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Evolution of Automobile Industry

Initial YearsManufacturing was licensed

High Customs duty on import

Steep excise duties &sales tax

2 Major players:Premier Automobiles Ltd& Hindustan Motors

1980s

Entry of MUL, better product,with government support

Sellers Market

Long Waiting Periods

Early to mid 90s

Sellers market and longwaiting periods

Delicensing in 1993

Removal of capacityrestrictions

Decrease in customs &excise

Auto finance boom- moreplayers (foreign banks &non banking companies,better schemes.

Mid 90s Early 2000s

Buyers market

Increase in Indigenization

Easy Auto finance

Manufactures diversifyinginto related activities:finance lease, fleetmanagement, insuranceand used car market

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AUTOMOBILE

2 WHEELER 3 WHEELER PASSENGERVEHICLECOMMERCIAL

VEHICLE

MOTORCYCLE SCOOTERS SCOOTERETTES MOPEDS

I.C.V. M.C.V. H.C.V.

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Trends in the automobile sector Production of automobiles

4.8 5.36.3

7.28.5

0

2

4

6

8

10

2000-01 2001-02 2002-03 2003-04 2004-05

m i l l i o n n u m

b e r s

Domestic Sales of automobiles

4.6 5.25.9

6.87.9

02

4

6

8

10

2000-01 2001-02 2002-03 2003-04 2004-05

m i l l i o n n u m

b e r s

Exports of automobiles

0.17 0.18

0.31

0.48

0.63

00.10.20.30.40.5

0.60.7

2000-01 2001-02 2002-03 2003-04 2004-05

m i l l i o n n u m

b e r s

CAGR 15.4% CAGR 14.2%

CAGR 39%Domestic Sales have been growing strongly

Exports have nearly tripled in the last 5 yearsLargest three wheeler market in the world

4 th largest passenger vehicle in Asia

4 th largest tractor in the market5 th largest commercial vehicle market in the world

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Segment wise market share

Growth Rates of different segments

23.5

11.314.3 14 14.2

05

10152025

CommercialVehicles

Passenger Vehicles

Twowheelers

Threewheelers

totalAutomobiles

Segments

4 y e a r

C A G R

Two Wheeler

ThreeWheeler

Passenger vehicles

CVs

The industry has not experienced much change in its structure over the last 6 years

Two- wheelers form the major share of domestic sales

Passenger vehicles lead the exports market(57.4%)

2 wheelers form the bulk of exports as well, but are losing share to Passenger vehicles

The growth in the two wheeler market is driven by the motorcycle market and isexpected to grow at 14-15 % YOY

78.63%

13.44%

4.03%3.9%

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The Key Players

Commercialvehicles

TATA Motors, Ashok Leyland, Swaraj Mazda,Mahindra & Mahindra ,Forcemotors, Eicher Motors

Passenger vehicle

TATA Motors, Maruti Udyog, Honda Motors, Toyata, Skoda, Mahindra &Mahindra, Daimler Chrysler, Hindustan Motors

Two Wheeler Hero Honda, Bajaj Auto, Honda Motors, TVS Motors, Yamaha , Kinetic Motors

Three Wheeler Bajaj Auto, Piaggio India

Bajaj Auto,24.4%

TVS Motors,17.7%

Yamaha,3.8%

Others, 5.8%Honda

Motors, 8.5%

Hero Honda,

39.8%

Maruti, 50.37

Hyundai, 19.17

Tata Motors,17.19

Honda, 5.33Others, 5.73

Two wheeler Passenger vehicle

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Favorable Demographics

Improving income curve Reducing interest rates

Cost Pressure

High ExpectationsInadequate Infrastructure Development

KEY CHALLENGESKEY ENABLERS

Key Focus Areas Product development ( includes collaboration, new products developed) Vendor base (quality of vendors, skill levels , size etc.) Manufacturing capability ( quality levels, productivity & skill levels, technology ) Service levels Supply chain Labor law Leverage IT

Key Features of Future Auto Policy Foreign Direct Investment Import tariff Incentives for Research and Development (R&D) Environmental Aspects

Other measures

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TOYOTA MOTORS

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HISTORY OF

TOYOT A

The history of Toyota started in1933 with the company being adivision of Toyoda Automatic LoomWorks devoted to the production of automobiles under the direction of Kiichiro Toyoda .Kiichiro Toyodahad travelled to Europe and theUnited States in 1929 toinvestigate automobile production

and had begun researchinggasoline-powered engines in1930.He was encouraged todevelop automobile production bythe Japanese government.

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HISTORY OF TOYOTA

o In 1934, the divisionproduced its first Type AEngine , which was used inthe first Model A1 passenger

car in May 1935 and the G1 truck in August 1935.

o After the world war II, commercialpassenger car production started in1947 with themodel SA

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The Crown became the firstJapanese car to be exportedto the United States andToyota's America andBrazilian divisionso Toyota Co. was established as an independent andseparate company in 1937. Although the companyname was changed in order the pronunciation. Toyota is considered luckier than Toyoda in Japan, Toyotabegan to expand in the 1960s with a new research anddevelopment facility, .The first Toyota built outsideJapan was in April 1963, at Port Melbourne in Australia ,

other countries.

HISTORY OF TOYOTA

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The origins of Toyota

Toyota Motor Corporation was originally amachine manufacturing company calledToyoda Automatic Loom Works, Ltd. andwas owned by Sakichi Toyoda. But it washis son, Kiichiro Toyoda who branched outinto automobile manufacturing. The first

type A engine was created in 1936 and therest as I said in history.

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Vision and Mission

Vision is to be the most respected andsuccessful enterprise, delighting customers witha wide range of products and solutions in theautomobile industry with the best people and thebest technology".

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Vision and Mission

Mission of Toyota is to provide safe & sound journey. Toyota is developing various newtechnologies from the perspective of energysaving and diversifying energy sources.Environment has been first and most importantissue in priorities of Toyota and working towardcreating a prosperous society and clean world

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Core Values

To achieve our Vision we abide by our Corevalues. World class product quality.

Achieving the ultimate goal of completecustomer satisfaction.

Fostering the spirit of Teamwork

Inculcating ethical and honest practices

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T OYOTA P RODUCT

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T OYOTA P RODUCT

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T OYOTA S PORT C AR

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QUALITY POLICY

Toyo ta w i l l s t r ive to m eet cu s to m er ' s exp ec tat ions b y p rov id ing w or ld-c lass p ro du c ts and s erv ices th rou gh to ta l em ployee com m i tm en t and c on t inuou s improvemen t

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BASIC CONCEPT OFQUALITY ASSURANCE

Toyota purchases components from as manyas two hundred suppliers it is very difficult toconduct detailed acceptance inspection.Therefore, in order to secure quality of thecomponents it relies on the manufacturing andassembling process of these components for

excellent process capability.

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Achievements & Milestones

Toyota Motor Corporationbecame the world's biggest car maker by volume

40,000 Corollas Toyota hassold in India over the last fiveyears

Camry, Corolla, Prado and

Innova are the successful carsof Toyota on Indian roads

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Future plans of Toyota Motors

Toyota to Make South African Subsidiary

Toyota will Develop Personal Transport Assistance

Toyota to Acquire Land for New Plant in Brazil

Toyota also plans to develop and launch a small car for the BRIC markets by 2010.

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FINANCIAL STATUS OF THE COMPANY

(Fiscal Year : April 2009- March 2010 )

Number of employees 316,121

Net revenues 26,289.2 billion yen

Income before taxes 2,437.2 billion yenNet income 1,717.8 billion yen

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OBJECTIVE OF COMPANY Improve Quality Enhance Efficiency Minimize Cost Increase Productivity Over the previous years, the company has put in its

best efforts to manufacture quality cars designed for its customers. To improve their efficiency, thecompany gives great importance to its humanresource as the company believes that satisfied andquality conscious team can produced qualityproducts.

The company is using the philosophy of Kaizen for continuous improvement. It has become a way of lifefor the management of the company by doing these

efforts towards their objectives.

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CONCLUSION I realize that Toyota so care about their customer

and Quality, that's why Toyota is very famous ,and made its brand name. Toyota has created anew dimension in the field of automobile

business. It has understood the needs of thecustomers and has made a mark for itself bymanufacturing small, high performing, defect freecars. The story of Toyota is one of anextraordinary group of entrepreneurs andengineers who believed in the power of innovation and in making miracles everyday

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THANKS