Analysis

A market structure determines the number of firms and the space of each
industry in the complete market .There are various sectors which contribute to
satisfy various consumer needs and from those sectors are formed by industries
which contribute towards the upliftment of the sector and the industries are
further run by smaller firms which make an industry.
The sales of any industry evaluate its performance in the market and demand for
its consumers which in turn leads to position itself in the market. The relation
between the production and sales assess the reputation of any organisation.
Automotive industry is one Industry which has the largest share as well as a
utility amongst the consumers as well as dependency with the futuristic
manufacturing industries . The turnover of this sector is huge and varies from
industry to industry. Even though, there is not much of product differentiation
amongst each of the industries but each of the industry has its own consumer
demand and produce. The various aspects which include product differentiation
vary with the mileage and standards of production along with certain
specifications.
From the data collected at PROWESS IQ there are overall 17 industries which
B M W India Pvt. Ltd. highly contribute towards manufacturing of
Fiat India Automobiles Pvt. Engines. Since, engines are intermediary
Ltd. goods and have to be further installed into an
Ford India Pvt. Ltd. end product it is viable that the large
General Motors India Pvt. Ltd. companies of the automobile industry
Hindustan Motor Finance manufacture their own intermediary products
Corpn. Ltd.
and create a niche for the sales of spares. All
Honda Cars India Ltd.
the industries have its own sales and the data
Hyundai Motor India Ltd.
International Cars & Motors of the 4 years of 2016,2017,2018 and 2019 are
Ltd. considered for calculation. The list of
Mahindra Electric Mobility Industries are
Ltd.
Mahindra Vehicle Mfrs. Ltd.
Maruti Suzuki India Ltd. The most important part which effects the
Mercedes-Benz India Pvt. Ltd. decision making is the market structure and
Skoda Auto India Pvt. Ltd. the dynamism in the industries based on their
Skoda Auto Volkswagen India performances leads to change in their
Pvt. Ltd. positions according to time. There are various
Suzuki Motor Gujarat Pvt. Ltd.
Toyota Kirloskar Motor Pvt.
Ltd.
Volvo Auto India Pvt. Ltd.
factors and sales which place a particular industry in a place for it to be in but
mainly there are two things which are calculated while determining the rank of
the industry and their contribution towards that particular sector.
These are all largest Engine manufacturers and sellers of India and the
industrial sales which are set to increasing every year are considered and the top
4 largest sales which are (Sum of market shares) are divided with the total
industrial sales to obtain at the concentration ratio which the C4 ratio.
In the data collected by the petroleum sector the top 4 industries along with the
concentration ratio in the years December 2016,2017,2018 and 2019 are Maruti
Suzuki India Ltd., Hyundai Motor India Ltd., Toyota Kirloskar Motor Pvt Ltd.,
Ford India Pvt Ltd,.

December 2016 C4 ratio nearly boils down to 0.744 that occupies more than
60% of total industrial sales which states that The concentration ratio is closer
to one which leaves the market structure to be Oligopoly where there is less
competition among the industries these 4 industries contribute a larger share in
the complete market structure.
December 2017 C4 index of the sales of the companies of Maruti Suzuki India
Ltd., Hyundai Motor India Ltd., Toyota Kirloskar Motor Pvt Ltd., Ford India
Pvt Ltd,. remain higher and the sum as well as C4 index result to be around
0.709 which is closer leading and indicating that the market structure has still
remained to be oligopolistic. The contribution by its competitors is
insignificant.
December 2018 the top 4 companies remain the top 4 companies and the C4
ratio appears to be around 0.704 which is much more closer to one and the
range leads to dominate the other firms.

In the data collected by the automotive sector by considering all the industries
and squaring up the amount obtained after calculations there is a HHI index
which is derived and multiplying the aggregate by 10,000 there is an HHI index
for each year
The HHI for 2016 is 1961.74 which lies between zero to 10,000 which is an
aggregate figure to prove it as an oligopolistic market structure where there is a
mutual interdependence among the firms and where a set of firms tend to
dominate the industry by using strategic plans to earn profit.
In 2017 there is a slight decrease of 1831.470 where data also remains between
zero to 10,000 which again indicates that there is clear increase in power of the
consumers in that particular industry.
In December 2018 the HHI index remains to be 1792 which is slightly lower
than that of the previous years data collected indicates that there is a further
scope od entry of new firms in the market and the market is inclines towards a
competitive structure rather than a monopoly.
There has been a dilution in the HHI index and a lower amount is observed due
to a slight decrease in the C4 index whereas more number of organizations are
considered. As the C4 ration of the firms rise up there is a tendency of an
increase in the HHI index. The ranking is calculated based on other ratios as
well but all the industries are considered for the calculation of HHI with a scope
of wider transparency.
In conclusion there is a huge contribution of the automotive industry in the
economy and the fluctuations in its prices and other criteria remains the demand
to be closer to unitary elastic. There are long term relations and connections
maintained in the auto motive industry regarding sourcing of intermediaries and
assembling them into an end product. All the industries that manufacture
engines may not contribute in further process but rather lead to bulk production
and supply of the engines. The transactions are contract basis in case of
intermediaries, but in the case of the sale of spare products a separate niche in
the consumers is created and demand for it remains loyal with its necessity.