Professional Documents
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Anmol Kalucha
Aniket Choudhary
Animesh Batra
Ashmik Paul
Ashish Chawla
Anshul Aggarwal
INDIAN AUTOMBILE INDUSTRY
• The Indian auto industry became the 4th largest in the world with sales increasing 9.5 per cent year-on-year to 4.02
million units (excluding two wheelers) in 2017. It was the 7th largest manufacturer of commercial vehicles in 2018.
• The Two Wheelers segment dominates the market in terms of volume owing to a growing middle class and a young
population.
• Overall domestic automobiles sales increased at 6.71 per cent CAGR between FY13-19 with 26.27 million vehicles
getting sold in FY19 .Domestic automobile production increased at 6.96 per cent CAGR between FY13-19 with 30.92
million vehicles manufactured in the country in FY19
Product Line
TOYOTA
Toyota Motor Corporation a Japanese multinational automotive manufacturer
headquartered in Toyota, Aichi, Japan.
• No. 2 player Hyundai Motor India reported despatches of 39,010 units, down 10.28
percent compared to July 2018’s 43,481 units. The Korean carmaker, which is seeing
surging demand for its recently launched Venue compact SUV, is also feeling the
pressure of the continued downturn. The company also says it has delivered 18,000
units of the SUV.
• Mahindra sold a total of 16,831 vehicles in July 2019, down 14.91 percent.
• Tata Motors reported sale of 10,485 units in July 2019 which, when compared to
SIAM's July 2018 sales data of 19,410 units, marks a 46 percent year-on-year decline in
sales.
• Toyota Motors old a total of 10,423 units in the domestic market in July 2019, down
23.77 percent . Commenting on the sales performance, N Raja, Deputy Managing
Director, Toyota Motor, said, “The industry is deeply concerned with the increasing
pressure of low customer sentiment faced by the sector.
Market Leader
• Intense competitive Environment.
• Portfolio Fatigue.
51%
Market Follower
• Dominating SUV Segment.
• First mover Advantage.
17%
Market Niche
• Focused on new product development in SUV segment.
• Revenue generated from commercial vehicles
8.5%
• Costly product & after sales service.
5.90 %
• New technology (BS6)
• Dominating Luxury SUV market
5%
Comparison of Growth Rate
On the basis of Q1 Sales
CEO
VP VP VP VP
Operations Marketing/Sales Finance Human Resource
Department Area
Supervisor Supervisor Supervisor
Manager Manager
TOYOTA ORGANISATION STRUCTURE
• The company has four of these divisions: (a) Lexus International, (b) Toyota
Product-Based No. 1 for operations in North America, Europe and Japan, (c) Toyota No. 2
Divisions for operations in all other regions, and (d) Unit Center, which is responsible
for engine, transmission and other related operations. This feature of
Toyota’s organizational structure supports development of brands and
product lines.
FORECASTING METHODS
Methods of forecasting:
Forecasting Sales:
Different regions have different demand and therefore may require specific forecasting methods.
Compared to our academic forecasting method, Toyota has a more accurate method.
CORPORATE FORECAST DATA
(billion of ¥)
Toyota’s annual income in the US and its cost-cutting program will become very difficult if
the environment sours and there is plenty of uncertainty ahead.
Challenges Faced by the Automobile Industry
28% GST
Higher GST has led
to decline in sales A
Growing
B Competition
Arrival of new
competitors
Strengthening E-
Vehicles
GST reduction
C
from 12% to 5%
Decrease in
D
Demand
Demand
decreased up to
17-18%
Recommendations 6. 1.
Low Financing Rates
For TOYOTA Minimum Waiting Time
5. 2.
Market Research Loyalty Programs
3. Integrated
4. Targeting International
Marketing Strategy
Market