Supply Chain Management-Suzuki

Topics: Maruti Suzuki, Suzuki, Customer relationship management Pages: 38 (12710 words) Published: March 10, 2012
Indian Automobile Industry
Accounting for approximately 4 % of GDP, Automobile Industry is the significant contributor to the growth of Indian economy. The last few years have seen greater integration of the Indian players with their global counterparts. What is interesting about this is its almost democratic nature, in that a large part of the industry has seen significant changes. While the changes have been more visible in the auto component part of the industry, with key players having a significant export contribution today, Original Equipment Manufacturers (OEMs) too have been undergoing their own set of changes. The change process started with overseas OEMs wanting to enter the country. A natural fall-out of this was the large suppliers who entered the country as part of the ‘follow source’ doctrine. The last couple of years have seen significant interest from Indian players who are actively looking at exciting markets to enter as well as attractive targets to acquire. Going forward, OEMs as well as auto component players will evolve further as they become more and more ‘global’ in nature. For OEMs, this would mean rising competition in the domestic market, and hence the need to diversify out of India. For auto component players, this would mean the need to achieve global manufacturing standards and emerge as supplier of choice for global companies. These changes would have a significant impact on the automotive supply chain. Clearly the need of the hour is for various players to identify key challenges facing the industry and develop strategies to help mitigate these. The objective of this report is to analyze the key advancements in automotive supply chain and the unique practices followed by major players in India. Finally balanced scorecard framework would be used to build the strategic map for Automobile players. Global automobile manufacturers are consistently streamlining their business process by outsourcing their non-core activities to low-cost countries like India. Global automobile manufacturers are under tremendous pressures to innovate their manufacturing process and at the same time, to reduce costs. In view of the present global competitiveness, they must not only develop new features to strengthen their customer requirements but also follow the environmental and safety standards. In addition, the base price of a car is expected to remain same over the next decade. As a result, companies are forced to source more components from low-cost countries like India. Domestic Sales

Passenger Vehicles segment during April-January 2010 grew at 25.21 percent over same period last year. Passenger Cars grew by 24.75 percent, Utility Vehicles grew by 21.95 percent and Multi Purpose Vehicles grew by 37.05 percent in this period. The overall Commercial Vehicles segment registered positive growth at 30.39 percent during April-January 2010 as compared to the same period last year. Medium & Heavy Commercial Vehicles (M&HCVs) registered growth at 20.58 percent; Light Commercial Vehicles grew at 39.66 percent. Three Wheelers sales recorded a growth rate of 25.77 percent in April-January 2010. While Passenger Carriers grew by 32.54 percent during April-January 2010, Goods Carriers grew at 4.20 percent. Two Wheelers registered a growth of 23.74 percent during April-January 2010. Mopeds, Scooters and Motorcycles grew by 31.73 percent, 20.56 percent and 24.32 percent respectively. Exports

During April-January 2010, overall automobile exports registered a growth rate of 13.24 percent. Passenger Vehicles segment, Three Wheelers and Two Wheelers segments grew by 33.92 percent, 4.60 percent and 8.84 percent respectively in this period. Commercial Vehicles recorded growth of (-) 7.52 percent. Auto Components Industry

Surge in automobile industry since the nineties has led to robust growth of the auto component sector in the country. In tandem with the industry trends, the Indian component sector has shown great...
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