Analysis of Macro-Strategy Dynamics: Automotive Industry
Analysis of Macro-Strategy Dynamics: Automotive Industry
1.1 1.2 Background and scope India is one of the largest markets and one of the fastest growing markets in the world for an automotive industry. By 2015 the annual vehicle sales are projected to increase by 4 million units per year. In the year 2010 India was crowned as the second fastest growing automobile market in the world after china, and is a home to 40 million cars in which 37 million are produced in the country. India has emerged as fourth largest exporter of cars in the year 2009. Automobile industry of India can be broadly classified under passenger vehicles, commercial vehicles, three wheelers and two wheelers, with two wheelers having a maximum market share of more than 75%. Automobile companies of India, Korea, Europe and Japan have a significant hold on the Indian market share. Tata Motors produces maximum numbers of mid and large size commercial vehicles, holding more that 60% of the market share. Motorcycles top the charts of two wheelers with Hero Honda being the key player. Bajaj by far is the number one manufacturer of three wheelers in India.
The car manufacturers capturing over 82% of the total market share majorly rule passenger vehicle section. Maruti since long has been the biggest car manufacturer holds more that 50% of the entire market. The Indian automotive industry is dominated by around 500 players, which account for more than 85% of the production. The turnover of this industry has been growing at a mammoth 28.05% per annum from 2002-03 onwards, which clarifies its emergence as one of India's fastest growing manufacturing sectors. During 1990s, the auto components market in India used to be dominated by supplies to the aftermarket with only 35% exports sourced by global Tier 1 OEMs (Original equipment Manufacturers) The industry made a sustained shift to the global Tier 1 market and today, the component manufacturers supply 75%
1.1 1.2 Background and scope India is one of the largest markets and one of the fastest growing markets in the world for an automotive industry. By 2015 the annual vehicle sales are projected to increase by 4 million units per year. In the year 2010 India was crowned as the second fastest growing automobile market in the world after china, and is a home to 40 million cars in which 37 million are produced in the country. India has emerged as fourth largest exporter of cars in the year 2009. Automobile industry of India can be broadly classified under passenger vehicles, commercial vehicles, three wheelers and two wheelers, with two wheelers having a maximum market share of more than 75%. Automobile companies of India, Korea, Europe and Japan have a significant hold on the Indian market share. Tata Motors produces maximum numbers of mid and large size commercial vehicles, holding more that 60% of the market share. Motorcycles top the charts of two wheelers with Hero Honda being the key player. Bajaj by far is the number one manufacturer of three wheelers in India.
The car manufacturers capturing over 82% of the total market share majorly rule passenger vehicle section. Maruti since long has been the biggest car manufacturer holds more that 50% of the entire market. The Indian automotive industry is dominated by around 500 players, which account for more than 85% of the production. The turnover of this industry has been growing at a mammoth 28.05% per annum from 2002-03 onwards, which clarifies its emergence as one of India's fastest growing manufacturing sectors. During 1990s, the auto components market in India used to be dominated by supplies to the aftermarket with only 35% exports sourced by global Tier 1 OEMs (Original equipment Manufacturers) The industry made a sustained shift to the global Tier 1 market and today, the component manufacturers supply 75%