Egbt automobiles final
- 1. AUTOMOBILES INDUSTRY PRESENTERS: ESHA GUPTA GAURAV KUMAR RISHNITA BHANDARI
- 2. The automobiles industry is one of the core industries in India. A well developed transportation system plays a key role in the development of an economy, and India is no exception to it. Automobile is one of the largest industries in the global market. Automobile sector is leader in product and process technologies in the manufacturing sector. It has been recognized as one of the drivers of economic growth. In the past few years, the production and management systems in the India automobiles industry have been revolutionaries. The fast growth of automobiles industry is due to the convergence of a lot of positive factors. These factors have resulted in the introduction of new models. Introduction
- 3. • The history of automobile industry is over four centuries old. • Invention in Automobile industry was first done in 1769 by a French Engineer named Nicolasan J. Cugnot. He invented the first ever self powered, three wheeled, military tractor that made the use of a steam engine. The range then was very limited. • These automobiles were made very heavy & large and also took ample amount of starting time. • With the invention of a steam engine driven automobile came an era of electric carriage. • The first theoretical plans for a motor vehicle were drawn by Leonardo da Vinci and Isaac Newton. • History of Automobile Industry reveals that US dominated the automobile markets around the globe. • The US Automobile Industry was flooded with foreign automobile companies, especially Japan, Germany within a very short period. • Automobiles in India goes back to 1851. Simpson & Co. built the first steam car and a steam bus in India. History of Automobiles
- 4. • The first car ran on India’s road in 1898 in Bombay. • In 1947, Bajaj started assembly of Auto in its scheme of replacing cycle rickshaw by auto. • After Independence, the Government in India and the private sector launched efforts to create and automotive component manufacturing industry to supply to the automobile industry. • Due to nationalization and License Raj, the growth was relatively slow in the 1950s and 1960s which hampered the Indian Private sector. • The growth in later years was majorly driven by tractors, commercial vehicles and scooters. Cars were still a luxury. • Until 1982, only three manufacturers had swayed the sector, Hindustan Motors, Premier Automobiles and Standard Motors.
- 6. • Cars/SUVs: Suzuki, Honda, Toyota, Mitsubishi, GM, Ford, Daimler-Chrysler, Skoda, Fiat, Hyundai, TATA, M&M • Two – wheelers: TVS, Hero Honda, Bajaj, Yamaha, Kinetic, LML • CVs TATA, Ashok, Leyland, Tatra, Eicher-Mitsubishi, Swaraj-Mazda, M&M, Volvo • Tractors Escorts, M&M, L&T, Punjab Tractors, New Holland, Renault Classification of Automobiles
- 7. • Today, The Automobile industry in India has become one of the largest manufacturing sectors all over the World. • The automotive Industry in India is now working in terms of the dynamics of an open market. Number of Multinational Companies are now operating in India.They are operating either as wholly owned subsidiaries of in collaboration with their Indian partners. • In financial terms, it is in terms of revenues, profits, taxes and employment. In quality terms it is in terms of quality processes, efficiency improvements, and product innovation. • Established automobile testing and R&D centers are set up in various parts of the country. Present Scenario Of Indian Automobile Industry
- 8. • Starting from Tata’s small car Tata Nano’s successful entry in India Automobile Sector, Indian market has steamed up the opportunities of growth available in alternative segments like electric cars, natural gas run vehicles etc. • Auto Companies achieving high productivity through best practices: i. T Q M ii. T P M iii. Six Sigma iv. Lean Manufaturing
- 9. • India and the Stats 5th Largest Commercial Vehicle Manufacturer in the World 4th Largest Car Market in Asia - crossed the 1 million mark # 1 Global Motorcycle Manufacturer is in India Largest Two-Wheeler Manufacturer in the World 2nd Largest Tractor Manufacturer in the World
- 10. Passenger Car Market 2006-07 Total Units – 975,703 2016-17 Total Units - 1,756,265 Mini 19% Compact 56% Mid-size 20% Executive 2% Premium & Luxury 3% Mini 19% Compact 56% Mid-size 20% Executive 2% Premium & Luxury 3%
- 11. Present estimated size 5.4 mn units per year Two Wheeler Market
- 12. FDI INFLOW The Government of India allows 100%FDI in Automobile sector through automated route. Some of the highlights of Union budget 2017-2018: • Reduction in corporate tax rate for MSMEs • Development of roads • Allocation towards funding of the electric and hybrid vehicle programme through the FAME scheme. FISCAL INCENTIVES • To promote export of manufactured green technology products, the export obligation has been reduced under Export Promotion Council Goods Scheme. • Excise duty on chassis of Ambulance reduced from 24% to 12.5% GOVERNMENT INITIATIVES AND INVESTMENTS
- 13. • INNOVATION AND R&D AUTOMOTIVE MISSION PLAN 2016-2026: • Indian automotive industry is one of the prime mover of Manufacturing sector and Make In India initiative • Specific interventions are developed to sustain and improve manufacturing competitiveness and to address the challenges of environment and safety. NATIONALAUTOMOTIVE TESTING AND R&D INFRASTRUCTURE PROJECT (NATRIP): • The main focus is providing low-cost manufacturing and product development solution. FASTER ADOPTION AND MANUFACTURING OF HYBRID AND ELECTRIC VEHICLES (FAME): • The objective is to incentivise, develop, manufacture, promote hybrid/electric vehicle through domestic technology • It aims to achieve a cumulative fuel saving
- 14. THE NATIONAL ELECTRIC MOBILITY MISSION PLAN 2020 (NEMMP): • The objective of this body is to encourage reliable, affordable and efficient xEV (hybrid and electric vehicles) • Promotion and development of indigenous manufacturing capabilities, required infrastructure, consumer awareness and technology PILOT ELECTRIC VEHICLE PROJECT: • The Department of Heavy Industry is launching pilot project on electric vehicles under NEMMP 2020 scheme with dual purpose of adopting the benefits of clear, greener modes of transportation and also to explore the viable operational modalities. EXAMPLE: RENAULT KWID Manufactured with over 98% localisation and epitomises the 'Make in India' ideology.
- 15. Future of the Indian automobile industry
- 17. 5670 3693 2598 2566 2434 1624 617 608 342 341 323 299 245 203 171 160 151 0 1000 2000 3000 4000 5000 6000 WESTERN EUROPE AND INDIA 2016
- 18. Factors determining growth of the industry Fuel economy and demand for greater fuel efficiency Sturdy legal and banking infrastructure Increased affordability, heightened demand in the small car segment and the surging income of the Indian population India is the third largest investor base in the world The Government technology modernization fund is concentrating on establishing India as an auto-manufacturing hub. Availability of inexpensive skilled workers Market segmentation and product innovation
- 19. BMW plans to manufacture a local version of below-500 CC motorcycle, the G310R, in TVS Motor’s Hosur plant in Tamil Nadu General Motors plans to invest US$ 1 billion in India by 2020, mainly to increase the capacity at the Talegaon plant in Maharashtra from 130,000 units to 220,000 by 2025. Ford Motor Co. plans to invest Rs 1,300 crore (US$ 195 million) to build a global technology and business center in Chennai Electric car maker Tesla Inc. is likely to introduce its products in India South Korea’s Kia Motors Corp is close to finalizing a site for its first factory in India Major investments and developments of Indian automobile industry
- 20. STRENGTHS: • Large domestic market • Sustainable labor cost advantage • Government incentives • Strong engineering skills in design WEAKNESSES: • Low labor productivity • High cost of production due to push up in various forms of taxes • Low investment in R&D • Poor infrastructure OPPORTUNTIES: • Cut in excise duties • Rising rural demand THREAT: • Cut throat competition • Rising input costs SWOT Analysis
- 21. CONCLUSION The Automobile industry has potential for facilitating faster and easier mobility of people and goods across regions, countries. Thus wheel of development is powered by this industry and for its barrier free development, country needs to come together and develop better understanding of challenges of newer technologies, alternative fuels and affordability at large. India has phenomenonal growth in last decade. A market trend is growing at faster rate so Indian automobile market should grab the opportunities through diversification of export basket in untouched foreign counties. Thus strict quality standards, services, and use of latest technology can provide an edge over competitors across the globe. Conclusion
- 22. Thank You.