Macroenvironmental Factors Affecting Automobile Industry - Presentation Transcript

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Macroenvironmental Factors Affecting Automobile Industry - Presentation Transcript 1. MACRO-ENVIRONMENTAL FACTORS AFFECTING AUTOMOBILE INDUSTRY 2. Introduction

* Tenth largest in the world
* Expected to overtake China
* Huge attraction for foreign car manufacturers
* Dominated by domestic companies
* Contributes 3.1% to the nominal GDP
3. Interesting Figures
India’s motorcycle market is the second largest in the world Largest three-wheeler market
Second largest tractor manufacturer
Fifth largest commercial vehicle manufacturer
Largest two-wheeler manufacturer
4. Evolution of Automobile Industry
Initial Years
Manufacturing was licensed

* High Customs duty on import
* Steep excise duties &
* sales tax
* 2 Major players:
Premier Automobiles Ltd
& Hindustan Motors
1980s

* Entry of MUL, better product,
with government support

* Seller’s Market
* Long Waiting Periods
Early to mid 90s

* Seller’s market and long waiting periods
* Delicensing in 1993
* Removal of capacity restrictions
* Decrease in customs & excise
* Auto finance boom- more players (foreign banks & non banking companies, better schemes. Mid 90s – Early 2000s

* Buyers market
* Increase in Indigenization
* Easy Auto finance
* Manufactures diversifying into related activities: finance lease, fleet management, insurance and used car market 5. Segment wise market share…
CVs
Three Wheeler
Passenger vehicles
Two Wheeler

* The industry has not experienced much change in its structure over the last 6 years * Two- wheelers form the major share of domestic sales * Passenger vehicles lead the exports market(57.4%)

* 2 wheelers form the bulk of exports as well, but are losing share to Passenger vehicles * The growth in the two wheeler market is driven by the motorcycle market and is expected to grow at 14-15 % YOY 6. The Key Players…

Two wheeler
Passenger vehicle
7. THE COMPANY’S MARKETING ENVIRONMENT
The Economy
Social Factors
Suppliers
Demography
Distributors & Dealers
Company
Public
Customers
Cultural Factors
Competitors
Political & Legal
Technology
8. THE EXTERNAL ENVIRONMENT
There is a need to identify the uncontrollable key factors that will impact on the organization's operations. The best known method is the SLEPT analysis. 8
Economic
environment
Political
environment
The organisation
Social
environment
Technological
environment
Legal environment
9. (B) MACRO-ENVIRONMENT
Natural Forces
Technological Forces
Economic Forces
Political Forces
Demographic Forces
Company
Cultural Forces
“ It is useless to tell a river to stop running; the best thing is to learn how to swim in the direction it is flowing” 10. MACRO-ENVIRONMENT
An organization’s success depends on the ability of its executives to manage its marketing system in relation to its external environment. These forces (macro-environmental forces) are uncontrollable and pose opportunities and create threats for the company. TODAY YOU HAVE TO RUN FASTER TO STAY IN THE SAME PLACE.

11. Brand endorsement by celebrities
12. Region wise distribution of vehicles
13. Buy and sell second hand vehicles
14. THE SMALL CARS DOMINATE
Combination of small cars and two wheelers
Use of cars as cabs
15. Natural environment
Major global concern
Use of alternate biofuels
Use of eco friendly cars
16. Anti pollution pressures
Implementation of Euro norms/Bharat norms
Tata Motors is the first Indian Company to introduce vehicles with Euro norms well ahead of the mandated dates.

* Use of THE CNG
Indica V2 Xeta LPG is equipped with dual fuel engine having the options of petrol and LPG. This increases the fuel efficiency and reduces the CO2 emissions by 10%. The car meets Bharat Stage III emission norms and can be...
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