Automotive Industry Trends and Challenges

The assignment explores the current state of the Indian automotive industry, highlighting key trends such as advancements in autonomous driving technology, the rise of electric vehicles, and increasing focus on safety. It also delves into the challenges faced by the industry, including environmental regulations, competition from global players, and evolving consumer demands. The analysis provides insights into the future prospects of the Indian automotive sector and identifies opportunities for growth and innovation.

Reflective Assignment
Self-Introduction
I have done mechanical engineering from Hyderabad after which I joined the project management
course in this college with an aim to enhance my practical knowledge of the engineering projects so
that I can prepare myself for handling big automobile engineering projects. I want to work in a big
automobile manufacturing organization such as Honda, Ford, General Motors, and Volkswagen
groups and near future and develop my capability as a project manager who can efficiently
completely automobile company projects specially new product development as I like innovation
and new car models as well as the technology behind excite me. I am a very technology savvy person
and little reserved who spends most time reading auto magazines and my books. Despite being
reserve, I can gel well with people when I talk because I can understand their problems and
communicate well. This would help me manage teams on big projects. I have an experience of being
a part of a new product development project in an automobile company where I participated as a
trainee engineering in the operations team that was working on a new model development project. I
was involved in overseeing the activities involved in manufacturing and assembling of the new
automobile and checking if the parts used served well in terms of quality and fitting in the vehicle.
While working, I got to know project management as the person who guided me was the project
manager. I had asked him for guidance and he suggested project management certification.
Mega Trends and Challenges
I explored some trends in the autombile manufacturing organizations that are prevailing today.
Granularity is one such trend which is prevailing in target groups which is pushing companies to use
modularization in manufacturing so that they can produce specific vehicles and variants as per the
requirements of the target customers. However, this adds complexity to the manufacturing and
many companies need to integrate new technologies to enable high level of modularization which
can be expensive (Rieger, Scheef, Becker, Stanzel, & Zobel, 2005).
The importance of safety features in cars is also increasing as the regulators have become strict after
scandals like the 2015 emission scandal of Volkswagen. Thus, standards for safety, emission and
fuel efficiency are rising which pushes companies to use custom quality assurance processes in
Research and development (Lucky & Takim, 2015).
Another trend that is observed in the company is the increasing stress on the use of electronics
in the automobiles through the use embedded devices and software such as autonomous
driving, autonomous parking, infotainment systems, and so on. IOT technologies are being used
with the embedding of sensors and devices in automobiles which can enables vehicles
communicate with each other on road making it possible for companies to produce self-driving
cars (Sabadka, 2013).
When considering the industry structures, it has been observed that investments in original
equipment manufacturing are increasing and more and more industry alliances are emerging.
The OEM capabilities and industrial alliances today determine the dominant position of the
automobile organizations (Sarangi, Bano, & Pant, 2014).

For enhancing the manufacturing efficiencies, organizations are using shared platforms like
chassis and power trains such that automobile manufacturers can now design as well as build
engines and transmission equipments with focus on reliability, quality and style to maintain
consistency and quality of the vehicle (PREMALATHA, 2014).
Climate friendly manufacturing and car production is another prevailing trend as companies are
pushed by industry regulators to work on systems in order to reduce greenhouse gases emission
through production of more environment friendly vehicle. Electrical vehicles are replacing some
of the traditional engine based vehicles today as they cause fewer emissions and are more
environment friendly. However, this not just needs improvement in car but in the entire
infrastructure of a country where electrical cars may run. Considering the poor infrastructure of
India, this can be very challenging (Barthel, et al., 2015).
MACRO - ELEMENT Reference
Political Indian government automotive policies promote
integration and self-sustained growth of the industry.
Fuel policy demands meeting emission standards
from car manufacturers. 100% FDI is allowed in the
automobile industry.
(Tiwari,
2009)
Economic There are economic pressures so companies are
reorganizing their industrial structures especially
sales. Government supports exports with reduced
interest rates on financing and thus, companies are
doing well in exports. The economy is growing at a
decent rate of 8.5% and per capital income is also on
rise. Thus, buyer capabilities have increased and the
industries are seeing a rise in first time automobile
buyers.
(Verma &
Rathore,
2013)
Social With improved life style of people living in India, the
purchase of four wheelers has also increased and the
automobile organizations are seeing increase in their
customer base. Growth in urbanization puts India at
4th position in ppp index.
(Pooja,
2015)
Technology Newer technologies like self-driving vehicles and
electric vehicles have come up. Companies doing R&D
are supported through tax exemption of up to 150%.
(Tayal,
Sharma, &
Sharma,
2014)
Demographic Economy is growing and financial is available to (Sharma,

buyers easily. The average annual income of middle
class segment has increased which enables the
category of citizens purchase vehicles
2015)
Natural The infrastructure of the country is not efficient
which affects the use of automobiles. More
environment friendly vehicles are in demand
(Rieger,
Scheef,
Becker,
Stanzel, &
Zobel, 2005)
After studying Mega trends and challenges in the industry, I can say that the opportunities are ample
as the importance of new product development is rising with newer models and variant produced.
Increasing focus on R&D and new product development gives rise to newer projects that would
demand more workforces including those taking part in manufacturing process and those managing
this workforce. The project management certification with focus on automobile projects can be very
useful for me today as I would equip myself to assist the big companies on big automobile projects
using professional capabilities. I already have an experience of working on new product
development which would again help me get a job in project management for NPD in automobile
organizations. The challenges faced by companies due to modularization and restructuring of supply
chains further increase the importance of having efficient staff at higher levels of the organization
who take the right decisions. I can clearly see a good growth path for me in the sector with
engineering and project management skills combined. I can target companies to apply in based on
the recent trends in the industry. These would include companies coming up with new models and
variants more frequently and those involved in new product development and new technological
advanced in the industry. I would gain more of the technological skills in project management to be
able to assist the organizations and gain an edge over other job seekers. This is one area where I
need to gain more expertise.
Goals
My goals for my future development include:
Short term goals
 Learn technologies used in automobile organizations for project management before joining
a company
 Learn skills of project management through the research done on use of PM for automobiles
before completion of the curriculum
Medium term goals
 Get a job in a big companies in the new product development project within 2 months of
graduating

Long term goals
 Get to the senior management position in an automobile organization by the 3rd year of my
employment
 Get the project management certification and pass the project management professional
certification earning 100 PDU’s by 4th year of job.
Ethics and Professional Values
By the word ethics, I understand that if an activity is carried out such that it ensures that the needs
of stakeholders are met and at the same time they are not harmed in any way, the activity can be
called as ethical. I have developed my own way of practicing ethics and that is by thinking about the
whole community or the nation while operating and not just about self. I would ask myself questions
like - Is my action harming anyone? Is my action harming the environment? And eh satisfactory
answer will guide me on what is ethical and what is not.
I studied the literature on ethics and found that it is defined as moral principles that form a set of
customs and traditions that are derived from the social practices. Ethics have gone through
evolution over the past few years. Professional organizations have published some ethical codes
such as done by American Library Association in 1938 (Koehler, 2003).
Some professional values have been defined by Garda sociana in its declaration that can be useful in
understanding professional values. These include respect for dignity of every human, protection of
human rights, adherence to legalities, accountability for responsibilities and duties, adherence to
principles of proportionality and necessity, maintenance of confidentiality, opposition to the
unethical or illegal behaviour, delivery of obligations and commitments, acceptance of personal
responsibility for a development (Bryne, 2015).
The National Society of Professional Engineers (NSPA) defines codes of ethics for engineers and it
says that an engineer must have honesty, fairness, impartiality, equity, and dedication towards the
protection of the public wealth, welfare, and safety. While taking decisions, engineers can use
Josephson’s steps for taking ethical decisions which involves an understanding whether the product
has any colliding values between two organizations, then characters are reviewed based on respect,
trust, and citizenship and lastly, the decision is taken considering the fact that situation can
determine the future of the environment (Lawson, 2014).
In the automobile companies, ethical dilemmas are faced when companies have to decide between
the performance and the environment friendliness of a vehicle. For instance, petrol vehicles perform
better on roads but cause emissions that spoil environment. Considering these dilemmas, solutions
have been sought to solve them through new technological developments such as electric cars
(Krakoff, 2013).
Skill Assessment
SKILLS RANK
1 Analytical skills 1 2 3 4 5 6 7

2 Creative thinking skills 1 2 3 4 5 6 7
3 Critical thinking skills 1 2 3 4 5 6 7
4 Decision making skills 1 2 3 4 5 6 7
5 Interpersonal skills (talking, listening, networking etc) 1 2 3 4 5 6 7
6 Organising skills 1 2 3 4 5 6 7
7 Planning skills 1 2 3 4 5 6 7
8 Problem Solving skills 1 2 3 4 5 6 7
9 Self-confidence 1 2 3 4 5 6 7
10 Teamwork 1 2 3 4 5 6 7
11 Technology (IT - computers) 1 2 3 4 5 6 7
12 Time Management skills 1 2 3 4 5 6 7
13 Verbal communication skills 1 2 3 4 5 6 7
14 Written communication skills 1 2 3 4 5 6 7
SKILLS Definition Reference
1 Critical Thinking It is an internal motivation to get engaged with the
problems for taking decisions using critical mind
(Lai, 2011)
2
Analytical
A person with analytical skills can identify as well as define
problems , extract information from available data, and
come up with solutions to problems identified
(Royer, 2012)
3
Interpersonal
Interpersonal skills are those skills that help a person to
communicate effectively with other individuals or groups
of people.
(Shepherd,
Braham, &
Elston, 2010)
4
Team Work
A person good in team work is able to work well in groups
and collectively achieve a common goal
(Rico, Hera, &
Tabernero,
2011)
5
Technology
A person having good command is the one having good
knowledge of how IT systems work
(Dupont,
Instance, &
Benavides,
2012)

I have chosen these skills as top skills as they are needed in most jobs and they ensure that the
person performs at work. As per the job descriptions and advertisements, the key skills needed
for a project management profile in companies include planning, decision making, presentation,
team work, project management knowledge, IT skills, critical thinking, leadership skills, and
interpersonal skills. The job descriptions and job advertisements also reveal that IT skills, team
skills, and interpersonal skills are valued by the organizations looking for people to manage
their projects. The companies have mentioned these as their requirements in the job
advertisements as well as the job descriptions reveal applications in the work scenario. These
three skills match with my top skills but critical thinking, decision making, and leadership skills
are some skills that I am not very good at and thus, I need to develop them. For developing
these skills, I will read books, take online courses on the subjects and would try to interact more
with my fellow students, teachers, as well as the industry experts outside the education
environment to learn and practice these skills. I will get a practical exposure in the company I
would work for and I would take this opportunity to practice what I learnt in college and from
courses.
5.1 Improvements
Skills Deficiencies Why Solution
1 Critical Thinking I cannot analyse arguments very
critically
I will learn critical thinking from
books, courses and would practice
application with peer discussions
2 Decision Making I cannot take decisions fast As I improve my critical thinking
skills, I will work on problem
solving and decision making skills
by learning strategies that I will also
practice.
3 Leadership I do not tend to take the lead but
follow guidelines
I will try to take initiate to lead
groups in future assignments
6 – Strength and Weakness Analysis
Strength I have good Communication and Interpersonal Skills, Good team player,
Have good knowledge of technology and I am analytically sound. These

strengths would help me perform better and ensure projects are
executed effectively
Weakness I take time to take decisions because of lot of analysis that I do before
taking decisions because of which my leadership skills are also affected
as I give opportunity to others who initiate and lead while I remain with
the team as a co-worker. One reason why I take time to decide is lack of
critical skills which I am working to develop.
References
Barthel, K., Böhler-Baedeker, S., Dispan, J., Fink, P., Koska, T., Meißner, H.-R., et al. (2015). THE
FUTURE OF THE GERMAN AUTOMOTIVE INDUSTRY . WISO DISKURS.
Bryne, M. P. (2015). Declaration of Professional Values & Ethical Standards. Gardana Sociana.
Dupont, H., Instance, D., & Benavides, F. (2012). The Nature of Learning. OECD.
Koehler, W. (2003). Professional Values and Ethics as Defined by "The LIS Discipline". Journal of
Education for Library and Information Science , 99-119.
Krakoff, J. (2013). ETHICS OF ELECTRIC VEHICLES. University of Pittsburgh.
Lai, E. R. (2011). Critical Thinking: A Literature Review. Pearson Group.
Lawson, H. (2014). AUTOMOTIVE ENGINEERING ETHICS: THE IN-WHEEL MOTOR . University of
Pittsburgh.
Lucky, B. O., & Takim, S. (2015). Manufacturing defects in the automobile industry, a case study of
the remote causes and effects of Toyota‟s transmission malfunctions in cars. International Journal of
Engineering and Applied Sciences (IJEAS) , 15-29.
Pooja. (2015). ANALYSIS ON INDIAN AUTOMOBILE INDUSTRY & FACTORS AFFECTING DEMAND OF
PASSENGER VEHICLES IN INDIA. INTERNATIONAL RESEARCH JOURNAL OF MANAGEMENT AND
COMMERCE , 26-37.
PREMALATHA, U. M. (2014). GLOBAL BUSINESS OPPORTUNITIES AND CHALLENGES FOR
AUTOMOTIVE INDUSTRIES IN INDIA. GALAXY International Interdisciplinary Research Journal , 194-
204.
Rico, R., Hera, C. M., & Tabernero, C. (2011). WORK TEAM EFFECTIVENESS, A REVIEW OF RESEARCH
FROM THE LAST DECADE. Psychology in Spain , 57-79.

Rieger, G., Scheef, J., Becker, H., Stanzel, M., & Zobel, R. (2005). ACTIVE SAFETY SYSTEMS CHANGE
ACCIDENT ENVIRONMENT OF VEHICLES SIGNIFICANTLY - A CHALLENGE FOR VEHICLE DESIGN.
Volkswagen AG .
Royer, M. (2012). Information Technology Core . NWCET.
Sabadka, D. (2013). NEW TRENDS AND CHELLENGES IN AUTOMOTIVE INDUSTRY LOGISTICS
OPERATIONS . International Scientific Journal about Logistics , 15-19 .
Sarangi, P. K., Bano, S., & Pant, M. (2014). Future Trend in Indian Automobile Industry : A Statistical
Approach. Journal of Management Sciences And Technology , 28-32.
Sharma, D. C. (2015). Industry Sector Profile Report. SESEI.
Shepherd, T., Braham, J., & Elston, C. (2010). Listening and Interpersonal Skills Review. University of
Leeds .
Tayal, D. T., Sharma, D. A., & Sharma, D. R. (2014). Sectoral Trends Patterns and Prospects of Auto
Component Industry in India . Information and Knowledge Management , 1-6.
Tiwari, S. (2009). PESTLE ANALYSIS OF AUTOMOBILE SECTOR OF INDIA. LOVELY INSTITUTE OF
MANAGEMENT.
Verma, R., & Rathore, S. (2013). PEST Analysis for Indian Luxurious Car Market. International Journal
of Management and Social Sciences Research (IJMSSR) , 22-26.
Appendices
Job Description 1: Automotive Project Manager, Visual Merchandise
 Develop and execute the annual Lifestyle sales plan in accordance with an OEM
dealership
 Provide ongoing coaching to ensure attainment of the agreed upon targets
 Develop and execute quarterly marketing plans appropriate for the individual dealership
within assigned territory
 Monthly review of dealership purchase, sales and profitability relative to best-in-class
center performance within assigned territory
 Key responsibilities as a visual merchandising associate will include:
 Visual display, inventory management, and merchandising training including design of
the visual displays and execution of the design decisions
 Responsible for creating and maintaining a compelling presentation of merchandise that
will engage customers and help stimulate sales activity
 Ensure brand image and style of the company is projected at all times
 Merchandise, shelving, and fixtures. Change signs, and maintain and provide direction
on the cleanliness and functionality of fixtures, signage, lights, and equipment

Job Description 2: Autonomous Driving - Project Manager
 Motivate cross-functional, multi-location team members and manage deliverables to
meet project milestones
 Manage project execution, from concept to high-volume production, to ensure
adherence to budget, schedule and scope
 Meet financial commitments including profit margins, engineering spend, capital
investment and collections
 Manage risk activities; identify, resolve/escalate issues in a timely fashion
 Provide a timely and accurate report to the management team and team members. Help
ramping up team and organization
 Develop best practices and tools for project execution
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