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Presented By:

Anmol Kalucha
Aniket Choudhary
Animesh Batra
Ashmik Paul
Ashish Chawla
Anshul Aggarwal
INDIAN AUTOMBILE INDUSTRY
• The Indian auto industry became the 4th largest in the world with sales increasing 9.5 per cent year-on-year to 4.02
million units (excluding two wheelers) in 2017. It was the 7th largest manufacturer of commercial vehicles in 2018.
• The Two Wheelers segment dominates the market in terms of volume owing to a growing middle class and a young
population.
• Overall domestic automobiles sales increased at 6.71 per cent CAGR between FY13-19 with 26.27 million vehicles
getting sold in FY19 .Domestic automobile production increased at 6.96 per cent CAGR between FY13-19 with 30.92
million vehicles manufactured in the country in FY19
Product Line
TOYOTA
Toyota Motor Corporation a Japanese multinational automotive manufacturer
headquartered in Toyota, Aichi, Japan.

In 2017, Toyota's corporate structure consisted of 364,445 employees worldwide[ and, as of


September 2018, was the sixth-largest company in the world by revenue.

As of 2017, Toyota is the largest automotive manufacturer.

FOUNDER HEADQUATERS FOUNDED PARENT


REVENUE
COMPANY

KICHIRO TOYOTA CITY, AUGUST US $ 272 TOYOTA


TOYODA JAPAN 28th,1937 BILLION GROUP
SALES POTENTIAL
• Market leader Maruti Suzuki, which has been recording monthly sales declines since
March 2019, saw sales fall below the 1 lakh mark after a very long time. At 96,478
units, the company’s July 2019 sales in the domestic market are 36.3 percent down on
sales a year ago

• No. 2 player Hyundai Motor India reported despatches of 39,010 units, down 10.28
percent compared to July 2018’s 43,481 units. The Korean carmaker, which is seeing
surging demand for its recently launched Venue compact SUV, is also feeling the
pressure of the continued downturn. The company also says it has delivered 18,000
units of the SUV.

• Mahindra sold a total of 16,831 vehicles in July 2019, down 14.91 percent.
• Tata Motors reported sale of 10,485 units in July 2019 which, when compared to
SIAM's July 2018 sales data of 19,410 units, marks a 46 percent year-on-year decline in
sales.

• Toyota Motors old a total of 10,423 units in the domestic market in July 2019, down
23.77 percent . Commenting on the sales performance, N Raja, Deputy Managing
Director, Toyota Motor, said, “The industry is deeply concerned with the increasing
pressure of low customer sentiment faced by the sector.
Market Leader
• Intense competitive Environment.
• Portfolio Fatigue.

51%
Market Follower
• Dominating SUV Segment.
• First mover Advantage.

17%
Market Niche
• Focused on new product development in SUV segment.
• Revenue generated from commercial vehicles

8.5%
• Costly product & after sales service.

5.90 %
• New technology (BS6)
• Dominating Luxury SUV market

5%
Comparison of Growth Rate
On the basis of Q1 Sales

2018-19 2018-19 2018-19 2018-19 2018-19


Sales Sales Sales Sales Sales
2018= 4,58,967 2018= 1,37,114 2018= 60,539 2018= 58,969 2018= 39,238
2019= 3,63,417 2019= 1,26,514 2019= 59,399 2019= 42,034 2019= 32,853
Diff%= -20.82 Diff%= -7.03 Diff%= -1.88 Diff%= -28.72 Diff%= -16.27
SALES REVENUE

Maruti Suzuki Hyundai Tata Mahindra Toyota

Revenue Revenue Revenue Revenue Revenue


13 billion 22.8 Billion 44 Billion 15 Billion 28 Billion
Parent Company
1) Toyota Kirloskar Motors – Toyota Motors Group
and Kirloskar Group
2) Tata Motors Limited – Tata Group
3) Hyundai Motors India limited – Hyundai Motors
Group
4) Mahindra & Mahindra Limited – Mahindra
Group
5) Maruti Suzuki India Limited – Foreign
Promotors, Indian Promotors & Institutions
Toyota Kirloskar Motors
• Product Width – Toyota offers Sedan, Sports Utility Vehicle,
Hatchback, Multi purpose vehicle.
• Plant Width – 2 Plants Karnataka combine capacity of producing
3,20,000 units annually but currently operating at 75% of its capacity
i.e producing 2,40,000 units.
• Distribution Width & Depth – Toyota have 319 Dealerships in 225
cities in 2018 includes Branches & mini-offices, exclusive showrooms
which together sells 2,20,000 units in 2018.
Annual Growth Rate Current Growth Rate

1) Toyota Kirloskar Motors – 8.5% 1) Toyota Kirloskar Motors –19%


2) Maruti Suzuki India Limited – 2) Maruti Suzuki India Limited – 17%
8% 3) Tata Motors Limited – 27%
3) Tata Motors Limited – 24%
4) Hyundai Motors India limited – 7%
4) Hyundai Motors India limited –
4% 5) Mahindra & Mahindra Limited –

5) Mahindra & Mahindra Limited – 4%


3% Average :- 15% Decline
Average :- 9.5% Increase
STPD of Toyota
Segmentation- On the basis of demographic, income and need desire
• Demographic- Toyota has targeted middle ad upper middle class
families by launching cars like Innova Crysta. Camry has 51% women
buyers.
• Psychographic- High income class people with sporty attitude with
Fortuner and Land Cruiser.
Targeting- Selecting one segment to enter. Differentiated targeting
strategy (appeals for two groups or market)
Toyota targets different markets with different prices for different
countries and different segments.
• Positioning- Customers perception towards the brand
Toyota uses value based positioning.

Differentiation- How Toyota is different from its competitors?


Better quality cars increase the performance, high resale value. Ex Toyota
Innova of price 13 Lakh has resale value of 6-7 Lakh.
Distribution Strategy adopted by Toyota
• Dealership Distribution- Toyota has huge dealership network in India
as well as across the globe.
3 Types of dealership network used by Toyota in Japan:
1- Toyota- Mostly high end (Land Cruiser)
2- Toyopet- Medium size cars (Camry)
3- Netz Toyota- Hatchback cars
INDUSTRY ORGANISATION STRUCTURE

CEO

VP VP VP VP
Operations Marketing/Sales Finance Human Resource

Plant Regional Accounts Audit HR


Manager Manager Manager Manager Manager

Department Area
Supervisor Supervisor Supervisor
Manager Manager
TOYOTA ORGANISATION STRUCTURE

• The company has increased the decision-making power of regional


Global Hierarchy heads and business unit heads. In essence, Toyota’s decision-
making processes became less centralized.

• Toyota’s new organizational structure has eight regional divisions (Japan,


Geographic Divisions North America, Europe, East Asia and Oceania, China, Asia and Middle East,
Africa, and Latin America and Caribbean). Each regional head reports to
the company’s headquarters.

• The company has four of these divisions: (a) Lexus International, (b) Toyota
Product-Based No. 1 for operations in North America, Europe and Japan, (c) Toyota No. 2
Divisions for operations in all other regions, and (d) Unit Center, which is responsible
for engine, transmission and other related operations. This feature of
Toyota’s organizational structure supports development of brands and
product lines.
FORECASTING METHODS

The quantities that are to be forecasted:

• Income revenue of Toyota company in considered markets.


• Number of sales of Toyota cars in North American and Asian markets.

Methods of forecasting:

• Weighted Moving Average


• Least square regression

The duration of forecasting:

• 10 years for (2010-2020), excluding 2012.

Forecasting Sales:
Different regions have different demand and therefore may require specific forecasting methods.
Compared to our academic forecasting method, Toyota has a more accurate method.
CORPORATE FORECAST DATA

(billion of ¥)

Toyota’s annual income in the US and its cost-cutting program will become very difficult if
the environment sours and there is plenty of uncertainty ahead.
Challenges Faced by the Automobile Industry

28% GST
Higher GST has led
to decline in sales A
Growing
B Competition
Arrival of new
competitors

Strengthening E-
Vehicles
GST reduction
C
from 12% to 5%

Decrease in

D
Demand
Demand
decreased up to
17-18%
Recommendations 6. 1.
Low Financing Rates
For TOYOTA Minimum Waiting Time

5. 2.
Market Research Loyalty Programs

3. Integrated
4. Targeting International
Marketing Strategy
Market