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SWOT- Analysis of Automotive
STRENGTHS

1. Indian Automobile Industry is globally cost competitive: It is possible because of cheap labor availability and tax holidays provided by SEZs.

2. Government support: Indian government has also put Auto among its priorities 12 with 2012 target to become 10% of our GDP.

3. Indian Automotive Industry is following global accepted quality measures at a lower cost. This makes it a perfect destination for production-outsourcing of automobiles.

4. The availability large talent pool at cheap prices.

5. Availability of cheap R&D; IITs be deemed as centers of excellence for automobile research and access to latest technology.

WEAKNESS

The biggest and probably the only weakness of Indian automobile Industry is its slow growth in Research and Development most companies (barring TATA and M&M) do not have adequate spending on R&D in comparison to their turnover. Maruti for instance is completely dependent upon Suzuki for any new technology all of the successful cars sold by it were developed by Suzuki; Swift, A-Star (which replaced alto in other markets as New Alto), SX4, Ritz etc. This weakness will soon become history as Indian companies are catching fast in R&D and are showing strong signs of success e.g.: M&M Scorpio Hybrid, TATA Nano. Besides R&D the other weakness is political hostility (TATA Nano Singur plant) but is only a regional problem of less developed states or pro-communist states, states like Gujarat, Maharashtra are proving to be a haven for Industries.12 Page 26 - http://www.planningcommission.nic.in/aboutus/committee/wrkgrp11/wg11_automaive.pdfPage | 31

• 33. OPPOURTINITES 1. India has a large pool of cheap talent which can be utilized in decreasing the R&D expenses. 2. India has potential to become manufacturing and export hub with it cheap labor availability. 3. India has very low car

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