...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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...Automobile Industry in India: The Automobile industry in India is one of the largest in the world and one of the fastest growing globally. India manufactures over 11 million vehicles (including 2 wheeled and 4 wheeled) and exports about 1.5 million every year. It is the world's second largest manufacturer of motorcycles and India's passenger car and commercial vehicle manufacturing industry is the seventh largest in the world. The Indian Automobile Industry has evolved in 3 phases: Tata Motors: Tata Motors Limited is India's largest automobile company with presence across the length and breadth of India and through its subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand, Spain and South Africa. Among them is Jaguar Land Rover, a business comprising the two iconic British brands that was acquired in 2008. The foundation of the company's growth over the last 65 years is a deep understanding of economic stimuli and customer needs, and the ability to translate them into customer-desired offerings through leading edge R&D. With over 4,500 engineers and scientists, the company's Engineering Research Centre, established in 1966, has enabled pioneering technologies and products. In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and the world have been looking forward to. Tata Motors is equally focused on environment-friendly technologies in emissions and alternative fuels. It has developed electric...
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...become too complex mainly due to the increased globalization and therefore has to be understood thoroughly for the continuous operation of the business. This outline report explains the business environment of automobile industry in the People’s Republic of China in terms of political, legal, economic, and cultural and ethical traditions. Political 1. Encourage the Automobile Industry Development Policies Having struck by the world-wide financial crisis, the global automobile market currently is facing severe situations. In order to revive the automobile market, the State Department decides to reduce the vehicle purchase tax. This policy will play a major role in raising automobile consumption market while effectively encourage automobile purchase, expanding domestic demands as well as facilitating the steady and rapid development of domestic automobile industry. 2. China’s Road Construction Policy In order to maintain the automobile market to develop, the government enhances plans to provide priority to the construction of express highways and accelerating the construction of the National Express Highway. The ministry is also promoting the integration of unconnected roads. Legal 1. Legal provision relating to environmental population by automobiles and safety measures. 2. Intentions on harmonizing the regulatory standards with the rest of the world. Economic 1. Rapid Development of Economy The economy of the People’s Republic of China(PRC) is the...
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...The automobile industry is a giant, serving both public and private sectors of the economy and consuming enumerable amounts of goods used in production, accounting for numerous additional jobs. The complexity of the industry has grown over the years along with the complexity of the products it produces. New means of advertising and other market strategies further complicate this already hugely intricate industry. On top of this, the industry continues to evolve on an almost yearly basis with the introduction of new “essential standard features” that one would not have even considered putting in a car five years earlier. Despite it’s relatively recent rapid growth in the past 100 years, the automobile industry, had a somewhat slower start. Once the industry was set in motion it unquestionably continued to grow and develop amazing machines that provide a great service to society and a great profit to its manufactures, but the first 130 years the automobile industry took to establish itself as an important part of the economy are just as important to fully understand the industry. The first self-propelled street vehicle was invented by the French engineer and mechanic, Nicolas Joseph Cugnot, in 1769. It was a military tractor used by the French army to haul artillery. It was destroyed later that same year in what is considered the first automobile accident; it crashed into a wall.2 The engine, like most of its time, was steam powered. Steam was the main source of power...
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...not required significant technological activity. The share of engineers working in the assembly industry in Brazil in the industry total employment is an indicator supporting such argument. In the 1980s, it was less than 1% (Quadros, 1993). By the early 2000s, the share had quadrupled. Major changes in the Brazilian automotive market and industry occurred in the early 1990s. These changes implied a significant redefinition in the local PD strategies of car assemblers. Two elements influenced these changes: trade liberalisation and government policies specifically focused on the automobile sector. 2.2 Trade liberalisation and growth in local demand The process of trade and investment liberalisation in the Brazilian economy started in the early 1990s, following the inauguration of the government of the first elected President after military rule. Brazilian assemblers were not prepared to face the competition of imported vehicles. The sudden explosion in vehicle imports intensified domestic competition and showed the need to update products and improve productivity and quality standards in local car and truck manufacturing. This has triggered an escalation in investment by assemblers. Total investment in the assembly industry in Brazil rose from US$5.4 billion, in the 1980s, to US$16.6 billion, in the 1990s, according to the Brazilian Automotive Industry Association (ANFAVEA). This figure...
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...UK Automobile Industry 1. Wikipedia : Primary categories : Sports and luxury end cars – Aston Martin, Bentley, Daimler, Jaguar, Rolls-Royce etc Volume Car Makers – Nissan, Honda, Toyota etc Commercial Manufacturers – Ford, Leyland, London Taxis International etc Back in 1950 , UK was the second largest car manufacturer and exporter after USA. Subsequently over some decades slowed down and was then ranked on the 12th spot with immense competition from nations like France, Germany and Japan\. Late 80’s many of the British marques were bought over by foreign companies 2. http://www.thisismoney.co.uk/money/cars/article-2524573/Can-motor-industry-continue-fifth-gear-race-ahead-2014.html The latest UK car manufacturing figures showed that 1,286,287 motors were produced in the first 11 months of the year, a rise of 5.4 per cent compared to last year with sales also up by an impressive 9.9 per cent. Of the five major European car markets – Britain, France, Germany, Italy and Spain – only Britain has seen growth in the new car market this year. The rate of growth depends principally on when the car manufacturers pull back on the cheap credit that is currently pump-priming the market. If this cheap credit remains available throughout next year then there is an increasing risk of oversupply of new cars which could raise anxiety regarding a potential shock fall in used car residual values.’ Political Economic Payment Protection insurance payouts Cheap financing ...
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...Did you know that all the companies in America have something in common? They are all operating in an environment of forces that create both threats and opportunities for their businesses. These environmental forces, which make up something known as the "macroenvironment", include: demographic, economic, natural, technology, political and cultural. Since the macroenvironment is generally uncontrollable, businesses often must find ways to adapt to the constant changes. For example, over the past few years, the auto industry has been affected tremendously by changes in the technology, natural, and political environments and therefore forced to change their marketing strategies. The Technology Environment Kotler identifies the technology environment as the most powerful force affecting and shaping the future (83). The environment consists of: industrial productivity, new manufacturing processes, new products and services of competitors, new products and services of supply chain partners, and any new technology that could impact a company (Environmental Scanning). Technology has been responsible for developments such as the internet, computers, laser surgery, organ transplants, antibiotics and more (Kotler, 83). While advances in technologies are creating new markets and opportunities they are also replacing older technologies. Companies that do not keep up with these changes will find their products or services become obsolete and not up-to-date with the consumer buying behaviors...
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...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% in 2015 (Automobile Manufacturing, n...
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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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...Automobile Industry in UK - An Internal and External environmental study Introduction: The automobile sector in United Kingdom (UK) is very vibrant and innovative with Seven commercial vehicle manufacturers, nine bus and coach manufacturers, eight major premium and sports car producers, seven mainstream cars manufacturers; eight formula one teams; thirteen R&D centers; and over 100 specialist brands and niche manufacturers. Some of the best premium and sports cars manufactured in UK are Aston Martin, Bentley, Daimler, Jaguar, Lagonda, LandRover, Lotus, McLaren, MG, Mini, Morgan and Rolls-Royce. UK automotive industry is producing over 1.5 million vehicles and 2.5 million engines every year. Another key point about the UK automobile industry is that it exports around 75 % of its production which makes UK the largest exporter of cars in the world. Apart from automobile manufacturing, UK also has notable presence in motorsport industry and auto racing industry. UK motorsport industry contributes with an annual turnover of £6 billion out of which more than 50% is exported with about 4500 companies involved in this industry. UK automobile sector has undergone tremendous change since its inception in the 19th century. From being the second largest manufacturer of cars in the world (next to United States), it went down to be the 14th largest producer of cars by 2012 because of the rising competition from countries like...
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...ANALYSIS OF THE INDIAN AUTOMOBILE INDUSTRY SUBMITTED BY : ANIKET SHARMA ROLL NO. 45 PG-C INTRODUCTION 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. India is emerging as an export hub for sports utility vehicles (SUVs). The global automobile majors are looking to leverage India's cost-competitive manufacturing practices and are assessing opportunities to export SUVs to Europe, South Africa and Southeast Asia. India can emerge as a supply hub to feed the world demand for SUVs. India also has the largest base to export compact cars to Europe. Moreover, hybrid and electronic vehicles are new developments on the automobile canvas and India is one of the key markets for them. Global and Indian manufacturers are focussing their efforts to develop innovative products, technologies and supply chains. The automotive plants of global automakers in India rank among the top across the world in terms of their productivity and quality. Top auto multinational companies (MNCs) like Hyundai, Toyota and Suzuki rank their Indian production facilities right on top of their global pecking order. MAJOR DEVELOPMENTS & INVESTMENTS * Yamaha Motor Co (YMC) has announced to set up its fifth global research and...
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...The report is about the analysis of the environment of automobile industry and the marketing strategy for Ford Motor Company. It initiates with examining of external environment of automobile industry by using PEST analysis and Porter's five forces analysis. After the internal analyses that focus on the resource audit on brand, products, markets, technology, people and son on, the value chain analysis of the company will be conduct. Then the generic competitive strategies would be discussed through SWOT analysis, Ansoff Matrix and BCG Matrix in order to identify the general business strategy taken by the Ford Company. After specifying the company strategy by those analysis tools, the strategic evaluations would be drawn together with the strategy control methods. Finally, a suggested recommendation for the company future development will be mentioned at the end of the report. I. INTRODUCTION 1.1 Aim of The Report This report aim to identify the external environmental of the global automobile industry, measure and evaluate viable and sustainable marketing strategies using by the Ford Motor Company. Through appropriate theoretical concepts and models, together with appropriate methodologies, the organization within its contextual setting will be carefully examined, and justify recommendation will be mentioned. Though the report, how a successful corporation is operated and how its business strategy is implemented and controlled will be understood. 1.2 Company Background Ford Motor...
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...[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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...WORKING PAPER Influence of Government Policies on Industry Development: The Case of India’s Automotive Industry Mahipat Ranawat Rajnish Tiwari March 2009 Working Paper No. 57 Hamburg University of Technology Schwarzenbergstr. 95, D-21073 Hamburg, Germany Tel.: +49 (0)40 42878-3777; Fax: +49 (0)40 42878-2867 www.tu-harburg.de/tim www.global-innovation.net Influence of Government Policies on Industry Development: The Case of India’s Automotive Industry By Mahipat Ranawat and Rajnish Tiwari Hamburg University of Technology Institute of Technology and Innovation Management Schwarzenbergstr. 95, 21073 Hamburg (Germany) Tel. +49 – (0)40 – 428 78 – 3776, Fax: +49 – (0)40 – 428 78 – 2867 mahipat.ranawat@tuhh.de; rajnish.tiwari@tuhh.de www.tuhh.de/tim; www.global-innovation.net Abstract The automotive industry in India has come a long way from its nascent state at the time of India’s independence in 1947 to its present day dynamic form. As compared to the production of mere 4,000 vehicles in 1950, the production of the industry crossed the historic landmark of 10 million vehicles in 2006. Today, the industry produces a wide range of automobiles and auto-components catering to both the domestic as well as foreign markets. The development of the industry has been shaped by the demand on the one hand and the government interventions on the other; the influence of the latter being considerable. The evolution of India’s automotive industry is identified to have occurred in four phases. In...
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...Analysis of Pakistani Automobile Industry Introduction The dictionary says that an automobile is a land vehicle equipped to carry a driver and several passengers, generally moving on four wheels and boosted by an engine that burns gasoline, and the companies that manufacture these automobiles are categorized under the automobile industry. So simple it seems. However, in the real substance, automobiles and the auto sector mean much more than this. It represents mobility, transportation and communication. It represents an industry that has a strong impact on a dozen other sectors like steel, vending, petrol or even employment. Hence auto sales reflect not only the basic human desire for mobility but these are also an important economic indicator. Historical overview of automobile industry of Pakistan When Pakistan was established in 1947, there were neither any automobile assembly plants nor any industrial capability available for this important manufacturing of cars, Light commercial vehicles, motorcycles, trucks and buses. In 1953 Pakistan produced its first vehicle in, the Bedford trucks, under the banner of National Motors, which went on to produce about 80% of the country’s automobiles in the 60’s. In Mid 1950’s Naya Daur Motors established the first ever plant to assemble trucks and buses. In 1983 Suzuki commenced assembly of FX 800cc. In 1986 Hinopak started assembling operations in 1986 and is the market leader in the commercial vehicles segment, currently possessing...
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