Where it has been

Where its going

Pre 1983 1983-1993 1993-2007
Closed market

Growth of market
limited by supply

Outdated models

Players
Hindustan Motors
Premier
Telco
Ashok Leyland
Mahindra &
Mahindra
Suzuki, Japan and GOI joint
venture to form Maruti
Udyog

Joint ventures with
companies in commercial
vehicles and components

Players
Maruti Udyog
Hindustan Motors
Premier
Telco
Ashok Leyland
Mahindra & Mahindra
Delicensing of sector in 1993

Global major OEMs start
assembly in India (Toyota, GM,
Ford, Honda, Hyundai)

Imports allowed from April
2001; alignment of duty on
components and parts to
ASEAN levels

Implementation of VAT
Major Multi-national companies

Major Indian Companies

ARAI
Provide research & development, testing,
certification and calibration support for developing
safe, reliable and eco-friendly vehicles / components

SIAM
Apex Industry body representing 44 leading
vehicle and vehicular engine manufacturers in
India.
Future Prospects Of Indian
Automobile Industry
SKODA AUTO
SKODA Auto is planning to make India its regional
manufacturing hub.
Company plans to start to manufacturing in India from
2010 with a target of 50000 cars a year.
TATA MOTORS
TATA motors plan to manufacture 80000 units of its NANO
car in Pantnagar plant in UTTARAKHAND.
The Mother facility in SANAND, Gujarat may be fully
functional by 2010-11 with a capacity of 1.5 lakhs/year



RENAULT
RENAULT has entered into partnership with NISSAN Motors
to setup a manufacturing unit near Chennai.
Project costs around $ 901.35 millions and having Capacity
of 4lakh cars /year

HONDA MOTORS
Investing US $ 250 million in a new plant in Rajasthan
with capacity of 60,000 car per year



TOYOTA KIRLOSKAR
Toyota- Kirloskar motors planning to launch its own small
car in India by 2011


GENERAL MOTORS
To manufacture small cars at its Talegaon, Maharashtra
plant with 80% local input.







Rising industrial and agricultural output
Favorable demographic distribution with rising
working population and middle class
Urbanization
Greater affordability of vehicles
Easy finance schemes

The Indian Auto Components Market
Original Equipment
Manufacturers (OEMs)

Replacement Parts Production
and Distribution : e.g. Air filters,
oil filers and replacement lights

Rubber Fabrication : tyres, hoses,
belts etc.

Estimated component market
size is US$ 6.7 bn





The Indian Auto Components Market

Composition Of Indian Auto Exports

PEST ANALYSIS OF INDIAN
AUTOMOBILE INDUSTRY
Indian govt. launched AUTO POLICY for its Self
Sustained growth.

Allowed Foreign Equity Investment up to 100%

Formulation of FUEL POLICY

Promotes for Vehicles propelled by AES



Weighted Tax Deductions up to 150% for
in house R&D activities.
Reduced Interest rates for export
financing.
Economy has grown over 8.5% per
annum for last 5 years.
Manufacturing sector has grown 8-10 %
for last few years.


Changed Lifestyle leads to Increased demand

The Average family size is 4 which makes it favorable to
buy a four wheeler.

4
th
largest economy on PURCHASING PARITY INDEX

Preference for small and compact car

Preference for Fuel efficient cars with low maintenance


More & more emphasis on R&D.
Govt .is promoting NATRIP(National
Automotive testing and R&D Infrastructure
Project) to support the growth of Auto
industry in India.
Customized solutions (Designer cars ets)can
be provided with proliferation of technology.
With Entry of global brands both product and
production process has been improved.

STRENGTHS
Automobile industry is established and
Evergreen industry.

India is the strongest player in small car segment

Indian Companies are best cost innovators

Assembly line manufacturing, and JIT inventory
management, the automotive industry has been able to
achieve significant gains in productivity.

Exceptional human resource base
India lack proper infrastructural facilities

Poor after sales service

the automotive industry lags behind other
sectors such as IT and financial services in
management training, reward
and retention.

Small cars is a future

Green cars

Auto financing

Royalty through Patents





Global Crisis

Companies not focusing on R & D are under
great risk

High competition from foreign players

Lack of technology for Indian companies

Due to liquidity crunch buyers
stayed away

Mahindra & Mahindra
recorded a fall of about 40%,
Tata Motors showed 12%
decline in the car sales.

Resulted into less production

Job Cuts



Impact Of Global Recession
Founded: 1981 (as Maruti Udyog Limited)

Headquarters: Delhi, India

Key people: Mr. Shinzo Nakanishi, Managing Director and CEO

Revenue: US$4.8 billion (2009)

It offers 14 brands and over 150 variants
Sales and service network

Maruti Insurance

Maruti TrueValue

Maruti Driving School
Founded: 6 May 1996
Headquarters: Chennai, India
Key people: Mr. H.W. Park, MD
The second largest car manufacturer in India
HMIL presently markets 6 models of passenger cars across
segments.
HMIL has set up a modern research and development facility
in the cyber city of Hyderabad.


Founded in 1945 by JRD Tata
Headquarters: Mumbai, Maharashtra
Revenue: $20 billion (2009)
Key people: Ratan Tata, Chairman; Ravi Kant,
Vice Chairman; Carl Peter Forster, CEO
Tata Motors is a dual-listed company


Tata Indica

Tata Nano

Compressed Air Car

Electric Vehicles
CAREER OPTIONS AFTER MBA
IN
AUTOMOBILE SECTOR
CHENNAI IS CALLED AS DETROIT OF INDIA
Stream Designations Offered
HR HR Manager, Personnel Manager,
Compensation Analyst.

Marketing Sales Manager, Marketing
Manager, Product manager

Operations Production Manager, Purchase
Manager, Inventory Manager

Finance Financial Analyst, Risk Manager.
MUMBAI: MAHINDRA AND MHINDRA.

PUNE: TATA MOTORS, TELCO, FORCE
MOTORS,LUCAS TVS, MAHINDRA &
MAHINDRA,VOLKSWAGON, GM,DAIMLER
CHRYSLER,FIAT INDIA,BAJAJ AUTO,EICHER,
KINETIC, BAJAJ TEMPO,HERO HONDA MOTORS
LTD,PIAGGIO,PREMIER Ltd,
Besides This Many Auto Component Industries
are in Pune.