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Indian Automobile Industry

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INDIAN AUTO INDUSTRY TURNS GLOBALPresented by: M. Arsalan Sheikh Ahsan Bham Sobia Khan (#7989) (#8106) (#6316)

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

INDIAN TWO-WHEELER INDUSTRY: CURRENT STATUSThe 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.

INDIAN TWO-WHEELER INDUSTRY: CURRENT STATUSIndia 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.

INDIAN TWO-WHEELER INDUSTRY: SALES FIGURESHeroHonda

TVS

INDIAN TWO-WHEELER INDUSTRY: MARKET SEGMENTATION

The three main product segments in the twowheeler category arescooters, y motorcycles and y mopeds.y

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

INDIAN TWO-WHEELER INDUSTRY: PRODUCT CHARACTERISTICS

INDIAN TWO-WHEELER INDUSTRY: MARKET SHARE

DEMAND AND GROWTH DRIVERS

Personal Income Economic / Finance Demography and Inspiration Penetration Level Other Factors (Mass transport system, utility, convenience, etc.)

COMPETITIVE INDUSTRY STRUCTURE: OVERVIEW

Degree of rivalry Threat of substitutes Barriers to entry Suppliers power Buyers power

CORE COMPETENCY OF COMPETITORSProduct development Ability to understand customers needs and wants Exceeding expectations of customers Recognized and established brand name Effective advertising capability Manufacturing capability Fuel economy and least-cost production Service levels Fully trained workforce Superior personalized customer service

RBV: RESOURCE-BASED VIEW

Focuses on the internal forces of the firm Describes firms internal characteristics and performance Assumed that firm has distinctive, not identical strategic resources

Recourses are immobile and heterogeneous

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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