THE INTERNATIONAL INSTITUTE OF PLANNING &

MANAGEMENT
NEW DELHI

Subject : Entrepreneurship
 Submitted by:

Content Mayank Agarwal (46)

Sujay Kr. Tiwari (--)
Puneet Chaurasia (59)
Gopal Saxena (26)
Executive Summary…… …………………………
Shishir Kumar (71)
………………………… Anshul Jain (13) ………...………03
Background…………… …………………………
(Sec:-F-8)
………………………… ………….……....05
Indian Automobile History…………………
…………………………………………….……06
AUTOMOBILES INDUSTRY………………………………………………………...…….07
Indian Automobile Industry Growth…………………………………….……08
MISSION AND VISION FOR FUTURE…………..…………..……………………………….....…09
MARKET ANALYSIS
Overall Market………………………………………………………………………..09
Competitive…………………………………………………………………………..11
Micro Environment Influence…………………....…………………………………..15
PRODUCTS AND ITS DEVELOPMENT
Product Development ……………….…………………………………………….…16
Production Process………………………………………………………………,…..17
Resource Requirement…………………………………………………………….….17
MARKETING
MARKRTING STRATEGY…………………………………………………………18
Action…………………………………………………………………………………20
Distribution…………………………………………………………………………...25
Financial………………………………………………………………………………27
ORGANIZATION & MANAGEMENT
LOCATION…………………………………………………………………………...33
Key Personal………………………………………………………………………….33
HR Policy and Strategy………………………………………………………………34
Critical Risk…………………………………………………………………………………34

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BUSINESS PLAN FOR AUTOMOBILES INDUSTRY
Summary ……………………………………………………………………………………35
Bibliography………………………………...………………………………………………36

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BUSINESS PLAN FOR AUTOMOBILES INDUSTRY
 Executive Summary
As we know that The Indian automobile industry is the tenth largest in the world with an annual
production of approximately 2 million units. Indian auto industry, promises to become the major
automotive industry in the upcoming years and the industry experts are hopeful that it will touch
10 million units mark.
Indian automobile industry is involved in design, development, manufacture, marketing, and sale
of motor vehicles. There are a number of global automotive giants that are upbeat about the
expansion plans and collaboration with domestic companies to produce automobiles in India.
Now that we see serious cracks in the walls protecting the traditional automotive distribution
model, what will the future bring? Both the underlying drivers of change in automotive retailing
and the trends already under way help answer that question. In addition, it is helpful to compare
the automobile industry with other industries that have experienced distribution-channel
evolution and look at the lessons they learned.
Most consumer-durable industries have undergone substantial distribution-channel evolution
resulting from changes in economics, regulations or technologies. Each one has unique
circumstances, but we can see three relatively common, distinct stages in these channel
restructurings:
1. The Indian Automotive Industry after de-licensing in July, 1991 has grown at a spectacular
rate on an average of 17% for last few years. The industry has now attained d a turnover of Rs. 1,
65,000 crores (34 billion USD, assuming 1$ = Rs. 46) and an investment of Rs. 50,000 crores.
Over Rs. 35,000 crores of investment is in pipeline. The industry is providing dire c t and
indirect employment to 1.31 crore people. It is also ma king a contribution of 17% to t he kitty of
indirect taxes. The exp or t in automotive s e c tor has grown on an average CAGR of 30% per
year for t he last five years. The exp or t earnings from t his s e c tor are 4.08 bi l lion USD out of
which t he share of auto component s e c tor is 1.8 bi l lion USD during the year 2005-06.
2. Even with his rapid growth, t he Indian Automotive Industry’s contribution in g lob a l terms is
very low. This is evident from t he fact that even though passenger and commercial vehicles have
crossed t he product ion figure of 1.5 million in the year 2005-06, yet India’s share is about
2.37% of world production of 66.46 mi l lion passenger and commercial vehicles. Indian
automotive exp or t constitutes only about 0.3% of global automotive trade.
3. It is a well accepted fact that the automotive industry is a volume driven industry and certain
critical mass is a pre-requisite for attracting the much needed investment in Res e arch and
Development and Ne w Product Design and Development. R&D investment is ne e de d for
innovations which is t he life-line for achieving and retaining the competitiveness in the industry.
This competitiveness in turn depends on t he capacity and t he speed of t he industry to innovate
and upgrade. The most important indices of competitiveness are productivity of both lab our and
capital.
4. The concept of attaining competitiveness on t he basis of low cost and abundant lab our,
favorable exchange rates, low interest rates and concessional duty structure is b e coming
inadequate and therefore, not sustainable. In light of t he above, it is felt t hat a greater emphasis
is re quire d on t he development of the factors which can ensure competitiveness on a long-term
basis. The automotive s e c tor wit h its deep backward linkages (such as metals like steel,

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BUSINESS PLAN FOR AUTOMOBILES INDUSTRY
aluminum, copper etc., plastics, paint, g lass, electronics, capital quipment, trucking,
warehousing and logistics) and forward linkages including (dealership retails, credit and
financing, logistics, advertising, repair and maintenance, petroleum products, gas stations,
insurance, service parts) has been recognized and identified at different fora (Development
Council of Automobile and Allied Industries, Planning Commission, National Manufacturing
Competitiveness Council and Investment Commission etc.) as a sector with a very high potential
to increase the share of manufacturing in GDP, exports and employment. The sector is also seen
as a multiplier of industrial growth. It helps in attaining two critical goals of the Common
Minimum Programme, that of increasing manufacturing output and providing employment.
Although indirectly, it also facilitates the third objective of increasing agricultural productivity
through farm mechanization and the needs of agricultural product transportation.
5. India with its rapidly growing middle class (450 million in 2007 as per NCAER Report),
market oriented stable economy, availability of trained manpower at competitive cost, fairly
well-developed credit and financing facilities and local availability of almost all the raw
materials at a competitive cost has emerged as one of the favorite investment destinations for the
automotive manufacturers. These advantages need to be leveraged in a manner to attain the twin
objective of ensuring availability of best quality product at lowest cost to the consumers on the
one hand and developing and assimilating the latest technology in the industry on the other hand.
The Government recognizes its role as a catalyst and facilitator to encourage the companies to
move to higher level of competitive performance. The Government wants to create a policy
environment to help companies gain competitive advantage. The government policies target to
encourage growth, promote domestic competition and stimulate innovation.
6. It is also felt that a general improvement in availability of trained manpower and good
infrastructure is required for sustainable growth of the industry. Besides, specialized and industry
specific initiatives can lead to enhanced competitiveness. Keeping in view the above factors, the
Government has launched a unique initiative of National Automotive Testing and R&D
Infrastructure Project (NATRIP) to provide specialized facilities for Testing, Certification and
Homologation to the industry. A similar initiative is required for creating specialized institutions
in automotive sector for education, training and development, market analysis and formulation
and dissemination of courses.
7. The issues relating to fiscal incentives for the industry to promote R & D is under study of
Mashelkar Committee and the issues pertaining to R & D related duty structures is being
examined by the Hoda Committee. The concerns of the industry will be suitably addressed in the
above fora.
8. It has been noticed that the Auto Industry has grown in clusters of interconnected companies
which are linked by commonalities and complementarities. The major clusters are in and around
Manesar in North, Pune in West, Chennai in South, Jamshedpur-Kolkata in East and Indore in
Central India. The Department is envisaging in the Eleventh Five-Year Plan period to create a
National Level Specialized Education and Training Institute for Automotive Sector and to
enhance the transportation, communication and export infrastructure facilities through concerned
Ministries in and around these clusters. The Government will make attempts to streamline the
relevant Government Institutions and Educational and Research Institutions in and around the
clusters to meet the growing needs of the automotive sector.

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BUSINESS PLAN FOR AUTOMOBILES INDUSTRY
Background
Ministry of Industry formulated the Master Plan for Indian’s industrial Development for each
industrial sector, which included the automotive sector. Under the Master Plan, the action plans
were laid out for five years. To continuously proceed the plans and adjust the vision, strategies
and action plans according to the rapidly changing situation of the global industry, the Ministry
has assigned Indian Automotive Institute to undertake the Master Plan for Indian Automotive
Industry to be in accordance with the ninth National Social and Economic Development Plan,
The objectives are:
1. To set clear vision, mission and direction for the development of Indian automotive industry in
the next 10 years.
2. To identify problems and obstacles facing the development of Indian automotive industry.
3. To formulate policy framework that encourages international trade and other potential
businesses.
4. To design strategies, measures and action plans for the development of Indian automotive
industry which are in compliance with the National Economic and Social Development Plans.
5. To recommend roles and responsibilities of Ministry of Industry and other agencies
responsible for the automotive industry.

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BUSINESS PLAN FOR AUTOMOBILES INDUSTRY
INDIAN AUTOMOBILE HISTORY

The origin of automobile is not certain. In this section of automobile history, we will only discuss
about the phases of automobile in the development and modernisation process since the first car
was shipped to India. We will start automotive history from this point of time.

The automobile industry has changed the way people live and work. The earliest of modern cars
was manufactured in the year 1895. Shortly the first appearance of the car followed in India. As
the century truned, three cars were imported in Mumbai (India). Within decade there were total
of 1025 cars in the city.

The dawn of automobile actually goes back to 4000 years when the first wheel was used for
transportation in India. In the begining of 15th century Portuguese arrived in China and the
interaction of the two cultures led to a variety of new technologies, including the creation of a
wheel that turned under its own power. By 1600s small steam-powered engine models was
developed, but it took another century before a full-sized engine-powered vehicle was created.

The actual horseless carriage was introduced in the year 1893 by brothers Charles and Frank
Duryea. It was the first internal-combustion motor car of America, and it was followed by Henry
Ford's first experimental car that same year.
One of the highest-rated early luxury automobiles was the 1909 Rolls-Royce Silver Ghost that
featured a quiet 6-cylinder engine, leather interior, folding windscreens and hood, and an
aluminum body. It was usually driven by chauffeurs and emphasis was on comfort and style
rather than speed.
.
During the 1920s, the cars exhibited design refinements such as balloon tires, pressed-steel
wheels, and four-wheel brakes. Graham Paige DC Phaeton of 1929 featured an 8-cylinder engine
and an aluminum body.

The 1937 Pontiac De Luxe sedan had roomy interior and rear-hinged back door that suited more
to the needs of families. In 1930s, vehicles were less boxy and more streamlined than their
predecessors. The 1940s saw features like automatic transmission, sealed-beam headlights, and
tubeless tires.

The year 1957 brought powerful high-performance cars such as Mercedes-Benz 300SL. It was
built on compact and stylized lines, and was capable of 230 kmh (144 mph).

This was the Indian automobile history, and today modern cars are generally light,
aerodynamically shaped, and compact.

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BUSINESS PLAN FOR AUTOMOBILES INDUSTRY
AUTOMOBILE INDUSTRY

Industry Overview
Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the Automobile
Industry of India has come a long way. During its early stages the auto industry was overlooked
by the then Government and the policies were also not favorable. The liberalization policy and
various tax reliefs by the Govt. of India in recent years has made remarkable impacts on Indian
Automobile Industry. Indian auto industry, which is currently growing at the pace of around 18
% per annum, has become a hot destination for global auto players like Volvo, General Motors
and Ford.
A well developed transportation system plays a key role in the development of an economy, and
India is no exception to it. With the growth of transportation system the Automotive Industry of
India is also growing at rapid speed, occupying an important place on the 'canvas' of Indian
economy.
Today Indian automotive industry is fully capable of producing various kinds of vehicles and can
be divided into 03 broad categories : Cars, two-wheelers and heavy vehicles.
Snippets
• The first automobile in India rolled in 1897 in Bombay.
• India is being recognized as potential emerging auto market.
• Foreign players are adding to their investments in Indian auto industry.
• Within two-wheelers, motorcycles contribute 80% of the segment size.
• Unlike the USA, the Indian passenger vehicle market
Is dominated by cars (79%).
• Tata Motors dominates over 60% of the Indian commercial vehicle market.
• 2/3rd of auto component production is consumed directly by OEMs.
• India is the largest three-wheeler market in the world.
• India is the largest two-wheeler manufacturer in the world.
• India is the second largest tractor manufacturer in the world.
• India is the fifth largest commercial vehicle manufacturer in the world.
• The number one global motorcycle manufacturer is in India.
• India is the fourth largest car market in Asia - recently crossed the 1 million mark.

INDIAN AUTOMOBILE INDUSTRY GROWTH

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BUSINESS PLAN FOR AUTOMOBILES INDUSTRY
Market Share
At present major Indian, European, Korean, Japanese automobile companies are holding
significant market shares. In commercial vehicle, Tata Motors dominates over 60% of the Indian
commercial vehicle market. Tata Motors is the largest medium and heavy commercial vehicle
manufacturer.
Among the two-wheeler segment, including scooters and mopeds- motorcycles have- major
share in the market. Hero Honda contributes 50% motorcycles to the market in which Honda
holds 46% share in scooter and TVS makes 82% of the mopeds in the country. In the three
wheeler industry in India, Piaggio holds 40% of the market share. Bajaj is the leader by making
68% of the three-wheelers.
Car manufacturers in India dominate the passenger vehicle market by 79%. Maruti Suzuki is the
largest car producer in India and has 52% share in passenger cars and is a complete monopoly in
multipurpose vehicles. In utility vehicles Mahindra holds 42% share. Hyundai and Tata Motors is
the second and third car producer in India.
The passenger car and motorcycle segment in Indian auto Industry is growing by 8-9 per cent.
Current Scenario
• The Indian automobile industry crossed a landmark with total vehicle production of 10
million units.
• Car sales was 8,82,094 units against 8,20,179 units in 2004-05.
• The two-wheeler market grew by 13.6 per cent with 70,56,317 units against 62,09,765
units in 2004-05.
• Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units against 3,18,430
units in 2004-05.

Overview Snippets
• India, sourcing base for global auto majors.
• Passenger car and motorcycle segment is set to grow by 8-9%.
• The two-wheeler segment will clock 11.5% rise by 2007.
• Commercial vehicle to grow by 5.2 per cent.
• Estimated component market size is US$ 6.7 bn.

MISSION AND VISION FOR THE FUTURE

Now that we see serious cracks in the walls protecting the traditional automotive distribution
model, what will the future bring? Both the underlying drivers of change in automotive retailing
and the trends already under way help answer that question. In addition, it is helpful to compare

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BUSINESS PLAN FOR AUTOMOBILES INDUSTRY
the automobile industry with other industries that have experienced distribution-channel
evolution and look at the lessons they learned.
Most consumer-durable industries have undergone substantial distribution-channel evolution
resulting from changes in economics, regulations or technologies. Each one has unique
circumstances, but we can see three relatively common, distinct stages in these channel
restructurings:
Stage One: This is marked by major improvements in value delivered, mostly reductions in cost.
Usually the cost reductions stem from consolidation and rationalization in the channel as better
concepts or bigger players drive out marginal or small players. The bigger players use their cost
advantage to reduce prices and often to improve service, variety and convenience.
Stage Two: Here channel evolution is focused on meeting the needs of specific customer
segments. Channel functions are unbundled and restructured into more efficient or more
appealing formats for defined groups of customers. Customer value is further enhanced through
lower prices, better service or greater variety.
Stage Three: This brings dramatic new paradigms not just for distribution but for the entire
value chain. Full-service leasing ("power by the hour") in the heavy-duty-truck market is an
example of this type of game-changing concept.

MARKET ANALYSIS
Overall Market
India, in auto sector, is turning to be a sourcing base for the global auto majors. The passenger
car and the motorcycle segment is set to grow by 8-9 per cent in coming couple of years, says the
ICRA report. The industry is likely to maintain the growth momentum picked up in 2002-03.
The ICRA's analysis points on the auto sector that the passenger car market in the country was
inching towards cars with higher displacements. The sports-utility-vehicle (SUV) that was
getting crowded everyday, would witness intense competition as many SUVs had been
competitively priced, the report said.
Honda, Suzuki, General Motors and Hyundai, the global automakers had already launched their
premium SUVs in the market to broaden their portfolio and create product excitement in the
segment estimated at about 10,000 units annually.
In the two-wheeler segment, according to the report, the motorcycles would clock 11.5 per cent
rise during 2004-2007 over its siblings-scooters and mopeds. Scooters sales would decelerate
and mopeds would also see the same. Overseas market would present huge opportunities for the
two-wheeler makers.
The commercial vehicles are likely to grow at a CAGR of 5.2 per cent. Heavy commercial
vehicles market would rise at 5.5 per cent and sales of light buses and trucks would achieve 4.7
per cent growth. For the tractors, the report predicts a growth at 4.6 per cent.

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Indian Auto Market Growth for the year 2005-06
• The domestic automobile industry sales grew 12.8 per cent at 89,10,224 units as against
78,97,629 units in 2004-05.
• The automotive industry crossed a landmark with total vehicle production of 10 million
units.
• According to the Society of Indian Automobile Manufacturers (SIAM), car sales was 8,
82,094 units against 8,20,179 units in 2004-05.
• The growth of domestic passenger car market was 7.5 per cent
• Car exports stood at 1,70,193 units against 1,60,670 units in 2004-05.
• The two-wheeler segment, the market grew by 13.6 per cent with 70,56,317 units against
62,09,765 units in 2004-05.
• Motorcycles had the upward march, 17.1 per cent in domestic market touching 58,15,417
units against 49,64,753 units in 2004-05.
• Scooter segment grew by 1.5 per cent, fall at 9,08,159 units against 9,22,428 units in
2004-05.
• Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units against 3,18,430
units in 2004-05.
• Medium and heavy commercial vehicles managed a growth of 4.5 per cent against 23 per
cent growth in the year ended March 31, 2005.
• Light commercial vehicles sales growth was 19.4 per cent at 1,43,237 units against
1,19,924 units in 2004-05.
• Three-wheelers sales rose by 17 per cent at 3,60,187 units against 3,07,862 units in 2004-
05.

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Competitive
Among the two-wheeler segment, motorcycles have major share in the market. Hero Honda
contributes 50% motorcycles to the market. In it Honda holds 46% share in scooter and TVS
makes 82% of the mopeds in the country.
40% of the three-wheelers are used as goods transport purpose. Piaggio holds 40% of the market
share. Among the passenger transport, Bajaj is the leader by making 68% of the three-wheelers.
Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52% share in passenger
cars and is a complete monopoly in multi purpose vehicles. In utility vehicles Mahindra holds
42% share.
In commercial vehicle, Tata Motors dominates the market with more than 60% share. Tata
Motors is also the world's fifth largest medium & heavy commercial vehicle manufacturer.

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Indian automobile companies

Company Description Product

Ashok Leyland is a commercial vehicle manufacturing company based in

Chennai, India. In 1948, Ashok Motors was set up in what was then
Madras, for the assembly of Austin Cars. The Company's name changed 18 seater to 82 seater double-decker buses, 7.5 tonne
Ashok soon with equity participation by British Leyland and Ashok Leyland to 49 tonne in haulage vehicles, special application
Leyland commenced manufacture of commercial vehicles in 1955. Ashok Leyland vehicles, and diesel engines for industrial, marine and
has six manufacturing plants: a plant at Ennore near Chennai, two plants genset applications.
at Hosur (called Hosur I and Hosur II, along with a press shop), and the
assembly plants at Alwar and Bhandara.

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 Gas-cylinder carrier, copied from 3-wheel Vidal &
Sohn Tempo-Werke (German) Hanseat; Matador, a
version of Hanomag van and light-truck (1.5 tonne
Force Motors, formerly Bajaj Tempo, is a Pune-based manufacturer of a
Force Motors payload); Tempo-traveller, Indian version of
number of commercial vehicles
Daimler-Benz T-1 transporter; Man-Force Trucks,
licensed version of MAN AG trucks; and UV's
copied from Daimler-Benz.

Hindustan Motors is one of the oldest Indian car manufacturers in India. Trekker (discontinued), Landmaster (discontinued),
Hindustan It is perhaps best known for the Ambassador which has remained virtually Contessa (discontinued)—5th generation Vauxhall
Motors unchanged for about 30 years. It is still very popular as a taxi and is Victor, and the Ambassador—a version of the 1950s
widely used by Indian politicians. Morris Oxford.

The automotive section of Mahindra started off when a first batch of

Mahindra & Armada (discontinued), Voyager (discontinued),
seventy five Utility Vehicles (UVs) was imported in CKD condition from
Mahindra Bolero. Commander, CL, MaXX, Scorpio, and
Willys in 1947. It presently manufactures Jeeps along with agricultural
Limited Mahindra and Mahindra Classic.
equipment and light trucks.

Maruti Suzki (formerly Maruti Udyog) was formed as a partnership

between the Government of India and Suzuki of Japan. It brought India
its first "affordable" car, the Maruti 800. It is the biggest car manufacturer
in India and especially dominant in the small car sector. Then it brought
out the Maruti 1000, made by Maruti Udyog was the first ever
800, Omni, Alto, Gypsy, Swift, SX4, Wagon-R,
Maruti Suzuki contemporary sedan-type car launched in India. The car (which Suzuki
Versa, Zen Estilo, Grand Vitara, and Swift Dzire.
sold in other countries as the Cultus/Swift/Geo Metro with a 1.3 L or 1.6
L engine) was introduced in October, 1990. Sold at Rs. 3.81 lakh, it was
back then the costliest car released in the Indian market. Then the
company replaced it with Esteem and from that days on a line of Suzuki
cars rolled out in the Indian market.

Walchand Hirachand started Premier Automobiles Ltd. (PAL) in 1942.

Premier
They assembled DeSoto and Plymouth cars in 1946 in association with Padmini (discontinued), 118 NE (discontinued), and
Automobiles
Chrysler from the United States. They also manufactured the Premier Premier Sigma.
Limited
Padmini which was a version of the Fiat 1100.

REVA Electric Car Co. is the producer of the Reva (G-Wiz), an electric
car intended for use as a City car. More REVAs have been produced than
REVA REVA (G-Wiz).
any other currently selling electric car and sales are increasing. It is
currently the world's leading electric car manufacturing company.

Tata Motors, formerly known as TELCO, is the largest automobile

manufacturer in India and commands more than 70% of the commercial
vehicle market in India and has also increased its share of passenger
Indica, Indigo, Indigo Marina, Safari, Sumo, TL, and
Tata Motors vehicle market. It was responsible for developing India's first indigenous
Tata Nano.
vehicle, the Indica. It has proved to be a success in the market after initial
quality problems. The company also exports the car to many countries.
Tata owns major stake in Jaguar and Range Rover.

Multi-national companies in India

Company Description Product

Audi In January 2008, Audi started production with the Audi A4 and A4, A6, A8, R8, Q7, and TT.

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 A6 at its factory in Aurangabad in the state of Maharashtra.

BMW is a manufacturer of sport sedans. BMW enjoys good

brand recognition in India. It has set up a plant in Chennai, Tamil
BMW Nadu, to manufacture cars locally exclusively for the local 3 Series, 5 Series, 6 Series, 7 Series, X3,X5and X6.
market with no plans for export. It set up the plant to circumvent
high import duties.

It roped in Sachin Tendulkar as one of its brand ambassadors.

The Fiat Uno was one of the first products to be introduced. The
Even Michael Schumacher appeared in an ad for the Palio. It has
Fiat Palio/Fiat Siena was later introduced and was initially a
entered now into an alliance with Tata Motors to jointly
success with its style and ride comfort coupled with solid build
manufacture cars at its plant in Ranjangaon, near Pune. The
but has slowly lost its sheen due to low fuel efficiency. Other
facility will enable the two companies to make about 2,00,000
Fiat models were introduced such as the Palio Weekend, Palio Stile
cars per annum, and also house an engine manufacturing unit
and Adventure. Fiat tried re-branding of the Fiat Siena to Fiat
with a capacity of 2,50,000 units per annum. The alliance will
Petra without much success. Fiat Bravo—sold in collaboration
also see Tata Motors use Fiat's diesel technology—the 1.3 litre
with Tata Motors, Fiat 500—sold in collaboration with Tata
multijet diesel engine—for its own vehicles. The two companies
Motors, and Fiat Linea—sold in collaboration with Tata Motors.
also have a distribution and service partnership.

Ford entered India in collaboration with Mahindra & Mahindra

Ford Motor
in 1995 with a plant in Tamil Nadu. The first model was the Escort (discontinued), Ikon, Endeavour, Fusion, and Fiesta.
Company
Escort.

Chevrolet has been a recognized brand in India for several

decades. The model lineup consists of vehicles from cheaper
sister brands like Daewoo. General Motors initially entered India
Tavera—rebadged Isuzu Panther,[[First Generation Subaru
with the Opel brand, but the Opel brand was dropped in March
Forester, Aveo—second Generation Daewoo Kalos sedan, Aveo
2006 because sales were at an all time low due to high prices and
General UV-A—first Generation Daewoo Kalos hatchback, Optra—
General Motors wanted to focus more on their Chevrolet brand.
Motors rebadged Daewoo Lacetti, SRV—rebadged Daewoo Lacetti,
Since the Chevrolet brand was introduced in India, there have
Spark—formerly Daewoo Matiz in India, and Captiva—recent
been no new Opel products. GM's Indian operations were
launch in India.
originally a JV between Hindustan Motors and GM, with most of
GM's vehicles assembled at Hindustan's plant in Halol, Gujarat.
Since then, GM India is now wholly owned by GM.

Honda Siel Cars entered India in 1995. It sells 4 cars in India—

the City, Civic, Accord, and CR-V. The manufacturing plant of
Honda Honda Siel is located in Greater Noida. The model of Accord Accord, City, Civic, and CR-V.
sold in India is the 2003 model. The most inexpensive car from
Honda—The City. The most expensive—The Honda Accord V6.

Santro—second generation Hyundai Atos, Accent—second

generation Hyundai Accent sedan, Sonata—sold as the Sonata
When Hyundai entered India, the brand was virtually unknown
Embera, Verna—third generation Hyundai Accent sedan, Getz—
Hyundai in the Indian market. But now Hyundai has good market because
sold as the Getz Prime, Elantra—3rd generation Hyundai Elantra
of its models like SANTRO, Accent etc..
sedan, Terracan (discontinued), Tucson, i10—brand new small
car, global launch in India in 2007, and i20.

Renault-
- Logan (in partnership with Mahindra & Mahindra Limited).
Nissan

Mercedes- Mercedes-Benz has had to cater to the ever gowning luxury C-Class, E-Class, S-Class, ML-Class, SL-Class, CL-Class, SLK-
Benz segment in India, especially after the arrival of the other luxury Class, CLK-Class, GL-Class, and CLS-Class.
German manufacturers. Now, Mercedes-Benz cars are launched
in India soon after the worldwide launch and homologation as

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 opposed to earlier, when Mercedes-Benz had monopolized the
niche Indian market. In 2007 they launched the SLK-Class and
CLS-Class.

Lancer - Sixth Generation Mitsubishi Lancer, Cedia—seventh

Mitsubishi generation Mitsubishi Lancer, Pajero—second generation
-
Motors Mitsubishi Pajero, Montero—third generation Mitsubishi Pajero,
and Outlander.

Škoda Auto is an important car manufacturer of India. It recently

Škoda launched the Laura, the Octavia still continues to exist. Škoda Fabia, Octavia/Laura, and Superb.
also offers the Superb in India but it's not too popular.

Toyota Kirloskar sells 4 car models in India. It stopped

Toyota Qualis, Camry—7th generation Toyota Camry (the latest
producing the Toyota Qualis to make way for the Toyota Innova,
generation Camry), Corolla—9th generation Toyota Corolla,
Toyota which was launched in India in 2005. The most expensive car
Innova, and Land Cruiser Prado VX—latest generation Toyota
from Toyota is the Land Cruiser Prado. Toyota Kirloskar Motors
Land Cruiser (PRADO).
Ltd. is a joint venture between Toyota and the Kirloskar Group.

Micro Environment Influence

A number of carmakers and utility vehiclemakers have vehemently expressed their
dissatisfaction for being saddled with 20 per cent excise duty imposed by the govt. It is to be
mentioned that all the compact cars are cheaper to to the consumer as they are less than 4 metres
in length and sport engines below 1200cc in petrol and 1500cc in diesel, as they do not come
under the specific duty imposed by the government. Smaller cars like Santro, A-star, i10, Wagon
R, Alto, Indica, Palio, Spark attract an smaller excise duty of Rs. 24,000-Rs 32,000 per unit,
while top-end cars attract up to Rs. 1-2 lakh.
The Society of Indian Automobile Manufacturers (Siam) had earlier objected to this, saying a car
category based on length or engine displacement should not be encouraged as the other segments
would suffer. SIAM had also stated the fact that had it not been for the stimulus packages,
passenger vehicle sales would have been down 3 per cent or no growth, while commercial
vehicles would have witnessed a massive decline of 30-40 per cent.
“While incentives for small cars are welcome, the government is discouraging big cars. Also,
utility vehicles that are primarily used in rural areas are being hit badly,” said Siam director
Sugato Sen. The automotive lobby has asked the government to introduce concessional tax
structure for vehicles used in rural areas to revive demand. It has also demanded that post-
stimulus excise duty, after the 4 per cent cut, be made permanent and all investments in R&D by
automakers be exempt from tax.
However, with the Congress led-United Progressive Alliance (UPA) winning a fresh mandate,
the automobile industry is hoping the system will find some much-needed stability. It also hopes
the new government will treat auto as a priority sector and attend to some pressing concerns,
mainly differential excise duty, lack of retail finance and lack of focus on infrastructure. Another
serious concern plaguing the auto companies is the high interest rates.However, the industry
hopes that retail finance will pick up with more participation from private banks.

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According to The Economic Times, the senior representatives of the leading auto companies in
India, most of them are of the view that removal of specific duty on big cars, tax sops on vehicles
for rural markets and revival of the duty-free credit scheme for boots exports are imperative at
this juncture. Furthermore, luxury car makers are of the view that passenger safety, emission
norms and fuel efficiency standards should be the criteria for giving lower duties, instead of the
car’s length, adding that the government should provide more incentives for technological
upgradation and introduction of better products in the country. Pawan Goenka, president,
automotive sector, Mahindra & Mahindra, said first and foremost there should be no reversal of
the financial stimulus packages announced over the last six months. The government must also
review and amend large differences in excise duty on different sizes of vehicles.
PRODUCTS AND ITS DEVELOPMENT
PRODUCTS:
Production Process
➢ The design and development of vehicles requires a large team of specialists from a wide
variety of disciplines working over a period of years to achieve the goal of a high-
performance, competitive product. Engineers are involved in all phases of this highly
interdisciplinary process - from the initial concept through manufacture and even into
marketing. As a result, engineers from all disciplines can find a role in the automotive
industry process.
➢ Styling and Packaging Phase
➢ The first stage of the automotive development process is two-fold: styling (exterior as
well as interior design) and packaging.
➢ Styling begins with sketches. Those that are selected for further development are then
rendered in more detail - first digitally and finally as clay models. Exterior and interior
designers work closely together, consulting with aerodynamics and ergonomic engineers
as the design progresses.
➢ Packaging is the process by which all the component parts are fit together within the
close dimensions of the vehicle. Today's design concepts place a premium on the use of
space, and components must fit together within these design constraints but in such a way
that the strength and safety of the system is never compromised. Once the overall design
is set, there is little room for change.
➢ With the detailed drawings and models resulting from the styling and packaging phases
of development in hand, the development or feasibility engineer begins the challenging
work of finding the right balance between desired product design and real-world
achievability. Thanks to the wide variety of computer simulation and 3-D modeling
technologies available, testing that once would have been difficult or even impossible this
early in the process is now common practice.
➢ Issues such as environmental efficiency, compact design, safety, and style all have to be
accommodated in the design segment. This means that, to a large extent, the success of an
automotive company is often in its design and development process. With so much riding

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 on this phase, it's not surprising to find that in addition to the designers, cross-disciplinary
teams include scientists, graphic artists, and, of course, engineers.

Resource Requirement
➢ The automotive industry changed people's ideas of boundaries, limits, and distance. With
the arrival of the automobile, people suddenly had the freedom to go farther faster than
ever before. It changed where people lived and worked. It changed how and where they
shopped and traveled. It changed how they thought about distance and time, making a
significant impact on how people live their lives and how they behave on a daily basis.
➢ Engineering played a great part in making the automotive industry the important force
that it is today. Engineering breakthroughs and innovations in the field are found
throughout the industry's history, beginning with components such as shock absorbers,
disc brakes, tilt steering, and windshield wipers, and followed by systems such as the
self-starting internal combustion engine, electronic fuel injection systems, anti-lock
brakes, and air bags. Many of these innovations not only made vehicles more user-
friendly, but also made them a good deal safer.
➢ And, engineering innovation was more than just the improvement and development of
automobile parts. The production process itself was an innovation and one whose impact
can hardly be overstated. The face of the industry (and manufacturing as a whole) was
changed forever when the Ford Motor Company introduced the first moving assembly
line. The new process meant that more cars could be produced and that prices would
drop, changing the car from a luxury item into an affordable means of transportation for
the masses.
➢ As motor vehicles became more accessible, they played an increasingly prominent role in
everyday life and it quickly became clear that a more robust infrastructure was needed to
support the new mode of transportation. Here too, engineers played their part. The Office
of Public Roads started an engineer trainee program in 1904, and the Federal Aid Road
Act of 1916 required each state to have a highway agency staffed with engineering
professionals in order to carry out its subsidized road construction projects.
➢ The industry and its place in the public consciousness grew exponentially as roads grew
more crowded and a wider variety of motorized vehicles were offered. Commercial
vehicles like buses and trucks became prominent, changing the face of public
transportation and bringing goods and services to new and wider areas. Consumers were
soon choosing from sedans or station wagons, hatchbacks or convertibles, motorcycles or
recreational vehicles. And, with all these vehicles on the roads, the environment and
public safety became issues of great importance and necessary considerations for
engineers.

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 ➢ And there are still plenty of innovations to come. Even now, the automotive industry is in
the midst of an engineering revolution with government regulations, environmental
concerns, and the need to lower costs. New vehicle designs, the use of new and different
materials, and improved engine design are needed to increase fuel efficiency, improve
safety, continue cutting down on harmful emissions, and manage production efficiency
and costs. Automotive engineering thus remains important for the industry and offers a
challenging career with the potential to make a significant impact on society.

MARKETING
MARKRTING STRATEGY

Creating predictable environment for business operations in Indian automotive industry

Business Intelligence Unit
Monitor micro and macro economy in the country and abroad.
Develop an updated market information system (rules and regulations in the country
and international rules and regulations)
1.1.3 Study and analyze the automotive industry with policy recommendations
1.2 Automotive human resources development
1.2.1 Study the evaluation method and set criteria to evaluate the human resources’
capability
1.2.2 Design incentives for training Master Plan for Indian Automotive Industry Project
Executive Summary
1.3 Market expansion by opening market through Free Trade Area
1.3.1 Domestic market
1.3.1.1 Stimulate local demand by means of taxes and interest rates
1.3.1.2 Search for cost reduction methods in production and distribution processes
1.3.1.3 Conduct a study on market (demand) gap
1.3.2 Export market
1.3.2.1 Push for negotiations to integrate ASEAN into one market
1.3.2.2 Bilateral agreements with targeted trading countries i.e. Australia, China and
India (Free Trade Area)

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1.3.2.3 Negotiate on Non-Tariff Measures
1.4 Good Governance Policy
1.4.1 Restructure what procedures from raw materials, intermediate parts to finished
goods.
1.4.2 Set clear long-term government policy and inform this to the private sector for self
adjustment before its effectiveness
1.5 Infrastructure Development
2. Enhancing competitiveness of Indian auto parts industry
2.1 Trade promotion and networking
2.1.1 Promote Indian brand products
2.1.2 Promote international trade cooperation projects to enhance capability of Indian
parts exporters
2.1.3 Establish a system for auto parts transactions
2.1.4 Cluster-based development
2.1.5 Supply chain development and e-business
2.2 Standardization development
2.2.1 Accelerate the formulation of product standards and safety standards Indian
Automotive Industry Project Executive Summary
2.2.2 Establish product testing laboratories and certification system
2.2.3 Assist the auto parts manufacturers to get certified under quality systems
2.3 Upgrading of manufacturing technology and management
2.4 Development of product technology
2.4.1 Set up an automotive research and development center to strengthen the R & D
capability of the auto parts makers
2.4.2 Develop R & D capabilities of auto parts makers to be internationally recognized.
2.5 Automotive human resources development

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Action Plan
6.1 Industry Situation Analysis Project
6.1.1 Study and analyze the automotive industry in order to recommend and design
measures for sustainable industry development
6.1.2 Monitor micro and macro economy in the country and abroad
6.3.1 Provide systematic training to the industry from workers to management level
6.3.2 Skill training
6.3.3 Provide training to engineers in the field of advanced engineering and specialized
technology
6.4 Automotive Engineer Developmen
6.4.1 Outline curriculum to develop engineers to have capability to enter the industry
6.4.2 Joint cooperation to award scholarships to university students in pilot projects
6.4.3 Appraisal of university students by India Automotive Institute and the industrial
sector
6.5 Competency certification system development project
6.5.1 Outline curriculum in management and technology
6.5.2 Provide training for teachers on teaching techniques
6.5.3 Establish the vocational certification system
6.6 Market Responsiveness Project
6.6.1 Stimulate local demand by means of taxes and interest rates
6.6.2 Search for cost reduction methods in production and distribution processes
6.6.3 Conduct a study on market (demand) gap
6.6.4 Conduct a feasibility study on linkages of second handed cars and new cars
6.6.5 Conduct market research to search for supportive measures
6.7 Automotive tax structure research project
6.7.1 International comparison study on tax structure for the automotive industry
6.7.2 Provide recommendations on the automotive industry’s tax restructuring
6.7.3 Study benefit of bilateral agreements under Free Trade Zone (FTZ)

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6.8 Plan the expansion of infrastructure necessary for the industrial development i.e.
deep sea port
6.9 Cluster-based Development Project
6.9.1 Study on linkages in the automotive cluster
6.9.2 Develop and strengthen cluster linkages
6.9.3 Develop business networking
6.10 Automotive standards projects
6.10.1 Study, plan and determine automotive standards
6.10.2 Set up automotive standards
6.10.3 Study investment in testing equipment and testing procedures
6.11 Automotive products standard testing center
6.11.1 Examine and maintain equipment and facilities
6.11.2 Develop and train human resources in the field of testing procedures
6.12 Automotive research and development center
6.12.1 Set up Automotive R&D center (comprises of testing, R&D in automotive vehicles
and automotive parts)
6.12.2 Develop and train human resources to have testing facilities and develop auto
vehicles
6.12.3 Encourage and develop personnel in education institutes to have participation in
testing and vehicles development
6.13 Export promotion center for auto parts
6.13.1 Set up export promotion center for auto parts to assist and give advice on
exports procedures
6.13.2 Build up network for auto parts for exports 6.13.3 Coordinate with international
and domestic trade organizations
6.14 Supplier development program
6.14.1 Set up supplier development center to provide suppliers advice to upgrade
production technology of auto parts
6.14.2 Coordinate with international and domestic trade organizations for technology
assistance

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6.14.3 Supporting any skilled workers to work on assigned job
6.14.4 Provide suppliers consulting services on management, production processes and
quality systems
6.15 Product development project
6.15.1 Promote product design and development of suppliers
6.15.2 Develop and train human resources to have product design and development
capabilities
6.15.3 Encourage personnel in education institutes to participate in product design and
development

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We anticipate five major changes in future automobile distribution patterns and practices:
1. Multiple channels and formats will coexist to satisfy different market segments. Channels
are distinct paths between a manufacturer and a customer through similar economic entities (in
new car sales, for example, traditional dealers vs. factory-direct Internet sales or a multi-brand
discount outlet). Formats are distinct combinations of points of sale, service offerings and
business processes within a general channel definition (for example, the Lexus format versus the
Chevrolet format). We expect much more variation in channels and formats in a physical sense
and more distinct positionings in terms of the purchase and ownership experience they provide,
further shifting the basis of competition from product to services and brand attributes.

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Undoubtedly, the traditional dealer channel will continue to play a major role, although most of
the innovation and volume growth will occur elsewhere. In many other consumer-durables
markets, multiple channels with different value propositions coexist quite happily. (See Exhibit
III.)

2. The six separate businesses under the roof of the traditional dealership will be
unbundled. The integrated model -- new-car sales, used-vehicle sales, finance and insurance,
service, parts, fieets -- was established early on when automobile retailing was still a new
industry. In today's world it makes little sense. Different operational structures will be required to
serve a variety of customer needs and economics.
3. The cost of distributing and marketing automobiles will be cut significantly. New formats
and channels will discipline the current system to drive out non-value-adding cost. Dealer
consolidations may unlock substantial economies of scale in back-office functions and
purchasing leverage. Much larger savings are possible, however, by driving out inventory;
reducing investment in brick-and-mortar and real estate investments, and optimizing the delivery
of services.
4. Marketing and distribution will concentrate on establishing durable customer
relationships. Customer acquisition costs are high and going higher; it is logical for
manufacturers and their channels to work harder to hold on to the customers they have. We see
these relationships developing on two axes: "follow the car" and "follow the customer."
The "follow the car" axis will take manufacturers more actively into the second and third
transactions in a vehicle's lifetime. Used-car certification programs are a "follow the car" concept
increasing in popularity today as a means of supporting initial sale prices.
The "follow the customer" axis means building more direct relationships with a targeted set of
customers to define their needs, develop tailored marketing programs and stake out unique brand

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positions. Identifying these customers and keeping them happy will require substantial
investments in market-understanding capabilities that go far beyond the functional, demographic
and pyschographic information that most manufacturers study today.
5. Manufacturers will seek and attain much closer contacts with consumers. We have no
doubt that someone will figure out the riddle of consumers' needs, aspirations and experiences as
they relate to cars; the tenuous part of this prediction is that manufacturers, and not other channel
players, will get there first. Manufacturers are surprisingly -- if not shockingly -- cut off from
their consumers today. Their dealer partners spend much of their energy figuring out ways to
disguise the product-push allocation system in a way that conceals true market demand from the
manufacturer. Manufacturers spend small fortunes on advertising, sponsorships, customer clinics
and surveys but continue to introduce market duds.
Internet technology enables more effective and efficient direct contact between manufacturers
and their ultimate customers. If, however, manufacturers fail to exploit this and other
technologies to establish meaningful relationships with consumers, more powerful channel
intermediaries will gain the upper hand and end up dictating customer needs to their suppliers --
the manufacturers.
These transformations will not be easy, and many of today's players will fight them aggressively.
But the revolution in automotive retailing has begun, and now that it is under way it will be
impossible to stop and nearly as difficult to contain.
DISTRIBUTION CHANNEL STRATEGY
Cost and customer-service improvements are necessary but not sufficient to transform auto
retailing channels. Realizing the full potential of these programs is not possible without a
reasonable view of the different customer segments that should be targeted; the appropriate mix
and level of marketing and distribution functions needed for each segment, and the best portfolio
of distribution formats and channels to reach the targets.
Just as specific groups of customers have their own product requirements, different consumer
segments have their own requirements for the purchase and ownership experience. These
requirements can be effectively targeted with channel, format and "soft offer" package variations
such as service contracts, financing or sales incentives. Ultimately, the consumer-segment
requirements will drive the service requirements and in turn help determine the best cost and
operating structure for the specific distribution format and customer-value proposition.
Creating purchase and ownership experiences to meet the needs of specific consumers has two
other significant implications. First is the need for parallel formats and channels in a given
region, each with its own pricing and bundle of service offerings. Parallel sales channels can
range from the traditional dealer to the Internet or to direct sales. Similarly, parallel service
channels could be created through specialized quick-fix workshops, independent dealers and do-
it-yourself stores/garages. (See Exhibit VI.) Parallel channels and formats raise the possibility of
channel confiict and the need for expanded skills to manage and reduce it.
The second implication of serving multiple, service-based customer segments is the need to
avoid cannibalization. For example, a Mercedes "A" class owner with a limited guarantee and no
branded service must be recognized as such and managed appropriately. This requires a system
for identifying and distinguishing the "soft offer" packages sold to individual consumers.
Mercedes is testing such a system in the form of a chip card. The chip card stores a description of
the "soft offers" purchased and requires an explicit payment for additional services.

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Creating a more fiexible and targeted mix of channels and formats will be hard to do. But it will
also require manufacturers to collect continuous and rapid feedback for new retailing ideas and
approaches, consistent with a strategic path that is fiexible enough to change as the organization
learns over time.

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Financial Plan

Year 1 Year 2 Year 3

Owner $21,000 $40,000 $45,000

Foreman $17,400 $22,400 $30,000

Sheet Metal & Body Technician(s) $12,831 $45,000 $50,000

Automotive Mechanic(s) $15,162 $52,000 $58,000

Painting Technician $6,750 $24,000 $27,000

Admin Asst. $9,000 $20,800 $22,800

Total People 6 8 8

Total Payroll $82,143 $204,200 $232,800

To maintain costs of goods sold to 60% or less. To increase sales within an 18 month period to
37% of the target market. To maintain financial records according to GAAP.
Goals
Objectives
• Purchase and use Machinery and Equipments
• Train employees proper handling to prevent waste Material
• Maintain a weight system for Auto, car etc.
• Check for quality of Machine and raw materials from suppliers when Material
is delivered
• Maintain storage equipment in proper working condition
• Hire an experienced and qualified accounting firm
• Contract out payroll
• Purchase a High Speed computer

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 • Utilize Business Plan equipment Use Accounting software
Financing Plan and Exit Strategy
The total needed capital for automobiles Circus is Rs500 Crore. Owner's cash contribution is
Rs100 crore and other investors and family members is Rs200 crore. The amount needed in loans
is Rs200 Crore.
FUNCTIONAL IMPROVEMENTS
In the conventional dealer networks, tremendous improvement opportunities exist along two
basic functional paths: reducing costs and raising customer satisfaction. Most manufacturers and
many large channel players are jumping at these opportunities, given their magnitude. However,
these players tend to select a limited number of programs, and they typically concentrate on
single functional improvements independently or on a single functional path.
A better approach is to address systematically the whole realm of possibilities with an integrated
view of benefits within and across specific functions. This is not easy. Even programs with
moderate scope and ambition typically require reforming entrenched business philosophies;
coordinating several organizational groups with disparate incentives; managing complex and
imposing legalities, and facing up to dealers resistant to change. But manufacturers must
recognize that new players unencumbered by these constraints are raising the bar and traditional
players must reach higher or fall behind.
Based on our experiences and analyses, we estimate that about 7 percent of the total cost to serve
consumers, or nearly one-quarter of automotive marketing and distribution costs, can be reduced
based on a typical traditional dealer operation. (See Exhibit IV.) The cost reductions derive from
three sources:

1. The consolidation and rationalization of channel activities to achieve economies of scale

and eliminate inefficient operations. Large numbers of small competing dealerships
impose significant cost penalties.

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 2. The unbundling of dealer businesses, for instance used-car selling, to optimize the
operating model for a specific business.
3. The application of best practices across outlets. Given the wide variation and the resulting
large differences in efficiency and effectiveness in operations among dealers, the
application of best practices is a powerful cost-reduction lever.
Here are some examples of potential functional improvements:
Reduce inventory costs. Dealers can cooperate among themselves and with the manufacturers
to pool inventory in regional centers. Also, analytical methodologies, information- systems tools
and best practices can be used to evaluate the dealer-level sales history to determine the best
amount and mix of vehicles, including option packages, to hold in inventory. Finally, to improve
future demand visibility and forecasting accuracy, dealers can use improved information systems
and marketing techniques to track customer and sales-promotion information, lease-renewal
marketing campaigns and historical data on sales-promotion effectiveness.
Leverage purchasing power. Dealers can also capitalize on economies of scale. The economies
result from lower costs in areas such as financing, advertising, management personnel, payroll
handling, insurance, supplies, administrative functions and parts purchases. The reported cost
savings from these economies alone can be as high as 20 percent of a dealer's total costs. B.B.
Hollingsworth Jr., chairman of Group 1 Automotive Inc., one of the leading consolidators in the
country, says that his company has "discovered more economies-of-scale savings than [it]
initially expected."
Manage used-car values. Most manufacturers today have some sort of certified used-car
program, although the programs vary in effectiveness. These programs are critical to managing
the risk of large losses from infiated lease residuals that have become commonplace, and to
minimizing the huge cost of incentives.
There is a direct link between the value of the used car and new car prices for the same model. In
one case for two comparable high-end sedans, we found a difference of 8 percent in the used-car
price between the make with a certified used-car program and the one without, despite the fact
that they were priced the same when new. This used-car relative discount was then refiected
directly in the new-car pricing differential between the two models in subsequent years.
Unbundle used-car sales. A large-scale operation designed specifically for used cars can
achieve efficiencies relative to the conventional dealer's used-car format. These include
economies of scale in areas such as advertising, management, personnel, facilities and systems.
In addition, there is the obvious savings of a lower-cost location. Joint ownership and operation
by dealers and manufacturers can make an unbundled used-car operation plausible for existing
franchised dealers.
Use best practices to sell cars. The traditional selling approach for new cars is replete with cost
(and effectiveness) opportunities. The car-buying process entails six successive phases:
continuous, subconscious information intake; active, focused information collection; test driving;
vehicle selection; purchase/negotiation, and post-purchase support. Manufacturers and dealers
typically use expensive shotgun approaches to these phases; alternative, more cost-effective
information exchange mechanisms are available for each.
These include information technology tools and approaches such as:
• Direct marketing databases

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 • Kiosks for interactive customer information exchange, vehicle selection, pricing,
delivery-date promise, order checking and "soft offers" (warranties, financing, insurance,
service packages, etc.)
• Internet sites for some of these same functions

Benefits include reduced mass-media advertising expenditures, more effective targeted

marketing and reduced sales force resources for almost every phase of the process. (See Exhibit
V.)
Use best practices in service and parts. Techniques for parts inventory management, service
personnel staffing practices, service bay scheduling and repair and maintenance procedures
typically vary greatly from one dealership to the next. Systematically identifying the differences
and meticulously implementing revised practices results in an average parts and service cost
reduction of 15 percent to 20 percent with only nominal investment.

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Increase customer satisfaction. Customer satisfaction and loyalty are rich veins of potential
functional improvement. Manufacturers' efforts are usually unsuccessful when they try to bribe
the channel to improve customer service. Good performers in the channel end up getting paid for
what they are already doing and the poor performers undertake short-lived, superficial steps to
"manage the measurements." Customer service in auto retailing is mostly about executing the
basics well -- fixing cars right the first time, keeping commitments, offering conveniences like

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pick-up and delivery where feasible. Service advisors and computer-driven follow-up calls will
not regain ground lost to sloppy execution.
ORGANIZATION & MANAGEMENT
Location:
The industry will be setup in Noida in Up because there are some reasons:
➢ There is Cheaper Workers
➢ Close to NCR
➢ Quick Link with Indian Government
➢ Large Production area
➢ Good transportation system and distribution
➢ Cooperate Polices of UP Government
➢ No shortage of workers
➢ Available Facilities (Raw Material, Electricity, water supply)
➢ Educated People
Key Personal
CEO: Puneet Chaurasia
Chairman: Sujay Tiwari
CMO: Mayank Aggarewal
CFO: Gopal Saxena
CPO: Ansul Jain
CHrO: Shishir Singh

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HR Policy and Strategy
Goal
To have a competent and knowledgeable management staff which functions as a team?
Objectives
• Hire experienced, qualified persons
• Conduct weekly management meetings
• On-going training to include outside classes in maintaining the vichele,
management, etc.
• Reviews every six months
• Performance incentives
• Encourage creativity
Organization
Automobiles Circus will be operated as a Sole Proprietorship. There will be private investors.
However, these investors will be silent investors with a payoff of investment within three years.
These investments will be paid twice-yearly in equal installments including interest.
Overall management will be the responsibility of the owner. There will be a general manager and
shift supervisors.
Critical Risk
There are risks inherent with any business. However, the Automobile business carries with it
very unique risks. Most critical is the customers' changing vehicle. Another is the economy.
Automobile rely heavily on serving persons who have expendable income. When the economy
takes a down turn, people change their spending priorities.
A problem also in Automobile is finding dependable help who will stay with the business. Many
Automobile employees tend to be younger and are attempting to move into a career. When either
their schooling ends or they find their "dream job," they move on. Often servers filling the
positions are non-skilled, and tend to be single mothers or lower educated persons. These persons
come with specific circumstances which must be accounted for by management. A single mother
may experience child-care problems, or a bus person may have problems with reading.

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 Summary
1. Manufacture and export of small cars, MUVs, two & three wheelers, tractors, components
To be promoted.
2. Negative list of items and rules of origin for FTAs/ RTAs to be followed
3. Appropriate Tariff Policy will be followed to attract investment
4. Specific measures will be taken for expansion of domestic market
5. Incremental Investment of US$ 35-40 Billion in the Automotive Industry during the
next ten years to be encouraged
6. Exports to be encouraged
7. Policy initiatives for competitiveness and development of technology would be taken
8. National Road Safety Board to act as the coordinating body for promoting safety
9. Inspection and Certification system to be strengthened by encouraging Public-private
partnership
10. Fleet Modernisation to be encouraged
11. Implementation of GST should be time bound
12. National level Automotive Institute for training on automobiles at ITIs and ATIs to be set up
13. Centers for automotive manufacturing excellence to be created
14. Adoption of ITIs and ATIs by OEMs, Tier I component manufacturers to be encouraged
15. An Auto Design Centre to be established at NID, Ahmedabad
16. NATRIP to act as Centre of Excellence for Technical Design Data
17. Integration of IT in manufacturing and in Automotive infotronics to be promoted
18. Infrastructure development around identified automotive clusters to be undertaken
19. Closer partnership between Industry, research institution and academia for innovation
and IPR to be encouraged
20. R & D for product, processes and technology to be incentivised
21. Continuous investment in road, port, railways and power to be encouraged
22. Strive for Labour reforms.
23. Road Map for Auto Fuel Policy beyond 2010 would be drawn
24. Rationalisation of motor vehicle regulations to be undertaken
25. Setting up of virtual SEZ and Auto Parks for auto component industry wou

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 Bibliography

www.google.com
www.wikipedia.orgg

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