Automobile Industry Awareness

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Industry Awareness
Automobile Industry (Passenger Cars and Utility Vehicles)

8/24/2014
IIM Indore
PGP1, Section E, Group 7

Overview of the Industry
In India Automobile Industry is one of the key sectors of the economy. It acts as one of the key drivers of the economic growth due to its deep forward and backward linkages with several key segments of the economy. The Indian automobile industry after de-licensing in July, 1991 has grown at a spectacular rate of 17% on an average for last few years. The export in automobile sector has grown on an average CAGR of 30% per year for the last five years. Even with this rapid growth, the Indian Automotive Industry’s contribution in global terms is very low. This is evident from the fact that even though passenger and commercial vehicles have crossed the production
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Passenger cars accommodate not more than 8 seats in addition to driver’s seat.
Under Passenger cars segment there are four types of vehicle categories:
a. Small (upto 4000 mm)
b. Mid-size (4001-4500 mm)
c. Executive (4501-4700 mm)
d. Premium (4701-5000 mm)
e. Luxury (>5001 mm)
Small segment of passenger vehicles continues to dominate with 76.1% market share in 2014. Maruti Suzuki continues to dominate the small segment of passenger cars in India. The mid-size segment’s market share is estimated at 22.2% followed by executive, premium and luxury segment with 1.2%, 0.2% and 0.02% market share respectively in 2014.

% Share of domestic Passenger vehicle
Year 2006 2007 2008 2009 2010 2011 2012 2013 2014
Small 75.5 77.3 77.16 76.62 78.05 77.99 78.00 75.40 76.19
Mid-size 21.11 18.29 18.75 19.8 18.08 18.47 19.40 22.64 22.28
Executive 3.12 3.81 3.51 2.76 3.04 2.63 2.00 1.43 1.28
Premium 0.71 0.56 0.52 0.74 0,75 0.82 0.50 0.48 0.23
Luxury 0.01 0.04 0.07 0.09 0.08 0.10 0 0.05 0.02
Total 100 100 100 100 100 100 100 100

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