Download - Indian Automobile Industry
INDIAN AUTO INDUSTRY TURNS GLOBALPresented by:
M. Arsalan Sheikh (#7989)
Ahsan Bham (#8106)
Sobia Khan (#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 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.
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.
INDIAN TWO-WHEELER INDUSTRY:SALES FIGURES
HeroHonda →
← TVS
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.
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 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
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
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