A

Summer Internship Project Report

Presentation

On

“ Ashok Leyland Ltd. ”

“ Nissan Motors Ltd. ”
“ Eicher Motors Ltd. ”
“ Mahindra and Mahindra Ltd. ” 

Guided By

Mr. Hetalgiri K Mehta

 AUTOMOTIVE INDUSTRY
HISTORY

The first automobile was invented by Nicolas Joseph Cugnot in the year 1769.
The automotive industry began in the year 1860s.
Germany was the first country to produce automobile in the year 1888.
In the terms of production united states lead the automobile industry for many
decades.
In 1929, the world had 32,028,500 automobiles in use, and the U.S. automobile
industry produced over 90% of them.
After 1945, U.S. produced about 75% of the world’s auto production.
In 1980, U.S. was overtaken by Japan and became world leader.
Japan held this rank until 2009 , when China took the spot.
In the year 2012, China manufactured 19.3 million units which was almost
double the amount of automobiles manufactured by U.S.
 Inventor Date Type/Description Country

Nicolas-Joseph Cugnot 1769 STEAM / Built the first self propelled road vehicle France
(1725-1804) (military tractor) for the French army: three
wheeled, 2.5 mph.

Robert Anderson 1832-1839 ELECTRIC / Electric carriage. Scotland

Karl Friedrich Benz (1844-1929) 1885/86 GASOLINE / Automobile powered by an Germany Patent DRP No.
internal combustion engine: three wheeled, 37435
four cycle, engine and chassis form a single
unit.

Gottlieb Wilhelm Daimler 1886 GASOLINE / First four wheeled, four-stroke Germany
(1834-1900) and Wilhelm engine- known as the “Cannstatt-Daimler.”
Maybach (1846-1929)

George Baldwin Selden 1876/95 GASOLINE / Combined internal combustion United States
(1846-1922) engine with a carriage: patent no: 549,160
(1895). Never manufactured — Selden
collected royalties.

Charles Edgar Duryea 1893 GASOLINE / First successful gas powered car: United States
(1862-1938) and his brother Frank 4hp, two-stroke motor. The Duryea brothers set
(1870-1967) up first American car manufacturing company.
 INDIAN AUTOMOBILE INDUSTRY AND MARKET

In the year 2020, India was the fifth-largest auto market, with 3.49
million units sold.
India is the 4th largest passenger vehicle producer in the world.
The industry currently manufactures 26 million vehicles including
passenger vehicles, commercial vehicles, three wheelers and two
wheelers, of which 4.7 million are exported.
In April-March 2020, overall automobile exports registered a growth of
2.95%.
India holds a strong position in the international heavy vehicle arena
as it is the largest tractor manufacturer, second largest bus
manufacturer and third largest heavy trucks manufacturer in the world.
India ranks 2nd in the global two wheeler market.
India ranks 11th in the international passenger car market.
 SWOT ANALYSIS
FOR COMPANIES IN THE AUTOMOBILE INDUSTRY

STRENGTH
▪ Evolving industry
▪ Constant production & technological advancement
▪ Manufacturing facilities in Asian nations to control cost.

WEAKNESS
▪ Bargaining power of consumers
▪ Government regulations
▪ High employee turnover
OPPORTUNITIES
▪ Fuel efficient vehicles
▪ Changing lifestyle & customer groups
▪ Market expansion

THREATS
▪ Rising competition
▪ Sluggish economy
▪ Volatility in fuel prices
 ROLE OF AUTOMOBILE INDUSTRY IN INDIA’S GDP
The Automotive sector in India is valued at $93 billion currently and is
growing at a steady pace.
The automotive industry contributes a whopping 49% of India’s
manufacturing GDP.
The Automotive Sector contributes 7.3% of India’s total Gross Domestic
  % contribution in GDP
Product (GDP). Year

2015 5.7
2016 5.8
2017 5.9
2018 6.7
2019 7.1
2020 7.35
2021 7.86
2022 8.35
2023 8.69
2024 9.12
2025 9.59
2026 9.99
 COMPANIES PROFILE

MAHINDRA & MAHINDRA

▪ Mahindra and Mahindra is an Indian multinational automobile manufacturing

corporation headquartered in Mumbai, Maharashtra, India.
▪ Market capitalization of Mahindra and Mahindra is 96,577 cr.
▪ Mahindra and Mahindra generated revenue of $ 10 billion this year.
▪ M&M serves across 100+ countries around the globe.
▪ M&M has 18 manufacturing plants across India.
▪ Mahindra and Mahindra produces SUVs, saloon cars, pickups, commercial
vehicles, and two wheeled motorcycles and tractors.
EICHER MOTORS

▪ Eicher Motors is a commercial vehicle manufacturer in India. The company's

origins date back to 1948, when Good Earth Company was established for the
distribution and service of imported tractors.
▪ Market capitalization of Eicher motors is 69,575 cr.
▪ Eicher motors has generated revenue of $ 1.5 billion in the FY2020.
▪ Eicher motors exports over 60+ countries in the world.
▪ Eicher trucks and buses commences production at 7 plant across India.
▪ VE Commercial Vehicles (VECV) Limited is a joint venture between Volvo Group
and Eicher Motors Limited (EML).
▪ VE Commercial Vehicles Ltd. (VECV) comprises of five business verticals - Eicher
Trucks and Buses, Volvo Trucks India, Eicher Engineering Components ,VE
Powertrain and Royal Enfield.
ASHOK LEYLAND

▪ Ashok Leyland is an Indian multinational automotive manufacturer, headquartered in

Chennai, Tamil Nadu, India. It is owned by the Hinduja Group. It was founded in 1948 by
Raghunandan Saran.
▪ Market capitalization of Ashok Leyland is 38,337 cr.
▪ Revenue generated by Ashok Leyland in FY2020 is U.S $ 3.1 billion.
▪ Ashok Leyland has 9 manufacturing plants across India.
▪ Ashok Leyland serves over 50+ countries around the globe.
▪ Ashok Leyland produces buses, trucks , light weight vehicles, defence, engines and
special vehicles.
NISSAN MOTORS

▪ The Nissan Motor Company is a Japanese based automaker that produces

vehicles world wide. It is currently the sixth largest automaker in the world.
▪ Market capitalisation of Nissan motors is 2,229 cr.
▪ Revenue generated by Nissan motors is U.S. $ 80.863 billion.
▪ Nissan has manufacturing plants over 22+ countries.
▪ The products of Nissan motors have been exported to 106 countries.
▪ Brand of Nissan motors are Nissan , Datsun , Infiniti.
▪ Brands under Nissan motors produces Hatchback, sedan , SUVs and MPVs.
 FINANCIAL RATIOS OF THE COMPANIES:

MAHINDRA ASHOK EICHER NISSAN

& LEYLAND MOTORS MOTORS
Sr.no RATIOS
MAHINDRA
1. Price to cash flow/ 12.65 48.99 61.75 10.7
share
2. P/E ratio 22.21 19.09 53.17 11.17

3. Return on Equity 9.65% -2.11% 12.51% -11.2%

(%)
4. Return on assets (%) 2.18% -0.17% 9.97% -2.58%

5. Revenue / share 700.95 66.76 318.99 2009.38

6. Net Profit margin 4.63% -0.63% 15.45% -5.49%

(%)
7. ROCE ratio (%) 6.25% 6.80% 31.54% 1.45%

8. Interest coverage 1.86% 0.92% 108.43% -4.51%

(%)
9. Assets turnover 0.47 049 0.65 0.47

10. Dividend yield (%) 1.12% 0.47% 0.65% 0.00%

 AUTOMOBILE PRODUCTION WORLDWIDE
to 1950: USA had produced more than 80% of motor vehicles.
1950s: UK, Germany and France restarted production.
1960s: Japan started production and increased volume through the 1980s. US,
Japan, Germany, France and UK produced about 80% of motor vehicles through the
1980s.
1990s: South Korea became a volume producer. In 2004, Korea became No. 5
passing France.
2000s: China increased its production drastically, and became the world's largest
producing country in 2009 .
2010s: India overtakes Korea, Canada, Spain to become 5th largest automobile
producer.
2013: The share of China (25.4%), India, Korea, Brazil and Mexico rose to 43%,
while the share of USA (12.7%), Japan, Germany, France and UK fell to 34%.
2018: India overtakes Germany to become 4th largest automobile producer.
WORLD MOTOR VEHICLE PRODUCTION

Production volume (1000 vehicles)

 EXPORTS OF AUTOMOBILES FROM INDIA
At the end of the fiscal year 2021, more than three million two wheelers were exported
from India. After a long period of two- digit growth figures, this is a minor increase
compared to the previous year. Passenger vehicles, commercial vehicles, quadricycles
and three wheelers experienced a decline in exports. The major reason for a decline in
exports appears to be the impact of the coronavirus pandemic especially on
the automotive market.
 CAR MANUFACTURER
List of the 15 largest publicly-traded car manufacturers by market
capitalization.
Rank Group Reg. base
Market cap ( US
dollars)
1 Tesla United States $568.11 billion
2 Toyota Japan $214.79 billion
3 Volkswagen Germany $146.78 billion
4 Daimler Germany $95.59 billion
5 General Motors United States $81.23 billion
6 BMW Germany $65.82 billion
7 BYD China $62.45 billion
8 Stellantis Netherlands $56.70 billion
9 Volvo Sweden $56.43 billion
10 NIO China $54.75 billion
11 Hyundai South Korea $52.98 billion
12 Honda Japan $51.41 billion
13 Ferrari Italy $49.10 billion
14 Ford United States $47.26 billion
15 Great Wall Motors China $37.10 billion
 List of the 10 largest publicly-traded car manufacturers by
Revenue 
Top 10 largest motor vehicle manufacturers by revenue (2020)
Rank Group Country Revenue (USD)
1 Volkswagen Germany $260.31 B
2 Toyota Japan $255.99 B
3 Daimler Germany $186.66 B
4 Ford United States $127.14 B
5 Honda Japan $125.03 B
6 General Motors United States $122.84 B
7 BMW Germany $119.09 B
8 Stellantis Netherlands $104.84 B
9 Hyundai South Korea $94.40 B
10 Nissan Japan $73.92 B
Recommendations :-

Mahindra & Mahindra should look after its over dependency upon Indian
market as more than 60 % of its revenue comes from Indian market. this
geographic dependency can affect the business in case of high inflation or
economic slowdown.

Mahindra should look towards future opportunities as there is increasing

demand in hybrid electric vehicle market , M & M should work towards it
and should produce HEVs.

Nissan motors must work towards its product recall issue as they have to
recalled many of their products due some sort of manufacturing errors,
product recalls affect the brand image and moreover it cost people trust on
the brand.
Nissan slipped 10 places in the Brand Finance report. This slip in the brand
value accounted to $300 million. This is a huge problem for them. Nissan must
work towards uplifting its brand value in the market.

Ashok Leyland is heavily dependent of domestic market as more of its revenue

is generated from domestic market, which makes its vulnerable to any political
or economic changes. competitors of Ashok Leyland gets advantage who works
on wider geographical base.

VEVC of Volvo and Eicher must work toward their brand image as its declining
due to products recall,  Volvo has had to recall many products in the recent
past which creates a dent on the brand image of Volvo.