Maruti Suzuki.
Chapter 1
Industry Profile
With the contribution of 22% to the country’s manufacturing GDP, the automobile industry has emerged as one among India’s major sectors. India has become a hub for many global players. Currently Indian automobile industry comprises of 15 manufacturers of passenger cars and multi-utility vehicles, 9 manufacturers of commercial vehicles, 16 manufacturers of two / three wheelers, 14 manufacturers of tractors, 5 manufacturers of engines. The Indian auto industry, comprising passenger cars, two wheelers and commercial vehicles is the seventh largest in the world with an annual production of 17.5 million vehicles, of which 2.3 million are exported. Two-wheelers dominate the Indian market; more than 75% of vehicles sold are two-wheelers. In 2009-10, Indian passenger car industry was one of the few markets globally that evaded the recessionary trend and it has been witnessing steady growth over the past few years. The industry’s growth is driven by various factors such as the economic growth of the country, rising disposable income, relatively low car penetration and availability of financing options. The sector’s potential has attracted various foreign OEMs to India and has also led many established domestic and foreign automobile players to adopt capacity expansion strategies. Many established foreign players in India, are also positioning themselves as key contenders to offer low-cost car manufacturing capabilities. However, the industry is struggling with various challenges such as of rising commodity prices, labour costs, interest rates and increased competition.
According to the survey done by IBEF (Indian Brand Equity Foundation) by 2020, India’s share in global passenger vehicle market will reach 8% which was 4% during 2010-11. The passenger vehicle sales is expected to increase from 3.2 million in FY2013to 9 million in FY2020E. There are so many reasons favouring this growth. Some of them are
Industry Profile
With the contribution of 22% to the country’s manufacturing GDP, the automobile industry has emerged as one among India’s major sectors. India has become a hub for many global players. Currently Indian automobile industry comprises of 15 manufacturers of passenger cars and multi-utility vehicles, 9 manufacturers of commercial vehicles, 16 manufacturers of two / three wheelers, 14 manufacturers of tractors, 5 manufacturers of engines. The Indian auto industry, comprising passenger cars, two wheelers and commercial vehicles is the seventh largest in the world with an annual production of 17.5 million vehicles, of which 2.3 million are exported. Two-wheelers dominate the Indian market; more than 75% of vehicles sold are two-wheelers. In 2009-10, Indian passenger car industry was one of the few markets globally that evaded the recessionary trend and it has been witnessing steady growth over the past few years. The industry’s growth is driven by various factors such as the economic growth of the country, rising disposable income, relatively low car penetration and availability of financing options. The sector’s potential has attracted various foreign OEMs to India and has also led many established domestic and foreign automobile players to adopt capacity expansion strategies. Many established foreign players in India, are also positioning themselves as key contenders to offer low-cost car manufacturing capabilities. However, the industry is struggling with various challenges such as of rising commodity prices, labour costs, interest rates and increased competition.
According to the survey done by IBEF (Indian Brand Equity Foundation) by 2020, India’s share in global passenger vehicle market will reach 8% which was 4% during 2010-11. The passenger vehicle sales is expected to increase from 3.2 million in FY2013to 9 million in FY2020E. There are so many reasons favouring this growth. Some of them are