FUNDAMENT

AL ANALYSIS
OF
AUTOMOBILE
INDUSTRY
SUBMITTED BY –
Abhinav Sharma : 28/118
Himani Vohra : 28/057
Mahak Khandelwal : 28/060
Pranshu : 28/065
Introduction

The automotive industry comprises a wide range of

companies and organizations involved in the design,
development, manufacturing, marketing, and selling of
motor vehicles .
India was the fifth-largest auto market in 2020.
Two wheelers and passenger vehicles dominate the
domestic Indian auto market. Passenger car sales are
dominated by small and mid-sized cars.

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Fundamental Analysis of
Automobile Industry using
EIC Approach

Economic Analysis Industry Analysis Company Analysis Conclusion

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Economic Analysis
Global Economy
• Global Trades - It produces 60 million cars and
trucks per year
• GDP and Growth rate – Automotive sector
contributed 7.5 percent of India's total GDP. The
growth rate of automobiles industry across India was
estimated to be 4.9 percent from fiscal year 2015 to
2020
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Capital Expenditure
• capital spending in the automotive industry is around
6 percent of revenue.
• India’s automotive industry has expanded at an
impressive 19 percent CAGR.
Associated Industries /Companies
• Original Equipment Manufacturers
• Electronic Car Component Manufacturers
• Dealerships and Rental Agencies
 Central Government Policies

• Fiscal Policy

• Voluntary Vehicle Scrappage Policy.

• Change in Basic Customs Duty Rates

• Acquisition of Over 20,000 Buses through Public Private

Partnership

• AMRG Take

Conclusion - Missed Areas of the Budget, 2021

PESTLE ANALYSIS OF AUTOMOBILES INDUSTRY

Political Factors
• Tax Policy Social Factors
• Trade Restrictions • Career Attitudes
• Safety Regulations • Popularity of Driving
• Emission Policies

Technological Factors
Economic Factors
• Interest Rates • Automation: Self driving cars
• Growing Disposable Income • R&D Activity: Improved safety
• Inflation owing Disposable Income − Inflation
• Change in Technology

6 Annual Review 10/17/21

 Environmental factors Legal Factors
• Carbon Emissions: To control this E-vehicles are • Industry Regulations
being promoted
• Copyright Issues
• Licenses & Permit

Conclusion: automobile industry pestle analysis

7 Annual Review 10/17/21

PORTERS ANALYSIS ON MARUTI
SUZUK

Competitive Rivalry in the Threat of Substitutes The Threat of New Entrants

Market

8 Annual Review 10/17/21

Bargaining Power of Buyers Bargaining Power of Supplier

9 Annual Review 10/17/21

 Maruti Suzuki Financial Highlights

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MSI Key
Financial
Ratios

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Maruti Suzuki Overview

• Retail sales have been recovering with the easing of lockdowns in both urban and rural markets.

• MSI has expanded subscription services to more cities (currently at 19) in collaboration with Orix, ALD Automotive
and Myles.

• MSI is working with Toyota for joint-testing of vehicles.

• Suzuki’s lithium battery plant Phase 1 in Gujarat has started trial production.

• The company's focus on cost-cutting initiatives is continuing.

• In the future, it will concentrate on new powertrain technologies such as ethanol, hybrid, and electric.

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Thank you
Thanks to your commitment and patient listening. Have a
great day.