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AUTOMOBILE IN INDIA (FOUR WHEELER AND ABOVE) 12 – 03 - 2015

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  1. 1. PRESENTED BY C. STEPHEN RAJ AIM ( Alagappa Institute of Management) KARAIKUDI
  2. 2. INTRODUCTION India represents one of the worlds largest automobile industries. Easy availability of finance and rising income levels are encouraging the middle class population to upgrade their two wheelers to a car. The Automobile market is anticipated to grow at a compound annual growth rate (CAGR) of 16 per cent during 2013 2017. India is quietly becoming a production hub of high-end vehicles meant for export to China.
  3. 3. DEFENITION Motorized vehicle consisting of four wheels and powered by an internal engine. Automobiles are used to transport people and items from one location to another location. After years or various designs, inventors were able to develop a functi onal general design that is utilized by major automakers as the foundation of their designs. Automobiles generally use gasoline to fuel the internal engine, but technological advances have led to the design of cars that run on electricity.
  4. 4. PRESENT SCENARIO The passenger vehicles production in India touched 3.23 million units in 2012 13 and is expected to reach 10 million units by 2020 21. The industry recorded exports worth US $ 9.3 billion in 2012 -13 and is projected to touch US $ 30 billion by 2020- 21, according to data from Automotive Component Manufacturers Association (ACMA). The cumulative FDI inflows into the Indian automobile industry during April 2000 to October 2013 was recorded terms of US $ 9079 million amounting to 4 per cent of the total FDI inflows.
  5. 5. Cont. The world standings for the Indian automobile sector, as per the Confederation of Indian Industry, are as follows: Largest three-wheeler market Second largest two-wheeler market Tenth largest passenger car market Fourth largest tractor market Fifth largest commercial vehicle market Fifth largest bus and truck segament
  6. 6. Some important locations of this industry Chennai Delhi. Mumbai Jamshedpur Bangalore Gurgaon. Pune Kolkata Lucknow Hyderabad
  7. 7. EVOLUTION OF AUTOMOBILE
  8. 8. The first car ran on India's roads in 1897. Until the 1930s, cars were imported directly, but in very small numbers.
  9. 9. * 1897 First Person to own a car in India - Mr. Foster of M/s Crompton Greaves Company, Mumbai * 1901 First Indian to own a car in India - Jamshedji Tata * 1905 First Woman to drive a car in India - Mrs. Suzanne RD Tata
  10. 10. The Growth Journey Pre 1983 1983-1993 1993-2007 Era of globalization and evolution of India as a global manufacturing hub Closed market Growth of market limited by supply Outdated models Players Hindustan Motors Premier Telco Ashok Leyland Mahindra & Mahindra Japanisation - GOI- Suzuki joint venture to form Maruti Udyog Joint ventures with companies in commercial vehicles and components Players Maruti Udyog Hindustan Motors Premier Telco Ashok Leyland Mahindra & Mahindra Delicensing of sector in 1993 Global major OEMs start assembly in India (Toyota, GM, Ford, Honda, Hyundai) Imports allowed from April 2001; alignment of duty on components and parts to ASEAN levels Implementation of VAT
  11. 11. About 91% of the vehicles sold are used by households and only about 9% for commercial purposes. Passenger cars with a market share of about 15.96% &Commercial vehicles and three wheelers share about 7.55% of the market between them. In 2009, India emerged as the fourth largest exporter of automobiles.
  12. 12. AUTOMOBILE SEGAMENTATION: SIAM or Society of Indian Automobile Manufacturers divides the Indian passenger vehicles in the segments A1, A2, A3, A4, A5, A6, B1, B2 and SUV. The classification is done solely based on the length of the automobiles. The details of the segments are mentioned as ..
  13. 13. SEGAMANTATION BASED ON THE LENGTH: Car Segment Length of the car/Model type Car model belonging to the segment A1 Up to 3400mm Nano A2 3401 to 4000mm Alto, i10, Zen, Wagon R A3 4001 to 4500mm Manza, Logan, Dzire, City A4 4501 to 4700mm Corolla, Octavia, Optra A5 4701 to 5000mm Accord, Camry, Sonata A6 More than 5000 mm Mercedes S class B1 Vans Versa, Omni B2 MUV/MPV Sumo, Innova SUV SUV Vitara, CRV
  14. 14. SEGAMENTATION BASED ON FEATURES: Car Segment Distinguishing feature of the cars in this segment Car model belonging to the segment A Cars priced below Rs. 3.5 Lakh Alto, Spark, Nano, Eon A1 Hatchback priced lower than Rs. 6 Lakh Santro, Indica, Beat A2 Hatchback priced between Rs. 6 to 7.5 Lakh Ritz, i10, i20, Swift, Figo B1 Vans Versa, Omni B2 MUV/MPV Sumo, Innova C1 Sedan models priced below Rs. 8 Lakh Indigo, Fiesta, Sunny C2 Sedan models priced between Rs. 8 to 9.5 Lakh Verna, Manza, Linea D1 Premium Sedan models priced below Rs. 15 Lakh Fluence, Corolla D2 Luxury Sedan models priced below Rs. 25 Lakh Sonata, Camry, Kizashi SUV SUV Vitara, CRV
  15. 15. SEGAMANTATION BASED ON BODY: Mini Compact hatchback mid size cars Sedan executive cars premium cars luxury cars super luxury cars van utility vehicles MUV/MPV SUV convertibles sports cars super cars
  16. 16. OTHER COMERCIAL VEHICLES: TRUCKS (different verities) TRACTORS LORRIES BUSES
  17. 17. Top manufacturers of automobiles in India Tata Motors Maruti Suzuki Ashok Leyland Hindustan Motors Mahindra Hyundai
  18. 18. Contd. Ford Chevrolet Honda Motors
  19. 19. MAJOR COMPETITORS: LUMBORGINI
  20. 20. MAJOR COMPETITORS:
  21. 21. MAJOR COMPETITORS: INFINITE
  22. 22. COMPETITORS IN OTHER COMERSIAL VEHICHLE: ASHOK LEYLAND EICHER TATA FORCE M & M
  23. 23. 1.TATA MOTORS CEO :- Mr. Carl-Peter Froster CHAIRMAN:- Mr. Mystry PUNCH LINE:- Even More Car per Car
  24. 24. Tata Motors Continued Initially known as TELCO, largest manufacturer of commercial vehicle in India and also the largest private sector company. The most popular vehicles are Indica ,Indigo,Nano , Sumo etc. The latest innovation of the Tata Motors is the Nano car which is called the people's car. Tata Motors lost their market share in 2010-11 to mainly Ford India and Volkswagen, says SIAM. Lost its market share during the said period, falling to 12.92 per cent with sales of 2,56,202 units.
  25. 25. PRODUCT MIX OF TATA MOTERS: PASSENGERS CARS UTILITY VEHICLES TRUCS COMMERCIAL PASSENGERS CARRIERS INDICA VISTA SAFARI DICOR TATA NOVAS BUSES INDIGO XL SUMO GRANDE TL 4*4 WINGER NANO SUMO MAGIC FIAT CARS XENON XT
  26. 26. Passenger Cars & Utility vehicles Tata Sumo/Spacio Tata Safari Tata Indica Tata Indigo Tata Winger Tata Magic Tata Nano Tata Xenon XT Tata Xover (2009) Tata Manza (2009) Commercial Vehicles Tata Ace Tata Starbus Tata Globus Tata Marcopolo Bus Tata Novus Tata 407 EX Military Vehicles Tata LSV Tata 407 Troop Carrier Tata Winger Passenger Mini BusTata Motors Limited 28
  27. 27. The current Tata vehicles include : The Tata Pr1ma concept carThe Tata Pr1ma concept car Tata entered the commercial vehicle sector in 1954 after forming a joint venture with Daimler-Benz of Germany. After years of dominating the commercial vehicle market in India, Tata Motors entered the passenger vehicle market in 1991 by launching the Tata Sierra, a multi utility vehicle. Tata Pr1ma Tata Sumo Grande Tata Sumo Tata Safari Tata Indica Tata Manza Tata Winger Tata Venture Tata Magic Tata Nano Tata Aria Tata Xenon XT
  28. 28. Tata Motors Limited 30
  29. 29. CEO:- Mr. Shinzo Nakanishi CHAIRMAN:- Mr. R.C Bhargava PUNCH LINE:- Lighter,Faster,Better
  30. 30. Maruti Suzuki Continued The Company is the result of the alliance of Japan's Suzuki and Maruti. Maruti Suzuki car is for the average Indian. The company produces Zen ,Maruti 800, Maruti Esteem, Maruti Omni, Swift etc. It is the first Indian company which manufactured about one million vehicles. Motto of the largest Automobile Company of India:- offer low cost fuel efficient vehicles. Market share in the passenger car segment fell to 48.74 per cent in the last fiscal from 50.09 per cent in 2009-10.
  31. 31. PRODUCTS Maruti 800 Maruti Alto Maruti Grand Vitara XL-7 Maruti Gypsy King Maruti Omni Maruti Suzuki SX4 Maruti Swift Maruti Versa Maruti Vitara Maruti Wagon-R Maruti Zen
  32. 32. The price of the Maruti car is between Rs. 210000 to Rs. 1500000. Maruti 800 is the lowest price car of this company. Alto, Omni, Wagonr, are also the low price car of the company, Zen & Esteem are the mid price car of the company. But Grand Vitara is the high price model of the company . The price of car are decided according to its product Varity, quality, design etc.
  33. 33. CEO:- Mr. John Krafick Chairman:-Mr. Mong Koo Chung PUNCH LINE:- Drive Your Way
  34. 34. Company was founded in the year 1998 and it is second largest car manufacturing company in India Was established as a subsidiary of auto giant of Korea, Hyundai Motor Company. The company captured the hearts of Indian car lovers with the introduction of its Santro car model. Market Share: Passenger Vehicles 14.15%
  35. 35. Products
  36. 36. 4.MAHINDRA MOTORS CEO:- Mr. Anand Mahindra Chairman:-Mr. Keshub Mahindra PUNCH LINE:-Nothing Else Will Do
  37. 37. Mahindra Motors Continued The company specializes in vehicles for the general purpose utility. It ranks tenth among the largest private sector companies in India. It has about 33 sales offices and the network support is about 500 dealers across India. Increasing its market share to 57.2% over the previous years market share of 51.3%. Formed a new joint venture Mahindra Automotive Australia Pty. Limited, to focus on the Australian Market
  38. 38. PRODUCTS & SERVICES 4/3 Wheelers Pik Ups LCVs SUVs CARS UVs
  39. 39. PRODUCTS & SERVICES FarmProducts.. Agro inputs and services Engines Farm Implements Tractors.
  40. 40. PRODUCTS
  41. 41. Thar Pick-Up Bolero Renoult Verito Quanto e2o Xuv 500 Scorpio Xylo
  42. 42. Introduction On Toyota Motors Toyota is 7th largest automotive manufacturer Toyota Motor Corporation is headquartered in Toyota City, Aichi Toyota has annual sales of 397.05 billion yen Produces ~5.5 million vehicles per year From 56 manufacturing plants across 6 continents Employs 317,716 people Toyota has become the largest vehicle manufacturer in Japan with over 40% market share
  43. 43. Product Line
  44. 44. Introduction Volkswagen "Volkswagen the word means "people's car. Headquarters in Wolfsburg. The Volkswagen Group's models are sold in more than 150 countries
  45. 45. Pricing Strategies P R I C E High Medium Low Q U A L I T Y High Premium Phaeton High Value Touareg Penetration Passat Medium Over Charging Yeti Medium Value Jetta Good Value Vento Low Rip Off Beetle False Economy Fabia Economy Polo Pricing Strategies P R I C E High Medium Low Q U A L I T Y High Premium Phaeton High Value Touareg Penetration Passat Medium Over Charging Yeti Medium Value Jetta Good Value Vento Low Rip Off Beetle False Economy Fabia Economy Polo
  46. 46. Ford: The Company Vision: To become the worlds leading consumer company for automotive products and services. Mission Statement: To provide safe, reliable, and personal transportation around the world. Market Share: 16% of the US market and 10% of the European market. Brands: Ford, Mercury, Mazda, Jaguar, Volvo, Lincoln, Land Rover, Aston Martin.
  47. 47. Product Line Luxury Cars Small Cars Wagons Midsize Cars Sports Cars SUVs Vans & Minivans Trucks Convertibles
  48. 48. Small Cars Wagons Niches within SUV Market Segment Luxury Cars Midsize Cars Sports Cars Vans & Minivans Trucks Convertibles Ford Excursion Ford Explorer Lincoln Navigator Mercury Mountaineer Ford Expedition
  49. 49. Audo is defined as Vorsprung Durch Technik, which means PROGRESS TO TECHNOLOGY. Founded by August Horsh on the 16th day of July, 1909 in Zwickay, Germany. Its headquarters is situated in Ingolstadt, Bavaria, Germany. It is currently a subsidiary of Volkswagen AG which holds 99.55% of the total stakes of Audi since 1966 after its purchase from its former owner Daimler-Benz. Audi is represented in 110 countries worldwide and since 2004, Audi has been selling its products in the Indian market.
  50. 50. The Categories Audi manufactures automobiles in 3 categories, which are- The Executive Class 1. Audi A4 2. Audi A5 3. Audi A6 4. Audi A7 5. Audi A8 (Full-size Luxury Car)
  51. 51. Audi s Sports class- 1. Audi TT 2. Audi R8 3. Audi TTS 4. Audi TTRS
  52. 52. Audis Sport Utility Vehicle (SUV) Range 1. Audi Q3 2. Audi Q5 3. Audi Q7
  53. 53. BMW = Bavarian Motor Works Founded in 1916 Originally an aircraft engine manufacturer Produced first automobile in 1929 By the 1980s, established itself in the luxury/ performance segment of the global automotive market 63 Company Background
  54. 54. 3 Series Entry Level Sedan $25K to $40K 5 Series Mid-range Sedan $37K to $44K 7 Series Flagship Sedan $54K to $70K 64 Product Line
  55. 55. PRODUCT BMW Wide selection of models Different styles to meet the customers needs BMW Universal Bluetooth iPod with BMW BMW accessories
  56. 56. Average BMW Customer Profile: Approx. 46 years old Median income = $150K Well-educated Married and no children 2/3 were male Technology is important Very loyal to the BMW brand Driving is a form of personal expression Work hard and play hard! 66 The BMW Customer
  57. 57. History, Vision & Mission India Market Entry 1994 100%-owned subsidiary of Daimler AG. Pioneer of automotive engineering Proud tradition with groundbreaking technologies and high-quality products Philosophy : we give of our best for customers who expect the best - and we live a culture of excellence that is based on shared values Corporate history is full of innovations and pioneering achievements; they are the foundation and ongoing stimulus for our claim to leadership in the automotive industry
  58. 58. RANGEModels: A-Class B-Class C-Class CL-Class CLA-Class CLS-Class E-Class G-Class GL-Class GLA-Class GLK-Class M-Class R-Class S-Class SL-Class SLK-Class SLS AMG Viano Citan
  59. 59. PRODUCT PORTFOLIO
  60. 60. Performance BMW 3-Series 320d Highline Sedan Audi A4 1.8 TFSI Mercedes-Benz C-Class 2012 C 250 CDI Maximum Speed (kmph) 216 212 214 0-100kmph (seconds) 8.3 8 8.2 Engine BMW 3-Series 320d Highline Sedan Audi A4 1.8 TFSI Mercedes-Benz C-Class 2011 C 250 CDI Wheel Type light-alloy Alloy Alloy Wheels Transmission Type Automatic Automatic Automatic Weight (kg) 1445 1450 1655 Mileage Overall (km/liter) 9.7 8.96 8.5 Ex-Showroom Price Rs. 32,45,908 Rs. 28,92,477 Rs. 34,32,325 Comparison between Audi A4 , BMW 3-series and Benz C- Class
  61. 61. Performance BMW X6 M Price= 1,30,00,000 AUDI Q7 Price=Rs.1,25,00,000 Benz G Class price=Rs 1,34,67,200 Displacement 4395 cc 4134cc 5439cc Cylinders V8 V8 V8 Power 555 PS at 6000 rpm 200PS at 4000 rpm 507PS at 6100rpm Torque 680 Nm (500 lbft) at 1500-5650 rpm 760Nm at 1750 -3000 rpm 700Nm@2750rpm Max. Speed in km/h 250 240 210 0100 km/h in sec 4.7 3.6 5.5 Mileage Overall (km/liter) 7.2 8.5 9.5 Comparison between Audi Q7, BMW X6 and Benz G Class
  62. 62. SALES MANAGER SALES EXECUTIVES (3) SALES PEOPLE (12) RETAIL (4) CORPORATE (4) BESPOKE (4) Organization Structure AUDI,BMW&BENZ ASSISTANT SALES MANAGER AUDI BMW UPCOUNTRY (8) SHOWROOM (4) Corporate (2) Marketing (4) Retail (2) Front line (9) ASSISTANT SALES MANAGER ASSISTANT SALES MANAGER SALES MANAGER SALES EXECUTIVES (3) SALES PEOPLE (12) SALES MANAGER SALES PEOPLE (17) BENZ
  63. 63. MAJOR COPMETITORS ASHOK LEYLAND EICHER TATA M & M
  64. 64. Genesis of Ashok Leyland Formed in the year 1948 by Mr. Raghunandan Saran as ASHOK MOTORS, to assemble Austin Cars. Renamed & Started Mfg. Commercial Vehicles in 1955 with equity participation by LEYLAND MOTORS. 2nd Largest Commercial vehicle company in India. Market Share of 28% (2007-2008) in Medium & Heavy Commercial Vehicle. Market Leader in Bus Segment , and Claims to carry 60 Million Passengers Daily.
  65. 65. PRODUCTS Buses Trucks Light Vehicles Defence Vehicles Power Solutions
  66. 66. Competitor Analysis Major Competitor of Ashok Leyland : - TATA MOTORS EICHER MOTORS Market Capital6% 88% 6% ASHOK LEYLAND TATA MOTORS EICHER MOTORS
  67. 67. Sales Turnover 19% 80% 1% ASHOK LEYLAND TATA MOTORS EICHER MOTORS Net Profit 29% 64% 7% ASHOK LEYLAND TATA MOTORS EICHER MOTORS
  68. 68. ABOUT Eicher Motors Limited (EML) incorporated in 1982, is an Indian automaker company based in Gurgaon, India and a leading player of the Indian automobile industry. The Eicher Group has diversified business interests in design and development, manufacturing, and local and international marketing of trucks, buses, motorcycles, automotive gears, and components Eicher has invested in the potential growth areas of management consultancy services, customized engineering, and maps and travel guides
  69. 69. ABOUT The Volvo Group is one of the worlds leading manufacturers of trucks, buses, construction equipment and marine and industrial engines Provides complete solutions for financing and service Employs about 115,000 people, has production facilities in 19 countries and sells its products in more than 190 markets.
  70. 70. THE JOINT VENTURE Joint Venture came up in June 2008 - VE COMMERICAL VEHICLES 50:50 Joint Venture Eicher will transfer its commercial vehicles, components and engineering design services business to the new joint venture Volvo will brought advanced manufacturing technology and set up new processes for improving after sales services
  71. 71. MASS MARKET PRODUCT FRUGAL ENGINEERING EXPERIENCE OF WORKING IN EMERGING MARKET GLOBAL DISTRIBUTION ADVANCED TECHNOLOGY FINANCIAL MUSCLE REASONS FOR JOINT VENTURE
  72. 72. INDUSTRIAL GROWTH
  73. 73. Table 1 vehicle production Year 2012 - 2013 2013 - 2014 % change Passenger vehicles 582703 522987 - 10.25 Commercial vehicles 136795 145877 6.64 Industry 719498 668864 - 3.61
  74. 74. Table 2 domestic sales Year 2012 - 2013 2013 - 2014 % change Passenger vehicles 448165 409823 - 8.56 Commercial vehicles 120289 113936 - 5.28 Industry 568454 523759 - 13.82
  75. 75. Table 3 export sales Year 2012 - 2013 2013 - 2014 % change Passenger vehicles 84418 90615 7.34 Commercial vehicles 47787 60462 26.53 Industry 132205 151077 33.87
  76. 76. Commercial vehicles M&M Tata Motors Eicher VE Ashok Leyland Passenger vehicles Maruthi Suzuki Hyundai M&M Tata Motors Ford Honda Cars General Motors 12,919 25,574 2905 10,639 1,05,559 34,780 18,804 13,047 6,647 18,331 4,667 v v v v v v 14 % 25.1% 35.6% 9.3% 4.1% 5% 19% 0.9% 17% 16% *Including exports Top car makers report decent sales growth FEB 3, 2015
  77. 77. MARUTHI HYUNDAI HONDA MAHINDRA TATA MOTORS TOYOTA GENERAL MOTORS FEB, 2015 FEB, 2014 CAR SALES 1,07,892 99,758 37,305 34,005 16,902 14,543 18,103 19,308 13,767 11,325 11,802 10,100 4320 5607 8.2 9.7 16 6 22 17 23 % % % % % % % %
  78. 78. 40% 30% 20% 10% 0% -10% -20% -30% 30% 16% 18% 18-20% 16-18% 7-9% 2011-12 2012-13 2013-14 2014-15E 2015-16p 9% -26% -27% (7)-(9)% HEADED FOR BETTER TIMES Source: SIAM, CRISIL Research LCV MHCV COMMERCIAL VEHICLES Momentum in CV sales to continue FEB 16, 2015
  79. 79. CAREER OPTIONS AFTER MBA IN AUTOMOBILE SECTOR
  80. 80. FROM THE LOCAL MANAGERS: Mr. P. JEYAAMAN, (Manager M&M) Career opportunities are there in the sales department but the freshers are not ready. Mr. SENTHIL, (Group leader Maruthi) Here in local we dont need the MBAs. We are satisfied with the ordinary degree students. Opportunities are there in the world bran companies such as ford, bmw, audi, etc in selling department. HYNDAI GROUP LEADER opportunities are there for the mbas only in sales.
  81. 81. CHENNAI IS CALLED AS DETROITOF INDIA
  82. 82. Opportunities for All Stream Designations Offered HR HR Manager, Personnel Manager, Compensation Analyst. Marketing Sales Manager, Marketing Manager, Product manager Operations Production Manager, Purchase Manager, Inventory Manager Finance Financial Analyst, Risk Manager.
  83. 83. Conclusion The production is showing an increasing trend. Similarly the sale of vehicles is also showing an upward trend. Indian automobile industry has been able to achieve high scores on the various components and this has positive impact. Automobiles led to strong demand due to signs of revival in economy and increasing trend in hiring especially organizations decisions will describe how the companies are placed within the industry and how they track new opportunities and innovations; ups and downs in growing markets, universal economic trends, and varying customer demand will confront companies to react in novel ways.
  84. 84. RECENT BUDGET 10% to 20% increased.
  85. 85. ANY QUESTION