...Auto Component Industry in India: Growing Capabilities & Strengths Agenda • India: A Vibrant Economy • Automotive Industry in India • Auto Component Industry in India • Policy Environment • Capabilities & Challenges • The Way Forward • About ACMA 2 India: A Vibrant Economy 3 India: A Vibrant Economy 1. Largest Democracy – 1.2 billion people, Growing Middle Class 2. 4th largest GDP (PPP) and 10th largest GDP (Nominal, USD 1.8 trillion) 3. One of the fastest growing economies • • India’s average GDP growth rate: 8.4% over past 5 years Expected to outpace China in the next decade 4. 3rd Largest Investor base in the World 5. Robust Legal and Banking Infrastructure 6. Demographics Advantage – Youth driven economy 7. Suburbanization & Rural to Urban Migration – 140 million by 2020; 700 million by 2050 8. 2nd largest pool of Certified Professionals and highest number of Qualified Engineers in the world 9. Investment in Infrastructure 4 Automotive Industry in India 5 Automotive Clusters in India Eicher Escorts Hero Moto Corp Honda Motorcycle Honda SIELCars ICML JCB Maruti Suzuki New Holland Mahindra Suzuki Motorcycles Swaraj Mazda Tata Motors Yamaha North *New Hub: Sanand Tata Motors, Maruti, Ford India, Hindustan Motors Tata Motors East West Bajaj Auto Fiat Force Motors GM John Deere Mahindra Mahindra Navistar Man Force Mercedes Benz PSA Skoda Tata Hitachi Tata Motors Volkswagen Volvo Eicher Ashok Leyland BMW Caterpillar South Daimler...
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...Assessing the Environment In The US Automobile Industry US automobile industry started booming after the recession and became an important part of the US economy. Low interest rate, cheap gas price, and new technologies of car influence buyers to get a new car. The US automobile industry consists of almost 200 companies and their annual revenue is about 280 billion (Automobile Manufacturing, n.d.). Last year US automobile industry sold record 17.5 million cars and trucks, which is a 5.7% increase from 2014 fiscal year (Spector, Bennett, & Stoll, 2016). The top four US automobile manufacturers are General motors, Toyota, Ford, and Chrysler, who account for about 70% of the total automobile sales. US based automakers face rivalry problems with foreign companies such as Toyota, Honda, and Nissan because of their cheap labor cost and no union problem. However, these companies also have their assembly lines in US, and hold around 45% of the US auto industry. US automakers are also taking advantage of NAFTA by assembling autoes in Mexico and Canada with lower labor costs (Automobile Manufacturing, n.d.). Usually 75% of the materials account for the selling price of a US made car. US companies have also increased importation of parts from abroad which helps them increase their profitability. Features like extended warranty, extended service plan, safety features, and fuel efficiency help attract consumers and increase sales. US retail sales have increased 7.00%...
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...Business Plan Company Name : Quick and Dirty Auto Repair (QDAR) Register number : 001505332-W Company address: Taman Puncak jalil Bandar Putra Permai 43300 Seri Kembangan Selangor Directors: Muhammad Ikmal bin Mahzan Khairulnizam Bin Shamsudin Kamarulzaman Mohd Ariffin. Khairulnizam Phone Number: 03 89990334 ________________________________________ Legal Page Confidentiality Agreement The undersigned reader acknowledges that the information provided by _______________ in this business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of _______________. It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to _______________________________________________________. Upon request, this document is to be immediately returned to _______________. ___________________ Signature ___________________ Name ___________________ Date This is a business plan. It does not imply an offering of securities. Table of Contents 1.0 Executive Summary a. Graph: Highlight 1.1 Mission 1.2 Keys to Success 2.0 Company Summary 2.1 Company Ownership 2.2 Start-up Summary a. Table: Start-up Requirements b. Table:...
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...design, collecting data, providing analysis of the data, and revising the theory upon results. This paper will develop a research design behind the auto industry bailout and identify a sample design used for collecting data. Organizational Dilemma What was the ultimate cause of the downfall of the auto industry resulting in a bailout? This research question arising from the dilemma in the auto industry is one that many American’s found him or herself asking after the government decided to bail them out of their financial crisis. In 2008, the auto industry found itself in a downward financial spiral. Gas prices reached over $4 a gallon and the credit debacle is only a couple of reasons for the dilemma the auto industry faced. The country was facing a recession and they blame up-and-coming technologies of distracting technologies to validate and continue the old routine and procedure to fill their pockets with money and bonuses to retain the status quo in the industry without any regard to others affected, even if this method compromises their long-term strategy. Roche (2009), “This qualifies as failed management syndrome because they consider themselves royalty and a class above the rest of us. They must go to make way for a new strategic management/leadership team. It is time to stop incompetence, manipulation, and the culture of greed” (Automobile Industry Dilemma). Research Design To research the cause behind the auto industry downfall it is important to gear the...
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...INTRODUCTION: Fundamental analysis of a business involves analysing its financial statements and health, its management and competitive advantages, and its competitors and markets. Fundamental analysis includes the economic analysis, industry analysis and the company analysis. There are certain factors that are to be considered while doing the fundamental analysis and it includes Financials of the company It involves the study of financial health of the company using the various financial reports, like the profit and loss account, the balance sheet, and the cash flow statements. State and direction of domestic economy This is a study of the country’s economy in which the company operates. If the economy is growing fast, the probability of the company growing fast is greater. Similarly, if the economy is facing a slow growth, the chances of the company growing fast are lesser. Currency & commodity price movements Most companies use commodities like coal, metals and crude oil as their inputs. Any change in the price of these commodities has an implication on the profitability of the company. Similarly, any change in the exchange rate of currencies also has an impact on companies that import their raw materials or export their products. Interest rate movements Companies borrow money to invest for their expansions. Also, consumers borrow money to buy products. Thus, if the interest rates are high, the borrowing cost of the companies would increase. Also, consumers would...
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...4 A Brief History of Indian Auto Sector 4 The Present Scenario 5 Indian Automotive Industry Supply Chain 6 Characteristics of the Auto Supply Chain 8 Tiered Structure 8 Linkage of Suppliers and OEMs 9 Supplier Power – An Industry Level Analysis 10 Clustered Development 11 Financial Position of the Suppliers 12 Supply Chain Challenges in the Auto Industry 13 SM Auto Stamping Pvt. Ltd – An Introduction 13 Products Manufactured 14 Quality Systems 14 Manufacturing Process 15 Challenges and Opportunities 15 Scheduling and Production 15 Variety and Performance 17 Procurement 18 Pricing and Costing 19 Cyclical Nature of the Industry 20 Solutions 20 Data Analysis 21 Conclusion - Creating a Win-Win Strategy 23 References 25 Appendix I 26 List of Figures Figure 1 – Automobile Market in India 6 Figure 2 – Global growth of the automobile market 7 Figure 3 – Turnover contribution of different components 7 Figure 4 – Automobile supply chain 9 Figure 5 – Automobile and auto component industry growth rates 10 Figure 6 – Strategic analysis of supplier industry 11 Figure 7 – Suppliers in India 12 Figure 8 – Margin trends 12 Figure 9 – Manufacturing flow process for SM Auto 15 Figure 10 – Scheduling Plan 16 Figure 11 – Various manufactured components 17 Figure 12 – Suppliers in India 19 Figure 13 – Demand and Capacity trends 20 Figure 14 – CIP and Poor cost quality trends for SM Auto 21 Introduction The automotive...
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...INTRODUCTION General Motors Corporation, an American leading multinational auto manufacturing company was founded in 1908 in Flint, Michigan, and is commonly known as GM. They have the biggest number of employees in the world. They produce many brands of vehicles like Chevrolet, GMC, Buick, Cadillac, and Isuzu. Since GM has been a dominant force in the auto industry, we will list a SWOT analysis. A SWOT analysis is an acronym that stands for Strengths, Weaknesses, Opportunities, and Threats. Mangers often use this analysis to create a company’s strategic position. STHRENGHTS GM is one of the most respected companies in the world and is the market leader in the world auto industry. It has assembly, manufacturing, and distribution in 55 other countries. This is one of the strengths for GM. It has already established itself as a business and world leader in the auto industry. Another strength GM has is its innovation and strategic marketing. Since GM has a good market reputation, it has acquired about 30% of the world’s auto market. Through improvement, GM has placed many new brands in the market. This has been done by investing in new technology and therefore has provided growth in the market. GM has also maintained a strong management team with a strong management structure. This has ensured standardization of operations through all departments. They also have in effective corporate organization. They ensure the disclosure on the performance of the corporation...
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...Interim report Business Case Auto Ancillary - Manufacturing & Selling Team : Section : B Course : Business Plan Program : e PGP3 Group Members : Anil Kumar. K. J. (ePGP-03-098). Ashwin Shankar (ePGP-03-107) Habeebu Rahman.T.S. (ePGP-03-118) Makesh.A. (ePGP-03-128) Platform Slide No:3 About the Industry The Indian auto component industry has been navigating through a period of rapid changes with great élan. Driven by global competition and the recent shift in focus of global automobile manufacturers, business rules are changing and liberalization has had sweeping ramifications for the industry. The global auto components industry is estimated at US$1.2 trillion. The Indian auto component sector has been growing at 20% per annum since 2000 and is projected to maintain the high-growth phase of 15-20% till 2015. Slide No:4 Product / Service In addition to meeting the transportation needs, the safety is also prime importance in the automotive. Analysis of the market indicated that there are very few players in the product category which is safety critical in nature. Hence it is decided to venture in to steering products, which is one of the safety critical part. The plan is to create the full infrastructure (such as building etc.) facilities, but create the capacity in phased manner, based on growth of the business volume. Slide No:5 The Market : The Indian auto component market is extensive...
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...The Automotive Industry Recovery Prepared for: Transmittal Letter TO: FROM: DATE: SUBJECT: Report Overview The following report discusses the automotive industry recover from the “Great Recession” that occurred in 2008/2009. Information presented will be the state of the automotive industry before the recession, after the recession, how the industry is doing now and how the future looks for automakers. Contents The Automotive Industry Recovery 1 Transmittal Letter ii Contents iii Figures iii Executive Summary iv Introduction 1 Finding 1 Pre-Recession 1 Post Recession 2 How is it now? 3 The Future Outlook 3 Analysis 3 Summary 3 Conclusions 4 Reference 5 Figures Figure 1, Annual Auto Sales in the U.S. 2 Executive Summary The Automotive Industry was hit hard by the “Great Recession”. Jobs and sales declined rapidly as the economy and Americans were coming up short financially. After a couple years and some restructuring the automotive industry started making a comeback. Increasing sales by focusing on consumer needs helped bring workers back to work. Now the industry is booming again with continued growth in the future. The Automotive Industry Recovery INTRODUCTION PURPOSE The nationwide effect from the Great Recession on the auto industry was apparent everywhere. With the bail-outs of some of the big auto makers and loss of jobs, the economy really went into a slump...
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...INTRODUCTION The popular saying that goes, 'no man is an island', does not only apply to humans but can also be attributed to the business world. In order to remain active and competitive, an organisation needs to take into account, not only internal processes but also look into consideration its external environment. Factors such as competitors,new rules and regulations,changing marketplace, changing workforce and other related factors that have direct impact on the existence of the business must be seen as a crucial factor to the organisation. A business environment encompasses those factors outside the normal business activities of an organisation but directly affects its decisions and is uncontrollable by the organisation. A change in consumer's taste will likely result in a shift in demand of a product such as fashion. IMPORTANCE OF BUSINESS ENVIRONMENT The importance of analysing an organisation's business environment cannot be more emphasized. Most businesses operate in an environment and whatever occurs in that environment also affect the business. The major importance can be seen in the following : 1. Detection of opportunities and threats: A business that is able to identify potential opportunities will normally have the upper hand as being the first mover and early detection of threats will act as a warning signal of dangers ahead. 2. Coping with changes: With huge changes occurring in the society, there is need for business managers to be aware of...
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...JOHNSON & WALES UNIVERSITY Providence, Rhode Island ENVIRONMENTAL ANALYSIS: Automobile insurance Industry Course: MGMT 6800 Yimeng Zhang October 4, 2014 Automobile insurance Industry- Environmental Analysis The motor vehicle insurance, refers to a kind of commercial insurance that offer liable for compensation to life or personal injury or property damage caused by motor vehicles due to natural disasters or accidents. Car insurance is a kind of property insurance. In the field of property insurance, motor insurance belongs to the young categories of insurance. This is because the car insurance comes and develops with the emergence and popularity of the car and. 1. Strategically Relevant Factors in the Macro-Environment-PESTEL Analysis PESTEL analysis focuses on the six principal components of strategic significance in the macro-environment: political factors, economic conditions, sociocultural forces, technological factors, (natural) environmental forces, and legal/regulatory factors. These are the significance factors of one industry varies and management will focus primarily on those with the greatest effect on their company. The most important factor in the vehicle insurance industry is Economic Factors. a. Political and legal factors The Automobile Insurance industry does not receive any direct assistance from the federal government in the form of tariffs. However, the National Association of Insurance Commissioners (NAIC) provides a forum...
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...To: Harold Bashor From: Swarna Sub: PESTEL Analysis on Auto Mobile Industry Date: 04/06/2014 Business Brief The auto industry is a leading driver of global economic growth; the industry is a leading employer throughout the world, with 9 million people involved in making 60 million vehicles, or 5% of global manufacturing jobs. Indirect employment from automotive activity is fivefold, representing 50 million jobs connected indirectly to the auto industry. Other industries involved in the manufacture and service of vehicles include textiles, plastics, iron, steel, glass, aluminum, computer chips and rubber. The industry also involves significant research and development activity, representing investment of nearly $85 billion. It is estimated that the manufacture of vehicles contributes more than $430 billion to the governments of 26 countries combined. Automobile are primarily used to transportation and changed the world during 20th century particular in developed nations like USA and other developing nations like India, China markets. The automobile industry has succeeded like never before in the recent years but also seen major setback in global recession. This extraordinary growth that the automobile industry has witnessed is a result of a three major factors namely, increased average income of a per person, life style and innovation. Moreover in countries like India the liberalization steps, such as, relaxation of the foreign exchange and equity regulation, reduction...
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...Recession on the Auto Industry Submitted by Luis A. Castro Prepared for Professor John Machnic BUSN 6120, Managerial Economics Summer 1, 2012 Section: OE Webster University July 24, 2012 CERTIFICATE OF AUTHORSHIP: I, Luis A. Castro, certify that I am the author. I have cited all sources from which I used data, ideas, or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course. ____________ 07/24/2012 Signature Date Introduction The automotive industry in the United States is a key factor in economic growth because of the significant impacts on all major industries and cultures. Automotive industry is one of the largest industries in the United States. Historically, it has helped 3 to 3.5 percent of gross domestic product (GDP). It directly employs more than 1.7 million people who are involved in the design, manufacture and distribution of parts, components to install, sell and service the components. The industry of auto uses $16 to $18 billion annually for the research and development of the products. By excluding the automotive sector, it is difficult to determine the effects of global recession with in United States (Gereffi, 2005). Recently, if the analysis is done it can be clearly seen that the automotive industry has fallen on hard times. However, the U.S. continues to be one of the largest car industries in the world...
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............................................................................................................... 7 Start-up Summary ......................................................................................................................................... 7 Start-up ..................................................................................................................................................... 7 Start-up Funding ....................................................................................................................................... 8 Products and Services ................................................................................................................................. 10 Market Analysis Summary .......................................................................................................................... 10 Market Segmentation ............................................................................................................................. 10...
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...A PROJECT REPORT ON “COMPARITIVE FINANCIAL STUDY OF TOP THREE TWO WHEELER COMPANIES” FOR HEROHONDA, BAJAJAUTO, TVSMOTOR. SUBMITTED TO TILAK MAHARASHTRA UNIVERSITY IN PARTIAL FULFILLMENT OF 2 YEARS FULL TIME COURSE MASTER OF BUSINESS ADMINISTRATION (MBA) Submitted By: IRFANHUSEN BHORANIA (Batch 2008-10) Guided By: Prof.R.GANESHAN 1 MAHARASHTRA COSMOPOLITAN EDUCATION SOCIETY’S PAI INTERNATIONAL CENTRE FOR MANAGEMENT EXCELLENCE CAMP PUNE-411001 CERTIFICATE This is certify that BHORANIA IRFANHUSEN student of PAI international centre for management excellence, Maharashtra Cosmopolitan Education society, Pune has completed his field work report on the topic of COMPARATIVE FINANCIAL STUDY OF TOP THREE TWO WHEELER COMPANIES and has submitted the field work report in partial fulfillment of MBA of the college for the academic year 2008-2010. He has worked under our guidance and direction. The said report is based on bonafide information. Project guide name Prof. R Ganesan Designation Director 2 PAI INTERNATIONAL CENTRE FOR MANAGEMENT EXCELLENCE Maharashtra Cosmopolitan Education Society DECLARATION I hereby declare that the project titled “COMPARATIVE FINANCIAL STUDY OF TOP THREE TWO WHEELER COMPANIES” is an original piece of research work carried out by me under the guidance and supervision of Prof.R.GANESHAN. The information has been collected from genuine & authentic sources. The work has been submitted in partial fulfilment of the requirement...
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