international marketing auto component ppt
DESCRIPTION
IT PROVIDES AN IDEA OF INDIAN AUTO COMPONENT INDUSTRY...TRANSCRIPT
![Page 1: INTERNATIONAL MARKETING Auto Component Ppt](https://reader036.vdocuments.pub/reader036/viewer/2022062312/5528311a55034666588b46bd/html5/thumbnails/1.jpg)
PROJECT TOPICPROJECT TOPIC
INDUSTRYINDUSTRY
![Page 2: INTERNATIONAL MARKETING Auto Component Ppt](https://reader036.vdocuments.pub/reader036/viewer/2022062312/5528311a55034666588b46bd/html5/thumbnails/2.jpg)
AGENDA…
• STUDY HISTORICAL ASPECT AND CURRENT SITUATION.
• WHERE THE INDIAN INDUSTRY STANDS GLOBALLY?
• STUDY GROWTH POTENTIAL.
• REASONS FOR THE BOOM IN THE INDUSTRY.
• STUDY GOVERNMENT POLICIES.
• MEASURES TO SUSTAIN GROWTH.
![Page 3: INTERNATIONAL MARKETING Auto Component Ppt](https://reader036.vdocuments.pub/reader036/viewer/2022062312/5528311a55034666588b46bd/html5/thumbnails/3.jpg)
HISTORICAL ASPECT… Initially, the Indian Auto Component Industry wasnot competitive enough for the global market due toits:- Inferior quality Lower labour productivity High cost of raw materials Protectionist policies of Indian government Limited demand from vehicle manufacturers
However, a change came after the liberalization of the India economy in 1991 with:
Abolition of licensing Approval given to up to 51% foreign investment
![Page 4: INTERNATIONAL MARKETING Auto Component Ppt](https://reader036.vdocuments.pub/reader036/viewer/2022062312/5528311a55034666588b46bd/html5/thumbnails/4.jpg)
CURRENT ASPECT…1) Indian Auto Component Industry’s turnover in 2006-2007 was US$ 15 billion.
2) The industry is growing fast with a CAGR [COMPOUND ANNUAL GROWTH RATE] of 28.9%.
3) Indian industry has around 500 organized and around 600 unorganized players.
4) In terms of component type, engine parts lead the sales followed by drive transmissions and steering components.
![Page 5: INTERNATIONAL MARKETING Auto Component Ppt](https://reader036.vdocuments.pub/reader036/viewer/2022062312/5528311a55034666588b46bd/html5/thumbnails/5.jpg)
GLOBAL STANDING…• Indian manufacturers are gaining
recognition as “global quality” players.
• India shared 0.9% of the global Auto Components Industry in 2005-06.
• India’s share in world auto components could grow from 0.9% in 2005-06 to over 2.5% by 2015
![Page 6: INTERNATIONAL MARKETING Auto Component Ppt](https://reader036.vdocuments.pub/reader036/viewer/2022062312/5528311a55034666588b46bd/html5/thumbnails/6.jpg)
GLOBAL STANDING…• Many international players including
Delphi, Visteon, Bosch and Meritor have set up operations in India.
• Exports projected to grow at over 30% p.a.
• Over 60% exports are to Europe and USA.
• India is also becoming a global hub for R&D.
![Page 7: INTERNATIONAL MARKETING Auto Component Ppt](https://reader036.vdocuments.pub/reader036/viewer/2022062312/5528311a55034666588b46bd/html5/thumbnails/7.jpg)
Acquisitions made overseas are helping Indian auto component companies get access to new technology and
customers and increase in India’s global presence.
![Page 8: INTERNATIONAL MARKETING Auto Component Ppt](https://reader036.vdocuments.pub/reader036/viewer/2022062312/5528311a55034666588b46bd/html5/thumbnails/8.jpg)
GROWTH POTENTIAL…• India amongst the most competitive manufacturers of auto
components, especially:– Metal intensive components: forgings,stampings,castings.– Skilled labour-intensive components: machining, wiring-
harness etc.– Hi-tech components: electronic fuel injectors.
• Opportunity to address the global Auto Components market while leveraging India’s large and growing domestic market
• Opportunity to set up R&D centres in India– Indian technical skills is acknowledged as among the best
in the world• High level of sourcing of auto components from low cost
countries (LCC’s) to act as a driver for growth.• Potential of over US$5 billion for investment in India.
![Page 9: INTERNATIONAL MARKETING Auto Component Ppt](https://reader036.vdocuments.pub/reader036/viewer/2022062312/5528311a55034666588b46bd/html5/thumbnails/9.jpg)
INVESTMENTS MADE IN INDIA
![Page 10: INTERNATIONAL MARKETING Auto Component Ppt](https://reader036.vdocuments.pub/reader036/viewer/2022062312/5528311a55034666588b46bd/html5/thumbnails/10.jpg)
REASONS FOR BOOM. . .
Increase in incomeIncrease in standard of living.Relaxation of regulation.Reduction of tariffs on imports.
![Page 11: INTERNATIONAL MARKETING Auto Component Ppt](https://reader036.vdocuments.pub/reader036/viewer/2022062312/5528311a55034666588b46bd/html5/thumbnails/11.jpg)
ADVANTAGES TO MANUFACTURERS
Technological, cost and manpower advantage.
Established R&D centers.India among the lowest cost producers of
steel in the world.India is fourth largest passenger car market
in Asia.
![Page 12: INTERNATIONAL MARKETING Auto Component Ppt](https://reader036.vdocuments.pub/reader036/viewer/2022062312/5528311a55034666588b46bd/html5/thumbnails/12.jpg)
MAJOR PLAYERS…Domestic Private Players:Bharat Forge Limited Tata Auto Component Systems Sundaram FastenersBrakes India
International Private Players:MICO Visteon Delphi
![Page 13: INTERNATIONAL MARKETING Auto Component Ppt](https://reader036.vdocuments.pub/reader036/viewer/2022062312/5528311a55034666588b46bd/html5/thumbnails/13.jpg)
GOVERNMENT INITIATIVES…
100% FDI [FOREIGN DIRECT INVESTMENT] allowed through the automatic route.
Reduction in the duty of raw material to 5-7.5% from the earlier 10%.
Setting up of R&D Infrastructure Project.Incentives provided to the exporters in terms
of Drawbacks and DEPB [DUTY ENTITLEMENT PASSBOOK SCHEMES] .
![Page 14: INTERNATIONAL MARKETING Auto Component Ppt](https://reader036.vdocuments.pub/reader036/viewer/2022062312/5528311a55034666588b46bd/html5/thumbnails/14.jpg)
MEASURES TO SUSTAIN GROWTH COMPARED TO CHINA
CONSIDERING POINTS:- 1. SETTING UP OF RND CENTRES. 2. REDUCTION IN TAXES. 3. REDUCTION IN POWERCOST. 4. MANUFACTURERS SHOULD WORK
CLOSELY WITH OEMs (original equipment manufacturers). 5. OUTSOURCING & SETTING UP OF
UNITS IN LOW COST MANUFACTURING COUNTRIES
![Page 15: INTERNATIONAL MARKETING Auto Component Ppt](https://reader036.vdocuments.pub/reader036/viewer/2022062312/5528311a55034666588b46bd/html5/thumbnails/15.jpg)
COMPETITIVENESS…
• INDIAN MANUFACTURERS SUFFER FROM A COST DIS-ADVANTAGE.
• INDIAN INDUSTRY STANDS EQUALLY WITH BRAZIL.
• BURDEN OF TAXES IN INDIA IS HIGHER.• POWER COST IN INDIA IS HIGHER AS
COMPARED TO COMPETING COUNTRIES.• HIGH INTEREST RATES.
![Page 16: INTERNATIONAL MARKETING Auto Component Ppt](https://reader036.vdocuments.pub/reader036/viewer/2022062312/5528311a55034666588b46bd/html5/thumbnails/16.jpg)
CONCLUSION…
• Indian auto component industry is one of the largest growing industries in the world.
• Has a huge scope of investment.
• Favorable destination for foreign companies to establish their facilities and form alliances with domestic companies.
![Page 17: INTERNATIONAL MARKETING Auto Component Ppt](https://reader036.vdocuments.pub/reader036/viewer/2022062312/5528311a55034666588b46bd/html5/thumbnails/17.jpg)
SUGGESTION…
Efficiency in supply will be critical for India’s auto component industry’s success.
![Page 18: INTERNATIONAL MARKETING Auto Component Ppt](https://reader036.vdocuments.pub/reader036/viewer/2022062312/5528311a55034666588b46bd/html5/thumbnails/18.jpg)
THANK YOU
SUBMITTED BY:
JASMEET SINGH B-24 NISHITA MAHAJAN B-32
PRANAV NAGPAL B-34
RADHAPRIYA SRIVASTAV B-35 SAKSHI MANAKTALA B-42