revive the automobile indusrty b3 bap_sims
DESCRIPTION
A Case study regarding the issues faced by Automobile Business of India along with specific study of Tata Motors, the revival strategy needed to be taken and the scope of improvements.TRANSCRIPT
REVIVE THE AUTOMOTIVE BUSINESS
Akhil Unnikrishnan B-03 2014-2016 [email protected] 7028055573
ISSUES….
• Negative growth rate
• Limited growth in motor cycles
• Car sales going down
• Complete influence in the sector
• Inconsistent growth
• Heavy vehicles and auto component also performing bad
IMPACT..• Stunned growth of companies• Closing of business• Unemployment• Withdrawal from the sector• Increasing price• Unproductive plants and factories• Effect over Indian Economy
• STATISTICS OF WORRIES
Statistics of Worries
1.20% growth in production
2.61% growth in domestic
sales
Car sales down by 6%
19.7% decline in 3 wheeler
exports
2.61 % growth in
commercial car seg.
10% decline in commercial
vehicle production
REASONS
Recession Purchasing Power
Global Impact Tightening monetary policy
KEY TRENDS…
• Glocalization • Deployment of Mitigation
statergies• The New Changes…• Evolving customer needs And
Urbanization
• Increased Interest on India for achieving cost parity and product differentiation
• Distribution of Global Automobile in rural segments• Local Companies bridging the technology gap• Leverage of using India as export hub to Africa,
Eastern Europe and South East Asia
• Decrease in skilled personal• R&D and manufacturing lacking skills• Multi plant strategies• Reallocation of suppliers
• Usage of Digital Marketing• Demand for personal mobility solutions• New entrants such as car-rental companies,
multi-brand service networks and group buying companies
• After-sales services, and need for enhanced bargaining power
• By 2020, India population to be around 200 million
• Pressure in Transport Infrastructure
• More fuel variants• Advanced safety• Changing customer preferences
towards luxury
TATA MOTORS
• Threats
• Car sales plunging 27.6 %
• Capacity utilization woes
• Infrastructure and growth prospects
• Global competitors
• Decrease in exports
• Environment of sluggish growth
New Steps• Telematics and fleet management service• Tata Alert• New dimensions in showrooms• Line up of new vehicles and initiatives• Customer Relations Management (CRM) system
certified by Oracle as the largest Siebel deployment in the automotive market.
• TML Distribution Company Ltd (TDCL), acts as a dedicated distribution management company and subsidiary, Tata Motors Finance Ltd
Our pride
• Reducing production cost by innovative implementation
• Expansion of manufacturing unit to all over the world
• New design and new concept cars• More stress on environment friendly ideas
Operation
• Find enough funds • Market image to be maintained• Find future prospects for mergers and acquistation• Making the customers and owners share same
passion
Finance
• Position to be diversified• More segmentation in passenger vehicles• Expand the outreach• Proper positioning of brand name
Marketing
REVIVAL
CV Domestic PV Domestic Export Total0200400600800
1000
Volume Growth
2013 2012
CV Volumes(000s)
PV Volumes (000s)
CV Market Share(%)
PV Market Share(%)
0
400
800
1200
1600
Vehicle Sales and Domestic Shares
2009 2010 2011 2012 2013
63%14%
9%5%3%3%1%1%
Distribution of Revenues(2012-2013)MaterialsOperations Taxes and DutiesEmployeesInterestDepreciation ShareholdersReserves
GRAPHS
HTTP://WWW.TATAMOTORS.COM/WEBADMIN/FR-FILES/616D31C901A5578679EBCDA7BE098604.PDF
INDIA'S MOTOWN MELTDOWN MOMENT_ CAR SALES CRASH TO LOWEST DOWNFALL FIRST TIME IN 10 YEARS AS PETROL
PRICES AND HIGH INTEREST PULL DOWN AUTO MARKET _ MAIL ONLINE
MANAGEMENT DISCUSSION AND ANALYSIS _ TATA MOTORS ANNUAL REPORT 2012-13
BIBLIOGRAPHY
THANK YOU!