Supply Chain Management in Automobile Industry

MINOR PROJECT REPORT
ON
SUPPLY CHAIN MANAGEMENT IN
AUTOMOBILE INDUSTRY
SUBMITTED IN PARTIAL FULFILLMENT FOR

THE AWARD OF THE
DEGREE OF MASTERS OF BUSINESS
ADMINISTRATION 2022-2024
UNDER THE GUIDANCE OF SUBMITTED BY:

Mr. Nakul Anand Sachin Sharma
FACULTY, MAIT Enrollement No. 36514803922
MBA 2nd Sem
Maharaja Agrasen Institute of Technology

Affiliated to Guru Gobind Singh Indraprastha
University, Delhi
PSP Area, Plot No. 1, Sector 22, Rohini Delhi 110086
i
STUDENT UNDERTAKING
This is to certify that I have completed the Summer Training Report “Supply Chain
Management in Automobile Industry” under the guidance of Mr. Nakul Anand in
partial fulfillment of the requirement for the award of degree of Masters of Business
Administration at Maharaja Agrasen Institute of Technology, Delhi. This is an
original piece of work & I have not submitted it earlier elsewhere.
Signature of Student
Sachin Sharma
Enrolment No.: 36514803922
Date:
ii
CERTIFICATE FROM FACULTY GUIDE
This is to certify that the Summer Training Report titled “Supply Chain Management
in Automobile Industry” is an academic work done by Sachin Sharma, submitted in
the partial fulfillment of the requirement for the award of the degree of Masters of
Business Administration from Maharaja Agrasen Institute of Technology, Delhi,
under my guidance & direction. To the best of my knowledge and belief the data &
information presented by him/her in the report has not been submitted earlier.
Signature of Faculty Guide

Mr. Nakul Anand
Designation
Date:
iii
ACKNOWLEDGEMENT
I take the opportunity to express my gratitude to all of them who in some or other way
helped me to accomplish this challenging report. No amount of written expression is
sufficient to show my deepest sense of gratitude to them.
I am very thankful to Director Dr Neelam Sharma, MAIT, (HOD) Dr Amit Gupta,

MBA, MAIT and my Guide, Mr. Nakul Anand, MBA MAIT Maharaja Agrasen Inst.
Of Technology, Rohini for their everlasting support and guidance on the ground of
which I have acquired a new field of knowledge. The course structure created for this
curriculum has benefited with the inclusion of recent development in the organizational
and managerial aspects.
I express my sincere thanks to all people who participated and helped me in

successfully conducting project report. I am thankful to all the members who gave
valuable information in the part of my report.
Sachin Sharma
Univ. Enrollment No.: 36514803922
Date:
iv
EXECUTIVE SUMMARY
Indian automobile and auto components industry is on a roll and there is an immense
scope for management for enhancing the supply chain of the sector. India has become a
favourable destination for foreign companies to establish their facilities and form
alliances with domestic companies. Low cost of manufacturing and conducive
government support have been the major drivers for foreign companies investing in
India. India’s large young population, higher GDP growth, and most importantly per
capita passenger car penetration is low at 8.5 car per thousand population, which
creates great opportunity for industry players to offer an affordable four-wheeler
alternative to the two-wheeler customers. According to Planning Commission of India,
Indian automobile industry is expected to grow at CAGR of 15% over the next five
years.
The main weakness of the supply chain lies in the fact that best practice techniques are
permeating down to second tier suppliers in a very slow and uneven manner. One of the
most crucial indirect benefits of the recent wave of international joint ventures in the
car industry, lies in the fact that these ventures stimulate the development of
capabilities in the domestic supply chain – allowing domestic car makers to benefit
from new possibilities in outsourcing from low-price, high quality suppliers.
Such research in the Indian context may also provide a base to extend and test results
obtained from studies in the industrially advanced countries. Moreover research on new
product development in India can capture new parameters of the product development
process that can be tested in the industrially advanced country context of earlier studies.
These can also lead to the generation of contingency models of new product
development.
v
TABLE OF CONTENTS
Certificate.........................................................................................................
Acknowledgement ...........................................................................................
Executive Summary.........................................................................................
Page No.
Chapter 1: Introduction .............................................................................................
1.1. Introduction of the Study.............................................................................
1.2. Objectives of the study................................................................................
1.3. Scope of the Study.......................................................................................
1.4. Limitations of the Study..............................................................................
Chapter 2: Review of Literature.................................................................................
Chapter 3: Research Methodology.............................................................................

3.1. Research Design..........................................................................................
3.2. Data Collection Tools..................................................................................
Chapter 4: Data Analysis and findings.......................................................................

4.1 Data analysis................................................................................................
4.2 Findings........................................................................................................
Chapter 5: Conclusion.................................................................................................
5.1 Conclusion...................................................................................................
5.2 Recommendations........................................................................................
References/Bibliography..................................................................................
Appendices........................................................................................................
1-Questionnaire-.................................................................................................
vi
CHAPTER-1
INTRODUCTION
1
INTRODUCTION
1.1. Introduction of the Study

Automobile Sector In India
Automobile is one of the largest industries and has been recognised as one of the
drivers of economic growth. Government has initiated well-directed and focused efforts
to provide a new face to the automobile policy in order to harness the full potential of
the automobile sector. Abolition of licensing, removal of quantitative restrictions and
initiatives to align the policy with the WTO requirements have put the industry on a
fast track. Setting up of growth conducive environment has helped restructuring, and
enabled industry to absorb new technologies, aligning itself with the global
development and also to realise its growth potential in the country. The liberalisation
policies have led to continuous increase in competition, which has ultimately resulted
in modernisation in line with the global standards as well as in substantial cut in prices.
Aggressive marketing by the auto finance companies has also played a significant role
in boosting automobile demand, especially from the population in the middle-income
group.
The automotive industry is currently under enormous economic and political pressures,
and companies are responding in radically different ways. This combination of
pressures and responses is transforming the industry .From economic pressures such as
high raw materials prices (e.g., steel and petroleum) and countries offering low-cost
labor to responses such as outsourcing, industry consolidation, and assembly flexibility,
no organization can afford to remain static in any of its operations. While
manufacturing played a dominant role in the 1990s and still is important today, product
development is seeing a resurgence in terms of its importance within the organization.
Yet product development is under the same pressures as manufacturing to produce
exciting, innovative, cost-effective designs in a short period of time.
An automobile life cycle consists of the generic following stages:
Materials production;
Manufacturing and assembly;
2
Use and service;
End-of-life management.
Two different areas can be considered in Design Management [Koudate, 1991]:
Operation Management;
Innovation Management.
The first one, as involved in the routine business process, works to satisfy the today’s
client, instead the second one, as involved in the future scenarios, works to satisfy the
tomorrow’s client. Then, Operation Management can make less improvement in the
overall products’ environmental impacts, than those achievable by Innovation
Management. R&D, Marketing, Environment and Design functions afford Innovation
Management in planning product life cycles.
Indian companies are substantially increasing investments in production capacities,

establishing partnerships in India and abroad, investing in or acquiring companies
overseas, and establishing green field manufacturing footprints overseas. India enjoys a
cost advantage with regard to castings and forgings. The manufacturing costs in India
are 25 to 30 percent lower than its western counterparts. India's competitive advantage
does not come from costs alone, but from its full service supply capability.
Profile of Passenger Car Industry
The passenger car industry in India started in 1928 when General Motors set up an
assembly plant at Bombay in 1928. The next stage was starting of three Indian
companies for assembly of cars from CKD packs in forties. However, the industry can
really be considered to have started in 1953, when Government decided to allow only
projects with phased manufacturing programmes. The assembly of cars with imported
CKD packs in 1948 was around 3000 cars per year. Gradually the production increased
as also the indigenous content and current production is 176600 nos.
All manufacturers started production with foreign collaboration. Even when they were
bringing out new models, these were produced on the basis of imported designs and
know-how. The older manufacturers did make minor modifications and improvements
in their cars on their own. But when they wanted a completely new model, they
3
obtained fresh technical know-how. The passenger cars produced were current 'State of
Art' designs with modern features when first produced. However, the level of R&D in
passenger car industry is still limited and mainly looks after import substitution and
minor modifications. Without a considerable increase in R&D, it thus appears that the
industry will keep falling behind and when new models needs to be introduced, they
may have to depend on foreign technology.
In the increasingly competitive environment in India, the development and launch of

new products have become an important competitive tool. In a crowded marketplace,
there is greater need for differentiation; in markets that tend to be stagnant there is
pressure to create excitement. The development and launch of new products helps in
both situations.
Emerging markets like India are different from developed markets. Emerging markets
are often characterised by specific local needs, limited purchasing power and high price
sensitivity (Prahalad and Lieberthal, 1998). Khanna and Palepu (1997) have suggested
that in emerging economies, to make up for the absence of well-developed markets for
labour and capital, firms may have to create their own infrastructure. There are thus
contextual factors which can potentially influence an important strategic activity like
new product development in the emerging market context and make the challenges
before companies in these markets different from those in established economies.
Specifically, unlike established companies in developed markets, Indian companies are

facing the challenge of structuring, ab initio, the new product development process in
an environment of limited design skills and experience, few qualified vendors and
inappropriate engineering resources. At the same time, they are constrained by limited
financial and human resources, a lack of a market orientation, strong centralised control
by business family heads, functional chimneys without deep functional expertise, and
pressures to change on numerous fronts all at once to cope with the competitive
environment. Further, over the last eight years, the complexity of strategy formulation
and implementation has increased manifold – from merely obtaining an industrial
licence and preventing others from doing so, to managing growth, cost-
competitiveness, knowledge, innovation, and business portfolios simultaneously in a
globally competitive environment.
4
In a generic sense, the challenges faced by Indian companies in new product
development are the same as those faced by companies the world over. Indian
companies seek to get to market early (or reduce product development cycle times),
develop products with “integrity” (Clark and Fujimoto, 1990) that achieve strategic
objectives, make optimum use of development and other resources, and to develop not
one, but a stream of new products over time. To meet these challenges, contemporary
management thinking would advise Indian companies to “get it right the first time”,
pay adequate attention to the front end of the product development process (Khurana
and Rosenthal, 1997), listen to the voice of the customer (Griffin and Hauser, 1993),
improve intra-organisational communication, develop a common language to
communicate and share product development ideas, and to deploy cross-functional
teams in a structured product development process (Ulrich and Eppinger, 1995).
Techniques such as concurrent engineering (Hartley, 1992), design-for-manufacture
(Whitney, 1988), quality function deployment (Hauser and Clausing, 1988; ReVelle,
Moran and Cox, 1998), and value engineering are advocated within such a framework.
Other advice includes early supplier involvement, break-up and pipelining of tasks on
the critical path, creative use of prototypes through rapid design-test -build cycles
(Clark and Wheelwright, 1993), time-pacing (Eisenhardt and Brown, 1998) and
“platform-thinking” (Meyer and Lehnerd, 1997). At the strategic level, a clearly
articulated strategic intent (Hamel and Prahalad, 1989), a development strategy that
chooses the right set of projects and helps integrate strategic planning with R&D
strategy (Wheelwright and Clark, 1992), strong top management involvement at early
stages of the project, empowerment of project leaders as “heavyweight” project
managers (Clark and Fujimoto, 1990), strategic alliances for design or manufacturing,
transferring and leveraging skills and capabilities across the company (Prahalad and
Hamel, 1990), and setting targets for revenues from new products are in vogue. In
addition, the top management is urged to create an organisational climate in which
honest failures are tolerated, creativity is rewarded and inter-functional and inter-
divisional barriers are lowered to facilitate innovation across the organisation (Kanter,
Kao and Wiersema, 1997).
Statement about the Problem
The main aim of the study is to analyze the Supply Chain Management in automobile
industry with special reference to Maruti Suzuki.
5
Supply chain management has emerged as a new source of competitive advantage.
Successful implementation of various supply chain practices has made it possible for
firms to compete in delivery, reduced cost, less obsolescence, better use of non-
operating assets and responsiveness to customer needs. The central aim of supply chain
management, to have the right products in the right quantities at the right moment at
minimal cost, is translated into the interrelated issues of customer satisfaction,
inventory management, and flexibility. Customer satisfaction is to a high degree
dependent on the flexibility of the supply chain, i.e. its ability to respond to changes in
demand. Flexibility is often imperfect because of long lead times, uncertainties, and
unforeseen event. To counterbalance this lack of flexibility companies will keep
inventories at various levels of the supply chain. Balancing the costs of imperfect
customer satisfaction and holding inventory is a classic issue of logistics and supply
chain management.
Eight pitfalls related to inventory management are described: no supply chain metrics,
inadequate definition of customer service, inaccurate delivery status data, inefficient
information systems, ignoring the impact of uncertainties, simplistic inventory stocking
policies, organizational barriers, and an incomplete view of the supply chain. Increasing
globalization of supply chains causes longer lead times, which worsen flexibility, and
creates the need for more inventory. When lead times can no longer be shortened, an
important tool for improving the supply chain performance is that of increased
coordination.
Why Is This Particular Topic Chosen
The challenge of managing a continuous supply of goods from all these different
entities is the challenge of managing the supply chain. Indian automobile companies
are now looking at extending their IT initiatives to touch business partners like
suppliers on one hand and the distributors on the other. Extending the IT chain to link
the distributors for instance, would be of mutual benefit. The distributor would benefit
by having a greater 'say' in what would be dispatched to him by the Carrier and
Forwarding Agent or CFA servicing him. In essence this would propel a movement
from a 'push' based system to a 'pull' based system, translating into inventory
efficiencies right from the distributor stock point to the CFA and to the manufacturing
location. Efficiencies in inventory would generate better ROI for the distributor thereby
6
strengthening the relationship with the organization. Besides, the organization would
have a daily view of the secondary sales (from the distributor to the retailer) translating
into a higher degree of accuracy in forecasting and demand planning. Connecting to the
suppliers on the other hand would allow an organization to move towards 'Vendor
Managed Inventory' type of a relationship. Hence the supplier can not only control the
inventory at his level, but also at the organizational level. He also gets a view of future
requirements which allows him to plan his production schedule efficiently. The
inventory at the organization would always be at a balanced level.
The automobile industry lives and dies on the effectiveness of its supply chain. It’s
essential that stock movements are timely and accurately tracked. Naturally, suppliers
are turning to IT to make their supply chains more responsive to retailers’ demands,
whilst working out ways to squeeze more costs out of the supply chain.
After the success of the financials, procurement, and human resources deployment,
Maruti is considering expanding its Oracle footprint. The company is evaluating Oracle
Advanced Supply Chain Management and Oracle Enterprise Asset Management. “We
would like to automate supply chain management and integrate this process with the
Oracle ERP system,” said Uppal. “We are also looking at linking more systems with
Oracle, so we can access real-time information across all our businesses. I expect
Oracle Consulting to play a role in future projects.
COMPANY PROFILE
Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an Indian
automobile manufacturer, based in New Delhi. It was founded in 1981 and owned by
the Government of India until 2003, when it was sold to the Japanese automaker Suzuki
Motor Corporation.[2][7] As of September 2022 Maruti Suzuki has a market share of
42 percent in the Indian passenger car market.[8]
History
Logo of Maruti Udyog
7
Maruti Udyog Limited was founded by the Government of India on 24 Jan 1981 with
Suzuki Motor Corporation as a minor partner, only to become the formal JV partner
and license holder of Suzuki in August 2021.[9] The first manufacturing factory of
Maruti was established in Gurugram, Haryana, in the same year.[10]
Chronology
Affiliation with Suzuki
In 1982, a license and joint venture agreement (JVA) was signed between Maruti
Udyog Ltd., and Suzuki of Japan. At first, Maruti Suzuki was mainly an importer of
cars. In India's closed market, Maruti received the right to import 2 fully built-up
Suzuki in the first two years, and even after that, the early goal was to use only 33%
indigenous parts. This upset the local manufacturers considerably. There were some
concerns that the Indian market was too small to absorb the comparatively large
production planned by Maruti Suzuki, with the government even considering adjusting
the petrol tax and lowering the excise duty in order to boost sales.[11] Local production
commenced in December 1983 with the introduction of the SS30/SS40 Suzuki
Fronte/Alto-based Maruti 800.[12] In 1984, the Maruti Van with the same three-
cylinder engine as the 800 was released and the installed capacity of the plant in
Gurgaon reached 40,000 units.
In 1985, the Suzuki SJ410-based Gypsy a 970 cc 4WD off-road vehicle, was launched.
In 1986, the original 800 was replaced by an all-new model of the 796 cc hatchback
Suzuki Alto (SS80), and the 100,000th vehicle was produced by the company.[13] In
1987, the company started exporting to western markets, when a lot of 500 cars were
sent to Hungary. By 1988, the capacity of the Gurgaon plant was increased to 100,000
units per annum.
Market liberalisation
In 1989, the Maruti 1000 was introduced and the 970 cc, three-box was India's first
contemporary sedan. By 1991, 65 percent of the components, for all vehicles produced,
were indigenized. After the liberalization of the Indian economy in 1991, Suzuki
increased its stake in Maruti to 50 percent, making the company a 50-50 joint venture
with the government of India as the other stakeholder.
8
In 1993, the Zen, a 993 cc engined hatchback was launched, and in 1994 the 1,298 cc
Esteem sedan was introduced. Maruti produced its 1 millionth vehicle since the
commencement of production in 1994. Maruti's second plant was opened with an
annual capacity reaching 200,000 units. Maruti launched a 24-hour emergency on-road
vehicle service. In 1998, the new Maruti 800 was released, being the first change in
design since 1986. Zen D, a 1,527 cc diesel hatchback, Maruti's first diesel vehicle, and
a redesigned Omni were introduced. In 1999, the 1.6-litre Maruti Baleno three-box
sedan and Wagon R were also launched.
In 2000, Maruti became the first car company in India to launch a call center for
internal and customer services. The new Alto model was released. In 2001, Maruti True
Value, selling and buying used cars was launched. In October of the same year, the
Maruti Versa was launched. In 2002, Esteem Diesel was introduced. Two new
subsidiaries were also started: Maruti Insurance Distributor Services and Maruti
Insurance Brokers Limited. Suzuki Motor Corporation increased its stake in Maruti to
54.2 per cent.
In 2003, the new Suzuki Grand Vitara XL-7 was introduced while the Zen and the
Wagon R were upgraded and redesigned. The four millionth Maruti vehicle was built
and they entered into a partnership with the State Bank of India. Maruti Udyog Ltd.
was listed on BSE and NSE after a public issue, which was oversubscribed tenfold. In
2004, the Alto became India's best-selling car overtaking the Maruti 800 after nearly
two decades. The five-seater Versa 5-seater, a new variant, was created while the
Esteem was re-launched. Maruti Udyog closed the financial year 2003–04 with an
annual sale of 472,122 units, the highest ever since the company began operations and
the fiftieth lakh (5 millionths) car rolled out in April 2005. The 1.3-litre Suzuki Swift
five-door hatchback was introduced in 2005.[14]
In 2006 Suzuki and Maruti set up another joint venture, "Maruti Suzuki Automobiles
India", to build two new manufacturing plants, one for vehicles and one for engines.
[14] Cleaner cars were also introduced, with several new models meeting the new
Bharat Stage III emission standards.[14] In February 2012, Maruti Suzuki sold its ten
millionth vehicle in India.[12] In July 2014 it had a market share of more than 45%.
9
[15] In May 2015, the company produced its fifteen millionth vehicle in India, a Swift
Dzire.[16]
On 25 April 2019, Maruti Suzuki announced that it would phase out production of
diesel cars by 1 April 2020, when the Bharat Stage VI emission standards come into
effect. The new standards would require a significant investment from the company to
upgrade its existing diesel engines to comply with the more stringent emission
standards. Chairman R.C. Bhargava stated, "We have taken this decision so that in
2022 we are able to meet the corporate average fuel efficiency (CAFE) norms and
higher share of CNG vehicles will help us comply with the norms. I hope the union
government's policies will help grow the market for CNG vehicles." Diesel cars
accounted for about 23 percent of Maruti Suzuki's annual sales.[17]
The company plans to launch its first electric car in the second half of 2021, the Maruti
Suzuki WagonR Electric[18] and a test mule of the same has been spotted several times
recently.
Joint venture related issues

Relationship between the Government of India, under the United Front (India) coalition
and Suzuki Motor Corporation over the joint venture was a point of heated debate in
the Indian media until Suzuki Motor Corporation gained the controlling stake. This
highly profitable joint venture that had a near monopolistic trade in the Indian
automobile market and the nature of the partnership built up till then was the
underlying reason for most issues. The success of the joint venture led Suzuki to
increase its equity from 26% to 40% in 1987, and to 50% in 1992, and further to
56.21% as of 2013.[19] In 1982, both the venture partners entered into an agreement to
nominate their candidate for the post of Managing Director and every Managing
Director would have a tenure of five years.[20][21]
Manufacturing facilities
Maruti Suzuki has two manufacturing facilities in Haryana (Gurugram and Manesar),
and one manufacturing complex in Gujarat wholly-owned by parent company Suzuki
which supplies its entire production to Maruti Suzuki. All manufacturing facilities have
10
a combined production capacity of 2,250,000 vehicles annually (1.5 million from
Maruti Suzuki's two plants and 750,000 from Suzuki Motor Gujarat).
The Gurugram manufacturing facility has three fully integrated manufacturing plants
and is spread over 300 acres (1.2 km2).[22] The Gurgaon facilities also manufacture
240,000 K-Series engines annually. The Gurugram facility manufactures the Alto 800,
WagonR, Ertiga, XL6, S-Cross, Vitara Brezza, Ignis and Eeco. The Gurugram facility
also assembles the Jimny starting from January 2021 solely for export markets. It was
reported the Indian-assembled Jimny will be exported to African markets and countries
in the Middle East.[23]
The Manesar manufacturing plant was inaugurated in February 2007 and is spread over
600 acres (2.4 km2).[22] Initially it had a production capacity of 100,000 vehicles
annually but this was increased to 300,000 vehicles annually in October 2008. The
production capacity was further increased by 250,000 vehicles taking the total
production capacity to 800,000 vehicles annually.[24] The Manesar plant produces the
Alto, Swift, Ciaz, Baleno and Celerio. On 25 June 2012, Haryana State Industries and
Infrastructure Development Corporation demanded Maruti Suzuki to pay an additional
₹235 crore for enhanced land acquisition for its Haryana plant expansion. The agency
reminded Maruti that failure to pay the amount would lead to further proceedings and
vacating the enhanced land acquisition.[25]
In 2012, the company decided to merge Suzuki Powertrain India Limited (SPIL) with
itself.[26] SPIL was started as a JV by Suzuki Motor Corp. along with Maruti Suzuki.
It has the facilities available for manufacturing diesel engines and transmissions. The
demand for transmissions for all Maruti Suzuki cars is met by the production from
SPIL.
In 2017, the new Suzuki Motor Gujarat facility was opened. This third facility is not
owned by Maruti Suzuki, but instead wholly owned by Suzuki Motor Corporation.
Despite that, the plant supplied vehicles to Maruti without any additional cost. Located
in Hansalpur, Ahmedabad, the plant has a total annual capacity of 750,000 units.
11
In November 2021 Maruti Suzuki announce to set up of a big plant in IMT Kharkhoda
in Sonipat district across 900 acres with an investment of ₹18,000 crores.[27]
Haryana State Industrial and Infrastructure Development Corporation gives 900 acres
of land to Maruti Suzuki for setting up a new plant in Industrial Model Township at
Kharkhoda, Haryana.[28]
In August 2022 Prime Minister of India Shri Narendra Modi lays foundation stone of
Maruti Suzuki's new manufacturing plant in Kharkhoda. It will be one of the largest
automobile manufacturing plant in World with capacity of making 1 million cars per
year.[29][30]
The new manufacturing facility in Kharkhoda, Haryana will have four manufacturing
plants in which 10 lakh cars will be produced annually and the Kharkhoda, Haryana
Plant will be third largest car producer facility in world.[31]
Controversies
Industrial relations
Since its founding in 1983, Maruti Udyog Limited has experienced problems with its
labour force. The Indian labour it hired readily accepted Japanese work culture and the
modern manufacturing process. In 1997, there was a change in ownership, and Maruti
became predominantly government controlled. Shortly thereafter, conflict between the
United Front Government and Suzuki started. In 2000, a major industrial relations issue
began and employees of Maruti went on an indefinite strike, demanding among other
things, major revisions to their wages, incentives and pensions.[32][33]
Employees used slowdown in October 2000, to press a revision to their incentive-

linked pay. In parallel, after elections and a new central government led by NDA
alliance, India pursued a disinvestment policy. Along with many other government
owned companies, the new administration proposed to sell part of its stake in Maruti
Suzuki in a public offering. The worker's union opposed this sell-off plan on the
grounds that the company will lose a major business advantage of being subsidised by
the Government, and the union has better protection while the company remains in
control of the government.[32][34]
12
The standoff between the union and the management continued through 2001. The
management refused union demands citing increased competition and lower margins.
The central government privatized Maruti in 2002 and Suzuki became the majority
owner of Maruti Udyog Limited.[35][36]
Manesar violence
On 18 July 2012, Maruti's Manesar plant was hit by violence. According to Maruti
management, the production workers attacked supervisors and started a fire that killed
company's General Manager of Human Resources Avineesh Dev and injured 100 other
managers, including two Japanese expatriates. The workers also allegedly injured nine
policemen.[37][38] However Maruti Suzuki Workers Union (MSWU) President Sam
Meher alleged that management ordered 300 hired security guards to attack the
workforce during the violence.[39] The incident is the worst-ever for Suzuki since the
company began operations in India in 1983.[40]
Since April 2012, the Manesar union had demanded a three-fold increase in basic
salary, a monthly conveyance allowance of ₹10,000, a laundry allowance of ₹3,000, a
gift with every new car launch, and a house for every worker who wants one, or
cheaper home loans for those who want to build their own houses.[41][42] According
to the Maruti Suzuki Workers Union a supervisor had abused and made discriminatory
comments to a low-caste worker, Jiya Lal.[43] These claims were denied by the
company and the police.[38] Maruti said the unrest began, not over wage discussions,
but after the workers' union demanded the reinstatement of Jiya Lal who had been
suspended for allegedly beating a supervisor.[40] The workers claim harsh working
conditions and extensive hiring of low-paid contract workers which are paid about
$126 a month, about half the minimum wage of permanent employees.[43] On 27 June
2013, an international delegation from the International Commission for Labor Rights
(ICLR) released a report alleging serious violations of the industrial right of workers by
the Maruti Suzuki management.[44] Company executives denied harsh conditions and
claim they hired entry-level workers on contracts and made them permanent as they
gained experience.[41] Maruti employees currently earn allowances in addition to their
base wage.[45]
13
The police, in its First Information Report (FIR), claimed on 21 July that Manesar
violence is the result of a planned violence by a section of workers and union leaders
and arrested 91 people.[46][47] Maruti Suzuki in its statement on the unrest,[48]
announced that all work at the Manesar plant has been suspended indefinitely.[40] The
shut down of Manesar plant is leading to a loss of about ₹75 crore[49] per day.[50] On
21 July 2012, citing safety concerns, the company announced a lockout under The
Industrial Disputes Act, 1947 pending results of an inquiry the company has requested
of the Haryana government into the causes of the disorder. Under the provisions of The
Industrial Disputes Act for wages, the report claimed, employees are expected to be
paid for the duration of the lockout.[49] On 26 July 2012, Maruti announced employees
would not be paid for the period of lock-out in accordance with Indian labour laws. The
company further announced that it will stop using contract workers by March 2013.
The report claimed the salary difference between contract workers and permanent
workers has been much smaller than initial media reports – the contract worker at
Maruti received about ₹11,500 per month, while a permanent worker received about
₹12,500 a month at start, which increased in three years to ₹21,000-₹22,000 per
month.[51] In a separate report, a contractor who was providing contract employees to
Maruti claimed the company gave its contract employees[52] the best wage, allowances
and benefits package in the region.[53]
Shinzo Nakanishi, managing director and chief executive of Maruti Suzuki India, said
this type of violence has never happened in Suzuki Motor Corp's global operations in
Hungary, Indonesia, Spain, Pakistan, Thailand, Malaysia, China and the Philippines.
Nakanishi apologised to affected workers on behalf of the company, and in press
interview requested the central and Haryana state governments to help stop further
violence by legislating decisive rules to restore corporate confidence amid emergence
of this new 'militant workforce' in Indian factories. He announced, "we are going to de-
recognise Maruti Suzuki Workers' Union and dismiss all workers named in connection
with the incident. We will not compromise at all in such instances of barbaric,
unprovoked violence." He also announced Maruti plans to continue manufacturing in
Manesar, that Gujarat was an expansion opportunity and not an alternative to Manesar.
[54][55]
14
The company dismissed 500 workers accused of causing the violence and re-opened the
plant on 21 August, saying it would produce 150 vehicles on the first day, less than
10% of its capacity. Analysts said that the shutdown was costing the company 1 billion
rupees ($18 million) a day and costing the company market share.[56] In July 2013, the
workers went on hunger strike to protest the continuing jailing of their colleagues and
launched an online campaign to support their demands.[57]
A total of 148 workers were charged with the murder of Human Resources Manager
Avineesh Dev. The court dismissed charges against 117 of the workers. On 17 March
2017, 31 workers were found guilty of variety of offences. 18 were convicted on
charges of rioting, trespassing, causing hurt and other related offences under Indian
Penal Code sections. The remaining 13 workers were sentenced to life in imprisonment
after being found guilty of the murder of General Manager of Human Resources
Avineesh Dev. Twelve of the thirteen sentenced were office-bearers of the Maruti
Suzuki Workers Union at the time of the alleged offences. The prosecution had sought
the death penalty for the thirteen.[58]
Both prosecution and defence have announced they will appeal against the sentences.
Defence counsel Vrinda Grover stated, "We will file appeals against all convictions in
the HC. The evidence, as it stands, cannot withstand legal scrutiny. There is no
evidence to link these workers to the murder. The 13 who have been convicted, it’s
important to remember that they were the leaders of the union. Therefore, it is clear that
this is targeted framing of these persons. We hope for justice in the superior court".[59]
The Maruti Suzuki Workers Union is continuing to organise industrial action and
protests calling for the workers to be released and criticising the judgement and
sentences an unjust.[60] An international appeal for the release of the workers has been
made by the International Committee for the Fourth International (ICFI) and other
organisations such as the People's Alliance for Democracy and Secularism.[61][62]
Automotive safety
Maruti Suzuki's has been criticized for compromising safety in their products by
automotive enthusiasts, journalists, and the Global NCAP, as they are made lighter in
terms of kerb weight to achieving higher fuel economy. Starting 2014, several of their
15
made for India cars were crash tested at Global NCAP, most of which have given
disappointing results. Cars like Alto, Swift, Celerio, S-Presso (with driver's airbag), and
Eeco which had no safety features like airbags were awarded 0 stars, while Wagon-R
and Swift (2018 model year) which had dual front airbags were awarded 2 stars out of
5. Only the Vitara Brezza (4 stars) and Ertiga (3 stars) have been awarded decent safety
ratings.[63] Though Maruti Suzuki claimed that they were following the safety
standards mandated by the Government of India, it however only implied with the
safety features included in their cars and not the strong body shell or build quality
which suffers the impact of the crash.[64] Maruti Suzuki has also come under fire for
discrimination with customers in India, by making cars safe meant for exports to
European and African markets.[65]
The chairman, RC Bhargava stated that "If carmakers incorporate such features in even
entry-level cars, obviously the price would go up, which would lead consumers to opt
for two-wheelers, which would be more unsafe", which attracted criticism.[66] The
company, in February 2020, decided not to send their cars to Global NCAP for testing,
as they only believe in the Safety Standards set by the Government of India.[67]
Following the crash test results of S-Presso, Alejandro Furas, Secretary General of
Global NCAP said, “It is very disappointing that Maruti Suzuki, the manufacturer with
the largest share of the Indian market, offers such low safety performance for Indian
consumers. Domestic manufacturers like Mahindra and Tata have demonstrated high
levels of safety and protection for their customers, both achieving five star
performance. Surely it’s time for Maruti Suzuki to demonstrate this commitment to
safety for its customers?” Alongside, David Ward, President of the Towards Zero
Foundation said, "We have seen important progress on car safety in India, with new
legislation introduced by the government and manufacturers like Mahindra and Tata
accepting the Global NCAP five star challenge and producing models which go well
beyond minimum regulatory requirements. There is no place for zero rated cars in the
Indian market. It remains a great disappointment that an important manufacturer like
Maruti Suzuki does not recognize this."[68]
Anti-competitive dealer policies

In Aug 2021, Maruti Suzuki was fined ₹200 Crore (US$28.57 million) by the
Competition Commission of India (CCI) for implementing its Discount Control Policy
16
that restrains dealers from offering customer discounts beyond those prescribed by the
carmaker.[69
Company’s vision and mission
Vision:
Visions of any company are those values on which company works. As the MUL is
started by Governmental initiatives it tends to be more consumer oriented and hence
cost effective, but on the other hand Suzuki’s participation ensures not only need of the
profit, but of the need of maximum profit. The only way for this Nora’s dilemma of
selecting principals for company’s working vision ,was to maximize profit and
reducing cost by maximizing output and sales Hence MUL declared its Vision as-
“The Leader in the Indian Automobile Industry, Creating Customer Delight1 and
Shareholder's Wealth2; eventually become a pride of India”
Customer Delight1 is making sure that performance, after sales service and customer
support are best and beyond expectation. Shareholder’s wealth2 is the prime concern
for running business smoothly.MUL knows this and understands “customer is king”, he
can change the fortune of any company, hence goes company’s brand line: COUNT
ON US!
Mission:
Mission is the statement of an organization’s purpose, what it want to accomplish in the
larger environment and its goals which are specific, realistic and motivating. Missions
are described over visions and visions demand certain objectives. The main
objectives/Missions of MUL are:
 Modernization of the Indian Automobile Industry.
 Developing cars faster and selling them for less.
 Production of fuel-efficient vehicles to conserve scarce resources.
 Production of large number of motor vehicles which was necessary for economic
growth.
 Market Penetration, Market Development Similarly Product Development and

Diversification.
 Partner relationship management, Value chain, Value delivery network.
17
Product/Service range of the company along with age.
All the following cars are the products of Maruti Suzuki. The range is as follows:
WagonR
EECO
Prices starts from 2.7 lakhs to 3.1 lakhs. Prices starts from 3.2 lakhs to 4.5 lakhs.
Available in 3 variants. Available in 7 variants.
Launched on January 2010. Launched on February 2000.
SX4
Swift
Prices starts from 6.9 lakhs to 8.7 lakhs. Prices starts from 4.1 lakhs to 5.4 lakhs.
Available in 5 variants. Available in 10 variants.
Launched on May 2007. Launched on May 2005.
Swift DZire
Zen Estilo
Prices starts from 4.6 lakhs to 6.9 lakhs.

Available in 9 variants.
Launched on March 2009.
Launched on August 2009. Omni
Ritz
Prices starts from 2 lakhs to 2.7 lakhs.

Launched on 2003(latest model).
Launched on August 2009.
Gypsy
18
Launched on September 2000.
A-star
Launched on 1985(1st model), March
2003(latest model).
Grand Vitara
Launched on January 2009.
M 800
Prices starts from 17 lakhs to 18.5

lakhs.
Launched on October 2006.

Alto
Launched on 1984(1st model),
September 2009(latest).
Prices start from 2.3 lakhs to 2.9 lakhs.
Knowing more about the product Alto: -

Overview: -
Maruti Suzuki Alto is a step up from the 800. Priced aggressively, the Alto has proved
to become the 'new' 800' for the masses. Design is typical Maruti Suzuki. Powering the
Alto is an 800 cc petrol engine that is mated to a 5 speed gearbox. Interior space is
decent and fit and finish is what you would expect in a car at this price.
19
Maruti Suzuki has 2,413 Arena sales outlets across 1,992 cities and 380 Nexa sales
outlets across 228 cities in India.[5] The company aims to increase its sales network to
4,000 outlets by 2020.[72] It has 4044 service stations across 1,861 cities throughout
India.[73] Maruti's dealership network is larger than that of enough known companies
combined.[74] Service is a major revenue generator of the company. Most of the
service stations are managed on franchise basis, where Maruti Suzuki trains the local
20
staff. Also, The Express Service stations exist, sending across their repairman to the
vehicle if it is away from a normal service center.[75][76]
1.2. Objectives of the study

The present study revolves around the following broad objectives:
1. To study the role of supply chain management in Automobile Industry
2. To Study the Supply chain management System of Maruti Suzuki India Limited .
3. To study the inventory management system of the Maruti Suzuki India Limited.
21
1.3. Scope of the Study
The scope of supply chain management is quite broad. Since the supply chain
encompasses multiple aspects such as manufacturing, warehousing, packaging,
transportation & delivery, IT, logistics, etc., it creates numerous job positions across
different sectors. Automotive companies generally hire maintenance engineers or
automotive inventors for the supervision and designing of vehicles. Both internal and
external factors require automotive supply chain managers to minimize costs, optimize
manufacturing and distribution, and ensure that parts and products get to the right
organizations at the right time. Automobile contributes nearly 6% to India's GDP and
35% of the manufacturing GDP. The EV market is expected to grow at CAGR of 49%
between 2022-2030 and is expected to hit 10 Mn-unit annual sales by 2030. The EV
industry will create 50 Mn direct and indirect jobs by 2030.
1.4. Limitations of the Study

The main limitation in doing this project will be the time and cost constraints. Usually a
project like this involves a lot of time and cost. Otherwise I don’t see any major
limitation restricting me in completing this research project successfully. I am sure the
blessings of almighty and the support and encouragement by my honorable faculty
member at Project will definitely see me through.
22
CHAPTER-2
REVIEW OF LITERATURE
23
REVIEW OF LITERATURE
The review of literature helps to understanding to various aspect of the problem under
study. Since the topic has been taken for research is factors influencing consumer
satisfaction to consumer preference towards four wheelers, information procure from
the previous studies concerning about preferences of brand, awareness about the brand
in car market, brand choice, advertising impact, some buying habit and also brand
divert is discussing in the following paragraph.
Nitin Joshi1, D. P. Mishra (2011) The aim of the study is to understand the behaviour
of the customer in the State of Maharashtra which is one of the most developed states
of India. The study was carried out to understand the customer awareness on
environment friendly car (EFC). The objective of the study is to understand the
awareness levels and create awareness of the EFC so that the efforts of the
manufacturing the green car will be achieved. SPSS version 17.0 has been used for
analysis of the data. Five hundred respondents have been asked to fill in a
questionnaire. The study has been done keeping in mind age group and the
geographical area of the respondents. With reference to the age group, it is observed
that there is no significant difference in the awareness levels but with reference to the
geography, it is observed that there is a significant difference in the awareness levels
with reference to the EFC.
Prof. Pallawi B. Sangode (2011) This research paper is based on the findings of
comparative study of service quality of Maruti Suzuki and Hyundai Showrooms in
Nagpur. Service quality is a fundamental aspect of service provision, and this is
especially the case with motor vehicles, where substantial profits are generated in the
servicing of vehicles. The study was conducted using a convenience sample of forty
respondents who were owners of Maruti and Hyundai cars. The questionnaire was a
self-completion questionnaire consisting of 26 questions.
Dr P. Natarajan and U. Thiripurasundari (2010) this study focuses on the consumer

preference of global brands vs. local brands in the Indian car industry. Consumer brand
perceptions have substantial implications in marketing. The customers‘ preference
towards local and global brands is studied by administering a structured interview
schedule with one hundred and fifty customers in Pondicherry city. The findings of the
24
study advised that the consumers who possessed global car brands preferred their car
brands due to factors such as global presence, worldwide reputation and the quality of
being imported. Consumers made favourable perceptions on the country wherein they
tend to associate factors such as superior quality, technical advancements,
modernization etc. to the country from which the brand had taken its origin. Consumers
who owned a local brand evaluated the local brand in a favourable manner, wherein
they tended to associate the brand to India‘s strong automobile sector making quality
and technically efficient cars.
Gauhar Fatma ,Ela Kumari (2013),Marketing strategies of Maruti-Suzuki Maruti-

Suzuki India.ltd is a leading manufacturer of four -wheeler in India.
Nashwan Mohammed Abdullah saif, Wang Aimin (2016), Explaining the value and
process of marketing strategy Marketing strategy represents a key element of success
for organisations.
M.Akhila, Ali Ashas T Thayyullathil (2015), A study on customer satisfaction

towards Maruti-Suzuki in Coimbatore Customer satisfaction is defined as the number
of customers, or percentage of total customers Fred Palumbo, Paul Herbig (2000),The
multicultural context of brand loyalty This examines the concept of brand loyalty,
discusses the various issues connected with brand loyalty.
Suraksha Gupta, Naresh Malhotra (2013), Marketing Innovation: a resource–based

view of international and local firms, Marketing intelligence and planning The study
draws an managerial practices and existing literature to develop a conceptual
framework.
Plavini Punyatoya (2014), Evaluate of branding strategies for global versus local
brand, the role of concept consistency This aims to examine the moderating role of
concept consistency in consumer evaluation of new product.
What contribution would the project make ?
With competition getting intense, automobile companies are fine tuning their strategies
to differentiate themselves with brand building measures. Automobile producers are
banking on extensive coverage and celebrity endorsements to build top-of-the-mind
recall among users.
25
Maruti has a successful history of Oracle implementations, beginning with the
deployment of Oracle Database and Oracle Real Application Clusters as a stable
foundation for its nationwide dealer management system. The dealer management
system itself was developed using Oracle Fusion Middleware products. When it came
to selecting a solution for the ERP system, Maruti again turned to Oracle. “We
evaluated several packages but found that the open interfaces of Oracle E-Business
Suite offered the best integration with our legacy systems,” said Uppal. “Standardizing
on Oracle technology and applications would also lower support costs and ensure easy
upgrades in the future.” Maruti had previously used external parties to develop and
deploy its Oracle solutions. This time, the company decided to work directly with the
vendor to deploy the ERP system.
Supply Chain management In Automotive Industry
Indian automobile industry is riding high with overwhelming economic growth rate of
8.4% in 2015-16. The industry has been growing at CAGR of 16.33% from 2001-02 to
2015-16 in terms of production. Booming IT/ITES sector, manufacturing industry
(namely textile, pharmaceutical and engineering) and real estate have contributed to
this high growth in automobile industry in the country. This is easy to understand
because the per capita disposable income of the people has gone up remarkably. Over
the last five years, per capita personal disposable income has gone up by around 8%,
which has increased purchasing capacity of the people in the country. Other factors
have also contributed to this high growth in Indian automobile sector. These include
lowering age of first car users, shorter replacement cycles, rising duel income families,
new technology, which is lowering cost of ownership, low car penetration in the
country and most importantly growing steel production in the country. In addition,
wide variety and easily available financing options are also some of the major reasons
for surge in demand for automobiles in India.
Domestic sales have grown at CAGR of 14.27% from 2001-02 to 2015-16. The
commercial vehicle segment, in particular, has increased at CAGR of 24.35% during
the above-mentioned period; whereas total sales of passenger cars in domestic market
have increased at CAGR of 14.02%. In terms of production, commercial vehicles have
registered a CAGR of 24.55% from 2001-02 to 2015-16; while passenger vehicles have
26
registered a CAGR of 18.24%. There is a declining trend in mopeds production as well
as in sales in the domestic market. During 2001-02, mopeds production and sales have
declined at CAGR 2.93% and 5% respectively.
Exports on a roll
The significant development in Indian automobile sector is the outstanding growth of

its exports. From 2001-02 to 2015-16, total exports of automobile sector has gone up at
CAGR of 44.56%. Exports of motorcycle segment have registered highest annual
growth rate of 61.42% during this period. This has clearly indicated that Indian
automobile sector is going global.
BLOCKCHAIN SUPPLY CHAIN TECHNOLOGIES WITHIN THE

AUTOMOTIVE MARKET 2018-2028
Forecasts by Application (Retail Sales, Service & Finance Management, Insurance &
Leasing, In-Plant Logistics & Management, Spare Parts, Warranty & Other After Sales
Services, Internet of Things (IoT) & Others) Plus Analysis of Leading Companies
Developing Distributed Ledger Technology (DLT)
Product code: AUT0062
 Publication date: 19/12/2017
 Number of Pages: 203
1. Report Details
2. Table of Contents
3. Companies Listed
Report Details
The latest report from business intelligence provider Visiongain offers comprehensive
analysis of the global blockchain supply chain technologies within the automotive
market. Visiongain assesses that this market will generate revenues of $88.1 Mn in
2018.
Now: There was more than 500,000 fake car parts which were seized in a raid at Abu
Dhabi. This is an example of the business-critical headline that you need to know about
- and more importantly, you need to read Visiongain’s objective analysis of how this
will impact your company and the industry more broadly. How are you and your
company reacting to this news? Are you sufficiently informed?
27
How this report will benefit you
Read on to discover how you can exploit the future business opportunities emerging in
this sector. Visiongain’s new study tells you and tells you NOW.
In this brand new report you find 182 in-depth tables, charts and graphs– all
unavailable elsewhere.
The 203 page report provides clear detailed insight into the global blockchain supply
chain technologies within the automotive market. Discover the key drivers and
challenges affecting the market.
By ordering and reading our brand new report today you stay better informed and ready
to act.
Report Scope
Global Blockchain Supply Chain Technologies Within Automotive Market Forecasts
From 2018-2028
Blockchain Supply Chain Technologies Within Automotive Submarket Forecasts From
2018-2028 Covering
• Retails Sales, Service and Finance Management
• Insurance and Leasing
• In-plant Logistics and Management
• Spare Parts, Warranty and Other After Sales Services
• IoT and Others
Regional Blockchain Supply Chain Technologies Within Automotive Market

Forecasts From 2018-2028 Covering
North America Blockchain Supply Chain Technologies Within Automotive
Market Forecasts From 2018-2028
• U.S. Forecast 2018-2028
• Canada Forecast 2018-2028
• Rest of North America Forecast 2018-2028
Asia-Pacific Blockchain Supply Chain Technologies Within Automotive Market

Forecasts From 2018-2028
• China Forecast 2018-2028
• Japan Forecast 2018-2028
28
• India Forecast 2018-2028
• Australia & New Zealand Forecast 2018-2028
• Rest of Asia Pacific Forecast 2018-2028
Latin America Blockchain Supply Chain Technologies Within Automotive Market

• Brazil Forecast 2018-2028
• Mexico Forecast 2018-2028
• Argentina Forecast 2018-2028
• Rest of Latin America Forecast 2018-2028
Europe Blockchain Supply Chain Technologies Within Automotive Market

• U.K. Forecast 2018-2028
• Germany Forecast 2018-2028
• France Forecast 2018-2028
• Rest of Europe Forecast 2018-2028
Middle East & Africa Blockchain Supply Chain Technologies Within Automotive
Market Forecasts From 2018-2028
• GCC Forecast 2018-2028
• North Africa Forecast 2018-2028
• South Africa Forecast 2018-2028
• Rest of Middle East & Africa Forecast 2018-2028
29
Analysis Of The Key Factors Driving Growth In The Global, Regional And
Country Level Blockchain Supply Chain Technologies Within Automotive
Markets From 2018-2028
Profiles Of The Leading Blockchain Supply Chain Companies Within The
Automotive Sector
•
Mesosphere
• Dash
• Bitpay
• Shapeshift
• Bittrex
• Factom Inc
• Coinbase Inc.
• Blockchain
• Ripple
• IBM
• Chain Inc
• Monax
30
Who should read this report?
• Automotive OEMs • Marketing staff
• Component suppliers • Market analysts
• connected car specialists • Procurement staff
• Electronics companies • Company managers
• Logistics companies • Industry administrators
• Technology providers • Industry associations
• Automotive retailers • Company procurement departments
• Insurance companies • Business development managers
• Leasing companies • Consultants
• CEOs • Investors
• Senior Executives • Banks
• Asset managers • Governmental departments &
• Heads of strategic development agencies
Visiongain’s study is intended for anyone requiring commercial analyses for the
Blockchain Supply Chain Technologies market and leading companies. You find data,
trends and predictions.
Buy our report today Blockchain Supply Chain Technologies Within the Automotive
Market 2018-2028: Forecasts by Application (Retail Sales, Service & Finance
Management, Insurance & Leasing, In-Plant Logistics & Management, Spare Parts,
Warranty & Other After Sales Services, Internet of Things (IoT) & Others) Plus
Analysis of Leading Companies Developing Distributed Ledger Technology (DLT).
Avoid missing out by staying informed – get our report now.
Proton has already made some in-roads in the Chinese market – a rebadging deal with
Jinhua Youngman. An interview with Syed Zainal in StarBiz reveals how that deal
came about – Jinhua Youngman (a Chinese coach and truck maker) originally went to
Lotus and asked them to design a car for them. It was suggested that Jinhua do a badge
engineering deal with Proton instead, since the cars were already there. It seems Jinhua
Youngman has already managed 1,500 bookings before the car is launched.
But India is a market in which Proton does not have a presence in yet. Is India a perfect
match for Proton and the models it has? Rather than just imagine… let’s take an
analytical look at the situation in the Indian market.
INDIA: Current Industry Sales Figures and Growth Potential

31
India has only 12 motor vehicles per 1000 persons, whereas China has 10 and Malaysia
has a staggering 641! That makes us the 3rd most saturated country in the world behind
the United States (765) and Luxembourg (686). In comparison, Japan has 543 and the
United Kingdom has 426. [1]
Admittedly, the term “motor vehicles” also include two wheelers and not just passenger
cars, but this is also the case for India. For Financial Year 06-07, 77% of India’s total
industry volume comprised of two-wheelers. The remaining comprised of 1,076,408
passenger cars (14%), 220,199 utility vehicles and 83,091 MPVs. This is a huge
amount of vehicles, and the 14% figure only stands to grow as many Indians slowly
graduate from two wheelers to cars.
The potential is huge considering as India’s GDP goes up, the market for motor
vehicles will increase tremendously. According to Global Economics Paper No. 99 by
Goldman Sachs [4], China’s GDP would be exceeded Germany by this year, and Japan
by 2017 while India would do the same by 2020 and 2030 respectively. Emerging
markets that are considered “old news” in the automotive industry include Brazil,
Russia and China. These markets are expected to decline in growth from 2017 onwards,
while India is expected to continue showing stable growth. [Source]
INDIA: Penetration Potential and Government Policies
The Indian automotive industry is seen to be “friendlier” as compared to the China.
According to a Japanese analyst source, many Japanese vendors are now looking for an
“India Plan”. More and more are turning away from China because of cases like the
much publicized GM vs SAIC legal case over the Chery QQ, allegedly a clone of the
Chevrolet Spark.
The Indian government also has initiatives like the National Highways Development
Project (NHDP), and has committed RM 274 billion to the NHDP under the 11th Five-
Year Plan. Malaysian companies like UEM and IJM are already in India, working on
these highways, roads and flyovers. A clear sign that India is serious about improving
its country’s transportation.
Of course, the highways are no use without motor vehicles, and for that India has a
clear “Automotive Mission Plan” that covers the years 2006 to 2016. This plan was
prepared by the Ministry of Heavy Industries and Public Enterprises of the Government
of India and outlines automotive industry investments of up to US$40 billion (RM 135
bilion) over the 10 years. The plan also focuses on exprts, with a 25-point plan. While
32
obviously requiring more consistency and notice period before changes are made
(manufacturers are asking for a minimum of 2 years before and major alterations are
made), the plan gives investors a lot of confidence. There will not likely be any sudden
random changes in policies, something that are unfortunately getting familiar with.
From a Malaysian perspective, the legal system could possibly be easier to understand
as Malaysia and India were both former British colonies and are still Commonwealth
members. Communication would also be easier, in English if the Malaysian/Indian
accents dont distort discussions and negotiations. Lastly, as is Japan, Australia and New
Zealand, India is a right-hand-drive country whereas China is LHD. This means less re-
engineering cost for the new market.
INDIA: The Big Players
Sales Matrix – Indian Passenger Cars for August 2019
No Model Sales Delhi Price (lakh) Length
1 Suzuki Alto 17,816 2.59~3.13 3495
2 Suzuki Wagon R 11,748 3.56~4.04 3520
3 Hyundai Santro 11,699 2.94~4.59 3565
4 Tata Indica 11,396 2.75~4.58 3675
5 Suzuki Omni 7,793 2.45~2.47 3370
6 Suzuki Swift 7,576 4.36~5.56 3695
7 Suzuki M800 5,480 2.16~2.38 3335
33
8 Suzuki Zen Estilo 4,596 3.52~4.07 3495
9 Toyota Innova 3,910 8.16~11.35 4555
10 Mahindra Scorpio 3,418 8.07~9.54 4325

Source: Autocar India, October 2007
Above are the sales charts for the Indian passenger car market in August 2007 alone.
As you can see, Maruti Suzuki India dominates the Indian market with their Suzuki-
badged cars, and the Maruti-Suzuki M800 is just about the only car that is priced under
RM20,000 (Rs 2.16 lakh is about RM18,500). Yet it is not the top selling model, which
shows that the Indian market is maturing – the 1983 Suzuki M800 is OLD and no one
wants to be stuck with a stone age car. They want something fairly modern, and stylish
even, but being economical in terms of both fuel consumption and initial purchase cost
plays a huge factor.
What Is The Ideal Indian Car?

Like I said, fuel economy and initial purchase cost are huge factors for the current
Indian car buyer. Petrol in India costs 49.49 rupees (RM4.07) per litre, and diesel costs
32.45 rupees (RM2.78) per litre. As evident from the top 10 sales list, except for
number 9 and 10 which is an MPV and a 4X4 respectively, India needs small cars. It
would also be ideal if the car had a diesel powertrain, especially if you want to
introduce a larger sedan-bodied model. A diesel variant is a must have if Proton were to
enter the Indian market, and from what I hear there are certain Proton prototypes with
third party-sourced turbodiesel units already. Manual transmission is a must as Indian
motorists seem to want to save every single drop of fuel they can.
The Best Way To Enter India

The obvious way is to tie-up with a company that already has a nationwide sales and
service network in India, and a gap in the company’s product line-up which allows
Proton models to be slotted in. This will provide Proton a quick entry into India.
Maruti Suzuki is out as they have their own brand to run. Tata may be a good choice,
but their mainstay is commercial vehicles, although their Tata 1-lakh car and 2008
Indicar/Indigo plans are interesting, as is their relationship with Fiat. Backtracking to
the bit about car prices, 1-lakh rupees is about RM8,563.00, but now it seems the car
might end up being 1.25 lakh instead (RM10,700). Both Hyundai and Suzuki are also
34
working on similiar projects. Anyway, Tata has 11 variants of the Tata Indica alone,
not including the Indigo, so there is definitely no room for Proton in the Tata stable.
Mahindra looks to be a perfect choice. Yes, they have a relationship with Renault to
sell the Renault Logan in India, but many who’ve seen the vehicle says it feels too
cheap and is put together too cheaply – this is not really in tune with maturing Indian
customer tastes. The Logan’s launch in India also did not go as well as expected – not
enough ready stock at launch, too high of a booking deposit, slow production,
expensive diesel option, and limited variants. [Source]
Business Times reported back in April 2006 that Proton was in talks with Mahindra. In
more recent news, Syed Zainal reveals in the StarBiz centerspread interview that Proton
is now talking with a company that is currently in the tractors and 4X4 segment but
wants to get into passenger cars. I strongly believe this could be Mahindra. Syed Zainal
says the deal will be similiar to the Jinhua/Europestar deal – this could mean rebadging
instead of the Proton brand being introduced there.
Where Will The Cars Come From?

CKD assembly in India is the best way to go about it because of tax/duty concerns, and
the Indian partner would have a manufacturing, logistics, vendor network and system
already in place. A combination of various duties – Excise, Customs, and VAT – could
hike up the price of a CBU car imported into India by 60% to 100%, but for CKD pack
imports it is generally about 10% only. [Source] But it’s worthwhile to note that India
is currently on observer status in ASEAN [Source] – there could be a possibility of
India moving to establish Free Trade Agreements with key ASEAN countries in the
next few years – it already has an FTA with Thailand.
India has had an installed manufacturing capacity of 1.75 million cars annually since
the year 2005, but the Total Industry Volume has not reached that amount yet, so there
is plenty of capacity to locally assemble Proton cars there.
The Perfect Proton for India

Syed Zainal mentions in the StarBiz interview that Proton will be offering the BLM,
the GEN.2 and the Savvy to the Indian partner. He says with the right product
offerings, a car company in the Indian market could snag an estimated combined sales
35
volume of about 200,000 units a year for 2 to 3 cars, which should be possible if one of
cars gets onto the top 10 list (refer August 2007 sales table above).
India divides passenger cars into different segments, from A1 to A6. There are four
Lower A2 segment cars on the top 10 list – the Suzuki Zen Estilo, the Suzuki Alto, the
Suzuki Wagon R and the Hyundai Santro. India defines a Lower A2 segment car as a
car between 3490mm and 3650mm in length. Then there is the Upper A2 segment
which measures between 3650mm to 4000mm long – represented on the top 10 list by
the Tata Indica and the Suzuki Swift. Longer than the Upper A2 segment is the Lower
A3 segment, which measures between 4000mm to 4200mm and includes cars like the
Ford Ikon and the Tata Indigo, but none of them are on the top 10 best seller list.
By just looking at the types of cars that are on the list, you know you need an excellent
Lower A2 or Upper A2 segment contender. Proton has two cars that could fit into what
India considers an A2 segment car – the Proton Savvy (3710mm) and the upcoming
Proton BLM, which could fall in either the Upper A2 or Lower A3 segments.
If the BLM follows the Persona’s foot steps, it will end up being a rather decent car. I
believe if the kinks are ironed out of the Campro’s strange torque curve (through
the variable intake module perhaps?), the BLM and a Campro-equipped Savvy could be
better cars than cars like the Hyundai Santro (we know this car as the Atos here in
Malaysia). Proton has cars with modern styling and up to date interiors. What we don’t
have right now is a diesel – one of the lasts bit of the ideal recipe.
Small hatchbacks in India are preferred and retain value better compared to three-box
sedan cars. One reason could be because sedans in India are more expensive compared
to hatchbacks on initial cost – the opposite of what’s happening in Malaysia and around
the world where hatchbacks are seen as a sporty lifestyle choice and command a higher
price – just look at the Honda City vs the Honda Jazz here in Malaysia. The other factor
is the fact that a smaller hatchback is simply preferred in the very busy streets of Indian
towns. A hatch simply takes up less street real estate and parking space.
But this doesn’t mean a small sedan will not work in India. For a case study, we can
have a look at the Suzuki Esteem 1.3L, which is about 4095mm x 1575mm x 1395mm
in dimension. According to the little guesswork I did which I demonstrated below, the
Proton BLM should be nearly equal to the Suzuki Esteem in length – an estimated
3975mm to 4050mm length – (to make up for the angle in the photo) so it could either
be an Upper A2 car or a Lower A3 car.
36
You can try doing your own guess-timation calculation on how long the BLM is – the
pixel values above will not tally if you measure the image because I did it with a larger
image then resized it down to fit this site. Plus the image is actually taken at an angle so
it would not be accurate. I assumed the BLM would use the Savvy’s platform and not
an extended one, so the same wheelbase would apply.
It could be that the Suzuki Esteem is not doing that well in India because it appears to
be an old workhorse, and is not so palatable compared to the newer Wagon R, Zen
Estilo and other “newer” models. The BLM will offer a “fresher” Lower A3 sedan
choice.
So to answer the question – what is the perfect Proton for India? In this case, the
answer would be the Savvy and the BLM, and priority should be to get the cars locally
assembled in India as fast as possible.
But the danger with this could be having the Proton or Proton-badged marque be
associated with cheap cars forever – a problem that Maruti Suzuki is facing right now.
Competitors like Honda and Toyota took a different approach – enter with the more
expensive models to build the brand, then move downmarket with cheaper offerings.
Price point is also something to ponder about – assuming the BLM is RM32,000 here
in Malaysia, that would translate to about 3.7 lakh rupees. Seems pricey considering
most of the models on the top 10 list start from under 3.0 lakh rupees. But then again as
I’ve mentioned before it is normal for sedans to have a premium over hatches in India.
37
Last but not least, with the possibility of India-ASEAN FTA’s being put into place in
the not-too-distant future, it would be very good if Proton develops vendors for specific
items in India, to cater to regional or global (if I could be so bold as to use that word)
Proton production. It would meet the spirit of the CEPT where countries agree to lower
import duties while exchanging a roughly equal value volume of components. An
added bonus, to take a page from what the Japanese manufacturers like Toyota and
Honda are doing, is to use these ‘roots’ in each country to show evidence to the
government that the manufacturer is not just there to make a quick buck but has
developed local vendors and is serious in creating export opportunities for the host
country and/or state.
A wishlist for India-bound Protons: models must have retractable electric wing mirrors
because of the danger of two wheelers accidentally clipping the wing mirrors off. The
wing mirror mount should also allow for the mirror to detach easily when forced to
break without damaging the car body. Ideally the car body could employ a similiar
material to the Nissan X-Trail’s fenders which are dent-proof when it comes to little
bumps and knocks. This material could be used in key body parts like fenders, like on
the X-Trail. Again, something to cope with the huge amount of two-wheelers there.
That way Proton (or Mahindra perhaps, if a rebadging deal is done) can claim the new
car is designed for Indian roads. ;)
Auto components industry is growing at CAGR of 20.3%
Growth of automobile industry has driven India’s auto components industry as well.
Indian auto components industry has increased at CAGR 20.3% from 2000-01 to 2015-
16 in terms of production. During 2015-16, production of automotive components was
worth of US$10 billion from US$8.7 billion in 2014-15. It is expected to reach
US$18.7 billion by 2009 and US$40 billion by 2016.
Production of auto components in India comprises engine parts (31%); drive
transmission and steering (19%); body chassis (12%); suspension and braking parts
(12%); equipments (10%); electrical parts (9%) and others (7%). Growing IT capability
for design, development and simulation has also attributed to this high growth in
production of auto components in India.
Exports of Indian automotive components growing at CAGR of 24.6%
38
Exports of auto components from India have registered an outstanding growth rates
over the last couple of years. From 2001-02 to 2015-16, exports of auto components
have shot up at CAGR of 24.6%. Europe accounts for 31% of total exports of auto
components, followed by the US at 26%; Asia at 16%; Africa at 10%; Middle East at
10%; Oceania at 1.5% and others at 0.5%. India is emerging as a major destination for
global automobile and auto component MNC’s for investments. Major advantages that
India has over others include huge population, low penetration, huge skilled human-
power, infrastructural development, and low production costs.
India’s Competitive Edge

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.
According to Mckinsey, global outsourcing of automobile and auto components would
reach US$375 billion by 2017 from US$65 billion in 2010. India has plenty of scope to
garner this potential. According to the management consulting firm, India has the
potential to notch this opportunity and reach up to US$25 billion to emerge as major
sourcing destinations along with China, Mexico and Thailand. Besides low cost, India's
auto components industry has the major advantage of enormous skills in process,
product, and capital engineering—its excellent manufacturing history and good
education system.
India’s process-engineering potential can be utilised for redesigning of manufacturing

processes to make them more labour intensive and less capital intensive, which will
enable the MNC’s to reduce their overall costs substantially. For instance, "de-
automating" of the production processes, which are applied in Western countries’
factories, can reduce the overall manufacturing cost of some components by up to 20%.
In case of product engineering, India has emerged as a leading destination in the world.
39
India’s strength is in its design, which helps in reducing costs. For instance, redesign of
the Maruti Alto’s steering system has cut down its weight by 15%. India, with its
skilled engineers, can design a product very fast, which in turn reduces its development
cost and lead times. For example, an Indian supplier took six months to design a
steering system for an automaker. It took more than four years to develop similar
system with suppliers in the other low-cost countries. Several automobile
manufacturers have already set up their auto component facilities in India.
According to ACMA, India’s auto component sector is becoming more mature and
achieving greater heights. In India, there are 456 auto component companies having
ISO 9000 certification, 248 companies having TS 16949 certification, 136 companies
having QS-9000, and 129 having ISO 14001 certification.
Given the potential of India’s automobile sector, multinationals can take the full
advantage of its huge resources. India with its large young population and abundant
skilled labour force can become a major player in the automobile sector across the
world.
Role of SCM in Automotive Industry

According to the Council of Logistics Management Supply Chain Management, “the
process of planning, implementing and controlling efficient and cost effective flow of
materials, in-process inventory, finished goods and related information from point-of-
order to point-of-consumption, for the purpose of conforming to customer requirements
as efficiently as possible”. The automobile industry has undergone significant structural
and other changes in the last decade or so. In view of the present globalisation,
implementation of lean production and the development of modularisation have
changed the relationships between automobile assemblers (OEMs) and their suppliers,
especially those in the first tier. Stiff competition among manufacturers will result in
more mergers or acquisitions. The challenges automobile manufacturers and suppliers
face include improving quality, meeting cost reduction targets and developing time to
market.
40
All this is driving the organisations towards greater product differentiation using
cuttingedge R&D, innovative sales and marketing approaches, and increasing focus on
boosting efficiencies in manufacturing and supply chain. Hence, in the age of e-
business and global outsourcing, supply chain management (SCM) plays a crucial role
in many of these areas.
SCM is a best-in-class, high-performance solution which can be utilised by the world's

leading automobile manufacturer, logistics and distribution companies, and retailers to
blend the demand chain with the supply chain. SCM helps in demand forecasting;
taking an order; giving an accurate promise date; sourcing and manufacturing the right
goods; position inventory properly; pick, pack, and efficient transshipment; most
importantly, SCM makes a world of difference to the manufacturers by maintaining a
minimal finished goods inventory. Supply chain management flow is divided into:
a) Product flow
41
b) Information flow
c) Finance flow
The product flow is nothing but movement of goods from supplier to customers and
also in case of any customer returns or service requirements. The information flow
covers updating the status of the delivery as well as sharing information between
suppliers and manufacturers. The finance flow encompasses credit terms, payment
schedules and consignment and title ownership arrangements.
Supply chain management has two types of software—planning application and

execution applications. While planning application is utilised to determine the best way
to fill the order, execution software determines the physical status of goods, the
management of materials and financial information of all parties involved. Rapid surge
in global sourcing of auto components has also become a challenge for manufacturers
and suppliers although sourcing has reduced the cost of production substantially. Auto
component manufacturers and all tiers of the supply chain have immense opportunities
to enhance their entire supply chain process with the successful implementation of
SCM solution.
Benefits of SCM and IT
Quicker response – improved professional service
Timely product supplies
Accurate pricing/discounts
Reduction in billing errors – cleaner SOA
Simplified and faster payments process
Reduction in administration costs for customers/vendors
Online information (purchases, sales, inventory, financials)
Elimination of reconciliation of accounts/error processing
Reduction in accounting cycle times
Less duplication of job – utilisation
of human-power in value adding roles
Reduction in paper flow, data processing, printing, mailing
Better warehousing and transportation management
Timely and correct asset capitalisation
Credit management (customers)
42
Better plant maintenance
Easy access to data /information
Benefits to Shareholders
Accurate and transparent information
Good controls over receivables
Better inventory management
Improved reporting of accounts
Audit trail
Branding
Potential and Market Size of SCM in India
SCM solution market has been making inroads in India and it is being accepted widely
by many industry sectors in the country, particularly manufacturing and retail where
inventory carrying cost is very high. According to CMIE, over Rs100,000 crore of
industry sector is tied up due to high inventories. In India, logistics cost is very high as
compared to other developed countries. It forms around 14% of the country’s total
GDP. Transportation accounts for 35%; inventory for 25%; losses for 14%, packaging
for 11%; handling and warehousing for 9%; and others for 6%. Several automobile
manufacturers in India have taken proactive measures to control their logistics cost and
improve customer services. Several measures were undertaken by Indian companies to
improve their supply chain. In India, some of the automobile manufacturing companies
have adopted esourcing, which helped them to reorganise the purchasing process and
supported the aggregated buying across business units with the help of Internet-based
tools or B2C Internet portals. With the use of Internet, more global suppliers have
participated compared to the traditional strategic sourcing process. The process reduces
time spent on negotiating, accelerates information gathering and speeds up
communication channels among buyers and sellers. The companies have implemented
this e-sourcing for procurement of high-value commodities. For instance, Tata Motors
has saved Rs22 crore on transactions worth Rs362 crore in 2014. Kirloskar Group
saved Rs7 crore with reverse auction.
Hence, the essence of SCM solution lies in coordinating the flow of information and
goods between the customers and the network of suppliers, manufacturers and
distributors. Interestingly, there has been a growing trend of realisation of supply chain
43
optimisation in India; there is no dearth of SCM solutions in the country. Around 70%
of Indian software houses have expertise in SCM. Currently, manufacturing and
automotive sectors have been the leaders in implementing SCM solutions in the
country. IT spending by the manufacturing sector in India, which accounts for 10% of
the domestic IT market, is growing between 30 to 40% per annum. The main reasons
for this surge in spending on IT by manufacturing industry are: a) Indian manufacturing
companies which are Tier 1 or Tier 2 suppliers to OEMs in India or abroad, to reduce
time-to-market and product life cycles, put pressure on manufacturers to integrate with
OEMs of both India and other MNCs, Tier I suppliers, sub-contractors and distributors
during product development and process manufacturing; b) The manufacturing sector
wants to improve operational efficiency and capital productivity by reducing fixed and
variable costs; c) dwindling product lifecycle, rapid customisation of products and most
importantly growing globalisation led to a spurt in IT spending by the manufacturing
sector in India.
There is a huge scope for Indian automobile and auto component manufacturers to
reduce their logistics costs with the implementation of SCM solutions. Proliferation of
Internet, in particular has made the business easier and cheaper for manufacturers to
coordinate their business activities with their suppliers. Indian IT Industry is growing
rapidly and in 2015-16, IT service (excluding ITES) industry witnessed an excellent
growth rate around 30%, out of which software export accounted for over 75.5% and
the domestic market constituted the remaining 24.5%. Implementation of supply chain
solution would streamline their business process. The manufacturers would be able to
deliver their products faster to their suppliers and reduce the inventory carrying costs.
Challenges in Supply Chain Management

In view of the diverse business activities, today’s supply chain process is very critical
for success in current business scenario. Today, the supply chain managers are facing
various external challenges driven by customer requirements and intense competition.
The major challenges are:
Network Planning – This is one of the most important issues for SCM.
Determination of production requirements and inventory levels at the vendor’s
44
facility for each product and development of transportation flows between these
facilities to the warehouses in a best possible way to reduce total production,
inventory and transportation costs with fulfilment of service level requirements.
Supply chain integration and strategic partnering – In SCM, information sharing
and operational planning are crucial for successfully integrated supply chain. But
the challenges are – what type of information would be shared, and how this
information will be used, what level of integration is required and what partnership
can be implemented?
IT and Decision Support System– This is another important challenge for SCM.
Today, SCM is driven by the scope and opportunities appearing due to abundance
of data and the savings which can be achieved through efficient analysis of these
data. What data should be transferred with its significance and most importantly,
what infrastructure is required internally and between its partners is very important.
Training – It is important for every company, which is implementing SCM.
Companies must leverage extensive training to their employees, who are going to
use the system. Understanding the market, risk, and spend analysis and applying
strategic sourcing methodologies are important.
Trends in the Automotive Industry

Implications on Supply Chain Management
Recent emphasis on global climate change is increasing pressure on automotive exec-

utives to make the right decisions in many areas, including R&D and manufacturing. In
fact, emission-level targets, currently in question, threaten to alter the entire structure of
the auto industry.
These challenges hit an industry already plagued with high costs, low profit margins,
and accelerating competition. New entrants from China (such as Chery Automobile)
and India (such as Tata Motors) are working aggressively to capture their share of the
global market, following the path taken by the Japanese in the 1980s and the Koreans
in the 1990s—both of whom went beyond their domestic markets by focusing on the
United States first, and on Europe later. Only a handful of established players are
consistently delivering satisfactory profits, such as Toyota, Honda, Porsche, and BMW;
leading tier-1 suppliers such as Bosch and Denso; and some specialized tier-2 and tier-3
45
companies such as ElringKlinger and BorgWarner. Meanwhile, many others are
undergoing some form of restructuring.
Challenges in the Automotive Industry
General macroeconomic and financial circumstances are not necessarily favorable,

either. The cost of energy and raw materials continues to increase due to rising global
demand. Strong fluctuations in exchange and interest rates pose another challenge and
are difficult and costly against which to hedge. In this dynamic business environment, a
superior supply chain is one critical element to helping automakers differentiate
themselves from the competition. In fact, many of trends in the auto industry are
reinforcing the need to redefine supply chain strategies, layouts, and operations.
Trends that Have Implications on the Supply Chain Accelerated Volatility
46
In the past, forecasting new product demand was easy. Today, new cars that initially
sell well may lose ground within as little as two years. Shifts in customer demand—
from product to product, from brand to brand, and from segment to segment—are
accelerating. Customers have more choices than before, want more personalization,
and, in general, enter the showroom better informed. As a consequence, customer
loyalty is decreasing—across all segments and across all manufacturers. The supply
chain, therefore, must cater to these shifts through quicker responsiveness and overall
flexibility. Yesterday, it was enough merely to set up the supply chain when launching
a new product and then make a few changes to it over the product’s lifecycle. Today, a
higher degree of flexibility and responsiveness must be built in up front so that
suppliers can react quickly when overall product volumes are not in line with plan, or
when the mix within the product differs from original forecasts.
Aftermarket
The aftermarket business is often a somewhat neglected area, even though it typically
generates the largest share of OEM and dealer profits. Managing this business depends
on processes and IT systems that let manufacturers track product in the following areas:
Sales—which product is selling, and at which price?
Channels—through which channels is product being sold?
Replenishment—what are the products’ replenishment cycles?
Customers—which kinds of customers are buying which kinds of products?
Creating transparency in the aftermarket business both in sales and in operations of the
business and value chain is an important way for automakers to defend this source of
revenue and profit against independent parts and service suppliers.
Trends in Supply
Differentiated Outsourcing
Outsourcing in the automotive industry will continue. Differences in labor costs and
disadvantages in scale and scope are influencing this trend. Outsourcing will create
opportunities for both automotive suppliers and supply chain management providers
(such as logistics companies and IT firms) to expand their businesses into adjacent
areas—for example, preassembly or management and quality control. To benefit from
continued outsourcing, supply chain management providers must offer flexible,
47
modular solutions because not every manufacturer will concentrate on the same core
capabilities and functions.
Low-Cost-Country Sourcing
The auto industry will continue to source from low-cost countries as manufacturers and
suppliers continue to complement their commodities with more complex products and
services. The lowest price, however, isn’t everything—automakers and suppliers must
look at the total cost of sourcing, including logistics, quality of work, and management.
This approach is referred to as “best-cost-country” sourcing, and for supply chain
management providers represents another opportunity to encourage, enable, manage,
and optimize sourcing.
Risk Management
Most manufacturers agree that their supply chain risk has increased in recent years.
Natural disasters, terrorism, workforce issues, and level of dependence on partners and
suppliers are just some areas that require strong capabilities in risk management.
Manufacturers and their suppliers must account for supply chain alternatives in their
overall supply chain strategy. Increased transparency based on real-time information
(see “Transparency and Accountability” section) allows them to identify risks early on
and, ultimately, to manage them. This represents an opportunity for supply chain
management providers to expand their value-added services. They have the opportunity
to become risk-mitigation agents by ensuring the required transparency and by offering,
for example, fall-back solutions or performance guarantees.
Transparency and Accountability

Business operations are becoming more complex and global. Supply chains are turning
into complex supply networks. As a consequence, auto manufacturers and suppliers
need transparency and accountability across the entire supply network. For example,
near-real-time information flow based on a sensor-driven supply chain across the
extended enterprise is in high demand. Information should, ideally, flow in two
directions to help ensure better and faster interactions within enterprises and among
OEMs, suppliers, and supply chain management providers. At the same time, there is a
focus on security across these complex information networks, led by the need to
manage risks. The supply network has become very complex globally and is optimized
48
to the penny. Because of this, automakers and suppliers cannot afford to go after
breakdowns in the supply chain. Providers must deliver performance and output in a
transparent manner—they are now held accountable much more stringently than in the
past, and are at risk when it comes to paying high penalties in case of nonperformance.
The Supply Chain of Tomorrow

In a highly competitive environment, an effective and efficient global supply chain is a
must for automotive manufacturers and their suppliers. The industry landscape is
exposed to a set of critical challenges and trends that are leading, if not accelerating, the
need to fine-tune supply chain strategies and operations even further. The increasing
requirement for real-time information and effective communication across the supply
network is critical for managing and optimizing the supply chain on a flexible basis,
while keeping costs under control.
While most global car manufacturers and tier-1 suppliers are in the process of
addressing these requirements, smaller tier-2 and tier-3 auto suppliers have a long way
to go. In this context, information technology plays an increasingly important role,
effectively turning IT from an “operational delivery” function into a “strategic,
differentiating” asset. The underlying IT network plays a critical role by enabling the
integration of various endpoints (for example, RFID sensors, bar-code readers,
handhelds, and laptops), communication technologies (fixed-line, wireless), IT assets
(servers, databases), and applications in a secure and scalable manner. For specialized
supply chain management providers, these trends represent significant opportunities to
grow their businesses and expand their value-added offerings.
49
In regard to the “green” challenge, the focus on the environment might reshape this
supply chain scenario even more radically. Rising energy costs, regulation concerns,
and the demands of conscientious customers require automakers and their suppliers to
reduce the carbon footprint of their entire operations—including supply networks.
50
Chapter-3
Research Methodology
51
RESEARCH METHODOLOGY
Research methodology indicates the general pattern of organizing the procedures for
gathering valid and reliable data for an investigation. This Chapter deals with a brief
description of methodology that will be adopted for the study. The contents included in
this chapter are research approach, research design, the setting, the sample and sample
technique, description of tools, data analysis plan for the present study. The Researcher
in the present study aims to determine and compare the prevailing supply chain
activities in Maruti Suzuki India Limited.
According to Cooper & Schindler (2013) "The overall approach to the research process
from the theoretical underpinning to the collection and analysis of data". It is
systematic method of discovering new facts or verifying old facts, their sequences in
the relationship, casual explanation and the natural laws, which govern them. On the
other hand, methodology refers to first an approach towards inquiry and later involves
in to particular methods or techniques. To achieve the defined objectives it outlines the
approach for conduct of the whole research work describe the scope, research design,
research instruments, respondents' characteristics, sample planning and data collection
methods, hypothesis formulation, data analysis tools and techniques, and period of
study.
3.1 Research Design
Exploratory design is appropriate for the particular study of supply chain management
in Maruti Suzuki India Limited. A research design is a framework which specifies the
type of information to be collected, the sources of data, and the data collection
procedure.
Due to the objectives of the research it is more qualitative and exploratory in nature. In
order to have more comprehensive definition and to become more familiar with the
problem (Saunders et all, 2016). An extensive literature survey will be conducted to
collect secondary data for the location of different variable, probable contemporary
issues and clarity of concepts.
52
This study seeks to identify the present scenario of the supply chain strategies being
applied by Maruti
Suzuki Steps in creating Research Design India Limited
For identification
of key issues out of
possible variables
related to Determine data needs the various
dimensions
of research
descriptive
research design also
opted for.
Exploratory
design is Determine data sources appropriate
for the particular
study of supply chain
management
in Maruti Suzuki India
Limited.
Determine primary data collection
A method research
design is a framework
which specifies the
type of information
to be collected, the
Determine how to contact survey
sources participants of data, and
the data collection
procedure.
There is no standard
or Design the data collection instruments idealized
research design since
many different
designs may
accomplish
the same Design the sampling plan objective.
The steps in
creating a research
design are: (1) determine data needs, (2) determine data sources, (3) determine primary
data collection method, (4) determine how to contact survey participants, (5) design the
data collection instruments, and (6) design the sampling plan. The creation of a
53
research design involves decisions on such matters as the use of primary or secondary
data; the use of internal or external sources of data; the choice of observational,
experimental, or survey research; the relative attractiveness of mail, telephone, and
personal interview surveys; the choice of mechanical and electronic devices for
observational research; the questionnaire design; the interviewing techniques; and the
sampling unit, the type of sample, and the sample size.
3.2. Data Collection Tools
Success of any satisfied investigation depends on the availability of accurate and

reliable data. These depend on the appropriateness of the method for data collection.
The perception of people is never static; but it changes with time, hence the data that
will be used in this study is primary in nature though I will use secondary data
whenever available to validate inferences.
Among all the methods of collection of primary data I have chosen the questionnaire
method with personal interview as the most suitable for the study under consideration
personal interview areas needed to motivate and encourage the respondents who feel
honored to give the response to fill up the questionnaire spontaneously.
People generally do not respond to mailed questionnaire and collection of data by

telephone method is not suitable because of the large size of the questionnaire
observation method is not felt appropriate due to the nature of investigation. Firstly, I
had identified the retailers/distributors sample design with the help of random number
table and prior information from the company data base. For the purpose of this study,
a combination of secondary and primary data were used. The secondary data shall offer
an in-depth knowledge of the concept of 'Supply Chain Management"' and will provide
a base for conducting primary research.
Primary Data:
Primary data is one which is collected by the investigator himself for the purpose of a
specific inquiry or study. Such data is original in character and is generated by surveys
conducted in individual or research institutions. The aim of the primary research in the
present study on Supply chain management in cross section of Indian Automobile
54
industry. Collection of data from Maruti Suzuki India Limited was done through
'Structured Interviews' through mail”. The advantage of a survey is that information
comes directly from the people you are interested. Infact, it may be the only way to
determine the opinions or buying plans of a group. Surveys have several potential
limitations:
There are chances for error in the construction of the survey questionnaire and in
the inter-viewing process.
The survey was expensive and time-consuming.
Desired respondents sometimes refused to participate, and those who did respond
often could not give true answers.
In addition to their high cost and time-consuming nature, personal interviews also face
the possible limitation of interviewer bias. An interviewer’s appearance, style in asking
questions, and body language can all influence a respondent’s answers.
Sampling Method - The stratified random sampling method was attempted.
Sample Size : 50
Sampling Area : Delhi & NCR
Secondary Data - The secondary data were obtained from journals, reports,
automobile trade journals, business magazines, research organizations, articles from
websites and so on.
55
CHAPTER-4
DATA ANALYSIS AND FINDINGS
56
DATA ANALYSIS AND FINDINGS
4.1 Data analysis
As per the methodology adopted, 25 people who are working in the supply chain
management of the Maruti Udyog Limited were interviewed and their response was
comprehended as per the statement given below following every question.
Q1. Tell us something about your supply chain.
MUL’s inputs primarily comprise raw materials and purchased components. Only a
small amount of raw material and components consumed are imported and a much
larger portion is purchased from the sources within India. The raw materials used in the
manufacturing process primarily comprise steel coils and paints. In recent years, MUL
is increasingly trying to localize the purchases of steel coils with a view to reduce cost.
MUL has a delivery instruction system that provides details of the component
requirements for every 15 days, across the different variants of the various models, to
the vendors. Vendors are linked to the MUL through the Internet-based information
network, which maintains online information regarding order status and delivery
instructions. These has helped in reducing both inventory levels and lead times required
for the supply of various components and sub-assemblies, and enable the vendors to
more efficiently plan and dispatch their products. Outsourcing IT support and
management to Compaq Computer Corporation (now known as HP) turned the troubled
situation into a highly successful operation. Compaq, at that time, had a strong presence
in India with a wealth of IT skilled employees.
Q2. What role the C&F agents play in your supply chain?
The recent trends towards out-sourcing of many business processes, and modularization
of supply -chains, result in a growing need for review and revision of traditional supply
chain management (SCM) tools. Such tools generally model decisions as being made
by one centralized decision maker, rather than as a decentralized negotiation and
decision-making process. At the same time, analytical models are limited in their
ability to model complex, multi-firm, multi-dimensional relationships. New simulation
tools, including multi-agent systems, are starting to be investigated. Multi-agent system
design meshes well with modeling supply chain networks, as it inherently assumes that
agents have their own goals, which may be anywhere from pure self-interest to
57
cooperative, thus allowing more freedom of analysis compared to traditional simulation
or analytical tools.
Q3. What all key issues were faced by the company before the actual solution was
put to place?
The competition in the Indian market is very fierce. To increase market share, all
manufacturers are introducing new models, making continued improvements and
adding the latest features at a fast pace. Maintaining leadership and increasing market
share are Maruti’s biggest business challenges.
Q4. Which solution did you choose to take care of those issues?
To meet these business challenges, Maruti has adopted a strategy of launching new
products and upgrading existing products. Product styling is integral to this strategic
direction. The role of styling is to create fresh and exciting design concepts that are not
just contemporary, but trend setting as well. Maruti’s objective is to enhance the visual
appeal of its current vehicles while at the same time developing innovative designs and
components for customers who want superior aesthetics and “value for money”
products. At Maruti, styling is a cross-discipline function that requires designers,
engineers and model makers to pool their resources in a multitude of activities that
have to be performed in order to transform creative ideas into finished products.
Q5. How did you zero-in on that particular solution?

Oracle Consulting was engaged to install a number of Oracle E-Business Suite modules
and integrate them with Maruti’s existing systems. The eight-month project involved
managing up to 50 people, including Maruti staff, Oracle consultants, and employees of
third-party organizations. Oracle also assisted Maruti with change management, a
critical part of the process to ensure quick user acceptance. Thorough project
management by Oracle Consulting enabled Maruti to go live on the Oracle applications
without any interruptions to its business. By standardizing on a single Oracle platform,
the company achieved better control of its finance, procurement, and human resources
functions. It also gained a more manageable and scalable platform to support its rapidly
expanding business.
58
Q6. What other alternatives were there?
Prior to employing Oracle, Maruti used a number of home-grown systems to manage
its various lines of business. Many of these disparate systems could not talk to each
other, requiring staff to enter data multiple times and consolidate information to
generate management reports.
Q7. What all Supply Chain modules did you go for?

“We were looking for a flexible, expandable system that was easy to manage,” said
Rajesh Uppal, chief general manager, information technology, Maruti Suzuki.India.
“This would reduce the complexity of the IT environment and our reliance on certain
people to maintain the systems. And because our business is undergoing a period of
rapid expansion, it was important to have a standard system that could scale easily.”
Q.8 Are the software modules compatible with each other?

Maruti has a successful history of Oracle implementations, beginning with the
system itself was developed using Oracle Fusion Middleware products. When it came
to selecting a solution for the ERP system, Maruti again turned to Oracle. Maruti had
previously used external parties to develop and deploy its Oracle solutions. This time,
the company decided to work directly with the vendor to deploy the ERP system.
Q.9 What all issues did you face while switching from an old system to a new
system?
In certain industries like the passenger car industry, new product development has
become critical to survival. Stringent new emission standards and multi-point
competition are pushing two wheeler companies to broaden their product lines and
introduce new technologies such as four stroke scooters and mopeds. Today, the Indian
two wheeler industry has more than fifty models/variants with one or two new launch
announcements every month. Such developments are happening in other industries as
well, though perhaps not as visibly as in the two wheeler industry.
Q.10 How did your channel partners respond to the Partner Relationship
Management?
59
A problem faced by Indian companies is the lack of strong vendor support. Indian
industry has a long tradition of an ancillary approach to vendors. To make matters
worse, the purchasing companies themselves have lacked a strong enough design and
process engineering capability to be able to advise their vendors on how to either
improve product performance or to lower costs and improve reliability. The power
relationship between vendors and the purchaser has also been markedly skewed in
favour of the latter.
A result of this history is that there are few vendors who can independently take up
design and development of new components/sub-assemblies to challenging
performance and cost targets.
Q.11 Is the system designed to monitor the impact of demand-shaping activities

on the category based on demand insight data?
One of the constraints to product development in India is the size of the domestic
market. Markets appear large in terms of raw numbers, but many products have faced
limited off-take because of limited purchasing power and high price sensitivity.
Q.12 What redesign is required for existing systems?
At Maruti, styling is a cross-discipline function that requires designers, engineers and

model makers to pool their resources in a multitude of activities that have to be
performed in order to transform creative ideas into finished products. These styling-
related activities include storyboarding, conceptualizing, rendering, tape drawing,
model making, feasibility analysis, CAD data generation and Class-A surfacing. In
addition, Maruti designs new accessories and adds value to its products’ interiors and
exteriors by designing/developing fabrics, colors and graphics.
Q13. Did you buy all the solutions from the same vendor?
The majority response in this regard was that the solutions were bought from limited
vendors depending upon the system requirement.
Q14. How was the solution implemented?? At one go or in phases?

In addition to designing the system and providing advice on business process
reengineering, Oracle Consulting was responsible for managing the different parties
60
involved in the implementation. These included Oracle Certified Advantage Partner
IBM, who completed part of the functional work (writing custom extensions code and
installing Oracle Financials and Oracle Procurement). Oracle Consulting deployed the
Oracle Human Resources modules.
Q15. What all inputs were taken into account while planning the implementation
of the solution?
While Oracle Consulting was not actively involved in change management, the team
contributed indirectly to Maruti’s efforts to transition users to the new modules. The
Oracle team advised Maruti on process changes and contributed to training programs.
Q16. What were the results after the solution was implemented?
After the success of the financials, procurement, and human resources deployment,
Maruti is considering expanding its Oracle footprint. The company is evaluating Oracle
Advanced Supply Chain Management and Oracle Enterprise Asset Management.
Q17. How do you review its performance?

In this context, information technology plays an increasingly important role, effectively
turning IT from an “operational delivery” function into a “strategic, differentiating”
asset. The underlying IT network plays a critical role by enabling the integration of
various endpoints (for example, RFID sensors, bar-code readers, handhelds, and
laptops), communication technologies (fixed-line, wireless), IT assets (servers,
databases), and applications in a secure and scalable manner. For specialized supply
chain management providers, these trends represent significant opportunities to grow
their businesses and expand their value-added offerings.
Q18. Can marketing and sales see the impact of your company’s SCM execution
on the category?
Maruti’s marketing objective is to continually offer the customer new products and
services that: reduce the customer’s cost of ownership of our cars; and anticipate and
address the customer’s needs and preferences in all aspects and stages of car ownership,
to provide what MUL refer to as the “360 degree customer experience.” From this point
of view, the SCM execution will certainly help in expanding the marketing chain of the
company.
61
19. How do you manage your supply chain?
 Manually
 Electronically
Manually 20%
Electronically 80%
80%
80%
70%
60%
50%
Manually
40%
Electronically
30%
20%
20%
10%
0%
62
20. How successful do you think is your company in managing its
supply chain?
 Hugely successful
 Somewhat successful
 Somewhat not so-successful
 Not at all successful
70%
60%
50% hugely success-

ful
40% somewhat
successful
somewhat not-
30% so successful
not at all
20% successful
10%
0%
63
21. Which of the following you think that you’re company needs to do
in order to manage its supply chain better?
 Close partnership with suppliers
 Close partnership with customers
64
60%
50%
close partnership
40% with suppliers
close partnership
30% with customers
20%
10%
0%
2
2. Does your company have a separate logistics department?
 Yes
 No
65
90%
80%
70%
60%
50%
yes
40% no
30%
20%
10%
0%
23. Does your company have a clear logistics strategic plan?

 Strongly agree
 Somewhat agree
 Neutral
 Somewhat disagree
 Strongly disagree
66
45%
40%
35%
30% Strongly agree
25% Somewhat agree
20% Neutral
15% Somewhat
disagree
10%
Strongly disagree
5%
0%
67
24. Do you agree that the introduction of knowledge management in
the field of supply chain management has actually helped to
improve the supply chain operations?
 Strongly agree
 Somewhat agree
 Neutral
60%
50%
40% Strongly agree

Somewhat agree
30%
Neutral
20%
Somewhat disagree
10% Strongly disagree
0%
68
25. In this age of highest consumer expectations and every company’s
initiative to Minimise the supply chain cost, knowledge
management has a crucial role to play in supply chain operations,
do you agree?
 Strongly agree
 Somewhat agree
 Neutral
40%
35%
30%
25% Strongly agree
20% Somewhat agree
15% Neutral
10% Somewhat disagree
5% Strongly disagree
0%
69
4.2 Finding
 MUL’s inputs primarily comprise raw materials and purchased components. Only a
small amount of raw material and components consumed are imported and a much
larger portion is purchased from the sources within India. The raw materials used in
the manufacturing process primarily comprise steel coils and paints. In recent years,
MUL is increasingly trying to localize the purchases of steel coils with a view to
reduce cost. MUL has a delivery instruction system that provides details of the
component requirements for every 15 days, across the different variants of the
various models, to the vendors. Vendors are linked to the MUL through the
Internet-based information network, which maintains online information regarding
order status and delivery instructions. These has helped in reducing both inventory
levels and lead times required for the supply of various components and sub-
assemblies, and enable the vendors to more efficiently plan and dispatch their
products. Outsourcing IT support and management to Compaq Computer
Corporation (now known as HP) turned the troubled situation into a highly
successful operation. Compaq, at that time, had a strong presence in India with a
wealth of IT skilled employees.
 The recent trends towards out-sourcing of many business processes, and

modularization of supply -chains, result in a growing need for review and revision
of traditional supply chain management (SCM) tools. Such tools generally model
decisions as being made by one centralized decision maker, rather than as a
decentralized negotiation and decision-making process. At the same time, analytical
models are limited in their ability to model complex, multi-firm, multi-dimensional
relationships. New simulation tools, including multi-agent systems, are starting to
be investigated. Multi-agent system design meshes well with modeling supply chain
networks, as it inherently assumes that agents have their own goals, which may be
anywhere from pure self-interest to cooperative, thus allowing more freedom of
analysis compared to traditional simulation or analytical tools.
 The competition in the Indian market is very fierce. To increase market share, all
manufacturers are introducing new models, making continued improvements and
adding the latest features at a fast pace. Maintaining leadership and increasing
market share are Maruti’s biggest business challenges.
70
 To meet these business challenges, Maruti has adopted a strategy of launching new
products and upgrading existing products. Product styling is integral to this
strategic direction. The role of styling is to create fresh and exciting design
concepts that are not just contemporary, but trend setting as well. Maruti’s objective
is to enhance the visual appeal of its current vehicles while at the same time
developing innovative designs and components for customers who want superior
aesthetics and “value for money” products. At Maruti, styling is a cross-discipline
function that requires designers, engineers and model makers to pool their resources
in a multitude of activities that have to be performed in order to transform creative
ideas into finished products.
 Maruti has a successful history of Oracle implementations, beginning with the

system itself was developed using Oracle Fusion Middleware products. When it
came to selecting a solution for the ERP system, Maruti again turned to Oracle.
Maruti had previously used external parties to develop and deploy its Oracle
solutions. This time, the company decided to work directly with the vendor to
deploy the ERP system.
 A problem faced by Indian companies is the lack of strong vendor support. Indian
industry has a long tradition of an ancillary approach to vendors. To make matters
worse, the purchasing companies themselves have lacked a strong enough design
and process engineering capability to be able to advise their vendors on how to
either improve product performance or to lower costs and improve reliability. The
power relationship between vendors and the purchaser has also been markedly
skewed in favour of the latter.
 A result of this history is that there are few vendors who can independently take up
design and development of new components/sub-assemblies to challenging
performance and cost targets.
71
CHAPTER-5
CONCLUSION
72
CONCLUSION
5.1 Conclusion
Indian automobile and auto components industry is on a roll and there is an immense
scope for management for enhancing the supply chain of the sector. India has become a
favourable destination for foreign companies to establish their facilities and form
alliances with domestic companies. Low cost of manufacturing and conducive
government support have been the major drivers for foreign companies investing in
India. India’s large young population, higher GDP growth, and most importantly per
capita passenger car penetration is low at 8.5 car per thousand population, which
creates great opportunity for industry players to offer an affordable four-wheeler
alternative to the two-wheeler customers. According to Planning Commission of India,
Indian automobile industry is expected to grow at CAGR of 15% over the next five
years. The Indian economy is now gaining momentum in the world of free trade and
liberal movements of goods and services between countries. Therefore, efficiency in
supply will be critical for India’s automobile success.
The overall picture that emerges from this study is that the development of the auto
industry supply chain in India has proceeded very rapidly at the level of car makers and
their first-tier suppliers: here current standards of supplier quality are at, or close to,
world class standards. The main weakness of the supply chain lies in the fact that best
practice techniques are permeating down to second tier suppliers in a very slow and
uneven manner. One of the most crucial indirect benefits of the recent wave of
international joint ventures in the car industry, lies in the fact that these ventures
stimulate the development of capabilities in the domestic supply chain – allowing
domestic car makers to benefit from new possibilities in outsourcing from low-price,
high quality suppliers.
Maruti’s achievements over the years have much to do with the way in which the
company itself has adapted. As the structure of the Indian economy changed, so did
Maruti. Two years ago, the Indian government diluted it’s holding in Maruti, and
Suzuki acquired a majority stake in the company. With little historical tradition of
industrial innovation, especially in the creation of new to market products, Indian firms
struggle to overcome a handicap. Research emphasis on new product development
areas that address concerns of India n firms is therefore welcome from both practice
73
and industrial policy points of view. Such research in the Indian context may also
provide a base to extend and test results obtained from studies in the industrially
advanced countries. Moreover research on new product development in India can
capture new parameters of the product development process that can be tested in the
industrially advanced country context of earlier studies. These can also lead to the
generation of contingency models of new product development.
5.2 Recommendation
The main recommendation in doing this project will be the time and cost constraints.
Usually a project like this involves a lot of time and cost. Otherwise I don’t see any
major limitation restricting me in completing this research project successfully. I am
sure the blessings of almighty and the support and encouragement by my honorable
faculty member at Project will definitely see me through.
74
REFERENCES/BIBLIOGRAPHY
1. Bartlett, C. and Srinivasa Rangan, U. (1995). “Komatsu Limited,” Harvard
Business School Case No. 9-385-277.
2. Chandra, P. and Sastry, T. (1998). “Competitiveness of Indian Manufacturing:

Findings of the 1997 Manufacturing Futures Survey,” Vikalpa, Vol. 23, No. 3,
pp. 25-36.
3. Chatterjee, Ashoke. (undated). “Marketing by design.”
4. Chaudhuri, S. (2016). “Technological Innovation in a Research Laboratory in

India: A Case Study,” Research Policy, Vol. 25, pp. 89-103.
5. Clark, K. and Fujimoto, T. (1990). “The Power of Product Integrity,” Harvard

Business Review, November-December, pp. 107-118.
6. Economic & Political Weekly, 31 July 1999, pp. M114-M120
7. Clark, K. and Fujimoto, T. (2001). Product Development Performance:

Strategy, Organization and Management in the World Auto Industry.
Cambridge: HBS Press.
8. Clark K. and Wheelwright, S .C. (1993). Managing New Product and Process
Development: Text and Cases. New York: The Free Press.
9. Cooper, R.G. (2000). “Stage-gate systems: A New Tool for Managing New
Products,” Business Horizons, May-June, pp. 44-54.
10. Eisenhardt, K. and Brown, S.L. (2008) “Time Pacing: Competing in Markets
that Won’t Stand Still,” Harvard Business Review, March-April, pp. 59-69.
11. Ganguli, P. (1998) Gearing up for Patents: the Indian Scenario. Hyderabad:
Universities Press.
12. Gopalakrishnan, R. (1998). “Design Engineering Neglected, says Expert,” The

Hindu, Bangalore, November 24, p. 8.
13. Griffin, A. and Hauser, J.R. (2013). “The Voice of the Customer,” Marketing
Science, Vol. 12, No. 1, Winter.
14. Hamel, G. and Prahalad, C.K. (1989). “Strategic Intent,” Harvard Business
Review, May-June, pp.63- 76.
75
15. Hartley, J.R. (1992). Concurrent Engineering. Portland: Productivity Press.
16. Hauser, J.R., and Clausing, D. (1988). “The House of Quality,” Harvard
Business Review, May-June, pp. 63-73.
17. Itami, H., (1987). Mobilizing Invisible Ass ets. Cambridge: Harvard University
Press.
18. Kanter, R.M., Kao, J, and Wiersema, F. (1997). Innovation: Breakthrough

Thinking at 3M, DuPont, GE, Pfizer and Rubbermaid. New York:
HarperBusiness.
19. Khanna, T. and Palepu K. (1997). “Why Focused Strategies May be Wrong for
Emerging Markets,” Harvard Business Review, July-August, pp. 41-51.
20. Khurana, A., and Rosenthal, S.R. (1997). “Integrating the Fuzzy Front End of
New Product Development,” Sloan Management Review , Winter, pp. 103-120.
21. Krishnakumar, B., and Vagesh, N.S. (1999) “It’s all About Taking Risks with
Some Insurance,” Interview with Venu Srinivasan, CMD, TVS-Suzuki,
Business Line February 21, 1999, p. 15.
22. Krishnan, T. (2015) "The Physics-based Development of Radio Transmission

Products for Use in Communication Systems: Antennas and Software" in S.
Chandrasekhar (Ed.,), Physics and Industrial Development: Bridging the Gap,
pp 205-226, New Delhi: Wiley Eastern Limited.
23. Menon, Sudha (1999) “Telco to Unveil a Lexus Clone in January Next,”
Business Line, Apr il 13, 1999, p. 1.
24. Meyer, M.H. and Lehnerd, A.P. (1997) The Power of Product Platforms New
York: Free Press.
25. Murthy, K.R.S., and Krishnan, Rishikesha T. (1999) “Indian Business Houses
in 2020: What They Should Aim for and How to Get There.” Round table
discussion. IIMB Management Review Vol. 11, No. 1, March,, pp. 69-94.
26. Economic & Political Weekly, 31 July 1999, pp. M114-M120
27. Narayan, S. (1998a). “A Smorgasbord of Strategies,” Business World, Vol. 18,

No. 10, 22 August-6 September, pp. 42-46.
76
28. Narayan, S. (1998b). “Three’s a Crowd,” Business World, Vol. 18, No. 14, 22
October -6 November, p. 13.
29. Porter, M.E. (1985). The Competitive Advantage of Nations. New York:
Macmillan.
30. Prahalad, C.K. and Hamel, G. (1990) “The Core Competence of the
Corporation,” Harvard Business Review May-June pp. 79-91.
31. Prahalad, C.K. and Lieberthal, K. (1998). “The End of Corporate Imperialism,”
Harvard Business Review, July-August, pp. 69-79.
32. ReVelle, J.B., Moran, J.W., and Cox , C.A. (1998) The QFD Handbook. New
York: John Wiley & Sons.
33. Roussel, P.A., Saad, K.N. and Erickson, T.J. (2001) Third Generation R&D:
Managing the Link to Corporate Strategy Cambridge: HBS Press.
34. Sobek, D.K., Liker, J.K., and Ward, A.C. (1998) “Another Look at How Toyota
Integrates Product Development,” Harvard Business Review July-August, pp.
36-49.
35. “T he Mind’s Eye,” (1994), The Economist Survey of Manufacturing

Technology March 5th, p. 8
36. Thiagarajan, K. (1999). “Mastek: When Business Goes Globe-trotting,”

Business Line April 25, p. 8
37. Ulrich, K.T. and Eppinger, S.D. (1995). Product Design and Development. New
York: McGraw Hill.
38. Wheelwright.S.C. and Clark, K. (1992). “Creating Project Plans to Focus

Product Development,” Harvard Business Review, March-April., pp. 70-82.
39. Whitney, D.E. (1988). “Manufacturing by Design,” Harvard Business Review,

July-August, pp. 83- 91.
77
APPENDICES
Questionnaire
Q1. Tell us something about your supply chain.
Q2. What role the C&F agents play in your supply chain?
Q3. What all key issues were faced by the company before the actual solution was
put to place?
Q4. Which solution did you choose to take care of those issues?
Q5. How did you zero-in on that particular solution?
Q6. What other alternatives were there?
Q7. What all Supply Chain modules did you go for?
Q.8 Are the software modules compatible with each other?
Q.9 What all issues did you face while switching from an old system to a new
system?
Q.10 How did your channel partners respond to the Partner Relationship
Management?
Q.11 Is the system designed to monitor the impact of demand-shaping activities
on the category based on demand insight data?
Q.12 What redesign is required for existing systems?
Q13. Did you buy all the solutions from the same vendor?
Q14. How was the solution implemented?? At one go or in phases?

Q15. What all inputs were taken into account while planning the implementation
of the solution?
Q16. What were the results after the solution was implemented?
Q17. How do you review its performance?

Q18. Can marketing and sales see the impact of your company’s SCM execution
on the category?
19. How do you manage your supply chain?
 Manually
78
 Electronically
20. How successful do you think is your company in managing its supply chain?
o Hugely successful
o Somewhat successful
o Somewhat not so-successful
o Not at all successful
21. Which of the following you think that you’re company needs to do in order to
manage its supply chain better?
o Close partnership with suppliers
o Close partnership with customers
22. Does your company have a separate logistics department?
o Yes
o No
23. Does your company have a clear logistics strategic plan?
o Strongly agree
o Somewhat agree
o Neutral
o Somewhat disagree
o Strongly disagree
24. Do you agree that the introduction of knowledge management in the field of
supply chain management has actually helped to improve the supply chain
operations?
o Strongly agree
o Somewhat agree
o Neutral
o Somewhat disagree
o Strongly disagree
79
25. In this age of highest consumer expectations and every company’s initiative to
Minimise the supply chain cost, knowledge management has a crucial role to
play in supply chain operations, do you agree?
 Strongly agree
 Somewhat agree
 Neutral
80

Supply Chain Management in Automobile Industry

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Supply Chain Management in Automobile Industry

Uploaded by

Copyright:

Available Formats

MINOR PROJECT REPORT

SUBMITTED IN PARTIAL FULFILLMENT FOR

UNDER THE GUIDANCE OF SUBMITTED BY:

Maharaja Agrasen Institute of Technology

Signature of Faculty Guide

I am very thankful to Director Dr Neelam Sharma, MAIT, (HOD) Dr Amit Gupta,

I express my sincere thanks to all people who participated and helped me in

Chapter 2: Review of Literature.................................................................................

Chapter 3: Research Methodology.............................................................................

Chapter 4: Data Analysis and findings.......................................................................

1.1. Introduction of the Study

An automobile life cycle consists of the generic following stages:

Manufacturing and assembly;

Two different areas can be considered in Design Management [Koudate, 1991]:

Indian companies are substantially increasing investments in production capacities,

Profile of Passenger Car Industry

In the increasingly competitive environment in India, the development and launch of

Specifically, unlike established companies in developed markets, Indian companies are

Statement about the Problem

Why Is This Particular Topic Chosen

Joint venture related issues

Employees used slowdown in October 2000, to press a revision to their incentive-

Anti-competitive dealer policies

 Modernization of the Indian Automobile Industry.

 Developing cars faster and selling them for less.

 Production of fuel-efficient vehicles to conserve scarce resources.

 Market Penetration, Market Development Similarly Product Development and

 Partner relationship management, Value chain, Value delivery network.

Prices starts from 4.6 lakhs to 6.9 lakhs.

Prices starts from 2 lakhs to 2.7 lakhs.

Prices starts from 17 lakhs to 18.5

Prices starts from 1.8 lakhs to 2.2 lakhs.

Knowing more about the product Alto: -

1.2. Objectives of the study

1. To study the role of supply chain management in Automobile Industry

1.4. Limitations of the Study

Dr P. Natarajan and U. Thiripurasundari (2010) this study focuses on the consumer

Gauhar Fatma ,Ela Kumari (2013),Marketing strategies of Maruti-Suzuki Maruti-

M.Akhila, Ali Ashas T Thayyullathil (2015), A study on customer satisfaction

Suraksha Gupta, Naresh Malhotra (2013), Marketing Innovation: a resource–based

What contribution would the project make ?

Supply Chain management In Automotive Industry

The significant development in Indian automobile sector is the outstanding growth of

BLOCKCHAIN SUPPLY CHAIN TECHNOLOGIES WITHIN THE

Regional Blockchain Supply Chain Technologies Within Automotive Market

Asia-Pacific Blockchain Supply Chain Technologies Within Automotive Market

Latin America Blockchain Supply Chain Technologies Within Automotive Market

Europe Blockchain Supply Chain Technologies Within Automotive Market

INDIA: Current Industry Sales Figures and Growth Potential

No Model Sales Delhi Price (lakh) Length

1 Suzuki Alto 17,816 2.59~3.13 3495

2 Suzuki Wagon R 11,748 3.56~4.04 3520

3 Hyundai Santro 11,699 2.94~4.59 3565

4 Tata Indica 11,396 2.75~4.58 3675

5 Suzuki Omni 7,793 2.45~2.47 3370

6 Suzuki Swift 7,576 4.36~5.56 3695

7 Suzuki M800 5,480 2.16~2.38 3335

9 Toyota Innova 3,910 8.16~11.35 4555

10 Mahindra Scorpio 3,418 8.07~9.54 4325

What Is The Ideal Indian Car?

The Best Way To Enter India

Where Will The Cars Come From?