Preview

Macroenvironmental Factors Affecting Automobile Industry - Presentation Transcript

Powerful Essays
Open Document
Open Document
1673 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Macroenvironmental Factors Affecting Automobile Industry - Presentation Transcript
Macroenvironmental Factors Affecting Automobile Industry - Presentation Transcript 1. MACRO-ENVIRONMENTAL FACTORS AFFECTING AUTOMOBILE INDUSTRY 2. Introduction

* Tenth largest in the world * Expected to overtake China * Huge attraction for foreign car manufacturers * Dominated by domestic companies * Contributes 3.1% to the nominal GDP 3. Interesting Figures
India’s motorcycle market is the second largest in the world
Largest three-wheeler market
Second largest tractor manufacturer
Fifth largest commercial vehicle manufacturer
Largest two-wheeler manufacturer 4. 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
1980s

* Entry of MUL, better product, with government support

* Seller’s Market * Long Waiting Periods
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 – Early 2000s

* Buyers market * Increase in Indigenization * Easy Auto finance * Manufactures diversifying into related activities: finance lease, fleet management, insurance and used car market 5. Segment wise market share…
CVs
Three Wheeler
Passenger vehicles
Two Wheeler

* The industry has not experienced much change in its structure over the last 6 years * Two- wheelers form the major share of domestic sales * Passenger vehicles lead the exports market(57.4%) * 2 wheelers form the bulk of exports as well, but are losing share to Passenger vehicles * The growth in the two wheeler market is driven by the motorcycle market and is
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Autozone Industry Analysis Paper
    • 117 Words
    • 1 Page

    Autozone Industry Analysis Paper

    AutoZone is in the automotive exchange industry, which is an optional business sector to the vehicles manufacturing industry. The business helps customers keep vehicles running and functional by supplying parts and some service for cars. The car secondary selling industry incorporates all items and services purchased for light, too heavy duty vehicles after the first sale, including new parts, extras, oils, appearance items, tires, impact repairs and in addition the apparatuses and gear important to make the repair (). Auto Zone is the main merchant of car new parts and replacements in the United States. Different segments of the business incorporate makers and merchants of auto parts and accessories, part stores, service and repair shops,…

    • 117 Words
    • 1 Page
    Satisfactory Essays
    Read More
  • Powerful Essays

    Week 5 Learning Team Eco 365 Essay Example
    • 1892 Words
    • 8 Pages

    Week 5 Learning Team Eco 365 Essay Example

    Since the beginning of the last century, automobile companies have fought for control of a quickly expanding market in the newly created automobile industry. Hundreds of companies attempted to secure their place in market but ultimately, only three companies remain today (Wright, 2012). The decisions, mergers, and products those three companies made is ultimately what kept them going. Starting a business and ensuring its success are two different things entirely. A successful business will recognize the need to adapt to the various pressures exerted on it from other forces.…

    • 1892 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Better Essays

    Csx Case Study
    • 1294 Words
    • 6 Pages

    Csx Case Study

    1) Growth and expansion in North America where there is a lot of interest in the development of vehicle market.…

    • 1294 Words
    • 6 Pages
    Better Essays
    Read More
  • Better Essays

    Porters 5 Analysis Auto Industry in 2009
    • 1239 Words
    • 5 Pages

    Porters 5 Analysis Auto Industry in 2009

    Furthermore, the industry is in the mature stage and has achieved economies of scale through mass production. The new, successful companies in the auto industry are now conceived through joint ventures such as GM and Shanghai Automotive Industry in China. Emerging automobile companies…

    • 1239 Words
    • 5 Pages
    Better Essays
    Read More
  • Powerful Essays

    Hmc Essay
    • 1065 Words
    • 5 Pages

    Hmc Essay

    automobile and the aircraft manufacturer. HMTC business has been extremely successful in the mid and late 60s.…

    • 1065 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Stratsim Industry Analysis
    • 1161 Words
    • 5 Pages

    Stratsim Industry Analysis

    Firms A, B, C, D, and E all have at least three vehicle offerings in three different vehicle classes. Under represented segments within this industry are the Sports and Minivan vehicle classes, where Firm B and Firm C monopolize these segments respectively. The Economy, Luxury, Truck, and Utility vehicle classes all have two vehicles offerings each.…

    • 1161 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    The Global Automobile Industry
    • 1058 Words
    • 5 Pages

    The Global Automobile Industry

    1To have a thriving and growing economy you have to have a strong manufacturing base that is outputting quality goods in large quantities. In the case of the United States much of the economy in the past has been built on housing sales and the automotive industry. America 's modern automotive industry is being hurt by two things: Unionized labor and cheaper imports from Asia. Why build cars in North America where unionized automotive wages are $20+/hour when you can build them in Asia for less than $4/hour and still get the same quality? And in some cases more quality, if you want to consider the amazing durability and reliability of cars and trucks built by Toyota and Honda. There is another factor too: Changing market interests. For years now Americans have been obsessed with buying SUVs and suddenly their interests have changed. They 're now buying small, more affordable cars with good gas mileages, mostly built in Asia. Ford, GMC and other North American manufacturers are posting huge losses because they built all these SUVs that they can 't sell unless they give out huge discounts.…

    • 1058 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Chrysler Case Study
    • 284 Words
    • 2 Pages

    Chrysler Case Study

    • Entry Level Luxury Car Manufacturer • Major competitors are Ford, GM, and Toyota • Have experienced one bailout, two acquisitions, and a bankruptcy…

    • 284 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Auto Industry Structure and Resources
    • 1888 Words
    • 8 Pages

    Auto Industry Structure and Resources

    Many companies within the United States and world may look to the automotive industry as a possible “cash cow.” This is due to the large inelastic demand followed with a hefty pay off per sale. As a company interested in entering the automotive industry competition, one may find that it is easier said than done. Since 1860, there have been over 1,800 manufacturing companies that have…

    • 1888 Words
    • 8 Pages
    Better Essays
    Read More
  • Satisfactory Essays

    Toyota Motor Corporation
    • 470 Words
    • 2 Pages

    Toyota Motor Corporation

    The automobile is very attractive due to the development of leaving standards, the demand for automobiles are rapidly increased. The United dtated was the largest motional market with about 9m new registrations, followed by Japan with over 4 M registrations at 1994. Besides, the introduction of new technologies has improved the improvement of the industry, and that also pushed the demand for vehicles. The competition inside the industry has become more and more fierce. At the same time, more and more companies and people want to get into the market as well.…

    • 470 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    P5: Explain the Characteristics of the Local Business Environment
    • 1277 Words
    • 6 Pages

    P5: Explain the Characteristics of the Local Business Environment

    In this task, I have been asking explain the characteristic of local business environment. I will relate it into the following…

    • 1277 Words
    • 6 Pages
    Better Essays
    Read More
  • Satisfactory Essays

    Air Pollution Of The American Auto Industry
    • 272 Words
    • 2 Pages

    Air Pollution Of The American Auto Industry

    The American auto industry is one of the world's most valuable economic sectors by revenue. This industry involves the selling of motor vehicles and not only that but also the design, development, manufacturing and marketing of these motor vehicles by a wide range of companies and organizations. The American industry, like many other industries out there are faced with numerous environmental issues but the one I will discuss is pollution, to be more specific, air pollution.…

    • 272 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Stratsim Simulation Swot Analysis Firm 2c
    • 433 Words
    • 2 Pages

    Stratsim Simulation Swot Analysis Firm 2c

    • Firm C has 100% market share in Minivan category.• Technology capabilities are high. (Firm C has the highest rating in Safety rating and Quality rating across all firms.)• Consumer segments: Firm C is dominant in the high-income segment (56.9%) which is growing faster than average (4% vs. 3%). This means high potential for selling more than car market average.• Diverse offering of cars (a price range of 25k-45k). This provides more stability across different consumer segments.…

    • 433 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Business Level Strategy Bmw
    • 793 Words
    • 4 Pages

    Business Level Strategy Bmw

    Business Level Strategy BMW BMW’S Primary Business Lines (http://www.marketlineinfo.com/library/iProduct_toc.aspx?R=6A41C0F5-51FC-4B71-AF83-0B9F412CB891) The company generates revenues through three business divisions: automobiles (78.0% of the total revenues during fiscal year 2006), financial services (20.2%), motorcycles (1.8%). BMW focuses on the premium segments of the global passenger car and motorcycle market. The company also provides financial and information technology services. BMW, through the Softlab Group, offers information technology services such as customer relationship management and supply chain management. The company markets its vehicles through company-owned showrooms, independent dealers, subsidiaries and importers. It manufactures its products at 23 production and assembly plants in 13 countries on four continents and sells it in more than 140 countries worldwide. BMW operates through three business divisions: automobiles, motorcycles and financial services. Automobiles The automobiles division develops, manufactures, assembles and sells passenger cars and off-road vehicles under the brands BMW, MINI and Rolls-Royce. It also sells automotive spare parts and accessories. In Germany BMW and MINI brand products are sold through company owned outlets and independent dealers. The company sells passenger cars outside Germany through subsidiaries and independent importers. In FY2007, the company sold 1,500,678 BMW, MINI and Rolls-Royce brand cars, an increase of 9.2% compared to 2006. Motorcycles The motorcycles division develops, manufactures, assembles and sells BMW brand motorcycles as well as spare parts and accessories. This division also offers motorcycle equipment such as luggage systems, heated grips, windscreens, chrome valve covers, satellite supported navigation systems, special seats and onboard computers. In addition, the company's motorcycle division also sells helmets, motorcycle suits, boots and gloves.…

    • 793 Words
    • 4 Pages
    Good Essays
    Read More
  • Better Essays

    Bajaj Chetak Case Study
    • 3138 Words
    • 13 Pages

    Bajaj Chetak Case Study

    Leveraging on its strength of technology and innovation and a wide spread product mix catering to all kinds of customer segment, Bajaj Auto is one of the major players in the market. However, there is a decline in the market share from 21% in 2013 to 12% in 2015 for domestic two wheeler market. Despite the decreasing numbers, Bajaj Auto has been largest exporter in both the two wheeler and three wheeler segments. Exports account for nearly 41.6% of company’s net sales. Bajaj is doing exceptionally well in three wheeler segment and maintains a monopoly having a market share of around 84% in the domestic market.…

    • 3138 Words
    • 13 Pages
    Better Essays
    Read More

Related Topics