Indian automobile industry 2015

PRESENTED BY:
SYED SALMAN AHMAD RIZVI
MUHAMMED NIYAS NM
MOHD SHAHNAWAZ
UNDER THE KIND SUPERVISION OF:
Dr. MOHD ADIL Sir
(ALIGARH MUSLIM UNIVERSITY CENTRE KERALA)

INTRODUCTION
HISTORY
GEOGRAPHIC LOCATION
SIAM
RECENT INVESTMENTS
SEGMENTATION
MARKET SIZE
TOP FUEL EFFICIANT CARS
TOP SUVS
PLAN OF PRESENTATION

INTRODUCTION
 Indian automobile industry is one of the most vibrant
industries.
 The industry contributed 7% of the country’s GDP. It
comprises passenger cars Two wheelers, Three
wheelers and commercial vehicles.
 It is the 7th largest Industry in the world after China,
Europe, USA, Japan, Germany and South Korea. with
annual production of 4 million vehicles.

 The first car on Indian road was in
1897.The owner was Mr foster.
 The first Indian who owns the car was
Jamshedji Tata in 1901.
 Hindustan Company established in 1942.
HISTORY

Domestic motor vehicles sales for 2013
14.36
1.81
0.69 0.5
Sales {millions}
2 Wheelers
Passenger Vehicle
Commercial
Vehicles
3 Wheelers

Automotive Companies in India
Major Multi-national companiesMajor Indian Companies

 SIAM and automotive components manufacturer
association of India (ACMA) are the two apex bodies
appointed by the government of India to work for the
development of the automobile industry.
 SIAM is the important channel of communication for
the automobile industry with government, national,
and international organisation.
 SIAM is actively participates in formulation of rules
regulation and policies related to the automotive industry.
SIAM (society of Indian automobile and
manufacturer)
PRESIDENT
VIKRAM S KILOSKAR
(VICE CHAIRMAN, TOYOTA)

 BMW Invested US$ 1 billion in India for manufacturing its
SUVs X5, X5 i drive30D. Earlier it was totally imported.
 Japan Izusu motors invested Rs.3000 crores in Chennai
plant to manufacture its Pick up vehicles.
 Toyota kirloskar invested Rs.500 Crores for manufacturing
parts and engines for Sedan and hatchback cars.
 Volkswagen invested Rs.56 crores for manufacturing parts of
Polo and Vento for exports.
RECENT INVESTMENTS

The automobile manufacturing industries are located in 3 zones of India North,
West and South
 NORTH ZONE
HARYANA (HERO,YAMAHA,MARUTI SUZUKI )
NOIDA (HONDA)
 WEST ZONE
MAHARASHTRA (GM,VOLKSWAGON,SKODA,MAHINDRA,TATA,MERCEDES
BENZ AUDI,FIAT AND FORCE MOTORS)
GUJRAT (AMW,TATA NANO PLANT)
 SOUTH ZONE
CHENNAI (FORD,HYUNDAI,MITSUBIDHI,NISSAN,BMW AND DUTSUN)
BANGALURU (TOYOTA)
Geographic location

 SIAM divides the Indian passenger cars in the following
segment. It is the technical segmentation on the basis of
length.
CAR SEGMENTS IN INDIA
Car segment Lenth(mm) Car model
A1 Upto 3400mm Nano
A2 3401to 4000mm Alto,i10,Wagon R
A3 4000 to 4500mm City, Dzire, Manza
A4 4500 to 4700mm Corolla, Optra
A5 4700 to 5000mm Accord, Camry, Sonata
A6 More than 5000mm BMW 7,Mercedes S
B1 VANS Omni, Versa,Enjoy
B2 MUV/MPV Innova, Xylo, Tavera
SUVs SUVs Safari, Scorpio, Pajero

Car segment Price(Lakhs) Body type Models
A Upto 3.5 lakhs Mini Hatchback Alto,Nano,Eon
A1 4 to 8 lakhs Hatchback Wagon R,i20,Figo
B1 varries Vans Omni,versa,Enjoy
B2 varries MUV/MPV Innova,tavera
C1 7 to 10 laks Sedan City,Sunny,Etios
D1 10 to 25 lakhs Luxury Sedan Corolla,Optra,Fluence,Accord,Ca
mry
D2 Above 25
lakhs
premium Sedan BMW AUDI Mercedes Volvo
SUVs Varries SUVs Safari,Scorpio,Pajero,Fortuner
Segmentation on the basis of price

 MINI HATCHBACK
 HATCHBACK
 SEDANS
CAR BODY TYPES

 MUV/MPV
 VANS
 SUVs
Contd….

 CONVERTIBLES
 ROADSTERS
 CROSSOVERS
Contd…

 Auto expo is the Indian automotive show held every after two years in New
Delhi and NCR region.
 The first Auto Expo was held in the year 1986.
 It is the Asia’s largest and worlds second largest motor show.
 It is the showcase of India and world automobiles industries.
 It is organized jointly by SIAM, ACMA ,and CII with the help of various
sponsors.
AUTO EXPO

Production Cars
 Maruti Celerio
 Audi A3
 BMW 3series
 Mercedes GLA class
 Maruti XA Alpha
 Hyundai iX 25
 Datsun Go
 Maruti Suzuki Ciaz
 Honda Mobilio
 Tata safari Laddakh
Cars launches in auto Expo 2014
Concept cars
 Nissan GTR
 Fiat Aventura
 BMW I8
 Bajaj U Car
 Audi Sports Quatro

Tata Nano
25.4 KMPL
Maruti Suzuki Alto
22.7 KMPL
21.1 KMPL
India most fuel efficient cars
(as per ARAI)

 Sales in units 2013
Contd…
0
20000
40000
60000
80000
100000
120000
Alto Eon Nano
Sales 2012
Sales 2013

Top 5 Sedans Sales 2013
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
Verna Honda City Vento Rapid
2012
2013
Sales in units

0
20000
40000
60000
80000
100000
120000
Bolero Innova Omni Eco
2012
2013
Top MUV/MPV Sales 2013

0
10000
20000
30000
40000
50000
60000
Scorpio XUV 500 Fortuner Safari
20122
2013
Top five SUVs sales 2013

Renault Duster:
 Launch in July 2012
 Booking in first two month – 18000
 Waiting period - 4 months
 Sales in 2013 – 51411 units
Ford Ecosport:
 Launched on June 2013
 Booking within 17 days – 30000
 Waiting period – 6 months
 Sales in 2013 – 33702 units
contd…

Maruti Xa Alpha
Concept was shown in auto Expo 2012.
Comming: End 2015
Estim: Rs 7.5-10 lakhs
Compititors:Duster,Ecosport etc.
Hyundai iX25
Coming: 2015
Estim: Rs 10 lakhs
Compet:Duster,Ecosport,Terrano etc.
UPCOMING CARS IN INDIA

Ford Figo plus
 Coming: early 2015
 Estim: Rs 5-7.5 lakhs
 Compet:Dzire,Amaze,Xcent.
Honda Accord
 Coming: Mid 2015
 Estim:Rs 22-25 lakhs
 Compet: camry,superb,passat.
Contd…

 Mercedes Benz CLA class.
 Coming :March 2015
 Estimate: Rs 27-32 lakhs
 Compet: Audi A3,BMW 3s
Contd…

Maruti’s new Alto K10
 Priced at Rs 3.82 lakhs
 Alto K10 was launched on
3 November 2014
 Automatic gear shift
 Improved fuel efficiency of 15%
 World cheapest automatic car
Recent Launch

 Input cost
 Fuel prices
 Interest rates
 Environmental Regulations
 Government Taxes
 Distribution channels
Factor affecting the growth of
auto industry

Indian Commercial Vehicle
Industry
LEADING INDIAN COMMERCIAL VEHICLES BRANDS:
 ASHOK LEYLAND
 TATA MOTORS
 MAHINDRA
 FORCE
 AMW
 EICHER

 Growth in Economic Activity
 Road Network Development
 Low interest rates.
 Wide variety and easy availability of
Financing options.
 High sensitivity to Fuel prices
Key Market Drivers

 TATA Motors has improved slightly but continues to
remain in negative territory as it sold 27,249 units
in the domestic market reporting a 17% fall.
 TATA saw its medium and heavy commercial
vehicles portfolio rise 30%at 10532 units in
October 2014, commercial vehicle sales were up
8.59% in september 2014.
 Sales decline 10.14% from april to september 2014
TATA MOTORS

 Largest commercial vehicle manufacturer, reported as
23.1%growth in October 2014 sales at 8375 units as
against 6803 units in the year 2013
 Its medium and heavy commercial vehicle reported
sales 5838 units while light commercial vehicle portfolio
reported sales of 2537 units
ASHOK LEYLAND

 Strong service network with 940 touch points (and growing)
 48 strong 3S Dealership going up to nearly 100 in the next 12 to 18
months
 Sprawling dealership reflects Mahindra Navistar’s serious
commitment to CV Business
 The existing LCV and new HCV range to be sold and serviced from
new dealerships
 Offers products between 4.5 and 9 tonne and between 25 and 40
tonne, including Rigid Truck, Multi Axle truck, Tipper and Tractor
Trailer.
 Over 2500 HCVs on the roads; Crossed 10,000 LCVs sales per
annum
Mahindra

 Indian Commercial Vehicle Industry poised for major growth
phase
 •Despite challenges, the Industry catching up fast with global
trends & standards - both on technology and quality processes
 Indian auto component Industry well positioned to grow at 14%
(CAGR)
 Indian Auto Industry likely to retain Low cost advantage for a
sizeable period
 Attractive collaboration opportunities between Indian CV industry /
Auto component manufacturing with global OEMs and the Supply
Chain majors
 Great opportunity to partner & use India’s competitive advantages
for sourcing and setting up collaborative operations
The Future Outlook

 India is the 2nd largest manufacturer of 2-
wheelers in the world
 Industry started up in early 50s and The
Automobile Products of India(API) started
manufacturing in the country
 2-wheeler market was opened for foreign
countries in mid 1980s
 Bikes are the major segment of India, others
are scooters and mopeds
Introduction

 1983 – Joint Collaboration Agreement with Honda Motor Co. Ltd.
Japan and Hero was signed
 1985 - First motorcycle "CD 100" rolled out.
 1987 - 100,000th motorcycle produced.
 1994 - New motorcycle model - "Splendor"
introduced. 1,000,000th motorcycle produced.
 1999 - New motorcycle model 150 cc segment- "CBZ"
introduced.
 2003 – Hero Honda becomes the first Indian Company to cross
the cumulative 7 million sales mark
 2011 - New licensing arrangement signed between Hero and
Honda (Hero Honda is renamed as Hero)
MILESTONES

Bajaj Auto Ltd
TVS Motor Company
Honda Motorcycle and Scooter India (Pvt.) Ltd
Hero MotoCorp India Limited
Suzuki Motor Corporation
Royal Enfield Motors India Ltd
Yamaha Motors India Pvt. Ltd
Kinetic Motor Co. Ltd
Monto Motors
LML (India) Limited
Two Wheeler Manufacturers

40%
23%
20%
12%
3%
2%
Sales % 2013
Hero
Honda
Bajaj
TVS
Yamaha
Mahindra

0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
Hero Honda TVS Bajaj Yamaha Suzuki
2013
2014
Sales in the month April to June

0
500000
1000000
1500000
2000000
2500000
Bikes Sales in 2013 (units)

0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
Activa Maestro Pleasure Access Vego Aviator
Scooter Sales (Units) 2013

Strength
 Easy availability of spare parts, cost of parts is
low.
 Has a high brand loyalty amongst the customers
 Innovation in fuel efficient bikes in 150cc
segments
 Mergers from international brands
 Exports of bikes is increasing
SWOT Analysis of industry

Weakness
 Not getting the technical expertise from
 Similar type of models with same specification
 Capacity utilization is low
 Skilled labor
Continued…

Opportunity
 Increase in disposal income
 Credit financing by banks is increasing
 Increase in sale of sports bike segment
Threats
 Increase in fuel prices
 Inflation
 Economic slowdown
Continued…

 Competition is high and increasing. Life cycle stage
is in growth.
 Trade export in this sector is medium and imports
is low.
 Entry of international brands in the sector e.g. KTM
and Kawasaki tends to shift the customer’s taste
and preference.
Two Wheeler Industry

 www.siam.com
 www.autocar.com
 Economic Times
 www.zigwheels.com
References

Indian automobile industry 2015

Indian automobile industry 2015

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