Auto Sector Research Articles

A review on metal matrix composite for automobile applications

Abstract This paper reviews the possibilities to make the metal matrix composite based auto components for the automobile sector. The metal matrix based composite material components can be used in the auto industry due to its lightweight, high, high fatigue life, and high impact strength. The researcher and designers are investigating a new combination of material based on metal matrix composite. The effective production, investigation of properties and design of MMC based components can provide better auto components to the auto sector in place traditional material. Background information and behavior of composite material are briefly discussed. The techniques used to fabricate metal matrix based composite such as stir casting method, centrifugal casting, and the Squeeze Casting method Powder Metallurgy are presented. The various properties that influence the metal matrix composite are briefly discussed. Applications of metal matrix composite for the auto sector are highlighted. The systematic scheme, process layout, test of standards and application help the researchers to achieve the desire results. This information can be apply to the design and fabrication of metal matrix composite based auto components.

Cost of poor quality reduction in auto sector: an exploration with Six-Sigma

Cost of poor quality reduction in auto sector: an exploration with Six-Sigma

Cost of poor quality reduction in auto sector: an exploration with Six-Sigma

The cost of poor quality (COPQ) always helps in analysing the operating costs for effective and profitable business management. COPQ consists of those costs which are generated as a result of producing defective material. The present study deal with implementing the Six-Sigma in the Indian automobile company. This research aims to reduce the problems faced by the company's quality inspection department. The department faces various rejection problems of two vehicles, such as front fork pivot hard movement, grease nipple broke, O-rings struck, edge bends, etc. We used a structural DMAIC methodology to improve the process. This study used multiple Six-Sigma tools such as Pareto chart, process map, fishbone diagram, and process capability chart to solve the rejection problem. Using a Six-Sigma methodology, we improved the sigma level of 1.875 to 4.375, which benefits 199,020 rupees' rework costs annually. This study helps practitioners and academicians to emphasise their effort towards COPQ.

The USMCA and Mexico’s Prospects under the New North American Trade Regime

After 26 years of trading under the North American Free Trade agreement (NAFTA), Mexico and its North American partners enter a new phase with the entry into force of United States-Mexico-Canada Agreement (USMCA) on 1 July 2020. This note quantifies the potential impact of the agreement on Mexico and assesses its implications for Mexico’s economic development in the context of the evolving knowledge-based and data-driven economy, the restructuring of global supply chains in response to the risks that were highlighted by the pandemic-driven economic crisis, and the changes to global trade and investment patterns driven by the trade and technology friction between the United States and China. The USMCA provides a major overhaul of the NAFTA based largely on the text of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). It introduces some minor improvements to market access but its main effect for the industrial sectors of the economy is to intensify trade and investment diversion through more restrictive rules of origin, including onerous new requirements for labour value content in the automotive sector that impose significant adjustments on Mexico’s auto sector producers. The agreement builds on the institutional framework of the NAFTA, retaining the binational panel review mechanism for trade remedies – now Chapter 30 – intact, preserving the investor-state-dispute-settlement (ISDS) mechanism for Mexico-US investments only, improving state-to-state dispute settlement mechanism by addressing procedural weaknesses in the NAFTA version that had undermined its use, and introducing a new rapid-response mechanism for challenges to Mexico’s compliance with the labour market measures newly incorporated in the USMCA. The agreement, however, leaves open the use of US Section 232 “national security” tariffs and thus does not address the main new source of uncertainty concerning assured access to the US market for its North American partners. The analysis concludes that the net impact on Mexico is to reduce real gross domestic product (GDP) by about -0.8% compared to the NAFTA, once the economic adjustments are fully in place. Since Mexico had already signed onto disciplines on data localization and cross-border data flows under the CPTPP, the digital economy measures have little direct impact; however, how Mexico engages in the digital economy, both to tap the economic potential and to develop regulatory safeguards will be an important determinant of how well it fares under the new USMCA trade regime.

The Rollout of GST and its Impact on the Auto Sector Stocks of National Stock Exchange

The most awaited and the biggest indirect tax reform in India – Goods and Services Tax (GST) was finally introduced on July 1, 2017. On contrary to the expectations, the automobile industry had severe hiccups during the latter part of 2018, and experienced negative sales growth and the people were jittery about the process of implementation of GST in India. The present study was dedicated to assess and compare the returns rendered by the auto sector stocks listed in the Indian equity market, pre-and postimplementation of GST in India and to understand the level of volatility in the price behaviour of the selected stocks during the study period. To achieve this, we used the daily closing prices of the constituent stocks of auto sector index of National Stock Exchange for 90 trading days pre and post the execution of GST (from February 20, 2017 – November 9, 2017) and relevantly applied the GARCH family models to understand the existence and extent of symmetric and asymmetric volatility in the auto sector stocks. We found that the implementation of GST in India showed a negative impact on the returns delivered by the auto sector stocks and also found abnormal and heightened volatility during the post GST period.

Strategizing Under Economic Uncertainties: Lessons from the COVID-19 Pandemic for the Indian Auto Sector

Formulating business strategies in times of economic uncertainty can be a challenging exercise because of rapid changes in market assumptions, projections, and conditions. Studies have shown that the repertory of strategic choices that businesses explore, to handle uncertain economic environments, is not highly varied. This article reviews the strategic responses that leading Indian auto manufacturers have adopted in order to handle the dip in demand post COVID-19. Given that the Indian automobile industry has been facing headwinds since 2018, the COVID-19 pandemic could not have hit the sector at a more inopportune time. This article aims to review how firms in the sector ride through an economic slump and also sheds light on strategic decision-making patterns The article exclusively focuses on leading automobile firms and does not analyze actions taken by comparatively smaller players to stay afloat. Hence, this article does not delve into the actions that suppliers and dealers are exploring. Most importantly, this article contains a comprehensive analysis of the financial performance of a few auto majors. This article seeks to piece together a picture of firm-level strategies on the basis of publicly accessible financial statements and news reports.

Analysis of demand risks for the Indian automotive sector in globally competitive environment

PurposeThe purpose of this study is to understand the different types of risks affecting the demand for the automotive sector in India. The study is further trying to illustrate an approach for analyzing the relative intensities of these risks in the present uncertain business environment.Design/methodology/approachRisk on the overall demand is assessed by a combined Bayesian – multi-criteria decision-making approach. Data related to the different factors, affecting their product demand is collected from major automobile firms. Then, weights for these factors are evaluated by applying the analytic hierarchy process approach. Further, these weights are used in the Bayesian analysis network to evaluate the risk intensity for different subgroups, namely, political, economic, social, technological and environmental.FindingsFrom the literature and experts’ opinion, total 16 risk factors have been finalized and these are further grouped into 5 categories i.e. political, economic, social, technological and environmental. It is observed that the demand for organizations functioning in the automotive sector is more vulnerable to economic risk as compared to other risks considered in the study.Practical implicationsManagers and decision makers of associated organizations can use the proposed framework to assess the demand risks so as to pre-evaluate their demand corresponding to future changes. Factors can be added or removed and importance could be assigned to different risk factors according to the prevailing business environment for an organization or sector. This will also help the organizations to conduct a more effective risk management in an uncertain business environment.Originality/valueThe study will help in better understanding of the various demand risks prevalent in the Indian auto sector. The methodology used, provides a novel approach for assessing the macroeconomic demand risks and can be used by the firms working in the automotive sector. The proposed methodology could be used for assessing supply chain risk or any other business initiative risk. The suggested approach will help managers in devising flexible management techniques so as to mitigate the risk.

A World Class Industry: Honda in Alabama and the Rise of the Foreign-Owned Auto Sector

This article provides the first in-depth historical case study of Honda’s assembly plant in Lincoln, Alabama. Established in 1999, the plant became one of the biggest auto factories in the US, employing over 4,500 workers. Drawing on a wide range of sources, including rare interviews with top company and state officials, it argues that the establishment of the plant did not just reflect financial subsidies, the prevailing view in the press (and limited academic literature). Other factors were crucial, including site location, the availability of a willing and qualified workforce, and union avoidance. The personal intervention of state leaders, especially Governor Don Siegelman, is also uncovered here. In a broader context, the article illuminates the globalization of the car industry. In 2018 foreign-owned companies accounted for half of US auto production, and Alabama was a leading producer. Despite this, the burgeoning sector has been overlooked by scholars compared to domestically-owned carmakers. Honda in Alabama has been particularly neglected, yet its story is significant and distinctive. A highly successful plant, Honda Manufacturing of Alabama had one of the highest levels of domestic content in the country, along with more American managers than Honda’s better-known factory in Marysville, Ohio, and a more diverse work force.

Auto Sector Stock Price Trend P rediction using Decision Tree

The auto sector stock price trend is based on many national and international uncertain factors. It is challenging to predict the impact of such a factor on the stock price trend as the impact of the same factor varies at different points of time. In this research work, we are predicting the auto sector stock price trend using patterns in the historical data using a machine learning method.

Central Banks Respond to COVID-19 to Stave off a Financial Crisis, They Need for Targeted Fiscal Measures Should not Be Understated

Central Banks have cut interest rates to historic lows in an attempt to reduce the adverse impact of COVID-19, while unprecedented liquidity infusions have been used to reduce funding constraints and frictions in the financial market. Monetary policy will lessen the economic and financial fallout from the virus, policymakers should emphasise the need for targeted fiscal measures to complement accommodative monetary policy and central bank liquidity. These should culminate fiscal transfers, wage subsidies and a significant reduction in social security contributions for households. Nevertheless, central banks should begin stemming structural vulnerabilities in financial markets and ensure that liquidity infusions are a short-term measure designed to improve the transmissions of monetary policy rather than create financial market dependence, as has been the case since the financial crisis. The Coronavirus or COVID-19 has caused the global economy to grow at a slower pace, government yields have tumbled and liquidity constraints have increased in financial markets across advanced economies. Prior to this, the United States and China were locked in a geopolitical, economic and technological rivalry that caused a synchronized cyclical slowdown as businesses to postpone investment decisions. This trend of slowing capital investments into productive sectors such as green technology and renewable energy saw productivity wane, and global woes were compounded by Brexit amidst sluggish growth in the single market. Following the signing of a phase one of the trade agreement and the USMCA, COVID-19 began to spread in Wuhan, the capital of Hubei province. Since then, the virus has spread to Italy, North America and Africa. In the meantime, global manufacturing supply chains for cosmetics, the auto sector, consumer and industrial products stalled, business and consumer sentiment plummeted in some advanced economies and the service sector spanning tourism, transportation, restaurants have been adversely affected by the virus. Central Banks can assess the impact of the Coronavirus from two standpoints.

An Analysis of Total Quality Management (TQM) within the Thai Auto Parts Sector

The study intended to investigate the factors that affect the total quality management (TQM) process in the 1,800 firm Thai auto parts industry. Automotive parts export shipments from Thailand are ranked 13th globally and are destined for over 100 countries, with Thailand’s combined automotive industry representing 12% of GDP. Therefore, with the authors understanding the importance of this economic sector, a research tool was developed, which contained a five-level scale to investigate 455 auto parts managers, executives, and owners’ opinions. Topics surveyed included the respondents’ opinions on the effects of knowledge management (KNG), product quality (QLY), strategic planning (STY), and technology and innovation (TIN) on the Thai auto part industry TQM process. The study’s eight hypotheses made use LISREL 9.1 software to analyze the final structural equation model (SEM). Results showed that all the model's variables had a positive influence on TQM, which can be combined to explain the variance of the factors affecting TQM (R2) by 78%. Additionally, the variables affecting TQM ranked in importance were STY, KNG, QLY, and TIN. Disruptive change has also arrived within the automotive sector, as Industry 4.0 technologies, the Internet of Things (IoT), and artificial intelligence (AI) are being used in the development of a new generation of autonomous and electric vehicles (EVs), making many current manufacturers' technologies and processes obsolete. Therefore, management and vendors must embrace these changes for their survival. The study's results highlight the necessity for international firms to embrace innovation and technological change to retain a competitive advantage or even their survival. Governments and educational institutions must also go the ‘extra mile' to support their domestic automotive and auto parts sectors.

The Political Economy of Automotive Industry Development Policy in Middle Income Countries: A Comparative Analysis of Egypt, India, South Africa and Turkey

This paper examines the political economy of development policy through the prism of four country case studies (Egypt, India, South Africa and Turkey) of the automotive industry. The objective is not simply to examine the developmental impact of automotive policy, but to illustrate how the policy regime has been the outcome of a contested process. Early growth in the auto sector in the four case countries was enabled by rents from protected markets. The emergence of competitive firms is critically dependent on the nature of state–business relationships and the net outcome of the rent-seeking process in the sector. This hinges on the bargaining power of business, foreign or domestic, vis a vis the government. If firms capture subsidies in return for support to weak and vulnerable ruling coalitions, the auto sector in that country can become the classic case of an infant industry remaining stunted. Where the distribution of power is such that ruling coalitions are able to discipline firms in the auto sector, so that they become globally competitive, developmental outcomes have been positive.

Technical analysis for implementing BS-VI automotive emissions norms with respect to electric vehicle production by 2020 in India

Automotive pollutants include CO, NOx, HC, PM (mostly soot) & SOx. India has decided to implement BS-VI norms by April 2020. Auto sector is also likely to switch towards electric mobility. In this research a comparative study in terms of financial and social-economic is made between challenges to be faced by auto sector shifting toward electric mobility and making BS VI compliant vehicles. For the analysis the e2o Plus of Mahindra & Mahindra and the Alto 800 LXI of Maruti Suzuki which are similar in size and volume, but powered by two different sources were chosen. It was observed that shorter mileage, frequent battery recharging, frequent maintenance and least charging infrastructure are areas which have to be addressed by auto industry for commercial viability. Lithium ion battery is least suitable and sodium ion battery is under research trials. This research recommends a hybrid model to be adopted before switching to electric mobility.

TQM in Indian auto component SMEs: role of contextual or institutional factors

Over the past few years, the small business sector has gained lot of prominence in the entrepreneurship literature as it has emerged as a leading force creating an impact on the growth of national economies. Small and medium enterprises (SMEs) in Indian auto component sector are facing stiff competition from large companies as they could provide products of greater value with lower cost as compared to SMEs. To meet these challenges, SMEs must implement TQM, which is recognised as a resource for promoting organisational innovation. This study aims to investigate the effect of contextual factors namely 'size', 'age' and 'geographical location' of company on TQM implementation in Indian auto component SMEs. The study provides empirical evidence that a context-dependent argument for TQM implementation does not hold good. Research findings suggest that the extent of TQM implementation in these SMEs is governed by institutional factors as suggested by institutional theory.

Setup Changeover Time Reduction in 4 Wheel Drive Front Axle Differential Case Cone Bearing Pressing Process – SMED Method

Single minute Exchange of Die is one of the LEAN approach to reduce the set up change over time and seven kind of losses due to the weakness in the initial process customization. Manufacturing organizations faces problem in reduction of cost and increasing the efficiency or productivity which is real challenge in the manufacturing operations. In the highly competitive or globalized society the manufacturer need to find a method to reduce the cost and production time to reduce the operating cost and Quality of product and Reliability. This paper deals with the basic over view of a reduction in set up time in a sub assembly stage of an auto sector by Setup Changeover Time Reduction (SMED). It is definitely possible to reduce the set up times and cost of sub assembly production considerably by simple modifications or improvements. The reduction of set up time can be done with the help of SMED methodology. Various types of industries can apply the SMED Methodology to reduce their set up times.

Impact of Interest Rate on the Nifty Auto Sector Index – Evidence from India

The paper critically examines the interest rate announced by RBI with respect to other factors which it affects and its implications on the Nifty auto sector indices of Indian stock market. The primary objective of the paper is to study the direct impact of interest rate on stock indices and propose a model for forecasting indices based on the interest rate. Karl’s Pearson coefficient of correlation and linear regression model is been used to analyse the impact and forecasting. It has been found that there is positive or direct relationship of interest rate on the closing price of the index but not significant.

Investigation of a Modified Fine Piercing Process on Extra Deep Drawing Grade Steel

Cost-effective precision is the order of the day in the auto part manufacturing sector. Fine piercing, being a single stroke precision operation, is among the most widely used sheet metal forming operations in the part manufacturing industry. Compared to conventional piercing, fine piercing generates a cleaner cut edge, minimizing the need for further finishing operations. However, the application of fine piercing requires a triple action press. A modified process that uses rubber to exert counter force enabling fine piercing to be carried out using a double action press has been proposed earlier. In this work, an experiment setup for conventional fine piercing and the modified process using rubber has been designed and developed and fine piercing studies have been conducted. Finite element simulation of both processes has been carried out using the same process parameters. The force–stroke data recorded from experiments were used as the boundary condition for simulation. Simulation results suggest that the change in method of counter-force application causes negligible effects on the deformation mechanics involved. Fine pierced edge quality evaluation studies suggest that the proposed process makes no difference to the end product quality; hence, it can be used as a viable manufacturing process.

The Real Stranded Assets of Carbon Lock-In

Climate debates over stranded assets are focusing on the wrong assets. Fossil-fuel companies and petrostates argue that they will suffer economic losses from climate policies. Although true, this ignores assets that will be stranded in the absence of climate policy. These are the real stranded assets of carbon lock-in and could prove much more costly.

Valuation of an innovation strategy in the diversification of products in the agricultural auto parts sector

Purpose The purpose of this paper is to value an innovation project derived from a product diversification strategy in the agricultural auto parts sector, considering uncertainties and flexibility as sources of value for the project. Design/methodology/approach A case study project is presented and valued using real options, with the possibility of including new information modelled by Bayes’ theorem, which enables the fitting of the probabilities of the project for the purpose of valuation through the decision tree method. Findings The results indicate the effect of new information and provide implications for value creation, demonstrating the need for a more profound and systematic approach to the use of investment strategies considering factors endogenous and exogenous to a firm that can and should be considered in the decision-making process. Practical implications This study contributes to an understanding of the relationship of strategy and innovation through product diversification with value creation and serves as a guide for controlling the possibility of investments in diversified companies and agribusiness using the methodology discussed in this paper. Originality/value Valuing the inclusion of new information through Bayesian inference in the analysis of investments is a methodological feature that has received minimal attention in the literature. Therefore, the use of Bayesian theory for the real options model applied to agribusiness is the main innovation of this study to demonstrate new ways of modelling uncertainty in addition to stochastic processes.

Influence of Porter’s Diamond Cluster on Pakistan Automotive Industry’s Performance

The purpose of this study was to conduct a theory based contextualization of Porter’s diamond related and supporting industries determinant and investigate the influence of clusters, fostering knowledge and innovation, on the performance of automotive firms in Pakistan. In this empirical study the research methodology entails applying axiology of positivism philosophy, self-administered structured questionnaire after pilot study. The research design was cross-sectional, probability technique was constructed in data collection; data analysis was performed by descriptive and inferential statistics. Hypothesis was tested through regression model. Size of sample was 194. The study findings noted absence of empirical research on Porter’s diamond in Pakistan in the automotive industry. Related and supporting industries of Porter’s diamond attribute have theoretical and conceptual perspective to provide impetus for firms in automotive industry to realize competitive advantage (CA). The study findings conclusively confirmed the determining force of clusters of related and supporting industries and its significant impact on the performance of the auto sector in Pakistan. The study investigated the automotive industry across multinational corporations (MNCs), private companies and joint ventures (JV). Practical implications are significant for constituencies like practicing managers, academia, and government policy makers. The research study is important owing to its conceptual and practical perspective for industry players and policy makers to help this key large scale manufacturing industry to realize CA by internalizing the related and supporting industries determinant of Porter’s diamond. Keywords : automotive industry, clusters, competitive advantage, national competitive advantage, related and supporting industries. DOI : 10.7176/EJBM/11-19-05 Publication date :July 31st 2019