Automobile Industry Vs National GDPHONDA MOTORS

Economy of business -Mahima sharma

Group Member:-

11/16/2009

Hitendra Singh PGDM 059

Jatin Ahuja PGDM 062

Honda In India Introduction-Honda Siel Cars India Ltd.,(HSCI) was incorporated inDecember 1995 as a joint venturebetween Honda Motor Co. Ltd.,Japan and Siel Limited, aSiddharth Shriram Group company,with a commitment to providingHonda’s latest passenger car models and technologies, tothe Indian customers. The Honda City, its first offeringintroduced in 1997, revolutionized the Indian passengercar market and has ever since been recognized as anengineering marvel in the Indian automobile industry. Thesuccess of City as well as all its other models has ledHSCI to become the leading premium car manufacturer inIndia. The total investment made by the company in Indiatill date is Rs. 1620 crores, further investment of RS.1000 crore is planned and being currently invested for thecoming second plant in Rajasthan. The company has acapacity of manufacturing 100,000 cars.

Showcase Manufacturing Facility -

HSCI’s state-of-the-art manufacturing unit was set up in 1997 at Greater Noida, U.P with an investment of Rs. 450 crore. The green-field project is spread across 150 acres of land (over 6,00,000 sq. m.).

The initialinstalled capacity of the plant was 30,000 cars per annum,which was thereafter increased to 50,000 cars on a two-shift basis. The capacity has further been enhanced to 1,00,000 units annually in February 2008 . The capacity expansion was necessitated by the excellent performance ofall the Honda models, particularly the growing demand for City in India. HSCI currently produces the newly launched Honda Jazz, City, Civic and Accord models in India and the premium SUV, CR-V is sold as a fully imported unit from Japan. The company operates under the stringent standards of ISO 9001 for quality management and ISO 14001 for environment management.

GDP India Statistics The India GDP statistics reflectsa cumulative report of the performance of all the major parameters of the Indian economy. The statistics of the Indian GDP indicates that the rise of the India GDP after the 1990s was the effect of opening-up of Indian economy. The Government of India opened up Indian markets to facilitate easy entry of private investments into the Indian markets. This change in Indian economic policy, from a highly insulated market to an open market facilitated inflow of foreign direct investment (FII) and foreign institutional investor (FII). 

A good number of Government of India undertakings were divested to private business house, in the proportion of 25%, 49% and 75%. The post 1990s era recorded suddenincremental growth of the annual average gross domesticproduct of the Indian economy. The period used to registeran average annual GDP growth rate of 4.5% to 5%. With the

stupendous growth of Indian Information Technology sector,Indian service industry and the Indian BPO sector, the Indian GDP skyrocketed to 6% during the period from 1988 to 2003. The period after 2004 marks the astronomical growth of gross domestic product of India and this rise was initiated by the Indian service and manufacturing industry. The Indian GDP registered an impressive growth rate of 8.5% during the period thereafter. The present growth statistics of India's GDP reflects that it is at 9.5% and the target is to reach an annual average GDP growth of 10 % and sustain it till 2020. 

The latest snapshots of the India GDP statistics are as below -

The growth rate of Indian GDP rose from 9.2% in 2006-07 to 9.5 % till the end of 2nd quarter of the currentfiscal

The foreign direct investment in the India market amounted to US$12.5 billion and surpassed portfolio investment of US$ 6.8 billion

Foreign trade and merchandise exports expected to cross US$125 billion by the end of the current fiscal

35 projects have been completed in the last financial year of 2006-07 and an additional irrigation potentialof 900,000 hectares to be created and training of farmers arranged

Central Public Sector Enterprises to invest Rs.165, 053 crore in 2007-08

162 new production sharing contracts awarded to Petroleum and Natural Gas industry

Bank's differential rate of interest scheme providing finance at the rate of 4% to weaker sections

Role of automobile industry in india GDP- fects

India has become one of the international players in the automobile market

In the year 2006-07, the Indian Automobile Industry produced 2.06 million four wheelers and 9 million two and three wheelers

The four wheelers include passenger cars, multi-utility vehicles, sports utility vehicles, light, medium and heavy commercial vehicles, etc

The three wheelers include mopeds, motor-cycles, scooters, and three wheelers

India ranks 2nd in the global two-wheeler market

India is the 4th biggest commercial vehicle market in the world

India ranks 11th in the international passenger car market

India ranks 5th pertaining to the number of bus and truck sold in the world

It is expected that the Automobile Industry in India would be the 7th largest automobile market within the year 2016

Role of Automobile Industry in India GDP-Sales Trends In the year 2006-07 the number of Passenger Car sold

were 10,76,408 In the year 2006-07 the number of Passenger Vehicles

sold were 13,79,698

In the year 2006-07 the number of Commercial Vehicles sold were 4,67,882

In the year 2006-07 the number of Three Wheelers sold were 4,03,909

In the year 2006-07 the number of Two Wheelers sold were 78,57,548

In the year 2006-07 the number of automobile sold were1,01,09,037

Role of Automobile Industry in India GDP-Growth The growth rate of the Passenger Cars in the year 2007

is 13.50% The growth rate of the Utility Vehicles in the year

2007 is 10.10%

The growth rate of the Multi Purpose Vehicles in the year 2007 is 24.40%

The growth rate of the Light Commercial Vehicles in the year 2007 is 16.05%

The growth rate of the Commercial Vehicles in the year2007 is 3.43%

The Honda Siel Cars India Ltd, the leaders in India pertaining to the manufacturing of premium cars, registered a growth of 16.1 % during the year 2007 andsold 41,638 units

Role of Automobile Industry in India GDP-Foreign Investments

The Indian Automobile industry is at present engaged in mergers and acquisitions on the international scale

The Indian automobile industry's foreign sector worth US$ 515 million

India GDP Growth Rate:- IndiaGross Domestic Product (GDP) expanded 6.10% over the last4 quarters. The India Gross Domestic Product is worth 1217billion dollars or 1.96% of the world economy, accordingto the World Bank. India's diverse economy encompassestraditional village farming, modern agriculture,handicrafts, a wide range of modern industries, and amultitude of services. Services are the major source ofeconomic growth, accounting for more than half of India'soutput with less than one third of its labor force. Theeconomy has posted an average growth rate of more than 7%in the decade since 1997, reducing poverty by about 10percentage points. This page includes: India GDP GrowthRate chart, historical data, forecast and news.

Year March June September

December Average

2009 5.80 6.10 - - 5.952008 8.60 7.80 7.70 5.80 7.482007 9.70 9.20 9.00 9.30 9.302006 10.40 9.80 10.60 9.30 10.03

Role of Automobile IndustryRole of Automobile Industry in India GDP-Facts

India has become one of the international players in the automobile market In the year 2006-07, the Indian Automobile Industry produced 2.06 million four wheelers and 9 million

two and three wheelers

The four wheelers include passenger cars, multi-utility vehicles, sports utility vehicles, light, medium and heavy commercial vehicles, etc

The three wheelers include mopeds, motor-cycles, scooters, and three wheelers

India ranks 2nd in the global two-wheeler market

India is the 4th biggest commercial vehicle market in the world

India ranks 11th in the international passenger car market

India ranks 5th pertaining to the number of bus and truck sold in the world

It is expected that the Automobile Industry in India would be the 7th largest automobile market withinthe year 2016

Role of Automobile Industry in India GDP-Sales Trends In the year 2006-07 the number of Passenger Car sold were 10,76,408 In the year 2006-07 the number of Passenger Vehicles sold were 13,79,698

In the year 2006-07 the number of Commercial Vehicles sold were 4,67,882

In the year 2006-07 the number of Three Wheelers sold were 4,03,909

In the year 2006-07 the number of Two Wheelers sold were 78,57,548

In the year 2006-07 the number of automobile sold were 1,01,09,037

Role of Automobile Industry in India GDP-Growth The growth rate of the Passenger Cars in the year 2007 is 13.50% The growth rate of the Utility Vehicles in the year 2007 is 10.10%

The growth rate of the Multi Purpose Vehicles in the year 2007 is 24.40%

The growth rate of the Light Commercial Vehicles in the year 2007 is 16.05%

The growth rate of the Commercial Vehicles in the year 2007 is 3.43%

The Maruti Udyog Ltd is the largest car manufacturer in the country and the rate of growth in the year2007 was 20.7%

The Mahindra & Mahindra Ltd's cumulative sales for the year 2007 was 1,06,094 units and the rate of growth was 35.8%

The Honda Siel Cars India Ltd, the leaders in India pertaining to the manufacturing of premium cars, registered a growth of 16.1 % during the year 2007 and sold 41,638 units

The Daimler Chrysler sales for the year 2007 was 1,681 units in India and the growth rate was more than 22%

The General Motors India, registered a 114% increase in the national sales in the August of 2007

The Hero Honda sold more than 2 million units in the Jan-Aug period of the year 2007

The export pertaining to the motorbikes was 3,21,321 units in the year 2007

It is estimated that in the year 2007-08 the motorcycle sales would be 7 million, the car sales would be 1.55 million, and the two-wheelers sales would be 8.3 million

Automobile Industry in India-New Models Maruti sedan SX4 and Zen Estilo Mahindra Renault Logan,

General Motors Chevrolet Spark, Aveo, and Aveo UV-A

Hyundai Verna

Fiat Palio 1.1 litre version,

Volvo Car S80 sedan and XC90 SUV,

Tata Motors Magic and Winger,

Volkswagen Passat

Mitsubishi Cedia

Role of Automobile Industry in India GDP-Foreign Investments The Indian Automobile industry is at present engaged in mergers and acquisitions on the international

scale The Indian automobile industry's foreign sector worth US$ 515 million

The Mahindra and Mahindra company will be establishing a utility assembly plant in collaboration with Bramont, a local company at Manuas, in North Brazil

In Egypt, the Mahindra and Mahindra company has set up assembly plants in collaboration with the Bavarian Motors

The Tata Motors have entered the passenger car market in Saudi Arabia with the launch of

Tata Indigo, Tata Indica, and Tata Indigo Marina

The TVS Motor Company has established a two-wheeler manufacturing unit at Karawang, in Indonesia

The Maruti Udyog Ltd has captured nearly 60% of the small car market in Indonesia

The Nissan Motor facility in South Africa was acquired by the Tata Motors to manufacture Tata vehicle for European and South African market

The Jaguar and Land Rover companies owned by the Ford Motor Company was acquired by the Tata Motors Ltd for estimated price of US$ 1.5 billion