Automobile industry

India

is going to be an automotive hub - a dream destination for engineering industries. - Mr. Mandlik, General Manager L&T BCCI Seminar- 13 Nov. 09

Chetan

Sakhare Satish Guttula Sai Ram Mutta Mayur Joshi Ronak Mathur Aakrithi sharma Brijender Tiwari

Video 1

Introduction Profile of Major players Growth analysis Government polices Economic analysis Drivers of growth Growth strategies Future prospectus SWOT analysis Conclusion & suggestions

New

journey of automobile industry in 1991 by allowing 100% FDI. Increase in the Production level. Growth of Indian middle class. Urbanization of rural areas Increase in competition in auto companies.

Major players in India

2 wheelers Bajaj auto Honda Hero motors Kinetic motors Royal Enfield motors Suzuki motorcycles Tvs motor co Yamaha motor India

Major players in India

3 wheelers Bajaj auto Mahindra and Mahindra Piaggio

Major players in India

cars
BMW India Daimler Chrysler India Fiat India Ford India General motors india Hindustan motors Hyundai motor Tata motor

Major players in India

LCV & MUV Ashok leyland Eicher motors Force motors Mahindra and Mahindra Tata Motor

Major players in India

HCV

Ashok leyland Eitcher motors Tata motors Volva India

Economic analysis

Growth analysis

Domestic sales

Exports

Government Policies

Automotive Mission Plan ( 2006-2016) Fuel efficiency rating for automobiles Vehicles powered by electricity is encouraged

Growth analysis

Turn over

Auto Component Industry- Production Turnover

Drivers Of Growth

Growth Strategies

Commercial vehicles Passenger vehicles Two wheelers

Future Prospectus
Favorable destination for global majors The vision of AMP 2006-2016 to become global leaders

The SWOT Analysis

Projected growth of the Indian auto industry translates to 10 -11 % of India GDP by 2016 Auto- component industry in India expected to be USD 45 billion. Policy initiative to market India as an attractive manufacturing destination. Automotive industry promises significant employment opportunities.

MUV & MCV

India is going to be an automotive hub a dream destination for engineering industries. - Mr. Mandlik, General Manager L&T BCCI Seminar- 13 Nov. 09

Category
Commercia l Vehicles

Industry Sales (Nos.) 2008-09 415652 1525313 1940965 2007-08 503218 1533268 2036486 Growth -17.4% -0.50% -4.7%

Passenger Vehicles Total

Source: Society of Indian Automobile Manufacturers report and Company Analysis

Continue Shutdown fully/ partially Divestment

Decrease in Sales affects entire supply chain

e.g.- Slowdown in Automobile will affect pigment ,paints , resins , solvent and related logistics

Evolving Planning system that addresses changes

Addressing Inventory and converting of stock to cash.

Identify sub-optimal performance in consumption of material or inefficient processes

De-risking sales is fundamental to operations. Continuous performance improvement in operations by engaging process improvement teams who work with R& D to make positive changes for cost and material utilization.

Improve data collection about customer trends, technology improvements & realistic forecast

Efficient utilization of ERP systems Production for new markets Lean Manufacturing Maintenance Strategies Changes in scale of production

Under utilized capacity Production Cut Inventory piled up Blocked capital.

GM Closed 13 out of 21 plants.

GM eliminated 74,000 jobs.

GM supply chain crisis still exists. 20 suppliers have filed a bankruptcy petition in the United States

To develop a supply base with emphasis on lower cost Focus on customized production Ensure quality rather than quantity Economies of scale Develop Technical & Human Capabilities Enhance Technology Management

Lower growth of 9.4% in 2008-09 Lead Indicators suggest decline for 2009-10

Source: CSO

Reducing Demand Losses of projects & Contracts ABN AMRO LaSalle Hyderabad Project Scrapped Operation cost pressure Laying off exp & High salaried employees Infosys Revenue guidance Decline of 3.1% to 6.7% in Fiscal 2010

Source : Chairmans Speech 28th Annual Gen Meeting

We are very honestly over-hired The situation is still quite challenging, If you look at our customers, they are not really seeing any increase on their revenue side. And because they are not seeing any increase on their revenue side, they will continue to be concerned
-S.D. Shibulal (COO, Infosys)

Source : ONE INDIA NEWS

Hyderabad ABN Amro section on bench

Postponed revisions in promotions

We have re-aligned our cost structure to protect margins. The Leadership has led by example & has accepted the highest reduction in their variable compensation. For 2010, we have postponed any revisions in compensation & promotions to remain competitive in the current difficult circumstances
- Narayana Murthy (Chairman & Chief Mentor) Chairmans Speech 28th Annual Meeting: June 20, 2009

Focus on Innovation Performance Mgmt

Organization should be flexible enough to reallocate resources from one project to another Leverage Technology to rationalize costs Standard package for performance focused customer

Stress on Maintenance projects

Focus on Research & Innovation

To survive in the crisis the winners dont do different things, they do things differently.