THE INDIAN AUTOMOBILE INDUSTRY

PRESENTED BY-
AABIR AHMAD
ROHIT GUPTA
GAGANDEEP SINGH
Indian Automobile Industry

India is: 2nd largest two wheeler market in the world

4th largest commercial vehicle market in the world
11th largest passenger car in the world and is expected to be the
7th largest market by 2011.
Automobile Domestic Sales Trends

CATEGO YEAR YEAR YEAR YEAR YEAR CAGR(%)

RY 2005-06 2006-07 2007-08 2008-09 2009-10
Passenger 11.4 lakh 13.7 lakh 15.4 lakh 15.5 lakh 19.4 lakh 17.05%
vehicles
Commerci 3.5 lakh 4.6 lakh 4.9 lakh 3.8 lakh 5.3 lakh 15.13%
al
Vehicles
Tree- 3.5 lakh 4.0 lakh 3.6 lakh 3.4 lakh 4.4 lakh 12.2%
Wheelers
Two- 79.5 lakh 78.7 lakh 72.4 lakh 74.3 lakh 93.7 lakh 11.78%
Wheelers
Grand 89.0 lakh 1.01 crore 96.5 lakh 97.2 lakh 1.22 crore 13.82%
Total
AGR(%) 12.77% 13.67% -4.64% 0.72% 26.41%

Source: SIAM
NUMBER OF VEHICLES
Future Projection of Sales
Year 2010-11 2011-12 2012-13

Passenger vehicle 22.8 lakh 26.7 lakh 31.2 lakh

Commercial vehicle 6.1 lakh 7.04 lakh 8.1 lakh

Three Wheeler 4.9 lakh 5.5 lakh 6.22 lakh

Two Wheeler 10.4 lakh 11.6 lakh 13.06 lakh

Grand Total 1.39 crore 1.59 crore 1.81 crore

 NOTE:
Projections are based on the CAGR of previous year
Main Players

 Passenger Cars  Commercial Vehicle

 Maruti Udyog Ltd.  TATA Motors
 Hyundai Motors.  Mahindra & Mahindra
 TATA Motors.  Ashok Leyland
 Honda Seil.

 Two-Wheeler Segment
 Hero Honda
 Bajaj Autos
 TVS motors
 Yamaha
Market Share of Passengers Vehicles

2006 2007 2008 2009 2010

Maruti 50.83% 52.4% 55% 53.13% 47.68%
Suzuki

Hyundai 18.2% 17% 16.91 20.6% 18.88%

TATA Motors 16.7% 14% 13.1% 12.4%
-------

Honda 3.98% 4.68% 4.7% 3.17% -------

 Analysis:
 Maruti Suzuki market share has been declining due do the incoming of
many new cars in the A2 segment.
 Honda has stagnant market share because of its focus market strategy.
 Tata is surfacing decline in its market share because of quality of its
product.
MARUTI UDYOG Ltd.

Product MIX
 A1 800
 A2 Alto, Zen, Wagon R, Swift, A-Star, Ritz
 A3 Dzire, SX4
 SUZ Vitara, Gypsy.
 B1 Omni, Ecco.

Product Strategy
 Market Leader in the A2 category.
 Strong Presence in the A3 segment with Recent launches like Dzire.
 SX4 has not been able to dislodge the market leader in the A3
segment i.e. because of its competitors strong position in this
segment .
 Efficient after sales services.
TATA Motors

PRODUCT MIX
 A1 TATA Nano
 A2 TATA Indica, Indigo CS
 A3 Midsize- TATA Manza
 SUV TATA Safari
 MUV TATA Sumo

PRODUCT STRETEGY
 Strong Market Position with launch of NANO
 Successful in creating and maintaining a professional Brand.
 Tata Motors provide many innovative features to suit the target
customers.
HYUNDAI MOTORS

PRODUCT MIX
 A2 Santro Zing, i-10, Getz prime
 A3 Midsize- Accent, Verna, i-20
 A4 Executive Elentra
 A5 Premium- Sonata Embera
 SUV Tucson

PRODUCT STRATEGY
 Working in towards launching of a car smaller than Santro.
 Introducing new products/variants with regular interval of time.
 Covering almost every segment of the market.
Honda Motors

Product Mix
 A3- City
 A4- Civic
 A5- Accord
 SUV- CR-v

Product Strategy
 Continuously involved in modifications of its variants.
 Caters to the need of High income group.
 Offers new cars & products according to the changing needs of its customers,
due to its strong R&D.
 Not to offer discount to push sales as such a strategy would lower the image of
its product
 Focus strategy has been adopted by Honda .
Market Share of Motorcycles
Year 2008-09 2009-2010

Hero Honda 54.8% 60.20%

Bajaj 28.9% 22.42%

TVS 8.77% 7.9%

Yamaha 1.95% 2.80%

 Analysis
 Hero Honda’s strong presence in the rural market makes it leader in
this segment.
Hero Honda Motorcycles
PRODUCT MIX
 CD-Dawn 97.22 cc
 Pleasure 102 cc  Achiever 150 cc
 CD-Deluxe 97.22 cc  Hunk 150 cc
 Splendor NXG 97.2 cc  CBZ Xtreme 150 cc
 Splendor Plus 100 cc
 Karizma 225 cc
 Passion Plus 100 cc
 Splendor Super 125 cc
 Glamour 124.7 cc
 Glamour FI 124.8cc

PRODUCT STRATEGY

 Continuous improvement in technology.

 Focus on R&D to launch fuel efficient
 Introduced new products for the same
bike.
market i.e. CBZ, Hunk.  Strong presence in the rural market.
BAJAJ Motorcycles

PRODUCT MIX
 Platina 99.27 cc
 XCD 125 cc
 Discover DTS-I 135 cc
 Pulsar 150 cc DTS-i
 Pulsar 180 cc DTS-i
 Pulsar 200cc DTS-i
 Pulsar 220 cc DTS-Fi
 Avenger 180 cc DTS-i

PRODUCT STRATEGY
 Targeting the youth segment
 Designed & styled as mean masculine robust machine
 Sporty looks
 Supreme performance
 Riding Comfort
TVS Motorcycles

Product Mix
 Star Sport 100cc
 Star city 109.7cc
 Apache RTR 160cc,180cc

Product Strategy
 Offering the most innovative package of product access and finance.
 Faster introduction of upgrades.
 Accelerate development and deployment of energy efficient technologies
 First automobile maker to have commercially produced the electric
vehicle.
 Coming up with high breed two wheelers.
Yamaha Motorcycles

Product Mix Product Strategy

 Crux105.6 cc  Trying to reposition
 YBR 110cc themselves with the launches
 ALBA Spoke106 cc like FZ & R15.
 G5 Spoke 106 cc  Planning to launch 1000cc
YZFR1 and 1670cc MT01
 ALBA Alloy 106 cc
 Shifted its focus back to the
 G5 Alloy 106 cc
commuters segment by
 Gladiator DX 123.7 cc
recent launch of SZ 150.
 Gladiator JA 123.7 cc  Targeting rural market with
 FZ-16 Alloy 153 cc bikes like YBR110 & Crux
 YZF-R15 Alloy 149.8 cc
Market Shares Of Scooters
Year 2005 2006 2007 2008 2009

Bajaj 13.7% 11.7% 2.06% 1.98% 0.8%

Hero Honda 1.65% 9.77% 9.75% 13.4%

----------

Honda 48.8% 51% 56% 58.86% 57.1%

NOTE:
Bajaj & Hero Honda have low market share because Bajaj has moved out of the
market and Hero Honda has only one product in this segment i.e. Pleasure.
Honda Scooters

Product Mix
 Dio 102 cc
 Activa 102 cc
 Eterno 147.7 cc
 Aviator Drum 102 cc
 Activa109 cc
 Aviator Disc 102cc
Product Strategy

 Honda strategy to launch multiple product offering at the same price point
to give customers more to chose from but remain within the company.
 Adopted Product development strategy launching new product for the
same market.
 Honda Activa has become the market leader because of high sales in Tier
2&3 towns.
Market Share of Commercial Vehicles

2006-2007 2007-2008 2008-2009 2009-2010

TATA MOTORS 60.53% 63.26% 63.72% 62.71%

MAHINDRA 22.53% 14.02% 17.90% 15.36%

&MAHINDRA

Ashok Leyland 12.35% 15.49% 9.83% 11.63%

 Analysis:
 TATA has huge product line in commercial vehicle segment as a result of
which it holds a huge market share in this segment.

NOTE: DATA has been collected from official websites of Automobile

companies, SIAM , CIMIE and AICMA
TATA Commercial Vehicles

Product Mix
HCV- Prima, ConsTruck
LCV- TL 4X4, Xenon LT
Buses- Globus, Starbus, Marco Polo
SCV- TATA Ace, TATA Magic.

Product Strategy
 TATA has been ruling the small commercial vehicle segment .
 Positioned TATA Ace in the big between 3- wheelers and 6- wheel
light trucks.
 Ace was targeted towards small entrepreneur located in small towns.
Mahindra & Mahindra

Product Mix

 Trucks- MN 49, MN 40
 Tractors- Swraj : 735 XM
843 XM
744 & 855 FE

Product Strategy

 Created a category by launching India’s first Compact Truck

 Mahindra Gio- Entry level 4 wheeler Cargo carrier offers unmatched mileage of 27kmph
at an unbeatable price of Rs. 1.65 lakh.
 Wide range of tractors from 15 HP to 85 HP.
Ashok Leyland

Product Mix
 Trucks
 Buses
 Defense & Special Vehicles
 Engines

Product Strategy
 Offers “Total Maintenance Solutions” through maintenance contracts
for its products, relieving the customers of all maintenance worries.
 The company is expected to launch a slew of new products in the
markets which is expected to propel the demand for its products.
 Set up its NBFC for offering finance options.
 Signed an agreement with Nissan to form partnership LCV.