A Project

On

Impact of Make in India on Automobile sector

Submitted To

Rashtrasant Tukadoji Maharaj Nagpur University, Nagpur

Submitted in partial fulfillment of the requirement for the Award of the

Degree of Bachelor of Business Administration

Submitted By

Eklavya Bhongale

Under The Guidance Of

Mr. Hitesh Raicha

Department of Commerce, Management & Computers

2018-2019

Hislop College, Nagpur.

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 INDEX

SERIAL NO. PARTICULARS PAGE NO.

1. INTRODUCTION 3-5

2. COMPANY 6-8
PROFILE

3. OBJECTIVE 9

4. RESEARCH 10-11
METHODOLOGY

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5. BIBLIOGRAPHY

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 INTRO
DUCTION

MAKE IN INDIA
Make in India is an initiative launched by Government of India on 25 September 2014 to encourage
national as well as multi-national companies to manufacture their product in India and also increase
their investment. As per the current policy,100% foreign direct investment(FDI) is permitted in all 25
sectors, except for space industry(74%), defence industry(49%) and media of India(26%) Japan and
India had also announced a us$12 billion “Japan –India Make in India Special finance facility” fund to
push investment. After the launch, India received investment commitment worth (US$230 billion) and
investment inquiries worth(US$21 billion)between September 2014 to February 2016. As a result,
India emerged as the top destination globally in 2015 for foreign direct investment(FDI), surpassing
the USA and China, with US$60.1billion FDI. Several states launch their own Make in India initiative,
such as “Make in Odisha”, Vibrant Gujarat, “Happening Haryana” and “Magnetic Maharashtra”. India
received US $60billion FDI in FY 2016-2017.

Combined with other initiatives by the end of 2017, India rose 42 places
on Ease of doing business index, 32 places world economic forum’s Global competitiveness Index,
and 19 notches in the Logistics performance index.
This initiative converges, synergises and enables other important government of India schemes, such as
Bharatmala, Sagarmala, Dedicated Freight Corridors, UDAN-RCS, Bharat Broadband Network, Digital
India.
AUTOMOBILE INDUSTRY
Introduction
The Indian auto industry became the 4th largest in the world with sales increasing 9.5 per cent year-
on-year to 4.02 million units (excluding two wheelers) in 2017. It was the 7th largest manufacturer of
commercial vehicles in 2017.The Two Wheelers segment dominates the market in terms of volume
owing to growing middle class and a young population. Moreover, the growing interest of the
companies in exploring the rural markets further aided the growth of the sector. India is also a
prominent auto exporter and has strong export growth expectations for the near future. Automobile
exports grew 20.78 per cent during April-November 2018. It is expected to grow at a CAGR of 3.05
per cent during 2016-2026. In addition, several initiatives by the Government of India and the major
automobile players in the Indian market are expected to make India a leader in the two-wheeler and
four wheeler market in the world by 2020.

Market Size
Domestic automobile production increased at 7.08 per cent CAGR between FY13-18 with 29.07
million vehicles manufactured in the country in FY18. During April-November 2018, automobile
production increased 12.53 per cent year-on-year to reach 21.95 million vehicle units.

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 Overall domestic automobiles sales increased at 7.01 per cent CAGR between FY13-18 with 24.97
million vehicles getting sold in FY18. During April-November 2018, highest year-on-year growth in
domestic sales among all the categories was recorded in commercial vehicles at 31.49 per cent
followed by 25.16 per cent year-on-year growth in the sales of three-wheelers.

Premium motorbike sales in India crossed one million units in FY18. . During January-September
2018, BMW registered a growth of 11 per cent year-on-year in its sales in India at 7,915 units.
Mercedes Benz ranked first in sales satisfaction in the luxury vehicles segment according to J D Power
2018 India sales satisfaction index (luxury).

Sales of electric two-wheelers are estimated to have crossed 55,000 vehicles in 2017-18.
Investments

In order to keep up with the growing demand, several auto makers have started investing heavily in
various segments of the industry during the last few months. The industry has attracted Foreign Direct
Investment (FDI) worth US$ 19.29 billion during the period April 2000 to June 2018, according to
data released by Department of Industrial Policy and Promotion (DIPP).

Some of the recent/planned investments and developments in the automobile sector in India are as
follows:

Ashok Leyland has planned a capital expenditure of Rs 1,000 crore (US$ 155.20 million) to launch
20-25 new models across various commercial vehicle categories in 2018-19.
Hyundai is planning to invest US$ 1 billion in India by 2020. SAIC Motor has also announced to
invest US$ 310 million in India.
Mercedes Benz has increased the manufacturing capacity of its Chakan Plant to 20,000 units per
year, highest for any luxury car manufacturing in India.
As of October 2018, Honda Motors Company is planning to set up its third factory in India for
launching hybrid and electric vehicles with the cost of Rs 9,200 crore (US$ 1.31 billion), its largest
investment in India so far.
Government Initiatives
The Government of India encourages foreign investment in the automobile sector and allows 100 per
cent FDI under the automatic route.Some of the recent initiatives taken by the Government of India are -
The government aims to develop India as a global manufacturing centre and an R&D hub.Under
NATRiP, the Government of India is planning to set up R&D centres at a total cost of US$ 388.5 million
to enable the industry to be on par with global standards

The Ministry of Heavy Industries, Government of India has shortlisted 11 cities in the country for
introduction of electric vehicles (EVs) in their public transport systems under the FAME (Faster
Adoption and Manufacturing of (Hybrid) and Electric Vehicles in India) scheme. The government will
also set up incubation centre for start-ups working in electric vehicles space.

Achievements
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 Following are the achievements of the government in the past four years:

Number of vehicles supported under FAME scheme increased from 5,197 in June 2015 to 192,451
in March 2018. During 2017-18, 47,912 two-wheelers, 2,202 three-wheelers, 185 four-wheelers and
10 light commercial vehicles were supported under FAME scheme.
Under National Automotive Testing And R&D Infrastructure Project (NATRIP), following testing
and research centres have been established in the country since 2015
International Centre for Automotive Technology (ICAT), Manesar
National Institute for Automotive Inspection, Maintenance & Training (NIAIMT), Silchar
National Automotive Testing Tracks (NATRAX), Indore
Automotive Research Association of India (ARAI), Pune
Global Automotive Research Centre (GARC), Chennai
SAMARTH Udyog – Industry 4.0 centres: ‘Demo cum experience’ centres are being set up in the
country for promoting smart and advanced manufacturing helping SMEs to implement Industry 4.0
(automation and data exchange in manufacturing technology).

Road Ahead

The automobile industry is supported by various factors such as availability of skilled labour at low
cost, robust R&D centres and low cost steel production. The industry also provides great opportunities
for investment and direct and indirect employment to skilled and unskilled labour.

Indian automotive industry (including component manufacturing) is expected to reach Rs 16.16-18.18

trillion (US$ 251.4-282.8 billion) by 2026. Two-wheelers are expected to grow 9 per cent in 2018.

COMPANY PROFILE

Maruti Suzuki India Limited(MSIL)

Maruti Suzuki India is an undisputed leader in the Indian automobile industry. Started its
journey in February 1981 as Maurti Udyog Limited, the company created history in the
Indian automobile market with its hugely popular four-wheeler model Maruti 800. The
company became the first Indian automobile company to manufacture one million

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vehicles in 1994. The company became Maruti Suzuki India Limited on September 17,
2007.

Maruti's average revenue for the year ending 2010-11 is US$7.13 billion. Maruti sold
83,306 units of vehicles in September 2009, comparing to 71,000 units in the same month
in the previous year (with a growth rate of 17.3%). It also exported 11,712 units during
September 2009, comparing to 6,318 units in the same month in the previous year (with a
growth rate of 85.4%).

Hyundai Motors India Limited(HMIL)

Hyundai Motor India Limited, founded in 1998 and a subsidiary of Korean auto giant
Hyundai Motor Company, is the second largest car manufacturer in India. It is also
country's largest passenger car exporter. Hyundai Motor came very close to the hearts of
the Indian auto lovers through its flagship model Santro.

After the recession, Hyundai Motor saw a growth rate of 25% in the domestic market.
During September 2009, HMIL sold 53,804 units, comparing to 46,218 units during
September 2008. In the domestic market, it sold 27,803 units in September 2009,
comparing to 22,311 during September 2008. The overseas sales during the same period
also grew up 9% as it sold 26,001 units in September 2009, comparing to 23,907 units
during the same month in the previous year.

Mahindra & Mahindra Limited(M$M)

Mahindra &Mahindra Limited is another auto-giant in India. A part of the Mahindra
Group, M&M is the largest SUV maker in the country. In September 2009, M&M
registered a domestic sale of record 26,921 units, comparing to 22,729 units in September
2008 (with an increase of 18.4%). On the other hand, it sold 15,296 units of UV in the
same period comparing to 10,641 units in September 2008 (with a whooping growth of
43.7%).

General Motors India Private Limited (GM India)-

General Motors India Private Limited is another top player in Indian automobile industry.
A wholly-owned subsidiary of the auto giant General Motors, GM India saw a Y-o-Y
sales growth of 49% in September 2009 with a sale of 7,654 units, comparing to 5,154
units in September 2008.

Hero Moto Corp Limited

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 In 2010, When Honda decided to move out of the joint venture, Hero Group bought the
shares held by Honda. Subsequently, in August 2011 the company was renamed Hero
Moto Corp with a new corporate identity.

Hero Honda Motors Limited, the joint venture between Hero Group and Honda, was the
biggest two-wheeler manufacturers in the world. It shook the Indian two-wheeler market
with its famous model Hero Honda Splendor, which became the largest selling
motorcycle in the world. It consistently sold more than 1 million units of Splendors every
year.

In 2008-09, Hero Honda sold about 3.28 million bikes and registered a net profit of `
1281.7 crore. It sold 4,01,290 units of two-wheeler in September 2009, comparing to
3,85,262 in September 2008. It already sold 11,83,235 units of two-wheelers in Q2 of
FY10 with a growth rate of 21.7% against the corresponding period of the previous year.

Bajaj Auto
Bajaj Auto is the second largest two-wheeler manufacturer in India. It is also the fourth
largest two and three-wheeler maker in the world. In September 2009, Bajaj Auto sold
249,795 units of two-wheelers, comparing to 218,494 units in September 2008 (with a
growth rate of 14.3%). During September 2009, it also registered a growth of 12.4% in
the domestic two-wheeler sales and 19.9% in two-wheeler export.

Honda Cars India Limited

Honda Siel Cars India Limited, a joint venture between the Japanese auto giant Honda
Motor Company Limited and the Indian company Siel Limited, started its operation in
December 1995. In September 2009, HSCI sold 5,794 units, comparing to 3,104 units in
September 2008 (with a growth rate of 86.7%).

Toyota Kirloskar Motor Private Limited(TKM)

Toyota Kirloskar Motor Private Limited is another top Indian automobile company. A
joint venture between the Japanese auto giant Toyota Motor Corporation and Kirloskar
Group, TKM has a number of car models including Innova, Corolla, Fortuner, Camry and
the Land Cruiser Prado. It sold 7,657 units in December 2009..

Hindustan Motors

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 Hindustan Motors is another top automobile company in India. It was once country's
largest car manufacturer before Maruti Udyog overpowered it. Its popular model
'Ambassador' has been extensively used as government limousine as well as taxi cab in
India.

OBJECTIVES OF THE STUDY

 Identify Make in India initiatives for automobile sector and investment proposals in automobile
sector recently.

 Analyze the impacts of Make in India initiatives on Automobile Sector’s growth.

 To estimate employment generation and its spin-off effect on the growth of the economy via
Automotive Ancillary sector.

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  To study the role played by distributors, fleet operators and opinion leaders in establishing brand
equity.

RESEARCH METHODOLOGY

Research Methodology is a set of systematic technique used in research. This simply means a guide
to research and how it is conducted. It describes and analysis methods, throws more light on their
limitations and resources, clarify their pre-supposition and consequences, relating their potentialities
to the twilight zone at the frontiers of knowledge.

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 Primary Data
It refers to the data that the investigator collects from the very first time. This type of data has not
been collected earlier by this or any other investigator before. A primary Data will provide the
investigator with the most reliable first hand information about the respondents. The investigators
would have a clear idea about the technology uses, the statistical units employed, the research
methodology and the size of sample technique.

Methods Of Primary Data Collection

 Direct Personal Interview
 Indirect Oral Interview
 Mailed Questionnaire
 Schedules

Secondary Data
It refers to the data that the investigator collects from another source. Past Investigators or agents
collect data required for the study. The investigator is the first researcher or statistical to collect
the data. Moreover, the investigator does not have a clear idea about the intricacies of the data.

Methods Of Secondary Data Collection

 Internet
 Business Journals
 Libraries
 Social Books

The study is based on the collection of both primary and secondary type of data decision making.
Thus, the primary data was collected using structured interviews of the professionals from users and
vendors organizations; however, for the collection of secondary data, I have used Internet based
discussion forums, Enterprise Resource Planning system product information from suppliers and some
company specific material such as annual report, accounting and auditing report. The study also focused
on recent material that could be accessed. In order to get access to the latest development in this area a
number of articles published in academic journals and trade magazines have also been collected and
properly cited.
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 BIBLIOGRAPHY
Bibliography is defined as a list of the books and articles that has been used by someone when
writing a book or articles.

Web Sites
http://shodhganga.inflibnet.ac.in/bitstream/10603/176835/10/06_chapter%201.pdf

https://www.ibef.org/industry/india-automobiles.aspx

http://www.siamindia.com/statistics.aspx?mpgid=8&pgidtrail=9

https://www.autobei.com/autoreports/automotive/indian-automobile-industry-analysis-fy-
2018-and-outlook/
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