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The Indian automobile sector can be divided into several segments: 2 & 3
wheelers, Passenger cars, Commercial vehicles (Heavy CVs/ Medium
CVs/Light CVs), Utility vehicles (UVs) and Tractors.
The setting up of joint ventures has also led to enhanced capacity creation
in the vehicle sector, particularly in the passenger car sector and the additional
capacity is expected to mount by one million passenger cars in the next 4-5
years.
India is also a prominent auto exporter and has strong export growth
expectations for the near future. In FY 201415, automobile exports grew by 15
per cent over the last year. In addition, several initiatives by the Government of
India and the major automobile players in the Indian market are expected to
make India a leader in the Two Wheeler (2W) and Four Wheeler (4W) market in
the world by 2020.
MARKET SIZE:
The sales of PVs grew by 8.51 per cent in AprilOctober 2015 over the
same period in the previous year. The overall CVs segment registered a growth
of 8.02 per cent in AprilOctober 2015 as compared to same period last year.
Medium and Heavy Commercial Vehicles (M&HCVs) registered very
strong growth of 32.3 per cent while sales of Light Commercial Vehicles
(LCVs) declined by 5.24 per cent during AprilOctober 2015, year-to-year.
INVESTMENTS:
In order to keep up with the growing demand, several auto makers have
started investing heavily in various segments of the industry during the last few
months. The industry has attracted foreign direct investment (FDI) worth
US$13.48 billion during the period April 2000 to June 2015, according to data
released by Department of Industrial Policy and Promotion (DIPP)
Tata Motors
Mahindra & Mahindra Ltd
Maruti Suzuki
Hero MotoCorp Ltd
Bajaj Auto Limited
Ashok Leyland
Hyundai
TVS Motor Company
Eicher Motors
Force Motors ltd
Some of the major investments and developments in the automobile sector
in India are as follows:
The world's largest air bag suppliers Autoliv Inc, Takata Corp,
TRW Automotive Inc and Toyoda Gosei Co are setting up plants
and increasing capacity in India.
GOVERNMENT INITIATIVES:
SWOT ANALSIS
Market expansion
Threats Changing lifestyle & customer groups
Strategic Alliances
Intense Competition Introducing fuel-efficient vehicles
Volatility in the fuel Prices
Sluggish Economy Opportunities
High fixed cost and investment in R & D
T
SWO
Bargaining power of consumers Strength
Cars recalled
Evolving industry
Continuous product innovation
Technological advancement
Weakness Increase in demand of luxury commercial
vehicles