Indian Automobile Industry Analysis

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INDUSTRY ANALYSIS

Today the automobile sector in India contributes 5% to the nation’s GDP, making it a prominent player in the economy. It will contribute around 19% of the Tax collection for financial year 2009-10. Following have been the features of Auto industry in the past financial year.

The following tables and charts consist of the performance of Auto industry in past few years. Industry Aggregate (Rs in million) | | AMJ 10 (E) | Net Sales | 363904.38 | Change (%) | 39% | EBITDA | 64665.22 | Change (%) | 94% | Depreciation | 7303.60 | Interest | 3348.58 | Other Income | 7118.93 | PBT | 61131.97 | Tax | 16645.21 | Effective tax rate | 27% | Reported PAT | 44486.77 | Change % (Reported PAT) | 92% | Market Cap (Rs in bn) | 1647.17 | Source: BSE India; Cygnus Research |
Note: The aggregate consists of the following companies- Bajaj Auto, Ashok Leyland, Tata Motors, TVS Motors, Force Motors, Hero Honda, Escorts Ltd., Eicher Motors, Maruti Udyog Limited, Punjab Tractors Limited, Mahindra & Mahindra, and Hindustan motors

Source: QPAC Indian Automobile industry Apr-Jun 2010

INDIAN AUTOMOBILE INDUSTRY AND TRENDS

Overview

The auto industry in India is the ninth largest in the world. After Japan, South Korea and Thailand, in 2009, India emerged as the fourth largest exporter of automobiles. Several Indian automobile manufacturers have spread their operations globally. Indian auto industry, which is currently growing at the pace of around 18 % per annum, has become a hot destination for global auto players like Volvo, General Motors and Ford. The Indian automobile industry is going through a phase of rapid change and high growth. With new projects coming up on a regular basis, the industry is undergoing technological change. The major players are expanding their plants and focusing on mass customization, mass production.

Yearly-Analysis

Year on year as the Indian population grows the requirement for the transportation

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