Automobile and 2 Wheeler New

Managerial Communication presentation
on
AUTOMOBILE AND 2
WHEELER
Presented by:
• Sushant Deo
• Kushal Modi
• Shalini Sarkar
• Vishesh Narang
• Jugen Seth
• Sakshi More
• Ronit Tripathi
Guided by:
• Prof. Shweta Shirolkar
CONTENTS:
1. Introduction
2. PESTLE analysis
• P- Political
• E- Economic
• S- Social
• T- Technological
• L- Legal
• E- Environmental
3. Porter’s 5 forces model analysis
• Competition in the Industry
• Potential of New Entrants
• Power of Suppliers
• Power of Customers
• Threat of Substitutes
4. Conclusion
3
INTRODUCTION
• Largest 2 wheeler manufacturing country in the world.
• 2 wheeler market primarily consists of motorcycle and scooters
segment
• 2 wheeler production is expected to grow 50.6 million units annually
by 2026.
4
PESTLE ANALYSIS
P Political factor
E Economic factors
S social factors
T Technological factors
L Legal factors
E Environmental factors
P POLITICAL FACTORS 5
• Political climate in a various countries producing and buying automobiles depends on policies on import, export and
manufacture of automobile components.
• Consists of various factors related to public affairs and their effect on the business organization.
• Indian government auto policy focused at promoting an integrated, phased and particular conducive growth of the
Indian automotive industry. Example-(https://e-amrit.niti.gov.in/home)
• Taxation policies of Indian government auto policy aims at promoting an integrated and conducive growth.
• In most countries, governments have issued regulations regarding the production of automobile parts to ensure the
safety of passengers.
• The administrations are also keen to restrict the ample usage of fossil fuels which create more pollutants.
E ECONOMIC FACTORS
Presentation title 6
• Economic factors are those which is influence by economic growth, interest rate, exchange
rate, inflation rate.
• Many Finance company laid easy installment rules with lower interest rate it will lead to high
demand in automobile industry.
• The income of people is one of the important economic factor which affects the demand of
industry. EXAMPLE: Electric two-wheeler sales surged 44% in October from the previous
month, rebounding from a period of flat demand. (Based on mint)
• In India, having your own automobile is still seen as a matter of prestige, hence if people are
not able to afford 4 wheelers, they shift towards 2 wheelers.
T TECHNOLOGICAL FACTORS
7
• The automobile industry is hugely dependent on innovative

technology to ensure the safety of the people.
• The companies need to concentrate on the reduction of emissions.

8
S SOCIAL FACTORS
• Indians prefer two wheelers because of their small manageable size, low
maintenance, and pricing and easy loan repayment.
• We don’t like to be time bound.
• We also like to have a little more freedom of travelling at our own pace.
• Other social factors include consumer’s family, small groups, social status
and roles.
L LEGAL FACTORS 9
• Many countries have strict laws to decrease the number of vehicles

on the street, which can help them to lower the air pollution level.
• During the forensic test of an accident, if it is proved that there was

any problem with the faulty parts or airbags, the company may have
to face legal proceedings.
E ENVIRONMENTAL FACTORS
10
• As emission from the vehicle is a concern for the environmental lists and
government.
• The governments of the countries are more willing to take up environmental

policies to decrease the pollution level.
11
PORTER'S 5 FORCES
1. The threat of new entrants
2. The bargaining power of buyers/customers
3. The threat of substitute products
4. The amount of bargaining power suppliers have
5. The intensity of the competitive rivalry

12
THREAT OF NEW ENTRANTS:
• Entry barriers are high.

• Huge investment
• Capita l investment is very huge in two wheeler industry.
• The biggest challenge is setting up sales & service center, which is very hard for a new entrant.
• Well established players are already existing.
• Industry is consolidated.
13
BARGAINING POWER OF
SUPPLIERS
• Since they change their model on going basis they create good relationship between their suppliers.
• Some of the components in two wheeler industry sellers have bargaining power:
• Steel
• Batteries
• Tyres & Tube etc.
• The automobile supply business is quite fragmented.
14
BARGAINING POWER OF BUYERS
• There are 5 to 6 big popular brands of two- wheelers are available.

• Nowadays people go to unique brands because of good service they provide after
purchase.
15
THREAT OF SUBSTITUTES
• Substitutes for this industry can be cars, electric vehicles, public transport and
taxi/auto.
• There are high manufacturing companies in India.
• Public transport in metros and tier 2 cities is also very good.
• There is a high scope of innovation in this industry as the technologies are ever
changing.
• The cost of switching to substitues is high(cars are costly and have maintainance
cost. Public transport is not readily available and takes more time, electric vehicles
are not competitive enough)
16
THE INTENSITY OF THE COMPETITIVE
RIVALRY
• Price, Quality of the products plays an important role for rivalry among competitors.
• Methods adopted to attract customers - Discounts, availability of loans, low rate of interest and long-
term warranties to attract customers.
• Each company in industry change the model on going basis to show differentiation in their competitors.
Presentation title 17
CONCLUSION
• Based on PESTAL Model we get brief idea about what decision is suitable for organization
and what not.
• PORTER’S five forces gives ideas about competitor’s perspective and industry
attractiveness in term of profitability.
18
THANK YOU

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Managerial Communication presentation

• Largest 2 wheeler manufacturing country in the world.

• 2 wheeler market primarily consists of motorcycle and scooters

• 2 wheeler production is expected to grow 50.6 million units annually

• The automobile industry is hugely dependent on innovative

• The companies need to concentrate on the reduction of emissions.

• We don’t like to be time bound.

• Many countries have strict laws to decrease the number of vehicles

• During the forensic test of an accident, if it is proved that there was

• The governments of the countries are more willing to take up environmental

1. The threat of new entrants

2. The bargaining power of buyers/customers

3. The threat of substitute products

4. The amount of bargaining power suppliers have

5. The intensity of the competitive rivalry

THREAT OF NEW ENTRANTS:

• Entry barriers are high.

BARGAINING POWER OF BUYERS

• There are 5 to 6 big popular brands of two- wheelers are available.

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