The document provides an analysis of the automobile industry with a focus on comparing Toyota and Volkswagen. It outlines key details about each company's leadership, geographical presence, sales strategies, technology approaches, and financial performance. Both companies have grown significantly over the past decades to become leading global automakers. However, Toyota leads in hybrid technology and customer satisfaction while Volkswagen has strengthened in markets like China and focuses on diesel and gasoline engine improvements. The analysis concludes the automobile industry is expanding rapidly in India and abroad.
1. INDUSTRY ANALYSIS ON
AUTOMOBILE INDUSTRY
Akanksha Deshpande 16MBA003
Pranav Kenjale 16MBA025
Rishabh Sharda 16MBA048
Akash Gawande 16MBA074
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2. CONTENTS
▪ Industry Profile
▪ Company Profile
▪ Comparative Study
▪ Strategies adopted
▪ Conclusion
▪ Bibliography
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3. 3.4
10
FY16 FY20E
million
By 2020, India's share in the
global passenger vehicle
market to touch 8 per centfrom
2.40 per cent in 2015
Third-largest automobile
industry by 2016
Two wheeler production to rise
from 18.8 million in FY16 to 34
million by FY20E
World’s second-largesttwo
wheeler manufacturer
Passenger vehicle production
to increase from 3.4 million in
FY16 to 10 million in FY20E
Passenger vehicle production to
nearly triple by 2020E
INDUSTRY PROFILE
CAGR: 30.96%
CAGR: 15.97%
2.40%
8.00%
2015 2020
18.8
3
34
FY16 FY20E
million
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4. • Closed market
• Five players
• Long waiting
periods and
outdated models
• Seller’s market
• Joint Venture (JV):
Indian government and
Suzuki formed Maruti
Udyog; commenced
production in 1983
• Component
manufacturers entered
the market via JV
• Buyer’s market
• Sector de-licensed in
1993
• Major Original
Equipment
Manufacturers (OEMs)
started assembly
operations in India
• Imports permittedfrom
April 2001
• Introduction of value-
added tax in 2005
• More than 35 marketplayers
• Indian companies gaining
acceptance on a global scale
• Setting up of National
Automotive Board to act as
facilitator between the
government and industry
• Government has proposed
GST to support lower raw
material cost
• Launch of Automotive Mission
Plan 2016-26 in 2015
0.4 million
units (1982)
21.5 million
units (FY14)
Before1982
1983–92
11 million
units (2007)
0.6 million
units (1992)
2008 onwards
1993–2007
EVOLUTION OF THE INDIAN AUTOMOBILE SECTOR
24 million
units (FY16)
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7. Name of Company
Sales (in
Millions)
Revenue (in
Billion $) Country No. Of employees
Volkswagen Group 10.3 236.6 Germany 592,586
Toyota Motors 10.2 236.59 Japan 330,000
Daimler 3.0 165.8 Germany 284,482
General Motors 9.92 152.36 USA 216,000
Renault-Nissan
Alliance 8.47 151.82 France, Japan 450,000
Ford 3.2 149.56 USA 224,600
Honda Motor 4.36 121.62 Japan 199,368
Fiat-Chrysler 4.75 113.2 Italy, USA 228,690
BMW 7.71 102.22 Germany 122,244
Hyundai 5.16 81.32 France 184,804
TOP 10 COMPANIES
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9. Particulars Toyota Volkswagen
Established 1937 1937
Founders Kiichiro Toyoda German Labour Front
Headquarters Toyota, Aichi Prefecture,
Japan
Wolfsburg, Germany
Core Competency Continuous improvement German technology
Most Selling Models Toyota Corolla Volkswagen Beetle
Current CEO Akio Toyoda Matthias Müller
Company Overview
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11. OBJECTIVE
▪ Toyota : “Always better cars.” We continually
reinvent ourselves, introduce new technologies
and stay ahead of our competition.
▪ Volkswagen : Volkswagen wants to gain a position of
the world's leading manufacturer by using intelligent
innovations and technologies to shape customers'
satisfaction and quality
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12. LEADERSHIP AND
DIFFERENTIATION
▪ Toyota :
▪ Leadership
o World leader in hybrid electric cars
o Japan’s largest company
o World’s 8th largest Company
o Manufactured the highest selling car of the world; Toyota
Corolla.
▪ Differentiation :
o Toyota has 40 model Lines
o Toyota believes in hybrid technology
o Toyota is much better than Volkswagen in terms of
▪ Quality
▪ Dependability
▪ Customer Satisfaction
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13. LEADERSHIP AND
DIFFERENTIATION
▪ Volkswagen :
▪ Leadership
o Germany’s largest company
o World’s 7th largest Company
o Largest car manufacturer in the world.
▪ Differentiation :
o Volkswagen has 29 model Lines
o Diesel engine and improvements in the gasoline engines
o Volkswagen is much better than Toyota in terms of
▪ Mileage
▪ Affordability
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14. GEOGRAPHIES
24%
33%10%
15%
18%
Market Share of Toyota : 2016
Japan
North America
Europe
Asia
Others
North America is the largest
single market for Toyota
Toyota is 2.1 million units in its
home market.
Toyota sells its vehicles in
approximately 190 countries and
regions
Toyota also has a strong product
portfolio in Asian countries like
Indonesia, Malaysia, Philippines,
Taiwan, and India.
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15. GEOGRAPHIES
4.52% 6.52%
30.02%
55.44%
3.50%
Market Share of Volkswagen :
2016
Germany
North
America
Europe
Asia
Others
Volkswagen’s market share in Asia
Has increased compared to
European market on
Account of rise in sales in China
The company sold 3.98 million
vehicles in China in 2016, up
12.2% for the year
China could surpass Europe as
VW's largest market. The
company's Europe sales rose 4% to
4.21 million units in 2016.
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16. SALES AND MARKETING
STRATEGIES
▪ Toyota :
Toyota’s
Marketing
Strategy
Huge Dealership
Network Across
Globe
Use of traditional
advertising
Medium
Four Sales
Channel : Toyota
, Corolla, Toyopet
and Netz
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17. SALES AND MARKETING
STRATEGIES
▪ Volkswagen
Volkswagen
Sales and
Marketing
Strategy
BRAND DIVERSITY
IN THE
VOLKSWAGEN
GROUP
AFTER-SALES AND
SERVICE
DIGITALIZATION
IN GROUP SALES
CUSTOMER
SATISFACTION
AND CUSTOMER
LOYALTY
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18. TECHNOLOGY
Toyota :
Toyota Hybrid Synergy Drive :
▪ Toyota’s range of six hybrid cars encompasses small hybrids like
the Toyota Yaris Hybrid, family-sized cars like the Toyota
Prius and Auris Hybrid, and even estates like the Auris Hybrid
Touring Sports.
▪ It is the most popular hybrid system in the world, and has sold
more than seven million units since the Prius was launched in
Japan in August 1997.
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19. TECHNOLOGY
Volkswagen :
Diesel Engine and gasoline Engine Improvement :
▪ VW will be getting 50 miles per gallon or more in its
small cars in a few years, and its adoption of dual-
clutch transmissions and turbo- or super-charging is
being followed by many around the world
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20. TOYOTA
Strengths:
Hybrid technology
Ability to cope in crisis
Weaknesses:
Lack of protection against
changes in prices and demand
Opportunities:
Promotion of economical and
ecology-friendly cars
In crisis, lesser importance of
competitors
Threats:
Rapid increase of material
costs or decrease in supply
SWOT Analysis
TOYOTA
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21. VOLKSWAGEN
Strengths
A well structured umbrella brand
Strong presence worldwide
Well managed operations and R&D
Weaknesses:
Competition eating margins
Weak positioning in India
Opportunities:
Increasing fuel efficiency
Modern and innovative designs
Hybrid Cars
Threats:
Increasing competition
Different government rules in
different countries
Emission issues
SWOT
Analysis
Volkswagen
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22. GROWTH
Toyota Volkswagen
Revenue % 16-12 16-12
Year over Year -3.97 1.5 19.34
3-Year Average 1.1 67.67
5-Year Average 2.18 40.69
10-Year Average -0.53 46.33
Operating Income % 18.87
Year over Year -397.32 -48.96 5.39
3-Year Average -8.87 3.29
5-Year Average -18.4 0.58
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29. RECENT NEWS
Toyota :
▪ Mar 15, 2017 Toyota Kirloskar Motor launches the New
Corolla Altis - the Global Sedan
▪ Mar 09, 2017 Galaxy Toyota launches Road Safety
Project for school children in Montfort School
▪ Mar 01, 2017 Toyota Kirloskar Motor Registers 12%
Growth in the month of February 2017
▪ Feb 27, 2017 Toyota Kirloskar Motor takes one step
ahead in ensuring Clean Karnataka
▪ Feb 15, 2017 Toyota Kirloskar Motor gearing up to take
more competitive Environment challenges
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30. RECENT NEWS
Volkswagen :
▪ Volkswagen India registers sale of 3,965 cars in February
2017
▪ Marked 58% growth over the corresponding month of the
previous year
▪ Volkswagen Vento and Ameo now at DGS&D Rate
Contract
▪ Volkswagen India announces new product line-up for
2017
▪ Volkswagen India initiates Road Safety Awareness
Programme for schools in Pune
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31. CONCLUSION
▪ The automobile Industry is expanding at a faster
rate.
▪ A constant battle for number 1 position is going on
between Toyota & Volkswagen
▪ With the introduction of new cars in India, the GDP
share of Automobile sector is increasing.
▪ Foreign companies possess higher market share than
Domestic companies.
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