...Challenges for a Tier 2 Supplier | The Indian Automotive Supply Chain Context | | | | | Contents Introduction 4 A Brief History of Indian Auto Sector 4 The Present Scenario 5 Indian Automotive Industry Supply Chain 6 Characteristics of the Auto Supply Chain 8 Tiered Structure 8 Linkage of Suppliers and OEMs 9 Supplier Power – An Industry Level Analysis 10 Clustered Development 11 Financial Position of the Suppliers 12 Supply Chain Challenges in the Auto Industry 13 SM Auto Stamping Pvt. Ltd – An Introduction 13 Products Manufactured 14 Quality Systems 14 Manufacturing Process 15 Challenges and Opportunities 15 Scheduling and Production 15 Variety and Performance 17 Procurement 18 Pricing and Costing 19 Cyclical Nature of the Industry 20 Solutions 20 Data Analysis 21 Conclusion - Creating a Win-Win Strategy 23 References 25 Appendix I 26 List of Figures Figure 1 – Automobile Market in India 6 Figure 2 – Global growth of the automobile market 7 Figure 3 – Turnover contribution of different components 7 Figure 4 – Automobile supply chain 9 Figure 5 – Automobile and auto component industry growth rates 10 Figure 6 – Strategic analysis of supplier industry 11 Figure 7 – Suppliers in India 12 Figure 8 – Margin trends 12 Figure 9 – Manufacturing flow process for SM Auto 15 Figure 10 – Scheduling Plan 16 Figure 11 – Various manufactured components 17 Figure 12 – Suppliers in India 19 ...
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...THE INDIAN AUTOMOBILE SECTOR- HPL PROJECT Introduction The term automotive was created from Greek autos (self), and Latin motivus (of motion) to represent any form of self-powered vehicle. The Indian automotive industry has emerged as a 'sunrise sector' in the Indian economy. India is emerging as one of the world's fastest growing passenger car markets and second largest two wheeler manufacturer. It is also home for the largest motor cycle manufacturer and fifth largest commercial vehicle manufacturer. The automotive industry in India is one of the largest in the world and one of the fastest growing globally. India's passenger car and commercial vehicle manufacturing industry is the sixth largest in the world, with an annual production of more than 3.9 million units in 2011.[1] According to recent reports, India overtook Brazil and became the sixth largest passenger vehicle producer in the world (beating such old and new auto makers as Belgium, United Kingdom, Italy, Canada, Mexico, Russia, Spain, France, Brazil), growing 16 to 18 per cent to sell around three million units in the course of 2011-12.[2] In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand.[3] In 2010, India beat Thailand to become Asia's third largest exporter of passenger cars. As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the...
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...Working Paper No. 201 Determinants of Competitiveness of the Indian Auto Industry Badri Narayanan G. Pankaj Vashisht January 2008 INDIAN COUNCIL FOR RESEARCH ON INTERNATIONAL ECONOMIC RELATIONS Contents Foreword............................................................................................................................. i Executive Summary .......................................................................................................... ii 1. Literature Review ..................................................................................................... 1 1.1 Introduction......................................................................................................... 1 1.2 Literature Review................................................................................................ 2 1.2.1 Global Comparisons ................................................................................... 3 1.2.2 Policy Environment and Evolution of Indian Auto Industry....................... 4 1.2.3 Productivity................................................................................................. 7 1.2.4 Aspects Related to Supply Chain and Industrial Structure......................... 7 1.2.5 Technology and Other Aspects ................................................................. 10 1.3 Contributions of the Study ................................................................................ 13 Supply Side Features of...
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...company endeavors to determine the perception of customer towards the product after having used it for a certain period, this information can provide valuable information to a company to improve its product in terms of features and other attributes. This is essential because every company aims at growth and when a company is growing, simultaneously the image of the company or the brand becomes important and the image keeps on growing. When the image of the company grows, the expectations of the customer from the company also grow. After sales service consists of: • Delivery • Installation • Demonstration • Repairs • Warranty • Courteous attention towards customer complaints etc. 1.2 ABOUT AUTOMOBILE INDUSTRY Indian automobile industry has grown leaps and bounds since 1898, a time when a car had touched the Indian streets for the first time. At present it holds a promising tenth position in the entire world with being No 2 in two wheelers and No 4 in commercial vehicles. Withstanding a growth rate of 18% per annum and an annual production of more than 2...
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...[pic] A Project Report on Customer Satisfaction Survey of Maruti Udyog Ltd. Final project report submitted in the fulfillment of requirements for the Postgraduate Diploma in Management (2007-09) Submitted To: Prof. Anita Saxena Submitted By: Ravindra Kumar Roll no-40 PGDM(2007-09) [pic] New Delhi Institute of Management, New Delhi. ACKNOWLEDGEMENT The research on “Customer Satisfaction Survey of Maruti Udyog Ltd.” has been given to me as part of the curriculum in the completion of 2-Years Post Graduate Diploma in Management. I have tried my best to present this information as clearly as possible using basic terms that I hope will be comprehended by the widest spectrum of researchers, analysts and students for further studies. I have completed this study under the able guidance and supervision of Dr. Manab Adhikari and my project guide Prof. Anita Saxena; I will be failed in my duty if I do not acknowledge the esteemed scholarly guidance, assistance and knowledge I have received from them towards fruitful and timely completion of this work. Mere acknowledgement may not redeem the debt I owe to my parents for their direct/indirect support during the...
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...Introduction The Automobile Industry registered a 30% increase over the past ten years. This industry plays a significant role in every major market around the globe. In 2012 63,069,541 cars were produced globally, close to 9 million workers were involved nonstop in the manufacturing process of these vehicles and their respective parts; 25% of these cars were built in China alone, in other words 1 in 4 vehicles are manufactured there. This is equivalent to 5% of the globe’s manufacturing sector. For every direct job in this industry at least 4 indirect jobs in the vicinity are created; this is equivalent to more than 40 million jobs worldwide. Jobs in industries such as steel, iron, aluminum, glass, plastics, glass, carpeting, textiles, computer chips, and rubber are some examples of jobs created indirectly by the Automobile Industry. Environmental Scanning of Current Conditions China assembled 25% of the world’s cars in 2012, keep in mind that this is 7 million more cars than Japan (second largest car manufacturer in the world). Its industry growth has been mainly motivated by business friendly policies created by the government, increase in domestic demand, and an emerging middle class. Although this industry has grown lately, it continues to remain dreadfully divided. Furthermore, government officials believe that surplus volume must come to a halt and worry about local government departments impairing the economy due to unrestrained expansions. Therefore, they are aiming...
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...13.4 %( muslim),2.3% (Christians),rest include sikhs,budhdhists,jain and jews. Language- 18 Major languages and More than 1000 minor languges.. demographics are going to futher skwed in favour of young people. At present in India two wheeler has the largest share in indian automobile industry. Two wheelers- first choice for middle and low income as a medium of transportation. -also attracted to young people as a style statement. -rapid increase in women focused scooters shows the interest of womens in two wheelers. India today is a young nation with a large percentage of its population below 35 years of age. The demographics are going to be further skewed in favor of the young over the next 15 years because of the boom in media and satellite TV, Indian youngsters are today exposed to global lifestyles, and in the process they have broadened their horizons. For youngsters, bikes are a style statement and not just a mode of transport. The two-wheeler industry is therefore likely to see further growth as more and more youngsters give expression to their lifestyle aspirations. Women are also going to play a pivotal role in further driving the growth of the two-wheeler industry. With more women working and public transportation not being able to meet the demands of the growing population, the two-wheeler will emerge as a convenient mode of transportation for many of them. The Companies like Hero Honda are selling about 12,000 units of women-focused scooter...
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...recession as significant decline in economic activity of a nation for considerable amount of time based on parameters such as production, demand, employment, real income and real GDP. In this part we try to argue position of Indian four wheeler auto sector in effect of global recession around 2008 and current recession (2012-13) caused by local macroeconomic issues. Global recession (2008 onwards) Though global recession took roots in 2007 itself, Indian auto industry could see its real impact only in 2008 quarters. Global auto industry was in tatters due to loss of credit and reduced liquidity. US sales were fallen by 32%. In India, though the situation wasn’t as grim as US, passage care sales dropped from 1,15,481 in 2007 to 1,13,822 in 2008. Some of the reasons of these impacts were high finance cost and fuel prices. Looking on the lines of industry growth in previous years, Indian auto players were investing in increasing production facilities. Where sudden recessionary situation forced SIAM (Society of Indian Automobile Manufacturer) to reduce growth forecast from 12.5% to 9.5%. The result was to run the auto manufacturing plants on low production capacity than installed, increasing overheads and reducing margin. Impact in India was not as severe as it was in US and European markets. Mainly because local Indian macroeconomic indexes were still in good shape plus government act quickly to lower the interest rates and infused liquidity in the system. Current Recession (2012-13) ...
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...a personal mode of transport caused by the lack of an efficient public transport system. Suzuki Motor Company was chosen from seven prospective partners worldwide. This was due not only to their undisputed leadership in small cars but also to their commitment to actively bring to MUL contemporary technology and Japanese management practices (which had catapulted Japan over USA to the status of the top auto manufacturing country in the world). A licence and a Joint Venture agreement was signed between Govt of India and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982. The vision of the company is “to be the leader in the Indian automobile Industry, creating customer delight and shareholders wealth. A pride of India”. Maruti Suzuki India Ltd. has always been a leader in the Indian automobile industry & we have studied the attitudes and behaviours that prevail within the organisation which are a major contributor to the success of the organisation. Understanding of the organizations parameters Leadership Leaders can make a difference. They have the ability to influence a group towards the achievement of vision or a set of goals and hence are needed to create vision for the future, and to inspire organizational members to want to achieve those visions. Maruti started in 1983. Since inception, it has seen many ups and downs. During recession in1999, it had to do severe layoff which saw resistance from workers. Business operation style has remained...
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...Indian Auto Industry The Indian Auto Industry faired brilliantly in the year 2010 and 2011 so far. We can easily pass the statement that the industry is on a boom currently. After a rough late 2008 and early 2009, the industry has grown with a CAGR of nearly 25% since then. At this rate, the Indian auto market is expected to become the third largest in the world only after US and China. While Japan is also vying for this rank, but Indian auto market with its current growth rate will overtake it sooner or later. Global consultants Booz and Co. in a report has predicted the Indian passenger vehicle market to grow at a rate of 15-20% and auto exports to grow at 8% for the next few years. New production techniques, product innovation, effective after sales service, new plants, enhanced R&D, strengthen distribution network and supply chain etc. To pave the way for future growth, the Indian auto companies will have to evaluate M&A decisions as well. Deals like TATA-Jaguar have already made international mergers a viable option. Therefore, Indian Auto Industry is an important industry for the purpose of this paper’s study. Limitations:- 1) For the study, only top 10 companies from an industry has been selected and not all the companies. Therefore, the results might be affected from downward bias. 2) The researchers were not experts in the industry they were studying. 3) The researchers were not expert in the software used for the purpose of this study and relied heavily on...
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...“In India , a middle class family would travel by scooter in the classic, death- defying Indian fashion. The father would drive with his son on the floorboard in front of him and the mother seated pillion, cradling her infant daughter in her arms. In India at that time, CARS for a young family were far out of reach and is still the same.”- Ratan Tata Before starting the project, an extensive research was conducted by Tata Motors. They have finally arrived at; the middle class men should have safer transportation for their families, to fill the status void felt by the middle class families and also realized that four wheels had emotional, not just practical appeal. Tata motors initial sales projections were at about 500,000 cars per year. The basic reason was the conviction that the target price shall redefine the 4 - wheeler segment. If only 10% customers of 9 Million two wheeler market transit to 4- wheelers it shall amount to 50% of the passenger car market share. Having defined the target segment clearly (Two wheelers family men), they took the wrong route to approach these customers which clearly shows the lack of CI. Their marketing strategy was no where to find intimacy with the target customers. Few insights from their marketing strategy, Tata will sell its ultra cheap new car through its own retail and electronics megastores, which is Westside and Croma as well as auto dealerships . There will be no TV campaign, only innovative use of print, radio ...
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...Comparative analysis of 4 brands of small segment cars Brands name: Maruti Swift, Volkswagen Polo, Chevrolet Beat, and Tata Indica Vista. * Maruti swift: it is the India’s largest car maker. And well known for offering pocket friendly cars, which are packed out with numerous features that make the car worth every penny. Maruti India is one of the pioneers of the automobile revolution in India. * Chevrolet beat: The Chevrolet Beat is a small, convenient car that offers looks that set it apart, great drive-ability, compact size and a stunning value-for-money proposition. Available with a choice of petrol and diesel engines, the Beat caters to a wide audience. Apart from being frugal, the Beat's USP lies in its design and futuristic interior styling as well. * Tata vista: The Tata Indica is a supermini car produced by the Indian manufacturer Tata Motors since 1998. It is the first passenger car from Tata Motors and it is also considered India's first indigenous developed passenger car. * Volkswagen polo: The Volkswagen Polo is a supermini car produced by the German manufacturer Volkswagen since 1975. It is sold in Europe and other markets worldwide in hatchback, saloon and estate variants. Analysis on the basis of product, price, place, promotion PRODUCT: * Tata Indica Vista * Maruti Swift * Chevrolet Beat * Volkswagen polo 1. Volkswagen polo: Highlights Engine capacity 1199 cc Fuel Economy (ARAI) ...
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...companies that wish to beat the market competition. The paper analyses the practical application of Blue Ocean strategy in case of Indian companies. This paper also discusses the risk factors/negatives associated with the emergence of application of Blue Ocean Strategy in India/worldwide. 1. Introduction According to the well-known authors and management thinkers, W. Chan Kim and Renee Mauborgne, ‘the only way to beat the competition is to stop trying to beat the competition’. According to them, the entire market universe can be divided into two oceans: Red Ocean and Blue Ocean. Red Ocean is representative of all such industries/products which already exist and are thus representative of the known market space. Blue Oceans denote the industries/products not in existence today. Blue Oceans thus represent the unknown market space. In the Red Ocean industry boundaries are defined and well accepted. This means the existing competition is well known in the market space and the players in the market try to outperform their rivals to get greater share of the existing market demand. As existing market space gets crowded prospects for good profit and growth in future are reduced. Products then lose their distinctiveness and become regular commodities resulting in cut throat market competition thus turning Red Ocean more red or bloodier. Blue Ocean in contrast is defined by untapped market space, opportunities for highly profitable growth and possibility for new demand creation. [1] ...
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...SUMMER PROJECT REPORT ON “EQUITY REASER CH OF INDIAN COMMERCIAL VEHICLES INDUSTRY” In the partial fulfilment of the Degree of Master of Management Studies under the University of Mumbai By Mr. Mihir Bhatia (Roll No: A- 05) Under the guidance of: Mr. Pranjal Wagh Prof. Nilay Savla (External Guide, Organization) (Internal Guide) Aruna Manharlal Shah Institute of Management and Research Ghatkopar [W], Mumbai-86 2010-11 Acknowledgement In the course of researching and completing this project, I have been fortunate in receiving help from many individuals, without them it would never have come to fruition. I therefore wish to express my gratitude to the following that have helped me throughout my project. I acknowledge and thank the Mumbai University and My Institute “ARUNA MANHARLAL SHAH INSTITUTE OF MANAGEMENT AND RESEARCH” who gave me the opportunity to undertake this very summer project in MMS Course. And the first person that comes to mind for this is Our Prof. NILAY SAVLA, who is not only my Mentor but also the person who made me incline towards my goal of pursuing Finance as a career. Her support and inputs are valued and respected. I wish to express my gratitude to Samarth EduFin Pvt. Ltd. to give me the opportunity to work in the Company as a Management Trainee. I am deeply indebted to Mr. Pranjal Wagh for his efforts in terms of time, energy and knowledge sharing. He has been most gracious and accommodating. Without any...
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...Asian Research Journals TAJMMR TRANS Asian Journal of Marketing & Management Research Vol.2 Issue 3-4, March-April 2013, ISSN 2279-0667 A STUDY OF SMALL CAR CONSUMER PREFERENCE IN PUNE CITY Mrs. Beena John*; Dr. S. Pragadeeswaran** *Research Scholar, MS University, Tirunelveli, India. **Deputy Controller of Exams, Annamalai University, Annamalai Nagar, Tamil Nadu, India. ABSTRACT Indian Automobile small car business is influenced by the presence of many national and multi-national manufactures after liberalization in 1991. The presence of the many manufacturers and variants within the city provides several decision options to the customers as they supply similar product proposition, creating the passenger automotive small car market highly competitive Customers now search for those differentiating parameters, which may help them to choose among the alternative products available in the market. The purpose of this paper is to come with the identification of parameter that influence the customer purchase preference behavior patterns of passenger automobile small car owners within the city of Pune. Of greatest interest to the current study is the impact of demographic variables and income affecting the vehicle selection of small cars. KEYWORDS: Consumer preference, small cars, influencing factors. ___________________________________________________________________________ INTRODUCTION India assisted by its economic advancement, is experiencing fast...
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