Auto Mobile Industry In India

Overview of Industry
Automobile Industry includes all of the following: i. Passenger Vehicles: Scooters, Motorcycles, Cars, SUV, MUV.

ii. Commercial Vehicles: Buses, LCVs, MCVs and HCVs.

iii. Other Vehicles: wheelers.

Tractors,

Trailers,

Three

Overview of Industry
Indian Auto Mobile Industry is 6th largest in the world, with an annual production of more than 4.7 million units in 2010. As of 2010, India was home to 40 million passenger vehicles. Estimated turnover of Indian Automobile industry was $ 40 Billion in 2010, it was estimated to reached $ 150 Bn by 2016. Accounts for about 22% of manufacturing sector. Employment: 600000+ direct + 12.5 mn indirect Accounts for about 5% of Indian GDP. Auto-Mobile industry exported 2,339,333 vehicles in 2010-11. Among the emerging markets, India continues to have one of the lowest car density, estimated at 13 cars per 1,000 people compared to other markets such as China (45), Brazil (160), and Indonesia (42).

Sales of Various Types of Vehicles

Two Wheelers 76% Passenger Vehicles 16% Commercial Vehicles 8%

Two-Wheeler Market

Motorcycles 76% Scooters 18% Mopeds 6%

Current Trends in Two-Wheelers

The Indian two-wheeler industry has recorded sales volume of 13.4 million units in 2011-12, a growth of 14% over the previous year. Here increasing fuel prices has helped in increasing sales, because people tend to buy less cars and more two-wheelers. Theres also a trend shifting towards scooters, scooter sales has grown by more than 25% in 2011-12.

Companies are also trying to woo young-women from urban or rural by launching gender specific products and by having top bollywood female actors in their adds.

Major Players in Two-Wheeler Industry

Hero Moto Corp. Bajaj Auto Ltd. Honda Scooters and Motorcycles India Limited Suzuki Motorcycle India Pvt Ltd. India Yamaha Motor Pvt Ltd. Royal Enfield Motorcycles Ltd.

Passenger Car Market

Small Car Market Share (Including Entry Level and Premium) 58% Other Cars (SUV, MUV) 42%

Current Trends in Car Market

In 2010-11, passenger car market total sales was 2.5 million vehicles. India was one of the few markets globally to buck the recessionary trend and record a strong 25.6% volume growth in FY10. Growth momentum continues with first eleven months of FY11 registering a growth of 29.8%. Strong economic growth, rising disposable income levels, favorable demographics, easy financing environment and relatively low car penetration have been the prominent growth drivers for the industry. Small Car market was particularly booming with every national and international player wanted to have some chunk of this growing market. With deregulation of Petrol, theres a big gap in prices of Petrol and Diesel. So customers are mostly tend to buy a diesel car than a petrol car. But now due to global recession, high inflation, interest rates and increasing crude oil prices have put a break on this booming market, and sales were stagnant in most part of FY12.

Major Players in Passenger Car Industry

Maruti Suzuki Pvt Ltd. Tata Motors General Motors India Ford India Ltd. Hyundai Motor India Ltd. Mahindra and Mahindra Honda Motor Co Ltd.

Commercial Vehicle Segment

Sales

M&HCV's 48%
LCV 52%

Current Trend in Commercial Vehicles

Commercial Vehicle Industry had posted a very robust growth over last two fiscal years FY10 and FY11, with annual increase of about 30%. But in FY12 growth in commercial vehicle industry slowed down. During Apr-Nov 2011, the domestic industry posted a growth of 20.0% on YoY basis.

There is a boom in LCVs, with 29.3% growth, but demand is sluggish for MCVs and HCVs with only 9.4% increase in demand.

Major Players in Commercial-Vehicle Industry

Tata Motors Eicher Motor Mahindra and Mahindra Swaraj Mazda Ltd Ford Tractors Sonalika Tractors

Mergers and Acquisitions

Hindustan Motors Ltd. has been acquired by Amer Investments (Delhi) Ltd on 19th-Jun-2012. Suzuki Power train India Ltd. has been acquired by Maruti Suzuki Ltd on 12th-Jun-2012. Hero Investments Pvt. Ltd. has been acquired by Hero MotoCorp Ltd on 04th-Jun-2012. S M L Isuzu Ltd acquired by Antique stock broking Ltd. on 19th-Apr-2012.

THANKS

Group-4, Section-C

Reference
ICRA SIAM Economic Times