Porters five forces

Threats of new
entrance
(Medium)

Bargaining power
Competitive
of customers rivalry Substitute of
products (Low)
(Low)
(High)

Bargaining power
of suppliers
(Medium)

Threats of new entrance:

 The level is medium given the, given the concentration of the industry cluster in specific
strategic centers
 Foreign firms are increasing their foot prints in India

Bargaining power of customers:

 High demand from car manufacture gives them lesser bargaining power
 Product differentiation is low

Bargaining power of suppliers:

 Bargaining power of suppliers are medium as there are large no. of steel and aluminium
manufacturers (key raw material)
 Some of them have their own unit which gave them linkage power

Substitute of products:

 Threats of substitute product remains low, as public transportation is underdevelopment

even in most cities
 Rapid growth in Indian economy has changed travel pattern

Competitive rivalry:

 Competition among the industry players is intense as government has already deregulated
the industry
 Cheaper imports of components from china is increasing

Pest analysis
Political:

Government of India's Automotive Mission Plan (AMP) 2006 - 26 has made some amazing progress
in guaranteeing development for the part. Commitment of vehicle industry in the nation's GDP will
ascend to more than 12%. Around 64+ million steady number of immediate and circuitous
employments will be made. End of life Policy will be executed for old machines.

Economical:

The Indian auto-segments industry is set to turn into the third biggest on the planet by 2o25. Indian
auto-part producers are all around situated to profit by the globalization of the division as fare
potential could be expanded by up to US$ 3o+ billion by 2o21.

Social:

Growing working population and expanding middle class are continually demand drivers from last 5-
6 years

Technological:

The quickly globalizing world is opening more up to date open doors for the transportation business,
particularly while it makes a move towards electric, electronic and half and half vehicles, which are
considered more proficient, safe, and solid method of transportation.