auto_industry-country_risks.pptVIP

RAW MATERIAL (STEEL) AVAILABILITY AND COST Thailand There is a domestic shortfall in steel production. Country dependant on steel imports. (40% of total consumption) Year H.R Coil Price (THB/kg) 2004 18.5 2007 18 2008 38 2009 28 * Source: Brazil Abundance of iron ore, coke. Availability of cheap labour Availability of modern production techniques. Steel industry is mainly export dependant Year H.R Coil Price (USD/kg) 2004 0.78 2007 0.71 2008 1.2 2009 0.933 * Source: , financial express VENDOR AVAILABILITY India Has got a good vendor base for automobile sector. The vendor bases are developed by existing companies like Maruti, Tata etc. Estimated Rs 26,000 Cr to be pumped into auto vendors by 2010. Country has developed as a supplier base for auto vendors for Global Auto Majors China Good vendor base low technology intensive components Have a good base for forging and casting products. Have a good supplier base auto electronic components - future trend VENDOR AVAILABILITY Thailand Competitive vendor base for manufacturing casting forging parts, stamping body parts, rubber and glass. Cost competitive suppliers for auto electronic components. These components are exported to Japan. Supplier base developed due to assembling plants of major automobile MNCs like Ford, GM, Chrysler, Mitsubishi, Honda, Toyota etc. Brazil New vendors developed by European car manufacturers after 2000. Good supplier base available for exhaust control components – future demand. Steel components are available at a cheaper price. AVERAGE OPPORTUNITY SCORE ANALYZING THE RISK SOCIO- ECONOMIC POLITICAL RISKS INDIA Uncertainties surrounding in the coming general election. Rising communal violence and terrorism incidents slow-down in government decisions due to political instability Labour unrest and industrial action Corruption and bureaucratic inefficiency Unexpected delays and cost-overruns due to Overlapping governmental jurisdiction