Indian Automobile Industry: An Investors Perspective

Abstract — The automobile industry, one of the core sectors, has undergone metamorphosis with the advent of new business and manufacturing practices in the light of liberalization and globalization. The sector seems to be optimistic of posting strong sales in the couple of years in the view of a reasonable surge in demand. The Indian automobile market is gearing towards international standards to meet the needs of the global automobile giants and become a global hub. A detailed analysis of Automobile industry has been covered under the research in respect of past growth and performance. In this context to have better understand of the Industry, Fundamental and Technical analysis tools have been used. An E.I.C (Economy, Industry, Company) approach has been followed under Fundamental Analysis. The Economy analysis covered effect of Recession, the impact of inflation, FDI’s, Export, GDP etc. The Industry Analysis has been done with the help of five forces model, BCG Matrix, SWOT analysis, industry life cycle and the industry specific index. For Company Analysis, a comparative analysis of TATA Motors (as a leading company) with Maruti Suzuki (India’s largest Car manufacturer) has been observed bases on both financial and Non-Financial aspects. In the Technical Analysis, Share price analysis, moving average, moving average crossover, Bollinger bands and M.A.C.D. of both the company have been analysed by keeping TATA Motors as the leading company under consideration