Demand Analysis & Forecasting –

The Car Industry

Presented By
D’Souza Goldie Gilbert (F09077)
Gaurav Makkar (F09082)
Khushboo Lodha (F09094)
Prerna Bafna (F09100)

1
Acknowledgement

We would like to thank Prof. A. C. Fernando for giving us the opportunity to

work on this project. We, as a group, are grateful to him for guiding us and
providing us with useful insights which helped us tremendously in the
preparation of the project. Through this project we have clearly understood
the nuances of demand forecasting and its causes, application and
implications in the automobile industry. We, once again, thank Prof. A. C.
Fernando for enabling us and motivating us to carry out this project.

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 Contents
About the Industry……………………………………………………………………4

Demand Forecasting………………………………………………………............10

Company - Maruti Udyog Pvt. Ltd…………………………………….……...14

Regression Analysis for Sales………………………………..…………………20

Conclusion…………………………………………………………………………….30

Bibliography…………………………………………………………………………31

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About the Industry

Introduction
World Motor Vehicle Production for 2007
The automotive industry is the industry
involved in the design, development, Rank   Country Automobile production  
manufacture, marketing, and sale of motor
vehicles. In 2007, more than 73 million 1 Japan 11,596,327
motor vehicles, including cars and
commercial vehicles were produced
worldwide. 2 US 10,780,729

In 2007, a total of 71.9 million new

automobiles were sold worldwide: 22.9 3 China 8,882,456
million in Europe, 21.4 million in Asia-
Pacific, 19.4 million in North America, 4.4 4 Germany 6,213,460
million in Latin America, 2.4 million in the
Middle East and 1.4 million in Africa. The
markets in North America and Japan were 5 South Korea 4,086,308
stagnant, while those in South America and
Asia grew strongly. Of the major markets,
Russia, Brazil and China saw the most 6 France 3,019,144
rapid growth.
7 Brazil 2,970,818
In 2008, with rapidly rising oil prices,
industries such as the automotive industry
are experiencing a combination of pricing 8 Spain 2,889,703
pressures from raw material costs and
changes in consumer buying habits. The
9 Canada 2,578,238
industry is also facing increasing external
competition from the public transport
sector, as consumers re-evaluate their 10 India 2,306,768
vehicle usage.

Industry Overview
4
Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the
automobile industry in India has come a long way. During its early stages the auto
industry was overlooked by the then Government and the policies were also not
favourable. The liberalization policy and various tax reliefs by the Govt. of India in
recent years have made remarkable impacts on the Indian automobile industry. The
Indian auto industry, which is currently growing at the pace of around 18% per annum,
has become a hot destination for global auto players like Volvo, General Motors and
Ford.

A well developed transportation system plays a key role in the development of an

economy, and India is no exception to it. With the growth of transportation system the
Automotive Industry of India is also growing at rapid speed, occupying an important
place on the 'canvas' of Indian economy.

Today the Indian automotive industry is fully capable of producing various kinds of
vehicles and can be divided into 3 broad categories: Cars, two-wheelers and heavy
vehicles.

Segment Know-how
Passenger Car Segment Lead In Sales Volumes

The passenger car and two-wheeler segments account for around 90 percent of total
volume sales in the industry. The entry of multinationals has dramatically increased
competition in the Indian passenger car market. There are 11 foreign carmakers
offering over 80 different models to customers in India. Sales in the economy-range
segment account for 50 percent of the market for ‘A’ models that are priced below
$6,700 (Rs300,000) and 'B' cars in the price range of $6,700 to $11,000 (Rs300,000 to
Rs500,000). Automobile manufacturers are now intending to provide cars at every price
point and reaching more potential customers.

Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52% share in
passenger cars and is a complete monopoly in multi purpose vehicles. In utility vehicles
Mahindra holds 42% share.

In commercial vehicle, Tata Motors dominates the market with more than 60% share.
Tata Motors is also the world's fifth largest medium & heavy commercial vehicle
manufacturer.

Current Scenario

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The Indian automobile segment experienced strong growth of 9.8% in April 2008 as
the demand of vehicle increased in its every segment. Starting of new financial year
(April 2008) has yielded positive results for the Indian automobile industry as sales
experienced 9.8% growth rate as per the Society of Indian Automobile Manufacturers
(SIAM). It also revealed good show up by all segments including cars, commercial
vehicles, motorcycles and three-wheeler.

According to the SIAM data, the vehicle sales in the domestic market reached 806238
Units in April 2008 compared to 734103 Units in corresponding month last year. The
car segment sales grew strongly with 17% rise to 98740 Units. Festival of Navratri and
fear of price hike in automobile industry also boosted vehicle sales during April 2008.

However, the industry experts predict that despite the good performance by the Indian
automobile industry in April 2008, coming months will bring in difficulties for the
industry, given that steel prices are increasing, ultimately pushing up the input cost.

According to a research analyst at RNCOS, “All the segments of the Indian automobile
industry are growing at a rapid pace, encouraging car manufacturers to expend in the
market. Given the current growth scenario, the Indian auto industry is offering huge
growth opportunities for both manufacturers and dealers as the demand for vehicles is
escalating in the country.”

Auto Companies in India

The onset of automobile industry in India saw companies like Hindustan Motors,
Premier Automobiles and Standard Motors catering to the manufacture of automobiles
for Indian customers. The era, 1950s - early 1990s was known as 'license raj,' when
India was closed to the world and imports. Hindustan Motors (HM) was the leader in
car manufacturing and sales until the 1980s, when the industry was opened up from
protection. HM, joint ventured with Mitsubishi and produced Lancer and Pajero, but it’s
best known for its own model, Ambassador.

Around 1970, Sanjay Gandhi, elder son of the then Prime Minister Indira Gandhi,
envisioned the manufacture of an indigenous, cost-effective, low maintenance compact
car for the Indian middle-class. The cabinet passed a unanimous resolution for the
development and production of a "People's Car." It was christened Maruti Limited.
However, the company as Maruti Udyog Ltd. matured only after the death of Sanjay
Gandhi. The Maruti800 car went on sale in 1983. By 1993 it sold up to 1,96,820 cars.

In 1991, the liberalisation of the Indian economy opened the market for foreign
automobile makers to venture in India. The license raj ended in 1993 and many foreign

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players entered the Indian market by way of joint ventures, collaborations or wholly
owned subsidiaries.

The automotive industry in India is now working in terms of the dynamics of an open
market. Many joint ventures have been set up in India with foreign collaboration, both
technical and financial with leading global manufacturers. Also a very large number of
joint ventures have been set up in the auto-components sector and the pace is expected
to pick up even further. The Government of India is keen to provide a suitable economic
and business environment conducive to the success of the established and prospective
foreign partnership ventures. $5.7 billion is the investment envisaged in the new
vehicles projects.

Indian Automotive Industry: a Booming Buyer’s Market

The past few years have witnessed a rapid change in all the segments of the Indian
automotive industry. International competition, increase in the number of participants,
and the need to counter the pressure on margins have made it a buyer's rather than a
seller's market. Customers have wide model choices and the rising income levels –
especially among young adults – coupled with the low equal monthly installments
(EMIs) have made vehicle purchase affordable. With foreign competitors focusing on
passenger vehicles, domestic participants are scrambling to catch up and compete by
investing in R&D and improving overall efficiency.

Major Auto Manufacturers in India

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 Segments Companies
 Suzuki  Volvo
 Honda  Skoda
 Toyota  Fiat
Cars/ SUVs  Mitsubishi  Hyundai
 GM  Tata
 Ford  M&M

Investment plans of major players

Future Plans of the Indian Automobile Industry

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 The automobile industry in India is on an investment overdrive. Be it passenger car or
two-wheeler manufacturers, commercial vehicle makers or three-wheeler companies -
everyone appears to be in a scramble to hike production capacities. The country is
expected to witness over Rs 30,000 crore of investment by 2010.

Over the next one year, some 20 new cars will be seen on Indian roads. General Motors
will be launching a mini and may be a compact car. Most of the companies have made
their intentions clear. Maruti Udyog has set up the second car plant with a
manufacturing capacity of 2.5 lakh units per annum for an investment of Rs 6,500 crore.
Hyundai and Tata Motors have announced plans for investing a similar amount over the
next 3 years. Hyundai will bring in more than Rs 3,800 crore to India, Tata Motors will
be investing Rs 2,000 crore in its small car project.

General Motors will be investing Rs 100 crore, Ford about Rs 350 crore and Toyota
announced modest expansion plans even as Honda Siel has earmarked Rs 3,000 crore
over the next decade for India - a sizeable chunk of this should come by 2010 since the
company is also looking to enter the lucrative small car segment.

Some new entrants will also taste the water. They are the big names in the global
passenger car market like Citroen, Volkswagen AG, Nissan (separately, apart from its
tie-up with Suzuki), Alfa Romeo, Maserati, Land Rover and Aston Martin.

Demand Forecasting
What is Demand Forecasting?

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Demand Forecasting is a proactive process of determining which products are needed where,
when, and in what quantities. Forecasting customer demand for products and services is one of
the most fundamental tasks that a business must perform. Thus demand forecasting is a
customer–focused activity.

Demand forecasting is also the foundation of a company’s entire logistics process. It supports
other planning activities such as capacity planning, master production scheduling (MPS),
inventory planning, and even overall business planning. It can be a significant source of
competitive advantage by improving cost structure and customer service levels, and decreasing
backorders and lost sales. The goal of forecasting is to minimize the error between the forecast
and the actual demand.

Broad Purposes of Demand Forecasting

The purpose of demand forecasting and analysis can be broadly described as:

 Identifying and describing the current and future competitive landscape.

 Framing the purchase/usage decision in meaningful ways.
 Generating forecasts for contingencies in as yet uncertain/undecided product profiles or
competitive options.
 Anticipating demand among different market segments.
 Calibrating survey-derived demand estimates to predict actual—not just relative—revenue or
usage volume.
 Integrating the influence of multiple decision makers on acquisition and usage.

Competitive Landscape

A common error in demand forecasting is to ask potential decision makers what they would
purchase or use without properly sensitizing them to environmental and competitive conditions
that are likely to exist at a time in the future when the product will be introduced.

Framing the Purchase/Usage Decision

Marketing research agencies are frequently asked to develop volumetric forecasts. For instance,
communications companies need to estimate minutes of usage a new product or service will
generate, computer companies want to know how many processing units will be sold, and
pharmaceutical firms require estimates of drug prescribing volumes. Failure to frame the
purchase or usage decision in a manner that accounts for real world differences in application
will produce misleading estimates of usage or purchase.

Forecasting for Product Configuration & Market Contingencies

Frequently clients have the opportunity to configure a product to maximize revenue or usage.
However, on some occasions, clients will not have the freedom to configure the attributes of the
product as they wish, and they may not even know what attributes the product will ultimately
possess because the product is still in development. Independent of product configurations,

10
there may be considerable uncertainties about future competitive offers or responses. In each of
these situations, the accuracy and utility of demand forecasts are threatened.

One of the most effective ways to account for these types of contingencies is to use conjoint or
discrete choice analysis. These techniques expose decision makers to samples of alternative
configurations to obtain measures of the relative impact of each candidate attribute or
contingency. Using decision maker preferences, conjoint and discrete choice analysis permits
forecasts for thousands of alternative configurations or contingencies.

Demand Among Market Segments

Demand estimation by segment can create considerable value for clients. Understanding what
groups are more likely to acquire or use a product permits cost-effective targeting of
promotional and sales activities.

Calibrating Survey-Derived Demand Estimates

Survey-derived demand estimates can be very effective tools for product development,
marketing, and sales. However, demand estimates that are not adjusted for sources of error can
be misleading and very costly.

While some research and consulting firms claim to have a formula for various forms of error,
analysts have found that variations in product, market, and competitive conditions make canned
approaches unreliable. In fact, our most reliable calibrations for error are customized using a
combination of forecasting experience and modelling expertise supplemented by a healthy dose
of product, industry, and market knowledge.

Integrating the Influence of Multiple Decision Makers

In many cases, reliable forecasts require an understanding and measurement of multiple

influencer or decision maker effects on demand. The experience of various analysts has taught us
to tailor our forecasting approach to the appropriate decision-making conditions. Frequently, it
is necessary to identify and survey multiple influencers or decision makers, and then integrate
their views.

Different Levels of Demand Forecasting

a) Macro-level
It is concerned with business conditions of the whole economy, measured by an
appropriate index of industrial production, national income or expenditure. Such

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 external data constitutes the 'basic assumptions’ on which the business must base
its forecasts.

b) Industry-level
Forecasts prepared by different associations.

c) Firm-level
It is the most important from managerial viewpoint.

Forecasting Methods & Techniques

There is no easy method or simple formula to predict the future. There are two dangers
to guard against. Too much emphasis should not be placed on mathematical or
statistical techniques of forecasting. Though statistical techniques are essential they are
not substitutes for judgment.

We should not leave everything to the judgment of so-called experts. What is needed is
some commonsense mean between pure guessing and too much mathematics.

There are three types of forecasting methods available to predict demand:

(1) Judgment methods

(2) Time series analysis
(3) Causal methods

Each of this method is described below with the techniques used to apply the method:

 Judgment Methods

These methods utilize opinions to develop forecasts and are generally used when
historical data is not available. The basis for judgment methods is that the decision
maker(s) possess sufficient experience to establish forecasts. In general, they are
low cost and have a rapid development time.
However, they are not consistently accurate and are subject to bias by the group
creating the forecast. The Delphi method is a facilitated process of gaining
consensus within a group of anonymous participants. This is a reiterative process
that continues until a consensus is obtained. However, it is a time–consuming
process that is highly dependent on the quality of the questionnaires.

 Time Series Analysis

Time series forecasting methods, also known as intrinsic methods, uses prior
demand history to generate a forecast. The techniques that make up this category

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 assume that the past patterns of demand will continue into the future. In the short–
term, they perform very well but not in the long–term.

As a result, these techniques are best used for

(1) Mature products
(2) Products with a large amount of historical data or
(3) Products with smooth, random demand variations

 Causal Methods

Causal methods create forecasts by determining a cause–effect relationship

between independent variables and the demand for the product. One of the benefits
is that causal methods provide good long–term forecast accuracy. However, the
forecasts require careful thought and insight into the variables that effect demand.

Risks in Demand Forecasting

Demand forecasting faces two major risks of grossly overestimating or underestimating
demand
a) The first risk arises from entirely unforeseen events, such as war, political
upheavals or natural disasters

b) The second risk arises from inadequate analysis of the market

Company
Maruti Udyog Ltd

13
Quick Facts

Year of Establishment February 1981

"The Leader in The Indian Automobile Industry,
Vision Creating Customer Delight and Shareholder's Wealth; A
pride of India."
Industry Automotive - Four Wheelers
Listings & its codes BSE - Code: 532500
NSE - Code: MARUTI
Bloomberg: MUL@IN
Reuters: MRTI.BO
Joint Venture With Suzuki Motor Company, now Suzuki Motor
Corporation, of Japan in October 1982.

Brands

Maruti 800 Maruti Alto Maruti Baleno

Maruti Esteem Maruti Grand Vitara XL-7 Maruti Gypsy King
Maruti Omni Maruti SX4 Maruti Swift
Maruti Versa Maruti Vitara Maruti Wagon-R
Maruti Zen Maruti Ritz

Particulars Quarter ended Nine Months Financial Year

Ended Ended
31.12.05 31.12.04 30.06.2005
Dates 31.12.05 31.12.04
(6 month) (9 month) (Audited)
Domestic Vehicles 137,127 122,042 380,763 351,583 487,402

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 Sold (No.)
Export Vehicles Sold
7,883 14,027 26,656 37,958 48,899
(No.)
Total Vehicles Sold
145,010 136,069 407,419 389,541 536,301
(No.)
Net Sales 310,431 279,646 874,309 787,726 1,091,075
Total Income 322,079 293,837 909,516 821,177 1,135,387
Total Expenditure 264,831 245,363 764,078 692,645 955,614
Profit before Tax 50,269 37,207 122,454 91,465 130,489
Net Profit 33,901 23,966 82,813 59,418 85,363

Sales Performance

Milestones

 Maruti Udyog Ltd. was incorporated.

1981

 Stepped into a JV with SMC of Japan.

1982

 Maruti 800, a 796 cc hatchback, India's first affordable car

1983 was produced.

 Installed capacity reached 40,000 units. Omni, a 796 cc MUV

1984 was in production.

 Launch of Maruti Gypsy (970cc, 4WD off-road vehicle).

1985

 Produced 100,000 vehicles (cumulative production).

1986

 Exported first lot of 500 cars to Hungary.

1987

 Installed capacity increased to 100,000 units.

1988

 SMC increases its stake to 50 per cent.

1992

 Produced the 1 millionth vehicle since the commencement of

1994 production.

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  Second plant launched, the installed capacity reached
1995 200,000 units.

 Launch of 24-hour emergency on-road vehicle service.

1996

 Produced the 2 millionth vehicle since the commencement of

1997 production.

 Launch of website as part of CRM initiatives.

1998

 Launch of Maruti - Suzuki innovative traffic beat in Delhi and

1999 Chennai as social initiatives.

 IDTR (Institute of Driving Training and Research) launched

2000 jointly with Delhi government to promote safe driving habits.

 Launch of customer information centres in Hyderabad,

2001 Bangalore, and Chennai.

 SMC increases its stake to 54.2 per cent.

 Launch of Maruti Finance with 10 finance companies in
2002 Mumbai.
 Start of Maruti True value in Mumbai.

 Production of 4 millionth vehicle.

 Listed on BSE and NSE after a public issue oversubscribed 10
2003
times.

 Maruti closed the financial year 2003-04 with an annual sale

of 472122 units, the highest ever since the company began
2004
operations 20 years ago.

 The fiftieth lakh car rolls out in April, 2005.

2005

Rewards and Accolades

16
  Number one in JD Power SSI for the second consecutive year.
 Number one in JD Power CSI for the sixth time in a row - the
only car to win it so many times.
 M800, WagonR and Swift topped their segments in the TNS
Total Customer Satisfaction Study Leadership in the JD
Power Initial Quality Study - Alto number one in its segment
for the 2nd time in a row, Esteem number one in its segment
for the 3rd year in a row, Swift number one in the premium
compact segment.
 WagonR and Esteem top their segments in the JD Power
APEAL study.
2005
 TNS ranks Maruti 4th in the Corporate Reputation Strength
(CSR) study (#1 in Auto sector)-Feb 05.
 Maruti bagged the "Manufacturer of the year" award from
Autocar-CNBC (2nd time in a row)-Feb 05.
 First Indian car manufacturer to reach 5 million vehicles
sales.
 Business World ranks Maruti among top five most respected
companies in India-Oct 04.
 Maruti ranked among top ten (Rank7) greenest companies in
India by Business Today - Sep '04

 Maruti Suzuki was No. 1 in Customer satisfaction, No. 1 in

Sales Satisfaction No.1 in Product Quality (Esteem and Alto)
and No. 1 in Product Appeal (Esteem and Wagon R).
 No. 1 in Total Customer Satisfaction (Maruti 800, Zen and
Alto).
 Business World ranked us among the country's five most
2004 respected companies.
 Business World ranked us the country's most respected
automobile company.
 Voted Manufacturer of the year by CNBC.
 Voted one of India's Greenest Companies by Business Today-
AC Nielson ORG-MARG.

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Company Flashback
Maruti Udyog Limited (MUL), established in 1981, had a prime objective to meet the
growing demand of a personal mode of transport, which is caused due to lack of
efficient public transport system. The incorporation of the company was through an Act
of Parliament.

Suzuki Motor Company of Japan was chosen from seven other prospective partners
worldwide. Suzuki was due not only to its undisputed leadership in small cars but also
to commitments to actively bring to MUL contemporary technology and Japanese
management practices (that had catapulted Japan over USA to the status of the top auto
manufacturing country in the world).

A licence and a Joint Venture agreement were signed between Government of India and
Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982.

The Objectives of MUL are as cited below:

 Modernization of the Indian Automobile Industry.

 Production of fuel-efficient vehicles to conserve scarce resources.
 Production of large number of motor vehicles which was necessary for economic
growth.

In 2001, MUL became one of the first automobile companies, globally, to be honoured
with an ISO 9000:2000 certificate. The production/ R&D is spread across 297 acres with
3 fully-integrated production facilities. The MUL plant has already rolled out 4.3 million
vehicles. The fact says that, on an average two vehicles roll out of the factory in every
single minute. The company takes approximately 14 hours to make a car. Not only this,
with range of 11 models in 50 variants, Maruti Suzuki fits every car-buyer's budget and
any dream.

18
Factors influencing Car Demand

19
Regression Analysis for Sales
Company Name: Maruti Udyog Pvt. Ltd.

Sales Trend over the last five years

Time Product of Time

Sales(in 2
Year Deviation( (X ) Deviations and
Units)(Y)
X) Sales (XY)
2005 569850 -2 4 -1139700
2006 289440 -1 1 -289440
2007 569850 0 0 0
2008 764942 1 1 764942
2009 532500 2 4 1065000
total 2726582 0 10 400802

Regression Equation of Y on X is

Y = a + bX

For finding the values of a and b,

a (constant variable) = ∑y / n

= 545316.4

b (rate of growth) = ∑Xy / ∑X2

= 40080.2

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Hence, the regression equation is Y = a + bX

Y = 545316.4 + 40080.2x

With the help of this equation, we can find out the trend values for the next five years as
follows:

Y= 545316.4 + 40080.2X
Year (Y) X
(In thousands of Rs.)
2010 3 665557
2011 4 705637.2
2012 5 745717.4
2013 6 785797.6
2014 7 825877.8

Chart Title
900000
800000
700000
600000
500000
400000
300000
200000
100000
0 years
2005 2006 2007 2008 2009 2010 sales in2012
2011 units 2013 2014

It is expected that per head disposable income in India will grow at CAGR of 12.11%
from fiscal year (FY) 2007 to FY 2010. It is likely to boost the purchasing power of the
population, and consequently, the sale of cars will increase. Car stock per 1000
population is expected to increase at a CAGR of 9.14% during the forecasted period
from FY2007 to FY2010. New passenger car registration is expected to grow at a CAGR
of 11.41% during the forecasted period.

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Industry and Consumer Trends fuelling Demand in the
Auto Sector in India

Rate of Growth in GDP

The economy of India, measured in USD exchange-rate terms, is the twelfth largest in
the world, with a GDP of around $1 trillion (2008). It recorded a GDP growth rate of
9.1% for the fiscal year 2007–2008 which makes it the second fastest big emerging
economy, after China, in the world. At this rate of sustained growth many economists
forecast that India would, over the coming decades, have a more pronounced economic
effect on the world stage.

This rise in economic growth rate can influence the automotive sector in many ways.
Foreign manufacturer interest, increase in consumer spending, easy access to finance,
are just some of the factors that will be impacted positively by sustained GDP growth
rate.

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Increase in Family Income

The top 10 towns in India with highest family income are shown above. These are tier-
II and tier-III towns with the population having a good purchasing power. As time
progresses, the per-capita income across other towns will also increase; as a result of
which many more towns will be added to this group.

Needless to say, the demand for automobiles will definitely see a spurt from these
townships.

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Increase in Remittances

Inward Remittances in India over the last 15 years

An increase in inward remittances will add to the disposable income of the middle-class,
thereby increasing their purchasing power. This will result in a desire to attain a higher
status in the society and increase the demand for automobiles.

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Easy Access to Finance

Increased Consumer Spending

With a large number of Indian and foreign banks opening branches all over India and
expanding at a fast rate, access to finance for purchase of 2-wheelers and 4-wheelers
won’t be much of a bother for the Indian middle class. Non-Banking Finance Companies
(NBFCs) can also play a vital role in providing timely finance to prospective customers.
This will enable larger sections of the demographic to purchase automobiles.

25
Increased Consumer Spending

The above figure shows how over the years the size of the middle-income segment has
increased and how it will increase in the future. Clearly, there’s a huge potential for
automobile manufacturers to tap this potential market.

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Increasing Volume of Exports

Past trends can be reliable indicators of future market trends, especially when economic
and other conditions remain relatively stable to support growth. The past data for auto
exports and component exports is very strong and there’s no reason to believe that such
a trend will not continue in the future.

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Increased Presence of Multinational Companies

Over the years, multi-national companies like Hyundai, Suzuki, Toyota, General Motors
and now Volkswagen have stepped up their presence in India. They recognize the true
potential of the automotive sector in India.

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More Women Workforce

As more and more women show their willingness to join the active work-force, auto
companies will come out with differentiated offerings to cater to this sector. Some two
wheeler companies like TVS have already come out with niche offerings which are
meant for career-oriented women.

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Conclusion
Competition is no longer limited to local, regional, or even national markets but is
increasingly becoming global in nature. Industry consolidation continues to have a
major impact on company market share and ranking, on business economics, and on the
competitive environment. Therefore, it has become even more important to monitor the
market shares, strategies, positioning, advertising and promotion budgets, supply chain
synergies, and outlook of these players on a global basis.
In the automobile industry, a company cannot survive without continuous technical
improvement and the creation of new product lines containing such improvements.
What seem today to be stable product lines with an indefinite future stand a good
chance of being superseded and phased out.
In hindsight the automobile industry is a classic example of the scope, benefits and
purpose of demand forecasting. Perhaps no other industry uses demand forecasting to
the extent auto manufacturing concerns do. Indeed, it was a pleasure for our group to
have been given the opportunity to conduct such an analysis that embodies and
captures this essence.

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Bibliography
www.frost.com
www.rncos.com
www.nationalanalysts.com
www.surfindia.com
www.marutisuzuki.com
www.wikipedia.org
www.bharatbook.com
www.aiacanada.com
www.pr.com
www.automotiveindustrymarket.com
www.justauto.com
www.automotiveuniverse.net

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