A?t?m?bile Ind?stry India is ?ne ?f the

A?t?m?bile Ind?stry

India is ?ne ?f the largest A?t?m?bile Ind?stry in the w?rld. The a?t?m?bile ind?stry a????nts f?r ab??t 7.1 per ?ent ?f the Gr?ss D?mesti? Pr?d??t (GDP). The Tw? Wheelers segment has 80 per ?ent market share is the leader ?f A?t?m?bile market ?wing t? a middle ?lass and y??ng p?p?lati?n. The gr?wing interest ?f the ??mpanies in expl?ring the r?ral markets f?rther led t? the gr?wth ?f the A?t?m?bile se?t?r. The ?verall Passenger Vehi?le segment has ab??t 14 per ?ent ?f market share.

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India is an a?t? exp?rter and has str?ng exp?rt expe?ted gr?wth  f?r the near f?t?re. In 2017 exp?rts ?f PV and ??mmer?ial Vehi?les (?V) registered a gr?wth ?f 16.20 per ?ent and 4.99 per ?ent respe?tively, ?ver 2016.Several initiatives by the G?vernment ?f India in the Indian market are expe?ted t? make India a leader in the 2Wheeler and F??r Wheeler market in the w?rld in f?t?re.

Market Size and ?hara?teristi?s

Pr?d??ti?n ?f passenger vehi?les, ??mmer?ial vehi?les, three wheelers and tw? wheelers grew at 5.48 % in 2017 t? 25,316,044 vehi?les fr?m 24,016,599 vehi?les in 2016.The sales ?f passenger vehi?les, ??mmer?ial vehi?les and tw? wheelers grew by 9.28 per ?ent, 4.20 per ?ent and 7 per ?ent d?ring the peri?d April-Mar?h 2017.

 

India’s ele?tri? vehi?le sales in?reased 38 per ?ent t? 22,000 ?nits d?ring 2015-16 and expe?ted t? rise f?rther ?n the ba?k ?f ?heaper energy st?rage ??sts and the G?vernment’s visi?n t? see ab??t six milli?n ele?tri? and hybrid vehi?les in India by 2020.

Market Trends

In ?rder t? keep ?p with the gr?wing market demand, several a?t? makers have invested heavily in vari??s segments d?ring the last few m?nths. The ind?stry has attra?ted F?reign Dire?t Investment w?rth ab??t ?S$ 17.40 billi?n d?ring April 2000 t? ??ne 2017, this is a???rding t? data released by Department ?f Ind?strial P?li?y and Pr?m?ti?n (DIPP).

S?me ma??r investments and devel?pments in the a?t?m?bile se?t?r in India are:

?SW Energy, has signed a Mem?rand?m ?f ?nderstanding with the G??arat g?vernment t? set an ele?tri? vehi?le-man?fa?t?ring ??mpany ??sting ar??nd Rs 4,000 ?r?re (?S$ 613 milli?n) whi?h has the ?apa?ity t? pr?d??e ab??t 2,00,000 ele?tri? vehi?les every year.
Tata M?t?rs w??ld invest Rs 4,000 ?r?re (?S$ 612 milli?n) in  2017 and a ma??r p?rti?n will g? t? passenger vehi?les Rs 2,500 ?r?res (?S$ 375 milli?n) and the remaining Rs 1,500 ?r?re ($225 milli?n) will be invested in the b?siness ?ver the next ab??t next five years.
Ele?tri? ?ar maker Tesla In?. will intr?d??e its pr?d??ts in India s?metime in the s?mmer ?f 2018.
Kia M?t?rs is expe?ted that it w??ld sign a mem?rand?m ?f ?nderstanding with the G?vernment ?f Andhra Pradesh (AP) t? set ?p a fa?t?ry in Anantap?r distri?t and the ??mpany will invest ar??nd ?S$ 2 billi?n ?n the plant and it will be man?fa?t?ring ab??t 3 lakhs ?ar per ann?m.
Several a?t?m?bile man?fa?t?rers, fr?m gl?bal ma??rs A?di t? Indian man?fa?t?rers s??h as Mar?ti S?z?ki and Mahindra & Mahindra, are expl?ring the p?ssibilities t? intr?d??e driverless ?ars f?r India market segment.
BMW w??ld man?fa?t?re a l??al versi?n ?f bel?w-500 ?? m?t?r?y?le, the G310R, in TVS M?t?r’s plant in Tamil Nad?, f?r l??al r?ads.
Her? M?t???rp Ltd seeks t? enhan?e its parti?ipati?n in the Indian ele?tri? vehi?le market by p?rs?ing its internal EV pr?gram by investing Rs 205 ?r?re (?S$ 30.75 milli?n) t? a?q?ire ar??nd 26-30 per ?ent stake in Bengal?r?-based te?hn?l?gy start-?p.
F?rd M?t?r ??. plans t? invest ab??t Rs 1,300 ?r?re (?S$ 195 milli?n) t? help b?ild a gl?bal te?hn?l?gy and b?siness ?entre, whi?h will be designed as a h?b f?r pr?d??t devel?pment, m?bility s?l?ti?ns and b?siness servi?es f?r India l??al and ?ther markets w?rldwide.

 

 

 

 

G?vernment Initiatives

The G?vernment en???rages f?reign investment in a?t?m?bile se?t?r and all?ws 100 per ?ent FDI ?nder the a?t?mati? r??te in any f?rm whi?h has led t? immense gr?wth the past year.

S?me ?f the initiatives taken by the G?vernment are:

• Plan t? intr?d??e bi?f?el vehi?les f?r r?ad and water transp?rtati?n. ??t f?ssil f?el imp?rts and l??k f?r alternative whi?h have l?w ??st like methan?l.

•India has extended s?pp?rt t? the ind?stry by in?reasing ??st?m d?ty ?n ??mmer?ial vehi?les fr?m 10 per ?ent t? 40 per ?ent and red??ing d?ty ?n ?hassis f?r amb?lan?e man?fa?t?ring t? 12.5 per ?ent.

•       The G?vernment plans t? intr?d??e a Green ?rban Transp?rt S?heme with a ?entral assistan?e ?f ar??nd Rs 25,000 ?r?re, aimed at b??sting the gr?wth ?f ?rban transp?rt ?n l?w ?arb?n f?r red??ti?n in p?ll?ti?n, and pr?viding a framew?rk f?r f?nding ?rban m?bility pr??e?ts at Nati?nal and State level with minim?m re???rse t? b?dgetary s?pp?rt by ?sing inn?vative finan?ing meth?ds ?f a?t?m?bile related pr??e?ts.

•a?t?m?biles man?fa?t?ring will the p?siti?ned as imp?rtant ?nder ‘Make in India’ initiative, as it passenger vehi?les market is expe?ted t? triple t? 9.4 milli?n ?nits, as highlighted in the A?t? Missi?n Plan 2016-28.

•The g?vernment has a S?heme f?r Ad?pti?n and Man?fa?t?ring ?f Ele?tri? Vehi?les in India, Whi?h ??mes ?nder the Nati?nal M?bility Missi?n 2020 t? en???rage the pr?gressive ind??ti?n ?f reliable and effi?ient ele?tri? vehi?les in the ???ntry f?r ??nstant gr?wth.

R?ad Ahead

The a?t?m?bile ind?stry is s?pp?rted by highly skilled lab??r and inn?vati?n resear?h and devel?pment market whi?h has led t? f?rther gr?wth in the empl?yment market leading t? ??b ?reati?n f?r b?th skill and ?nskilled w?rkers.

The Indian a?t?m?tive aftermarket is estimated t? gr?w at ar??nd 12-15 per ?ent t? rea?h ?S$ 17 billi?n by 2021 fr?m ar??nd ?S$ 8 billi?n in 2017. It has the p?tential t? generate ?p t? ?S$ 300 billi?n ann?al reven?e by 2030, ?reate ab??t 65 milli?n ??bs and ??ntrib?te ?ver 12 per ?ent t? India’s GDP.

The eminent ??mp?nents in whi?h the a?t?m?bile ind?stry is trying t? w?rk ?p?n:

?APA?ITY ADDITI?N:

1.     ??nsidering l?w ??st ?f pr?d??ti?n, pr?minent a?t? ??mpanies are in?reasing their pr?d??ti?n ?apa?ity in ?rder t? ?apt?re a d?minant share in Indian a?t?m?bile ind?stry.

2.     M?st ?f the a?t?m?bile ??mpanies are eyeing India as an ??ts??r?ing h?b.

3.     With the t?tal investment ?f ar??nd ?S$ 163.7 milli?n, H?nda M?t?r?y?le & S???ter India expanded its pr?d??ti?n ?f A?tiva in three variants at Ahmedabad plant.

4.     V?lv? has started l??al assembly ?f its ?ars in India fr?m ??t?ber 2017.

5.     A new engine assembly line is being set ?p by the V?lkswagen gr??p in A?rangabad

 

?ATERING INDIAN NEEDS:

1.     M?st ?f the firms in?l?ding F?rd & V?lkswagen have adapted themselves t? ?ater t? the large Indian middle ?lass by dr?pping their traditi?nal str??t?re and designs.

2.     This all?ws them t? ??mpete dire?tly with d?mesti? firms making the se?t?r highly ??mpetitive.

LA?N?H ?F NEW M?DELS:

1.     H?nda is planning t? la?n?h three new ?ar m?dels in India by 2020 and will l??alise the engines t? keep the pri?es l?w.

2.     Fiat ?hrysler A?t?m?biles India, la?n?hed its new ?eep brand ??mpass in Febr?ary 2017, whi?h is g?ing t? be pr?d??ed indigen??sly in Ran?anga?n,, Maharashtra. India will pr?bably be the 4th man?fa?t?ring h?b, gl?bally, f?r the brand in next five years.

3.     In Mar?h 2017, Tata M?t?rs’ new sp?rts ?ar was ?nveiled, ?nder its new s?b brand – TAM?, at the Geneva Internati?nal M?t?r Sh?w. The sh?w will displayed ni?he segment m?dels with advan?ed te?hn?l?gies.

4.     In May 2017, P?ne based Kineti? Green Energy and P?wer S?l?ti?ns Ltd. has la?n?hed its 1st ele?tri? 3- wheeler “Kineti? Safar”, This 3-wheeler is eq?ipped with an advan?ed lithi?m-i?n battery.

 

 

 

 

 

GR?WTH DRIVERS

1.     Rising in??me and a large y??ng p?p?lati?n.

2.      Greater availability ?f ?redit and finan?ing ?pti?ns.

3.     Demand f?r ??mmer?ial vehi?les in?reasing d?e t? high level ?f a?tivity in infrastr??t?re se?t?r.

4.     ?lear visi?n ?f Indian g?vernment t? make India an a?t? man?fa?t?ring h?b.

5.     Initiatives like ‘Make in India’, ‘A?t?m?tive Missi?n Plan 2026’, and NEMMP 2020 t? give a h?ge b??st t? the se?t?r.

6.     Impr?ving r?ad infrastr??t?re.

7.      Established a?t? an?illary ind?stry giving the req?ired s?pp?rt t? b??st gr?wth.

8.     5 per ?ent ?f t?tal FDI infl?ws t? India went int? the a?t?m?biles se?t?r.

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Market Str??t?re

A?t?m?bile Ind?stry mainly deals with farm eq?ipment, ?tility vehi?les and ??mmer?ial vehi?les it h?lds different ??mpetit?r segments f?r different vehi?le segments.

F?r example – F?r 2-Wheeler market H?nda and S?z?ki is the main ??mpetit?r b?t when it ??mes t? tr??ks and b?sses Daimler and Ei?her m?t?rs stand as the ?hief ??mpetit?rs.

??mpetit?rs ?f a?t?m?bile ind?stry a?r?ss Ge?graphy

 

?hief ??mpetit?rs ?f A?t?m?bile ind?stries:-

Hind?stan m?t?rs
T?y?ta
Tata M?t?rs
H?nda
Hy?ndai
Mar?ti-S?z?ki
Ash?k Leyland

 

??mparis?n with Market Leader:

 

                                                                                        

 

Ma??r ??mpetit?rs ?f a?r?ss vari??s Segments:-

 

 

 

 

Market share ?f ea?h parti?ipant:

The market share ?f A?t?m?bile Ind?stry when the ??mmer?ial vehi?les ?ateg?ry is ??n?erned has n?t ?hanged m??h when ??mpared t? 2016 –

Market share ?f  2 wheelers is:

 

?hara?teristi?s ?f ??mpetit?rs and behavi?ral trait

TATA M?T?RS

1.     It is a market leader in the ??mmer?ial vehi?le segment in India with a 42 per ?ent market share in FY17 and als? a key player in the passenger vehi?le segment.

2.     The ??mpany has been at the f?refr?nt ?f te?hn?l?gy and inn?vati?n and la?n?hed the ?heapest ?ar in the w?rld.

3.     Tata M?t?rs p?sted ??ns?lidated reven?es ?f ?S$ 9.10 billi?n in Q1 FY18 and ?S$ 10.91 billi?n in Q2 FY18.

4.     Tata M?t?rs are always ?n t?p when their Ethi?s and the ??rp?rate g?vernan?e is ??nsidered. Hen?e, they ??n?entrate m?re ?n inn?vati?n and d?minati?n t? a?q?ire m?re and m?re market share.

5.     Theref?re, ?ther A?t?m?bile ind?stry ??mpete ?n the gr??nds ?f  inn?vati?n.

Mar?ti-S?z?ki

 

1.     Mar?ti S?z?ki is a ma??rity ?wned s?bsidiary ?f ?apanese ??ngl?merate S?z?ki.

2.     It is n?w the ?ndisp?ted market leader in the passenger vehi?les segment in India with a market share ?f 47 per ?ent in FY17.

3.     The ??mpany has made the m?st aff?rdable ?ars f?r the Indian middle ?lass f?r m?re than three de?ades.

4.     New m?dels are being la?n?hed ea?h year t? h?ld the p?siti?n ?f the leader in its h?me market.

5.     The ??mpany mainly w?rks ?n the pri?ing strategy hen?e it is the pri?e ??mpetit?r with ?ther a?t?m?bile ??mpany’s.