Industry analysis The automotive industry in India is one of the largest in the world and one of the fastest growing globally. India's passenger car and commercial vehicle manufacturing industry is the sixth largest in the world, with an annual production of more than 3.7 million units in 2010. In 2010, India reached as Asia's Asia's third largest exporter of passenger of passenger cars, behind Japan and South Korea beating Thailand. As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second fastest growing automobile market in the world. According to the Society of Indian Automobile Manufacturers, annual vehicle sales are projected to increase to 5 million by 2015 and more than 9 million by 2020. By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation's roads.
Mahindra Scorpio, one of India's best selling indigenously developed SUV.
Foreign carmakers have built plants in India. Shown here is an Indian-assembledA4
The Tata Nano - the cheapest car made in India
Overview The Indian Automobile Industry manufactures over 11 million vehicles and exports about 1.5 million each year.The dominant products of the industry are two-wheelers with a market share of over 75% and passenger cars with a market share of about 16%. Commercial vehicles and threewheelers share about 9% of the market between them. About 91% of the vehicles sold are used
by households and only about 9% for commercial purposes. The industry has a turnover of more than USD $35 billion and provides direct and indirect employment to over 13 million people. The supply chain is similar to the supply chain of the automotive industry in Europe and America. Over the past few years, the industry has been volatile. Currently, India's increasing per capita disposable income which is expected to rise by 106% by 2015[18] and growth in exports is playing a major role in the rise and competitiveness of the industry. Tata Motors is leading the commercial vehicle segment with a market share of about 64%.[18] Maruti Suzuki is leading the passenger vehicle segment with a market share of 46%.[18] Hyundai Motor India and Mahindra and Mahindra are focusing expanding their footprint in the overseas market. Hero MotoCorp is occupying over 41% and sharing 26%[18] of the two-wheeler market in India with Bajaj Auto. Bajaj Auto in itself is occupying about 58% of the three-wheeler market. Consumers are very important of the survival of the Motor Vehicle manufacturing industry. In 2008-09, customer sentiment dropped, which burned on the augmentation in demand of cars. Steel is the major input used by manufacturers and the rise in price of steel is putting a cost pressure on manufacturers and cost is getting transferred to the end consumer. The price of oil and petrol affect the driving habits of consumers and the type of car they buy.
History The first car ran on India's roads in 1897. Until the 1930s, cars were imported directly, but in very small numbers. Embryonic automotive industry emerged in India in the 1940s. Mahindra & Mahindra was established by two brothers as a trading company in 1945, and began assembly of Jeep CJ-3A utility vehicles under license from Willys . The company soon branched out into the manufacture of light commercial vehicles (LCVs) and agricultural tractors. Following the independence, in 1947, the Government of India and the private sector launched efforts to create an automotive component manufacturing industry to supply to the automobile industry. However, the growth was relatively slow in the 1950s and 1960s due to nationalisation and the license raj which hampered the Indian private sector. After 1970, the automotive industry started to grow, but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a major luxury. Japanese manufacturers entered the Indian
market ultimately leading to the establishment of MarutiUdyog. A number of foreign firms initiated joint ventures with Indian companies. In
the
1980s,
a
number
of
Japanese
manufacturers
launched
joint-ventures
for
building motorcycles and light commercial-vehicles. It was at this time that the Indian government chose Suzuki for its joint-venture to manufacture small cars. Following the economic liberalisation in 1991 and the gradual weakening of the license raj, a number of Indian and multi-national car companies launched operations. Since then, automotive component and automobile manufacturing growth has accelerated to m eet domestic and export demands. Following economic liberalization in India in 1991, the Indian automotive industry has demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions. In February 2009, monthly sales of passenger cars in India exceeded 100,000 units and has since grown rapidly to a record monthly high of 182,992 units in October 2009.From 2003 to 2010, car sales in India have progressed at a CAGR of 13.7%, and with only 10% of Indian households owning a car in 2009 (whereas this figure reaches 80% in Switzerland for example) this progression is unlikely to stop in the coming decade.Congestion of Indian roads, more than market demand, will likely be the limiting factor.
Key Competitors Tata Motors
Market Share: Commercial Vehicles 63.94%, Passenger Vehicles 16.45% Tata Motors Limited is India's largest automobile company, with consolidated revenues of USD 14 billion in 2008-09. It is the leader in commercial vehicles and among the top three in passenger vehicles. Through subsidiaries and associate companies, Tata Motors has operations in the United Kingdom, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business comprising the two British brands which was acquired in 2008. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea's second largest truck maker. Tata Motors is also expanding its international footprint by franchises and joint ventures assembly operations in Kenya, Bangladesh, Ukraine, Russia, Senegal and South Africa.In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, a development which signifies a first for the global automobile industry. Nano brings the comfort and safety of a car within the reach of thousands of families. The standard version has been priced at USD 2,200 or Rs.100,000 (excluding VAT and transportation cost). The Tata Nano has been subsequently launched as planned, in India in March 2009.
Maruti Suzuki India
Market Share: Passenger Vehicles 46.07% Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, is India's largest passenger car company, accounting for over 45% of the domestic car market. The company offers a complete range of cars from entry level Maruti-800 and Alto, to stylish hatchback Ritz, A star, Swift, Wagon-R, Estillo and sedans DZire, SX4 and Sports Utility vehicle Grand Vitara. Since inception in 1983, Maruti Suzuki India has produced and sold over 10 million vehicles in India and exported over 500,000 units to Europe and other countries. The company's revenue for the fiscal 2010-2011 stood over Rs 375,224 million and Profits After Tax at over Rs. 22,886 million.
Hyundai Motor India
Market Share: Passenger Vehicles 14.15% Hyundai Motor India Limited is a wholly owned subsidiary of world's fifth largest automobile company, Hyundai Motor Company, South Korea, and is the largest passenger car exporter. Hyundai Motor presently markets 49 variants of passenger cars across segments. These includes the Santro in the B segment, the i10, the premium hatchback i20 in the B+ segment, the Accent and the Verna in the C segment, the Sonata Transform in the E segment. In a little over a decade since Hyundai has been present in India, it has become the leading exporter of passenger cars with a market share of 66% of the total exports of passenger cars from India, making it a significant contributor to the Indian automobile industry. In 2009, in spite of a global slowdown, Hyundai Motor India's exports grew by 10.7%.In 2010 Hyundai plans to add 10 new markets with Australia being the latest entrant to the list. The first shipment to Australia is of 500 units of the i20 and the total i20 exports to Australia are expected to be in the region of 15,000 per annum. Mahindra & Mahindra
Market Share: Commercial Vehicles 10.01%, Passenger Vehicles 6.50%, T hree Wheelers 1.31%
Mahindra & Mahindra is mainly engaged in the Multi Utility Vehicle and Three Wheeler segments directly. The company competes in the Light Commercial Vehicle segment through its joint venture subsidiary Mahindra Navistar Automotives Limited and in the passenger car segment through another joint venture subsidiary Mahindra Renault. In the year 2009, on the domestic sales front, the Company along with its subsidiaries sold a total of 220,213 vehicles (including 44,533 three-wheelers, 8,603 Light Commercial Vehicles through Mahindra Navistar Automotives and 13,423 cars through Mahindra Renault), recording a growth of 0.6% over the previous year. The company's domestic Multi Utility Vehicle sales volumes increased by 3.3%, as against a decline of 7.4% for industry Multi Utility Vehicle sales. A record number of 153,653 Multi Utility Vehicles were sold in the domestic market in 2009 compared to 148,761 MUVs in the previous year. Hence, Mahindra & Mahindra further strengthened its domination of the domestic Multi Utility Vehicle sub-segment during the year, increasing its market share to 57.2% over the previous year's market share of 51.3%. Mahindra & Mahindra is expanding its footprint in the overseas market. In 2009 the Xylo was launched in South Africa. The company formed a new joint venture Mahindra Automotive Australia Pty. Limited, to focus on the Australian Market.
Company analysis
Mahindra & Mahindra Limited
Industry
Automotive
Founded
1945 (Ludhiana)
Headquarters Mumbai, Maharashtra, India
Area served
Worldwide
Key people
Anand Mahindra (MD)
Products
Automobiles, commercial vehicles, two-wheelers
Total assets
Parent
36,926 crore (US$7.37 billion)(2011) Mahindra Group
Mahindra & Mahindra Limited (M&M) is an Indian multinational automaker headquartered
in Mumbai, Maharashtra, India. It is one of the largest automobile manufacturers by production in India and a subsidiary of Mahindra Group conglomerate. The company was founded in 1945 inLudhiana as Mahindra & Mohammed by brothers K.C. Mahindra and J.C. Mahindra and Malik Ghulam Mohammed. After India gained independence andPakistan was formed, Mohammed
emigrated to Pakistan where he became the nation's first finance minister. The company changed its name to Mahindra & Mahindra in 1948. It is ranked #21 in the list of top companies of India in Fortune India 500 in 2011.
History
Mahindra & Mahindra was set up as a steel trading company in 1945. It soon expanded into manufacturing general-purpose utility vehicles, starting with assembly under licence of the iconic Willys Jeep in India. Soon established as the Jeep manufacturers of India, M&M later branched out into the manufacture of light commercial vehicles (LCVs) and agricultural tractors. Today, M&M is the leader in the utility vehicle segment in India with its flagship UV Scorpio and enjoys a growing global market presence in both the automotive and tractor businesses. Over the past few years, M&M has expanded into new industries and geographies. They entered into the two-wheeler segment by taking over Kinetic Motors in India. M&M also has controlling stake in REVA Electric Car Company and acquired South Korea's SsangYong Motor Company in 2011. The US based Reputation Institute recently ranked Mahindra among the top 10 Indian companies in its 'Global 200: The World's Best Corporate Reputations' list.
Automobiles Mahindra & Mahindra is a major automobile manufacturer of utility vehicles, passenger cars, pickups, commercial vehicles, and two wheelers. Its tractors are sold on six continents. It has acquired plants in China and the United Kingdom, and has three assembly plants in the USA. M&M has partnerships with international companies like Renault SA, Franceand International Truck and Engine Corporation, USA. M&M has a global presence and its products are exported to several countries.Its global subsidiaries include Mahindra Europe Srl. based in Italy, Mahindra USA Inc., Mahindra South Africa and Mahindra (China) Tractor Co. Ltd. M&M made its entry into the passenger car segment with the Logan in April 2007 under the Mahindra Renault joint venture.M&M will make its maiden entry into the heavy trucks segment with Mahindra Navistar, the joint venture with International Truck, USA. M&M's automotive division makes a wide range of vehicles including MUVs, LCVs and three wheelers. It offers over 20 models including new generation multi-utility vehicles like
the Scorpio and the Bolero. It formerly had a joint venture with Ford called Ford India Private Limited to build passenger cars. At the 2008 Delhi Auto Show, Mahindra executives said the company is pursuing an aggressive product expansion program that would see the launch of several new platforms and vehicles over the next three years, including an entry-level SUV designed to seat five passengers and powered by a small turbodiesel engine.True to their word, Mahindra & Mahindra launched the Mahindra Xylo in January 2009, and as of June 2009, the Xylo has sold over 15000 units. Also in early 2008, Mahindra commenced its first overseas CKD operations with the launch of the Mahindra Scorpio in Egypt, in partnership with the Bavarian Auto Group. This was soon followed by assembly facilities in Brazil. Vehicles assembled at the plant in Bramont, Manaus, include Scorpio Pik Ups in single and double cab pick-up body styles as well as SUVs. Mahindra planned to sell the diesel SUVs and pickup trucks starting in late 2010 in North America through an independent distributor, Global Vehicles USA, based in Alpharetta, Georgia. Mahindra announced it will import pickup trucks from India in knockdown kit (CKD) form to circumvent the Chicken tax. CKDs are complete vehicles that will be assembled in the U.S. from kits of parts shipped in crates. On 18 October 2010, however, it was reported that Mahindra had indefinitely delayed the launch of vehicles into the North American market, citing legal issues between it and Global Vehicles after Mahindra retracted its contract with Global Vehicles earlier in 2010, due to a decision to sell the vehicles directly to consumers instead of through Global Vehicles. However, a November 2010 report quoted John Perez, the CEO of Global Vehicles USA, as estimating that he expects Mahindra’s small diesel pickups to go on sale in the U.S. by spring 2011, although legal complications remain, and Perez, while hopeful, admits that arbitration could take more than a year. Later reports suggest that the delays may be due to anManindra scrapping the original model of the truck and replacing it with an upgraded one before selling them to Americans Mahindra & Mahindra has a controlling stake in Mahindra Reva Electric Vehicles. In 2011, it also gained a controlling stake in South Korea's SsangYong Motor Company. Mahindra & Mahindra Ltd. (M&M), has launched its much awaited SUV, XUV 500, code named as W201 in September 2011. The last ‘500’ in the name is pronounced as ‘5 double-O’
(alphabet). The new SUV by Mahindra has been designed in-house and it is developed on the first global SUV platform that could be used for developing more SUVs. In India, the new Mahindra XUV 500 comes in a price range between Rs 14 lakh to Rs 15 lakh. Besides India, the company also targets Europe, Africa, Australia and Latin America for this model. Defense
Mahindra & Mahindra became involved in defense systems in 1947, when it started importing, assembling, and adapting the Willys Jeeps used in World War II.It later began designing and constructing its own line of armored vehicles, becoming the largest private-sector supplier to the Government of India. Today, Mahindra & Mahindra partners with several countries to provide a range of defense solutions for police forces, Armies, and Navies — including sea mines, surveillance solutions, weapons, ammunition, and more. Defence Land Systems India is Mahindra & Mahindra’s joint venture with BAE Systems, a
world leader in defense technology. With more than 100 employees, it develops new technologies and manufactures armored vehicles like the Axe, Rakshak, Marksman, up-armored and bulletproof Scorpios and Boleros, and Rapid Intervention Vehicles. Its Special Military Vehicles facility outside Faridabad is ISO-9000-2008 certified. The facility manufactures worldclass military vehicles, select artillery systems, and other land system weapons and will provide support to the Indian Army as it pursues its Field Artillery Rationalization Plan and upgrade program as a center for design, development, manufacture, assembly, integration, and test of artillery systems. Farm equipment
Mahindra & Mahindra began manufacturing tractors for the Indian market in the early 1960s. Today, it is one of the top three tractor companies in the world with annual sales totaling more than 150,000 tractors. It has expanded its offerings to include farm-support services via Mahindra AppliTrac (agri-mechanization solutions), Mahindra ShubhLabh (seeds, crop protection, and market linkages and distribution), and the Samriddhi Initiative (agri-support information and counseling). Mahindra & Mahindra’s farm equipment division (Mahindra Tractors) is one of the top-selling
tractor companies in the world, with more than 1,000 dealers servicing more than 1.45 million customers.Mahindra tractors are sold in 40 countries on six continents, including the United States, China, Australia, New Zealand, Africa (Nigeria, Mali, Chad, Gambia, Angola, Sudan, Ghana, and Morocco), Latin America (Chile, Argentina, Brazil, Venezuela, Central America, and the Caribbean), South Asia (Sri Lanka, Bangladesh, and Nepal), the Middle East (Iran and Syria) and Eastern Europe (Serbia, Turkey, and Macedonia. Mahindra tractors are manufactured at four plants in India, two in China, three in the United States, and one in Australia — allowing Mahindra & Mahindra a foothold in major agricultural hubs. It has three major subsidiaries: Mahindra USA, Mahindra (China) Tractor Company, and Mahindra Yueda (Yancheng) Tractor Company (a joint venture with the Jiangsu Yueda Group).
The company has enjoyed 27 years of market leadership and has garnered the highest customer satisfaction index (CSI) in the industry at 88 percent.In its 2009 survey of Asia’s 200 most
admired and innovative companies, the Wall Street Journal named Mahindra & Mahindra one of the 10 most innovative Indian companies. It earned a 2008 Golden Peacock Award in the Innovative Product/Services category for its in-house development of a load-car. In 2007, Mahindra & Mahindra became the only tractor company to win the Deming Application Prize and the Japan Quality Medal for Total Quality Management excellence in entire business operations.
Mahindra & Mahindra Limited Key Recent Developments Nov 08, 2011: SB LiMotive Wins Contract To Supply Lithium-ion Battery Packs To Mahindra & Mahindra Aug 04, 2011: SunPower Signs 15 MW Supply Agreement With Mahindra Jan 03, 2011: EXIM Bank Extends Loan Of INR500 Million To Mahindra Reva Dec 03, 2010: Mahindra REVA Launches REVAi In Hyderabad, India Jul 29, 2010: Mahindra & Mahindra's Cleantech Division To Develop 50MW Solar Power Generation Capacity In India
SWOT ANALYSIS STRENGTH
Mahindra has been one of the strongest brands in the Indian automobile market
Mahindra group give employment to over 110,000 employees
Excellent and low after service cost
Study SUV’s good for Indian roads and off-road terrain
WEAKNESS
Mahindra’s partnership with Renault did not live up to international quality standards through their brand Logan
OPPORTUNITY
Developing hybrid cars and fuel efficient cars for the future
Tapping emerging markets across the world and building a global brand
Fast growing automobile market
Growing in the market through elect ric car reva (controlling stake)and entry into two -wheeler segments
THREATS
Government’s policies for the automobile sector across the world
Ever competition from global automobile brands
Substitute modes of public transport like buses, metro tr ains et
Conclusion: Within the short time Karnataka Agencies has sold more than thousand vehicles. Each is built with America technology. Mahindra motors have happily gone the extra mile in the quest for quality and consumer satisfaction. It is this effort that has brought satisfied smiles on the faces of million of Mahindra owners Mahindra and Mahindra motors is committed to maximizing customer satisfaction and strives to achieve the goals of excellence by continual improvement through ongoing design and development, manufacture and sale of reliable, safe cost effective, quality products and services of international standards by using environmentally sustainable technologies for improving levels of efficiency and productivity within its plants and ancillaries.
