automobile industry in india 2

8/8/2019 Automobile Industry in India 2

1/26

1

SLOWDOWN OF

AUTOMOTIVE INDUSTRYIN INDIA.

BY :-

SOP2 ,B2


2/26

2

TEAM MEMBERS

SREEJITH KURUP

RAKESH KR. VERMA

VIKASH SINGH

MADAN MOHAN


3/26

3

SOP OWNER.

MR. BINU.R


4/26

4

CONTENT. INTRODUCTION

SEGMENTATION & CONTRIBUTIONTOGDP GROWTHRATE AUTOMOBILE

PRODU

CTION

TRENDS

FESTIVALSALES DOMESTIC SALES IMPACTOFSLOWDOWN SCOPE CHALLENGES INCENTIVES OPPORTUNITIES

ACMAAPPEAL CONCLUSION BIBLIOGRAPHY


5/26

5

INTRODUCTION>10th largest in the world with an annual

production of 11.07 million units.

>One of the key industry propelling Indianeconomy.

>Provide employment to 1.31 crore (13.1million) people including both direct &

indirect employment.>100% FDI is permissible.

> It crossed a total turnover of over US $15billion(Rs64,500crore).


6/26

6

SEGMENTATIONS &

CONTRIBUTION TO GDP.Automobile industry in India issegmented into three parts:-

Two wheeler Four wheeler

Heavy vehicle

>Adds 4-5% to the countrys GDP.>Contributing 17% to the kitty of

indirect taxes to the government.


7/26

7

GROWTH RATE Performance of the industry for the

fiscal year 2006-07 was very upbeat.Overall growth rate of this sector was13.56%.

The growth rate of automobile sector

in fiscal year 2007-08 was 10.7%. The growth rate of automobile sector

in current fiscal year is just 4.3%.


8/26


9/26

9

FESTIVAL FAILURES. Vehicles sales declined by 14.42% in

October to 8.65 lakh against 10.11 lakh

last year. According to SIAM domestic car sales

falls 6.59% to 98,900 units in oct 08against 1.05 lakh units in oct 07.

Maruti Suzuki and Tata Motors are themost affected companies.


10/26

10

DOMESTIC

SALES.

Source: BUSINESS LINE


11/26

11

IMPACT OF SLOWDOWN

ASHOK LEYLAND:-

AL has decided for three days

work a week to decrease theproduction, as the demand hasdecreased by 40%.

It has reported 50% slump inOctober sales as compared to lastyear.

Ashok

Leyland shares fell to


12/26

12

Contd..TATAMOTORS:-

TM has given three days holidays from 6-

8 nov to match production with demand.

No work notice to its non permanentworkers.

Sales decreased by 25-40% last month. Shares dropped to Rs131 as 52 week

lowest.


13/26

13

Contd..HYUNDAIMOTORS:- HMILTarget was to sell 6 lakhs cars in

2008 which includes export of 2.7lakhs

cars. But now the target is to close with5.15 lakhs cars.

In 2007 HMIL total sales went by 9.2% to3,27,160 cars of which domestic sales roseby 7.6% to 2lakh & exports 11.8% to1.26lakh cars.

Company sold 4.07 lakh cars till October,up by 49% over the same period in 2007which include domestic sales of 2.15lakh,

28% increase & export of 1.92lakh cars anincrease of 83%.


14/26

14

Contd..MARUTISUZUKI:-

During the financial year 2006-07, it sold

6,35,629 units with a turnover of Rs145.9billion with a profit of Rs15.62 billionhaving a market share of 54.6%.

It sold 7,64,842units including export of

53024 units. The sales rose up by 13.3% inthe year 2007-08. the company had a totalincome of 1,88,238 million with a profit of17,308 million after tax.


15/26


16/26

16

SCOPE# The industry is going through a phase of

rapid changes and high growth. With new

projects coming up on a regular basis, theindustry is undergoing technologicalevolutions to compete with world players.

# The major players are expanding their

plants and focusing on mass customization,mass production, etc.

# The overall investment in the sector hasbeen increasing quite rapidly.


17/26

17

ContdIndian automobile sector will be investinga huge amountof Rs. 30,000 crores by2010.

# For example----- Maruti Udyog Ltd has plans of investing

Rs. 6,500 crores. Tata Motors is coming up with an

in

vestme

nto

fR

s. 2,000 cro

res in

itscompactcar project.

Apart from the Indian auto giants foreignplayers like Hyundai is also coming upwith an investment planof more thanRs.

3,800 crores inIndia.


18/26

18

CHALLENGES

Lack of the availability ofconsumer finance.

Rise in the cost of raw materials.

High Interest rates.

High cost of fuel. Fall in demand.


19/26

19

INCENTIVES Excise duty on small cars reduced to

14% E

xcise cut on two and three wheelers to12% Excise duty on buses and chassis cut

from 16% to 12% Excise duty on hybrid cars cut from 24%

to 14% Custom duty on steel reduced from 5%

to nil.


20/26

20

OPPORTUNITIES

Among fastest growing car market .

Overall growth of 9%.

Focus on to set up R&D andengineering centers.

Exposure to address the global automarket while leveraging the domesticmarket.


21/26

21

AC

MA APPEAL ACMA-- Automotive components Association

of India.

It has appealed to government to provide a

relief package in the form of Bridge Policyto help the sector cope with the currenteconomic slowdown.

The president of ACMA has suggested some

measures to the government to beimplemented as soon as possible.

They are:-

>Waving off of custom duty on raw material.


22/26

22

Contd>Assured funding from bank on capital

expenditure.

>Increasing the time of repaymentofSMEs.

>Further cutdownonthe CRR.

>Special loan scheme for the autocomponent industry at concessionalrate.


23/26

23

CONCLUSION.India is a developing economy andhas immense potential to overcome

the hindrance. But currentlygovernment need to provide someimmediate relief to the industry tosustain their growth over the next

few months so as to ensure that themomentum built over the last fiveyears is continued in the future also.


24/26

24

BIBLIOGRAPHY http://www.automobileindia.com

http://www.newstrackindia.com

http://www.indianbusiness.nic.in

http://www.business.mapsofindia.com

http://www.automotiveworld.com

The Economic times

The Hindu


25/26

25

questions ???????...

most welcome


26/26

26

Thanks

automobile industry in india 2

Documents