INTRODUCTION
The Indian Automotive Industry Comprising of the automotive and the auto component sectors has recorded considerable growth following the de-licensing and opening up of the sector to FDI in 1993. The unbundling of this industry from restrictive environment has, on the one hand, helped in restructuring, absorbing new technologies align itself to the global development and realize its potential with significant increase in industry‘s contribution to overall industrial growth in the country. The investment in the industry of nearly Rs. 50,000 crores in 2004-05 is slated to go up Rs.85, 000 crores by 2007-08. MODERN GLOBAL AUTOMOBILE INDUSTRY - OVERVIEW Today, the modern global automotive industry encompasses the principal manufactures, General Motors, Ford, Toyota, Honda, Volkswagen and Daimler Chrysler; all of which operate in a global competitive marketplace. It is suggested that the globalization of the automotive industry has greatly accelerated during the last half of the 1990’s due to the construction of important overseas facilities and establishment of mergers between giant multinational automakers. Industry specialists indicate that the origins in the expansion of foreign commerce in the automobile industry data back to the technology transfer of Ford Motor Company’s mass-production model from the U.S to Western Europe and Japan following both World Wars I and II. The advancements in industrialization led to significant increases in the growth and production of Japanese and German markets, in particular. The second important trend in industrial globalization was the export of fuel, efficient cars from Japan to the U.S as a result of the oil embargo from 1973 to 1974.
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Increasing global trade has enabled the growth in world commercial distribution system, which has also expanded global competition amongst the automobile manufactures. Japanese automakers in particular, have instituted innovative production methods by modifying the U.S manufacturing model, as well as adapting and utilizing technology to enhance production and increase product competition. There are a number of trends that can be identified by examining the global automotive market which can be divided into the following factors. Global Market Dynamics – The world’s largest automobile manufactures continue to invest into production facilities in emerging markets in order to reduce production costs. These emerging markets include Latin America, China, Malaysia and other markets in Southeast Asia. Establishment of Global Alliances – U.S automakers “The Big Three” (GM, Ford, Chrysler) have merged with and in some case established commercial strategic partnerships with other European and Japanese automobile manufacturers. Some merges such as the Chrysler Daimler-Benz merger was initiated by the European automaker in a strategy to strengthen its position in the U.S market. Overall, there has been a trend by the world automakers to expand in overseas markets. Industry Consolidation - Increasing global competition amongst the global manufactures and positioning within foreign markets has divided the world’s automakers into three tiers, the first tier being GM, Ford, Toyota, Honda and Volkswagen and the two remaining tier manufacturers attempting to consolidate or merge with other lower tier automakers to compete with the first tier companies. One Tier Company Mergers – Volkswagen-Lamborgini, BMW-Rolls Royce. Two Tier Company Mergers – Chrysler-Mercedes-Benz, Renault-Nissan-Fiat. Three Tier Company Mergers – Mazda-Mitsubishi-Kia-Volvo.
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INDIAN AUTOMOBILE INDUSTRY Over a period of more than two decades the Indian Automobile industry has been driving its own growth through phases. The Entry of Suzuki Corporation in Indian passenger car manufacturing is often pointed as the first sign of India turning to a market economy. Since then the automobile sector witnessed rapid growth year after year. With comparatively higher rate of economic growth rate index against that of great global powers. India has become a hub of domestic and exports business. The automobile sector has been contributing its share to the shining economic performance of India in the recent years. With the Indian middle class earning higher per capital income more people are ready to own private vehicles including cars and two-wheelers. Product movements and manned services have boosted in the sales of medium and sized commercial vehicles for passenger and goods transport. Side by side with fresh vehicle sales growth, the automotive components sector has witnessed big growth. The domestic auto components consumption has crossed rupees 9000 crores and an export of one half size of this figure. OVERVIEW OF AUTOMOBILE INDUSTRY The Indian automobile industry is going through a technological change where each is engaged in changing its processes and technologies to sustain the competitive advantage and provide customers with the optimized products and services. Starting from the two wheelers, trucks and tractors to the multi utility vehicles, commercial vehicles and the luxury vehicles, the Indian automobile industry has achieved tremendous amount of success in the recent years.
3
SCOPE OF INDIAN AUTOMOBILE SECTOR The Indian automobile industry is going through a phase of rapid change and high growth. With new projects coming up on a regular basis the industry is undergoing technological change. The major players are expanding their plants and focusing on mass customization, mass production etc. INVESTMENT IN AUTO SECTOR Nearly every automobile company is investing at a higher rate than ever before to achieve a high growth trajectory. The overall investment in the sector has been increasing quite rapidly. It is expected that by the end of 2010 Indian automobile sector will be investing a huge amount as Rs. 30,000 crores. GROWTH IN THE SECTOR At present the industry is enjoying a growth rate 14-17% per annum with domestic sales growth at 12.8%. The growth rate is predicted to double by 2015. As it is seen the total sales of passenger vehicle – car, utility vehicle and multi-utility vehicle in the year 2005 reached the market of 1.06 million. The current growth rate indicates that by 2012 India will overtake Germany and Japan in sales volumes. Financing schemes have become an important factor in the growth of automobile sales. More and more financial schemes are coming up with easy installment plans to the customers. Apart from domestic production the industry is consistently focusing on the automobile exports. The auto component segment is contributing lot in the export arena. The liberalized policies of the government are now making the companies go for more and more exports.
4
TOP TEN PLAYERS IN INDIAN AUTOMOBILE SECTOR The domestic players as well as the foreign players dominate the Indian automobile sector. The key players contributing to the growth of the sector are discussed below.
? Maruti Udyog Limited ? Hero Motors Limited ? Tata Group ? Bajaj Auto Limited ? Mahindra Group ? Ashok Leyland ? Yamaha Motor India ? Hyundai Motors India Limited ? Toyota Kirloskar Motor Private Limited ? Honda Siel Cars India Limited
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OBJECTIVES OF THE STUDY
The objectives of the study are: 1. To familiarize with procedural routines followed in a manufacturing sector 2. Getting practical experience regarding the organizational function 3. To learn about the policies and functions of the organization 4. To understand the culture in the organization and its effect on employees 5. To get industrial exposure and experience
6.
To understand the methods in all functional areas
METHODOLOGY
This study was undertaken by undergoing a training program at Ashok Leyland for about a fortnight. The information was collected by interacting and interviewing with the concerned personnel of various functional departments. The methodology used for the study is through direct observation and live discussion with the managers and the staff members. Secondary data is collected through Annual Reports, Business Journal and Existing Records, Survey and also from the website of the company.
SCOPE OF THE STUDY
6
The study is mainly based on the details collected from each department. The study provides a better understanding at functional level of each department i.e. Purchase, Material, Production, Marketing, Finance and Human Resource Management. Each and every activity of the company has been studied very carefully with the data available. Apart from that I gained knowledge of the functioning of different departments and their inter relationship with each other. This study helped me familiarize with the manufacturing and assembling of commercial vehicles.
7
doc_719721245.docx
The Indian Automotive Industry Comprising of the automotive and the auto component sectors has recorded considerable growth following the de-licensing and opening up of the sector to FDI in 1993. The unbundling of this industry from restrictive environment has, on the one hand, helped in restructuring, absorbing new technologies align itself to the global development and realize its potential with significant increase in industry‘s contribution to overall industrial growth in the country. The investment in the industry of nearly Rs. 50,000 crores in 2004-05 is slated to go up Rs.85, 000 crores by 2007-08. MODERN GLOBAL AUTOMOBILE INDUSTRY - OVERVIEW Today, the modern global automotive industry encompasses the principal manufactures, General Motors, Ford, Toyota, Honda, Volkswagen and Daimler Chrysler; all of which operate in a global competitive marketplace. It is suggested that the globalization of the automotive industry has greatly accelerated during the last half of the 1990’s due to the construction of important overseas facilities and establishment of mergers between giant multinational automakers. Industry specialists indicate that the origins in the expansion of foreign commerce in the automobile industry data back to the technology transfer of Ford Motor Company’s mass-production model from the U.S to Western Europe and Japan following both World Wars I and II. The advancements in industrialization led to significant increases in the growth and production of Japanese and German markets, in particular. The second important trend in industrial globalization was the export of fuel, efficient cars from Japan to the U.S as a result of the oil embargo from 1973 to 1974.
1
Increasing global trade has enabled the growth in world commercial distribution system, which has also expanded global competition amongst the automobile manufactures. Japanese automakers in particular, have instituted innovative production methods by modifying the U.S manufacturing model, as well as adapting and utilizing technology to enhance production and increase product competition. There are a number of trends that can be identified by examining the global automotive market which can be divided into the following factors. Global Market Dynamics – The world’s largest automobile manufactures continue to invest into production facilities in emerging markets in order to reduce production costs. These emerging markets include Latin America, China, Malaysia and other markets in Southeast Asia. Establishment of Global Alliances – U.S automakers “The Big Three” (GM, Ford, Chrysler) have merged with and in some case established commercial strategic partnerships with other European and Japanese automobile manufacturers. Some merges such as the Chrysler Daimler-Benz merger was initiated by the European automaker in a strategy to strengthen its position in the U.S market. Overall, there has been a trend by the world automakers to expand in overseas markets. Industry Consolidation - Increasing global competition amongst the global manufactures and positioning within foreign markets has divided the world’s automakers into three tiers, the first tier being GM, Ford, Toyota, Honda and Volkswagen and the two remaining tier manufacturers attempting to consolidate or merge with other lower tier automakers to compete with the first tier companies. One Tier Company Mergers – Volkswagen-Lamborgini, BMW-Rolls Royce. Two Tier Company Mergers – Chrysler-Mercedes-Benz, Renault-Nissan-Fiat. Three Tier Company Mergers – Mazda-Mitsubishi-Kia-Volvo.
2
INDIAN AUTOMOBILE INDUSTRY Over a period of more than two decades the Indian Automobile industry has been driving its own growth through phases. The Entry of Suzuki Corporation in Indian passenger car manufacturing is often pointed as the first sign of India turning to a market economy. Since then the automobile sector witnessed rapid growth year after year. With comparatively higher rate of economic growth rate index against that of great global powers. India has become a hub of domestic and exports business. The automobile sector has been contributing its share to the shining economic performance of India in the recent years. With the Indian middle class earning higher per capital income more people are ready to own private vehicles including cars and two-wheelers. Product movements and manned services have boosted in the sales of medium and sized commercial vehicles for passenger and goods transport. Side by side with fresh vehicle sales growth, the automotive components sector has witnessed big growth. The domestic auto components consumption has crossed rupees 9000 crores and an export of one half size of this figure. OVERVIEW OF AUTOMOBILE INDUSTRY The Indian automobile industry is going through a technological change where each is engaged in changing its processes and technologies to sustain the competitive advantage and provide customers with the optimized products and services. Starting from the two wheelers, trucks and tractors to the multi utility vehicles, commercial vehicles and the luxury vehicles, the Indian automobile industry has achieved tremendous amount of success in the recent years.
3
SCOPE OF INDIAN AUTOMOBILE SECTOR The Indian automobile industry is going through a phase of rapid change and high growth. With new projects coming up on a regular basis the industry is undergoing technological change. The major players are expanding their plants and focusing on mass customization, mass production etc. INVESTMENT IN AUTO SECTOR Nearly every automobile company is investing at a higher rate than ever before to achieve a high growth trajectory. The overall investment in the sector has been increasing quite rapidly. It is expected that by the end of 2010 Indian automobile sector will be investing a huge amount as Rs. 30,000 crores. GROWTH IN THE SECTOR At present the industry is enjoying a growth rate 14-17% per annum with domestic sales growth at 12.8%. The growth rate is predicted to double by 2015. As it is seen the total sales of passenger vehicle – car, utility vehicle and multi-utility vehicle in the year 2005 reached the market of 1.06 million. The current growth rate indicates that by 2012 India will overtake Germany and Japan in sales volumes. Financing schemes have become an important factor in the growth of automobile sales. More and more financial schemes are coming up with easy installment plans to the customers. Apart from domestic production the industry is consistently focusing on the automobile exports. The auto component segment is contributing lot in the export arena. The liberalized policies of the government are now making the companies go for more and more exports.
4
TOP TEN PLAYERS IN INDIAN AUTOMOBILE SECTOR The domestic players as well as the foreign players dominate the Indian automobile sector. The key players contributing to the growth of the sector are discussed below.
? Maruti Udyog Limited ? Hero Motors Limited ? Tata Group ? Bajaj Auto Limited ? Mahindra Group ? Ashok Leyland ? Yamaha Motor India ? Hyundai Motors India Limited ? Toyota Kirloskar Motor Private Limited ? Honda Siel Cars India Limited
5
OBJECTIVES OF THE STUDY
The objectives of the study are: 1. To familiarize with procedural routines followed in a manufacturing sector 2. Getting practical experience regarding the organizational function 3. To learn about the policies and functions of the organization 4. To understand the culture in the organization and its effect on employees 5. To get industrial exposure and experience
6.
To understand the methods in all functional areas
METHODOLOGY
This study was undertaken by undergoing a training program at Ashok Leyland for about a fortnight. The information was collected by interacting and interviewing with the concerned personnel of various functional departments. The methodology used for the study is through direct observation and live discussion with the managers and the staff members. Secondary data is collected through Annual Reports, Business Journal and Existing Records, Survey and also from the website of the company.
SCOPE OF THE STUDY
6
The study is mainly based on the details collected from each department. The study provides a better understanding at functional level of each department i.e. Purchase, Material, Production, Marketing, Finance and Human Resource Management. Each and every activity of the company has been studied very carefully with the data available. Apart from that I gained knowledge of the functioning of different departments and their inter relationship with each other. This study helped me familiarize with the manufacturing and assembling of commercial vehicles.
7
doc_719721245.docx