CHAPTER I INTRODUCTION This part incorporate the profile of Indian Automobile industry and Theoretical background of the study PROFLE OF INDIAN AUTOMOBILE INDUSTRY India is a standout amongst the most huge developing auto markets on the planet today. Driving Automobile Ltd. Hindustan Motors (HM), which began as a producer of auto segments graduated to fabricate autos in 1949. Because of the License Raj which restricted outside contenders to enter the Indian auto market, Indian streets were ruled by Ambassador Car from Hindustan Motors and the Fiat from Premier Auto Ltd. for a considerable lot of the underlying years. The control constrained on auto producers identified with making limit and supply. The GOI control even stretched out to interest of costs for autos and merchant contracts. The three many years of the traveler auto industry in India up to the mid-1980s, appeared to be the 'dull ages ' for the client, as his decision amid this period was constrained to two models Ambassador and Padmini. It was just in 1981, after the passage of Maruti Udyog, that the auto creators were given a free hand to settle the charges of autos, subsequently, adequately wrecking all controls identifying with the estimating of the finished item. In the mid 80 's, an arrangement of liberal strategy varieties were pronounced denoting another spiraling point for the vehicles business. The very look of the business was changed perpetually in 1983 with the entrance of open division Maruti
The automobile industry is a capital intensive industry, the players in the industry need high capital expenditure in order to maintain their market position, but the expected returns in the future is quite high. The industry analysis can be carried out under the following heads:
According to me the main reason is when they came into existence they didn't have any competitors all they need to do is manufacturing and selling of the car. As I have stated earlier before 80s Indian automobile market was seller's market which means manufacturing companies have the command on the market not the customers. Having customer's command on the market is essential otherwise the development stops. The same thing happened, ambassador remains the same car as it was when it was first introduced. Hindustan Motors didn't promote the car because as a single Indian car it was already famous. Distribution was not that much difficult because car owners were few. The price of the ambassador was relatively high because those who needed the car didn't have another option. Also the government rules on importing the components were harsh and company was paying high prices for them. It seems obvious what the company did during those years. But when the scenario changed during 90s the market became open to all the government rules became soft and lots of other car manufacturers jumped into the Indian automobile market. This was the time when the ambassador should have changed its strategies. However they didn't make considerable changes on the other side new companies like Maruti Suzuki got the nerve of an Indian customer and introduced cheapest car in the market. Due to this drastic change once giant Hindustan Motors has become a company in loss with one of its most successful car an ambassador in
With the recovery of economy, the world’s automobile industry has been growing steadily over the past few years. According to Bloomberg, the US automobile sales climbed from its depth 10.4 million in 2009 to over 15.6 million in 2013. Furthermore, industry analysts predict that the sales will
Ans: Tata Motors was a leading player in the segment of commercial vehicle market. In 1954 Tata Motors in collaboration with Daimler Benz started manufacturing heavy commercial vehicles like excavators and earth moving equipment’s. When Japanese firms Toyota, Mitsubishi and Nissan entered the Indian market through joint ventures for manufacturing light motor vehicles, Tata Motors took this opportunity and developed light motor vehicles (TATA 407, TATA 608, and TATA 709) that went ahead of the Japanese firms due to low cost, adaptable to Indian road conditions and good after sales service.
Hero Honda CBZ - Indian bikers were subjected to 100 cc bikes, until Hero Honda launched the CBZ in 1999. At that time, there was nothing in India which was as powerful on 2-wheels as the CBZ. The Hero Honda CBZ was way ahead of other bikes at that time.
There are four major factors affecting the automotive industry: technology, market, customers and the most influential factor – environment. Environment is a source of materials, infrastructure necessary for manufacturing but everything is limited. The process of car or automotive manufacturing is very complex regarding the usage of numerous resources and different technologies ( P. Golinska & M. Kosacka).
As mentioned earlier Tata Motors being the largest automobile firm in India, it is admired to be the most reliable and futuristic manufacturers in today’s world. Tata vehicles and their new cars are preferred globally for their advanced technologies and handiness with over 130 models of passenger vehicles and trucks which tend to boost the Indian market internationally. Tata Motors have various core competencies that further make it different from others in the market place. As stated earlier, a core competency for Tata Motors is the acquisition of jaguar and Land Rover in order for an expansion internationally, directly giving them an ultimate competitive
Indian automotive industry has witnessed dramatic changes right from liberalisation, 100% FDI through automatic route, steadily rising in national income, steadily rising standard of living, Socio Cultural Revolution of joint families to nuclear families, working couples, change in mind-sets where car was once looked as rare luxury now in some parts of India it is just a necessity, increasing people awareness and they being more
Tata motors limited is the India’s largest automobile company, with the consolidated revenues of INR 2, 62,796 crores in the year of 2014-15. It is the leader in the commercial vehicles in each segment, and among the top in the passenger vehicles with the winning products in the compact, midsize cars and the utility vehicle segments. The Tata motors group has over 60,000 employees are been guided by the mission “to be passionate in anticipating and providing the best vehicle and experience that excite our customer globally. It has been established in the year of 1945, Tata motors presence cuts across the length and the breath of India. Over 8 million Tata vehicles ply on Indian roads, since the first rolled out
In 2002, the Indian government formulated an “Auto Policy” which aims at promoting integrated, phased, and self-sustained growth of the Indian automobile industry.
The emphasis of this research is to focus on history of automobile industry. Explining how transportation has come into being and how it eventually transformed to modern era car which we all enjoy and have built our lives around it. The intrigue to invent an automobile ha began as early as 17th century. Ever since the automobile invention, it has never slowed down, but the demand has significantly increased.
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in the setting. Thus, by this article, I’m going to analyse the challenge in the auto industry in
The first part of this essay is antecedent in that it provides a treatment on the Malaysian automobile market. The key topics covered here are the market history, market segments, market performance, market players, market structure and the behaviors of competing firms. The second part of this essay rationalizes the effects of the factors
Tata Motors has continued to increase its presence in the car industry throughout Asia and the world, but especially in their home country of India. From their goal of providing innovative affordable products for the masses, they have expanded from commercial vehicles into passenger cars, becoming India’s largest automobile company. As part of their global expansion strategy, Tata Motors acquired Jaguar Land Rover (JLR) in 2008, which allowed them to move into the higher end car market. The timing of which proved difficult, due to global recession. The latest innovative product that Tata has developed is the Nano, a low cost car designed to compete as a safer and more comfortable alternative to 2-wheeled vehicles in India. Tata was able to find a Blue Ocean with this product. The Nano’s release in 2009 was a resounding success, with over 206,000 orders in the first year. The interim plant was able to produce 50,000 vehicles the first year, with the new plant expected to have a capacity of 350,000 vehicles in 2010. Initial estimates put the potential market demand for vehicles similar to the Nano near one million units per year in India, with the potential to expand to global markets. Global automakers have plans to start production of ultra low cost (ULC) vehicle, so this will be a highly competitive market. The core problem for Tata Motors is that they need to decide if they continue as planned with their production of only 250,000 vehicles or if