Presentation on Presentation on Automobile IndustryAutomobile IndustryGroup 3Chitkara Business School

Jimmy NarangSriparnikaMadhav SoodPrerna SanotraSahil Sharma

Automobile IndustryAutomobile Industry

Power Stroke from 1897 and so on…….

HistoryHistoryThe first car ran on India's roads in

1897Embryonic automotive industry

emerged in India in the 1940s.Mahindra & Mahindra

under license from Willys branched out into the manufacture of light commercial vehicles (LCVs) and agricultural tractors

EvolutionEvolutionThe Independence marked the

evolution of Indian automotive industry

The growth was relatively slow due to nationalisation and the license raj which hampered the Indian private sector

Maruti Udyog – Japanese & Indian venture firmed the sector

Pillars to Industrial Growth Pillars to Industrial Growth The economic liberalisation in 1991 and the

gradual weakening of the license rajTata Motors, Maruti Suzuki and Mahindra

and Mahindra, expanded their domestic and international operations

The Indian government chose Suzuki for its joint-venture to manufacture small cars

Bajaj , Hero Honda , TVS etc emerged as leading two wheeler and three wheeler producers with Hero Honda as largest shareholder

Exports and DataExports and Data In the year 2009, India rose to be the fourth

largest exporter of automobiles following Japan, South Korea and Thailand

Monthly sales of passenger cars in India exceeded 100,000 units and has since grown rapidly to a record monthly high of 182,992 units in October 2009

Predictions made by Ernst and Young have estimated that the Indian passenger car market will have a growth rate of about 12 percent per annum over the next five years to reach the production of 3.75 million units by the year 2014

Current StatusCurrent StatusThe automobile sector of India is the seventh

largest in the worldThe country is the largest manufacturer of

motorcycles and the fifth largest producer of commercial vehicles

Many foreign brands are setting up roots in Indian soil

India overtook China by emerging as the fourth largest exporter of cars in Asia.

Recently AutoExpo-11 was a huge success and marked a milestone in Indian Automotive Sector

Market Size Of Automobile IndustryMarket Size Of Automobile Industry

• Grown at a spectacular rate on an average of 17% for last few years

• Attained a turnover of USD $35.8 billion• Has provided direct and indirect employment to

13.1 million people• The projected size in 2016 of the Indian

automotive industry varies between $122 billion and $159 billion including USD 35 billion in exports

Major players in IndiaMajor players in India

• Audi• BMW• Chevrolet• Fiat• Force• Ford• General• Hindustan

• Honda• Hyundai• Lamborgini• Maruti• Mahindra• Mercedes• Mitsubishi• Nissan Motors

Cont.Cont.

• Porshe• Reva• Rolls – Royce• San Motors• Skoda• Tata• Toyota • Volvo• Volkswagen

Market SharesMarket Shares

• Tata Motors - Commercial Vehicles 63.94%, Passenger Vehicles 16.45%

• Maruti Suzuki – 46.0 %• Hyundyi Motors – 14.15 %• Mahindra & Mahindra - Commercial Vehicles

10.01%, Passenger Vehicles 6.50%, Three Wheelers 1.31%

• Ashok Leyland - 22 %

Major ChallengesMajor ChallengesRising oil pricesHuman resourceRise in disposable IncomeHighways not up to the markLimited number of component

suppliersFall short in product developmentCustomer Relationship

management

Global Players Global Players GMToyotaFordHyundaiMaruti SuzukiHondaSkodaVolvoSuzuki Motorcycle

AndAndMercedes BenzBMWVolkswagen

Impact of Global CrisisImpact of Global CrisisGlobal vehicle production fell by 3.7%

from 2007 to 2008NAFTA and South America were most

badly hitEmployment conditions affected by

international trade in motor vehicles and automotive components and parts, flows and stocks of foreign direct investments.

Difficulty in obtaining loans for car purchase

Value chains were in a dire statePlants were shuttered temporarilyHuge debt loads, high fixed-capital

costs, high labor costs, and immense pension and health care commitments to retirees added to the immediacy of the damage.

The high cost and growing longevity of motor vehicles prompted buyers to postpone purchases

Latest TrendsLatest TrendsRemote keyless entryDrive by WireElectronic suspensionAdaptive cruise controlTire pressure monitoringNavigation systemsAutomotive digital electrical

systems and onboard networks

ContContCMOS logic gatePLDs reduce engineering

devlopement timeDriver assistance applicationsRear seat entertainment systemsHigh definition control systems

Top Executives in the Top Executives in the industryindustry

Michael Perschke, Head, Michael Perschke, Head, Audi IndiaAudi India

Was general manager for Mercedes-Benz (1997 – 2000)Joined Volkswagen in 2004 and has worked in Audi AG from 2008 onwardsIncharge of its European service network project

Shinzo Nakanishi, MD & CEO, Shinzo Nakanishi, MD & CEO, Maruti Suzuki India LtdMaruti Suzuki India Ltd

Has been the company's non-executive chairman since 2002Boosted the company's compact car lineup with the introduction of MSIL's world strategic models – the A-star, Ritz, Swift, etcInitiated work on Maruti's hybrid vehicles

Mr. Han Woo Park CEO & MD Mr. Han Woo Park CEO & MD ( Hyundai Motors India Ltd) ( Hyundai Motors India Ltd)

Joined in 1982 in finance department with cost auditing and financial operations

Joined Hyundai Motor India Limited in 2003 as the Chief Financial Officer

has a vast experience and understanding of Hyundai Motor India Ltd and the Indian culture and has successfully led his team for the last 7 yearsBusiness Administration

University of DankookSouth Korea