Risk Assessment and Mitigation Proposalsin Automotive Manufacturing

Pranab GhoshTata Motors Limited, Pune

Contents1. Historical background

1.1 Leading Automobile Manufacturers

2. Automotive Manufacturing – Marketing Scenario

2.1 Global

2.2 India

3. Forecast for Indian Automotive Industry

4. Value Chain in Automotive Manufacturing

4.1 Concept to Launch – key work components

5. Risks and Impacts

6. Risk Mitigation Plans

Historical background of Automobile Companies

The Ford Motor Company

– American multinational automaker in Michigan– Founded by Henry Ford on June 16, 1903 – Great invention of moving Assembly Line

The Ford Model T

– The world's first Automobile mass produced on moving assembly line– Reduction in chassis build time from 14 to 1.5 hours per car– The first car aggressively marketed to the average family

Distribution– Network of local dealers made the car ubiquitous in virtually every city in North America.

– American Multinational Holding Corporation – Founded in 1908, HQ in Detroit, Michigan– The world's largest Automaker– Buick, Chevrolet, Cadillac are the major divisions

– German Multinational Automotive Company – Founded in 1937 HQ in Wolfsburg, Germany– The 3rd largest Automaker in the world– Acquired the Lamborghini, Bentley, Rolls Royce and

Bugatti

Leading Automobile Companies in the World General Motors Company

The Volkswagen Group

1945 – TELCO was established to manufacture locomotives and other engineering products at

Jamshedpur.

1945 – TELCO was established to manufacture locomotives and other engineering products at

Jamshedpur.

Tata Motors Ltd

1977 – First commercial vehicle manufactured in Pune.

1977 – First commercial vehicle manufactured in Pune.

LPT 2515

LPT 709 WINGER

Ace ZipAce

Prima

Wide Range of Products

MPVSFC 407

Buses

Venture

Ultra

Iris

ARIAGRANDE

XENON Xenon Pickup

STORMESUMO

Wide Range of Products

Indica Vista Indigo

GDP of the United States was worth $15,684.80 billion in 2012.

Auto sector contributes $713.69 billion.

Automotive Scenario : Global

GDP of the Germany was worth $3399.59 billion in 2012.

Auto sector contributes $356.97 billion.

http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)http://www.vda.de/en/zahlen/jahreszahlen/allgemeines/index.html

90%

10%

Germany% share of Auto sector in GDP

95%

5%

USA% share of Auto sector in GDP

Auto Sector Share in GDP

Automotive Scenario : India

3%

97%

Auto Sector Share in GDP% share of auto sector in GDP

GDP of the India was $1710.90 billion for 2010-11

Auto sector contributes over $58.58 billion in 2010-11

7nd largest automobile manufacturer in the World.

http://www.siamindia.com/scripts/production-trend.aspx

1.78 1.842.36

2.98 3.15 3.23

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Mil

lion

Uni

ts

Year

Passenger Vehicles

Automobile Production Trends in India

0.55 0.42 0.570.76 0.93 0.83

0.000.501.001.502.002.50

3.003.50

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Mil

lion

Uni

ts

Year

Commercial Vehicles

8.03 8.4210.52

13.3515.43 15.72

0.00

5.00

10.00

15.00

20.00

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Mil

lion

Uni

ts

Year

Two Wheelers

Automobile Production Trends in India

0.50 0.49 0.620.80 0.88 0.84

0.000.501.001.50

2.002.503.003.50

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Mil

lion

Uni

ts

Year

Three Wheelers

10.85 11.17

14.06

17.89

20.38 20.63

0.00

5.00

10.00

15.00

20.00

25.00

30.00

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Mill

ion

Uni

ts

Year

Grand Total Vehicles

Forecast for Indian Automotive Industry

3%25%

28%

14%

1% ~20%

Expected

2013-14

1. Customer / Market

Knowledge

2. Concept Development

3. Product Design, Development &

Validation

4. Supply Chain Management

5. Facility Planning &

Manufacturing

6. Dealer/ Distribution chain

development

7. Marketing Communication

8. After Sales Support

Value Chain in Automotive Manufacturing