Indian Automobile Industry's economic and industrial anlysis.

1. 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
PRESENTED BY:
• Arpit Bhardwaj
• Jalaj Purohit
• MD. Tausif Anwar
• Ashwani Kumar
• Dhairya Gupta
• Anish Prasad
• Bjlay Tiwari
• Neha Upadhyay
• Neha Nisha
• Khushbu Soni

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

3. Overview
Overview Overview:
Aim of project
Economy Analysis Indian automobile industry has grown leaps and bounds since 1898,
Industry Analysis a time when a car had touched the Indian streets for the first time.
Company Analysis
At present it holds a promising 9th position in the entire world with
Conclusion
References 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.

4. Objective
Overview AIM OF THE PROJECT:
Aim of project
Economy Analysis
The objective of this project is deeply analyzing our Indian Automobile
Industry Analysis Industry for investment purpose by monitoring the growth rate and
Company Analysis
performance on the basis of historical data.
Conclusion
References 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 industry’s and company’s
prospects
Application of various Technical Tools and Fundamental tools (like
Financial and Non-financial statements).

5. Companies
Overview Top Automotive Companies In
Aim of project
Economy Analysis
INDIA
Industry Analysis
Leading Companies:
Company Analysis
Conclusion  Maruti Suzuki India
References Limited (MSIL)
 Hyundai Motor India
Limited (HMIL)
 Tata Motors
 Mahindra &
Mahindra Limited
(M&M)
 Hero Motors Limited
(HML)

6. Analysis
Overview
ANALYSIS OF AUTOMOBILE INDUSTRY:
Aim of project
India has become a hub of domestic and exports business. The
Economy Analysis
Industry Analysis
automobile sector has been contributing its share to the shining
Company Analysis economic performance of India in the recent years.
Conclusion
To understand this industry for the purpose of investment we need to
References
analyze it by following four approaches:
1). Fundamental Analysis
a. Economy
b. Industry
2). Export Analysis
3). Five forces
4). Swot

7. Fundamental Analysis
Overview
ECONOMY:
Aim of project GDP and Automobile Industry:
Economy Analysis In absolute terms, India is 9th in the world in terms of nominal
Industry Analysis
factory output(its $1.22 trillion)
Company Analysis
Conclusion
References
Data source: India central statistical organization

8. Fundamental Analysis
Overview
ECONOMY:
Aim of project GDP and Automobile Industry:
Economy Analysis The per capita Income is near about Rs38,000 reflecting
Industry Analysis
improvement in the living standards of an average Indian.
Company Analysis
Today, automobile sector in India is one of the key sectors of the
Conclusion
economy in terms of the employment.
References
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

9. Fundamental Analysis
Overview
ECONOMY:
Aim of project
Recession:
Economy Analysis Global recession has hit the Indian auto industry, impact of recession is
Industry Analysis evident now on industry as sales & growth of automobile companies have
Company Analysis
declined. Passenger Vehicles segment registered negative growth.
Conclusion
References 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.

10. Industry Analysis
Overview
Industry Analysis:
Aim of project Segmentation of Automobile Industry:
Economy Analysis The automobile industry comprises of Heavy vehicles (trucks, buses,
Industry Analysis
tempos, tractors); passenger cars; Two-wheelers; Commercial Vehicles;
Company Analysis
Conclusion and Three-wheelers.
References
Data Source:http://www.autoindia.com/

11. Export Analysis
Automobile Export:
Overview
Aim of project 1800000
Economy Analysis
1600000
Industry Analysis
Company Analysis 1400000
Conclusion 1200000
References
1000000 Passenger Vehicles
Commercial Vehicles
800000
Three Wheelers
600000
Two Wheelers
400000 Grand Total
200000
0

12. Five Forces
Overview
Bargaining Power of Suppliers:
Aim of project
>The industry is comprised of powerful
buyers who are generally able to
Economy Analysis dictate their terms to the suppliers.
Industry Analysis
Company Analysis
Barriers to entry : Threat of substitutes:
Conclusion >The threat of substitutes to
>Regulatory framework
References the automotive industry is
>The startup capital required fairly mild.
to establish manufacturing
capacity to achieve minimum >The switching cost may be
efficient scale is prohibitive. high in terms of personal
time, convenience and
utility.
Automobile
Industry
Rivalry among Competitors :
Buyer/Customer Power : >Rivalry in the Indian auto sector is
>Buyer is having bargaining power due intense due to the entry of foreign
to low switching costs associated with companies in the market.
selecting from among competing
brands. >Product being matched in a few months
by the competitors

13. SWOT
Strengths(S):
Large domestic market
Overview Sustainable labor cost advantage
Aim of project Competitive auto component vendor base
Economy Analysis Government incentives for manufacturing plants
Industry Analysis
Strong engineering skills in design etc
Company Analysis
Weaknesses(W):
Conclusion Low labor productivity
References 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

14. Conclusion
Overview Conclusion:
Aim of project
Economy Analysis  Indian Automobile has a lot of scope for both two wheelers and four
Industry Analysis
wheelers due to development in infrastructure of the country.
Company Analysis
 According to Indian Statistical Organization the per capita income
Conclusion
(Rs.38000) is increasing and national income at the rate of 14.4%
References
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 don’t 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.

15. REFERANCES:
Books: Any Queries?
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