The report provides a consolidated preview of the external environment of Ashok Leyland and the Indian automobile industry. This study will take us through the evaluation of external factors using EFE matrix, to the comparison of the company with its competitors (CPM) and study the incentives given by the government to encourage the expansion of the Indian automobile industry.
The Indian Automotive Industry after de-licensing in July 1991 has grown at a spectacular rate on an average of 17% for last few years. The industry has attained a turnover of USD $35.8 billion, (INR 165,000 crores) and an investment of USD 10.9 billion. The industry has provided direct and ...view middle of the document...
Ashok Leyland is an exclusively heavy vehicle manufacturing company situated in Chennai and was initiated in the year 1948. It is one of India's biggest producers of heavy vehicles such as such as trucks, buses, military vehicles and also the second biggest commercial vehicle firm in India heavy vehicle division with a market share of around 27%. Ashok Leyland is also renowned for producing auto spare parts and engines for marine and industrial submission. It transacts around 55,000 heavy vehicles and 8,000 engines every year. Ashok Leyland registered a net profit of ` 190 crores in the FY 2009. Ashok Leyland makes
• Defense vehicles, and
As of 20-March-2007, the company has signed MOU with Harayan Government to setup Driver Training Institute at Kaithal.
The company already has 2 institutes as below:
• NDTC, near Salem in Tamil Nadu
• Burari Driver Training Institute – joint venture with Delhi Government.
Against the backdrop of the sharp slump in demand for commercial vehicles, during 2008-09, Ashok Leyland registered sales of 47,118 medium and heavy commercial vehicles (M&HCV), 37.5% less than in the previous year. This includes 16,049 M&HCV buses and 31,069 M&HCV trucks respectively, 8.7% and 46.3% less than in the previous year.(IBEF.org)
The company’s vision is to be among the top Indian corporation acknowledged nationally and internationally for:
* Excellence in quality of its product
* Excellence in customer focus and service
Be a leader in the business of commercial vehicles, excelling in technology, quality and value to customer fully supported by customer service of highest order and meeting national and international environmental and safety standards is the company’s mission.
The company’s main objectives are
• To offer world class technology that is relevant and affordable to the Indian customer
• Their primary concern by adopting technologies that provides value to the customer in an atmosphere enabling creativity and innovations.
• They also want to create innovated technology in their vehicle which will reduce environmental pollution this objective is apart from their business to take social responsibility.(ashokleyland.com)
The major Heavy vehicles manufactured by Ashok Leyland are:
• Cargo 1512,
• Cargo 1614,
• Hippo Tipper,
• Hippo Haulage,
• Coal Carrier,
• Taurus Tipper,
• Titan Double Decker,
• Cruiser Luxury Coach,
• Viking/ Cheetah and
• Viking Super (CNG)
With passenger transportation options ranging from 19 seaters to 80 seaters, Ashok Leyland is a market leader in the bus segment. The company claims to carry over 60 million passengers a day, more people than the entire Indian rail network. In the trucks segment Ashok Leyland primarily concentrates on the 16 ton to 25 ton range of trucks. However Ashok Leyland has presence in the entire truck range starting from 7.5 tons to 49 tons. (Ashokleyland.com)
External Environment Analysis