Indian Auto Industry

Indian Auto Industry Current Scenario & Future Trends

Index
 Evolution of Indian Auto Industry Market Segmentation PEST Analysis Porter’s 5 forces Analysis  Obstacles, advantages and opportunities Analysis of Current trends Impact of Union Budget Impact of Tata Nano Impact of Tata Ace Future Trends in auto market

Evolution of Automobile Industry
Initial Years Manufacturing was licensed •High Customs duty on import •Steep excise duties & •sales tax •2 Major players: Premier Automobiles Ltd & Hindustan Motors Early to mid 90s

•Seller’s market and long waiting periods
•Delicensing in 1993 •Removal of capacity restrictions •Decrease in customs & excise •Auto finance boom- more players (foreign banks & non banking companies, better schemes.

Mid 90s – Till now •Buyers market

•Increase in Indigenization
•Easy Auto finance •Manufactures diversifying into related activities: finance lease, fleet management, insurance and used car market

1980s
•Entry of MUL, better product, with government support

•Seller’s Market
•Long Waiting Periods

Market Segmentation
• Two Wheeler • Three Wheeler • Passenger Vehicle(PV) • Commercial Vehicle(CV)*
Category wise market share in 08-09
2 wheelers 3 Wheelers Passenger Vehicles Commercial Vehicles

4% 16% 4%

76%

* This also includes Tractor volumes

Market Growth Rate
Total Industry Vs. Passenger Car Segment Growth Rate
Passenger Cars 37% 22% 15% 17% 8% 15% Total Industry 35%

Total Industry Vs. Commercial vehicle Segment Growth Rate
Commercial vehicle 29% 17% 11%15% 33% Total Industry

18% 14%

15% 15% 3% 3%

14%

6%
-2% 2007-08 3%

2003-04

2004-05

2005-06

2006-07

2008-09
-24%

2003-04

2004-05

2005-06

2006-07

-2% 2007-08 2008-09

Total Industry Vs. Three Wheeler Segment Growth Rate
Three Wheelers 29% 28% 15% Total Industry

Total Industry Vs. Two Wheelers Segment Growth Rate
Two Wheelers 16% 17% 17% 15% 11%14% 5% Total Industry

15% 11%