Automobile Industry, Indian Automobile Companies - IBEF (2023)

FAQs

Who are the top 5 automobile manufacturers in India? ›

Around Chennai is the southernmost and largest, with a 35% revenue share, accounting for 60% of the country's automotive exports, and home of the operations of Heavy Vehicles Factory, Engine Factory Avadi, Ford, Hyundai, Renault, Mitsubishi, Nissan, BMW, Hindustan Motors, Daimler, Caparo, Mini, Citroën and Datsun.

A good rule of thumb is that a ROCE of 15% or more is reflective of a decent quality business and this is almost certain to mean it is generating a return well above its WACC. A ROCE is made up of two parts – the return and the capital employed.

India's Automotive Market was valued at USD 100 billion in 2021 and is expected to reach USD 160 billion in 2027, registering a compounded annual growth rate (CAGR) of 8.1% over the forecast period (2022-2027).

Maruti Suzuki is the No. 1 car company in India in terms of market share. Occupying almost 49% of the country's passenger car market, Maruti Suzuki is well-loved and respected throughout the country for its efficient, frugal, and affordable vehicles.

Chennai is nicknamed the "Detroit of Asia" due to the presence of major automobile manufacturing units and allied industries around the city.

China is the largest automobile market worldwide, both in terms of demand and supply. China's automobile registrations climbed to approximately 21.1 million units in 2020, representing a rise of around 6.6 percent.

A ROCE of at least 20% is usually a good sign that the company is in a good financial position. But keep in mind that you shouldn't compare the ROCE ratios of companies in different industries.

A low ROCE indicates that a company is not generating a high return on the investment and is likely to be a not a good investment.

Which is better ROE or ROCE? ›

While ROE uses the overall accounting profits in relation to shareholders' funds (net income and total equity), ROCE is considered a superior measure due to its focus on operating profits and overall assets, both debt and equity.

Opportunities in the automotive industry seem nearly endless. However, two key trends are set to further push the automotive industry forward in the long run: electrification and connectivity. These trends are mainly driven by policy changes and technology.

A host of factors are challenging the growth rate of the Indian automotive sector, like the new environmental safety regulations, fuel price hikes, liquidity crunch, amongst others. Some of the most crucial issues that all automobile manufacturers are currently facing include: Global Shortage Of Semiconductors.

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1. Maruti Suzuki Alto. Maruti Suzuki's entry-level hatchback has made a return to the top spot with 24,844 units sold in September. The launch of the Alto K10 with a new exterior and interior design as well as the fuel efficient 1.0-litre engine has been a major boost.

Best cities to live in India: Mumbai

Mumbai is renowned for several nicknames, including 'The Dream City,' 'Land of Bollywood,' 'Financial Capital of India,' and many more. This city is known as both the commerce and entertainment hub of India.

Which state has highest car in India? ›

Then came Henry Ford and the automobile: together, they launched Detroit onto a hundred-year trajectory of first astonishing rise and then equally stupendous decline. But Detroit's arc is not a purely American story.

What is a good return on equity? While average ratios, as well as those considered “good” and “bad”, can vary substantially from sector to sector, a return on equity ratio of 15% to 20% is usually considered good. At 5%, the ratio would be considered low.

What is a Good Profit Margin? You may be asking yourself, “what is a good profit margin?” A good margin will vary considerably by industry, but as a general rule of thumb, a 10% net profit margin is considered average, a 20% margin is considered high (or “good”), and a 5% margin is low.

Return on Capital Employed

ROE considers profits generated on shareholders' equity, but ROCE is the primary measure of how efficiently a company utilizes all available capital to generate additional profits. It can be more closely analyzed with ROE by substituting net income for EBIT in the calculation for ROCE.

Key Takeaways. Return on equity (ROE) is measured as net income divided by shareholders' equity. When a company incurs a loss, hence no net income, return on equity is negative. A negative ROE is not necessarily bad, mainly when costs are a result of improving the business, such as through restructuring.

What is a high ROCE value? ›

A high ROCE value indicates that a larger chunk of profits can be invested back into the company for the benefit of shareholders. The reinvested capital is employed again at a higher rate of return, which helps produce higher earnings-per-share growth. A high ROCE is, therefore, a sign of a successful growth company.

ROCE can be calculated by dividing earnings before interest and taxes (EBIT) by capital employed. It can also be calculated by dividing EBIT by the difference between total assets and current liabilities.

Return on equity (ROE) is the measure of a company's net income divided by its shareholders' equity. ROE is a gauge of a corporation's profitability and how efficiently it generates those profits. The higher the ROE, the better a company is at converting its equity financing into profits.

The return on capital employed shows how much operating income is generated for each dollar of capital invested. A higher ROCE is always more favorable, as it indicates that more profits are generated per dollar of capital employed.

The automobile engineer scope is vast, one can work in service stations, automobile manufacturing industries, private companies, state or government transport production plants etc.

Currently, the automobile industry contributes 7.1% of India's GDP and 49% of its manufacturing GDP. The EV market is expected to grow at CAGR of 49% between 2022-2030 and is expected to hit 10 mn-unit annual sales by 2030. The EV industry will create 50 mn direct and indirect jobs by 2030.

(iii) Other major components include engine, transmission system, front and rear axle, steering system, suspension system, wheels, tyres and brakes.

The major systems of an automobile are the engine, fuel system, exhaust system, cooling system, lubrication system, electrical system, transmission, and the chassis. The chassis includes the wheels and tires, the brakes, the suspension system, and the body.

What are top 5 most common automobile problems? ›

Supply chain disruptions

It takes around 15,000 to 25,000 individual parts to create a vehicle. And every single part must come together at the right time. With over 32.7 million cars on UK roads, each one has required meticulous planning, organisation, production engineering, and manufacturing to bring together.

The modern negative consequences of heavy automotive use include the use of non-renewable fuels, a dramatic increase in the rate of accidental death, the disconnection of local community, the decrease of local economy, the rise in obesity and cardiovascular diseases, the emission of air and noise pollution, the ...

1 SUV maker.

While India's largest carmaker, Maruti Suzuki, leads the race, Hyundai Motor India came at a distant second closely followed by Tata Motors. Mahindra and Kia bagged fourth and fifth positions respectively. Maruti Suzuki sold 1,34,166 units in the domestic market in August 2022, registering a 30 per cent YoY growth.

The correct answer is Hindustan 10. Hindustan Motors manufactured the Hindustan 10 (or the Morris 10) in association with Nuffield of United Kingdom. Ghanshyamdas Birla in 1942 incorporated the first HM plant at Okha, Gujarat.

Chennai is nicknamed the "Detroit of Asia" due to the presence of major automobile manufacturing units and allied industries around the city.

In the mass market, Toyota is undoubtedly the most popular car brand in the United States, followed by Honda, Chevrolet, and Ford. Mercedes-Benz is the most popular luxury car brand. Mercedes-Benz is described by fans as Reliable, Well made, Good quality, Expensive and Luxurious.

Who is SUV king in India? ›

The 2022 Maruti Suzuki Brezza recently received its long overdue update offering consumers modern looks and features. In September 2022, the Indian automaker sold 15,445 units of Brezza, making it the best-selling SUV.

Among passenger vehicles, Maruti Suzuki, followed by Hyundai, had the largest share of the market in financial year 2021. Maruti Suzuki's best-selling models include the Swift, Dzire, Wagon and the Baleno. Maruti also sold around19 thousand Swift cars in February 2022.