presentation on automobile industry with tata motors example
Text of automobile industry
PRESENTATION ON AUTOMOBILE INDUSTRY BY RAJ GUPTA MANGESH BHOSLE KALPESH BHASAGRE SANDEEP YADAV NARESH SOLANKI UNDER THE GUIDANCE OF PROF.SEEMA LADHA
AUTOMOBILE INDUSTRY The automotive industry began in the 1890s with hundreds of manufacturers that pioneered the horseless carriage After World War II, the U.S. produced about 75 percent of world's auto production. In 1980, the U.S. was overtaken by Japan and became world's leader again in 1994. In 2006, Japan narrowly passed the U.S. in production and held this rank until 2009, when China took the top spot with 13.8 million units With 19.3 million units manufactured in 2012, China almost doubled the U.S. production, with 10.3 million units, while Japan was in third place with 9.9 million units The first car ran on India's roads in 1897. Until the 1930s, cars were imported directly, but in very small numbers.
Political In 2002, the Indian government formulated an auto policy that aimed at promoting integrated, phased, enduring and self-sustained growth of theIndian automotive industry Allows automatic approval for foreign equity investment up to 100% in theautomotive sector and does not lay down any minimum investment criteria. Ensure a balanced transition to open trade at minimal risk to the Indianeconomy and local industry. Promoting multi-model transportation and the implementation of mass rapid transport system Economic Economic pressures on the industry are causing automobile companies toreorganize the traditional sales process. Weighted tax deduction of up to 150% for in-house research and R & Dactivities. Govt. has granted concessions, such as reduced interest rates for exportfinancing. Several Indian firms have partnered with global players. While some haveformed joint ventures with equity participation, other also has entered intotechnology tie-ups.
Social Since changed lifestyle of people, leads to increased purchase of automobiles, so automobile sector have a large customer base to serve Indian customers are highly discerning, educated and well informed. Theyare price sensitive and put a lot of emphasis on value for money. Preference for fuel efficient cars with low running costs Technological The Government of India is promoting National Automotive Testing andR&D Infrastructure Project (NATRIP)to support the growth of the autoindustry in India Technological solutions helps in integrating the supply chain, hence reducelosses and increase profitability Major global players like audi, BMW Hyundai etc have setup their manufacturing units in India.
Environmental Physical infrastructure such as roads and bridges affect the use of automobiles. If there is good availability of roads or the roads are smooththen it will affect the use of automobiles Physical conditions like environmental situation affect the use of automobiles. If the environment is pleasant then it will lead to more use of vehicles. Legal Legal provision relating to environmental population by automobiles. Legal provisions relating to safety measures Ensure a balanced transition to open trade at minimal risk to the Indianeconomy and local industry
ISSUES AND CHALLENGES Competitive pressures The rapid development of the low-cost labour economies in Eastern Europe, South East Asia, China and India is putting enormous pressures on labour intensive suppliers Sustainability Increasingly, environmental considerations and public opinion are driving manufacturers' decisions around the mix of materials used in manufacturing, the types of engine and the end of vehicle life (ELV) Supply chain management and cost reduction In the age of global trading, supply chains never stand still. Therefore, supply chain architectures must be kept under constant review in order for then to be both logistically efficient and cost effective. Emerging markets Rapid economic developments in emerging markets, notably China and India, are providing significant opportunities to increase sales and reduce costs
Founded in 1945 as a manufacturer of locomotives, the company manufactured its first commercial vehicle in 1954 in a collaboration with Daimler-Benz AG, which ended in 1969 Tata Motors Limited (formerly TELCO, short for "Tata Engineering and Locomotive Company") is an Indian multinational automotive manufacturing company Its products include passenger cars, trucks, vans, coaches, buses and military vehicles. It is the world's eighteenth-largest motor vehicle manufacturing company, fourth-largest truck manufacturer and second-largest bus manufacturer by volume. Tata Motors is listed on the Bombay Stock Exchange, where it is a constituent of the BSE SENSEX index, the National Stock Exchange of India and the New York Stock Exchange. Tata Motors is ranked 314th in the 2012 Fortune Global 500 ranking of the world's biggest corporations. Tata Motors has auto manufacturing and assembly plants in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad and Pune in India, as well as in Argentina, South Africa, Thailand and the United Kingdom. It has research and development centres in Pune, Jamshedpur, Lucknow and Dharwad, India, and in South Korea, Spain, and the United Kingdom
MISSION To be passionate in anticipating and providing the best vehicles and experiences that excite our customers globally. VISION Most admired by our customers, employees, business partners and shareholders for the experience and value they enjoy from being with us.
TURNAROUND STRATEGY Tata Power Delhi Distribution by winning hearts and changing mindsets, and through technology and commercial savvy transformed a loss-making government entity into an efficient and profitable operation that has become a benchmark for public-private partnerships
R&D STRATEGY Tata Group companies cumulatively spend Rs.12,500 crore on research & development. knowledge-based engineering application software from Tata Technologies that speeds up results. An engine start-stop technology developed by Jaguar Land Rover that stops an engine when the vehicle isn't moving, thus saving on fuel; High performance rail steel that saved 150,000 over five years was developed by Tata Steel Europe High standard steel for safer and fuel efficient vehicles from Tata Steel Europe The world's cheapest car, Nano, an innovation from Group company Tata Motors, launched in April 2009, has 37 patents, Swach, the cheapest water filter from Tata Chemicals, has 14. Tata Steel, which acquired British company Corus in 2007, meanwhile, files around 50 patents each year.
P2 STRATEGIES P2 or pollution prevention is a proactive strategy that uses fewer or smarter resources to begin requiring lesser cleanup at the final disposal. It is done by reducing or eliminating waste at the source by modifying production processes, promoting the use of non-toxic or less-toxic substances, implementing conservation techniques, and re-using materials rather than putting them into the waste stream. It assumes no waste will occur. It is an effective getting more from less strategy.
Reducing packaging material by either using sustainable packaging (replacing wood with metal) or reusing existing packaging (recycling wood). The company recycles close to 69 percent of the wood packaging thus eliminating use of fresh wood. The company aims to source 60% of its components from the park thereby increasing its resource efficiency and reducing its emissions due to reduction in logistics and transportation.
R2 STRATEGIES This is a getting more from the same strategy where otherwise wasted resources are recovered by way of proper disposal recycling or reconditioning. Increasing life of aggregates Recon business In 2010-11 a total of 13,788 engines and 8,690 other parts were reconditioned. Other resource conservation techniques like reusing engine oil for multiple testing cycles has been employed. A 200 litre engine oil barrel can now be used to test 170 engines instead of 85.
Reusing paint sludge and thinner Last year, approximately 390 tonnes of hazardous paint sludge was converted to a low quality paint suitable for floor painting. Tata Motors has also developed a process to convert the incinerator ash to pavement bricks that can be used in walkways within the plant. This model has been very successful and has significantly reduced the amount of hazardous incinerated ash sent to landfills.
SWOT ANALYSIS STRENGTHS: CONSOLIDATED net profits of Rs 1988.73crores for the quarter ended June30, 2010 on the back of strong sales in the domestic market and a good show of J&LR. A strong faith of Indian people in Tata brands. A group global sale grows by 36% at 90,646 vehicles in July 2010. Market leader in commercial vehicles. largest car seller in passenger car vehicles. largest truck manufacturer. largest bus manufacturer.
WEAKNESSES: Cases of fire in Nano Cars. Image of Taxi for Tata Indica. Less no of service station as comparison to Maruti Suzuki. OPPORTUNITIES: Fastest growing market for small cars in India. Positive business outlook for both commercials and passengers vehicles in the Indian market would give a boost to Tata Motors Indian operation. Crisil raised its long term debt rating to AA-. Reflecting an improvement in the ability of the Auto Major to repay loa THREATS: Entries of foreign players in Indian automobile sector. Stiff competition from Maruti Suzuki and Hyundai.
Value Chain & Value System of TATA motors Transporters, Convoy Drivers Association Dealer Network, Marketing Research Firms, Vehicle Financing SAP , VCM Inbound Outbound Marketing Operations Logistics Service Logistics SAP , CRM - DMS Suppliers , Contractors Regional Warehouses, Dealer Workshops, Distributors, TASS Strategic Alliances
Inbound Logistics Long term contract with service provid