Indian Automobile/Car Industry!!

1. Indian
Car Industry
Subject: Consumer Behaviour
Presented By:
Krupesh Shah
Grishma Sarangdhar
Sandeep Jaiswar
Subhakar Shetty
Ashish Tambe

3. Car History
• The first car was built by Joseph Cugnot in 1769,it was
powered by steam engine and was very slow.
• 1807 - Francois Isaac de Rivaz was first to build the one
cylinder engine ,internal combustion engine.
• 1886 - Karl Benz designed the first four wheel automobile.
• 1897 - Mr. Foster from Crompton Greaves company, First
person to own car in India.
• 1901 - Mr. Jamsetji Tata, First Indian to own car.
• 1971 - Prime Minister Indira Gandhi proposed the production
of a 'People's Car' for India.

4. India - Fact File
• Asia's fourth largest exporter of passenger cars.
• Sixth largest manufacturer of passenger car and
commercial vehicle.
• India is home to 40 million passenger vehicles.
• 3,695 factories producing automotive parts in all of India.
• The industry grew 4% , selling around 20,649,811 units
in 2013 – 2014.
• 2.8 million units exported in 2013 -14 ( $12 billion) major
contributor two wheeler (77%).
Fact File

5. Fact File
Global - Fact File
• 1 billion passenger vehicle across the world.
• Global vehicle ownership per capita is 192 vehicles
per 1000 people
• Major Player GM (24%) , Ford(20%) and Toyota (19%).
• China is the leading automotive manufacturing company.

6. Social Obligation
• Employment - predominantly full-time male workforce
• Ease of transport – Safety
• Satisfy customers with goods and services of real value
• ARAI – Automotive Research Association of India
• Global warming and Global issues – Eg. Maruti
• IT and the Auto Industry lead CSR initiatives in India
• Improving CSR practices is not only the right thing to do,
it's good business and an investment of the future

7. • Automotive industry crisis of 2008–2010
• Environmental Issues
• Disposing off an old vehicle – Recycle and Reuse
• Problems like parking and congestion in urban areas
• High inflation, Unstable fuel prices and High interest rates
• Every $1 fall in crude oil prices will reduce the country’s
import bill by about Rs 3,700 crore
• Safety norms in India are significantly behind standards in
other nations
Problems of Car Industry

8. Problems of Car Industry
• 2013-2014 saw just nine new cars hitting the market, but 22
special editions.
• Special editions are unlikely to make any impact on the
market, unless there is some value addition
• Discrepancy between the excise duty on large and small cars
• Budget 2014-2015 announced continuation of the excise duty
till December 2014. Green signal to GST
• Eg:- Tata Motors - Sales declined 6% year over year in fiscal
2014, negative sales growth for the first time in 11 years

9. Automobile Future - 2030
• Big Three. China, The United States of America and India
• India & China combined shares of motor vehicle registrations
are expected to rise from 10% in 2010 to 35% by 2030
• Between 2014 and 2030, the fleet on vehicles on the road is
expected to rise by almost 1 billion
• Global vehicle sales are projected to more than double from
approximately 63 million in 2009 to 140 million by 2030
• The BRIC economies are projected to account for four of the
top six markets in vehicle sales by 2030.

10. Automobile Market Share - 2030
Percent Share of Top 10 Markets : Vehicles
China 23%
Us 20% German 4%
Italy 2%
France 3%
Brazil 4%
UK 3%
Russia 3%
Rest 22%
Japan 4%
India 12%
Registered (2030)
China
German
Us
Russia
UK
Brazil
France
Italy
Rest
Japan
India

11. What the industry can do?
• Focus on green technology
• Develop smaller engines
• Hybrid & electric vehicles
• De-risking
• Telematics
• Curb the counterfeit auto parts markets

12. Conclusion
• Core of India’s manufacturing economy
• Restructuring & absorbing newer technologies
• Immense investment opportunities
• Auto manufacturers moving operations to India
• India companies to gain market share in Africa
and Latin America
• Government's focus on building the
manufacturing sector
• India could become the biggest automobile hub
in South Asia and ASEAN region

13. Any Questions?