...Challenges for a Tier 2 Supplier | The Indian Automotive Supply Chain Context | | | | | Contents Introduction 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 ...
Words: 5496 - Pages: 22
...THE INDIAN AUTOMOBILE SECTOR- HPL PROJECT Introduction The term automotive was created from Greek autos (self), and Latin motivus (of motion) to represent any form of self-powered vehicle. The Indian automotive industry has emerged as a 'sunrise sector' in the Indian economy. India is emerging as one of the world's fastest growing passenger car markets and second largest two wheeler manufacturer. It is also home for the largest motor cycle manufacturer and fifth largest commercial vehicle manufacturer. The automotive industry in India is one of the largest in the world and one of the fastest growing globally. India's passenger car and commercial vehicle manufacturing industry is the sixth largest in the world, with an annual production of more than 3.9 million units in 2011.[1] According to recent reports, India overtook Brazil and became the sixth largest passenger vehicle producer in the world (beating such old and new auto makers as Belgium, United Kingdom, Italy, Canada, Mexico, Russia, Spain, France, Brazil), growing 16 to 18 per cent to sell around three million units in the course of 2011-12.[2] In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand.[3] In 2010, India beat Thailand to become Asia's third largest exporter of passenger cars. As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the...
Words: 6888 - Pages: 28
...Working Paper No. 201 Determinants of Competitiveness of the Indian Auto Industry Badri Narayanan G. Pankaj Vashisht January 2008 INDIAN COUNCIL FOR RESEARCH ON INTERNATIONAL ECONOMIC RELATIONS Contents Foreword............................................................................................................................. i Executive Summary .......................................................................................................... ii 1. Literature Review ..................................................................................................... 1 1.1 Introduction......................................................................................................... 1 1.2 Literature Review................................................................................................ 2 1.2.1 Global Comparisons ................................................................................... 3 1.2.2 Policy Environment and Evolution of Indian Auto Industry....................... 4 1.2.3 Productivity................................................................................................. 7 1.2.4 Aspects Related to Supply Chain and Industrial Structure......................... 7 1.2.5 Technology and Other Aspects ................................................................. 10 1.3 Contributions of the Study ................................................................................ 13 Supply Side Features of...
Words: 11755 - Pages: 48
...company endeavors to determine the perception of customer towards the product after having used it for a certain period, this information can provide valuable information to a company to improve its product in terms of features and other attributes. This is essential because every company aims at growth and when a company is growing, simultaneously the image of the company or the brand becomes important and the image keeps on growing. When the image of the company grows, the expectations of the customer from the company also grow. After sales service consists of: • Delivery • Installation • Demonstration • Repairs • Warranty • Courteous attention towards customer complaints etc. 1.2 ABOUT AUTOMOBILE INDUSTRY Indian automobile industry has grown leaps and bounds since 1898, a time when a car had touched the Indian streets for the first time. At present it holds a promising tenth position in the entire world with being No 2 in two wheelers and No 4 in commercial vehicles. Withstanding a growth rate of 18% per annum and an annual production of more than 2...
Words: 8317 - Pages: 34
...COMPANY PROFILE | Maruti Suzuki India Limited (MSIL, formerly known as Maruti Udyog Limited) is a subsidiary of Suzuki Motor Corporation, Japan. MSIL has been the leader of the Indian car market for over two and a half decades. The company has two manufacturing facilities located at Gurgaon and Manesar, south of New Delhi, India. Both the facilities have a combined capability to produce over a 1.2 million (1,200,000) passenger car units annually. The company plans to expand its manufacturing capacity to 1.75 million by 2013. For this the company will be investing around Rs. 60 Billion (Rs 6,000 Crores) over the period till 2013. The company offers a wide range of cars across different segments. It offers 14 brands and over 150 variants - Maruti 800, people movers, Omni and Eeco, international brands Alto, Alto-K10, A-star, WagonR, Swift, Ritz and Estilo, off-roader Gypsy, SUV Grand Vitara, sedans SX4 and Swift DZire In an environment friendly initiative, in August 2010 Maruti Suzuki introduced factory fitted CNG option on 5 models across vehicle segments. These include Eeco, Alto, Estilo, Wagon R and Sx4. In fiscal 2009-10 Maruti Suzuki became the only Indian company to manufacture and sell One Million cars in a year. Maruti Suzuki has employee strength over 7,600 (as at end March 2010), In 2009-10, the company sold a record 10,18,365 vehicles including 1,47,575 units of exports. With this, at the end of March 2010, Maruti Suzuki had a market share of 53.3...
Words: 1045 - Pages: 5
...Market value The Indian new cars market grew by 40.4% in 2010 to reach a value of $48.5 billion. a compound annual growth rate (CAGR) of 23.8% between 2006 and 2010. Market value forecast In 2015, the Indian new cars market is forecast to have a value of $134.5 billion, an increase of 177.3% since 2010. Market volume The Indian new cars market grew by 29.2% in 2010 to reach a volume of 2.5 million units. Market volume forecast In 2015, the Indian new cars market is forecast to have a volume of 4.8 million units, an increase of 93.2% since 2010. Market segmentation India accounts for 10.9% of the Asia-Pacific new cars market value. Market share Maruti Suzuki is the leading player in the Indian new cars market, generating a 35.3% share of the market's volume. Market rivalry Rivalry within the new cars market has been intensified, as a consequence of recent economic turbulence and the presence of strong, international incumbents. Five Forces Analysis Buyer Power -Low switching cost -buyer power weakened as manufacturers investing in building brand image -huge number of buyer size -High price sensitive consumers -High buyer independance All these factors suggest that buyer power is moderate Supplier Power -raw materials offering low differentiation -high importance of quality of raw material (eg. in case of safety measures) can enhance supplier power -fluctuating price of raw materials (steel and aluminium) -low switching costs for raw materials ...
Words: 356 - Pages: 2
...Examen #1 1. Are the Chinese domestic vehicle producer’s strategies good enough to be implanted in another country? With this few arguments is very difficult to determine if the strategies used by the Chinese are good enough to be implemented in another country. What is true is that the automotive industry in China represents an extraordinary case of industry development. In recent years, China has become the world’s fastest growing automotive producer despite the global economic situation. the domestic Chinese auto industry has made substantial progress. Many independent domestic automotive manufacturers have emerged and have ambitions to make cars for developed countries. Although they have to overcome difficulties, such as creating their own designs and meeting world standards in terms of product quality, safety, and environmental features, the domestic manufacturers are expanding their market share and moving up the value chain. Moreover, among the leading vehicle producers, China has been the only one showing substantial and continuous growth in its production level. Apparently the quality of Chinese cars is good, because their price devaluation over the years is less than other car from another country, particularly American cars. People all over the world trust Chinese cars. With this being said, I think their strategies are good enough to be implemented in other countries. 2. What type of leader do they need to deal with such strategies? To deal with...
Words: 682 - Pages: 3
...IIM-C SMP09 Marketing Nuggets Project – SUV Market in India Success of Mahindra XUV 500 By: Amit Ahi Samir Chitkara Dr. Bhaskar Sonowal Anirban Sarkar Amit Dass J.Mohapatra Dwarka Nath Sharma Table of Contents Current market Size & key market trends 5 India’s Socio demographic profile 5 Indian Automobile Market 6 Size of Indian Automobile market 7 Key Market Trends for SUVs / Automobiles 8 Key market trends of SUVs 10 Segmentation of the market 11 Price Based Segmentation 11 Entry Level 11 Mid Segment 11 Premium Segment 11 Luxury 11 Price Wise Segmentation for Indian SUVs 12 Usage Based Segmentation 13 Off Roading: 13 Soft Roading: 13 Consumer Behavior noticed in Buying SUVs 13 Psychological factors 13 Personal Factors 14 Social Factors 14 Positioning of different brands in SUV market in India 15 Entry Level SUVs: 15 Renault Duster 15 Mahindra Scorpio 15 Tata Safari 16 Mid Segment: 16 Tata Aria 16 Force One 17 MAHINDRA XUV 500 18 Skoda Yeti 18 Ford Endevour 19 CHEVROLET Captiva 19 HONDA CRV 19 TOYOTA Fortuner 20 Key Advertising and Promotion campaigns adopted by leading brands 21 Mahindra XUV 500 21 Digital Marketing – FAce Book & Twitter 21 Launch Campaign 21 Force One 21 Big B as the Brand Ambassador 21 Toyota FORTUNER 23 Campaign Tag: “The Art of Power” 23 Toyota Fortuner Marketing Campaign: Experience the Power of Art on your Mobile 23 Results and achievements...
Words: 9485 - Pages: 38
...Term Paper Of Research Methodology (A Perspective on the Future of Small Cars in India) Submitted to: Submitted by: Ms. Kanika Jhamb Naveen Bangwal Roll no. - 05 Section – A17B2 Reg. no. -7470070078 B-Tech (h) - MBA (IT) Table of contents Abstract introduction objectives and scope of the study RESEARCH methodology literature review tata’s nano conclusion recommendations bibliography abstract A strong car brand can create significant value in the automotive industry. The price consumers expect to pay for otherwise identical luxury vehicles can vary as much as $4,000, depending on the car's brand. For mass-market cars, brand helps determine which products a consumer considers buying. Furthermore, superior brands extend their halo across every model of vehicle within the brand. It's no surprise that most auto manufacturers make brand positioning and development a key item on their marketing agenda. Because of the prominent role that brand positioning and development play in many auto manufacturers' business strategies, this research has been conducted under extensive research and analysis to better understand how consumers think about car brands. The study analyzes the set of factors which provide valuable insights into consumer brand perceptions. The...
Words: 10310 - Pages: 42
...Shanghai General Motors The Asian market has been an attractive one for global corporations for many years and of late China has been the region’s crowned jewel of multi-national companies looking to drive revenue and earnings. Therefore, it is no surprise that General Motors saw significant importance in the Chinese market in the 1990s and as such made a concerted effort to penetrate the local automobile industry. But there are several specific reasons why GM found China attractive and as such aggressively pursued. The first, obvious reason is the high population of the country that is currently underserved from an automobile perspective. The country makes up 20% of the worlds’ population but only owns 1.5% of the worlds’ vehicles. The second reason is the high profit margin expected from the market. The Chinese automobile market had an average margin of 30%, while the global auto market was only 5%. The third reason is due to the limited existing competition. There was a limited mix of providers and competitors in the market – and they were not very strong. The final reason was the way the government managed the volume of new entrants. High tariffs and close management of how international corporations could engage meant that if GM could successfully enter the market, the competition would likely be manageable. General Motors took a joint venture approach with SAIC to enter the market, for reasons of benefit as well as government requirement – the latter reason...
Words: 823 - Pages: 4
...chicken on the breast meat, and the rest of the bird is like a carcass to them. Due to environmental reasons they can’t dump it in the sea so they have to dump it somewhere. It can be any underdeveloped country, may be India! It’s wrong notion that supply of this meat to underdeveloped countries will be good for the consumers there. It is not. Can the Americans guarantee anything – how long will they be able to supply the chicken? How long will they supply subsidized eggs to such a large country? We could end up destroying our industry base and that will be very sad. As far as chicken is concerned, they can only supply the legs – they can never supply the whole bird. The white meat costs US $3 to 3.5 per pound, so it’s out of range. May be the consumer gets the advantage of subsidized supply of the white meat in the short run but over time the consumers’ interests are likely to suffer because such a supply will result only in destroying the chicken and egg industry in India. Once their surplus stock gets exhausted...
Words: 3747 - Pages: 15
...SUMMARY | | 2 | OBJECTIVE& SCOPE OF THE PROJECT | | 3 | INDUSTRY PROFILE | | 4 | COMPANY PROFILE | | 5 | THEORETICAL BACKGROUND | | 6 | RESEARCH METHODOLOGY | | 7 | DATA ANALYSIS AND INTERPRETATION | | 8 | FINDING & OBSERVATION | | 9 | LIMITATION OF THE PROJECT | | 10 | CONCLUSION & RECOMMENDATION | | 11 | BIBLIOGRAPHY | | 12 | ANNEXURE | | 1. EXECUTIVE SUMMARY Executive Summary: 2. OBJECTIVE & SCOPE OF THE PROJECT * OBJECTIVE OF THE STUDY 3.INDUSTRY PROFILE INDUSTRY PROFILE Indian Automobile Industry History and development The history of the automobile industry in India actually began about 4,000 years ago when the first wheel was used for transportation. In the early 15th century, the Portuguese arrived in China and the interaction of the two cultures led to a variety of new technologies, including the creation of a wheel that turned under its own power. By the 1600s, small steam-powered engine models were developed, but it was another century before a full-sized engine-powered automobile was created. The dream a carriage that moved on its own was realized only in the 18th century when the first car rolled on the streets. Steam, petroleum gas, electricity and petrol started to be used in these cars. On a growth path The Indian auto industry, worth US$ 34 billion in 2006, has grown at a CAGR of 14 per...
Words: 1384 - Pages: 6
...AUTOMOBILE INDUSTRY THE ROAD TO “MAKE IN INDIA” Project Report Submitted in Partial Fulfillment of the Requirements for the Degree of MASTER OF BUSINESS ADMINISTRATION By Arpit Jain (A020) Rishabh Kapur (A027) Veer Bahadur Singh (A055) Trimester-I Narsee Monjee Institute of Management Studies Mumbai - 400056 August 2015 Table of Contents Introduction 1 Protection: 1970-84 3 Liberalization: 1992-2008 4 Competition: 2009 - 2015 5 Bibliography 6 Introduction In the financial year 2013-14, Indian automobile industry produced 21.48 million vehicles. This made India the seventh-largest producer in the world. The five large auto manufacturing hubs in the country have enabled the gain in automobile production in the country. Figure [ 1 ]: India's Major Auto Hubs The automobile industry is broadly divided into four types of vehicles - 1. Passenger vehicles 2. Commercial vehicles 3. Two-wheelers 4. Three-wheelers. There are 3 regulatory bodies involved with the automobile industry in India – 1. Automotive Research Association of India (ARAI) – It carries out sponsored R&D projects and forms standards for various entities viz. the industry, Government of India and national and international agencies. 2. Society of Indian Automobile Manufacturers (SIAM) – It facilitates communication between the Automobile industry, Government, national and international organizations. 3. Automotive Component Manufacturers...
Words: 910 - Pages: 4
...rP os t H 910A01 ASIMCO TECHNOLOGIES: 2005 op yo Taehoo Kim, Liang Liu, Guangyu Nie, Wanhong Shao and Xiaotian Xie wrote this case under the supervision of Dr. Xi Liu solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Tsinghua School of Economics and Management and Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 6613208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2010, Tsinghua School of Economics and Management and Ivey Management Services Version: (A) 2010-04-27 tC In late April 2005, Jack Perkowski, chairman of ASIMCO Technologies, a company headquartered in China and supplying auto components for both Chinese and global customers, was in his office located in the bustling Chaoyang District of Beijing, pondering the next step that his company should take. Whatever the decision, it needed to be made soon, as the Chinese...
Words: 6883 - Pages: 28
...1. Suppliers– low bargaining power With the growth rate of the international auto market falling sharply, foreign dealers and component suppliers face the pressure of overstocked product. At present, China has a huge potential auto market that numerous car companies regard as the biggest overseas investment. To reduce the expense ofproduction, workforce and transport, component suppliers like Bosch and Delphi would also build production bases in China. Since 2012, Volvo has increased their procurement share in the Chinese market each year. The increasing number of suppliers allows Volvo to have more choices, and this reduce the bargaining power of Volvo’s suppliers. In order to further reduce the influence of the supplier, Volvo had built a new engine factory in Zhangjiakou. In addition, Geely has also extended their industrial chain, including car parts, transmissions and engines, Volvo can use this portion of the resources after it has been acquired by Geely. From the point of scale economy’s view, these two sources are a good way to control the cost at a low level, and also develop a sustainable advantage to weaken the supplier power. 2. Buyers - high bargaining power The arrival of the financial tsunami caused global auto market downturn. The Chinese market has begun to become the strategic focus for car companies. While the government gradually reduces the tariffs on imported parts and the appreciation of RMB currency convert reduces the cost of imports, it lowered...
Words: 807 - Pages: 4
