AUTOMOBILE INDUSTRY ANALYSIS

MURALS

AUTO INDUSTRY - INDIA

the Indian automobile sector is one of its

most vibrant industries. The industry

accounts for 22 per cent of the country's
manufacturing gross domestic product
(GDP). It comprises passenger cars, twowheelers, three-wheelers and commercial
vehicles and is currently the seventhlargest in the world with an average annual
production of 17.5 million vehicles, of which
2.3 million are exported.

DOMESTIC CAR SALES

Increase by15% this year
1.33 lakhs unit last year
1.54 lakhs units this year

Commercial vehicles
Down by 6%
16955 last year
15468 this year

3 wheelers
23% rise
52543 this year
42541 last year

Motor cycles
9.1 lakh vehicles this year
7.95 lakh units last year

scooters
30% increase in sales
3.69 lakh vehicles this year
2.83 lakh vehicles last year

Over all sales in industry

18% increase compared with last year
16.60 lakhs units this year
14.12 lakhs units last year

production
The industry produced a total 1,943,134

vehicles including passenger vehicles,

commercial vehicles, three wheelers and
two wheelers in August 2014 as against
1,691,699 in August 2013, registering a
growth of 14.86 percent over the same
month last year

exports
In April-August 2014, overall automobile

exports grew by 21.30 percent over the

same period last year. Passenger Vehicles,
Commercial Vehicles, Three Wheelers and
Two Wheelers grew by 0.17 percent, 16.51
percent, 14.53 percent and 29.16 percent
respectively during April-August 2014 over
the same period last year.

Installed capacity

Two wheeler production

Market share by volume

Maximum sales
Honda Motorcycle & Scooter India (HMSI) has

notched the maximum gains in the first quarter

(April-June 2014) of fiscal year 2014-15.
Recently released SIAM sales numbers for Q1
FY2014-15 reveal that the domestic Indian twowheeler industry has grown by a healthy 13.70
percent, selling a total of 3,968,967 units.
The fiscals first quarter sees some shuffling of
positions among the top four players Hero
MotoCorp, HMSI, Bajaj Auto and TVS Motor
Company, where Hero and Bajaj lose some market
share and the other players gain some crucial
percentage points.

Hero
Heros market share for Q1 FY2014-15

stands at 42.29 percent as against 43.77

percent a year ago. Interestingly, Heros
sales for Q1 this year grew by 9.85 percent
lost out on market share. The company sold
16,78,476 units between April-June 2014 as
against 15,27,980 units during April-June
2013. Heros aggressive new product
development will largely define its growth
and market share retention over the next
two years. -

Honda motor cycle scooter of

India
Standing out was HMSI, which primarily ate

into the market shares of industry leader

Hero MotoCorp and also Bajaj Auto. Honda
registered domestic sales of 953,501 units
during Q1, up by an impressive 34.15
percent over 710,774 units sold during Q1
of the last fiscal. With this, HMSIs market
share has jumped up by 3.66 percentage
points to 24.02 percent (Q1 FY2013-14:
20.36 percent). - See more at:

HMSI TARGETS AND

AMBITIONS
Chasing its ambitious sales target of 45 lakh units

for the ongoing fiscal, the company will now focus

on more than quadrupling the Q1 sales numbers in
the next three quarters. To do so, besides
penetrating deeper into the countrys rural pockets,
HMSI plans to clearly depend on the newly launched
110cc mass commuter motorcycle, CD 110 Dream,
also the most affordable Honda in India ever.
Another project expected to bolster its (urban) sales
in the near future will the upcoming 160cc premium
commuter motorcycle, which will be squarely
targeted at Bajajs Pulsar 150, Yamahas FZ-S and
FZ16, and TVS Apache RTR 160 bikes. -

FUTURE TECHNOLOGIES
1) Connected Cars
2) Intelligent Public Transportation
3) Green Cars
4) Cloud & Big Data

CHALLENGES IN AUTO
INDUSTRY
Smaller engines with greater power, make

the engines and ultimately the cars too hot.

Replacing steel with plastic will make cars
lighter and hence more fuel efficient
FUEL EFFICIENT CARS

VOLKSWAGEN POOR
SHOW
VWs sales in Brazil during January-June fell
18.7 per cent to 301,000 units from
370,000 units in 2013.
Russia was down 8.4 per cent to 143,000
units from 156,000 units.
India witnessed the steepest fall with
numbers crashing by nearly 33 per cent to
34,000 units from 50,000 units in the first
half of 2013

CHINA MARKET DOING WELL

China where VWs sales soared to 1.82

million vehicles from 1.54 million, a jump of

17.5 per cent. Thanks to Chinas incredible
showing, the groups volumes in the BRIC
economies were up 8.1 per cent to 2.29
million units in the first half of this year
from 2.12 million in 2013

INVESTMENTS AND MARKET

SHARE
It has set aside a staggering investment of

18.2 billion in China over the next four

years which will see its group sales go up to
four million vehicles. VW is already the
market leader in the country with a 21 per
cent market share and a host of joint
ventures with local brands like FAW and
SAIC Motor Corp

IS AUTO INDUSTRY DOING

GOOD
ITS NOT DOING GOOD
THE SALES OF new cars of about 2.4 million
THIS SEGMENT SOLD 2.8MILLION CARS
THIS SEGMENT IN EUROPE SELLS 3:1
IN INDIA IT SELLS 1:2

SEGMENT DETAILS
predominantly a domain of the unorganized

sector, is slowly getting organized. Thought

it is still small as a part of the overall
market, trends point towards growth

COMPANY SOLD THIS

SEGMENT
57,000 cars through dealers
and about 70,000 cars sales through

business to business platform.

Indian Blue Book NEW

PLATFORM BY THE COMPANY
pricing guide that incorporates transaction

data.
AVERAGE CAR PRICE IN THIS SEGMENT IS 4
LAKHS
BUYERS ARE IN AGE GROUP OF 30 - 35

KEY SUCCESS FACTORS

IDENTIFY KSF

CUSTOMER SEGMENTATION
COMPARE COMPANY PERFORMANCE
IMPACT ANALYSIS OF RESULTS

IDENTIFY CSF
IDENTIFY CHALLENGES
CREATE STRATEGIC PLAN
COMPARE SERVICE WITH COMPETITORS
EXAMINE COMPETITION
ADJUST PRODUCTION STRATEGY

IMPLEMENT CSF
WHAT DO CUSTOMERS WANT
HOW DOES THE FIRM SURVIVE

COMPETITION
TECHNOLOGY RELATED CSF
MANUFACTURING
DISTRIBUTION
MARKETING
SKILL RELATED
ORGANIZATIONAL CAPABILITIES