2. Statistics of Automobile Industry India is presently ranked 17th amongst auto car manufacturing countries in the world. India is poised to become third largest auto car manufacturing hub in the world by 2020. The small car market counts for about 73 percent of the overall car market within India, which is densely populated with motor vehicles. And this outstanding growth in the small car segment has compelled the major players like Nissan, Renault, Toyota, Volkswagen (VW), etc to sit up and take notice.
3. Leader of Indian Passenger Cars Maruti Udyog Limited Tata Motors Hyundai Honda Fiat Ford Toyota Mahindra & Mahindra
16. Increase capacity to 600,000 cars per annum over next 1 year. 3. Ford : (Figo) • Plans to unveil its small car with 1.2 ltr engine by 2010
17.
18. Coming up with the $2500 car to compete with Tata Nano in 2011 6. Toyota • Toyota Kirloskar motors planning to launch its own small car in India by 2011
20. Statistics of Maruti Suzuki Currently, Maruti Suzuki is the market leader with 58 percent market share. It has the seven other small car in its portfolio M800, Omni, Wagon-R, Zen A-Star, Alto and Swift hatchback. With such a strong portfolio the company was able to sell nearly 8 lakh cars in the last fiscal year. It recorded a growth of 3.6 percent. The new Ritz is expected to further increase its lead in the market.
32. BCG MATRIX BCG matrix has two dimensions market share and market growth .the basic idea behind it is: if a product has biggest market share, or if the products market grows faster. It is better of the company. . The four segment of BCG matrix: - STAR, high growth and high market share. CASH COW, low growth and high market share DOG, low growth and low market share QUESTION MARK high growth and low market share.
33. STAR: The Company has long run opportunity for growth and profitability. They have high relative market share and high Growth rate. SWIFT, SWIFT DESIRE AND ZEN ESTILO is the fast growing and has potential to gain substantial profit in the market. QUESTION MARK: New products with potential for success but there cash needs are high And cash generation is low. In auto industry of MARUTI SX4, GRAND VITARA, ASTAR there has been improve the organization reputation As they want successful not only in Indian market but as well as in global market. CASH COW: It has high relative market share but compete in low growth rate as they generate cash in excess of their needs. MARUTI 800, ALTO AND WAGNOR have fallen to ladder 3 & 4 due to introduction of ZEN ESTALIO and A STAR. DOG: The dogs have no market share and do not have potential to bring in much cash. BALENO, OMINI, VERSA There business have liquidated and trim down thus the strategies adopted are that are harvest, divest and drop.
50. Porter 5 Force Analysis 1.Threat of new Entrants In most markets, the capital and expertise needed to setup an auto or parts manufacturing facility, would be a great enough barrier to entry to prevent many new entrants from setting up. However, given India's incredible growth forecasts, infrastructure progress (especially new and better roads), and ever-expanding financing options to rural residents, the market is attractive. As such, we expect the threat of new entrants to be high. Result: Unfavorable 2.The bargaining power of buyers/customers Buyers in India have a wide variety of choice. There are more than 20 foreign manufacturers selling in India (including ultra high-end such as Rolls-Royce and Lamborghini). Of course there are also a plethora of incredibly cheap choices, like the famous Tata Nano. Result: Unfavorable
51. Porter Analysis Continued… 3. The threat of substitute products India is famous for its two-wheelers (bikes and mopeds) and three-wheelers. These are very real and obvious threats to auto manufacturers. Result: Unfavorable 4.The amount of bargaining power suppliers have It is likely that the suppliers to the manufacturers have considerable bargaining power. They are not held ransom by one single manufacturer as they can market their products to any of the others in India. Result: Unfavorable 5. The amount of rivalry among competitors High. The industry is not yet in its shake-out phase and is still struggling to find the up-and-coming stars and possibly topple the leaders. Result: Unfavorable
52. Future Of Car Industry In India Pre-liberalization India-- Maruti Suzuki 800 hatchback car in 1983 a joint venture between Government of India and Suzuki Motors of Japan Post liberalization--Many foreign manufacturers have setup base in India. 4th largest commercial vehicle market in the world. 11th largest passenger car market globally, expected to be the 7th largest by 2016. Reason for Growth--Easy availability of vehicle finance, attractive rates of interest, and convenient installments. Depending upon customers needs, 4 segments - small, midsize, premium and sports utility vehicles currently represent the car market in the country.