PROJECT
ON
Automobile Industry
Commercial
Vehicles
domestics Sales
growth of 17.4%
CAGR (FY03-12)
Passenger Vehicles
(cars,vans,multiutility) domestics
Sales growth of
15.7%% CAGR
(FY03-12)
Three Wheelers
1st
Two- Wheelers
2nd
Commercial Vehicles
5th
Passenger Cars
7th
Two Wheelers
domestic sales
growth 12.1%
CAGR (FY03-12)
Three Wheelers
growth 9.2%
CAGR (FY03-12)
Political
No min criteria for FDI
Automatic approvals for FDI in Indian Automobile Market and the country can export
without paying taxes
--a big opportunity for automobile FDI growth exists in India.
Abolishment of tax for income up to Rs. 2.5 lakh, allocation of Rs. 14,389 crore for
roads in villages might help the industry in the long run.
In the pipeline
an announcement on incentives for electric vehicles
Economic
The investment climate is positive. A slew of poilicies
implemented to promote foreign direct investment (FDI) of up
to 100 per cent. This is done by imposing heavy duties on
import of vehicles while promoting import of components and
machinery
In current budget, the government maintained the custom
duty on import of CBU and SKD of new cars at 61.8%
Social
Increasing
distances
between
workplace and
residence.
Preference for
small and compact
cars. Small cars
becoming socially
acceptable
Increase in % of
working women.
Increasing
propensity
to spend
Price
sensitive.
Emphasis
on value for
money
Technological
Government of India promoting National Automotive Testing and R&D
Infrastructure Project (NATRIP) to support the growth of the auto industry in India.
200% weighted deduction under section 35(2AB) of the Act available for
in-house R&D facility , 175%weighted deduction on outsourced R&D
from approved Institutions
Dealer Management System (DMS) s/w soln enabling auto companies to
offer improved & consistent service across country, & consolidate
customer/retail data to improve their offerings & react to market changes
faster.
Legal
Nodal Ministry for regulation - Ministry of Shipping, Road Transport &
Highways
Principal instruments of emission norms and safety standards in India
Motor Vehicles Act, 1988 (MVA)
Central Motor Vehicles Rules ,1989 (CMVR)
SWOT Analysis
TATA Motors
SWOT Analysis
Strong Domestic Player
56 % Market Share in CV
segment in FY 14
Sold 441,791 Units of CV*
Great Accessibility
Global Presence
JLR is currently profiting centre
17,406 Cr PAT in FY 14 **
Tata Daewoo has 2/3rd Market
share in South Korea
R&D
*Crisil Reports
**Annual Report 2014
SWOT Analysis
Limited Customer Base
UV segment
SWOT Analysis
Expanding Product Line
Acquisition of Rivals
Acquisition of rivals
Daewoo in 2004
JLR in 2008
SWOT Analysis
Rising Cost of
Manufacturing
Environmental Regulations
Increased focus on
Sustainability from
government
Stringent Emission norms
Leading pressure on
increasing prices of
products
Impact on profit
margins
T
Rising Fuel costs
IFAS Matrix
Internal Strategic
Weight
Rating
Factors (1)
(2)
(3)
Weighted
Score
(4)
Remarks
(5)
Strengths
Tata Brand Name .10
0.35
4.2
0.63
0.40
Global presence
.15
Strong Domestic
.15
3.5
Player
.05
.10
3.5
.35
IFAS Matrix(contd..)
Internal
Weight
Rating
Strategic
(2)
(3)
Weighte
d Score
(4)
Remarks
(5)
Factors (1)
Weaknesses
UV segment
.15
.30
.10
.30
company.
Customer is strength of any business so limiting it
wouldnt be advisable.
.05
.10
Poor Product
.10
.30
Limited Customer
Base
Design
Product quality
issues
.30
EFAS Matrix
Internal
Weight
Ratin
Strategic
(2)
Factors (1)
Weighte
d Score
(4)
Remarks
(5)
(3)
Opportunities
Expanding product
line
.10
4.5
.45
Acquisition of rivals
.10
.40
hatchback segments.
Acquiring rival companies adds advantage of new
technology and diverse portfolio in business.
.15
4.2
.63
.20
.80
countries
EFAS Matrix(contd..)
Internal
Weight
Strategic
(2)
Factors (1)
Ratin Weighte
d Score
g
(4)
(3)
Remarks
(5)
Threats
Intense competition in
CV, UV segment
.15
.45
Motors
.10
.30
Environmental
regulations
.05
.20
.15
.45
Rising cost of
Manufacturing
3.68
Thank You