Automotive Industry

§ Probably automobile industries occupy a large market

share in the worlds market as well as in the Indian market.

§ Nearly 18% of the total national income is being incurred

from the automobile industry.

§ In India automobile industry has a growth rate is at the

average of 10-12%.

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"Make Every Day
Exciting"
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 Henry Ford
(Biography)

Born on July 28,

1863. Green field
Township, Dearborn,
Michigan, U.S.

Founder of Ford Motor

Company.

Introduced Model T.

Father of Assembly
lines used in mass
production.

Awarded 161 U.S.

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 Model T

Fordism:
Fordism is the economic
philosophy that widespread
prosperity and high
corporate profits can be
achieved by high wages
that allow the workers to
purchase the output they
produce, such as
automobiles.
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  Ford set out to build a
car which everyone
could afford to buy .
 Model T – Tin Lizzie –
Flivver.
 The attraction of the
Model T was that its
price never increased.
 Costing $1200 in
1909, the price in
1928 was only $295.
 By 1928 Ford was
producing more than
one car per minute.
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 Cars were mass produced and every part was
standardized

Only one color and one engine size were available.

By producing large number of cars on an Assembly Line

Ford needed fewer skilled people and that cut the cost of
paying wages.

Assembly Lines : ‘… each man and each machine do only

one thing ... the thing is to keep everything in motion and

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 More jobs are
More Standardized
created in other
parts are needed
industries.

LE
O F C
R O CY

IT
Y! ER
E
H

SP
T
P

More people with

jobs means that
they can afford to
buy a car!

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 TOTAL COMPANY
OUR PLAN . . . ONE

# Aggressively restructure to operate profitability at the current demand

and changing model mix

# Accelerate development of new products.

# Finance our plan and improve our balance sheet

# Work together effectively as one team

# Create a global “ONE” Ford . . . leveraging our global assets

# Introduce a complete, competitive, leading fuel-efficient product

# POLISH THE BLUE OVAL
family

# Continuously improve our quality and productivity, and reduce our

costs
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 In 2007, Ford fell from the second-ranked
to the third-ranked automaker in US sales
for the first time in 56 years,
behind General Motors and Toyota.

 In 2008, Ford produced 5.532 million

Major recent turn in
automobiles  and employed about
213,000 employees at around 90
ford co.
plants and facilities worldwide.

By 2009, Ford had become the

second largest automaker in
Europe (only behind Volkswagen)

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 1929 model
AA

1928 1931
model A model
Tudor
New ford
fiesta

1946 ford
Ford
sedan
fiesta

Ford
Ikon
Endeavo
ur
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 Automotive Industry

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 BRAZIL
Produced almost 3 million
vehicles in 2007.
Global companies are
present in brazil, such as
fiat, Volkswagen, ford, gm,
Nissan, Toyota, Mitsubishi,
Mercedes-Benz, Renault
etc
case study analysis
BRITAIN
Always been export
oriented.
Today , employs about
850,000 people and
produces about 1.5 million
cars and 216,000
commercial vehicles per
year, 75% of which are
exported.
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 CHINA
Rapid development since the
year 2000.
In 2008, 9.345 million motor
vehicles were manufactured
surpassing U.S. As the
second largest automobile
maker, after japan.
The top 5 car sellers are
Volkswagen, GM, Toyota,
Nissan and Chery.
case study analysis
GERMANY
The automobile was invented
in Germany by Carl Benz.
Ten car manufacturers :
Porsche, Volkswagen, Audi,
Bugatti, Lamborghini, Bentley,
Skoda Auto, MAN, SEAT and
Scania AB.
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 JAPAN SOUTH
KOREA
The biggest auto
manufacturing country in
the world. The fifth largest in the
world in terms of
Nissan began making production volume and the
trucks in 1914, and sold sixth largest in terms of
cars under the Datsun export volume
brand until it switched to
Nissan in the 1980s

Other major companies

include Subaru, Mitsubishi,
Mazda, range rover,
Chevrolets, Suzuki, and
Isuzu
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 INDIA

One of the fastest growing in the world.

Domestic production is skyrocketing .The number

of cars sold domestically is projected to double by
2010.

The government’s 10-year plan aims to create a

$145 billion auto industry by 2016.

The auto sector could be worth $375 billion by

2015, up from $65 billion in 2002.

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 INDIA

The production of automobiles in India is largely

aimed at local consumers.

Several Indian manufacturers also export a

diverse variety of auto components.

Prediction of sales of 42 lakh four wheeler

automobiles in India by 2015. Indian passenger
vehicle exports are also expected to rise from
1,70,000 in 2006 to 5,00,000 in 2010.

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 Export scenario
India has emerged as one of the world's largest
manufacturers of small cars

In 2008, Hyundai Motors alone exported 240,000

cars made in India.

Nissan Motors plans to export 250,000 vehicles

manufactured in its India plant by 2011. 

General Motors  to export about 50,000 cars

manufactured in India by 2011.

India automobile companies, mainly Maruti

Suzuki, Tata Motors and Mahindra, have been
aggressively expanding their overseas market
too.
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 Industry Trends
At the end of the 2006 fiscal year, Ford
presented the following record: the group
ranks were in second place of American
car manufacturers (after General Motors)
and the third in the world (after Toyota and
General Motors).

It displays a turnover of $160.1 billion

(against $176.9 billion in 2005) and a
historical loss amounting to $12.7 billion
(against a profit of $1.44 billion in 2005) (...)

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 FORD ENTERING INTO INDIA

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 Ford has been in India since 1907, but
received government approval to forge a
50:50 partnership with Mahindra and
Mahindra in 1995.

In 1998, got the green signal to increase its

stake in the joint venture to 92.18 percent
and the company was re-christened as Ford
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 FORD IN INDIA
cars spring to life at Ford's ,Rs. 1700 crore integrated,
manufacturing plant at Maraimalai Nagar, 45 kms from
Chennai.

The plant, equipped with advanced manufacturing

technology from Ford, covers 350 acres, provides
employment to about 2,000 people directly and
thousands indirectly .

has a capacity to manufacture upto 100,000 vehicles

per annum.

Ford is a 6-Sigma company. Every step of every

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 Commitments As A Leading Car
Manufacturer In India:

The company has a special cell called the

"Environmental Management system" to
deal with the glaring environmental needs.
Apart from this Ford India Ltd. has always
been vital in looking into the matters of
social commitments.
tries to employ locals in the manufacturing
unit.

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 Strategic
Postures
MISSION

TO BE A GLOBAL, DIVERSE FAMILY WITH A PROUD

HERITAGE, PASSIONATELY COMMITTED TO PROVIDING
OUTSTANDING PRODUCTS AND SERVICES.”

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 Plans

Aggressively restructure to operate

profitably at the current demand and
changing model mix.
Accelerate development of new products
our customers want and value.
Finance our plans and to improve our
balance sheet.
Work together efficiently as one team.

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 Goals

An exciting and viable FORD, delivering

profitable growth for all .
To sell all its car manufactured under its
name by satisfying all the needs and
demand of its customers.
To gain operational efficiency in its
work place

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 SWOT Analysis

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 The first model was the Ford Escort, which was
later replaced by locally produced Ford Ikon in
2001. It has since
added Fusion, Fiesta, Mondeo, Endeavour and
Endeavour Thunder to its product line.

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 Marketing
Strategies
Building and managing profitable customer
relationships.

Building and managing strong brands.

Harnessing new marketing technologies in this

digital age.

Marketing in a socially responsible way around the

globe.

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 Ford Mondeo

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 MONDEO was a product in the D-segment

Elegant, muscular exterior and stylish

interior designed with quality, makes
driving a pleasure.
Innovative technology is used .
Originally launched in Europe.
Was rated as the car of the year in Europe,
and was quite successful
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especially in the
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 Models
o IN India MONDEO was launched in two
variants:

Petrol variant 2.0

Diesel variant 1.8

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 Features

Electronic Automatic Temperature Control AC with

4 speed blower and heater.
Power adjustable driver and front passenger
seats.
Front foot well courtesy lights, Rake and tilt
adjustable steering.

Front passenger seat lumber support, Analogue

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 The Indian
Reaction

MONDEO was not quite popular in India as FORD

did not indulge in aggressive marketing.

Moreover, it also faced competition from other

cars in this segment like Honda accord and
Hyundai Sonata.

The posture in the front seat was uncomfortable.

It was not preferred during long journeys.

During rains, the discs made a screeching noise.

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 What Went
Wrong ???

First and foremost, the company did not have an

effective advertising strategy in place.

Ford indulged in slow skimming i.e launched

MONDEO at an exceedingly high price and spent
less on promotion.

It was priced at an exceedingly high price of

16lacs.

Lack of availability of car parts and service

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 The New Ford
Mondeo
#The Ford Mondeo is one of
the most adorable new
luxury cars to have come
out from the Ford stable.

#Powered by a 2 litre 16 V
DOHC engine and uses a
refined sequential Electronic
Fuel Injection System.

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 The Mondeo’s
New Clothes
The Mondeo is back — and Version 2.0 claims to
be stronger, fitter and a better rival to the all-
conquering Honda Accord.

the headlamps have modified, the expensive

Xenon lamps being discarded in favour of twin
halogen units, and there’s a new bumper, with a
wide air-intake and angular fog lamps, replacing
the sporty, round-foglamp unit.

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 A Dreamy
Ride

The Mondeo is still, by far, the best driver’s

car in the segment, with brilliant, crisp
steering, and a real eagerness to dive into
corners. The ride is still quite firm, and can
still be jarring over potholes and ridges. It
feels absolutely planted and stable, even at
maximum pace, making it a delightful

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