1. Automobile Industry Performance-
key contributor to the Indian economy
Prepared By
PRAVEEN KOHINKAR

2. Indian Market Overview
Largest Two-Wheeler Manufacturer in the World
2nd Largest Tractor Manufacturer in the World
5th Largest Commercial Vehicle Manufacturer in the World
Global Motorcycle Manufacturer is in India
4th Largest Car Market in Asia - crossed the 1 million mark

3. Key players in the Indian auto industry -
Passenger Cars and CVs
The largest player in the Indian industry. Plans to launch new and exciting
products in the Indian markets, including the ‘100,000’ car
Suzuki’s JV in India and the largest passenger car manufacturer in India
The third largest passenger car manufacturer in India and one of the
largest exporters of vehicles. Has established India as one of its manufacturing
bases in the world. Is planning to invest heavily to boost exports from India
Has vision of capturing 10 % share of the Indian passenger car market by 2010
One of the leading players in the Indian premium cars segment
One of the leading players in the Indian premium cars segment

4. Key players in the Indian Auto Industry -
Passenger Cars and CVs
One of the leading players in the Indian premium cars segment.
One of the largest players in the UV / MUV segment
The 2nd largest CV manufacturer in India
Worlds Leading supplier of Commercial Tansport, The brand isshared between
Volvo Group and Volvo Cars
Has great plans for India it is willing to postion India as its
manufacturing base; it has joined hands with Renault and Mahindra to
produce cars. As its sister Renault has decided to enter India in a bigger
way with car like Logan, Nissan also wants to join the fray

5. Key players in the Indian Auto Industry -
Passenger Cars and CVs
The GERMAN gIANT
Bajaj Auto, the largest three-wheeler maker in the country, said it is planning to enter the
four-wheeler market with small cars has taken up the challenge of making India's
cheapest car.

6. Key players in the Indian Auto Industry - 2
wheelers
The largest 2 wheeler manufacturer in the world
The 2nd largest 2- wheeler manufacturer in India and the largest
3 wheeler manufacturer. Has plans for establishing a manufacturingfacility
in Indonesia & Also Planning to Enter in four wheels
The third largest 2 wheeler manufacturer in India. Has plans
for establishing a manufacturing facility in Indonesia
Has recently entered the Indian market through its direct subsidiary
( in addition to its JV – Hero Honda)
Has recently entered the Indian market through its direct subsidiary

7. Key players in the Indian Auto Industry -
2 Wheelers
Still Struggling to show its presence in Indian Market, is also planning to launch
Scooter By-2009
After its Success in 3&4 Wheelers Recently A 250 bn Group Completed its
Portfolio By Entering in 2 Wheeler segment

8. Current Scenario
 Weak demand across all segments drag aggregate volume growth to record first monthly
decline during FY09, volumes shrink 9% YoY during Oct-08
 Major players post negative sales growth during festivals month despite new
variants/launches
 Higher interest rates and stiff credit norms reduce affordability – main villains for decline
 Dip in consumer confidence and postponement of purchases ahead of new model launches
further dent demand
 CVs witness sharp 36% YoY decline, while domestic passenger cars and 2-Wheelers also
tripped
 Exports maintained strong growth; rising 41% YoY with sales of 144,083 units during Oct ’08

9. Outlook
 Domestic macro scene remains challenging with production cuts and job-losses across
industries.Bunching of all negative forces might see auto sales see weakest quarter (3Q) ending Dec
’08
 Huge capex incurred by major auto players would squeeze the free cash flows as well as return ratios
for the companies
 Drop in commodity prices and softening interest rates could give relief to the auto majors by lifting
cost pressure
 Short-term outlook is grim. Recent liquidity transfusions by the central bank and global stimuli make
long term outlook positive on the sector
 Near term, we maintain neutral outlook on the sector. Long term, the outlook is positive with
favorable demographics, lower penetration and prospects of return to higher margins

10. Positive Factors
 Good performance of the economy – higher all round growth leading to high GDP growth of 8%
 Brisk activities on infrastructural development
 Emergence of India as an manufacturing hub for the Automotive Industry

11. Negative Factors
 No Excise duty reduction on passenger vehicles
 No Softening of interest rates and improved financing
 Cancellation on Availability of finance in rural and urban areas on 2 Wheelers
 Global Recession Impact hitting badly since mid of 2008
 Increase in input prices
 Crude oil & derivatives
 Ferrous & Non-Ferrous Metals
 Natural rubber
 Increase in Steel Prices

12. Automobile Domestic Sales Trends
9,000,000
Automobile Domestic Sales Trends
8,000,000
7,000,000
sale s Figure s
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Passenger Vehicles 707,198 902,096 1,061,572 1,143,076 1,379,979 1,547,985
Commercial Vehicles 190,682 260,114 318,430 351,041 467,765 486,817
Three Wheelers 231,529 284,078 307,862 359,920 403,910 364,703
Tw o Wheelers 4,812,126 5,364,249 6,209,765 7,052,391 7,872,334 7,248,589
Passenger Vehicles Year
Commercial Vehicles Three Wheelers Two Wheelers

13. OverAll Indian Automobile Market Scenario
(2007-08)
Three Wheelers
4% CVs
4%
Total Passenger Vehicles
14%
Two Wheelers
78%

14. 2 Wheeler Sales performance F/Y Wise
7000000
6000000
5000000
4000000 M o t o r Cycles
Sco o ters
3000000 M o p ed s
2000000
1000000
0
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Motor Cycles 2887194 3647493 4170445 4964753 5815417 6553664 5768341
Scooters 908268 825648 886295 922428 908159 940673 1050167
Mopeds 408263 338985 307509 322584 332741 355870 415051
Y ear

15. Used Cars V/s New Cars
%
0.6% Premium Segment
Used Cars
100,000 Dream Car 50%
By TATA & BAJAJ
Used Cars sale v/s New Car sale
99.4% Entry level,
Deluxe, Scooter- New Cars
Segment 50%
Premium Segment includes Vehicles Above
75000(Pulsar220,Karizma, Yamaha R1)

16. Jan 2009-The Wait is Over
 The TATA Dream Car(1 Lac Car)  Hamara Bajaj takes to four wheels&has taken
 The Long awaited TATA NANO Queen is on up a challenge fo making indias cheapest Car
the way  The Another Queen is getting Ready to Hit
 Will push up the 4 wheeler Market & change The Indian Roads
the landscape of the Indian passenger cars  Bajaj s Cheapest Car—Getting Prepared

17. Indian Automotive Ahead
2013
30
2012
25
2011
20
2010
% Sales 15
2009
10
5
0
Cars No longer remains a status symbol
Car becomes common in middle class segment too like cell phones

18. India Next
• Traffic Jams • Parking Space Problem
• Fluctuation in Petrol Prices • Increase in No of Accidents
• Increase in Travelling Time • Less Mileage

19. Back 2 Pavillion
%
One Lac Car Customers
100,000 Car Customers
Car can be used only as family transport vehicles
2 Wheeler the only option that remains with indian to lead a comfortable life