8/6/2019 1 01 AL REGAL Robert Strain

1/20

1

8/6/2019 1 01 AL REGAL Robert Strain

2/20

2

India Automotive Industry Update

Robert C. Strain, Jr Director, GMIO Logistics

8/6/2019 1 01 AL REGAL Robert Strain

3/20

3

Misperceptions Of The Automotive Industry

Stagnant / nongrowth sector

Unprofitable

Receding in importance to consumers

20th Century technology / going the way of the

horse and buggy

8/6/2019 1 01 AL REGAL Robert Strain

4/20

Automotive Growth Opportunities

4

.5

Per Capita Passenger Car Penetration(Per Thousand Population) : 2005

8 17 10 12 1327

90

122 130147

180

440

480 480500

0

100

200

300

400

500

600

India

China

Philippines

Indonesia

SriLanka

Thailand

Brazil

Singapore

Mexico

Malaysia

SouthKorea

Japan

USA

UK

Germany

Carsperthousand

population

.5

A huge potentialLow vehicle penetration (8.5

per 1,000), large 2 wheelerpopulation

8/6/2019 1 01 AL REGAL Robert Strain

5/20

5

Emerging Markets Remain Unchanged

Brazil

South Africa

India

Thailand

Indonesia

China

Mexico

Russia

Turkey

Poland

8/6/2019 1 01 AL REGAL Robert Strain

6/20

India Automotive Industry Growth

6

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Cars 1023 1178 1199 1391 1565 1633 1907 2222 2567 2924 3286 3639

Trucks 727 811 772 783 825 817 943 1078 1233 1376 1564 1761

Industry 1750 1989 1971 2174 2390 2450 2850 3300 3800 4300 4850 5400

0

1000

2000

3000

4000

5000

6000

In'

000su

nits

8/6/2019 1 01 AL REGAL Robert Strain

7/20

India Automotive Industry Market

7

Suzuki

Tata

Hyundai

Mahindra

GM

8/6/2019 1 01 AL REGAL Robert Strain

8/20

India Automotive Market Indicators

8

Source: TNS Automotive 2006 Total Customer Satisfaction Study

Tota Industry Car Ownership Cycle-Time Trend (Average Months)

61 58 54 53 51

2002 2003 2004 2005 2006

Reducing Ownership

Cycle

Increasing Multiple Car

House-holds

Ownership cycle

Industry average (months)

Buyer Maturity Trend (%)

25% 26%31% 28% 27%

30% 32%

37% 40%35%

31%30%

25% 24% 34%

15% 13%8% 8%

3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2002 2003 2004 2005 2006

Replacement car Additional new car

First time car First time first hand car

8/6/2019 1 01 AL REGAL Robert Strain

9/20

India Automotive Customer Needs

9

1. Extremely Value Conscious acquisition price has to be low

2. High Fuel economy both in running and idling condition

3. Styling looks are very important. Outdated designs rejected outright

4. Rugged Suspension ruggedness over ride quality

5. High ground clearance to avoid engine sump protection plate

6. Strong Air conditioning quick cooling for tropical summers. engine overheating in traffic & idling.

7. Low cost of ownership in terms of cost of scheduled services, cost of repair and spares

8. Good launch feel on account of high traffic quick throttle response at low rpms is appreciated

8/6/2019 1 01 AL REGAL Robert Strain

10/20

GM India Key Product Portfolio

10

Chevrolet Spark

Chevrolet Aveo U-VA

Chevrolet Aveo

Chevrolet Optra Magnum

Chevrolet Tavera

Chevrolet Captiva

Chevrolet Cruze

8/6/2019 1 01 AL REGAL Robert Strain

11/2011

ManufacturingPlants

EngineeringProduct

SalesMarket

PurchasingSuppliers

Global SupplyChain

Right Part & Vehicle at the Right Place at the Right Time and at the Right Cost

Supply Chain Has a Key Integration Role

8/6/2019 1 01 AL REGAL Robert Strain

12/2012

AP Supply Chain Environment

8/6/2019 1 01 AL REGAL Robert Strain

13/2013

GM India New Production Facility Pune

GAPaint

Body

Start of Production

2008/Q3Small Passenger Car

Capacity 127k annually

300 Acre Facility

8/6/2019 1 01 AL REGAL Robert Strain

14/2014

India Supply Chain Complexity

8/6/2019 1 01 AL REGAL Robert Strain

15/2015

Qualityperformance

Flawless launches

Sustainable cost

advantage

Best-in-Classvalue

Bring Best-in-Classdesigns

Breakthroughtechnology

Go Fast

Can Do attitude

Obsessed withcontinuousimprovement

Saying No theright way

Supply Chain Supplier Traits

Sustainable Contributions and Value

+ +SuperiorCulture

SuperiorOrganizational

Capability

SuperiorCompetitiveAdvantage

8/6/2019 1 01 AL REGAL Robert Strain

16/2016

= Logistics Can Influence

= Logistics Cannot Influence

= Logistics Can Control

Plant Location

Catastrophic Events

Supplier Location

Dealer Location

Number of Parts & Suppliers

Vehicle Distr. Center

Production Schedule (Vol & Mix)

Kitting/Sequencing

Network Optimization

Cube Utilization

Miles

LogisticsCost

Rates

Government Regulations

No. of Competitors

Demand

Mode Selection

Carrier Financial Stability

Network Capacity

Fuel

Sourcing

Logistics Cost Drivers

8/6/2019 1 01 AL REGAL Robert Strain

17/20

17

Fuel

Source: U.S. Department of Energy, Energy Information Administration/Platts Bunker Wire

8/6/2019 1 01 AL REGAL Robert Strain

18/20

18

2008 Global Supply Chain Key Metrics

Lost Production due to Part Shortages

Parts Missed at Operation due to Part Shortages

Direct Material Inventory

Total Premium Freight Cost

Logistics Net Performance

8/6/2019 1 01 AL REGAL Robert Strain

19/20

8/6/2019 1 01 AL REGAL Robert Strain

20/20

20

Q&A