Indian Auto Industry
Indian Auto Industry Current Scenario & Future Trends
Index
Evolution of Indian Auto Industry Market Segmentation PEST Analysis Porter’s 5 forces Analysis Obstacles, advantages and opportunities Analysis of Current trends Impact of Union Budget Impact of Tata Nano Impact of Tata Ace Future Trends in auto market
Evolution of Automobile Industry
Initial Years Manufacturing was licensed •High Customs duty on import •Steep excise duties & •sales tax •2 Major players: Premier Automobiles Ltd & Hindustan Motors Early to mid 90s
•Seller’s market and long waiting periods
•Delicensing in 1993 •Removal of capacity restrictions •Decrease in customs & excise •Auto finance boom- more players (foreign banks & non banking companies, better schemes.
Mid 90s – Till now •Buyers market
•Increase in Indigenization
•Easy Auto finance •Manufactures diversifying into related activities: finance lease, fleet management, insurance and used car market
1980s
•Entry of MUL, better product, with government support
•Seller’s Market
•Long Waiting Periods
Market Segmentation
• Two Wheeler • Three Wheeler • Passenger Vehicle(PV) • Commercial Vehicle(CV)*
Category wise market share in 08-09
2 wheelers 3 Wheelers Passenger Vehicles Commercial Vehicles
4% 16% 4%
76%
* This also includes Tractor volumes
Market Growth Rate
Total Industry Vs. Passenger Car Segment Growth Rate
Passenger Cars 37% 22% 15% 17% 8% 15% Total Industry 35%
Total Industry Vs. Commercial vehicle Segment Growth Rate
Commercial vehicle 29% 17% 11%15% 33% Total Industry
18% 14%
15% 15% 3% 3%
14%
6%
-2% 2007-08 3%
2003-04
2004-05
2005-06
2006-07
2008-09
-24%
2003-04
2004-05
2005-06
2006-07
-2% 2007-08 2008-09
Total Industry Vs. Three Wheeler Segment Growth Rate
Three Wheelers 29% 28% 15% Total Industry
Total Industry Vs. Two Wheelers Segment Growth Rate
Two Wheelers 16% 17% 17% 15% 11%14% 5% Total Industry
15% 11%
Index
Evolution of Indian Auto Industry Market Segmentation PEST Analysis Porter’s 5 forces Analysis Obstacles, advantages and opportunities Analysis of Current trends Impact of Union Budget Impact of Tata Nano Impact of Tata Ace Future Trends in auto market
Evolution of Automobile Industry
Initial Years Manufacturing was licensed •High Customs duty on import •Steep excise duties & •sales tax •2 Major players: Premier Automobiles Ltd & Hindustan Motors Early to mid 90s
•Seller’s market and long waiting periods
•Delicensing in 1993 •Removal of capacity restrictions •Decrease in customs & excise •Auto finance boom- more players (foreign banks & non banking companies, better schemes.
Mid 90s – Till now •Buyers market
•Increase in Indigenization
•Easy Auto finance •Manufactures diversifying into related activities: finance lease, fleet management, insurance and used car market
1980s
•Entry of MUL, better product, with government support
•Seller’s Market
•Long Waiting Periods
Market Segmentation
• Two Wheeler • Three Wheeler • Passenger Vehicle(PV) • Commercial Vehicle(CV)*
Category wise market share in 08-09
2 wheelers 3 Wheelers Passenger Vehicles Commercial Vehicles
4% 16% 4%
76%
* This also includes Tractor volumes
Market Growth Rate
Total Industry Vs. Passenger Car Segment Growth Rate
Passenger Cars 37% 22% 15% 17% 8% 15% Total Industry 35%
Total Industry Vs. Commercial vehicle Segment Growth Rate
Commercial vehicle 29% 17% 11%15% 33% Total Industry
18% 14%
15% 15% 3% 3%
14%
6%
-2% 2007-08 3%
2003-04
2004-05
2005-06
2006-07
2008-09
-24%
2003-04
2004-05
2005-06
2006-07
-2% 2007-08 2008-09
Total Industry Vs. Three Wheeler Segment Growth Rate
Three Wheelers 29% 28% 15% Total Industry
Total Industry Vs. Two Wheelers Segment Growth Rate
Two Wheelers 16% 17% 17% 15% 11%14% 5% Total Industry
15% 11%