Premium Essay

Automobile Sector

In: Business and Management

Submitted By nisargtrivedi
Words 1295
Pages 6
Growth in Indian Automobile sector

Submitted to: Prof. V P Sharma

Submitted by: Mansi Pancholi ( 12 SDP 719 )

Date: 31/07/2012

Looking at the economy of India, India is the Largest Democracy in the world with 1.2 billion people. It is 4th largest GDP (PPP) and 11th largest GDP (Nominal). India is 2nd fastest growing economy (Estimate 2011-12 – 9%) with India’s average growth rate 7.3% over past 10 years and expected to outpace China in next decade. India is 3rd largest investor base in the World. If we look at the demographics of People of India, It consists of 50 % under 25 years & 65% under 35 years. India also having the 2nd largest pool of certified professionals and highest number of qualified engineers in the world. If we look at sector wise distribution, India is having Services (52%), Manufacturing (27%) and Agricultural (21%) shares. Average Real GDP growth in last 5 year was 8.5% with GDP Per Capita at US $ 1018 and a projected GDP growth in 2011-12 is 9.0%. The Automotive Sector in India is one of the largest in the world and one of the fastest growing globally. It was 1897 when the first car rolled out on Indian roads. Until 1930 cars were imported from other countries. First Indian Automotive Company starts with Mahindra & Mahindra in 1940 when it was established by two brothers as a trading company in 1945, and begun assembly of Jeep CJ-3A utility vehicles under license from Willys. However, the growth was relatively slow in the 1950s and 1960s due to nationalisation and the license raj which hampered the Indian private sector. After 1970, the automotive industry started with its growth, but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a major luxury.

Development in Indian Automobile Sector
The production of automobiles has greatly increased in the last decade. It passed the...

Similar Documents

Premium Essay

Indian Automobile Sector 2012

...THE INDIAN AUTOMOBILE SECTOR- HPL PROJECT Introduction The term automotive was created from Greek autos (self), and Latin motivus (of motion) to represent any form of self-powered vehicle. The Indian automotive industry has emerged as a 'sunrise sector' in the Indian economy. India is emerging as one of the world's fastest growing passenger car markets and second largest two wheeler manufacturer. It is also home for the largest motor cycle manufacturer and fifth largest commercial vehicle manufacturer. The automotive industry in India is one of the largest in the world and one of the fastest growing globally. India's passenger car and commercial vehicle manufacturing industry is the sixth largest in the world, with an annual production of more than 3.9 million units in 2011.[1] According to recent reports, India overtook Brazil and became the sixth largest passenger vehicle producer in the world (beating such old and new auto makers as Belgium, United Kingdom, Italy, Canada, Mexico, Russia, Spain, France, Brazil), growing 16 to 18 per cent to sell around three million units in the course of 2011-12.[2] In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand.[3] In 2010, India beat Thailand to become Asia's third largest exporter of passenger cars. As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%), making......

Words: 6888 - Pages: 28

Premium Essay

Role of Automobile Sector & Government in India Towards Reducing Air Pollution

...ROLE OF AUTOMOBILE SECTOR IN INDIA ON AIR POLLUTION & REMEDIESTAKEN BY THE INDUSTRY AND THE GOVERNMENT REPORT FOR ENVIRONMENTAL STUDIES COURSE, TERM VI UNDER THE GUIDANCE OF PROF. SURYANARAYANAN, FACULTY AT XAVIER INSTITUTE OF MANAGEMENT & ENTREPRENEURSHIP, BANGALORE SAMUEL N ISAIAH 137, BATCH 17 TABLE OF CONTENTS Page No. | Topic | | Prologue | | Introduction | | Vehicular Pollutants & Environmental Effects | | Health & Environmental Effects of Vehicular Pollutants | | Green Vehicles in India | | Challenges for Green Vehicles | | Opportunities for Indian Automotive Industry in Green Vehicles | | Bibliography | PROLOGUE The growing cities, sharp increasing traffic, trajectory growth, rapid economic development and industrialization, and higher levels of energy consumption has resulted in increase of pollution load in the urban environment. It is also accepted that automobiles have emerged as a critical source of urban air pollution specially in the developing world. Realizing the gravity of the problem, steps are being taken to introduce better technologies, better technologies, better fuel quality, shift to environment friendly fuels, and mass transit system for the control of environmental pollution in urban areas. Not only the central and state governments, but even automobile manufacturers in India have been developing strategies for mitigation measures to improve the urban air quality and make the cities......

Words: 2835 - Pages: 12

Free Essay

Assessment of the Changes in Indian Industry Environment and Their Impact in Respect of the Following Sectors: a) Telecom B) Automobile C) Shipping

...Indian industry environment and their impact in respect of the following sectors: a) Telecom b) Automobile c) Shipping ARPIT JAIN: 12P189 Indian Industries The Indian economy has survived the global downturn very well. It has posted one of the highest rates of economic growth in the world despite other major industrial giants lagging behind. At the end of 2009, the Indian economy was growing at 7% a year. The strongest growth was coming from the manufacturing and construction sector and the weakest section was agriculture. The drawback of such a rapid economic expansion is a rise in inflation. The economy of India is the eleventh largest economy in the world by nominal GDP. Post independence the country went into a fast paced economic growth which was further fuelled by the free market principles started in the 1990’s which welcomed foreign investments. It has been predicted by leading Economists around the world that by 2020, India will be among the leading economies of the world. Four key industrial economic sectors are identified in India. The primary sector, largely extract raw material and they are mining and farming industries. In the secondary sector, refining, construction, and manufacturing are included. The tertiary sector deals with services and distribution of manufactured goods. India's service industry accounts for 57.2% of the country's GDP while the industrial and agricultural sector contribute 28% and 14.6% respectively. Agriculture is the......

Words: 2851 - Pages: 12

Free Essay

6a Bajaj Auto

...Bajaj Auto Ltd Situational Analysis: Indian economy has undergone tremendous changes during the 1980’s and 1990’s. The Indian industrial sector was protected from the international competition by the government of India during the 1980’s. During the 1990’s the economic crisis forced the Indian government to open up the Indian economy. With the opening of the Indian economy the competition for the industrial sector especially the automobile sector was severely hit. Now even the foreign brand automotives could compete in the domestic market without any tariff barriers or any other interventions. This meant that the local industries had to compete with the international brands without any kind of protection. Bajaj Auto Limited (BAL) found that its domestic market declined by 5% in the year 1991-1992. Bajaj had set a goal to protect its dominance in the Indian market and increase its exports to 15% of total sales by 1998. In the domestic market it was facing a stiff competition from Hero Honda and Kinetic Honda. The main problems of the BAL lied in its improper inventory management, higher average cycle time for launching a new product, not very advanced R&D facilities. To overcome these shortcomings the company did modernize itself but it was important for the company to sustain the tough competition. Problem Statement: It was necessary for the company to reinvent itself to sustain competition. The sales have been falling drastically and to make things worse its......

Words: 1046 - Pages: 5

Premium Essay


...PEST Analysis by 100106 on MARCH 31, 2011 PEST Analysis Political: In the next few years, China is saying that they are going to be investing billions of dollars into Hybrid technology. Honda is a automobile company who is well known for developing ad researching hybrid technology. They have been on the forefront of this new technology and for this reason they will be a top choice for this new hybrid technology. They will need to show the Chinese government that their technology is worth investing in. If they manage to do this, they will be bale to receive large amounts of money to use for the development of new hybrid technology. The Chinese government is also aiming to put some millions of hybrid cars into use within China within the next few years. Seeing as how Honda is already producing hybrid cars, they will be able to expand and increase the production of these cars to fill the wishes of the Chinese government. There are also however, restrictions being placed on car ownership is many large Chinese cities. This is to reduce congestion and traffic. This means that because of possible increases in taxes and/or legal restrictions, there may be a fall in demand for cars, which will result in Honda losing sales and perhaps revenue. Economical: Oil prices have recently been rising and will most probably continue to rise as the world’s oil sources are depleted. This means that there will be a fall in demand for petrol cars and a rise in demand for Hybrid......

Words: 912 - Pages: 4

Premium Essay

Automobile Electronics Manufacturing in the Us

...WWW.IBISWORLD.COM Automobile Electronics Manufacturing in the US April 2014 1 Plugged in: The industry will focus on energy efficiency during its recovery IBISWorld Industry Report 33632 Automobile Electronics Manufacturing in the US April 2014 Zachary Harris 2 2 2 2 3 About this Industry Industry Definition Main Activities Similar Industries Additional Resources 17 International Trade 19 Business Locations 34 Regulation & Policy 35 Industry Assistance 21 Competitive Landscape 21 Market Share Concentration 21 Key Success Factors 21 Cost Structure Benchmarks 23 Basis of Competition 24 Barriers to Entry 24 Industry Globalization 36 Key Statistics 36 Industry Data 36 Annual Change 36 Key Ratios 4 5 5 5 7 9 Industry at a Glance Industry Performance Executive Summary Key External Drivers Current Performance Industry Outlook 37 Jargon & Glossary 26 Major Companies 26 Denso Corporation 27 Delphi Corporation 28 TE Connectivity 11 Industry Life Cycle 13 Products & Markets 13 Supply Chain 13 Products & Services 15 Demand Determinants 16 Major Markets 32 Operating Conditions 32 Capital Intensity 33 Technology & Systems 33 Revenue Volatility | 1-800-330-3772 | info WWW.IBISWORLD.COM Automobile Electronics Manufacturing in the US April 2014 2 About this Industry Industry Definition This industry manufactures motor vehicle parts that have or operate with the aid of small......

Words: 15541 - Pages: 63

Premium Essay

Green Vehicle

...CONSUMER BEHAVIOUR A Case study on GREEN vehicles in India: A FUTURE MARKET FACULTY:- Dr. Himani Sharma FROM:- Aamir Saleem Roll No – C-022 MBA M&S Under: Taufeeque Ahmad Company: JLL India Ltd. Phone number: 09560427952 ABSTRACT The Indian automobile industry has emerged stronger from the recent global downturn, and sales across all segments have seen record breaking numbers in the recent past. While the Indian industry has much to look forward to, by way of steady growth in both domestic and export markets, there are some clear challenges accompanying the opportunities in greener vehicles and alternative mobility. The shooting upward trend of price of fuel, pollution and purchasing power of the people the Indian automobile industry look to create a segment of consumer that has demand for the “GREEN VEHICLES” that are more fuel efficient, less CO2 emission and low operating cost or can run on alternate fuel. KEYWORDS: Green vehicles, Alternate fuel, Hybrid cars, Eco-friendly, CNG/LPG vehicles, E-mobility INTRODUCTION Demographically and economically, India’s automotive industry is well-positioned for growth, servicing both domestic demand and, increasingly, export opportunities. A predicted increase in India’s working-age population is likely to help stimulate the burgeoning market for private vehicles. Rising prosperity, easier access to finance and increasing affordability is expected to see four-wheelers gaining volumes, although...

Words: 3976 - Pages: 16

Premium Essay

Assignment - the German Government and the Automotive Industry

...The German government and the contribution of it to the national automotive industry It is difficult to assess the contribution of the German government to the national automotive industry especially as it has evolved over the last several decades. Germany was one of the first nations to embrace the automobile industry when the technology first emerged in the late nineteenth century. This new technology chimed with the technological orientation of the country which, at the time and as now, was one of the most developed countries in the world. The Germans embraced the practicalities of the technology but also the fun of it and early automobile racing was dominated by German and Italian racers. At the time a number of Marques emerged that have withstood the test of time including, of course, Mercedes Benz, BMW (Bavarian Motor Works), Maybach and so forth. Arguably, and somewhat unfortunately, the greatest contribution of any German government to its national automotive industry - and possibly the greatest contribution of any government to its national automotive industry - was under the Nazi regime (1933-45). The Volkswagen (literally, the People’s Car), democratised automobile use in Germany by bringing to the marketplace a car that the vast proportion of the German public could afford. This had a transformative effect on motor use both within and beyond Germany, and particularly at a time that was only a few years after the end of a devastating economic depression......

Words: 940 - Pages: 4

Premium Essay

Automotive Sector

...Turkey’s Automotive Sector Turkey’s automotive sector’s foundations date back to the 1950s. Over recent decades, it has grown substantially, due to two main factors: the large size of the domestic market where individuals were gaining increasing purchasing power as the economy developed; and the enormous expansion of international trade especially following the Customs Union Agreement signed with the EU in 1996. These fundamental factors also drive the long-term growth expectations. In recent years, the automotive sector has become our country’s leading exporter, with total exports of USD 16.9 billion in 2009, which constituted 17.4 percent of Turkey’s total export revenues.1 Exports were USD 8.7 billion in the first six months of 2010. In 2010, demand patterns are likely to change for the Turkish automotive sector. Considering the first half of 2010, the total production reached 547,022 vehicles, a jump of 39 percent compared with the same period of 2009. Also exports and imports increased by 4.5 percent and 43.8 percent respectively.2 As the effects of the global financial crisis recede, it is expected that the Turkish automotive sector will reach average annual growth rates of 4.5-5 percent per year in 2011 and follow this trend through till 2013. There are 22 automotive manufacturers in Turkey. The total capacity of the OSD members (15 manufacturers including two tractor manufacturers) amounted to 1,561,155 vehicles in 2010.18 The capacity seemed to stay stable for......

Words: 1677 - Pages: 7

Free Essay

Developing Economics

...INSTITUTE OF DEVELOPING ECONOMIES IDE Discussion Papers are preliminary materials circulated to stimulate discussions and critical comments IDE DISCUSSION PAPER No. 120 A Flowchart Approach to Malaysia’s Automobile Industry Cluster Policy Akifumi KUCHIKI* September 2007 Abstract In this paper, we apply a flowchart approach to investigate Malaysia’s automobile cluster policy. We investigate whether the industrial cluster policy has been successful or not, suggest policy prescriptions, and propose a way to prioritize policy measures. Our flowchart approach leads to the following three policy prescriptions: (1) Malaysian firms should establish sites for exporting compact cars with automatic transmissions; (2) actors in the public, semi-public and private sector should work to upgrade skilled labor; and (3) the central government should promote liberalization and deregulation to attract foreign firms into the supporting industries. Keywords: Malaysia, automobile industry cluster, policy prescriptions, actors, deregulation JEL classification: G18, O18, R11 * Executive Vice President, Japan External Trade Organization (JETRO) E-mail: The Institute of Developing Economies (IDE) is a semigovernmental, nonpartisan, nonprofit research institute, founded in 1958. The Institute merged with the Japan External Trade Organization (JETRO) on July 1, 1998. The Institute conducts basic and comprehensive studies on economic and related affairs in......

Words: 11533 - Pages: 47

Premium Essay

Bus475 Week 3 Lear Part 2

...Lear Corporation Part II: SWOTT Analysis BUS/475 December 14, 2015 Lear Corporation Part II: SWOTT Analysis New division of Lear Corporation will be engaged in retail and communication sphere of automotive sector. It is crucial for every business to conduct SWOTT analysis, which will give an overview on the situation within the business and on possible challenges and potential victories. The table below represents the parts of external and internal analysis of a new division, which is SWOTT analysis (Free SWOT Analysis, 2012): Strengths | Weaknesses | * Strong connection with the suppliers * Initial competitive advantage * Support of innovation * Research & development investments * Positive image and history of Lear in the eyes of legal authorities and in the eyes of the society * Global presence and further expansion of the global low-cost footprint * The initiative of ‘going green’ | * Strong connection with the ‘mother’ company and its previous possible bad lucks * High dependence on the limited number of suppliers * Substantial indebtedness of the whole company | Opportunities | Threats | * Increase in sales due to the increased interest in hybrid automobiles * Increasing influence of positive image by sustainable development initiatives * Growth opportunities throughout the states * Becoming best in the future industry due to a strong competitive advantage * Implementing social/loan programs to bring greater value to......

Words: 1070 - Pages: 5

Premium Essay

Indian Automobile Industry

...ANALYSIS OF THE INDIAN AUTOMOBILE INDUSTRY SUBMITTED BY : ANIKET SHARMA ROLL NO. 45 PG-C INTRODUCTION The Indian automotive industry has emerged as a 'sunrise sector' in the Indian economy. India is emerging as one of the world's fastest growing passenger car markets and second largest two wheeler manufacturer. It is also home for the largest motor cycle manufacturer and fifth largest commercial vehicle manufacturer. India is emerging as an export hub for sports utility vehicles (SUVs). The global automobile majors are looking to leverage India's cost-competitive manufacturing practices and are assessing opportunities to export SUVs to Europe, South Africa and Southeast Asia. India can emerge as a supply hub to feed the world demand for SUVs. India also has the largest base to export compact cars to Europe. Moreover, hybrid and electronic vehicles are new developments on the automobile canvas and India is one of the key markets for them. Global and Indian manufacturers are focussing their efforts to develop innovative products, technologies and supply chains. The automotive plants of global automakers in India rank among the top across the world in terms of their productivity and quality. Top auto multinational companies (MNCs) like Hyundai, Toyota and Suzuki rank their Indian production facilities right on top of their global pecking order. MAJOR DEVELOPMENTS & INVESTMENTS * Yamaha Motor Co (YMC) has announced to set up its fifth global research......

Words: 3077 - Pages: 13

Premium Essay


...Thursday, November 13, 2014 [Ethics of the Automobile Industry: Ford Motor Company] | By Amir Rafih, Jordan Mather, Jennifer Sprague, Eric Parr, Gloria Ledi, and Meshal Mustafa | | (04-71-300 ) Business Ethics in a Global Context by Dr. Kent Walker Table of Contents Executive Summary 3 Introduction 4 Global History & Development of Automotive Industry 4 Value Chain of the Automotive Industry 6 PEST Analysis 7 Political Factors 7 Economic Factors 9 Social Factors 9 Technological Factors 10 Stakeholder Interests 11 Shareholders 11 Domestic Part Suppliers 12 CAW/UAW (Employees) 12 Customers 12 Environmental Groups 13 Stakeholder Position Analysis 13 CEO 13 Customers 13 Competitors 14 Analysis of History of Recalls and Assessment of Ethics 14 History of Recalls 14 Potential for Improvement 16 Economic, Social and Environmental Impacts of the Global Automobile Industry 17 Utilitarianism 17 Feminist Ethics 18 Postmodern ethics 20 Kant’s categorical Imperative 21 Corporate Social Responsibility, Corporate Social Responsiveness and Corporate Social Performance 22 Conclusion 27 References 27 Appendices 29 Executive Summary Before only the wealthy could afford cars but this changed with the Ford Model T. This car was specifically targeted at average family household by making it affordable to own. By 1918, Model T was owned by half of American car consumers (LoveToKnow, 2014). Standards must be set for......

Words: 9752 - Pages: 40

Premium Essay


...INTRODUCTION 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 relief 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 in producing various kinds of vehicles and can be divided into 03 broad categories: Cars, two-wheelers and heavy vehicles. ← 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......

Words: 16809 - Pages: 68

Premium Essay


...Automobile Industry The auto manufacturing industry is considered to be highly capital and labor intensive. The major costs for producing and selling automobiles include: * Labor - While machines and robots are playing a greater role in manufacturing vehicles, there are still substantial labor costs in designing and engineering automobiles. * Advertising – Each year automakers spend billions on print and broadcast advertising, furthermore, they spent large amounts of money on market research to anticipate consumer trends and preferences. The auto market is thought to be made primarily of automakers, but auto parts makes up another lucrative sector of the market. The major areas of auto parts manufacturing are: * Original Equipment Manufacturers (OEMs) - The big auto manufacturers do produce some of their own parts, but they can't produce every part and component that goes into a new vehicle. Companies in this industry manufacture everything from door handles to seats. * Replacement Parts Production and Distribution - These are the parts that are replaced after the purchase of a vehicle. Air filters, oil filters and replacement lights are examples of products from this area of the sector. * Rubber Fabrication - This includes everything from tires, hoses, belts, etc. In auto industry, a large proportion of revenue comes from selling automobiles. The parts market is even more lucrative. For example, a new car might cost $18,000 to buy, but if you......

Words: 1391 - Pages: 6