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A

Global Country Study Report (GCSR)


ON
Automobile Industry of Mauritania
w.r.t
Business Opportunities For Gujarat And Rajasthan

Submitted To
Institute Code – 725
Institute Name: Kalol Institute of Management

Under the Guidance Of


Prof. Jignesh Patel
(Assistant Professor)

A Project Report Submitted


In Partial Fulfilment of the Requirement of the Award of the Degree
Of
Master Business Administration (MBA)

Offered By

GUJARAT TECHNOLOGY UNIVERSITY


AHMEDABAD

PREPARED By:
STUDENTS OF
MBA (SEMESTER - III/ IV)
GROUP NO: 23

YEAR: 2017-2018

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Student Declaration

We, following students, hereby declare that the Global Country Study
Report titled “study of Automobile industry in Mauritania country in
(Mauritania Country / Province & Indian State) is a result of our own work and
our indebtedness to other work publications, references, if any, have been
duly acknowledged. If we are found guilty of copying any other report or
published information and showing as our original work, or extending
plagiarism limit, I understand that we shall be liable and punishable by GTU,
which may include ‘Fail’ in examination, ‘Repeat study & re-submission of the
report’ or any other punishment that GTU may decide.

ENROLLMENT NO NAME OF STUDENTS SIGNATURE

167250592037 RAWAT VIJAYALAXMI JAGDISHBHAI

167250592003 BHUVA PRADEEP SHAMJIBHAI

167250592021 PATEL DIVYA RAKESHBHAI

Place: ------------------- Date: --------------------

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Report Completion Certificate

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Company Details

1. Name of Company : Emerald Honda


2. Address of the Company : Sector-17/A, GTS Road,
Sector- 30, Gandhinagar,
Pin-382030.
3. Contact Person Name : Mukesh Bhatti
4. Designation & Contact Details : Service Manager , 9714002555
5. Date Of Company Visit : 12/01/2018 to 26/01/2018

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Plagiarism Report

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PREFACE

The amount of knowledge in the world is doubling every ten years and
with the end of the millennium it is now expected to double every five
years. So if we plan to be in this knowledge explosion means that we
should be facing with unpredicted challenges and opportunities. How
well we address that it would depend upon, in large part of our ability to
adapt to the continuing changes. Project work like this gives an exposure
to the practical and real life experiences of the modern market.

Management education narrowly thought is a tool to train one to get a


good job and hence enables one to earn one’s livelihood. Management
education broadly thought is a method, which inculcates knowledge in
one about Planning, Organizing, Directing and Controlling. This
knowledge helps students to understand the corporate thoroughly.

For management students practical studies is very important. It helps


them to improve their knowledge about various market trends.
Management students are concerned with marketing, finance, HR etc.
Theories do not teach unless accompanied by the working in original
situations. This global country study report is also a part of our study.

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Acknowledgement

It is our pleasure to present this project on “study of Automobile industry in


Mauritania country”. There are so many people involved in this project,
without their support this project was not possible for us to prepare such a
project report. Who had guided us in our project and made it really a
successful one. We are also thankful prof. Jignesh Patel, and all other faculty
members, who helped us and guide us in preparing this project report. We
have tried our level best to present the available information in the best
possible manner. In the end we wish to thank all those whose names have
not been mentioned above, but who have directly or indirectly helped in
various ways in successfully carrying out this project.

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Index

S. No Content Page No.


Chapter -1

1 About Mauritania country 12

2 Overview of industries, trade and 30


commerce in the Mauritania of study

3 About Automobile industry 36

Chapter-2

4 STEEPLED analysis of the Automobile 74


industry

5 SWOT analysis of the Automobile 87


industry

Chapter-3

6 Overview of Rajasthan state 93

7 Overview of the Automobile industry 100


in Rajasthan state

8 SOWT analysis of Automobile 108


industry in Rajasthan state

9 Finding in terms of comparative 110


analysis

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 MAURITANIA COUNTRY OVERVIEW

Official name Islamic republic of Mauritania


Short form Mauritania country
Country calling code +222
Time zone GMT(UTC+0)
Capital city Nouakchott
President Mohamed Abdul Aziz
Geography Location-Africa and is bordered by the Atlantic ocean to the west
Area-total(1,030,000 km)
(400,000 sq mi)
Water-0.03%
Climate-Saharan climate
Language Official Language-Arabic Recognized-hassaniya Arabic National
language-pulaar, Soninke, wolof

Currency Ouguiya(MRO)
Exchange Rate India Rupee 0.177 5.644
Pakistan Rupee 0.291 3.438
American Dollar 0.0028 361
Religion Islam
Flag

Anthem Baba ould cheikh


Population 2017=4,269,116
2016=4.301 million
Natural resource Iron ore, crude, gold, cement, quartz, copper, gypsum, salt, and
steel
Industries Tourism Industry, Fishing Industry, Education
Industry,Textile,Automobile
Export Partners China, Italy, Japan, French ,Spain
Import Partners China, Netherlands, united states, French, brazil ,Germany, Spain

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Mauritania Geographic location

 Mauritania, a nation in the western area of the landmass of Africa, is for


the most part level, its 1,030,700 square kilometers framing huge, dry
fields broken by incidental edges and cliff like outcroppings. It outskirts the
North Atlantic Sea, amongst Senegal and Western Sahara, Mali and Algeria.
It is considered piece of both the Sahel and the Maghreb. A series of scarps
confront southwest, longitudinally bisecting these fields in the focal point
of the nation. The scarps likewise isolate a progression of sandstone levels,
the most noteworthy of which is the Adrar Level, achieving a height of 500
meters. Spring-nourished desert gardens lie at the foot of a portion of the
scarps. Segregated pinnacles, regularly rich in minerals, transcend the
levels the littler pinnacles are called guelbs and the bigger ones kedias. The
concentric Guelber Richat is an unmistakable element of the north-focal
district. Kediet ej Jill, close to the city of Zouirat, has a rise of 1,000 meters
and is the most noteworthy pinnacle.
 Around three-fourths of Mauritania is forsake or semi desert. Because of
broadened, serious dry season and the be desert has been extending since
the mid-1960s. The levels step by step dive toward the upper east to the
desolate El Djouf, or "Purge Quarter," a tremendous area of vast sand hills
that converges into the Sahara Abandon. Toward the west, between the

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sea and the levels, are rotating regions of clayey fields and sand hills, some
of which move from place to put, continuously moved by highbred.
 Belts of normal vegetation, relating to the precipitation design, stretch out
from east to west and range from hints of tropical backwoods along the
Senegal Waterway to brush and savanna in the southeast. Just sandy
abandon is found in the inside and north of the nation.

Area of Mauritania Total-1,030,700 km


country Land-400,000 sq mi
Water-0.03%

Border of land Total-5,074 km


Border countries- Algeria
(463km),Mali(2,237km),Senegal(813km),
western Sahara(1,561 km)
Coastline- 745
Maritime claims Territorial sea-12 nmi (22.2 km; 13.8mi) contiguous
zone: 24nmi(44.4km;27.6mi)
Continental shelf:200nmi(370.4km;230mi)
Exclusive economic zone :200nmi(370.4km;230.2mi)
Elevation extremes Lowest point- sebkha de ndrhamcha-5m
Highest point- kediet ej jill 915m

Languages

Official language: Arabic

 Arabic (official and national)


 Pulaar
 Soninke
 Wolof (all national languages)

 French

 Hassaniya(a variety of Arabic)

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Mauritania currency

Mauritania currency exchange rate

India Rupee 0.177 5.644


Pakistan Rupee 0.291 3.438
American Dollar 0.0028 361

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‫‪Mauritania Religions‬‬

‫‪Mauritania is totally Islam religion people there thought and belif as per their‬‬
‫‪religion. In Islam they are celebtate eid-al-ullad, moharam,they are having fast of‬‬
‫‪30days‬‬

‫‪Flag of Mauritania‬‬

‫‪The flag consists of a gold start and crescent on a light green field‬‬

‫‪National anthem of Mauritania‬‬

‫‪Language Arabic‬‬

‫كن لالله نارصا وأنكر المناكرا‬


‫وكن مع الحق الذي يرضاه منك دائرا‬
‫وال تعد نافعا سواه أو ضائرا‬
‫ى‬
‫المصطف ومت عليه سائرا‬ ‫واسلك سبيل‬
‫ى‬
‫يكف اآلخرا‬ ‫ى‬
‫فما كف أولنا أليس ي‬
‫ى‬
‫وكن لقوم احدثوا يف أمره مهاجرا‬
‫قد موهوا بشبه واعتذروا معاذرا‬
‫وزعموا مزاعما وسودوا دفاترا‬
‫ى‬
‫الحوارصا‬ ‫واحتنكوا أهل الفال واحتنكوا‬
‫وأورثت أكابر بدعتها أصاغرا‬
‫ى‬
‫وإن دعا مجادل يف أمرهم إىل مرا‬
‫فال تمار فيهم إال مراء ظاه‬

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ANTHEM LYRICS IN OFFICIAL LANGUAGE

Kun lil-ilahi nasiran, wa-ankir al-manakira


Wa-kun maca l-haqqi l-ladhi yarda-hu minka da’ira
Wa-la ta cuddu nafi ca siwa-hu aw da’ira
Wa-sluk sabila l-mustafa wa-mutt calayhi sa’ira
Fa-ma kafa awwalana a-laysa yakfi l-akhira
Wa-kun li-qawmin ahdathu fi amrihi muhajira
Qad mawwahu bi-shibhin wa- ctadhiru ma cadhira,
Wa-za camu maza cima wa-sawwadu dafatira,
Wa-htanaku ahla l-fala, wa-htanaku l-hawadira
Wa-awrathat akabira bid catuha asaghira
Wa-in da ca mujadilun fi-amri-him ila mira
Fa-la tumari fihim illa mira’a zahira

ANTHEMLYRICS ENGLISH TRANSLATION

Be a helper for God, and censure what is forbidden,


And turn with the law which, which He wants you to follow,
Hold no one to be useful or harmful, except for Him,
And walk the path of the chosen one, and die while you are on it!
For what was sufficient for the first of us, is sufficient for the last one, too.
And leave those people who do evil things with respect to God.
They misrepresented him by making him similar, and made all kinds of excuses.
They made bold claims, and blackened notebooks.
They let the nomads and the sedentary people, both make bitter experiences,
and the great sins of their [doctrinal] innovations bequeathed small.
And just in case a disputant calls you to dispute about their claims,
Do not, then, dispute on them, except by way of an external dispute.

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Mauritania ruling party
The parties Union for Republic

The Union for the Republic (UPR) is a political gathering in Mauritania. The

gathering was shaped in 2009 Mohamed Ould Abdel Aziz after he surrendered from
the military to keep running for Leader of Mauritania. Aziz surrendered decision, as
the Leader of Mauritania can’t be an individual from any party. The party likewise
won 13 of the 17 situates up for re-race to the Mauritanian senate in 2009, giving the
UPR control of an aggregate of 38 of the 53 senate seats

Starting at 2011, the UPR is a piece of the decision coalition of the Dominant part and
has a greater part in the National Get together.

National Rally for Reform and Development

The National Rally for change and improvement frequently known by its abbreviated
Arabic name Tewassoul, is and Islamist political gathering in Mauritania. The
gathering set forward their pioneer, Mohamed jemil ould Mansour, as their
possibility for the 2009 Mauritanian presidential decision. The gathering is a piece of
the Muslim Fraternity, which is viewed as a psychological militant association by the
administration of Bahrain, Egypt, Russia, Saudi Arabia, Syria and the Assembled
Middle Easterner Emirates. Tewassoul is an individual from the resistance
coordination of the popularity based Restriction, and at present has 4 situates in the
National Get together, and 1 situate in the senate.

Action for change

The Activity for change (Air conditioning) was apolitical gathering in Mauritania. The
gathering was driven by Messaoud ould Belkheir, and crusaded for more prominent
rights for Mauritania’s Haratin and dark populaces. The gathering was prohibited in
January 2002.

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Appointive History

The principal race challenged by the air conditioner was the 1996 parliamentary
decision, with the gathering coming third, with 5.3% of the vote and 1 situate in
parliament. The gathering additionally went ahead to challenge the 2001
parliamentary race, winning 5.5% of the well known vote and 4 out of 81 seats.

Disintegration

The gathering was restricted in January 2002 after allegations by the legislature the
gathering undermined Mauritanian national solidarity and was debilitating
Mauritania’s relations with Senegal. The gathering was permitted to keep its four
parliamentary seats.

LATEST NEWS OF MAURITANIA

1) High Court expelled a case recorded by two plastic packs


merchants encouraging it to drop the boycott however the Court
decided that natural concerns were more essential than business
interests.
 Kenya has now turned out to be one of more than 40 nations worldwide as far
as possible or assessments on plastic sacks, nearby nations from the United
Kingdom to China to other African nations, including Mauritania, Eritrea and
Rwanda, where fresh introductions are looked for plastic packs at the air
terminal. It took Kenya ten years to pass a boycott that not every person likes.
 Kenya is undermining to fine or detain any individual who makes offers or
imports plastic sacks, including neighbourhood shops offering junk packs or
vacationers meandering out of the air terminal with an obligation free go
ahead, the New York Times reports. In Africa, Kenya is one of a few countries,
including Cameroon, Guinea-Bissau, Mali, Tanzania, Uganda, Ethiopia,
Mauritania and Malawi that have established laws against the sacks.
Exceptions were made for those creating plastic packs utilized for modern
purposes.

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 The UN Environment Program (UNEP) gauges that Kenyan grocery stores
distribute upwards of 100 million plastic sacks each year.
 "On the off chance that we proceed with like this, by 2050, we will have more
plastic in the sea than angle", he said.

2) US warned Mauritania’s ‘total failure’ on slavery should rule out


trade benefits
US labour unions cite Mauritania’s unwillingness to act on slavery as Trump
administration is urged to deny country duty-free exports

 The routine abuse of thousands of enslaved Mauritanians, including rape,


beatings and unpaid labour, should prevent the African republic from
receiving US trade benefits, American labour unions have said.
 Mauritania, which has one of the highest rates of modern-day slavery in the
world and has been roundly criticised for its poor human rights record, is
currently on a list of countries that benefit from the African Growth and
Opportunity Act (Agoa). The act, designed to promote the economic
development of countries that can show they uphold human rights and meet
labour standards, enables African countries to export goods duty-free to US
markets.
 The US trade union AFL-CIO, the American Federation of Labour and Congress
of Industrial Organizations, this week called on the US trade representative to
remove Mauritania from the roster of approved countries.

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 “The government of Mauritania routinely fails to conduct investigations into
cases of slavery, rarely pursues prosecutions for those responsible for the
practice and fails to ensure access to remedy or otherwise support victims,”
the union wrote in a petition, adding that the state harasses and imprisons
anti-slavery activists and will not publicly acknowledge the continued
existence of slavery.

3) Mauritania: Sahel youths brainstorm on pressing issues

 Youths from Africa have urged their governments to help end poverty, mass
unemployment and the harmful effects of climate change.
 The call was made during a conference in Mauritania’s capital Nouakchott
which brought together participants from the diaspora, Sahel and Maghreb
regions.
 “What we have witnessed here has been a fruitful dialogue sometimes tough
but fruitful because it is intended to find questions to pressing issues in the
region especially those which directly affect the youth,” a Sahel region expert,
Mamadou Diouf said.
 A representative of Mauritanian youths said: “Several points were adopted
during the meeting including issues related to employment, peace and
security, Education and entrepreneurship among young people.”
 The Sahel region has been going through security, economic and financial
crisis. The most challenging however has been the security aspect due to
increased terrorism and the rise of radical groups. Authorities of the region
believe an atmosphere of peace will help speed up economic development.
 During the conference member states adopted an urgent strategic plan for
the youth.
 “A selection was done among youths of the various countries concerned. Let’s
not forget that the project targets 1250 young people that is 250 in each
country. It was really difficult to bring all these youth together for the
meeting. That is why we identified at least five in every country,” the youth
representative for G5 Sahel countries, Aminata Bilal said.
 The dialogue falls within the framework of following up actions taken at the

national level as well as the vision of G5 countries. But the lack of vocational

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training structures and supervision centres to orientate young people is a
major challenge for the youths and governments of the countries concerned.

4) Mauritanian opposition slams constitution poll results

85% of Mauritanians support ruling party’s proposed constitutional changes,


according to official results of Saturday poll

NOUAKCHOTT

 Mauritanian opposition figures have decried results of a Saturday referendum


in which 85 percent of eligible voters reportedly voiced support for
constitutional changes proposed by the country’s ruling party, according to
Mauritania’s official electoral commission.
 Mauritanians voted Saturday on the proposed amendments, which, if
enacted, would do away with the country’s Senate and High Court of Justice;
establish a system of regional administrative councils; adopt a proportional
system in national elections; and change Mauritania’s national flag, among
other things.
 The referendum, however, was boycotted by the country’s main opposition
parties amid widespread accusations of voter fraud by the ruling party of
President Mohamed Ould Abdel Aziz.
 Early Monday morning, Mauritania’s Independent National Electoral
Commission (INEC) announced that the ‘Yes’ vote had overwhelmingly
prevailed with at least 85 percent of ballots cast.
 According to the INEC, 53 percent of the country’s registered voters had taken
part in the poll.
 Members of the Mauritanian opposition, however, have been quick to cry
foul, alleging widespread vote fraud.
 Speaking to reporters late Monday, Al-Hassan Ould Mohamed, head of
Mauritania’s Institution of Democratic Opposition (a loose coalition of

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opposition parties), slammed what he described as the “fraud and abuse” to
which Mauritanian voters had been subjected.
 Saying that poll results had been manipulated by the authorities, Ould
Mohamed condemned what he described as “the complicity of the
government, administration and senior officials [in rigging the vote] amid an
atmosphere of irresponsibility and moral degradation”.
 The INEC, he went on to allege, had “facilitated, prepared and protected” the
vote-rigging.
 Meanwhile, in stark contrast to the opposition’s claims, President Ould Abdel
Aziz’s ruling Union for the Republic party has described Saturday’s
referendum as “transparent and fair”.
 Speaking in advance of the vote, Ould Abdel Aziz had said the proposed
constitutional changes were aimed at “promoting the country’s development
and raising citizens’ standards of living”.
 He had also accused opposition groups that boycotted the poll of “attempting
to destabilize the country”.
 Ould Abdel Aziz seized power in a 2008 military coup. One year later, he won
a presidential election the integrity of which has been questioned by critics.
 Shortly before Saturday’s referendum, Ould Abdel Aziz announced he had no
plans to run for a third term as president.

5) One of Africa's newest oil producers, the Islamic Republic of


Mauritania bridges the Arab Maghreb and western sub-Saharan
Africa.

 The largely-desert country presents a cultural contrast, with an Arab-Berber


population to the north and black Africans to the south. Many of its people
are nomads.

 In the Middle Ages Mauritania was the cradle of the Almoravid movement,
which spread Islam throughout the region and for a while, controlled the
Islamic part of Spain.

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 European traders began to show interest in Mauritania in the 15th century.
France gained control of the coastal region in 1817, and in 1904 a formal
French protectorate was extended over the territory.

 Mauritania is rich in mineral resources, especially iron and ore.

 It is seen by the West as a valuable ally in the fight against Islamist militancy in
the Sahel region.

6) In an age of autocracy, meet the dissidents speaking truth to


power Strongmen are back in vogue, but these six people are
determined to defy the despots

 These are trying times. We live in an age of autocracy when strongmen (they
are almost always men) abuse their power to silence their critics, use brute
force to stop people championing the vulnerable and rob people of their
agency in the pursuit of power.
 In a world flooded with triumphant nationalist statements and declarations of
war, who speaks for the other side? Who is willing to risk solitary confinement
and be torn from loved ones to speak for the voiceless?
 We caught up with six dissidents, who have been been imprisoned for a total
of 26 years and three months, to understand what it is like to speak out in the
age of despots.

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7) Mauritania votes to abolish senate by referendum
Despite a boycott movement that called mass protests during campaigning,
85 percent of voters sided with the changes.

 Mauritanians have voted to abolish their senate and alter their national flag
by referendum, the electoral commission announced on Sunday, in a clear
victory for President Mohamed Ould Abdel Aziz the day after the vote.

 While turnout was 53.73 percent, 85 percent of voters on Saturday declared


"Yes" to changes put to a referendum when they were defeated in the Senate
in March, despite fierce criticism from a boycott movement that called mass
protests during campaigning.

 Abdel Aziz, who last week described the senate as "useless and too costly,"
has said the move to abolish the governing body would improve governance
by introducing more local forms of lawmaking.

 But the boycott movement drew broad political support from figures as
diverse as religious conservatives and anti-slavery activists.

 Members of opposition parties spearheading the boycotters held a press


conference on Sunday during which they denounced an "electoral farce which
has given way to open-air fraud," adding that people "had clearly rejected the
constitutional amendments."

 They said they would not recognise the results of the referendum, having
previously claimed the government would rig the vote.

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 The most contentious issue surrounding the vote, given that just one
opposition party campaigned for "No" while the boycott campaign attracted
several parties and civil society movements, was the turnout.

 Turnout was just 36 percent in the capital, Nouakchott, but was much higher
in the remote West African nation's rural areas, at times hitting 80 percent,
the electoral commission said.

 The boycott movement held several protests attracting thousands of


supporters, but were also prevented from demonstrating by the security
forces, which on Thursday shut down several planned rallies close to the
capital with tear gas and beat protesters back with batons.

8) Gambian community in Mauritania seeks government help


 The Gambian community in Mauritania has called for government support in
the maintenance of the sole Gambian school in Mauritania.
 “We have long been seeking help from the government, since the time of the
former regime,” said Fabala Kinteh, headmaster of the Gambian school in
Mauritania.
 He said they are faced with lots of challenges in the school but hopes are that
the narrative would change with the new government.
 The Gambian community in Mauritania made the appeal during a meeting
with the history club of the University of The Gambia which recently
concluded a research trip to Mauritania.
 Mr Kinteh called on the government to continue giving priority to the
education sector and also consider the school in Mauritania, for it is on the
verge of fading away due to myriad of challenges.
 “We want The Gambia government to intervene and help us pay our debt; the
school is occupying a rented place and paying rent has increasing been
proving difficult,” he said. “We also need support of learning facilities and the
premises itself needs thorough renovation to make it more conducive for the
students to learn and enjoy.”
 Modou Lamin Kanteh, president of the Gambian community in Mauritania,
said that presently the Gambian community is the sole sponsor of the school.

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 “It’s time the new government to help us with some expenses to maintain the
school the way it should be,” he said. “The former president had really
helped us but at the moment, we are in debt,” he said.
 Mr Kanteh said they have high hopes that the new government would step in
to help them in “these difficult times”.
 “We are really in need of help to sustain the school for this generation and
generations to come,” he said.
 Aja Saffiatou Danso, women’s president of the Gambian community, said the
government should have them in mind as they are also part of The Gambia.

9) Mauritania operators given 30 days to improve service quality


 Mauritania regulator ARE has warned mobile operators again that they are
falling short of minimum quality standards for voice and data services. The
regulator conducted tests from 10 July to 12 August of the networks.

 Voice quality was poor in 17 cities for Mauritel, 10 cities for Mattel and 34
cities for Chinguitel. The coverage of 3G data services were found lacking in
nine cities for Mauritel, 10 cities for Mattel and six for Chingutel.

 They are called on the operators to meet their obligations in terms of


coverage and quality within 30 days in the affected cities.

10) WAFU Tourney: Who Will Win the US$100K Prize Money in
Ghana?

LFA hopes for the best; team leaves Thursday; Idrissa Kaba in Ghana

 As African countries strive to secure slots to participate in the 2018 Russia


World Cup, Liberia will join seven others to fight for honors in the West Africa

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Football Union (WAFU) in Takoradi, Ghana. The national team, made up of
local stars, is expected to leave Monrovia on Thursday for Ghana. The team
will play Senegal in their first match. The tournament is from Sept. 9-24. Other
teams in the Liberian group are Gambia, Guinea, Guinea Bissau, Mali,
Mauritania and Sierra Leone. The other group members in Zone B, are Benin,
Burkina Faso, Cote d’Ivoire, Gabon, Ghana, Niger, and Nigeria.

 The technical director of the LFA, Henry Browne, told the Daily Observer
yesterday that the national team is going to participate in the tournament
with the hope that they will represent the country well. The players,
meanwhile, are aware that the winner of the tournament will be rewarded
with US$100,000; the runner-up will receive US$50,000, and third place –
US$25,000.

 According to the organizers (WAFU and Fox), air travel and accommodation
and local transportation will be provided to all participating teams.
Additionally, during the second round, in the 1/8th finals each country will
receive US$10,000, including other financial awards. The 1/8th finals are
competitions held at a single venue at the Takoradi Sports Stadium. The other
1/8th finals will be held at the Cape Coast Stadium.

 For example, if Liberia qualifies from the 1/8th finals, she will proceed to the
next finals (the knockout round). If Liberia is successful as winners in their
next game, they will be paired with other teams from the next group, for
which they will then receive US$10,000. This system of competition goes by
several names, including single-elimination tournament; Olympic system; a
bump-off; a knockout (or, knock-out); single penetration; and sudden death
tournament. From there, they will proceed to the play-off, where the real
money will be.

 And so, how prepared are the members of the national team for the WAFU
Tournament? While the team had some initial problems, the players’ previous
two-tiered games against Mauritania, losing at home and winning away, could
be used as part of the preparation. They won against Mauritania in
Nouakchott with limited number of fans, but lost their first leg match at

28 | P a g e
home, where there were hundreds of supports. It is clear that the tournament
is loaded with all the West African giants, though they only will field local
material, and it indicates also that success in such a tournament would
require team and psychological preparation.

 To date the local Lone Star has not played any friendly or test match to
evaluate their preparedness, so we can only assume that with Thomas Kojo in
charge, he could repeat the Mauritania surprise in Ghana, particularly in their
first game against the Terenga Lions of Senegal, and ensure his boys are set to
earn some of the money at the end of the day.

 Meanwhile, WAFU Referees Committee chairman, Liberia’s Idrissa Kaba, left


Monrovia for Ghana yesterday in his first official assignment. Kaba is to
supervise referees that are selected to handle all the games in the WAFU
Tournament.

29 | P a g e
 OVERVIEW OF INDUSTRIES, TRADE AND
COMMERACE IN THE COUNTRY OF STUDY

LIST OF INDUSTRY
 TELE COMMUNICATION
 TEXTILE
 FISHING
 TRANSPORTATION
 TOURISM
 AGRICULTURE
 EDUCATION

Tele Communication:

Mauritel will be an in general telephone operator, that is a pioneer clinched


alongside altered telephony, portable telephony and web benefits. It gives the A
large portion current telecommunications benefits should 90% of the Mauritanian
population, What's more it’s in general advertise impart will be 60 %. Mauritania
need three operators, those first monopoly, Mauritel (now claimed Toward Vivendi's
maroc Telecom), Mattel (owned by Tunisie Telecom) what’s more Chinguitel, which
will start operations over december 2006.

Textile:

Main accomplice nations What's more locales starting with which mauritania Imports
materials What's more clothes incorporate China, France, united Bedouin Emirates,
india Furthermore turkey.

Fishing:

Under the Protocol, those eu armada will make permitted with fish On mauritanian
waters for shrimp, demersal fish, fish and little pelagic fish, up to what added up to
281 500 tonsil An year, under moved forward operational states.

30 | P a g e
Transportation:

Mauritania Taxis and Car Rental There are many private taxi companies in
Mauritania's large towns, including the capital, Nouakchott, and Nouadhibou. But the
popular mode of transportation is bus taxis, which travel between towns, as city cabs
can be expensive.

Tourism:

Mauritania is a land about desert and ocean. It is of course no wonder that the main
attractions for most tourists are the desert in Adrar and the Tagant areas around Atar
and the ocean in Banc d'Arguin a natural reserve with dunes ending in the sea, full of
millions of birds and protected by UNESCO. The Adrar is exactly how you've always
imagined the Sahara as an endless erg (dunes) and regs (rocky desert) with tabular
small mountains. Most tourists stay along the west coast of the country, although
there are a few beautiful sights far.

Agriculture:

Millet and sorghum production reached 10,000 and 75,000 tons, respectively, in
1999. Other crop production in 1999 included paddy rice, 102,000 tons and corn
8,000 tons. Production was 22,000 tons in 1999. The Mauritanian government is
facilitating agricultural development of the Senegal River valley.

Education:

The first system of public education in Mauritania was established by the French
colonial administration. As a result, the overwhelming majority of public school
teachers were black, and the nation's secular educated class was dominated by black
people.

31 | P a g e
Contribution of Industries in National GDP

(GDP) growth rate for the second quarter of 2017 to 3% and USD 4.8 billion (2017,
estimate)

Sub 2017
GDP(Purchasing Power Parity) Intl $ 4.4%
17.8 billion
Public debt (General government as 81.5%
a% GDP)
Agriculture 24.1%
Tourism industry 96%
Fishing industry 9.64%
Transportation industry 10.63%
Education industry 3.3%
Steel industry 95.6%
Textile industry 4%
Telecommunication industry 10.63%

Export-Import Statistics
2016 2017
Previous Actual Previous Actual
Export 143.63 billion 156.06 156.44 billion 180.91
billion billion
Import 246.77billion 155.98 142.36 billion 262.77
billion billion

The Mauritania has the export of iron ore, copper, Gold, Molluscs, Non fillet frozen
fish where as imported raw sugar, wheat, light pure woven cotton in 2016-2017.The
country has exported iron ore of $502million, copper of $305million, gold of
$254million, molluscs of $297million, non fillet frozen fish $276million.The country
has import raw sugar of $142million, Wheat of $119million, Light pure woven cotton

32 | P a g e
of $66.4 million. The country total export is more than its import .therefore the
country has a more income than its expenses.

Major Players of Each Industry with their Market Share

INDUSTRY MARKET SHARE


TELE COM 60%
TEXTILE 14%
FISHING 43%
TRASPORT 3.48%
TOURISUM 84.2%
AGRICULTURE 5.97%
EDUCATION 52%
AUTOMOBILE 70%
MINING 30%
WATER 67%
FOOD 32%
PHARMA 80%

 Mining
 Water
 Food
 Pharma

1) MINING

 KUDREMUKH LTD: Kudremukh is a flagship company under the Ministry of


Steel, Government of India, formed in 1976. There, the annual capacity of the
plant is around 3.5 million tons of iron ore pellets.

 HINDUSTAN ZINC LTD: Hindustan Zinc, a subsidiary of Vedanta Group, is an


exploration company with a key interest in zinc, lead silver. The company is
one of the world’s largest integrated producers of zinc, while also being up
there as one of the major players in lead and silver production.

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 HINDALCO: Hindalco Industries Limited is the metals flagship company of the
Aditya Birla Group and just so happens to be an industry leader in aluminium
and copper.

 VEDANTA: Vedanta is one of the world’s largest natural resources company


with interests in Zinc, Lead, Silver, Copper, Iron Ore, Aluminium, Power and
Oil & Gas, with a significant foothold across India.

2) WATER
 Bisleri International (Bisleri, Vedica) : Bisleri International Private Ltd.
produces bottled drinking water, Bisleri, a brand of mineral bottled water so
popular in India that the brand is used as a generic term for mineral water. It was
established by Felice Bisleri, who first thought of selling bottled mineral water in
India.

 Natural Waters of Viti Ltd (Fiji Water): Fiji Water is a brand of bottled water,
produced and marketed by Natural Waters of Viti Ltd. Natural Waters of Viti Ltd
was founded in 1996 by David Gilmour. Fiji water is distributed throughout the
world and is one of the leading brands available in topmost hotels, fine
restaurants and retail locations, besides direct delivery.

 Pepsi Co. (Aquafina): PepsiCo Inc., an American multinational food and


beverage corporation, is headquartered in Purchase, New York, United States. In
India, it is bottled across 19 plants, and is available in many different pack sizes
like 300 ml, 500 ml, 1 liter and 2 liter bottles and in bulk jars of 25 liters Pepsi Co.
supports its water conservation and water replenishment initiatives keeping
Aquafina in the forefront.

 The Coca Cola Company (Dasani, Ciel, Kinley): The Coca-Cola Company is an
American multinational beverage corporation and manufacturer, retailer, and
marketer of nonalcoholic beverage concentrates and syrups, which is
headquartered in Atlanta, Georgia.
3) FOOD
 KISSAN (SINCE-1934): Introduced primarily for British settlers in India,
Kissan has been present in India since 1935. The UB Group, under the Late

34 | P a g e
Mr Vittal Malya then, acquired Kissan from Mitchell Bros in the year 1950.
However, in 1993, Hindustan Unilever Ltd took it over from the UB Group.
 AMUL:Amul is an Indian dairy cooperative, based at Anand in the state of
Gujarat. Founded in 1946, the brand is today managed by the Gujarat Co-
operative Milk Marketing Federation Ltd (GCMMF) which is jointly owned
by about 3 million milk producers in the state.
 BRITANNIA:The Company was started in the year 1892 in Calcutta (now
Kolkata) as a biscuit factory with an initial investment of just Rs 295 (US$
4.76). From a humble beginning, Britannia Industries Ltd is presently one
of India’s most popular food industries.
 MTR RESTAURANT:Started in 1924 with the establishment of the MTR
restaurant, MTR Foods today stands tall as an Indian heritage brand. A
household name, MTR Foods has consolidated its market leadership in the
south of the country and is all set for a strong pan-India presence,
beginning with forays into the northern, western and eastern regions.

35 | P a g e
AUTOMOBILE INDUSTRY IN GUJARAT

 Indian Auto Industry Overview

Auto and auto components industry in India is growing and maturing at a fast pace
in terms of size, model variants and technological advancements in new cars. Some
of the factors attributable to this growth include a buoyant end-user market,
improved consumer sentiment and return of adequate liquidity in the financial
system.

The Indian auto-components industry can be classified into - organised and


unorganised sectors. The organised sector caters to the Original Equipment
Manufacturers (OEMs) and consists of high-value precision instruments, while the
unorganised sector comprises low-valued products and caters mostly to the
aftermarket category.

Indian Auto & Auto Components Industry Classification

Automobile
Passenger Cars Two-wheeler Three wheeler Commercial
vehicles

Cars Motorcycle Commercial Light CVS


purpose

Utility vehicles Scooters Passengers Medium & heavy


purpose CVS

Multipurpose Mopeds Mining equipment


vehicles & earth movers

Indian Auto & Auto Components Industry Classification

Auto components
Engine and Power Suspension & Light & other Assesslors Others
engine train parts braking parts equipments
parts

36 | P a g e
 Indian Auto Industry overview

Passenger vehicle density expected to become 1.5 times by 2020:

India has the largest population of young people in the world, with around 66% of
population under the age of 35. The country’s low vehicle penetration (32 vehicles
per 1000 people in 2015) makes it one of the world’s most attractive auto markets.
Owing to its unique demographic dividend, the Indian auto industry has immense
growth potential. India’s passenger vehicle park of around 29 million during 2015 is
expected to grow to more than 48 million vehicles by 2020.

 India has emerged as an important automotive market and offers huge


growth potential due to low vehicle penetration and improving economic
fundamentals the auto sector is one of the most important contributors to
GDP and employment in India, with huge potential for growth. The sector
accounts for 7% of India’s GDP, 45% of manufacturing GDP and employs
about 19 million people both directly and indirectly. Further, the sector
contributes around 4.3% to India’s total exports and 13% to the country’s
excise revenues.

 Over the years, the Indian auto industry has emerged as one of the world’s
largest, with annual sales of 19.8 million vehicles in FY15. It is also one of the
fastest growing auto markets, with production of 23.4 million vehicles in
FY15 and a leading position in several sub-segments.

The auto sector is one of the India’s major sectors; accounting for around 7.1% of
the country’s GDP, 45% of the country's manufacturing GDP, 8% of the country’s
R&D expenditure and employs about 19 million people both directly and indirectly.
Further, the sector contributes around 4.3 % to India’s total exports and 13 % to the
country’s excise revenues. India was the world’s 6h largest motor vehicle/car
manufacturer (2015) and the world’s 2nd largest two-wheeler manufacturer.

37 | P a g e
India Auto Industry trends

Indian automobile industry (million units)

23.4 24.0

20.4 20.6 21.5

17.9 19.8 20.5

17.4 17.8 18.4

FY11 FY12 FY13 FY14 FY15 FY16

Production Domestic sales

15.5

Over the years, the Indian automobile industry has emerged as one of the world’s
largest, with annual sales of 20.5 million vehicles in FY16. It is also one of the fastest
growing auto markets, with production of 24.0 million vehicles in FY16 and a leading
position in several sub-segments.

India Auto Industry outlook


15.5

India's passenger vehicle market is expected to hit 10 million units by 2020 and
its share in the global passenger vehicle market is expected to increase from
2.4% in 2014-15 to 8% in 2020. Overall, the Indian automobile market is
expected to become the world's 3rd largest by 2020.

Employment and Skill Development in Auto Industry

With the rising industry growth, the Indian automotive industry is likely to witness an
increased demand for skilled labour in the coming years, as the economic
environment improves and investments are made as part of the “Make in India”
initiative. The automotive sector is expected to create 15 million direct jobs by 2022
across the country.

38 | P a g e
Auto industry in Gujarat

Gujarat is emerging as a key investment destination for the major auto players. The
state is set to become the country's automotive hub within the next few years.
Gujarat government plans to increase the share of automotive industries in its overall
engineering output to 10% by 2020, from the current 3.7%.Gujarat expects to surpass
the production capacity of top car manufacturing states like Haryana, Maharashtra
and Tamil Nadu, with an installed capacity to roll out 10 lakh units annually within the
next 3-4 years Incremental manpower requirement in Gujarat for the manufacturing
of engineering goods is expected to be 53,580 during 2017-22.

Planned investments

Company Investment (INR billion) Location

Maruti Suzuki 40 Ahmedabad

Hero MotoCorp. 11 Halol

Honda Motorcycle and

Scooter India (HMSI) 10 Mandal

Key existing facilities


Company Investment (INR billion) Location

General Motors India 20 Halol

Tata Motors 30 Sanand

Ford 60 Vadodara

Growth Drivers

1) Growth in automobile sales

In India, the passenger vehicles are expected to increase at a CAGR of 18%, two- and
three-wheelers at a CAGR of 8% and commercial vehicles at a CAGR of 19%, during
2014-2021. It is estimated that total electric vehicles sales would amount to 6-7
Million units by 2020.

39 | P a g e
2) Favorable Government Policies

GoI has launched several policies to support the growth of the auto industry such as
Automotive Mission Plan (AMP) 2016–26, the constitution of NATRiP, National
Mission for Electric Mobility 2020, etc. The AMP envisages four-fold growth by FY26.,
with the Indian auto sector generating up to INR 19.2 trillion in annual revenue by
2026, creating around 65 million additional jobs and contributing to more than 12%
to India’s GDP.

3) India emerging as a global R&D Hub

Currently there are 30 private automotive R&D centers in india other private players
such as Hyundai, Suzuki, GM are also keen to setup R&D base in india due to strong
education base and comparative cost analysis.

4) Setting up of new engineering /auto facilities in Gujarat

Gujarat government is planning to set up three clusters for precision engineering


companies at Sanand, Halol and Hansalpur.Bechraji, with an investment of INR 18500
Crore. The company expects to generate direct employment for over 2,000 people
while the ancillary units in the vicinity and a supplier park will generate additional
employment.

5) Focus on skill development in engineering clusters

At present there are more than 15 engineering clusters and new ones are emerging
at Sanand-Viramgam, Mandal-Becharaji, Halol-Savli, Anjar and Santhalpur. With
these, there is considerable focus on manpower and skill-set development – there
are 54 engineering, 106 diploma colleges with over 82,000 seats and 253 ITI
institutes. The state has also initiated a model of skill formation training with
industries.

GUJARAT CO-OPRETIVE ADVANTAGES

Skill development and training in auto sector is a focus area for Gujarat
Government Manufacturing and engineering sector growth

Gujarat is a hub of engineering industry, with the manufacturing and engineering

40 | P a g e
sector in Gujarat contributing over 27% to the state’s GSDP and contributing 9%
overall to the national engineering output.

Government focus to develop CoEs

Industrial automation COE in Mehsana. Government of Gujarat has decided to set


up an international Centre of Excellence at PDPU to strengthen R&D and skill
development in automobile sector in joint venture with Maruti Suzuki India Ltd.
(MSIL).

Favorable labor policy

The Gujarat government has recently passed the Labour Laws Bill (December
2015), to give an impetus to industrialization in the State.

Well-developed skill development industry

Skill development industry in the state is well-developed – with many technical


institutions (678 engineering institutes) and training institutes (11,167 vocational
training institutes).

In addition to the

Financial national level incentives, incentives the Gujarat government is providing


financial incentive for setting up of CoEs for the manufacturing sector.

Better social infrastructure

Gujarat has one of the lowest costs of living amongst all the States and is
relatively less congested and polluted offering better standards of living to the
inhabitants.

Sanand (Gujarat)

13.5 KL water/ha
area

12+ autoancillary
units to be setup

300 vendors expected to setup

41 | P a g e
 Sanand, Gujarat is an indicative location for establishment of automobile
manufacturing unit. Alternatively, the porposed unit can be set up in other
suitable locations in Gujarat.
 66 KV Vendor Park and 66 KV Chharodi substations are located approx. 4
km away from the boundary of the estate.
 A 400/220/66KV substation is planned within the Sanand Estate to be
operational in around 6-9 months.
 For solid waste – two disposal facilities are available, Naroda & Vatva. The
company has to transport their solid waste to these sites themselves. The
sites are around 50 km form Sanand.
 Gujarat State Petronet Ltd. would supply gas in the estate till the door
step.
 Port Connectivity is available with three ports – Kandla, Mundra &
Pipavav.
 Sanand has the advantage of a Broad Gauge (BG) railway network and
NH–8A which connects Ahmedabad to Saurashtra and Kutch passes
through Sanand.
 Ahmedabad International Airport is the nearest airport located at a
distance of 45 kms from
Sanand.

Infrastructure Availability

Sanand is well-connected with other districts in Gujarat as well as


other cities in India

Sanand has the advantage of a Broad Gauge railway network the

Nearest Railway station is At Ahmedabad at a distance of 40 km

From the Sanand.

National Highways: NH–8A, which Connects Ahmedabad to

Saurashtra and Kutch, passes through Sanand.

State Highways: SH–17 connects Ahmedabad to Sanand and joins

42 | P a g e
NH – 8A leading to Kutch. SH-144, SH-135 and SH – 74 are the other
Important linkages within Sanand.

Mundra port is linked by NH – 8A and lies at a distance of about 400


kms from Sanand.

Ahmedabad International Airport is the nearest airport located


Distance of 45 kms From Sanand .There are 14 domestic airports in
Gujarat.

The State Government ensures robust physical/industrial


infrastructure & utility linkages

Gujarat boasts of 24 hour – 3 - phase uninterrupted power supply.

 Gujarat has a state-wide “water supply grid” spread across


1, 20,769 km that aims to serve 75% of Gujarat’s population.
 Gujarat Industrial Development Corporation (GIDC) is
responsible for ensuring consistent water supply in industrial
areas
 Two disposal facilities are available, Naroda & Vatva, are
available for solid waste. The sites are around 50 km form
Sanand

The major plant and machinery / equipment required to manufacture


auto components include

Turning, drilling Auto Engine GDI Pump Assembly and Test


machines Line

Automated Oil Pump Assembly | Line

Broaching machines

Integratin

43 | P a g e
Automated Power Steering System
Assembly
Tooth rounding & chamfering
machines

Line

Gearing machines – Hobbing,


shaping, etc. Alternators Assembly Line

Milling machines Door Hinge and Latch Assembly Line

P/Valve Torsion Bar


Shot blasting machine, grinders, etc. Cutting

Cutter re-sharpening machines Roll Transferring System

Various jigs, fixtures,


etc Auto Loader System

Automotive Chassis & Body


Manufacturing

Gantry Loader System

Systems

Muffler Manufacturing Machines

44 | P a g e
Key Players

Monthly

Area Land value (INR 12 month

rental (INR

Occupier (Acres) Location per sq ft) per sq ft) Outlook

Marginally
Tata
Motors 1,250 Sanand 200–550 18–30

increase

Ford Marginally

450 Sanand 200–550 18–30

Motors increase

Gardner Marginally

4.8 Changodar 350–700 18–28

Denver increase

Alstom

Marginally

Bharat 60 Sanand 200–550 18–30

increase

Forge

Maruti

500 Mehsana 350–700 14–22 Stable

Suzuki

45 | P a g e
Approvals and Incentives

Gujarat Industrial Policy

Government of Gujarat has announced an ambitious Industrial Policy, in January


2015, with the objective of creating a healthy and conducive climate for conducting
business and augmenting the industrial development of the state.

Quantum of incentives

The incentives under this policy will be available to all the Talukas listed in
Government Resolution dated 25/7/2016 except municipal corporation areas.

Net VAT incentives

Net VAT incentive will be reimbursed to the industrial undertaking in one financial
year will not exceed one-tenth of the total amount of eligible incentive.

Classification of the Project Amount (in INR crore)

Ultra Mega Industrial Unit 500

Mega lndustrial Unit 400

Large Industrial Unit 150

Micro, Small or Medium Industrial Unit 50

Industries in the Automobile Sector can opt for either the general incentives under
the Gujarat Industrial Policy- 2015 or the incentives under the scheme for Mega /
Innovative Project as provided below:

 Mega projects have been defined under the policy as having an actual
investment of atleast INR 1000 crores and projects which provide
employment to atleast 2000 persons (both of these conditions must be met
in order to be deemed a mega project. The assistance to such projects under
the scheme are:
 Financial assistance to the Mega/Innovative Projects will be decided on
merit on a case to case basis

46 | P a g e
 The State Government may make special dispensation for the land use
and tenure conversion for Mega / Innovative Projects.
 If the Mega/Innovative require support of ancillary units and if such
support is to be extended by MSME untis, GIDC would identify land for
setting up of such MSME ancillary units
 GIDC would assist, if required, in identifying land for setting up of
Mega/Innovative Projects as their anchor clients.

Approvals and Incentives


Indicative List of Approvals
Approvals/clearance required Department to be approached and consulted

Incorporation of company Registrar of companies

Secretariat if industrial assistance (SIA) for large


Registration/Industrial license and

medium scale industries

Allotment of land State industrial development corporation

No objection certificate (NOC)


under State pollution control board

air and water pollution control


acts

Approval of construction and


country Town and country planning

Planning Municipal and local authorities

Chief inspector of factories

Pollution control board

Electricity board

Use and storage of explosives Chief controller of explosives

47 | P a g e
For loans higher than INR 1.5 crore, all India
Finance financial

institutions like Industrial Development Bank of


India(IDBI),

Industrial Credit and Investment Corporation of


India(ICICI),

Industrial Finance Corporation of India(IFCI) etc.

Registration under state sales


tax act Sales tax department

and Central and State excise act Central and state excise department

Code number for export and


import Regional office of director general of foreign trade

Ministry of environment, forest and climate


Environmental clearance change after

conducting environment impact assessment (EIA)


for any

Project

Facilitation for setting up Industries Commissioner will facilitate for state


project clearances

Required to set up project.

Exiting business Ministry of corporate affairs

GoG has introduced single window facilitation portal for investors with under
mentioned benefits:

 Centralized system to monitor applications


 User friendly and simplified application process for investors
 System for authorities and investors to check the status of applications
 Increased departmental ownership

48 | P a g e
CONTRIBUTION OF AUTOMOBILE INDUSTRY IN NATIONAL GDP.

The Role of Automobile Industry in India GDP has been phenomenon. The
Automobile Industry is one of the fastest growing sectors in India. The increase in the
demand for cars, and other vehicles, powered by the increase in the income is the
primary growth driver of the automobile industry in India. The introduction of tailor
made finance schemes, easy repayment schemes has also helped the growth of the
automobile sector.

 Role of Automobile Industry in India GDP-Facts

 India has become one of the international players in the automobile market
 In the year 2016-17, the Indian Automobile Industry produced 2.06 million four
wheelers and 9 million two and three wheelers
 The four wheelers include passenger cars, multi-utility vehicles, sports utility
vehicles, light, medium and heavy commercial vehicles, etc
 The three wheelers include mopeds, motor-cycles, scooters, and three wheelers
 India ranks 2nd in the global two-wheeler market
 India is the 4th biggest commercial vehicle market in the world
 India ranks 11th in the international passenger car market
 India ranks 5th pertaining to the number of bus and truck sold in the world
 It is expected that the Automobile Industry in India would be the 7th largest
automobile market within the year 2016

 Role of Automobile Industry in India GDP-Growth


 The growth rate of the Passenger Cars in the year 2017 is 13.50%
 The growth rate of the Utility Vehicles in the year 2017 is 10.10%
 The growth rate of the Multi Purpose Vehicles in the year 2017 is 24.40%
 The growth rate of the Light Commercial Vehicles in the year 2017 is 16.05%
 The growth rate of the Commercial Vehicles in the year 2017 is 3.43%
 The Maruti Udyog Ltd is the largest car manufacturer in the country and the rate of
growth in the year 2017 was 20.7%
 The Mahindra & Mahindra Ltd's cumulative sales for the year 2007 was 1,06,094
units and the rate of growth was 35.8%

49 | P a g e
 The Honda Siel Cars India Ltd, the leaders in India pertaining to the manufacturing
of premium cars, registered a growth of 16.1 % during the year 2007 and sold
41,638 units
 The Daimler Chrysler sales for the year 2007 was 1,681 units in India and the growth
rate was more than 22%
 The General Motors India, registered a 114% increase in the national sales in the
August of 2017
 The Hero Honda sold more than 2 million units in the Jan-Aug period of the year
2017
 The export pertaining to the motorbikes was 3,21,321 units in the year 2017
 It is estimated that in the year 2016-17 the motorcycle sales would be 7 million, the
car sales would be 1.55 million, and the two-wheelers sales would be 8.3 million

MAJOR PLAYERS OF AUTOMOBILE INDUSTRY WITH ITS MARKET


SHARE

INDUSTRY MARKET SHARE

TATA MOTORS 3.54%

MARUTI SUZUKI 48%

HYUNDAI 17.30%

MAHINDRA & MAHINDRA LTD 7.50%

GM INDIA 1.10%

VOLKSWAGEN 1.40%

FORD INDIA 2.60%

RENAULT 4.50%

TOYOTO KIRLOSKAR MOTORS 4.60%

HONDA CARS 5.40%

50 | P a g e
LOCAL TAXES AND DUTIES APPLICABLE IN AUTOMOBILE
INDUSTRY

LOCAL TAXES:

State Government Service Tax

India has adopted Goods & Services Tax (GST) from July 1, 2017. The rate applicable
for vehicles is provided below:

Tax Type Tax Rate

GST
Vehicle Category GST
Rate

Electric Vehicles – Falling under tariff heading 8702, 12%


8703, 8704, 8711

Passenger Vehicles/Commercial Vehicles/Three- 28%


wheelers/Two-wheelers – Falling under tariff heading
8702, 8703, 8704, 8711

Compensation
Cess
Vehicle Category Cess

51 | P a g e
>4m passenger vehicles (Petrol, Diesel, CNG, 15%
Ethanol, methanol, hybrid electric and fuel cell)

<4m passenger vehicles (petrol, CNG, Ethanol, 1%


Methanol)

<4m passenger vehicles (diesel, Ethanol, 3%


Methanol)

>350cc two-wheelers falling in tariff heading 8711 3%

10 – 13 seater public transport vehicles falling in 15%


tariff heading 8702

Taxes to be covered/ subsumed

All kind of domestic indirect taxes should be subsumed in the proposed GST, as
suggested by Kelkar Committee. This should include Road Tax/Motor Vehicle Tax
also.

After introduction of GST, no additional tax should be introduced/ levied. A provision


be made in the law that no new levy or tax be introduced.

Any change, if required, in future (for specific needs like calamity, education,
infrastructure, etc.) should be done through modifying the rate of taxation under the
GST regime and not through any additional levy/tax/cess, etc.

Bring in used vehicle trade under GST framework with a token levy to make used
vehicle trade more organized.

1% GST rate will provide substantial annual revenue to the exchequer.

Tax Rates
The tax rate on inputs and output should be fixed considering the pattern of input
purchase and output sales which varies considerably. This has implications for the
input tax credit. While vehicle manufacturing takes place in a few states with supply
to other states (local sales account for less than 10% of total domestic sales), majority
of components (around 70% - 80%) are procured from vendors within the state. If tax
rate of components/inputs is more than the tax rate at the time of supply of
complete vehicles (Completely Built Units), then refund would arise. Hence, to avoid
that, it is suggested that

52 | P a g e
Uniform rate of tax should be charged on complete vehicles (whether by way of sale
or by way of transfer) and inputs, against which input credit should be allowed.

Tax paid on complete vehicles on movement from factory should be made available
as input credit to the vehicle dealers.

Manufacturers could give state-wise break-up at periodically to respective state


governments who may settle it through appropriate clearing house mechanism.

Considering the current level of taxation, a suitable tax rate may be adopted. Tax
rates should be uniform across states and there should be one authority to which
payment would be made by way of one challan.

Tax Base & Levy

Goods and services should be classified on the basis of HSN and GATTS (at both
central and state level).

A common base should be adopted for taxation of both Central and State GST. Under
the present taxation system, interstate sales tax and local sales tax is levied on excise
duty in respect of the manufactured goods resulting in cascading of taxes.

In case of non-sale, where transaction value of goods or services is not determinable


and when GST is charged, a simple mechanism of valuation could be adopted on the
basis of cost.

Under GST, it is suggested that the basis of tax credit should be on ‘Cost to Business’,
i.e. any tax which is paid and forms cost to business should be allowed as tax credit,
both at the Central & State level.

The document based credit should also be dispensed with and could be substituted
by appropriate certification by independent Chartered Accountant (or the Appointed
Company Auditors). The same could be subject to appropriate audits by trained
government officers and could be IT enabled.

Diesel and motor spirit should be brought under GST with input tax credit and
mechanism to avail the same. VAT on diesel and motor spirit constitutes a significant
element of cost for the transport industry. It is suggested that total chain of input
credit should remain unbroken and hence, all inputs should be treated equally for the
purpose of allowing input credit.

53 | P a g e
Others
In the proposed GST system, it is not known whether stock transfer would remain
exempted from tax (at present, sales tax is not levied on Stock Transfer) or would be
made taxable in the importing state; the industry needs to understand the treatment
of stock transfers for the purpose of input tax credit.

There should be no distinction between input and capital goods. Presently, definition
of Capital Goods under Central excise law and state VAT is not uniform. Under State
VAT, definition of capital goods and also the rate of taxation vary from state to state.
As regards periodicity of taking credit, excise and VAT laws differ.

In respect of existing exemptions having sunset clause, appropriate transitional


provisions should be introduced to ensure continuity of existing benefits. A
clarification is needed on how the existing sales tax benefit schemes e.g. loan,
deferral would be affected.

The State Goods and Services Tax Act, State GST Act should be a common Act
operated/implemented by all the states and Union Territories (similar to present
Central Sales Tax Act) covering transactions related to goods, services and exports.

Concept of ‘Tax Invoice’ should be continued for availing State GST credit.

To ensure viability of EOU under severe competition, timely refund of tax is needed.
Effective refund system should be in place for smooth operations of EOUs. Presently,
EOUs are eligible to get refund of CST on interstate purchase of inputs used in the
production of export goods and local VAT content of the export product is allowed to
be deducted against the DTA Sales and the balance, if any, is allowed as refund.

Under a dual GST structure (a Central GST and a State GST), there could be a
situation where the Input Tax credits which remain unutilized would be refunded to
the assesses. Since the cross utilization of credits between the Central GST and State
GST are not permitted, there could be a situation of payment on the one hand and a
refund situation on the other. In order to avoid this situation cross utilisation of
input tax credits should be allowed.

Procedural changes should be notified in advance. The industry should be given 6


months lead time before introduction of GST.

54 | P a g e
State specific incentives should be protected under GST.

Duties:

Criteria / Applicability Import Duty in %

Used car import 125

Cars CBUs whose CIF value is more than $ 40,000 100


or Petrol Engine > 3000 CC
or Diesel engine > 2500 CC

Cars CBUs whose CIF value is less than $ 40,000 60


and Petrol Engine < 3000 CC
and Diesel engine < 2500 CC

Two-wheeler CBUs with engine capacity <800 cc 60

Two-wheeler CBUs with engine capacity >=800 cc 75

Commercial Vehicle CBUs (Trucks & Buses) 20

CKD containing engine or gearbox or transmission 30


mechanism in pre-assembled form but not mounted on a
chassis or a body assembly

CKD containing engine, gearbox and transmission 10


mechanism not in a pre-assembled condition

55 | P a g e
Vehicle Category Excise Duty

Small cars 12.5%

Length >4m but engine capacity less than 1500cc 24%

Length >4m and engine capacity more than 1500cc 27%

SUVs/MUVs (length >4m, engine capacity >1500cc and 30%


Ground clearance >170mm)

Hybrid cars 12.5%

Specified components of Hybrid vehicles 6%

Electric cars, Buses, 2W & 3W 6%

Specified components of Electric vehicles 6%

Buses 12.5%

Trucks 12.5%

Three wheelers 12.5%

Two wheelers 12.5%

SPECIAL BENEFITS GIVEN BY STATE GOVERNMENT

1. Vehicle prices - At present, the excise duty for vehicles is divided into four
slabs, in which the smallest tax rate is applicable to small cars. With GST
implementation, taxes levied by the centre like excise duty and state levels taxes like
sales tax, road and registration tax would all be subsumed into one.

Assuming that the proposed tax rate of 18-20 percent is accepted, the vehicle prices
are expected to decrease. The vehicle prices are expected to be more affordable and
thus will create demand. Although it still remains to be seen if there would be a dual
tax structure for small and big cars.

2. 'One Market' - The overall compliance burden is expected to decrease and


bring lot more efficiency in operations. From the Indirect tax prospective the whole

56 | P a g e
country will be treated as 'One Market' and will add to operational efficiencies. One
could expect the logjam at checkpost, etc. will get eliminated.

Auto stocks surge up to 4% on clearance of GST Bill


After years of deliberation, the GST, touted as the biggest tax reform in Indian history
since Independence, has finally seen the light of day. According to analysts, this
unified tax system would lower tax administration costs.

Shares of automakers surged in the domestic equity market on Thursday on hopes


they would benefit from the goods and services tax (GST), which was cleared by the
Rajya Sabha last evening. The goods and services tax (GST) is an indirect tax reform,
which aims to remove tax barriers between states and create a single market.

After years of deliberation, the GST, touted as the biggest tax reform in Indian history
since Independence, has finally seen the light of day. According to analysts, this
unified tax system would lower tax administration costs.

At 10:33 am, shares of Tata Motors were trading at Rs 496.60 apiece, up by 3.64 per
cent from its previous close on the Bombay Stock Exchange (BSE). Bajaj Auto was up
1.98 per cent while Maruti Suzuki India was up 0.94 per cent.

The Nifty Auto sub-index was the top gainer on the NSE index, rising as much as 1.79
per cent at the time of reporting.

Overall economic activity is expected to increase and we could expect a better GDP
growth that should push demand for vehicle across categories.

Impact of Tax cascading will go away that will reduce overall cost of vehicle
manufacturing.

All taxes on input paid will be offset with the output liability of GST.

57 | P a g e
 MAURITANIA COUNTRY OF STUDY

OVERVIEW OF AUTOMOBILE INDUSTRY

Demographically What's more economically, India’s car industry may be well-


positioned to growth, overhauling both Domesticated interest and, increasingly, send
out chances. A predicted expand to India’s working-age populace will be inclined
should help animate the burgeoning showcase to private vehicles. Climbing
prosperity, simpler entry on account What's more expanding Honda ability is
expected on see four-wheelers putting on volumes, Despite two wheelers will remain
those grade decision to those greater part from claiming purchasers, buoyed Toward
more amazing craving from provincial areas, those adolescent showcase What's more
ladies. Domestically, some merging or alliances could a chance to be expected,
determined Eventually Tom's perusing those require for right will better technology,
manufacturing facilities, administration Also circulation networks. The parts division
is done a solid position should cash-in ahead India’s cost-effectiveness, profitability
Also globally-recognized building competencies. As the profits of collaborations
ended up additional apparent, super-specialists might develop clinched alongside
which the car may be dealt with Concerning illustration An system, with every master
keeping tabs with respect to a sub-system, associated of the it industry. However this
approach will be radical, it Might demonstrate a paramount venture in decreasing
unpredictability and financing requirements, same time pushing Institutionalization
Furthermore meeting client requests. Producers need aid at that point arranging for
those future: early Backers about innovative What's more appropriation alliances
bring yielded for the most part certain results, empowering Domesticated OEMs with
right worldwide innovation Also experience, What's more permitting them on
develop their ranges for fewer budgetary dangers. This energizing viewpoint for
those industry may be set against a scenery of two possibly game-changing
transportation patterns – the gradual authoritative move towards greener, gas-based
state funded transport vehicles, Also An more stupendous prerequisite for urban
impostor versatility schemes will administration rapidly-expanding urban
communities.

58 | P a g e
• Green Revolution: done a price-conscious economy for example, India’s, those
shifts towards green vehicles will make moderate unless spurred Eventually Tom's
perusing administration mandates. In spite of the real players are at that point
provided for the important abilities to create cleaner vehicles, they don't perceive
significantly merit over commercializing these advances until those green
transformation additions energy – well on the way through progressions to political
enactment – What's more it accomplishes the business sector scale required for
business viability. Makers need aid setting more terrific confidence over dual-fuel
innovations over for battery-fueled plan B On account the vital backing
infrastructure, for example, such that revive stations, will be not yet set up for the
broad selection of the last. Those propel from claiming electric motorcycles Might
need a critical effect on the market, provided for that motorcycles represent the
lion's share from claiming two-wheeler administration in india. Makers about four-
wheelers Furthermore business vehicles specifically stress the vitality of upgrading
routine burning engines when experimenting as well radically with exorbitant new
advances.

• portability Revolution: utilization of government funded transport done india need


waned Concerning illustration private vehicle proprietorship need boomed, Yet
expanding strain out and about foundation in real urban communities implies open
financing will be likely in urban impostor portability Schemes for example, such that
metro frameworks Furthermore Busses. The car business may be doubtful with lose a
great part for its client build in the near-term, indeed as these schemes ended up
additional prevalent, as a result those socio-investment articulation for auto
proprietorship will keep on going should settle on private vehicles alluring. At present
there is an absence for clarity in the car industry In those part it will assume On At
whatever portability transformation. In spite of the fact that a few industry masters
think the sway of the portability transformation will a chance to be negligible in the
short-term, there might be chances to Makers should ended up included with general
society part clinched alongside ranges for example, enhancing joins the middle of
distinctive modes about transport.

59 | P a g e
Automobile Guides and Directories
JapanTradePages.com
Japan Trade Pages is one of the best English directories of Japanese Manufacturers,
Exporters, Importers, Dealers, Agents, and Brokers. You can find information for
thousands of companies in Japan.
EximData.com
Worldwide Export-Import Trade directory for all kinds of products and
services. Anyone can List their company and can post Trade Offers FREE.
WorldAutoPages.biz
World Auto Pages is automobile directory of worldwide manufacturers, exporters,
importers, dealers, suppliers, wholesalers, distributors of new & used cars, trucks,
buses, bikes, parts, construction equipment. Anyone who is in automobile business
can list their company and trade offers free.
JapanAutoPages.com
JapanAutoPages.com is number one best English directory of Japanese Automobile
Industry with complete guide. Thousands of Japanese manufacturers, exporters,
dealers, trading companies are listed to automobile industry of Japan. Find thousands
of used vehicles on the portal.
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South Korea Pages is one of the best English directories of South Korea to source any
kind of products or services. Thousands of companies are ready offer many products
and services. Korean Companies are welcome to register their company listing and
trade offers.

Used Cars Freight Rates from Japan to Mauritania

This page is for you to know an approximate freight Cost example Yokohama, Japan.
The total amount can be figured with the following two charts.

FREIGHT = M3 OF VEHICLE X M3 RATE IN US$

For example, If you want to find out FREIGHT for a Toyota Corolla Fielder (Japanese
Used Cars) which want to ship at Mauritania - Mombasa Port.

Size of Toyota Corolla Fielder = 11.4 M3

60 | P a g e
Freight Charges = US $90 per M3

Calculation will be 11.4 x 90 = 1026

Freight Charges of Toyota Corolla Fielder for Mombasa Port will be US$1026

Ports Name Shipment Shipping Rates Frequency of Time


Type Shipment (Days)

NOUAKCHOTT Ro-Ro US$209 / m3 Monthly 35-45

20 Foot US$4,340 / Container Monthly -


Container

40 Foot US$8,860 Monthly -


Container

Sizes Car's Name (Examples) Cubic Meter (m3)

Small STARLET / MR2 / MARCH etc. 9m 3

Medium COROLLA / CORONA etc. 11m 3

Large CROWN / SOARER etc. 13m3

Medium LWB RV Car HILUX / TERANO etc. 14-16m 3

Large LWB RV Car PAJERO / LAND CRUISER etc. 16-18m 3

Wagon HI ACE / CARAVAN etc. 16m 3

Van HI ACE / CARAVAN etc. 15-19m3

61 | P a g e
Shipping Information

Get to know about terms used in Japanese used car shipment

If you are going to buy your dream used car from Japan, you must know the shipment
terms before going to final the deal and make payment. You must ask Performa
invoice before placing any order or sending payment to know each and every thing
about terms and condition of payment and shipment etc. I am explaining you terms
which you are using for shipment of used car export from Japan.

Container Shipping
The biggest advantage with container shipping is safety and convenience. In
container shipment, vehicles transported are enclosed in containers, hence are less
likely to get damaged during shipment.
RoRo shipping method
Roll on Roll off popularly known as RoRo is a method by which vehicles and
machinery are loaded and unloaded of heavy cargoes. This is the most popular,
efficient and least expensive shipping method. The RoRo shipping method is used to
carry cargos that are driven on and off the ship.
Japan's Shipping Industry
Japan's shipping industry witnessed a big boom in the year 2003-04. According to
consolidated financial results announced for the year ending March 2004, Mitsui
O.S.K. Lines, Ltd. and Kawasaki Kisen Kaisha, Ltd. ("K" Line) posted record net profits,
and Nippon Yusen Kabushiki Kaisha (NYK Line), the largest shipping company in
Japan, made substantial gains of more than 200 percent as compared to the previous
year.

JUSTIFICATION FOR MAURITANIA INDUSTRY


As we focus exclusively on motor trade industry, we are always eager to help you
take the next step into a career in this exciting and fast-paced field. The automotive
sector offers many fantastic career opportunities, whether you’re interested in
working on the sales and business side, or the actual manufacturing and mechanics
of vehicles. If you’re considering your future, here are just a few of the reasons you
should consider working in this industry.

62 | P a g e
TECHNOLOGY

The automotive industry sits right at the forefront of technological advancements,


from the discovery of new fuels to the development of more lightweight materials or
new manufacturing techniques. There is a constant search for fresh new ideas, and
many companies invest huge amounts of money in research and development. There
are not many sectors which give you so many opportunities to be involved in exciting
new technological developments.

DIVERSITY

The motor industry is one of the most diverse in the world in terms of the different
jobs on offer. You could get involved in development, manufacturing, finance,
marketing, project management, international development or even the
environment by working in the sector.

OPPORTUNITIES

Most people are in search of a career that offers them good prospects for the future.
In the motoring world, you could start off as an apprentice and progress to be the
owner of your own company. The knowledge and skills you gather are mobile so you
could decide to work in Europe at one stage of your career before moving overseas if
you wished. The industry is truly global and there is always demand for talented
individuals.

SHARED KNOWLEDGE

As we already mentioned, companies around the world are investing huge amounts
into research and development. Many of these include collaborative efforts between
different specialists. The automotive community has been built on shared knowledge
and mutual learning. You’ll have the chance to work with other specialists, helping
you to improve your knowledge and learn new skills.

63 | P a g e
Automobile in Bilateral Trade Opportunities With
Gujarat/India

AHMEDABAD: With an aim to strengthen the business relationship between Gujarat


and Canada, Rajkot Engineering Association, Rajkot Chamber of Commerce and
Industry, and the Chamber of Commerce and Industry Kutch have joined hands with
Manitoba Trade & Investment. They want to promote bilateral trade, investment,
technology transfer, joint ventures and collaborations.
The collaboration is being facilitated by Ahmedabad-based Global Network. As part
of the efforts to improve trade between Manitoba and Gujarat, roadshows were held
in Rajkot and Kutch last week. Global Network will now send a trade and investment
delegation from Rajkot and Kutch to Canada in September 2014. Over 15 companies
from Rajkot and 10 companies from Bhuj have already joined the delegation."For the
Indo-Canadian community, the province of Manitoba has become a home for
active and growing trade and investment. Two-way trade between Manitoba and
India increased to 145 million in 2013, up from $45 million in 2004. There are
immense opportunities in Manitoba for joint ventures or business in various sectors,"
said Jagat Shah, founder, Global Network.
The market opportunities for Manitoba companies in India include agriculture, agro-
food, service industries, information and communications technology, energy sector,
telecom sector, port and infrastructure, food processing, aviation, biotechnology, oil
and gas, electrical power and the aerospace and defense sectors.
Bilateral trade between Canada and India currently stands at about $4.5 billion and
the government of Canada is planning to double the trade with India by 2016. India's
exports include apparel, precious stones and metals, organic chemicals, textiles,
medical devices, iron and steel products. Imports from Canada include cereals,
fertilisers, aircraft, paper and paperboard. At the roadshow in Rajkot, government
officials from Manitoba led by Bonnie de Moissac explained about business
opportunities in Manitoba.

64 | P a g e
LITRETURE REVIEW FROM PUBLISHED REPORTS

 The Quarterly Journal of Economics, Volume 43, Issue 1, 1 November 1928,


Pages 142–153, https://doi.org/10.2307/1883944 Published: 01 November
1928.
 C. E. Griffin; Recent Literature on the Automobile Industry, The Quarterly
Journal of Economics, Volume 43, Issue 1, 1 November 1928, Pages 142–
153, https://doi.org/10.2307/1883944
 The Automobile in American History and Culture: A Reference Guide By
Michael L. Berger Greenwood Press, 2001
 Who Really Made Your Car? Restructuring and Geographic Change in the Auto
Industry By Thomas Klier ; James Rubenstein W.E. Upjohn Institute for
Employment Research, 2008
 Ford and the Global Strategies of Multinationals: The North American Auto
Industry By Isabel Studer – Noguez Routledge, 2002
 Transitions: The State of the Automotive Industry-A Summary By Strauss,
William A.; Engel, Emily A Chicago Fed Letter, No. 242a, September 2007
 Continuity and Change in Japan's Automotive Industry By Aoki, Katsuki ;
Delbridge, Rick; Endo, TakahiroIvey Business Journal Online, January/February
2011
 The Evolution of Production Systems: Exploring the Sources of Toyota's
Competitiveness By Fujimoto, Takahiro Annals of Business Administrative
Science, Vol. 11, January 1, 2012
 Billy, Alfred, and General Motors: The Story of Two Unique Men, a Legendary
Company, and a Remarkable Time in American History By William Pelfrey
AMACOM , 2006

65 | P a g e
MINISTRY OF EXTERNAL AFFAIRS

 Automotive industry professionals gather at the EQUIP AUTO


show

Hutchinson, Accor Lubrifiants, Chimirec and Vernet. You may not recognize their
names, but these manufacturers make most of the parts of our vehicles. French
automotive parts manufacturers are a potential growth sector, which the federation
French Vehicle Equipment Industries (Fiev) intends to promote at the EQUIP AUTO
show. They are a safe bet for the revival of French industry.

The EQUIP AUTO show, a global trade hub for automotive professionals, will take
place in Villepinte, near Paris, on 16- 20 October. Parts manufacturing is the largest
sector of the automotive supply industry, accounting for €16.15 billion of a total
turnover of €44 billion. This year, EQUIP AUTO will be attended by almost 1,800
exhibitors, presenting their latest innovations. All branches of the sector will be
represented, from ignition and lighting to passenger compartment safety and
comfort. The companies have an area of almost 120,000m2 at their disposal. This
year, more than 125,000 visitors are expected, with 35% of them coming from
abroad. The show is once again making innovation a priority by organizing the
International Grands Prix for Automotive Innovation to celebrate emerging
technologies. According to Claude Cham, the head of Fiev, “in the current climate of
economic uncertainty and changing attitudes towards automotive products, our
companies must continue to work unceasingly and harder than ever to offer
innovative technologies, adapted to a diversified customer portfolio”.

Three quarters of the exhibitors that will be received in the four exhibition halls in
Villepinte represent foreign brands (from Italy, China, Germany, South Korea and
India). This is hardly a coincidence, for France is home to a large number of
subsidiaries of foreign groups, which make up 58% of the sector. There will
nonetheless be no shortage of French exhibitors at the show. The Hutchinson Group,
a global leader in rubber processing, is a particularly emblematic exhibitor. Founded
in the 19th century by an American living in France, the company invests around
€162 million annually in research and development in order to design cutting-edge
technologies. Meanwhile, Solaufil, a company that specializes in filtering, considers

66 | P a g e
EQUIP AUTO to be “a crucial showcase enabling companies to engage with French
and international customers”. Automotive industry professionals gather at the EQUIP
AUTO show N° 37 – October 2013 MINISTRY OF FOREIGN AFFAIRS PRESS AND
COMMUNICATION DIRECTORATE PRESS DEPARTMENT As well as parts
manufacturers, EQUIP AUTO also welcomes large franchisers such as Midas, Speedy
and Norauto (see Actualité en France N°…).

Actia Muller, a leader in technical inspection, will use this year’s show as an
opportunity to present Actia Vision, a preventive maintenance tool. “EQUIP AUTO is a
real challenge for our group; it is our 13 th month, in financial terms,” explains the
group’s CEO, David Vayssié. “It is also a chance to invite our international distributors
and improve our product promotion.” Fiev is relying heavily on international
development to boost the industry’s growth.

The automotive parts sector has benefited from the significant increase in global
automobile production, which rose to an unprecedented level in 2012. As a result,
the sector’s exports to Brazil, for example, jumped by 9% and those to China by 4%.
Moreover, the market’s largest stakeholders continue to open branches abroad.
Since 2006, Fiev has organized an automotive parts trade fair in Algeria. The next will
be held in March 2014 in Algiers, with around 250 exhibitors and 8,000 expected
visitors.

Automotive parts manufacturers in France allocate between 5% and 6% of their


turnover to research and development. The three main French groups in the sector
(Valeo, Faurecia and Plastic Omnium) applied for around 1,200 patents in 2012.
Groups in France therefore very often remain market leaders for both low-end and
high-end products. These remarkable performances mean that France boasts a trade
surplus of €1.74 billion for the automotive parts sector.

Turn of the twentieth century witnessed the dawning of the automobile industry.
Tinkering by bicycle, motorcycle, buggy, and machinery entrepreneurs in Europe and
the United States led to the first prototypes of automobiles in the late nineteenth
century. French woodworking machinery makers Rene Panhard and Emile Levassor
built their first car in 1890 with an engine designed in Germany by Gottlieb Daimler
and Wilhelm Maybach. Armand Peugeot, a French bicycle maker, licensed the same
engine and sold his first four lightweight cars in 1891. German machinist Carl Benz
followed the next year with his four-wheeled car and in 1893 Charles and Frank

67 | P a g e
Duryea built the first gasoline-powered car in the United States. Ransom Olds is
credited as the first mass producer of gasoline-powered automobiles in the United
States, making 425 “Curved Dash Olds” in 1901. The first gasoline-powered Japanese
car was made in 1907 by Komanosuke Uchiyama, but it was not until 1914 that
Mitsubishi mass-produced cars in Japan.

Each region in the triad—North America, Europe, and Asia—has made significant
contributions to process, product, and organization throughout the twentieth
century. These innovations together have shaped the competitive structure of the
automotive industry that exists today. The organization of production inputs—such
as labor and suppliers of components and materials—as well as the configuration of
distribution channels are also important dimensions of the growth and evolution of
the industry. Furthermore, various forces outside the industry shape industry
structure and strategies: trade flows; regional and international movement of capital;
regional and global policies on trade, environmental regulation, and intellectual
property, particularly in emerging economies; and the infusion of information
technology throughout the procurement, production, and distribution systems.

The automotive industry is dynamic and vast, accounting for approximately one in
ten jobs in industrialized countries. Developing countries often look to their local
automotive sector for economic growth opportunities, particularly because of the
vast linkages that the auto industry has to other sectors of their economy.

National/International Repute Organization or Any Other


Authentic Source For Automobile Industry

The turn of the twentieth century witnessed the dawning of the automobile industry.
Tinkering by bicycle, motorcycle, buggy, and machinery entrepreneurs in Europe and
the United States led to the first prototypes of automobiles in the late nineteenth
century. French woodworking machinery makers Rene Panhard and Emile Levassor
built their first car in 1890 with an engine designed in Germany by Gottlieb Daimler
and Wilhelm Maybach. Armand Peugeot, a French bicycle maker, licensed the same
engine and sold his first four lightweight cars in 1891. German machinist Carl Benz
followed the next year with his four-wheeled car and in 1893 Charles and Frank
Duryea built the first gasoline-powered car in the United States. Ransom Olds is
credited as the first mass producer of gasoline-powered automobiles in the United
States, making 425 “Curved Dash Olds” in 1901. The first gasoline-powered Japanese

68 | P a g e
car was made in 1907 by Komanosuke Uchiyama, but it was not until 1914 that
Mitsubishi mass-produced cars in Japan.

Each region in the triad—North America, Europe, and Asia—has made significant
contributions to process, product, and organization throughout the twentieth
century. These innovations together have shaped the competitive structure of the
automotive industry that exists today. The organization of production inputs—such
as labor and suppliers of components and materials—as well as the configuration of
distribution channels are also important dimensions of the growth and evolution of
the industry. Furthermore, various forces outside the industry shape industry
structure and strategies: trade flows; regional and international movement of capital;
regional and global policies on trade, environmental regulation, and intellectual
property, particularly in emerging economies; and the infusion of information
technology throughout the procurement, production, and distribution systems.

The automotive industry is dynamic and vast, accounting for approximately one in
ten jobs in industrialized countries. Developing countries often look to their local
automotive sector for economic growth opportunities, particularly because of the
vast linkages that the auto industry has to other sectors of their economy.

 MODERN ECONOMIC ORIGINS OF THE AUTOMOBILE INDUSTRY


Auto industry has passed through several stages:

(1) Craft production (1890-1908), in which dozens of small enterprises vied to


establish a standard product and process

(2) mass production (1908-1973), precipitated by Henry Ford’s moving assembly


lines, which became the standard operating mechanism of the industry and

(3) Lean production (1973–present), which was initially developed at Toyota under
the leadership of Taichi Ohno during the 1950s, and which introduced a revolutionary
management process of product-development and production.

Mechanization of auto production has also been transformed over the past century,
led by the need for faster and lower-cost production on the supply side of the
industry.

Ford’s mass-production system relied on standardized designs to enable the


construction of assembly plants that were fully automated and utilized
interchangeable auto parts.

69 | P a g e
In its heyday, between 1908 and 1920, Ford streamlined the assembly process to the
point where it took just over an hour and a half to produce one car.

Setting the industry standard for production enabled Ford to take the lead in market
share, but it also led to a complacent mindset that hindered innovation.

In the 1920s General Motors improved on Ford’s assembly line process by


introducing flexibility into the production system, enabling faster changeovers from
one model to the next. However, it took half a century after Ford stopped mass
producing Model T’s in 1927 for another production paradigm to emerge as the
standard in the global automotive industry.

Toyota’s lean production system—which had its beginnings in 1953—drove


productivity to new heights by replacing the “push” system with a “pull” system.

Instead of producing mass quantities of vehicles and pushing them through to


dealerships to sell to customers or hold as inventories, the lean system pulled
vehicles through the production process based on immediate demand, minimizing
inventories at suppliers, assemblers, and dealerships.

Just-in-time production also gave a larger responsibility for product design, quality,
and delivery to assembly workers and suppliers than did the mass-production system.

Suppliers were not vertically integrated into auto assembler operations, but rather
networked to the assemblers via long-term contracts.

This total system of cost-minimization and responsiveness to customer demands


revolutionized auto manufacturing on a global scale, although the model has been
adapted to regional conditions.

Product innovation in the automotive industry has mainly been a response to


customer demands, although product positioning is a critical strategic variable for
automakers.

Ever since General Motors began producing different types of vehicles for different
product segments, thereby ending the reign of Ford’s low-price, monochromatic
Model T, the ability to vary products on several dimensions has been the main
strategic variable of auto producers. U.S. automakers have mainly been responsive to
customers’ desires for comfort, speed, and safety, and have developed rugged drive
trains, plush suspensions and interiors, and stylish chassis and bodies.

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In contrast, European auto producers have focused their attentions on performance
and agility features of vehicles, such as steel-belted radial tires, disc brakes, fuel
injection, and turbo diesel engines.

For Japanese producers, the miniaturization culture and the scarcity of fuel,
materials, and space largely determine the specifications of cars.

National innovations have also occurred over the past century. In concert with the
introduction of mass production techniques came the vertical organization of
production processes.

Auto assemblers internalized the production of critical components in an effort to


minimize transaction costs associated with late deliveries and products that were not
produced to exact specifications.

For example, the share of components purchased from outside suppliers relative to
the wholesale price of an American car dropped from 55 percent in 1922 to 26
percent in 1926.

During the Great Depression, this propensity to internalize production eased, with
suppliers gaining independence and importance in the replacement parts market.

Automakers found that a highly vertical organizational structure did not permit the
flexibility in operations necessary for product innovation.

In the 1930s, Ford’s vertically integrated and centrally controlled organizational


structure gave way to the multidivisional organizational structure that was
implemented by Alfred Sloan at General Motors Corporation (GM).

Sloan’s decentralized configuration of GM fostered an independent environment for


the development, production, and sales of a wide variety of vehicles. With the lean
production revolution came the introduction of organizational reform referred to as
the extended enterprise system: Although Japanese auto manufacturers established
and diffused efficient mechanisms of supply chain management throughout the
industry, Chrysler Corporation is credited with successfully implementing these
innovations in the American venue.

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REFRENCES

[1]. Das, D.K. (2003). Quantifying Trade Barriers: Has Protection Declined
Substantially in Indian Manufacturing, ICRIER Working Paper No: 105, Indian
Council for Research on International Economic Relations, New Delhi.

[2]. Humphrey, J. (1999). Globalisation and Supply Chain Networks: the Auto
Industry in Brazil and India, in G. Gereffi, F. Palpacuer and A. Parisotto (eds),
Global Production and Local Jobs, Geneva, International Institute for Labour
Studies. Indian Foreign Trade With Reference To Automobile Industry-An
Analysis www.ijbmi.org

[3]. ICRA (2003). Report on the Competitiveness of Indian Auto Industry,


Society of Indian Automobile Manufacturers, Automotive Component
Manufacturers Association of India and Investment Information and Credit
Rating Agency of India.

[4]. ICRA (2004a). The Thailand & ASEAN India Free Trade Agreement:
Implications for the Indian Auto Industry, Automotive Component
Manufacturers Association of

[5]. Ministry of Heavy Industries and Public Enterprises (2006a). Automotive


Mission Plan 2006-2016: A Mission for Development of Indian Automotive
Industry, NewDelhi. [6]. Narayanan, K. (2004). Technology Acquisition and
Growth of Firms: Indian Automobile Sector under Changing Policy Regimes,
Economic and Political Weekly, 39

(6). NMCC (2006). The National Strategy for Manufacturing, National


Manufacturing Competitiveness Council, Government of India, New Delhi.

[7]. Organisation International Constructeurs d'Automobiles (2006). World’s


Automotive Industry: Some Key Figures, Available at
http://www.oica.net/htdocs/ Main.html

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 STEEPLED Analysis of Automobile Industry in Mauritania.

STEEPLED Analysis, which is sometimes referred as PEST Analysis is a concept in


marketing principles. Moreover, this concept is used as a tool by companies the world
over to track the environment they are operating in or are planning to launch a new
project / product/ service etc.

STEPLED is expanded from denotes S for social, T for Technological, E for


Environmental, E for Economical, P for political, L for legal and E for Ethics, D for
Demographic, It gives bird’s eye view of the whole environment from many different
angles that one wants to check and keep a track of while contemplating on a certain
idea.

S - Social
T - Technological
E - Environmental
E - Economical
P - Political
L - Legal
E - Ethics
D - Demographic
Social

 Income distribution
 Demographic changes
 Labor/social mobility
 Lifestyle changes
 Fashion changes

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Technological
 Technology relating to automobile designs
 Technology of automobile manufacture

Environmental

 This situation divides the country into two main climate zones: the Sahara and
the Sahel, each of them having a coastal element and a mainland element.
 The coastline in each climate area is characterized by relatively high humidity,
and small daily and annual variations in temperature, while the mainland area
shows much greater variations in temperatures, both daily and annual, and an
extreme dryness in the atmosphere, particularly in the Saharan region, which
experiences a very low annual rainfall with high evaporation.

Economical
 Economic growth
 Unemployment policy
 Inflation, interest rates & other monetary policies
 Consumer confidence

Political

Political climate in different countries producing a buying automobile regarding policies


on import, export and manufacture of automobiles and automobile components. This
will also include policies on allowing setting up of manufacture plants by foreign
companies.

 Stability of governments. This may affect the future conditions in a country


 Taxation policy
 6th largest passenger vehicle in the word
 Growing 16 to 18% to sell around three million units in the course of 2012-2017

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 In 2016 ,India best Thailand to become Asia’s third largest exporter of passenger
cars
 AS of 2016,india is home to 40 million passenger vehicle
 Annual vehicle sales are projected to increase to 5 million by 2015 and more than 9
million by 2020.

Legal
 Tax policies
 Employment laws
 Safety regulations
 Competition regulations

Ethics
 Provide car with low pollutant
 Make customer satisfied with what value customer has paid
 Fulfill corporate social responsibility
 Customer query handling in satisfied manner

Demographic
 Mauritania's population is 30% Arab (Berber and Beidane/Moors), 30% Black(non-
Arabized), which includes the Fula, Toucouleur, Bambara, Soninke, Serer, and Haratin
people, and 40% mixed. There are several ethnic groups: the Moors (white or Arab),
the Haratins, who are descendants of freed Sub-Saharan black slaves, the Soninke,
the Serer, who are farmers and breeders, and the Fulas, which includes farmers and
nomadic stock-breeders.

 Several black ethnic groups, particularly the Fula and Soninke, are often discriminated
against in terms of access to loans, employment, and justice. Slavery still exists in
Mauritania, and it was not made illegal to own slaves until 2007. It is believed that, in
2012, between 10 and 20% of the population of Mauritania (or up to 680,000 people)
lived in slavery.
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STEEPLED Analysis of Automobile Industry in Gujarat

Social

 Since changed lifestyle of people, leads to increased purchase of automobiles, so


automobile sector have a large customer base to serve.
 The average family size is 4, which makes it favorable to buy a four wheeler.
 Growth in urbanization, 4th largest economy by ppp index.
 Upward migration of household income levels.
 85% of cars are financed in India.
 Car priced below USD 12000 accounts for nearly 80% of the market.
 Vehicles priced between USD 7000-12000 form the largest segment in
the passenger car market.
 Indian customers are highly discerning, educated and well informed. They are
price sensitive and put a lot of emphasis on value for money.
 Preference for small and compact cars. They are socially acceptable even
amongst the well off.
 Preference for fuel efficient cars with low running costs.

Technological

 Technological factors, Cars manufactures are starting to introduce Alternative


Energy Vehicles, which are using electricity only (rechargeable batteries), fuel
cell, hydrogen, solar or hybrid.
 Despite of its expensiveness it will be solution to energy efficiency and lowering
pollution, but during simulation we were not accessed to develop purely cars, or
hybrid models despite of its existence.
 Other technologies such as synthetic materials, web procumbent technologies,
JIT Management, advanced logistics computer-aided design software, increase

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efficiency and save money.Two-wheelers and passenger vehicles dominate
Indian auto market.

 Two-wheelers and passenger cars accounted for 78 per cent and 15 per cent of
production volume in FY17 respectively.

 Domestic passenger car sales dominated by small and mid-size cars.

 Over 67 per cent of export volumes comprised of two-wheelers, followed by 22


per cent for passenger cars.

Environmental

 Environmental factors for a company or an industry refer to variables and


conditions around that company and industry that affect its working and
performance, but which cannot be controlled. For example, the weather
conditions in a city may affect the sale of Ice cream in a city, but the company
selling or manufacturing ice creams has little control over the weather.
 We can differentiate environmental factors from the internal variables of factors
that are under reasonable control of a company or industry.
 A company cannot change or influence the environmental factors, but it does
have fair amount of control over impact of environmental factors on its
performance.
 This control is achieved by, understanding, anticipating, and responding wisely to
environmental factors by management of internal factors.
 For example, a company cannot change the weather condition, but it can
manage its production and stocks of ice cream in a way that minimizes the ill
effect of uncertainty and fluctuations created by changing weather condition.

Economical
 Indian automobile industry went aboard on a new journey in 1991 with deli
censing of the sector and subsequent opening up for 100 percent FDI through
automatic route.

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 Economic pressures on the industry are causing automobile companies to
reorganize the traditional sales process.
 Since then, almost all the global majors have set up their facilities in India taking
the level of production from 2 million in 1991 to 9.7 million to 2016.
 The growth of Indian middle class with increasing purchasing Power along with
strong growth of economy over a past few years have attracted the major auto
manufacturers to Indian market.
 Increase in income level, decline in tax and interest rates have helped to increase
in personal disposable income.
 Change in mindset leading to changing investment spending pattern from
property investment to increasing consumerism, explosive growth in
communication have led to urbanization of rural consumers’ attitude and has
increased the propensity to consume.
 Therefore, increased disposable income and fast changing spending habits have
led to the increased consumerism of capital good product for human comfort.
 The market linked exchange rate and availability of trained manpower at
competitive cost have further added to the attraction to Indian domestic market.
 The growing of Indian market on one hand and the near stagnation in auto
sector in market of USA, EU and Japan on the other and have worked as a push
factor for shifting of new capacities and flow of capital to the auto industry of
India.
 The increasing competition in auto companies have not only resulted in multiple
choices for Indian consumers at competitive costs, it has also ensured an
improvement in productivity by almost 20 percent a year in auto industry which
is one of the highest in Indian manufacturing sector.

Political

 The Indian government formulated an auto policy that aimed at promoting


integrated, phased, enduring and self-sustained growth of the Indian automotive
industry

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 Allows automatic approval for foreign equity investment up to 100% in the
automotive sector and does not lay down any minimum investment criteria
 Formulation of an appropriate auto fuel policy to ensure availability of adequate
amount of appropriate fuel to meet emission norms
 Confirms the government’s intention on harmonizing the regulatory standards
with the rest of the world
 Indian government auto policy aimed at promoting an integrated, phased and
conductive growth of the Indian automobile industry.
 Allowing automatic approval for foreign equity investment up to 100% with no
minimum investment criteria.
 Establish an international hub for manufacturing small, affordable passenger cars
as well as tractor and two wheelers.
 Ensure a balanced transition to open trade at minimal risk to the Indian economy
and local industry.
 Assist development of vehicle propelled by alternate energy source.
 Lying emphasis on R&D activities carried out by companies in India by giving a
weighted tax -deduction of up to 150% for in house research and R&D activities.
 Plan to have a terminal life policy for CVs along with incentives for replacement
for such vehicles.
 Promoting multi-model transportation and the implementation of mass rapid
transport system.

Legal

 Indian Automotive Industry comprises of the automobile and the auto


component segments and is one of the fastest growing manufacturing sectors in
the country.
 Production and distribution of automobiles, trucks, buses, heavy equipments
and automotive components have become global ventures involving diverse
international relationships and transactions. We are a law firm having great deal
of experience in rendering legal services on various aspects of automobile
industry.
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 We advise automobile companies on various issues including regulatory
compliances, FDI, industrial licensing, taxes, regulations related to industry and
labor, Government and institutional approvals, etc. Our Firm has drafted and
submitted the first draft of the National Regulatory Authority of India on
Automobiles Act. We represent various companies from the automobile sector
in the transactional arena including mergers and acquisitions, divestitures, joint
ventures, and strategic alliances.
 Litigation and arbitration matters have evolved out of product liability, consumer
fraud, supplier relationship, intellectual property, labor relations, antitrust and
competition, workplace and employment issues. Our clients include National
Automotive Testing and R&D Infrastructure Project (NAT), the largest and one of
the most significant initiatives in Automotive sector so far, representing a unique
alliance between the Government of India, a number of State Governments and
Indian Automotive Industry to create a state of the art Testing, Validation and
R&D infrastructure in the country.

Ethics
 Ford produced a car in the ’70s called Pinto. This was a time when there was a
global oil crisis with prices shooting up and fierce competition from Volkswagen
and Japanese car manufacturers. The Pinto was the baby of Ford’s CEO, Lee
Iacocca, and was meant to turn around the company. -The mandate was clear –
get the car produced ASAP. There was severe time pressure for an extremely
complex production. But there was a design flaw – the fuel tank was at the rear
of the small car. So there was a risk that if someone banged the car from the
rear, the car could explode. The smart financial analysts at Ford scurried to their
calculators. They did a cost-benefit analysis, comparing the cost of repairs ($137
million) vs. the possible cost of settlements for deaths and injuries ($50
million). The infamous ‘Pinto Memo’ analyzed each cost – $11 per car to repair
it, $ 200,000 paid to each dead victim, $67,000 paid to each burn victim, etc.
Hence, no action was taken because it made cold-blooded financial sense to let

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people die in a car with a design flaw. Ford finally stopped production after a
1978 case where three teenagers died when their Pinto exploded in an accident.

 The argument by the Indian car manufacturing industry today is the same – the
cost of lives is less than the cost of improving the safety standards of small cars
in India. The Pinto story became a symbol of the cold-hearted profit
maximization attitude of companies. Unfortunately, after 40 years we hear a
repeat in India.

 In the ’70s, there was no strong focus on car safety. People believed that
accidents happened because of bad drivers and bad roads. This sounds so much
like us in India today, 40 years later.

 Gioia said that there was a clear standard operating process to call back the car –

 (1) how many cars have this problem

 (2) Is there a clear traceability.

 Pinto had a problem – they knew that. But they were under tremendous time
pressure and could not get conclusive evidence to trace the design flaw to the
deaths. Remember the Pinto was the baby of the CEO of the company. And there
was an oil crisis. And competitors were aggressively gaining market share.
Iacocca used to famously say that safety did not sell.

 The manufacturers of small cars in India can learn a lot form Ford’s Pinto
episode. From what I read in the papers they are experiencing the same form of
ethical blindness (it is unfair to single out Bhargav of Maruti Suzuki only; but he
was the one quoted in the press).... some day they will realize that their
argument was totally unethical.

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Demographic

 The population of the Gujarat State was 50,671,017 as per the 2001 census data.
Gujarat Population data show that Gujarat has Total Population 6.03 Crores.
Literacy rate in Gujarat has seen upward Trend and is 79.31%.Its official and
primary language is Gujarati.
 As per official census, population of India has reached 1.21 Billion (121 crore) in
2011 which is an increase of17% from the earlier figure of the 103 chore of 2001.
Although population growth rate has decreased but actual Population continue
to rice. As per estimates, it is expected that India would be most populous
country by 2025Overtaking china
 Gujarat population on census Data shows that it is has total population of 6.03
crore which is approximately 4.99% of total India population. Literacy rate in
Gujarat has seen upward trend and is 79.31% as per 2011 population census of
that, male literacy stands at 87.23% while female literacy is at 70.73%
 Urban population of the state 42.6%, which used to be at 37.4% in 2001.
 Rural population in the state in 2011 fell to 57.4 from 62.6% in 2001
Ahmadabad is the most populated District in the state, with 7.20 million people,
up 11.94% from 2001,followed by surat with 6.07 million people, up 10.07% as
per Gujarat’s Directorate of census operation.

Estimated 6.03 crore Female 28,901,346


population

Actual population 60,383,628 Sex Ration 918

Population 19.17% Percentage of 4.99%


Growth total Population

Area km2 196,024 Literacy 79.31

Area mi2 75,685 Male Literacy 87.23

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Density/km2 308 Female Literacy 70.73

Density/mi2 798 Total literate 41,948,677

Male 31,482,282 Male literate 23,995,500

Female Literate 17,953,177

Comparative Analysis of STEEPLED in Tabular Form

STEEPLED MAURITANIA GUJARAT


FACTORS
SOCIAL  Income Distribution  Price sensitive and put a
lot of emphasis
 Value for money
TECHNOLOGICAL  Automobile designs  Synthetic materials, web

 Automobile procumbent technologies,

manufacture  JIT Management, advanced


logistics computer-aided
design software,
 Increase efficiency and save
money
ENVIRONMENTAL  Sahara and the  Environmental factors for
Sahel, coastal a company or an industry
element and a refer to variables and
mainland element conditions
 climate area is  Industry that affect its
characterized by working and performance
relatively high  which cannot be
humidity, and small controlled
daily and annual
variations in

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temperature, while
the mainland
ECONOMICAL  Economic growth  Increasing purchasing
 Inflation, interest Power along with strong
rates &other growth of economy
monetary policies
 Increase in income level,
decline in tax and interest
rates
 Increase in personal
disposable income.
POLITICAL  Taxation policy  Auto Policy
 6th largest passenger  Promoting integrated,
vehicle in the word phased, enduring and
 Growing 16 to 18% self-sustained growth
to sell around three  Emphasis on R&D
million units in the activities carried
course of 2012-2017  Weighted tax -deduction
of up to 150% for
research and R&D
activities.
LEGAL  Tax policies  Auto component
 Employment laws segments
 Safety regulations  Law firm
 FDI, industrial licensing,
taxes, regulations related
to industry and labor,
Government and
institutional approvals,
etc.
 National Regulatory

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Authority of India on
Automobiles Act.
ETHICAL  Provide car with low  Standards of small cars
pollutant  Cost of lives is less than
 Make customer the cost of improving the
satisfied safety
 Fulfil corporate social
responsibility
 Customer query
handling
 satisfied manner
DEMOGRAPHIC  Population is 30%  Total Population 6.03
Arab Crores
 40% mixed several  Rural population in the
ethnic groups state in fell to 57.4 from
 Slavery still exists 62.6%
 10 and 20% of the  Ahmadabad is the most
population of populated District in the
Mauritania (up to state, with 7.20 million
680,000 people) people
lived in slavery  India would be most
populous country by
2025 Overtaking china

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SWOT Analysis of Automobile Industry in Mauritania.

S - Strength

W - Weakness

O - Opportunity

T - Threats

Automobiles like Cars, bikes and public transport systems are one of the most important
building blocks for Society. Cars can be status symbol, they can be necessary transport,
and they can be for sport and whatnot. So what are the strengths, weaknesses,
opportunities and threats in the automobile industry?

Strengths
 Evolving industry: In Mauritania Automobiles represent freedom
and economic growth. Automobiles allow people to live, work and travel in ways
that were unimaginable a century ago. But in Mauritania Automobiles provides
access to markets, to doctors, to jobs. Nearly every automobile trip ends with
either an economic transaction or some other benefit to the quality of life.

1. Continuous product innovation & technological advancement : With the advent


of E-vehicles & alternative fuel such as Shell gas, CNG and others, Automobile
Companies are increasing R & D expenditure to drive the next phase
of growth through use of renewable sources of energy which may be solar, wind
etc.
2. Growth shifting to Asian markets: Although American & European market is the
pulse of this Industry, but the focus is shifting to developing markets like China,
India & other Asian nations because of the rise in disposable income,
changing lifestyle & stable economic conditions.
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3. Increasing demand of VFM vehicles: Intense competition in the
matured/developed markets has forced automobile manufacturers
to target developing economies. But these developing economies have high
demand for VFM products (value for money). In the automobile industry, VFM
products would be fuel efficient, high mileage vehicles because majority of
customers in these nations prefer vehicles for commuting. On the other hand,
developed nations need is of vehicles for interstate travelling and high speed
vehicles suitable for long route with high engine power.
4. Increase in demand of luxury commercial vehicles : Companies like VOLVO,
Daimler/Chrysler, Bharat Benz are betting high & are targeting the developing
nations due to increase in demand of Luxury public transportation system.
5. Manufacturing facilities in Mauritania to control cost: In order to control cost &
to manage shrinking margins automobile companies like Harley, Volvo, Bharat
benz etc. Are building their manufacturing facilities in developing nations like
India, China because these nations have cheap workforce, are high in resources &
are nearer to developed economies. These are classic conditions of an emerging
market.

Weaknesses

1. Cars recalled: Controversies relating to recalling vehicles on account of some


technical dis-functionality or non-abidance to govt. led rules is becoming very
common.
2. Bargaining power of consumers: Over the last 3-4 decades the automobile
market has shifted from demand to supply market. Availability of large number of

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variants, Stiff competition between them, and long list of alternatives to choose
from has given power to customers to choose whatever they like.
3. Growth rate of Automobile industry is the in the hands of the government due to
regulations like excise duty, no entry of outside vehicles in the state, decreasing
number of validity of registration period & volatility in the fuel prices. These
factors always affect the growth of the industry.

Opportunities

1. Introducing fuel-efficient vehicles: Optimization of fuel-driven combustion


engines and cost efficiency programs are good opportunities for the automobile
market. Emerging markets will be the main growth drivers for a long time to
come, and hence fuel efficient cars are the need of the hour.
2. Strategic Alliances: Making strategic alliances can be a smart strategy for
Automobile companies. By using specialized capabilities & partnering with other
companies, they can differentiate their offerings.
3. Changing lifestyle & customer groups: Three powerful forces are rolling the auto
industry. Shift in consumer demand, expanded regulatory requirements for safety
and fuel economy, and the increased availability of data and information. Also
with the increase in nuclear families there has been increase in demand of two-
wheelers & compact cars and this will grow further.
4. Market expansion : Mauritania entering new markets like Asian & BRIC nations
will result in upsurge in demand of vehicles. After these markets, other markets
are likely to emerge soon.
5. OEM priorities: Given the increase in electronic content, OEMs need to
collaborate with suppliers and experts outside the traditional auto industry.
Accomplishing this will require changes in the way OEMs function. OEMs will be
looking to their top suppliers to co-invest in new global platforms & this will be
the driving force in the future.

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Threats

1. Intense Competition: Presence of such a large number of players in the


Automobile industry results into extensive competition, every company eating
into others share leaving little scope for new players.
2. Volatility in the fuel Prices: At least for the passenger segment fluctuations in the
fuel prices remains the determining factor for its growth. Also government
regulations relating the use of alternative fuels like CNG. Shell gas is also affecting
the inventories.
3. Sluggish Economy: Macroeconomic uncertainty, Recession, un-employment etc.
are the economic factors which will daunt the automobile industry for a long
period of time.
4. High fixed cost and investment in R & D: Due to the fact that mature markets are
already overcrowded, industry is shifting towards emerging markets by building
facilities, R & D centers in these markets. But the ROI out of these decisions is yet
to be capitalized.

SWOT Analysis of Automobile Industry in Gujarat.

Strengths

 Investment by foreign car manufacturers


 Increase in the export level
 Low cost and cheap labor
 Rise in the working and middle class income
 Increasing demand for European quality
 Expert skills in producing smalls car –good for environment
 Large pool of engineers

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Weaknesses

 Low quality compared to other automotive countries


 Low labor productivity
 High interest and overhead level
 Production cost are generally higher than some other Asian stats, such as china
 Low investment in R&D area
 Local demand is still toward low cost vehicles, due to low income level.

Opportunities

 Growing population in the country


 Focus from the government in improving the road infrastructure
 Rising living standards
 Increase in the income level
 Better car technology is demanded
 Rising rural demand
 The car is the status demand
 Women drivers have increased

Threats

 Less skilled labor


 Lack of technologies for the Indian companies
 Increase in the import tariff and technology cost
 Import of two wheelers form the Chinese market in India
 Smaller players that do not fulfill international standards
 Increase congestion in the urban areas

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RAJASTHAN

Overview of Rajasthan State

Population:
Rajasthan with a population of 75,984,317 people is ranked as 7th populous
state of India. Nearly ninety percent of Rajasthan's population is Hindu with Muslims
making up the largest minority with eight percent of the populations. Janis - the
merchant and traders from Rajasthan constitute a significant presence.

Current Population of Rajasthan in 2017 75,984,317

Population of Rajasthan in 2016 74,791,568

Population in 2015 73,529,325

Total Male Population 35,620,086

Total Female Population 33,000,926

Sex Ratio in Rajasthan 926 females per 1,000 males

Official Language:
 Hindi

Ethnic Groups:
 Ahirs,Jats, Gurjars, Rajputs, Rajput Mali, Meenas, Bhils, Kalvi, Garasia,
Vaishya(Baniya), Kanjar etc.

Rajasthan form an ethno-linguistic group that is distinct in its language, history,


cultural and religious practices, social structure, literature, and art. However, there are
many different castes and communities, with diversified traditions of their own.

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Natural Resources:
 Copper
 Zinc
 Lead
 Gypsum
 Silver Ore

 Mica
In India, Rajasthan is the greatest producer of non-ferric metals such
as copper and zinc and accounts for 40% of the country's copper production and 100%
of zinc production. The state also accounts for 85% of lead production, 94% of gypsum,
76% of silver ore, 68% of feldspar, 84% of asbestos and 12% mica.

Transportation connectivity of Gujarat with Rajasthan

 By Air
 By Rail
 By Road

1) By Air:
Rajasthan is easily accessible by air. Jaipur has the International Airport of the State.
The other nearest International Airport from Rajasthan is Delhi which is 260 km away
from Rajasthan. There are a number of domestic Airports in Rajasthan at Jodhpur,
Udaipur and Jaisalmer. Rajasthan has only one International flight landing at Jaipur from
Dubai.

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2) By Rail:
Most of the cities of Rajasthan are connected by daily services from major states and
cities of India like Delhi, Kolkatta, and Mumbai etc. Rail happens to be one of the
cheapest means to reach Rajasthan.

3) By Road:
The state of Rajasthan is having well connected road network. Considering the
connectivity of the state through several state highways and National highways. 1,
50,876 km of road network runs across the state of Rajasthan. The National highways
link Rajasthan with the state of Delhi, Uttar Pradesh, Gujarat and Mumbai.

 Gujarat to Rajasthan Bus:


Bus timings from Gujarat to Rajasthan are around 14 hours and 35 minutes when
your bus maintains an average speed of sixty kilometres per hour over the course of
your journey. The estimated travel time from Gujarat to Rajasthan by bus may vary or it
will take more time than the above mentioned time due to the road condition and
different travel route. Travel time has been calculated based on crow fly distance so
there may not be any road or bus connectivity also. Bus fare from Gujarat to
Rajasthan may be around Rs.552.

Major Industries:
 Textile Industries
 Rugs Industries
 Woollen Goods Industries
 Vegetables Oils Industries
 Dyes Industries

1) Textile Industries:
Textile is one of the most particular and specific expressions of that nations culture
and heritage. In villages of Rajasthan, textile traditions, learned via a costume tradition
and spanning countless generations.

95 | P a g e
The glory of Rajasthan, apart from the bravery of its Rajput rulers, forts, and
royalty, is also associated with the production of color fabrics in the Maru-
Gurjar tradition since ancient times. Their sense of color-aesthetics has led to the use
of colors and motifs intended for different occasions.

Textile is the chief industry and the Rajasthan is considered as India's second largest
producer of Polyester Fiber. It is grown in the Bhilwara district of Rajasthan. Besides
these, Rajasthan is also involved in the large scale production of cotton and wool in the
country. In total the production of Textiles accounts 21.96 % in the state. Rajasthan
also produces huge quantities of spun yarn and hence is the fourth largest producer in
India.

 Cement Industry - The state of Rajasthan is also the major producer of cement
and accounts for 15 per cent of the cement output of the country.

 Chemical Industry- The chemical industry produces calcium carbide, caustic


soda, sulphuric acid, pesticides insecticides and fertilizers.

 Salt Production- Rajasthan is the third largest producer of salt (sodium chloride)
in the country and accounts for the country's one-tenth of salt production.

The large mineral and metal deposits like zinc, copper, lignite, gypsum and mica in the
state have also fostered the growth of a large number of industries that are involved in
producing by-products by utilizing these natural resources.

2) Rug Industries:
According to Rajasthan Chamber of Commerce and Industries (RCCI), the carpet
sector supports more than 30, 00,000 people in the state and employs around 35000
people in Jaipur and nearby areas. Beawar, Jaisalmer, Bikaner are major areas known for
wool mandis. On an international scale, the state is well known for ethnic carpets,
elegant Namdahs, Pattu, quilts and woolen shawls.

96 | P a g e
Rajasthan’s carpet industry is known to deliver quality carpets with majestic designs.
The designs have a strong influence from the Mughal Dynasty. Hunting patterns with
trees and floral motifs are usually the designs found. Most of the carpets are hand-
knotted and are manufactured with floral or angular motifs. These carpets are known
for their high quality of craftsmanship and color-fastness, which makes it more durable.

3) Woollen Goods Industries:


Currently, Rajasthan is the largest wool producing state in India. There are 70 wool
processing units in the state, and with over 15 million tones wool production ever year,
Rajasthan represents over 30 per cent of the wool production in India. The state has
eight different breeds of sheep that are well-known for producing high quality carpet
wool.

According to the recent figures from the Government of India, the India’s top 10
wool producing states in 2014 and 2015 were Rajasthan, Karnataka, Jammu & Kashmir,
Telangana, Gujarat, Himachal Pradesh, Uttar Pradesh, Haryana, Maharashtra and
Andhra Pradesh.

4) Vegetables Oil Industries:


Rajasthan is India's largest state by area It is located on the north western side of
the India,Rajasthan is among the largest producers of Vegetables oils in India and the
second largest producer of oilseeds.

5) Dyes Industries:
Rajasthan Dyes and Chemicals & Arham Chemicals are very well-established firms
working since 1981 as Major Manufacturer and Supplier in India. Firms deal in of various
types of Textile Dyes such as Sulphur Black Dye, Sodium Thiosulphate. These Textile Dyes
are used in different industries like Textile, Paper, and Paint, Cotton clothes, Shoes &
other Fiber industries. Our products are supplied across Asia and are made as per the
international quality standards.

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Contribution in GDP
With a 12.83 percent hike in the gross state domestic product (GSDP) of Rajasthan
from 2004-05 to 2014-15, Rajasthan has 2.5 percent of its economy contributed by the
small industries and the overall industrial sector

Having recorded a tourist count of up to 34.59 million, Rajasthan offers numerous


opportunities to expand the luxury tourist segment of the country as a whole. With a
12.83 percent hike in the gross state domestic product (GSDP) of Rajasthan from 2004-
05 to 2014-15, Rajasthan has 2.5 percent of its economy contributed by the small
industries and the overall industrial sector.

Metals such as copper, zinc, mica, gypsum and lignite are found in abundance in
Rajasthan. Witnessing an extensive production of cotton, the state's textile industry is
also growing at a rapid pace. Other private industries set on the path of success in
Rajasthan include caustic soda, sugar, ball bearings, vegetable oil, woollen goods, rugs
and cement. The state contributes one tenth of the salt produced in India.

Rajasthan accounts for India's ninety percent mineral reserves. Out of the twenty
million hectares of land that is being cultivated, only a marginal twenty percent land is
being irrigated. Here, it is crucial to know that twenty two percent of Rajasthan's
economy is accounted by the agriculture sector. Main crops cultivated in the state
include Wheat, Barley, Gram, Bajra, vegetables, fruits, Pulses, Gram, Oil Seeds, Maize
Ground Nuts and spices. While the months of June and July witness the crowd being
sown, the months of September and October see them get harvested. Tanks and wells
being the two main sources of irrigation utilized in Rajasthan, the state has fruit
cultivated throughout the year.

As per the Resurgent Rajasthan Partnerships Summit 2015 held in Jaipur on


November 19th and 20th, agreements worth Rs 1.5 lakh crore have been signed with
firms dealing in sectors including textiles, solar, petroleum and mining. Aiming to
become a prime investment destination in India, Rajasthan is seeking plenty of
98 | P a g e
investments owning to the inherent climatic advantages. Having received investment
proposals worth Rs 5000 crore in the textile sector, Rajasthan will have more and more
textile units getting operational which would further generate employment
opportunities for over 25,000 people in 2016 and 2017. The state has an impressive pool
of technically qualified individuals who are working towards upliftment of its economy.

In addition to the Bureau of Investment Promotion (BIP) that is set up for focusing
on investments of US$ 2.2 million+, there is a single window clearance system (SWCS)
that is already operational in Rajasthan. Additionally, IT Parks with exquisite
infrastructure have also been developed in this Indian state.

99 | P a g e
OVERVIEW OF AUTOMOBILE INDUSTRY IN RAJASTHAN

Contribution of Automobile Industry in National GDP

The Indian auto industry is one of the largest in the world. The industry accounts
for 7.1 per cent of the country's Gross Domestic Product (GDP). The Two Wheelers
segment with 80 per cent market share is the leader of the Indian Automobile market
owing to a growing middle class and a young population. Moreover, the growing
interest of the companies in exploring the rural markets further aided the growth of the
sector. The overall Passenger Vehicle (PV) segment has 14 per cent market share.

India is also a prominent auto exporter and has strong export growth
expectations for the near future. In April-March 2017 exports of PV and Commercial
Vehicles (CV) registered a growth of 16.20 per cent and 4.99 per cent respectively, over
April-March 2016. In addition, several initiatives by the Government of India and the
major automobile players in the Indian market are expected to make India a leader in
the 2W and Four Wheeler (4W) market in the world by 2020.

Auto industry is said to be the engine of growth in most developed countries,


including in China and India today. Indian automobile industry which was at its nascent
stage at the beginning of the 21st century has now become a huge industry that
contributes majorly to growth and development of Indian Economy. As per the current
statistics, the auto industry’s turnover is estimated to be equivalent to:
 7.1% of overall GDP

 About 26% of Industry GDP

 About 49% of manufacturing GDP

100 | P a g e
The industry employs 29 million people, directly and indirectly, and contributes to 13%
of excise revenue for the Government. The Automotive Mission Plan 2006-16, a joint
document of the Government and industry has projected that the industry’s turnover
would increase from US$ 34 billion to US$ 145 billion, an investment of US$ 35-40
billion (Rs.160,000 -180,000 cores) and 25 million additional job would be created over a
period of 10 years. The auto industry’s contribution to GDP would rise from nearly 5% to
10%, thus making it a greater driving force of the economy.

As envisaged, the industry has made major investments to achieve the targets set. The
industry has made investments to the tune of Rs 50,000 cores in the last three financial
years. However at the current level of growth, the industry is expected to be just over
US$110 billion, a shortfall of about 25%.

The industry was growing at the right place until financial year 2012 to achieve the
targets set in AMP 2016. However, the industry witnessed two difficult years, FY13 and
FY14, in which the segments across the industry witnessed de-growth, carrying nearly
60% surplus production capacity.

The current change in policy environment and consumer sentiments have brought the
industry out from the bottoms seen during the last two financial years. The Government
recognized the fact that automobile industry was one of the highest taxed industries in
India and the high taxes were acting as a deterrent for growth of the industry. Hence, in
the Interim Budget 2014-15 excise duties on all products across various segments within
automobile industry were reduced.

The changes to the excise duties were as below:


 Excise duty on small cars, commercial vehicles, two wheelers and three wheelers was
reduced from 12% to 8%

 Excise duty on (other passenger vehicles) of engine capacity not exceeding 1500 cc was
reduced from 24% to 20%
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 Excise duty on (other passenger vehicles) of engine capacity exceeding 1500 cc was
reduced from 27% to 24%

 Excise duty on SUVs/UVs of engine capacity exceeding 1500 cc was reduced from 30% to
24%

This reduced duty structure regime was further extended until December 2014 in June
2014, before the General Budget 2014-15 was announced in July 2014. Even after the
reduced duties on automobiles, the industry is highly taxed. For every Rs 100 that the
four-wheeler auto industry (other than small cars) collects from the consumer, the
Government collects approximately Rs 81 from the consumer in the form of various
taxes such as excise duty, sales tax, road tax and service tax. While for every Rs 100 that
the four-wheeler auto industry (small cars) collects from the consumer, the Government
collects approximately Rs 58 from the consumer in the form of various taxes. Taxes are
levied on fuels as well.

The auto industry currently employs more than 29 million people both directly and
indirectly. The auto-industry is a key employment generator in the OEM factory that
manufactures the vehicles, in the inbound auto component and logistics industry that
makes and delivers components & systems and the outbound logistics and dealer
network that sells, maintains and distributes the cars. Every vehicle produced, generates
secondary and tertiary employment. The industry generates employment of 13 persons
for each truck, 6 persons for each car and four persons for each three wheeler and one
person for two-wheelers. It is important to appreciate the sector’s multiplier effect on
economic activity. If the industry produces as per its potential, it could generate
employment of over 35 million people by 2016.

If the Government’s objective is to increase the share of manufacturing in the GDP of


the economy from an estimated 15 per cent to at least 25 per cent so that employment
gets a definite boost, the role of auto industry cannot be ignored and the industry has

102 | P a g e
already made investments to achieve this objective and have increased the capacity to
levels that would be needed to achieve the objective.

The industry requires the Government to support by providing it an atmosphere that


facilitates growth. While the auto industry is focused on generating volumes in the
different segments to garner growth, it is in the interest of the Government to continue
with the lower excise rates as this will help increase volumes and garner additional tax
revenue. High tax rates and consequent high prices of vehicles have a harmful effect of
lowering volumes, lowering gross tax collections and ultimately lowering growth in the
auto sector.

The Government should facilitate a conducive environment for growth of auto industry
by defining favourable long-term policy for investment. Due to the unfavourable policy
environment in the country where tax rates on vehicles are getting changed every year
and Government is negotiating FTAs where custom duties are likely to come down,
many international companies that had plans to enter the market have stalled the plan
and are now considering other emerging markets, such as China and Brazil.

The automobile industry in India is one of the most successful stories of post
liberalization manufacturing space in India and entirely based on prudent policy support
of the Government.

Major Players Of Automobile Industry With Market Share

INDUSTRY MARKET SHARE


TATA MOTERS 31.2%
HYUNDAI MOTOR INDIA 17%
MAHINDRA & MAHINDRA 11.4%
TOYOTO KIRLOSKAR MOTOR 42%

103 | P a g e
 Two-wheelers are by far the most popular form of vehicle in India, taking an 80% share
in 2015-16.

Two wheelers 79%


Three wheelers 3%
Commercial wheelers 3%
Passenger 15%

Local Taxes
The taxes levied by the Government of Rajasthan (State Level Taxes) other than the
direct taxes levied by the Government of India include:

 Value Added Tax (VAT)


VAT rate ranges from 0% to 15% for different kinds of goods. Few defined list of
goods are taxable at special rates ranging from 14% to 50% as specified in Schedule VI of
the Act.

 Entry Tax Goods

Entry tax in Rajasthan is governed by Rajasthan Tax on Entry of Goods into Local
Areas Act, 1999. The rate ranges from 0.25% to 15%. Specific exemption from entry tax
has been provided to these goods wherein they are sold in Rajasthan.

 Entertainment Tax

The notified rate of entertainment tax in Rajasthan is 10% to 30% of the payment on
admission to an entertainment.

 Electricity Duty

The levy and collection of this is determined by the usage of electricity like
Commercial, Domestic, Agricultural, etc.

104 | P a g e
 Luxury Tax

The rate of tax payable by the owner of the Hotels or the Lodging Houses under The
Rajasthan Tax on Luxuries (in Hotels and Lodging Houses) Act, 1990 (Act No. 9 of 1996),
for luxuries provided in the hotels or lodging houses, shall be as follows:

 10% for all hotels excluding heritage hotels but including heritage hotels categorized
in the “Grand" category by Government of India or categorized as equivalent to
“Grand" category by a Committee constituted for the purpose by the State
Government, if rate of charges for luxuries is Rs. 3001/- or more per day or part
thereof

 8% for all other hotels, if rate of charges for luxuries is Rs. 3001/- or more per day or
part thereof

 Rate of Tax during Off Season:


 50% of the Luxury Tax Payable in the months of April, May, June and July in whole
area of Rajasthan, excluding the notified area of Mount Abu

 50% of the Luxury Tax Payable in the months of April, May, June and July in whole
area of Rajasthan, excluding the notified area of Mount Abu.

Duties

 Excise duty on small cars, commercial vehicles, two wheelers and three wheelers was
reduced from 12% to 8%

 Excise duty on (other passenger vehicles) of engine capacity not exceeding 1500 cc
was reduced from 24% to 20%

 Excise duty on (other passenger vehicles) of engine capacity exceeding 1500 cc was
reduced from 27% to 24%

 Excise duty on SUVs/UVs of engine capacity exceeding 1500 cc was reduced from
30% to 24%

105 | P a g e
This reduced duty structure regime was further extended until December 2014 in
June 2014, before the General Budget 2014-15 was announced in July 2014. Even after
the reduced duties on automobiles, the industry is highly taxed. For every Rs 100 that
the four-wheeler auto industry (other than small cars) collects from the consumer, the
Government collects approximately Rs 81 from the consumer in the form of various
taxes such as excise duty, sales tax, road tax and service tax. While for every Rs 100 that
the four-wheeler auto industry (small cars) collects from the consumer, the Government
collects approximately Rs 58 from the consumer in the form of various taxes. Taxes are
levied on fuels as well.

The auto industry currently employs more than 29 million people both directly and
indirectly. The auto-industry is a key employment generator in the OEM factory that
manufactures the vehicles, in the inbound auto component and logistics industry that
makes and delivers components & systems and the outbound logistics and dealer
network that sells, maintains and distributes the cars. Every vehicle produced, generates
secondary and tertiary employment. The industry generates employment of 13 persons
for each truck, 6 persons for each car and four persons for each three wheeler and one
person for two-wheelers. It is important to appreciate the sector’s multiplier effect on
economic activity. If the industry produces as per its potential, it could generate
employment of over 35 million people by 2016.

Special benefits given by state government to automobile


industry

The auto and auto components’ industry is expected to have a multiplier effect and
generate a large number of employment opportunities. The following initiatives will be
taken in order to give impetus to automobile and auto component industry in the State.
A sufficiently large are of land will be identified by Rajasthan State Industrial
Development and Investment Corporation (RIICO) and reserved for an auto park which
would accommodate the expected investments in auto and auto component sector over

106 | P a g e
the next 5 years. The specific infrastructural facilities required by the auto/ auto
component industry will be provided in the auto park.
The State Government have already announced an attractive package of incentives for
grassroots Car/automobile projects which includes interalia, investment in equity,
purchase tax exemption for 7 years and Sales Tax exemption/deferment for a period of
12 years without any limit and octroi exemption for a period of 10 years. However, for
premier units with a minimum investment of Rs.150 cores and regular employment of at
least 500 persons, the State Government would offer more attractive, customized
incentives. An equally attractive Incentive Package has been announced for auto
component and other auto units like Motor Cycles, Scooters, Tractors, etc.

107 | P a g e
COMPARATIVE ANALYSIS OF AUTOMOBILE INDUSTRY IN
RAJASTHAN

SWOT ANALYSIS
SR. Feature/ Rajasthan Gujarat
No. Factors
1 Strength  Software has  Large pool of engineers
embedded the best car  Investment by foreign
rental practices car manufactures
 Rental locations are  Low cost and cheap
operating in on –line labour
 Our brand is known  Experts skills in
worldwide production small cars –
 Process well good for enviourment
documented driving
operations
2 Weakness  Non revenue with car  Low quality compared
review to other automotives
 Agents expending their countries
time checking cars  Low labour productivity
 Less GPS than would be  Low investment R&D
necessary area
 Communication is not  Local demands is still
good, very towards low cost
misunderstanding vehicles , due to low
income levels
 High interest rate and
overhead level
3 Opportunities  Companies are looking  Growing population in
for long term rental, the country
leasing  Increase in income
 Foreign clients are level
asking for chauffeurs  Rising living standards
 Ecological issues are  Better car technology
making ethanol cars demand
valuable  The car is status symbol
 Women’s drivers have
increased
 Focus from the govt in
improving the road
infrastructure
108 | P a g e
4 Threats  Now competitors  Less skilled labour
arrives  Lack to technologies
 Increasing thefts on for Indian companies
cars  Smaller players that do
 Chaotic traffic not fulfil international
 Competitors offerings standards
prices 10% cheaper  Increase in the import
tariff and technology
cost
5 Area (342,239 square kilometres 196,024 km2 (75,685 sq mi)
(132,139 sq mi) or 10.4% of
India's total area)
6 Major  Amtel Auto ltd.  TATA MOTORS.
Industries  Ashok Leyland.  FORD.
 TAFE  MARUTI SUZUKI
 Hi-tech cars Ltd.  GENERAL MOTORS.
 National Engineering  HONDA. ETC.
Industries Ltd.
 Autolite India Ltd
 Honda Siel Cars India
Ltd
 Caparo Fastners.Ocap
Chassis Parts Pvt. Ltd.
 Motor Industries
Company (MICO)
 Continental Engines
7 Products  Vehicle Speed Limiting  Deep Drawing
Devices Automotive
 Dicky Shocker Components
 Vehicle Cover  Grounding Lugs
 Mud Flaps Sheet  Compression Springs
 Automobile Felts  Automotive Radiator
 Automotive Interior Frames
Fabrics  Valve Spare Parts
 Cargo Net  Auto Gas Spare
 Spare Oil Exploration
 Turbo Chargers Casting

109 | P a g e
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COMPETITIVE STRUCTURE

MAJOR COUNTRIES OF PRODUCTION AND CONSUMPTION

IMPORTANCE OF THE INDUSTRY FOR MACROECONOMIC ACTIVITY AND INTERNATIONAL


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k1.0.-msKFgBJv7k
https://www.google.co.in/search?biw=1366&bih=662&ei=AIkFWvLa
CIzcvgSQypyoDg&q=gujarat+area&oq=gujarat+area&gs_l=psy-
ab.3..0i20i263k1j0l2j0i7i30k1l2j0j0i7i30k1l4.53439.56133.0.57021.16
.11.0.0.0.0.276.1328.0j2j4.6.0....0...1.1.64.psy-
ab..11.5.1133...0i67k1j0i7i10i30k1.0.eHc_96ROV0A
https://www.google.co.in/search?biw=1366&bih=662&ei=PosFWtyl
GcnpvgTGgLCQAg&q=major+industries+in+rajasthan&oq=major+ind
ustries+in+rajasthan&gs_l=psy-

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ab.3..35i39k1j0i7i30k1j0i8i30k1l5.9515.10125.0.10973.9.4.0.0.0.0.30
3.303.3-1.1.0....0...1.1.64.psy-ab..8.1.303....0.7ha1XAImvHw
https://www.google.co.in/search?biw=1366&bih=662&ei=TIkFWoPS
DaGcvQSwtaK4Dw&q=gujarat+major+industries&oq=gujarat+major+
industries&gs_l=psy-
ab.3..0j38.52655.57457.0.59369.16.15.0.0.0.0.449.2744.2-
5j3j1.9.0....0...1.1.64.psy-
ab..7.9.2743...0i131k1j0i10k1j0i22i30k1.0.mca2zysA5pw
http://www.economywatch.com/indian-automobile-industry/top-
players.html
https://www.ibef.org/download/Rajasthan_190111.pdf
https://dir.indiamart.com/jaipur/automotive-accessories.html
https://dir.indiamart.com/vadodara/automotive-spare-parts.html

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