Presentation on AUTOMOBILE INDUSTRY

By

Sunil

Automobile industry
Tenth largest in the world with an annual production of approximately 2 million units

AUTOMOBILE

2 WHEELER

3 WHEELER

PASSENGER VEHICLE

COMMERCIAL VEHICLE

Automotive Companies in India

Major Indian Companies Major Multi-national companies

Top Automobile Players in India

Maruti Suzuki India Limited Hyundai Motor India Limited Tata Motors Mahindra & Mahindra Limited Hero Moto Corp Bajaj Auto General Motors India Private Limited Honda Siel Cars India Limited Toyota Kirloskar Motor Private Limited Hindustan Motors

About Automobile Industry

In recent years the automobile industry in India has

grown by leaps and bounds.

In India it is one of the largest in the world and one of the fastest growing globally.

The Indian Automobile Industry is manufacturing over 11 million vehicles and exporting about 1.5 million every year.

About 91% of the vehicles sold are used by households

and only about 9% for commercial purposes.

Two wheelers with a market share of over 76.49%, passenger cars with a market share of about 15.96% &Commercial vehicles and three wheelers share about 7.55% of the market between them.

In 2009, India emerged as the fourth largest exporter of automobiles.

HERO MOTO CORP.

Hero Moto Corp

Parent Company

Hero Group

Category

Motorcycles, Scooters

Sector Tagline/ Slogan

Two-Wheelers Hum mei hai Hero

Brief Information About The Company

Hero Honda is a public automobile company. It was founded on Jan 1984 in Gurgaon, Haryana. The founder of the company - Brijmohanlal Munjal. Head quarter Delhi

Contd.

It was joint venture between Hero cycles of India and Honda of Japan In 2010, Honda decided to move out of the joint venture, Hero group bought the shares held by Honda

In, August 2011 the company was renamed as HERO MOTO CORP. With a new corporate identity.

Founders of Hero moto corp

Mr. Brijmohan Lall Munjal

Chairman

Mr. Pawan Munjal

Managing Director & CEO

Vision
The vision of a mobile and an empowered India,
powered by its bikes. Hero MotoCorp Ltd., Companys new identity, reflects its commitment towards providing world class mobility solutions with renewed focus on expanding Companys footprint in

the global arena.

Mission
Hero MotoCorps mission is to become a global enterprise fulfilling its customers needs and aspirations for mobility, setting benchmarks in technology, styling and quality so that it converts its customers into its brand advocates. The Company will provide an engaging environment for its people to perform to their true potential. It will continue its focus on value creation and enduring relationships with its partners.

Technology

In 1980s the company pioneered the introduction

of fuel efficient ,environment friendly four stroke

motor cycles in the country.

It became the first company to launch the fuel

injection technology in the Indian motorcycles

Strength

Ability to understand customers needs and wants. Effective advertising capability. Its after sales activity. Technology. Maintenance cost is low.

Weakness

R&D is not close to the hero manufacturing

plant.

Hero recently separated from the joint venture with Honda.

Brand name of Hero itself has no influence in the automobile industry.

Opportunity

Global expansion.
Expansion of target market ( include women).

Can export worldwide.

Now they can follow any distribution channel

and select any vendor for its components.

Threats

After separation Honda becomes the competitor.

Bajaj motor is already a strong competitor.

Petrol price increases.

Pollution norms.

Aluminum & steel price increases.

Political

In 2002, the Indian government formulated an auto policy that aimed at promoting integrated, phased, enduring and selfsustained growth of the Indian automotive industry Allows automatic approval for foreign equity investment up to 100% in the automotive sector and does not lay down any minimum investment criteria. Formulation of an appropriate auto fuel policy to ensure availability of adequate amount of appropriate fuel to meet emission norms Confirms the governments intention on harmonizing the regulatory standards with the rest of the world

Economic

The level of inflation Employment level per capita is right. Economic pressures on the industry are causing automobile companies to reorganize the traditional sales process. Weighted tax deduction of up to 150% for in-house research and R & D activities. Govt. has granted concessions, such as reduced interest rates for export financing. The Indian economy has grown at 8.5% per annum.

Social
Since changed lifestyle of people, leads to increased purchase of automobiles, so automobile sector have a large customer base to serve. The average family size is 4, which makes it favorable to buy a four wheeler. Upward migration of household income levels. 85% of cars are financed in India.

Technological

More and more emphasis is being laid on R & D activities carried out by companies in India. Weighted tax deduction of up to 150% for in-house research and R & D activities. The Government of India is promoting National Automotive Testing and R&D Infrastructure Project (NATRIP) to support the growth of the auto industry in India Technological solutions helps in integrating the supply chain, hence reduce losses and increase profitability.