Indian Automobile Research Articles

A Study on Formation of Candlestick Chart Patterns with Respect to Indian Automobile Sector

A Study on Formation of Candlestick Chart Patterns with Respect to Indian Automobile Sector

Relationship Between Working Capital Management and Profitability of Indian Automobile Manufacturers

Relationship Between Working Capital Management and Profitability of Indian Automobile Manufacturers

Bharat Forge: entrepreneurial leadership triumphs disruptive times

Theoretical basis There had been many pieces of research on international expansion approaches, and they continued to grow. However, research about the firms belonging to emerging nations and that went global were still in the early stages. It had been argued that most theories on international expansion had focused on explaining the internationalization of large firms, majorly originating in developed countries. This case study offers an intriguing reading about an Indian MNC, successfully entering the developed markets and competing thereof amidst tough and complex world. Moreover, the leaders like Baba Kalyani met the stiff challenge from complexities and disruption successfully through entrepreneurial mindset. The case study offers insights into “Creating Value Through Entrepreneurial Leadership Framework”. Research methodology The case study has been developed through secondary data sources. The published online resources, the firm's annual reports formed the basis of the research work. Author accessed online news articles, auto component industry experts' views and reports from global consultancy firms, and auto industry body such as SIAM (Society of Indian Automobile Manufacturers) reports helped the research. The views and interviews by promoters of the company are available online for deeper insights and analysis. Case overview/synopsis An Indian multinational, Bharat Forge Limited (BFL), was a shining example of achieving global manufacturing standards through perseverance and entrepreneurial leadership. For more than the past four decades, BFL faced complexities, uncertainties and disruptions multiple times, and every time, the business world saw a resurgent company, Bharat Forge. The company achieved growth through diversification, related and unrelated, acquisition, product innovation, portfolio expansion and expansion in domestic and global development. Competitive market, economic slowdown, innovation and technology disruption had not deterred BFL from growing into a worldwide auto component giant. BFL overcame all hurdles with grit and enterprise. It achieved a paradigm shift with over half the revenue from non-automotive sectors such as defence, electric vehicle components, e-mobility, power electronics and aluminium light-weighting. Complexity academic level This case is planned for MBA students, primarily in the second half of the course curriculum. It can be executed in marketing, strategic marketing and strategic management courses. The conceptual framework pertaining to corporate strategy, global expansion, diversification, product development, innovation, disruption, market development and entrepreneurial leadership can be taught through the case. The case is suitable for MBA executive students as well, in courses mentioned above in addition to courses such as strategic leadership.

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

Unfolding the Linkage Between SCM Practices and Customer Responsiveness in Indian Automotive and Aerospace Manufacturing Firms

The study examines how the supply chain management (SCM) practices impact customer responsiveness, and the same has been tested empirically with the help of a conceptual framework based on a literature review. Previous studies on the relationship between supply chain variables and competitive advantage have been presented earlier with variables including customer satisfaction, quality and flexibility. Still, there is a shortage of literature on customer responsiveness. This study attempts to conduct a structured study well supported by the existing literature to establish the mentioned linkage. The study sample includes 433 employees from 10 Indian automobile and aerospace manufacturing organizations, and the responses have been analysed with structural equation modelling (SEM) and bivariate regression. The study establishes the linkage between SCM practices and customer responsiveness. The results infer that supply chain practices are antecedents to customer responsiveness. The study has also scrutinized the specific items of SCM practices construct that highly influences customer responsiveness. This study also highlights and identifies the research on the linkage between SCM practices and customer responsiveness in the Indian context. For practitioners, this study offers advice for effective policymaking to have more excellent customer responsiveness by concentrating on the specific elements of each SCM practice.

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)

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.

Comparative Analysis of Consumer Preference and Buying Patterns- Evidence from Indian Automobile Industry

This study provides the reasons for the consumer buying process of Indian automobile industry .It is noted that Maruti Suzuki expects Indian passenger car market to reach four million units in 2020 from 1.97 million units in 2014-15. The Hyundai motor India Ltd has stated that India is a key market for the company, not only in terms of volumes but also as a hub of small products for exports to 92 countries. In this background, this article examines the customer satisfaction for the Maruti Suzuki and Hyundai Car Industry. The study found that the automobile companies if wants to retain their customer for long, should focus on appropriate marketing mix. The comparative study states that Maruti Suzuki have better network than Hyundai. The conclusions of this study enrich the options available to deal with customer satisfaction with innovative strategies.

An Analytical Study of Solvency, Liquidity and Bottom Line, of Listed Indian Automobile Companies

Sustaining concord among bottom line (Net Profitability), solvency and liquidity is acutely necessary for stable and holistic growth and development of every business. Liquidity, Profitability and Solvency (LPS) of every business is significantly afflicted through internal & external environmental factors such as economic fluctuations, ups and downs in business cycle, product life cycle, and pandemic situations of so and so forth. Continuing business, facing all above-mentioned conditions is a herculean task for each business. Marinating sustainable and holistic growth through attuning Liquidity, Profitability and Solvency (LPS) required systematic, professional and ethical approach pursued by management of the business. The basic objective behind this study is to analyze Liquidity, Profitability and Solvency (LPS) of selected automobile companies in India. It can be analyzed by evaluating the various ratios like profitability, liquidity and solvency. For this research study five years data viz. (2015 – 2020) of four giant companies were considered in automobile sector i.e., Maruti Suzuki, Hyundai India, Tata Motors Ltd and Mahindra & Mahindra Ltd. Researcher tried to find out correlation among liquidity, profitability, and solvency. Researcher found that that there is strong significant negative relationship between liquidity profitability and solvency.

Determinants of Capital Structure: A Study of Original Equipment Manufacturers from Indian Automobile Industry

The main objective of this study is to identify the most significant determinants of capital structure of original equipment manufacturers from Indian Automobile Industry which are listed on the Bombay Stock Exchange for the period 2003-04 to 2016-17. To achieve the objectives of the study, hypotheses were formulated on the basis of review of various theories of capital structure viz. Pecking Order Theory, Static Trade-off Theory, etc. and empirical evidences on the subject. Descriptive statistics, analysis of correlation, and panel data regression including regression diagnostics have been used as statistical tools to identify the most significant determinants of capital structure of the sample companies. STATA software was used for the analysis of the data used in the present study. The results of the analysis carried out in the study revealed that the most significant determinants of capital structure of the sample companies during the selected time period were profitability of company, size of company, liquidity position of company, tangibility of assets, and operating cash flow, while non-debt tax shield, and effective tax rate did not show any significant relationship with the capital structure of the companies under consideration during the period of study. The study also observed evidences in support of Pecking Order Theory, and Free Cash Flow Theory, but no evidences were found in support of Static Trade-off Theory. This study provides useful insight pertaining to the financing behaviour of automobile manufacturing companies in India.

Determinants of Capital Structure: A Study of Original Equipment Manufacturers from Indian Automobile Industry

Determinants of Capital Structure: A Study of Original Equipment Manufacturers from Indian Automobile Industry

Profitability variations and disparity in automobile sector: A case of leading Indian Automobile companies

The Indian automobile sector is the biggest market and emerging by displacing some advanced countries. The Indian automobile sector contributes positively and progressively to the growth and development of the Indian economy. The study is based on secondary data and considers the financial statements available on concerned websites. Ratio analysis, ANOVA (Analysis of Variance), CV (Coefficient of Variation), and rank correlation applied to analyze the data extracted from the financial statements of leading Indian automobile companies. The study reveals that there is a significant difference in the profitability of the Leading Indian automobile companies for the period 2011 to 2020. There is a moderate positive relational relationship between PBDIT(Profit Before Depreciation, Interest, and Tax) ratio and PBIT(Profit Before Interest and Tax) ratio and their variability while PBT ( Profit Before Tax) ratio and PAT ( Profit After Tax) ratio and their variability positively and highly correlated. This reveals that manufacturing expenses and depreciation do not affect profitability while profitability governs the interest and taxes of the leading Indian automobile companies. The study suggests a possible reduction in all direct and indirect costs, optimum cost of capital, or low cost of capital structure can be considered to avoid excessive burden against the profits of the negative performing leading Indian automobile sector companies.

Financial Performance Analysis of Selected Automobile Companies in India

The automobile market in India is the fourth largest in the world. According to the Automobile Mission Plan 2016-2026 it is projected to be third largest, contributing 12% to the GDP. Under the automatic route, 100% FDI is permitted along with full de-licensing (www.makeinindia.com). It is one of the core sectors and has rapidly grown post reforms. The demand for vehicles has grown leaps and bounds. The automobile sector in India experienced a slow down due to prolonged lockdown due to COVID-19. There was a 51% decline in the domestic sale of passenger vehicles according to the Society of Indian Automobile Manufacturers. The trend of slowdown was observed in this industry before lockdown also. After the announcement of phase-wise unlocking this sector experience a sharp rise in the demand. In this paper, the researchers are making an attempt to analyze the growth and financial performance of selected automobile companies. Based on the secondary data, the trend in growth quarterly sales, revenue and market cap has been studied. For financial performance, the selected ratios are been calculated and compared. The reasons for growth and financial performance has been identified and discussed by the researchers.

Analysis of Goods and Services Tax (GST) impact on Indian Automobile Industry

Indian automobile industry is one of the fast-growing industries in the world. It contributes significantly to global value chain. Growth of automobile industry is highly correlated with the development of other sectors in the economy. India is the world’s largest producer of heavy motor vehicles. The share of automobile sector in GDP is 7.1 percent and provides employment opportunities to over 35 million people and its share in total exports is 4.3 percent (Invest India, 2020). Increasing population and growth in per capita income have provided stimulus for growth of Indian automobile industry. The government of India envisioned to make India a manufacturing hub of automobiles; it brought many initiatives to make India an attractive destination for automotive companies. Among the initiatives taken by the government, the most important one is replacing the multiple indirect tax system with Goods and Services Tax (GST). GST is one of the biggest tax reforms in the history of Indian taxation. It impacted significantly almost all sectors of the economy. GST has also significantly impacted automobile industry. An attempt is made in this study to examine the impact of GST on production, sales, exports, registrations, crude oil imports, and FDI inflows to automobile and petroleum, and natural gas sectors. It is found that there are no significant differences in production, sales, FDI inflows to automobile sector after implementation of GST. However, it is noticed that there is a significant increase in the registrations and exports of automobiles after the GST implementation.

Indian Automobile Manufacturing Industry – A Study on the Financial Performance

Indian Automobile Manufacturing Industry – A Study on the Financial Performance

A study on liquidity assessment of auto ancillaries others in automobile industry

The primary aim of this paper is to analyse the liquidity assessment of Auto Ancillaries Others sector of Indian Automobile Industry. A Sample of 40 companies has been selected for the present study. The study period covers from 2004–05 to 2013–14. The result shows that As per Discriminant analysis of Auto Ancillaries sector was good in others.

An Integrated Model for Forecasting Indian Automobile

The automobile industry is one of India’s main economic sectors. In recent decades India has attracted many global players in the automobile industry. The industry has significantly benefited from an increase in the paying capacity of the consumers. This has contributed to increased competition in the market. Given that the automobile industry is a very complex process, a tool to predict the future of automotive demand from the modeling point of view is needed because of its high level of complexity and uncertainty. This study aims to introduce a novel integrated model with a combination of Adaptive Multiplicative Triple Exponential Smoothing Holt-Winters (AHW) method and Backpropagation Neural Networks (BPNNs) to improve the likelihood of predicting automobile sales accurately. This study is subject to continue validating a model in real-world automobile selling data against existing methods. This model also incorporates the linear and non-linear characteristics of AHW and BPNN, respectively to form a synergistic model. The proposed model has the higher capability to provide reasonable accuracy in forecasting future sales in terms of average prediction accuracy of 0.974637 than the existing methods namely BPNN 0.9483 and ANN 0.9275. For training and testing purposes, validation is done using the Indian automobile sales data. Finally, the regression fit shows that during the test stage in the car sales data for the period 2016-2017 and 2017-2018, the proposed integrated model is better than the conventional method.

Impact Assessment of CRM Practices on Supply Chain Management Performance in Indian Automobile Industry

Impact Assessment of CRM Practices on Supply Chain Management Performance in Indian Automobile Industry

English

English

A methodology for determining the optimal reverse flow capacities and the breakeven period for a multi products-component remanufacturing problem of an OEM

Original Equipment Manufacturers (OEM) that assemble multiple durable products are actively engaged in adopting remanufacturing practices. This study addresses the introduction of a new business proposal, which is carrying out remanufacturing of components from acquired returns by an OEM through the set-up of required Reverse Flow Capacities (RFC), which are capacities for dismantling the returns and capacities for remanufacturing various components. Hence, by incorporating the activity on remanufacturing of components, an OEM creates a new cheaper source for obtaining components, in addition to the conventional sources of manufacturing and/or purchasing. The components obtained from any of these three sources can be used to assemble the multiple durable products for satisfying demands. The study refers to this problem as “Multi Products–Component Remanufacturing (MP-CR) problem”. Furthermore, it is identified that the incorporation of MP-CR problem has tremendous potential in the Indian automobile sector. With these, this study address two strategic issues and an operation issue for the incorporation of new MP-CR problem to an OEM. The first strategic issue is the determination of RFC that must be set-up. This strategic issue is addressed in synchronize with the operational issue of determining the optimal Inventory & Production Plans (I&PP) for assembling multiple products for a given planning horizon. In addition, once the optimal RFC is determined, the second strategic issue is the determination of optimal period (called as Breakeven Period (BEP)), after which the OEM would reclaim the capital investment for setting-up the optimal RFC. In order to address these three interrelated decisions, a systematic methodology is proposed. In the proposed methodology, first an Integer Linear Programming Model is developed for the existing system of the OEM to determine the optimal I&PP. Next, this model is extended to determine the optimal RFC and corresponding optimal I&PP. The solution from both proposed models are used for obtaining the Breakeven Period (BEP), which indicates when the capital investments breakeven. Finally, the proposed methodology is demonstrated by developing suitable data observed from an Indian Automobile OEM.