2. TABLE OF CONTENTS
1. Industry Analysis
• Introduction to IAI
• Nature of Markets
• Key Strategic Issues
• Market Shares
• Average Growth Rates Since 2000’
• Players :- Passenger Cars
• Achievements
2. Company Analysis :- Toyota Kirloskar Motors
3. Five Force Analysis
4. Current Strategy
3. INDUSTRY ANALYSIS
Introduction to the IAI
• The Indian Automobile Industry manufactures over 11 million
vehicles and exports about 1.5 million each year.
• The dominant products of the industry are two-wheelers with a
market share of over 75% and passenger cars with a market
share of about 16%.
• Commercial vehicles and three-wheelers share about 9% of the
market between them.
• About 91% of the vehicles sold are used by households and only
about 9% for commercial purposes.
• The industry has a turnover of more than USD $35 billion and
provides direct and indirect employment to over 13 million people.
4. Nature of Markets
• Demand Determinants :- Affordability, Fuel Price, Infrastructure
and Product Innovation
• Life Cycle : Growth
• Exports and Imports Been low, but Have Rising
• Major Players Witnessing Rise in Profits After Tax
• Technology Levels are High – Investment High
• Regional Clusters for Manufacturing set up in India
• Major Products are Passenger Cars, Commercial
Vehicles, Three Wheelers And Two Wheelers
5. Key Strategic Issues
• High Cost for Developing Production Facilities
• Entry Barriers High and Limited Access to Technology
• Technology Rate Change been Medium
• Steel Prices
• Labor Productivity, Flexibility and Capital Efficiency
• Rupee Movements
• Increasing Population and Rise in Demand
• High Level Competition
6. Market Shares
• Commercial – Tata Motors at 64%
• Passenger – Maruti Suzuki at 46%
• Two Wheeler – Hero MotoCorp at 41% , Bajaj Auto at 26%
• Three Wheeler – Bajaj Auto at 58%
7. Average Growth Rates Since 2000’
- Production
Passenger Vehicles at nearly 17%
Commercial Vehicles at 12.6%
Industry Total at 13%
- Sales
Passenger Cars have seen an increase of 120000 units per year
9. Achievements
• The industry has attained a turnover of INR 165,000 Crores
and an investment of INR 56,850 Crores
• The industry has provided direct and indirect employment to
13.1 million people.
• Automobile industry is currently contributing about 5% of the
total GDP of India.
• India's current GDP is about $1.4 trillion and is expected to
grow to $3.75 trillion by 2020.
• The projected size in 2016 of the Indian automotive industry
varies between $122 billion and $159 billion including USD 35
billion in exports. This translates into a contribution of 10% to
11% towards India's GDP by 2016, which is more than double
the current contribution.
10. COMPANY ANALYSIS
• TKMPL is joint venture between Toyota Motor Corporation and the
Kirloskar Group, for the manufacture and sales of Toyota cars in India It
currently is the 5th largest car maker in India after Maruti
Suzuki, Hyundai, Tata, and Mahindra.
• Mission Statement “aims to play a major role in the development of the
automotive industry and the creation of employment opportunities, not only
through its dealer network, but also through ancillary industries with a
business philosophy of "Putting Customer First".
• Toyota, as a whole believes in :-
Environment Management
Corporate Values and Principles
Sustainable Mobility
Commitment to Society
11. Model Year of Launch Manufacture Type
Qualis 1999 Local
Camry 2002 Imported
Corolla 2003 Local
LC Prado 2004 Imported
Innova 2005 Local
Fortuner 2009 Local
Land Cruiser 2009 Imported
Etios Liva 2010 Local
Prius 2010 Imported
12.
13.
14. FIVE FORCE ANALYSIS
• New Entrants find it easier to the industry as the Government has
welcomed entry and has pretty much relaxed its stringent policies on
new entry
• Technology sharing possible in the Indian Scenario
• Competitive Rivalry is high due to the existence of many players in
the market
• Buyers have the money today and the options, therefore constituting
high buyer power
• Steel is an expensive commodity in India, hence suppliers can
demand their price to the industry
• There exists less or no substitutes to passenger cars in today’s
market which provide the same functionality
• Vast range of products in the market today make it to be the survival
of the fittest
15. Issues
• Infrastructure problems
• Not Present in Small Car Market
• Stagnating Growth Rate
• Long waiting periods for customers
• Highly priced CBU’s
16. CURRENT STRATEGY
• Toyota Expects to Gain 10% Market Share by 2015
• 2012 Will Witness the Launch of CNG Models
• Small Car Plans With The Toyota Yaris Sedan and Hatchback
• “TPS” Being Taught to Indian Suppliers to Bring in Quality
Standards
• Introduction of Toyota Financial Services
• Face-Lifted Models
• Used Car Market Being Tapped by “You Trust” Outlets Across
All Major Cities
