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Indian Automobile Industry

Date post: 19-Nov-2014
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INDIAN AUTO INDUSTRY TURNS GLOBAL Presented by: M. Arsalan Sheikh (#7989) Ahsan Bham(#8106) Sobia Khan(#6316)
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Page 1: Indian Automobile Industry

INDIAN AUTO INDUSTRY TURNS GLOBALPresented by:

M. Arsalan Sheikh (#7989)

Ahsan Bham (#8106)

Sobia Khan (#6316)

Page 2: Indian Automobile Industry

INDIAN TWO-WHEELER INDUSTRY: OVERVIEW

Oligopolistic market structure

Product and brand differentiation

Spending on advertising and brand building activities

Supply and distribution networks

Capital intensive market

Short design-to-market cycles

Achieving economies of scale

Complex distribution channel

Page 3: Indian Automobile Industry

INDIAN TWO-WHEELER INDUSTRY: CURRENT STATUS

The two-wheeler market in India is the biggest contributor to the automobile industry with a size of or Rs 220 Billion.

In terms of volume the industry sales around 5.4 million units a year.

India is the second largest producer and manufacturer of two-wheelers in the world.

It stands next only to Japan and China in terms of the number of two-wheelers produced and domestic sales respectively.

Page 4: Indian Automobile Industry

INDIAN TWO-WHEELER INDUSTRY: CURRENT STATUS

India is the two wheeler capital of Asia with 27 two wheelers per 1000 persons as compared to 8 two wheelers per 1000 persons in China.

According to the figures published by SIAM, the share of two-wheelers in automobile sector in terms of units sold was about 80 per cent.

Indian two-wheeler industry has got spectacular growth in the last few years.

Page 5: Indian Automobile Industry

INDIAN TWO-WHEELER INDUSTRY:SALES FIGURES

HeroHonda →

← TVS

Page 6: Indian Automobile Industry

INDIAN TWO-WHEELER INDUSTRY:MARKET SEGMENTATION

The three main product segments in the two-wheeler category are scooters, motorcycles and mopeds.

However, in response to evolving demographics and various other factors, other sub-segments have emerged which are scooterettes, gearless scooters, and 4-stroke scooters.

Page 7: Indian Automobile Industry

INDIAN TWO-WHEELER INDUSTRY:PRODUCT CHARACTERISTICS

Page 8: Indian Automobile Industry

INDIAN TWO-WHEELER INDUSTRY:MARKET SHARE

Page 9: Indian Automobile Industry

DEMAND AND GROWTH DRIVERS

Personal Income

Economic / Finance

Demography and Inspiration

Penetration Level

Other Factors (Mass transport system, utility,

convenience, etc.)

Page 10: Indian Automobile Industry

COMPETITIVE INDUSTRY STRUCTURE: OVERVIEW

Degree of rivalry

Threat of substitutes

Barriers to entry

Suppliers’ power

Buyers’ power

Page 11: Indian Automobile Industry

CORE COMPETENCY OF COMPETITORS

Product development• Ability to understand customer’s needs and wants • Exceeding expectations of customers• Recognized and established brand name • Effective advertising capabilityManufacturing capability• Fuel economy and least-cost productionService levels• Fully trained workforce• Superior personalized customer service

Page 12: Indian Automobile Industry

RBV: RESOURCE-BASED VIEW

Focuses on the internal forces of the firm

Describes firm’s internal characteristics and

performance

Assumed that firm has distinctive, not

identical strategic resources

Recourses are immobile and heterogeneous

Page 13: Indian Automobile Industry

INTERNAL FORCES: COMPETITIVE ADVANTAGE

Consumer preferences and taste

Low-cost manufacturing capability

High-quality manufacturing capability

Short design-to-market cycles

Supply and Distribution network


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