strategic road maps for auto mobile industry

Upload: heena-pahuja

Post on 02-Jun-2018

220 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/10/2019 Strategic Road Maps for Auto mobile industry

    1/34

    1 | P a g e

    SCENARIO BASED ANALYSIS

    AND STRATEGY ROADMAP

    OF AUTOMOBILE

    INDUSTRY AN INDIAN PERSPECTIVE

    Submitted by Group 7

    Abhilash P Tom (14P123)

    Ankit Raja (14P128)

    Heena Pahuja (14P142)

    Karthik B (14P145)

    Samarpan Jena (14P153)

    Shatadal Ghosh (14P168)

  • 8/10/2019 Strategic Road Maps for Auto mobile industry

    2/34

    2 | P a g e

    Contents

    ACKNOWLEDGEMENT ............................................................................................................................. 3

    AUTOMOTIVE INDUSTRY: FACTS AND FIGURES ..................................................................................... 4

    KEY DRIVERS AFFECTING INDIAN AUTOMOBILE INDUSTRY ................................................................... 5

    ECONOMIC FACTORS INFLUENCING INDIAN AUTO INDUSTRY .............................................................. 6

    DRAWING A PARALLEL WITH CHINA ....................................................................................................... 7

    DEVELOPMENT OF SCENARIO BASED PLANNING ................................................................................... 8

    PROCESS STEP1: DEFINITION OF SCOPE ............................................................................................. 8

    SWOT ANALYSIS .............................................................................................................................. 9

    PROCESS STEP 2: PERCEPTION ANALYSIS ......................................................................................... 10

    PROCESS STEP 3: TREND AND UNCERTAINTY ANALYSIS ................................................................... 13

    PROCESS STEP 4: SCENARIO BUILDING ............................................................................................. 13

    PROCESS STEP 5: STRATEGY .............................................................................................................. 15

    CHALLENGES FACED BY AUTOMOBILE INDUSTRY ................................................................................ 17

    AUTO INDUSTRY OUTLOOK 2014 2020 (FIVE YEAR ROADMAP) ........................................................ 19

    MAJOR REGULATIONS IMPACTING THE AUTOMOBILE INDUSTRY IN THE NEXT 5 YEARS: ................... 21

    INNOVATIONS (5 YEAR ROADMAP): ..................................................................................................... 23

    INNOVATIONS - AUTOMOBILE SECTOR (15 Year Road Map): ............................................................ 26THE FUTURE OF AUTOMOBILE INDUSTRY (15 YEAR ROADMAP) ......................................................... 27

    CONCLUSION ......................................................................................................................................... 33

    REFERENCES / BIBLIOGRAPHY .............................................................................................................. 34

  • 8/10/2019 Strategic Road Maps for Auto mobile industry

    3/34

    3 | P a g e

    ACKNOWLEDGEMENT

    The happiness that follows the successful completion of any project would be incomplete

    without the acknowledgement of people whose endless support and contribution made it

    possible and whose guidance and mentorship helped us immensely in our project.

    We would specially like to thank our mentor guide Prof. Subhulakshmi Sircar for her

    extensive support in the overall design and streamlining of the entire report without which

    the report could not have been in its current state.

  • 8/10/2019 Strategic Road Maps for Auto mobile industry

    4/34

    4 | P a g e

    AUTOMOTIVE INDUSTRY: FACTS AND FIGURES

    Indian automobile industry is a key player in global context and the policies, actions taken by it will

    have a significant impact on the global automobile industry. In terms of size of the industry, India

    stands sixth in the global market and it is expected to become fourth in the following year; third by

    2020 followed by china and the US. By mid 2030s, the sales of Indian automobiles are expected to

    exceed that of US.

    By 2018 the Indian automotive industry is expected to reach a volume of 37,000 thousand units

    which is approximately 70% higher than that of in 2014. Currently India is in the top 10 in different

    classes of automobiles. Motorcycles are the largest segment accounting for around 80% of total

    industrys sales volume.

    India is currently a global hub for the automobile industry which leading multinationals setting up

    plants across India. Currently India has around fifteen manufacturers of passenger vehicles and

  • 8/10/2019 Strategic Road Maps for Auto mobile industry

    5/34

    5 | P a g e

    MUVs; nine manufacturers of vehicles in the commercial space; sixteen companies producing two or

    three wheelers; fourteen companies producing tractors and around five engine manufacturing

    companies.

    The distribution of various manufacturing companies spread across India could be illustrated asbelow

    KEY DRIVERS AFFECTING INDIAN AUTOMOBILE INDUSTRY

    Several key drivers have been identified which would significantly influence the growth projections

    of the Indian auto industry. They are

    Infrastructure Improvement

    Rising household incomes

    Regulations from the government

    Public transport system

    Lifestyle of Indian households

    Penetration of low cost segment vehicles

  • 8/10/2019 Strategic Road Maps for Auto mobile industry

    6/34

  • 8/10/2019 Strategic Road Maps for Auto mobile industry

    7/34

    7 | P a g e

    As per reports by major consulting firms, the automobile sales, including passenger sales,commercial vehicles, and two wheelers; have been concentrated in Indian sub continent. Theoriginal equipment manufacturers have been shifting towards Asian countries, primarily India, China& Japan. 65% of the automobile sales are expected to be from Asian countries.

    DRAWING A PARALLEL WITH CHINA

    India and China are the largest automobile markets in the Asia pacific region in terms of volumes aswell as values. As on December 2013, India occupies 6 per cent of Asia s automotive industrywhereas China occupies a larger chunk accounting to around 43 per cent in terms of market value.The Indian automobile market is expected to reach $150-200 billion in terms of revenues by 2030

    and per unit sales of India and China would exceed 10 million by 2030.

    The GDP growth in real terms as well as GDP per capita income of India and China has beenincreasing at a continuous pace post liberalization. The FDI inflows into the correspondingeconomies also have been growing at a significant rate.

  • 8/10/2019 Strategic Road Maps for Auto mobile industry

    8/34

    8 | P a g e

    DEVELOPMENT OF SCENARIO BASED PLANNING

    Scenario based planning is employed for any industry as a part of strategic planning while

    performing long term planning. This primarily comprises of six steps

    PROCESS STEP1: DEFINITION OF SCOPE

    This is the first stage in developing the scenario based planning in which the Framing Checklist is to

    be prepared. This checklist answers five questions which are required for starting the scenario-based

    strategic planning.

    These steps are:

    1) Goal of Scenario project

    2) Strategic level of analysis

    3) Definition of stakeholders

    4) Participants

    5) Defining the time horizon

    Goal:

    To become a major auto player in the world

    Strategic Level of analysis:

    Business level

    Stakeholders:

    Internal: Senior and top management of the firm

  • 8/10/2019 Strategic Road Maps for Auto mobile industry

    9/34

    9 | P a g e

    External: People who are not directly linked to the firm but have sufficient knowledge of the

    sector and are consultants to the industry

    Participants:

    Top management with selected participants from various departments viz. Research &

    Development team, Marketing and Operations team, managers in various domains etc

    Time Horizon:

    5 years to 15 years

    SWOT ANALYSIS

    In order to evaluate the strengths, weaknesses, opportunities and threats; and also to evaluate the

    automobile industry, the SWOT analysis has been performed considering the current Indian scenario

  • 8/10/2019 Strategic Road Maps for Auto mobile industry

    10/34

    10 | P a g e

    PROCESS STEP 2: PERCEPTION ANALYSIS

    The second step of the scenario based planning focuses at analysing the perception, which involves

    assumptions and considerations undertaken by the participants who are involved in the scenario

    based planning.

    In this step there are three main objectives which are to be fulfilled. The first objective is to identify

    the factors involved which could influence the future of the industry. The second objective is to

    identify the impact and uncertainty of these individual factors on the Indian auto industry. This could

    be done by creating a rating scale of 1-10. The final objective is to benchmark the perspectives of

    various stakeholders who are involved in the scenario building process.

    The below identified factors have their effects on the Indian auto industry:

    Political

    1) Geopolitical stability and expansion policies

    2) Made in India as key focus

    3) Easy policy framework for FDI in manufacturing

    4) Govt expenditure in R&D

    External

    1) Global Steel Prices

    2) Global Oil Prices

    Technological

    1) Operational Improvement

    2) Availability of Good Suppliers

    3) Manufacturing capacity and capability

    4) New technology and market concentration

    Environmental

    1) Sustainable green manufacturing

    2) Development of green technology

    Social/Economical1) GDP growth and FDI

  • 8/10/2019 Strategic Road Maps for Auto mobile industry

    11/34

    11 | P a g e

    2) Rise in disposable incomes

    3) Growth in services/manufacturing industries

    4) Education and infrastructure (road networks)

    In order to proceed with the analysis, all these factors should be marked with codes as below

    The factors identified in the above step are correlated with an impact and uncertainty index ranging

    from 1-10 based on their significance towards the industry

  • 8/10/2019 Strategic Road Maps for Auto mobile industry

    12/34

    12 | P a g e

    Based on these impact and uncertainty values of individual factors, a spider web diagram is created.

    The primary purpose behind creating the spider web diagram is to identify the existence of blind

    spots, if any.

  • 8/10/2019 Strategic Road Maps for Auto mobile industry

    13/34

    13 | P a g e

    PROCESS STEP 3: TREND AND UNCERTAINTY ANALYSIS

    In this phase, the factors are plotted on a graph with uncertainty on x-axis and impact on y-axis. This

    graph helps in identifying various zones as below

    PROCESS STEP 4: SCENARIO BUILDING

    Among the uncertainties explained earlier, the key ones are technology, market concentration and

    geopolitical policies of the government.

    Based on the two scenario dimensions four scenarios A, B, C & D are formed

    Scenario A

    Favourable technology, market conditions and favourable government policies

    Scenario B

    Unfavourable technology, market conditions and favourable government policies

    Scenario C

    Favourable technology, market conditions and unfavourable government policies

  • 8/10/2019 Strategic Road Maps for Auto mobile industry

    14/34

    14 | P a g e

    Scenario D

    Unfavourable technology, market conditions and unfavourable government policies

    The analysis of each of the scenarios is better explained with the help of the below picture

  • 8/10/2019 Strategic Road Maps for Auto mobile industry

    15/34

    15 | P a g e

    PROCESS STEP 5: STRATEGY

    The outlook of Indian automobile industry in 2015 could be defined by various trends in the industry

    such as

    Positive outlook:

    The existing issues of over capacity and heavy competition, which the industry has been facing since

    FY 2011-12, are mitigated by delaying the proposed capacity addition and adjusting the sales volume

    could improve the credit rating of the industry.

    Continued weak demand:

    Post the general elections in India, the consumer vehicles (CVs) and passenger vehicles (PVs) sales

    have decreased; the rupee valuation in the global markets also shows significant impact on the

    industry outlook.

  • 8/10/2019 Strategic Road Maps for Auto mobile industry

    16/34

    16 | P a g e

    Exports to foreign markets:

    The share of exports on the total sales volume of the industry is maintained in the range of 16-21%

    for the last 5 years. The trend is showing an increase in the exports to international markets,

    particularly to South East Asian economies and African sub continent. Within passenger vehicles,utility segment occupies a smaller pie of exports whereas most of the exports are concentrated in

    compact size segment.

    The automobile industry is a growth industry. Across the globe, from China where there is a boom in

    sales and production to the US where a strong recovery continues to surpass expectations. Clearly

    the automobile industry is a growth industry. However the automobile sector is daunted by some

    unprecedented challenges.

    The leaders have to create coherent strategy, clearly define the goals and objectives and devise

    ways to rope in the right people. The key to success in this dynamic environment is as follows.

    Close attention to the market dynamics and changing thecompany's positioning to reap the maximum benefits

    Eg- China is booming and US making a strong recovery, Russia isfacing a slowdown.

    Know the market

    Car buying decision rational as well as emotional Car companies need to build good products and back it upwith good service to establish good rapport with consumers

    Building the Brand

    Successful companies need to keep transforming Flexible production with better decisions for reducedcomplexity

    Adoption ofproduction Strategies

    Suppliers are important partners in innovation Maintaining relations with the OEMs and suppliers

    Getting the prioritiesright

    Improving environmental performance of products Better transparency of the whole supply network to developsustainable business

    Long-term view

  • 8/10/2019 Strategic Road Maps for Auto mobile industry

    17/34

    17 | P a g e

    CHALLENGES FACED BY AUTOMOBILE INDUSTRY

    Changes in Demographics - With rising income levels, vehicles have to be designed to suit

    specific requirements i.e. more configurations of products are required.

    Shifts in economies - With the rise in new economic powers like China, demand patterns

    have undergone a sea change with major demands from emerging economies.

    Changing consumer expectations - Consumers have high expectations and are demanding

    more for their money.

    Rapid advancement in technology - With increasing advancement of technology, it has

    become equally imperative to focus upon fuel efficiency and cost- efficacy. Thus there is a

    need to strike a balance between the two.

    Changes inDemographics

    Shifts ineconomies

    Changingconsumerexpectations

    Rapidadvancement intechnology

  • 8/10/2019 Strategic Road Maps for Auto mobile industry

    18/34

    18 | P a g e

    Increasing Complexities - more configurations in the existing products demanded has lead

    to more complexities in the production and the manufacturing cycles.

    Shorter technology Cycles - need to reduce the cycle times and lead times of the products

    being manufactured to increase productivity and improve efficiency.

    Pressure to innovate - with rising consumer expectations, imperative to innovate to serve

    as points of differentiation for the new products.

    Global supply networks -rapid globalisation has sparked the need to improvise the global

    supply chain and delivery systems to ensure that demands are fulfilled.

    Competition - stiff competition has prompted companies to offer the best package at the

    best cost requiring to relook at the cost cutting strategies in turn.

    Increasingcomplexities

    Shortertechnology

    cycles

    Pressure toinnovate

    Global supplynetworks

    Competition

    Needs Demands

  • 8/10/2019 Strategic Road Maps for Auto mobile industry

    19/34

    19 | P a g e

    The demands of the customers, investors and regulators have clearly over weighed the

    needs of the same groups. This means that these key stake holders are able to dictate the

    terms to a considerable extent rather than taking what is being dished out.

    AUTO INDUSTRY OUTLOOK 2014 2020 (FIVE YEAR ROADMAP)

    Data from various industry reports suggest that Indian auto industry would be in the top three, after

    China and the US, by 2020. The government of India in its automotive mission plan 2016, has

    projected that contribution from auto industry would roughly account for ten per cent of GDP. The

    market has a capability to grow at a CAGR of 6 million units of sales year on year by 2020.

    Reports from various consulting firms have projected that the industry would grow to a size of 40BN

    USD by the year 2016. Multinational companies including Maruti Suzuki, TATA Motors, Hyundai

    Motors and M&M are likely to be the largest contributors to the industry.

  • 8/10/2019 Strategic Road Maps for Auto mobile industry

    20/34

    20 | P a g e

    The increasing demand in the consumer and commercial vehicles would contribute to this growth,

    which would be backed up by raising revenues and production capacities. The passenger vehicle

    segment is expected to grow by fifteen per cent where as the commercial segment about three

    percent.

    In terms of sales volumes, the two wheelers are expected to contribute the highest approximating to

    around 66 per cent where as in revenue terms, the heavy vehicle segment is expect to contribute

    around fifty percent.

    Vehicles fitted with compressed natural gas kits, and diesel vehicles are expected to occupy the

    major share of the Indian auto industry in 2020. To achieve this expected position in the competitive

    global market, the Indian auto industry has to undergo structural reforms and it has to align itself in

    terms of innovation and product design. Along with these, sustainability and flexibility also play amajor role in defining the future outlook.

    Various competitive measures influence the outlook of the growing industry. They are -

    Product Leadership

    With the global players foraying in Indian markets, in order to meet the goals of the next

    decade (2011-2020), changing the consumer perspective towards demands such asenvironmental concerns, fuel efficiency; Innovation in designs such as introduction of hybrid

    vehicles; and advancements in technology such as in engines, power trains etc would define

    the strategic roadmap.

    Manufacturing System Priorities

    The constraints faced by manufacturers of in automobile industry in meeting the global

    demands as well as to efficiently optimize technology and manpower while complaining to

    eco friendly norms are the priorities which are to be considered in the future.

    Performance Measures

    Striking a balance between efficiency and effectiveness is always significant in attaining a

    competitive position in the global markets. Maintaining the quality standards in procuring,

    manufacturing, supply chain; cost effectiveness by balancing raw material, labour, inventory,

    logistics; innovative and effective measures in delivering the end product to the consumer

    would define the performance of the industry.

  • 8/10/2019 Strategic Road Maps for Auto mobile industry

    21/34

    21 | P a g e

    All these measures can be defined with the help of a balance score card as below

    MAJOR REGULATIONS IMPACTING THE AUTOMOBILE INDUSTRY IN THE NEXT5 YEARS:

    1. NCAP crash testing

    NCAP (New Car Assessment Policy) is an autonomous organisation that conducts testing of

    vehicles for safety and assigns ratings to these on the basis of their performance in these

    tests. Crash testing has two aspects- front impact and side impact testing. The ratings are

    meant to guide the buyers in their decision making process. At present, majority of the

    vehicles in India have failed the crash tests and the companies are under extreme pressure

    to build safer cars complying with safety standards.

  • 8/10/2019 Strategic Road Maps for Auto mobile industry

    22/34

    22 | P a g e

    2. Mandatory recall policyThere have been growing concerns for passenger safety which has pushed the government

    to mull the option of moving from voluntary recall at present to a mandatory recall

    policy. The policy as stated in the proposed road Transport and safety Bill lays down

    mandatory recall on 100 or more complaints in addition attracting heavy penalty for the

    manufacturer.

    3. GST

    Good and services taxes (GST) will positively impact the cost by eliminating the taxes such as

    VAT at state level and other cascading tax structures. Under such a regime, with no taxes on

    inter-state movement, companies will have greater flexibility in designing their supply chain

    and also optimise logistics costs. Manufacturers can improve profitability and increase

    competitiveness by passing the benefits to the consumer.

  • 8/10/2019 Strategic Road Maps for Auto mobile industry

    23/34

    23 | P a g e

    INNOVATIONS (5 YEAR ROADMAP):

    1. Hybrid vehiclesIt couples an electric motor with an internal combustion engine. The system balancesbetween the electric motor and the IC engine depending on the driving conditions. The

    motor gets charged and can be used in tandem.

    2. Electric vehiclesPlug-in electric vehicles offer low cost running solutions. Government subsidies to promoteelectric vehicles are not adequate in the absence of electricity charging stations.

  • 8/10/2019 Strategic Road Maps for Auto mobile industry

    24/34

    24 | P a g e

    3. Lane departure warning systemsLane changing is one of the dangerous events while driving and this system alerts the driverin case a car is already in the lane that the driver is intending to switch to.

    4. AMT gearboxA revolutionary gearbox that combines the robustness and efficiency of a manual gearboxwith the driving comforts of an automatic transmission gearbox.

  • 8/10/2019 Strategic Road Maps for Auto mobile industry

    25/34

    25 | P a g e

    5. Sensor based wipers and headlightsSenses the rain and darkness conditions and automatically turns ON the wipers andheadlights respectively assisting the driver and ensuring safety.

    6. Turning HeadlampsOn turnings, this system traces the direction of the vehicle increasing the field of view/enhancing visibility of the driver and ensuring safety.

    7. Parking sensors and CamerasHelps the driver to get a clear LIVE picture of the rear and assists in parking the vehicle. Alsosome models like the Volkswagen Phaeton have systems that can park the vehiclesthemselves without any driver effort.

  • 8/10/2019 Strategic Road Maps for Auto mobile industry

    26/34

    26 | P a g e

    8. Regenerative braking systemsDuring braking and idling condition, this system stores the kinetic energy by means of akinetic energy recovery system (KERS). The stored energy can be utilised to power thevehicle at later stages.

    INNOVATIONS - AUTOMOBILE SECTOR (15 Year Road Map):

    S.No. Innovations Description

    1. Incremental innovation making the existing systems more efficient and more cost- effective2. Process innovation implementing a better production and delivery system

    3. Service innovation new service concept or service delivery system channel

    4. Business model innovation aligning resources and processes to create value proposition

    5. Sustainable innovation products and processes contributing to sustainable development

    6. Frugal innovation strategies to do more with less

    7. Radical innovation eliminating the conventional and providing new breakthroughs

    8. Experience innovation consumer engagement through holistic experiences9. Supply chain innovation technological innovations to the supply chain in order to reduce

    cycle and wait times and implementation of Lean methods

    ( reducing wastes)

  • 8/10/2019 Strategic Road Maps for Auto mobile industry

    27/34

    27 | P a g e

    THE FUTURE OF AUTOMOBILE INDUSTRY (15 YEAR ROADMAP)

    In the next 15 years, technological advancements would play a major role in driving the automobilesector. The industry would move from labour intensive to technology driven manufacturing. Below

    are the various key drivers which will impact the auto industry in the next 15 years.

    1. Big Data

    Vast new avenues for reducing costs and generating new revenue streams can be made

    possible by Big Data Technologies. The leverage is from the patterns that we generate from

    the collected data. Immense opportunities beckon us. Big data can aid to accelerate sales

    such that instead of waiting for customers, they can be identified on the basis of their online

    behaviour. Correlating factors can be identified that influence a persons buy ing behaviour.

    2. Mobility

    The next big platform for application developers is certainly Cars. Mobility plays a huge role

    in influencing the customer expectations and preferences. Mobile platforms are used as

    tools for communication, navigation/search and entertainment. Every smart phone can be

    used effectively to work as a sensor reporting the position of the car, the speed and

    numerous other details about the same. This can be leveraged upon to scan the

    environment and gather data about the surrounding devices or the networks.

    IT has brought about a sea change in the way automobile manufacturers manage their

    manufacturing operations and the associated costs. Cloud computing is touted as the next

    big thing. The launch of a new car can spark desires from the customers to customise/

  • 8/10/2019 Strategic Road Maps for Auto mobile industry

    28/34

    28 | P a g e

    configure their car and cloud computing can help in sales mobilization process. A public

    cloud can be used for the process. This translates to cash retaining that can be served for

    better.

    3. Cars that communicate with each other and the road

    This is perceived as one of the major break-through as far safety in automobiles is

    concerned. Through this system, cars can communicate exactly their position, speed and thedirection. Consider a case where a car ahead has just put on the brakes and you havent

    noticed the same continuing at the same speed as before. The system in that case will

    immediately gather wireless signals transmitted by the car ahead and ensure warning signals

    to the driver to apply brakes or actuate an automated braking system. Ford, Volvo and

    Scania are some of the renowned companies to have taken a proactive step. This system is

    named the V2V or vehicle to vehicle. Estimates have shown that accidents can be reduced

    by 79% by the implementation of this system. Apart from the V2V, V2I or the vehicle to

    infrastructure can help prevent collisions with buildings and other infrastructure. The

    implementation of both the systems in the automobile can reduce accident chances by 81%.

    The need of the hour is close coordination with the government and the research and

    development agencies.

  • 8/10/2019 Strategic Road Maps for Auto mobile industry

    29/34

    29 | P a g e

    4. Self-driving Cars

    Self-driving cars have always been showcased in sci-fi flicks. Nevertheless, it is the next big

    thing to make way into the automobile market. With Google having tested its version of

    self-driving car for more than 200,000 miles of public highways and roads. How do they do it

    is by recording images of the roads through cameras. Through integrated systems

    comprising of radars, cameras and lasers, these cars know about the best routes available,

    have a track of the road signs and can process information faster than a human being can

    do. The self-driving cars can help people utilise the idle time or time wasted during traffic

    jams. A new concept of platooning has emerged in this regard. It is the phenomenon inwhich cars stuck in a traffic jam drive close to each other thus forming and acting as a unit.

    This is possible because the cars are continuously interacting and communication with each

    other. Such a system enhances the safety of the automobiles by eliminating the cause of

    95% of accidents that is human error.

  • 8/10/2019 Strategic Road Maps for Auto mobile industry

    30/34

    30 | P a g e

    5. Augmented reality dashboards

    GPS and integrated infotainment systems have made their way into automobiles. However,

    an advanced feature is the augmented reality dashboard also known as the AR dashboard.

    What it simply aims to do is to display all the information on the windscreen in front of the

    driver. The system collects information from the obstacles ahead and transmits the same

    onto the screen. BMW has already utilised the system that displays basic information. The

    AR system additionally displays information about the obstacles or vehicles ahead and

    flashes images of the same with adequate warning lights and also indicators as to the lane in

    which the car ought to shift to avoid a collision. Thus it is an enhanced safety feature

    employed. Toyota is inventing with a somewhat similar system wherein the technicians wear

    an AR Glasses and look at the engine. All the defects are identified and transmitted onto the

    screen making it easier for the technician to carry out the repairs.

    6. Airbags that help stop cars

    Airbags are a commonly available safety feature available on automobiles with variations as

    side airbags, front airbags and configurations based on the number of airbags deployed.

    However, the future might see the deployment of airbags from underneath the cars, an

    innovation being pursued hard by Mercedes. The move is to make airbags a part of the

    active safety system rather than a passive safety system it has been by far. In the event of an

    inevitable collision as calculated by the safety system, the system deploys airbags from

    beneath the automobile. The airbags with special friction coating help in stopping the car at

    double the rate. Also the airbag is supposed to lift the car by up to 8 centimetres which is

    aimed to prevent the forward tilting of the car and have bumper-to-bumper contact to

    minimise wreckage.

  • 8/10/2019 Strategic Road Maps for Auto mobile industry

    31/34

    31 | P a g e

    7. Energy storing panels

    By 2040, it is predicted that half of the new cars being produced will be hybrid cars. One of

    the problems typically associated with hybrid vehicles is the high space and weight

    requirements of the batteries. Advancement with lithium-ion batteries has nevertheless

    kept the problems of weight and space up to a considerable extent. The energy-storing body

    panels seem to be the panacea. Currently being experimented aggressively in Europe by 9

    major automobile manufacturers, these panels are expected to store energy and charge

    faster than the conventional batteries. Polymer fibre and carbon resin with adequatestrength and easy moulding as panels are to be used for the same. Also these panels can

  • 8/10/2019 Strategic Road Maps for Auto mobile industry

    32/34

    32 | P a g e

    reduce the weight by up to 15%. So, with enormous storing and charging potential, these

    can also reduce the wastage in energy from elimination of the extra weight to be moved.

  • 8/10/2019 Strategic Road Maps for Auto mobile industry

    33/34

    33 | P a g e

    CONCLUSION

    This project provided us with an immense opportunity to learn as well as apply the various concepts

    of Operations Management. By understanding the principles and applications of Operations

    management in the Automobile industry, we were able to develop a Roadmap of the developments

    and innovations for the next 5 as well as 15 years. We attempted the project systematically so as to

    gauge the situation from scratch and thus build the most apt scenarios possible. The project starts

    with a comprehensive analysis of the automobile industry in India and draws useful parallels with

    emerging economic superpowers like China. This is particularly useful in the gap analysis and

    searching for solutions to plug the same. The development of scenario based planning takes wings

    with the definition of scope that is to emerge as the largest automobile manufacturer of the World.

    This is followed by SWOT analysis which gives a better image about the present state and what the

    future beholds for the industry. Next by analysing the perceptions, three main objectives are

    fulfilled- identifying the factors involved which could influence the future of the industry, identifying

    the impact and uncertainty of these individual factors on the Indian auto industry and finally

    benchmarking the perspectives of various stakeholders who are involved in the scenario building

    process. The factors are plotted on a graph with uncertainty on x-axis and impact on y-axis to create

    the uncertainty- impact matrix. Accordingly, 4 scenarios are created with key variables being

    technology, market concentration and geopolitical policies of the government. Finally the strategy isformulated and the project is replete with balanced score card, strategic road maps for the next 5

    and 15 years thus giving a comprehensive scenario based planning and developing roadmaps for the

    automobile industry in India. This project has been an immense learning curve in our understanding

    of Operations Management.

  • 8/10/2019 Strategic Road Maps for Auto mobile industry

    34/34

    REFERENCES / BIBLIOGRAPHY

    Crisil Research Databasehttps://www.crisilresearch.com/

    India Automotive Manufacturing report by MarketLinehttp://advantage.marketline.com/Product?pid=MLIP1398-0012

    Online Proquest Journalshttp://search.proquest.com/?accountid=49732

    Innovation in Manufacturing a report by KPMG Indiahttp://www.nicct.nl/file.php?nr=45&code=9ae44601e53e4529e2338148823b92ae

    Perspective of Strategy By Torsten Wulf, Philip Meiner, Stephan Stubner

    https://www.crisilresearch.com/https://www.crisilresearch.com/http://advantage.marketline.com/Product?pid=MLIP1398-0012http://advantage.marketline.com/Product?pid=MLIP1398-0012http://search.proquest.com/?accountid=49732http://search.proquest.com/?accountid=49732http://www.nicct.nl/file.php?nr=45&code=9ae44601e53e4529e2338148823b92aehttp://www.nicct.nl/file.php?nr=45&code=9ae44601e53e4529e2338148823b92aehttp://www.nicct.nl/file.php?nr=45&code=9ae44601e53e4529e2338148823b92aehttp://search.proquest.com/?accountid=49732http://advantage.marketline.com/Product?pid=MLIP1398-0012https://www.crisilresearch.com/