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INTRODUCTION











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On the canvas of the Indian economy, automotive industry occupies a
prominent place. Due to its deep forward and backward linkages with
several key segments of the economy, automotive industry has a strong
multiplier effect and is capable of being the driver of economic growth. A
sound transportation system plays a pivotal role in the country's rapid
economic and industrial development. The well-developed Indian
automotive industry ably fulfils this catalytic role by producing a wide
variety of vehicles: passenger cars, light, medium and heavy commercial
vehicles, multi-utility vehicles such as jeeps, scooters, motorcycles,
mopeds, three wheelers, tractors etc.
Automotive Industry comprises of automobile and auto component sectors
and is one of the key drivers of the national economy as it provides large-
scale employment, having a strong multiplier effect. Being one of the
largest industries in India, this industry has been witnessing impressive
growth during the last two decades. It has been able to restructure itself,
absorb newer technology, align itself to the global developments and
realize its potential. This has significantly increased automotive industry's
contribution to overall industrial growth in the country.

Growth Drivers of Indian Automobile Market

Rising industrial and agricultural output.
Rising per capita income.
Favourable demographic distribution with rising working population
and middle class Urbanization.
Increasing disposable incomes in rural agri-sector.
Availability of a variety of vehicle models meeting diverse needs and
preferences.
Greater affordability of vehicles.
Easy finance schemes.
Favourable government policies.
Robust production.




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India's Position in World's Production
Well-developed, globally competitive auto ancillary industry.
Established automobile testing and R&D centers.
Among one of the lowest cost producers of steel in the world.
Worlds second largest manufacturer of two wheelers.
Fifth largest manufacturer of commercial vehicles.
Manufactures largest number of tractors in the world.
Ninth largest car manufacturer in world.

Automobile Industry

One of the major industrial sectors in India is the automobile sector.
Subsequent to the liberalization, the automobile sector has been aptly
described as the sunrise sector of the Indian economy as this sector has
witnessed tremendous growth.
Automobile Industry was delicensed in July 1991 with the announcement
of the New Industrial Policy. The passenger car industry was, however,
delicensed in 1993. No industrial license is required for setting up of any
unit for manufacture of automobiles except in some special cases. The
norms for Foreign Investment and import of technology have also been
progressively liberalized over the years for manufacture of vehicles
including passenger cars in order to make this sector globally competitive.
At present 100% Foreign Direct Investment (FDI) is permissible under
automatic route in this sector including passenger car segment. The
import of technology/technological up gradation on the royalty payment of
5% without any duration limit and lump sum payment of US$ 2 million is
also allowed under automatic route in this sector. With the gradual
liberalization of the automobile sector since 1991, the number of
manufacturing facilities in India has grown progressively.

Production

The cumulative production data for April-December 2012 shows
production growth of only 2.16 percent over the same period last year.
The industry produced 1,697,625 vehicles in December 2012 as against
1,677,588 in December 2011, with marginal growth at 1.19 percent.

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Domestic Sales

The overall growth in domestic sales during April-December 2012 was
4.57 percent over the same period last year. However, in December 2012,
overall sales grew only marginally by 2.77 percent over December 2011.

Passenger Vehicles segment grew at 8.37 percent during April-December
2012 over same period last year. Passenger Cars declined by -0.33
percent, Utility Vehicles grew by 59.10 percent and Vans grew by 3.71
percent during April-December 2012 as compared to the same period last
year. However, in December 2012 passenger car sales fell by (-12.51)
percent over December 2011. Total passenger vehicles sales also declined
by (-1.13) percent in December 2012 over same month last year.

The overall Commercial Vehicles segment registered marginal growth of
0.74 percent in April-December 2012 as compared to the same period last
year. While Medium & Heavy Commercial Vehicles (M&HCVs) registered
decline at (-19.13) percent, Light Commercial Vehicles grew at 15.61
percent. In December 2012, M&HCVs sales declined by (-38.34) percent
over December 2011.
Three Wheelers sales grew by 4.96 percent in April-December 2012.
Passenger Carriers grew by 8.96 percent during April-December 2012 and
Goods Carriers registered de-growth at (-10.29) percent during this
period.


Two Wheelers registered a growth of only 4.09 percent during April-
December 2012. Scooters, mopeds and motorcycles grew by 18.44
percent, 1.80 percent and 0.77 percent respectively over same period last
year. However, in December 2012 Scooters and Motorcycles grew by 6.40
percent and 4.83 percent respectively, while mopeds declined by (-6.88)
percent over the same period last year.

Exports

During April-December 2012, overall automobile exports registered de-
growth of (-2.92) percent compared to the same period last year.
Passenger Vehicles grew by 10.52 percent, while the other segments like
Commercial Vehicles, Three Wheelers and Two Wheelers fell by -4.76
percent, -20.88 percent and -2.79 percent respectively. In December
2012 Passenger Vehicles, Two & Three wheelers segment grew by 31.59
percent 9.36 percent and 4.63 percent respectively, while Commercial
Vehicles declined by -25.79 percent.

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Auto Components Industry

Surge in automobile industry since the nineties has led to robust growth
of the auto component sector in the country. In tandem with the industry
trends, the Indian component sector has shown great advances in recent
years in terms of growth, spread, absorption of new technologies and
flexibility. Indian auto component industry has seen major growth with
the arrival of world vehicle manufacturers from Japan, Korea, US and
Europe. Today, India is emerging as one of the key auto components
center in Asia and is expected to play a significant role in the global
automotive supply chain in the near future. T
he auto component industry is also expected to drive the growth of the
engineering sector in view of its strong downstream and upstream
linkages with many other segments of the engineering sector like raw
materials, capital goods, intermediate products etc. Auto component
industry supports industries like automobiles, machine tools, steel,
aluminum, rubber, plastics, electrical, electronics, forgings and machining.
India has also emerged as an outsourcing hub for auto parts for
international companies such as Ford, General Motors, Daimler Chrysler,
Fiat, Volkswagon, and Toyota.

Vision

To establish a globally competitive Automotive Industry in India and to
double its contribution to the economy by 2030.

Objectives

This policy aims to promote integrated, phased, enduring and self-
sustained growth of the Indian automotive industry. The objectives are
to:-
Exalt the sector as a lever of industrial growth and employment and
to achieve a high degree of value addition in the country.

Promote a globally competitive automotive industry and emerge as
a global source for auto components.


Establish an international hub for manufacturing small, affordable
passenger cars and a key center for manufacturing Tractors and
Two-wheelers in the world.
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Ensure a balanced transition to open trade at a minimal risk to the
Indian economy and local industry.

Conduce incessant modernization of the industry and facilitate
indigenous design, research and development.

Steer India's software industry into automotive technology.

Assist development of vehicles propelled by alternate energy
sources.


Development of domestic safety and environmental standards at
par with international standards.

Automotive Mission Plan 2016

To accelerate and sustain growth in the automotive sector and to steer,
co-ordinate and synergise the efforts of all stakeholders, Automotive
Mission Plan (AMP) 2006-2016 has been prepared in order to make India
a global automotive hub.
The Automotive Mission Plan (AMP) 2006-2016,aims at doubling the
contribution of automotive sector in GDP by taking the turnover to USD
145 billion and providing additional employment to 25 million people by
2016 with special emphasis on export of small cars ,MUVs, two and three
wheelers and auto components.

Foreign Direct Investment

Automatic approval for foreign equity investment up to 100 per cent
of manufacture of automobiles and component is permitted.
The automobile industry is delicensed.
Import of components is freely allowed.







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Major Automotive Players in India

Companies Segments
Ashok Leyland LCVs, M&HCVs, buses
Asian Motor Works M & HCVs
Bajaj Auto Two and three wheelers
BMW India Cars and MUVs
Daimler Chrysler India Cars
Eicher Motors LCVs, M & HCVs
Fiat India Cars
Force Motors MUVs and LCVs
Ford India Cars and MUVs
General Motors India Cars & MUVs
Hero Honda Motors Two wheelers
Hindustan Motors Cars, MUVs and LCVs
Honda Two wheelers, cars and MUVs
Hyundai Motors Cars and MUVs
Kinetic Motor Two wheelers
Mahindra & Mahindra Three wheelers, cars, MUVs, LCVs
Maruti Suzuki Cars, MUVs, MPVs
Piaggio Three wheelers, LCVs
Royal Enfield Motors Two wheelers
Skoda Auto India Cars
Suzuki Motorcycles Two wheelers
Swaraj Mazda Ltd LCVs, M & HCVSs, buses
Tata Motors Cars MUVs, LCVs, M&HCVs, buses
Toyota Kirloskar Cars, MUVs
TVS Motor Co Two wheelers
Volvo India M & HCVs, buses
Volkswagen India Cars
Yamaha Motor India Two wheelers




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QUESTIONNAIRE


Q.1 Do you like to have a car?
A.yes B.no










0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
YES NO
Column1 90% 10%
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Q.2 In how many years would you be able to purchase a luxury
car after PGDM?

A.2-5 years B.5-8 years C.8-11 years












50%
45%
5%
2-5 YEARS 5-8 YEARS 8-11 YEARS
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Q.3 Which segment of a car do you like?

A. luxury car B. non-luxury car C. sports car















0%
20%
40%
60%
80%
100%
LUXURY CAR
NON-LUXURY CAR
SPORTS CAR
60%
20%
20%
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Q.4 Which type of car do you like?

A. petrol type B. diesel type c. electric type















PETROL TYPE
35% DIESEL TYPE
45%
ELECTRIC TYPE
20%
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Q.5 Which car do you prefer?

A. Audi B.BMW C. Mahindra SUV















0%
10%
20%
30%
40%
50%
AUDI
BMW
MAHINDRA SUV
50%
15%
35%
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Q.6 What should be the reason of purchasing the car?

A. family B. convenience C. status symbol D. others














12%
15%
15%
58%
FAMILY CONVINEINCE STATUS SYMBOL OTHERS
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Q.7 what features do you wish to like to have in a car?

A. mileage B. speed C. others















0%
10%
20%
30%
40%
50%
MILAGE
SPEED
OTHERS
MILAGE SPEED OTHERS
Series 1 20% 50% 30%
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Q.8 How much your pocket allows to purchasing a car?

A. below 20lakh B. above 20lakh















0%
10%
20%
30%
40%
50%
60%
BELOW 20 LAKH
ABOVE 20 LAKH
45%
55%
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CONCLUSION

Today, in present era everyone dreams to have a car for his/her status,
convenience etc. Car can be luxury or non-luxury as it satisfied the
individual need and desire.
From above data we conclude that-
90% of the persons likes to have a car in his life.
60% people wants to buy a car within 5-8 years.
45% of the persons wants diesel car.
55% persons having the budget of Rs 20 lakhs.
50% respondents prefer to purchase Audi luxury car.