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Mahindra & Mahindra: Auto Industry Insights

This document discusses the strategic human resources plan of Mahindra and Mahindra, an Indian automotive company. It first provides an overview of the growing Indian automobile industry, noting increasing domestic sales, foreign investment, and production figures. It then discusses Mahindra and Mahindra's presence in automotive and farm equipment, with various product lines and annual sales. The document goes on to identify key growth drivers for the industry like rising consumer demand, government support, and global expansion opportunities. It outlines Mahindra's business strategies to maintain leadership in key product categories, develop new technologies, and increase quality and efficiency. Finally, it introduces the need for an HR strategy framework to align the organization's structure, competency development

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Inderjeet Paswan
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109 views7 pages

Mahindra & Mahindra: Auto Industry Insights

This document discusses the strategic human resources plan of Mahindra and Mahindra, an Indian automotive company. It first provides an overview of the growing Indian automobile industry, noting increasing domestic sales, foreign investment, and production figures. It then discusses Mahindra and Mahindra's presence in automotive and farm equipment, with various product lines and annual sales. The document goes on to identify key growth drivers for the industry like rising consumer demand, government support, and global expansion opportunities. It outlines Mahindra's business strategies to maintain leadership in key product categories, develop new technologies, and increase quality and efficiency. Finally, it introduces the need for an HR strategy framework to align the organization's structure, competency development

Uploaded by

Inderjeet Paswan
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

Strategic HRM

Mahindra and Mahindra - Automobiles

Current Business Environment


Automobile Production and Exports Market Overview

The industry turnover is estimated to reach US$ 145 billion by 2016. CAGR from FY05 to FY10 was 10.7 % Domestic Sales CAGR was 26.8% YOY for FY10

US$ 4,710 million - FDI during the 2000 and 2010


FDI inflow in 20092010 for the auto components sector was recorded at US$ 1.2 billion

Market Size Estimates of FY 2010

Automobile Production and Exports

Two wheelers 10 million units Passenger Vehicles 2 million and UVs 0.2 million Commercial Vehicles 0.55 million Three Wheelers 0.8 million Tractors 0.27 million Though Tractors do not come into the automotive production, it comprises a major part of M&M 2 Group 6 - Automobiles 30-10-2011

Mahindra and Mahindra : Auto and Farm Sector


12.5 Billion Group Over 30 Companies, Founded in 1948 by Keshub Mahindra Made an impressive foray into new products and markets with acquisitions

4th Largest Tractor Company


Annual Sales of 80000 units Recently acquired Tractors limited Punjab

Host of successful models like Scorpio, Xylo and Maximo


Annual Sales of about 0.4 million units Acquired Reva Electric Cars Also present in CV space with Mahindra Navistar Started in 2008 with the acquisition of KML Annual Sales of about 80,000 units Has launched a bike called Stallio Notable presence in scooter space with 4 models Group 6 - Automobiles 30-10-2011

Has a unit in China and exports to other developed countries like US, Canada and UK Started in 1954 in Indonesia Global presence across 90 countries Annual Sales of about 0.1 million units Currently concentrating on producing eco-friendly technology 3

Growth Drivers and Consequent Business Strategy


Growth in Roads

Cost Competitiveness

Labour costs lower than 45% compared to OECD Sourcing from low-cost countries has increased

Developing unloading, conveyor, crushing, dust separation and bunker systems

Proximity to new markets

Indias proximity to emerging markets such as Asia and Africa is another advantage.

Increasing Consumer Demand

Growing Indian middle class to 550 million in 2030 Rising Rural Incomes
Easy Financing

New Product Development capabilities

India Automotive Hub

India now needs the next generation technologies to sustain the growth

Entry of foreign players

Interest loans have declined and access to credit has increased

Enabling Regulatory Environment

Reduction of Excise duties

A large no. of players of foreign players have entered both the OEM and the components space

Group 6 - Automobiles

30-10-2011

Growth Drivers and Consequent Business Strategy


Increasing Consumer Demand
Growth in Roads

Maintain Leadership position in India Utility Vehicles

Growing Indian middle class to 550 million in 2030 Rising Rural Incomes

Developing unloading, conveyor, crushing, dust separation and bunker systems

Tractors

Proximity to new markets

Indias proximity to emerging markets such as Asia and Africa is another advantage.

New Product Development capabilities India now needs the next generation technologies to sustain the growth

Enabling Regulatory Environment

Establish itself as a Global Brand Look for Alternative Technologies

Reduction of Excise duties

Entry of foreign players

Easy Financing

Cost Competitiveness

Interest loans have declined and access to credit has increased

A large no. of players of foreign players have entered both the OEM and the components space

Labour costs lower than 45% compared to OECD Sourcing from low-cost countries has increased

Raise its Quality reputation Increase Operational Efficiency

Group 6 - Automobiles

30-10-2011

HR Strategy Framework
Business Strategy Dimension (1) CSF for business Desired Role Related behavior (2) HR Strategies to align (3) Organization Structure Competency Development Competency and Rewards

Industry Growth Drivers

Group 6 - Automobiles

30-10-2011

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