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PROJECT REPORT ON ANALYSIS OF INDIAN AUTOMOBILE INDUSTRY

ABHISHEK CHAUDHARY MBA 1 SEM 127603

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ACKNOWLEDGEMENT

The satisfaction and joy that accompanies the successful completion of a task is incomplete without mentioning the name of the person who extended his help and support in making it a success. I am greatly indebted to Dr. Akshay satsangi my Project Guide and entor for

de!oting his !aluable time and efforts towards my project. I thank him for being a constant source of knowledge" inspiration and help during this period of making project.

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PREFACE
Indian automobile industry has grown leaps and bounds since #$%$" a time when a car had touched the Indian streets for the first time. At present it holds a promising tenth position in the entire world with being & # in Two 'heelers and & ( in commercial !ehicles. 'ithstanding a growth rate of #$) per annum and an annual production of more than * million units" it may not be an exaggeration to say that this industry in the coming years will soon touch a figure of #+ million units per year. The automobile industry in India , the ninth largest in the world with an annual production of o!er *.- million units in *++$ , is expected to become one of the major global automoti!e industries in the coming years. In this project we ha!e undergone a detailed analysis of India automobile industry by using .undamental and Technical tools. In order to better understand the performance of the industry we ha!e made comparati!e analysis of two players Tata motors as /leading player0 and aruti 1u2uki.

The project report is di!ided into 3 chapters. The first two chapters include 4xecuti!e 1ummery 5 objecti!e of the research. The third chapter deals with analysis of automobile Industry which entails fundamental and technical analysis of Indian Automobile Industry. The fourth chapter deals with 6onclusion 5 7ecommendations and the last chapter includes 8ibliography

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TABLE OF CONTENT
S.NO. Chapter 1 Chapter 2 Chapter 3 PARTICULARS
Executive Summary of the Project

PAGE NO.

5 7 8 11-50

. Objective of the Project .

Analysis of Indian Automobile Industry

9 .undamental Analysis
a. 4conomy b. Industry c. 6ompany

9 Technical Analysis
a. 1hare Price Analysis b. o!ing A!erage c. o!ing A!erage 6rosso!er

51-56

Chapter 4

Conc u!ion " #ecommen$ation! &ib iography 'nnexure

57-58 59

Chapter %

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EXECUTIVE SUMMARY The automobile industry" one of the core sectors" has undergone metamorphosis with the ad!ent of new business and manufacturing practices in the light of liberali2ation and globali2ation. The sector seems to be optimistic of posting strong sales in the couple of years in the !iew of a reasonable surge in demand. The Indian automobile market is gearing towards international standards to meet the needs of the global automobile giants and become a global hub. A detailed analysis of Automobile industry has been co!ered in respect of past growth and performance. :nder this project to better understand the Industry we ha!e used .undamental and Technical tools tomake it more authentic n meaningful. An 4.I.6 approach has been followed under .undamental Analysis which co!ered effect of 7ecession" the impact of inflation" .DI;s" 4xport" GDP etc. on Automobile Industry. The Industry Analysis has been done with the help of fi!e forces model" 86G atrix" 1'<T analysis" industry life cycle and the industry otors as our leading specific index. .or 6ompany Analysis as a part of .undamental tool we ha!e undergone with the comparati!e analysis of TATA company with aruti 1u2uki India;s largest 6ar manufacturer. The fundamental

aspect consists financial and =on>.inancial analysis of both the company. In the Technical aspect we ha!e considered 1hare price analysis" mo!ing a!erage"

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mo!ing a!erage crosso!er" 8ollinger bands and by keeping TATA

.A.6.D. of both the company

otors as our leading company.

At the end conclusion and recommendations ha!e been specified so as to make the research work more meaningful and purposeful.

Li !"# $"! R!%i!&

6ompetiti!eness of manufacturing sector is a !ery broad multi>dimensional concept that embraces numerous aspects such as price" ?uality" producti!ity" efficiency and macro>economic en!ironment. The <46D definition of competiti!eness" which is most widely ?uoted" also considers employment and sustainability" while being exposed to international competition" as features pertaining to competiti!eness. There are numerous studies on auto industry in India" published by industry associations" consultancy organi2ations" research bodies and peer>re!iewed journals. In this section" !arious studies on the Indian auto industry are re!iewed" under different heads pertaining to competiti!eness" namely" global comparisons" policy en!ironment and e!olution of the Indian auto industry" producti!ity" aspects related to supply>chain and industrial structure and technology and other aspects.

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OB'ECTIVE OF THE PRO'ECT The objecti!e of this project is deeply analy2e our Indian Automobile Industry for in!estment 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 Analy2e the impact of ?ualitati!e factors on industry;s and company;s prospects 6omparati!e analysis of two tough competitors TATA 1u2uki otors and aruti

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I()i#( A$ *+*,i-! M#".! S/!(#"i*0 De>licensing in #%%# put the Indian automobile industry on a new growth trajectory" which attracted foreign auto giants to set up their production facilities in the country to take ad!antage of the !arious benefits it offers. @arge middle class population" growing earning power and strong technological capability ha!e been boosting automobile demand for the past few years. Despite economic slowdown" the Indian automobile sector has recorded phenomenal growth" especially in passenger cars segment. The passenger !ehicle market" which constitutes around $+) of automobile sales" has immense growth potential. Anticipating the future market potential" the production of passenger !ehicle is forecasted to grow around #+) till *+#*>#-. Tata =ano has brought about a new re!olution in the country;s small car segment. 1eeing the good initial response from consumers" many other players in

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the industry are chalking out their plans to launch cars in this segment in the next few years. A 6AG7 analysis shows growth of around #(.3) in domestic !olume sales of passenger !ehicles during the coming years. <ther segments" such as two>wheelers" multi>purpose !ehicle and light commercial !ehicle" are also expected to witness fast growth in coming years. The research co!ers !arious aspects of the Indian automobile market and gi!es a detailed analysis of its !arious segments such as passenger !ehicle" commercial !ehicle" utility !ehicles" multi>purpose" two wheelers and three wheelers. 4ach section concisely explains the current and future market trends" and de!elopments in the Indian automobile market. There are immense opportunities for !arious industry players including automobile manufacturers and players of automobile components. According to new research report AIndian Passenger 6ar arket AnalysisB" the passenger car market" which constitutes around C$.3) of passenger !ehicle sales /in .D *+#+0" has immense growth potential as passenger car stock stood at around ##.E per #"+++ people in *++%. 7eali2ing booming passenger car demand in the country" many domestic and foreign automobile giants are formulating capacity expansion strategies" and billions of dollar worth of in!estments is already in pipeline. 6onsidering huge market potential" production of passenger cars is projected to grow at a 6AG7 of around ##) between *+#+>## and *+#-> #(.

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M#".! S1#"! *2 P#33!(4!" V!1i/-!3 I()$3 "50

Fi4 30 P!"/!( #4! M#".! S1#"! *2 P#33!(4!" V!1i/-!3 The increasing scenario of passenger car segment has shown positi!e effect on the sales of the segment because of the tourist industry growth. Passenger car production in India is projected to cross three million units in *+#(>#3. 1ales of passenger cars during the period *+#3>#E are expected to grow around #+). 4xport of passenger cars is anticipated to raise more than the domestic sales *+#3> #E.Passanger car segment is dominated by the share of aruti 1u2uki India and

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it has recorded a percentage of (E percent" second position has grabbed by the Tata otors which has a share of #E.(3 percent. Third position is of Fyundai otors of India. The rest of the companies ha!e not recorded a significant sales increase during the period and their sales are less than #+ percent. /.ig.-0 The sales of aruti 1u2uki of India has increased because of its !alue added aruti 1u2uki of India has a team ser!ice like after sales ser!ices which includes regular check camps of the !ehicles and free lubricants to the customers. regarding the !ehicle problems. of experts and they are always ready to gi!e their expert ad!ice to the customers aruti has maintained its ?uality and it has good mileage per liter of diesel and petrol too. The life of !ehicle is also a positi!e point to increase sales of the !ehicles.

ANALYSIS OF AUTOMOBILE INDUSTRY

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<!er a period of more than two decades the Indian Automobile industry has been dri!ing its own growth through phases. 'ith comparati!ely higher rate of economic growth rate index against that of great global powers" 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 in!estment we need to analy2e it by following two approachesG #0. .undamental Analysis /4.I.6 Approach0 a. 4conomy b. Industry c. 6ompany *0.Technical Analysis
1-

./01'2E03'4 '0'45S6S

a). ECONOMY 4conomic analysis is the analysis of forces operating the o!erall economy a country. 4conomic analysis is a process whereby strengths and weaknesses of an economy are analy2ed. 4conomic analysis is important in order to understand exact condition of an economy.

GDP an

A!"#$#%&'( In !)"*+

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In absolute terms" India is #Eth in the world in terms of nominal factory output. The ser!ice sector is growing rapidly in the past few years. This is the pie> chart showing contributions of different sectors in Indian economy. The per capita Income is near about 7s-$"+++ reflecting impro!ement in the li!ing standards of an a!erage Indian. Today" automobile sector in India is one of the key sectors of the economy in terms of the employment. Directly and indirectly it employs more than #+ million people and if we add the number of people employed in the auto> component and auto ancillary industry then the number goes e!en higher. As the world economy slips into recession hitting the demand hard and the banking sector takes conser!ati!e approach towards lending to corporate sector" the GDP growth has downgraded it to C.# percent for *++$>+% and predicted it to be E.3 per cent for .D *++%>#+ years. r. ontek 1ingh /Planning 6ommission of India0. .ollowing is the graph showing a trend of Indian GDP trend in past -

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R!/!33i*( All the major auto companies enjoyed the high growth ride till the mid *++$. 8ut at the end of the year" industry had to face the hard truth and witnessed the fall in sales compared to last year. In December *++$" o!erall production fell by ** ) o!er the same month last year. Global recession has hit the Indian auto industry" India is strong and growing industry but the impact of recession is e!ident now on industry as sales 5 growth of automobile companies ha!e declined. Passenger Hehicles segment registered negati!e growth. <ne of its supporting facts is that the sales in December *++$ for passenger !ehicles fell by #-.$E) o!er December *++C Two 'heelers registered minor growth of #.$3 ) during April I December *++$. Fowe!er" Two 'heelers sales recorded #3.(- percent fall in December *++$ o!er the same month last year. Although the sector was hit by economic slowdown" o!erall production /passenger !ehicles" commercial !ehicles" two wheelers and three wheelers0 increased from #+.$3 million !ehicles in *++C>+$ to ##.#C million !ehicles in *++$>+%. Passenger !ehicles increased marginally from #.CC million to #.$million while two>wheelers increased from $.+* million to $.(# million. Total number of !ehicles sold including passenger !ehicles" commercial !ehicles" two> wheelers and three wheelers in *++$>+% was %.C* million as compared to %.E3 million in *++C>+$. I(2-# i*( Despite of negati!e inflation these days />.*#) on **>Aug>+%0 we saw an increasing trend of sales in auto sector. A moderate amount of inflation is important for the proper growth of an economy like India because it attracts

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more pri!ate in!estment. The fall in wholesale prices from a year earlier is mainly due to a statistical base effect and doesn;t suggest contraction in demand" the 7eser!e 8ank of India said few week back" while re!ising its inflation forecast for the .D through arch to around 3) from ().

In last .D despite of skyrocketing oil prices /crude oil price has already up to J#-+ compared to J*+ per barrel fi!e years back0" Indian automobile Industry was not as much affected and experts think that Indian automobile industry will continue to grow this year despite all obstacles> oil price hike" higher interest rates. Fowe!er" the effect of inflation has affected e!ery sector which is related to car manufacturing and production. The increase in the price of fuel and the steel due to inflation has led to a slower growth rate of the car industry in India. The effect of inflation has taken the rise in the price rate of the cars by ->() which in turn suffices the need to meet the rise inprice of the raw materials to build a car. The car market and the car industry witnessed a fall of $>%). FDI63 In India .DI up to #++ percent" has been permitted under automatic route to this sector" which has led to a turno!er of :1D #* billion in the Indian auto industry and :1D - billion in the auto parts industry. India enjoys a cost ad!antage with respect to casting and forging as manufacturing costs in India are *3 to -+ per cent lower than their western counterparts the In!estment 6ommission has set a target of attracting foreign in!estment worth :1J 3 billion for the next se!en years to increase IndiaKs share in the global auto components market from the existing +.% per cent to *.3 per cent by *+#3. .DI inflows in Automobile

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Industry *++$>+% was 7s.3"*#* 6r an increase of (C.*3) compare to *++C>+$" while in April> ay *++% it was around 7s.(%C 6r.

E78*" 1ociety of Indian Automobile anufacturers /1IA 0" automobile sales

/including passenger !ehicles" commercial !ehicles" two>wheelers and three> wheelers0 in the o!erseas markets increased to #.3- million units in *++$>+% from #.*- million units in *++C>+$. 4xport of passenger !ehicles increased from *#$"(+# in *++C>+$ to --3"C-% units in *++$>+%.

There is a continuous increase in the export of automobiles since the financial year *++*>+-" except for the decline in the export of commercial !ehichles in the

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financial year *++$>+%" which may be attributed to the global economic recession. Despite recession" the Indian automobile market continues to perform better than most of the other industries in the economy in coming future" more and more =6;s coming in India to setup their !entures which clearly shows the scope of expansion.

%., INDUSTRY ANALYSIS 7'/3O2O&64EThe current trends of the global automobile industry re!eal that in the de!eloped countries the automobile industries are stagnating as a result of drooping markets" whereas the automobile industry in the de!eloping nations" ha!e been consistently registering higher growth rates e!ery passing year for their domestic flourishing domestic automobile markets. 8eing one of the fastest growing sectors in the world its dynamic growth phases are explained by the nature of competition" Product @ife 6ycle and consumer demand. The industry is at the crossroads with global mergers and relocation of production centers to emerging de!eloping countries. In *++%" estimated rate of growth of India Auto industry is going to be %) .The Indian automobile sector is far from being saturated" lea!ing ample opportunity for !olume growth. S(-$(n"a"&#n #. A!"#$#%&'( In !)"*+ The automobile industry comprises of Fea!y !ehicles /trucks" buses" tempos" tractors0L passenger carsL Two>wheelersL 6ommercial HehiclesL and Three>

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wheelers. .ollowing is the segmentation that how much each sector comprises of whole Indian Automobile Industry.

I()$3 "i#- A(#-53i3 *2 #(5 i()$3 "5 /#( ,! )*(! ,#3!) *( 1! 2*--*&i(4 1!#)i(430 #. .i!e .orces *. 86G atrix odel

-. Industrial @ife 6ycle (. 1'<T Analysis 3. Industry 1pecific Index

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Porter8! .ive .orce!

Porter;s .i!e .orces of 6ompetition framework !iews the profitability of an industry as determined by fi!e sources of competiti!e pressure. These fi!e forces of competition include three sources of Ahori2ontalB competitionG competition from substitutes" competition from entrants" and competition from established ri!alsL and two sources of A!erticalB competitionG the bargaining power of suppliers and buyers. The strength of each of these competiti!e forces is determined by a number of key structural !ariables" as shown in .igure -.-.

FIGURE 392 P*" !"63 Fi%! F*"/!3 *2 C*+8! i i*( 2"#+!&*".

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C#$/("&"&#n .*#$ S!%)"&"!"() The price customers are willing to pay for a product depends" in part" on the a!ailability of substitute products. The absence of close substitutes for a product" as in the case of automobiles" means that consumers are comparati!ely insensiti!e to price /i.e." demand is inelastic with respect to price0. The existence of close substitutes means that customers will switch to substitutes in response to price increases for the product /i.e." demand is elastic with respect to price0. The extent to which substitutes limit prices and profits depends on the propensity of buyers to substitute between alternati!es. This" in turn" is dependent on their price performance characteristics. The more complex the needs being fulfilled by the product and the more difficult it is to discern performance differences" the lower the extent of substitution by customers on the basis of price differences.

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FIGURE 393 T1! 3 "$/ $"#- )! !"+i(#( 3 *2 1! Fi%! F*"/!3 *2 C*+8! i i*(

R&0a'*+ %("1((n E)"a%'&)2(

C#$/("&"#*)

.or most industries" the major determinant of the o!erall state of competition and the general le!el of profitability is competition among the firms within the industry. In some industries" firms compete aggressi!ely I sometimes to the

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extent that prices are pushed below the le!el of costs and industry>wide losses are incurred. In others" price competition is muted and ri!alry focuses on ad!ertising" inno!ation" and other non price dimensions. 1ix factors play an important role in determining the nature and intensity of competition between established firmsG concentration" the di!ersity of competitors" product differentiation" excess capacity" exit barriers" and cost conditions. T2*(a" #. En"*+ If an industry earns a return on capital in excess of its cost of capital" that industry acts as a magnet to firms outside the industry. :nless the entry of new firms is barred" the rate of profit will fall toward its competiti!e le!el. The threat of entry rather than actual entry may be sufficient to ensure that established firms constrain their prices to the competiti!e le!el.
E/*(*+i!3 *2 S/#-! : 1ince Indian automobile market is of order J -3+ billion" the economies of scale are !ery high. Thus" threat of new entrants is lo . P"*)$/ Di22!"!(/!3 : 1ince there is hardly any difference in the offerings of the !arious pro!iders" so product differentiation is low. 1o threat of new entrants is hi!h. B"#() I)!( i 5 : 1ince there is no big 7etailer like Ama2on.com or 'al> art in India. 1o threat of new entrants is hi!h. G*%!"(+!( P*-i/5 : 1ince the Go!ernment Policy has been ?uite restricti!e till now with respect to the 7etail market 5 .DI" so threat of new entrants is lo . C#8i #- R!;$i"!+!( 3 : The capital re?uirements for entering in the automobile sector are substantially high/ high fixed cost and cost of infrastructure0" so only big names can think of !enturing into this area 1o" in that respect threat of new entrants is lo .

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A//!33 * )i3 "i,$ i*( : 1ince in India there is no well established distribution network. 1o threat of new entrants is lo .

Ba*-a&n&n- P#1(* #. B!+(*) The firms in an industry operate in two types of marketsG in the markets for inputs and the markets for outputs. In input markets firms purchase raw materials" components" and financial and labor ser!ices. In the markets for outputs firms sell their goods and ser!ices to customers /who may be distributors" consumers" or other manufacturers0. In both markets the transactions create !alue for both buyers and sellers. Fow this !alue is shared between them in terms of profitability depends on their relati!e economic power. The strength of buying power that firms face from their customers depends on two sets of factorsG buyers; price sensiti!ity and relati!e bargaining power.
P"*)$/ Di22!"!(/!3 : 1ince there is hardly any difference in the offerings of the !arious pro!iders" so product differentiation is low. 1o bargaining power of buyers is 1i41. B$5!" I(2*"+# i*( : Today;s customers are well educated about the !arious product offerings in the sector. 1o bargaining power of buyers is hi!h. B$5!" S&i /1i(4 C*3 3 : 1ince customers don;t ha!e to pay a fat premium to be registered for pro!ision of ser!ices " so bargaining power of buyers is hi!h. B"#() I)!( i 5 : Figh 8rand Identity and trustworthiness reduce the bargaining power of buyers but" otherwise the bargaining power of buyers is hi!h. B$5!" P"*2i 3 : 1ince dealers offers discounts and !arious bundling ser!ices like +) insurance" old car sale" etc" on different items. Fence bargaining power of buyers is hi!h.

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Ba*-a&n&n- P#1(* #. S!//'&(*) Analysis of the determinants of relati!e power between the producers in an industry and their suppliers is precisely analogous to analysis of the relationship between producers and their buyers. The only difference is that it is now the firms in the industry that are the buyers and the producers of inputs that are the suppliers. The key issues are the ease with which the firms in the industry can switch between different input suppliers and the relati!e bargaining power of each party.
P"*)$/ Di22!"!(/!3 : 1ince there is hardly any difference in the offerings of the !arious suppliers" so product differentiation is low. 1o bargaining power of 1uppliers is lo . S$88-i!" I(2*"+# i*( : Today;s automobile manufacturers are well educated about different 1uppliers. 1o bargaining power of 1uppliers is lo . S$88-i!" S&i /1i(4 C*3 3 : 1ince different 1uppliers hold resources as per buyer;s re?uirements and a large in!entory has to be maintained. 1o bargaining power of 1uppliers is lo as they would ha!e to incur a huge cost on switching9 8ut if they get automobile manufacturers for similar products who can pay higher 1upplier switching cost is low. In such case" bargaining power of 1uppliers is hi!h. B"#() I)!( i 5 : Figh 8rand Identity and Trustworthiness of a 1upplier increases the bargaining power of 1uppliers9 8ut" otherwise the bargaining power of suppliers is lo .

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29< BCG M# "i7

In an economy" different industries are present and different industries ha!e different growth rate as compared to the growth of the economy. In an economy" there are a number of major industries and they all occupy different positions in the 86G matrix according to their growth and contribution towards the economy. In the Indian economy" some of the major sectors are . 6G" automobiles" banking and insurance" steel" telecom" software" pharmacology and retail sectors and these can be placed in the different positions in the matrix as shown belowG

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86G matrix is used to determine the relati!e position of the companies of an industry or different 18:;s of any institution" in terms of the market growth rate and the market share of the company in the industry. In the Indian automobile sector" the major players are and ahindra" Tata aruti 1u2uki @imited" General motors" ahindra otors" Fero Fonda and 8ajaj auto. In the 86G matrix" the

companies are placed in one of the following four categoriesG 1tar" 6ash 6ows" Dogs and Muestion marks. In the 1tars we place the companies with high market growth and high market share" cash cows are the companies who ha!e low market growth rate and high relati!e market share" the category of the ?uestion marks include the companies with low relati!e market share and high market growth rate and dogs include the companies who ha!e low relati!e market share and low market growth rate.

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39< I()$3 "i#- Li2! C5/-! The industrial life cycle is a term used for classifying industry !itality o!er time. Industry life cycle classification generally groups industries into one of four stagesG pioneer" growth" maturity and decline. In the pioneer phase" the product has not been widely accepted or adopted. 8usiness strategies are de!eloping" and there is high risk of failure. Fowe!er" successful companies can grow at extraordinary rates. The Indian automobile sector has passed this stage ?uite successfully. In the growth phase" the product market has been established and there is at least some historical guide to ground demand estimates. The industry is growing rapidly" often at an accelerating rate of sales and earnings growth. Indian Automoti!e Industry is booming with a growth rate of around #3 ) annually.

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The cumulati!e growth of the Passenger Hehicles segment during April *++C I arch *++$ was #*.#C percent. Passenger 6ars grew by ##.C% percent" :tility Hehicles by #+.3C percent and 'hile ulti Purpose Hehicles by *#.-% percent in this period. The 6ommercial Hehicles segment grew marginally at (.+C percent. edium 5 Fea!y 6ommercial Hehicles declined by #.EE percent" @ight 6ommercial Hehicles recorded a growth of #*.*% percent. Three 'heelers sales fell by %.C# percent with sales of Goods 6arriers declining drastically by *+.(% percent and Passenger 6arriers declined by *.#- percent during April> arch *++$ compared to the last year. Two 'heelers registered a negati!e growth rate of C.%* ) during this period" with motorcycles and electric two wheelers segments declining by ##.%+ percent and ((.%-) respect. Fowe!er" 1cooters and opeds segment grew by ##.E() and #E.E-) respect.

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The growth rate of the automobile industry in India is greater than the GDP growth rate of the economy" so the automobile sector can be !ery well be said to be in the growth phase. As the product matures" growth slows as penetration reaches practical limits. 6ompanies began to focus on market share rather than growth. Industry demand tends to follow the o!erall economy" but the scope of growth of the automobile sector is !ery much possible in India due to the increasing income of the middle class and their income as well as standard of li!ing.

3., S4OT Ana'+)&) A scan of the internal and external en!ironment is an important part of the strategic planning process. 4n!ironmental factors internal to the firm usually can

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be classified as strengths /10 or weaknesses /'0" and those external to the firm can be classified as opportunities /<0 or threats /T0. 1uch an analysis of the strategic en!ironment is referred to as a 1'<T analysis. 1'<T analysis of the Indian automobile sector gi!es the following pointsG S "!(4 13 @arge domestic market 1ustainable labor cost ad!antage 6ompetiti!e auto component !endor base Go!ernment incenti!es for manufacturing plants 1trong engineering skills in design etc W!#.(!33!3 @ow labor producti!ity Figh interest costs and high o!erheads make the production uncompetiti!e Harious forms of taxes push up the cost of production @ow in!estment in 7esearch and De!elopment Infrastructure bottleneck

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O88*" $(i i!3 6ommercial !ehiclesG 16 ban on o!erloading Fea!y thrust on mining and construction acti!ity Increase in the income le!el 6ut in excise duties 7ising rural demand T1"!# 3 7ising input costs 7ising interest rates 6ut throat competition

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5., In !)"*+ S/(5&.&5 In (6 Industry specific index also called as sectoral index are those indices" which represent a specific industry sector. All stocks in a sectoral index belong to that sector only. Fence an index like the 814 auto index is made of auto stocks. 1ectoral Indices are !ery useful in tracking the mo!ement and performance of particular sector. 814 Auto Index comprises all the major auto stocks in the

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8143++ Index.

PES34E 'na y!i!

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P41T@4 Analysis is a simple" useful and widely>used tool that helps you understand the Nbig pictureN of your Political" Economic" Socio>6ultural and Technological" Legal and En!ironmental aspects. As such" it is used by business leaders worldwide to build their !ision of the future. P41T@4 analysis is concerned with the en!ironmental influences on a business. Identifying P41T@4 influences is a useful way of summari2ing the external en!ironment in which a business operates. Fowe!er" it must be followed up by consideration of how a business should respond to these influences. It is important for these reasonsG

.irst" by making effecti!e use of P41T@4 Analysis" you ensure that what you are doing is aligned positi!ely with the powerful forces of change that are affecting our world. 8y taking ad!antage of change" you are much more likely to be successful than if your acti!ities oppose itL

1econd" good use of P41T@4 Analysis helps you a!oid taking action that is doomed to failure from the outset" for reasons beyond your controlL and

Third" P41T@4 is useful when you start operating in a new country or region. :se of P41T@4 helps you break free of unconscious assumptions" and helps you ?uickly adapt to the realities of the new en!ironment.

The table below lists some possible factors that could indicate important en!ironmental influences for a business under the P41T@4 headingsG

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P*-i i/#- = L!4#> 4n!ironmental regulation and protection > Taxation

E/*(*+i/
> 4conomic growth > onetary policy

S*/i#> Income distribution > Demographics

T!/1(*-*4i/#> Go!ernment spending on research > Go!ernment and industry focus on technological effort

> International trade regulation > 6onsumer protection > 4mployment law

> Go!ernment spending > Policy towards unemployment > Taxation

> @abor O social mobility > @ifestyle changes > Attitudes to work and leisure

> =ew disco!eries and de!elopment > 1peed of technology transfer > 7ates of technological obsolescence > 4nergy use and costs > 6hanges in material sciences > Impact of changes in Information technology

> Go!ernment organi2ation O attitude > 6ompetition regulation

> 4xchange rates > Inflation > 1tage of the business cycle > 4conomic NmoodN > consumer confidence

> 4ducation > .ashions and fads > Fealth 5 welfare

> @i!ing conditions

> InternetP

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PES34E 'na y!i! of 'utomobi e Sector

P#'&"&5a'

Q In *++*" the Indian go!ernment formulated an auto policy that aimed at promoting integrated" phased" enduring and self>sustained growth of the Indian automoti!e industry Q Allows automatic appro!al for foreign e?uity in!estment up to #++) in the automoti!e sector and does not lay down any minimum in!estment criteria. Q .ormulation of an appropriate auto fuel policy to ensure a!ailability of ade?uate amount of appropriate fuel to meet emission norms Q 6onfirms the go!ernment;s intention on harmoni2ing the regulatory standards with the rest of the world Q Indian go!ernment auto policy aimed at promoting an integrated" phased and conducti!e growth of the Indian automobile industry. Q Allowing automatic appro!al for foreign e?uity in!estment up to #++) with no minimum in!estment criteria. Q 4stablish an international hub for manufacturing small" affordable passenger cars as well as tractor and two wheelers.

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Q 4nsure a balanced transition to open trade at minimal risk to the Indian economy and local industry. Q Assist de!elopment of !ehicle propelled by alternate energy source. Q @ying emphasis on 75D acti!ities carried out by companies in India by gi!ing a weighted tax deduction of up to #3+) for in house research and 75D acti!ities. Q Plan to ha!e a terminal life policy for 6Hs along with incenti!es for replacement for such !ehicles. Q Promoting multi>model transportation and the implementation of mass rapid transport system.

E5#n#$&5

Q The le!el of inflation 4mployment le!el per capita is right. Q 4conomic pressures on the industry are causing automobile companies to reorgani2e the traditional sales process. Q 'eighted tax deduction of up to #3+) for in>house research and 7 5 D acti!ities. Q Go!t. has granted concessions" such as reduced interest rates for export financing.

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Q The Indian economy has grown at $.3) per annum. Q The manufacturing sector has grown at $>#+ ) per annum in the last few years. Q ore than %+) of the 6H purchase is on credit.

Q .inance a!ailability to 6H buyers has grown in scope during the last few years. Q The increased enforcement of o!erloading restrictions has also contributed to an increase in the no. of 6Hs plying on Indian roads. Q 1e!eral Indian firms ha!e partnered with global players. 'hile some ha!e formed joint !entures with e?uity participation" other also has entered into technology tie>ups. Q 4stablishment of India as a manufacturing hub" for mini" compact cars" <4 s and for auto components. S#5&a'

Q 1ince changed lifestyle of people" leads to increased purchase of automobiles" so automobile sector ha!e a large customer base to ser!e. Q The a!erage family si2e is (" which makes it fa!orable to buy a four wheeler. Q Growth in urbani2ation" (th largest economy by ppp index. Q :pward migration of household income le!els.

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Q $3) of cars are financed in India. Q 6ar priced below :1D #*+++ accounts for nearly $+) of the market. Q Hehicles priced between :1D C+++>#*+++ form the largest segment in the passenger car market. Q Indian customers are highly discerning" educated and well informed. They are price sensiti!e and put a lot of emphasis on !alue for money. Q Preference for small and compact cars. They are socially acceptable e!en amongst the well off. Q Preference for fuel efficient cars with low running costs. T(52n#'#-&5a'

ore and more emphasis is being laid on 7 5 D acti!ities carried out by companies in India.

Q 'eighted tax deduction of up to #3+) for in>house research and 7 5 D acti!ities. The Go!ernment of India is promoting =ational Automoti!e Testing and 75D Infrastructure Project /=AT7IP0 to support the growth of the auto industry in India Technological solutions helps in integrating the supply chain" hence reduce losses and increase profitability.

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6ustomi2ed solutions /designer cars" etc0 can be pro!ided with the proliferation of technology Internet makes it easy to collect and analyse customer feedback 'ith the entry of global companies into the Indian market" ad!anced technologies" both in product and production process ha!e de!eloped. 'ith the de!elopment or e!olution of alternate fuels" hybrid cars ha!e made entry into the market. .ew global companies ha!e setup 7 5D centers in India. ajor global players like audi" 8 '" Fyundai etc ha!e setup their manufacturing units in India. En0&*#n$(n"a'

Physical infrastructure such as roads and bridges affect the use of automobiles. If there is good a!ailability of roads or the roads are smooth then it will affect the use of automobiles. Physical conditions like en!ironmental situation affect the use of automobiles. If the en!ironment is pleasant then it will lead to more use of !ehicles. Technological solutions helps in integrating the supply chain" hence reduce losses and increase profitability.

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'ith the entry of global companies into the Indian market" ad!anced technologies" both in product and production process ha!e de!eloped. 'ith the de!elopment or e!olution of alternate fuels" hybrid cars ha!e made entry into the market. .ew global companies ha!e setup 7 5D centers in India. ajor global players like audi" 8 '" Fyundai etc ha!e setup their manufacturing units in India.

L(-a' @egal pro!ision relating to en!ironmental population by automobiles. @egal pro!isions relating to safety measures. 6onfirms the go!ernment;s intention on harmoni2ing the regulatory standards with the rest of the world Indian go!ernment auto policy aimed at promoting an integrated" phased and conducti!e growth of the Indian automobile industry. 4stablish an international hub for manufacturing small" affordable passenger cars as well as tractor and two wheelers. 4nsure a balanced transition to open trade at minimal risk to the Indian economy and local industry.

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M#".! S1#"! *2 C*++!"/i#- V!1i/-!3 I()$3 "50 6ommercial !ehicle segment has dominated by the Tata group of motors in India and stood first in automobile industry. It has a share or E-.%( percent. Ashok @eyland has its brand name in market and known for the ?uality product. The price section of Ashok @eyland is higher than the other automobile companies but still it has second position in commercial !ehicle segment and has garbed #E.(C percent share of the market. Third largest market share is captured by the ahindra and ahindra automobiles it has #+.+# percent share in market. The other Automobile companies ha!e shown their presence in market but it is not significant in nature. Their share is in between E percent to one percent /figure -0. There are so many reasons why these companies ha!e not performed in market. It may be the price war" ?uality of the product" durability of the product and performance of the product. The customers of this segment always think about the ser!ice pro!ided by the company after sales. Fence it is most important to impro!e ?uality" durability and after sales ser!ice along with competiti!e price of the Product.

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M#".! S1#"! *2 T&* W1!!-!" I()$3 "5

Fi4 >0 P!"/!( #4! M#".! S1#"! *2 T&* W1!!-!"3

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Fero Fonda has a remarkable share in the market of the two wheeler industry of India. It has recorded more than (# percent share in the segment during the period. 'here 8ajaj the local manufacturer of two wheelers has recorded second position sales percentage *E.C+ but it is a significant growth during the period. Third place has grabbed by the TH1 motors in the segment which has a share of #$.#( percent. 7est of the two wheeler manufacturer has a share of less than #+ percent and it is due to the ?uality of the product and the ser!ices pro!ided by them to the customers. All the parameters like price" ?uality" after sales ser!ices" marketing strategy of the company leads to the increase of sales. As per the sur!ey of the industry" will exceed #+ otorcycle sales will perform positi!ely in future" which illion units by *+#*>#-.

M#".! S1#"! *2 T1"!! W1!!-!" I()$3 "50

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This research analy2es the Indian market for

otorcycles" 1cooters 5

opeds in

Thousand :nits by the following product segmentsG

otorcycles" 1cooters" and

opeds. Annual estimates and forecasts are pro!ided for the period *++C through *+#3. The research analysis shows that 8ajaj auto dominates the three wheelers market share /3$.E)0 followed by the Piaggio Hehicles. Thus the potential for the competitors is there in the three wheelers automobile segment. They need to concentrate on the marketing and pricing strategy according to the geographical segment of the country.

K!5 P-#5!"3 P!"2*"+#(/!0 Tata Motors: arket 1hareG 6ommercial Hehicles E-.%()" Passenger Hehicles #E.(3). Tata otors @imited is India;s largest automobile company" with consolidated re!enues of :1D #( billion in *++$>+%. It is the leader in commercial !ehicles and among the top three in passenger !ehicles. Tata otors has winning products in the compact" midsi2e car and utility !ehicle segments. The company is the worldKs fourth largest truck manufacturer" and the worldKs second largest bus manufacturer with o!er *("+++ employees. 1ince first rolled out in #%3(" Tata otors as has produced and sold o!er ( million !ehicles in India. Tata otors is the first company from IndiaKs engineering sector to be listed in the =ew Dork 1tock 4xchange /1eptember *++(0" has also emerged as an international automobile company. Through subsidiaries and associate companies" Tata

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otors has operations in the :nited Ringdom" 1outh Rorea" Thailand and 1pain. Among them is Saguar @and 7o!er" a business comprising the two 8ritish brands which was ac?uired in *++$. In *++(" it ac?uired the Daewoo 6ommercial Hehicles 6ompany" 1outh RoreaKs second largest truck maker. The rechristened Tata Daewoo 6ommercial Hehicles 6ompany has launched se!eral new products in the Rorean market" while also exporting these products to se!eral international markets. Today two>thirds of hea!y commercial !ehicle exports out of 1outh Rorea are from Tata Daewoo. In *++3" Tata otors ac?uired a *#) stake in Fispano 6arrocera" a reputed 1panish bus and coach manufacturer" and subse?uently the remaining stake in *++%. FispanoKs presence is being expanded in other markets.

In *++E" Tata

otors formed a joint !enture with the 8ra2il>based

arcopolo" a

global leader in body>building for buses and coaches to manufacture fully>built buses and coaches for India and select international markets. In *++E" Tata otors entered into joint !enture with Thonburi Automoti!e Assembly Plant 6ompany of Thailand to manufacture and market the companyKs pickup !ehicles in Thailand. The new plant of Tata *++$. Tata otors /Thailand0 has begun production of the Tenon pickup truck" with the Tenon ha!ing been launched in Thailand in otors is also expanding its international footprint by franchises and joint !entures assembly operations in Renya" 8angladesh" :kraine" 7ussia" 1enegal and 1outh Africa. 'ith o!er -"+++ engineers and scientists" the companyKs 4ngineering 7esearch 6entre" established in #%EE" has enabled pioneering technologies and products. The company today has 75D centres in Pune" Samshedpur" @ucknow" Dharwad in India" and in 1outh Rorea" 1pain" and the :R. It was Tata otors" which de!eloped the first indigenously de!eloped

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@ight 6ommercial Hehicle" IndiaKs first 1ports :tility Hehicle and" in #%%$" the Tata Indica" IndiaKs first fully indigenous passenger car. 'ithin two years of launch" Tata Indica became IndiaKs largest selling car in its segment. In *++3" Tata otors created a new segment by launching the Tata Ace" IndiaKs first indigenously de!eloped mini>truck. In Sanuary *++$" Tata otors un!eiled its PeopleKs 6ar" the Tata =ano" and a

de!elopment which signifies a first for the global automobile industry. =ano brings the comfort and safety of a car within the reach of thousands of families. The standard !ersion has been priced at :1D *"*++ or 7s.#++" +++ /excluding HAT and transportation cost0. The Tata =ano has been subse?uently launched as planned" in India in arch *++%.

M#"$ i S$?$.i I()i#0 arket 1hareG Passenger Hehicles (E.+C). subsidiary of 1u2uki aruti 1u2uki India @imited" a

otor 6orporation of Sapan" is IndiaKs largest passenger car aruti>$++ and Alto" to stylish aruti 1u2uki India

company" accounting for o!er (3) of the domestic car market. The company offers a complete range of cars from entry le!el hatchback 7it2" A star" 1wift" 'agon>7" 4stillo and sedans DUire" 1T( and 1ports :tility !ehicle Grand Hitara 1ince inception in #%$-" has produced and sold o!er C.3 million !ehicles in India and exported o!er 3++"+++ units to 4urope and other countries. The company;s re!enue for the fiscal *++$>*++% stood o!er :1D ( billion and Profits After Tax at o!er :1D *(- million.

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"yundai Motor #ndia: arket 1hareG Passenger Hehicles #(.#3). Fyundai otor India @imited is a wholly owned subsidiary of world;s fifth largest automobile company" Fyundai otor 6ompany" 1outh Rorea" and is the largest passenger car exporter. Fyundai otor presently markets (% !ariants of passenger cars across segments. These includes the 1antro in the 8 segment" the i#+" the premium hatchback i*+ in the 8V segment" the Accent and the Herna in the 6 segment" the 1onata Transform in the 4 segment. Fyundai otor" continuing its tradition of being the fastest growing passenger car manufacturer" registered total sales of 33%"$$+ !ehicles in the year *++%" an increase of #(.() o!er *++$. In the domestic market it clocked a growth of #$.#) as compared to *++$ with *$%"$E- units" while o!erseas sales grew by #+.C)" with export of *C+"+#C units. Fyundai otor currently exports cars to more than ##+ countries across 4uropean :nion" Africa" iddle 4ast" @atin America and Asia. It has been the number one exporter of passenger car of the country for the sixth year in a row. In a little o!er a decade since Fyundai has been present in India" it has become the leading exporter of passenger cars with a market share of EE) of the total exports of passenger cars from India" making it a significant contributor to the Indian automobile industry. In *++%" in spite of a global slowdown" Fyundai otor India;s exports grew by #+.C). In *+#+ Fyundai plans to add #+ new markets with Australia being the latest entrant to the list. The first shipment to Australia is of 3++ units of the i*+ and the total i*+ exports to Australia are expected to be in the region of #3"+++ per annum.

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Mahindra $ Mahindra: arket 1hareG 6ommercial Hehicles #+.+#)" Passenger Hehicles E.3+)" Three 'heelers #.-#) ahindra 5 ahindra is mainly engaged in the ulti :tility Hehicle and Three 'heeler segments directly. The company competes in the @ight 6ommercial Hehicle segment through its joint !enture subsidiary ahindra =a!istar Automoti!es @imited and in the passenger car segment through another joint !enture subsidiary **+"*#- !ehicles /including (("3-- three wheelers" $"E+- @ight 6ommercial Hehicles through ahindra =a!istar Automoti!es and #-"(*- cars through recording a growth of +.E) o!er the pre!ious year. ahindra 7enault0" ahindra 7enault. In the year *++%" on the domestic sales front" the 6ompany along with its subsidiaries sold a total of

"ero "onda Motors: arket 1hareG Two 'heelers (#.-3). Fero Fonda has been the largest two wheeler company in the world for eight consecuti!e years. The company crossed the #3 million unit milestone o!er a *3 year span. Fero Fonda sold more two wheelers than the second" third and fourth placed twowheeler companies put together. As one of the worldKs technology leaders in the automoti!e sector" Fonda has been able to consistently pro!ide technical know>how" design specifications and 75D inno!ations. This has led to the de!elopment of world class" !alue > for> money motorcycles and scooters for the Indian market. <n its part" the Fero Group has took the responsibility of creating world>class

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manufacturing facilities with robust processes" building the supply chain" setting up an extensi!e distribution networks and pro!iding insights into the mind of the Indian customer. 1ince both partners continue to focus on their respecti!e strengths" they ha!e been able to complement each other. In the process" Fero Fonda is recogni2ed today as one of the most successful joint !entures in the world. It is therefore no surprise that there are more Fero Fonda bikes on this countryKs roads than the total population of some 4uropean countries.

%ajaj &uto: arket 1hareG Two 'heelers *E.C+)" Three 'heelers 3$.E+). 8ajaj Auto is ranked as theworldKs fourth largest two and three wheeler manufacturer and the 8ajaj brand is well>known across se!eral countries in @atin America" Africa" iddle 4ast" 1outh and 1outh 4ast Asia. Despite falling demand in the motorcycle segment" the company has succeeded in maintaining an operating 48ITDA /earnings before interest" taxes" depreciation and amortisation0 margin of #-.E) of net sales and other operating income. .rom #.EE million motorcycles in *++C>*++$" the company;s domestic sales fell by *-) to #.*$ million units in *++$>*++%. 8ajaj Auto is the country;s largest exporter of two> and three> wheelers. During *++$>*++%" 8ajaj Auto;s international sales achie!ed an all> time high of CC*"3#% units of two and three wheelers" representing a growth of *3) o!er the pre!ious year. The growth was dri!en by the export of two> wheelers" which increased by -#) o!er *++C>*++$ to achie!e sales of E--"(Eunits in *++$>*++%. The company expanded its footprint in Africa and iddle 4ast" where the region;s share rose from -+) of the export business in *++C>

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*++$ to (-) in *++$>*++%. The total !alue of exports was :1D 3*$ million" representing a growth of *%).

5., COMPANY ANALYSIS 7Ma*!"& S!8!9& : TATA M#"#*), The company analysis shows the long term strengh of the company that what is the financial Position of the company in the market where it stand among its competitors and who are the key dri!ers of the company" what is the future plans of the company" what are the policies of go!ernment towards the company and how the stake of the company di!ested among different groups of people. P"*2i-! *2 M#"$ i S$?$.i aruti 1u2uki is one of IndiaKs leading automobile manufacturers and the market leader in the car segment" both in terms of !olume of !ehicles sold and re!enue earned. :ntil recently" #$.*$) of the company was owned by the Indian go!ernment" and 3(.*) by 1u2uki of Sapan. As of no longer has stake in aruti :dyog. ay #+" *++C" Go!t. of India sold its complete share to Indian financial institutions. 'ith this" Go!t. of India

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The turno!er for the fiscal *++$>+% stood at 7s. *+-"3$-

illion 5 Profit After

Tax at 7s. #*"#$Cml. aruti 1u2uki India @td. has sold a total of $("$+$ !ehicles in August *++%" an increase of (#.E)" compared to 3%"%+$ !ehicles in the same period of *++$. The companyKs domestic sales in August *++% increased *%.-) to E%"%E# !ehicles" compared to 3("##- !ehicles in August *++$. Total passenger car sales in August *++% increased -+.3) to E%"E*% units" compared to 3-"-3# units in August *++$ The companyKs exports increased #3E.*) to #("$(C units" compared to 3"C%3 units in August *++$.

P"*2i-! *2 T# # M* *"3 Tata otors @imited is India;s largest automobile company" reported gross

re!enue /stand>alone0 of 7s.*$3%%.*C crores /*++C>+$G 7s.--+%-.%- crores0 in *++$>+%" a year marked by se!ere demand contraction in the automobile industry. 7e!enues /net of excise0 for the year were 7s. *3EE+.C% crores compared to 7s.*$C-%.(# crores in *++C>+$" a decline of #+.C). The Profit before Tax was 7s.#+#-.CE crores compared to 7s.*3CE.(C crores in *++C>+$" a decline of E+.C). The Profit after Tax for the year was 7s.#++#.*E crores compared to 7s.*+*$.%* crores" a decline of 3+.C). It is the leader in commercial !ehicles in each segment" and among the top three in passenger !ehicles with winning products in the compact" midsi2e car and utility !ehicle segments. The company is the world;s fourth largest truck manufacturer" and the world;s second largest bus manufacturer.

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RATIO ANALYSIS OF TATA MOTORS AND MARUTI SUZUKI

EPS ; N(" &n5#$(- D&0& (n ) #n P*(.(**( )"#59 EPS mea!ure! the profit avai ab e to the e9uity !hareho $er! per !hare: that i!: the amount that they can get on every !hare he $. 3i 2,,* both the companie! ha$ a ri!ing EPS but in 2,,+ both of them fa an$ the effect more on 3ata motor! a! they bought t;o bran$! .or$ 2otor! an$ fa in !a e! re!u t! in o; EPS. &ut a! tren$ !ho;! 3'3' motor! have potentia !o an !hareho $er expect better in future.

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NET PROFIT 3he tren$ !ho;! that 3ata8! net profit margin i! 9uite !tab e unti it fa ! to 3.)) in 2,,+. <hi e the net profit of 6n$ia8! no.1 car manufacturer 2aruti Su=u>i !ho;! a negative tren$ from 2,,) on;ar$!. &ut the future pro!pect for both the company8! profit i! higher. Profit margin! come $o;n a! rece!!ion hit! economy ba$ y hence !a e! get re$uce$ an$ co!t get increa!e$ very much.

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<UIC= RATIO 3he 9uic> ratio i! a very !tringent mea!ure of !o vency. ' genera ru e of thumb !ugge!t! that the 9uic> ratio !hou $ be aroun$ 1. 2aruti i! a ;ay! !ho;ing a po!itive tren$ a! it! ratio i! a ;ay! greater than 1 except in 2,,*: ;hi e 3'3' motor! ;a! $oing goo$ ti 2,,): but the performance $ecrea!e$ from 2,,* on;ar$! a! !hortage of ca!h ;a! there an$ current iabi itie! an$ provi!ion increa!e$ by #!*,,Cr.

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In5#$( S"a"($(n") Ma*!"& S!8!9&

TATA M#"#*)

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>., TEC?NICAL ANALYSIS 3echnica ana y!t! trac> price movement! an$ tra$ing vo ume! in variou! !ecuritie! to i$entify pattern! in the price behavior of particu ar !toc>!: mutua fun$!: commo$itie!: or option! in !pecific mar>et !ector! or in the overa financia mar>et!.3he goa i! to pre$ict probab e: often !hort?term: price change! in the inve!tment! that they !tu$y: ;hich a o;! them to choo!e an appropriate tra$ing !trategy. .o o;ing i! the 3echnica 'na y!i! of 3'3' 2otor! " 2aruti Su=u>i to un$er!tan$ their pattern an$ behavior of !hare price! in the mar>et.

Resistance & Support Leve 3hi! 3echnica too he p! in te ing that ;hat ;ou $ be the price ban$ of !hare price in ;hich it move in near future on the ba!i! of pa!t high an$ o; eve ! ma$e by a particu ar !crip. #e!i!tance 4eve !ho;! the price above ;hich !hare price ;i not move in norma ca!e on the other han$ Support eve !ho;! the minimum !hare price ;hich can be touche$ by !hare or cro!!ing of thi! !hare ;i not be there in norma mar>et

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con$ition .o o;ing i! the #e!i!tance " Support eve of 2aruti Su=u>i " 3'3' 2otor! for the perio$ of 2 month!@

#e!i! tance 4eve #!.142% Support eve #S.12)% approx.

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'! it i! !een in the pa!t 4 month! 3'3' !hare price move$ up an$ it >eep! ma>ing on ne; eve !o perfect re!i!tance eve for thi! !hare i! not ea!y to pre$ict a! performance of thi! !hare i! very goo$ compare to a !crip! of thi! !egment. 3he above ban$ of re!i!tance an$ !upport eve !ho;! that the price of !hare! ;i move in bet;een thi! range on y unti un e!! any ;rong reaction came out in economy or ;hen any correction ta>e! p ace the price! ;i move in bet;een thi! ban$ on y.
2. S&$/'( M#0&n- A0(*a-(

750 /(*&# ),-M( &!$ T(*$

TATA MOTORS

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MARUTI SU@U=I

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2oving 'verage i! an in$icator that !ho;! the average va ue of a !ecurityA! price over a perio$ of time. 3he metho$ of interpreting a moving average i! to compare the re ation!hip bet;een a moving average of the !ecurityA! price ;ith the !ecurityA! price it!e f. 6n above figure ;e have compare the !hare price of 3ata 2otor an$ 2aruti ;ith moving average of %, perio$ of 3ata 2otor!: 2aruti re!pective y. ' buy !igna i! generate$ ;hen the !ecurityA! price ri!e! above it! moving average an$ a !e !igna i! generate$ ;hen the !ecurityA! price fa ! be o; it! moving average. 6t i! $e!igne$ to >eep you in ine ;ith the !ecurityA! price tren$ by buying !hort y after the !ecurityA! price bottom! an$ !e ing !hort y after it

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!top!. 5e o; area in the graph in$icate! buy !igna an$ Breen area in$icate! !e !igna . 6n the near future both the companie! !ho; buy !igna a! their !ecurity price! ri!e! above it! moving average. 6t !ho;! that both companie! are performing better: !o in$u!try a! ;ho e i! a !o performing out!tan$ing. So >eeping a ho $ po!ition for the companie! ;ou $ be profitab e in future.
TATA MOTORS MACD

'bove graph !ho;! the 2'C1 of 3'3' motor! for the perio$ of ( month!. 3he 2'C1 i! the $ifference bet;een a 2(?$ay an$ 12? $ay exponentia moving average. ' +?$ay exponentia moving average7E2'-: ca e$ the C!igna C 7or CtriggerC- ine i! p otte$ on top of the 2'C1 to !ho; buyD!e opportunitie!. Eere are three popu ar ;ay! to u!e the 2'C1@ cro!!over!: overboughtDover!o $: an$ $ivergence!.

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Cro!!over!@ 5e o; area !ho;! that there ;a! !ituation ;hen !e po!ition occurre$ in the en$ of month Fune ti mi$ of Fu y a! 2'C1 curve be o; E2' or Signa ine !ho;! a !e !ituation other;i!e ;e !a; a buy po!ition of 3'3' 2otor! mo!t of the time 4ight Breen area !ho;! that inve!tor ;ant to buy an$ ;ant to be in ho $ po!ition. 3he tren$ of buying i! !eem! to be over here or in coming fe; $ay! an$ a !e ing or boo>ing of profit cou $ be !een hence 2'C1 ine cou $ fa be o; E2' in coming time.
MARUTI SU@U=I MACD

C*#))#0(*A 3he above graph !ho;! the 2'C1 of 2aruti Su=u>i: here 5e o; area !ho;! the !e ing po!ition a! 2'C1 ine i! be o; E2' ine the 4ight Breen area !ho;! the buy po!ition ;hich occur a!t time in the en$ of Fu y but no; buy po!ition for

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2aruti i! create$ a! E2' or !igna ine !eem! to be be o; 2'C1 ine an$ it ;i probab y continue in near future.

CO0C4/S6O0
6n$ian 'utomobi e 6n$u!try i! in the gro;th pha!e an$ the expecte$ gro;th rate i! +?1,G for .52,,+?1, compare! to a!t year gro;th rate ;hich ;a! ju!t ,.)G an$ the above fact! an$ figure! in our !tu$y a !o !upport thi! truth. 6n$ian 'utomobi e ha! a ot of !cope for both t;o ;hee er! an$ four ;hee er! $ue to $eve opment in infra!tructure of the country an$ e!pecia y the rura !ector in ;hich $eman$ of t;o ;hee er ha! increa!e$ even in rece!!ion. 'ccor$ing to 6n$ian Stati!tica Organi=ation the per capita income 7#!.3*,,,- i! increa!ing an$ nationa income at the rate of 14.4G ;hich !ho;! potentia to buy vehic e in auto in$u!try. 3he 6n$ian auto mar>et i! !ti untappe$ the majority of the peop e in country $on8t o;n a four ;hee er an$ a the major auto companie! are trying to increa!e their !a e! by !evera move!. 4i>e 3'3' ha! aunch 0'0O the peop e8! car an$ no; 3'3' motor! i! a !o p anning to come out ;ith an e ectric car a!

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;e a! hybri$ car: moreover in t;o ;hee er !egment many companie! i>e 2ahin$ra an$ 2ahin$ra gro; even more than expectation!. .rom the 3echnica 'na y!i! of both companie! ;e come to >no; that the !hare price of 2aruti ;i move in the ban$ of #!.12)% to #!.142% an$ that of 3'3' 2otor! ;i move in the range of #!. 43, to #!. 4+, if certain correction ma$e in the mar>et &y ana y=ing the current tren$ of 6n$ian Economy an$ 'utomobi e 6n$u!try ;e can !ay that being a $eve oping economy there i! ot of !cope for gro;th an$ thi! in$u!try !ti have to cro!! many eve ! !o there i! huge opportunitie! to inve!t in an$ thi! i! proving a! more an$ more foreign Companie! !etting up there venture! in 6n$ia.

#ecommen$ation!
&y ana y=ing the in$u!try on variou! parameter! ;ith the he p of imp ementing .un$amenta an$ 3echnica too ! ;e came to >no; that thi! in$u!try ha! a ot of potentia to gro; in future3he return! ;hich came out of thi! in$u!try ;ere very impre!!ive recent y: a! if ;e ta>e an examp e of 3'3' motor! it give! approx +,G return in a perio$ of ju!t 3 month! ;hi e 2aruti Su=u>i !ho;! a ;ay! a buy an$ ho $ po!ition becau!e there i! po!!ibi ity of gro;th in future: !ame !ituation i! in t;o

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;hee er !egment ;ith mar>et ea$er Eero?Eon$a a $ebt free company a !o have bright future ahea$. 3he number! ;hich came out in the en$ of financia year 2,,+ prove that even in the perio$ of rece!!ion the overa !a e! ;ent up i! !ufficient to !upport to thi! fact. 3hrough 3echnica ana y!i! of 3'3' 2otor! an$ 2aruti it can be recommen$e$ that for no; 2aruti !hare price !ho;! that it8! a time to ho $ the po!ition or buy more !hare! a! there i! !cope in further ri!e in !hare price! unti an$ un e!! any negative reaction or !entiment! come! in the Economy. 6nve!ting in 2aruti Su=u>i for ong time cou $ be a goo$ option ;herea! in 3'3' motor! there i! a chance of getting correction: a! it a rea$y ;ent on high !i$e in a very !hort perio$ of time !o ho $ing the !hare! for ong time cou $ be a ;rong !tep: !o at thi! point of time tho!e ;ho inve!te$ ear ier can boo> their profit or ne; inve!tor! can buy no; an$ !e ;ith in !hort perio$ of time by earning profit in !hort perio$ of time.

&6&46OB#'PE5
Boog e !earch engine 111.%)(&n &a.5#$

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111.-##-'(.&nan5(.5#$ 111.+a2##.&nan5(.5#$ 111.-##-'(.5#.&n 111.$#n(+5#n"*#'.5#$ 111.1#*' .a5".5#$ 111.*%&.#*-.&n FDI )"a"&)"&5 -#0(*n$(n" #. In &a E5#n#$&5 T&$() G##-'( )52#'a*