AUTOMOBILE INDUSTRY

PRESENTED BY
JOSH JIT SINGH BALI
 INTRODUCTION

 The first automobile in India was rolled in 1897 in

Bombay
 First Indian to own a car in India was Jamshedji Tata
 First woman to drive a car in India was Mrs. Suzanne
RD Tata
 India is the largest two-wheeler manufacturer in the
world
 The Indian automobile industry is the 10TH largest in
the world
 INDIA’S POSITION

Population Passenger car Car density (cars per

Countries (millions) population (million) 1,000 people)
Germany 82.2 46.81 565
UK 61 31.34 521
US 302.8 136.01 450
Czech Rep 10.2 4.31 424
Poland 38.1 14.21 369
South Korea 48.9 9.65 246
Russia 142.3 26.79 188
Brazil 189.4 19.8 107
Turkey 75.1 6.24 85
China 1,322.10 21.43 16

India 1,135.60 12.06 9

 FDI INFLOWS

6,000
5,212
5,000
3,950
4,000

3,000 2,697

2,000
1,254
1,000

0
2006-07 2007-08 2008-09 2009-10
AUTOMOBILE INDUSTRY
DOMESTIC MARKET SHARE

Passenger Vehicles
16%

Commercial Vehicles
4%

Three Wheelers
4%

Two Wheelers
76%
 PASSENGER VEHICLES

18.0

16.0
CAGR 14% 15.5 15.5

14.0 13.8

12.0 11.4
10.6
10.0 9.0
8.0 7.1
6.0

4.0

2.0

0.0
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
 COMMERCIAL VEHICLES

6.0
CAGR 12%
5.0 4.9
4.7

4.0 3.8
3.5
3.2
3.0
2.6

2.0 1.9

1.0

0.0
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
 TWO WHEELER

90.0
CAGR 8%
80.0 78.7
72.5 74.4
70.5
70.0
62.1
60.0
53.6
50.0 48.1

40.0

30.0

20.0

10.0

0.0
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
 THREE WHEELER

4.5
CAGR 7% 4.0
4.0
3.6 3.6
3.5
3.5
3.1
3.0 2.8

2.5 2.3

2.0

1.5

1.0

0.5

0.0
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
 INDUSTRY GROWTH
120.0
CAGR 9%
101.2
100.0 96.5 97.2
89.1
79.0
80.0
68.1
59.4
60.0

40.0

20.0

0.0
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
 MARKET SHARE – PASSENGER CAR
4.6
Others 3.1
2.5
Ford 5.2
3.2
GM 1.3
4.1
Honda Siel 4.6
12.7
Tata Motors 15.2
24.8
Hyundai 25
48.1
Maruti 45.6
0 10 20 30 40 50 60

2006-07 2007-08
MARKET SHARE – TWO WHEELERS

Others
Yamaha 7%
2%
Tvs Motors
9%
Hero Honda
Bajaj Auto 53%
28%
 RELATIVE VALUATIONS

Companies Cmp Mcap ev/ebitda pe pbv

Maruti Udyog 1481 42787.6 17.52 35.11 4.58

Tata Motors 618.8 29661.4 15.95 31.77 2.57

M&M 1035 28696.28 21.96 33.72 5.39

Ashok Leyland 52.3 6957.6 16.32 36.57 3.30

Hero Honda 1574.9 31448.7 15.85 24.53 8.27

Bajaj Auto 1463 21167.2 20.77 32.25 11.32

 FREE CASH FLOW TO THE FIRM

Companies Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

Maruti Suzuki 502.2 100.3 945.8 2765.9 728.3

Tata Motors 2184.47 721.13 1173.84 2149.32 791.88

M&M 505.09 706.73 444.35 1233.64 1136.36

Ashok Leyland 318.47 7.69 167.99 606.87 173.49

Hero Honda 57.61 340.24 443.36 275.19 459.32

Bajaj Auto 580.64 654.87 922.88 806.94 694.46

THANK YOU