Indian Automobile

Indian Automobile Industry
Presented by :-
Jigen Merchant 10
Kailash Kamath 11
Sandeep Patil 25
Shrey Rathi 28
Vaibhav Chopra 31
Vikas Jain 33
Indian Automobile
industry
• Ninth largest in the world.
• Currently growing at the pace of around
18% p.a.
• India is being recongized as potential
emerging auto market.
• Foreign investment are adding their
investment in India.
• Fourth largest car market in Aisa.
Indian Automobile
industry
Turnover of Automobile Manufacturers(In USD Million)
Year In USD Million
2002-03 14,880
2003-04 16,544
2004-05 20,896
2005-06 27,011
2006-07 34,285
2007-08 41,466
2008-09 54,078
2009-10 61,834
Indian Automobile
industry
Domestic Market Share for 2009-10
Passenger Vehicles 15.96%
Commercial Vehicles 3.95%
Three Wheelers 3.6%
Two Wheelers 76.49%

TATA MOTORS:
• Established in 1945 .
• Tata Motors Limited is India’s largest automobile
company, with revenues of Rs. 24,000 crores (USD
5.5 billion) in 2005-06.
• It is the 2nd largest in the passenger vehicles market
with winning products in the compact, midsize car
and utility vehicle segments.
• Vision :“best in the manner in which we operate, best in
the products we deliver, and best in our value system
and ethics.”
Tata Motors 4-ps
Brand Product Innovation
Pricing Strategy Price Discounts

Tata Motors 4 - ps
Channels Of Physical
Distribution Place Distribution
Public Relation
Advertising Promotion
MARUTI SUZUKI
• Maruti Udyog Limited (MUL) was established in
February 1981, though the actual production
commenced in 1983.
•
• Maruti Suzuki India Limited (MSIL, formerly M.U.L.) is
a subsidiary of Suzuki Motor Corporation of Japan.
•
• It is India's largest passenger car company.
•
• It accounts for over 50 per cent of the domestic car
market.
MARUTI SUZUKI
In 1981, Maruti was created and launched

the Maruti 800 “the people’s car”, a small
low-priced car, which made Maruti to
gain over a 50% in the market share and
to become the leader in the market.
MARUTI SUZUKI
• The Joint Venture agreement was signed between
Government of India and Suzuki Motor Company
(now Suzuki Motor Corporation of Japan) in Oct 1982.
•
• The company went into production in a record time of 13
months and the first car was rolled out from Maruti
Suzuki India Limited Gurgaon in December, 1983.
Maruti Suzuki 4-ps
Product All Segment Cars
Japanese
Engineering
Car for Every

Indian
Price
Moderate Strategy
Pricing
Maruti Suzuki 4-ps
Place Channels Of
Distribution
Service Centers
Advertising
Promotion
Customer
Relationship
Mahindra & Mahindra
vMahindra embarked on its journey in 1945 by assembling
the WillysJeep in India and is now a US$7.1 billion Indian
multinational.
vMahindra is the only Indian company among the top tractor

brands in the world. It is today a full-range player with a
presence in almost every segment of the automobile
industry, from two-wheelers to CVs, UVs, SUVs and sedan.
Mahindra recently acquired a majority stake in REVA

Electric Car Co Ltd. (now called Mahindra
REVA), strengthening its position in the Electric Vehicles
domain.
Mahindra & Mahindra
vMahindra is also one of the few Indian companies to
receive an A+ GRI checked rating for its first Sustainability
Report for the year 2007-08 and has also received the A+
GRI rating for the year 2008- 09.
vLargest Corporate Group- Turnover- US $ 4.5 bn Ranking-
Top 200 Companies in the world Top 10 Companies in
India
Mahindra & Mahindra
PRODUCT PRICE
4 p’s
PLACE PROMTION
Mahindra & Mahindra
PRODUCT
PRICE
Variants of Mahindra Logan
Petrol Price ( Petrol )– 4 . 5 lacs –
6 lacs GL 1 . 4
GLE 1 . 4
GLX 1 . 4
GLS 1 . 6
Diesel Price ( Diesel )- 5 . 5 lacs –

7 . 5 lacs DLE 1 . 5
DLX 1 . 5
DLS 1 . 5 dci
Mahindra & Mahindra
Place
Mahindra Automobiles have a strong and growing
presence in international markets
Yugoslavia,Sri Lanka, Australia,Uruguay
Bangladesh South Africa in 2004 (South Africa)
Europe in 2005 (Mahindra Europe )
PROMOTION
M&M is not bound by the limitations of traditional media and is

making inroads through online media as well
Mahindra Scorpio alone has close to 1 lakh fans on Facebook and close
to 3 lakh fans collectively of other products in its portfolio.
Mahindra & Mahindra
PROMOTION
Mahindra Great Escape in association with Zapak that attracted close
to two million game plays.
Tata Motors SWOT
strengths OPPORTUNITIES
vStrong market position vRoad development
v v
vStrong revenue growth
vTerritorial expansion
v
vResearch and v
Development vCar penetration in India
WEAKNESS threats
vDependent on vendors vGlobal competition
v v
vOverdependence on Indian vGovernment regulations
market v
vDiesel fuel issues
Maruti Suzuki SWoT
strengths OPPORTUNITIES
vEstablished distribution and vGovernment subsidies
after sales networks v
vUnderstanding of the Indian vTax benefits
market and ability to liaison v
with the government. vForeign collaboration
vAbility to design products v
with differentiating features vIncreased purchasing power
vBrand image of Indian middleclass category
vExperience and know-how in
technology.
WEAKNESS threats
vLack of experience with vThreats from Chinese
foreign market manufacturers
v v
vHeavy import tariffs vIndian as well as foreign
competitors.
Mahindra & Mahindra
Strengths Weaknesses
vone of the top players in vThe company is highly
the dependent on the rural
world in terms of number SWOT sector,
of and the rural sector in
vThetractors
company's
sold
ability
. to turn is
introduce new products highly dependent on the
in the monsoons
market and to generate
sales
from those new products
is aOpportunities
major strength. Threats
vThe government has been vin unrelated diversifications
such as
trying to strengthen telecom, holiday and resort
the inns, financial services, etc.
vTheexports
penetration
of agricultural
of tractors is
products
10 tractors per 1000 hectares of
cropped area, which is much below vThe entry of foreign players in
the world average of 19 tractors the
for the same. tractors segment could pose a
threat
FINANCIAL ANALYSIS
TATA Motors Maruti Suzuki Ltd Mahindra
&
Mahindra.
March 2010 March 2010 March 2010
Book Value (Rs) 259.46 409.65 138.15
Net-worth 12394.27 9344.90 10,698.7
Total Assets 25559.83 10043 4,866.18
Net Sales 25660.67 20729.40 5,434.36

RATIO ANALYSIS
Tata Motors Maruti Suzuki Mahindra and
Mahindra
Current ratio 0.84 1.02 1.11
Dividend payout 34.52 8.09 29.87

ratio
Earnings/share 39.26 86.45 36.89
Price Earnings (PE) 24.12 16.43 20.77

Ratio
Debt to Equity 1.06 0.06 0.46

Ratio
CAPITAL MARKET ANALYSIS
Performance Chart
Conclusion
 As per the marketing as well as financial
analysis we conclude that Maruti-Suzuki and
Tata motor is stronger than Mahindra and
Mahindra Motors.
Why M&M is not doing
well?
•
• M&M Policy of going for JOINT VENTURE, when
doing non-core business
• Joint Venture with Renault not doing well, M&M
buying out stake of Renault
• The change from uv/suv to passenger car
segment has not been smooth.
• Instead of new models, more time and focus is
being dealt on Relaunching Logan
• Customer perception of Logan as transport
vehicle in the form of taxis
• Acquisition of Ssangyong motors- suv maker will
mean less resource allocation to the
passenger car segment
Recommendation
• Focus on fast growing passenger car
segment.
• Rebranding of Logan.
• Introduction of new car models.
• Increase distribution channels and
service centers.
• Acquire smaller players in the
passenger car segment like Hindustan
Motors
• If all these are not possible, hive off this
segment and focus on core business
Recommendation
• Following are the Recommendations:
– Produce more efficient car
– Keep competitive prices
– Product differentiation
– Effective design parameter
Th a n k
Yo u

Indian Automobile

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Indian Automobile Industry

Passenger Vehicles 15.96%

Commercial Vehicles 3.95%

Three Wheelers 3.6%

Two Wheelers 76.49%

Pricing Strategy Price Discounts

In 1981, Maruti was created and launched

Car for Every

vMahindra is the only Indian company among the top tractor

Mahindra recently acquired a majority stake in REVA

Diesel Price ( Diesel )- 5 . 5 lacs –

M&M is not bound by the limitations of traditional media and is

March 2010 March 2010 March 2010

Book Value (Rs) 259.46 409.65 138.15

Net-worth 12394.27 9344.90 10,698.7

Total Assets 25559.83 10043 4,866.18

Net Sales 25660.67 20729.40 5,434.36

Dividend payout 34.52 8.09 29.87

Earnings/share 39.26 86.45 36.89

Price Earnings (PE) 24.12 16.43 20.77

Debt to Equity 1.06 0.06 0.46

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