1. BY-MANISH BADHIYE

2. Introduction
AUTOMOBILE SECTOR
Mainly engaged in manufacturing motor vehicles or motor
vehicle engines.
Primary activities are:
 Motor cars manufacturing
 Motor vehicle engine manufacturing
Major products and services are:
 Passenger motor vehicle (Passenger Cars, Utility Vehicles & Multi
Purpose Vehicles)
 Commercial Vehicles (Medium & Heavy and Light )
 Two Wheelers and Three Wheelers

4. Landmark of Indian automobile
industry
 1897 First person to own a car in India–Mr. Foster
of Crompton Greaves Company, Mumbai
 1901 First Indian to own a car in India - Jamsetji Tata
 1905 First Woman to drive a car in India -
Mrs.Suzanne RD Tata
 1945 Tata Motors
 1947 Mahindra & Mahindra Limited
 1948 Ashok Motors
 1981 Maruti Suzuki

5.  1994 Mercedes-Benz
 1995 Ford Motor Company
 1996 Hyundai Motor Company
 2005 BMW
 2007 Audi
 2009 Land Rover and Jaguar

6. TOP 10 AUTOMOBILE COMPANIES IN INDIA

7. PESTLE ANALYSIS
POLITICAL
 In 2002, the Indian government formulated an auto policy that
aimed at promoting integrated, phased, and self-sustained
growth of the Indian automotive industry.
 Allows automatic approval for foreign equity investment up to
100% in the automotive sector and does not lay down any
minimum investment criteria
 Govt. has granted concessions, such as reduced interest rates
for export financing.
 Formulation of an appropriate auto fuel policy to ensure
availability of adequate amount of appropriate fuel to meet
emission norms
 Establish an international hub for manufacturing small,
affordable passenger cars well as tractor and two wheelers

8.  Ensure a balanced transition to open trade at
minimal risk to the Indian economy and local
industry
 Assist development of vehicle propelled by alternate
energy source.
 Lying emphasis on R&D activities carried out by
companies in India by giving a weighted tax
deduction of up to 150% for in house research and
R&D activities.
 Plan to have a terminal life policy for CVs along
with incentives for replacement for such vehicles

9. Economic
Economic pressures on the industry are causing
automobile companies to reorganize the traditional
sales process.
Weighted tax deduction of up to 150% for in-house
research and R & D activities

10. More than 90% of the CV purchase is on credit.
Finance availability to CV buyers has grown in scope
during the last few years.
The increased enforcement of overloading restrictions
has also contributed to an increase in the no. of CVs
plying on Indian roads.
Several Indian firms have partnered with global
players. While some have formed joint ventures with
equity participation, other also has entered into
technology tie-ups.
Exports have decreased in FY 2012-13 , But domestic
sales have increased

11. The Indian economy has grown at 8.5% per annum.
The manufacturing sector has grown at 8-10 % per
annum in the last few years
Contributes about 4 per cent in India's Gross
Domestic Product (GDP).
5 percent in India's industrial production.
Generated about 4.5 lakh of direct employment

12. Social
Since changed lifestyle of people, leads to increased
purchase of automobiles, so automobile sector have a
large customer base to serve.
The average family size is 4, which makes it favorable
to buy a four wheeler.
Growth in urbanization, 4th largest economy by ppp
index.
Upward migration of household income levels.
85% of cars are financed in India.

13. Car priced below USD 12000 accounts for nearly
80% of the market.
Vehicles priced between USD 7000-12000 form the
largest segment in the passenger car market.
Indian customers are highly discerning, educated and
well informed. They are price sensitive and put a lot
of emphasis on value for money.
Preference for small and compact cars.
Preference for fuel efficient cars with low running
costs

14. Technology
More and more emphasis is being laid on R & D activities
carried out by companies in India
Technological solutions helps in integrating the supply
chain, hence reduce losses and increase profitability.
 The Government of India is promoting National
Automotive Testing and R&D Infrastructure Project
(NATRIP) to support the growth of the auto industry in
India

15. With the entry of global companies into the Indian
market, advanced technologies, both in product and
production process have developed
With the development or evolution of alternate fuels,
hybrid cars have made entry into the market
Internet makes it easy to collect and analyze customer
feedback
Few global companies have setup R &D centers in
India.
Major global players like audi, BMW, Hyundai etc
have setup their manufacturing units in India.

16. Environmental
Physical infrastructure such as roads and bridges
affect the use of automobiles.
Physical conditions like environmental situation affect
the use of automobiles.

17. Increasing number of vehicles on road is also
increasing the pollution.
Option could be electric vehicles (?)
Best option is Biofuel

18. LEGAL
The automotive regulations in India are governed by
the Ministry of Shipping, Road Transport &
Highways
The principal instrument governing the automotive
sector in India is the Motor Vehicles Act, 1988 (MVA)
along with the Central Motor Vehicles Rules 1989
(CMVR)
The Act governs emission norms and safety standards
in India
For preparing safety standards, consideration is on
various aspects. The Indian standards and norms are at
par with international standards

19. CONCLUSION
The growing mobility needs of the people in India
augur well for two and four wheeler industry.
The cost advantage that India offers with respect to
product development is fast establishing the country
as an R&D hub.
In addition, the credibility that India has gained as a
cost effective manufacturing base for both small cars
and two-wheelers is fuelling creation of capacities by
all major manufacturers in the country.