Presentation on Automobile

Industry

BY SHAILESH PATEL
 Evolution of Automobile Industry
Initial Years
Early to mid 90s
Manufacturing was licensed
•Seller’s market and long
•High Customs duty on import Mid 90s – Early 2000s
waiting periods
•Steep excise duties & •Buyers market
•Delicensing in 1993
•sales tax
•Increase in Indigenization
•Removal of capacity
•2 Major players:
restrictions
Premier Automobiles Ltd •Easy Auto finance
& Hindustan Motors
•Decrease in customs &
•Manufactures diversifying
excise
1980s into related activities:
finance lease, fleet
•Auto finance boom- more
•Entry of MUL, better product, management, insurance
players (foreign banks &
with government support and used car market
non banking companies,
better schemes.
•Seller’s Market

•Long Waiting Periods

 AUTOMOBILE

PASSENGER COMMERCIAL
2 WHEELER 3 WHEELER
VEHICLE VEHICLE

I.C.V. M.C.V. H.C.V.

MOTORCYCLE SCOOTERS SCOOTERETTES MOPEDS

 Trends in the automobile sector…
Production of automobiles
Domestic Sales of automobiles

10 CAGR 15.4% CAGR 14.2%

8.5
10
million numbers

8 7.2 7.9

million numbers
6.3 8 6.8
5.9
6 5.3 6 5.2
4.8 4.6
4
4
2
2 0
2000-01 2001-02 2002-03 2003-04 2004-05
0
2000-01 2001-02 2002-03 2003-04 2004-05
Exports of automobiles

•Domestic Sales have been growing strongly 0.7 0.63

0.6
CAGR 39%
• Exports have nearly tripled in the last 5 years

million numbers
0.48
0.5
•Largest three wheeler market in the world 0.4 0.31
0.3
0.18
•4th largest passenger vehicle in Asia 0.2
0.17

0.1
•4th largest tractor in the market 0
•5th largest commercial vehicle market in the world 2000-01 2001-02 2002-03 2003-04 2004-05
 Segment wise market share…
Three 3.9% CVs
4.03%
Growth Rates of different segments
Wheeler 13.44%

23.5
25
20

4 year CAGR
Passenger 15 11.3
14.3 14 14.2

vehicles 10
5
0
Commercial Passenger Two Three total
Two Wheeler Vehicles Vehicles wheelers wheelers Automobiles
78.63% 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…

Two wheeler Passenger vehicle

Commercial TATA Motors, Ashok Leyland, Swaraj Mazda,Mahindra & Mahindra ,Force
vehicles motors, Eicher Motors

Passenger TATA Motors, Maruti Udyog, Honda Motors, Toyata, Skoda, Mahindra &
vehicle Mahindra, Daimler Chrysler, Hindustan Motors

Two Wheeler Hero Honda, Bajaj Auto, Honda Motors, TVS Motors, Yamaha , Kinetic Motors

Three Wheeler Bajaj Auto, Piaggio India

 KEY ENABLERS KEY CHALLENGES

• Favorable Demographics •Cost Pressure

• Improving income curve •High Expectations
• Reducing interest rates •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
 HISTORY OF
TOYOTA
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.

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.
 Toyota’s 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 316,121
employees
Net revenues 26,289.2 billion yen
Income before taxes 2,437.2 billion yen
Net income 1,717.8 billion yen
 USE OF 4 P’S
TOYOTA MOTORS uses the four P’s 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