REVIVE THE AUTOMOTIVE BUSINESS

Akhil Unnikrishnan B-03 2014-2016 akhil.unnikrishnan2016@sims.edu 7028055573

ISSUES….

• Negative growth rate

• Limited growth in motor cycles

• Car sales going down

• Complete influence in the sector

• Inconsistent growth

• Heavy vehicles and auto component also performing bad

IMPACT..• Stunned growth of companies• Closing of business• Unemployment• Withdrawal from the sector• Increasing price• Unproductive plants and factories• Effect over Indian Economy

• STATISTICS OF WORRIES

Statistics of Worries

1.20% growth in production

2.61% growth in domestic

sales

Car sales down by 6%

19.7% decline in 3 wheeler

exports

2.61 % growth in

commercial car seg.

10% decline in commercial

vehicle production

REASONS

Recession Purchasing Power

Global Impact Tightening monetary policy

KEY TRENDS…

• Glocalization • Deployment of Mitigation

statergies• The New Changes…• Evolving customer needs And

Urbanization

• Increased Interest on India for achieving cost parity and product differentiation

• Distribution of Global Automobile in rural segments• Local Companies bridging the technology gap• Leverage of using India as export hub to Africa,

Eastern Europe and South East Asia

• Decrease in skilled personal• R&D and manufacturing lacking skills• Multi plant strategies• Reallocation of suppliers

• Usage of Digital Marketing• Demand for personal mobility solutions• New entrants such as car-rental companies,

multi-brand service networks and group buying companies

• After-sales services, and need for enhanced bargaining power

• By 2020, India population to be around 200 million

• Pressure in Transport Infrastructure

• More fuel variants• Advanced safety• Changing customer preferences

towards luxury

TATA MOTORS

• Threats

• Car sales plunging 27.6 %

• Capacity utilization woes

• Infrastructure and growth prospects

• Global competitors

• Decrease in exports

• Environment of sluggish growth

New Steps• Telematics and fleet management service• Tata Alert• New dimensions in showrooms• Line up of new vehicles and initiatives• Customer Relations Management (CRM) system

certified by Oracle as the largest Siebel deployment in the automotive market.

• TML Distribution Company Ltd (TDCL), acts as a dedicated distribution management company and subsidiary, Tata Motors Finance Ltd

Our pride

• Reducing production cost by innovative implementation

• Expansion of manufacturing unit to all over the world

• New design and new concept cars• More stress on environment friendly ideas

Operation

• Find enough funds • Market image to be maintained• Find future prospects for mergers and acquistation• Making the customers and owners share same

passion

Finance

• Position to be diversified• More segmentation in passenger vehicles• Expand the outreach• Proper positioning of brand name

Marketing

REVIVAL

CV Domestic PV Domestic Export Total0200400600800

1000

Volume Growth

2013 2012

CV Volumes(000s)

PV Volumes (000s)

CV Market Share(%)

PV Market Share(%)

0

400

800

1200

1600

Vehicle Sales and Domestic Shares

2009 2010 2011 2012 2013

63%14%

9%5%3%3%1%1%

Distribution of Revenues(2012-2013)MaterialsOperations Taxes and DutiesEmployeesInterestDepreciation ShareholdersReserves

GRAPHS

HTTP://WWW.TATAMOTORS.COM/WEBADMIN/FR-FILES/616D31C901A5578679EBCDA7BE098604.PDF

INDIA'S MOTOWN MELTDOWN MOMENT_ CAR SALES CRASH TO LOWEST DOWNFALL FIRST TIME IN 10 YEARS AS PETROL

PRICES AND HIGH INTEREST PULL DOWN AUTO MARKET _ MAIL ONLINE

MANAGEMENT DISCUSSION AND ANALYSIS _ TATA MOTORS ANNUAL REPORT 2012-13

BIBLIOGRAPHY

THANK YOU!