- Indian Automobile Industry Analysis
- The future of the automobile industry in India | McKinsey
- Value proposition of India
Kamalam 9UTB13 N. Nirupa 9UTB18 P. In this study an analysis of the relationship between the labour and management, and their occurrence of strikes in the industrial society will be done. The study would also involve the understanding of the instruments used to bargain and negotiate by both the parties. It is used as a powerful. The automotive industry has been an industry of rapid growth. It has been successful in providing the best styles, comfort, and powerful engines in the motor vehicles thereby satisfied the human life when it comes to transport with comfort.
The design and development of the vehicles produced by the automotive industry is simply awesome. Right since the origin of the automotive industry human life has benefitted from it and it is becoming better and better every day. The automobile sector of India.
Indian Automobile Industry Analysis
Voss, C. Background of company : Toyota Motor Organization was built in by Kiichiro Toyoda, despite the fact that its history can be followed as far back as , when an auto division was situated up by Kiichiro Toyoda in the Toyoda Programmed Weaving machine. Guided by: Training in charge: Mr. Page 27 across the nation. PNB registered a net profit of , lacs in the year ended March 31, Kotak Mahindra prime limited: Kotak Car Finance has crafted a niche in the Indian auto finance market through its flexible schemes, hassle-free documentation and quick processing. KMPL finances new as well as used cars.
In , KMPL registered a net profit of 1, million. Sundaram Finance: Sundaram Finance is one of the market leaders in the auto finance market in India. Founded in , this company extends finance in all models of cars. Customers can choose from a range of vehicle and finance packages offered by the company. It also has an extensive network of more than branches across the nation. United Bank of India: United Bank of India is one of the leading auto finance companies in India offering range of car financing options to the customers.
It offers car loan for new cars as well as for used cars.
The future of the automobile industry in India | McKinsey
In , UBI registered a net profit of Canara bank: Canara Bank offers attractive interest in the auto loans for its customers. From August , Canara Bank further reduced its auto loan rates to woo customers. Canara Bank registered a net profit of crore in , which saw a Page 28 Source: www. The results are The reason of fluctuation is because of services provided by SBI bank is different from other banks.
Categories of auto financiers: Entry in the auto financing segment has been relatively easy and hence the gap between existing players and new entrants is not much. Auto financing market typically remains competitive.
Some of the players in the market are: Banks: Banks, both public and private, cover a huge portion of the auto finance market since they are among the most established lending institutions around. They are in a position to offer competitive rates as compared to other financers with better access to credit histories. Customers are used to working with their local bank for a variety of day-to-day needs. Turning to them for car financing seems like the natural next step. The CASA advantage that banks have given them an edge over other financiers.
NBFCs cover a signification portion of the total auto finance market in India. Though banks have low cost of funds, NBFCs have certain advantages and lesser stringent regulatory requirements as compared to banks.
NBFCs are not bound by priority sector lending requirements, not required to maintain CRR, can customize products, and have wider reach to customers. These differences have resulted in NBFCs having a significant role playing with banks on the lending front. Also, banks have concentrated more on the car loan segment whereas NBFCs are more focussed on providing finance to the commercial vehicle segment. Commercial vehicle loan in India: Commercial vehicle loans are usually taken by individual, partnership firms, proprietorship firms, HUF Hindu Undivided Family , trusts, societies, self-employed, businessmen and private and public limited companies for their financing needs for owning and running commercial vehicles.
Commercial vehicle loan options are available for buses, tippers, transit mixers or any other heavy, light or small commercial vehicle. A commercial vehicle loan can be taken for a variety of commercial vehicles, which may be used at different locations.
Value proposition of India
While loans are sanctioned for the purchase of a new commercial vehicle, banks also offer loans for pre-owned vehicles. Borrowers can also avail of a top up on existing loans subject to conditions. The rate depends on a lot of factors such as the number of vehicles owned by the borrower, his business turnover, repayment track record from other financiers if any , etc. The financial institutions are able to confirm the rate of interest once they have studied the documents.
The interest rate may be fixed or variable. Processing charges include processing fee, stamp duty and vehicle valuation charges. The processing fee depends on the loan amount. Commercial Vehicles Leasing in India: Globally there is a clear domination of lease over loan. The auto-leasing sector in India has recently picked up pace, although the market is still in its nascent stage. The scope of growth of leases in this sector is very high owing to the large number of infrastructural projects in the pipeline which will result in the demand for commercial Page 30 vehicles to grow combined with the rising cost of manufacturing these vehicles, users are forced to look at lease options more actively than ever before.
On the flip side, the deterrents to growth of leasing as a financial product, which may be more generic to the product than specific to the sector, are multiplicity of taxes.
For instance, in a chassis, the combination of the chassis and the body is treated as a new asset for indirect tax purposes and accordingly, the chassis suffers local taxes whereas the body of the vehicle is subject to works contract. Then, at the end of the lease if there is any transfer of ownership, sale tax is applicable on the sale consideration.
Further there may be issues of input tax credit being disallowed, adding to the costs of the transaction, making it completely unviable. Though leasing is becoming attractive as a more popular product, the add-on costs in the form of taxes are acting as a deterrent and add to the complexities. Nevertheless this untapped sector provides huge opportunities to financial institutions due to its inherent benefits pertaining to risk removal and cash flow restructuring.
Leasing has been a widely accepted product in the passenger vehicle segment owing to the tax free perquisite benefit availed by the employees. CV financing and CV industry in particular is posed to several challenges in the recent times than opportunities clearly explaining the traction in volumes and numbers. In the short term the CV volumes and financing has got impacted due to the macro factors, but considering the huge infrastructural demand in the country and the strong fundamentals, we are bullish on the long term prospects of the CV industry in general and higher penetration for CV financing in particular.
Page 31 Objectives of the Project The objective behind the research of this project is to understand the two main topics of my study i. In these two topics I will study related to history of automobile market of India, current market scenario, segments of cars, companies work in this field, market share of companies, manufacturing units in India, exports and import scheme in India.
Second topic of my project is car loan and finance. In this topic I will study related to car loan market of India, categories of auto financiers, procedure of getting a car loan, documents required for getting a car loan. This report will also give information related to current market scenario of automobile sector. Since the report is related to automobile sector it will show the growth of the company year by year and factors affecting gross domestic product GDP of country. This report will also help for making future predictions. Page 33 Chapter 2 Research Methodology Introduction The purpose behind the research of this project is to understand the two main topics of my study i.
Page 34 Literature Review PTI, June : Analyses done by Press trust of India that hiring momentum picked up pace again in May with recruitment activity growing by a moderate 2 per cent led by the automobile sector, says a report. PTI, April : Analyses done by press trust of India that the auto companies and ancillary makers are confident of posting 10 per cent rise in business, provided barriers to free movement of goods are removed, a survey said on Thursday.
Over 80 per cent of the players in the automobile industry, having units in north India, said business activities could grow by 10 per cent while 20 per cent of the respondents said business was likely to go beyond 10 per cent, a survey conducted by the PHD Chamber of Commerce and Industry said. Economic Times, April : Analyses done by Economic times that the auto companies and ancillary makers are confident of posting 10 per cent rise in business, provided barriers to free movement of goods are removed, a survey said on Thursday.
ET, bureau May : The automotive business is confused over a rule that industry executives say will make tax collection at source TCS compulsory even when someone sells a vehicle costing Rs 10 lakh or more in the second-hand market.
Unlike what was originally expected, the rule that is approved as part of the Finance Bill and will come into effect on June 1covers all types of vehicles PTI, May : Press trust of India analyses that European rival Daimler Chrysler, US- based automaker General Motors will test its advanced automobile engines on bio-diesel being developed by an Indian research institute. But then again, it's the only place for a common-sense look at that highly-strung hunk of steel. The disclaimer first: I'm not in love with automobiles, but I don't really dislike them. I just think they're basically inefficient.
I also have nothing against men. ET bureau, May : The capital will witness the country's first automobile carnival 'Auto jumble' next week, on the lines of the Beaulieu International Auto jumble held in the UK. ET intelligence group, February : The government's decision to increase minimum import price MIP of steel for the next six months will reduce the benefit of lower commodity prices for automobile companies.
However, not all of the rise will be reflected in the performance of auto players. Times News Network, October : Bangalore and Punjab have overtaken Mumbai as the fastest growing car finance markets in the country. They now share the top slot with Delhi including Gurgaon. Earlier it used to be a close contest between Mumbai and Delhi. Occupying the second rung are Kerala and Gujarat followed closely by Mumbai and Chennai.
PTI, January : Domestic brokerage Kotak Institutional Equities today launched a tool to forecast auto sales and said it is keen to introduce a broader consumer sentiment index in next one year. That's up from the range of Rs 15,, crore. Add to that another Rs crore in used car finance and the finance pie in the million year touches anywhere between Rs 20,, crore. The tie-up would focus on financing of entry level cars from Maruti portfolio, which include the M, Omni and Alto models, the company said in a statement.