Table of Content
1. Automobile industy
1.1. Industry overview
1.2. Snippets:some facts about industry
1.3. Types of vehicles
2. Automobile marketing in India
3. History of automobile industry in India
4. Major players in the automobile sector
6.1. List of automobile manufacturers in India
a. Indian companies
b. Multi-national companies
7. Maruti a case study
7.1. Profile
7.2. Maruti udyog limited
7.3. Maruti Suzuki India limited
7.4. Partner for the joint venture
7.5. Joint venture- related issues
7.6. Industrial relations
7.7. Sales of automobiles- trends in automobile sector
7.8. Maruti insurance
7.9. Maruti finance
7.10. Maruti true value
7.11. N2N Fleet Management
7.12. Accessories
7.13. Maruti Driving School
7.14. Exports
7.15. Industry Overview
7.16. Geographical overview
7.17. Maruti Udyog Limited in India
7.18 SWOT analysis of company with respect to its “SWIFT” model.
a. Strengths
b. Weakness
c. Opportunity
d. Threats
7.19. “CONSUMER SURVEY & PURCHASING BEHAVIOR ANALYSIS of Maruti
Swift”
7.20. CONSUMERS OF MARUTI SWIFT
7.21. Customers purchasing behaviour analysis
7.22 The findings of the survey
7.23. Areas of imporovement
7.24 Market share
7.25. Levels of competence
7.26. Maruti vs. Hyundai
7.27. Comparison of getz and swift
8. Segmentation of car market in India
9. Targeting
10. Positioning 11.Automobile Finance
12. Major Automobile Financiers
13. Contribution of Automobile Financiers to the Indian Automobile Market
14. Maruti Finance
15. Tata Motors Finance
16. Facts and figures
17. FDI in the automobile sector
18. Mergers and Acquisition (M&A), Joint Venture (JV)
19. Testing and Certification
20. Auto Manufacturers Association
21. Expansion of the dealers network in India
22. Automobile Dealers Network in India
23. THE KEY FACTORS BEHIND THIS UPSWING
24. EVEN GROWTH
25. Hindustan motors
26. Spinoffs and acquisitions
27. Hero Honda Motors Limited,
28. A Hero Honda “Splendor” bike
Just-in-Time Manufacturing
29. Ancillarisation, labor relations, diversification
30. Tata motors limited
31. To the future: The Nano revolution
32. Controversies: Mass motorization and climate change
33. Conclusion
Abstract
As we see the automobile market now it was not like that in the beginning, in the
beginning, if we go to pre- independence times people were too apprehensive of motor
vehicles entering the country. They used to throw nails in the path of cars, when their carts
can pass over that. Industry has come a long way. And in the early years of independence,
due to the protectionist policies of the government only a limited number of players were
permitted to manufacture cars in the country. There was high customs duty on import of
cars from other countries. There were only two major players: premier automobiles ltd and
hisdustan motors ltd.
Then there started the next phase with the collaboration of Japanese firm maruti Suzuki
when the first car was presented to the first buyer of maruti 800 in the country in 1983. it
was a huge success. At that time it was the lone player with such good features.
In the 90s it was basically a sellers market.In the 1993 there was de-licensing. And with
the ease in getting manufacturing licences in the country many players entered the
country.further, there was a cut in the excise and customs duty. Then the banks , and
non-banking finance companies came up to make the best of the opportunity and all this
lead to a boost in sales and record production.
From the 90 to 2000s the market become more concerned about the needs of consumer and
because of the growing competition in the market, there was a need to provide better deals
to the customers on their conditions. This all made Indian car market, a buyers market.
Then manufacturers started diversifying in to related activities like finance lease, fleet
management, insurance and used car market.
With the low emis and growing disposable income of the consumers, there is a great
prospect for the automobile and they are tapping this prospect through marketing and
research activities that have become so important to survive in the competition.
Automobile Industry
One of the key industries propelling the Indian Economy today is the automobile Industry.
As steel, petroleum and manufacturing industries are dependent on this industry, it
employs thousands of people directly or indirectly. This industry, therefore, has a key role
to play in the economic growth of India. We are all aware of the fact that a sound
transportation system can contribute to a countrys economic development to a great extent.
The Automotive Industry in India is one of the largest industries and a key sector of the
economy. The Indian automotive industry started from 1991with the governments
de-licensing of the sector and subsequent opening up for 100 per cent FDI through
automatic route. Since then many large global companies have set up their facilities in
India taking the production of vehicle from 2 million in 1991 to 9.7 million in 2006.
An increase in the disposable income of the middle class coupled with low EMI values and
friendly government policies are what have made a difference to this sector. With an
annual contribution of 4% to the GDP and accounting for about 5% of the total industrial
output, this segment clearly stands out as a significant contributor to the economic growth.
The automobile industry in India is the tenth largest in the world with an annual production
of approximately 2 million units. India is expected to overtake China as the worlds fastest
growing car market in terms of the number of units sold and the automotive industry is one
of the fastest growing manufacturing sectors in India. Because of its large market (India
has a population of 1.1 billion; the second largest in the world), a low base of car
ownership (25 per 1,000 people ) and a surging economy, India has become a huge
attraction for car manufacturers around the world.
Comprising of a healthy mix of Indian players such as Mahindra, Bajaj, Tata, Ashok
Leyland, hero honda and some international players such as Ford, Toyota, GM Honda,
Daimler Chrysler, Hyundai Suzukiand Volvo, the Indian consumers are spoilt for choice.
Be it buying a car or a two-wheeler, the customer has a wide array of products to choose
from, according to his needs and budget. As there are so many companies now the pricing
has become competitive with the consumers emerging as winners.
The Indian automotive industry has witnessed an unprecedented boom in recent years,
owing to the improvement in living standards of the middle class, and a significant
increase in their disposable incomes. The size of the Indian automotive industry is
estimated between US$ 120.09 billion and US$ 155.12 billion by 2016. The industry is
expected to touch the 10 million mark, to which the Commercial Vehicle Segment will be
a major contributor. Industry experts peg the
Indian Automobile sales growth at a compounded annual growth rate (CAGR) of 9.5
percent – 13008 million vehicles – by 2010.
Industry Overview
Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the
Automobile Industry of India has come a long way. During its early stages the auto
industry was overlooked by the then Government and the policies were also not favorable.
The liberalization policy and various tax reliefs by the Govt. of India in recent years has
made remarkable impacts on Indian Automobile Industry. Indian auto industry, which is
currently growing at the pace of around 18 % per annum, has become a hot destination for
global auto players like Volvo, General Motors and Ford.
A well developed transportation system plays a key role in the development of an
economy, and India is no exception to it. With the growth of transportation system the
Automotive Industry of India is also growing at rapid speed, occupying an important place
on the canvas of Indian economy.
Today Indian automotive industry is fully capable of producing various kinds of vehicles
and can be divided into 03 broad categories : Cars, two-wheelers and heavy vehicles.
Snippets(some facts about industry)
The first automobile in India rolled in 1897 in Bombay.
India is being recognized as potential emerging auto market.
Foreign players are adding to their investments in Indian auto industry.
Within two-wheelers, motorcycles contribute 80% of the segment size.
Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%).
Tata Motors dominates over 60% of the Indian commercial vehicle market.
2/3rd of auto component production is consumed directly by OEMs.
India is the largest three-wheeler market in the world.
India is the largest two-wheeler manufacturer in the world.
India is the second largest tractor manufacturer in the world. India is the fifth largest
commercial vehicle manufacturer in the world.
The number one global motorcycle manufacturer is in India.
India is the fourth largest car market in Asia – recently crossed the 1 million mark.
Segment Knowhow
Among the two-wheeler segment, motorcycles have major share in the market. Hero
Honda contributes 50% motorcycles to the market. In it Honda holds 46% share in scooter
and TVS makes 82% of the mopeds in the country. 40% of the three-wheelers are used as
goods transport purpose. Piaggio holds 40% of the market share. Among the passenger
transport, Bajaj is the leader by making 68% of the three-wheelers. Cars dominate the
passenger vehicle market by 79%. Maruti Suzuki has 52% share in passenger cars and is a
complete monopoly in multi purpose vehicles. In utility vehicles Mahindra holds 42%
share. In commercial vehicle, Tata Motors dominates the market with more than 60%
share. Tata Motors is also the worlds fifth largest medium & heavy commercial vehicle
manufacturer.
Miscellaneous
Hyderabad, the Hi-Tech City, is going to come up with the first automobile mall of the
