Summer training project.pptx

A N A LY S I S O F I N D I A N A U T O M O B I L E I N D U S T R Y

Summer Training Project

Project report on automobile industry

Industry: alicon Castalloy Ltd

Name: Mrityunjay Das

www.alicongroup.co.in


Contents1)Indian Automobile industry2)Indian Automobile industry Bifurcation3)Analysis of Two wheeler industry4)Objective5)Analysis of Four Wheelers industry6)Finding7)Recomendation8)References


Atlas Castalloy Limited - Chinchwad, Pune, IndiaAlicon Castalloy Limited. , Pune, India Alicon Castalloy Limited. - Binola, India

Alicon group facilities, India &

Europe

Illichmann Castalloy,

GmbH & s.r.o

3


‣ India Group Sales USD 137 million .

‣ One of the largest aluminum foundry in India & having manufacturing facilities in Austria and

Slovakia also for Global Customers.

‣ Joint Venture with Enkei Corporation (Japan)

‣ Technical Collaboration with Hekikai Koki (Japan)

‣ Core Competence:

Rapid Prototyping

Designing (CAD/CAM/CAE/Simulation)

In house Tool Manufacturing

Die Casting (Sand Casting/GDC/LPDC)

Machining, Assembly & Painting.

‣ Casting for Automotive, Locomotive, Medical, Energy and Agricultural segments.

alicon group is a consortium of companies involved in Design, Engineering and Casting, Machining & Assembly of

Aluminum Components with global foot prints.

alicon group of companies

4


Global Presence

• Atlas Castalloy Ltd (1969)

• Alicon Castalloy Ltd, Pune (1995)

• Silicon Meadows Design Ltd.(1996)

• Alicon Castalloy Ltd, Binola (2006)

• Silicon Meadows Engineering Services Ltd. (2009)

USA EUROPE

INDIA

• Silicon Meadows Engineering

Services, Nashua, USA

• Illichmann Castalloy GmbH, Austria• Illichmann Castalloy s.r.o. Slovakia

5


alicon presence in India

Proposed

Alicon Castalloy Limited Pantnagar -

Uttaranchal.

Atlas Castalloy Limited, Chinchwad, Pune (1969)

Silicon Meadows Design Limited, Chinchwad, Pune

(1996)

Alicon Castalloy Limited, Shikrapur, Pune.(1995)

Silicon Meadows Engineering Services Limited, Viman

Nagar, Pune. (2009)

Alicon Castalloy Limited Binola, Haryana.

(2006)

6


FULL SYSTEM SOLUTIONS

PROTOTYPEDESIGN & MFG

FIXTURE

DESIGN

& MFG

TOOL DESIGN &

SIMULATION

TOOL

MAN

UFAC

TURI

NG

CASTING

MANUFACTURING

VA / VESUGGESTIONS

MACHI

NING

&

SUBA

SSEM

BLY

PAINTING

System Solution Capabilities : alicon

group

7


Company Profile

Date of Establishment: 1990

Revenue: 288.67 Cr.

Market Cap: 67 Cr.

Group CEO: Rajeev Sikand

Nature of Business: Manufacture

Legal status of firm Limited liability/corporation(listed company)

Background

ALICON GROUP is a union of Alicon Castalloy Ltd (formerly known as Enkei Castalloy), Atlas Castalloy Ltd., Silicon Meadows Design Ltd, Silicon Meadows Engineering Services Ltd & Illichmann Castalloy,GmbH & S.R.O grouped under one umbrella. The name for the group company ‘Alicon’ is coined from the words ‘Aluminum’ and ‘Consortium’. Alicon is a conglomerate that reflects a group of companies coming together to form a large, trusted and respectable entity with the vision and passion to go with it.


India: A Vibrant Economy Scope

1. Largest Democracy – 1.2 billion people, Growing Middle Class2. 4th largest GDP (PPP) and 10th largest GDP (Nominal, USD 1.8 trillion)3. One of the fastest growing economies - Estimates for 2011-12: 7.6%

• India’s average GDP growth rate: 7.3% over past 10 years • Expected to outpace China in the next decade

4. 3rd Largest Investor base in the World5. Robust Legal and Banking Infrastructure6. Demographics Advantage – Youth driven economy7. Suburbanization & Rural to Urban Migration –

• 140 million by 2020; 700 million by 20508. 2nd largest pool of Certified Professionals and highest number of Qualified Engineers in the world

9


Landmark of Indian automobile industry

1897: First Person to own a car in India - Mr Foster of M/s Crompton Greaves Company, Mumbai1901: First Indian to own a car in India - Jamshedji Tata1905: First Woman to drive a car in India - Mrs. Suzanne RD Tata�1911: First Taxi in India�1924: Formation of traffic police�1944: Premier Automobiles Limited�1945: Tata Motors�1947: Mahindra & Mahindra Limited�1981: Maruti Suzuki1994: Mercedes-Benz launched in India�1995: REVA Electric Car Company�2005: BMW launched india�2009: Land Rover and Jaguar


Automotive market scenario in India

1

1

• The automotive industry in India is one of the largest in the world and one of the fastest growing globally over 18 millions vehicles (including 2 wheeler and 4 wheeler ) and exports more than 2.3 million every year.

• At present the dominant products of the automobile industry are Two wheeler with market share of over 76.49 % and passenger cars with market share of about 16%,commerical vehicles and three wheelers share about 9% of the market between them.


Maruti suzuki Plant Manersar Tata Nano Plant Sanand

General Motors Plant Halol Volkswagen Plant Chakan

Indian Automobile Industry


OBJECTIVE OF THE PROJECT

• The objective of this project is analyzing deeply our Indian Automobile Industry for

investment 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 • Analyze the impact of qualitative factors on industry’s and company’s• Prospects• Comparative analysis of 2 Wheelers and 4 Wheelers


Print masterMajor Auto Giants of Automobile Industry


Indian Automobile Industry

Bifurcation


AUTOMOBILE

2 WHEELER 3 WHEELERPASSENGER

VEHICLE

COMMERCIAL

VEHICLE

Motorcycle Scooters Scooterettes Mopeds

L.C.V M.C.V H.C.V

Sedan HatchbackUtility Vehicle


Market Share of OEM


Market Share Vehicle wise

Market Share of Vehicle 2011-12Motor cycles 12,006,950Passenger Cars 5,637,518Scooter/Scooterettee 2,660,916Commercial Vehicles 911,574Three Wheelers 877,711Mopeds 785,753Utility Vehicles(UVs) 372,648

Motor cycles52%

Passenger Cars24%

Scooter/Scooterettee

11%

Commercial Ve-hicles

4%

Three Wheelers4%

Mopeds3%

Utility Vehicles(UVs)2%

2011-12


Analysis of Two wheelers


Major Two wheeler OEM


Trends For Last 2 yearsOEM's Total 2-Wheeler Volumes in 2010-11 Total 2-Wheeler Volume in 2011-12Hero MotoCorp Ltd 5405789 6274118Baja j Auto Ltd. 3404103 3849163TVS Motor Co. 1994036 2134565HMSIL 1651160 2111724Yamaha Motor India Pvt.Ltd. 362345 498350Suzuki Motor Corporation 282366 347188Mahindra 173135 140789Royal Enfi eld Motors India Ltd. 57351 83254Others 54 853

24%

20%

15%

12%

8%

7%

4%

1% 10%

2010-11, 2011-12

Royal Enfield Motors India Ltd.Yamaha Motor India Pvt.Ltd.HMSILSuzuki Motor Corpo-rationHero MotoCorp LtdBajaj Auto Ltd.TVS Motor Co.OthersMahindra


Research Methodology

Two Wheelers

Primary Data is collected from Factory. Secondary Data collected from factory as wells from Alicon

Castalloy Data with help of ACMA. Forecasting done on the Basis of 10% growth estimated in any

segment, at least 5% if decreases Four Wheelers

After budget session due to increase in petrol price. Petrol car sales volume decreases and Shift in Diesel Cars so

Forecasting 2-3 % growth in Petrol and 7% growth in Overall Estimation of 5.25% in passenger vehicle.


Forecasting of Two wheeler Volume

OEM's Total 2-Wheeler Volumes in 2010-11 Total 2-Wheeler Volume in 2011-12 Total 2-Wheeler Volume in 2012-13 Total 2-Wheeler Volume in 2013-14Hero MotoCorp Ltd 5405789 6274118 6745767 7280158Ba ja j Auto Ltd. 3404103 3849163 4234079 4657487TVS Motor Co. 1994036 2134565 2246503 2430830HMSIL 1651160 2111724 2286997 2483388Yamaha Motor India Pvt.Ltd. 362345 498350 548185 603004Suzuki Motor Corporation 282366 347188 381907 420098Mahindra 173135 140789 154868 170355Royal Enfi eld Motors India Ltd. 57351 83254 91579 100737Others 54 853 938 1032

Hero Moto

Corp

Ltd

Bajaj

Auto Ltd

.

TVS M

otor C

o.HMSIL

Yamah

a Moto

r India

Pvt.Lt

d.

Suzuk

i Moto

r Corp

oratio

n

Mahind

ra

Roya

l Enfie

ld Moto

rs Indi

a Ltd.

Others

010000002000000300000040000005000000600000070000008000000

Total 2-Wheeler Volumes in 2010-11Total 2-Wheeler Volume in 2011-12Total 2-Wheeler Volume in 2012-13Total 2-Wheeler Volume in 2013-14


Motorcycle and Scooter / Mopeds sales volume


Sales Trends of Motorcycle for FY 2010-11, 2011-12

OEM's Total 2-Wheeler Volumes- Motorcycles in 2010-11 Total 2-Wheeler Volumes- Motorcycles in 2011-12Hero MotoCorp Ltd 5044970 5811162

Baja j Auto Ltd. 3404103 3849163HMSIL 744836 864871

TVS Motor Co. 844935 841773Yama ha Motor India Pvt.Ltd. 362345 498350

Roya l Enfi eld Motors India Ltd. 57351 83254Suzuki Motor Corporation 51648 57585

Others 54 853

41%

26%

15%

12%

3%2%1%0%

Total Market share of Motorcycle in 2010-11

Hero MotoCorp LtdBajaj Auto Ltd.TVS Motor Co.HMSILYamaha Motor India Pvt.Ltd.Suzuki Motor CorporationMahindraRoyal Enfield Motors India Ltd.

41%

25%

14%

14%

3%

2%1%1%

Total Market share of Mo-torcycle in 2011-12

Hero MotoCorp LtdBajaj Auto Ltd.TVS Motor Co.HMSILYamaha Motor India Pvt.Ltd.Suzuki Motor Corpora-tionMahindraRoyal Enfield Motors India Ltd.


Sales Trend of Scooters/Mopeds for FY 2010-11, 2011-12

OEM's Tota l 2-Wheelers Volumes - Scooters/Mopeds in 2010-11 Tota l 2-Wheeler Volumes- Scooters/Mopeds i n 2011-12TVS Motor Co. 1149101 1292792

HMSIL 906324 1246853Hero MotoCorp Ltd 360819 462956

Suzuki Motor Corporati on 230718 289603Mahindra 173135 140789

Market share 2010-11, 2011-12

41%

32%

13%

8%6%

Total 2-Wheelers Volumes- Scooters/Mopeds in 2010-

11TVS Motor Co.HMSILHero MotoCorp LtdSuzuki Motor Corpo-rationMahindra

38%

36%

13%

8%

4%

Total 2-Wheeler Volumes- Scooters/Mopeds in 2011-

12 TVS Motor Co.HMSILHero MotoCorp LtdSuzuki Motor Corpo-rationMahindra


Sales Forecast for motorcycles for the FY of 2012-13, 2013-14

Total 2-Wheeler Volumes- Motorcycles in 2012-13623651642340799154598715115481859157963344

938

OEM'sHero MotoCorp Ltd

Ba ja j Auto Ltd.HMSIL

TVS Motor Co.Yamaha Motor India Pvt.Ltd.

Royal Enfi eld Motors Indi a Ltd.Suzuki Motor Corporation

Others

Total 2-Wheeler Volumes- Motorcycles in 2013-1467199814657487974696918339603004100737696781032

Hero Moto

Corp Ltd

Bajaj

Auto Ltd

.HMSIL

TVS M

otor C

o.

Yamaha

Motor In

dia Pv

t.Ltd.

Roya

l Enfie

ld Moto

rs Indi

a Ltd.

Suzuk

i Moto

r Corp

oratio

nOthe

rs0

10000002000000300000040000005000000600000070000008000000

Total 2-Wheeler Volumes- Mo-torcycles in 2010-11Total 2-Wheeler Volumes- Mo-torcycles in 2011-12Total 2-Wheeler Volumes- Mo-torcycles in 2012-13Total 2-Wheeler Volumes- Mo-torcycles in 2013-14


OEM'sTVS Motor Co.

HMSILHero MotoCorp Ltd

Suzuki Motor CorporationMahindra

Sales Forecast for Scooters / Mopeds for the FY of 2012-13, 2013-14

Total 2-Wheeler Volumes- Scooters/Mopeds in 2013-1413749921371538509252318563154868

Total 2-Wheeler Volumes- Scooters/Mopeds in 2013-1415124911508692560177350420170355

TVS M

otor C

o.HMSIL

Hero Moto

Corp

Ltd

Suzuki

Motor C

orpora

tion

Mahind

ra0

200000400000600000800000

1000000120000014000001600000

Total 2-Wheelers Vol-umes- Scooters/Mopeds in 2010-11Total 2-Wheeler Volumes- Scooters/Mopeds in 2011-12Total 2-Wheeler Volumes- Scooters/Mopeds in 2012-13Total 2-Wheeler Volumes- Scooters/Mopeds in 2013-14


Trends of FY 2010-11, 2011-12

OEM's Total 2-Wheeler Volumes- Motorcycles in 2010-11 Total 2-Wheeler Volumes- Motorcycles in 2011-12

Motorcycles 10510242 12007011Scooters/Mopeds 2820097 3432993

79%

21%

Market Share of 2- Wheelers 2010-11

Motorcycles Scooters/Mopeds

78%

22%

Market Share of 2-Wheelers 2011-12

Motorcycles Scooters/Mopeds


Forecasting for coming FY 2012-13, 2013-14

OEM 2010-11 Volumes 2011-12 Volumes 2012-13 volumes 2013-14 VolumesMotorcycles 10510242 12007011 12961611 14044954

Scooters/Mopeds 2810097 3432993 3729213 4102135

2010-11 Volumes

2011-12 Volumes

2012-13 volumes

2013-14 Volumes

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

MotorcyclesScooters/Mopeds


CapaCity Engines


Growth of Engines capacities

OEM's Domestic Growth of Engines on 2010-11 Domestic Growth of Engines on 2011-12

75-125 CC 19064603 21662093125-250 CC 57364 100576

250 CC above 3016308.665 3515688

86%

0% 14%

Domestic Growth of Engines on 2011-1275-125 CC 125-250 CC 250 CC above

86%

0% 14%

Domestic Growth of Engines on 2010-1175-125 CC 125-250 CC 250 CC above


Forecasting of Engine capacity

Engine Sales Volumes of Engine on 2010-11 Sales Volumes of Engine on 2011-12 Sales Volumes of Engine on 2010-11 Sales Volumes of Engine on 2013-1475-125 CC 19064603 21662093 23146835 25265383125-250 CC 57364 100576 110633 121696

250 CC above 3016309 3515688 3834836 4189140

Sales

Volumes

of Eng

ine on

2010

-11

Sales

Volumes

of Eng

ine on

2011

-12

Sales

Volumes

of Eng

ine on

2010

-11

Sales

Volumes

of Eng

ine on

2013

-140

50000001000000015000000200000002500000030000000

75-125 CC125-250 CC250 CC above

Axis Title

Axis Title


Four Wheeler Sales Volume


Major Four wheeler OEM


Trends of FY 2010-11, FY 2011-12

OEM's Volumes in 2010-11 Volume in 2011-12

MSIL 1273331 1133935Hyunda i 595078 630715Tata 321660 322761M&M 183231 226760Ford 112615 119440Chevrolet 109455 110244Toyota 83753 161125Nissan 74512 128926HSCIL 60484 49459Volkswagen 52977 79772Skoda 23426 36338Fiat 21896 16035Mitsubishi 3248 2413Renaul t 0 4769Mercedes Benz 2502 3468


Trends Shows increasing volume, -ve indicates decrease in Volume

33%

18%13%

10%

8%

6%

3%3%1% 2% 1% 0% 0% 0% 0%

Volumes in FY 2010-11- FY2011-12

MSILToyota NissanM&MHyundaiVolkswagenHSCILSkodaRenaultFordFiatTataMercedes BenzMitsubishiChevrolet


Forecasting of 4-wheelers Volume

OEM's Volumes in 2010-11 Volume in 2011-12 Volume in 2012-13 Volume in 2013-14 Volume in 2014-15

MSIL 1273331 1133935 1172394 1289640 1418597Hyundai 595078 630715 653671 719038 790941Tata 321660 322761 327838 360623 396683M&M 183231 226760 242309 266540 293196Ford 112615 119440 125638 138202 152026Chevrolet 109455 110244 115243 126767 139443Toyota 83753 161125 169440 186384 205023Nissan 74512 128926 135330 148863 163749HSCIL 60484 49459 50967 124945 61670Volkswagen 52977 79772 83578 91937 101129Skoda 23426 36338 38194 42012 46213Fiat 21896 16035 16829 18513 20363Mitsubishi 3248 2413 2547 2802 3082Renaul t 0 4769 5014 5516 6067Mercedes Benz 2502 3468 3817 4197 4615

OEM's


Green bar line indicates increase in growth in bar graph

MSIL

Hyunda

iTat

aM&M

Ford

Chevr

olet

Toyota

Niss

anHSC

IL

Volks

wagen

Skoda Fia

t

Mitsub

ishi

Renau

lt

Merced

es Ben

z0

200000400000600000800000

1000000120000014000001600000

Volumes in 2010-11Volume in 2011-12Volume in 2012-13Volume in 2013-14Volume in 2014-15


Finding

Two Wheelers

• Hero Moto corps is the leader the whole market followed by Bajaj, Honda, TVS then Yamaha then Royal Enfield

• Royal Enfield is the leader of the emerging market as compared to Honda (HMSIL), then others (including Harley Davidson) in 250 cc above engines.

• Bajaj is becoming a market leader in this segment, followed by Honda, Yamaha, TVS then Hero Moto corp. in 125-250 cc Engines

• Customer is shifting from cars to Motorcycle or Scooters. Four Wheelers • As Fuel price increases specially in Petrol there is a big changes comes in

market i,e Customers are preparing to buy Diesel Cars as Compare to Petrol cars.


Factors affecting the demand and growth of the auto sector in India

4

1


Government Policy for Automobile Industry in India

4

2

• The Indian government has introduced several industry. The Indian Auto Policy of 2002, introduced measures like low entry barriers and investment incentives by the local state governments. To encourage in-house research and development activities, Government has introduced policies that allow weighted tax deduction up to 150%.

• National Automotive Testing and R&D Infrastructure Project (NATRIP) has been set up n in Rae Bareilly, Ahmednagar, Pune, Manesa, Silchar, Indore and Chennai for strengthening the R&D infrastructure.


Global Scenario of Two wheeler Industry

4

3

• Two wheeler Industry in Europe in first quarter 2012:The European market reported 8,2% decline confirms the crisis suffered by the European Motorcycle sector, now officially entering its fifth year.

• Only the United Kingdom and Germany have performed positively, respectively with a growth of 2,7% and 1,5%.

• Every other main European market reports a negative trend: France -8,8%, Italy -14,8%, Spain -17,9%, The Netherlands -7,9%.


Two wheeler Industry in Asia: FAMI (federation of Asian Motorcycle industries) currently comprising of seven motorcycle associations in Asia as follows:

1.ASASIASI INDUSTRI SEPEDA MOTOR INDONESIA(Indonesian Motorcycles Industry Association)

2.JAMA (Japan Automobile Manufacturers Association Inc)3.MASAAM(Malaysia Motorcycle and Scooter Assemblers and Distributors)4. Motorcycle Development Program Participants Association, Inc.(Philippine Motor Vehicle

Development Program)5.SMCTA(Singapore Motor Cycle Trade Association)6.TAIA(Thai Automobile Industry Association)7.TTVMA(Taiwan Transportation Vehicle Manufacturers Association)

• FAMI is also member of International Motorcycle Manufacturers Association (IMMA), the Geneva-based body that represents the motorcycle industry worldwide.

4

4


Production trend of FAMI (federation of Asian Motorcycle industries) in 2011-12

4

5

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

IndonesiaMalaysiaJapanPhilippineSingaporeThaiTaiwan


Recommendations:

• Due to hike in Petrol Price the Customers are shifting Petrol cars to Diesel. The growth in diesel car increases.

• In 2-wheelers segment the Customer is getting attracted towards Scooters more than Motorcycle.

• 4-wheelers demand is decreasing as compare to 2-wheelers

• People is preferring Diesel cars.


Useful links for Global Coverage of Automobile and Auto component Industry

• International Motorcycle Manufacturers Association(IMMA).• ACEM (Association for Motorcycle Industry in Europe (

www.acem.eu).• FAMI (federation of Asian Motorcycle industries) (

www.fami-motorcylce.org).• Automotive Industry Development Centre(www.aidc.co.za).• National Association of Automotive Component and allied

manufacturers(www.naacam.co.za).• National Association of Automobile Manufacturers of SA(

www.naamsa.co.za).

4

7

http://www.acem.eu/

http://www.fami-motorcylce.org/

http://www.aidc.co.za/

http://www.naacam.co.za/

http://www.naamsa.co.za/


THANK

YOU

Special Thanks to:

1) Inmantec Institutions

2) Alicon Castalloy Ltd