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    Car Industry in India

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    saurav0187
    The document is a project report on the car industry in India submitted by a group of students. It contains an introduction to the car industry in India, providing a brief history and overview of its growth. It also includes sections on major car companies like Maruti Suzuki and Tata Motors, market share of companies, and analysis of demand and supply in the industry.

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    Car Industry in India

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    saurav0187
    156 views15 pages
    The document is a project report on the car industry in India submitted by a group of students. It contains an introduction to the car industry in India, providing a brief history and overview of its growth. It also includes sections on major car companies like Maruti Suzuki and Tata Motors, market share of companies, and analysis of demand and supply in the industry.

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    The document is a project report on the car industry in India submitted by a group of students. It contains an introduction to the car industry in India, providing a brief history and overview of its growth. It also includes sections on major car companies like Maruti Suzuki and Tata Motors, market share of companies, and analysis of demand and supply in the industry.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    156 views15 pages

    Car Industry in India

    Uploaded by

    saurav0187
    The document is a project report on the car industry in India submitted by a group of students. It contains an introduction to the car industry in India, providing a brief history and overview of its growth. It also includes sections on major car companies like Maruti Suzuki and Tata Motors, market share of companies, and analysis of demand and supply in the industry.

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    of 15

    JAIPURIA INSTITUTE OF MANAGEMENT LUCKNOW MANAGERIAL ECONOMICS

    PROJECT ON CAR INDUSTRY IN INDIA

    SUBMITTED BY: GROUP-1 (SEC-D) SAURABH MISHRA SAURABH MISHRA SHAKSHI DWIVEDI SHAYAN FAHEEM SHEENA SAXENA JIML-10-127 JIML-10-128 JIML-10-129 JIML-10-130 JIML-10-131

    SUBMITTED TO: Dr. R. K.OJHA

    CONTENTS

    S. NO.
    1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

    TOPIC
    Introduction Industry Overview Cars by price range Maruti Suzuki India Ltd. Tata Motors Ltd. Market Share of Car Companies in India Demand of Tata Motors Demand of Maruti Suzuki Demand analysis of Car Industry Supply analysis of Car Industry References

    PAGE NO.
    3 4 6 7 8 9 10 12 13 14 15

    INTRODUCTION

    The first car to rolled onto the Indian roads in the year 1898. Initially the car market in India did not experience much boom due to backwardness and poor conditions of the country but with intervention of the favourable government policies the car industry have seen mass development. At present India has the fourth largest passenger car market in Asia. The liberation policy of the Indian government has encouraged several foreign investors to come in and invest in the car market. Decrease in the rate of duties of small cars has also encouraged a significant boom. By noticing the trend of car buyers, sellers and manufacturers, it has been stated that the car market in India can be ranked the third largest car market in the world after China and USA. A good network of roads and transportation system has helped in increasing the demand of car in India. With increased GDP, per capita income and high ownership capacity several foreign companies coming in India led to a significant rise in the lifestyle of the people residing in the country. Indias strong engineering base and expertise in the manufacturing of low-cost, fuel-efficient cars has resulted in the expansion of manufacturing facility of car industry. Industry analysis is finding of data, relevant to specific industry. This project is a written presentation with observation and references derived from the secondary data.

    INDUSTRY OVERVIEW
    As per the history of Automobile Companies in India, in the late 1890's Tata Motors launched its first truck in India. It was done in collaboration with Mercedes-Benz. Though automobiles were introduced to India in the late 19th century, it was only after the Indian independence in 1947 that India started manufacturing automobiles. Some of the early Automobile Companies in India are: Hindustan Motors Premier Automobiles Tata Motors Maruti Suzuki

    Sanjay Gandhi was the first Indian politician who championed the need for a "people's car". Thus the state-owned firm, Maruti Udyog, was launched and gained over 50% market share. After the liberalization in 1991, India's Automobile Industry grew in leaps and bounds. With the growth in the Indian economy, big international car manufacturers like General Motors, Ford, Toyota, Honda, Hyundai, Rolls Royce, Bentley and Maybach entered the Indian market. Earlier in the 1920's Rolls Royce collections was the maharajas status symbol. With time the middle class also started possessing their own automobiles. With the introduction of several automobiles in India, highways or expressways were constructed. The renowned international automakers like Ford, Suzuki, GM and Honda have their manufacturing bases in India. But, Automobile Industry in India is dominated by domestic companies like Maruti Suzuki, Tata Motors, Mahindra & Mahindra, Ashok Leyland and Bajaj Auto. Today Indian automotive industry is fully capable in producing various kinds of vehicles and can be divided into three broad categories: Cars, twowheelers and heavy vehicles. 4

    Milestones Achieved: The milestones achieved by the Automobile


    Companies in India are: The first automobile in India rolled in 1897 in Mumbai. International players are adding to their investments in Indian auto industry. As far as the two-wheelers are concerned, motorcycles contribute 80% of the segment size. The Indian passenger vehicle market is dominated by cars by 79%. Indias Automobile Industry is the largest three-wheeler market in the world. India is the second largest tractor manufacturer in the world. The Automobile Industry in India is the fifth largest commercial vehicle manufacturer in the world. India is the fourth largest car market in Asia.

    Latest News in the Industry: The latest in the world of Indian


    Automobile Companies are: Hyderabad is coming up with the first automobile mall of the country by 2008. It will also comprise a multi-purpose convention centre and product launches. The latest car in the Indian Automobile Industry is the Tata Nano. It costs approx US$ 2,500. While Bugatti Veyron, another new car, costs over US$ 2 million. Facts have revealed that the Automobile Industry in India employs 13 million individuals in India. This industry contributes about 3.1% of India's GDP (nominal). Renault Nissan Automotive India Private Limited (RNAIPL) is launching its new passenger vehicle plant in Chennai, India which is expected to begin operations in 2010. India launched its first hybrid car, the sedan Civic by Japans Honda Motor Co on Wednesday, June 18, 2008. Due to levying of additional excise duty by the government, there is a hike in the cost of imported luxury cars.

    CARS BY PRICE RANGE

    Under Rs 3 Lakhs

    Maruti 800, Alto, Omni Ambassador Fiat Palio Hyundai Santro, Getz Chevrolet Opel Corsa Maruti Zen, Wagon R, Versa, Esteem, Gypsy Ford Icon &Fiesta Tata Indica, Indigo Mahindra Bolero Chevrolet Swing, Optra, Tavera Hyundai Accent, Elantra Mahindra Scorpio Maruti Baleno Toyota Corolla, Innova Tata Safari Mitsubishi Lancer, Lancer Cedia Honda City Ford Mondeo & Endeavour Chevrolet Forester Skoda Octavia Classic & Combi Honda Civic Maruti Suzuki Grand Vitara Hyundai Sonata Embara, Terracan & Tucson Mitsubishi Pajero Audi A4 Opel Vectra Honda Accord Mercedes C Class Toyota Camry Bentley Arnage, Continental GT & Flying Spur, Rolls Royce Phantom Maybach

    Rs 3-5 Lakhs

    Rs 5-10 Lakhs

    Rs 10-15 Lakhs

    Rs 15-30 Lakhs

    Above Rs 1 Crore

    MARUTI SUZUKI INDIA LTD.


    Count on Us Company Background
    Maruti Suzuki, formerly known as Maruti Udyog is one of India's leading automobile manufacturers and the market leader in the passenger car segment. The company was established in February 1981 through an act of Parliament, as a Government company in technological collaboration with Suzuki Motor Corporation (SMC) of Japan. The government held a controlling stake of 74 per cent with SMC holding the rest. Over the years, SMC has increased its stake in the company to 54.2 per cent as on 31 March 2008. Post liberalisation of the automobile industry in 1992, the government gradually divested its stake in the company and exited it completely in May 2007. Maruti's first product -- Maruti 800 made its debut in December 1983, when there were only two car companies in India. Suzuki's car technology helped the company gain a strong foothold in the Indian car market. The company has led the Indian car market for over two decades and became the first Indian car company to mass produce and sell more than a million cars by 1994. Till March 2007, the company has produced and sold over six million cars.

    Products & Brands


    Maruti Alto, Maruti Baleno, Maruti Esteem, Maruti Gypsy, Maruti Omni, Maruti Swift, Maruti Versa, Maruti Vitara, Maruti Wagon-R Maruti Zen, Maruti SX4

    TATA MOTORS LTD.


    Leading the Future Company Background
    Tata Motors Ltd (TML), widely known as TELCO, is one of the oldest Indian automobile companies. The company was established in 1945 as Tata Engineering and Locomotive Co Ltd (TELCO), primarily to manufacture locomotives and other engineering products. The company's first automobile, a commercial vehicle, was launched in 1954 in collaboration with Daimler Benz AG of West Germany. Today, Tata Motors is India's largest Indian automobile company with annual revenues of Rs.32, 125.3 crore (2006--07) and a manufacturing capacity of 6.8 million vehicles. The company claims to be the world's fifth largest medium and heavy truck manufacturer and the second largest heavy bus manufacturer. The company is the leader in the Indian commercial vehicles space and the third largest in the Indian passenger vehicles space with presence in compact, mid--size car and multi--utility vehicles. These automobile segments together accounted for nearly 93 per cent of the company's revenues in 2006--07. Other segments which account for the balance include diesel engines for marine applications, spare parts and castings. Primarily a heavy truck manufacturer, the company commands a significant 60.2 per cent market share of the total medium and heavy commercial vehicles (M&HCVs) market. Its share in the light commercial vehicle (LCV) segment was 64.5 per cent.

    Products and Brands


    Indica V2, Indigo, Indigo Marina Indigo SX, Indica V2 Turbo, Indica Xeta Utility Vehicles: Safari Dicor, Sumo

    MARKET SHARE OF CAR COMPANIES IN INDIA

    Others, 16.447

    M aruti Tata Hyundai, 17.3 Tata, 14.04 M aruti, 52.28

    Hyund

    Others

    DEMAND OF TATA MOTORS

    Years 2004-05 2005-06 2006-07 2007-08 2008-09

    Sales(in ` crores) 17199.17 20088.63 26664.25 28767.91 25660.67

    % growth 16.80 13.73 7.89 -10.80

    35000 30000 25000 20000 Series1 15000 10000 5000 0 2004-05 2005-06 2006-07 2007-08 2008-09

    10

    REASONS FOR FALL IN PROFIT IN 2008-09

    Tata Motors Net Revenue in 2008-09 lower at Rs.25660.79 crores, and Net Profit lower at Rs.1001.26 crores, was due to market upheaval. There was severe demand contraction in the automobile industry. Revenues for the year were Rs.25660.79 crores compared to Rs.28739.41 crores in 2007-08, a decline of 10.7%. The Profit beforeTax was Rs.1013.76 crores compared to Rs.2576.47 crores in 2007-08,a decline of 60.7%. The Profit after Tax for the year was Rs.1001.26crores compared to Rs.2028.92 crores, a decline of 50.7%. The demand contraction was triggered by high interest rates and unavailability of finance throughout the year, particularly in the October-December quarter post the global financial market upheavals

    11

    DEMAND OF MARUTI SUZUKI

    YEARS 2004-05 2005-06 2006-07 2007-08 2008-09


    25000 20000 15000

    SALES(in ` crores) 10910.8 12003.4 14721.7 17860.3 20358.3

    % growth 10% 22.65% 21.32% 14%

    Series1 10000 5000 0 2004-05 2005-06 2006-07 2007-08 2008-09

    12

    DEMAND ANALYSIS OF CAR INDUSTRY

    Years 2004-05 2005-06 2006-07 2007-08 2008-09

    Sales(in usd million) 1380002 1494117 1847744 2040376 1936897

    % Growth 8.26% 23.66 10.43% -5.07%

    2,500,000 2,000,000 1,500,000 Series1 1,000,000 500,000 0 2004-05 2005-06 2006-07 2007-08 2008-09

    13

    SUPPLY ANALYSIS OF CAR INDUSTRY

    Years 2004-05 2005-06 2006-07 2007-08 2008-09

    Production(in units) 1563579 1700383 2065205 2326589 2255463

    % Growth 8.75% 21.45% 12.65% -3.05%

    2,500,000 2,000,000 1,500,000 Series1 1,000,000 500,000 0 2004-05 2005-06 2006-07 2007-08 2008-09

    14

    REFERENCES

    CMIE Centre for Monitoring Indian Economy IAS PROWESS

    www.tatamotors.com Statistical methods- S.P.Gupta Google www.marutisuzuki.com

    15

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