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    Analysis of Indian Automobile Industry

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    Md Shah Ahsan Leon
    The document provides an analysis of the Indian automobile industry. It begins with an overview of the industry's growth from 1898 to the present, where India now holds the 9th largest automobile industry in the world. The analysis then covers objectives, the top 5 companies, a PEST analysis, analysis of factors like the economy, industry competitiveness, SWOT analysis, recommendations, and conclusions. It finds that the industry has significant growth potential as per capita income rises and more Indians can afford vehicles. However, issues like infrastructure, interest rates, skills, and corruption need addressing to help the industry reach its full potential.

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    Analysis of Indian Automobile Industry

    Uploaded by

    Md Shah Ahsan Leon
    30 views20 pages
    The document provides an analysis of the Indian automobile industry. It begins with an overview of the industry's growth from 1898 to the present, where India now holds the 9th largest automobile industry in the world. The analysis then covers objectives, the top 5 companies, a PEST analysis, analysis of factors like the economy, industry competitiveness, SWOT analysis, recommendations, and conclusions. It finds that the industry has significant growth potential as per capita income rises and more Indians can afford vehicles. However, issues like infrastructure, interest rates, skills, and corruption need addressing to help the industry reach its full potential.

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    mgt372

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    The document provides an analysis of the Indian automobile industry. It begins with an overview of the industry's growth from 1898 to the present, where India now holds the 9th largest automobile industry in the world. The analysis then covers objectives, the top 5 companies, a PEST analysis, analysis of factors like the economy, industry competitiveness, SWOT analysis, recommendations, and conclusions. It finds that the industry has significant growth potential as per capita income rises and more Indians can afford vehicles. However, issues like infrastructure, interest rates, skills, and corruption need addressing to help the industry reach its full potential.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    30 views20 pages

    Analysis of Indian Automobile Industry

    Uploaded by

    Md Shah Ahsan Leon
    The document provides an analysis of the Indian automobile industry. It begins with an overview of the industry's growth from 1898 to the present, where India now holds the 9th largest automobile industry in the world. The analysis then covers objectives, the top 5 companies, a PEST analysis, analysis of factors like the economy, industry competitiveness, SWOT analysis, recommendations, and conclusions. It finds that the industry has significant growth potential as per capita income rises and more Indians can afford vehicles. However, issues like infrastructure, interest rates, skills, and corruption need addressing to help the industry reach its full potential.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 20

    Presentation On:

    A N A LY S I S O F I N D I A N A U T O M O B I L E I N D U S T R Y

    Hasnaeen Md. Sharfuddin -1010665030 Muntasir Mamun 1010471030 Md. Sabique Mohtadi 1010737030 Md. Shah Ahsan 1010762030

    Objective
    Overview Aim of project Economy Analysis Industry Analysis Company Analysis Conclusion References

    Objective:
    1. Overview 2. Aim of the Project & List of top 5 companies 3. Analysis of Indian Automobile Industry 4. Fundamental Analysis a. Economy b. Industry 5. 6. Conclusion References

    Overview
    Overview Aim of project Economy Analysis Industry Analysis Company Analysis Conclusion References

    Overview:
    Indian automobile industry has grown leaps and bounds since 1898, a time when a car had touched the Indian streets for the first time. At present it holds a promising 9th position in the entire world with being # 1 in Two Wheelers and # 4 in commercial vehicles. Withstanding a growth rate of 13% per annum and an annual

    production of more than 2 million units, it may not be an exaggeration


    to say that this industry in the coming years will soon touch a figure of 10 million units per year. It is expected that the Automobile Industry in India would be the 7th largest automobile market within the year 2016.

    AIM OF THE PROJECT


    Overview Aim of project Economy Analysis Industry Analysis Company Analysis Conclusion References

    AIM OF THE PROJECT:


    The objective of this project is deeply analyzing our Indian Automobile Industry for investment purpose by monitoring the growth rate and performance on the basis of historical data.

    The main objectives of the Project study are:


    Detailed analysis of Automobile industry which is gearing towards international standards Analyze the impact of qualitative factors on industrys and companys prospects Application of various Technical Tools and Fundamental tools (like Financial and Non-financial statements).

    Companies
    Overview Aim of project Economy Analysis Industry Analysis Company Analysis Conclusion References

    Top Automotive Companies In INDIA


    Leading Companies:
    Maruti Suzuki India Limited (MSIL) Hyundai Motor India Limited (HMIL) Tata Motors Mahindra & Mahindra Limited (M&M) Hero Motors Limited (HML)

    Analysis
    Overview Aim of project Economy Analysis Industry Analysis Company Analysis Conclusion References

    Pest Analysis:
    India has become a hub of domestic and exports business. The automobile sector has been contributing its share to the shining

    economic performance of India in the recent years.


    To understand this industry for the purpose of investment we need to analyze it by following four approaches: 1) Political Analysis System of the government Government policy Political stability

    Fundamental Analysis
    Overview Aim of project Economy Analysis Industry Analysis Company Analysis Conclusion References

    ECONOMY: GDP and Automobile Industry:


    In absolute terms, India is 9th in the world in terms of nominal factory output(its $1.22 trillion)

    Data source: India central statistical organization

    Fundamental Analysis
    Overview Aim of project Economy Analysis Industry Analysis Company Analysis Conclusion References

    ECONOMY: GDP and Automobile Industry:


    The per capita Income is near about Rs38,000 reflecting improvement in the living standards of an average Indian. Today, automobile sector in India is one of the key sectors of the economy in terms of the employment. The market value of Automobile Industry is more than US$8 bl. and Contribution in Indian GDP is near about 5% and will be double by 2016.

    Data source: Google Finance

    Fundamental Analysis
    Overview Aim of project Economy Analysis Industry Analysis Company Analysis Conclusion References

    ECONOMY: Recession:
    Global recession has hit the Indian auto industry, impact of recession is evident now on industry as sales & growth of automobile companies have declined. Passenger Vehicles segment registered negative growth. In December 2010, overall production fell by 22 % over the same month last year.

    The sales in December 2010 for passenger vehicles fell by 13.86% over
    December 2009. Two Wheelers registered minor growth of 1.85 % during April December 2010. Although the sector was hit by economic slowdown, overall production increased from 10.85 million vehicles in 2009-10 to 11.17 million vehicles in 2010-11.

    Fundamental Analysis
    Overview Aim of project Economy Analysis Industry Analysis Company Analysis Conclusion References

    ECONOMY:
    FDI inflow and Out flow

    Position in the world market


    Per capita income Living Cost Employment Rate Life Expectancy at Birth

    Social Analysis & Technological Analysis


    Overview Aim of project Economy Analysis Industry Analysis Company Analysis Conclusion References

    Social Analysis

    Language Religion Education Social Strata


    Technological Analysis Infrastructure Skilled human resources

    Export Analysis

    Automobile Export:
    Overview Aim of project Economy Analysis Industry Analysis Company Analysis Conclusion References

    1800000 1600000 1400000

    1200000
    1000000 800000 600000 400000 200000 0 Passenger Vehicles Commercial Vehicles Three Wheelers Two Wheelers Grand Total

    Analysis of national competitiveness by porters model


    Overview Aim of project Economy Analysis Industry Analysis Company Analysis Conclusion References

    Factor Endowment
    Land

    Labor
    Power Transportation

    Natural resources

    Demand Condition
    Market size
    Sophisticacy of consumers

    Analysis of national competitiveness by porters model


    Overview Aim of project Economy Analysis Industry Analysis Company Analysis Conclusion References

    Related and Supporting Industries


    Number of suppliers Suppliers bargaining power Backward linkage

    Firm strategy and rivalry


    Competition among competitors

    SWOT
    Overview Aim of project Economy Analysis Industry Analysis Company Analysis Conclusion References

    Strengths(S): Large domestic market Sustainable labor cost advantage Competitive auto component vendor base Government incentives for manufacturing plants Strong engineering skills in design etc Weaknesses(W): Low labor productivity High interest costs and high overheads make the production uncompetitive Various forms of taxes push up the cost of production Low investment in Research and Development Infrastructure bottleneck Opportunities(O): Commercial vehicles: SC ban on overloading Heavy thrust on mining and construction activity Increase in the income level Cut in excise duties Rising rural demand Threats(T): Rising input costs Rising interest rates Cut throat competition

    Decisions
    Overview Aim of project Economy Analysis Industry Analysis Company Analysis Conclusion References

    Reason of Joint-venture
    Access to new markets and distribution networks Increased capacity Sharing of risks and costs with a partner Access to greater resources, including specialized staff, technology and finance Enable growth without having to borrow funds Benefit from being able to join forces in purchasing, research and development. Flexibility

    Recommendations
    Overview Aim of project Economy Analysis Industry Analysis Company Analysis Conclusion References

    Recommendations
    India should look forward to create skill work force. They should invest more on Research and Development sector to enrich it. For automobile industry infrastructure is an important factor. So Indian policy maker should try to initiative to improve it. Currently India is facing inflation rate which does not match with their economy. Price of raw material is becoming unstable. Indian government should try to fix it. As automobile industry is a rising manufacturing sector Indian government should lower interest rate which is unfavorably high at this moment. Corruption in Indian politics is discouraging foreign companies to improve. Indian government should be aware of it and interested foreign companies should be careful about this factor

    Conclusion
    Overview Aim of project Economy Analysis Industry Analysis Company Analysis Conclusion References

    Conclusion:
    Indian Automobile has a lot of scope for both two wheelers and four wheelers due to development in infrastructure of the country. According to Indian Statistical Organization the per capita income (Rs.38000) is increasing and national income at the rate of 14.4% which shows potential to buy vehicle in auto industry. The growth rate of Indian Automobile is so fast that by 2016 Indian Industry will be world 7 largest manufacturer in all sections. The Indian auto market is still untapped the majority of the people in country dont own a four wheeler and all the major auto companies are trying to increase their sales by several moves. By analyzing the current trend of Indian Economy and Automobile Industry we can say that there is lot of scope for growth.

    REFERANCES: Books: o Auto Drive Magazine Reference Materials: o The Economic Times o RBI annual report o ASSOCHAM report o India Central Statistical Organization Websites: o http://www.googlefinance.com o http://www.autocarindia.com o http://www.wheelsunplugged.com o http://www.assocham.org o http://www.wikipedia.com o http://www.rbi.org.in Search Engines: o www.google.com o www.yahoo.com o www.bing.com

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