Automobile Industry Analysis

Table of Contents

Industry Analysis 2

Automobile Industry 2

Maruti Suzuki 5

Hero MotoCorp 9

TVS Motors 12

International Trends 14

References 15

Industry Analysis

Automobile Industry

The automobile industry is one of India’s most vibrant and growing industries. This industry accounts for 22 per cent of the country 's manufacturing gross domestic product (GDP). The auto sector is one of the biggest job creators, both directly and indirectly. It is estimated that every job created in an auto company leads to three to five indirect ancillary jobs.The next few years are projected to show solid but cautious growth due to improved affordability, rising incomes and untapped markets.

The relationship marketing in automobile industry plays a

It is a subsidiary of Suzuki – a Japanese motorcycle and automobile manufacturer Suzuki. It has a market share of 42% of the Indian car market’s . Maruti Suzuki manufactures and sells a varied range of car.At entry level Alto, the hatchback Zen, Ritz, Celerio, A-Star, Wagon R, Swift, and sedans DZire and SX4, , Multi Purpose vehicle Suzuki Ertiga , the 'C ' segment Omni and SUV Grand Vitara. Types of Suppliers: Maruti Suzuki defines 3 categories of suppliers which are fully owned, global suppliers (Visteon,Delphi etc); the 2nd is large Indian companies that opted for joint ventures with foreign companies (Sona Koyo and Krishna Maruti); the 3rd lot is small Indian suppliers, like the one that supply sheet metal or components of plastic, that do not have foreign equity or any sort of technological collaboration.

The Relationship

When Maruti switched to global launches, it was the third category that was largely unable to participate in the ‘concurrent engineering’ route. Though they were good at reading drawings and manufacturing them, but many lacked design skills. To remedy this situation, Maruti set up a separate division within Maitra’s supply chain wing to identify foreign technology firms and match them with Indian suppliers. Maruti advised the third category of suppliers to get into tool design with these companies, which is generally considered easier than product design. This matchmaking exercise began in 2006 and has so far led to 18 collaborations.

Implementation of the Best Practices: Maruti is highly focused on supplier development, including helping vendors to improve lean manufacturing and just-in-time logistics. Their aim is to help the suppliers achieve manufacturing at absolutely minimum cost and productivity at its highest and the best quality. The company has even set up a special unit to work closely with suppliers. The Maruti Centre for Excellence (MACE) is made up of a group of engineers that focus on supplier quality, including consulting on project implementation and periodic