Volkswagen

Presented By Team 2Akanksha Singh

Anuraag Ghosh
Afreen Alim
Divya Shukla
Aditi Singhal
Abdullah

Industry Analysis
Overview of the Industry:
The automobiles sector is
compartmentalized in four
different sectors:
Two-wheelers
Passenger Vehicles
Commercial Vehicles
Three Wheelers
As per the Confederation of the
Indian industry, India is tenth
largest passenger car market

Industry Analysis
The automotive industry in
India is one of the largest in
the world
annual production of 23.37
million vehicles in FY 201415, following a growth of 8.68
per cent over the last year
industry accounts for 7.1 per
cent of the country's gross
domestic product (GDP)

Industry Analysis
Features of the Industry:
India is home to a vibrant
automobile of more than 40
million vehicles
The automotive industry is one
of the key drivers of Indias
economy,
accounting
for
around 4 percent of Indias
GDP and over 200,000 jobs
Indias automobile market has
grown steadily over the last
seven to eight years

Changes/Growth over the Years

Market Size:
Sales of passenger vehicles increased by 11.04 per cent to
242,060 units in April 2016
sales of passenger cars went up by 1.87 per cent to 162,566
units in April 2016
Investments:
Industry has attracted Foreign Direct Investment (FDI) worth
US$ 14.32 billion during the period April 2000 to December
2015
Government Initiatives:
The Government of India encourages foreign investment in the
automobile sector and allows 100 per cent FDI under the
automatic route

Changes/Growth over the Years

Increasing urbanization and evolving customer
needs to have greater influence on OEM strategies
and buying behavior than reactive regulatory
policies
Increasing risks across value chain position OEMs
to deploy range of mitigation strategies
Within seven years of starting operations in India,
Volkswagen has managed to become a profit
making venture
Volkswagen India net profits stood at INR 604
crores in 2015 fiscal

Major Players & Market Share

In Indian Automobile Market, the major players are:
Maruti Suzuki: 47%
Hyundai: 17.3%
Mahindra: 7.5%
Honda: 5.4%
Toyota: 4.6%
Renault: 4.5%
Tata Motors: 3.5%
Ford: 2.6%
Volkswagen: 1.1%
Others: 6.5%

Major Players & Market

In Global Automobile Market:
Toyota: 11.6%
Volkswagen: 11.1%
GM: 8.2%
Ford: 7.6%
Honda: 5.9%
Nissan: 5.3

Mergers, Acquisitions & Other Strategic

Alliances
Volkswagen
Group
comprises
12
principal
vehicle manufacturers and
their corresponding brands:
AUDI AG, the Audi Group,
Automobili
Lamborghini
S.p.A., Bentley Motors Ltd,
Bugatti Automobiles S.A.S.,
Ducati
Motor
Holding
S.p.A., MAN SE.

Macro environmental Factors:

Demographic factors:
Population growth in India
Increasing
youth
population
Rural Urban ratio
Literacy levels
Income group
Working women
Changing family structure

Macro environmental Factors:

Economic Factors:
Allowing for 100% FDI
Rise
in
purchasing
power
Easy availability of parts
Rise in taxes
Strong Economy growth
Established
Manufacturing Hubs

Macro environmental Factors:

Natural Factors:
Major global concern
Comply with Euro and
Bharat
Emission
standards
Use of alternative fuels
Use of eco friendly cars

Macro environmental Factors:

Technological Factors:
Greater emphasis on R&D
Innovation
Increased regulation on technological change
Development of hybrid and concept cars
Emphasis on Safety Technology
Assembly Line

Macro environmental Factors:

Political Factors:
Assistance in development of
vehicles
propelled
by
alternative energy
Effective judicial system
Political Stability
Tax deduction for R&D
activities
Reduction in import duties
FDI

Macro environmental Factors:

Cultural Factors:
Upward migration towards
income levels
Demand for small cars
Demand for fuel efficient
cars
Growth in Urbanization

Micro environmental Factors:

Suppliers:
Defective parts of Automobile lead to lot of loss
The quality and price is a concern
Suppliers bargaining power has increased
Automobile companies have become assemblers
rather than being manufacturers
Suppliers include Bosch, General Motors and
Johnson Controls

Micro environmental Factors:

Competitors:
Wide
range
of
product availability
Little
scope
of
differentiation
Lot of Advertisement
expenses
Industry has low
profit margin

Micro environmental Factors:

Customers:
Different demands due
to wide range of choices
Different
mode
of
buying being adopted by
customers
Word of Mouth
Information availability
with the customer

Micro environmental Factors:

Company:
High operating leverage
impact
High fixed cost
Lot of research &
development
Lot of advertisement

Micro environmental Factors:

Intermediaries:
Wholesalers such as
companies providing
steel, oil grease and
lubricants
Dealerships such as
Volkswagen
showrooms

Micro environmental Factors:

Publics:
Targets the high class and
economic class
Government publics in relation
to tax paid to government
Media publics include use of
newspapers, blogs, magazines
(print and digital)
Internal
publics
include
employees and offering them
incentives, bonuses

SWOT Analysis:
Strengths:
Strong Brand Image
Presence all over the world
Strong R&D
Largest market presence in
China
Awesome performing
brands
High number of employees

SWOT Analysis:
Weaknesses:
Weak position in the
Indian Market
Weak position in the US
Most of the cars are not
environmental-friendly
High competition from
Toyota

SWOT Analysis:
Opportunities:
Changing Technology
Emerging Indian market
Expansion in the US market
Decrease in fuel prices
Space for social responsibility
Stronger market hold through
acquisitions and mergers
Increasing demands for 4
wheelers

SWOT Analysis:
Threats:
High competition in future
Lower fuel prices resulting in
decline in demand for hybrid
cars
Increase in price of raw
materials
Carbon
dioxide
emission
standards

Thank You