Automobile Sector of India

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INDIAN AUTOMOBILE INDUSTRY : 

INDIAN AUTOMOBILE INDUSTRY

Automobile Industry : 

Automobile Industry Where it has been Where its going

AUTOMOBILE Industry In India : 

AUTOMOBILE Industry In India

Slide 5: 

Automotive Companies in India Major Multi-national companies Major Indian Companies

NODAL AGENCIES : 

NODAL AGENCIES ARAI Provide research & development, testing, certification and calibration support for developing safe, reliable and eco-friendly vehicles / components SIAM Apex Industry body representing 44 leading vehicle and vehicular engine manufacturers in India.

Future Prospects Of Indian Automobile Industry : 

Future Prospects Of Indian Automobile Industry

Slide 12: 

SKODA AUTO SKODA Auto is planning to make India its regional manufacturing hub. Company plans to start to manufacturing in India from 2010 with a target of 50000 cars a year. TATA MOTORS TATA motors plan to manufacture 80000 units of its NANO car in Pantnagar plant in UTTARAKHAND. The Mother facility in SANAND, Gujrat may be fully functional by 2010-11 with a capacity of 1.5 lakhs/year

Slide 13: 

RENAULT RENAULT has entered into partnership with NISSAN Motors to setup a manufacturing unit near Chennai. Project costs around $ 901.35 millions and having Capacity of 4lakh cars /year HONDA MOTORS Investing US $ 250 million in a new plant in Rajasthan with capacity of 60,000 car per year First car to rolled out in 2009

Slide 14: 

TOYOTA –KIRLOSKAR • Toyota-Kirloskar motors planning to launch its own small car in India by 2011 GENERAL MOTORS New Capacity to manufacture small cars at its Talegaon, Maharashtra plant with 80% local input. Brought in Spark small car in 2007

Why India? : 

Why India?

The Indian Auto Components Market : 

The Indian Auto Components Market Original Equipment Manufacturers (OEMs) Replacement Parts Production and Distribution : e.g. Air filters, oil filers and replacement lights Rubber Fabrication : tyres, hoses, belts etc. Estimated component market size is US$ 6.7 bn The exports of auto components industry has grown at a rate of nearly 30 per cent CAGR over the last four years.

The Indian Auto Components Market : 

The Indian Auto Components Market

Slide 19: 

Composition Of Indian Auto Exports

PEST ANALYSIS OF INDIAN AUTOMOBILE INDUSTRY : 

PEST ANALYSIS OF INDIAN AUTOMOBILE INDUSTRY

POLITICAL : 

POLITICAL Indian govt. launched AUTO POLICY for its Self Sustained growth. Allowed Foreign Equity Investment up to 100% Formulation of FUEL POLICY Promotes for Vehicles propelled by AES

ECONOMIC : 

ECONOMIC Weighted Tax Deductions up to 150% for in house R&D activities. Reduced Interest rates for export financing. Economy has grown over 8.5% per annum for last 5 years. Manufacturing sector has grown 8-10 % for last few years. More than 90% CV purchase is on credit.

Slide 24: 

Social Changed Lifestyle of people leads to increased purchase of Automobiles The Average family size is 4 which makes it favorable to buy a four wheeler. 4th largest economy on PURCHASING PARITY INDEX Increase in per capita income levels Indian Customers are Highly educated and well informed and they are price sensitive. Preference for small and compact car Preference for Fuel efficient cars with low maintenance

TECHNOLOGICAL : 

TECHNOLOGICAL More & more emphasis on R&D. Govt is promoting NATRIP(National Automotive testing and R&D Infrastructure Project) to support the growth of Auto industry in India. Customized solutions (Designer cars ets)can be provided with proliferation of technology. With Entry of global brands both product and production process has been improved.

SWOT ANALYSIS OF INDIAN AUTOMOBILE INDUSTRY : 

SWOT ANALYSIS OF INDIAN AUTOMOBILE INDUSTRY

STRENGTHS : 

STRENGTHS Automobile industry is established and Evergreen industry. India is the strongest player in small car segment Indian Companies are best cost innovators Assembly line manufacturing, and JIT inventory management, the automotive industry has been able to achieve significant gains in productivity. Exceptional human resource base

WEAKNESS : 

WEAKNESS India lack proper infrastructural facilities Poor after sales service the automotive industry lags behind other sectors such as IT and financial services in management training, reward and retention.

Opportunities : 

Opportunities Small cars is a future Green cars Auto financing Royalty through Patents

THREATS : 

THREATS Global Crisis Companies not focusing on R & D are under great risk High competition from foreign players Lack of technology for Indian companies

Slide 31: 

Due to liquidity crunch buyers stayed away Mahindra & Mahindra recorded a fall of about 40%, Tata Motors showed 12% decline in the car sales. resulted into less production Job Cuts Impact Of Global Recession

INDIAN SUCCESS STORIES : 

INDIAN SUCCESS STORIES

TATA INDICA : 

TATA INDICA

Scorpio Success Story : 

Scorpio Success Story

India’s First Indigenously Developed SUVIt Was Designed To Target Urban Market To Fulfill The Demand Of Passenger Car As Well As SUV Fans And Having Comfort And Elegance The UV’s Design Fall Between Passenger Car And SUV Called “Car Plus” : 

India’s First Indigenously Developed SUVIt Was Designed To Target Urban Market To Fulfill The Demand Of Passenger Car As Well As SUV Fans And Having Comfort And Elegance The UV’s Design Fall Between Passenger Car And SUV Called “Car Plus”

Slide 36: 

Why the project launched ? From the year 1992company faced tremendous competition specially from Telco. The sale from 1994 to 1997 was Tata Sumo- 100000 units and M&M UV- 26321 units M&M’s vehicles are more suitable for rough terrain than on urban road, works against it Took benefit of the small size UV market which is 15% of total vehicle market compared to Asian average (40%)

Slide 37: 

Development of Scorpio Made survey and collect customer preference and perception for designee and feature . Introduction of Quality Function Development(QFD) Process. Created a benchmark according to world class SUV’s a) Big size b)Latest technology c)Affordable Price d)Have thrill and passion in driving e)Have Luxury f)International vehicles defined image

Slide 38: 

It Was Launched With Three Models. 1000 Units Were Booked Within The Launch Of First Week. In 2003 Companies Income Rose By 22%. Breaking The Tradition Of UV, Scorpio Is Being Used Primarily As Personal Vehicle. Survey In 2004 Shows That Scorpio Buyers Were Satisfied. It Extensively Tested, so It Has No Run Time Defect After Launching In Market. Launching Scorpio

Conclusion : 

Conclusion Thus ‘Scorpio’ has proved as a Milestone for M&M and the Indian Automobile Industry. It has given a unique place To M&M in Indian market because ,It was innovated with High Quality, Reliability, Flexibility, Style, Driving Comfort etc. In short it offered a customized product. hence, again Operation’s components: Time, quality & technology made A Success story.

CAREER OPTIONS AFTER MBA IN AUTOMOBILE SECTOR : 

CAREER OPTIONS AFTER MBA IN AUTOMOBILE SECTOR

Slide 41: 

CHENNAI IS CALLED AS “DETROIT” OF INDIA

Opportunities for All : 

Opportunities for All Stream Designations Offered HR HR Manager, Personnel Manager, Compensation Analyst. Marketing Sales Manager, Marketing Manager, Product manager Operations Production Manager, Purchase Manager, Inventory Manager Finance Financial Analyst, Risk Manager.

Interested in & around Mumbai? : 

Interested in & around Mumbai? MUMBAI: MAHINDRA AND MHINDRA. PUNE: TATA MOTORS, TELCO, FORCE MOTORS,LUCAS TVS, MAHINDRA & MAHINDRA,VOLKSWAGON, GM,DAIMLER – CHRYSLER,FIAT INDIA,BAJAJ AUTO,EICHER, KINETIC, BAJAJ TEMPO,HERO HONDA MOTORS LTD,PIAGGIO,PREMIER Ltd, Besides This Many Auto Component Industries in Pune.

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