This paper follows a top down approach to find investment opportunities in the publicly traded equities from the automobile sector. Between the facts that India is one of the fastest growing economies in the G20 and India?s under-developed public transportation system, the industry is expected to grow rapidly and offer multiple investment opportunities in both the private and public markets. The Indian automobile sector contributes to 7.1% of the Gross Domestic Product (GDP). The article narrates the transition from interfirm competition to cooperation and aims at finding out how management innovations by both the partners can help reduce conflicts of interest, avoid cannibal-ization of the products of individual firms and derive mutual benefits by aligning their individual targets to a common goal of market success. It analyzes the impact of Hero Honda case, in detail, to showcase how a local manufacturer can team up with a global player and still achieve a synergy between their core competencies for enhancing efficiency, productivity and quality. This article gives a brief overview of the Indian two-wheeler industry and presents a glimpse of the IJVs therein. Of all IJVs, the partnership between Hero and Honda has been the longest and perhaps the most remarkable too. A key factor behind the creditable progress of this industry has been the operation of several international joint ventures (IJVs) such as Kawasaki Bajaj, TVS Suzuki, Kinetic Honda and Hero Honda. India has now emerged as a global leader in two-wheeler production and trade. During these eventful years, it has experienced great advancements in technology, tremendous increments in production volume and opening up of the market for global trade. The Indian two-wheeler industry has undergone a long journey since its humble beginning in the late 1940s.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |