Msil Essay

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AUTOMOBILE SECTOR 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 seventh largest in the world, with an annual production of more than 3.7 million units in 2010. According to recent reports, India is set to overtake Brazil to become the sixth largest passenger vehicle producer in the world, growing 16-18 per cent to sell around three million units in the course of 2011-12. 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. The automobiles sector in India is a highly vibrant sector which includes segments like passenger cars, two wheelers, three wheelers and commercial vehicles performing very well due to growth in India's economy. Major players include Maruti Suzuki, Tata Motors, Mahindra and Mahindra, Hero Honda, Bajaj Auto, Ashok Leyland. Parameter | TATA MOTORS | Mahindra & Mahindra | Maruti Suzuki | Market Cap | 86,939.40 | 45,962.54 | 38,182.22 | Sales | 1,23,133.30 | 31,158.47 | 36,811.70 | Net Profit | 9,064.77 | 3,041.15 | 2,344.13 | Total Asset | 48,917.13 | 35,974.51 | 14,762.90 | What Affects the Industry? Demand Favourable demographics and rising incomes of a country provide a boost to the automobile sector due to more demand for cars and two wheelers in particular which are discretionary goods. However when inflation rises and there is upward pressure on interest rates there is cyclical trough in sales of

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