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Automobile
Porter’s Five Forces Trend and Forecasts
Dealers
1
Automobile sector
2
Automobile Industry
world by 2026 8
10.00%
7
• Million Automotive market by 2026
6 5.00%
(PV+CV+2wheelers) 5
0.00%
4
3
Automobile dealers
• Link between the large automobile manufacturers and the end consumers
• Facilitate the customers’ requirements
• Sales of vehicles
• Replacement parts
• Complete bundle of services
• The sales patterns of highly competitive dealership industry:
• Financial health of consumers
• Economic conditions of the country
• Auto industry popularity of vehicle models
• The industry is ever growing (sales in 2018-2019 as compared to 2017-2018):
• Passenger vehicles increasing by 2.7%
• Three-wheelers by 10.27%
• Two-wheelers by 4.86%
4
Car Segments
• Increase of retailers in this segment with lot of forward and backward
integration happening
• Majority buyers of these vehicles are from Tier-1 and Tier-2 cities
5
Used car market
• Increase of retailers in this segment with lot of forward and
backward integration happening
• Key growth drivers of the market is the revision of the GST rate
on used cars from 28% to 12-18%
• Majority buyers of these vehicles are from Tier-1 and Tier-2 cities.
6
Passenger Vehicles:
Domestic Sales
Segment growth
Commercial Vehicles:
Domestic Sales
Segment growth
2-wheeler Vehicles:
Domestic Sales
Segment growth
Segments
Passenger Vehicle market
7 15.00%
Commercial vehicle market
6 10.00%
5
5.00%
4
0.00%
Consumer vehicle market
3 2,500,000 25.00%
-5.00%
2 20.00%
2,000,000
1 -10.00% 15.00%
1,500,000
0 -15.00% 10.00%
2017 2018 2019 2020f 2021f 2022f 2023f 2024f 2025f 2026f 2027f 2028f
5.00%
1,000,000
Vehicle sales (mn) Vehicle sales (%yoy)
0.00%
500,000
-5.00%
0 -10.00%
2019 2020f 2021f 2022f 2023f 2024f 2025f 2026f 2027f 2028f
10