RENAULT MOTORS

Business Research

SAAD BHATI

Contents

Automobile Sector Growth Drivers Indias Position Automobile Industry Major Players in the Indian Market Mahindra motors Renault History Tagline/Slogan Current Car Models SWOT Analysis Strengths Weakness Opportunities Threats

Automobile Sector The automotive industry in India is one of the largest in the world and one of the fastest growing globally. India's passenger car and commercial vehicle manufacturing industry is the sixth largest in the world, with an annual production of more than 3.7 million units in 2010. According to recent reports, India is set to overtake Brazil to become the sixth largest passenger vehicle producer in the world, growing 16-18 per cent to sell around three million units in the course of 2011-12. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand. In 2010, India reached as Asia's third largest exporter of passenger cars, behind Japan and South Korea beating Thailand. As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second fastest growing automobile market in the world. According to the Society of Indian Automobile Manufacturers, annual vehicle sales are projected to increase to 5 million by 2015 and more than 9 million by 2020. By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation's roads. The majority of India's car manufacturing industry is based around three clusters in the south, west and north. The southern cluster near Chennai is the biggest with 40% of the revenue share. The western hub near Maharashtra is 33% of the market. The northern cluster is primarily Haryana with 32%.Chennai, is also referred to as the "Detroit of India"[9] with the India operations of Ford, Hyundai, Renault and Nissan headquartered in the city and BMW having an assembly plant on the outskirts. Chennai accounts for 60% of the country's automotive exports. Gurgaon and Manesar in Haryana form the northern cluster where the country's largest car manufacturer, Maruti Suzuki, is based .

Growth Drivers of Indian Automobile Market Indian Auto industry is growing at 7-9% growth rate. There are many factors that forcing such industry to the higher growth rate but three major

growth drivers are1) Driving these ambitious plans are three major factors. First, the reduction in excise duty on small-cars, effected in the last Budget, which has clearly given a leg-up to sales in that category. The concession extended to smallcars has been the catalyst for Honda and Toyota has to take a serious look at the options available for them in small-car market. 2) Second, the Free Trade Agreement India signed with Thailand two years ago. As per the agreement, the so-called 82 early harvest items, which include a range of auto components, will be subject to zero duty when imported from Thailand into India from September 1. Both Toyota and Honda have major operations in Thailand and the FTA will help them integrate their Thai operations into their India plans. The option of importing critical components from their own operations/ suppliers 3) And the final factor is that India is now reckoned as a low-cost global manufacturing base for small cars; Hyundai has already taken the lead in this respect. The Korean company's Indian unit is a major exporter of cars. Exports accounted for 39 per cent of total sales in 2005-06 and the stated plan is to take this to 50 per cent once the company's second plant goes on stream in the next couple of years. The companies recorded increase in their sales even after the recent increase in prices despite the fact that some of the models have been discontinued in the 13 big cities due to the recent BS 4 implications. Countrys largest car maker Maruti Suzuki India reported a jump of 29.70 percent...

Major Automotive Players in India Companies Ashok Leyland Asian Motor Works Bajaj Auto BMW India Daimler Chrysler India Eicher Motors Fiat India Segments LCVs, M&HCVs, buses M & HCVs Two and three wheelers Cars and MUVs Cars LCVs, M & HCVs Cars

Force Motors MUVs and LCVs Ford India Cars and MUVs General Motors India Cars & MUVs Hero Honda Motors Two wheelers Hindustan Motors Cars, MUVs and LCVs Honda Two wheelers, cars and MUVs Hyundai Motors Cars and MUVs Kinetic Motor Two wheelers Mahindra & Mahindra Three wheelers, cars, MUVs, LCVs Maruti Suzuki Cars, MUVs, MPVs Piaggio Three wheelers, LCVs Royal Enfield Motors Two wheelers Skoda Auto India Cars Suzuki Motorcycles Two wheelers Swaraj Mazda Ltd LCVs, M & HCVSs, buses Tata Motors Cars MUVs, LCVs, M&HCVs, buses Toyota Kirloskar Cars, MUVs TVS Motor Co Two wheelers Volvo India M & HCVs, buses Volkswagen India Cars Yamaha Motor India Two wheelers

Mahindra motors Founded in 1945 as a steel trading company, entered automotive manufacturing in 1947 to bring the iconic Willys Jeep onto Indian roads. Over the years, have diversified into many new businesses in order to better meet the needs of customers. They follow a unique business model of creating empowered companies that enjoy the best of entrepreneurial independence and Group-wide synergies. This principle has led their growth into a US $14.4 billion multinational group with more than 144,000 employees in over 100 countries across the globe.

Today, Mahindras operations span 18 key industries that form the foundation of every modern economy: aerospace, aftermarket, agribusiness, automotive, components, construction equipment, consulting services, defense, energy, farm equipment, finance and insurance, industrial equipment, information technology, leisure and hospitality, logistics, real estate, retail, and two wheelers. Mahindras federated structure enables each business to chart its own future and simultaneously leverage synergies across the entire Groups competencies. In this way, the diversity of our expertise allows us to bring our customers the best in many fields

Renault History Source: Renault The story of Renault is first and foremost the story of a man with an unusual destiny. The adventure began on December 24, 1898, when Louis Renault took up a challenge to drive his A-type Voiturette up the steep Rue Lepic in Montmartre, Paris. The exploit won him his first 12 orders. The company continued to grow as Renault began winning road races: ParisBerlin, Paris-Vienna... Louis Renault gambles and wins A leader's childhood Louis Renault was born into a typically bourgeois Parisian family in February 1877. The youngest of five children, he had two sisters and two brothers. His father, Alfred, a conscientious businessman, had built up a

comfortable fortune through the sale of fabrics and buttons. His mother, Louise, the daughter of well-to-do shopkeepers, enjoyed entertaining and the arts. Louis was a pampered child. At an early age he developed an enthusiasm for all things mechanical, including engines and electricity everything that surfaced during that era was overflowing with technical progress. The Renault family had a second home in Billancourt, very near to Paris, and it was in a garden shed there that the young Louis set up his first workshop. Studies were not his strong point and he was more than content to pass his baccalaurat. But the quiet teenager had two vital assets for getting on in life: he was both intuitive and practical. New vehicle moves into gear At the age of 20, he made a brilliant entrance into the emerging world of the motor car. He converted his De Dion-Bouton tricycle into a small, fourwheeled vehicle and added another of his inventions that would soon propel the motor car into a new era: the 'direct drive', the first gearbox. It instantly dethroned the transmission chains and cogs that had been used until then. On December 24, 1898 Louis was spending Christmas Eve with some friends. Confident about his invention, he bet them that his vehicle could climb the 13% slope of the Rue Lepic in Montmartre. Although they were incredulous at first, his friends were soon forced to believe their eyes. Not only did Louis win his bet - he also pocketed his first 12 firm orders, along with cash deposits. His career was under way. A few months later he filed the patent for the direct drive system that would make his fortune. It was soon adopted by all the manufacturers of the time. A string of firsts His two brothers, Marcel and Fernand, who ran the family business prudently, set up the Renault Brothers company in 1899 - with a small amount of capital and without including their talented sibling. They left Louis the ownership of his patent and paid him a good salary on condition that he show results. In fact, Marcel and Fernand were dubious that the sideline had much future... But Louis was very soon to prove them wrong. It was through racing that Renault Brothers became known, with Louis and

Marcel at the wheels of their vehicles. Starting with the Paris-Trouville event in 1899, they chalked up win after win in most of the city-to-city races, including Paris-Bordeaux, Paris-Ostend, Paris-Berlin and, most important, a magnificent Paris-Vienna won by Marcel in 1902. Rapid growth Those victories were the most effective form of advertising and direct marketing that the brothers could have wished for. An admiring public made their order books fatter with every race. The cars were sold for 3,000 francs - the equivalent of ten year's average salary at the time. The company expanded rapidly and the workshops by the Seine were forced to expand with it. By 1902 they covered 7,500 square metres. The Renault catalogue included several models, including the first saloon car on the market. In the same year Louis introduced the first Renault engine, with four cylinders and horse-power of 24. Soon after he patented the first turbo.

Tagline/ Slogan DRIVE THE CHANGE

SWOT Analysis

Strengths 1.JV between two strong brands Mahindra and Renault 2.Low maintenance 3.Popular car in the luxury taxi/rental industry 4.Good mileage and performance

Weakness 1.Percieved as a car for commercial purposes only 2.Despite JV, couldn't penetrate market

Opportunities 1.Increasing purchasing power and growing target base 2.Leverage strong brand name by more advertising 3.Newer innovations

Threats 1.Intense competition 2.Government regulations and increasing fuel prices 3.Improvement in public transport

Competators

Ford Ford Motor Company is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford owns a small stake in Mazda in Japan and Aston Martin in the UK. Ford's former UK subsidiaries Jaguar and Land Rover were sold to Tata Motors of India in March 2008. In 2010 Ford sold Volvo to Geely Automobile.Ford

discontinued the Mercury brand after the 2011 model year. The company is controlled by the Ford family, which owns a controlling stake in Ford Motor.

Hyundai Hyundai was a multinational company headquartered in Seoul and one of the largest South Korean. It was founded by Chung Ju-yung in 1947 as a construction company and Chung was directly in control of the company until his death in 2001. Hyundai underwent a major restructuring and break-up following the 1997 East Asian financial crisis and Chung's death, following which the Hyundai Group's business was reduced to container shipping services, the manufacturing of elevators and tourism.