1. Indian Automobile Sector Analysis
Aboli Joshi 12224
Aditya Amist 12201

2. Agenda Overview Company Analysis Industry analysis Competition
Global Scenario
Tata Motors
Indian Scenario
Mahindra
Industry analysis
Maruti Suzuki
Competition
Porter 5 forces
SWOT Analysis/ TOWS
Future of Automotive Sector
Regulatory Framework

3. Overview
Market Size:
,287,737 units
,576,756 units
Production drop of 8.7% from 2011 to 2012 (2,029,589 units).
Source: OICA (Org for Motor Vehicles, Paris)

4. Competition

5. Global Scenario

8. Indian scenario
Indian automobile sector stands as a largest three-wheeler market, second largest two-wheeler market, tenth largest passenger car market and the fifth largest bus and truck market.
However, the sector has suffered a slowdown in the fiscal year High ownership costs like fuel costs, the cost of registration, excise duty, road tax and slow rural income growth have affected the industry growth to an extent.
However, in the long run, rising incomes, improved affordability and untapped markets demonstrate promising opportunities for automobile manufactures in India.

12. Investment of Top Five Countries in Automobile Industries
in India
Ranks
Country
Amount of FDI Inflows
% of FDI Inflows
Rupees in crores
In US million 1
Japan
23.69 2
USA
838.7
14.61 3
Netherlands
722.25
12.58 4
Italy
634.04
11.05 5
Mauritius
495.32
8.63
Total
4050
70.56

13. Sub Sectors of FDI inflows
Sub Sectors of FDI Equity Inflows in Automobile Industries
Sub Sectors of FDI inflows
Amount of FDI inflow
Rs in crores
US $ in million
%age with total FDI inflows
Automobile industry
6,830.35
1,479.20
1.16
Passenger cars
13,516.25
3,008.04
2.37
Auto ancillary/ parts
2,857.06
635.44
0.5
Other (transport)
2,768.93
617.47
0.49
Total
25,972.59
5,740.16
4.52

15. Porters Forces Model Supplier Power New Entrant Substitution
Competition
Supplier Power
New Entrant
Substitution
Buyer Power

16. SWOT Analysis Strengths Weaknesses Large domestic market
Low labour productivity
Sustainable labour cost advantage
High interest costs and high overheads
Government incentives for manufacturing plants
Rising cost of production
Low investment in Research and Development
Strong engineering skills in design
Able to achieve significant gains in productivity

17. Opportunities Threats Commercial vehicles
Rising interest rates and other derived financial policies.
Heavy thrust on mining and construction activity
Cut throat competition
Increase in the income level
Lack of technology for Indian Companies
Cut in excise duties
Rising rural demand

18. Regulatory framework Governed by :
Motor vehicles act, 1988
Central motor vehicles rules, 1989
Ministry of shipping, road transport and highways (MoSRT&H) – nodal agency
Ministry of heavy industry and public enterprises
Bureau of indian standards (BIS)
Automotive research association of India (ARAI)
Society of Indian automobile manufacturers (SIAM)
Automotive component manufacturers association (ACMA)

20. CMVR – TSC Standing committee Provide technical clarification
Preparation of new standards
Review amendments
Recommend commissioning of testing facilities and provide funding for the same
Standing committee
Discuss future emission norms
Recommend norms for in-use vehicles
Finalise test procedures

21. FINANCIAL ANALYSIS Comparative study of
Maruti Suzuki
Tata Motors
Maruti Suzuki owns the largest market share in the 4-wheeler market in India.

22. Sales and PAT performance

23. Gross profit margins

24. Net profit margin

25. Current ratio and quick ratio

26. ROCE and ROE

27. Financial Risk analysis

28. Future prospects
India – seventh largest in sector by 2016 and third largest by 2030
Extremely low current levels of vehicle penetration
Projected high rate of GDP growth
Huge government investments in infrastructure
Upwardly mobile middle class population

29. Questions.??
Thank You