Automobile Industry in Automobile Industry in India India

Submitted by:Submitted by: Ankit KumarAnkit Kumar IPM Gzb.07-09IPM Gzb.07-09

MarketingMarketing

This study is done in keeping following objectives in view:

• To find out the present status of the automobile industries in India.

• To study the market research of the automobile industries.

• To study the distribution and marketing strategy adopted by automobile industries.

• To study the automotive components with reference to SSL.

SegmentationSegmentation

BASED ON THE PRICE OF THE CAR

BASED ON THE LENGTH OF THE CAR

BASED ON THE USER SEGMENT

BASED ON THE PRICE OF THE CAREconomy Segment

The economy segment of car ranges up to Rs. 2.5 lacs. The products in this segment are Maruti 800, Alto and the newly launched product of TATA motors i.e. NANO.

Mid- Size SegmentThe mid-size segment of car ranges from 2.5 lacs to 4.5 lacs. Itincludes the products like Hyundai santro, Maruti zen, Tata Indica etc.

Luxury car segmentThe luxury segment of car ranges from 4.5 lacs to 10 lacs. It includes the products like Honda city, Hyundai Verna, Mahindra Scorpio etc.

Super luxury car segmentThe super luxury segment of car ranges above 10 lacs. This segment satisfies the elite class of the society. It includes the products like Skoda Laura, Honda Accord, BMW, Mercedes, Audi etc.

BASED ON THE LENGTH OF THE CAR

A segment- Cars that are less than 3.5 meters long (800, omni)

B segment- Cars between 3.5 meters to 4 meters long( Zen, SX4, Santro)

C Segment- Cars between 4 meters to 4.5 meters long (Verna, Honda city, ford

fiesta) D segment- Cars that are more than 4.5

meters long( Mercedez, Sonata,Accord, Skoda)

BASED ON THE USER

Individual Buyers Taxi operators Government /non-government

institutions

Automotive component industryAutomotive component industry

It consists of :It consists of :

Forecasting for Automotive Forecasting for Automotive sales(Domestic & Exports)upto 2016sales(Domestic & Exports)upto 2016

Contd…Contd…

Automotive Sales-Domestic & Export

0

5

10

15

20

25

30

35

40

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Years

Sale

s

Forecasting for Domestic passenger Forecasting for Domestic passenger vehicle up to 2016vehicle up to 2016

Contd….Contd….Domestic Passenger Vehicle

0

500

1000

1500

2000

2500

3000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Years

Sale

s

Forecasting Up to 2016Forecasting Up to 2016

Contd…Contd…

Auto Component Industry Export

0

1000

2000

3000

4000

5000

6000

7000

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Years

Exp

orts

Forecasting upto 2016Forecasting upto 2016

Contd…Contd…Auto Component Industry Production

0

5000

10000

15000

20000

25000

30000

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Years

Prod

uctio

n

Forecasting upto 2016Forecasting upto 2016

Contd…Contd…

Auto Componenet Industry Investment

0

2000

4000

6000

8000

10000

12000

14000

Years

Inve

stm

ent

Forecasting upto 2016Forecasting upto 2016

Contd…Contd…

Car Production

0

500000

1000000

1500000

2000000

2500000

Years

Pro

duct

ion

Forecasting upto 2016Forecasting upto 2016

Contd….Contd….Passenger Vehicles Exports from India

0

100

200

300

400

500

600

Years

Indian Automotive Mission Plan – Vehicle salesexpected to grow to 32 million by 2015-16

Key points for Sona Key points for Sona SomicSomic

Key Focus AreaKey Focus Area

Technology Innovation Quality

Customer satisfactionCustomer satisfaction

Superior customer satisfaction with

over 99% on time delivery should be the key areas for the SSL.

MarketsMarkets

Germany, Italy, UK, Belgium, Poland, France, USA, Canada,

Romania, Holland, Israel, Greece, Spain, Hungary, Sweden, Russia,

Others

Product designingProduct designing

Product should be designed using state-of the-art three dimensional mechanical design software and produced with precision tooling

Manufacturing Process

All steps of the manufacturing process should be planned, controlled and monitored by a corporate-wide computerized network running Enterprise Resource Planning (ERP) software

Benefits of ERP SoftwareBenefits of ERP Software

The capabilities of this system will enable plants to meet changing customer demands, and allow the flexibility to design and manufacture parts that are not currently in sona’s portfolio

Testing and Controls to be used

Material Surface Crack Test Hardness Test Roughness Test Fatigue Test Vibration Test Surface Coating Thickness Test

Contd.Contd.

Stud Breakaway Test Stud Pull Out Test Welding Tensile Strength Test Buckling Test Salt Spray Test (out sourced) Leakage Test SAE J193 Ball Stud and Socket Assembly Test Procedures

Product Specifications/Enhanced designs

Unified-body housings do not require cover plates or polymer caps, this leads to a much stronger design with improved overall part integrity

Exclusive two-convex dust boot design helps internal structure stay firm and durable against corrosion, tear, dust and temperature variation

Special CR60 dust boot material is used for flexibility, yet still provides maximizing overall toughness

For ease of installation, ball studs should be designed with wrench flats and/or allen wrench sockets to match each specific vehicle suspension

Contd.Contd. More robust bearing design resists radial/axial

and vibrating forces far better than standard design

Precision-cut channels on inner bearing walls provide significantly more grease storage and improved grease flow

Upper and lower dust boot rings are specifically designed to prevent dust boot tear. Acting much like a spring, they optimally maintain the correct clamping force and remain totally unaffected during changing operating conditions

Stabilizer links are plated with environmentally friendly Cr3+ material,which prevents corrosion and increases the life of the grease inside

Warranty

All parts should come with a 2 year/40,000 mile limited warranty. Company should replace, or refund your money for, at its option, any part it sells that wears out or breaks under warranty. The warranty begins on the day the part is purchased and expires at the end of 2 years/40,000 miles or when the vehicle is sold, whichever comes first

Packaging

All products should be packed and sealed into moisture preventative bags. This ensures parts remain rust-free during transportation and storage. These bags are environmentally friendly and do not contain nitrites or phosphates

Inventory Mix Management Provide plan to minimize and/or eliminate duplication while

extending needed coverage & foreign brand

ACTIONS

Identify parts to be added because domestic supplier might not have or distributor does not carry .

Identify parts to be migrated because price point, design, and/or brand does not compete well for foreign nameplate repair

Identify older/slower moving foreign car parts to zero order points and/or return to domestic supplier

Typical WD location adds $15-18K / Store location is $3-5K

Changing market do we have the right tools?

1. Price point: Domestic-oriented aftermarket premium lines are relatively expensive as compared to import-specialist brands

2. Brand: In order to compete for European and many Asian repair dollars, the market often demands a foreign nameplate (domestic suppliers source almost all of these parts)

3. Coverage: Domestic-oriented suppliers offers between 53-61% of the “top 100”import vehicle coverage .

4. Enhanced Design: patented product designs manufactured gives installers choices that have been previously unavailable in the U.S.

5. Growth: Quickly changing vehicle parts in North America will drive future growth in the import segment of the chassis business.

The above analysis and The above analysis and recommendations recommendations establishes SSL’s market position as a leading supplier of Steering Ball Joints and Suspension Arms to domestic automobile manufacturers and tier-1 suppliers, and access to technology from its collaborators for product design and development.