ANALYZING THE AUTOMOBILE INDUSTRY WITH SPECIAL REFERENCE TO TOYOTA
- Neeraj Sajwan
MBA (Sync.)
127627
Indian Automobile Industry•Facts•Second Largest two wheeler manufacturer in the world
•Largest tractor and three wheeler manufacturers in the world
•Fourth largest Commercial vehicle market in the world
•Eleventh largest passenger car market in the world
Indian Automobile Industry•Trends•Growth of exports of 33.57 % FY 2011-12. •Output of commercial vehicles has grown 2.8 times compared to the 2.2 times increase in passenger cars
•For every passenger car turned out, there are almost 7 two-wheelers produced
Indian Automobile Industry • Growth Potential• The automobile industry had a growth of 15 % during April-January 2011
• Can become World’s third largest automobile market in 2030.
• By 2016, Automotive sector can DOUBLE its percentage contribution to GDP from current levels of 5% (US$50 billion) to 10% ($180 billion).
Why India?
• Rising industrial and agricultural output
• Favorable demographic distribution with rising working
population and middle class
• Urbanization
• Greater affordability of vehicles
• Easy finance schemes
Research Methodology
• The data was collected from the following sources:
• Questionnaires • Feedback forms
PEST ANALYSIS OF INDIAN AUTOMOBILE INDUSTRY
Political• Indian govt. launched AUTO POLICY for its Self
Sustained growth• Allowed Foreign Equity Investment up to 100%• Formulation of FUEL POLICY• Promotes for Vehicles propelled by AES
ECONOMIC
• Weighted Tax Deductions up to 150% for in house R&D activities.
• Reduced Interest rates for export financing.• Economy has grown over 8.5% per annum for last 5
years.• Manufacturing sector has grown 8-10 % for last few
years.
Social
• Changed Lifestyle leads to Increased demand
• The Average family size is 4 which makes it favorable to buy a four wheeler.
• 4th largest economy on PURCHASING PARITY INDEX
• Preference for small and compact car
• Preference for Fuel efficient cars with low maintenance
TECHNOLOGICAL
• More & more emphasis on Research & Development.• Government is promoting NATRIP(National Automotive
testing and R&D Infrastructure Project) to support the growth of Auto industry in India.
• Customized solutions (Designer cars etc)can be provided with proliferation of technology.
• With Entry of global brands both product and production process has been improved.
Five Forces Within Auto Industry• Threat of New Entrants• Bargaining Power of suppliers• Bargaining power of buyers• Threat of substitute products• Rivalry among competing firms
Toyota Motor Corporation
• Toyota Motor Co. was established as an independent company in 1937. Although the founding family name is Toyoda, the company name was changed to
• Toyota Motor Corp. grabbed more U.S. retail market share than Ford Motor Co. in early November and it was less than one share point behind General Motors Corp
Opportunities
• Hybrid Engines• Rocketing oil prices have seen sales of the new hybrid
vehicles increase
To match the growth of Indian automobile market
• Long term commitment and a slower approach• Additional investment• New plant• Scheduled to increased the production • Global production base• localized
Conclusion• It is quite possible toyota might overtake not just M&M but
also TATA in the next three to five year
Recommendation• Research & Development • Improve fuel efficiency• Local outreach programs• Market survey• Offensive marketing strategy
References• www.acmainfo.com• www.wikipedia.org• www.siamindia.com• www.ibef.org• Ernst & Young Auto Track• www.economywatch.com• www.business-standard.com• The Economic Times• Hindu Business Line• www.automobileindia.com• automobiles.mapsofindia.com
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