COMPREHENSIVE PROJECT- I

8/7/2019 COMPREHENSIVE PROJECT- I

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COMPREHENSIVE PROJECTCOMPREHENSIVE PROJECT-- II

ONONAUTOMOBILE INDUSTRYAUTOMOBILE INDUSTRY

(FOUR WHEELERS)(FOUR WHEELERS)Presented by:

Anand Agrawal (09M03)

Jitesh Dodhia (09F60)

Parth Dave (09M67)

Shilpi Agarwal (09F39)

Presented to:

G.H. Patel P.G Institute of Business Management

Sardar Patel University

Vallabh Vidyanagar

11th December 2010


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INTRODUCTIONINTRODUCTION

Presented by: Shilpi Agarwal (09F39)


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Automobile IndustryAutomobile Industry

y The well-developed Indian automotive industry.

y Automobile Industry was delicensed in July 1991.

y The passenger car was however delicensed in 1993.

y

100 per cent Foreign Direct Investment (FDI) ispermissible____yr.

y Turnover of Rs. 2, 20,600 crores yr.

y Direct and indirect employment to 13.1 million people.

y

Contribution to GDP has risen from 2.77 per cent in1992-93 to 4.14 per cent in 2008-09.

y Contribution of 17 per cent to the kitty of indirect taxes

of the Government yr.


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Automobile IndustryAutomobile Industry (contd..)(contd..)

y India is the worlds

second largest manufacturer of two wheelers,

fifth largest manufacturer of commercial vehicles,

largest number of tractors manufacturer, the 9th largest car manufacturer in world.

The automotive sector in India is growing at around 18

per cent per annum.


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GROWTH AND EVOLUTIONGROWTH AND EVOLUTION


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ProductProduct PProfilerofile

y According to the policies of Society of Indian Automobile Manufacturers

(SIAM) which was revised on June 2002, the classification of segments is done

as per the length of the vehicle in the passenger car segment.

y According to this classification, cars are segmented as

A1 - Mini - Upto 3400mm (M800, Nano),

A2 - Compact - 3401 to 4000mm (Alto, Wagon R, Zen,I10,A-star),

A3 - Midsize - 4001 to 4500mm (City, Sx4, Dzire, Logan,Verna ),

A4 - Executive - 4501 to 4700mm (Corolla, Civic, C class, Octavia),

A5 - Premium - 4701 to 5000mm (Camry, E class, Accord, Laura),

A6 - Luxury - Above 5000mm (S class, 5 series),

B1 - Van (Omni, Versa, Magic),

B2 - MUV/MPV (Innova, Tavera, Sumo)

SUV (CRV, Vitara)

The scope of our study is to focus on the Passenger Cars (A2- Compact).


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FINANCIAL ANALYSISFINANCIAL ANALYSIS

Presented by: Jitesh Dodhia (09F)


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DEMAND ANALYSISDEMAND ANALYSIS

Presented by: Anand Agrawal (09M03)


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Demand DeterminantsDemand Determinants


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LifecycleLifecycle Growth StageGrowth StageGross turnover of the Automobile Industry

Impact of Global recession

Domestic Market Share

16 percent of share and second number in

industry

Automobile Production Trends

Achieved 28 percent growth which one is the

highest ever growth in last decade

AutomobileDomestic Sales

Achieved 26 percent growth which one is thehighest ever growth in last decade

Automobile SegmentsGrowth

Passenger cars will grow by 24.5 percent in 2010-

11, which is second highest growing segment after

motorcycles.


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INDUSTRY ANALYSISINDUSTRY ANALYSIS

Presented by: Anand Agrawal (09M03)


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PESTELPESTEL

y Political

Government Stabilityx Since Last decade each government has completed its tenure

Tax Structurex Well defined Tax structure but state taxes dont have

uniformity

Foreign Trade Regulation

Social

Technological

y Environmental

y Legal


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FIVEFORCES MODELFIVEFORCES MODEL

y Threat of new entrants

Economies ofScale

Product Differences

GovernmentPolicy

Capital Requirements

y Supplier Power

Supplier Information

Supplier Switching Costs

Brand Identity

y Buyer Power

Product Differences

Buyer Information

Buyer Switching Costs Brand Identity

Buyer Profits

y Threat ofSubstitutes

y

Share of public transportation,from nearly 40 percent in 1994 to

30 percent today

y Industry Rivalry


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SWOTSWOT

y Strength Low Labour Cost

x SkilledWorkers Rank 1st inworld

x Qualified Engineers- Rank

second in world High growth rate of

industry

y Weakness Low labor productivity

Defect rates high 10 timesthan worlds average

Low Investment in R & D

Not reached critical mass

Poor infrastructure

y Opportunity Exports

Increasing DisposableIncome

Huge Middleclass

Change in lifestyle

Newer technologiesx Fuel Efficiency

x Safety devices

x Less emission

y Threats Fuel Prices

Global Recession

Tax policy

Steel Prices


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MARKET ANALYSISMARKET ANALYSIS

Presented by: Parth Dave (09M67)


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MARKETING ANALYSISMARKETING ANALYSIS

y PRODUCT

Classification of

passenger cars

x Minix Compact

x Mid Size

x Executive

x Premium

x Luxury

x SUV/MUV

y PRICE

Perceived Value

Pricing

Price Range offeredRs. 3lakh to 6lakh

Offerings

x Cash Discount

x Warranty Period

x Insurance cover

x Loan Facility

x Festival Discounts


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FUTURISTIC SCENARIOFUTURISTIC SCENARIO

y Indias real GDP in 2010-11 is expected tobe 8.2% compared to 2.7% of the World.

y Estimated production of Passenger vehicles

in 2015 would be 51 lakhs & upto 97 lakhsin 2020.

y Market share of passenger vehicles inautomobile industry will reach to 20% by

2020 which was 15% in 2009.y Passenger Vehicle segment will grow by

12%-13% while CV(goods) will have agrowth of 19%-20% in the year 2010-11.


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CONCLUSIONCONCLUSION

y Following points indicate the reason why IndianAutomobile Industry should be promoted:

Higher turnover.

Rising profitability of automobile manufacturers.

Expected rise in per capita disposable income.

Employment opportunities.

Immense scope for R&D and technological

upgradation. Increasing contribution in GDP.

y With the improvement in low cost production, design

innovation and advanced engineering India is

becoming a manufacturing hub for automobiles.


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THANK YOU

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COMPREHENSIVE PROJECT- I