 Introduction

 Analysis of automobile industry

 Current scenario
 Segmentation
 SWOT analysis
 Political & Environmental analysis
 Market Leader and competitor
 Career in automobile industry
 Conclusion and recommendations
 Indian automobile industry has grown
leaps and bounds since 1898.

The automobile industry in India — the

ninth largest in the world with an annual
production of over 2.3 million units in
2008 — is expected to become one of the
major global automotive industries in the
coming years.
 GDP and Automobile industry
 Recession
 Inflation
 FDI’s
 India is 16th in the world in terms of
nominal factory output.
 The service sector is growing rapidly in
the past few years.
 The per capita Income is nearly about
Rs38000 reflecting improvement in the
living standards of an average Indian.
As the world economy slips into
recession, the GDP growth has
downgraded to 7.1 per cent for 2008-09
and predicted to be 6.5 per cent for FY
2009-10 Mr. Montek Singh (Planning
Commission of India). Following is the
graph showing a trend of Indian GDP
trend in past 3 years.
 The market value of Automobile Industry is
more than US$8 bl. and Contribution in Indian
GDP is near about 5% and will be double by
2016.
 The automotive industry in India grew at a
computed annual growth rate (CAGR) of 11.5
percent over the past five years, but growth
rate in last FY2008-09 was only 0.7% with
passenger car sales shows 1.31% growth while
Commercial Vehicles segment slumped 21.7%.
 Global recession has hit the Indian auto
industry.
 In December 2008, overall production fell
by 22 % over the same month last year.
 Sales & growth of automobile companies
have declined.
 Passenger Vehicles segment registered
negative growth.
 Despite of negative inflation these days (-.21%
on 22-Aug-09) we saw an increasing trend of
sales in auto sector.
 A moderate amount of inflation is important for
the proper growth of an economy like India
because it attracts more private investment.
 In last FY despite of skyrocketing oil prices
(crude oil price has already up to $130
compared to $20 per barrel five years back),
Indian automobile Industry was not as much
affected and experts think that Indian
automobile industry will continue to grow this
year despite all obstacles- oil price hike, higher
interest rates.
 In India FDI up to 100 percent, has been
permitted under automatic route to this
sector, which has led to a turnover of
USD 12 billion in the Indian auto industry
and USD 3 billion in the auto parts
industry.
 With the latest available data Indian
Automobile Industry is expected to grow
at 9%-10% in near future.
 It is assumed that in coming festive
season to meet demand, carmakers
going to produce 70000units/month more
over the average 1.3lac/month with help
of 5000 new hands.
Source: Economic Times
 India ranks 1st in the global two-wheeler
market
 India is the 4th biggest commercial vehicle
market in the world
 India ranks 11th in the international
passenger car market
 India ranks 5th pertaining to the number of
bus and truck sold in the world
 India is the second largest tractor
manufacturer in the world.
The automobile industry comprises of
 Heavy vehicles (trucks, buses, tempos,

tractors);
 passenger cars;

 Two-wheelers;

 Commercial Vehicles; and

 Three-wheelers.
 Large domestic market
 Sustainable labor cost advantage
 Competitive auto component vendor
base
 Government incentives for manufacturing
plants
 Strong engineering skills in design etc
 Low labor productivity
 High interest costs and high overheads
make the production uncompetitive
 Various forms of taxes push up the cost of
production
 Low investment in Research and
Development
 Infrastructure bottleneck
 Commercial vehicles: SC ban on
overloading
 Heavy thrust on mining and construction
activity
 Increase in the income level
 Cut in excise duties
 Rising rural demand
 Rising input costs
 Rising interest rates
 Cut throat competition
 Automobile industry in India also received
an unintended boost from stringent
government auto emission regulations
over the past few years.
 The policies adopted by Government will
increase competition in domestic market,
motivate many foreign commercial vehicle
manufactures to set up shops in India,
whom will make India as a production hub
and export to nearest market.
 Greenhouse Gas Emissions/Climate change
 Air quality
 Noise
 Safety aspects
 Congestion
 Infrastructure
 Access to mobility
 Emerging markets
 Product & services
 Contribution to local welfare
 With the emergence of new projects and
introduction of technological
advancements, the focus is more on the
skilled and experienced human resource.
 There are plenty of employment
opportunities for the qualified people and
they can select a career in Automobile
Industry, which leads to bright future.
 Indian Automobile Industry is in the growth
phase and the expected growth rate is 9-10%
for FY2009-10
 Indian Automobile has a lot of scope for both
two wheelers and four wheelers due to
development in infrastructure of the country
 The growth rate of Indian Automobile is so fast
that by 2016 Indian Industry will be world 7
largest manufacturer in all sections
 Being a developing economy there is lot of
scope for growth
By analyzing the industry on various
parameters with the help of implementing
Fundamental and Technical tools we came to
know that this industry has a lot of potential
to grow in future. So recommending to invest
in Automobile Industry have no doubt is going
to be a good and smart option because this
industry is booming like never before not only
in India but all around the world.
 www.google.co.in
 FDI statistic government of India
 India Central Statistical Organization
 Economic Times