INTRODUCTION
The automotive industry in India is one of the largest automotive markets in the world, previously one of the fastest growing markets globally. It started out as a small venture in the 1940s but witnessed a rapid growth with the entry of some big manufacturers like Mahindra & Mahindra and Maruti in mid and late 1900s. In 2000, this industry became an important sector of the Indian economy and a major foreign exchange earner for the country.
The Shiv group was one of the largest industrial groups in India at this time established in the early 1900s. Having over 20 companies and a turnover of US $1 billion, they were market leaders in the sectors like tea, auto parts, electronics, finance, pharmaceuticals etc. In 2000, Shiv industry was going through a rough patch experiencing a steep fall in its earnings. The key reasons were its inability to cope up with the changing needs and competitive scenario due to internationalization of this market. The challenges of quality based competition in high-tech product market and price based competition in low-tech product market became a big concern for Shiv’s management.
PROBLEM STATEMENT AND POSSIBLE SOLUTIONS
PROBLEM 1
Globalization of automotive industry
Although Shiv industries excelled in automobile industries, but the changing global trends in this industry was a key concern for Shiv’s management. Due to internationalization of this market, the foreign auto manufacturers were rapidly replacing the local
India produced cheap, reliable and safe automobiles. The U.S big three’s on the other hand, produced
The international automakers invested more than $72 billion to capitalize 425 facilities and offices. This created jobs for 123 thousand Americans with $9.3 billion and products purchased from US suppliers for $104 billion to produce 5.3 million vehicles in which 46% of all US vehicle production. There are nearly 10 thousand dealership franchises sold that employ more than 500 thousand American gaining $29 billion. Further, nearly 900 thousand US-built vehicles were exported. These figures clearly shows that there has been a domino effect of success in the US auto industry and it means that it is a great contributor to the US economy.
The American automotive industry provides a unique and very important role in the economy of the United States of America. Not only in the United States but even around the world, the American Auto Industry is a leader in job creation, production, exportation and even in research and development. In the mid-20th century, America’s top auto manufactures have been General Motors, Ford and Chrysler. They were producing two-thirds of all the cars and vehicles sold around the world. There are still other smaller car manufacturers such as Anteras, Avanti, Shelby American, De Lorean, Dragon and several others. As of 2010 the auto industry contributed to about 4% of the United States Gross Domestic Profit and employed about 8 million jobs.
In 2002, the Indian government formulated an “Auto Policy” which aims at promoting integrated, phased, and self-sustained growth of the Indian automobile industry.
Increasing globalization in the automotive industry is changing the way of traditional partnerships. Ten years ago, it was questionable to pursue business in markets such as India and China because political and business conditions were not conducive to direct foreign investment (Emerging Markets, Emerging Opportunities, 2012).As a result, many automotive
Shiv industries operated in rubber and it also focused on automobile and other 4-wheeler vehicle. Shiv industry had the grip in the non-auto sector, overall in the molded rubber industry shiv was the largest amid only some organization with high quality of product.
Tata Motors Ltd. is the largest Indian automobile company having the revenues of USD 20 billion in 2009-10. Tata Motors is the leader in the manufacturing of
Among all the industrialization processes in China, no one can compare with automotive industry, which may be more important than others. It is a catalyst for many other related factors of the economy. The global economic downturn has had a major impact on U.S. automotive sector, meanwhile, China’s fast growth auto industry has been supported, especially for foreign firms with a presence in China.
Tata Motors Ltd. is the largest Indian automobile company having the revenues of USD 20 billion in 2009-10. Tata Motors is the leader in the manufacturing of commercial
The automobile industry is one of the biggest industries worldwide. In the 21st century almost everyone around the world drives a car. Development of the global economy increasingly has led to increase the demand of automobiles globally. Automobile ownership is no longer a luxury but a necessity. Globalization has translated into increasing wealth worldwide and in turn increased demand for automobiles globally particularly in newly emerging economies. BMW Group like the rest of the Automobile manufacturers has also recognized that trend and had joined a number of other corporations and has become a transnational corporation, corporations with no border. In this paper I discuss the history of BMW Group its routes and explain when, where, why, and how it has gone global.
Although Shiv industries excelled in automobile industries, but the changing global trends in this industry was a key concern for Shiv’s management. Due to internationalization of this market, the foreign auto manufacturers were rapidly replacing the local suppliers in terms of
The globalization of 21st century and the global population growth had cause the demand of daily products such as food and transportation increases. This market trend had caused the rise of the manufacturing sector. In order to achieve the maximum manufacturing efficiency, some factories have to run their production line for 24/7. Due to the constant evolving of science and technology sector, some of the production requires very high precision and the working environment had become hazardous. Therefore, running the production line barely on man power is dangerous not suitable anymore. In order to maximize the revenues, industries started to import the automotive technology into their production line.
This has brought about colossal increment in the number of inhabitants in autos in the urban communities. The development patterns (MOST, GOI, 1998) of autos at National and City levels are as demonstrated.
The automotive sector is fast booming section in India. There are variable in automotive industry light and heavy motor vehicle. Heavy duty vehicle support as the backbone and confront to the