A

Business plan proposal

On
INDIAN AUTOMOBILE INDUSTRY

Submitted To:
Prof. Kishor Barad & Prof. Ritu Sharma

Submitted By:
Mahesh savaliya

SHANTI BUSINESS SCHOOL,

AHMEDABAD

An Overview of the Indian Automobile Industry

 In 2009, India became the fourth largest exporter of automobiles in Asia after
Japan, South Korea and Thailand. The Indian car market was the world's ninth largest in
2008 with an annual production of over 2.3 million units. The amount of passenger cars
sales per month exceeded 100,000 units in February 2009.

After the liberalization of the Indian economy in 1991, the car market in India
has witnessed a tremendous growth due to competition and lesser restrictions. Tata
Motors, Maruti Suzuki and Mahindra and Mahindra are some of the India car companies
which have expanded their domestic and international business. 

History of the Indian Car Market In the 1940s, the India car industry was in an
embryonic stage. After independence, the Government of India and the private sector
started a manufacturing industry in 1953 for automotive components for supplying the
automobile industry.  A number of Japanese manufacturers entered into joint-ventures in
the 1980s for manufacturing light commercial-vehicles and motorcycles. It was during this
time that Suzuki was chosen by the Indian government for entering into a joint venture for
manufacturing of small cars. In 1991, the economy was liberalized and the License Raj was
gradually removed. This allowed various Indian and foreign car companies to start
operations here. The growth in car manufacturing and automotive component has
increased steadily to meet domestic and international demands.

India is now one of the world's largest manufacturers of small cars. New York
Times has stated that due to the India's strong engineering base and skills in manufacturing
of fuel-efficient, low-cost cars, numerous automobile companies like Nissan, Hyundai
Motors, Volkswagen, Toyota, and Suzuki have expanded their manufacturing facilities.
Around 240,000 cars were exported from India by Hyundai Motors in 2008. By 2011,
Nissan Motors will export 250,000 vehicles produced in its Indian plant. By 2011, General
Motors also will export around 50,000 cars produced in its Indian plant. 

Major Indian car manufacturers

 Ashok Leyland
 Maruti Suzuki
 Tata Motors
 Hindustan Motors
 Mahindra
 Premier
 Chinkara Motors
 Force Motors
 San Motors
Indian electric car manufacturers

 Tata Motors
 Mahindra
 Hero Electric
 REVA
 Ajanta Group
 Tara International

Cars manufactured by multinational companies in India

 BMW - 3 Series, 5 Series

 Mercedes-Benz - C-Class, E-Class
 Audi - A4, A6
 Š koda - Fabia, Octavia, Laura
 Volkswagen - Jetta, Passat
 Mitsubishi - Lancer, Lancer Cedia
 Ford - Ikon, Fiesta, Fusion, Endeavour
 Hyundai - Santro, i10, i20, Getz, Verna, Accent, Sonata
 Chevrolet - Spark, Aveo U-VA, Aveo, Optra, Cruze, Tavera
 Fiat - Palio, Grande Punto, Linea
 Honda - Jazz, City, Civic, Accord
 Renault - Logan
 Toyota - Corolla, Innova, Fortuner

Car Companies

   Audi    BMW    Chevrolet     Daewoo Motors

    Fiat     Force Motors     Ford     General Motors

    Hindustan Motors     Honda    Hyundai    Lamborghini

    Maruti   Mahindra    Mercedes     Mitsubishi

    Nissan Motor    Porsche     Reva Electric     Rolls-Royce Motor

    San Motors     Skoda     Tata     Toyota

    Volvo    Volkswagen
INVESTMENT SCENARIO:
It is expected that by the end of the year 2010 Indian automobile sector will be
investing a huge amount about Rs. 30000 crores. For example, Maruti Udhyog has plans of
investing Rs. 6500 crores; the TATA Motors is coming up with more investment of Rs. 2000
crores in its compact car project. Not only the Indian companies but also foreign players
like Hyundai are coming up with the investment of more than Rs. 3800 crores in india.

EXPORTS TRENDS (No.of Vehicles)

Category 2004-05 2005-06 2006-07 2007-08
Passenger
166,402 175,572 198,452 218,418
Vehicles
Commercial
29,940 40,600 49,537 58,999
Vehicles
Two Wheelers 366,407 513,169 619,644 819,847
Total 562,749 729,341 867,633 1,097,264

GROWTH TREND:
At present the industry is enjoying a growth rate of 14-17% p.a., with domestic
sales growth at 12.8%. The growth rate is predicted to double by 2015. As it is seen, the
total sales of passenger vehicles – cars, utility vehicles and multi utility vehicles – in the
year 2005 reached the mark of 1.06 million. The current growth rate indicates that by
2012 India will overtake Germany and Japan in sales volume.

GROSS TURNOVER OF THE INDUSTRY:

TREND OF PRODUCTION:

The reason of selecting industry:

 To get the brief knowledge of the industry.
 To know the growth and investment scenario in the automobile industry

 To analyze the market situation and thereby understand the practices and
strategies acquired by various companies.

 To study the factors affecting to the strategies of the industry.