PRESENTATION

ON
AUTOMOBILE
INDUSTRY
 INTRODUCTION TO
AUTOMOBILE SECTOR
• The first car rolled out on the streets of Mumbai in 1898.
• The automobile sector is one of the key segments of
the economy.
• It contributes about 4 per cent in India's Gross
Domestic Product(GDP) and 5 per cent in India's
industrial production.
• In 2009, India emerged as Asia's fourth largest
exporter of automobiles.
• One of the major industrial sectors in India is
the automobile sector.
• Automobile Industry was delicensed in July
1991 with the announcement of the New
Industrial Policy.
• 100% Foreign Direct Investment (FDI) is
permissible.
 FACTS
• 9th largest automobile industry .
• 2nd largest two-wheeler market,
• 4th largest in Heavy Trucks.
• 2nd largest tractor manufacturer.
• 11th largest passenger car market and expected to
become 7th largest by 2016.
 KEY PLAYERS
 

Maruti TATA
Hyundai Honda
Ford GM
Sonalika International HM
Force Toyota Kirloskar
M&M Fiat
Skoda Audi
Mercedes Benz BMW
Volkswagon Ashok Leyland
 AUTOMOBILE

2 3 PASSENGER COMMERCIAL
WHEELLER WHEELLER VEHICLE VEHICLE
 2 WHEELER

• Market leader Hero Honda with market share 50%

 3 WHEELER

• Market leader BAJAJ with market share 68%

• 40% of the three-wheelers are used as goods transport
purpose. Piaggio holds 40% of the market share. Among the
passenger transport.
 PASSENGER VEHICLE

• Market leader Maruti with market share 52% and has

complete monopoly in multi purpose vehicles.
 COMMERCIAL VEHICLE

• Market leader Tata Motor with market share 61%

• Tata Motors is also the world's fifth largest medium &
heavy commercial vehicle manufacturer.
 SEGMENTATION OF
AUTOMOBILE INDUSTRY
• Following is the segmentation that how much each sector comprises
of whole Indian Automobile Industry.
 Indian Automobile Industry Growth

• Gaining from Government stimulus packages, more demands

and lower interest rates on automobile loans the Indian
automobile industry witnessed a phenomenal growth of 26.41
per cent in the year 2009.
• According to Society of Indian Automobile Manufacturers SIAM,
the total automobile sales in the domestic market was reported
1114157 units in January 2010 , increasing by 44.9%.
• The data for car sales beats the previous best of 133000 sales
recorded in November 2009.
• The year 2009 actually turned out to be one of the best years
in the history of the automobile industry in India.

• If the trend continues the same way then Indian will soon
become the second fastest growing automobile market in the
world only after China.

• Passenger Cars grew by 24.75 percent, Utility Vehicles grew

by 21.95 percent and Multi Purpose Vehicles grew by 37.05
percent during April-January 2010.
• The overall Commercial Vehicles segment registered positive
growth at 30.39 percent during April-January 2010.
 Domestic Market Share for 2009 -
2010
DOMESTIC SALES
• Passenger Cars grew by 24.75 percent, Utility
Vehicles grew by 21.95 percent and Multi
Purpose Vehicles grew by 37.05 percent
during April-January 2010.
• The overall Commercial Vehicles segment
registered positive growth at 30.39 percent
during April-January 2010.
 GDP

• GDP was 7.4% in 2009-10.

• GDP is expected to grow at 8.5 per cent in the current fiscal
(2010-11).
• The overall inflation has been in double-digits for four months
with the June figures standing at 10.55 per cent.
• The per capita income grew by 10.5 per cent to Rs 44,345 in
2009-10 against Rs 40,141 in the year-ago period.
 SWOT OF
AUTOMOBILE INDUSTRY
STRENGTHS
• Large domestic market
• Sustainable labor cost advantage
• Government incentives for manufacturing plants
• Strong engineering skills in design.

WEAKNESSES
• High interest costs and high overheads
• Rising cost of production
OPPORTUNITIES
• Commercial vehicles
• Increase in the income level
• Cut in excise duties
• Rising rural demand

THREATS

• Rising interest rates

• Cut throat competition
• Lack of technology for Indian Companies
 FUTURE PROSPECT OF INDIAN
AUTOMOBILE SECTOR
• Automobile industry expert predicts that by
2050 every sixth car in the world will be for
Indians.
• By 2012 India will take over Japan in sales
volumes.
• The government spending on infrastructure in
roads and airports and higher GDP growth in
the future will benefit the auto sector.
• By 2050, the country is expected to top the
world in car volumes with approximately 611
million vehicles on the nation's roads.

• It is said that for every Re 1 spent, the auto

sector returns Rs. 2.24 to the Indian economy.
 INTRODUCTION TO TATA
MOTORS
• Tata Motors Limited is a multinational corporation
headquartered in Mumbai, India. Part of the Tata Group

• Established in 1945, when the company began

manufacturing locomotives, the company manufactured
its first commercial vehicle in 1954 in a collaboration with
Daimler-Benz AG, which ended in 1969.

• It is India's largest company in the automobile and

commercial vehicle sector.
INTRODUCTION CONTINUED….
• The company is the world’s fourth largest truck
manufacturer, and the world’s second largest bus
manufacturer.

• In 1998 it launched Tata Indica, India's first fully

indigenous passenger car.

• Tata ranks as the leader in every commercial vehicle

segment, and is in the top 3 makers of passenger cars.
 Mahindra & Mahindra
• Incorporated on 2nd October 1945 by two brothers Mr. J
C Mahindra & Mr. K C Mahindra.

• Converted into public limited company in 1955.

• Started with manufacturing General Utility Vehicles.

• Also started manufacturing Tractors and LCV(Light

Commercial Vehicles)
Contd…

• One amongst the top five tractor manufacturing

companies in the world

• Very indigenous regarding very little help from foreign

technology sources.

• Presence in countries of Europe, Latin America, Africa

and United States of America.
 Ashok Leyland
• For over five decades, Ashok Leyland has been
the technology leader in India's commercial
vehicle industry.
• Focuses mostly on the medium and heavy
commercial vehicle segment of the market.
• Ashok Leyland offers a wide range of products.
• Ashok Leyland is a market leader in the bus
segment.
 Cashflow
PARTICULARS
Statement
M&M
for March
TATA MOTORS
2010
ASHOK LEYLAND

Profit before tax 2,756.00 2,240.08 544.77

Net cashflow-operating
activity 2,336.49 6,586.03 1,090.17
Net cash used in investing
activity -1,345.44 -11,848.29 -783.17
Netcash used in fin.
activity -783.87 5,348.49 123.31
Net inc/dec in cash and
equivlnt 207.18 86.23 430.32

Cash and equivalent begin

of year 1,543.63 630.04 85.15

Cash and equivalent end

of year 1,750.81 716.27 515.46
 Balancesheet for March 2010
SOURCES OF FUNDS M&M TATA MOTORS ASHOK LEYLAND

Owner's fund

Equity share capital 282.95 570.60 133.03

Share application
money 8.01 - -

Preference share
capital - -
14,394.87
Reserves & surplus 7,527.60 2,190.10
LOAN FUNDS M&M TATA MOTORS ASHOK LEYLAND

Secured loans 602.45 7,742.60 788.12

Unsecured loans 2,277.70 8,883.31 1,492.33

Total 10,698.71 31,591.38 4,603.57
Uses of funds
Fixed assets
Gross block 4,866.18 18,416.81 6,018.63

Less : revaluation
reserve 11.67 - 1,333.17

Less : accumulated
depreciation 2,537.77 7,212.92 1,769.07
Net block 2,316.74 11,203.89 2,916.39
Capital work-in-
progress 1,374.31 5,232.15 619.71
Investments 6,398.02 22,336.90 326.15
 M&M TATA MOTORS ASHOK LEYLAND
Net current
assets
Current assets, loans
& advances 6,224.56 11,699.67 4,107.53
Less : current
liabilities &
provisions 5,619.04 18,881.23 3,371.37
Total net current
assets 605.52 -7,181.56 736.15

Miscellaneous
expenses not written 4.12 - 5.17
Total 10,698.71 31,591.38 4,603.57
RATIOS
EARNING RATIO
 Dividend
M&M Tata Motors Ashok Leyland

2010 - 150.00% 150.00%

2009 100.00% 60.00% 100.00%

2008 115.00% 150.00% 150.00%

2007 40.00%+75.00% 150.00% 150.00% Interim

Interim
2006 100.00% 130.00% 120.00%
 YOU
A NK
TH