Locational advantages-physical advANtage

Factors influencing location are

1. Availability of market and demand- end product
being difficult to transport, it needs ready market
2. Availability of logistics and transportation for raw
materials
3. need of cheap labour-human advatage
4. Availability of energy
5. Policy regulations of the government - regions
where its prohibited (ecologically sensitive) and
supported (SEZs)

human advatages

1. Ease the policy changes to help automobile

sector adapt to the changes
2. Speedy adoption of new technologies by
industry
3. Digitization of automobile sector - enhanced
research, advertisement, delivery and service of
automobiles
4. Enhance the sustained rural demand as well as
middle income sector demand

input:
1. Raw materials: It requires a wide range of
inputs from steel, non-ferrois metals to wood,
electronic cables etc. Thus it can be located in
vicinity of other industries not as a standalone.
3. Skilled workforce: Labour needs to be skilled or
use of robots like in Japan.

Factors:
1) cheap land availability: These industries need
large tract of land to setup
assembly lines, administrative buildings and testing
facilities. 2) Cheap
Skilled Labour: These industries are capital
intensive with high capital
investment per capita employee. Industry prefers
cheap and easy availability of
skilled labour and if government initiatives for skill
developments are ongoing
in an area, then it is also preferred.
5) Closeness to final customer: It is preferred to
serve the
customer better with reduced transportation cost of
the final product and learn
the change in their taste to update manufacturing
plans. 6) Closeness of
suppliers: Industry has to interact with number of
OEMs for window glass,
seats, wipers, tyres etc. If these are at a distance
from the manufacturing
plant, it will increase the input cost for final
product making them less
competitive in the market. Hence, closeness is
preferred with OEMs.
The stages of manufacture of a car is broken down into several stages of which the
following are the main lines:
 
Stamping is the beginning of a vehic le's manufacturing process and involves
converting the raw materials received in the form of steel sheets into body parts.
Sheet metal is the second step in the manufacturing process and involves joining the
sheet metal and aluminum parts together to form the box.
Painting, the third step in the manufacturing process, aims to protect the body against
corrosion and give it its final appearance. To seal the vehicles, putty is applied to each
vehicle.
Assembly is the last step in the manufacturing process. At this stage are assembled
and mounted the mechanical elements, the driving position, mirrors and the interior
trim of the vehicle.

Every system has things called 'inputs' and 'outputs'. In your family car, the gasoline in
the tank is an energy input to your car. The output of your car is the conversion of
this input (gasoline) into motion. ...
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