Macroenvironmental Factors Affecting Automobile Industry - Presentation Transcript

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Macroenvironmental Factors Affecting Automobile Industry - Presentation Transcript 1. MACRO-ENVIRONMENTAL FACTORS AFFECTING AUTOMOBILE INDUSTRY 2. Introduction

* Tenth largest in the world * Expected to overtake China * Huge attraction for foreign car manufacturers * Dominated by domestic companies * Contributes 3.1% to the nominal GDP 3. Interesting Figures
India’s motorcycle market is the second largest in the world
Largest three-wheeler market
Second largest tractor manufacturer
Fifth largest commercial vehicle manufacturer
Largest two-wheeler manufacturer 4. Evolution of Automobile Industry
Initial Years
Manufacturing was licensed

* High Customs duty on import …show more content…

Venu Srinivasan, chairman and managing director, TVS Motors- “In 2006-07, sales received a boost and saw a growth surge of 19-20% due to unlimited finance availability. At that time, companies chose to finance customers without any questions.”
Overall this has lead to increased costs on the input side and a fall in customer purchasing power due unavailability of unlimited finance 25. Net Substantial Effects
Net effects- passenger car makers have been operating below capacity for a while. Recently, Maruti closed one of its plants for two days. Other volume players like Tata Motors and Mahindra & Mahindra (M&M) have been adjusting production to tide over the lean season.
Honda Motorcycle and Scooter India have put off their plans for a second plan
Ford Motor India had recently announced a fresh investment of Rs. 2100 Crore, however now that plan is only being carried forward in a tentative manner.
Tata Motors’ profit figures for the most recent quarter (second quarter of FY09) was the worst ever for the company in the last six years. 26. How To Approach the Issue
Look towards frontiers out of India- Ashok Leyland recently said quite emphatically- “Leaving aside the large demand markets, which also have large manufacturers to support themselves, there are still 45% of developed markets left for our company to explore. This is especially when there is an estimated

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