Macroenvironmental Factors Affecting Automobile Industry - Presentation Transcript
Macroenvironmental Factors Affecting Automobile Industry - Presentation Transcript 1. MACRO-ENVIRONMENTAL FACTORS AFFECTING AUTOMOBILE INDUSTRY 2. Introduction
* Tenth largest in the world * Expected to overtake China * Huge attraction for foreign car manufacturers * Dominated by domestic companies * Contributes 3.1% to the nominal GDP 3. Interesting Figures
India’s motorcycle market is the second largest in the world
Largest three-wheeler market
Second largest tractor manufacturer
Fifth largest commercial vehicle manufacturer
Largest two-wheeler manufacturer 4. 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
1980s
* Entry of MUL, better product, with government support
* Seller’s Market * Long Waiting Periods
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 – Early 2000s
* Buyers market * Increase in Indigenization * Easy Auto finance * Manufactures diversifying into related activities: finance lease, fleet management, insurance and used car market 5. Segment wise market share…
CVs
Three Wheeler
Passenger vehicles
Two Wheeler
* The industry has not experienced much change in its structure over the last 6 years * Two- wheelers form the major share of domestic sales * Passenger vehicles lead the exports market(57.4%) * 2 wheelers form the bulk of exports as well, but are losing share to Passenger vehicles * The growth in the two wheeler market is driven by the motorcycle market and is
* Tenth largest in the world * Expected to overtake China * Huge attraction for foreign car manufacturers * Dominated by domestic companies * Contributes 3.1% to the nominal GDP 3. Interesting Figures
India’s motorcycle market is the second largest in the world
Largest three-wheeler market
Second largest tractor manufacturer
Fifth largest commercial vehicle manufacturer
Largest two-wheeler manufacturer 4. 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
1980s
* Entry of MUL, better product, with government support
* Seller’s Market * Long Waiting Periods
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 – Early 2000s
* Buyers market * Increase in Indigenization * Easy Auto finance * Manufactures diversifying into related activities: finance lease, fleet management, insurance and used car market 5. Segment wise market share…
CVs
Three Wheeler
Passenger vehicles
Two Wheeler
* The industry has not experienced much change in its structure over the last 6 years * Two- wheelers form the major share of domestic sales * Passenger vehicles lead the exports market(57.4%) * 2 wheelers form the bulk of exports as well, but are losing share to Passenger vehicles * The growth in the two wheeler market is driven by the motorcycle market and is