CAT-3

BUSINESS POLICY
AND STRATEGIC
MANAGEMENT

Presented by –
AZRA KHAN 19GSOB1010214
MOHD.AZAAN RAZA 19GSOB1010337
NISCHAY JOSHI 19GSOB1010207
AUTOMOBILE INDUSTRTY
 INTRODUCTION
The automobile industry is one of the most important drivers of economic growth of
India and one with high participation in global value chains. The growth of this sector
has been on the back of strong government support which has helped it carve a
unique path among the manufacturing sectors of India. The automo- biles produced in
the country uniquely cater to the demands of low- and middle- income groups of
population which makes this sector stand out among the other automobile-producing
countries. This chapter analyzes the roles of government policy, infrastructure, and
other enabling factors in the expansion of the automo- bile and automotive
component sectors of India. In 2017, India became the world’s fourth largest
automobile market, and the demand for Indian vehicles continues to grow in the
domestic and international markets. To meet the future needs of customers (including
the electrical vehicles) and stay ahead of competi- tion, manufacturers are now
catching up on upgradation, digitization, and auto- mation.
LATEST CHANGES AND TRENDS
The Indian automotive industry has traditionally been a good indicator of how well the
economy is doing, particularly in its contribution to the country's manufacturing output
and employment generation.Today, against the backdrop of a post-Covid resurgence, the
Indian auto industry is well on its way to becoming the third-largest automobile market
in the world.
1. Digitalisation :Driving better customer experience
2. Electric Vehicles : A fast growing reality
3. Vehicle Connectivity :beyond just cars
4. Telematics : Using tech to optimise fleets
5. Scrappage Policy :Impact and opportunities
6. Reduced ownership period leading to rise in used car market
7. Emerging profit centres and the rise of car leasing
 CHALLENGES
Like every other sector, automotive sector also witnessed massive dip in sales this
year but the industry is all set for recovery in the second half of the year. India
witnessed nil automotive sales in April 2020, sales for China and United States also
dipped but the pandemic has presented industry with several tailwinds, which will
force automakers and allied sectors to change the way they operate.
1. Outbreak of COVID-19
2. Evolution of connected vehicles and growing prominence of autonomous vehicle
3. Modification in powertrain and increasing demand for electric vehicles
4. Modifications in supply chain and business model
5. Increasing Y-O-Y unsold inventory
 CONCLUSION
With its buoyant economy, a large young population, and growing foreign direct
investment, India has been an attractive investment destination for global
automo- bile and component manufacturers since the last two decades. Its
growth story has been dominated by more homegrown lead firms. However,
absorption of global best practices has been slower than in China. Strategies of
firms in the Chinese auto industry provided a boost to technological learning
more quickly and broadly than in India.78 Capable of end-to-end production,
India has also become an assembly hub for large cars and manufacturing hub
for small cars. Firms have started export- ing to other countries. India-based
manufacturers are engaged in global innovation networks and sourcing suitable
technologies from all over the world to complement their own R&D efforts.
THANK YOU!