AUTOMOBILE

Riddhi Tulshian A056

Arnav Das A026
Mudit Singh Chauhan A061
Anushka Sachan A050
Adarsh Himatshingka A032
INTRODUCTION

 Key Driver of any growing Economy

 One of the largest industries showing impressive growth

 Status Quo
 PORTER’S FIVE FORCES
Automobile
Porter's Five
Industry
Forces

High Level of
Threat of New Entry Barriers
Entrants

Hold very little

Power of
Real Power
Suppliers

Hold very little

Power of Buyers Buying Power

Availability of
Threat of both alternate
Substitutes offerings and
alternate mode
of transportation

Competitive
Less reliance on
Rivalry
Price Based
competition
COMBAT STRATEGIES

 Subtle nuances

 Tax exemptions

 Matter of prestige
SWOT ANALYSIS

STRENGTHS
 Investment by Foreign Car Manufacturers

 Increase in Passenger Vehicle Exports

 Low Cost and Cheap Labor

 Rising Middle Class and Disposable Income Levels

 Expertise as a Small Car Hub

 WEAKNESSES
 Low Labor Productivity

 High Production Costs in India

 Localization and the Quality of Production

 Poor Infrastructure
 OPPORTUNITIES
 Government Reforms

 Low Car Penetration Levels

 Niche Rural Market

 Changing Demographics and Differentiation Acceptability

 THREATS
 Economic Slowdown

 Unskilled Labor

 Diminishing Export Markets

 Saturating Domestic Urban Markets

 Some other Threats to the Indian Car Industry

 International Car Rental Firms

SUGGESTIONS

 Create a culture of quality

 Work with suppliers

 Use technology to connect the supply chain

SUGGESTIONS

 Demand more than an inspection record

 Leverage manufacturing intelligence

 Drill down through data to reduce warranty claims and recalls