“Automotive: Gaining the Required Edge”

As much as 33000 fatalities happen each year in the United States by the cause of car crashes. People don’t realize the number of crashes occurring because of people that don’t know how to drive. El Paso is the number 8 city in Texas with fatal crashes. And it all goes back to how they got the privileges for driving in the first place.

The location of apt areas of production is what determines the overall cost per unit or qualityof the product. For distribution and logistics the factors such as payment of tariffs and

With a wide variety of vehicles and manufacturers due to low switching costs, the bargaining power of customers is very high in the automobile industry. Also foreign brands are selling vehicles in the Indian markets, adding to the bargaining power of customers in this industry. Thus the value created by the firm lies in adding differentiating features by innovating and increasing the customer’s willingness to pay while reducing the supplier’s opportunity cost.

From the last two decades auto industry is growing more competitive. Competition from the foreign automakers like Toyota and Honda is also high. In

many vehicle collisions and fatalities. However, it seems as though many states have failed to

With the recovery of economy, the world’s automobile industry has been growing steadily over the past few years. According to Bloomberg, the US automobile sales climbed from its depth 10.4 million in 2009 to over 15.6 million in 2013. Furthermore, industry analysts predict that the sales will

-Barriers to entry include, high number of competitors, high exchange rate, high initial capital requirements, cultural differences among sales people (perhaps not as aggressive as in Canada, resulting in lower sales)

Just like the other industries such as apparel, electronics, and consumer goods, the automobile industry has accelerated its foreign direct investment, cross border trade and global production. The automobile industry has increased outsourcing and bundled value chain activities in major supplier chains. As a result, more developed countries that serve as suppliers have increased their involvement in trade and FDI. With these increased supplier capabilities, large national suppliers have become global suppliers and are now controlling multinational operations. This is because of their increased capability of providing good and services to various lead firms all over the world. The automotive industry has a distinct firm structure. This

There are many costs involved in internalization. These costs can be communication costs due to cultural differences, costs due to legal systems of the country which favors the local companies.

regulation, cost and availability of raw materials, and cost of labor. A business may have the best idea for

Indian automotive industry has witnessed dramatic changes right from liberalisation, 100% FDI through automatic route, steadily rising in national income, steadily rising standard of living, Socio Cultural Revolution of joint families to nuclear families, working couples, change in mind-sets where car was once looked as rare luxury now in some parts of India it is just a necessity, increasing people awareness and they being more

In 2002, the Indian government formulated an “Auto Policy” which aims at promoting integrated, phased, and self-sustained growth of the Indian automobile industry.

Assume that you are executive of a large U.S. multinational cooperation planning to open a new manufacturing plants in China and India to save on labor cost. What factors should you consider when making your decision? Is labor outsourcing to developing countries a legitimate business strategy that can be handled without risk of running into a sweatshop scandal?

According to the Ministry of Commerce and Industry, the automobile industry in India has seen a tremendous compound growth at the rate of 22 % between the year 1992 and 1997. Furthermore, the annual turnover of the automobile sector in India, in the financial year 2002-2003, is said to have surpassed the capital investment of Rs 50,000 crore. With Indian automobile corporations gaining international market, the turnover in the similar year was calculated to be Rs. 59,518 crore. The Indian automobile industry will be a standout amongst the leading in the globe. Those business accounts to 7. 1 percentage of the country 's horrible down home item (GDP). Likewise around FY 2014-15, around 31 % of little autos sold comprehensively need aid made over India. The two Wheelers section with 81 percentage business sector allotment is the pioneers of the Indian car business owing with a developing white collar class What 's more an adolescent populace. Moreover, the developing investment of the organizations in exploring those provincial business sectors further helped those development of the division. Those Generally speaking passementerie vehicle (PV) section need 13 percentage business stake. India may be also a conspicuous auto exporter and need solid fare growth desires for those close future. Clinched together with April-January 2016, fares of business Vehicles enrolled a Growth from claiming 18. 36 % through April-January 2015.

Venu Srinivasan, chairman and managing director, TVS Motors- “In 2006-07, sales received a boost and saw a growth surge of 19-20% due to unlimited finance availability. At that time, companies chose to finance customers without any questions.”