Auto Components manufacturing industries

India has the most competitive auto parts manufacturing industry in the world, with Indian automotive components being widely preferred by major automobile manufacturing companies. The auto component companies in India are contributing to the growth of this sector by providing genuine, cheap and reasonably priced automotive parts. The Indian automotive components industry has actively and quickly transformed from a domestic market supplier, to one of the essential auto parts supplier in the world. The Indian auto component sector has been growing at 20 per cent a year since 2000 and is projected to maintain the high-growth phase of 15-20 per cent till 2015. Growth Drivers

Rising demand for vehicles - Vehicle production grew to around 17.9 million in 2010-11 - Global Original Equipment Manufacturers (OEMs) are entering India to establish their manufacturing base Low-cost and high quality standards Low labour costs in India have resulted in a significant cost reduction, with international quality standards being duly maintained. An average cost reduction of nearly 25-30 per cent has attracted several global automobile manufacturers to set base since 1991 Availability of low cost skilled manpower India produces close to 0.4 million engineering graduates every year, and the cost of entry-level engineers is as low as US$ 8,000 a year.The country accounts for 26 per cent of the worlds Engineering Service Outsourcing (ESO) Policy initiatives - De-regulation and policy initiatives such as lower excise duties, realisation of value added tax (VAT), etc., have been implemented. Foreign direct investment (FDI) up to 100 per cent is permitted through the automatic route for manufacturers of automobiles and components

Industry Structure The Indian auto component industry is large and highly fragmented. There are around 400 major players in the auto component sector. The original equipment (OE) market is predominantly catered to by the organised sector. The 400 odd organised producers contribute around 80 per cent to this market Market Size The automotive component industry's output for the financial year 2009-10 was US$ 22 billion with a growth rate of 20 per cent, against financial year 2008-09. The Indian auto component industry has the opportunity to tap around US$ 110 billion by 2020. Major Indian auto parts makers are on track to report a strong first quarter, on the back of

robust after-sales demand and growing exports. The revenue growth rate of auto ancillary companies is expected to be in line with auto OEMs.In first quarter of the current fiscal, production by all OEMs in the auto industry grew by about 20 per cent in comparison with the corresponding quarter of last year, resulting in corresponding growth in customer demand. Exports The industry has been exporting around 13 per cent of its output. In the year 2009-10, the industry exported goods worth US$ 3.8 billion. Principal export items include replacement parts, tractor parts, motorcycle parts, piston rings, gaskets, engine valves, fuel pump nozzles, fuel injection parts, filter & filter elements, radiators, gears, leaf springs, brake assemblies & bearings, clutch facings, head lamps, auto bulbs & halogen bulbs, spark plugs and body parts.Exports, which touched US$ 5 billion in 2010-11, are expected to grow by 20-25 per cent in 2011-12. Recent Trends/Investments Besides low labour costs, Indias process-engineering expertise, applied to re-designing of production processes, has resulted in the reduction in manufacturing costs of components. As a result, India, today, has become the outsourcing hub for several global automobile manufacturers. Several large Indian auto component manufacturers are in the process of substantially investing in capacity expansion, establishing partnerships in India and abroad, acquiring companies in foreign countries establishing Greenfield ventures, Research & Development (R&D) facilities and design capabilities. Japanese car major Toyota has announced an investment of nearly Rs 1,650 crore (US$ 373.3 million) to increase the production capacity of its Indian operations by one lakh units and for increasing localisation of components by 2014 Force Motors has said that it will enter the passenger vehicle segment with the launch of a multi-purpose vehicle (MPV) by 2012, for which the company will set up a new facility in Madhya Pradesh with an initial capacity of 24,000 units per year.The company said it has signed a licencing agreement with German auto major Daimler for procuring technology for the MPV Carraro India Limited manufactures axles and transmissions for tractors and construction equipment. The company was founded in 1998 and is based in Pune, India. Carraro India Limited operates as a subsidiary of Carraro SpA. It introduced itself in India as a joint venture with Escorts Ltd. Further, expanded independently after 2 years of contract.

Auto parts maker MothersonSumi Systems Ltd (MSSL) has announced its plans to acquire an 80 per cent stake in Germany's Peguform Group from Cross Industries. The deal is expected to be closed in 2-3 months and will be funded through debt from Indian lenders, said VC Sehgal, Vice-Chairman, Motherson Group. French tyre-maker Michelin's upcoming India plant in Chennai will produce its first tyre in November 2012. The company plans to produce three lakh radial truck tyres in the first year of operations, and cater to the domestic market, according to a top official.Michelin is setting up a manufacturing unit at ThervoyKhaidigia industrial area in Tiruvallur district, near Chennai, and would be investing Rs 4,000 crore (US$ 904.98 million) over a seven-year period. Road Ahead Going forward, the automotive component industry in India displays strong potential in generating employment and promoting entrepreneurship in the country. The series of new investment plans announced by global and domestic automobile manufacturers re instates the emergence of India as a global hub for auto components. The boost in demand, with the growth of the automobile industry, will see the emergence of several new players in the industry. The huge market for auto components, and the diverse products and technology involved ensures a place and role for many. Among the smaller players in the unorganised segment, the industry could witness a shift from being standalone companies, to entering into either contract manufacturing or being ancillary units. The newly defined rulesof specialisation, development and delivery, hold the key to success in the auto component industry.

STAGE IN RESEARCH PROCESS

Define Research Problem

Review concept and theories

Formulate Hypothesis

Design Research

Collect Data

Analyze Data

Interpret and Report

1. Formulating a Research Problem:

At the very outset the researcher must single out the problem he wants to study, i.e. he must decide the general area of interest or aspect of a subject-matter that he would like to inquire into. Initially the problem may be stated in a broad general way and then the ambiguities, if any relating to the problem be solved. Then the feasibility of a particular solution has to be considered before the working formulation of a problem can be set up. The formulation of general topic into a specific research problem, thus,

constitutes the first step in a scientific inquiry. Essentially two steps are involved in formulating the research problem viz, understanding the problem thoroughly, and rephrasing the same into meaningful terms for an analytical point of view.

2. Review Concept and Theories:

Once the problem is formulated, a brief summary of it should be written down. At this juncture researcher should undertake extensive literature survey connected with the problem. For this purpose, the abstracting and indexing journals and published or unpublished bibliographies are the first place to go to. Academic journals, conference proceedings, government reports, books etc., must be tapped depending on the nature of the problem. In this process it should be remembered that one source will lead to another. The earlier study, if any which are similar to the study in hand, should be carefully studied. A good library will be a great help to the researcher at this stage.

3. Formulation of Hypothesis:
After extensive study of literature, researcher should state in clear terms the working hypothesis or hypotheses. Working hypothesis is tentative assumption made in order to draw out and test its logical or empirical consequences. As such the manner in which research hypotheses are developed in particularly important since they provide the focal point for research. They also affect the manner in which tests must be conducted in the analysis of data and indirectly the quality of data which required for the analysis. Hypothesis should be very specific and limited to the piece of research in hand because it has to be tested. The role of the hypothesis is to guide the researcher by delimitating the area of research and to keep him on the right track. It sharpens his thinking and focuses attention on the more important facets of the problem. It also indicates the type of data required and the type of methods of data analysis to be used.

4. Research Design:
The research problem having been formulated in clear cut terms, the researcher will be required to prepare a research design that is, he will have to state the conceptual structure within which research would be conducted. The preparation of such a design facilitates research to be a efficient as possible yielding maximal information. In other words, the function of research design is to provide for the collection of relevant evidence with minimal expenditure of effort, time and money. But how all these can be achieved

depends mainly on the research purpose. Research purpose may be grouped into 4 categories: i) Exploration, ii) Description, iii) Diagnosis and iv) Experimentation. A flexible research design which provides opportunity for considering many different aspects of a problem is considered appropriate if the purpose of the research study is that of exploration.

5. Determining sample design:

Study of whole population is practically not possible. It involves a great deal of time, money and energy. Hence quite often we select only a few items from the universe for our study purpose. The items so selected constitute what is technically called a sample. The researcher must decide the way of selecting a sample or what is popularly known as sample design. In other words, a sample design is a definite plan determined before any data are actually collected for obtaining a sample from a given population. Samples can be either probability samples or non-probability samples. With probability samples each element has a known probability of being included in the sample but the non-probability samples do not allow the researcher to determine this probability. Probability samples are those based on simple random sampling, systematic sampling, stratified sampling, judgment sampling and quota sampling technique.

6. Collecting the data:

It is necessary to collect data that are appropriate. There are several ways of collecting the appropriate data which differ considerably in context of money, time and other resources at the disposal of the researcher. Primary data can be collected either through experiment or through survey. If the researcher conducts an experiment, he observes some quantitative measurements, or the data, with the help of which he examines the truth contained in his hypothesis. But in case of survey data can be collected by any one or more of the following ways: By Observation Through Personal Interviews Through Telephone Interviews

By Mailing of Questionnaire Through Schedules The researcher should select one of these methods of collecting the data taking

into consideration the nature of investigation, objectives and scope of the enquiry, financial resources, available time and the desired degree of accuracy.

7. Analysis of Data:
After the data have been collected, the researcher turns to the task of analyzing them. The analysis of data requires a number of closely related operations such as establishment of categories, the application of these categories to raw data through coding, tabulation and then drawing statistical inferences. The unwieldy data should necessarily by condense into a few manageable groups and tables for further analysis. Analysis work after tabulation is generally based on the computation of various percentages; coefficients etc., by applying various well defined statistical formulae.

8. Generalizations and Interpretation:

If a hypothesis is tested and upheld several times, it may be possible for the researcher to arrive at generalization, i.e. to build a theory. As a matter of fact, the real value of research lies in its ability to arrive at certain generalization. If the researcher had no hypothesis to start with, he might seek to explain his findings on the basis of some theory. It is known as interpretation. The process of interpretation may quite often trigger off new questions which in turn may lead to further researches.

Sampling
As integral component of a research design is the sampling plan. Specifically, it address three question, whom to survey (sampling unit); how many to survey (sample size); and how to select them (sampling procedure). Hence sampling becomes enviable. A sample is only portion of the universe of population.

Methods of Sampling
Probability Sampling is also known as Random Sampling or Chance Sampling. Under this sampling design every item of the universe has an equal chance, of being

chosen for the sample. This implies that the section sample items are independent of persons making the study. Probability sampling may take form of as, Simple Random Sampling Systematic Sampling Stratified Sampling Cluster and Area Sampling Multi-Stage Sampling Non-Probability Sampling is also known as deliberate sampling, purposive and judgmental sampling. Non probability samplings are those that do not provide every item in the universe with a known chance of being included in the sample. Non probability is as. Convenience Sampling Quota Sampling Judgment Sampling Panel Sampling

Data Collection Method

Collection of data is the first step in statistics the goal of conclusion. The data collection process follows the formulation of research design. there several methods of collecting data particularly in surveys and descriptive researches, these are as follows. Observation Method Through Questionnaire Interview Method Through Schedules Warranty Cards Distributors Audits Consumer Panel

RESEARCH METHODOLOGY ADOPTED

Research Design Research method Research Instrument SAMPLING PLAN Sample Method Universe Sample size Sample Unit DATA COLLECTED Primary Secondary DATA ANALYSIS Statistical tool Exploratory and Descriptive Research Survey method Structured Questionnaire Probability Sampling (Random Sampling) 200 20 M&M Low level management Questionnaire Company data, Information from Company Website. Pie charts, graphs are used for analyzing the data.