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GENERAL MOTORS - INDIA

Submitted to : Prof Peeyush Mehta

GROUP - 3 (VLMP 2012-13) Vivek Deshmukh ( Reg No 09) Chetan Patil (Reg No 16) Ravi Chandrawanshi (Reg No 21) Sharad Katwa (Reg No 27) Sitikantha Das (Reg No 28) Sridhar Prasad V (Reg No 29)

CONTENTS :
INDUSTRY ANALYSIS PORTER 5 FORCE ANALYSIS GLOBAL OPERATIONS BUSINESS STRATEGY OF GM INDIA BUSINESS MODEL GM IN INDIA

MANUFACTURING STRATEGY IN INDIA


OPERATION MANAGEMENT

FOUR WHEELER INDUSTRY TREND IN INDIA


Passenger Vehicles
3,000,000

2,500,000
2,000,000 1,500,000 1,000,000 500,000 0 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Sales In Crores
300000 250000 200000 150000 100000 50000 0 2006-07 2007-08 2008-09 2009-10 2010-11

PORTERS FIVE FORCE ANALYSIS OF AUTO INDUSTRY


Barriers to entry:

High : Low Margin, Technology & Capital Intensive

Threat of Substitutes: Mild : Upcoming Metro networks, Improved Bus service

Competitive Rivalry: High : 9 equally powerful OEMs

Buyers Power: High : High Awareness, Multiple Options available

Suppliers Power: Low: Global Supplier Base, Many Local Autocomponent industry.

BUSINESS MODEL GENERAL MOTORS

GENERAL MOTORS INDIA - BUSINESS STRATEGY

Competitive Advantage:

Technology and Innovation Beat with xSDE Engine for India market Customer Group: Middle class and Upper middle class Competition : Honda / Maruti / Hyundai/ Tata / Toyota / Mahindra /Volkswagen Core value proposition: Product Differentiation

PRODUCT PORTFOLIO IN INDIA


HATCH BACK Chevrolet Aveo U-VA Chevrolet Spark Chevrolet Beat SEDAN Chevrolet Optra Chevrolet Cruze Chevrolet Aveo MULTI UTILITY Chevrolet Tavera SUV Chevrolet Captiva

VALUE

COMPETENCIES

ASSETS

PROCESSES

GM in INDIA
Post liberalization : -Mfg plant : at Halol, Gujarat. -Entered with Opel brand in 1996. -Capacity at present : 80K per annum. Focused on Chevrolet brand - Models: Tavera, Cruze, Optra & Aveo. Mfg strategy : High level of manual content. -BIW (Body in white), paint shop and vehicle assembly. Powertrain : Sourcing strategy - Hatch back and sedan cars - Sourced from Korea. - Tavera : Developed vendor in India.

MANUFACTURING STRATEGY
Capacity Analysis
90000 80000

Time for Investment

70000

60000

50000

40000

30000

20000

Demand

10000

0 1996 1998 2000 2002 2004

MANUFACTURING STRATEGY
Site selection: Pune, around 90 acre land Investment: 1400 Cr Sizing: 160 K car assemblies/annum Process technology : Press shop skin panels BIW (Body in white) Paint Vehicle assembly. Line design based on Lean manufacturing principles.

MANUFACTURING STRATEGY
Outsourcing: Powertrain from Korea. Services Logistic + facility maintenance + die maintenance Flexibility (Economies of Scope): Flexible to produce 2 models : Beat and Spark. No setup change involved at assembly line. Recently invested Rs 80 Cr to accommodate sedan cars.

MANUFACTURING STRATEGY
Innovation: Designed xSDE SMARTECH engine for India market. Powertrain shop in Pune: 2010 Capacity : 160K Investment : 800 Cr Process strategy : High tech machine shop for 3Cs - Cylinder block - Cylinder head - Crank shaft Entirely automatic

MANUFACTURING STRATEGY Salient features: Powertrain shop


Flex level 4 plant : Highest level of flexibility so far.

Absolutely zero setup change time among variants. Temperature controlled shop 21000sqm : First and only plant in India in this industry. Focused only on manufacturing activities. High level of outsourcing of technical services. Again first time in India. Operating with 30 % less manpower (industry average) e.g. Tool management, chemical management, gauge management & fixture management

Logistic services: outsourced.

Operation Management
Operating principles: GMS - Global Manufacturing System

THANK YOU