Automobile Industry
Content
Amity Business School
Automobile Industry
By:- Anupam Agrawal MBA E&L(2011) A0102109003
Amity Business School
Overview-1
The Automobile industry in India is the seventh largest in the world with an annual production of over 2.6 million units in 2009. In 2009, India emerged as Asia's fourth largest exporter of automobiles, behind Japan, South Korea and Thailand. By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation's roads. In February 2009, monthly sales of passenger cars in India exceeded 100,000 units. Embryonic automotive industry emerged in India in the 1940s. The growth was relatively slow in the 1950s and 1960s due to nationalization and the license raj which hampered the Indian private sector. After 1970, the automotive industry started to grow, but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a major luxury.
Amity Business School
Overview-2
India has emerged as one of the world's largest manufacturers of small cars. According to New York Times, India's strong engineering base and expertise in the manufacturing of low-cost, fuel-efficient cars has resulted in the expansion of manufacturing facilities of several automobile companies. In India there are 100 people per vehicle, while this figure is 82 in China. It is expected that Indian automobile industry will achieve mass motorization status by 2014. The cumulative production data for April-January 2010 shows production growth of 23.07 percent over same period last year. During April-January 2010,overall automobile exports registered a growth rate of 13.24 percent Passenger Vehicles segment, Three Wheelers and Two Wheelers segments grew by 33.92 percent, 4.60 percent and 8.84 percent respectively in this period. Commercial Vehicles recorded growth of (-) 7.52 percent.
Amity Business School
Overview-3
Amity Business School
Facts
The first automobile in India rolled in 1897 in Bombay. Foreign players are adding to their investments in Indian auto industry. Within two-wheelers, motorcycles contribute 80% of the segment size. Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%). Tata Motors dominates over 60% of the Indian commercial vehicle market. India is the largest three-wheeler market in the world. India is the largest two-wheeler manufacturer in the world. India is the fifth largest commercial vehicle manufacturer in the world. The number one global motorcycle manufacturer is in India.
Amity Business School
FDI
Automatic approval for foreign equity investment up to 100 per cent of manufacture of automobiles and component is permitted. The automobile industry is delicensed. Import of components is freely allowed.
Amity Business School
Major Players
Rank wise Largest Automobile Manufacturers in India by Sales 1. Maruti Suzuki 2. Hyundai 3. Tata Motors 4. Mahindra 5. GM Chevrolet 6. Honda 7. HSD 8. Ford 9. Fiat Motors 10. koda
Amity Business School
Local Brands
Chinkara: Beachster, Hammer, Roadster 1.8S, Rockster, Jeepster Hindustan: Ambassador ICML: Rhino Rx Mahindra: Major, Xylo, Scorpio, Bolero. Mahindra Renault: Logan. Maruti Suzuki: 800, Alto, WagonR, Estilo, A-star, Ritz, Swift, Swif etc. Premier: Sigma, RiO. San: Storm. Tata: Nano, Indica, Indica Vista, Indigo, Indigo Manza etc.
Amity Business School
SMEs
Mainly SMEs are in Auto Component. The SMEs are riding a boom phase, driven by demand from global auto manufacturers. As part of a highly fragmented industry, these companies mostly are part of the unorganized sector. Some of the SMEs are:Bharat Forge Motherson Sumi Amtek Auto Sundaram Fastners EL Forge TVS Autolec Sona Koyo
o o o o o o o
Amity Business School
Employment opportunity-1
Improved information technology and automotive developments also demand the human resource to develop and acquire the desired skills. Investment is leading to the employment growth in the sector. With the emergence of new projects and introduction of technological advancements, the focus is more on the skilled and experienced human resource. Engineers are in demand in automotive, electrical and mechanical fields. Some of the firms going for automation, i.e. planning for CAD systems, are also recruiting people with IT specializations. The automobile sector in India has provided employment to more than 7 lakh skilled workforce. The growth rate is 15% in the India automobile industry.
Amity Business School
Employment opportunity-2
Employment status of Indian automobile sector (FY 2005-06)
Amity Business School
Porter¶s Five Forces Analysis
1. degree of rivalry (High) 2. threat of substitutes (fairly mild) 3. barriers to entry (substantial) 4. buyer power (Dominates) 5. supplier power (Low)
Amity Business School
Why Technology?
Technology development is a continuous evolution and keeping pace with the technology is even more challenging. It is the time to bring these technologies into ³Affordable & Usable´ . Objective of new technology Create an innovative product which is technology backed The "add on" cost should be at an affordable cost compared to the other accessories available in the market place o o o o The features should help the users to reduce maintenance and operational costs Reduced installation time - less than a day Can be fitted on new cars as well as old cars This addresses almost all the features that the car owners are looking for all these years
o o
Amity Business School
Emerging Technology-1
o Black Box The car will have a black box akin to that of an aircraft will help evaluate accident causes. o Record travel history (starts, stops, maximum speed, RPM, idling time, fuel efficiency, fuel consumption, fuel refilling if any, distance travelled and time stamp of all these parameters) o The black box will be more than welcome by the insurance companies and probably lent the vehicle ³Insurance Friendly´.
Amity Business School
Emerging Technology-2
o Global Positioning System Many a times, it is important for the vehicle owner to know the geographical coordinates of the vehicle. o o This feature can come in handy in case of car theft. The owner may like to know where the vehicle is at the moment. o It will also help in guiding the driver by showing the road map. It will also give an alternative ways to reach destination in case there is traffic on the current way.
Amity Business School
Emerging Technology-3
o Digital Dash board It is prevailing in the world for a long time now. But probably has not translated into increased cabin space in terms of volumes. o o o o Speed, Distance travelled RPM Digital fuel gauge Fuel economy. Fuel efficiency in last 100 km. / Distance the car can travel with present fuel o o o o Gear position & Warning for gear shift Driving skills as a function of speed, gear position & RPM Temperature Cabin, engine and ambient temperature Engine On-Off frequency and idle time
Amity Business School
Emerging Technology-4
o o o o o o Coolant level / Engine oil level / Brake oil Tyre pressure Door closure Lights ± linear intensity control / blinkers Wiper ± Linear speed control Inter automobile communication ± Parameters of the vehicle ahead and rear
Amity Business School
Emerging Technology-4
o Fuel Cells Touted as the cleanest source of energy because they use hydrogen to generate power. o With increasing investment in their development by governments and companies alike, fuel cell-powered cars could well be the cars of the future. o A hydrogen fuel cell uses hydrogen as its fuel and oxygen (usually from air) as its oxidant.
Amity Business School
Feasibility Analysis Of Technology-1
All the technologies that we have referred to are already available in foreign countries. But in all the four technologies only fuel cells technology is less feasible as it is costly. GPS, Black Box and Digital Dashboard are readily available at an extra cost and all these feasible technologies as the cost is also not so high. In the West, Black Box (costing the equivalent of about Rs 35,000) are already available. According to Deccan Herald it is soon going to be available in India. GPS is also available in India. Digital Dashboard is available with half of the features and soon it will be available in the market. Many companies are currently researching the feasibility of building hydrogen cars, and some automobile manufacturers have begun developing hydrogen cars. Funding has come from both private and government sources
Amity Business School
Feasibility Analysis Of Technology-2
However, the Ford Motor Company, Renault Nissan, General Motors have dropped down their fuel cells project because of increasing cost. Most hydrogen cars are currently only available in demonstration models or in a lease construction in limited numbers and are not yet ready for general public use. The estimated number of hydrogen-powered cars in the United States was 200 as of October 2009, mostly in California. A hydrogen vehicle would cost around $400,000.
Amity Business School
Evolution Of Technique-1
o Fuel Cells The principle of the fuel cell was discovered by German scientist Christian Friedrich Schönbein in 1838 and published in one of the scientific magazines of the time. o In 1955, W. Thomas Grubb, a chemist working for the General Electric Company (GE), further modified the original fuel cell design by using a sulphonated polystyrene ion-exchange membrane as the electrolyte. The actual Car was rolled by Honda FCX for the first time in 1999. Black Box The modern term "black box" seems to have entered the English language around 1945. But it didn¶t come into limelight until it was used in planes.
o o
Amity Business School
Evolution Of Technique-2
o GPS In 1973, the idea of a Global Positioning System, initially dubbed NAVSTAR, was developed by the United States Department of Defense. o GPS did not reach full operational capacity until July 17, 1995
o
Digital Dashboard The first application of an electronic instrument cluster, in a production automobile, was in the 1976 Aston Martin Lagonda.
o o
In 1980s Fiat Tipo DGT was the first European hatchback to have digital dashboard. In the 2000s, digital speedometers have been produced in some hybrid vehicles, including the Toyota Prius and Honda Civic
Amity Business School
Company Adoption
o o o o o o o o o o o List of fuel cell vehicles Audi BMW Chrysler Daimler Fiat Ford Honda etc List of GPS vehicles Audi BMW Ford Volkswagen etc
Amity Business School
References
ME 6753: Principles of Management for Engineers by Prof. Alan Flury http://www.naukrihub.com/india/automobile/ http://en.wikipedia.org/wiki/Automobile_industry_in_India http://www.automobileindia.com/automobile-industry/ http://www.indiainbusiness.nic.in/industry-infrastructure/industrial-sectors/automobile.htm http://www.dnb.co.in/smes/smes.asp http://www.dnb.co.in/smes/overview.asp Asia-Pacific Research and Training Network on Trade Working Paper Series, No. 37, July 2007 http://www.deccanherald.com/content/49301/now-cars-india-have-black.html
Automobile Industry
By:- Anupam Agrawal MBA E&L(2011) A0102109003
Amity Business School
Overview-1
The Automobile industry in India is the seventh largest in the world with an annual production of over 2.6 million units in 2009. In 2009, India emerged as Asia's fourth largest exporter of automobiles, behind Japan, South Korea and Thailand. By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation's roads. In February 2009, monthly sales of passenger cars in India exceeded 100,000 units. Embryonic automotive industry emerged in India in the 1940s. The growth was relatively slow in the 1950s and 1960s due to nationalization and the license raj which hampered the Indian private sector. After 1970, the automotive industry started to grow, but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a major luxury.
Amity Business School
Overview-2
India has emerged as one of the world's largest manufacturers of small cars. According to New York Times, India's strong engineering base and expertise in the manufacturing of low-cost, fuel-efficient cars has resulted in the expansion of manufacturing facilities of several automobile companies. In India there are 100 people per vehicle, while this figure is 82 in China. It is expected that Indian automobile industry will achieve mass motorization status by 2014. The cumulative production data for April-January 2010 shows production growth of 23.07 percent over same period last year. During April-January 2010,overall automobile exports registered a growth rate of 13.24 percent Passenger Vehicles segment, Three Wheelers and Two Wheelers segments grew by 33.92 percent, 4.60 percent and 8.84 percent respectively in this period. Commercial Vehicles recorded growth of (-) 7.52 percent.
Amity Business School
Overview-3
Amity Business School
Facts
The first automobile in India rolled in 1897 in Bombay. Foreign players are adding to their investments in Indian auto industry. Within two-wheelers, motorcycles contribute 80% of the segment size. Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%). Tata Motors dominates over 60% of the Indian commercial vehicle market. India is the largest three-wheeler market in the world. India is the largest two-wheeler manufacturer in the world. India is the fifth largest commercial vehicle manufacturer in the world. The number one global motorcycle manufacturer is in India.
Amity Business School
FDI
Automatic approval for foreign equity investment up to 100 per cent of manufacture of automobiles and component is permitted. The automobile industry is delicensed. Import of components is freely allowed.
Amity Business School
Major Players
Rank wise Largest Automobile Manufacturers in India by Sales 1. Maruti Suzuki 2. Hyundai 3. Tata Motors 4. Mahindra 5. GM Chevrolet 6. Honda 7. HSD 8. Ford 9. Fiat Motors 10. koda
Amity Business School
Local Brands
Chinkara: Beachster, Hammer, Roadster 1.8S, Rockster, Jeepster Hindustan: Ambassador ICML: Rhino Rx Mahindra: Major, Xylo, Scorpio, Bolero. Mahindra Renault: Logan. Maruti Suzuki: 800, Alto, WagonR, Estilo, A-star, Ritz, Swift, Swif etc. Premier: Sigma, RiO. San: Storm. Tata: Nano, Indica, Indica Vista, Indigo, Indigo Manza etc.
Amity Business School
SMEs
Mainly SMEs are in Auto Component. The SMEs are riding a boom phase, driven by demand from global auto manufacturers. As part of a highly fragmented industry, these companies mostly are part of the unorganized sector. Some of the SMEs are:Bharat Forge Motherson Sumi Amtek Auto Sundaram Fastners EL Forge TVS Autolec Sona Koyo
o o o o o o o
Amity Business School
Employment opportunity-1
Improved information technology and automotive developments also demand the human resource to develop and acquire the desired skills. Investment is leading to the employment growth in the sector. With the emergence of new projects and introduction of technological advancements, the focus is more on the skilled and experienced human resource. Engineers are in demand in automotive, electrical and mechanical fields. Some of the firms going for automation, i.e. planning for CAD systems, are also recruiting people with IT specializations. The automobile sector in India has provided employment to more than 7 lakh skilled workforce. The growth rate is 15% in the India automobile industry.
Amity Business School
Employment opportunity-2
Employment status of Indian automobile sector (FY 2005-06)
Amity Business School
Porter¶s Five Forces Analysis
1. degree of rivalry (High) 2. threat of substitutes (fairly mild) 3. barriers to entry (substantial) 4. buyer power (Dominates) 5. supplier power (Low)
Amity Business School
Why Technology?
Technology development is a continuous evolution and keeping pace with the technology is even more challenging. It is the time to bring these technologies into ³Affordable & Usable´ . Objective of new technology Create an innovative product which is technology backed The "add on" cost should be at an affordable cost compared to the other accessories available in the market place o o o o The features should help the users to reduce maintenance and operational costs Reduced installation time - less than a day Can be fitted on new cars as well as old cars This addresses almost all the features that the car owners are looking for all these years
o o
Amity Business School
Emerging Technology-1
o Black Box The car will have a black box akin to that of an aircraft will help evaluate accident causes. o Record travel history (starts, stops, maximum speed, RPM, idling time, fuel efficiency, fuel consumption, fuel refilling if any, distance travelled and time stamp of all these parameters) o The black box will be more than welcome by the insurance companies and probably lent the vehicle ³Insurance Friendly´.
Amity Business School
Emerging Technology-2
o Global Positioning System Many a times, it is important for the vehicle owner to know the geographical coordinates of the vehicle. o o This feature can come in handy in case of car theft. The owner may like to know where the vehicle is at the moment. o It will also help in guiding the driver by showing the road map. It will also give an alternative ways to reach destination in case there is traffic on the current way.
Amity Business School
Emerging Technology-3
o Digital Dash board It is prevailing in the world for a long time now. But probably has not translated into increased cabin space in terms of volumes. o o o o Speed, Distance travelled RPM Digital fuel gauge Fuel economy. Fuel efficiency in last 100 km. / Distance the car can travel with present fuel o o o o Gear position & Warning for gear shift Driving skills as a function of speed, gear position & RPM Temperature Cabin, engine and ambient temperature Engine On-Off frequency and idle time
Amity Business School
Emerging Technology-4
o o o o o o Coolant level / Engine oil level / Brake oil Tyre pressure Door closure Lights ± linear intensity control / blinkers Wiper ± Linear speed control Inter automobile communication ± Parameters of the vehicle ahead and rear
Amity Business School
Emerging Technology-4
o Fuel Cells Touted as the cleanest source of energy because they use hydrogen to generate power. o With increasing investment in their development by governments and companies alike, fuel cell-powered cars could well be the cars of the future. o A hydrogen fuel cell uses hydrogen as its fuel and oxygen (usually from air) as its oxidant.
Amity Business School
Feasibility Analysis Of Technology-1
All the technologies that we have referred to are already available in foreign countries. But in all the four technologies only fuel cells technology is less feasible as it is costly. GPS, Black Box and Digital Dashboard are readily available at an extra cost and all these feasible technologies as the cost is also not so high. In the West, Black Box (costing the equivalent of about Rs 35,000) are already available. According to Deccan Herald it is soon going to be available in India. GPS is also available in India. Digital Dashboard is available with half of the features and soon it will be available in the market. Many companies are currently researching the feasibility of building hydrogen cars, and some automobile manufacturers have begun developing hydrogen cars. Funding has come from both private and government sources
Amity Business School
Feasibility Analysis Of Technology-2
However, the Ford Motor Company, Renault Nissan, General Motors have dropped down their fuel cells project because of increasing cost. Most hydrogen cars are currently only available in demonstration models or in a lease construction in limited numbers and are not yet ready for general public use. The estimated number of hydrogen-powered cars in the United States was 200 as of October 2009, mostly in California. A hydrogen vehicle would cost around $400,000.
Amity Business School
Evolution Of Technique-1
o Fuel Cells The principle of the fuel cell was discovered by German scientist Christian Friedrich Schönbein in 1838 and published in one of the scientific magazines of the time. o In 1955, W. Thomas Grubb, a chemist working for the General Electric Company (GE), further modified the original fuel cell design by using a sulphonated polystyrene ion-exchange membrane as the electrolyte. The actual Car was rolled by Honda FCX for the first time in 1999. Black Box The modern term "black box" seems to have entered the English language around 1945. But it didn¶t come into limelight until it was used in planes.
o o
Amity Business School
Evolution Of Technique-2
o GPS In 1973, the idea of a Global Positioning System, initially dubbed NAVSTAR, was developed by the United States Department of Defense. o GPS did not reach full operational capacity until July 17, 1995
o
Digital Dashboard The first application of an electronic instrument cluster, in a production automobile, was in the 1976 Aston Martin Lagonda.
o o
In 1980s Fiat Tipo DGT was the first European hatchback to have digital dashboard. In the 2000s, digital speedometers have been produced in some hybrid vehicles, including the Toyota Prius and Honda Civic
Amity Business School
Company Adoption
o o o o o o o o o o o List of fuel cell vehicles Audi BMW Chrysler Daimler Fiat Ford Honda etc List of GPS vehicles Audi BMW Ford Volkswagen etc
Amity Business School
References
ME 6753: Principles of Management for Engineers by Prof. Alan Flury http://www.naukrihub.com/india/automobile/ http://en.wikipedia.org/wiki/Automobile_industry_in_India http://www.automobileindia.com/automobile-industry/ http://www.indiainbusiness.nic.in/industry-infrastructure/industrial-sectors/automobile.htm http://www.dnb.co.in/smes/smes.asp http://www.dnb.co.in/smes/overview.asp Asia-Pacific Research and Training Network on Trade Working Paper Series, No. 37, July 2007 http://www.deccanherald.com/content/49301/now-cars-india-have-black.html
