1. 1
A
Project Report
On
Study of Growth Prospects of Indian Auto-Component Industry
&
Wheels India Ltd. Position
Submitted in partial fulfillment of the requirements
for the award of the degree of
Master of Business Administration (International Business)
By
PushkarChaturvedi
Enrollment No. – GH7352
Faculty Roll No. – 13MBAIB 15
Under the Supervision of
Mr. A.K.S. Chandel
(Divisional Manager- H.R. &Administration)
RAMPUR DIVISION
Department of Business Administration
Faculty of Management Studies and Research
Aligarh MuslimUniversity, Aligarh

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ACKNOWLEDGEMENT
I PushkarChaturvedi, student of M.B.A International Business, F.M.S.R., Department of Business
Administration, Aligarh Muslim University, Aligarh, would like to extend my sincere & heart full
obligation to Wheels India Ltd to provide me an opportunity to work as a summer intern in
their esteemed organization.
My appreciation extend to my mentor Mr. A.K.S. Chandel under whose supervision I complete
my training. Under his sincere guidance & support I was able to complete my project
successfully. I am thankful to him for his able guidance & support that carried along with me all
through project. I would also like to thank Mr. AkhileshSoti&Mr. J.P. Singh& all the
departments’ heads & employees of wheels India Rampur for their support & encouragement.
I am equally great full to Dr. Feza T. Azmi, our Teacher & Placement advisor, faculty of
Management Studies & Research, A.M.U, Aligarh for extending her support & her valuable
suggestion always help me during my project.
A special gratitude I bestowed to Prof. M. IsrarUlHaque, Chairman, Dean, Department of
Business Administration, A.M.U. for his help & support.
I would love to take this opportunity to thank my family, friends and all those who’s effort and
help have made this internship project a success. Above all, I thank god almighty for giving me
strength to work and successfully complete this project.
PUSHKAR CHATURVEDI

3. 3
CANDIDATE’S DECLARATION
I hereby declare that the work presented in this dissertation entitled “Study of Growth
Prospects of Indian Auto-Component Industry & Wheels India Position”, in partial
fulfillment of the requirement for the award of the degree of Master of Business
Administration (International Business), submitted to Faculty of Management
study & Research, Department of Business Administration, Aligarh Muslim
University, is an authentic record of our own work carried out during the period from
0206/2014to 28/07/2014 under the guidance of Mr. A.K.S.Chandel, Divisional
Manager (H.R.& Administration), Wheels India Ltd.
The work reported in this dissertation has not been submitted by me for award of any
other degree or diploma.
Date:PushkarChaturvedi
Place: Aligarh

4. 4
CERTIFICATE

5. 5
ABSTRACT
India is 2nd fastest growing economy, also growing as hub for auto manufacturing industry.
Most of global auto manufacturing leaders are moving towards Indian market. Auto-
component Industry could be the future base for Indian economy. In this study I tried to find
out various factors empowers India as an auto manufacturing hub, also I tried to forecast future
growth of Indian Auto-Component Industry & its Impact on Wheels India Ltd.
In this study I also find out emerging global opportunities for Indian auto component industry,
this study were conducted considering whole TVS group companies. What could be the future
trends in global auto-Component market, at last recommended various strategies could be
fruitful for Wheels India ltd.
This study also focusing on India as an emerging global exporter.
This study focusing on 3 aspects –
1. Study of India as an Auto manufacturing hub.
2. Growth prospects of Indian Auto-Component Industry.
3. Wheels India Position & Emerging opportunities In Market.

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CONTENT
Acknowledgement…………………………………………………………………. (II)
Candidate’s Declaration…………………………………………………………... (III)
Abstract…………………………………………………………………………………… (IV)
1. Chapter-1 Introduction……………………………………………………….
 Market Overview……………………………………………………………………………
 Export scenario………………………………………………………………………………
 Key Product…………………………………………………………………………………...
 Key Product Categories & segment for Export...................................
 Major Characteristics...…………………………………………………………………..
 Major Findings……………………………………………………………………………….
 Challenges faced by Indian auto component industry……………………
a) Raw material prices……………………………………………………………………..
b) Competitiveness………………………………………………………………………….
c) Inability to Have Dedicated R&D, Testing and Design Capability….
d) Finance Related Issues…………………………………………………………………
e) Finance Related Issues…………………………………………………………………
f) Market Exposure…………………………………………………………………………
g) Manpower/ Human Resource Related Issues………………………………
h) Basic Infrastructure……………………………………………………………………..
2. Chapter – 2 Company Profile………………………………………………
 Company Profile……………………………………………………………………………..
 WHEELS INDIA LTD. POLICIES………………………………………………………….
a) Quality policy……………………………………………………………………………….
b) Laboratory quality policy………………………………………………………………
c) Environmental Management System Policy…………………………………
d) Key Management Philosophy / Shared Value System………………….
 Brief History of Wheels India Ltd. ………………………………………….

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 Plants in India………………………………………………………………………………….
 Product Range…………………………………………………………………………………
 Customers……………………………………………………………………………………….
 TVS Group………………………………………………………………………………………..
 Major Companies of TVS Group……………………………………………………….
 Wheels India Rampur Plant………………………………………………………………
 Organizational cluster of Rampur Plant…………………………………………….
 Achievements of Wheels India Rampur plant…………………………………...
3. INDUSTRY OVERVIEW………………………………………………………….
3.1 Introduction…………………………………………………………………………………….
3.2 Total Automotive Component Market in India………………………………..
3.2.1 Market overview……………………………………………………………………………………..
3.2.2 Characteristics of the Indian Automotive Components Industry……………...
3.3 Competitive Structure…………………………………………………………………….
3.4 Automotive Clusters in India ………………………………………………………….
3.5 Distribution Structure …………………………………………………………………….
3.6 Current State of Transnationalisation……………………………………………..
3.7 Growth Drivers for the Auto Component Sector……………………………..
3.8 Export Scenario in the Auto Component Market …………………………….
3.8.1 Export Mechanism and Key Product Categories and Segments for Exports…….
3.8.2 Potential for exports in various categories…………………………………………………….
3.8.3 Key auto component export destinations from India…………………………………….
3.9 Emergence of Indian Suppliers in the Global Market………………………….
3.10 India’s Potential to become Epicenter of High-end R&D ………………….
4. Chapter -4 Research Methodology……………………………………………..
 INTRODUCTION…………………………………………………………………………………
 Purpose of study……………………………………………………………………………….
 Research Objectives …………………………………………………………………………

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 Research design……………………………………………………………………………….
 Type of Data used……………………………………………………………………………
 Cause & Effect………………………………………………………………………………..
 Statically tool used………………………………………………………………………….
5. Chapter -5 Data analysis ………………………………………………………..
 ANALYSIS OF GROWTH OF INDIAN AUTO COMPONENT INDUSTRY….
 Wheels India position comparative analysis……………………………………
6. Chapter – 6 Conclusion………………………………………………………………
7. Chapter -7 Recommendation……………………………………………………..
8. Chapter – 8 Limitation & Bibliography………………………………………..

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CHAPTER – 1
INTRODUCTION

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INTRODUCTION
1. Market Overview
The Indian automotive component industry is small in size compared to the world market (INR
740, 0 billion). The industry has been experiencing a high growth rate of 27 percent over the
period 2001-06 and 13 percent over the period 2006-14, in year 2012-13 growth rate is 5.6%.
The quality of components made in India has improved significantly in the last decade and
about 11 Indian auto component companies have won the Deming prize so far. India is
estimated to have the potential to become one of the top five auto component economies by
2025.
2. Export Scenario
In 2012-13, automotive component exports from India were worth INR 582 billion and are
expected to reach INR 840 billion in 2016. While growth rate of exports has been 38 percent
during 2002-06, the export is growing by 24.4 percent during 2006-15. India exports a vast
range of automotive chassis and components. The major component categories that have
shown a healthy growth in exports are vehicle components and accessories, transmission shaft
and cranks, drive axles, starter motors, generators, and bumpers. The driving force behind
India’s growing automotive components exports in the past has been higher exports by Indian
subsidiaries of global OEMs and tier-I manufacturers.
3. Key Product Categories and Segments for Exports
The engine components segment is technology and capital intensive and is likely to be
dominated by the existing major firms in the short to medium term. Engine technology is

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expected to move towards superior design (for optimal fuel consumption and lesser emission),
thus access to such technologies will be limited to the existing major firms. Among drive
transmission and steering components, the steering systems are among the critical components
of a four-wheeler. The capital and technology intensive nature of the segment acts as an entry
barrier for companies in the unorganized segment.
4. Major Characteristics
The Indian auto component industry is a thrust sector for India. The direct employment
generated by the medium and large firms in the organized sector is 2.5 lakhs. In terms of
location, over 70 percent of the automotive components companies are situated in either the
northern or western regions. Delhi, Pune, and Chennai have traditionally been the most
important clusters for the automotive components segment in India. The industry has 500
medium and large key participants in auto components in the organized sector, along with
6,000 ancillary units. The unorganized sector predominantly caters to the aftermarket.
Manufacturers in this sector operate independently with little investment and on a small scale.
They generally produce components based on copied drawings and their quality is below
average. Most components required by the Indian automobile industry are manufactured
locally. Import dependence is estimated to the tune of 13.5 percent of the domestic demand.
5. Major Findings
Major factors affecting the competitiveness & growth of the Indian auto component
manufacturers and exporters and challenges faced by the Indian auto component industry with
respect to input cost, quality, delivery schedule, scaling up operations and government policies.
Many of the top executive of the companies are increasingly buoyant about India’s prospects
for the next five years both in terms of exports and investments by Indian companies abroad.

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6. Challenges faced by Indian auto component industry
1. Raw material prices- Some of the challenges faced on raw material prices include rising
prices, fluctuating prices, discriminatory higher pricing by foreign vendors for Indian
component manufacturers, custom free import of finished goods from ASEAN countries
under FTA.
2. Competitiveness- the South East Asian companies are over taking Indian auto-
component companies in competitiveness. Thailand and Korea apart from China are
highly competitive. The major threat to India’s export is expected to be from other Asian
nations such as Thailand and Taiwan.
3. Inability to Have Dedicated R&D, Testing and Design Capability: Many of Indian auto
component manufacture are small in size, their financial conditions do not permits them
for R&D, testing and design capability.
4. Finance Related Issues: finance is always a key issue for any manufacturing industry,
Indian industry needs high level of foreign investment to conduct R&D and for high
productivity, but it is challenging for Indian auto component industry. Some other
challenges are delay in duty drawback and incentives, currency fluctuation and
frequent changes in DEPB rates.
5. Finance Related Issues: At present, foreign partners of Indian companies insist on
arbitration in their home country primarily due to lack of trust in Indian arbitration
process. Among SMEs, this works as a deterrent for entering in to any business
relationship with a foreign company.
Small companies find it difficult to navigate through the legal documentation for any
transnational business interaction. Such companies are not aware of legal experts who
can address to their legal documentation requirements keeping the law of the land of
the country where they want to do business.

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6. Market Exposure:The small and medium companies in auto component sector do not
have enough resources to create awareness about their companies and products in
even key markets.
7. Manpower/ Human Resource Related Issues:Availability of trained manpower and
productivity is a big challenge. Rising wage cost& various provisions of labor law could
be other H.R. related challenges.
8. Basic Infrastructure: Power shortage is a major concern for many companies located in
several industrial belts across the country.
Poor logistics/ transport infrastructure and seemingly cartelization of transporters are
also the areas of concern.
The prominent Ports in India are congested and as a result there are delays in shipment
of consignment.

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CHAPTER-2
COMPANY PROFILE

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COMPANY PROFILE
Wheels India Limited is company promoted by the TVS Group, India’s largest auto component
manufacturers. Starting with a bus service in 1911, the TVS Group has grown to become one of
India’s largest business houses with businesses in two wheelers, vehicle dealerships & logistics
and auto components which had a turnover of over USD 7 Billion (FY 2012-13).
Wheels India (established in 1962) is one of the largest steel wheel manufacturers in the world.
The company had turnover of USD 375 Million (FY 2012-13) coming from the segments of Cars/
UVs, Commercial vehicles, Tractors, Single Piece wheels and Construction & Earth Mover
wheels. The company also manufactures air suspension kits for trucks and buses. With over 15
% of its turnover coming from exports, particularly from the Construction & Earth Mover
equipment segment, it is truly a global player in the auto components industry.
Wheels India started production of wheels for commercial vehicles in 1962 at our plant in Padi,
Chennai. The company started the production of car and tractor wheels in Padi in 1965. In
1972, the company made a foray into the construction equipment sector with Hindustan
Motors (now CAT India). In 1982, the company opened its second facility in Rampur for tractor
wheels. Wheels India entered the wire wheel business in 1988 and also entered the air
suspension market under the brand “WILRIDE”. In 1998, the company opened a facility in Pune
to cater to this growing automotive hub. This facility manufactures wheels for car, trucks and
busses.
The 2000s represented a decade of growth for the company and 2000 marked its entry to the
earth mover market with 35” and 49” wheels. In 2005 the company started manufacturing
forged aluminum wheels to cater to the growing after market for truck and trailer

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manufacturers. 2007 marked the setup of 2 new facilities in Sriperumbudur for Big OEM wheels
and Bawal for car wheels. In 2009 the company setup a new facility in Pantnagar to cater to the
growing truck and light commercial vehicle business.
Wheels India is a partner to various Global OEMs like Ford, Hyundai, Tata, Caterpillar, John
Deere, Komatsu, Hyundai Heavy Industries, Case New Holland, Leyland, Tafe and Suzuki. The
company has won various awards which stand as a testament to its “Quality First” policy, to
name a few – CAT SQEP Silver Certification 2010, TPM Award & Certification, Toyota Supplier
Award for Quality & Cost ’09 and Regional Contribution Award from Toyota in 2013 Global
Suppliers Convention.
The company believes that its future lies in partnering OEMs in their growth and providing
service to match. Wheels India has launched aftermarket brand “TVS WILGO” for catering
aftermarket need in 2012.

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WHEELS INDIA LTD. POLICIES
Quality policy
1. Maintain leadership in domestic market & establish leadership in new markets.
2. Ensure customer satisfaction through timely delivery of products & services.
3. Continual improvement in product design, process technology and work environment to
offer better value added products.
4. Bring about involvement of all in achieving the above objectives.
Laboratory quality policy
Wheels India management is committed to ensure that the quality of tests and services
level delivered by the laboratory satisfies the requirement of customers. They shall
achieve this by:
1. Establishing and maintaining laboratory management system aligned to international
standard ISO/IEC 17025.
2. By familiarizing all concerned laboratory personnel with the system document and good
professional practices.
3. Continual improvement of the effectiveness of the laboratory management system.

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Environmental Management System Policy
Wheels India ltd., a leading manufacturer of wheels & Air suspension system in India, are
committed to the entitlement of all, to a clean environment.
They strive to:
 Comply with ISO 14001: 2004 standard.
 Comply with environmental legislation, regulation and other requirement
 Continual improvement in environmental performance by :
 Conservation of natural resources.
 Prevention of pollution ( at source / reduction of negative impact/ recycle/reuse
)
 Setting and review suitable objectives & targets.
Provide on-going training to bring about a culture of environment protection as a core value
and involve all employees in achieving the above.
Review environmental performance periodically for adequacy and suitability.
Key Management Philosophy / Shared Value System
 Customer’s satisfaction: Maintaining high product quality, timely delivery of products
and services and offering cost effective products and services.
 Mutual trust and confidence and transparency.
 High standards of values – honesty and integrity. Giving the best to all stakeholders.
 Concern for employees.
 Social Responsibility.


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BRIEF HISTORYOFWHEELS INDIA LTD
Wheels India Ltd. is promoted by the TVS Group and was started in year 1962 to manufacture
automobile wheels. The company was incorporated under the companies act, 1956 on 13th
June 1960. It is a public limited company and the company’s share listed in the National Stock
Exchange (NSE). The Company is managed by its chairman under supervision of the Board of
Directors.
Today, Wheels India has grown as a leading manufacturer of steel wheels for passenger cars,
utility vehicle, trucks, buses, agricultural tractor and construction equipment in India. The
company supplies 2/3rd of domestic market requirement. Export to North America, Europe, Asia
Pacific and South Africa contribute 14.31% of sales turnover.
The Company has technical-financial collaboration with Titan Europe.
Wheels India design and manufactures wheels for the specific requirement of customer. Our
activities are driven by the following objectives.
 Maintain leadership in domestic market and presence in Export Markets.
 Ensure customer satisfaction through timely delivery of quality products and services, at
competitive prices.
 Continually improve & innovative product design, process technology and work
environment to offer better products.
 Bring about involvement of all employees in achieving the above objectives.
A Journey on wheels……..
 Year 1960 Wheels India Factory
 Year 1962 Start of Production - Commercial Vehicle Wheels(Truck)

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 Year 1966 Start of Production - Low Pressure Wheels (Passenger Car)
 Year 1968 Start of Production - Agricultural Tractor Wheels
 Year 1974 Supplies to Hindustan Motors - Construction equipment
 Year 1982 Start of Production - Wire Wheels
 Year 1982 Start of Production - Rampur Plant
 Year 1986 Start of Production - Air Suspension
 Year 1988 Start of Production - Tubeless Truck Wheels
 Year 1993 Supplies to CAT (Earth Moving Wheels)
 Year 1996 ISO 9001 Certification
 Year 1996 Start of Production - Exports & Across the Globe
 Year 1997 Start of Production - Pune Plant
 Year 2003 ISO 14001 Certification
 Year 2004 ISO / TS 16949 Certification
 Year 2004 Start of Production - Forged Aluminum Wheels
 Year 2005 Ford Q1/Global Excellence Award
 Year 2006 Maruti Suzuki India Ltd - Vendor Performance Award
 Year 2006 Start of Production - Bawal Plant
 Year 2007 Toyota Best Quality Supplier Award
 Year 2007 Start of Production - Sriperumbudur Plant
 Year 2009 CAT SQEP Silver Certification
 Year 2009 Start of Production - Pantnagar Plant
 Year 2010 Start of Production - Deoli Plant - Heavy Engineering Divison
 Year 2010 TPM Excellence Award
 Year 2010 Start of Production - Energy Equipment Parts Divison
 Year 2012 NABL Accreditation - ISO / IEC 17025:2005 - Mechanical / Chemical
 Year 2012 CAT SQEP Gold certification

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PLANTS IN INDIA
1. Padi, Tamilnadu. ( Established in year 1962 )
2. Rampur, Uttar Pradesh. ( Established in year 1986)
3. Ranjangaon MIDC, Pune, Maharastra. ( Established in year 1997 )
4. Bawal, Haryana. ( Established in year 2005 )
5. Sriperumbudur, Tamilnadu. ( Established in year 2007 )
6. Pantanagar, Uttarakhand. ( Established in year 2009 )
7. Wardha, Maharastra. ( Established in year 2009 )
8. Irrungattukottai, Tamilnadu. ( Established in year 2010 )
9. Thirumudivakkam. Tamilnadu. (Established in year 2012 )

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PRODUCT RANGE
Wheels India has ability to design the complete range of steel-wheels to suit customer
requirement, incorporating necessary styling and performance characteristics.
 Wheels for heavy vehicle (Truck, Buses, Light commercial vehicle, Trailer, Tripper etc.)
 Wheels for Light Vehicle ( passenger cars, Mini Vans, SUV’s &Muv’s)
 Wheels for agriculture application. (Tractors, Combines, Farms Equipment’s etc.)

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 Wheels for off-Road Construction Equipment’s
 Wire Wheels (for contemporary & Classic cars, MUV’s & SUV’s).
 Air Suspension.
 EEPD – Manufacturers for Energy Equipment Parts and precision machined component)
 Wardha – Manufacturers technological structural like auto welded beam, boxes,
bracing, columns, ducts, general and special fabrication for power plants and other
infrastructure sector.
 FAB – Manufacturers of dumpers bodies for dumps truck and fabricated parts for
constructional equipment industry.

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CUSTOMERS

25. 25
T.V.S. GROUP
T.V.S. group is an India multinational conglomerate was started as family owned business. It
have roots in various sectors like motors parts, finance, energy, logistics, road transport,
insurance etc.
T.V.S. group was founded by Sri T.V.SundaramIyenger in 1912. He was a visionary, whose ideas
were year ahead of their times, and a man of principles. Both these things combined to make
him a legend in his own lifetime all over southern India.
T.V.S. group base founded from a Bus service started by T.V.
SundaramIyenger in 1912 in the city of Madurai and laid the
foundation of motor transport industry in southern India.
He established the T.V. SundaramIyenger and sons limited in 1923 and
operate number of buses and Lorries under the title of southern
roadways limited .this paved the way for genesis of TVS group.
During the time of Second World War, madras presidency faced petrol scarcity. To meet the
demand, Sri T.V. SundaramIyenger designed and produced the TVS gas plant. He also started
factory for rubber re-trading, besides two more concern, the madras auto service ltd. And the
Sundaram motors ltd., the former was the largest distributors of General Motors in the 1950s.
What started a single man’s passion soon became the business of family. Sri T.V.
SundaramIyenger had five sons and three daughters. Sri T.S. Duraisamy, Sri T.S. Rajam, Sri T.S.
Santhanam, Sri T.S. Srinivasan, and Sri T.S. Krishna, became integral part of business and ever
since there have been four largely distinct branches that, however, have worked under the TVS
umbrella

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COMPANIES UNDER TVS GROUP
 TV sundaramIyenger& sons limited
 India motor parts and accessories limited
 Wheels India limited
 Brakes India limited
 Sundaram industries limited
 Sundaram fasteners limited
 TVS motor company limited
 Sundaram finance limited
 Turbo energy limited
 Sundaram Clayton limited
 Lucas-TVS limited
 Sundaram brake lining limited
 TVS logistics limited
 Southern roadways limited
 TVS Srichakra limited
 IRIZAR TVS limited
 Royal sundaram alliance Insurance Company limited
TVS Group have annual turnover of over USD 7 Billion (FY 2012-13). About 20 % of its revenue
Come from export. TVS is also fastest growing Indian player in two wheeler vehicles market
.
TVS has its own School and Hospital in Madurai. Sundaram medical foundation is a community
Hospital in Chennai.

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WHEELS INDIA RAMPUR PLANT
In 1982, the company opened its second facility in Rampur for tractor wheels production.
Land Area - 14.73 acres
Total area – 59650 meter. Square.
Covered area – 18132 meter. Square.
Open area – 41518 meter. Square.
sdsd
Products
Wheels for Commercial Vehicles, Agriculture Tractors and Farm Equipment.
Wheels India, Rampur is divided in four part that are-
1. Tractor line – manufactures tractor wheels front and back wheels. This setup is totally
automated facility consists of Rim Line, Assembly Line and Quality control Line. This
plant have monthly capacity of 4000 units.
2. Paint plant– this plant is semi-automated in process .this plant processes final touch up
to product.
3. Commercial vehicle 1 Line- produces wheel for the earthmover & machines like J.C.B.,
construction vehicles.
4. Commercial vehicle 2 Line- this facility manufactures wheel for leading truck
manufacturers like Ashok Leyland, Mahindra, & Tata trucks.
5. Caspier plant – it is the result of wheels India’s R&D. by using wood they produce gas to
that is uses by new machines to compress the wheel. By using this technique, this plant
uses less electricity in comparison to other plants.

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ORGANIZATION CLUSTER OF RAMPUR PLANT
CLUSTER C.E.O Mr.
R.Kapoor
j
MMCORDINATOR-1
Mr.J.K.Pandey
CORDINATOR-2
Mr.H.Kulkarni
ZONE LEADERS
ZONE-1 T.R.RIM
ASSEMBLY LINE
Mr. S.K.Jha
ZONE-2 DISC LINE
Mr.S.Singh
ZONE-3 C.V.1
Mr. M.S.Rawat
ZONE-4 PAINT PLANT
Mr.B.K.Thakur
ZONE-5 C.V-2
Mr.Bala Ram
ZONE-6 TOOL ROOM
Mr.S.K.Garg
ZONE-7 STORE
Mr.R.Singh
ZONE-8 MAINTENANCE &
UTILITIES
Mr.A.N.Singh
ZONE-9 RAW
MATERIAL STORE
Mr.Parvendra
ZONE-10 OFFICE
CANTEEN OUTSKIRT
Mr.A.K.S.Chandel

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Achievements of Wheels India Rampur plant-
 BUREAU VERITAS Certification for Quality Management system of steel wheels (16
January 2012 )
 BUREAU VERITAS Certification for effective supplier of steel wheels for truck, tractor &
commercial vehicles ( ISO 9001:2008 Standard ) (16 October 2008 )

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CHAPTER – 3
INDUSTRY OVERVIEW

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INDIA AUTO COMPONENT INDUSTRY –
OVERVIEW
3.1 Introduction
The Indian automotive components industry has emerged as one of India's fastest growing
manufacturing sectors and a globally competitive one. The total global auto components trade
was worth INR 7400 billion in 2006-2007 and is expected to grow to INR 70,000 billion in 2015.
The auto component sector in India generated sales of about INR 600 billion in 2006-07, INR
2161 billion in 2012-13. The ACMA-McKinsey Vision 2015 document estimates the potential
for the Indian auto component industry to be INR 1,600 billion to INR 1,800 billion by 2016. In
2012-13 automotive component exports were worth INR 582 billion and expected to reach INR
720 billion in 2015.
The industry has been experiencing a high growth rate of 13 percent over the period 2006-14.
Similarly, while growth rate of exports has been 5.6% percent during 2012-13, the exports are
grow by 24.4 percent during 2006-14. The quality of components made in India has improved
significantly in the last decade and 11 Indian auto components’ companies have won the
Deming prize so far. India is estimated to have the potential to become one of the top five auto
component economies by 2025.

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3.2 Total Automotive Component Market in India
Indian automotive components are now part of many major markets in North America and
Europe. Around 70 percent of these are exported auto components bought by global majors
such as General Motors, Ford Motor and Daimler (formerly DaimlerChrysler), among others.
India has a strong auto component base for various mechanical, electrical and electronic
components. Many auto component companies are home grown and have a strong
background. When MarutiUdyog started operations, many Japanese companies formed joint
ventures with companies in India and also set up world class manufacturing facilities in India.
Many Indian companies through their association with Maruti upgraded all facets of their
business including productivity, quality, and delivery systems, among others. Entry of many
multi-national vehicle manufacturers from Korea, Europe and US in India from 1995 onwards
enabled global component suppliers to enter India in a big way.
3.2.1 Market overview-
India's component industry has achieved the capability to manufacture the entire range of
auto components, such as engine components, drive and transmission components, suspension
and braking components, electrical components, and body and chassis components. Engine
components make up nearly a third of all exports of auto components from India. The
automotive component industry caters to three broad categories of the market:
1) Original equipment manufacturers (OEM) or vehicle manufacturers comprise 25 percent
total demand.
2) Replacement market that comprises 65 percent of the total demand
3) Export market that comprises primarily of international tier-I suppliers and constitutes 10
percent of total demand
The key segments of the Indian automotive-component market include:

33. 33
• Engine components (31 percent): Engine components fall into three broad
categories— core engine components, fuel delivery system and others. This also includes
products such as pistons, piston rings, engine valves, carburetors, and diesel-based fuel delivery
systems. This is the most critical component and requires high involvement from the supplier.
• Drive transmission and steering components (19 percent): Gears,
wheels, steering systems, axles and clutches are the important components in this category.
• Body and chassis (12 percent)
• Suspension and braking components (12 percent) - These include brakes,
leaf springs, shock absorbers
• Equipment (10 percent) - This includes headlights, dashboard instruments
• Electrical components (9 percent) - The main products in this category include
starter motors, generators, spark plugs and distributors.
• Others (7 percent) - Sheet metal components and plastic molded components are two
of the major components in this category.
3.2.2 Characteristics of the Indian Automotive
Components Industry
Thrust sector of India the Indian auto component industry is a thrust sector in India. The direct
employment generated by the medium and large firms in the organized sector is 250,000 man-
years.

34. 34
Geographical spread of the industry
In terms of location, over 70 percent of the automotive components companies are situated in
either the northern or western regions. NCR/ Delhi, Pune, and Chennai-Bangalore have
traditionally been the most important clusters for the automotive components segment in
India. With Tata setting up its manufacturing unit in Singur, West Bengal and its existing
manufacturing base in Jharkhand, eastern regions is likely to emerge as an equally important
cluster.
Low volume and fragmented industry
There are over 500 small, medium and large players in auto components in the organized
sector along with 6,000 ancillary units. Most of these companies in India are family-owned
businesses. The unorganized sector predominantly caters to the aftermarket. Manufacturers in
this sector operate independently with little investment and on a small scale.
Low import dependence
Most components required by the Indian automobile industry are manufactured locally. Import
dependence was estimated to the tune of 13.5 percent of the domestic demand for the year
2007. Imported automotive components include special steels and materials or high precision
engineering components, such as gearboxes.
3.3 Competitive Structure
Leading manufacturers from across the globe have initiated steps for developing a vendor base
in India by inviting their suppliers to set up manufacturing companies here. Leading automotive

35. 35
component companies such as Lear Corporation, Delphi, Visteon, Mando, ZF Steering, and
Denso have a strong presence in India and cater to the OEM and the aftermarket. Some of the
major domestic automotive components manufacturing groups in India include the TVS, Rane,
Amalgamations, Kalyani, Sona, Rico, Minda, Amtek, among others. The two-wheeler market is
the largest volume segment in India and automotive component companies in this segment
have well- developed technology and quality systems in place. Many auto component
companies apart from catering to the domestic demand also have strong export operations. It
is estimated that 15 to 25 percent of the turnover of many large-sized Indian auto component
manufacturer is accounted for by exports. A significant trend in the last 2-3 years is the interest
shown by vehicle manufacturers and global tier-I companies in procuring components from
India.
The SME players in the auto components sector are formally organized under the auto
component manufacturers association (ACMA). Many companies present in India, as in-house
vendors of vehicle manufacturers, are not part of ACMA and are estimated at nearly 125 in
number. A large number of auto component companies cater exclusively to the aftermarket
and are unorganized in nature and these are estimated at 375. The engine and transmission
components account for about 50 percent of the component output in India. The engine
components account for 31 percent of the total automotive component production output and
transmission and steering components account for 19 percent of the output. All engine and
transmission components like engine block, piston, valves, camshaft, crankshaft, gears, and
casings are manufactured locally. Companies in India possess well-established foundries for
forged and cast components and are globally competitive.
The quality consciousness of the industry matches the global standards. This is corroborated by
the fact that eleven Indian companies in the automotive industry have received the coveted
Deming Prize, which is the largest number outside Japan. The auto component suppliers are
also embracing modern shop floor practices like 5-S, 7-W, Kaizen, Total Quality Management,
6-Sigma and Lean Manufacturing, as they graduate to match with world-class industry. A large
number of firms in this industry are also recipients of quality certificates like ISO-9000, TS-
16949, QS-9000, ISO-14001 and OHSAS-18001.

36. 36
3.4 Automotive Clusters in India
Mumbai-Pune, Chennai-Bangalore, Delhi-National Capital Region (NCR) are the major
automotive clusters in India and majority of the automotive component manufacturers are
located in these clusters.
Table 2.1 Estimated Number of Major Supplier Manufacturing Units
LOCATION NO. OF MANUFACTURING UNITS
Mumbai-Pune 185
Chennai-Bangalore 120
Delhi-NCR 250
Source: ACMA
As the presence of the major OEMs is in these major clusters, Indian automotive-component
suppliers have mostly been based in three major clusters. The three clusters—around Delhi,
Mumbai-Pune and Bangalore-Chennai—are areas that have received high automotive
investments in the past and where the prominent OE manufacturers are located. Infrastructure
problems such as poor roads, connectivity and communication issues resulted in the formation
of automotive clusters. There is an ongoing expansion in these regions, as the existing OEMs
have increased production capacities and attracted new suppliers and their product mix and
technology requirements have widened. Government has been proactive with plans to
establish vehicle test facilities in each of these automotive clusters to quicken the
homologation procedure.
Mumbai-Pune is the oldest and largest cluster with the presence of large OEMs such as Tata
Motors, Fiat, General Motors India, Mahindra, and DaimlerChrysler in passenger cars; Tata
Motors and Force Motors in commercial vehicles and Bajaj Auto and Kinetic in two-wheelers.
To support these OEMs in the region, there are a number of large suppliers including Tata Auto

37. 37
Comp, Bharat Forge, and Bosch, Wheels India (Pune plant), Lear and a whole lot of smaller
component manufacturers.
The cluster around the National Capital Region (NCR) of Delhi originated with Maruti
establishing its base in Gurgaon and the Suzuki-owned company was subsequently instrumental
in establishing a supplier base for its cars. With most of the OE companies being Japanese
manufacturers or their collaborations, a high percentage of suppliers in the NCR cluster have
Japanese origins, equity or technical inputs. The leading suppliers in this area are mostly Maruti
affiliates like Asahi Glass, Krishna Maruti, Sona Koyo, Jai Bharat Maruti (JBM), Omaxe and
Bharat Seats. Maruti's new investment plans have increased the investment in the region as
existent as well as new suppliers have announced plans to expand and enter the region. Honda
SIEL Motors, based near Delhi also draws from the suppliers’ cluster in the region. While the
NCR region is at a disadvantage because of its large distance from ports, the Government has
responded well by setting up an Inland Container Depot (ICD) at Tughlakhabad to facilitate
exports.
Ashok Leyland in the commercial vehicles space and a small Hindustan Motors facility in the
passenger car sector primarily drove the auto component cluster in the Bangalore-Chennai
sector. However, the early 1990s saw manufacturers like Ford, Hyundai and Toyota setting up
manufacturing facilities there and a resultant inflow of suppliers into the area. Visteon, Delphi,
Wheels India, and Bosch are some of the important suppliers in the cluster. The proximity to
the Chennai port facilitates exports for the suppliers in the cluster. Toyota has established a
supplier park in the Bidadi region near Bangalore. This also has its own transmission
components unit under Toyota Kirloskar Auto components. Bangalore is also the Indian
headquarters of India's largest automotive supplier Mico Bosch.
The last decade has seen increased investment in the automotive sector in new geographical
areas. For example, the General Motors plant near Vadodara (Gujarat) and Sonalika Group’s
Car division in the Una district (Himachal Pradesh) has the potential to attract a number of
automotive component suppliers in that region. Tata’s Nano car manufacturing facility at Singur

38. 38
in West Bengal is likely to attract substantial investment for the auto component industry in the
state.
3.5 Distribution Structure
3.5.1 Indian Auto Component Supply Chain Structure
The supply chain of the auto industry has completely changed over the years. Major OEM
players are increasingly focusing on basic design and assembly operations as well as servicing
the after- sales market and they prefer to deal with a smaller number of large suppliers.
Consequently, the supply chain is morphing into sub-system integrators, component makers,
and commodity players. The segregation is increasingly defined by “risk sharing,” which was
earlier defined by only cost pressure. Tier-I suppliers (concentrating on system supply, module
assembly and sub-supplier management) are taking increasing risk from major players, shifting
the cost pressure to tier-II suppliers who concentrate only on the production of sub-
components.
In the Asia-Pacific region, the growth of component manufacturers has taken a different route.
Most of the Japanese producers follow a tight relationship with their suppliers (Independent or
quasi- independent). The existence of the keiretsu system (business affiliation) in Japan greatly
facilitated such an arrangement. But other manufacturers like Korean, Chinese and Indians give
a lot of importance to price and quality while buying from a number of trusted suppliers. As a
result of this, indigenous auto- component sectors are thriving in many Asian countries.
3.6 Current State of Transnationalisation

39. 39
Out of the 500 Indian companies, 326 (65%) are exporters of auto components. Also, 192
companies (38%) have entered in to foreign collaboration. This indicates a high level of
transnationalisation. However, the width and depth of transnationalisation may not be high in
majority of the organizations.
3.7 Growth Drivers for the Auto Component Sector
The growth of the auto component industry is directly linked to the growth of the automobile
industry since more than 50 percent sales are to the OEMs. However, in recent years,
component export is becoming an important growth driver and it is expected to assume greater
importance in future.
3.8 Export Scenario in the Auto Component Market
India exports a vast range of automotive chassis and components. The major component
categories that have shown a healthy growth in exports are vehicle components and
accessories, transmission shaft and cranks, drive axles, starter motors and generators, bumpers
and components.
The driving force behind India’s growing automotive components exports in the past has been
higher exports by Indian subsidiaries of global OEMs and tier-I manufacturers. Prominent
among them is Ford India, which has made India its global hub for manufacturing Ikon kits. The
company has also started procuring components and assemblies from China. Similarly, Hyundai
Motor India has decided to make India its sourcing hub for its small car Santro. In line with this
development, exports of replacement and service components have increased. Initially, a
majority of component exports were to South Korea but with increasing exports of Santro, the
share of components exports to Indonesia, Sri Lanka, and Turkey have also increased as the
company has already started exporting its cars to countries such as Algeria, Sri Lanka, and
Indonesia. Among tier- I companies, Delphi Automotive India, Visteon Automotive Systems and

40. 40
Visteon Powertrain Control Systems, FAG Bearings, Timken India, Keihin Fie, and Meritor HVS
India have all increased their export revenues from their Indian operations.
Exports growth has outpaced the growth in production over the last 5-year period. Exports
grew by a compound annual growth rate CAGR of 24.4 percent during the period 2006 to 2015.
Of the total production of INR 48,000 Crores in 2005 approximately INR 6,000 Crores worth of
components were embedded in vehicles that have been exported, reflecting the true potential
of exports. Emerging trend of global companies procuring components from India is expected
to drive the exports growth over the long term.
North America and Europe account for over 60 percent of the exports of auto components
from India.
3.8.1 Export Mechanism and Key Product Categories and Segments for
Exports
3.8 4 3.4
5.2
8.5 9.3
12
30
0
0.2
0.4
0.6
0.8
1
1.2
0
5
10
15
20
25
30
35
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2015-16 2020-21
AUTO COMPONENT INDUSTRY PROFILE - EXPORT
USD BILLION Column1 Column2 2 per. Mov. Avg. (USD BILLION)

41. 41
The engine components segment is technology and capital intensive and is likely to be
dominated by the existing major firms in the short to medium term. Engine technology is
expected to move towards superior design (for optimal fuel consumption and lesser emission),
thus access to such technologies will be limited to existing major firms. On the other hand, this
is the most labor-intensive segment and holds promise for growth of exports. Starter and
generator manufacturers form a major part of the electrical components segment. Given the
engine’s criticality in vehicle performance, these products are assembled mostly by the vehicle
manufacturers. Besides the increasing popularity of electronic ignition systems, the increasing
electronic content per vehicle has provided growth opportunities for companies in this
segment. Many multinational companies are strengthening their position here, because of the
opportunity to introduce new technology.
Among drive transmission and steering components, the steering systems are among the
critical components of a four-wheeler. The capital and technology intensive nature of the
segment acts as an entry barrier for companies in the unorganized segment. As power steering
systems reduce driving effort considerably, these are being increasingly preferred by OEMs,
which in turn is prompting manufacturers to shift their product mix towards such steering
systems. Access to technology and localization of production for power steering components
impacts the ability of local companies to withstand increasing competition and cost pressures
from OEMs.
The demand for gearboxes is primarily linked to the demand for passenger cars. The gearbox
segment is currently witnessing atierization of the supply base. Since gearboxes require high
precision engineering, and the establishment of a manufacturing unit calls for significant capital
investments, quite a few companies in the passenger car segment rely on imports of knock
down assemblies of gearboxes. In the clutch segment a few players, with technology, and
ability to supply complete assemblies, being critically important, dominate the OEM market.
Axles are critical components of a vehicle, and the capability to design and offer products to
meet exact engine specifications is a key success factor. Also, high capital requirements and
technical know-how may act as an entry barrier in this segment, thus leading to the likely

42. 42
concentration of market among a few players. Although some of the OEMs procure complete
assemblies, a large number of them still procure individual components, like housings, shafts
and differentials from various vendors. However, over time, it is expected that OEMs will
procure complete axle assemblies from one or two vendors rather than individual components
like housing, shafts and differentials from various vendors.
The brake system has a high replacement value and is not very technology intensive. As a
result, the companies in this segment continue to maintain a diversified customer base in both
the replacement and OEM segments (apart from exports). In addition, in this segment, there is
the threat of further tierization as the present tier-I suppliers (brake assembly suppliers) could
be relegated to the tier-II position. Currently, brake assembly suppliers provide to and deal with
the vehicle manufacturers directly. However, in the emerging structure, companies like Delphi
have started outsourcing brake assemblies from their tier-I suppliers, integrating them with
front-end suspension components, and then supplying whole units directly to OEMs.
In the equipment segment, the head light segment is perhaps the only one that is not directly
related to automotive technology. Leading companies in this segment have initiated innovative
measures to improve their responsiveness to OEM customers. The existing market leaders are
expanding and upgrading their facilities to meet the needs of the new car manufacturers. The
headlight segment also has considerable export potential. Currently, exports account for about
a fifth of the total demand for headlights. For the replacement market, companies are likely to
focus on distribution network, brand image, product portfolio and pricing policy.
3.8.2 Potential for exports in various categories

43. 43
In 2012-13, automotive component exports were worth INR 582 billion, and the exports are
expected to reach INR 840 billion in 2016. India is perceived to be very competitive in engine
components and other related hard components. Components that can be exported from India
are mainly engine and transmission products.
Auto component companies In India primarily supply various components and sub-systems to
vehicle manufacturers abroad. Vehicle manufacturers take the responsibility for design and
manufacture of engine and transmission systems. Indian auto component companies' work
based on the drawings provided by the vehicle manufacturers and have acquired necessary
skills for re-engineered products, processes and tools.
Auto component companies in India can export component sub systems of tier-II companies or
components that are used directly in the production of these sub systems. India has the
expertise in components that require skilled manpower to create the final product. Some of the
products that fall under this category include machined gears, crankshaft, camshaft, and casing
among others. India has a competitive edge in forging and casting. Foundries in India can
process various metals like grey iron, steel, and aluminum. Seats, belts and other rubber
products also offer potential for exports and India is on par with other low cost countries.
Components that have a clear cost advantage in India compared to other countries are
machined crankshaft, camshaft, gears, engine valves, piston and piston rings. Transmission
components include clutch lever, clutch plates, syncro assembly that have significant machining
needs can be exported from India. Small stamping components and other low volume products
manufactured in India also have good market abroad.
India is known for its software prowess and has considerable skill base in engineering services,
which include legacy conversion, CAD drawings, embedded systems, chip design, value
engineering among others. Software development includes creating programs for new product
simulation and testing, end of life vehicle initiatives, automotive electronics and infotainment
among others. Many MNCs such as Robert Bosch, and Delphi have started development centers
in India to meet global demand for design, and research as well as domestic demand in India.

44. 44
3.8.3 Key auto component export destinations from India
More than 60 percent of the exports of auto components are to USA and Europe, which
constitute high AQL (Accepted Quality Level) countries. The global focus of the Indian auto
component sector is expected to gain further momentum with a shift in the focus of Indian
component companies from the replacement market to the OE (original equipment) market.
The structure of the customer base in the global markets has also undergone a major change. In
the last decade, the aftermarket share Of exports has come down from 65 percent to 25
percent in 2010. The share of the component exports to OEMs and tier-I suppliers is increasing
gradually, ensuring long-term relationships and repeat orders on a regular basis.
Geographically, there has been a shift in the markets with the more developed markets of USA
and Europe accounting for a majority of exports. Of the total auto component exports to OEMs
and tier-I Suppliers, America and Europe together accounts for 57.5 percent, Asia accounts for
20 percent and Africa accounts for 10.8 percent of the export earnings and other regions such
as Oceania, etc. constitute the rest. The share of Asia in the global pie is gradually on the rise.
This signifies that the Indian component industry has now reached a high degree of maturity in
terms of quality and productivity and has also developed capabilities in the area of design and
engineering, which are critical requirements for being a part of the global supply chain.

45. 45
Table 3.2 Key Markets for Export of Auto Components from India
Product Segment
CONTINEN
T
MAJOR
COUNTRIE
S
Engine
Components
Drive
Transmissio
n & Steering
Component
s
Suspensi
on &
Braking
Compone
nts
Body
Chassis
Compon
ents
Electr
ical
Comp
onent
s
North
America
U.S.A,
Mexico,
Pistons, piston
rings, engine
Gears,
wheels,
Brakes,
leaf
Headligh
ts,
Starte
r
25%
ASIA
26%
NORTH AMERICA
35%
EUROPE
9%
AFRICA
1%
AUSTRALIA
4%
SOUTH
AMERICA
EXPORT DESTINATION
ASIA NORTH AMERICA EUROPE AFRICA AUSTRALIA SOUTH AMERICA

46. 46
Canada valves,
carburetors,
diesel- based
fuel delivery
systems, engine
components,
regulators, oil
coolers, cylinder
liners, propeller
shaft and
components, air
duct bellows,
engine mounts,
camshaft, valve
tappet, silent
block bush,
investment
castings, steel
forgings, primary
piston,
freewheels, stud
flange, exhaust
components,
water pumps, oil
pumps, intake
manifold and
exhaust
steering
systems,
axles and
clutches,
transmissio
n valves,
transmissio
n and gears,
gear axle
shaft,
torsion bar,
clutch shaft
springs,
shock
absorber
s, break
and
clutch
pedals
dashboa
rd
instrum
ents,
door
latches,
off-road
headligh
ts
moto
rs,
gener
ators,
spark
plugs
and
distri
butor
s,
electr
ical
equip
ment,
electr
onic
comp
onent
s,
instru
ment
s and
gauge
s,
electr
ical
and
machi
ned

47. 47
comp
onent
s,
altern
ator
comp
onent
s
Europe Italy,
Germany,
U.K.,
Denmark,
Spain,
Holland,
Croatia,
Serbia,
Turkey,
France,
Uzbekistan
, Sweden,
Ireland,
Slovenia,
Austria,
Poland
Piston rings and
pins, cylinder
heads, engine
components,
instrument
clusters, oil
coolers, cylinder
liners, air duct
bellows, horns,
fuel filter neck,
air springs,
bumper,
bracket, gusset
plate, retainer
kits, retinue
plates, corner
arms, off-road,
water pumps, oil
pumps, intake
manifold and
exhaust flanges
Open gears
and gear
boxes,
transmissio
n and
differential
gears,
wheel
balancing
component
s, clutch,
ring gears,
clutch shaft,
rims,
gaskets,
connecting
rods, TV
dampers,
gaskets
Break
and
clutch
pedals,
shackle,
propeller
shaft and
compone
nts, gear
axle
shaft,
torsion
bar,
camshaft
, valve
tappet
Door
latches,
door
hinges,
headligh
ts, dash
pane
Electr
ical
and
machi
ned
comp
onent
s,
altern
ator
comp
onent
s,
regul
ators,
conn
ector
s,
instru
ment
s and

48. 48
gauge
Asia pacific Middle-
East,
ASEAN,
SAARC,
Israel, Iran,
China,
Singapore,
Taiwan
Piston rings and
pins
Ring gears,
clutch, open
gears and
gearboxes.
brake
drums,
transmissio
n and
differential
gears, and
gaskets
Electr
ical
and
machi
ned
comp
onent
s
switc
hes,
prope
ller
shafts
, and
batte
ries
3.9 Emergence of Indian Suppliers in the Global Market
Indian auto component manufacturing is gradually expanding capacities and automation levels
in-line with the requirements of end users and introduction of new models and variants. This
offers vehicle and component manufacturers various challenges to the manufacturing
capabilities and economies of scale forcing the industry to maintain lean and efficient
manufacturing systems. The Indian auto component manufacturers have made a mark in the
domestic market and are establishing their presence in the global arena for increased growth.
The Indian auto component industry is targeting a bigger share of the export market and is in
the process of ramping up its manufacturing capabilities to meet the capacity and quality

49. 49
requirements. The sector is increasingly drawing global attention and is using a combination of
global expansion, domestic consolidation and quality management to gain acceptance both at
home and abroad.
The impressive growth of auto component exports is an example of the positive spin-offs of
Foreign Direct Investment (FDI). The entry of major auto component firms has resulted in the
domestic Industry upgrading its quality levels to international standards. The entry of Maruti
changed the environment for the better, as Indian auto component makers were exposed to
Japanese methods of production and some companies forged tie-ups with Japanese counter
components. Margins remained high as many vendors to Maruti like Sona Steering Systems and
MothersonSumi enjoyed near monopoly in OE supplies. Economic liberalization has changed
the entire scenario and the entry of global auto majors into India has forced Indian suppliers to
invest in quality and improve quality standards. They embraced Japanese concepts such as Six
Sigma, Total Quality Management (TQM), Total Productive Maintenance (TPM) and Toyota
Production Systems in their operations. Today, a number of them have also secured various
quality certifications and even the coveted Deming Awards and the Japan Quality Medal. Today,
the quality movement in India’s auto component sector has made it easier for Indian
companies to penetrate the overseas markets. Also, by investing in quality, local component
manufacturers have become part of the global sourcing systems of some of the international
automotive companies who have put up manufacturing facilities in India.
3.10 India’s Potential to become Epicenter of High-end
R&D
The increasing use of High-end software in automobile design and R&D has made Indian auto
majors leverage the country’s software prowess and gain an edge over their European and
American competitors.
Most are expanding their research and design services either organically or by acquisitions,
which will enable them to launch newer models in the market quickly and efficiently in the
coming years.

50. 50
By June 2009, the $6 billion Mahindra & Mahindra group (M&M) will open its new $116 million
(nearly 460 Crores) automobile design and development facility called Mahindra Research
Valley (MRV) spread over 150 acres in Mahindra World City in Chennai. Primarily this R&D
facility will cater to M&M’s design needs and later may consider doing similar high-end work for
other OEMs.
Tata Motors has six R&D Centers that span India, South Korea, Spain and the UK. In 2006, the
Tata acquired INCAT- now an arm of Tata Technologies– that conducts specialized R&D work for
the Tata Group and others. Recently, Tata Motors bought a minority stake in an Italian design
firm, Pininfarina, which has designed some landmark Ferraris.
Currently, India enjoys a reputation as provider of low-end research work that revolves around
small cars. The current challenge is to change that perception. The country has had a reputation
for low- end design work. Setting up of the Mahindra Research Valley will demonstrate India’s
capability to become the epicenter of engineering design and development for high-end work
also

51. 51
CHAPTER – 4
RESEARCH METHODOLOGY

52. 52
INTRODUCTION
“Study of Growth prospects of Indian Auto-Component Industry & Wheels India Ltd.
Position.”
India is growing economy, also growing as hub for auto component industry. Most of MNC, s
are setting up their plant in India.
This study is an attempt to know about what factors empowers India as a hub for growing
automobiles industries & giving a fruitful chance to Indian auto component industry. In this
study I tried to find out various factors that could force titan corporation a Europe based MNC,
to invest for 39.4% of wheels India share.
This study also focuses on, why the international MNC’s are investing more in Indian auto
component industry like Titan, a Europe based infrastructure firm invested for 34.9%
partnership in wheels India.
Purpose of study
The study is conducted to know about various favorable factors which makes Indian auto
component industry a global leader, against which international investors willing to invest in
our auto component industry.
Research Objectives
 To understand about various factors affecting Indian auto component industry.
 To understand effect of F.D.I. on Indian auto component industry.
 To understand future challenges of global auto component market.
 To understand why India is a favorable destination for auto industry.

53. 53
 What could the future strategies be for wheels India ltd to face global competition?
 Research design
Research design used in this study is descriptive research design, the objective of descriptive
research design is to describe & analyze various characteristics of a function. Descriptive
research design provide a framework or a roadmap by which I analyze various aspects of my
study, it is a preplanned research design
Type of Data used
Only secondary data is used, The secondary sources of information included relevant
published documents of the Ministry of Heavy Industries and Public Enterprises, Government of
India, Industry Associations like ACMA(Auto component manufacturer association.), SIAM, and
other documents available in public domain secondary sources.
Cause & Effect
To find out various cause of increasing foreign investment in Indian auto component industry,
and also to analyze what could be its impact on Indian auto component industry.
Statically tool used
Pie chart used to show distribution/share of various industry in Indian auto component market.
Bar Graph depict the growth scenario of sales, export & profit in different years.

54. 54
CHAPTER – 5
DATA ANALYSIS

55. 55
PHASE – 1
INDIA AS AN EMERGING AUTO MANUFACTURING HUB-
AUTOMOTIVE CLUSTER IN INDIA-
GROWING PRESENCE OF GLOBAL OEMs-

56. 56
Analysis – from the above information it is clear that the presence of global passenger OEM
is increasing rapidly in the last 20 years. Mostly Japanese & Korean companies are in leading
position. Now the question is why India is a favorable destination for these auto
manufacturers.Following reason could be the answer of this question.-
INDIA AS A BOOSTING ECONOMY-
1. Largest Democracy – 1.2billio people, growing middle class.
2. 4th Largest GDP (PPP), 10th Largest GDP (Nominal, USD 1.8 Trillion).
3. One of the fastest growing economy-
 India’s average GDP rate: 8.4% over past 5 years.
 Expected to outpace china in next decade.
4. 3rd largest Investor base in the world.
5. Robust legal & banking Infrastructure.
6. Demographic advantage – youth driven economy.
7. 2nd largest pool of Certified Professionals and highest number of Qualified Engineers in
the world.
8. Investment in infrastructure.
9. Auto policy 2002 and auto mission plan 2006-16 also a major factor by which global auto
OEM entered in Indian market.
PHASE – 2

57. 57
ANALYSIS OF GROWTH OF INDIAN AUTO-COMPONENT INDUSTRY
PRODUCTION TREND OF INDIAN AUTO COMPONENT INDUSTRY
PASSANGER VEHICLE PRODUCTION –
Passenger vehicle production is growing at much faster rate with CAGR of 14% in 2008-12 &
13% in 2102-21,according to ACMA annual report forecast, demand of passenger vehicle will
reach the level of 51 lacs units in 2015-16& 1 crore units in year 2020-21, this could make a
better opportunities for Indian auto component manufacturers.
Opportunities Wheels India – wheels India is already have a specialized plant for passenger
vehicle wheels in Pune , according to ACMA report production of passenger vehicle is going to
be high in upcoming years , it creates a better opportunities for wheels India because wheels
India is already a leader in wheels manufacturing.
COMMERCIAL VEHICLE PRODUCTION–
Passanger vehicle M&HCVs LCVs Tractors
April to March 2011-2012 3146609 384801 544335 641845
April to March 2012-13 3233561 278560 553184 578690
3146609
384801
544335
641845
3233561
278560
553184 578690
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
no.ofunits
Production of 4/6 wheeler vehicle
(No. of units )
April to March 2011-2012 April to March 2012-13

58. 58
Production of M&HCVs is increasing at CAGR of 11% over the year 2012-21 expected demand
of commercial vehicle 14,20,000 units in 2015-16 & 23,50,000 in year 2020-21. That will create
a booming impact on Indian Auto Component industry.
Opportunities for wheels India Ltd. - wheels India Ltd. have always focus on commercial vehicle
segment, 5 plant (including Rampur plant) are producing commercial vehicle wheel. In
upcoming year with growing logistics & transportation industry, commercial vehicle demand will
create a great chances for wheels India because they are the largest wheels supplier of
commercial vehicle wheel in Indian market. Wheels India is only wheels supplier for Tata,
Mahindra, & other leading commercial vehicle manufacturers.
TRACTOR PRODUCTION –
Tractor market is also growat CAGR of 5% in 2011-21 according to SIAM report its production in
2012-13 is 5, 78,690 units which is comparably low to previous year, this shortfall could be
reason of a big shortfall in Indian agriculture sector, and expected production will reach the level
pf 7, 10, 000 units & 10, 00,000 units by 2020-21, it will be a positive sign for Indian auto
component manufacturers.
Opportunities for wheels India –wheels India already tie-up leading tractor manufacturers like
Ashok Leyland ,Swaraj Mazda, sonalika tractor etc. so in this segment company need not to
worry but only concern is to eliminate competition by continuous R&D & productivity.
ANALYSIS SALES TREND OF INDIAN AUTO INDUSTRY

59. 59
Due to financial crises in Indian & European market sale of medium & heavy commercial vehicle
and tractor is comparatively low, but passenger vehicle& light commercial vehicle shows a good
performance. India is always a good market for low cost Passenger vehicle because population
of middle class is growing in this market. Now all the companies are focused on low cost
commercial vehicle for Indian market, Tata Nano is a great example of boom in small Passenger
car segment, now Indian auto component industry & wheels India should focus on small
passenger vehicle segment, it could create extensive chances for Indian auto component
industry.
Facts for wheels India Ltd. -wheels India is always focused on commercial vehicle segment
,but it’s time for wheels India to enhance its capacity to manufacture low cost passenger
vehicle wheels, that could be booming future market for wheels India .
AUTO COMPONENT INDUSTRY PROFILE -TURNOVER
Passanger
vehicle
M&HCVs LCVs Tractors
April to March 2011-12 3138622 377711 524046 607658
April to March 2012-13 3241115 287282 585812 590672
3138622
377711 524046 607658
3241115
287282
585812 590672
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
no.ofunits Sale (Domestic+Export)
no. of units
April to March 2011-12 April to March 2012-13

60. 60
Total turnover of Indian auto component market is 40.6 USD in 2012-13comparatively low with
previous year as we know growth of Indian auto component industry is directly linked with
growth of auto industry ,Indian auto industry is going to show great performance due to which
there will be great chances for Indian auto component industry. Expected turnover will leads to
66 billion USD & 115 billion USD in 2015-16 & 2020-21 respectively. So Indian auto component
industry should not need to worry.
Comprehensive product range
26.5 23
30.1
39.9 42.4 40.6
66*
115*
0
20
40
60
80
100
120
140
0
0.2
0.4
0.6
0.8
1
1.2
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2015-16 2020-21
CAGR 2008-12 12%
CAGR 2013-21 14%
Column1 USD BILLION

61. 61
Engine parts& drive transmission are the leading component manufactures in Indian industry,
wheels are the part of drive transmission & also suspension & breaking parts have 12% market
share, that could be the reason for wheels India Ltd. started pantnagar plant for air suspension
segment . India is known for high end R&D so most of OEM started their R&D operation on
Indian base like Bangalore, Hyderabad and Chennai. Leading Engine parts & drive transmission
parts production are highly technical in nature, so Indian industry need to enhance their
technical know-how with the help of foreign tie-ups & R&D.
Auto component industry profile- export.
19%
Drive Transmission
& steering part
31 %
Engine parts
7%
Others
9%
Electrical parts
10%
Equipment
12%
suspension & breaking
parts
0
Sales
Drive Transmission & steering part
Engine parts
Others
Electrical parts
Equipment
suspension & breaking parts
Body & Chasis

62. 62
Indian Auto component industry now emerging as global outsourcing station for all the auto
OEMs , there export have rapid growth rate of CAGR of 22 % in 2008-12 & will continue at
CAGR of 16% in next 8 years according to ACMA forecast. The reason behind growth of export
could be the position of Indian Auto component as quality superior in global market, what they
need to just maintain quality standard by continuous R&D.
Future demand of Auto component is going to high in upcoming year so Indian Auto
component manufacturers must focus on expansion of their production capacity to fulfill future
demand.
3.8 4 3.4
5.2
8.5 9.3
12*
30*
0
5
10
15
20
25
30
35
0
0.2
0.4
0.6
0.8
1
1.2
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2015-16 2020-21
CAGR 2008-12 22%
CAGR 2013-21 16%
Column1 Column2 USD BILLION

63. 63
Export Destination
Europeancountries are the major market for Indian Auto component manufacturer. Also
NorthAmerican & East Asian countries like Korea, Japan is another revenue making destinations
for Indian auto component industry. Most of Japanese & Korean Auto OEM already entered in
Indian market, and willing to continue with tie ups with Indian supplier, now wheels India Ltd.
and other auto component manufacture have chance to tie up with these companies ,it could
solve our technical , financial & process related problems.
Wheels India already started tie ups with developed countries
Europe
35.6%
Asiaa
24.30%
North America
24%
Latin America &
The Caribbean
6.60%
Africa
8.60%
0
Share In Export
Europe Asia North America Latin America & The Caribbean Africa Oceania

64. 64
GLOBAL LEADERS SOURCING FROM INDIAN MARKET
GLOBAL AUTO MANUFACTURER WITH INDIAN FOOTPRINT

65. 65
Auto component industry profile- import
Indian auto component industry mostly depend of foreign supplier for raw material & technology (like
machines & equipment). Import by Indian auto component grow by 13% in upcoming years that was
only 11% till 2012. Now Indian industry need to arrange there sourcing station on Indian platform if they
want to emerge as a leader of auto component industry. Growth of import in comparison to export
could not be a good sign.
6.2 6.8 6.5
8.5
13.2 13.1
19
35
0
5
10
15
20
25
30
35
40
0
0.2
0.4
0.6
0.8
1
1.2
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2015-16 2020-21
CAGR 2008-12 11%
CAGR 2013-21 13%
Column1 Column2 USD BILLION
32% EUROPE
8% NORTH
AMERICA1% SOUTH
AMERICA
59%
ASIA
IMPORT SOURCES
EUROPE NORTH AMERICA SOUTH AMERICA ASIA

66. 66
PHASE – 3 ANALYSIS OF WHEELS INDIA LTD. POSITION
Sale Trend of Wheels India Ltd.
Year Total Sales C.V.Wheels etc. Air Suspension Others
2007-08
2008-09
113020.67
112801.91
97979.04
79371.73 5260.32
28169.86
15041.63
2009-10 124137.55 90349.19 14534.38 19253.98
2010-11
2011-12
154109.39
187947.32
145343.81
172591.12
6610.80
9914.52
2154.78
5441.68
2012-13 174125.10 160213.6 7855.26 6056.24
2013-14 175016
Analysis – wheels India sales notes a quite decrease in 2012-13 financial year, because of
global financial crises, decrease of European auto industry. Passenger vehicle market did not
show moderate performance, but a wheels India focuses on passenger wheels market, air
suspension sale also shows a moderate performance.
Export scenario of wheels India ltd
113020.67 112801.91
124137.55
154109.39
187947.32
174125.1 175016
97979.04
79371.73
90349.19
145343.81
172591.12
160213.6
2 5260.32 14534.38 6610.8 9914.52 7855.2615041.63 28169.86 19253.98 2154.78 5441.68 6056.21
0
50000
100000
150000
200000
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
INRINLAKHS
YEARS
SALES TREND OF WHEELS INDIA LTD.
TOTOL SALES C.V.,CAR WHEELS etc. AIR SUSPENSION PARTS OTHERS

67. 67
Analysis –In 2012-13 wheels India’s export recorded a very little growth of 7.14 %. Wheels
India expect a muted growth in export market, in next financial year company expects a
high growth in passenger vehicle segment.
22141.64 21615.86
11216.4
23918.52
32029.04
34316.12
0
5000
10000
15000
20000
25000
30000
35000
40000
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
INRINLAKHS
YEARS
export in lakhs

68. 68
Share of destinations in wheels India export
Analysis – South Korean market is emerging as a major customer of wheels India ltd. in
commercial vehicle segment & generate about 36% of total export, also Europe is always a good
market for wheels India in all segment, now Titan a European conglomerate bought 35.4%
partnership in wheels India, so Europe is a major destination.
Import scenario of wheels India ltd.
39%
36%
12%
8%
5%
Share in Wheels India export
Europe
south korea
japan
china
Others

69. 69
Analysis – wheels India ltd. import in 2012-13 recorded high decrease from last year in all
segment, raw material import from last year decrease by 36.28%, because now Tata steels able
to provide more steel as demanded ,components & spares parts import also decrease ,because
Indian market able to provide sufficient key component at cheaper rate
17881.46
11393.78
827.12 681.44159.57 149.9210.42
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
2011-12 2012-13
inlakhs
years
Chart Title
RAW MATERIAL COMPONENT STORE & SPARES

70. 70
Comparison of import from indigenous material
consumed
Material consumed
2012-13
value
2012-13
%
2011-12
Value
2011-12
%
1. RAW MATERIAL
a) imported
b) indigenous
TOTOL
11393.78
97974.02
109367.8
10.42%
89.58%
100%
17881.46
106035.35
123916.81
14.43%
85.57%
100%
2. COMPONENT
a) imported
b) indigenous
TOTOL
681.44
19673.13
20354.57
3.35%
96.65%
100%
827.12
13430.86
24257.98
3.41%
96.59%
100%
3.STORES & SPARES
a) imported
b) indigenous
TOTOL
149.92
6354.63
6504.55
2.3%
97.70%
100%
159.57
6527.93
6687.50
2.39%
97.61%
100%

71. 71
Analysis – in financial year 2012-12 wheels is uses sufficient manufacturing source from
domestic market ,only 10.42% of source coming from import ,that could be a good sign for
growth of wheels India growth ,because domestic sources is much more cheaper than imported
one.
14.43%
10.42%
3.41% 3.35%
2.39% 2.3%
2011-12 2012-13
share of differnt component in import
% raw material impor % of component import stores & repair

72. 72
CHAPTER – 6
CONCLUSION

73. 73
Major findings
 Indian auto component industry has shown a very potential growth since last 5 years.
 Due to increase in small passenger car in domestic market, Indian auto component
industry now shifted from commercial vehicle to passenger vehicle.
 After nanoization small car segment is on boom.
 After F.D.I. implementation high growth in import, export & logistics, so demand of
commercial vehicle segment is continuously growing.
 Indian auto component industry now spent millions on R&D (Mahindra & Mahindra) for
better quality, it creates a positive impression on major auto manufacturing countries
like Japan, South Korea etc.
 In Domestic auto component market TVS iyenger, Bosch, Triveni, are leading market
players.
Factor influencing India as a hub for auto industry.
1. Easy availability of raw material (Steel).
2. Cheap labor forces.
Information come through interaction with departmental heads of various department
of Wheels India Ltd.
 Manufacturing cost is the major cause of concern & also maintain quality level of
products.
 But they have no control on raw material cost, because in India only Tata steels is the
major source of their raw material supplier.
 Another concern is competition from international market, many global competitors like
Bosch, Suzuki auto parts ltd. already entered in Indian market. These companies are
efficient to provide component at cheaper rate than wheels India.

74. 74
 Wheels India operation are highly technical in nature & technology is changing at much
faster rate ,these machines are so costly ,it is impossible to change them every year to
face competition.
 Wheels India is now focusing on growth of export because it could generate a extensive
revenue, but how to explore new market & new global customer is a major problem.
 Rework & Scrap is also a major problem.
 Company is planning to grow its non-wheel business, they already set up a Air
suspension Division at Pantanagar, Uttarakahnd& also focusing on energy equipment
like windmill & hydro energy projects. It’s a new challenge to enter in a totally different
business.
Key areas to be focused for wheels India
ltd
1. Productivity 3.customer relations 5.operation
2.Quality 4. Manufacturing cost 6.internatioanl trade

75. 75
PROBLEM & CAUSES IDENTIFIED IN WHEELS INDIA LTD.-
Productivity
1) Productivity of workers low because of lack of training.
2) Company uses 20 year old C.P.S.R.line technique which is slow and did not able
to achieve target.
3) Their target were 10000 units for June month but actual production only 6000
because of above reasons.
Quality
Wheels India known for quality for more than 55 years, but their amount of scrap &
Wastages is too high.
Customer Relation
1) Wheels India ltd. have supplier relations with almost all the auto manufacturers.
2) Now company need to manage their relation with continuous feedback from
customers about quality & suggestion.
3) They also need to focus on new players in market.

76. 76
Cost concern
1) Electricity & Raw material cost is major concern ,because company purchase power
from UPPCL ,but UPPCL provide power only for 14 hours a day ,rest 10 hour
company uses self-generated electricity which is more than twice costlier .
2) Raw material cost is another major cost concern for company.
3) Cost of scrap rework & other costs.
4) Company uses different small level logistics companies for all the plants, so it is
quite costlier to use these services at daily basis ,instead they should made contract
with any big logistics company, that may save a hues transportation cost.
Export & International Trade
1) Company is now focusing on European market, deal of 35.4% partnership in wheels
India between wheels India & titan (a European conglomerate), shows that.
2) Export share in total revenue is 17%, company need to enhance this by making new
international partners in European & Middle East Asian countries.
Inventory management
Warehouse management is major problems in Indian auto component industries ,Stock out or
over stock is a major problem for company ,company manufacturing is totally depends up on
orders received from various auto manufacturers ,these orders are received on a very short
time spam , so it is hard to manage inventory in short time period.

77. 77
In wheels India Rampur plant, stock of diesel is always a major problem, because purchase
department could not find any responsible supplier.
POSSIBLE SOLUTIONS
For productivity
1) H.R. department should continuously evaluate labor performance & their satisfaction
level, training & development programme should be organized, special training will be
given to those employees whose productivity is less than basic standard.
2) Company should make change in CPSR line of tractor line. They could use hydraulic
robots as they use in Padi plant, by using these robots quantity of wastages will leads to
very low.
3) They can take technical help from their south Korean partner jovi corporation, because
their technical knowhow is very advance.
4) Another alternative could be if possible they can increase shift time from 7 to 9 hour for
more production.
For Quality
Company is already known for their quality standard, they follow TQM standard (total quality
management) they need to focus on speed of processes.
Company should conduct R&D to improve the quality of component & processes.
To improve Customer relation
Customer relation department should try to take feedback from its customer companies on
new trends and upcoming demand of products that will help production department to develop
the product to match with upcoming market conditions.
They should organize seminars or meeting to exchange of ideas, this may create better relation
with their customers.

78. 78
Wheels India is the major supplier of wheels to almost all the auto manufacturers and
maintain relation for 50 years , now it’s time to get benefits from these relations because
various foreign companies enters in Indian market.
Cost control
1) Company should use solar generators in all their plants as they using in Chennai plant to
save huge electricity cost, that is one time investment but it can save & saves electricity
cost for long term.
2) Company try to find out new cheaper source of raw material.
3) Contract with a multinational logistics company for their supply chain could be cheaper
& faster.
Improve international trade
 European market & growing South Korean market could be a better market for export,
merger or acquisition or partnership deal with international players of European & north
Asian market could be profitable.
 Partnership agreements also solve financial problem of company, like deal of wheels
India-titan for 34.9% provide better finance to company by which now company
planning for energy equipment business
Maintain in-stock availability
The dealers must get the material when demanded is one of the decisive factor that has been learned
from the study. Company must maintain enough stock in the warehouses so that delivery gaps couldn’t

79. 79
get arises at the time of sudden rise in the demand. This would satisfy dealers and ultimately increase
the sales
SWOT ANALYSIS OF WHEELS INDIA LTD.
SWOT analysis is a major technique to evaluate total position of a company, by this technique I
tried to evaluate Wheels India Ltd. on all the parameters of growth. In this method I tried to
various favorable & unfavorable factors affecting growth of wheels India ltd.
Strength
 Market leader in wheel manufacturing with experience of more than 55 years in this
industry.
 Major wheels & air suspension supplier, satisfies 2/3rd of domestic demand
 Good & old customer relation with major auto manufacturer like Tata motors, Maruti
Suzuki, Mahindra, and Ashok Leyland etc.
 Strongly committed towards their quality standards in all segments, follow total quality
management (T.Q.M.).
 Part of global leader in auto component manufacturers TVS Iyenger group, have 9 plant
of different wheel segments in different parts of countries.
 Strong financial position have turnover of 375 million USD in (FY 2012-13).
Weaknesses
 Low productivity of workforce. Extra workforce employed.

80. 80
 Using old technology. Rampur plant using 20 year old CPSR RIM line rather its
competitors using modern machines in production.
 Fails to control wastages & rework cost in tractor line.
 Slow moving production process.
Opportunities
 Small passenger car & 2 wheelers demand is on boom in Indian market, so company
should focus on these two segment.
 After F.D.I. implementation logistics & transportation business emerging as a major
industry, demand of commercial vehicles is going to be high, now company should focus
on upcoming opportunities in commercial vehicle segments.
 Many MNC’s ready to invest in Indian market, because India is second largest market,
it’s time for Wheels India for tie-ups & mergers with new players in Indian market.
 European & American market could be a better market, Wheels India have already deal
with European Infrastructure Company Titan Corporation for 34.9% partnership.
 Company is currently planning for energy equipment industry like windmill, thermal
power projects, etc. it could be a better opportunity for Wheels India.
Threats
 Recently other foreign entrance like Bosch, Enkie etc. with high technical knowhow can
produce at much cheaper rate than wheels India.
 Continuously increasing diesel cost may decrease demand of automobiles, vehicles
which have direct impact on Wheels India growth.
 Foreign auto component companies are working in all 3 sectors (OEM, Replacement
market, etc.) but wheels India is working as OEM (original equipment manufacturer)
only.

81. 81
CHAPTER – 7
RECOMMENDATION

82. 82
Strategies Recommended for Wheels India Ltd.
Wheels India Ltd. a leader in all segment of wheel manufacturing (C.V., Passenger vehicle )
about 2/3rd of domestic demand fulfilled by them, but Indian market is growing as hub for auto
industries , many global leader like Mercedes, B.M.W. , Suzuki are already set up their
manufacturing facility in India. Wheels India is working for last 55 years with immense relation
with its customers. Company have already known for quality standards & competitive products
for end customers.
We have come upon certain recommendation on the basis of study results that are generated
through analysis & interaction with industry experts.
Focus on emerging projects could be profitable game.
Wheels India have taken steps in two non-wheel segment , on the basis of analysis these
projects, certain suggestions are given for these projects.
 Air suspension segment.
Company have entered into air suspension business in 2008 & set up its Air suspension
division in Pune. In India real state & construction business is on boom that is the reason
demand of hydraulic trollies in trucks is high, so Air Suspension business could be a big
market for Wheels India. Now company have an opportunity to focus on this sector,
they can make tie up with major truck manufacturer like Mahindra, Ashok Leyland ,
these companies are already a good customer of wheels India for commercial vehicle
wheel.

83. 83
 Energy Equipment segment.
Now every economy focusing on low cost energy sources like wind mill, solar energy.
Wheels India is also planning to enter into market of windmill & thermal power
equipment’s. But global players like Suzlon, Siemens already a big player in market, so
company should focus on low cost equipment, after understand dynamics of energy
equipment market & establishing its position then make shift to upper segment of hydro
power project.
 Two Wheeler vehicle wheel segment – in India two wheeler market is fastest growing
with annual demand of
International tie could make international trade easy.
Company have already focusing on international trade, for this company have made deals with
many international players. Recently company sold 34.9% partnership to European Titan
Corporation & also make a technical deal with japan based Jovi Corporation. These
international tie-ups could solve the technical, financial & process related problem of company.
Focus on Indian market.
India is second largest emerging economy in terms of demand of passenger & commercial
vehicle. Indian auto component market grow at very fast rate, so now it’s time for wheels India
to focus on its domestic ground in which they have market share of about 67% . Many foreign
companies have already entered in endian market, so our recommendation is to save its
domestic market by maintaining relation with existing customers by continuous feedback, also
by R&D try to cut down manufacturing cost & maintain quality standards.
It’s a very fruitful opportunity for wheels India that they are working in a market for
more than 55 years where auto industry are booming. Now wheels India need to
eliminate foreign competition in their domestic market by high end R & D.

84. 84
CHAPTER – 9
LIMITATIONS
&
BIBILOGRAPHY

85. 85
LIMITATIONS OF STUDY
Broader topic.
The project given to me have very broader aspects, it is hard to incorporate all the relating
aspects in a report. It is quite difficult to find data related to all the aspects of this
project. The project is related to market research & topic did not permits a
questionnaire based survey.
Duration of study
Time given to me is not enough to find all the related data, & study of this data is too broad,
8 weeks’ time is insufficient for the study.
Data collection & sorting
A Lot of time wasted in data collection , it took about 20- 25 day for data collection
from various sites & online sources, wheels India employees did not provide me some
data that could help me in this study, because that is confidential according to them.
Also find out relevant data from pool of data resource is another major barriers for me.
Communication barriers
I collected various information from departmental heads of wheels India. The major
problems is that they have too busy schedule ,it wasted my lots of time to wait for them
,they have very little time for interaction ,so find out relevant information in very short
interaction is another major barrier of my study.

86. 86
BIBLIOGRAPHY
 Auto component manufacturer association (ACMA) annual reports
 SIAM ( )
 Wheels India Ltd. Rampur Plant.
 Wheels India H.R. Manual.
 www.scribd.com
 www.wikipedia.com
 www.wheelsindia.com
 www.researchmarket.com