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Auto mobile industry preformance

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Praveen Kohinkar
Praveen Kohinkar

The document discusses the automobile industry in India. It notes that India is the largest two-wheeler manufacturer, second largest tractor manufacturer, and fifth largest commercial vehicle manufacturer in the world. It outlines the key players in the passenger car, commercial vehicle, and two-wheeler segments. It provides an overview of the current state of the industry, outlook, positive and negative factors, and historical sales trends. It also discusses the upcoming launches of low-cost cars from Tata and Bajaj that could significantly increase car ownership levels in India.

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Automobile Industry Performance- key contributor to the Indian economy Prepared By PRAVEEN KOHINKAR
Indian Market Overview Largest Two-Wheeler Manufacturer in the World 2nd Largest Tractor Manufacturer in the World 5th Largest Commercial Vehicle Manufacturer in the World Global Motorcycle Manufacturer is in India 4th Largest Car Market in Asia - crossed the 1 million mark
Key players in the Indian auto industry - Passenger Cars and CVs The largest player in the Indian industry. Plans to launch new and exciting products in the Indian markets, including the 100,000 car Suzukis JV in India and the largest passenger car manufacturer in India The third largest passenger car manufacturer in India and one of the largest exporters of vehicles. Has established India as one of its manufacturing bases in the world. Is planning to invest heavily to boost exports from India Has vision of capturing 10 % share of the Indian passenger car market by 2010 One of the leading players in the Indian premium cars segment One of the leading players in the Indian premium cars segment
Key players in the Indian Auto Industry - Passenger Cars and CVs One of the leading players in the Indian premium cars segment. One of the largest players in the UV / MUV segment The 2nd largest CV manufacturer in India Worlds Leading supplier of Commercial Tansport, The brand isshared between Volvo Group and Volvo Cars Has great plans for India it is willing to postion India as its manufacturing base; it has joined hands with Renault and Mahindra to produce cars. As its sister Renault has decided to enter India in a bigger way with car like Logan, Nissan also wants to join the fray
Key players in the Indian Auto Industry - Passenger Cars and CVs The GERMAN gIANT Bajaj Auto, the largest three-wheeler maker in the country, said it is planning to enter the four-wheeler market with small cars has taken up the challenge of making India's cheapest car.
Key players in the Indian Auto Industry - 2 wheelers The largest 2 wheeler manufacturer in the world The 2nd largest 2- wheeler manufacturer in India and the largest 3 wheeler manufacturer. Has plans for establishing a manufacturingfacility in Indonesia & Also Planning to Enter in four wheels The third largest 2 wheeler manufacturer in India. Has plans for establishing a manufacturing facility in Indonesia Has recently entered the Indian market through its direct subsidiary ( in addition to its JV Hero Honda) Has recently entered the Indian market through its direct subsidiary
Key players in the Indian Auto Industry - 2 Wheelers Still Struggling to show its presence in Indian Market, is also planning to launch Scooter By-2009 After its Success in 3&4 Wheelers Recently A 250 bn Group Completed its Portfolio By Entering in 2 Wheeler segment
Current Scenario Weak demand across all segments drag aggregate volume growth to record first monthly decline during FY09, volumes shrink 9% YoY during Oct-08 Major players post negative sales growth during festivals month despite new variants/launches Higher interest rates and stiff credit norms reduce affordability main villains for decline Dip in consumer confidence and postponement of purchases ahead of new model launches further dent demand CVs witness sharp 36% YoY decline, while domestic passenger cars and 2-Wheelers also tripped Exports maintained strong growth; rising 41% YoY with sales of 144,083 units during Oct 08
Outlook Domestic macro scene remains challenging with production cuts and job-losses across industries.Bunching of all negative forces might see auto sales see weakest quarter (3Q) ending Dec 08 Huge capex incurred by major auto players would squeeze the free cash flows as well as return ratios for the companies Drop in commodity prices and softening interest rates could give relief to the auto majors by lifting cost pressure Short-term outlook is grim. Recent liquidity transfusions by the central bank and global stimuli make long term outlook positive on the sector Near term, we maintain neutral outlook on the sector. Long term, the outlook is positive with favorable demographics, lower penetration and prospects of return to higher margins
Positive Factors Good performance of the economy higher all round growth leading to high GDP growth of 8% Brisk activities on infrastructural development Emergence of India as an manufacturing hub for the Automotive Industry
Negative Factors No Excise duty reduction on passenger vehicles No Softening of interest rates and improved financing Cancellation on Availability of finance in rural and urban areas on 2 Wheelers Global Recession Impact hitting badly since mid of 2008 Increase in input prices Crude oil & derivatives Ferrous & Non-Ferrous Metals Natural rubber Increase in Steel Prices
Automobile Domestic Sales Trends 9,000,000 Automobile Domestic Sales Trends 8,000,000 7,000,000 sale s Figure s 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Passenger Vehicles 707,198 902,096 1,061,572 1,143,076 1,379,979 1,547,985 Commercial Vehicles 190,682 260,114 318,430 351,041 467,765 486,817 Three Wheelers 231,529 284,078 307,862 359,920 403,910 364,703 Tw o Wheelers 4,812,126 5,364,249 6,209,765 7,052,391 7,872,334 7,248,589 Passenger Vehicles Year Commercial Vehicles Three Wheelers Two Wheelers
OverAll Indian Automobile Market Scenario (2007-08) Three Wheelers 4% CVs 4% Total Passenger Vehicles 14% Two Wheelers 78%
2 Wheeler Sales performance F/Y Wise 7000000 6000000 5000000 4000000 M o t o r Cycles Sco o ters 3000000 M o p ed s 2000000 1000000 0 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Motor Cycles 2887194 3647493 4170445 4964753 5815417 6553664 5768341 Scooters 908268 825648 886295 922428 908159 940673 1050167 Mopeds 408263 338985 307509 322584 332741 355870 415051 Y ear
Used Cars V/s New Cars % 0.6% Premium Segment Used Cars 100,000 Dream Car 50% By TATA & BAJAJ Used Cars sale v/s New Car sale 99.4% Entry level, Deluxe, Scooter- New Cars Segment 50% Premium Segment includes Vehicles Above 75000(Pulsar220,Karizma, Yamaha R1)
Jan 2009-The Wait is Over The TATA Dream Car(1 Lac Car) Hamara Bajaj takes to four wheels&has taken The Long awaited TATA NANO Queen is on up a challenge fo making indias cheapest Car the way The Another Queen is getting Ready to Hit Will push up the 4 wheeler Market & change The Indian Roads the landscape of the Indian passenger cars Bajaj s Cheapest CarGetting Prepared
Indian Automotive Ahead 2013 30 2012 25 2011 20 2010 % Sales 15 2009 10 5 0 Cars No longer remains a status symbol Car becomes common in middle class segment too like cell phones
India Next Traffic Jams Parking Space Problem Fluctuation in Petrol Prices Increase in No of Accidents Increase in Travelling Time Less Mileage
Back 2 Pavillion % One Lac Car Customers 100,000 Car Customers Car can be used only as family transport vehicles 2 Wheeler the only option that remains with indian to lead a comfortable life

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Auto mobile industry preformance

  • 1. Automobile Industry Performance- key contributor to the Indian economy Prepared By PRAVEEN KOHINKAR
  • 2. Indian Market Overview Largest Two-Wheeler Manufacturer in the World 2nd Largest Tractor Manufacturer in the World 5th Largest Commercial Vehicle Manufacturer in the World Global Motorcycle Manufacturer is in India 4th Largest Car Market in Asia - crossed the 1 million mark
  • 3. Key players in the Indian auto industry - Passenger Cars and CVs The largest player in the Indian industry. Plans to launch new and exciting products in the Indian markets, including the 100,000 car Suzukis JV in India and the largest passenger car manufacturer in India The third largest passenger car manufacturer in India and one of the largest exporters of vehicles. Has established India as one of its manufacturing bases in the world. Is planning to invest heavily to boost exports from India Has vision of capturing 10 % share of the Indian passenger car market by 2010 One of the leading players in the Indian premium cars segment One of the leading players in the Indian premium cars segment
  • 4. Key players in the Indian Auto Industry - Passenger Cars and CVs One of the leading players in the Indian premium cars segment. One of the largest players in the UV / MUV segment The 2nd largest CV manufacturer in India Worlds Leading supplier of Commercial Tansport, The brand isshared between Volvo Group and Volvo Cars Has great plans for India it is willing to postion India as its manufacturing base; it has joined hands with Renault and Mahindra to produce cars. As its sister Renault has decided to enter India in a bigger way with car like Logan, Nissan also wants to join the fray
  • 5. Key players in the Indian Auto Industry - Passenger Cars and CVs The GERMAN gIANT Bajaj Auto, the largest three-wheeler maker in the country, said it is planning to enter the four-wheeler market with small cars has taken up the challenge of making India's cheapest car.
  • 6. Key players in the Indian Auto Industry - 2 wheelers The largest 2 wheeler manufacturer in the world The 2nd largest 2- wheeler manufacturer in India and the largest 3 wheeler manufacturer. Has plans for establishing a manufacturingfacility in Indonesia & Also Planning to Enter in four wheels The third largest 2 wheeler manufacturer in India. Has plans for establishing a manufacturing facility in Indonesia Has recently entered the Indian market through its direct subsidiary ( in addition to its JV Hero Honda) Has recently entered the Indian market through its direct subsidiary
  • 7. Key players in the Indian Auto Industry - 2 Wheelers Still Struggling to show its presence in Indian Market, is also planning to launch Scooter By-2009 After its Success in 3&4 Wheelers Recently A 250 bn Group Completed its Portfolio By Entering in 2 Wheeler segment
  • 8. Current Scenario Weak demand across all segments drag aggregate volume growth to record first monthly decline during FY09, volumes shrink 9% YoY during Oct-08 Major players post negative sales growth during festivals month despite new variants/launches Higher interest rates and stiff credit norms reduce affordability main villains for decline Dip in consumer confidence and postponement of purchases ahead of new model launches further dent demand CVs witness sharp 36% YoY decline, while domestic passenger cars and 2-Wheelers also tripped Exports maintained strong growth; rising 41% YoY with sales of 144,083 units during Oct 08
  • 9. Outlook Domestic macro scene remains challenging with production cuts and job-losses across industries.Bunching of all negative forces might see auto sales see weakest quarter (3Q) ending Dec 08 Huge capex incurred by major auto players would squeeze the free cash flows as well as return ratios for the companies Drop in commodity prices and softening interest rates could give relief to the auto majors by lifting cost pressure Short-term outlook is grim. Recent liquidity transfusions by the central bank and global stimuli make long term outlook positive on the sector Near term, we maintain neutral outlook on the sector. Long term, the outlook is positive with favorable demographics, lower penetration and prospects of return to higher margins
  • 10. Positive Factors Good performance of the economy higher all round growth leading to high GDP growth of 8% Brisk activities on infrastructural development Emergence of India as an manufacturing hub for the Automotive Industry
  • 11. Negative Factors No Excise duty reduction on passenger vehicles No Softening of interest rates and improved financing Cancellation on Availability of finance in rural and urban areas on 2 Wheelers Global Recession Impact hitting badly since mid of 2008 Increase in input prices Crude oil & derivatives Ferrous & Non-Ferrous Metals Natural rubber Increase in Steel Prices
  • 12. Automobile Domestic Sales Trends 9,000,000 Automobile Domestic Sales Trends 8,000,000 7,000,000 sale s Figure s 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Passenger Vehicles 707,198 902,096 1,061,572 1,143,076 1,379,979 1,547,985 Commercial Vehicles 190,682 260,114 318,430 351,041 467,765 486,817 Three Wheelers 231,529 284,078 307,862 359,920 403,910 364,703 Tw o Wheelers 4,812,126 5,364,249 6,209,765 7,052,391 7,872,334 7,248,589 Passenger Vehicles Year Commercial Vehicles Three Wheelers Two Wheelers
  • 13. OverAll Indian Automobile Market Scenario (2007-08) Three Wheelers 4% CVs 4% Total Passenger Vehicles 14% Two Wheelers 78%
  • 14. 2 Wheeler Sales performance F/Y Wise 7000000 6000000 5000000 4000000 M o t o r Cycles Sco o ters 3000000 M o p ed s 2000000 1000000 0 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Motor Cycles 2887194 3647493 4170445 4964753 5815417 6553664 5768341 Scooters 908268 825648 886295 922428 908159 940673 1050167 Mopeds 408263 338985 307509 322584 332741 355870 415051 Y ear
  • 15. Used Cars V/s New Cars % 0.6% Premium Segment Used Cars 100,000 Dream Car 50% By TATA & BAJAJ Used Cars sale v/s New Car sale 99.4% Entry level, Deluxe, Scooter- New Cars Segment 50% Premium Segment includes Vehicles Above 75000(Pulsar220,Karizma, Yamaha R1)
  • 16. Jan 2009-The Wait is Over The TATA Dream Car(1 Lac Car) Hamara Bajaj takes to four wheels&has taken The Long awaited TATA NANO Queen is on up a challenge fo making indias cheapest Car the way The Another Queen is getting Ready to Hit Will push up the 4 wheeler Market & change The Indian Roads the landscape of the Indian passenger cars Bajaj s Cheapest CarGetting Prepared
  • 17. Indian Automotive Ahead 2013 30 2012 25 2011 20 2010 % Sales 15 2009 10 5 0 Cars No longer remains a status symbol Car becomes common in middle class segment too like cell phones
  • 18. India Next Traffic Jams Parking Space Problem Fluctuation in Petrol Prices Increase in No of Accidents Increase in Travelling Time Less Mileage
  • 19. Back 2 Pavillion % One Lac Car Customers 100,000 Car Customers Car can be used only as family transport vehicles 2 Wheeler the only option that remains with indian to lead a comfortable life