Auto industry india 2011

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ANALYSIS OF INDIAN AUTOMOBILE INDUSTRY Presentation On: PRESENTED BY : Arpit Bhardwaj Jalaj Purohit MD. Tausif Anwar Ashwani Kumar Dhairya Gupta Anish Prasad Bjlay Tiwari Neha Upadhyay Neha Nisha Khushbu Soni

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Objective Overview Aim of the Project & List of top 5 companies Analysis of Indian Automobile Industry Fundamental Analysis a. Economy b. Industry Conclusion References Objective: Economy Analysis Industry Analysis Company Analysis Conclusion References Aim of project Overview

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Overview Indian automobile industry has grown leaps and bounds since 1898, a time when a car had touched the Indian streets for the first time. At present it holds a promising 9th position in the entire world with being # 1 in Two Wheelers and # 4 in commercial vehicles. Withstanding a growth rate of 13% per annum and an annual production of more than 2 million units, it may not be an exaggeration to say that this industry in the coming years will soon touch a figure of 10 million units per year. It is expected that the Automobile Industry in India would be the 7th largest automobile market within the year 2016. Overview: Economy Analysis Industry Analysis Company Analysis Conclusion References Aim of project Overview

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The objective of this project is deeply analyzing our Indian Automobile Industry for investment purpose by monitoring the growth rate and performance on the basis of historical data. The main objectives of the Project study are: Detailed analysis of Automobile industry which is gearing towards international standards Analyze the impact of qualitative factors on industry’s and company’s prospects Application of various Technical Tools and Fundamental tools (like Financial and Non-financial statements). Objective AIM OF THE PROJECT: Economy Analysis Industry Analysis Company Analysis Conclusion References Aim of project Overview

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Companies Economy Analysis Industry Analysis Company Analysis Conclusion References Aim of project Overview Top Automotive Companies In INDIA Leading Companies: Maruti Suzuki India Limited (MSIL ) Hyundai Motor India Limited (HMIL ) Tata Motors Mahindra & Mahindra Limited (M&M) Hero Motors Limited ( HML )

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India has become a hub of domestic and exports business. The automobile sector has been contributing its share to the shining economic performance of India in the recent years. To understand this industry for the purpose of investment we need to analyze it by following four approaches: 1). Fundamental Analysis a. Economy b. Industry 2). Export Analysis 3). Five forces 4). Swot Analysis ANALYSIS OF AUTOMOBILE INDUSTRY: Economy Analysis Industry Analysis Company Analysis Conclusion References Aim of project Overview

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GDP and Automobile Industry: In absolute terms, India is 9 th in the world in terms of nominal factory output(its $1.22 trillion) Fundamental Analysis ECONOMY: Data source: India central statistical organization Economy Analysis Industry Analysis Company Analysis Conclusion References Aim of project Overview

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GDP and Automobile Industry: The per capita Income is near about Rs38,000 reflecting improvement in the living standards of an average Indian. Today, automobile sector in India is one of the key sectors of the economy in terms of the employment. The market value of Automobile Industry is more than US$8 bl. and Contribution in Indian GDP is near about 5% and will be double by 2016. Fundamental Analysis ECONOMY: Data source: Google Finance Economy Analysis Industry Analysis Company Analysis Conclusion References Aim of project Overview

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Recession: Global recession has hit the Indian auto industry, impact of recession is evident now on industry as sales & growth of automobile companies have declined. Passenger Vehicles segment registered negative growth. In December 2010, overall production fell by 22 % over the same month last year. The sales in December 2010 for passenger vehicles fell by 13.86% over December 2009. Two Wheelers registered minor growth of 1.85 % during April – December 2010. Although the sector was hit by economic slowdown, overall production increased from 10.85 million vehicles in 2009-10 to 11.17 million vehicles in 2010-11. Fundamental Analysis ECONOMY: Economy Analysis Industry Analysis Company Analysis Conclusion References Aim of project Overview

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Segmentation of Automobile Industry: The automobile industry comprises of Heavy vehicles (trucks, buses, tempos, tractors); passenger cars; Two-wheelers; Commercial Vehicles; and Three-wheelers. Industry Analysis Industry Analysis: Data Source:http :// www.auto india .com / Economy Analysis Industry Analysis Company Analysis Conclusion References Aim of project Overview

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Export Analysis Automobile Export: Economy Analysis Industry Analysis Company Analysis Conclusion References Aim of project Overview

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Five Forces Economy Analysis Industry Analysis Company Analysis Conclusion References Aim of project Overview

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SWOT Strengths(S): Large domestic market Sustainable labor cost advantage Competitive auto component vendor base Government incentives for manufacturing plants Strong engineering skills in design etc Weaknesses(W): Low labor productivity High interest costs and high overheads make the production uncompetitive Various forms of taxes push up the cost of production Low investment in Research and Development Infrastructure bottleneck Opportunities(O): Commercial vehicles: SC ban on overloading Heavy thrust on mining and construction activity Increase in the income level Cut in excise duties Rising rural demand Threats(T): Rising input costs Rising interest rates Cut throat competition Economy Analysis Industry Analysis Company Analysis Conclusion References Aim of project Overview

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Conclusion Indian Automobile has a lot of scope for both two wheelers and four wheelers due to development in infrastructure of the country. According to Indian Statistical Organization the per capita income (Rs.38000) is increasing and national income at the rate of 14.4% which shows potential to buy vehicle in auto industry. The growth rate of Indian Automobile is so fast that by 2016 Indian Industry will be world 7 largest manufacturer in all sections. The Indian auto market is still untapped the majority of the people in country don’t own a four wheeler and all the major auto companies are trying to increase their sales by several moves. By analyzing the current trend of Indian Economy and Automobile Industry we can say that there is lot of scope for growth. Economy Analysis Industry Analysis Company Analysis Conclusion References Aim of project Overview Conclusion :

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REFERANCES: Books: Auto Drive Magazine Reference Materials: The Economic Times RBI annual report ASSOCHAM report India Central Statistical Organization Websites: http://www.googlefinance.com http://www.auto carindia .com http://www.wheelsunplugged.com http://www. assocham .org http://www.wikipedia.com http://www.rbi.org.in Search Engines: www.google.com www.yahoo.com www.bing.com THANK YOU Any Queries?