Presentation on Automobile Industry

BY SHAILESH PATEL

Evolution of Automobile Industry

Initial Years Manufacturing was licensed Early to mid 90s Sellers market and long waiting periods Delicensing in 1993 Removal of capacity restrictions Decrease in customs & excise

High Customs duty on import

Steep excise duties & sales tax

Mid 90s Early 2000s

Buyers market Increase in Indigenization Easy Auto finance Manufactures diversifying into related activities: finance lease, fleet management, insurance and used car market

2 Major players: Premier Automobiles Ltd & Hindustan Motors

1980s

Auto finance boom- more Entry of MUL, better product, players (foreign banks & with government support non banking companies, better schemes. Sellers Market Long Waiting Periods

AUTOMOBILE

2 WHEELER

3 WHEELER

PASSENGER VEHICLE

COMMERCIAL VEHICLE

I.C.V.

M.C.V.

H.C.V.

MOTORCYCLE

SCOOTERS

SCOOTERETTES

MOPEDS

Trends in the automobile sector

Production of automobiles
10
Domestic Sales of automobiles

CAGR 15.4%
8.5 6.3 4.8 5.3
million numbers

CAGR 14.2%
10 8 6 4 2 0 2000-01 2001-02 2002-03 2003-04 2004-05 4.6 5.2 5.9 6.8 7.9

million numbers

8 6 4 2 0

7.2

2000-01 2001-02 2002-03 2003-04 2004-05

Exports of automobiles

Domestic Sales have been growing strongly

million numbers

Exports have nearly tripled in the last 5 years Largest three wheeler market in the world 4th largest passenger vehicle in Asia 4th largest tractor in the market 5th largest commercial vehicle market in the world

0.7 0.6 0.5 0.4 0.3 0.2 0.1 0

CAGR 39%
0.48 0.31 0.17 0.18

0.63

2000-01 2001-02 2002-03 2003-04 2004-05

Segment wise market share

Three Wheeler
3.9% 4.03%

CVs
Growth Rates of different segments
13.44%

Passenger vehicles

4 year CAGR

25 20 15 10 5 0

23.5

14.3 11.3

14

14.2

Two Wheeler
78.63%

Commercial Vehicles

Passenger Vehicles

Two wheelers

Three wheelers

total Automobiles

Segments

The industry has not experienced much change in its structure over the last 6 years Two- wheelers form the major share of domestic sales Passenger vehicles lead the exports market(57.4%) 2 wheelers form the bulk of exports as well, but are losing share to Passenger vehicles The growth in the two wheeler market is driven by the motorcycle market and is expected to grow at 14-15 % YOY

The Key Players

Others, 5.8% Yamaha, 3.8% TVS Motors, 17.7% Hero Honda, 39.8% Bajaj Auto, 24.4%
Hyundai, 19.17 Others, 5.73

Honda Motors, 8.5%

Honda, 5.33 Tata Motors, 17.19 Maruti, 50.37

Two wheeler

Passenger vehicle

Commercial vehicles Passenger vehicle Two Wheeler Three Wheeler

TATA Motors, Ashok Leyland, Swaraj Mazda,Mahindra & Mahindra ,Force motors, Eicher Motors TATA Motors, Maruti Udyog, Honda Motors, Toyata, Skoda, Mahindra & Mahindra, Daimler Chrysler, Hindustan Motors Hero Honda, Bajaj Auto, Honda Motors, TVS Motors, Yamaha , Kinetic Motors Bajaj Auto, Piaggio India

KEY ENABLERS
Favorable Demographics Improving income curve Reducing interest rates

KEY CHALLENGES
Cost Pressure High Expectations Inadequate Infrastructure Development

Key Focus Areas Product development( includes collaboration, new products developed) Vendor base (quality of vendors, skill levels , size etc.) Manufacturing capability( quality levels, productivity & skill levels, technology ) Service levels Supply chain Labor law Leverage IT Key Features of Future Auto Policy Foreign Direct Investment Import tariff Incentives for Research and Development (R&D) Environmental Aspects Other measures

TOYOTA MOTORS

 The history of Toyota started in 1933 with the company being a division of Toyoda Automatic Loom Works devoted to the production of automobiles under the direction of Kiichiro Toyoda.Kiichiro Toyoda had travelled to Europe and the United States in 1929 to investigate automobile production and had begun researching gasoline-powered engines in 1930.He was encouraged to develop automobile production by the Japanese government.

HISTORY OF TOYOTA

o In 1934, the division produced its first Type A Engine, which was used in the first Model A1 passenger car in May 1935 and the G1 truck in August 1935.

HISTORY OF TOYOTA

oAfter the world war II, commercial passenger car production started in 1947 with the model SA

HISTORY OF TOYOTA
The Crown became the first Japanese car to be exported to the United States and Toyota's America and Brazilian divisions
oToyota Co. was established as an independent and separate company in 1937. Although the company name was changed in order the pronunciation. Toyota is considered luckier than Toyoda in Japan, Toyota began to expand in the 1960s with a new research and development facility, .The first Toyota built outside Japan was in April 1963, at Port Melbourne in Australia, other countries.

The origins of Toyota

Toyota Motor Corporation was originally a machine manufacturing company called Toyoda Automatic Loom Works, Ltd. and was owned by Sakichi Toyoda. But it was his son, Kiichiro Toyoda who branched out into automobile manufacturing. The first type A engine was created in 1936 and the rest as I said in history.

Vision and Mission

Vision is to be the most respected and successful enterprise, delighting customers with a wide range of products and solutions in the automobile industry with the best people and the best technology".

Vision and Mission

Mission of Toyota is to provide safe & sound journey. Toyota is developing various new technologies from the perspective of energy saving and diversifying energy sources. Environment has been first and most important issue in priorities of Toyota and working toward creating a prosperous society and clean world

Core Values
To achieve our Vision we abide by our Core values. World class product quality. Achieving the ultimate goal of complete customer satisfaction. Fostering the spirit of Teamwork Inculcating ethical and honest practices

TOYOTA PRODUCT

TOYOTA PRODUCT

TOYOTA SPORT CAR

QUALITY POLICY
Toyota will strive to meet customer's expectations by providing world-class products and services through total employee commitment and continuous improvement

BASIC CONCEPT OF QUALITY ASSURANCE

Toyota purchases components from as many as two hundred suppliers it is very difficult to conduct detailed acceptance inspection. Therefore, in order to secure quality of the components it relies on the manufacturing and assembling process of these components for excellent process capability.

Toyotas approach to quality

Toyota has achieved a reputation for the production of very high quality vehicles in all countries around the world. This has been achieved by an approach to quality control and quality assurance. Customer satisfaction is at the heart of all Toyota activities. In order to satisfy customer needs Toyota includes all Members in quality control activities

Achievements & Milestones

Toyota Motor Corporation became the world's biggest car maker by volume 40,000 Corollas Toyota has sold in India over the last five years Camry, Corolla, Prado and Innova are the successful cars of Toyota on Indian roads

Future plans of Toyota Motors

Toyota to Make South African Subsidiary
Toyota will Develop Personal Transport Assistance Toyota to Acquire Land for New Plant in Brazil Toyota also plans to develop and launch a small car for the BRIC markets by 2010.

FINANCIAL STATUS OF THE COMPANY

(Fiscal Year : April 2009- March 2010 )

Number of employees Net revenues

316,121 26,289.2 billion yen

Income before taxes

Net income

2,437.2 billion yen

1,717.8 billion yen

USE OF 4 PS
TOYOTA MOTORS uses the four Ps of marketing for better results. PRODUCTS: The products offered-unique, superior AND sound quality. PRICE: TOYOTA MOTORS CORPORATION keep in mind the value for customers.

PROMOTION: The effective techniques are used to communicate to customers.

PLACE: The business location and methods for distribution of products.

OBJECTIVE OF COMPANY

Improve Quality Enhance Efficiency Minimize Cost Increase Productivity Over the previous years, the company has put in its best efforts to manufacture quality cars designed for its customers. To improve their efficiency, the company gives great importance to its human resource as the company believes that satisfied and quality conscious team can produced quality products. The company is using the philosophy of Kaizen for continuous improvement. It has become a way of life for the management of the company by doing these efforts towards their objectives.

CONCLUSION

I realize that Toyota so care about their customer and Quality, that's why Toyota is very famous , and made its brand name. Toyota has created a new dimension in the field of automobile business. It has understood the needs of the customers and has made a mark for itself by manufacturing small, high performing, defect free cars. The story of Toyota is one of an extraordinary group of entrepreneurs and engineers who believed in the power of innovation and in making miracles everyday

THANKS