automobile industry presented by:- ashutosh mandeep singh manpreet singh smriti sharma ravneet singh
TRANSCRIPT
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