TOYOTA BOSHOKU AUTOMOTIVE INDIA

Introduction to Indian Auto Industry and Demography / Geographical locations

The Auto hub in India is largely classified as

South Region Chennai Hyundai Ford India Nissan Renault Nissan BMW North Region Gurgaon Maruti Suzuki Honda ICML West - Pune Tata Motors Volkswagen Mercedes Benz Mahindra Navistar Force Motors Fiat India Others GM Gujarat Halol Skoda Aurangabad

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Indian Auto Industry- Classification, Market share , Trends Customers

Market Share 2011-12

April 2009- March 2010

14% 8%

April 2010- March 2011

13% 8%

78%
Passenger Cars Utility Vehicles Vans Passenger Cars

79%
Utility Vehicles Vans

9%

April 2011 March 2012

14% 77%

Passenger Cars

Utility Vehicles

Vans

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Indian Auto Industry History ( Units )

Production Passenger Vehicles 2004-05 1209876 2005-06 1309300 2006-07 1545223 2007-08 1777583 2008-09 1838593 2009-10 2357411 2010-11 2987296 2011-12 3123528

Commercial vehicles Three wheelers

Two Wheelers Grand Total

353703 374445
6529829 8467853

391083 434423
7608697 9743503

519982 556126
8466666 11087997

549006 500660
8026681 10853930

416870 497020
8419792 11172275

567556 619194
10512903 14057064

752735 799533
13376451 17916015

911574 877711
15453619 20366432

Domestic Sales Passenger Vehicles Commercial vehicles Three wheelers Two Wheelers Grand Total

2004-05 1,061,572 318,430 307,862 6,209,765 7897629

2005-06 1,143,076 351,041 359,920 7,052,391 8906428

2006-07 1,379,979 467,765 403,910 7,872,334 10123988

2007-08 1,549,882 490,494 364,781 7,249,278 9654435

2008-09 1,552,703 384,194 349,727 7,437,619 9724243

2009-10 1,951,333 532,721 440,392 9,370,951 12295397

2010-11 2,520,421 676,408 526,022 11,790,305 15513156

2011-12 2618072 809532 513251 13435769 17376624

Exports Passenger Vehicles Commercial vehicles Three wheelers Two Wheelers Grand Total

2004-05 166,402 29,940 66,795 366,407 629544

2005-06 175,572 40,600 76,881 513,169 806222

2006-07 198,452 49,537 143,896 619,644 1011529

2007-08 218,401 58,994 141,225 819,713 1238333

2008-09 335,729 42,625 148,066 1,004,174 1530594

2009-10 446,145 45,009 173,214 1,140,058 1804426

2010-11 453,479 76,297 269,967 1,539,590 2339333

2011-12 507318 92663 362876 1947198 2910055

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Interior Business Competitors Seat Manufacturers

Lear 15.79% JCI 22.66% TBI 2.98%

Dymos Lear 14.79%

Ts tech 2.07% Tacle 1.41% Krishna / Bharat 39.12% Harita 0.33%

CBU 0.85%

Current Scenario ;
The Market is lead by Local players Bharat Seats / Krishna Maruti. ( Major Maruti ) Most OEMs have single source of supply Lack of Focus from OEM for interior components compare to power train & Transmission products. Global players are planning to establish the foot prints on Indian Market Tata Johnson Controls is increasing the customer base strongly Tacle automotive entered along with Nissan in India. Tacle automotive has a JV with lear corporation. Magna Formed JV with Krishna Maruti to serve west Regions

Factors influencing the Business.

Geographical location Supply chain Management Space constraints ( Inventory holding pattern ) Logistic costs. Price Quality Delivery

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B2B Business Trends

Quality, cost, Delivery are critical pre-requisites that define the business opportunity with OEM
Engagement Consolidation Flexibility/ adoptability Alignment trust Organization / Manpower Global foot print / Alliance Innovation / Technology End customer know -how

Quality

Cost

Delivery

Tooling Payment R & D Payment Price Production Volumes Warranty / product reliability Payments to system / tier 2 Intellectual property Rights Disagreement Disengagement

Dissatisfaction

Business opportunity
Logistics & Communication

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SWOT Analysis
Strengths Brand Name Quality products Niche product segment Innovation and Technology Newly developed seat ventilation system Global presence Weakness No Geographical locations spread across in India No big exposure to Non- Toyota OEM and culture No local R&D team No local labs for testings Not up to level in ERP usage Not much Marketing oriented lack of visibility at most levels in PR Activities We are currently struggling with following factors which contribute most in business acquisition in coming days Price , Quality and Delivery We spend nothing for research reports and realizations compare to competition Threats Competitors are Geographically well placed. Competitors well versed with the OEM organization structure and the Key influences than us Supply chain Most of our suppliers are supplying to TBI only with limited customer base ( Risk factor ) Competitors like JCI, Lear, Magna, Lear are aggressively building the teams in India

Opportunities New OEMs ( very less at this moment except for Peugeot , scania and Daimler ) Brand Recongization for Quality

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Current Scenario and Target Customers Identification

Internal Policy decision lead to
With JV with Relan Group and subsequent discussions the following customers will be handled Relan Maruti Suzuki - 38.44 % Mahindra - 9.38 % VW - 3.12 % The total Market share of these three customers is

Toyota Kirloskar Motors , TBI has access

The Total Market excluded is 5

- Market Share is

50.94 % 6.12 %
0.02 %

ICML is not to approach ( Meeting outputs of last time ) Market share is

7.08 %

Difficult Customers for acquisition

Hyundai -

Hyundai started operations in India in 1996 and procuring from Hanil lear till 2008, In 2008 Dymos the Hyundai group company acquired Hanil lear , and now its DYMOS The Current Market share of Hyundai in India is 14.85 % this is the reason why JCI also did not succeed to grab business with Hyundai . Tata Motors procures from TJC which they have a 50:50 JV through TACO and current Market share of Tata is

Accessible Customers BMW India Fiat India Force Motors Ford India General Motors Hindustan Motors Mercedes benz Nissan Renault Skoda

14.16 %

The Total Market share is 57.08 + 14.85 + 14.16 = 86.09

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Target Customers and Segmentation

OPTION A OPTION B

Establish Toyota Boshoku as a Niche Product supplier

Target Customers BMW India Chennai Mercedez benz Pune Audi India Volvo Cars

Establish Toyota Boshoku as a Market Challenger

Target Customers Ford India Nissan Renault Fiat India Skoda General Motors Current Advantages Ford India, Nissan and Renault are based in Chennai Ford India is doing around 135000 vehicles / annum Nissan is doing around 100000 Vehicles / annum GM is in Halol and the volumes are 110084 / annum The volumes of Ford, Nissan and GM are comparable.

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Supports / Approvals
Marketing Activities Research & Development

Participate in the all the PR activities

ACMA Meetings Participation in the auto events -organized by Noppen and others. Kiosk for the exhibitions Required to prepare a Kiosk for the exhibition purpose and the Tech show purpose . Tech shows at the customer place Start with Toyota Kirloskar plan to have the same with other customers like Ford, GM, Nissan and Renault Research Activities External research is required to know in depth of competition ( CI intelligence ) Advertise in Auto Magazines Auto professional ACMA news letters

The business is largely influenced by the availability and interaction of suppliers

R&D team with the OEM. Need for the establishment of local R&D capable of designing or can design with very less guidance, understand the customer requirements and come up with solutions Product Bench Marking / Product planning Dedicated team for product bench Marking who can Analyze the competitors product to the extent Material used and composition process used limitations and value additions Innovation and Technology The innovative products and Technological advancement will help in grabbing the attention from OEMs as Most OEMs prefer the products with technological advancement example : 1. use of Kenaf 2. Seat Ventilation 3. Reduction in Weight

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