A Dissertation Report on

“Auto parts & Accessories Manufacturing”

SUBMITTED AS

PARTIAL FULFILMENT OF TWO YEARS FULLTIME

POSTGRADUATE DIPLOMA IN MANAGEMENT

SUBMITTED BY

Ashish Kumar

Roll No.: 23019

Batch: (2023-2025)

(BATCH 2020-2022)

ACKNOWLEDGEMENT

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I am highly thankful to DR. D. Y. PATIL B-SCHOOL for allowing me to work on this report
and completing the report as partial fulfillment of my course.

Further, I am paying my gratitude to Dr. Amol Gawande, Director, Dr. D. Y. Patil B-School for
his encouragement and endless motivation during the completion of the report.

This report would have been a dream without the support of Dr. Atul Kumar, guide. He has been
a great source of inspiration for me. My special thanks to him for his co-operation and special
guidance.

I am also thankful to all faculties of Dr. D. Y. Patil B-School as well as my friends who helped
me in the completion of this report.

Last but not least I am grateful to all those visible and invisible hands that helped me throughout
the successful completion of this project.

(Ashish kumar)

DECLARATION

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I hereby declare that the report submitted by me to the DR. D. Y. PATIL B-SCHOOL is a
beneficial work undertaken by me for the fulfillment of the award of POSTGRADUATE
DIPLOMA IN MANAGEMENT, same is not submitted to any other college or institution.

Date:15/05/2024

Place: Pune Ashish Kumar

Table of Contents

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Executive Summary……………………………………… 5
Objectives…………………………………………………. 7
Industry Analysis……………………………………. 8
Conclusions………………………………………………. 44
Key Learnings……………………………………………..
References…………………………………………………. 45

Executive Summary

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 Objectives
1. To study the current trends in Auto parts & Accessories Manufacturing.

2. To understand key factors responsible for the growth of the Auto parts & Accessories

Manufacturing.

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 Industry Analysis
Industry Overview

Market Size and Growth: The global auto parts and accessories market has experienced
steady growth over the years, driven by factors such as increasing vehicle production,
technological advancements, and growing demand for aftermarket products.

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Key Players: Major players in the industry include companies like Bosch, Continental AG,
Denso Corporation, Magna International, and Delphi Automotive.

Product Segmentation: The industry produces a wide range of components and accessories,
including engine parts, electrical and electronic systems, chassis systems, interior and
exterior accessories, and performance parts.

Supply Chain Dynamics: The industry's supply chain is complex, involving raw material
suppliers, component manufacturers, assembly plants, and distribution networks.
Globalization has led to the emergence of extensive supply chains spanning multiple
countries.

Technological Trends: The industry is witnessing significant technological advancements,

including the development of electric and autonomous vehicle components, lightweight
materials, advanced safety systems, and connected car technologies.

Regulatory Environment: Stringent regulatory requirements regarding emissions, safety

standards, and fuel efficiency drive innovation and compliance efforts within the industry.

Current Updates:

Electric Vehicle (EV) Revolution: The shift towards electric vehicles is reshaping the auto
parts industry, with manufacturers investing in EV components such as batteries, electric
motors, and power electronics.

Connected Car Technologies: The integration of advanced electronics and connectivity

features in vehicles is driving demand for sensors, infotainment systems, and telematics
solutions.

Supply Chain Disruptions: The COVID-19 pandemic has highlighted vulnerabilities in global
supply chains, leading to disruptions in production and distribution. Manufacturers are
adopting strategies to mitigate risks and build more resilient supply networks.

Focus on Sustainability: There is growing emphasis on sustainability across the automotive

industry, leading to increased adoption of eco-friendly materials, recycling initiatives, and
energy-efficient manufacturing processes.

Digital Transformation: Industry players are leveraging digital technologies such as IoT, AI,
and data analytics to optimize production processes, improve product quality, and enhance
customer experiences.
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 Shift towards Aftermarket Services: As vehicles become more complex, there is a growing
demand for aftermarket parts and services, including maintenance, repair, and customization
solutions.

Trade Dynamics: Trade tensions and geopolitical uncertainties continue to impact the
industry, with manufacturers closely monitoring developments in trade policies and tariffs.

Overall, the auto parts and accessories manufacturing industry is experiencing rapid
evolution driven by technological innovation, changing consumer preferences, and regulatory
requirements. Adaptability and innovation are key for companies to thrive in this
dynamic environment.

Capacity Analysis

Production Capacity:

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Evaluate the production capacity of individual manufacturing facilities, including factors such as
machinery, equipment, and manpower.
Consider the utilization rate of production lines and the potential for expansion or optimization.
Assess the efficiency of production processes and identify any bottlenecks or constraints that
may affect capacity.
2. Facility Infrastructure:

Examine the infrastructure of manufacturing plants, including size, layout, and technological
capabilities.
Determine the flexibility of facilities to accommodate changes in production volumes or product
mix.
Evaluate the geographical distribution of facilities and their proximity to key markets or
suppliers.
3. Supply Chain Integration:

Analyze the integration of supply chains to ensure smooth procurement of raw materials,
components, and sub-assemblies.
Assess the resilience of supply chains to disruptions and the ability to adapt to changing market
conditions.
Consider partnerships or collaborations with suppliers to enhance efficiency and reduce lead
times.
4. Technology and Innovation:

Evaluate the adoption of advanced technologies such as automation, robotics, and digital
manufacturing.
Assess investments in research and development to drive innovation and improve product
quality.
Consider the implementation of Industry 4.0 principles to optimize production processes and
enhance competitiveness.
5. Human Resources and Skills:

Assess the availability of skilled labor and technical expertise required for manufacturing
operations.
Identify training programs or initiatives to upskill employees and enhance productivity.
Consider workforce planning strategies to address potential labor shortages or skill gaps.
6. Regulatory Compliance:

Ensure compliance with regulatory requirements related to product safety, quality standards, and
environmental regulations.
Stay updated on evolving regulations and industry standards that may impact manufacturing
operations.
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Implement quality management systems and procedures to maintain consistent product quality
and compliance.
7. Market Demand and Forecasting:

Analyze market demand trends and forecasts to align production capacity with future
requirements.
Monitor changes in consumer preferences, technological advancements, and competitive
dynamics.
Conduct regular market assessments to identify opportunities for product diversification or
expansion.
8. Risk Management:

Identify potential risks and uncertainties that may impact production capacity, such as supply
chain disruptions, geopolitical factors, or economic fluctuations.
Develop contingency plans and risk mitigation strategies to address potential challenges and
minimize disruptions.
Implement robust monitoring and control systems to track key performance indicators and assess
operational resilience.

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 Top Management Profile
1.Chief Executive Officer (CEO):

The CEO provides strategic direction and leadership for the company.
Responsible for setting overall goals, overseeing operations, and driving growth initiatives.
Represents the company in external communications, partnerships, and industry engagements.
2. Chief Operations Officer (COO) or Chief Manufacturing Officer (CMO):

Oversees the company's manufacturing operations, ensuring efficiency, quality, and cost-
effectiveness.
Manages production facilities, supply chain, and logistics to meet production targets and
customer demands.
Implements strategies for process improvement, technology adoption, and operational
excellence.
3. Chief Financial Officer (CFO):

Manages the company's financial affairs, including budgeting, financial planning, and risk
management.
Oversees accounting, treasury, and investor relations functions.
Provides financial insights and analysis to support strategic decision-making and business
growth.
4. Chief Technology Officer (CTO) or Chief Innovation Officer:

Leads the company's technology and innovation initiatives, driving product development and
R&D efforts.
Identifies emerging technologies and trends relevant to the auto parts industry.
Collaborates with engineering teams to develop innovative products and solutions.
5. Chief Marketing Officer (CMO):

Develops and executes marketing strategies to promote the company's brand and products.
Oversees product marketing, advertising, and customer engagement initiatives.
Analyzes market trends and customer feedback to identify opportunities for product
differentiation and market expansion.
6. Chief Sales Officer (CSO) or Chief Revenue Officer (CRO):

Leads the company's sales and revenue generation efforts.

Develops sales strategies, channels, and partnerships to drive business growth.
Manages sales teams, establishes sales targets, and monitors performance metrics.
7. Chief Supply Chain Officer (CSCO) or Chief Procurement Officer (CPO):

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Responsible for managing the company's supply chain and procurement activities.
Ensures timely and cost-effective sourcing of raw materials, components, and services.
Optimizes inventory management, logistics, and distribution to support production and customer
fulfillment.
8. Chief Human Resources Officer (CHRO):

Oversees human resources management, talent acquisition, and employee development

programs.
Implements HR policies and practices to attract, retain, and motivate a skilled workforce.
Manages organizational culture, diversity initiatives, and employee relations.
9. Chief Sustainability Officer (CSO) or Environmental, Social, and Governance (ESG) Officer:

Leads the company's sustainability efforts, ensuring compliance with environmental regulations
and corporate social responsibility goals.
Develops and implements sustainability strategies, initiatives, and reporting frameworks.
Collaborates with internal and external stakeholders to drive sustainability best practices
throughout the organization.

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 Major Players

The auto parts and accessories manufacturing industry is highly diverse and comprises numerous
companies operating globally. Here are some major players in the industry:

 Bosch: Bosch is a leading global supplier of technology and services, including

automotive components such as fuel injection systems, braking systems, and electrical
systems.

 Continental AG: Continental is a German multinational company specializing in tires,

brake systems, automotive safety, and other automotive components and systems.

 Denso Corporation: Denso is a Japanese automotive supplier that produces a wide range
of components, including air conditioning systems, engine components, and electronics.

 Magna International: Magna is a Canadian-based automotive supplier that designs,

develops, and manufactures automotive systems, assemblies, modules, and components.

 Valeo: Valeo is a French multinational automotive supplier that produces a variety of

components and systems, including lighting systems, thermal systems, and powertrain
systems.

 ZF Friedrichshafen: ZF is a German multinational company that manufactures

transmissions, chassis components, steering systems, and other automotive components.

 Aisin Seiki Co., Ltd.: Aisin is a Japanese automotive components manufacturer that
produces drivetrain, body, brake, chassis, and information technology components.

 Faurecia: Faurecia is a French automotive supplier specializing in seating, interiors,

emissions control technologies, and other automotive components.

 Mahle GmbH: Mahle is a German automotive supplier that manufactures engine

components, filtration systems, thermal management systems, and other automotive
components.

 Hyundai Mobis: Hyundai Mobis is a South Korean automotive supplier that produces
chassis, cockpit modules, front-end modules, and other automotive components.

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  ZF TRW Automotive Holdings Corp.: ZF TRW, a subsidiary of ZF Friedrichshafen,
specializes in automotive safety systems, including airbag systems, braking systems, and
steering systems.

 Robert Bosch Automotive Steering GmbH: A subsidiary of Bosch, Robert Bosch

Automotive Steering focuses on steering systems for passenger cars and commercial
vehicles.

These companies represent a mix of multinational corporations with extensive product portfolios
and regional players specializing in specific automotive components and systems. They play a
crucial role in supplying components to vehicle manufacturers and aftermarket channels,
contributing to the growth and innovation of the automotive industry.

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 Pricing Policies
Pricing policies in the auto parts and accessories manufacturing industry can vary based on
factors such as market dynamics, product differentiation, competitive landscape, and customer
segmentation. Here are some common pricing strategies employed by manufacturers in this
industry:

1. Cost-Plus Pricing:

Under this strategy, manufacturers add a markup to the cost of production to determine the
selling price.

Costs may include direct materials, labor, overhead, and a desired profit margin.

This approach provides clarity and ensures that all costs are covered, but it may not reflect
market demand or competitive pricing.

2. Market-Based Pricing:

Manufacturers set prices based on prevailing market conditions, competitor pricing, and
customer demand.

Pricing decisions are influenced by factors such as product differentiation, brand perception, and
perceived value.

This strategy allows manufacturers to align prices with customer preferences and market
dynamics, but it requires ongoing monitoring and adjustment.

3. Skimming Pricing:

Manufacturers set initially high prices for new or innovative products to capitalize on early
adopters and capture maximum revenue.

Prices may be gradually lowered over time as competition increases or production costs
decrease.

This strategy is often used for premium or technologically advanced products but may limit
initial market penetration.

4. Penetration Pricing:

Manufacturers set low initial prices to quickly gain market share and stimulate demand.

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Prices may be increased later once the product gains traction and brand loyalty is established.

This strategy can help manufacturers enter new markets or compete aggressively against rivals
but may lead to lower profit margins initially.

5. Value-Based Pricing:

Manufacturers set prices based on the perceived value of their products or solutions to
customers.

Pricing reflects the benefits, features, and performance of the product relative to customer needs
and alternatives.

This strategy emphasizes communicating value propositions effectively and justifying premium
prices based on superior quality or performance.

6. Dynamic Pricing:

Manufacturers adjust prices dynamically based on real-time market conditions, demand

fluctuations, and competitive pricing.

Pricing may vary by region, customer segment, or sales channel to optimize revenue and
maximize profitability.

This strategy requires access to data analytics and pricing intelligence to make informed pricing
decisions.

7. Bundling and Discounting:

Manufacturers offer bundled packages or discounts for purchasing multiple products or

accessories together.

Bundling can enhance perceived value, encourage upselling, and increase customer loyalty.

Discounts may be offered for volume purchases, seasonal promotions, or to clear excess
inventory.

8. Geographic Pricing:

Manufacturers adjust prices based on geographic factors such as transportation costs, taxes,
tariffs, and local market conditions.

Pricing may vary by region or country to reflect differences in purchasing power and competitive
dynamics.

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Manufacturers may use a combination of these pricing strategies depending on their objectives,
product portfolio, target market, and competitive positioning. Continuous monitoring of market
trends, customer feedback, and competitor actions is essential for optimizing pricing strategies
and maximizing profitability in the auto parts and accessories manufacturing industry.

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