...[pic] CHAPTER 1 INTRODUCTION INTRODUCTION The automobile industry is one of the largest industries in India as in many other countries. It plays a major role in the growth of economy in India. The automobile industry in India is the ninth largest in the world with an annual production of over 2.3 million units in 2008. The industry comprises automobiles and auto component sectors, which encompass passenger cars, two-wheelers, three-wheelers, tractors, commercial vehicles, multi- utility vehicles and components. Today, the Indian automobile industry is the world s largest motorcycle manufacturer, the second largest two-wheeler and tractor manufacturer, the fifth largest commercial vehicle manufacturer and the fourth largest car maker in Asia. Apart from serving the domestic market, the Indian auto sector has also become a sourcing hub for the global auto giants. In 2009, India emerged as Asia's fourth largest exporter of automobiles, behind Japan, South Korea and Thailand. The Government of India has introduced an ambitious project of setting up world-class automotive testing and R&D infrastructure to place India in the USD 6 trillion global automotive business. This book details the current status and factors influencing the growth of the Indian automobile industry; its future prospects and the success stories of some automobile giants in India. It also focuses on the future growth of the industry as a result of the newly adopted technologies and strategies. India...
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...India Commercial Vehicle Summit 2013 4th - 5th April, [Westin Hotel, Koregoan Park]Pune, India Company Name Name Job Title A Raymond Fasteners India Private Limited A Raymond Fasteners India Private Limited A Raymond Fasteners India Private Limited Alicon Castalloy Limited Allied Nippon Limited Allied Nippon Limited Allied Nippon Limited Alpha Drivers R and D Center Alpha Drivers R and D Center AMW Motors Limited AMW Motors Limited AMW Motors Limited AMW Motors Limited AMW Motors Limited Andhra Pradesh State Road Transport Corporation Andhra Pradesh State Road Transport Corporation Andhra Pradesh State Road Transport Corporation Anhui Jianghuai Automobile Corporation Limited (JAC Motors) Anhui Jianghuai Automobile Corporation Limited (JAC Motors) Anhui Jianghuai Automobile Corporation Limited (JAC Motors) Anhui Jianghuai Automobile Corporation Limited (JAC Motors) Arai Arai Ashok Leyland Limited Ashok Leyland Limited Manish PADHARIA Pankaj GAUTAM Shibu APPUNNI Shekhar DRAVID Anand PATIL Devender KUMAR N C AGARWAL David JACKSON Suresh WILLIAMS Anurag KHARGONKAR Dhananjay KALE Jitendra JASANI Shamprasad PONKSHE Vivek SONAR K Chandra SEKHAR K Venkat RAO S Ravindra BABU Henry XIA Jack ZHANG Jina KANG Jina KANG D J KULKARNI M R SARAF Hitesh SHARMA Nitin KARULKAR Managing Director Area Manager Assistant Manager – Business Development Vice President - Business Development Assistant General Manager - Marketing General Manager (Marketing) President and Chief Executive Officer...
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...Reverse Logistics in Indian Automobile Industry Reverse Logistics is a process in which a product moves in reverse through the supply chain network. It may be used for the purpose of recapturing value of a final product or for even proper disposal. It may also be termed – service, as the process of planning, implementing and controlling the efficient and cost effective transfer of raw materials, in-process inventory, finished products and related information, from consumption to the point of origin, for the purpose of recapturing value of proper disposal. While the primary sectors involved in making use of this process may be classified as the Pharmaceutical Sector, Retail sector, Automobile sector and the Electronics sector, we are mainly about to focus all our attention to the practices of ‘Reverse Logistics’ in the Indian Automobile Industry. To truly know why the whole idea of ‘Reverse Logistics’ assumes significance when considered in terms of the Automobile Industry, first we need to think of the nature of the final product i.e. Automobiles or Vehicles as we call them. The parameter one needs to look at is the life cycle of the product and what happens to the final product once it reaches the end of its useful life. By its very nature, it’s difficult to predict the life cycle of the final product. This is because; it is highly susceptible to the nuances of the human subjectivities. But even if we are unable to predict the duration of the life cycle, we have definitely...
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...STRATEGIC MANAGEMENT ASSIGNMENT ASSIGNMENT ON ANALYSIS OF THE SECTOR USING PORTERS DOUBLE DIAMOND MODEL ON INDIAN AUTOMOBILE INDUSTRY Submitted To Prof. A. K. Kher Submitted By Rameez Bagban 03 Shahanawaz Mujawar 11 For the academic year 2014-15 INTRODUCTION: The Indian automobile industry is one of the key drivers of industrial growth and employment, which will gain rapid importance. In order to accelerate and sustain growth in the automotive sector, a roadmap is needed to steer, coordinate and synergize the efforts of all stakeholders. Exogenous and endogenous factors affecting industry also affects the competitiveness of the firms. Competitiveness captures the awareness of both the limitations and the challenges posed by global competition as an exogenous factor. Underdeveloped economies tend to be competitive by producing cheaper products, developing economies by producing better products, and developed economies by producing innovative products continuously. Though Indian automobile manufacturers are manufacturing innovative products and leading India to a new summit, there are various roadblocks, which prevent this industry from being a global player. COMPETITIVENESS DEFINED: Competitiveness has emerged as a paradigm towards the economic development. Michael Porter has defined competitiveness as productivity with which a nation utilizes its human, capital and natural resources. To understand competitiveness, the starting...
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...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 ...
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...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 Indian Auto Sector ..................
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...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...
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...41 Asia-Pacific Business Review Vol. VI, No. 2, April - June 2010 pp. 41-49, ISSN: 0973-2470 Capital Structure and Product Market Determinants: Empirical Evidence from the Indian Automobile Industry Himanshu Joshi This paper provides insights into the way in which the capital structure is determined by product market determinants, research and development activity and profitability. This paper is an attempt to test relevance of empirical evidences found in matured markets to the Indian market condition. Automobile industry is taken up for the study because of its oligopoly nature and easy availability of product prices. Some of the results are very different from the similar studies conducted in the advanced economies. It is found that the firms in the same industry can have different capital structures and there is a negative correlation between the profitability and capital structure of the companies. Interestingly, no correlation is found between R&D expenses and capital structure of the company. It was also concluded that no extra market power is attained because of high leverage. Keywords: Capital Structure, Product Market, Market Structure, Profitability, Market Power, Capital Expenditure Introduction Capital structure refers to the way a corporation finances its assets through some combination of equity, debt, or hybrid securities. A firm’s capital structure is thus, the composition or ‘structure’ of its liabilities. The modern theory of capital structure began...
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...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...
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...Research The actual goal of the research process is to evaluate the customer’s buying behavior of cars by taking Tata Nano as the primary example and analyzing car-marketing segments in the automobile industry in order to support the Indian automobile companies especially Tata Nano, for improving their market sales. Scope of the Research The main scope of this project is to analyze the information on the Indian automobile industry and the car marketing aspects of automobile industry by considering Tata Nano as an example. This research will provide the detailed overview on the automobile industry in India and the changes in the Indian automobile industry after the establishment of Tata Nano. It will cover the different aspects related to the car marketing like the marketing plans and marketing strategies required for success. Factors of the Research The main factors of this project are as follows: * The overview of the Indian automobile industry * The detailed information on the buying behavior of the customers when they buy cars Research and Study Within the process of completing this research, hasn’t faced any obstacles until now and in the process of gathering the information from the different types of data collection methods of secondary source of data, there are some limitations and restrictions for collecting the information. In the process of gathering the information from the articles and case studies of previous scholars the researcher was asked to...
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...INDIAN AUTOMOBILE INDUSTRY NORTH SOUTH UNIVERSITY Authorizer: MehreeIqbal (MeI) Faculty, School of Business North South University NORTH SOUTH UNIVERSITY Letter of Transmittal 10th August 2012 MehreeIqbal Lecturer, School of business, North South University Dear Miss, In this report of “Indian Automobile Industry”, we have tried to implement our learning from this course. We would like to thank you for offering the opportunity to work on this topic. Despite many limitations, we have tried our best to make this report accurate and reliable. If you have any further enquiry concerning any additional information, we would be very pleased to clarify that. This report also includes the key components and their brief discussion related with this subject that you have mentioned earlier. Yours sincerely, Students of Sec-12 MGT (372) Acknowledgement: The most pleasant part of submitting the report is to get the opportunity. We would like to thank those who have contributed to it a lot. Unfortunately, the list of expression of thanks- no matter how extensive is always incomplete and inadequate. These acknowledgements are no exception. Our first thank goes to the almighty Allah for bestowing us the patience and courage to finish this huge task within its deadline. Thanks must go to the team members, whose unflagging patience and astounding capacity for creative work, and long hours made the report both possible and successful – under the pressure...
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...INTRODUCTION Performance Evaluation or Appraisal is the process of deciding how employees do their jobs. Performance here refers to the degree of accomplishment of the tasks that make up an individual’s job. It indicates how well an individual is fulfilling the job requirements. Often the term is confused with efforts, which means energy expended and used in a wrong sense. Performance is always measured in terms of results. Definition Performance appraisal is method of evaluating the behavior of employees in the work spot, normally including both the quantitative and qualitative aspects of job performance. It is a systematic and objective way of evaluating both work-related behavior and potential of employees. It is a process that involves determining and communicating to an employee how he or she is performing the job and ideally, establishing a plan of improvement. Performance appraisal is broader term than Merit Rating. In the past managers used to focus on the traits of an employee while ranking people for promotions and salary increases. Employee’s traits such as honesty, dependability, drive, personality, etc., were compared with others and ranked or rated. The attempt was to find what the person has (traits) rather than what he does (performance); the focus was on the input and not on the output. This kind of evaluation was open to criticism because of the doubtful relationship between performance and mere possession of certain traits. ...
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...dominated Car Industry from 1940s to mid 80s. * In 1955 Royal Enfield from UK was the first company to export motorcycle to India. This happened due to the requirement of rough, strong motorcycle by Indian Army. Bullet and Rajdoot were 2 dominating motorcycles in India before liberalization. Among Scooters Bajaj Chetak and LML Vespa were popular. Over the last 20 years, Indian Auto industry has got the global business opportunities to grow and at the same time there have been threats from giant global competitors. * From the above figure we can prominently observe that Globalization has attracted many foreign brands to India, but we are lagging in producing indigenous vehicles. We have only 3 or 4 major companies producing indigenous cars. (Mahindra, HM, Tata Motors, Force Motors). Role of Policy Reforms over last 20 years: * Decrease in import restrictions and reduced tariff levels. * Smooth licensing and approval process to encourage FDI in automobile sector. * Robust legal system and stable foreign exchange regime. FDI and cross border trade has accelerated since 1991 in many industries including automobile sector. The WTO has been facilitating trade and investment liberalization. Availability of skilled and low cost labour has made foreign countries to invest in emerging countries like India. Government has promoted NATRIP (National Automotive Testing and R & D Infrastructure Project) to increase the growth of automobile industry in India...
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...GOSWAMI-10BSPHH010718 INDIAN AUTOMOBILE INDUSTRY (A MACRO AND MICRO ANALYSIS) With a Focus on TATA Motors | FINAL REPORT (Business Strategy) | IBS-2011 BS-SEC I (Group-3) SHINY ACHARYA-10BSPHH010733 SHWETABH SRIVASTAVA-10BSPHH010766 SUNIL Kr. YADAV-10BSPHH011074 SAURABH TRIVEDI-10BSPHH011076 NILABH-10BSPHH011081 RAGHINI SHARMA-10BSPHH010936 SHAUNAK GOSWAMI- | Table of Contents Indian Automobile Industry: An Overview 3 A. Macro analysis of Indian Automobile Sector 3 1. PESTEL Analysis 3 I. Political and Legal Factors 3 II. Economic Factors: 4 III. Social Factors: 5 IV. Technological Factors 6 V. Environmental Factors 6 2. Key Drivers of Growth and Change 6 3. Porter’s Diamond 7 I. Factor Conditions 7 II. Demand Conditions 7 III. Related and Supporting Industries 8 IV. Firm Strategy, structure and rivalry 8 B. Micro-analysis of Automobile Industry 9 1. Porter’s 5 Force Framework 9 2. Dynamics of Competition 9 C. Competitors & Markets 10 1. Strategic Groups 10 2. Market Segments 13 3. Identifying Strategic Customer 16 D. Strategic Gaps 17 E. Tata Motors 19 1. Introduction 19 Mission Statement 19 Vision Statement 19 Goal 19 Core Values 19 Market share 19 Revenue and profits 20 Domestic growth 20 2. SWOT Analysis 22 3. Strategies 24 4. Projection of Revenue/Market Share for next five years 25 5. Implications of the Strategies 27 6. Conclusion 28 F. References 29 Indian Automobile...
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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...
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