AUTOMOBILE

INDUSTRY IN
INDIA
Presented byRaghvendra pratap
Nishant kumar oraon
Randhir kumar

HISTORY
The first car ran on India's roads in 1897. Until the 1930s, cars were imported

directly, but in very small numbers.

An embryonic automotive industry emerged in India in the 1940s.Hindustan

was launched in 1942, long-time competitorPremier in 1944. They built GM

and Fiat products respectively.
Mahindra & Mahindra was established by two brothers in 1945, and began

assembly ofJeep CJ -3A utility vehicles.

Following theindependence, in 1947, the Government of India and the

private sector launched efforts to create an automotive component

manufacturing industry to supply to the automobile industry.
In 1953 an import substitution programme was launched, and the import of

fully built-up cars began to be impeded.

By the 1980s, the automobile market was still dominated byHindustan

andPremier , who sold superannuated products in fairly limited numbers.

During the eighties, a few competitors began to arrive on the scene.

LAND MARK OF INDIAN

AUTOMOBILE INDUSTRY
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-Jamsetji Tata
1905 First Women to drive a car in India- Mrs. Suzanne RD Tata
1945 Tata Motors
1947 Mahindra &Mahindra Limited
1981 Maruti Suzuki
1944 Mercedes-Benz
1995 Ford Motor Company
2005 BMW
2007 Audi
2009 Land Rover and Jaguar

MAJOR PLAYER OF
PASSENGERS CAR
Maruti Suzuki

Hyundai India
TATA motors
Mahindra & Mahindra
Toyota
GM
Ford
Honda
Volkswagen
Nissan

MARUTI SUZUKI
Maruti Udyog Limited, is an automobile manufacturer in India.It is a

subsidiary of Japanese automobile and motorcycle manufacturerSuzuki.

Originally, 18.28% of the company was owned by theIndian government,

and 54.2% by Suzuki of Japan.

Maruti Udyog Limited (MUL)was established in February 1981, though

the actual production commenced in 1983 with the Maruti 800, based on
theSuzuki Alto kei car.
Its first manufacturing facility was established in Gurgaon. Afterwards one

more manufacturing facilities was established in Manesar ,Haryana.

Today, Maruti Suzuki alone makes 1.5 million cars every year. Thats one

car every 12 seconds.

Maruti offer 17 brands and over 150 variants ranging from the people's car

Maruti 800 to kizashi which costs around 18 lakhs.

BRANDS

SWOT ANALYSIS
Strengths

Maruti Udyog limited (MUL)is in a leadership position in the market with a market share of

45.4%.
Strong Brand Value and Loyal Customer Base are big strengthsfor MUL.
There are around 15 vehicles in Maruti Product portfolio. Has good product lines with good fuel

efficiency like Maruti Swift, Diesel, Alto etc.

Major strength of MUL is having largest network of dealers and after sales service centers in

the country.
MUL is the first automobile company to start second hand vehicle sales through its True-value

entity.
Weaknesses
Low interior quality inside the cars when compared to quality players like Hyundai and other

new foreign players like Volkswagen,Nissan etc.

Government intervention due to having share in MUL.
Younger generations started getting a great affinity towards new foreign brands
Maruti hasnt proved itself in SUV segment like other players.

Opportunities
MUL has launched its LPG version of Wagon R and it was a good move.
MUL can start R&D on electric cars for a much better substitute of the fuel.
Marutis cervo 600 has a huge potential in tapping the middle class segment and act as a strong

threat to Nano.
DZire from Maruti has captured the market share and is expected to create the same magic as

Maruti Esteem(currently not available).

Export capacity of the company is giving new hopes in American and UK markets.
Economic growth of the country is constantly increasing and the government is working hard to

increase the gdp to double digit.

Threats
MUL recently faced a decline in market share from its 50.09% to 45.4 % in the previous year.
Major players like Maruti Suzuki, Hyundai, Tata has lost its market share due to many small

players like Volkswagen- polo. Ford has shown a considerable increase in market share due to its
Figo.
Tata Motors recent launches like Nano 2012, Indigo e-cs are imposing major threats to its

respective competitors segment.

China may give a good competition as they are also planning to enter into Indian car segment.
Launch of Hyundais H800 may result in the decline of Alto sales.

HYUNDAI INDIA
Hyundai Motor India Limitedis a wholly owned subsidiary of

theHyundai Motor CompanyinIndia. It is the 2nd largest automobile

manufacturer in India.
Hyundai Motor India Limitedwas formed on 6 May 1996 by theHyundai

Motor CompanyofSouth Korea.

HMIL's first car, theHyundai Santrowas launched on 23 September 1998

and was a runaway success. Within a few months of its inception HMIL
became the second largest automobile manufacturer and the largest
automobile exporter in India.
HMILs manufacturing plant near Chennai claims to have the most

advanced production, quality and testing capabilities in the country.

To cater to rising demand, HMIL commissioned its second plant on February

2008, which produces an additional 300,000 units per annum, raising

HMILs total production capacity to 600,000 units per annum.
The

two
manufacturing
plant
of
Sriperumbudur,Kanchipuram district,Tamil Nadu.

Hyundai

are

in

BRANDS

SWOT ANALYSIS
Strengths

Hyundai India has such a brand equity that it is almost assumed to be an Indian

brand, with lot of good accolades for being Indias second most selling brand next to
MUL in market share
Hyundai Motor India limited is the largest car exporter from Asian Market which

showed a 10% growth compared to last FY

The domestic sales is increasing at an average rate of 19.1%
HMIL is known for its quality products which has better performance and it has

constantly been ahead in the race with Maruti Udyoglimited in many parameters
Weakness
HMIL took a long time to gain the market share as its not the first mover in India
In terms of most reliable and trusted brand; Maruti is more strong in Indian

subcontinent.
Spare parts of Hyundai vehicles are comparatively priced higher and spare parts do

not have PAN India presence

In SUV segment both Tucson and its next model Santa Fe didnt make a major impact

Opportunity
SIAM Society of Indian automobile Manufacturers, have stated that there is steady

increase in Car sales contributing a valuable share in Indias Gdp.

The export markets growth rate is 22.30% compared to last fiscal year.
The saving consumption pattern of India is an added advantage for any segment doing

business in India. This was one of the major reason for Indian market to survive amidst
global recession.
There is more scope of HMIL to enter into small car segment as its has dedicated R&D

plant in Hyderabad, India. Hyundai is one of the very few companies that has widest
R&D network across the world located in Korea, Europe, India, US, Japan.
Threats
Though Hyundai claims itself to have no direct competitors other than MUL, there are

Indian players like Tata, Mahindra imposing a strong threat for Hyundai Motors India to
expand its product category.
Foreign Direct Investments flowing in Indian automobile space are not good signs for

already existing Giants like MUL and Hyundai.

Almost all major automobile players have started invading India to open up their market

and their manufacturing plant in India.Chennai is referred to as the Detroit of Asia!

Hyundai faced a slight decline in market share due to tough competition from Fords

Figo and Volkswagen- Polo.

TATA MOTORS
Tata Motors Limited(formerlyknown as TELCO, short forTata

Engineering and Locomotive Company) is an

Indianmultinationalautomotive manufacturing company headquartered
inMumbai, Maharashtra, India and it is a subsidiary of theTata Group.
Tata Motors has auto manufacturing and assembly plants in

Jamshedpur,Pantnagar, Lucknow,Sanand,DharwadandPunein India, as well

as in Argentina, South Africa, Thailand and the United Kingdom.
It has research and development centres in Pune, Jamshedpur, Lucknow and

Dharwad, India, and in South Korea, Spain, and the United Kingdom.
Tata Motors' principal subsidiaries include the British premium car

makerJaguar Land Rover(the maker of Jaguar, Land Rover and Range Rover
cars) and the South Korean commercial vehicle manufactuerTata Daewoo.

CONTD

Tata has joint venture withFiat which manufactures automotive components and Fiat

and Tata branded vehicles.

Founded in 1945 as a manufacturer oflocomotives, the company manufactured its first

commercial vehicle in 1954 in a collaboration withDaimler-Benz AG, which ended in

1969.
Tata Motors entered the passenger vehicle market in 1991 with the launch of theTata

Sierra, becoming the first Indian manufacturer to achieve the capability of developing a
competitive indigenous automobile.
In 1998 Tata launched the first fully indigenous Indian passenger car, theIndica, and in

2008 launched theTata Nano, the world's cheapest car.

Tata Motors acquired the South Korean truck manufacturerDaewoo Commercial

Vehicles Companyin 2004 and purchased Jaguar Land Rover fromFordin 2008.

BRANDS

SWOT ANALYSIS
Strengths

Wide & extensive distribution and service network.

Good market penetration in the taxi & rental segment.
Many associations like Jaguar Land Rover, Hispanso, Macropolo etc which

increases international presence.

More than 60,000 employees.
Highly diversified product portfolio.

Weakness
Sometimes faces alleged quality and durability issues.
Not much customer engagement programs and activities.

Opportunities
Expanding automobile market and available space for competitors.
Increasing per capita income and purchasing capability of potential

customer base.
Leveraging customer engagement experience to acquire new customers.
Leveraging mergers and acquisitions to acquire newer technology.
Augmenting the distribution and service network in various countries.

Threats
Increasing fuel costs.
Competition from other big automobile giants.
Competitive products offering same level features at a lesser price.
Product innovations and frugal engineering by competitors.

MAHINDRA & MAHINDRA

Mahindra & Mahindra Limited(M&M) is an Indian multinational automobile.

It is one of the largest vehicle manufacturers by production in theIndia.

The company was founded in 1945 inLudhiana as Mahindra & Mohammed by

brothers K.C. Mahindra andJ.C. Mahindra andMalik Ghulam Mohammed.

It eventually saw business opportunity in expanding into manufacturing and

selling larger MUVs, starting with assembly under licence of theWillysJeepin

India.
Soon established as the Jeep manufacturers of India, the company later

commenced manufacturinglight commercial vehicles (LCVs) and

agriculturaltractors.
Mahindra & Mahindra is a key game player in the utility vehicle manufacturing

and branding sectors in theIndian automobile industry with its flagship UV

Scorpio it swiftly exploits India's growing global market presence in both the
automotive and farming industries.
M&M also has controlling stake inREVA Electric Car Companyand acquired

South Korea'sSsangYong Motor Companyin 2011.At present M&M has 70%

share of SsangYong Motor Company.

BRANDS

SWOT ANALYSIS

Strength

Mahindra has been one of the strongest brands in the Indian automobile

market.
Mahindra group give employment to over 110,000 employees.
Excellent branding and advertising, and low after sales service cost.
Sturdy SUVs good for Indian roads and off-road terrain.

Weakness
Mahindras partnership with Renault did not live up to international quality

standards through their brand Logan.

Opportunity
Developing hybrid cars and fuel efficient cars for the future.
Tapping emerging markets across the world and building a global brand.
Fast growing automobile market.
Growing in the market through electric car Reva (controlling stake) and

entry into two-wheeler segments.

Threat
Government policies for the automobile sector across the world.
Ever increasing fuel prices.
Intense competition from global automobile brands.
Substitute modes of public transport like buses, metro trains etc.

TOYOTA

Toyota is 7th largest automobile manufacturer of world.

Toyota motor corporation is headquartered in toyota city, Aichi.
Toyota has annual sales of 397.05 billion yen.
Produces 5.5 million vehicles every year.
Toyota in India operate as a joint venture between Kirloskar group and

Toyota motors corporation.

In India Toyota Kirloskar Motor was established in 1997.
In India its production unit is in Bangalore. And its daily production capacity

is 245 units.
With over 30 million sold, theToyota Corolla is one of the most popular and

best selling cars in the world.

BRANDS

SWOT ANALYSIS
Strengths
high profitability and revenue.
high growth rate.
existing distribution and sales networks.
experienced business units.
Weaknesses
future debt rating.
future profitability.
cost structure.
Productivity.
competitive market.
brand portfolio.

Opportunities

venture capital.
growth rates and profitability.
growing economy.
global markets.
new markets.
income level is at a constant increase.

Threats

price changes.
rising cost of raw materials.
financial capacity.
growing competition and lower profitability.
increasing rates of interest.
government regulations.
external business risks.

GENERAL MOTORS
General

Motors Company, commonly known asGM, is an American

multinational corporation headquartered inDetroit, Michiganthat designs,
manufactures, markets and distributes vehicles and vehicle parts and sells
financial services.

General Motors produces vehicles in 37 countries under ten brands,

includingChevrolet,Buick,GMC,Cadillac,Holden,Opel,Vauxhall,Wuling,Baoj
un,Jie Fang,UzDaewoo.
General Motors led global vehicle sales for 77 consecutive years from 1931 to

2007, longer than any other automaker, and is currently among the world's
largest automakers by vehicle unit sales.
General Motors India Private Limitedis a partnership betweenGeneral

MotorsandSAICthat is engaged in the automobile business inIndia.

General Motors India started its journey in 1996 in India.
GMIPL operates vehicle manufacturing plants inHalol,GujaratandTalegaon

Dabhade,Maharastra, It maintains headquarters inHalolandGurgaonand a

large technical center inBangalore.

BRANDS

SWOT ANALYSIS
Strength

Research and development in the automobile segment.

Efficient human resource management as it has over 300,000 employees

globally.
Chevrolet is present in 6 continents and has a prominent presence in

countries like USA, Canada, China, India, Japan, Middle East, Euope,
Australia etc.
Has a huge variety of models ranging from hatchbacks to SUVs.
Chevrolet is actively present in international racing competitions like

NASCAR.
Weakness
Chevrolet brand was severely affected by bankruptcy of General Motors
Intense competition from international brands like Honda & Toyota who

Opportunity
Developing hybrid cars and fuel efficient cars for the future.
Tapping emerging markets across the world and building a global brand.
Fast growing automobile market.

Threat
Government policies for the automobile sector across the world.
Ever increasing fuel prices.
Intense competition from global automobile brands.
Substitute modes of public transport like buses, metro trains etc.

FORD
TheFord Motor Company(also known as simplyFord) is an

Americanmultinationalautomaker headquartered inDearborn, Michigan.

It is described byForbesas "the most important industrial company in the history

of the United States.

Ford India Private Limitedis a wholly owned subsidiary of theFord Motor

CompanyinIndia.
The modernFord India Private Limitedbegan production in 1996, although the

roots trace back to 1907 when theModel Awas launched.

Ford India Private Limited began production in 1926, but was shut down in 1954

as the company was in loss.

Production began again with the joint venture Mahindra Ford India Limited (MFIL)

in October 1995, a 50-50 venture withMahindra & Mahindra Limited.Ford Motor

Companyincreased its interest to 72% in March 1998 and renamed the company
Ford India Private Limited.
FIPL's main manufacturing plant located inMaraimalai Nagar, 45km

fromChennai.

BRANDS

SWOT ANALYSIS
Strength

One of the early market entrants and oldest car manufacturer.

Offers a wide range of cars to different set of customers.
Provides exclusive product features taking into consideration the targeted

segments.
Invested efforts to go green in order to help the environment.

Weakness
Adversely affected by the global recession & Euro crisis.
Hasn't completely tapped emerging economies as compared to some other

automobile giants.

Opportunity
Expanding automobile sector.
Improving business scenario due to expansion of consumer base.
Capitalizing on the models exclusively designed for different markets e.g.

ford Ikon for India.

Threat
Competition from major international players.
Increasing usage of public transport and increased fuel costs.
Production problems in local plants due to labour and similar issues.

HONDA

Honda Motor Company, Limitedis a Japanesepublic multinational

corporation primarily known as a manufacturer of automobiles and

motorcycles.
Honda has been known as world's largest manufacturer ofinternal

combustion enginesmeasured by volume, producing more than 14 million

internal combustion engines each year.
Honda Cars India Ltd.(HCIL) is a subsidiary of theHondaof Japan for the

production, marketing and export of passenger cars in India.

Formerly known as Honda Siel Cars India Ltd, it began operations in

December 1995 as a joint venture between Honda Motor Company and

Usha International of Siddharth Shriram Group.
In August, 2012, Honda bought out Usha International's entire 3.16

percent stake for1.8 billion in the joint venture. The company officially
changed its name to Honda Cars India Ltd. (HCIL) and became a 100%
subsidiary of Honda.
It operates production facilities atGreater NoidainUttar Pradeshand

BRANDS

SWOT
Strength

Excellent branding, advertising and after sales servicing.

Honda has over 180,000 employees globally.
Production System that is refined over the years along with High and

powerful research and development R&D.

High brand equity and brand loyalty amongst customers.

Weakness
Cost structure of Honda is high as compare to other automobile

manufacturers.
Caters to only the upper middle segment which limits the customer base.
Honda has to recall a few of their models for corrective measures which

caused a lot of hue and cry.

Opportunity
Developing hybrid cars and fuel efficient cars for the future.
Tapping emerging markets across the world and building a global brand.
Fast growing automobile market.

Threat
Government policies for the automobile sector across the world.
Ever increasing fuel prices.
Intense competition from global automobile brands.
Substitute modes of public transport like buses, metro trains etc.

LUXURY CAR SEGMENT

This segment includes cars which are worth 50 lakhs or more.

Major players are of this segment are BMW
Mercedes
Audi
Rolls Royce
Bentlee

Luxury market in India is gradually gaining attention.

The luxury market is growing at a rapid pace in India with a compounded

annual growth of 25%.

At US$4.76 billion, the luxury market in India is set to touch three times its

current size at US$14.72 billion by 2015.

The country has become the prime destination for top-notch global brands,

while many high-end luxury brands have quickly set up their shops here.

UPCOMING CARS OF 2014

TRENDS OF CAR INDUSTRY

IN INDIA

Only three decades back, Indian car buyers had just two models to choose from.

Both were local reproductions of European models that had disappeared from the
western markets soon after World War II.

The introduction of a tiny hatchback in 1983 by Maruti Suzuki, jointly promoted by

the Indian government and Japanese small car manufacturer Suzuki, was in many
ways a defining moment in the development of the Indian automobile industry.
Robust growth in middle class income levels and easier credit availability have

sustained demand growth for passenger cars. Most major global manufacturers
are already present in the country, while some of the domestic manufacturers are
entering overseas markets.
Despite increased competition, Maruti Suzuki, which is now majority owned by

Suzuki Motor Corp, remains the market leader in India with a share of over 45%.
Luxury passenger cars have seen excellent demand growth, especially in recent

years. However, the luxury segment now accounts for only about a percent of the
total passenger vehicle market. Mercedes Benz and BMW have almost identical
market shares while Audi has made rapid gains over the last year.

CONTD
India is the second fastest growing automobile market in the world after

China.
Passenger vehicle production during the period April 2010 to August 2010

increased by nearly a third from a year ago. For the year ending March
2011, passenger vehicle output is expected to exceed 2.5 million.
India is emerging as a major production base for small cars, with output

expected to reach 3 million units by 2016. The country is building a

reputation in designing and manufacturing low cost cars.