Automobile Industry in

India

Submitted by:
Ankit Kumar
IPM Gzb.07-09
Marketing
 This study is done in keeping
following objectives in view:
• To find out the present status of the automobile
industries in India.
• To study the market research of the automobile
industries.
• To study the distribution and marketing strategy
adopted by automobile industries.
• To study the automotive components with
reference to SSL.
 Segmentation
 BASED ON THE PRICE OF THE
CAR
 BASED ON THE LENGTH OF THE
CAR
 BASED ON THE USER SEGMENT
 BASED ON THE PRICE OF THE CAR
Economy Segment
The economy segment of car ranges up to Rs. 2.5 lacs. The
products in this segment are Maruti 800, Alto and the
newly launched product of TATA motors i.e. NANO.
Mid- Size Segment
The mid-size segment of car ranges from 2.5 lacs to 4.5
lacs. It
includes the products like Hyundai santro, Maruti zen, Tata
Indica etc.
Luxury car segment
The luxury segment of car ranges from 4.5 lacs to 10 lacs.
It includes the products like Honda city, Hyundai Verna,
Mahindra Scorpio etc.
Super luxury car segment
The super luxury segment of car ranges above 10 lacs. This
segment satisfies the elite class of the society. It includes
the products like Skoda Laura, Honda Accord, BMW,
Mercedes, Audi etc.
 BASED ON THE LENGTH OF
THE CAR
 A segment- Cars that are less than 3.5
meters long (800, omni)
 B segment- Cars between 3.5 meters to 4
meters long( Zen, SX4, Santro)
 C Segment- Cars between 4 meters to
4.5 meters long (Verna, Honda city, ford
fiesta)
 D segment- Cars that are more than 4.5
meters long( Mercedez, Sonata,Accord,
Skoda)
 BASED ON THE USER
 Individual Buyers
 Taxi operators
 Government /non-government
institutions
Automotive component industry
 It consists of :
 Forecasting for Automotive
sales(Domestic & Exports)upto 2016
 Contd…
Automotive Sales-Domestic & Export

40
35
30
25
Sales

20
15
10
5
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Years
Forecasting for Domestic passenger
vehicle up to 2016
 Contd….
Domestic Passenger Vehicle

3000

2500

2000
Sales

1500

1000

500

0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Years
Forecasting Up to 2016
 Exports

0
1000
2000
3000
4000
5000
6000
7000
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006

Years
2007
2008
2009
2010
Auto Component Industry Export

2011
2012
2013
2014
2015
2016
Contd…
Forecasting upto 2016
 Production

0
10000
15000
20000
25000
30000

5000
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006

Years
2007
2008
2009
2010
Auto Component Industry Production

2011
2012
2013
2014
2015
2016
Contd…
Forecasting upto 2016
 Contd…

Auto Componenet Industry Investment

14000
12000
10000
Investment

8000
6000
4000
2000
0

Years
Forecasting upto 2016
 Contd…

Car Production

2500000

2000000
Production

1500000

1000000

500000

Years
Forecasting upto 2016
 Contd….
Pas s e nge r V e hicle s Expor ts fr om India

600

500

400

300

200

10 0

Ye a r s
Indian Automotive Mission Plan – Vehicle sales
expected to grow to 32 million by 2015-16
Key points for Sona
Somic
 Key Focus Area

Technology
Innovation
Quality
 Customer satisfaction
Superior customer satisfaction with

over 99% on time delivery should be

the key areas for the SSL.
 Markets
 Germany, Italy, UK, Belgium, Poland,
France, USA, Canada,
 Romania, Holland, Israel, Greece,
Spain, Hungary, Sweden, Russia,
 Others
 Product designing
Product should be designed using
state-of the-art three dimensional
mechanical design software and
produced with precision tooling
 Manufacturing Process
All steps of the manufacturing
process should be planned,
controlled and monitored by a
corporate-wide computerized
network running Enterprise Resource
Planning (ERP) software
 Benefits of ERP Software
The capabilities of this system will
enable plants to meet changing
customer demands, and allow the
flexibility to design and manufacture
parts that are not currently in sona’s
portfolio
Testing and Controls to be used
 Material Surface Crack Test
 Hardness Test
 Roughness Test
 Fatigue Test
 Vibration Test
 Surface Coating
 Thickness Test
 Contd.
 Stud Breakaway Test
 Stud Pull Out Test
 Welding Tensile Strength Test
 Buckling Test
 Salt Spray Test (out sourced)
 Leakage Test
 SAE J193 Ball Stud and Socket
 Assembly Test Procedures
 Product Specifications/Enhanced
designs
 Unified-body housings do not require cover plates
or polymer caps, this leads to a much stronger
design with improved overall part integrity
 Exclusive two-convex dust boot design helps
internal structure stay firm and durable against
corrosion, tear, dust and temperature variation
 Special CR60 dust boot material is used for
flexibility, yet still provides maximizing overall
toughness
 For ease of installation, ball studs should be
designed with wrench flats and/or allen wrench
sockets to match each specific vehicle suspension
 Contd.
 More robust bearing design resists radial/axial
and vibrating forces far better than standard
design
 Precision-cut channels on inner bearing walls
provide significantly more grease storage and
improved grease flow
 Upper and lower dust boot rings are specifically
designed to prevent dust boot tear. Acting much
like a spring, they optimally maintain the correct
clamping force and remain totally unaffected
during changing operating conditions
 Stabilizer links are plated with environmentally
friendly Cr3+ material,which prevents corrosion
and increases the life of the grease inside
 Warranty
All parts should come with a 2
year/40,000 mile limited warranty.
Company should replace, or refund your
money for, at its option, any part it sells
that wears out or breaks under
warranty. The warranty begins on the
day the part is purchased and expires at
the end of 2 years/40,000 miles or when
the vehicle is sold, whichever comes first
 Packaging
All products should be packed and
sealed into moisture preventative
bags. This ensures parts remain
rust-free during transportation and
storage. These bags are
environmentally friendly and do not
contain nitrites or phosphates
 Inventory Mix Management
 Provide plan to minimize and/or eliminate duplication while
extending needed coverage & foreign brand
ACTIONS

 Identify parts to be added because domestic supplier might

not have or distributor does not carry .
 Identify parts to be migrated because price point, design,
and/or brand does not compete well for foreign nameplate
repair
 Identify older/slower moving foreign car parts to zero order
points and/or return to domestic supplier
 Typical WD location adds $15-18K / Store location is $3-5K
 Changing market do we have the right tools?

1. Price point: Domestic-oriented aftermarket premium lines

are relatively expensive as compared to import-specialist
brands
2. Brand: In order to compete for European and many Asian
repair dollars, the market often demands a foreign
nameplate (domestic suppliers source almost all of these
parts)
3. Coverage: Domestic-oriented suppliers offers between 53-
61% of the “top 100”import vehicle coverage .
4. Enhanced Design: patented product designs manufactured
gives installers choices that have been previously
unavailable in the U.S.
5. Growth: Quickly changing vehicle parts in North America
will drive future growth in the import segment of the
chassis business.
The above analysis and
recommendations establishes SSL’s
market position as a leading supplier
of Steering Ball Joints and
Suspension Arms to domestic
automobile manufacturers and tier-1
suppliers, and access to technology
from its collaborators for product
design and development.