AUTOMOBILE INDUSTRY

Presented by:-

Ashutosh

Mandeep Singh

Manpreet Singh

Smriti Sharma

Ravneet Singh

During early 60s & 70s, automobiles came largely in twos. In scooters, you had a Lambretta or a Vespa.

In motorcycles, you had a Bullet or a Java.

In cars, you had to choose between an Ambassador and a Fiat.

In trucks, it was either an Ashok Leyland or a Tata.

In tractors, it was between a Swaraj and a Mahindra.

Introduction

India is second largest in two wheeler manufacturer in the world

India is second largest in tractor manufacturer in the world

India is fourth largest in commercial vehicle manufacturer in the world

India is third largest in car manufacturer in Asia

eleventh largest passenger car market globally, expected to be the seventh largest by 2016.

Economic reforms and deregulation have transformed that scene

Automobile industry has written a new inspirational tale

going through a technological change where each firm is engaged in changing its processes and technologies

the Indian automobile industry has achieved splendid

achievement in the recent years. The automotive sector in India is growing at around 18 per

cent per annum.

Major players in the automobile sector are:

• Tata• Mahindra• Ashok Leyland• Bajaj• Hero Honda• Daimler Chrysler• Suzuki• Ford• Fiat• Hyundai• General Motors• Volvo• Yamaha• Mazda

PRE INTERNET SCENERIO

ADVERTISEMENT INCREASING SALES AUCTION SECOND HAND MARKET CAR REPAIR OR AFTER SALE SERVICE &

SPARE PARTS

PRE INTERNET SCENERIO

the only cars that were available in India were the Ambassador and the Premier Padmini

Maruti Suzuki 800 car in 1983 a joint venture between Government of India and Suzuki Motors

Post liberalization, India is on every car manufacturer map

who have set up base in India are Audi, BMW, Chevrolet Fiat, Ford, Honda, Hyundai, Mahindra, Maruti, Mercedes, Mitsubishi, Skoda, Suzuki, Tata, Toyota, Volkswagen, and Volvo.

companies like Ford are planning to make India a regional hub for exports of both small cars as well as engines.

Reasons for the impressive growth of the Indian car industry easy availability of vehicle finance,

attractive rates of interest,

convenient instalments.

Competition has forced manufacturers to be innovative and responsive to customer demands and needs.

Depending upon customers needs, four segments - small, midsize, premium and sports utility vehicles

currently represent the car market in the country.

POST INTERNET SCENERIO

the internet has changed the way the automotive industry communicates

research on cars, not by magazines anymore, but mostly by their online internet connection

Magazines jumped into the online world with their review services

Now getting paid by advertisers.

Several websites now offer services that allow best price on a car or truck like Car Auctions Inc

Second hand market is also emerging

Spare parts at your doorstep

RECENT EXAMPLE :- Peugeot launched in France the Peugeot Webstore

PRE INTERNET SUPPLY CHAIN

supply chain assembler or manufacturer were dependent on tier 1 suppliers for their parts or components

Inventory levels were very high because of uncertain demand or unknown point of sales

Example :- Ford & Bosch Case

POST INTERNET SUPPLY CHAIN:

automotive industry supply chains have become increasingly complex

Automotive manufacturers and suppliers need to better orchestrate efforts from design through discontinuation

a lack of transparency and effective connectivity to partners often makes this impossible

Porter’s 5 Forces Model (Pre/Post)

Threat of New Entrants

PRE/POST INTERNET

very low in the automobile industry

industry is very mature and it has successfully reaching to economies of scale.

takes an incredible amount of capital

Access to distribution channels is another high barrier to entry

Must find a dealership or have their own dealership

Bargaining Power of Suppliers PRE INTERNET very low in the automobile industry When there are many suppliers in an industry, they

do not have much power

POST INTERNET – decreasing on & on

Bargaining Power of Buyers PRE INTERNET- is moderately high The buyers have low switching cost

POST INTERNET- bargaining power increasing switching cost is decreasing further

Threat of Substitute Products Pre/post internet not many substitute products Some of the substitutes are walking, riding bike or

taking a train depend on the geographic location of the consumer

Intensity of Rivalry among Competitors

Pre-internet very strong is this industry Reason is a lack of differentiation opportunities

Post-internet Rivalry is increasing

CHALLENGES

Increasing diversified consumer aggregate patterns of behaviour

Accelerated modification and diversification of the product portfolio

Enabling automobiles with digital technology