14285200-INTERNATIONAL-MARKETING-Auto-Component-Ppt

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PROJECT TOPIC : 

PROJECT TOPIC INDUSTRY

AGENDA… : 

AGENDA… STUDY HISTORICAL ASPECT AND CURRENT SITUATION. WHERE THE INDIAN INDUSTRY STANDS GLOBALLY? STUDY GROWTH POTENTIAL. REASONS FOR THE BOOM IN THE INDUSTRY. STUDY GOVERNMENT POLICIES. MEASURES TO SUSTAIN GROWTH.

HISTORICAL ASPECT… : 

HISTORICAL ASPECT… Initially, the Indian Auto Component Industry was not competitive enough for the global market due to its:- Inferior quality Lower labour productivity High cost of raw materials Protectionist policies of Indian government Limited demand from vehicle manufacturers However, a change came after the liberalization of the India economy in 1991 with: Abolition of licensing Approval given to up to 51% foreign investment

CURRENT ASPECT… : 

CURRENT ASPECT… 1) Indian Auto Component Industry’s turnover in 2006-2007 was US$ 15 billion.2) The industry is growing fast with a CAGR [COMPOUND ANNUAL GROWTH RATE] of 28.9%. 3) Indian industry has around 500 organized and around 600 unorganized players.4) In terms of component type, engine parts lead the sales followed by drive transmissions and steering components.

GLOBAL STANDING… : 

GLOBAL STANDING… Indian manufacturers are gaining recognition as “global quality” players. India shared 0.9% of the global Auto Components Industry in 2005-06. India’s share in world auto components could grow from 0.9% in 2005-06 to over 2.5% by 2015

GLOBAL STANDING… : 

GLOBAL STANDING… Many international players including Delphi, Visteon, Bosch and Meritor have set up operations in India. Exports projected to grow at over 30% p.a. Over 60% exports are to Europe and USA. India is also becoming a global hub for R&D.

Acquisitions made overseas are helping Indian auto component companies get access to new technology and customers and increase in India’s global presence. : 

Acquisitions made overseas are helping Indian auto component companies get access to new technology and customers and increase in India’s global presence.

GROWTH POTENTIAL… : 

GROWTH POTENTIAL… India amongst the most competitive manufacturers of auto components, especially: Metal intensive components: forgings,stampings,castings. Skilled labour-intensive components: machining, wiring-harness etc. Hi-tech components: electronic fuel injectors. Opportunity to address the global Auto Components market while leveraging India’s large and growing domestic market Opportunity to set up R&D centres in India Indian technical skills is acknowledged as among the best in the world High level of sourcing of auto components from low cost countries (LCC’s) to act as a driver for growth. Potential of over US$5 billion for investment in India.

INVESTMENTS MADE IN INDIA : 

INVESTMENTS MADE IN INDIA

REASONS FOR BOOM. . . : 

REASONS FOR BOOM. . . Increase in income Increase in standard of living. Relaxation of regulation. Reduction of tariffs on imports.

ADVANTAGES TO MANUFACTURERS : 

ADVANTAGES TO MANUFACTURERS Technological, cost and manpower advantage. Established R&D centers. India among the lowest cost producers of steel in the world. India is fourth largest passenger car market in Asia.

MAJOR PLAYERS… : 

MAJOR PLAYERS… Domestic Private Players: Bharat Forge Limited Tata Auto Component Systems Sundaram Fasteners Brakes India International Private Players: MICO Visteon  Delphi

GOVERNMENT INITIATIVES… : 

GOVERNMENT INITIATIVES… 100% FDI [FOREIGN DIRECT INVESTMENT] allowed through the automatic route. Reduction in the duty of raw material to 5-7.5% from the earlier 10%. Setting up of R&D Infrastructure Project. Incentives provided to the exporters in terms of Drawbacks and DEPB [DUTY ENTITLEMENT PASSBOOK SCHEMES] .

MEASURES TO SUSTAIN GROWTH COMPARED TO CHINA : 

MEASURES TO SUSTAIN GROWTH COMPARED TO CHINA CONSIDERING POINTS:- 1. SETTING UP OF RND CENTRES. 2. REDUCTION IN TAXES. 3. REDUCTION IN POWERCOST. 4. MANUFACTURERS SHOULD WORK CLOSELY WITH OEMs (original equipment manufacturers). 5. OUTSOURCING & SETTING UP OF UNITS IN LOW COST MANUFACTURING COUNTRIES

COMPETITIVENESS… : 

COMPETITIVENESS… INDIAN MANUFACTURERS SUFFER FROM A COST DIS-ADVANTAGE. INDIAN INDUSTRY STANDS EQUALLY WITH BRAZIL. BURDEN OF TAXES IN INDIA IS HIGHER. POWER COST IN INDIA IS HIGHER AS COMPARED TO COMPETING COUNTRIES. HIGH INTEREST RATES.

CONCLUSION… : 

CONCLUSION… Indian auto component industry is one of the largest growing industries in the world. Has a huge scope of investment. Favorable destination for foreign companies to establish their facilities and form alliances with domestic companies.

SUGGESTION… : 

SUGGESTION… Efficiency in supply will be critical for India’s auto component industry’s success.

THANK YOU : 

THANK YOU SUBMITTED BY: JASMEET SINGH B-24 NISHITA MAHAJAN B-32 PRANAV NAGPAL B-34 RADHAPRIYA SRIVASTAV B-35 SAKSHI MANAKTALA B-42

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