Indian Automobile Industry Research Articles

Implication of Business Strategy in Indian Automobile Industry: A Case of Tata Motors

Purpose: Strategic Analysis is a process of business organization which involves studying the business environment and its operations. For the effective decision making and smooth functioning of business organization, the strategic planning is an essential tool. An Indian multinational automobile manufacturing firm founded in 1945 by the Tata group under the name TELCO (Tata Engineering and Locomotive Company). Indian automaker Tata Motors is the biggest in the world. Since Tata Motors was founded, the company has been engaged in many charitable endeavours, including philanthropy. Strategic planning took a major role in the growth and profitability perspectives of this company. Tata Motors' acquisition of Jaguar and Land Rover is a unique example of a corporation making a strategic decision based on its internal strengths and external opportunities in order to succeed in a competitive market. Tata Motors sought to broaden the scope of its offering and the geographic scope of its market. A steady rise in the number of mergers in the Indian business has been observed over the past decade. Recently completed mergers and acquisitions are a good indicator of an industry's level of competitiveness, potentials, and capabilities. This research is undertaken to examine the firm's potential and capabilities by comparing its performance before and after mergers and acquisition. Design/Methodology/Approach: When a company expanding its operations in the global level, some factors such as Economic, technological, customer-segment and international competitions will take a major role. The author of this paper has studied the growth of TATA Motors, both domestically and globally, in this study. For the purpose of the study secondary data is collected through various sources such as journals, research articles, newspaper articles and websites of Tata Motors and other ventures. Findings/Result: The study highlights the critics of Tata Motors' acquisition desire factor out that the timing of the deal is affecting the worldwide economy. The call for business and passenger motors declined because of a slowdown with inside the home and international economy. The newly introduced Tata Nexon could be a game changer for the electric car market in the country due to India's large population and rising standard of living. Due to lack of innovation and major competitors in the market Tata Motors needs to be more innovative in its approach. Originality/Value: This paper studies the effectiveness of mergers and acquisitions in terms of change in company’s potentiality and capabilities. Paper Type: Research Case study based on Company Strategic Analysis.

Implication of Business Strategy in Indian Automobile Industry: A Case of Tata Motors

Implication of Business Strategy in Indian Automobile Industry: A Case of Tata Motors

Impact assessment of logistics management practices on supply chain management performance in the automobile industry in India

Impact assessment of logistics management practices on supply chain management performance in the automobile industry in India

Impact assessment of logistics management practices on supply chain management performance in the automobile industry in India

Logistics is the core and backbone of the supply chain management (SCM) in any business. Currently, automobile and related businesses are struggling to optimise inventory and warehouse activities, error proof warehouse operations, properly optimised transport and distribution with customised vehicles, all-time damage free deliveries and real-time visibility, business processes integrations through right technology to minimise procedural wastes, and real-time information sharing across the stakeholders. The aim of the study was to understand the impacts of logistics management (LM) practices on SCM performance and the results imply that logistics management practices have high correlation and direct impact on SCM performance. The research concluded that proper use and optimisation of LM practices result improved supply chain performance which is desired for each business as it increases the overall profitability and customer satisfaction.

Role of Brand Position in Indian Automobile Industries

The riches of the vehicle industry is inextricably related to the entire health of the economy, rather just replaceable profits and customer confidence. There were no automobile manufacturers in India 80 years ago, hence there was no Indian automobile market. There were a few imported autos in India. Following independence, the government began efforts to develop a vehicle industry. At first, India’s automobile industry advanced at a snail’s pace. The situation now, however, is very different. Our country’s car market is extremely diverse. With 11 autos per thousand people and 32 two-wheelers per thousand people, India today has one of the lowest vehicular solidities in the world. This is quite low in contrast to other similar economies. The globalisation of the car industry is hastening the formation of new alliances and the entry of new manufacturers. In the automobile industry, not just in terms of sourcing whole vehicles and components, but also in terms of markets, modernization has never been more rapid. As a result, the cast of players in the global automobile business continues to expand.

Revenue and operational, financial performance of the leading Indian automobile companies of India: A relational mutual analysis

The operational and financial performance of the business organization is to be measured by its revenue, profit-earning capacity, and financial soundness to pay its debts. The profit of a business organization depends on the level of activities or revenue while the earning capacity defines and accelerates the absolute profit. Also, the financial soundness facilitates the resources and working capital to run the business activities to earn the profit. The operational efficiency enhances the profit margin while financial soundness increases the absolute profit by lifting the production level. The financial resources, operational efficiency, and revenue govern the profit of a business organization. The Indian automobile industry is the most prominent and contributing sector in the Indian economy. The study considers the relationship of revenue and profitability, financial resources to determine the relationship and mutual governance of revenue and profitability and revenue and financial resources. Financial ratios and statistical tools i.e. gross profitability and mean, coefficient of variation, rank correlation, and fixed base index applied to analyze the data of leading Indian automobile companies for the period 2011 to 2020. The study finds that the profitability and growth of the smaller leading Indian automobile companies are better than the higher revenue companies. Total resources or capital employed governs the revenue of the Indian automobile companies. The study recommends the study of cost composition of products of lower revenue leading Indian automobile companies.

Effects of GST on Automobile Dealers Industry

Abstract: India has applied for GST for their taxation system which has already been applied by more than 160 Nations worldwide. GST has changed India’s perception in front of policy makers of other countries, global investors including big automobile companies. The growth of automobile sector has clear correlation with the policy reforms as it affects domestic demand pattern as well as trade balance. The automobile industry in India is the most booming industry from last many years. India has become the fourth substantial automobile market in 2019 with increasing sales by 8.3% to 3.99 million units. It was the seventh substantial automobile manufacturer in 2018. The government of India has also known the importance of automobile industry. India has imposed a flare of hope by determined growth targets, supported by many of vital undertaking such as Digital India and the make in India campaigns. There are many changes made ensuring simplicity in the GST tax system. The purpose of the study is to understand the impact of these changes by Automobile Manufacturers (OEMs). Keywords: GST, Taxation, Commercial vehicle, automobile manufacturer.

What Determines Profitability in the Indian Automobile Industry?

This study tends to examine the firm-level profitability determinants of Indian automobile and ancillary industry which is recognised for its global competitiveness. The study uses recent dataset to investigate the firm-level profitability determinants in the Indian automobile and ancillary industry and records the effect of shifts in profitability due to change in economic environment. This study intends at using real financial balanced panel data for a period 1999–2019 and applies the two-step system generalised method of moments regression model with robust standard errors. The study has found that lagged profitability, marketing and advertising intensity, firm’s market power and operational efficiency have exercised positive impact on firm-level profitability. Negative and statistically significant impact of raw material import intensity and export intensity highlights the need of planning and implementation of appropriate investment strategies. The findings of this study suggest that firms should pay more attention to optimise their operating expenditures, marketing and advertisement expenditures and expand their market power as a part of their survival and growth strategy. JEL Code: L25

The drivers of employee creativity and organizational innovation: a dynamic capability view

PurposeThis paper aims to examine the drivers of employee creativity and organizational innovation empirically. And to study how employee creativity significantly impacts organizational innovation in a highly competitive market.Design/methodology/approachThis study is grounded in positivism philosophy. The theoretical model is grounded in the dynamic capability view (DCV) and further developed ten hypotheses and sub-hypotheses. To test our research hypotheses the authors utilized psychometric-based instruments. The authors obtained 575 responses from the automobile industry in India after multiple follow-ups. The data were utilized to check the construct validity and tested the authors’ research hypotheses using the co-variance-based structural equation modeling (SEM) tool (IBM SPSS AMOS 20.0).FindingsThe results support the authors’ research hypotheses. The findings of this study conform to the previous findings of the scholars which is an important aspect of the study. In the past various scholars have made an attempt to reproduce the results in different contexts. In a way, it helps to build confidence in the scientific merit of the results. It may be considered as an incremental contribution to the literature but it helps establish confidence in the theory of creativity and innovation.Practical implicationsThe results offer a nuanced understanding to the practitioners and policy makers to understand “what” and “how” to improve employee creativity that plays a significant role in organizational innovation.Originality/valueThis study is an attempt to examine how the theory of creativity and innovation can be embraced by the Indian automobile industry.

Prevalence and risk for overweight among employees in a leading auto-mobile industry in India

Background: Overweight is a major risk factor for the non-communicable diseases. India is home to nearly 164 million industrial workers (2017) and yet information about prevalence and risk of overweight among them is limited. Being overweight can adversely affect a person's productivity in his workplace and increase the risk of non-communicable diseases. The objective was to assess the prevalence of overweight and association between overweight and employee age, type of work and native origin.Methods: The longitudinal analysis was conducted using periodical medical examination (PME) data of employees from 2010-2018. Relevant data were collected. Year-wise prevalence of overweight was estimated along with specific prevalence by age, type of work and region.Results: The mean weight of employees increased from 68.1 kgs to 72.6 kgs (2010-2018). Overweight proportion was significantly higher in non-production departments. Overweight prevalence ranged between 15-29.8% among Karnataka regions in 2010 in production employees but reached 35-55.6% by 2018. Significant association was found between overweight with type of work and region.Conclusions: The increase in weight over time indicates the trend of overweight and weight reduction interventions are needed in workplaces to prevent the risk of NCDs.

A Comparative Study on Working Capital Management of Tata Motors Limited and Maruti Suzuki India Limited

The automobile industry in India is one of the speedily growing industry. Working Capital Management is important in this industry due to increasing demand and huge investment in this sector requires proper management. Working Capital Management perform a vital role in the success and failure of a business due to its effect on the performance and liquidity. Thereby this study has been undertaken to Comparative analyse working capital management of Tata Motors Limited and Maruti Suzuki India Limited for the period of seven years from 2013-14 to 2019-20. In this study three objectives are set for research. The first one was to assess the impact of working capital on sales, second was to assess the impact of working capital on profitability and third was to evaluate the working capital performance of the companies under study through the use of various financial ratios. The study reflects that the efficiency of working capital management of the companies is influenced by the Liquidity Ratios, Debtor Turnover Ratio, Inventory Turnover Ratio and profitability Ratio.

Talent agility, innovation adoption and sustainable business performance: empirical evidences from Indian automobile industry

PurposeAlthough Industry 4.0 has created a digital disruption in the business world, there is a huge demand for competent personnel to adapt to innovation in a highly volatile environment. This study aims to develop a conceptual framework on innovation adoption, thus creating a sustainable business performance in the Indian automobile industry.Design/methodology/approachA sample of 272 employees working in the Indian automobile industry was empirically tested to examine the hypothesized relationships. The proposed relationships were further tested using structural equation modelling (SEM) with AMOS 26 software.FindingsResults highlight that knowledge management, climate for innovation, learning agility and internal corporate communication positively affect innovation adoption. Perceived innovation characteristics also have a significant relationship with innovation adoption and sustainable business performance. Furthermore, innovation adoption has a positive relationship with sustainable business performance. However, ambidextrous leadership has a non-significant relationship with innovation adoption.Research limitations/implicationsThis study was confined to the Indian automobile industry, which restricts its generalizability. Thus, future research can be conducted in other sectors and country contexts.Practical implicationsThe paper provides valuable insights to practitioners, HR professionals and managers to develop an agile talent who quickly adapts innovative practices to deliver desired results. Organizations must incorporate digital leadership style, robust knowledge management, climate for innovation, learning agility and corporate communication into their talent development practices that further enhance strategic capabilities and lessen expenditures.Originality/valueThis paper provides a holistic framework of innovation adoption in the Indian automobile industry to attain sustainable business performance.

Identification of specific metrics for sustainable lean manufacturing in the automobile industries

PurposeThis study explains the importance of performance measures and identifies the specific performance measures of sustainable lean manufacturing (SLM) for automobile industries. Awareness towards sustainability and continuous improvement approaches demand monitoring of the sustainable lean impact on organization/industry, and hence, identifying the specific performance metrics is of peak importance.Design/methodology/approachIn this study, specific metrics for social, economic and environmental performance are identified from a systematic literature review of 82 significantly related journal articles. The importance of the identified metrics is assessed with the help of questionnaire responses from a group of industrial experts.FindingsPerformance indicators are statistically analyzed category wise and assessed. The key metrics are summarized based on the survey data followed by a discussion with industrial experts. From this study, performance measures have been identified and validated through hypothesis testing for Indian automobile industries. Certification of IATF16949 implementation found an important vertical for SLM implementation. In this study, SLM implementation initiatives are discussed, and reward scheme for outstanding performers are identified as important initiatives are followed by small improvement culture.Practical implicationsThe proposed discussion of this study is useful for industrialist and researchers, as SLM performance measures are well explained for Indian automobile industries. In this study, future research direction is also explained related to other industries. These summarized performance measures will help to maintain SLM in industries.Originality/valueThis paper presents the original literature review based on the study of SLM, as no extensive study is available where SLM performance measure explained for automobile industries. Key initiatives and vertical of SLM are well explained for Indian automobile industries. This study proposed a complete framework for SLM implementation considering competitive manufacturing targets.

Dynamic modeling of strategic thinking for top management teams and its impact on firm performance: a system dynamics approach

PurposeThe purpose of this study is to model the strategic thinking process, considering the different psychological traits of TMTs (top management teams) and how the technological dynamism affects the strategies framed together impacting the performance of the firm.Design/methodology/approachModeling and simulation are done in this study using the system dynamics (SD) tool. The data are extracted using social media analytics, and the same is given as an input for the SDmodel, which is used for modeling and simulation of the interdependencies between the psychological factors, technological dynamism and firm performance. The analysis decodes how a change in the thinking process of a TMT has an impact on the performance of the company in an automobile market.FindingsThe study has explained how different psychological traits affect the thinking process of a TMT and how the strategies framed with this thinking behavior have an impact on firm performance.Research limitations/implicationsThe study is limited only to the automobile industry in India, and only partial psychological constructs were considered to examine their impact on firm performance. This study can be further extended by analyzing the same to various other industries along with many other psychological constructs.Practical implicationsThe findings identify the change in behavior of the performance due to the thinking process and technological dynamism. This helps the top management to take into consideration different factors that affect the strategies framed for the company and what are the threshold points in the system that are to be focused on during the framing of a strategy.Originality/valueThe study fills the unattended gaps in the literature regarding how the psychological traits are interdependent and how their relationship is affecting the thinking process, which is going to have an impact on the behavior of the firm performance. It also adds to the literature of systems thinking.

Prioritizing Key Business Actions of an Indian Automobile Industry Using Efficient Interpretive Ranking Process (eIRP)

Prioritizing Key Business Actions of an Indian Automobile Industry Using Efficient Interpretive Ranking Process (eIRP)

Strategic Options for Automobile OEMs of Indian Origin to have Sustained Competitive Advantage: A Case of Tata Motors

The competitive landscape of automobile original equipment manufacturers around the globe is continuously changing, with new business models impacting the performance of automobile firms. The study uses benchmarking technique to benchmark Tata Motors passenger vehicle segment performance with a relevant foreign passenger vehicle manufacturer to explore the differences in core capabilities and platform strategies. The gaps reveal that there is tough competition among the firms in the automobile industry in India. The study also uses the problem structuring method to structure the key problem of Tata Motors' inadequate leverage of product platforms and identify the high potential root causes. The findings reveal that strategic options such as proper management of employees at top leadership positions, technologies, and strategic cooperation with partner firms may help Tata Motors better leverage new modular platforms. The new strategic options may also provide possibilities to scale internationally in niche vehicle product segments to achieve sustained competitive advantage. Among several potential capabilities and resources analyzed, only a few seem to be transferable to leverage advanced modular platforms and related digital technologies for Tata Motors.Supplementary InformationThe online version contains supplementary material available at 10.1007/s42943-021-00029-5.

Market Dominance and Imitative Response to Product Proliferation: A Competitive Dynamics Perspective

Extant research theorizes that market leaders often use product proliferation to saturate product space thereby deterring rivals from introducing close substitutes. This study argues that this overlooks the diversity of market leaders. Market leaders run the gamut from firms with temporary leadership to firms that dominate their industry for decades. Consequently, the impact of product proliferation as an imitation barrier may not always be the same. In this paper we focus on product proliferation by dominant market leaders. Using competitive dynamics perspective, we argue that in competitive action-reaction context market followers will not desist from imitation, but instead imitate the market leaders in order to avoid falling behind in an evolving market. We test our predictions using data drawn from Indian automobile industry (2009-2019) which is consistently dominated by a dominant market leader: Suzuki Motors. We show that product proliferation by dominant firm in a given product submarket will result in imitative product proliferation response from rival firms. We also find that the imitative product proliferation by the rivals, as a response to the dominant firm’s product proliferation in a given product submarket, will result in performance gains for the imitating firms. Conversely, we do not find that when the dominant firm’s product proliferation occurs in a more complex product submarket then the likelihood of imitative product proliferation from the rival firms in this submarket will decrease, and similarly, we do not find that rivals’ imitative product proliferation in a complex product submarket will result in greater imitating firm performance.

Environmental Reporting Towards Achieving SDGs 2030 – A Study on Automobile Industry in India

Environmental reporting is a serious issue, especially for large corporate houses of India having vast and dynamic activities; thus impacting socio-economic and environmental setup of the country as a whole. The reporting of actions taken for ensuring global sustainability and impairment of societal wealth ensured through business actions is extremely important for sustainable societal welfare. Indian automobile sector reveals mixed performance in this vital aspect. Social license to operate for corporate should be directly linked with status of sustainability reporting.

Risks associated with the implementation of big data analytics in sustainable supply chains

In the current era of unprecedented technological advancements, the effective use of big data analytics has become a fundamental requirement for organizations and provides opportunities for sustainable supply chains to increase competitiveness and enhance performance and productivity. However, implementing big data analysis entails risks so it is important that supply chain players develop deeper understanding of the risks in order to generate innovative strategies to overcome them. This paper therefore proposes a framework for the risks that may be encountered by organizations during the implementation of big data analytics within sustainable supply chains and further proposes overcoming strategies to control their occurrences. The best-worst method (BWM) is applied to assist in evaluating both the risks and overcoming strategies. The method is applied in the Indian automobile manufacturing industry which is the fifth-largest in the world, contributing 8% to Indian GDP and a major source of environmental pollution. The results indicate that technological risks followed by human and organizational risks are the major risks related to big data analytics implementation in supply chains. Moreover, the ‘presence of commoditized hardware’ coupled with ‘skill development strategies’ are considered the most significant strategies for overcoming risks related to big data analytics implementation. The results of this study provide a better understanding and controlling of the nature of the inherent risks and pathways to achieve successful big data analytics implementation within supply chains.

INNOVATIVE SUPPLY CHAIN SOLUTION FOR INDIAN AUTOMOBILE MANUFACTURING SECTOR: A CASE STUDY

In Indian Automobile Industry for heavy & commercial vehicle segment, manufacturers always face the major problem of supply chain management. As manufacturer follows any kind of solution scheme, they do not find very improved results, so for Indian condition an innovative solution of supply chain is required. The study is based on using In Bound & Out Bound Strategy together providing an edge to come over the Supply chain management problem.