INDUSTRY OVERVIEW

Automotive industry in India
The Automotive industry in India is one of the largest in the world and one of the fastest growing globally. India manufactures over 11 million vehicles (including 2 wheeled and 4 wheeled) and exports about 1.5 million every year. It is the world's second largest manufacturer of motorcycles, with annual sales exceeding 8.5 million in 2009. India's passenger car and commercial vehicle manufacturing industry is the seventh largest in the world, with an annual production of more than 2.6 million units in 2009. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea and Thailand. As of 2009, India is home to 40 million passenger vehicles and more than 2.6 million cars were sold in India in 2009 (an increase of 26%), making the country the second fastest growing automobile market in the world. According to the Society of Indian Automobile Manufacturers, annual car sales are projected to increase up to 5 million vehicles by 2015 and more than 9 million by 2020. By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation's roads. A chunk of India's car manufacturing industry is based in and around the city of Chennai, also known as the "Detroit of India". with the Indian city accounting for 60 per cent of the country's automotive exports. Gurgaon and Manesar near New Delhi are hubs where all of the Maruti Suzuki cars in India are manufactured. The Chakan corridor near Pune, Maharashtra is another vehicular production hub with General Motors, Volkswagen/ Skoda, Mahindra and Mahindra,Tata Motors in the process of setting up or already set up facilities. Ahmedabad with Tata MotorsNano plant and Halol with General Motors in Gujarat, Aurangabad in Maharashtra, Kolkatta inWest Bengal are some of the other automotive manufacturing regions around the country.

History
Following economic liberalization in India in 1991, the Indian automotive industry has demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions. Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki and Mahindra and Mahindra, expanded their domestic and international operations. India's robust economic growth led to the further expansion of its domestic automobile market which has attracted significant India-specific investment by multinational automobile manufacturers. In February 2009, monthly sales of passenger cars in India exceeded 100,000 units and has since grown rapidly to a record monthly high of 182,992 units in October 2009. From 2003 to 2010, car sales in India have progressed at a CAGR of 13.7%, and with only 10% of Indian households owning a car in 2009 (whereas this figure reaches 80% in Switzerland for example ) this progression is unlikely to stop in the coming decade. Congestion of Indian roads, more than market demand, will likely be the limiting factor. The first car ran on India's roads in 1897. Until the 1930s, cars were imported directly. Embryonic automotive industry emerged in India in the 1940s. Following the independence, in 1947, the Government of India and the private sector launched efforts to create an automotive component manufacturing industry to supply to the automobile industry. However, the growth was relatively slow in the 1950s and 1960s due to nationalisation and the license raj which hampered the Indian private sector. After 1970, the automotive industry started to grow, but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still

They also provide engineering resources for detailed designs. plastic and aluminum to the second tier suppliers. from the consumers and go through the automakers and climbs up until the third tier suppliers. Following the economic liberalisation in 1991 and the gradual weakening of the license raj. a number of Japanese manufacturers launched joint-ventures for building motorcycles and light commercial-vehicles. e.a major luxury. It was at this time that the Indian government chose Suzuki for its joint-venture to manufacture small cars. . Some of their services may include welding. The description and the role of each of the contributors to the supply chain are discussed below. The orders of the industry arise from the bottom of the supply chain i. They work on designs provided by the first tier suppliers or OEMs. steel. a number of Indian and multi-national car companies launched operations.. A number of foreign firms initiated joint ventures with Indian companies. glass. shearing. Since then. Second Tier Suppliers: These companies design vehicle systems or bodies for First Tier Suppliers and OEMs. Japanese manufacturers entered the Indian market ultimately leading to the establishment of Maruti Udyog. as channeled in every traditional automotive industry. Third Tier Suppliers: These companies provide basic products like rubber. bending etc. In the 1980s. fabrication. However the products. flow from the top of the supply chain to reach the consumers. Automakers in India are the key to the supply chain and are responsible for the products and innovation in the industry. Supply Chain of Automobile Industry Supply Chain of Indian Automobile Industry The supply chain of automotive industry in India is very similar to the supply chain of the automotive industry in Europe and America. automotive component and automobile manufacturing growth has accelerated to meet domestic and export demands.

Examples of these companies are Tata Motors.632.473.96 1.27 29.78 28.403 285.808 362. Service Providers: Some of the services to the customers include servicing of vehicles. automakers begin designing models which are tailored to consumers¶ demands.808 1. The design process normally takes five years.999 2. windshields. breaks-axel-suspension.13 22. repairing parts. and Honda.55 26. in order to follow their customers to various locations around the world.52 -0.99 -1.694 2. Parts and Accessory: These companies provide products like tires. Toyota.74 16.054 283.250 546.58 Total Vehicles Prodn. 2.328 2.044 % Change -4. to the authorised dealers of the companies.051 1. 755 332.20 50.39 19.34 7.957 533.00 31.37 -2.846. Black-box solutions are solutions created by suppliers using their own technology to meet the performance and interface requirements set by assemblers.25 32.628.149 % Change 17. Automakers/Vehicle Manufacturers/Original Equipment Manufacturers (OEMs): After researching consumers¶ wants and needs.332.000 1.803 253. customers can also choose to go to independent service providers.948 654. and air bags etc.456 486.74 9. These companies have global coverage. Automakers are the key to the supply chain of the automotive industry.35 10.08 -9. The dealers then sell the vehicles to the end customers.36 7.848 160.555 190. or cockpit but also for the management of second-tier suppliers.24 -43.98 7.40 3. Innovation.161.86 19. Maruti Suzuki.755 1. Dealers: Once the vehicles are ready they are shipped to the regional branch and from there. Many dealers provide these services but. Year 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 Car Production 2.166.238 1.523 894796 814611 801360 818193 % Change 11.713.264. design capability and branding are the main focus of these companies.968 703.354 907. to automakers and dealers or directly to customers.511.000 1.10 . These companies have manufacturing units where engines are manufactured and parts supplied by first tier suppliers and second tier suppliers are assembled. or financing of vehicles. They design and innovate in order to provide ³black-box´ solutions for the requirements of their customers.178.33 16.First Tier Suppliers: These companies provide major systems directly to assemblers.253.157 1. First tier suppliers are responsible not only for the assembly of parts into complete units like dashboard.557 517.22 23.277 540.62 -2.479 1.96 8.53 7.019. seats.85 Commercial 466.

S. (Executive Chairman) Alan R. Jr.308 billion (2009)[1] Operating income US$ 2. Area served Worldwide Key people William C. 1903 Founder(s) Henry Ford Headquarters Dearborn.717 billion (2009)[1] . U.COMPANY PROFILE Type Public (NYSE: F) Industry Automotive Founded June 16. Ford. Vehicle service Revenue US$ 118. Michigan. Mulally (President & CEO) Products Automobiles Automotive parts Services Automotive finance.957 billion (2009)[2] Net income US$ 2. Vehicle leasing.

High performance variants of the Falcon running locally built engines produce up to 362 hp (270 kW). Like its General Motors rival. the popular Ford Falcon has long been considered the average family Website Ford. A ute (short for "utility.the Fairland and LTD ranges.Total assets US$ 197. Between 1960 and 1972.515 billion (2009)[3] Employees 159. Ford began selling Mazda's Familia and Capella (also known as the 323 and 626) as the Ford Laser and Telstar.com car and is considerably larger than the Mondeo. . model of the same name. Ford Performance Vehicles. the Holden Commodore. In Australia.000 (2010)[4] Divisions Ford Credit Ford division Lincoln Subsidiaries Automotive Components Holdings Troller Ford dealership in Ho Chi Minh City. In Australia. the Commodore and Falcon have traditionally outsold all other cars and comprise over 20% of the new car market. They have also announced local manufacturing of the Focus small car starting from 2011." known in the US aspickup truck) version is also available with the same range of drivetrains. Ford was second in market share in the first eight months of 2006 with 14.4 per cent. Ford's largest car sold in Europe. It outsold the Mazda 323. In addition. and announced that their Geelong engine manufacturing plant may be shut down from 2013. replacing the European-sourced Escort and Cortina. In New Zealand. occasionally being manufactured in New Zealand. and was manufactured in Ford's Homebush plant from 1981 until the plant's closure in September 1994. However.890 billion (2009) [3] Asia Pacific Total equity US$ -6. the Falcon uses a rear wheel drive layout.S. Vietnam (August 2005) In Australia and New Zealand. the Falcon was based on a U. More recently Ford has axed its Falcon-based LWB variant of its lineup . the Laser was one of Ford Australia's most successful models. but since then has been entirely designed and manufactured in Australia. Ford Australia sells highly tuned limited-production Falcon sedans and utes through its performance car division. with the acquisition of a stake in Japanese manufacturer Mazda in 1979.

the Philippines. but withdrew from the country in 1976. . the Ford Laser and Telstar were assembled alongside the Mazda 323 and 626 until 1997. Kia continued to market the Aspire as the Kia Avella. It has since added Fusion. The Sierra wagon was also assembled in New Zealand. due to the fact the Laser was manufactured in Australia and Ford was perceived as a local brand. Ford began assembly of cars in Thailand in 1960. Fiesta. On 9 March 2010. when it formed a joint venture with Mazda called Auto Alliance. which was later replaced by locally produced Ford Ikon in 2001.690).900 ($7. which built the (Mazda-based) Ford Festiva from 1988±1993. the Figo is Ford's first car designed and priced for the mass Indian market. Mondeo and Endeavour to its product line. In New Zealand. confined to Malaysia. Starting at 349. later replaced by the Rio and once again sold in the US. at the Vehicle Assemblers of New Zealand (VANZ) plant in Wiri. Singapore. and the Ford Aspire from 1994-1997 for export to the United States.despite being almost identical to it. Ford Motor Co. Auckland. Hong Kong. where Ford has had a joint venture with Lio Ho since the 1970s. and Taiwan. Ford also acquired a stake in South Korean manufacturer Kia. and did not return until 1995. launched its first made-for-India compact car. Through its relationship with Mazda. Ford's presence in Asia has traditionally been much smaller. owing to the popularity of station wagons in that market. but later sold their interest to Hyundai (which also manufactured the Ford Cortina until the 1980s). Ford India began production in 1998 with its Ford Escort model.

Ford India Private Limited's head quarters are located in Chengalpattu. Its manufacturing facilities are in Maraimalai Nagar near Chennai. Chennai. As its new hatchback Figo was launched in March 2010. Ford Motor . Mahindra andChevrolet.000 vehicles annually and is located inMaraimalai Nagar. Tamil Nadu. Ford India Private Limited began production in 1926. a 50-50 venture with Mahindra & Mahindra Limited. Production began again with the joint venture Mahindra Ford India Limited (MFIL) in October 1995. but was shut down in 1954. Tata. 45 km from Chennai. Hyundai.FORD INDIA Ford India Private Limited is a wholly owned subsidiary of the Ford Motor Company in India. History Ford Endeavour Ford Fiesta The modern Ford India Private Limited began production in 1996. Ford Motor Company increased its interest to 72% in March 1998 and renamed the company Ford India Private Limited. It currently is the 6th largest car maker in India after Maruti Suzuki. although the roots trace back to 1907 when the Model A was launched. Manufacturing Facilities FIPL's main manufacturing plant has a capacity of 100.

Michael Boneham.000 vehicles annually and setting up a facility to make 250. Ford Fiesta (Launched 2005) 4. Ford Figo (Launched 2010) Type Subsidiary Industry Automotive Founded October 1995 (as Mahindra Ford India Limited) Headquarters Chennai.000 engines annually. Ford Ikon (Launched 1999) 2. Models Current 1.Company has invested $500 million to double capacity of the plant to 200. Ford Endeavour (Launched 2004) 3.President and MD Products Automobiles Employees 2.000 Parent Ford Motor Company . Tamil Nadu Key people Mr.

competitors information .

Formula One and etc ‡ 39th on the Best Companies for Minorities List ‡ Sell vehicles in majority of countries. ‡ Manufacturing facilities in more than 30 countries. Variation in currency rates. ‡ Ford supports racing teams which include NASCAR. Hard competition from other motor vehicle companies like Toyota.D Power and Associates in year 2007. Initiate manufacturing operating in low cost countries. ‡ Alliances with Suzuki and Isuzu Motor Companies ‡ Technological Alliances with Toyota and Honda Motor Companies. ‡ Ford motors sales better quality vehicles. . Joint ventures with other major competitors to combat recession. Firestone Tire recalls caused Stock Price to bear 14. They have a change to become more environment friendly company. ‡ Good relations with employees by offering better work environment and competitive wages.Swot Ford received initial quality survey award from J. Produce Hybrid cars in upcoming years. Long lasting recession in majority of countries. Invest on electric. it might lose focus on some lines Produce fuel efficient Cars in the upcoming years. TATA motors and etc. Lowest in Years. Ford fired number of employees due to outsourcing. ‡ The online Web site of ford attracts at least 11 million people annually.70. ‡ Ford always develop cars on standardized procedure. Due to the diversity factor. Weaknesses ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Ford sold the UK based Jaguar and Land Rover companies and brands to Tata Motors of India in March 2008. Threats of substitutes Due to the recession ford face tough time to please its investors and employees. Government regulation outside US. Giving more charities Opportunities Threats ‡ ‡ ‡ ‡ ‡ ‡ ‡ Rapid changes in fuel prices. ‡ One of the best known brand in the world. The company sales are dropped in 2008 as compared to year 2007. ‡ Ford motors develop vehicles under several names. hybrid and solar energy Vehicles. Enter into the Asian market.