Automotive

PROJECT: Advanced Statistics SECTION: 2 GROUP NUMBER: 10 SECTOR: Automotive COMPANY: Mahindra & Mahindra

ACKNOWLEDGEMENT We would like to express our gratitude to all those who gave us the possibility to complete this project. Also the faculty members have helped us a lot. Their help, suggestions and encouragement

helped us a lot in research. Also the group colleagues have supported and shown interest.

INDEX

Introduction of Automobile Sector Scope of Automobile Sector Growth of Automobile Sector Major Players In The Automobile Sector

Introduction of Mahindra & Mahindra Scope And Growth Of Mahindra & Mahindra Statistical & Graphical Comparative Analysis Conclusions/Suggestions Bibliography INTRODUCTION ON AUTOMOTIVE SECTOR: The automotive industry is a term that covers a wide range of companies and organizations involved in the design, development, manufacture, marketing, and selling of motor vehicles, towed vehicles, motorcycles and mopeds. It is one of the world's most important economic sectors by revenue. The term automotive industry usually does not include industries dedicated to the maintenance of automobiles following delivery to the end-user, such as repair shops and motor fuel filling stations. The automobiles sector is divided into four segments – two-wheelers , passenger vehicles , commercial vehicles

(light and medium-heavy vehicles), and three wheelers (passenger carriers and good carriers).

SCOPE AND GROWTH OF THE SECTOR: The industry is one of the key drivers of economic growth of the nation. Since the delicensing of the sector in 1991 and the subsequent opening up of 100 percent FDI through automatic route, Indian automobile sector has come a long way. Today, almost every global auto major has set up facilities in the country. The world standings for the Indian automobile sector, as per the Confederation of Indian Industry, are as follows:  Largest three-wheeler market  Second largest two-wheeler market  Tenth largest passenger car market  Fourth largest tractor market  Fifth largest commercial vehicle market  Fifth largest bus and truck segment

The auto sector reported a robust growth rate of 26 percent in the last two years (2010-2012).. The Government recognizes the impact of the sector on the nation’s economy, and consequently, the Automotive Mission Plan 2016 launched by it seeks to grow the industry to a size of US $145bn by 2016 and make it contribute 10 percent to the nation’s GDP.

Factors that will drive growth in the sector : 1. Rising incomes among Indian population will lead to increased affordability, increasing domestic demand for vehicles, especially in the small car segment. 2. Fuel economy and demand for greater fuel efficiency is a major factor that affects consumer purchase decision that will bring leading companies across two-wheeler and four-wheeler segment to focus on delivering performanceoriented products. 3. Product innovation and market segmentation will channelize growth. Vehicles based on alternative fuels

will be an area of interest for both consumers and auto makers. 4. Focus on establishing India as auto-manufacturing hub is reigning in policy support in form of Government’s technology modernization fund. 5. Industry will seek to augment sales by tapping into rural markets, youth, women and luxury segments.

MAJOR PLAYERS IN AUTOMOBILE SECTOR The top players in the Indian automobile industry have played a key role in the growth and development of the automobile industry in India. Companies like Bajaj Auto, Hindustan Motors and TVS Motors, with their ever expansive car dealing networks, promotional, convenient customer care services, have marked India among the leading automobile Industries.

Top players in Indian Automobile industry Some of the important companies and their details

include: Hindustan Motors: One of the oldest car manufacturing companies in India, it has produced cars like Ambassador and Contessa. Having collaborated with foreign companies like Mitsubishi, and General Motors Corporation of USA, it has made an irrefutable mark in the manufacturing cars like the Lancer. Apart from this, the company has impressive manufacturing statistics in the field of passenger Cars, utility vehicles, and earthmoving equipment. Mahindra and Mahindra: Established in the year 1945, this company has given a cutting-edge dimension to the Indian automobile industry. It began as a general-purpose utility vehicle manufacturing unit and expanded its business to automative, tractor, MSL and inter trade. Presently, the largest company in the private sector, this company boasts of an advanced technological infrastructure and manpower. Bajaj Auto Limited:

Established in the year 1945, Bajaj Autos started off as a trading company. It was responsible for marketing twowheelers from Italy in India. Presently, one of the front runners in market capitalization, Bajaj Autos attained its license to produce two wheelers in the year 1959. With the help of technical collaboration from Piaggio of Italy, the company now boasts of being the top five automobile companies when it comes to annual turnover.

As the company's contract with Piaggio expired in the year 1971, it became the sole manufacturer of two and three wheelers under the 'bajaj' tag. Its manufacturing hub in Maharashtra has an annual production of 1.35 million. Maruti Udyog Limited: The first ever Indian company to manufacture low cost cars, in collaboration with Suzuki of Japan, Maruti is considered to be the largest automobile company in India. The company is known for producing high quality, fuelefficient cars with Japanese technology, but adaptive to Indian roads. The company has attained the annual production mark of 3,20,000, which is a trend setter for

any Indian company. Among the cars it has manufactured are the Maruti 800, Zen, Maruti Omni, Wagon R. Tata Motors: India's biggest manufacturer of commercial vehicles, the company boasts of an annual turnover of Rs 101.3 billion. It is counted among the top ten vehicle manufacturing companies of the world in 5-15 tonnes segment. Among its chief productions are light commercial vehicles, commercial vehicles, multi-utility vehicles, and passenger cars. TELCO has launched numerous car brands in collaboration with foreign companies like Cummins Engine Company, USA, Daimler Benz A.G.and Holset Engineering Company, U.K. Using technology that not only cuts out on the pollution but also the cost, the company has manufactured vehicles like Tata Safari, Tata Sierra, Tata Estate, and Tata Mobile.

MAHINDRA & MAHINDRA  INTRODUCTION Founded in 1945 as a steel trading company, they have entered automotive manufacturing in 1947 to bring the iconic Willys Jeep onto Indian roads. Over the years, they’ve diversified into many new businesses in order to better meet the needs of the customers. they follow a unique business model of creating empowered companies that enjoy the best of entrepreneurial independence and Group-wide synergies. This principle has led their growth into a US $15.9 billion multinational group with more than 155,000 employees in over 100 countries across the globe. Today, their operations span 18 key industries that form the foundation of every modern economy.

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 GROWTH Mahindra and an independent India began their rise together. In 1945, two enterprising brothers named J.C. Mahindra and K.C. Mahindra joined forces with Ghulam Mohammed and started Mahindra & Mohammed as a steel company in Mumbai. Two years later, India won its independence, Ghulam Mohammed left the company to become Pakistan’s first finance minister, and the Mahindra brothers ignited the company's enduring growth with their decision to manufacture Willys jeeps in Mumbai. The company’s new name Mahindra & Mahindra. Early pioneers of globalization, the brothers collaborated with a wide range of international companies and before long, Mahindra’s reach extended to steel, tractors, telecom, and more. Today, it is the 10th largest private

sector company in India, which is into manufacturing of tractors and light commercial vehicles along with other general utility vehicles. With increased scope of work, company's business is divided into four divisions viz. automotive, tractor, inter trade and MSL. These divisions handle steel, trading and manufacturing of ash handling plants and traveling water screens. The company area exceeds over 5,00,000 square meters and over 17,000 technical and non - technical personnels are employed there. Now, after 65 years, Mahindra has grown from a humble local outfit to a US $15.9 billion corporation employing more than 155,000 people around the world. It has 49 sales offices that are supported by a network of over 780 dealers across the country. This network is connected to the Company's sales departments by an extensive IT infrastructure.

 SCOPE 1.Mahindra and Mahindra, India's top utility vehicle maker, will launch its much-awaited global sports utility vehicle, now christened XUV500, in India and South Africa by December. The company, which sells SUVs such as Bolero, Xylo and Scorpio, will position the new vehicle above Scorpio, aiming to create a new SUV segment with the vehicle.

M&M intends to position the product in the premium segment and has set up a separate assembly line at its Chakan plant near Pune. The company, however, did not divulge the investment on product development and the capacity it has created for the product. Also, M&M plans to launch vehicles of its Korean subsidiary, Ssangyong, going ahead, which will be again high-end SUVs. According to company, XUV500 is also the country's first indigenously developed monocoque SUV with the first transverse engine offering 2. Mahindra and Mahindra (M&M) Limited, the country's leading utility vehicle maker, has revealed intentions to invest a whopping amount of Rs. 4,950 crore ($ 900 million) on building six new engines and three model platforms. As per a top company official, M&M has decided to collaborate with its South Korean subdivision SsangYong Motor Corp. for the project, which will be completed over a period of four years. 3. M&M has also set aside another sum of Rs. 200 to 250 crore to develop products for its Indian commercial vehicle subsidiaries over the next three years. Hence, Mahindra Navistar Engines Private Ltd. (MNEPL) and Mahindra Navistar Automotives Ltd. (MNAL) will benefit from their parent company's proposed investment. Interestingly, M&M has also decided to take complete

control over MNEPL and MNAL by purchasing stake of Navistar Group in both the joint ventures. Mahindra & Mahindra, India’s largest maker of sports utility vehicles, is planning to set up its small car plant in Andhra Pradesh. The plant, which was expected to start production in the second week of January, is billed as the world’s largest tractor manufacturing plant. The Rs 300 crore plant will manufacture 300 vehicles a day. Mahindra & Mahindra, which manufactures everything from scooters to tractors to heavy trucks, is planning to enter the cluttered small car market. According to reports, the car major plans to launch a 1000cc small car with a target price tag of Rs 2.5-3.5lakh. Mahindra & Mahindra’s upcoming line up is leaded by Mahindra Mahindra Reva E20. The company is also going to launch Verito CS in 2013. This Sedan will compete with Maruti Suzuki Dzire CS and the upcoming Honda Amaze.

COMPARATIVE ANALYSIS:

YEAR PROFIT(IN ANNUAL CRORES) INFLATION RATE 2003 2004 2005 2006

146 349 513 857

3.4 5.4 6.4 4.4

2007 2008 2009 2010 2011 2012

1068 1103 868 2088 2662 2879

5.3 4.7 12.44 10.2 9.4 11.7

YEAR SENSEX SHARE PRICE OF M&M LTD 2003 2004 2005 2006 2007 2008

3383.85 5872.48 6626.49 9422.49 13827.7 20325.20

25.35 116.68 127.50 320 379.90 349

2009 2010 2011 2012 2013

9720.55 17475.4 20621.6 15534.6 19513.4

206 550 701 678 901

CONCLUSIONS: The automotive industry in India is one of the larger markets in the world and had previously been one of the fastest growing globally, but is now seeing flat or negative growth rates. India's passenger car and commercial vehicle manufacturing industry is the sixth largest in the world, with an annual production of more than 3.9 million units in 2011. According to recent reports, India overtook Brazil and became the sixth largest passenger vehicle producer in the world. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan,

South Korea, and Thailand. In 2010, India beat Thailand to become Asia's third largest exporter of passenger cars.

BIBLIOGRAPHY:  www.bseindia.com  www.nseindia.com  www.moneycontrol.com  www.mahindra.com  www.automobileindia.com