If the business is all about finding or creating a customer, Indian Inc started developing a nodding acquaintance with this idea only around the1990s. In the last five years though the learning process has accelerated as competition intensified and the customer started slipping away from the manufacturers. And these things made manufacturers to develop new products and giving new technology to the customers. Once up on a time purchasing a car is only meant an Ambassador or Maruti. But in the current scenario it is totally changed. This extra- ordinary growth that the Indian automotive industry has witnessed is a result of a two major factors namely, the improvement in the living standards of the middle class, and an increase in their disposable incomes.
The far-reaching economic reforms undertaken since 1991 have unleashed the growth potential of the Indian economy. A series of "Second Generation Reforms" aimed at deregulating the country and stimulating foreign investment have moved India firmly into the front ranks of the rapidly growing Asia Pacific region. The automobile sector comprises of all vehicles, including 2-3 wheelers, passenger cars and multi-utility vehicles, light and heavy commercial vehicles, and the allied engineering sector comprises largely of the auto components sector. Agricultural tractors and Earth Moving Machinery is an associated sector, which keeps the wheels of the agrarian economy moving. It is heavily reliant and aligned to the automobile and allied engineering sector and plays a significant role in India. The Automobile and Allied Engineering Industry may alternatively be termed the automotive industry.
[...] Compared to the rates in 1996 when interest on car loan was over 30 percent, the present figure is less than half of this figure. According to the survey conducted by the banks and financial institutions about 75 percentages of the customers gone for loan facility. Interest on car is in range of 7.5 to 10 percent. In order to capture more customers, ICICI Bank the market leader of the auto finance business has also explanted its reach into small cities and towns. [...]
[...] SKODA AUTO INDIA Skoda Auto set foot in India with the launch of Octavia in Delhi and Mumbai on 16th November 2001.Skoda Auto had a very practical approach starting with test marketing in Delhi and Mumbai and is expanding rapidly with 3 facilities across the country. Skoda Auto has made sure of having well qualified and fully trained personnel at the dealerships to cater to the ever growing car population and to support the technology introduced. Currently they have nine luxury models and 47 dealers. [...]
[...] Ratios can be classified, for purpose of exposition into three broad groups: 1 Liquidity ratios 2 Profitability ratios 3 Ownership ratios Ratio analysis is an important method of financial analysis because a meaningful analysis of financial statement depends on the study of the relationship among various items of the statement, and the relationship of one item to another can easily be expressed as a ratio. LIQUIDITY RATIO The liquidity ration measures a firm's ability to pay its debts in the short run. [...]
[...] PRINCIPAL ACCOUNTING POLICIES FOLLOWED BY THE COMPANY The following are the accounting policies which were followed by the company in the preparation of Financial Statement General The accompanying financial statement has been prepared on the historical cost basis and confirm to the statutory provision and practices prevailing in India. The accounts are prepared on accrual basis Fixed assets All fixed assets are valued at cost less accumulate depreciation. All expenses directly attributable in bringing the assets to their working condition are added to the cost of the fixed asset. [...]
[...] INDIAN CAR INDUSTRY The automobile business is evolving rapidly on a worldwide basis. Car and parts manufacturers are merging, component design and manufacture are now frequently outsourced instead of being created in-house, brands are changing and the giant automobile companies are expanding deeper into providing financial services to car buyers. Meanwhile, all of the biggest, most successful automobile industry firms have become totally global in nature. Globalization is in evidence throughout the automobile industry. On the car dealership side, giant, nationwide holding companies have acquired the best dealers in major markets. [...]
APA Style reference
For your bibliographyOnline reading
with our online readerContent validated
by our reading committee
