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By: GROUP 7 Abhishek Kumar Arijeet Guha Kiran Gupta K. Bharat Shaivya Gupta Syed Arshed
What is an automobile?
An automobile is a wheeled motor vehicle used
for transporting passengers, which also carries its own engine or motor.
Industry Structure
Industry Environment
PEST ANALYSIS of Industry Environment
Political factors
Reduction in Import Duties Auto Policy Government regulation and support Fiscal Policy Encouraging Foreign Direct Investment
Economical factors
The industry is in a slowdown phase due to factors like: high interest rates rising levels of inflation lack of easy finance global oil prices raw material prices have increased by about 50% for some players and doubled for the less fortunate ones.
Social factors
Literacy levels
Changing income levels Changing family structure Population growth in India Use of cars as cabs Change in the lifestyle of Indians Increased youth population Increased concern for social status and standard of living Growth in urbanization Low interest rates translating to low Financing ans acquisition costs hence greater affordability 85% of cars financed in India
Technological factors
Fuel Efficiency Common Rail Diesel technology Variable Valve Timing Hybrid Cars Fuel efficient Low emission Quietness Concept Cars Bio fuel for commercial utilization
Safety Technology Wheel lock up Additional breaking force Air Bag Front Side Rear end collision Whiplash Injury lessening Vehicle stability control
10,00,000th car, the feat which was achieved by the firm in just over 10 years. Hyundai Motors is the largest passenger car exporter and the second largest car manufacturer in the country. General Motors has announced its plans to export not less than 50,000 cars made in India by the year 2011. Ford Motors is to setup a manufacturing facility costing about US$500 million in India with an annual capacity of 250,000 cars. The firm has stated that the facility will play a major part in its strategic plan to make India a hub for its global production business. Fiat motors has stated that it will source a big volume of auto components from India worth about US$1 billion. In the year 2009, India overtook China by emerging as the fourth largest exporter of cars in Asia.
System Increasing Road Development Increasing disposable Income with the service sector Cheaper ( declining interest rates) & easier finance Schemes Replacement of aging four wheelers Graduating from two wheelers to four wheelers Increasing dispensable ncome of rural agri sector Growing Concept of Second Vehicle in Urban
manufacturing, restricted expansion, import restrictions, limited players(Telco(TATA), Ashok Leyland, M&M, HM, BAJAJ auto, Premier automobiles) 1985-95:liberalisation of economy in 1991 led to the entry of Maruti Udyog in passenger car segment, Japanese manufacturers in two wheeler and LCV segments. 1995-2000: several international players entered, advanced tech introduced, environmental safety improved 2000-2010: landmark policy changes like removal of
launches Nano for Rupees One Lakh. Its sticker price of about $2,500 would make it the world's cheapest car. India is projected to have the largest number of cars in the world 611 million to be precise by 2050. At present, there are 30 cars for every thousand people in China, which is far below the world average of 120 cars. Chinese own close to 22 million at the end of 2006, which makes China the second largest auto market in the world. According to Goldman Sachs, this means every
52.16 35.17
Maruthi Suzuki Hyundai Motors Honda Motors Ford India Hindustan Motors
78.8
76.2
21.49 Hero Honda TVS Motors Majestic Auto Kinetic Engineering 77.62
19.17%
SWOT Analysis
Large and growing domestic demand
Changing lifestyle
Driving demand for new segments Strategic Alliances Freedom for ADRs, GDRs
Threat
Competition