Professional Documents
Culture Documents
ON
MBA-(VIth
0818470029
Research report
On
Automobile Industry in India
Submitted By:
Praveer singh
Enrolment No:
081847048911
Roll No:
0818470029
Institute of Management
sciences (IMS) College code
184
Nibia, Bachchaon,
Varanasi
CERTIFICATE
This is to certify that Mr. Praveer singh has completed his research report entitled
Automobile industry in India in partial fulfillment of the requirement of Master of
Administration of U.P. Technical University, Lucknow.
The report contains the observations and opinion of the student himself .
The project report submitted by Mr. Praveer singh Roll No. 0818470029 is of
standards expected of an MBA student of UP technical University.
Signature
(Prof. C.Lal)
DECLARATION
PRAVEER SINGH
M.B.A.-(VIth sem)
0818470029
ACKNOWLEDGEMENT
Research work is a combined effort, so one should be thank all that
have helped in making report purposeful. Hence I take this opportunity to
thank all that have been instrumental in helping me to prepare this
report.
It is great honor to be assigned this topic. First of all I would like to
thank God who shows his blessing upon me in each and every step I
am immensely grateful to Mr. A. Pandey for his continuous support and
guidance.
I also want to thank Director Prof. C. Lal Sir for providing me this
opportunity.
I also want to thank all teachers, the staff member and library members
for their valuable advice and guidance which helped me to make this
report purposeful.
I specially wish to thank all other people directly or indirectly related
with my research and my friend as without their valuable support this
report would not have been possible.
PRAVEER
SINGH
PREFACE
The automobile industry has grown by leaps and bounds in past decades.
With every year new milestones have been achieved. With globalization,
technological advancement and transfer of technology has revolutionized
the sector.
This research is carried out to assess the various components of
automobile Industry. Also to analyze further opportunities and potential of
automobile sector of India.
Content
Chapter 1
page
o Industry Profile
Developments
Recent Developments and Issues Facing the Indian Automotive
Industry
SWOT Analysis
Tractor Industry - Part of Automobile Indu
List of Car Manufacturers
Car Sales Statistics India
India's auto industry comes of age
Green rating for automobile sector
Current status of Indian Automotive Industry
Production
[Green page]
Chapter 2
o Research Methodology of the project
Problem Formulation
Objective of the project
Scope of the study
Method of Study-Whether universe or sample
Source of information
Statistical tools and techniques
Limitation of the study
Significance of study
- To the company
- To the industry
- To the consumer
- To the Govt.
- To the Academicians etc
8
Chapter 3
o Abstract( outcome thrugh data )
Chapter 4
o Conclusion
o Suggestion & Recommendation
Annexure Big tables/ Rules etc
Bibleography
10
Tata Aria
Maruti R3
Concept
Toyota Etios
Sedan
Mercedes
GL Class
11
Yamaha R15
White
Honda Unicorn
Sports Concept
Honda CB
Twister
Mahindra
Concept MotorCycle
Honda
VFR1200R
Chaptor-1
12
INDIAN
AUTOMOBILE
INDUSTRY
Overview
13
Investment climate
Given the high growth expectations and a liberal government policy,
the investment potential in the India auto sector is huge. CRIS INFAC is
forecasting a 12-15% annual growth in the passenger car sales, 6-8% in
commercial vehicles and around 10% in two wheelers. Several passenger
car makers have already achieved near full capacity utilization and are
expanding. Almost all the major automobile manufacturers such as GM,
Ford, DaimlerChrysler, Honda, Toyota, Hyundai, and Fiat (with the
exception of Volkswagen, which is planning to set up manufacturing
shortly) already have made significant investments in India. In the next
2-3 years, the passenger vehicle industry is expected to see investments
of more than Rs 30 billion. Similarly, two wheeler industries are
expected to attract investment amounting to Rs 10 billion.
There has also been a surge in exports of cars, utility vehicles and
two wheelers. The expected growth in domestic sales and exports of
vehicles also offers significant opportunity for investors to invest in the
auto ancillary industry. Already several international suppliers such as
Delphi, Visteon, TRW, Johnson Controls, Denso and Dana, have set up
manufacturing facilities and are expanding rapidly to serve not only the
domestic market but also to supply to their global customers. Another
14
15
Outlook
The expected rise in income levels, wide choice of models and easy
availability of finance at low interest rates will drive growth in passenger
cars segment, which is likely to be over 12 percent per annum for the next
four to five years. Two wheelers growth is likely to marginally slow down,
but still grow at an average annual growth rate of around 10 percent.
The commercial vehicles segment is likely to grow at a trend rate of 68 percent driven mainly by the Increase in industrial and economic activity
on account of the expected growth in the economy, though annual growth
rates may fluctuate widely with the cyclical ups and downs of the economy.
Tractor industry growth is likely to turnaround and post a growth in
volumes in 2004-05. However, it will post a moderate growth of around 4-5
percent annual growth rate over the medium term.
Total Sales %
388,136
1.33 Million
745,997
321,137
308,718
129,683
117,981
Here also we find comfortable growth figures being posted by Asian economies in automobile
sector.
Now a question might come up in the mind of my readers that when US is struggling and have
managed to come out of the major downtrend in US auto industry then in 2010 how India and
other Asian automobile sectors will sustain.
India is now on e of the hottest destination of auto sector growth.UK and US companies are
already in the path of negotiations and various types of partnership projects with Indian
companies to enter Indian auto market. At the same time we find that across the globe every one
is coming with small car deigns and models to suit the purpose of the common mass of people of
any economy. We dont find those days of big cars and luxury cars in the showrooms
ofautomobiles.
China is among the leader to bring such car models to the world auto market. The car market is
growing at a 16% rate annually, despite the depressed first half of the fiscal. And small car
growth is the fastest. We will also find a huge amount of provision in the balance sheet of the
companies for research and development in the automobile sector. We already found that
companies like Maruti, Hyundai, Tata Motors and GM are looking to leverage their local R&D
structure. And all these companies are having their eye on Indian consumers.
Now its hard to say whether all these designs are coming in to play after Nano got launched.
Rising crude prices in 2007 have forced the US car makers to bring electric or bio fuel cars in the
market. We can be rest assured that in the coming days US will bring these car models if crude
prices rises again to the level of 2007 since US have less funding to pay the huge import bill of
crude. So are we going to see a new set ofautomobiles in the new decade. The ans goes without
any hesitation yes. The automobile sector is now on the path of huge revolution where the next
generation cars will travel eco friendly and for small family.
At the same time we will get to see a huge number of mergers and acquisition happening in the
global automobile sector is the comings days.
China is focusing on improving the structure of industrial products supply.
17
2 to 3 large auto enterprise groups with the production and sales volume of over 2 million sets
will be established in China auto industry.
As well as 4 to 5 auto enterprise groups with the production and sales volume of over 1 million
sets, there are two important activities on merger, acquisition and reorganization finished in
Chinas auto industry.
In total what we get to see is that the world automobile sector is on the path of turnaround and
India is one of the hottest destinations to find the growth of the auto industry. We will also get
new series ofautomobiles which will not be dependent on crude prices.
Among all these we also found some negative shootouts for the Indian automobile sector.
When RBI will go for a hike of interest rates cost of borrowing will affect the auto sales in
India.
According to the worlds most precious economist its being expected that US and UK will
emerge from the recession shadows and will find growth in economy.
Now economic growth in these two countries will speed up the demand of crude prices, which
will carry the crude towards $100 barrell.
So consumers will less prune to buying cars at that point of time.
Commodity prices particularly steel prices are already on the higher tide. This will increase the
cost of production of automobiles resulting to increase in prices.
Cost of tire is among them which have already started increasing.
We cannot expect the Indian government to continue the stimulus package declared for
automobile sector for a longer time at the cost of rising fiscal deficit of India.
Moreover when so many companies are focusing on India market prices competitiveness will
rise to the highest point leading less space for companies to make profit.
It can be said that in 2010 we will get many challenging situation and turn around for the Indian
automobile sector followed with US and European economies. The new decade for the
automobile sector will bring us a new set of products followed with major hiccups.
Very soon The 2010 Auto Expo will begin in New Delhi which be bigger, brighter and better
than the previous shows. The growing number of visitors indicates the rising importance of India
as a key automobile destination. One of the prime reasons for such event to become so big is
India is a fast-growing market for cars and two-wheelers. Compared with Chinas 27 cars per
1,000 citizens, India has only seven car owners per 1,000 citizens.
18
19
20
21
produce the Opal Astra, and with Mitsubishi to make the Lancer targeted at
the higher - end market.
Despite occupying the fourth position and producing passenger vehicles only
in small volumes,
Tata Engage. & Locomotive Company Ltd. (TELCO) is noteworthy, not
only because it is a part of the powerful Tata industrial family, but also
because it is one of the few firms with indigenous product development
capabilities, and has been a dominant player in the commercial vehicles
segment. ( The author, in fact, worked with TELCO for a brief period in
the late 80's in their light commercial vehicles product development group. )
TELCO holds about 70% of the heavy commercial vehicles market, and
( after entering the market late ) has also managed to fend off Japanese
competition by gaining about 50% of the light commercial vehicles segment
with its in-house product development. It entered the passenger vehicles
market only in 1991-92, and has quickly established itself in the higher end
of this segment with its Estate and Sierra models. The firm has entered into
a joint venture with Mercedes Benz to assemble the E220's, and is also said
tube planning an entry into the small / economy car segment challenging
Maruti's stronghold.
Indian Component Suppliers
Component suppliers are the backbone of an emerging automotive industry.
By all accounts, the Indian component industry, based mostly in the
southern city of Madras, is tiny. The auto component manufacturers
association of India ( ACMA ) estimates that $2.1 billion worth of carports
were produced in the financial year 1995, out of which exports amounted to
$228 million. To put this in perspective, the entire Indian industry's revenue
is roughly one-tenth that of GM'scomponent unit, Delphi automotive
systems 2 . But, the component market has been growing rapidly at about
25% a year, and is expected to quadruple in size by the year 2000. This
growth has not only been due to the growing demand for passenger
vehicles, but also due to the increasing trend by multi national OEM's to
resort to global sourcing to improve competitiveness.
Leading automotive assemblers and component makers are increasingly
turning to India for components. One of the now widely - cited examples of
this trend is the Indian component firm, Sandarac Fasteners Limited ( SFL ),
which the author has been studying for the last year. SFLbecame GM's
largest supplier of radiator caps, and exports about 300,000 caps from its
factories in Madras to GM plants around the world. In 1992, when GM
was planning to close one of its plants in UK., SFL took advantage of the
to 2 It is also noteworthy that Delphi is in the process of setting up its
22
own units in India to make steering systems, Chassis and electrical systems
recognizing the needs of the fast - expanding Indian automobile market
invest heavily in quality and productivity improvements, and a tour around
SFL's suburban Madras Factory shows a world class plant with minimal
inventory and rework. The company's workers, trained in statistical tools and
control charts, keep processes under statistical control due to which radiator
cap rejection rate is less than 1 % of annual production. The company also
has a very skilled managerial and engineering workforce, which has helped
it develop in house product development capabilities. Using these resources
and skills, the firm is now seeking to expand its supply to other
manufacturers in Europe, US, and Asia, and also diversify into other
components.
SFL exemplifies the Indian auto components industry, which although small
and fragmented has the competitive advantages of a skilled workforce and
low labor costs. It is estimated that components can be produced about 30
% cheaper in India than in the west. ( The top Indian assembler, Maruti, is
able to price its cars at about $5,500 because it sources 90% of its
components from Indian suppliers. ) Rapid growth and tie ups with foreign
firms will help Indian auto components suppliers further invest in capacity
and automation and acquisition of the latest know-how, thereby closing the
productivity gap with other world - class component makers.
Shows a few other notable Indian component suppliers and their exports to
OEM's.
23
24
25
The prominent two reasons that turned the growth wheel of automobile sector of India in 2009
were:
Introduction of stimulus packages
Reduction in prices by auto manufacturers
Lower bank interest
Cheap prices of steel and other commodities have also helped the cost of production of
automobiles very much cheap resulting to higher sales and higher profits.
Lower crude prices also added fuel among the buyers to buy cars and enjoy the cheap ride.
Festive season was among the most important factor which changed the prospect of the
automobile sector.
So in all it can be said that automobile sector had more reasons to smile while others were busy
in wiping out the cry.
Production of automobiles increased from about 60,000 units in 2008 to approximately about
80,000 units in 2009.It reveals two stories at the same time one is that Indian auto sector not only
managed to maintain the sales figure of 2008 but improved its growth by 33.33%.
26
27
Indian Assemblers
Established distribution and After - sales networks, and Supplier base.
Understanding of the Indian market and ability to liaison With the
government
Lack of product developmenand PAL. Multi - national Assemblers
Lean production capability
Ability to design products with differentiating features
Deep pockets, brand image.
Lack of experience with Indian market, industry, and government.
Small component supplier base and high import tariffs.
Indian Component Suppliers
Low cost, skilled workforce
Learning From exports
Small Size, Fragmentation
Lack of know how in carat areas. Multi national Component Suppliers
Size, Deep pockets
Experience and Know - how in technology.
Import tariffs, currency exchange rate fluctuations.
Inexperience with India workforce.
29
fetched the company the accreditations like ISO 9001 : 2000 and ISO
14001.
There are mainly four business unit of the brand name Sonalika. They are
mainly as follows
International Tractors Limited
International Cars & Motors Limited
Sonalika Three Wheelers
Sonalika Agro.
31
32
ITL PRODUCTS
The ITL have launched there tractors in number of segment which are
classified according to there specifications. ITL is manufacturing various
Tractors of Sonalika brand between 30 HP to 75 HP, and CERES brand
between 60 HP to 90 HP.
Sonalika D I 732 III
Sonalika DI-740
Sonalika DI 735
Sonalika DI 745 III
Sonalika D I 750
Sonalika DI 750 III
Sonalika D I 60 Senior
- 34 HP
- 36 HP
- 38 HP
- 45 HP
50 HP
- 50 HP
- 60 HP
These tractors range from 30 to 75 HP. ITL is also producing tractors under
CERES Brand and exporting them to countries like
Sri Lanka
Africa
Bangladesh
South East Asia
Indian Subcontinent
North America
Western Europe
33
34
competitors. There is
between them. There
follows:
35
But in Punjab, Mahindra & Mahindra and Punjab Tractor Limited ( PTL,
brand name Swaraj ) are Sonalikas main rival.
Mahindra & Mahindra
The origins of M & M's Farm Equipment Sector lie in the formation of a
joint venture in 1963 between the Company, International Harvester Inc.,
and Voltas Limited, christened the International Tractor Company of India
(ITCI). This enterprise was a shot in the arm for the green revolution then
beginning to sweep the country. The launch of high performance tractors
played a vital role in the mechanization of Indian agriculture.
In 1977, ITCI merged with M & M and became its Tractor Division. M &
M's Farm Equipment Sector is the largest manufacturer of tractors in India
with sustained market leadership of over 19 years.
The Farm Equipment Sector is the first Tractor Company in the world to
win the Deming Application Prize ( given for total quality management ).
Also, it is the fourth company in India and the 10th in the world, outside
Japan, to win this prize. It designs, develops, manufactures and markets
tractors as well as implements which are used in conjunction with tractors.
The tractor industry in India is segmented by horsepower into the lower
segment of 25 HP, mid - segment of 35 HP and higher segment of 45 HP
and above. The Company's Farm Equipment Sector has a presence in all
these segments across all states.
M&M has two main tractor manufacturing plants located at Mumbai and
Nagpur in Maharashtra. Both these plants have been certified for ISO 9001,
QS - 9000 and ISO 14001. Apart from these two main manufacturing units,
the Farm Equipment Sector has satellite plants located at Rudrapur in
Uttarachal and Jaipur in Rajasthan.
M&M tractors have earned goodwill and trust of more than 8, 00,000
customers and the ' Mahindra ' tractor has come to be recognised as a
powerful symbol of productivity and performance.
Products
Mahindra
Mahindra
Mahindra
Mahindra
Mahindra
Mahindra
Mahindra
265 DI
265 DI
Yuvraj
275 DI
275 DI
475 DI
475 DI
Bhoomiputra
Sarpanch
TU Sarpanch
TU Bhoomiputra
Sarpanch
Bhoomiputra
30 HP
30 HP
30 HP
- 39 HP
39 HP
40 HP
40 HP
36
Mahindra
Mahindra
Mahindra
Mahindra
Mahindra
Arjun 445 DI
575 DI Bhoomiputra
575 DI Sarpanch
585 DI Sarpanch
Arjun 555 DI
42 HP
45 HP
45 HP
50 HP
52 HP
37
Audi India
BMW India
Hindustan Motors
Hyundai Motors
Honda India
Reva
Nissan Motors
Tata Motors
Toyota India
Fiat India
Ford Motors
Fiat India
Maruti India
General Motors
38
% Chg from
% Chg from
Dec 2009 Dec'08
YTD 2009 YTD 2008
Cars
517,740
22.2
5,494,700
-19.0
Midsize
258,412
29.7
2,644,782
-15.7
Small
162,166
22.5
1,915,654
Luxury
88,835
7.4
844,934
Large
8,327
-11.7
89,330
512,196
8.7
4,934,853
Pickup
140,771
-2.2
1,409,468
Cross-over
218,566
31.5
2,028,775
Minivan
53,426
2.0
583,362
Midsize SUV
40,673
-14.0
390,098
Light-duty trucks
-20.0
-24.5
-33.0
-23.6
-29.7
-6.3
-30.6
-45.7
39
Large SUV
29,899
-1.3
232,286
Small SUV
13,405
-14.5
175,230
Luxury SUV
15,456
1.3
115,634
Total SUV/Cross-over
317,999
15.7
2,942,023
Total SUV
99,433
-8.4
913,248
Total Cross-over
218,566
31.5
2,028,775
-32.7
-16.8
-32.8
-18.5
-36.9
-6.3
40
Maruti Udyog
2,69360
52.2
8.1
23,043
1,07, 066
19.2
20.2
68,374
Tata Motors
95,402
24,348
16.6
-2.7
12,105
24,348
4.4
5.1
31
15,026
10,512
1.9
-30%
9,928
49,897
51,540
42.7
3.3
1,878
24,983
20.7
2.4
21,610
17.9
8.2
905
12,027
10
71.6
2472
-7.8
54
1,042
0.9
308.2
43,858
100
3.5
731
Utility Vehicles
Mahindra and Mahindra
Ltd.
19,967
2682
42,388
41
79,614
73,538
61.1
-7.6
4,807
Ashok Leyland
27,577
33,406
27.7
21.1
2825
Eicher Motors
8,043
8,700
7.2
8.2
318
Swaraj Mazda
3,573
4,080
3.4
14.2
115
Tata Motors
5,835
6,811
46.8
16.7
1,096
2,305
1,960
13.5
-15
115
Swaraj Mazda
1,178
1,315
11.6
12
2,059
2,877
19.8
39.7
59
Tata Motors
30,955
44,380
58.9
43.4
12,461
23,563
23,731
31.5
0.7
1,600
Swaraj Mazda
2,671
2,299
-13.9
204
Eicher Motors
3,019
2,954
3.9
-2.1
451
Goods Carriers
42
Car Statistics
The Indian automotive industry is the 2nd fastest growing in
the world. About 8 million vehicles are produced annually in
this country toady. During 2005-2006, India has emerged as
the 3 rd largest market in the Asia Pacific Region. With
various car manufacturing companies setting up their units in
different parts of the country, the production of the cars will
increase at a very fast rate. The car reports indicate that
India will soon become one of the top 10 car manufacturing
countries , leaving behind the U.K. Car statistics also show
that by the end of the fiscal year 2006-2007, the car
production capacity in India will exceed the mark of 2
million. Thus, the production of cars will increase by 70%
from
the
present
capacity
of
1.2
million.
The Indian automotive industry is the 2nd fastest growing in the world. About 8 million vehicles
are produced annually in this country toady. During 2005-2006, India has emerged as the 3 rd
largest market in the Asia Pacific Region.
With various car manufacturing companies setting up their units in different parts of the country,
the production of the cars will increase at a very fast rate. The car statistics indicate that India
will soon become one of the top 10 car manufacturing countries , leaving behind the U.K. Car
statistics also show that by the end of the fiscal year 2006-2007, the car production capacity in
India will exceed the mark of 2 million. Thus, the production of cars will increase by 70% from
the present capacity of 1.2 million.
The domestic sale of passenger cars have increased significantly over the years. A graphical
representation of the domestic sale of cars will give you an insight about the present market
situation prevailing in the country:
43
In the recent years, India has emerged as one of the major bases for manufacturing small
passenger cars. At In the recent years, India has emerged as one of the major bases for
manufacturing small passenger cars. At present the Indian automotive industry boasts of being
the 3 rd largest manufacturer of small cars . According to the car statistics almost 70 % of the
cars sold in this country come under the segment of small cars. A number of car manufacturers
like: Maruti Udyog, Tata Motors, Hyundai, Honda, Ford, Hindustan Motors, Fiat, General
Motors etc offer various new model of cars now and then. It is expected that the various
automobile manufacturers will be investing about $ 5 billion in India, between 2005-2010. Some
important statistics about cars also include car insurance statistics, auto insurance statistics, auto
accident statistics and car crash statistics. All these data and statistics help in framing the state
policies and issuing the guidelines to different auto manufacturers and dealers. As per the car
reports , export of passenger cars from India have also grown considerably over the last decade.
A graphical representation of car export trend will help you to make an in-depth analysis of the
44
With new strategies being implemented and more investments being made in Indian automotive
industry the production as well as the domestic sale and exports will increase substantially.
A graphical representation of the total sale trend of passenger cars (including the domestic sale
and exports) is given below:
45
To know more about car statistics and matters related to automobiles, do browse through the
pages of automobileindia.com.
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
Passenger Vehicles
707,198
902,096
Commercial Vehicles
190,682
260,114
Two Wheelers
Grand Total
351,041
467,765
486,817
46
Audi AG
BMW
Chevrolet
Daewoo Motors
Fiat India Pvt Ltd
Force Motor
Ford Motor Co.
General Motors
Corp.
Mercedes Benz
Mitsubishi Motors
Nissan Motor Co. Ltd
Sonalika
Tata Motors
Toyota Kirloskar Motors
Volvo
Hindustan Motors
Porsche
Volkswagen Cars
Ltd.
Ltd.
A lot of interesting surveys and researches are conducted in the field of automobiles. The
emergence of global automobile biggies to India has made the government to take notice and sit
up so as to drive more investments into this sector. The ministry of heavy industries has recently
announced a 10-year mission plan (Automotive
Mission Plan 2016) to make India a global hub for automotive industry.
47
Not long ago, India's auto industry was a laughing stock. Its two best known cars were a 1940s Morris model called the Ambassador and a
1960s Suzuki derived model called the Maruti 800. But that was then.
Today, for instance, the Mumbai based Dilip Chhabria Design Pvt Ltd
( DC Design ) is seeking to take on Pininfarina and Bertone, the Italian
standard in international car design, by designing and building concept
cars, prototypes and limited production runs. Nor is DC Design alone.
"There can be few more improbable automotive stories than the yarn
about the Indian designers creating bespoke concept and prototype cars, "
said the United Kingdom's auto magazine Autocar in a recent issue. "
Yet the hottest ideas in car design are happening right now in the back
streets of Mumbai. " India is now the ninth country in the world to
design a vehicle on its own.
In fact, the Indian auto industry is fast becoming an outsourcing hub for
automobile companies worldwide, as zooming automobile exports from
the country indicate. Surinder Kapur, the chairman of Sona Koyo
Steering, which exports car steering assemblies, says, "Car makers over
the world have realized that India can design a car on its own and
make it globally acceptable. "
Passenger car exports have nearly trebled in four years, from 28,122
units in 1998 - 99 to 71,653 vehicles in 2002-3. The industry expects
this to gather steam further ahead because car exports in the first
quarter of 2003 - 4 leapt by 87 percent over the same period in 2002 3. The two wheeler segment is booming, too, with exports zooming
from 100,004 units last year to 179,000 units in 2002 - 3. By 2005, the
industry expects 400,000 two wheelers on foreign shores.
48
G R E E N R ATI N G F O R AU TO M O B I L E S E C TO R
Sectoral Performance
Is the Indian automobile sector as environmentally conscious as best in the
world ?
NO! Automobile sector has fared badly. Under the project rating scale we
were to award five leaves award to the best company. But sadly no auto
company deserved this honour. The best company gets less than 45 per
cent marks getting a mere three leaves award. But the sector as a whole
gets even lesser, scoring 31.4 per cent, deserving only two leaves award.
The passenger car segment leads the way among the entire automobile
segment and is the only segment which gets three leaves. Mass transport
vehicle segment comes second. The two and three wheeler segment, with
two leaves, lags behind even the mass transport vehicles, which has
performed better due to introduction of CNG fuelled vehicles.
49
emit less pollution and consume less fuel compared to larger vehicles.
They also use lesser material during manufacturing stages.
Honda City 1.5V - tech gets the recognition of being the most
technologically advanced and least polluting vehicle in India with emission
as low as 85 per cent lower than the Euro II norms.
The vehicle with the worst performance environmentally is Mahindra &
Mahindra's Armada, which comes last in the passenger car segment. It has
scored very low in all criteria.
Among the two and three wheelers, both selected models of Hero Honda
(Splendor and CD 100) are the most eco friendly two wheelers. They have
scored above average in vehicle and engine design and are one of the very
few four - stroke two wheeler fitted with any kind of pollution control
equipment.
Bajaj boxer, the latest model of Bajaj Auto that ranks third, has scored
well in vehicle and engine design but lacks in emission control equipment
and comparatively poorer emission.
The best performing two stroke model ranks fourth amongst the two
wheelers. The lowest score has been obtained by Kinetic Safari moped,
which obtained average scores in design and emissions and very poor
scores in pollution control equipment and emissions.
Among the mass transport vehicles Ashok - Leyland's Viking compressed
natural gas (CNG) bus scored above average in design and very high in
emissions due to inherent advantages of CNG vehicle making it the best
performer in this section. The second position is also taken by another
CNG fuelled vehicle, that is, Telco LPO CGS bus. Interestingly, the worst
performers in this segment are Ashok Leyland's diesel fuelled Comet 1611
and Tusker Turbo tractor.
A total number of 29 automobile manufacturers were selected for the
project of which 26 companies participated voluntarily ( 90 per cent
participation ). The three companies which refused to participate and chose
to continue being non - transparent are Bajaj Tempo Ltd. , Yamaha Escorts
Motor Ltd. and Swaraj Mazda Ltd.
MODUS OPERANDI
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The Green Rating of Indian Industry project was started by the Centre for
Science and Environment ( C S E ) in 1996 to address an array of
environmental issues facing all segments of Indian industries. The project is
supported by the United Nations Development Programme ( U N D P ) and
the Ministry of Environment and Forest ( MoEF ). The first sectoral rating
undertaken under the pilot phase of the project was pulp and paper
sectoral rating, which was a highly successful exercise and was rated as
the best environmental audit project in last 25 years in Asia by ' Asia
Week '.
Spanning over a period of two years, Green Rating of automobile sector
was a great challenge owing to diversity between companies in their
production processes as well as the products manufactured. Participation of
all the major automobile companies in the exercise makes it a unique
effort to assess the environmental health of the sector. The project has
covered 35 production facilities spread in nine states and almost 80 per
cent of the products currently running on Indian roads.
Methodology
The rating methodology for automobile sector has been developed keeping
in mind the life cycle impact of the automobile industry. Thus, the
weightages were allotted accordingly with 80 per cent of the score devoted
to life cycle analysis (LCA) and remaining 20 per cent for corporate
governance.
The life cycle assessment included determining the environmental impacts
at various steps of the production process right from sourcing of raw
materials, to the manufacturing and assembly process, to the pollution
caused by use of the vehicle, and finally the impact caused by its disposal.
Of the 80 per cent on the life cycle assessment, the highest weightage ( 56
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per cent ) was allotted to the product use phase based on the conclusion
arrived at by the project that maximum pollution occurs during use phase.
"Vehicle are the core of the automobile industry since they alone generate
about 80 per cent of the total life cycle pollution, " says Chandra Bhushan,
Coordinator, Green Rating Project, CSE. " In order to assess the
environmental performance of the product, a combination of engine design,
pollution control equipment fitted and the emission test data supplied by
the test agencies were considered, making this exercise the most
comprehensive ever taken anywhere in the world. Even the green
automobile ratings done in the US and in Europe only consider emissions
and fuel consumption data to rank the vehicles. Green rating project has
taken a quantum leap over the existing automobile rating methodology " he
adds.
Robustness of the Rating methodology
'Engine design analysis should represent the emissions from the vehicles, '
was the main focus for arriving at the robustness of the product rating
criteria, developed by GRP, since the engine and vehicle rating was given
by the project and the emissions rating was given on the basis of the test
data of certified test agencies. Therefore, the litmus test for GRP was to
correlate the ratings given by two separate institutions with no interaction
between them. This was very well reflected in high coefficient of
correlation found between the scores obtained in engine design and
pollution control equipment, and the score obtained in emission. For
example, in petrol passenger cars in 78 per cent cases the engine design
did represent the emission characteristics of the vehicles.
Testing the effectiveness of the rating methodology in replicating the life
cycle analysis, the test undertaken by the project was to correlate the
overall rating with the vehicle's rating. Since, as per life cycle analysis, a
company with poor product should get poor results, however good it may
be on other aspects. This too was very well established in the rating with
product rating having a very high correlation ( 97 per cent ) with the
overall rating. However, the analysis brought out the fact that the other
criteria were as important and were seen to have high degree of correlation
with the overall ratings.
REVELATIONS
Green rating project findings draw its process on the principle that root of
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the cure of any disease lies in the proper diagnosis rather than just
medication!!!
More miles per litre
A fuel efficient car would be the cheapest vehicle in the long run and an
important consideration for the customer as well. The Hyundai Santro was
judged the most fuel - efficient petrol passenger vehicle followed by Fiat
Uno and Maruti - 800 Euro II model. In case of diesel passenger car,
Mitsubishi Lancer was judged the most fuel efficient and Toyota Qualis
Euro I model was most fuel - efficient multi utility vehicle.
Clean fuel, clean vehicle
We did a comparative analysis of impact of fuels on emissions.
Study based on analysis of three diesel fuelled mass transport vehicles and
two CNG fuelled mass transport vehicles clearly showed that CNG fuelled
vehicles are far better in terms of tail pipe emissions than the diesel
fuelled mass transport vehicles. CNG fuelled vehicles have as much as
five times lower particulates and overall 73 per cent lower emissions than
their diesel counterparts.
Overall petrol vehicles show an inherent advantage over the diesel fuelled
vehicles with all the top 14 cars being petrol ones. The best diesel car,
which is Mercedes E 220, ranks as low as 15. While the best multi utility
vehicle, Toyota Qualis Euro II model ranks a dismal 20th among all the 31
models.
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Meeting of regulations
While some Indian vehicles are meeting Euro II equivalent norms in the
national capital region of Delhi and Euro I equivalent norms in the rest of
the country, it was found that overall, automobiles in all the segments are
meeting the regulatory norms well. However, GRP found that this is not
enough as there are companies that can go much beyond the minimum
regulatory requirement but absence of incentives from government
discourages them. Government should come out with some incentive
mechanism to differentiate between just a good performer and excellent
performers.
Supply Chain Management
Green rating project closely scrutinized the practice of outsourcing by
Indian automobile companies and found that majority of pollution during
automobile production takes place at the supplier and vendor's site, most of
them being small and medium scale companies. Overall automobile
companies had a very poor performance on this aspect. The project found
a clear trend of transferring of pollution by automobile companies to its
supply chain. Companies urgently need to adopt a green procurement
policy and green up their supply chain.
Importance of ISO 14001
Almost half of the automobile sector has adopted environment management
systems (EMS) standards. However ISO 14001 adopted by automobile
companies is not the actual reflection of their environment management as
these companies are just assembly plants. Most of their processes are
outsourced and the major pollution happens at vendor's site and during
product use and disposal. Thus, ISO 14001 only takes care of very small
percent of pollution generated by the companies. The project has
recommended automobile sector to adopt an environment management
system, which reflects the environmental aspects of automobile business
and not to use the existing system, which is production centric.
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Installed capacity
The Automobile Manufacturers have put up a robust manufacturing capacity
of 95 lakh plus vehicles per annum since 1993. Today India is the world's
second largest manufacturer of two wheelers, fifth largest manufacturer of
commercial vehicles and manufactures largest number of tractors in the
world. The country offers fourth largest passenger car market in Asia today.
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1.
2.
3.
4.
5.
Export
Automotive industry of India is now finding increasing recognition
worldwide and a beginning has been made in exports of vehicles as well as
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country's automotive industry. The Indian auto component sector today has
420 key players who contribute more than 85% of the output of this sector.
The vital statistics of the auto component sector during 2005-06 and 200607 are as under:
Indicators
2005-06
Investment
2006-07
Output
Exports
Employment
5,00,000 persons
Indian auto component industry has seen major growth with the arrival of
world vehicle manufacturers from Japan, Korea, US & Europe. Due to
diversities in the technological profiles of these OEMs, the sector today
produces large variety of components. Today, India is emerging as one of
the key auto components center in Asia and expected to play a significant
role in the global automotive supply chain in the near future.
Ashok Leyland
Audi AG
Bajaj Auto
HMT Tractors
Honda Motors Co.
Ltd.
Hyundai Motors
Royal Enfield
San Motors
Scooters India Ltd
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BEML
Indofarm Tractors
Kinetic Motor Co.
Ltd.
Lamborghini
Suzuki Motors
Swaraj Mazda Ltd.
Escorts Ltd.
Fiat India Pvt Ltd
LML India
Mahindra &
Mahindra Ltd.
Maruti Suzuki India
Ltd.
Mercedes Benz
Mitsubishi Motors
Force Motor
Monto Motors
Ford Motors
General Motors
Hero Honda
Hindustan Motors
Nissan Motors
Porsche
Reva Electric Co.
Rolls-Royce Motor
BMW
Bentley Motors
Limited
Chevrolet
Daewoo Motors
Eicher Motors
Sonalika Tractors
Tafe Tractors
Tata Motors
Telcon
Terex Vectra
Toyota Kirloskar
Motors
TVS Motor Co.
Volkswagen
Volvo
Yamaha Motor
These are the companies that bring to us our dream machines. This
is where it all starts from; the bourgeoisie Maruti 800, the upmarket
Astra, the stately Mercedes, the 'Indian' Indica, the racy Hero
Honda, the Tata truck and the rest.
Wend your way through the automobile companies, their history
and product lines. Find out hitherto unknown facts about the
vehicles you use. Did you know that the Hindustan Motors was the
first vehicle manufacturing company to be set up in India? And it
is the same Hindustan Motors which manufactures both the sturdy
Ambassador and the elegant Lancer, in association with Mitsubishi
of
course.
Production
Indian auto component industry is wide (over 420 firms in the organized
sector producing practically all components and more than 10,000 firms in
small unorganized sector, in tierized format) and has been one of the fastest
growing segments of automotive industry, growing by over 28%, in nominal
terms, between 1995-98. During the year 2003-04, the sector has recorded a
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RESEARCH METHEDOLOGY
Research Design:
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PROBLEM FORMULATION
o Continuous increase in the demmand of automobile beyond
level of normal demmand.
o There
is
change
in
expectation
of
customers
regarding
imposed by govt.
day to day.
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OBJECTIVES
To analyze
India.
the
fundamentals
of Automobile Industry of
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68
Method of study
Univers study
Sources of data
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Secondary Data:
The secondary data are those, which have already being
collected by others for their own purpose.
Data has been collected from various websites as well
various books & magazines .
as
Research Tool
Analysis of collected data.
Comparison of collected data.
Drawing conclusions & inference from analysis
LIMITATION OF STUDY
70
Technology
change
impact
and
pollution
norms
having
great
on automobile sector .
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Significance of study
To the industry:
The Industry would be able to trac the changes occurong in
the Environment.
To the consumer:
Quality which the company provides to them
To the Govt.:
This study will enhance knowledge of academicians that how relation can
be formulated in an efficient economic growth & automobile industry
growth.
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BIBLIOGRAPHY
www.google.com
www.msn.com
Economic times
Books
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