The automobile industry in India is the tenth largest in the world and is expected to overtake China. It contributes 3.1% to India's GDP and is dominated by domestic companies. Two-wheelers form the major share of domestic sales while passenger vehicles lead exports. Key players in different segments include Hero, Maruti, Ashok Leyland and Tata Motors. The industry has experienced major changes over the years including delicensing, increased competition and diversification. While the industry is currently in a slowdown, factors like rising incomes, exports and innovation are expected to boost growth in the long run.
Tata group Vision and mission and its porter's five forcesAKASH GHANATE
I have included the overview and Vision and mission, Porter's five forces analysis on TATA group FY 2021, Which comes under Strategic management, to understand and help the students.
House of Tata: Acquiring a Global FootprintAbhigyan Singh
The 134-year-old Tata Group with 95 operating companies (31 of them publicly traded) and 230,000 employees, it is India's largest private-sector employer, its biggest taxpayer, and its greatest foreign-exchange earner.
Tata group Vision and mission and its porter's five forcesAKASH GHANATE
I have included the overview and Vision and mission, Porter's five forces analysis on TATA group FY 2021, Which comes under Strategic management, to understand and help the students.
House of Tata: Acquiring a Global FootprintAbhigyan Singh
The 134-year-old Tata Group with 95 operating companies (31 of them publicly traded) and 230,000 employees, it is India's largest private-sector employer, its biggest taxpayer, and its greatest foreign-exchange earner.
The past, presnet and future of Automobile Industry in India.
EVOLUTION OF AUTOMOBILE SECTOR IN INDIA
MARKET OVERVIEW
KEY PLAYERS
LATEST TRENDS
GROWTH DRIVERS
POLICIES AND INITIATIVES
INVESTMENT SCENARIO
OPPORTUNITIES
INDUSTRY ORGANISATIONS
SWOT ANALYSIS
PESTEL ANALYSIS
PORTER’S ANALYSIS
The Indian Automotive Industry - Evolving DynamicsVarun Bhandari
This PPT Is About The Indian Automotive Industry - Evolving Dynamics, Indian Auto Sector - Medium Term - Growth, Consolidation, Indian Auto Sector – Long-term - Green revolution, Mobility revolution, About KPMG In India
India Automobiles Sector Report April 2014iimjobs.com
For leading industry jobs, please visit www.iimjobs.com
India Automobiles Sector Report April 2014
India represents one of the world’s largest automobile industries. Easy availability of finance and rising income levels are encouraging the middle class population to upgrade their two wheelers to a car. Besides, the growing organised used car market has also been a positive growth factor in the used car market of the country. Driven by the above factors, the used cars market is anticipated to grow at a compound annual growth rate (CAGR) of 16 per cent during 2013–17, highlighted the RNCOS report titled, ‘Booming Used Car Market in India Outlook 2017’.
India is quietly becoming a production hub of high-end vehicles meant for export to China. The US-based motorbike maker Harley Davidson, Austrian motorcycle manufacturer KTM and Mahindra & Mahindra have also preferred to set up manufacturing facilities in India than in the relatively low-cost China and export the output.
Furthermore, India is set to become Mercedes Benz’s fastest-growing market worldwide ahead of China, the US and Europe, according to internal projections. We expect growth rates to be the fastest in India globally, and expect sales to move up by 10 per cent over the next five years or so, as per Mr Matthias Luhrs, Vice-President (Global Sales), Mercedes Benz Cars.
Automobiles production increased at a compound annual growth rate (CAGR) of 12.2 per cent over FY05-13, while the export volumes increased at a CAGR of 19.1 per cent.
Strong demand growth due to rising incomes, growing middle class, and the young population is likely to propel India among the world's top five auto-producers by 2015.
India has significant cost advantages; auto firms save 10-25 per cent on operations in India as compared to Europe and Latin America. A large pool of skilled manpower and a growing technology base are some of the leading factors.
The government aims to develop India as a global manufacturing as well as research and development (R&D) hub. There has been a wide array of policy support in the form of sops, taxes and FDI encouragement. Under the Union Budget 2013-14, the government has also proposed to allocate US$ 2.7 billion for Jawaharlal Nehru National Urban Renewal Mission (JNNURM) to bolster sales volumes of Medium and Heavy Commercial Vehicles (MHCV).
The world's cheapest car (Tata Nano) has directed focus towards the low-income market. Bajaj Auto, Hero Honda and Mahindra & Mahindra (M&M) jointly plan to develop a technology for two-wheelers to run on natural gas. Electric cars are likely to be a sizeable market segment in the coming decade.
In India Automotive industry is growing at an alarming rate. It
is the engine of growth for the economy. It is amazing to
know that this industry provides employment to 1.5 million
people. It contributes 3.8% to national GDP and 25.6% to
manufacturing GDP.
21. 2 wheelers form the bulk of exports as well, but are losing share to Passenger vehicles
22.
23. THE COMPANY’S MARKETING ENVIRONMENT The Economy Social Factors Suppliers Demography Distributors & Dealers Company Public Customers Cultural Factors Competitors Political & Legal Technology
24. THE EXTERNAL ENVIRONMENT There is a need to identify the uncontrollable key factors that will impact on the organization's operations. The best known method is the SLEPT analysis. 8 Economic environment Political environment The organisation Social environment Technological environment Legal environment
25. (B) MACRO-ENVIRONMENT Natural Forces Technological Forces Economic Forces Political Forces Demographic Forces Company Cultural Forces “ It is useless to tell a river to stop running; the best thing is to learn how to swim in the direction it is flowing”
26. MACRO-ENVIRONMENT An organization’s success depends on the ability of its executives to manage its marketing system in relation to its external environment. These forces (macro-environmental forces) are uncontrollable and pose opportunities and create threats for the company. TODAY YOU HAVE TO RUN FASTER TO STAY IN THE SAME PLACE.
48. Net Substantial Effects Net effects- passenger car makers have been operating below capacity for a while. Recently, Maruti closed one of its plants for two days. Other volume players like Tata Motors and Mahindra & Mahindra (M&M) have been adjusting production to tide over the lean season. Honda Motorcycle and Scooter India have put off their plans for a second plan Ford Motor India had recently announced a fresh investment of Rs. 2100 Crore, however now that plan is only being carried forward in a tentative manner. Tata Motors’ profit figures for the most recent quarter (second quarter of FY09) was the worst ever for the company in the last six years.
49. How To Approach the Issue Look towards frontiers out of India- Ashok Leyland recently said quite emphatically- “Leaving aside the large demand markets, which also have large manufacturers to support themselves, there are still 45% of developed markets left for our company to explore. This is especially when there is an estimated 1:4 advantage in development cost that Indian greenfield projects enjoy over European ones,” Exports to neighboring countries and the Middle East have grown by 20-25% The Jaguar and Land Rover companies owned by the Ford Motor Company was acquired by the Tata Motors Ltd for estimated price of US$ 1.5 billion The Maruti Udyog Ltd has captured nearly 60% of the small car market in Indonesia Innovation- TATA Motors and M and M. The former, for instance, is closely looking at the option of launching electric vehicles and hybrid versions- Tata Motors is in dialogue with Norway-based Miljobil Grenland to develop an electric vehicle on the Nano platform and with Chrysler for the Ace
50. Overall Economic Outlook Although the Indian Auto Industry is in a slowdown phase- this is part of cyclical cycle and therefore this slowdown is not a great matter of concern according to experts such as T. T. Srinivasaraghavan, Sundaram Finance. High demand should eventually overpower these current forces- this is mainly because Indian consumers are still “Demand Hungry” and their net “purchasing power” is on the rise.
51. TECHNOLOGY Greater emphasis on R & D Accelerating the pace of change Innovation Increased regulation of technological change
53. Regulations Safety Technology Wheel lock up Additional breaking force Air Bag Frontideear end collision Whiplash Injury lessening Vehicle stability control
54. Acceleration of change Assembly line Product life cycle reduced Better technology at a lower price
55. Research and development – auto industry Global auto and component makers invest between 5 and 8% in R&D. Spending on R&D in India up from 243cr to 954cr in past four years. Cost advantage India offers makes more players likely to scale up R&D outsourcing to India. GM, Daimler, Volvo, Honda and Bosch are scaling up R&D investments out of India. “Indian engineers are very efficient and have a sense of frugality” – executive VP(product planning) ,Renault
56. Cost advantage India offers makes more players likely to scale up R&D outsourcing to India. GM, Daimler, Volvo, Honda and Bosch are scaling up R&D investments out of India. “Indian engineers are very efficient and have a sense of frugality” – executive VP(product planning) ,Renault Research and development – auto industry
57. Increasing role of IT in automotive space a) apart from IT support systems like supply chain management , CRM - IT companies are developing solutions for the automotive sector. b)“making automobiles more intelligent like building collision avoidance systems ,engine management systems and even entertainment features in cars” $1bn auto vertical has the potential to grow to $50 - $60 bn by 2020. This requires the 3 stakeholders – global auto firms, their Indian counterparts and IT companies to get into collaborative research.