Académique Documents
Professionnel Documents
Culture Documents
FACTS
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 to become 7th largest by 2016. Sale of passenger cars in India is likely to grow at an average of 14.9% each year to touch 2.1 million mark by 2010.
KEY PLAYERS
Maruti Hyundai Ford Sonalika International Force M&M Skoda Mercedes Benz Volkswagon TATA Honda GM HM Toyota Kirloskar Fiat Audi BMW Mitshubishi
AUTOMOBILE
2 WHEELLER
3 WHEELLER
PASSENGER VEHICLE
COMMERCIAL VEHICLE
2 WHEELER
3 WHEELER
PASSENGER VEHICLE
COMMERCIAL VEHICLE
Medium and heavy commercial vehicles managed a growth of 4.5%. Light commercial vehicles sales growth was 19.4% at 1,43,237 units against 1,19,924 units in 2007-08. Three-wheelers sales rose by 17% at 3,60,187 units against 3,07,862 units in 2007-08.
GDP
Directly and indirectly it employs more than 10 million people.
The market value of Automobile Industry is more than US$8 billion. and Contribution in Indian GDP is near about 4% and will be double by 2016. The automobile industry in India grew at rate of 11.5 % over the past five years, but growth rate in last year 2008-09 was only 0.7%. FDI inflows in Automobile Industry 2008-09 was Rs.5,212 Cr an increase of 47.25% compare to 2007-08. In 2009, India emerged as Asia's fourth largest exporter of automobiles, behind Japan, South Korea and Thailand.
OPPORTUNITIES Commercial vehicles Heavy thrust on mining and construction activity 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
CAREER
POSITION DETAIL FOR MBA STUDENT State - Head- Commercial Regional Manager- Commercial Regional Manager- Refurbishment Senior Manager-Refurbishment Sales Executive "MIS Manager HR/Industrial
SKILLS NEEDED
Computer literacy Communication skills
Talent Crunch
Lower Salary hikes
BARRIERS TO ENTRY
SUPPLIERS POWER
BUYERS POWER
INTRODUCTION CONTINUED.
The company is the worlds fourth largest truck manufacturer, and the worlds second largest bus manufacturer. In India. Tata Motors is a dual-listed company traded on both the Bombay 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 the iconic Tata Nano, which is the cheapest car in the world.
SWOT
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 upon 3rd and 4th generation platforms. Tata has not got a foothold in the luxury car segment in its domestic, Indian market.
SWOT CONTINUED.
OPPORTUNITIES Purchased the Land Rover and Jaguar brands from Ford Motors for UK 2.3 million in 2008. Tata Motors Limited acquired Daewoo Motor's Commercial vehicle business in 2004 for around USD $16 million. Nano is the cheapest car in the World introduced by TATA.
SWOT CONTINUED
THREATS Other competing car manufacturers have been in the passenger car business for 40, 50 or more years. Sustainability and environmentalism could mean extra costs for this low-cost producer. Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts. The price of steel and aluminium is increasing putting pressure on the costs of production. Many of Tata's products run on Diesel fuel which is becoming expensive globally and within its traditional home market.
SWOT
STRENGTHS Established distribution and after-sales networks Understanding of the Indian market and ability to liaison with the government Ability to design products with differentiating features Brand Image Experience and Know-how in technology WEAKNESSES Lack of experience with the foreign market Inexperience with foreign workforce Heavy Import tariffs
SWOT CONTINUED.
OPPORTUNITY Increased purchasing power of Indian middleclass category Govt. subsidies Tax benefits Foreign collaboration THREATS Threats from Chinese manufacturers Indian as well as foreign competitors
CONTI
Major Players in Utility vehicle segment and Tractor segment. One amongst the top five tractor manufacturing companies in the world Very indigenous regarding very little help from foreign technology sources.
Presence in countries of Europe, Latin America, Africa and United States of America
SWOT Analysis
STRENGTH Very high Brand recall in Tractors Market. Continuous Innovation. Strong Research & Development WEAKNESS High dependence on Rural Market.
OPPORTUNITY
10 tractors per 1000 hectares of agricultural area, much below world average. Huge untapped Market.
THREAT Entry of Competent Foreign & Domestic Players in Tractors Market.
HERO HONDA
Joint venture Both Hero Cycles(India) and Honda Motor Company (Japan) holds 26%stake. Incorporated in January 1984. Market leader in Two Wheeler Segment with 55 % of domestic market . Two Manufacturing Units Located at Gurgaon and Dhaurhera in Hariyana.
SWOT Analysis
STRENGTH Excellent ability to Understand Customer Needs and deliver best suitable products. Recognized and established Brand name. Products with Superior Performance, Low maintenance and high resell value. WEAKNESS Honda Motor Company is dominant partner. Lack of technical capabilities of Honda Motors may degrade the performance of the company and its products.
OPPORTUNITY Global Expansion. Expansion of Target Market Huge Indian market. THREAT Honda and Scooter India can take away market Share and form joint venture to go sour. Emergence of strong Players. FDI Announcement 100 % may attract foreign players to domestic market.
CONCLUSION
Industry across countries will have to meet challenges of newer technologies, alternative fuels and affordability of automobiles by people at large through constructive cooperation. The earlier we are able to achieve this the better it would be for the world performance.
Yash shah