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IND

IA AGLO

BAL

HU

B

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SOCIETYOF INDIAN MANUFACTURES

Society of Indian Automobile Manufacturers (SIAM) is the apex Industry bodyrepresenting 38 leading vehicle and vehicular engine manufacturers in India.

PARTS IN MANUFACTURING

COST.

QUALITY.

FLEXIBILITY.

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Auto makers in India are forced to increase their car prices up

to Rs 20,000 in a month or so since the raw material cost has

moved up by 10 to 15 per cent.

Raw material prices must be 5 to 7 per cent more than the

first half of the FY 09.

7 million people ( for managerial/general work). Where the

skilled workers will contribute to 15.5 million, the unskilledworkers will number about 2.5 million, as per SIAM.

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Aluminum offers the ideal engineering solution.

Its density is one-third that of steel and satisfies the torsion andstiffness requirements of an automotive material.

Aluminums penetration has increased from 39 kg (3%) in 1976

to about 89 kg (7%) in the mid-90s

ALTERNATIVETO STEEL

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FLEXIBILITY

CUSTOMER REQUIREMENT.

NEW TRENDS

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CUSTOMER SERVICE

Customer Satisfaction

Maruti

Customer service

Maruti-leads the chart

Ease of repair compare to others e.g Chevorlet for poor customerservice

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ENVIRONMENTALFACTORS

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FUTUREASPECTS

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Strengths

- India is globally cost competitive. (7 million enter workforceevery year including 0.4 million engineering graduates)

- Has access to latest technology.

- Indian companies are best cost innovators

- Easier Finance schemes

- Stable economic policies

- Proximity to other Asian and emerging African economies.

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WEAKNESSES

- Industry by and large (baring a few dynamic

examples) have low research and developmentcapability, but, over coming it very fast.

- Industry is exposed to cyclical downturns in theautomotive industry.

- Most component companies are dependent onglobal majors for technology.

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OPPORTUNITIES

- May serve as sourcing hub for global automobile majors.

- Developing infrastructure in India can lead to growth prospects

- Rise in Disposable Income of Indian Customer (14% CAGR)

- Discovery of newer non-conventional and eco Energy Sources

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THREATS

- Pressure on prices from OEMs continues.

- Other countries providing competitive manufacturing options

are a threat to local industry.

- Indian market getting saturated with too many players andmodels

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CONCLUSION

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REFERENCES

Fundoodata.com

Ibes.org Vikalpa.com

India statistics