Microeconomic Factors in Automobile Industry in India

Automobile Industry Hailed as ‘the industry of industries’ by Peter Drucker, the founding father of the study of management, in 1946, the automobile industry had evolved continuously with changing times from craft production in 1890s to mass production in 1910s to lean production techniques in the 1970s. The Asian countries, mainly by Japan, China and India, registered a 9% increase in production over last year, constituting 35.9% of the global production. In fact China and India posted positive growth rate over 2003. This supply mainly catered to meet the demand from households where the automobiles constituted the second largest expenditure item next only to housing. Thus the global automobile industry dominated by Europe, US,†¦show more content†¦Typically a customer upgrades from one segment to higher segment and the presence across various segments ensures that the company retains its existing customers. 2. Efficient Operations Competition in PV segment is very intense and this requires the existing players to initiate steps to reduce their cost of production. Effective and successful operation methods like platform commonality, reduction in vendor base and workforce rationalization can help a company immensely. 3. Wide Dealer Network and Availability of Finance A wide dealer network helps the company serve customers over wide geographical area. For e.g. Maruti has used its available wide service network as point of difference over competitors. The companies are tying up with the financial institutions having rural presence to provide additional financing options to customers in such areas. 4. Access to Latest Technologies Indian PV segment is highly competitive with as many as 14 players operating in it and more than 80 models on the offering. But still any new model launch meets with increase in sales volume for the company. Moreover in a time when a substantial portion of Indian customer is looking to upgrade in higher segment, companies with latest technologies and latest models will catch more attentions 5. Price of the Car Price of the car is one ofShow MoreRelatedImpact Of The Automobile Industry On The Auto Industry816 Words   |  4 Pages The automobile industry throughout the years has been a major player in the economic structures of society. The industry as a whole has contributed to all areas of micro, macro, and international economics in a way that not a whole lot of industries have. The automobile industry was not created overnight by a single inventor. Numerous companies have come and gone throughout the history of the automobile. Governments have bailed numerous corporations out, the industry has unemployment due toRead MoreBmw (Project Proposal on Bmw)1635 Words   |  7 Pagesmotorcycle manufacturer in the whole world. 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