INDUSTRY PROFILE

Automotive Industry in India

The Automotive industry in India is one of the largest in the world and one of the fastest growing globally. India manufactures over 17.5 million vehicles (including 2 wheeled and 4 wheeled) and exports about 2.33 million every year. It is the world's second largest manufacturer of motorcycles, with annual sales exceeding 8.5 million in 2009. India's passenger car and commercial vehicle manufacturing industry is the seventh largest in the world, with an annual production of more than 3.7 million units in 2010. According to recent reports, India is set to overtake Brazil to become the sixth largest passenger vehicle producer in the world, growing 16-18 per cent to sell around three million units in the course of 2011-12. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand. As of 2010, India is home to 40 million passenger vehicles and more than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second fastest growing automobile market in the world. According to the Society of Indian Automobile Manufacturers, annual car sales are projected to increase up to 5 million vehicles by 2015 and more than 9 million by 2020. By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation's roads. A chunk of India's car manufacturing industry is based in and around Chennai, also known as the "Detroit of India" with the India operations of BMW, Ford, Hyundai and Nissan headquartered in the city. Chennai accounts for 60 per cent of the country's automotive exports. Gurgaon and Manesar in Haryana are hubs where all of the Maruti Suzuki cars in India are manufactured. The Chakan corridor near Pune, Maharashtra is another vehicular production hub with companies like General Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes Benz, Fiat and Force Motors having assembly plants in the area. Ahmedabad with the Tata Nano plant, Halol with General Motors, Aurangabad with Audi, Kolkatta with Hindustan Motors, Noida with Honda and Bengaluru with Toyota are some of the other automotive manufacturing regions around the country.

Overview
The Indian Automobile Industry is manufacturing over 11 million vehicles and exporting about 1.5 million every year. The dominant products of the industry are two wheelers with a market

share of over 75% and passenger cars with a market share of about 16%. Commercial vehicles and three wheelers share about 9% of the market between them. About 91% of the vehicles sold are used by households and only about 9% for commercial purposes. The industry has attained a turnover of more than USD 35 billion and provides direct and indirect employment to over 13 million people. The supply chain of this industry in India is very similar to the supply chain of the automotive industry in Europe and America. This may present its own set of opportunities and threats. The orders of the industry arise from the bottom of the supply chain i. e., from the consumers and goes through the automakers and climbs up until the third tier suppliers. However the products, as channeled in every traditional automotive industry, flow from the top of the supply chain to reach the consumers. Interestingly, the level of trade exports in this sector in India has been medium and imports have been low. However, this is rapidly changing and both exports and imports are increasing. The demand determinants of the industry are factors like affordability, product innovation, infrastructure and price of fuel. Also, the basis of competition is the sector is high and increasing and the life cycle stage is growth. With a rapidly growing middle class, all the advantages of this sector in India are yet to be leveraged. Note that, with a high cost of developing production facilities, limited accessibility to new technology and soaring competition, the barriers to enter the Indian Automotive sector are high and these barriers are study. On the other hand, India has a well-developed tax structure. The power to levy taxes and duties is distributed among the three tiers of Government. The cost structure of the industry is fairly traditional, but the profitability of motor vehicle manufacturers has been rising over the past five years. Major players, like Tata Motors and Maruti Suzuki have material cost of about 80% but are recording profits after tax of about 6% to 11%. The level of technology change in the Motor vehicle Industry has been high but, the rate of change in technology has been medium. Investment in the technology by the producers has been high. System-suppliers of integrated components and sub-systems have become the order of the day. However, further investment in new technologies will help the industry be more competitive. Over the past few years, the industry has been volatile. Currently, Indias

increasing per capita disposable income which is expected to rise by 106% by 2015 and growth in exports is playing a major role in the rise and competitiveness of the industry. Tata Motors is leading the commercial vehicle segment with a market share of about 64%. Maruti Suzuki is leading the passenger vehicle segment with a market share of 46%. Hyundai Motor India and Mahindra and Mahindra are focusing expanding their footprint in the overseas market. Hero Honda Motors is occupying over 41% and sharing 26% of the two wheeler market in India with Bajaj Auto. Bajaj Auto in itself is occupying about 58% of the three wheeler market. Consumers are very important of the survival of the Motor Vehicle manufacturing industry. In 2008-09, customer sentiment dropped, which burned on the augmentation in demand of cars. Steel is the major input used by manufacturers and the rise in price of steel is putting a cost pressure on manufacturers and cost is getting transferred to the end consumer. The price of oil and petrol affect the driving habits of consumers and the type of car they buy. The key to success in the industry is to improve labour productivity, labour flexibility, and capital efficiency. Having quality manpower, infrastructure improvements, and raw material availability also play a major role. Access to latest and most efficient technology and techniques will bring competitive advantage to the major players. Utilising manufacturing plants to optimum level and understanding implications from the government policies are the essentials in the Automotive Industry of India. Both, Industry and Indian Government are obligated to intervene the Indian Automotive industry. The Indian government should facilitate infrastructure creation, create favourable and predictable business environment, attract investment and promote research and development. The role of Industry will primarily be in designing and manufacturing products of world-class quality establishing cost competitiveness and improving productivity in labour and in capital. With a combined effort, the Indian Automotive industry will emerge as the destination of choice in the world for design and manufacturing of automobiles.

History
The first car ran on India's roads in 1897. Until the 1930s, cars were imported directly, but in very small numbers.

Embryonic automotive industry emerged in India in the 1940s. Mahindra & Mahindra was established by two brothers as a trading company in 1945, and began assembly of Jeep CJ-3A utility vehicles under license from Willys. The company soon branched out into the manufacture of light commercial vehicles (LCVs) and agricultural tractors. Following the independence, in 1947, the Government of India and the private sector launched efforts to create an automotive component manufacturing industry to supply to the automobile industry. However, the growth was relatively slow in the 1950s and 1960s due to nationalization and the license raj which hampered the Indian private sector. After 1970, the automotive industry started to grow, but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a major luxury. Japanese manufacturers entered the Indian market ultimately leading to the establishment of Maruti Udyog. A number of foreign firms initiated joint ventures with Indian companies. In the 1980s, a number of Japanese manufacturers launched joint-ventures for building motorcycles and light commercial-vehicles. It was at this time that the Indian government chose Suzuki for its joint-venture to manufacture small cars. Following the economic liberalisation in 1991 and the gradual weakening of the license raj, a number of Indian and multi-national car companies launched operations. Since then, automotive component and automobile manufacturing growth has accelerated to meet domestic and export demands. Following economic liberalization in India in 1991, the Indian automotive industry has demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions. Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki and Mahindra and Mahindra, expanded their domestic and international operations. India's robust economic growth led to the further expansion of its domestic automobile market which has attracted significant India-specific investment by multinational automobile manufacturers. In February 2009, monthly sales of passenger cars in India exceeded 100,000 units and has since grown rapidly to a record monthly high of 182,992 units in October 2009. From 2003 to 2010, car sales in India have progressed at a CAGR of 13.7%, and with only 10% of Indian households owning a car in 2009 (whereas this figure reaches 80% in Switzerland for example) this progression is unlikely to stop in the coming decade. Congestion of Indian roads, more than market demand, will likely be the limiting factor.

COMPANY PROFILE

Bosch
The Bosch Group is a leading global supplier of technology and services. In the areas of automotive and industrial technology, consumer goods, and building technology, some 285,000 associates generated sales of 47.3 billion euros in fiscal 2010. The Bosch Group comprises Robert Bosch GmbH and its more than 350 subsidiaries and regional companies in over 60 countries. If its sales and service partners are included, then Bosch is represented in roughly 150 countries. This worldwide development, manufacturing, and sales network is the

foundation for further growth. Bosch spent 3.8 billion euros for research and development in 2010, and applied for over 3,800 patents worldwide. With all its products and services, Bosch enhances the quality of life by providing solutions which are both innovative and beneficial. Bosch is celebrating its 125th anniversary in 2011. The company was set up in Stuttgart in 1886 by Robert Bosch (18611942) as Workshop for Precision Mechanics and Electrical Engineering. The special ownership structure of Robert Bosch GmbH guarantees the entrepreneurial freedom of the Bosch Group, making it possible for the company to plan over the long term and to undertake significant up-front investments in the safeguarding of its future. Ninety-two percent of the share capital of Robert Bosch GmbH is held by Robert Bosch Stiftung GmbH, a charitable foundation. The majority of voting rights are held by Robert Bosch Industrietreuhand KG, an industrial trust. The entrepreneurial ownership functions are carried out by the trust. The remaining shares are held by the Bosch family and by Robert Bosch GmbH.

Board of Management:

Franc Farenbach _ Chairman G1 Seigfried Dais Bernd bohr Chur Peter Tyroller Wolfgang Malchow Wolf Henning scheider _ Deputy Chairman G2

RBDI

BOSCH ELECTRICAL DRIVES INDIA PRIVATE LIMITED

Bosch Electrical Drives : (Chennai) Bosch is the Largest automobile supplier in the World with Sales of Over Euro 45.1 billion and operations spanning more than 130 Countries Across the Globe. Our Products stand for innovative technology that offer Great Customer Benefits and Cover a large number of Function Segments, thus used in a very Wide Range of Motor vehicles all over in the World.

Bosch Electrical drives India Private Limited. RBDI Industrial Concept: JV between Bosch and Igarashi Motors- a Strong Partnership to Produce technology Products at Competitive Cost/Price. Development, Application, Manufacturing and Sales by RBDI, Product Design, Platform development and lead plant functions by Robert Bosch. After market Sales and Service Network by Bosch in India. 300 Employees in 2008 growing to 650 by 2012.

Subramania Ullal Geetha Bali Sneha Sayee Ganesh P.Raju Arun kumar Dr. Namboothri Sankaran Deva Prasad

General Manager Human Resource Management Finance Marketing & Sales Manuacturing Quality Engineering

PRODUCT PORTFOLIO

Product Portfolio: Actuator System. Thermal System. Wiper System.

Actual System: Electric window lift Actuators from Bosch ensure that Windows are opened comfortably and closed safely, when installed in doors. With new drive units and electronic systems, we

simplify actuation and allow the installation of additional Functions such as closing-force limitation, Which prevents Parts of the body or objects from getting jammed (anti-pinch) when the window is closed. Actual System are FPC3 Window Lift Actuator, FPG2 Window Lift Actuator.

FPC3 Window Lift Actuator: Torque ranges up to 11 nm @ 12v DC. Modular Design for 2 pin. Built in Motor Protection. Motor with hall Sensor.

Thermal System: Bosch Represents an efficient, safe system for engine thermal management. We offer a broad, globally available range of Products as well as our experience and specialist knowledge in solving all application problems. The Termal System are HVAC Blower Motor, HVAC Blower Module, Engine Cooling Fan Motor, Engine Cooling Fan Module. GPB Motor (Engine Cooling Fan) Power _ 140.....450 W max. Axial Length _ 61..81 mm. Frame Diameter _ 102 mm. Motor Weight _ 1.3 to 1.9 kg Approx. HVAC Blower Module Power _ 250 w. Axial Length _ 102 mm. Frame Diameter _ 78 mm. Motor Weigth _ 9-92 kg Approx.

Wiper System:

Our extensive range of Product for wiper systems offers suitable solutions for every vehicle and every customer. It comprises innovative systems. Modules and Components for cleaning the Windshield and rear window- solutions which make driving even safer Wiper system are Front Wiper system, Rear Wiper System, Arm and Blade front and rear, Conventional Type, Areotwin type, Reservoir and Pump Assembly. Product Applications are Passenger Car, MUV and SUVs. Customer Benefits are Low operating noise, Compact Design and Less weight, High efficiency and long life.

Front Wiper System : Optimised rfi Suppression. Snow Clutch _ Optional. Applied Pedestrain Protection design. Optimised design for specific Vehicle application. Small Torque _ 24 to 38 mm. Built _ in Overload Protection.

Rear Wiper drive: Plastic Gear box covered with fixing points and Integrated connector. Optionally available with wipe and wash/wipe control as well as shaft for washer fluid supply. Two o/p shaft positions available. Reduced Weight (<820 kg) (less than). Arm and Blade : Conventional Design Rubber_ Synthetic or Natural. Connection _ U _ hook or Clips.

Aero twin (flat Type)

Up to 65% lesser than Up to 50 % Reduce height. Connection _ U _hook. Top Lock and Side lock. Improve wipe quality even of high speed. Improve Winter performance. Improved Vision/ down Vision.

OBJECTIVE:

To find the Market Potential of Wiper Systems to Three Wheeler Segment. To know the market demand and market share of the product. Analyzing expectations of Users Regarding Three Wheeler Wipers. Analyzing the Market Potential for the product to be Launched.

SCOPE OF THE STUDY The scope is limited to the extent of the place, time, organization and their information collected during the project. It is done as a part of academic study. The scope of the study limited to information supplied by the department head and information collected by standing order and settlement copies of the company. The study Helps to Fully Learn the Sales Methods of the Company, and Total Automotive Technology and How to Marketing in Customer are easily learned. Then Study Helps to Full and full Product Engineering Process, And Company Marketing and Sales Strategy are Learned. The information collected is limited to the academic knowledge gained by the student during the study of the course. The study is not proposed to be an expert study as it was done by a student for the purpose of a partial fulfillment of the course is the planned training, which is an integral part, in completion and reward of MBA. The study Helps to Fully Learn the Sales Methods of the Company, and Total Automotive Technology and How to Marketing in Customer are easily learned.

LIMITATIONS

The study will concentrate only in Customers of Three Wheeler Segment . As the study is related only Market potential on New Product Launching and first a fall Existing Product satisfaction in every Three Wheeler Customer.

The sample is made smaller one, due to lack of time.

Some respondents were difficult to access.

PERIOD OF THE STUDY The study was conducted for a period of 8 weeks during mid of May to mid of July 2010.

AREA OF THE STUDY The study was conducted in Chennai because of its huge potential market and the available scope for the Three Wheeler segments.

RESEARCH METHODOLOGY

METHODOLOGY
TITLE OF THE STUDY A Study on Market Potential for Wiper System to Three Wheeler Segment (With Reference to Bosch Electrical Drives India Pvt Limited).

STATEMENT OF THE PROBLEM

Study about the new Product Launching in Wiper product for Three Wheeler segment. Then Bosch leading the automotive components. RESEARCH DESIGN DESCRIPTIVE Descriptive research includes surveys, fact finding enquiries of different kinds, the major purpose of which is to describe the state of affairs as it exists at present. In social sciences and business research we quite often use the term expose fact research for descriptive research studies. The main feature of this method is that the researcher his no controls over the variable can only what was happened or what is happening.

DATA COLLECTION METHOD Market research requires two types of data i.e. primary data and secondary data. Primary data has been used abundantly for the study. Well structured questionaires were prepared & the survey was undertaken. Feedback for the display has been taken by asking questions & observation has also done to gather primary information.

There is also a use of secondary data collected from the various journals, books and websites and from company managers.

Primary data Secondary data

:Field survey :Bosch Records and Total Automotive Production Details in ever year Text books and journals Company websites

Based on the topic, objectives were set of 110 questionnaires were designed of 15 questions and response is collected from the customers of Three Wheeler Segment . For data collection random convenient sampling method was adopted. For this project area of research is Chennai. SAMPLING METHOD Since the study is restricted to retail sector,all the functional departmets of Big Bazaar and the respondents are found at the store only so sampling method is used in this study is random convenient sampling. SAMPLING Sample size Sampling method Sampling unit Measuring tool 110 respondents Simple Random sampling Chennai (Guduvanchery, Tambaram, Sriperambathur, Chrompet, Pallavaram) Questionnaire

SAMPLING TOOLS: Geographic area Data source Research approach Method of contact : Chennai. :Primary :Survey :Personal

Research instrument :Questionnaire