Automobile Industry Fundamental Analysis

A
REPORT
ON
FINANCIAL ANALYSIS
OF
THE AUTOMOBILE INDUSTRY

2013

CONTENTS
Serial No.
Content
Page No.
1.
Introduction
3
2.
RATIO ANALYSIS

2.1 Liquidity Ratios.............................................................................
2.2 Activity Ratios...............................................................................
2.3 Solvency Ratios.............................................................................
2.4 Profitability Ratios.........................................................................

5 to 8 9 to 14
15 to 18
19 to 24
3.
Conclusion
25

INTRODUCTION
The favourable Indian market conditions are acting as a catalyst for luxury and premium carmakers, which are receiving impetus from new launches. India is emerging as an export hub for sports utility vehicles (SUVs). Global automobile majors are looking to leverage India's cost-competitive manufacturing practices and are assessing opportunities to export SUVs to Europe, South Africa and Southeast Asia too. India is also one of the key markets for hybrid and electric medium-heavy-duty trucks and buses.
Government initiatives: The Government of India allows 100 per cent foreign direct investment (FDI) in the automotive industry through automatic route. The Government also plans to accelerate the supply of electric vehicles over the next eight years. It is expected that there will be a demand for 5-7 million electricity-operated vehicles by 2020.
The contribution of automotive sector in the gross domestic product (GDP) is expected to double, reaching a turnover worth US$ 145 billion in 2016, with special focus on export of small cars, MUVs, two & three wheelers and auto components, as per the Automotive Mission Plan (AMP) 2006-2016.
With the view of the above