Emerging Countries and Manufacturing IT Solutions Will Shape the Automotive Industry Landscape

1© ARC Advisory Group

Emerging Countries and Manufacturing IT Solutions Shape the

Automotive Industry Landscape

Ninth ARC India Forum, Pune August, 2011Rajabahadur V Arcot

Kishore M Karandikar

Vice President & GM

ARC Advisory Group

[email protected]


AgendaAgenda Automotive Industry Status in Emerging Countries

including India• Global Automotive Industry Landscape• Global Automobile Sales Outlook India & Automotive• India & Automotive Industry - Trends

Manufacturing Industry Continues to Evolve • Invention Based & Basic-needs driven Manufacturing

(Europe & NA)• Convergence of Information and Communication

Technologies (Japan & Asian Tigers) • IT Enabled Manufacturing – IT Everywhere• Manufacturing Evolution

Emerging Countries and Automotive Industry• LEAP Manufacturing


Automotive Industry Status

in Emerging Countries including India


GLOBAL AUTOMOTIVE INDUSTRY Landscape

Source: Global Auto Report, Published by Scotia Bank Group


Global Automobile Sales Outlook

Based on Global Auto Report, Scotia Bank Group

6.91

10.45

15.0717.68

22.47 23.08

26.60

30.67

35.35

32.29

38.7437.26

32.8234.33

37.05 36.38 35.30 33.75

0

5

10

15

20

25

30

35

40

45

1990-99 2000-07 2008 2009 2010 2011 2012 2013 2014

MIL

LIO

NS

OF

UN

ITS

ASIA REST OF THE WORLD


India & Automotive Industry – Present LandscapeIndia & Automotive Industry – Present Landscape

Asia’s third-largest Private

Vehicle market

Globally Fourth Largest

Commercial Vehicle Market

Emerging as Center of

Excellence for Compact Cars

Globally Second-

largest Two-Wheeler Market

Globally Fifth Largest Bus and Truck Market by

Volume


India & Automotive Industry - Trend India & Automotive Industry - Trend

Expected to contribute 10 percent of India’s GDP in the next 5-6 years

Emerging as an exporter of automobiles and auto components


Automobile Production TrendAutomobile Production Trend

CAGR 13.3%


Automobile Export TrendAutomobile Export Trend

CAGR 24.5%


Automotive Hubs in India


Other Leading OEMs


Manufacturing Industry

Continues to Evolve Invention Based & Basic-needs driven

Manufacturing (Europe & NA)Higher-order wants driven

Manufacturing and Manufacturing Deconstruction (Japan, Asian Tigers)

Factory of the Future / Smart Manufacturing - IT Enabled (Emerging Economies can leapfrog Manufacturing)


Invention Based & Basic-needs driven Manufacturing (Europe & NA)

1825

Steam Engine

1769

Four Stoke Engine

1862

Electric Telegraph

1809

Automobile

Airplane

Electric Bulb

Telephone

1870

1879

1885-86

1903

Transcontinental Railway

1869

First Public

Railway

1904

Triode

Invention based manufacturing Basic-needs driven invention – mobility, communication Started in Europe and NA

Focus: Produce, Meet Basic needs


Vacuum Tubes / Triodes Transistors Integrated Chips

1904 1947 1961

Radio Broadcasting Corporation of America Television Computer

1927 19461919

Higher-order wants driven application inventions – entertainment, computing, analysis

Expanding applications – Convergence of Information & Telecommunication Technologies

Manufacturing deconstruction Emergence of Asian Tigers

Convergence of Information and Communication Technologies (Japan & Asian Tigers)

Invention NA & Europe

Production Asia


IT Enabled Manufacturing – IT EverywhereIT Enabled Manufacturing – IT Everywhere

IT in Design

IT in Maintenance

IT in Operations

ARC’s CMM Model

MES

FA

PLM


Manufacturing Evolution Manufacturing Evolution


Benefits of Information and Intelligence Enabled Smart Manufacturing Benefits of Information and Intelligence Enabled Smart Manufacturing

Become more agile and responsive Reduce design-engineer-make cycle time Reduce capital expenditure Reduce operational expenses Achieve internal and external collaboration Achieve excellence in design, operations, and

maintenance Gain time-to-market advantages Emerge as a center of automotive excellence

and innovation Examples: Instrumentation; Automotive


The Future of the Automotive Industry


Emerging Countries and Automotive IndustryEmerging Countries and Automotive Industry

Right Chemistry Exists

• Emerging Countries are Experiencing Economic Growth

• Demand for Automobiles is Increasing

• Automobile & Auto Component Industries are Expanding

• Industry Ecosystems are Emerging and Companies are Becoming Global Sized

• Technology is Available

• Emerging Countries are well positioned to Leapfrog


Emerging Perspective Emerging Perspective

+

= Emerging Countries and Manufacturing IT Solutions will Shape the Automotive Industry

Landscape

Shifting Economic

Power+Changing

Demographics + Business Compulsions

Powerful New IT

Capabilities


LEAP Manufacturing Technology and Business Practices for World-Class ManufacturingLEAP Manufacturing Technology and Business Practices for World-Class Manufacturing

Leading-edge• Innovative• Technology-forward

•Mobile, Social, Cloud, Model-based, Virtual, PLM, MES, etc.

• Collaborative, Integrated

• Performance driven

Efficient• Profitable• High Quality• Compliant• Safe & Effective• Local/Regional

Agile• Responsive

•Collaborative, Networked, Pull-based, Interactive

• Flexible, adaptive, changeable

Progressive• Sustainable

•Energy, Carbon, Social, Water, Waste, Closed Loop

• Responsible

Companies In Emerging Markets Can Jump To A Market Leadership Role

LEAPMfg


RecommendationsRecommendations

Leapfrog and take the path of LEAP Manufacturing

Invest in Technology Solutions


Thank You.Thank You.For more information, contact the author at [email protected] or visit our web pages at

www.arcweb.com

Emerging Countries and Manufacturing IT Solutions Will Shape the Automotive Industry Landscape

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