INDIAN AUTOMOBILE INDUSTRY

PRESENTED BY:SYED SALMAN AHMAD RIZVIMUHAMMED NIYAS NMMOHD SHAHNAWAZ

UNDER THE KIND SUPERVISION OF:Dr. MOHD ADIL Sir

(ALIGARH MUSLIM UNIVERSITY CENTRE KERALA)

INTRODUCTIONHISTORYGEOGRAPHIC LOCATIONSIAMRECENT INVESTMENTSSEGMENTATIONMARKET SIZETOP FUEL EFFICIANT CARSTOP SUVS

PLAN OF PRESENTATION

INTRODUCTION Indian automobile industry is one of the

most vibrant industries. The industry contributed 7% of the country’s

GDP. It comprises passenger cars Two wheelers, Three wheelers and commercial vehicles.

It is the 7th largest Industry in the world after China, Europe, USA, Japan, Germany and South Korea. with annual production of 4 million vehicles.

The first car on Indian road was in 1897.The owner was Mr foster.

The first Indian who owns the car was Jamshedji Tata in 1901.

Hindustan Company established in 1942.

HISTORY

Domestic motor vehicles sales for 2013

14.36

1.81

0.690.5

Sales {millions}

2 Wheelers

Passenger Vehicle

Commercial Ve-hicles

3 Wheelers

Automotive Companies in India Major Multi-national companiesMajor Indian Companies

SIAM and automotive components manufacturer association of India (ACMA) are the two apex bodies appointed by the government of India to work for the development of the automobile industry. SIAM is the important channel of communication for the automobile industry with government, national, and international organisation. SIAM is actively participates in formulation of rules regulation and policies related to the automotive industry.

SIAM (society of Indian automobile and manufacturer)

PRESIDENTVIKRAM S KILOSKAR

(VICE CHAIRMAN, TOYOTA)

BMW Invested US$ 1 billion in India for manufacturing its SUVs X5, X5 i drive30D. Earlier it was totally imported.

Japan Izusu motors invested Rs.3000 crores in Chennai plant to manufacture its Pick up vehicles.

Toyota kirloskar invested Rs.500 Crores for manufacturing parts and engines for Sedan and hatchback cars.

Volkswagen invested Rs.56 crores for manufacturing parts of Polo and Vento for exports.

RECENT INVESTMENTS

The automobile manufacturing industries are located in 3 zones of India North, West and South NORTH ZONE HARYANA (HERO,YAMAHA,MARUTI SUZUKI ) NOIDA (HONDA)

WEST ZONE MAHARASHTRA (GM,VOLKSWAGON,SKODA,MAHINDRA,TATA,MERCEDES BENZ AUDI,FIAT AND FORCE MOTORS) GUJRAT (AMW,TATA NANO PLANT)

SOUTH ZONE CHENNAI (FORD,HYUNDAI,MITSUBIDHI,NISSAN,BMW AND DUTSUN) BANGALURU (TOYOTA)

Geographic location

SIAM divides the Indian passenger cars in the following segment. It is the technical segmentation on the basis of length.

CAR SEGMENTS IN INDIA

Car segment Lenth(mm) Car modelA1 Upto 3400mm Nano

A2 3401to 4000mm Alto,i10,Wagon R

A3 4000 to 4500mm City, Dzire, Manza

A4 4500 to 4700mm Corolla, Optra

A5 4700 to 5000mm Accord, Camry, Sonata

A6 More than 5000mm BMW 7,Mercedes S

B1 VANS Omni, Versa,Enjoy

B2 MUV/MPV Innova, Xylo, Tavera

SUVs SUVs Safari, Scorpio, Pajero

Car segment Price(Lakhs) Body type ModelsA Upto 3.5 lakhs Mini Hatchback Alto,Nano,EonA1 4 to 8 lakhs Hatchback Wagon R,i20,Figo

B1 varries Vans Omni,versa,EnjoyB2 varries MUV/MPV Innova,taveraC1 7 to 10 laks Sedan City,Sunny,Etios D1 10 to 25 lakhs Luxury Sedan Corolla,Optra,Fluence,Accord,Ca

mry

D2 Above 25 lakhs

premium Sedan BMW AUDI Mercedes Volvo

SUVs Varries SUVs Safari,Scorpio,Pajero,Fortuner

Segmentation on the basis of price

MINI HATCHBACK

HATCHBACK

SEDANS

CAR BODY TYPES

MUV/MPV

VANS

SUVs

Contd….

CONVERTIBLES

ROADSTERS

CROSSOVERS

Contd…

Auto expo is the Indian automotive show held every after two years in New Delhi and NCR region.

The first Auto Expo was held in the year 1986. It is the Asia’s largest and worlds second largest motor show. It is the showcase of India and world automobiles industries. It is organized jointly by SIAM, ACMA ,and CII with the help of

various sponsors.

AUTO EXPO

Production Cars Maruti Celerio Audi A3 BMW 3series Mercedes GLA class Maruti XA Alpha Hyundai iX 25 Datsun Go Maruti Suzuki Ciaz Honda Mobilio Tata safari Laddakh

Cars launches in auto Expo 2014

Concept cars Nissan GTR Fiat Aventura BMW I8 Bajaj U Car Audi Sports Quatro

Tata Nano

25.4 KMPL

Maruti Suzuki Alto22.7 KMPL

HYUNDAI EON21.1 KMPL

India most fuel efficient cars(as per ARAI)

Sales in units 2013Contd…

Alto Eon Nano0

20000

40000

60000

80000

100000

120000

Sales 2012Sales 2013

Top 5 Sedans Sales 2013

Verna Honda City Vento Rapid0

5000100001500020000250003000035000400004500050000

20122013

Sales in units

Bolero Innova Omni Eco0

20000

40000

60000

80000

100000

120000

20122013

Top MUV/MPV Sales 2013

Tata Safari Storm

XUV 500

Toyota Fortuner

Pajero

Ford Endevour

Scorpio XUV 500 Fortuner Safari 0

100002000030000400005000060000

201222013

Top five SUVs sales 2013

Compact SUVs

Ford Ecosport

contd…

Renault Duster

Renault Duster: Launch in July 2012 Booking in first two month – 18000 Waiting period - 4 months Sales in 2013 – 51411 units

Ford Ecosport: Launched on June 2013 Booking within 17 days – 30000 Waiting period – 6 months Sales in 2013 – 33702 units

contd…

Maruti Xa Alpha Concept was shown in auto Expo 2012.Comming: End 2015Estim: Rs 7.5-10 lakhsCompititors:Duster,Ecosport etc.

Hyundai iX25Coming: 2015Estim: Rs 10 lakhsCompet:Duster,Ecosport,Terrano etc.

UPCOMING CARS IN INDIA

Ford Figo plus Coming: early 2015 Estim: Rs 5-7.5 lakhs Compet:Dzire,Amaze,Xcent.

Honda Accord Coming: Mid 2015 Estim:Rs 22-25 lakhs Compet: camry,superb,passat.

Contd…

Mercedes Benz CLA class. Coming :March 2015 Estimate: Rs 27-32 lakhs Compet: Audi A3,BMW 3s

Contd…

Maruti’s new Alto K10 Priced at Rs 3.82 lakhs

Alto K10 was launched on

3 November 2014

Automatic gear shift

Improved fuel efficiency of 15%

World cheapest automatic car

Recent Launch

Input costFuel prices Interest ratesEnvironmental RegulationsGovernment TaxesDistribution channels

Factor affecting the growth of auto industry

Indian Commercial Vehicle Industry

LEADING INDIAN COMMERCIAL VEHICLES BRANDS:

ASHOK LEYLAND TATA MOTORS MAHINDRA FORCE AMW EICHER

Growth in Economic Activity Road Network Development Low interest rates. Wide variety and easy availability of

Financing options. High sensitivity to Fuel prices

Key Market Drivers

TATA Motors has improved slightly but continues to remain in negative territory as it sold 27,249 units in the domestic market reporting a 17% fall.

TATA saw its medium and heavy commercial vehicles portfolio rise 30%at 10532 units in October 2014, commercial vehicle sales were up 8.59% in september 2014.

Sales decline 10.14% from april to september 2014

TATA MOTORS

TATA TRUCKS

Largest commercial vehicle manufacturer, reported as 23.1%growth in October 2014 sales at 8375 units as against 6803 units in the year 2013

Its medium and heavy commercial vehicle reported sales 5838 units while light commercial vehicle portfolio reported sales of 2537 units

ASHOK LEYLAND

Strong service network with 940 touch points (and growing) 48 strong 3S Dealership going up to nearly 100 in the next 12 to 18

months Sprawling dealership reflects Mahindra Navistar’s serious

commitment to CV Business The existing LCV and new HCV range to be sold and serviced from

new dealerships Offers products between 4.5 and 9 tonne and between 25 and 40

tonne, including Rigid Truck, Multi Axle truck, Tipper and Tractor Trailer.

Over 2500 HCVs on the roads; Crossed 10,000 LCVs sales per annum

Mahindra

Mahindra trucks

VOLVO TRUCKS

Indian Commercial Vehicle Industry poised for major growth phase

•Despite challenges, the Industry catching up fast with global trends & standards - both on technology and quality processes

Indian auto component Industry well positioned to grow at 14% (CAGR)

Indian Auto Industry likely to retain Low cost advantage for a sizeable period

Attractive collaboration opportunities between Indian CV industry / Auto component manufacturing with global OEMs and the Supply Chain majors

Great opportunity to partner & use India’s competitive advantages for sourcing and setting up collaborative operations

The Future Outlook

INDIAN TWO WHEELER INDUSTRY

India is the 2nd largest manufacturer of 2-wheelers in the world

Industry started up in early 50s and The Automobile Products of India(API) started manufacturing in the country

2-wheeler market was opened for foreign countries in mid 1980s

Bikes are the major segment of India, others are scooters and mopeds

Introduction

Domestic motor vehicles sales for 2013

14.36

1.81

0.690.5

Sales {millions}

2 Wheelers

Passenger Vehicle

Commercial Ve-hicles

3 Wheelers

1983 – Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan and Hero was signed

1985 - First motorcycle "CD 100" rolled out. 1987 - 100,000th motorcycle produced. 1994 - New motorcycle model - "Splendor"

introduced. 1,000,000th motorcycle produced. 1999 - New motorcycle model 150 cc segment- "CBZ" introduced. 2003 – Hero Honda becomes the first Indian Company to

cross the cumulative 7 million sales mark 2011 - New licensing arrangement signed between Hero and

Honda (Hero Honda is renamed as Hero)

MILESTONES

Bajaj Auto LtdTVS Motor CompanyHonda Motorcycle and Scooter India (Pvt.) LtdHero MotoCorp India LimitedSuzuki Motor CorporationRoyal Enfield Motors India LtdYamaha Motors India Pvt. LtdKinetic Motor Co. LtdMonto MotorsLML (India) Limited

Two Wheeler Manufacturers

40%

23%

20% 12%

3%2%

Sales % 2013

HeroHondaBajajTVSYamahaMahindra

Hero Honda TVS Bajaj Yamaha Suzuki0

200000400000600000800000

10000001200000140000016000001800000

20132014

Sales in the month April to June

Top 10 Most Selling Bikes in India

10. Yamaha Fazer

9. TVS Star City

8. Hero Glamour

7. Honda Dream

6. Bajaj Pulsar

5. Honda Shine

4. Hero CD Dawn

3. Bajaj Discover

2.Hero Passion PRO

1. Hero Honda Splendor

Splendor Passion Discover CD Dawn Shine Pulsar

0

500000

1000000

1500000

2000000

2500000

Bikes Sales in 2013 (units)

SCOOTERS

5. TVS Wego

4. Suzuki Access

3. Hero Pleasure

2. Hero Maestro

1. Honda Activa

Activa Maestro Pleasure Access Vego Aviator0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

Scooter Sales (Units) 2013

Strength

Easy availability of spare parts, cost of parts is low.

Has a high brand loyalty amongst the customers Innovation in fuel efficient bikes in 150cc

segments Mergers from international brands Exports of bikes is increasing

SWOT Analysis of industry

Weakness

Not getting the technical expertise from Similar type of models with same specification Capacity utilization is low Skilled labor

Continued…

Opportunity Increase in disposal income Credit financing by banks is increasing Increase in sale of sports bike segment

Threats Increase in fuel prices Inflation Economic slowdown

Continued…

Competition is high and increasing. Life cycle stage is in growth.

Trade export in this sector is medium and imports is low.

Entry of international brands in the sector e.g. KTM and Kawasaki tends to shift the customer’s taste and preference.

Two Wheeler Industry

www.siam.com www.autocar.com Economic Times www.zigwheels.com

References

Thank You

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