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A N A LY S I S O F I N D I A N A U T O M O B I L E I N D U S T R Y

Hasnaeen Md.Sharfuddin-1010665030

Muntasir Mamun

1010471030Md. Sabique Mohtadi

1010737030Md. Shah Ahsan

1010762030

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1. Overview2. Aim of the Project & List of top 5 companies

3. Analysis of Indian Automobile Industry

4. Fundamental Analysis

a. Economy

b. Industry

5. Conclusion

6. References

Objective:

Economy Analysis

Industry Analysis

Company Analysis

Conclusion

References

Aim of project

Overview

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Indian automobile industry has grown leaps and bounds since 1898,

a time when a car had touched the Indian streets for the first time.

At present it holds a promising 9th position in the entire world with

being # 1 in Two Wheelers and # 4 in commercial vehicles.

Withstanding a growth rate of 13% per annum and an annual

production of more than 2 million units, it may not be an exaggeration

to say that this industry in the coming years will soon touch a figure of

10 million units per year.

It is expected that the Automobile Industry in India would be the 7th

largest automobile market within the year 2016.

Overview:

Economy Analysis

Industry Analysis

Company Analysis

Conclusion

References

Aim of project

Overview

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The objective of this project is deeply analyzing our Indian AutomobileIndustry for investment purpose by monitoring the growth rate and

performance on the basis of historical data.

The main objectives of the Project study are:

Detailed analysis of Automobile industry which is gearing towardsinternational standards

Analyze the impact of qualitative factors on industrys and companys

prospects

Application of various Technical Tools and Fundamental tools (like

Financial and Non-financial statements).

AIM OF THE PROJECT:

Economy Analysis

Industry Analysis

Company Analysis

Conclusion

References

Aim of project

Overview

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Economy Analysis

Industry Analysis

Company Analysis

Conclusion

References

Aim of project

Overview Top Automotive Companies In

INDIALeading Companies:

Maruti Suzuki IndiaLimited (MSIL)

Hyundai Motor IndiaLimited (HMIL)Tata Motors Mahindra &Mahindra Limited(M&M) Hero Motors Limited(HML)

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India has become a hub of domestic and exports business. The

automobile sector has been contributing its share to the shining

economic performance of India in the recent years.

To understand this industry for the purpose of investment we need to

analyze it by following four approaches:1) Political Analysis

System of the government

Government policy

Political stability

Pest Analysis:

Economy Analysis

Industry Analysis

Company Analysis

Conclusion

References

Aim of project

Overview

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GDP and Automobile Industry:In absolute terms, India is 9th in the world in terms of nominal

factory output(its $1.22 trillion)

ECONOMY:

Data source: India central statistical organization

Economy Analysis

Industry Analysis

Company Analysis

Conclusion

References

Aim of project

Overview

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GDP and Automobile Industry:The per capita Income is near about Rs38,000 reflecting

improvement in the living standards of an average Indian.

Today, automobile sector in India is one of the key sectors of theeconomy in terms of the employment.

The market value of Automobile Industry is more than US$8 bl. andContribution in Indian GDP is near about 5% and will be double by 2016.

ECONOMY:

Data source: Google Finance

Economy Analysis

Industry Analysis

Company Analysis

Conclusion

References

Aim of project

Overview

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Recession:

Global recession has hit the Indian auto industry, impact of recession is

evident now on industry as sales & growth of automobile companies have

declined. Passenger Vehicles segment registered negative growth.

In December 2010, overall production fell by 22 % over the same month

last year.

The sales in December 2010 for passenger vehicles fell by 13.86% over

December 2009.

Two Wheelers registered minor growth of 1.85 % during April

December 2010.

Although the sector was hit by economic slowdown, overall production

increased from 10.85 million vehicles in 2009-10 to 11.17 million vehicles

in 2010-11.

ECONOMY:

Economy Analysis

Industry Analysis

Company Analysis

Conclusion

References

Aim of project

Overview

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FDI inflow and Out flow

Position in the world market

Per capita income

Living Cost

Employment Rate

Life Expectancy at Birth

ECONOMY:

Economy Analysis

Industry Analysis

Company Analysis

Conclusion

References

Aim of project

Overview

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Economy Analysis

Industry Analysis

Company Analysis

Conclusion

References

Aim of project

Overview

Technological Analysis

Social Analysis

LanguageReligionEducation

Social Strata

Technological Analysis

InfrastructureSkilled human resources

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Overview

Aim of project

Economy Analysis

Industry Analysis

Company Analysis

Conclusion

References

0

200000

400000

600000

8000001000000

1200000

1400000

1600000

1800000

Passenger Vehicles

Commercial Vehicles

Three Wheelers

Two Wheelers

Grand Total

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Economy Analysis

Industry Analysis

Company Analysis

Conclusion

References

Aim of project

Overview Factor Endowment

Land

Labor

Power

Transportation

Natural resources

Demand Condition

Market size

Sophisticacy of consumers

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Economy Analysis

Industry Analysis

Company Analysis

Conclusion

References

Aim of project

Overview

Related and Supporting Industries

Number of suppliers

Suppliers bargaining power

Backward linkage

Firm strategy and rivalry

Competition among competitors

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Large domestic marketSustainable labor cost advantageCompetitive auto component vendor baseGovernment incentives for manufacturing plantsStrong engineering skills in design etc

Low labor productivityHigh interest costs and high overheads make the production uncompetitive

Various forms of taxes push up the cost of productionLow investment in Research and DevelopmentInfrastructure bottleneck

Commercial vehicles: SC ban on overloadingHeavy thrust on mining and construction activity

Increase in the income levelCut in excise dutiesRising rural demand

Rising input costsRising interest ratesCut throat competition

Overview

Aim of project

Industry Analysis

Company Analysis

Conclusion

References

Economy Analysis

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Economy Analysis

Industry Analysis

Company Analysis

Conclusion

References

Aim of project

Overview Reason of Joint-venture

Access to new markets and distribution

networks

Increased capacity

Sharing of risks and costs with a partner

Access to greater resources, including

specialized staff, technology and finance

Enable growth without having to borrow

fundsBenefit from being able to join forces in

purchasing, research and development.

Flexibility

Decisions

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India should look forward to create skill work force.They should invest more on Research and Developmentsector to enrich it.For automobile industry infrastructure is an important factor.So Indian policy maker should try to initiative to improve it.

Currently India is facing inflation rate which does not matchwith their economy. Price of raw material is becomingunstable. Indian government should try to fix it.As automobile industry is a rising manufacturing sectorIndian government should lower interest rate which is

unfavorably high at this moment.Corruption in Indian politics is discouraging foreigncompanies to improve. Indian government should be awareof it and interested foreign companies should be carefulabout this factor

Recommendations

References

Conclusion

Company Analysis

Industry Analysis

Economy Analysis

Aim of project

Overview

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Indian Automobile has a lot of scope for both two wheelers and fourwheelers due to development in infrastructure of the country.

According to Indian Statistical Organization the per capita income(Rs.38000) is increasing and national income at the rate of 14.4%which shows potential to buy vehicle in auto industry. The growthrate of Indian Automobile is so fast that by 2016 Indian Industrywill be world 7 largest manufacturer in all sections.

The Indian auto market is still untapped the majority of the peoplein country dont own a four wheeler and all the major autocompanies are trying to increase their sales by several moves.

By analyzing the current trend of Indian Economy and AutomobileIndustry we can say that there is lot of scope for growth.

Economy Analysis

Industry Analysis

Company Analysis

Conclusion

References

Aim of project

Overview Conclusion:

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REFERANCES:

Books:o Auto Drive Magazine

Reference Materials: o The Economic Timeso RBI annual reporto ASSOCHAM reporto India Central Statistical Organization

Websites: o http://www.googlefinance.com o http://www.auto carindia .com o http://www.wheelsunplugged.com o http://www. assocham .org o http://www.wikipedia.com o http://www.rbi.org.in

Search Engines: o www.google.com o www.yahoo.com o www.bing.com

http://www.googlefinance.com/http://www.autocarindia.com/http://www.autocarindia.com/http://www.autocarindia.com/http://www.wheelsunplugged.com/http://www.assocham.org/http://www.assocham.org/http://www.assocham.org/http://www.wikipedia.com/http://www.rbi.org.in/http://www.google.com/http://www.yahoo.com/http://www.bing.com/http://www.bing.com/http://www.yahoo.com/http://www.google.com/http://www.rbi.org.in/http://www.wikipedia.com/http://www.assocham.org/http://www.assocham.org/http://www.assocham.org/http://www.wheelsunplugged.com/http://www.autocarindia.com/http://www.autocarindia.com/http://www.autocarindia.com/http://www.googlefinance.com/

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