Industry Analysis

Project analysis slide 2

Overview SWOT Analysis

Automobile
Porter’s Five Forces Trend and Forecasts
Dealers

PESTLE Analysis Sales

1
Automobile sector

Two wheelers Three wheelers Passenger vehicles Commercial vehicles

Mopeds and electric scooters Passenger carriers Passenger cars Light commercial vehicles
Scooters Goods carriers Utility vehicles Medium & heavy commercial
Motorcycles Multipurpose vehicles vehicles

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 Automobile Industry

India - Auto sales and forecast

• Largest automotive industry by volume in the 9 15.00%

world by 2026 8
10.00%
7
• Million Automotive market by 2026
6 5.00%

(PV+CV+2wheelers) 5
0.00%
4

• World’s third-largest passenger-vehicle market 3 -5.00%

by 2026 – McKinsey report 2

-10.00%
1

• Presence of established domestic and 0 -15.00%

2017 2018 2019 2020f 2021f 2022f 2023f 2024f 2025f 2026f 2027f 2028f

international OEMs Vehicle sales (mn) Vehicle sales (%yoy)

3
Automobile dealers
• Link between the large automobile manufacturers and the end consumers
• Facilitate the customers’ requirements
• Sales of vehicles
• Replacement parts
• Complete bundle of services
• The sales patterns of highly competitive dealership industry:
• Financial health of consumers
• Economic conditions of the country
• Auto industry popularity of vehicle models
• The industry is ever growing (sales in 2018-2019 as compared to 2017-2018):
• Passenger vehicles increasing by 2.7%
• Three-wheelers by 10.27%
• Two-wheelers by 4.86%

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 Car Segments
• Increase of retailers in this segment with lot of forward and backward
integration happening

• More sales loss by online platform-based competitors

New car segment
• Big Boy Toyz – New showroom is coming up in Hyderabad with
• Every year, car makers are rolling out new models
high end models like Fiat, Range Rover
• India is the fastest growing automotive markets globally
• Key growth drivers of the market is the revision of the GST rate on
• SAIC entry with MG SUV Hector – June 2019
used cars from 28% to 12-18%
• KIA – 5 seater SUV will challenge Hyundai Creta
• Dominant players: OLX, Mahindra First Choice Wheels, Cars24,
• Talwar group – Talwar Hyundai is the biggest competitor in
Maruti True Value, Hyundai H Promise Hyderabad
• Expected 30-40% growth in year on year, as owners of the luxury
cars usually sell off their vehicles after a year or two years

• Majority buyers of these vehicles are from Tier-1 and Tier-2 cities

Used car segment

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 Used car market
• Increase of retailers in this segment with lot of forward and
backward integration happening

• More sales loss by online platform-based competitors

• Big Boy Toyz – New showroom is coming up in Hyderabad with

high end models like Fiat, Range Rover

• Key growth drivers of the market is the revision of the GST rate
on used cars from 28% to 12-18%

• Dominant players: OLX, Mahindra First Choice Wheels, Cars24,

Maruti True Value, Hyundai H Promise

• Expected 30-40% growth in year on year, as owners of the luxury

cars usually sell off their vehicles after a year or two years

• Majority buyers of these vehicles are from Tier-1 and Tier-2 cities.

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 Passenger Vehicles:

Domestic Sales

Segment growth
Commercial Vehicles:

Domestic Sales

Segment growth
 2-wheeler Vehicles:

Domestic Sales

Segment growth
Segments
Passenger Vehicle market
7 15.00%
Commercial vehicle market
6 10.00%

5
5.00%
4
0.00%
Consumer vehicle market
3 2,500,000 25.00%
-5.00%
2 20.00%
2,000,000
1 -10.00% 15.00%

1,500,000
0 -15.00% 10.00%
2017 2018 2019 2020f 2021f 2022f 2023f 2024f 2025f 2026f 2027f 2028f
5.00%
1,000,000
Vehicle sales (mn) Vehicle sales (%yoy)
0.00%
500,000
-5.00%

0 -10.00%
2019 2020f 2021f 2022f 2023f 2024f 2025f 2026f 2027f 2028f

Passenger vehicle market Vehicle sales (mn) Vehicle sales (%yoy)

10