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![Industry analysis
India Government proceed aggressive innovation
Source: amrut.gov.inSource: smartcities.gov.in
Smart Cities and Amrut will drive the Bus market growth
Promoting a variety of transport options
(Transit Oriented Development [TOD] or public transport)
improving Urban Transport and buses or Bus Rapid
Transit System](https://image.slidesharecdn.com/buscoolerprojectteama1-180730095131/85/Bus-cooler-project-team-a-1-5-320.jpg)
Uploaded byANIL SHARMA
Bus cooler project team a(1)
The document discusses the bus air conditioning (AC) market in India. It notes that government initiatives like Smart Cities and Amrut will drive growth in the bus market. The bus AC market is expected to grow at a CAGR of 20-25% until 2020. Key factors contributing to growth include rising incomes and an increasing number of foreign visitors to India. Major players in the India bus AC market are identified along with their production capacities and market shares. Entry barriers to the industry are also discussed. A SWOT analysis is performed to analyze strengths, weaknesses, opportunities and threats. Finally, potential strategies and action plans for entering the bus AC market through partnerships and technical assistance are proposed.
Bus cooler project team a(1)
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- 5. Industry analysis India Governmentproceed aggressive innovation Source: amrut.gov.inSource: smartcities.gov.in Smart Cities and Amrut will drive the Bus market growth Promoting a variety of transport options (Transit Oriented Development [TOD] or public transport) improving Urban Transport and buses or Bus Rapid Transit System
- 6. Industry analysis Growth ofIndia buses(till 2028) 25 19 18 7.24 9.36 0 10 20 30 Hybrid Electric CNG/LPG Diesel Whole bus Bus CAGR Hybrid Electric CNG/LPG Diesel Whole bus CAGR: Compound annual growth rate
- 7. Industry analysis prospect ofIndia Bus A/C Market The current status of the media speaking Indian bus market. Bus AC Market’s is expected to grow at a CAGR of 20~25% till 2020 90 10 AC Bus Rate(%) Non - Ac Bus Ac Bus around 10,000 units
- 8. Industry analysis Why Indiabus A/C market is growing ? India Total Disposable Personal Income Economic activation
- 9. Industry analysis Why Indiabus A/C market is growing ? Number of foreigner visiting India
- 10. Industry analysis Due tothe increase Bus demands of bus ac market
- 11. Industry analysis ▪ Subrosfounded as a JV with SUZUKI(for manufacture) , DENSO(for technic) ▪ They sell Passenger vehicles , bus ac , Transport refrigeration system etc. ▪ annual Automotive ac capacity of 1.5 Million AC Kits and 2017 their bus A/C sales value was 1,54,712 in lacs ( 1 lacs = 100,000 Rs) ▪ They product LCV to HCV bus ac
- 12. Industry analysis ▪ TRANSACNR JV with JVAC and Hwa Sung Thermo ▪ They sell bus ac and Truck Refrigeration ▪ Monthly bus ac capacity production of 1000 units ▪ They product LCV to HCV bus ac and they have warranty ▪ Their bus ac is Specific to Tropical Climate and endure harsh terrains.
- 13. Industry analysis ▪ SONGZwas Established in 1998 and 35% market share in China ▪ November 2017, monthly output reaches 10,000 bus ac units ▪ Exported more than 30 countries (include india) ▪ They product LCV to HCV bus ac and they have warranty ▪ In India, SONGZ market share in 2007 already exceeded 10% and it has been growing year by year
- 14. Industry analysis ▪ GUCHENwas Established in 1997 ▪ annually products output capability of more than 50,000 sets of various AC (40% are sold in the overseas market) ▪ exported more than 50 countries and regions.(include india) ▪ They product LCV to HCV bus ac and they have warranty
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- 16. Industry analysis 45.1 27.8 14.7 6.7 4.2 1.6 50.6 26 9.7 8 4.1 1.5 0 20 40 60 LCVBus Market share in % .Feb-15 .Feb-16 41.4 40.7 6.8 9.4 1.8 55.5 28 10.3 5.2 1 0 20 40 60 Tata Motors Ashock Leyland SML Isuzu VECVs-Eicher Mahindra M&HCV Bus Market share in % .Feb-15 .Feb-16
- 17. Industry analysis has themarket share of nearly 60%
- 18. Industry analysis Other countrybus A/C company in india
- 19. Industry analysis 1. Asmall number of companies(e.g Tata,Force,Ashock leyland) are dominating the market 2. There are many supplier in Bus A/C Market 3. Low Switching cost
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- 21. SWOT Analysis ▪ Growingof India bus a/c market ▪ Government try to improving bus quality ▪ Exist strong competitor ▪ Small scale of production capacity▪ Have an understanding of the air conditioning system ▪ Experience of manufacturing HVAC ▪ no technology to make bus a/c for themselves ▪ Difficult to focus on the air conditioner project because of other ongoing task
- 22. SWOT Analysis ▪ KBautotech company’s Failure ▪ High tariff rate ▪ Lack of partner’s expertise about bus a/c ▪ Lack knowledge of global business▪ Have a lots of business experience (Volvo CE & SDLG, KIA, TATA DAWOO) ▪ Expertise and know-how about bus A/C ▪ No production facility in india
- 23. SWOT Analysis ▪ Easyto connect with automobile company ▪ get new market of bus AC ▪ may damaged NTF customer relationship ▪ Have a great FRP technic ▪ Leader in automobile in/exterior ▪ Good customer relationship in automobile market ▪ Have no experience of bus a/c ▪ Lack of manufacturing facility bus a/c
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- 27. Strategy Plan Product HSCode Concession Type Tariff Compressors 8414 9011 E-8 7.5% Condenser 8419 6000 E-8 7.5% Evaporator 8479 6000 RED 7.5% A/C parts 8415 9000 RED 10% Bus AC 8415 2010 EXC 10% Tariff 0% 0% 5% 5% 10%
- 28. 1 to 2 Years 2to 3 Years 3 to 5 years 5 to 10 years DHI ▪ To enter the new market, they have TA or JVC with ABS ▪ They provide their CBU products ▪ SKD ▪ Improving value chain for reducing price ▪ CKD ▪ evaluate possibility of localization LocalizationABS ▪ Make a special team for bus A/C business. ▪ Learning DHI’s knowhow and skills ▪ lncrease production facility ▪ find supplier of CON and EVA components. ▪ evaluate possibility of localization ▪ Find bus A/C components supplier NTF ▪ Sales volume forecast for marketing ▪ initiate marketing by their own relationships ▪ Provide Bus A/C frame ▪ Through the experience curve effect, maximize production efficiency
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- 30. Action Plan Execution ofMOU March 1, 2018 Formation of Joint Team for the Project March 3, 2018 Market Survey March 5, 2018 Business Plan (Feasibility Study) May 5, 2018 Approval of Business Plan by both the parties May 6, 2018 Finalization of terms of Joint Venture and Technical Assistance May 8, 2018 Signing of Joint Venture Agreement and Technical Assistance Agreement May 10, 2018 Incorporation of Joint Venture Company May 11, 2018 Execution of TA March 1, 2018 Formation of jointing for the Project March 3, 2018 Market Survey March 5, 2018 Business Plan (Feasibility Study) May 5, 2018 Approval of Business Plan by both the parties May 6, 2018 Finalization of terms of Technical Assistance May 8, 2018 Signing of Technical Assistance Agreement May 10, 2018
- 31. Action Plan ABS-NTF MOUfor marketing Joint presentation -presenting product to NTF existed customer Feasibility study - Both : Checking of production plans, production techniques, facility plans, etc. - NTF : Analysis of Competitive prospects, Sales Prospects - Both : Estimated profit & rate of return. Evaluation - Check products quality and defect
- 32. Action Plan ABS-DHI TA Jointpresentation -presenting product to NTF existed customer Feasibility study - Both : Estimated profit & rate of return. - DHI : Review of production methods and processes - Both : supplement for weaknesses between the two companies Evaluation -Check Possibility of change in national policies and factors of production
Editor's Notes
- #2 Hello my name is 서정표 I am so glad to get a chance to stand here and presentate about Bus cooler project Proposal for successful bus A/C market entry in india
- #3 index is composed of 5 forces analysis, swot, strategy plan and action plan
- #5 As you can see, We think threat of new entrants is low bps is low Ic is high bpb is high and ts is none Let me show you Why we think like this.
- #6 First, industry Competitors. India government proceed aggressive innovation like smart city or amrut for improve city and people quality Smart cities project simply say improvement, renewal and extension the city And this project include promoting a variety of transport options (For example promote TOD or public transport) Amrut project simply say Providing basic services to households and build amenities(편의시설) in cities This project also include improving Urban Transport and buses or Bus Rapid Transit System These two project promote the bus market growth SMART CITY : Smart Cities Mission are city improvement (retrofitting), city renewal (redevelopment) and city extension (greenfield development) plus a Pan-city initiative in which Smart Solutions are applied covering larger parts of the city. Promoting a variety of transport options (Transit Oriented Development [TOD] or public transport ) is one of the smart city’s feature Finally purpose is enhancing the quality of life of citizens Amrut Amrut mission are Providing basic services (e.g. water supply, sewerage(하수시설), urban transport) to households and build amenities(편의시설) in cities which will improve the quality of life for all this project include improving Urban Transport(e.g Ferry vessels for inland waterways (excluding port/bay infrastructure) and buses or Bus Rapid Transit System ** (대중교통 지향 개발(大衆交通指向開發, TOD)은 Transit Oriented Development의 약자로서, Development of residential and commercial areas designed to maximize access to public transport and, and development that focuses on the convenience of public transportation users ** Bus rapid transit system A public transportation system that operates buses by express bus, equipped with bus only lanes, convenient transfer facilities, priority traffic at intersections and other items provided by the Act
- #7 As a result, you can see variety buses segment are growing and Bus Market is expected to grow at a CAGR of 9.36 % 그외에도 여성인력의 취업증가로 인한 대중교통 이용 확대 및 인구증가로 인해 대중교통 이용객 증가
- #8 And next prospect of india bus A/C market Now Ac bus rate is just 10% but many Media and Company directors forecast that bus a/c market will grow rapidly and achieve 20 to 25 percent CAGR. There are several reasons about that.
- #9 First As the younger generation grows, they are activation the Economic So india total disposable personal income is steadly growing and people need more comfortable buses for improving their life quality
- #10 Second Number of foreigner visiting India’s CAGR is 7.1 % and they are ready ready to pay more money for comfortable buses People who travel abroad have enough money and without hesitation pay money for comfortable
- #11 Economic activation
- #12 It nearly 150,000 in lacs It is nearly 260 billion won
- #13 A/S. Standard 12 months warranty that comes with all our products. Comprehensive warranty including all spare parts, service and consumables for 3, 5, 7 and 9 years of use of our machines. 24 Hrs * 365 days Road Side Assistance in cities where Trans ACNR has its own regional service centres. Each of our machines come with a unique serial number that allows on line finger tip service access, that monitors and records the time line of our service response. The application works both on android and iOS, and is also desktop enabled. Over a tap, the complete machine history of the unit can be accessed by our customers, as well as our service staff. SES ( Service Escalation Sheet ), is a quick glance reckoner, that ensures every team member of our organisation stands committed and accountable to our customers, at all times and in every respect.
- #14 It was difficult to find the source, the quantity of the supply, and the market share of the data that was provided to India. However, there were data that they were providing to Tata. Since it has also entered India and is supplying Tata Motors, it is presumed that it is also supplying Tata Motors, India. 인도에 어느 공급처에 공급하는지, 얼마나 공급하는지, 시장점유율은 얼마인지 자료를 찾기 어려웠다. 하지만 타타에 공급하고있다는 자료는 있었다. 인도에 진출도 하였고 타타 모터스에 공급도 하고있으니 인도 타타모터스에도 공급하고 있을것이라 추정중이다.
- #15 보상시스템이 너무 많아 홈페이지 직접 참조 바람 인도에 어느 공급처에 공급하는지, 얼마나 공급하는지, 시장점유율은 얼마인지 자료를 찾기 어려웠다. 하지만 타타에 공급하고있다는 자료는 있었다. 인도에 진출도 하였고 타타 모터스에 공급도 하고있으니 인도 타타모터스에도 공급하고 있을것이라 추정중이다.
- #16 So entry barrier is high but a/c bus market and demends are growing . Therefore many opportunities are exist to entry
- #17 ICV: Intermediate commercial vehicle with GVW of 8 to 10 ton. MCV: Medium commercial vehicles with GVW of 10 to 15 ton. HCV: GVW of 16 ton and above.
- #18 Volvo scania mercedes
- #20 3. It is similar to the relationship between car and car tire 4. Because Set the bus air conditioning for the bus, not the bus air conditioning. So bus company who wants to change their supplier, new supplier customize their bus a/c to bus company
- #21 산업진입장벽이 높고 산업내 경쟁자가 많으며 구매자의 교섭력이 높고 공급자의 교섭력은 낮기에 적절한 진입전략을 제시해야한다
- #23 해외업무 경험미비 글로벌적인 지식 부족. 파트너들에게 오히려 발이 묶일수도
- #27 3. It is similar to the relationship between car and car tire 4. Because Set the bus air conditioning for the bus, not the bus air conditioning. So bus company who wants to change their supplier, new supplier customize their bus a/c to bus company
- #28 3. It is similar to the relationship between car and car tire 4. Because Set the bus air conditioning for the bus, not the bus air conditioning. So bus company who wants to change their supplier, new supplier customize their bus a/c to bus company
- #34 동작나열 : 뭐를 cbu 할것인가 타임라인 설정 Cbu 목록 구분 및 관세파악을 1달간 진행한다 자원지정 소량 많은 품목을 cbu로 수출하기보단 적정량을 수출해 재고비용을 줄이고 프로세스 구축에 힘쓴다 액션플렌이 잘 진행되는가 감독 내부보고 및 계획 진행 상황을 논의하기 위해 개최되는 정기 회의가 포함될 수 있습니다