Srm Presentation 2

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    PRESENTATION

    ONAUTOMOBILE

    INDUSTRYDILIP KUMAR DASCHANDRASHEKHAR

    DHAMAL SINGH

    NISHANTH

    AKRAM

    DMS SECTION A

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    It begins as early as 1769.

    The automobile sector is one of the key segments ofthe economy having extensive forward and backwardlinkages with other key segments of the economy.

    It contributes about 4 per cent in India's GrossDomestic Product(GDP) and 5 per cent in India's

    industrial production. Indian Automobile sales growth rate would be 9.5 % by

    2010.

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    andmark of Indian automobile industry

    1897 First Person to own a car in India -MrFoster of M/sCrompton GreavesCompany, Mumbai

    1901 First Indian to own a car in India Jamsetji Tata

    1905 First Woman to drive a car in India - Mrs. Suzanne RD Tata

    1905 Fiat Motors

    1911 First Taxi in India 1924 Formation of traffic police

    1928 Chevrolet Motors

    1942 Hindustan Motors

    1944 Premier Automobiles Limited

    1945 Tata Motors

    1947 Mahindra & Mahindra Limited

    1948 Ashok Motors

    1948 Standard Motors

    1974 Sipani Motors

    1981 Maruti Suzuki

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    Landmark of Indian automobile industry

    1994 Rover Company

    1994 Mercedes-Benz

    1994 General Motors India-Opelbrand launch

    1995 Ford Motor Company

    1995 Honda SielCars India

    1995 REVA Electric Car Company

    1995 Daewoo Motors 1996 Hyundai Motor Company

    1997 Toyota KirloskarMotors

    1997 FiatMotors (Re-Entry)

    1998 San Motors

    1998 Mitsubishi Motors

    2001 SkodaAuto

    2003 General Motors India-Chevroletbrand launch

    2005 BMW

    2007 Audi

    2009 Land Roverand Jaguar

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    9th largest automobile industry .

    2nd largest two-wheeler market,

    4th largest in Heavy Trucks. 2nd largest tractor manufacturer.

    11th largest passenger car market and expected tobecome 7th largest by 2016.

    Annual production of over 2.3 million units

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    Maruti TATAHyundai HondaFord GMSonalika International HMForce Toyota KirloskarM&M FiatSkoda Audi

    Mercedes Benz BMWVolkswagon Mitshubishi

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    AUTOMOBILE

    2

    WHEELLER

    3

    WHEELLER

    PASSENGER

    VEHICLE

    COMMERCIAL

    VEHICLE

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    Market leader Hero Honda with market share 50%

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    Market leader Mahindra & Mahindra with market share 42%

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    Market leader Maruti with market share 52%

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    Market leader Tata Motor with market share 61%

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    Following is the segmentation that how much each sector comprises

    of whole Indian Automobile Industry.

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    The automobile industry crossed a landmark with total

    vehicle production of 10 million units.

    Car sales was 2,814,584 units against 2,175,220 units in2008-09.

    The two-wheeler market grew by 13.6 % with 7,437,670units against 7,249,278 units in 2008-09.

    Commercial vehicles segment grew at 10.1 % with4,90,494 units against 4,17,126 units in 2008-09

    The domestic automobile industry sales growing @ 16-20%

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    Directly and indirectly it employs more than 10 millionpeople.

    The market value of Automobile Industry is more than US$8

    billion. and Contribution in Indian GDP is near about 4% andwill be double by 2016.

    Growth rate of last year 2010 was only 33.9%..

    In 2009, India emerged as Asia's fourth largest exporter ofautomobiles, behind Japan, South Korea and Thailand

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    STRENGTHS

    Large domestic market

    Sustainable labor cost advantage

    Government incentives for manufacturing plants

    Strong engineering skills in design

    WEAKNESSES

    Low labor productivity

    High interest costs and high overheads Rising cost of production

    Low investment in Research and Development

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    OPPORTUNITIES

    Increase in the income level Cut in excise duties

    Rising rural demand

    THREATS

    Rising interest rates Cut throat competition Lack of technology for Indian Companies

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    According to the Society of Indian AutomobileManufacturers, annual car sales are projected toincrease up to 5 million vehicles by 2015 and more than9 million by 2020.

    By 2050, the country is expected to top the world in carvolumes with approximately 611 million vehicles onthe nation's roads.

    India's automobile exports are expected to cross $12

    billion by 2014 Indias current GDP is about $ 1.4 trillion and is

    expected to grow to $ 3.75 trillion by 2020.

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    To coordinate with the different department .

    To sketch new ideas .

    To get opinions of the users and clients and work towardsgetting better results.

    To plan, implement and design the blueprints for every part ofthe model.

    To build up prototypes for a new model

    Building up the actual model To conduct various quality tests

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    Bachelors Degree

    Diploma in Automobile/ Mechanical engineering

    Post Graduate diploma

    Masters degree

    MBA (Masters of Business Administration)

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    POSITION DETAIL

    State - Head- Commercial

    Regional Manager- Commercial Regional Manager- Refurbishment

    Senior Manager-Refurbishment

    Sales Executive

    "MIS Manager

    HR/Industrial

    http://accountinfo.tmlfsl.com/apps/careers/JobDetails.jsp?flag=SHC01&url=State_head_Commercial.htm
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    Computer literacy

    Communication skills

    Risk identification skills

    Analytical skills

    Technical skills

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    Beginner (0-1 years of experience)Monthly: Rs.8,000 to Rs.18,000

    Annual: Rs.0.96 lakhs to Rs.2.16 lakhs

    Professional ( 2-3 years of experience) :Monthly: Rs. 18,000 to Rs. 30,000

    Annual: Rs.2.16 lakhs to Rs. 3.60 lakhs

    Automobile Manager professional ( 5 and above years ofexperience)

    Monthly: Rs. 30,000 to Rs. 50,000

    Annual: Rs.3.60 lakhs to Rs. 6.00 lakhs

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    JOBS IN SELLING UNITS (SHOWROOMS)

    CRM (Package: Rs 12000 to Rs 18000) +Incentives

    HR Manager (Package: Rs 12000 to Rs 18000)

    Sales Manager (Should be experienced) salarystarts from Rs 20000 + incentives.

    Event Manager (Package: Rs 12000 to Rs 18000)

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    Mumbai Delhi

    Chennai Pune Hyderabad Gurgaon Bangalore Chandigarh Kolkatta Ahmedabad

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    Attrition and skill migration

    Talent Crunch

    Lower Salary hikes

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    DEGREE OF RIVALRY

    THREAT OF SUBSTITUTES

    BARRIERS TO ENTRY

    SUPPLIERS POWER

    BUYERS POWER

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    Tata Motors Limited is a multinational corporationheadquartered in Mumbai, India. Part of the Tata Group

    Established in 1945, when the company beganmanufacturing locomotives, the company manufactured

    its first commercial vehicle in 1954 in a collaboration withDaimler-Benz AG, which ended in 1969.

    Tata Motors has a consolidated revenue of USD 16billion after the acquisition of British automotive brands

    Jaguar and Landrover in 2008. It is India's largest company in the automobile and

    commercial vehicle sector.

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    .

    The company is the worlds fourth largest truckmanufacturer, and the worlds second largest busmanufacturer. In India.

    Tata Motors is a dual-listed company traded on both theBombay Stock Exchange as well as on the New York

    Stock Exchange. In 1998 it launched Tata Indica, India's first fully

    indigenous passenger car. Tata ranks as the leader in every commercial vehicle

    segment, and is in the top 3 makers of passenger cars.

    Tata Motors is also the designer and manufacturer of theiconic Tata Nano, which is the cheapest car in the world.

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    STRENGTHS

    The internationalization strategy

    Expertise.

    Intensive management development. Successful alliance with Italian mass producer Fiat since

    2006.

    WEAKNESSES

    The company's passenger car products are based upon3rd and 4th generation platforms.

    Tata has not got a foothold in the luxury car segment inits domestic, Indian market.

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    OPPORTUNITIES

    Purchased the Land Rover and Jaguar brands from FordMotors for UK 2.3 million in 2008.

    Tata Motors Limited acquired Daewoo Motor'sCommercial vehicle business in 2004 for around USD$16 million.

    Nano is the cheapest car in the World introduced byTATA.

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    THREATS

    Other competing car manufacturers have been in thepassenger car business for 40, 50 or more years.

    Sustainability and environmentalism could mean extracosts for this low-cost producer.

    Rising prices in the global economy could pose a threatto Tata Motors Limited on a couple of fronts.

    The price of steel and aluminium is increasing puttingpressure on the costs of production.

    Many of Tata's products run on Diesel fuel which isbecoming expensive globally and within its traditionalhome market.

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    Incorporated on 2nd October 1945 by two brothers Mr. JC Mahindra & Mr. K C Mahindra.

    Converted into public limited company in 1955.

    Started with manufacturing General Utility Vehicles.

    Also started manufacturing Tractors and LCV(Light

    Commercial Vehicles)

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    Major Players in Utility vehicle segment and Tractorsegment.

    One amongst the top five tractor manufacturing

    companies in the world

    Very indigenous regarding very little help from foreigntechnology sources.

    Presence in countries of Europe, Latin America, Africaand United States of America

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    STRENGTH

    Very high Brand recall in Tractors Market.

    Continuous Innovation. Strong Research & Development

    WEAKNESS

    High dependence on Rural Market.

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    OPPORTUNITY

    10 tractors per 1000 hectares of agricultural area,much below world average.

    Huge untapped Market.

    THREAT

    Entry of Competent Foreign & Domestic Players inTractors Market.

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    Joint venture Both Hero Cycles(India) and HondaMotor Company (Japan) holds 26%stake.

    Incorporated in January 1984.

    Market leader in Two Wheeler Segment with 55 % ofdomestic market .

    Two Manufacturing Units Located at Gurgaon &Haryana.

    In 2010, When Honda decided to move out of the jointventure, Hero Group bought the shares held byHonda. Subsequently, in August 2011 the company wasrenamed Hero MotoCorp with a new corporate identity.

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    STRENGTH

    Excellent ability to Understand Customer Needs and deliverbest suitable products.

    Recognized and established Brand name.

    Products with Superior Performance, Low maintenance andhigh resell value.

    WEAKNESS

    Honda Motor Company is dominant partner.

    Lack of technical capabilities of Honda Motors may degradethe performance of the company and its products.

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    OPPORTUNITY

    Global Expansion. Expansion of Target Market Huge Indian market.

    THREAT

    Honda and Scooter India can take away market Shareand form joint venture to go sour.

    Emergence of strong Players. FDI Announcement 100 % may attract foreign players todomestic market.

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    Industry across countries will have to meet challenges ofnewer technologies, alternative fuels and affordability ofautomobiles by people at large through constructivecooperation. The earlier we are able to achieve this the better

    it would be for the world performance.

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