CASE STUDY - REVIVE THE AUTOMOTIVE BUSINESS

Presented by

DEVAJITH.G

D-13

SIMS, Pune

INTRODUCTION

• Evolution of Automobile Industry• Global scenario• Indian automobile industry• Growth shift• Opportunities and threats of Auto Industry

• Why india and china?• Market and Growth potential

Contribution of Auto Industry

GROWTH SHIFT

INDIAN AUTOMOBILE INDUSTRY India is a key pillar of global automotive market - policy,

actions and strategies

By 2015, India will exceed every major European market inc. Germany, France and UK in automotive sales

Over the next 20 years, India will be part of global automotive triumvirate

expecting the India automotive sales to exceed the US market by mid 2030

The global automotive game will be pretty much decided by twin forces for China and India

CHALLENGES FACED BY AUTO

Demographic changes and profound shifts in global economic powerConsumer expectations are changing radically.

New technologies are dramatically changing vehicle industryRising oil priceHuman resourcesEconomic meltdown

CHALLENGES FACED BY AUTO……

• Product Differentiation• Product Development• Marketing and Distribution• Competitive pressures• M&A and deals• Sustainability• Regulation

Excellent Source for IT based Engineering Solutions - for Product &

Process Integration

Scaling Costs

Optimising Resources

Benefits of investing in India

Case study – revival strategy for TATA NANO

The Marketing PlanThe Marketing StrategyThe People’s carThe BuzzAuto Exposition Across the bordersTata Motor ShowroomsOn The webThe One Form Booking

POWER OF UNITY

Improve Efficiency Collaboration Innovation Effective recruitment Emphasis on low fuel consumption Utilize the opputunities Collective effort to find root cause Technology advancement Stop negative publicity

Appendix 1 : Employee cost of TATA Nano

Title Salary Benefits*     

CEO 228,000 273,600     

COO 180,000 216,000     

VP of Product Development 100,000 120,000     

VP Marketing 80,000 96,000     

VP Finance 100,000 120,000     

Management Committee 40,200 - 51,200 48,240 - 61,440     

Engineering Committee 40,200 - 51,200 48,240 - 61,440     

Finance Committee 40,200 - 51,200 48,240 - 61,440     

Sales Committee 46,000 - 56,000 55,200 - 67,200     

Operation Committee 19,400 - 22,400 23,280 - 26,880     

Total 874,000 - 920,000 1,048,800 - 1,104,000     

Appendix 2:Revenue Model of TATA nano

Selling the cars to clientsBank ServicesMaintenance ServicesAdvertisingMarchandisingMaking franchises

Appendix 3:GDP Trends- Global

Appendix 4:GDP Growth rate