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IN INDIA:
New Production Paradigm
Presented By:
Shruti
Ruma
Prachi
Shivani
Akash
Introduction
The automotive sector is one of the core industries of Indian Economy, whose prospect is reflective of the
For purposes of analysis, the equation can be reduced to two inputs X and Y.
Restating,
Q= f( X,Y)
Where
Q= Output, X= Labor, Y= Capital
Hence, In the case of Maruti Udyog,
Land: No details has been made available such as location, cost of land etc
Capital: 100 million+ 50 million from suppliers = 150 million
Labour: No information on Labour required is available.
Hence due to absence of these factors, production equationfor Maruti Udyog cannot
be derived
India is among few countries that are showing a growth rate of 30 per cent in demand for
passenger cars.
The industry currently accounts for nearly 4% of the GNP and 17% of the indirect tax revenue.
This growth will primarily be fuelled by the increasing number of vehicles on the road, as
well as the aggressive expansion of independent and foreign players.
While current margins for the industry remain attractive, players across the value chain may
see margins reducing to the lower levels observed in developed economies.
Therefore, to sustain profitability, players evaluate additional ways of capturing value,
including expanding service networks, building scale.
Revenue pools remain large across the value chain, hence if players are able to pursue
appropriate strategies, significant profits can be made in this sector.
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