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PRESENTATION

ON
AUTOMOBILE
INDUSTRY
INTRODUCTION TO
AUTOMOBILE SECTOR
• It begins as early as 1769.
• The automobile sector is one of the key segments of the
economy having extensive forward and backward linkages
with other key segments of the economy.
• It contributes about 4 per cent in India's Gross Domestic
Product(GDP) and 5 per cent in India's industrial
production.
• Indian Automobile sales growth rate would be 9.5 % by
2010.
FACTS
• 9th largest automobile industry .
• 2nd largest two-wheeler market,
• 4th largest in Heavy Trucks.
• 2nd largest tractor manufacturer.
• 11th largest passenger car market and expected to
become 7th largest by 2016.
• Sale of passenger cars in India is likely to grow at an
average of 14.9% each year to touch 2.1 million mark by
2010.
KEY PLAYERS
 

Maruti TATA
Hyundai Honda
Ford GM
Sonalika International HM
Force Toyota Kirloskar
M&M Fiat
Skoda Audi
Mercedes Benz BMW
Volkswagon Mitshubishi
AUTOMOBILE

2 3 PASSENG COMMERC
WHEELL WHEELL ER IAL
ER ER VEHICLE VEHICLE
2 WHEELER

• Market leader Hero Honda with market share 50%


3 WHEELER

• Market leader Mahindra & Mahindra with market share 42%


PASSENGER VEHICLE

• Market leader Maruti with market share 52%


COMMERCIAL VEHICLE

• Market leader Tata Motor with market share 61%


SEGMENTATION OF
AUTOMOBILE INDUSTRY
• Following is the segmentation that how much each sector comprises
of whole Indian Automobile Industry .
Indian Auto Market Growth
for the year 2007-08
• The automobile industry crossed a landmark with total vehicle
production of 10 million units.
• Car sales was 8,82,094 units against 8,20,179 units in 2007-
08.
• The two-wheeler market grew by 13.6 % with 70,56,317 units
against 62,09,765 units in 2007-08.
• Commercial vehicles segment grew at 10.1 % with 3,50,683
units against 3,18,430 units in 2007-08
• The domestic automobile industry sales grew 12.8% at
89,10,224 units as against 78,97,629 units in 2007-08.
• Medium and heavy commercial vehicles managed a
growth of 4.5%.
• Light commercial vehicles sales growth was 19.4% at
1,43,237 units against 1,19,924 units in 2007-08.
• Three-wheelers sales rose by 17% at 3,60,187 units
against 3,07,862 units in 2007-08.
sales PERFORMANCE IN
2009
GDP
• Directly and indirectly it employs more than 10 million people.
• The market value of Automobile Industry is more than US$8
billion. and Contribution in Indian GDP is near about 4% and will
be double by 2016.
• The automobile industry in India grew at rate of 11.5 % over the
past five years, but growth rate in last year 2008-09 was only
0.7%.
• FDI inflows in Automobile Industry 2008-09 was Rs.5,212 Cr an
increase of 47.25% compare to 2007-08.
• In 2009, India emerged as Asia's fourth largest exporter of
automobiles, behind Japan, South Korea and Thailand.
SWOT OF
AUTOMOBILE INDUSTRY
STRENGTHS
• Large domestic market
• Sustainable labor cost advantage
• Government incentives for manufacturing plants
• Strong engineering skills in design
• Able to achieve significant gains in productivity

WEAKNESSES
• Low labor productivity
• High interest costs and high overheads
• Rising cost of production
• Low investment in Research and Development
OPPORTUNITIES
• Commercial vehicles
• Heavy thrust on mining and construction activity
• Increase in the income level
• Cut in excise duties
• Rising rural demand

THREATS

• Rising interest rates


• Cut throat competition
• Lack of technology for Indian Companies
FUTURE PROSPECT OF INDIAN
AUTOMOBILE SECTOR
• Automobile industry expert predicts that by 2050 every sixth
car in the world will be for Indians.
• By 2010 India will take over Germany in sales volumes and
Japan by 2012
• The Indian automobile component industry is estimated to
triple from USD 63 billion to USD 190 billion within a span of
six years by 2012.
• Industry analysts predict this industry to touch USD 13000
million mark by 2010, a cumulative growth of 9.5% annually.
• It is said that for every Re 1 spent, the auto sector returns
Rs. 2.24 to the Indian economy.
CAREER
POSITION DETAIL FOR MBA STUDENT

• State - Head- Commercial


• Regional Manager- Commercial
• Regional Manager- Refurbishment
• Senior Manager-Refurbishment
• Sales Executive
• "MIS Manager“
• HR/Industrial
AUTOMOBILE JOB
DESCRIPTION
• To coordinate with the different department .
• To sketch new ideas .
• To get opinions of the users and clients and work
towards getting better results.
• To plan, implement and design the blueprints for
every part of the model.
• To build up prototypes for a new model
• Building up the actual model
• To conduct various quality tests
EDUCATION REQUIREMENT
FOR AUTOMOBILE JOBS
• Bachelor’s Degree

• Diploma in Automobile/ Mechanical engineering

• Post Graduate degree

• Master’s degree

• MBA (Master’s of Business Administration)


SKILLS NEEDED
• Computer literacy

• Communication skills

• Risk identification skills

• Analytical skills

• Technical skills
AUTOMOBILE JOB SALARY
• Beginner (0-1 years of experience)
Monthly: Rs.8,000 to Rs.18,000
Annual: Rs.0.96 lakhs to Rs.2.16 lakhs

• Professional ( 2-3 years of experience) :


Monthly: Rs. 18,000 to Rs. 30,000
Annual: Rs.2.16 lakhs to Rs. 3.60 lakhs

• Automobile Manager professional ( 5 and


above  years of experience)
Monthly: Rs. 30,000 to Rs. 50,000
Annual: Rs.3.60 lakhs to Rs. 6.00 lakhs
JOBS IN SELLING UNITS
(SHOWROOMS)

• CRM (Package: Rs 12000 to Rs 18000) +


Incentives
• HR Manager (Package: Rs 12000 to Rs
18000)
• Sales Manager (Should be experienced)
salary starts from Rs 20000 + incentives.
• Event Manager (Package: Rs 12000 to Rs
18000)
Cities where it will be
easier to find an
Automobile job
• Mumbai
• Delhi
• Chennai
• Pune
• Hyderabad
• Gurgaon
• Bangalore
• Chandigarh
• Kolkatta
• Ahmedabad
PROBLEMS RELATED TO
RECRUITMENT IN
AUTOMOBILE SECTOR
• Attrition and skill migration

• Talent Crunch

• Lower Salary hikes


MICHAEL PORTER FIVE
FORCE MODEL
• DEGREE OF RIVALRY

• THREAT OF SUBSTITUTES

• BARRIERS TO ENTRY 

• SUPPLIER’S POWER

• BUYER’S POWER
INTRODUCTION TO TATA
MOTORS
• Tata Motors Limited is a multinational corporation
headquartered in Mumbai, India. Part of the Tata Group
• Established in 1945, when the company began
manufacturing locomotives, the company manufactured
its first commercial vehicle in 1954 in a collaboration with
Daimler-Benz AG, which ended in 1969.
• Tata Motors has a consolidated revenue of USD 16
billion after the acquisition of British automotive brands
Jaguar and Landrover in 2008.
• It is India's largest company in the automobile and
commercial vehicle sector.
INTRODUCTION
CONTINUED….
• The company is the world’s fourth largest truck
manufacturer, and the world’s second largest bus
manufacturer. In India.
• Tata Motors is a dual-listed company traded on both the
Bombay Stock Exchange as well as on the New York
Stock Exchange.
• In 1998 it launched Tata Indica, India's first fully
indigenous passenger car.
• Tata ranks as the leader in every commercial vehicle
segment, and is in the top 3 makers of passenger cars.
Tata Motors is also the designer and manufacturer of the
iconic Tata Nano, which is the cheapest car in the world.
SWOT
STRENGTHS
• The internationalization strategy
• Expertise.
• Intensive management development.
• Successful alliance with Italian mass producer Fiat since 2006.
WEAKNESSES
• The company's passenger car products are based upon 3rd and
4th generation platforms.
• Tata has not got a foothold in the luxury car segment in its
domestic, Indian market.
SWOT CONTINUED…….
OPPORTUNITIES
• Purchased the Land Rover and Jaguar brands from Ford
Motors for UK £2.3 million in 2008.
• Tata Motors Limited acquired Daewoo Motor's
Commercial vehicle business in 2004 for around USD
$16 million.
• Nano is the cheapest car in the World introduced by
TATA.
SWOT CONTINUED……
THREATS
• Other competing car manufacturers have been in the
passenger car business for 40, 50 or more years.
• Sustainability and environmentalism could mean extra costs
for this low-cost producer.
• Rising prices in the global economy could pose a threat to
Tata Motors Limited on a couple of fronts.
• The price of steel and aluminium is increasing putting pressure
on the costs of production.
• Many of Tata's products run on Diesel fuel which is becoming
expensive globally and within its traditional home market.
MARUTI UDYOG LIMITED
• Maruti Suzuki India Limited is a publicly listed
automaker in India.
• It was the first company in India to mass-produce and
sell more than a million cars.
• It is the market leader in India and on 17 September
2007, Maruti Udyog was renamed Maruti Suzuki India
Limited.
• The company headquarter is in Gurgaon,Haryana.s
• Established in December 1983, Maruti Suzuki India Ltd.
has ushered a revolution in the Indian car industry.
INTRODUCTION OF MUL
CONT…..
• This car is meant for an average Indian individual which
is affordable as well as has elegant appeal.

• Maruti Suzuki India Ltd. is the result of collaboration of


Maruti with Suzuki of Japan.

• The company has crossed the milestone of becoming


the first Indian company in March 1994, by
manufacturing in totality one million vehicles.
SWOT
STRENGTHS
• Established distribution and after-sales networks
• Understanding of the Indian market and ability to liaison with the government
• Ability to design products with differentiating features
• Brand Image
• Experience and Know-how in technology
WEAKNESSES
• Lack of experience with the foreign market
• Inexperience with foreign workforce
• Heavy Import tariffs
SWOT CONTINUED…….
OPPORTUNITY
• Increased purchasing power of Indian middleclass category
• Govt. subsidies
• Tax benefits
• Foreign collaboration

THREATS
• Threats from Chinese manufacturers
• Indian as well as foreign competitors
Mahindra & Mahindra
• Incorporated on 2nd October 1945 by two brothers Mr. J
C Mahindra & Mr. K C Mahindra.

• Converted into public limited company in 1955.

• Started with manufacturing General Utility Vehicles.

• Also started manufacturing Tractors and LCV(Light


Commercial Vehicles)
Conti…
• Major Players in Utility vehicle segment and Tractor
segment.

• One amongst the top five tractor manufacturing


companies in the world

• Very indigenous regarding very little help from foreign


technology sources.

• Presence in countries of Europe, Latin America, Africa


and United States of America
SWOT Analysis
STRENGTH

• Very high Brand recall in Tractors Market.


• Continuous Innovation.
• Strong Research & Development

WEAKNESS

• High dependence on Rural Market.


OPPORTUNITY

• 10 tractors per 1000 hectares of agricultural


area, much below world average.
• Huge untapped Market.

THREAT

• Entry of Competent Foreign & Domestic


Players in Tractors Market.
HERO HONDA
• Joint venture – Both Hero Cycles(India) and Honda
Motor Company (Japan) holds 26%stake.
• Incorporated in January 1984.
• Market leader in Two Wheeler Segment with 55 % of
domestic market .
• Two Manufacturing Units Located at Gurgaon and
Dhaurhera in Hariyana.
SWOT Analysis
STRENGTH

• Excellent ability to Understand Customer Needs and deliver best


suitable products.
• Recognized and established Brand name.
• Products with Superior Performance, Low maintenance and high
resell value.

WEAKNESS

• Honda Motor Company is dominant partner.


• Lack of technical capabilities of Honda Motors may degrade the
performance of the company and its products.
OPPORTUNITY

• Global Expansion.
• Expansion of Target Market
• Huge Indian market.

THREAT

• Honda and Scooter India can take away market Share and
form joint venture to go sour.
• Emergence of strong Players.
• FDI Announcement 100 % may attract foreign players to
domestic market.
CONCLUSION
Industry across countries will have to meet challenges of
newer technologies, alternative fuels and affordability of
automobiles by people at large through constructive
cooperation. The earlier we are able to achieve this the better
it would be for the world performance.
YO U
ANK
T H
Yugesh Kumar Dubey