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  • Ford Success Story – Making Mobility Affordable And Accessible

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Ford.

    Ford Motor Company (often referred to as Ford) is an American multinational automotive manufacturer based in Dearborn, Michigan. Henry Ford created the company, which was formed on June 16, 1903. The Ford brand offers autos and commercial vehicles, whereas the Lincoln premium brand sells luxury cars.

    Based on 2015 car production, Ford is the second-largest U.S. automaker, GM being the first. As per 2017 data by OICA, Ford is the fifth-largest automaker in the world, led by Toyota, Volkswagen, Hyundai, and GM. As published by carlogs.org, Ford Motor is the World’s fourth-largest car company on the basis based on 2020 revenue. Ford’s Revenue is projected to reach $140.80 billion in 2023. With an annual growth rate (CAGR 2023-2027) of 1.86%, the projected market volume is $151.60 billion by 2027.

    The firm became public in 1956, although the Ford family retains 40% voting rights through special Class B shares.

    Ford – Company Highlights

    Startup Name Ford Motor Company
    Predecessor Henry Ford Company
    Headquarters Dearborn, Michigan, U.S.
    Industry Automotive
    Products Automobiles, Luxury vehicles, Commercial vehicles, Automotive parts, Pickup trucks, SUVs
    Founder Henry Ford
    Founded 1903
    Chairman & CEO Jim Farley
    Website www.ford.com

    About Ford Motor Company
    Ford – Industry
    Ford – Founders and Team
    Ford – Startup Story
    Ford – Mission and Vision
    Ford – Logo, Slogan, and Tagline
    Ford – Business Model and Revenue Model
    Ford – Employees
    Ford – Sponsorships
    Ford – Challenges Faced
    Ford – Investments
    Ford – Growth
    Ford – Competitors
    Ford – Awards and Achievements
    Ford – Future Plans

    Success Story of Ford

    About Ford Motor Company

    Ford Motor Company is an American automaker that designs, manufactures, distributes, and serves a wide range of Ford trucks, SUVs, automobiles, and Lincoln luxury vehicles.

    Automotive, Mobility and Ford Credit are the company’s three segments.

    The Automotive division is responsible for designing, producing, distributing, and maintaining Ford and Lincoln cars, as well as their components and accessories. Ford Mobility is a wing dedicated to innovation in the automobile sector. Ford Mobility is working in the field of designing emerging mobility services and also invests in new innovative ventures in the automobile sector. Ford mobility is also working to develop autonomous vehicles. While Ford Credit division provides automobile financing and leasing services.

    Ford also holds ownership in Argo AI, a developer of autonomous driving systems, and Spin, a micro-mobility service provider.

    Ford – Industry

    Before the coronavirus crisis threw the globe into chaos, the automobile sector had been on an upward trend throughout 2018 and had just begun a period of stagnation in 2019. Between March and May 2020, global car sales fell by almost 15% worldwide. China was the first market to recover from the crisis, with car sales remaining at pre-pandemic levels for months after the outbreak. Electric vehicles, autonomous driving, and mobility services are expected to continue to fuel the industry, resulting in an overall rebound in the coming quarters.

    Ford Motor Company – Founder

    In 1903, Henry Ford established the Ford Motor Company.

    Founder of Ford - Henry Ford
    Founder of Ford – Henry Ford

    Henry Ford

    Henry Ford was born on July 30, 1863, in Springwells Township, Wayne County, Michigan to Mary and William Ford. While Henry was just 12, he had his own small self-built machine shop where he spent much of his time experimenting with machines. He was just 15 when he built his first steam engine.

    Henry started his career as a machinist’s apprentice in the shops of James F. Flower and Brothers in Detroit(a city in the US). In July 1891, Henry joined as an engineer at the Edison Illuminating Company of Detroit and became the chief engineer of the company in 1893. During his stint at the Edison Illuminating Company, Henry ford also developed a deep friendship with Thomas Edison.

    Henry Ford’s automobile manufacturing journey began in the winter of 1893 when he built a modest one-cylinder gasoline model inspired by his interest in internal combustion engines. On a wooden table in the kitchen of the Ford house at 58 Bagley Avenue in Detroit, the first Ford engine flickered to life. His first vehicle, which was a frame-mounted with four bicycle wheels, was powered by a later version of that engine. The Quadricycle, Ford’s first automobile, was built in June 1896.

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    Ford Motor Company History

    Henry Ford resigned from Edison Illuminating Company in August 1899, to start his venture. In 1899, he created the Detroit Automobile Company, which became bankrupt just within 18 months of its inception.

    Leaving the firm paved the door to his achievement. “Failure is merely the opportunity to begin again, this time more intelligently,” remarked Henry Ford. With this guiding concept in mind, he tried again and established what is today known as the Ford Motor Company in 1903. He also revolutionized the automobile business by introducing the then-unheard-of ‘assembly line’ for his vehicle manufacture. Ford grew to be one of the world’s most successful and lucrative businesses that even managed to survive the Great Depression of 1930.

    Ford is also the world’s largest family-controlled company, which has been controlled by the Ford family for over 110 years. Volvo, Land Rover, Jaguar, Aston Martin, and Mercury were previously part of Ford’s premium portfolio. These brands were sold to other firms over time, and Mercury was eventually phased out.

    Ford – Mission and Vision

    Ford’s mission statement says, “to make people’s lives better by making mobility accessible and affordable.”

    This mission statement emphasizes the movement of people, which is a fundamental function of vehicles and the transportation industry. The fact that Ford places such a high value on mobility reveals the company’s social mission. The firm strives to make people’s transportation more efficient as one of the largest participants in the international market.

    Ford – Slogan, Tagline, and Logo

    Ford's Company Logo
    Ford’s Company Logo

    Ford’s first slogan that was used by the company in 1914 was “Ford: The Universal Car.” Over the years Ford has tried to appeal to its customers across the world through various slogans. Some popular slogans by the company are –

    • Go Further
    • All-New Focus Drive One.
    • Everything We Do is Driven By You
    • Built Ford tough!
    • Ford has a better idea
    • Better Ideas. Driven by you
    • Built for the road ahead.
    • Have you driven a Ford lately
    • Quality is Job one
    • There’s a Ford in your Future.
    • If you haven’t looked at Ford lately, look again.
    • Build for life in Canada
    • Ford. Designed for living. Engineered to last.
    • The Best Never Rest.
    • Answer the call to any adventure.

    ‘Built Ford Proud’ is Ford’s latest slogan.

    Ford – Business Model and Revenue Model

    Ford’s operations are divided into three categories: “Automotive,” which is by far the largest, “Ford Credit,” and “Mobility.”

    The majority of Ford’s revenue comes from producing and selling automobiles to consumers. Electric vehicles and self-driving automobiles are two areas where the firm wants to increase its capabilities. Ford also makes money through its leasing and financial divisions, which provide automobile loans and lease agreements to customers.

    Ford Credit is a Ford service that supplies dealerships and consumers with a variety of automobile finance options. These solutions enable dealerships to buy new inventory and expand existing capabilities, as well as provide clients with finance for car purchases and leases without having to leave Ford’s business environment. In the United States, Canada, and Europe, Ford Credit is offered.

    Ford’s Mobility business is primarily the company’s research and development division for self-driving cars and the software that goes with them. This segment generates no revenue because the company has yet to sell any of these cars.

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    Ford – Employees

    • Marion Harris – Board Member and Audit Committee
    • Niki Doak – Vice President, Operations
    • Fred Lobo – Digital Performance Manager
    • Don Bunker, Pmp, Csm – Project Management Consultant
    • Aakash Puntambekar – Product Development Engineer
    • Aarik Kimberlin – Process Coach
    • Aaron Anderson – Parts Specialist
    • Aaron Bresky – Product Development
    • Aaron Brunke – Product Engineering Designer
    • Aaron Estelle – STA Engineer

    Ford – Sponsorships

    Ford Center in downtown Evansville, Indiana, and Ford Field in downtown Detroit are two major sports facilities sponsored by Ford In the USA.

    Ford also sponsors many events across the globe. Ford is a major sponsor of Sky media channel’s coverage of Premier League football. Ford also sponsored the UEFA Champions League for 20 years, before ending the sponsorship in 2014.

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    Ford – Challenges Faced

    In recent times, automobile demand in important countries such as North America and Europe, as well as China, has fallen short of expectations. These excesses have boosted prices for automakers that have ramped up their capabilities to match projected future growth, as Ford explains in its annual report. In China, for example, surplus capacity in the car sector reached 78% in 2018. According to Ford, surplus capacity will average 47 million vehicles until 2024.

    The rush by automakers to tap into the enormous Chinese market has heightened competitiveness in the sector. This, along with declining demand and the growth of Chinese automakers like Chery Automobile Co. and BYD Auto Co., has put pressure on firms like Ford to maintain high prices.

    The development of startups like BYD and Tesla (TSLA) has fueled demand for hybrids and electric vehicles, increasing competition and putting pressure on traditional automakers to make their vehicles more efficient and technologically advanced.

    Ford – Investments

    Date Organization Name Round Amount
    May 2, 2022 Cavnue Series A $130M
    Sept 22, 2021 Redwood Materials Private Equity Round $50M
    Jul 23, 2021 Rivian Private Equity Round $2.5B
    May 3, 2021 Solid Power Series B $130M
    Oct 13, 2020 Solid Power Series A $28M
    Jun 19, 2020 Motorq Series A $7.3M
    Apr 2, 2020 Phantom AI Series A $22M
    Dec 23, 2019 Rivian Private Equity Round $1.3B
    Oct 29, 2019 Cellink Series B $22.5M
    Apr 24, 2019 Rivian Corporate Round $500M
    Nov 7, 2018 SAIPS Corporate Round $12.5M
    Mar 19, 2018 Desktop Metal Series D $65M

    Ford – Growth

    Year Amount Percentage Increase/Decrease from last year
    2022 $151.736B +12.72%
    2021 $136.433B +4.63%
    2020 $127.144B -18.45%
    2019 $155.9B -2.77%
    2018 $160.338B +2.27%

    Ford – Competitors

    General Motors Company (GM), Honda Motor Company (HMC), Toyota Motor (TM), Daimler (DDAIF), Tesla Motors (TSLA), Navistar International (NAV), and Spartan Motors (SPAR) are Ford’s main competitors.

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    Ford – Awards and Achievements

    In 2022, Ford Motor Company received two awards, and 6 awards in 2021. Ford Motor Company took home the awards for Best Engineering Team 2022 and Best Global Culture 2022.

    Other recent awards are as follows:

    • Best Company for Diversity 2021
    • Best CEO 2021
    • Best Company Culture 2021
    • Best Company Happiness 2021
    • Best Leadership Teams 2021
    • Best CEOs for Diversity 2021
    • Car of the Year 2019 – Finland
    • Car of the Year 2019 – Croatia
    • Belgian Family Car of the Year (two price categories) – Belgium
    • Irish Car of the Year awards: Small/Compact Car of the Year – Ireland
    • Autobild Golden Wheels Award: Best Compact car – Bulgaria
    • BusinessCar Awards: Best Lower-Medium Car – U.K.
    • Parkers New Car Awards 2019: Best Small Family Car – U.K.
    • 2018 Scottish Car of the Year Awards: Best Family Car – Scotland
    • Auto Zeitung Auto Trophy 2018: Compact category winner – Germany
    • Great Austrian Automobile Prize: Start category winner – Austria
    • Entrepreneurs Car of the Year – Spain
    • Czech Republic Fleet Awards 2018: Benefit category winner – Czech Republic

    Ford – Future Plans

    In the face of an auto sector destabilized by increased rivalry, uncertainty, and technological innovation, Ford has launched a “global redesign” to become more nimble and less bureaucratic. According to Ford CEO Jim Hackett, this revamps promises to save $14 billion in expenses by 2024.

    Cutbacks
    Ford eliminated about 3,000 of its paid workforce in the U.S., Canada, and India. The company was looking to lay off as many as 8,000 positions in a move to shift its focus to electric vehicles. Ford promotes the layoffs as part of its new, creative approach, but others view them as a last-ditch cost-cutting move.

    Ford stated in January 2021 that it would devote 90% of its worldwide capital allocation through 2023 to a shift to trucks, SUVs, and commercial vehicles. This means that Ford will phase out sedans and other compact automobiles during the next four years.

    Self-driving cars
    Ford is expanding its investment in self-driving cars, as shown by its Mobility business unit. This is undoubtedly a forward-thinking move on Ford’s side, but breakthrough autonomous cars are unlikely to arrive fast enough to provide the benefit Ford requires. Ford is developing its first fully self-driving car, with a cost of $2.7 billion.

    Electric and Hybrid Vehicles
    Ford announced intentions to invest $11 billion in electric vehicles in January 2018, much above its prior aim of $4.5 billion. By 2022, the firm hoped to have 40 electric cars on the road thanks to this investment. The rest would be plug-in hybrids, with 16 being entirely electric.

    Ford has established itself as the second electric vehicle company in the US after Tesla. Since the Mustang Mach-E model debuted in late 2020, Ford has produced 150,000 of them. It intends to build 600,000 by 2023 and over  2 million EVs annually by 2026.

    Conclusion

    Ford is a well-established American automotive company known for producing a wide range of vehicles, including cars, trucks, and SUVs. With a history of innovation and a commitment to quality and durability, Ford has built a loyal customer base and remains a major player in the global automotive industry.

    FAQs

    What does Ford do?

    Ford Motor Company is an American automaker that designs, manufactures, distributes, and serves a wide range of Ford trucks, SUVs, automobiles, and Lincoln luxury vehicles.

    When was Ford founded?

    In 1903 Henry Ford, an American automobile manufacturer established the Ford Motor Company.

    Who founded Ford?

    Henry Ford established the Ford Motor Company in 1903.

    Which companies does Ford compete with?

    General Motors Company (GM), Honda Motor Company (HMC), Toyota Motor (TM), Daimler (DDAIF), Tesla Motors (TSLA), Navistar International (NAV), and Spartan Motors (SPAR) are Ford’s main competitors.

    Ford company belongs to which country?

    Ford is an American based in Dearborn, Michigan, U.S.

  • The Revival of Royal Enfield From the Brink of Bankruptcy (Case Study)

    Royal Enfield is easily one of the biggest brands from India founded by and has broken records in selling its motorcycle in India and abroad. But this wasn’t the case 20 or so years back, as Royal Enfield then was sitting on brink of bankruptcy. The automotive company has achieved its best-ever sales with over a million bikes that are sold worldwide. The company’s sales have also increased to about 27%.

    Imagine if you brought a Royal Enfield motorcycle in 2001 you would now only have an old rugged bike. But if you would have invested the same amount in shares of Eicher Motors, the company that makes Enfield bikes your investment will be worth Rs 3.53 crore now. Despite operating in a niche segment, Royal Enfield remains one of the most admired motorcycle brands in India.

    Company Name Royal Enfield
    Headquarters Chennai
    Founded On 1955 (as Enfield)
    CEO Vinod K. Dasari
    Parent Eicher Motors
    Annual Revenue ₹8,965.00 crores (US$1.3 billion) (2018)

    A Brief About Royal Enfield
    History of Royal Enfield
    The Man Behind The Success of Royal Enfield
    Buying Out Royal Enfield
    The Revival of Royal Enfield
    Increase in Sales
    Future of Royal Enfield

    A Brief About Royal Enfield

    Royal Enfield is one of the flagship companies of the US 1.1 Billion Eicher Motors. It is an Indian motorcycle company with factories in Chennai, India. The company makes the Royal Enfield Bullet and other single-cylinder motorcycles. The company was established in 1955 and is one of the oldest motorcycles companies.

    It first started out as a brand of the Enfield Cycle Company, a British manufacturing firm, then went out to produce the 500 cc bullets. It is a leading manufacturing company that manufactures bullets across the globe, was looking to upgrade its IT infrastructure using industry-leading solutions.

    It has manufacturing plants in Thiruvottiyur, Chennai, Oragadam Chennai, Sipcot Industrial plant, Chennai and Campana, Argentina. The tagline of Royal Enfield is “Jab Bullet Chale Toh Duniya Raasta De” which sums it all quite beautiful as it is definitely a motorcycle that enjoys an overpowering presence as people have had to make way for it.

    History of Royal Enfield

    The Enfield Manufacturing Company Ltd was set up in England to manufacture bicycles. The company manufactured its products under the Royal Enfield Brand.

    Not being satisfied with a limited product line of just bicycles, Enfield Manufacturing soon decided to focus on building other types of vehicles. In the year 1899, it started manufacturing a quadricycle called the Royal Enfield Quadricycle which was powered by a rear-mounted engine.

    Royal Enfield Quadricycle
    Royal Enfield Quadricycle

    In 1901 Enfield manufacturing launched its first motorcycle fitted with a 239 cc engine. As a part of the global expansion strategy, Enfield started selling motorcycles in the Indian market in the year 1949.

    In 1955, the Indian government placed an order for eight hundred 350cc Royal Enfield motorcycles for use by its police and armed forces. The Royal Enfield motorcycles were considered an ideal choice for the Indian army for patrolling the country border.

    In 1990 Royal Enfield collaborated with the Eicher group an automotive company in India and merged with it in 1994.

    In 2000 the company’s sales hit a low of 2000 units per month because it was suffering from problems like poor quality of its products, outdated design, change in taste and preference of customers and the entry of Japanese two-wheeler manufacturers in the Indian market.

    Despite having a cult following among its fans many prospective customers saw Royal Enfield Brand as a relic from the past.

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    The Man Behind The Success of Royal Enfield

    The man who is responsible for the tables to turn for Royal Enfield is none other than Siddhartha Lal is the man who is singularly responsible for Royal Enfield. Mr Lal has been credited with being able to make Royal Enfield a bike that is sold worldwide because of his dedication to the company. It was 2004 when Lal had taken over as COO of the Eicher group.

    Siddhartha Lal - Former CEO of Royal Enfield
    Siddhartha Lal – Former CEO of Royal Enfield

    The group had a diverse spread of about 15 businesses including tractors, trucks, motorcycles, components, footwear and garments but none among them were a market leader. Lal decided to divest 13 businesses and put all money and focus behind Royal Enfield and trucks, two businesses where he believed the group had a genuine shot at leadership.

    Lal decided to put his full force behind Royal Enfield and the trucks business. Immediately after taking over as CEO, Siddhartha analyzed the strengths and weaknesses of Royal Enfield and started to come up with a strategy to put the brand on its path to revival.

    Buying Out Royal Enfield

    The brand was surviving well in India until Japanese motorcycles began to enter the Indian market. This is when Mr Lal’s father who owned a tractor manufacturing company and was familiar with the way parts from Royal Enfield worked, swooped in to save the brand. Enfield was one of the biggest companies in South India, especially in the 60s and 70s.

    Mr. Lal describes that “It was a bit of a tricky moment, and the firm was going bankrupt that’s when we bought it. My father got to know the people who were running the business because he was buying auto parts from Enfield for his tractor company. But we kept only one tiny portion which was the bullet factory and did not change the design because we liked the shape and the classic looks. We kept the character of the motorcycle, we kept the looks of the motorcycle, but we upgraded it to be relevant to people today.”

    Royal Enfield Bullet
    Royal Enfield Bullet

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    The Revival of Royal Enfield

    In order to pull the brand back from the edge of bankruptcy, the team decided to return to the brand’s roots to look for solutions that could help it soar once again. It is the only automobile Indian company that dint have a Japanese collaboration.

    Speaking about this time, Mr Lal said, “They consulted many countries like US, Germany, Italy Austria and the UK to develop an engine or motorcycle, and felt that the UK understood us better.”

    We found that engineering support that we could get in the Midlands was second to nowhere else in the world. In the Midlands, the team created the signature Royal Enfield Twin inceptor, which is what gave the bikes an additional boost of power that made them ideal for riding on the highway. This was a huge deal for the brand.

    They had tapped into a huge consumer need that was not very vocalized. This allowed the brand to reinvent itself and become a lifestyle product that completely fit into the vibe of travelling and getting out in the world. This has made Royal Enfield quite popular with bike enthusiasts, making it the go-to bike for people who love to travel.

    Increase in Sales

    In 2005, the company was selling only about 25,000 bikes every year and needed a manufacturing scale and a fixed cost had to be spread around 100,000 bikes. Siddhartha Lal engineered and improved Enfield bikes by riding hundreds of kilometres himself and also initiated a motorcycling culture in the team. Under Lal, as quality improved, sales grew too.

    By 2010, the company was selling 50,000 bikes, but on three platforms. That was when Lal decided to build all Enfield bikes on a single platform to maximize economies of scale. The Enfield Classic, launched from this single platform, caught the fancy of customers. Sales shot up six times in half a decade from 50,000 units in CY10 to 589,293 in CY14.

    At this point, the sales were just enough to help the company break even. But soon, the tech economy in India began to boom in 2010, which brought about a turning point for the brand. Now, Eicher Motors earns over Rs 8,738 crore in revenues and makes a net profit of Rs 702 crore (FY14). Royal Enfield brings in about 80% of these profits.

    Royal Enfield Bikes Sales Volume
    Royal Enfield Bikes Sales Volume

    Future of Royal Enfield

    The prices of Royal Enfield were higher than that of the low powered Japanese motorcycle brands sold in India, but they were cheaper than the major global brands. And in order to keep the motorcycles affordable in the price-conscious Indian market, the company did not revise its prices even after the prospects of the brand started to improve in terms of sales.

    Royal Enfield Model Ex-Showroom Price
    Royal Enfield Classic 350 ₹1.52 lakhs – ₹2.18 lakhs
    Royal Enfield Bullet 350 ₹1.24 lakhs – ₹1.6 lakhs
    Royal Enfield Thunderbird 350X ₹1.55 lakhs – ₹1.58 lakhs
    Royal Enfield Himalayan ₹1.66 lakhs – ₹2.23 lakhs
    Royal Enfield Interceptor 650 ₹2.77 lakhs – ₹3.1 lakhs

    The strong pricing power of the Royal Enfield brand and the improved operating margins rapidly increased the valuation of the company. In 2014, Royal Enfield recorded sales of 302,592 units.

    The sales for the year were higher than even the worldwide sales of Harley Davidson for the first time in the brand history. By the year 2015, Eicher Motors had become one of the most expensive automobile stocks in India.

    Eicher Motors Stock Price
    Eicher Motors Stock Price

    As of Feb 2022, the stock price of Eicher Motors is ₹2,615.10.

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    FAQs

    Is Royal Enfield an Indian company

    Royal Enfield is an Indian motorcycle manufacturing company headquartered in Chennai, Tamil Nadu, India.

    Who is the founder of Royal Enfield?

    Robert Walker Smith and Albert Eadie founded Royal Enfield in 1955.

    Who makes Royal Enfield motorcycles?

    Eicher Motors Limited is the parent company of Royal Enfield that makes Royal Enfield motorcycles.

    What is so special about Royal Enfield?

    It provides a sense of strength and also a rustic charm. The brand has built itself from being an army bike to a cult classic. These bikes have a huge fan following and also there are several biking clubs exclusive to Royal Enfield motorcycles.

  • Business Model of Maruti Suzuki | How does Maruti Suzuki make Money?

    When it comes to automotive manufacturing, Maruti Suzuki India Limited has caught all the fame. Although today, the automobile industry has developed immensely. But the charm and popularity of Maruti Suzuki haven’t failed!

    The company is a subsidiary of Japan’s Suzuki Motor Corporation. In India, Maruti Suzuki is considered the largest manufacturer of passenger cars. In fact, it’s Maruti Suzuki who is credited for the revolution of the ushered automobile industry in the country.

    Maruti Suzuki begins its journey with the legendary Maruti 800 and today, the company has come up with around 16 car models along with more than 15 variants. Maruti Suzuki manufactures a broad range of passengers as well as luxurious cars like Alto 800 to Ciaz.

    ‌‌Maruti Suzuki offers the facility of car financing and pre-owned sales of the car fleet management. Its factories are established in Gurgaon and Manesar, Haryana, and the art R&D center in Rohtak. Maruti Suzuki is very promising and remarkable with its products and services. In this article, we will be discussing the business model and strategies of Maruti Suzuki. Let’s begin!

    ‌‌About Maruti Suzuki
    Where does Maruti Suzuki operate?
    Key Products of Maruti Suzuki
    Target Audience of Maruti Suzuki
    Business Model of Maruti Suzuki
    How does Maruti Suzuki make money?
    Conclusion
    FAQs

    Why Maruti suzuki cars are so popular? | Maruti Suzuki Business Strategy

    ‌‌About Maruti Suzuki

    ‌‌Maruti Suzuki was formerly known as the Maruti Udyog Limited, India, and functioned through a joint endeavor between the government of India and Japan’s Suzuki Motor Corporation, signed in 1981.

    Maruti Suzuki is widely famous as the largest company in the automobile industry. The company is headquartered in New Delhi and was founded in 1981 by the government of India.

    Later in 2003, the automobile manufacturer- Maruti Suzuki was sold to the Suzuki Motor Corporation and functioned as its subsidiary. The Suzuki Motor Corporation owns the capital of 56.2% in the Maruti Suzuki company. Alongside, the company has a market share worth 53% in the market of the Indian passenger car.

    ‌‌The shareholdings of Maruti Suzuki are displayed and traded through the platform of the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Maruti Suzuki is accountable for around 50% of the domestic car market.

    The company launched its first product– Maruti 800 and resulted in 13 months of record production. The chairman of this prominent automobile manufacturing company is R.C. Bhargava and Kenichi Ayukawa is the managing director and CEO.

    Where does Maruti Suzuki operate?

    ‌‌Maruti Suzuki India Limited is the most prominent automobile manufacturer across India. The company is a subsidiary of Japan’s Suzuki Motor Corporation. The automobiles manufactured by Maruti Suzuki are used by almost every third individual in India.

    Key Products of Maruti Suzuki

    ‌‌Maruti Suzuki offers a great range of cars such as the Maruti 800, the first-ever Maruti car; Alto 800, Alto K10 as the entry-level cars while Swift, Wagon R, Ritz as the stylish hatchback.

    The company provides many commercial vehicles, Automobiles, Pickup Trucks, and SUVs.

    Target Audience of Maruti Suzuki

    ‌‌Maruti Suzuki India Limited puts its entire focus towards the young aged people. Its target audience is generally around 30 to 35 years old. Half of the Nexa customers belong to the age group of 30 years.

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    Business Model of Maruti Suzuki

    ‌‌The business model of Maruti Suzuki Limited India is based on its wide range of cars and customer services. The automotive company has recently shifted to the digital platform due to the marketing crisis that occurred from the covid-19 pandemic.

    To keep up with its competitors, Maruti Suzuki opted for the digital world for better content marketing and more customer engagement. The digital platforms have become a very crucial part of Maruti Suzuki’s Business Model. Around one-fourth of its total marketing budget went off to the delicacy of digital media.

    ‌‌Maruti Suzuki manufactures its automobiles based on the requirements and facilities of the middle class as well as the upper-class section. That’s why the company produces a broad range of its products at affordable rates and features.

    ‌‌Maruti Suzuki follows a certain model to cope with the difference between online marketing and the dealership experiences of the customers. The company has brought around 900 dealerships to the online platforms through India’s largest Dealer Digitization Program by the company. With the developing digital technologies, Maruti Suzuki has been earning a great sum of deals and customer support.

    Maruti Suzuki Dealer Digitalization
    Maruti Suzuki Dealer Digitalization

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    How does Maruti Suzuki make money?

    ‌‌Maruti Suzuki is considered India’s largest automobile manufacturer with around 50% of the total market share. The company earns way more profit when compared to Korea’s Hyundai, its biggest market rival. The automobile manufacturers do not provide a clear figure of the company’s profit on each deal but they do declare the net profit earned by the company.

    ‌‌According to the calculated data, Maruti Suzuki has sold more than 7.5 million automobiles in India, to date. And around 500,000 units have been sent mostly to European countries. The company’s profit includes the money generated through the sales of spare parts of the automobile. However, the profit differs based on the car’s size, features, and model. The larger cars are expected to bring more profit to the company’s account.

    From the latest calculated data, Maruti Suzuki has its revenue worth Rs. 16,997.9 crore along with a profit of Rs. 1,391 crores.

    Conclusion

    ‌‌Maruti Suzuki is one of the most prominent automobile manufacturers across India. The company has had an incredible journey since 1983 when it launched its first car- Maruti 800. The company offers a great range of cars with amazing features.

    Maruti Suzuki follows a very strong and remarkable business model and now, with digital media, Maruti Suzuki is growing even more. The company has a long run ahead. Stay tuned for more updates!

    FAQs

    What is the revenue of Maruti Suzuki?

    The revenue of Maruti Suzuki is 78,994 crores INR in 2020.

    Who is the CEO of Maruti Suzuki?

    The CEO of Maruti Suzuki is Kenichi Ayukawa.

    When was Maruti started?

    Maruti was founded by the Government of India in 1982.

    What are the most sold models of Maruti Suzuki?

    Most sold car models of Maruti Suzuki are:

    • Maruti Suzuki Alto 800
    • Maruti Suzuki WagonR
    • Maruti Suzuki Baleno
    • Maruti Suzuki Celerio
    • Maruti Suzuki Swift Dzire
    • Maruti Suzuki Ignis

    What is Nexa?

    NEXA is Maruti Suzuki’s premium sales channel for Maruti Suzuki premium & luxury Sedan and Hatchback cars in India.

  • Success Story of Rolls-Royce: Innovating Prudent Ways to Power the World

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Rolls-Royce.

    Rolls-Royce is a name that has always gone with luxury. In fact, Rolls-Royce can be used as a term to define luxury. Rolls-Royce refers to Cars, this is what we’ve known so far. But they are more than what we know.

    Rolls-Royce is an engineering company that manufactures Aero-engines and power systems for civil, defence and various other industries. It aims at creating power systems for the future that prove to be the safest and cleanest. On the other hand, Rolls-Royce cars are manufactured independently by the company called Rolls-Royce Motor Cars Limited, which is now a subsidiary of BMW.

    The company has more than a century-long history dating back to 1904. Started as a car manufacturer, then was forced into the defence industry during the world war for making aero-engines, facing a financial collapse in the 1970s thus resulting in government take-over, various mergers, demergers and acquisitions which led them through a lot of ups and downs. Their journey is nothing short of excitement.

    Rolls-Royce – Company Highlights

    Company Name Rolls-Royce
    Headquarters London, England, United Kingdom
    Industry Airspace, Defense, Automotive
    Founders Charles Rolls, Henry Royce
    Founded 1904 (Partnership), 1906 (Company)
    CEO Warren East (Rolls-Royce), Torsten Müller-Ötvös (Rolls-Royce Motor Cars)
    Parent Organisation Rolls-Royce Holdings plc (Rolls-Royce), BMW (Rolls-Royce Motor Cars)
    Website rolls-royce.com

    Rolls-Royce – About
    Rolls-Royce – Latest News
    Rolls-Royce – Founders and Team
    Rolls-Royce – Startup Story
    Rolls-Royce – Mission and Vision
    Rolls-Royce – Name and Logo
    Rolls-Royce – Business and Revenue Model
    Rolls-Royce – Challenges Faced
    Rolls-Royce – Funding and Investors
    Rolls-Royce – Mergers and Acquisitions
    Rolls-Royce – Growth
    Rolls-Royce – Competitors
    Rolls-Royce – Future Plans
    Rolls-Royce – FAQs

    Rolls-Royce Success Story

    Rolls-Royce – About

    Rolls-Royce formally referred to as Rolls-Royce plc, is a company involved in manufacturing propulsion engines for civil and defence services and power systems for oil/gas and other marine industries. Charles Rolls and Henry Royce initially established the company for making cars. But during the First World War in 1914, the government forced them to manufacture Aero-engines for military activities.

    They kept manufacturing cars between 1906 and 1973 but concentrated more on expanding their aerospace sector. Rolls-Royce builds engines for civil and defence aircraft, power systems for land and naval military vehicles including submarines. They also provide power solutions to the oil/gas industry and marine activities. In simple terms, Rolls-Royce is into innovating advanced solutions for meeting our planet’s power needs. Rolls-Royce is technically a subsidiary of Rolls-Royce Holdings plc since 2011.

    Since 1973, after its demerger from the core company, the Rolls-Royce automotive sector went through a number of changes in ownership. Currently, Rolls-Royce cars are manufactured exclusively by the company Rolls-Royce Motor Cars Limited, which is a subsidiary of BMW.

    Rolls-Royce – Latest News

    November 8, 2021 – The United Kingdom Space Agency has joined hands with Rolls-Royce to explore the use of nuclear power in space travel. This may help them cut the space journey time and cost.

    May 28, 2021 – Rolls-Royce Motor Cars has launched a new luxury model ‘Boat Tail’ priced around $28 million. It allows you to customize not only the interiors but also the body shape of the car.

    Rolls-Royce – Founders and Team

    Rolls-Royce Founder - Charles Rolls
    Rolls-Royce Founder – Charles Rolls

    Charles Stewart Rolls and Sir Frederick Henry Royce are the co-founders of Rolls-Royce. Charles Rolls (1877 – 1910) was a motoring and aviation pioneer who graduated from Cambridge in 1898. Henry Royce (1863 – 1933) was a popular design engineer for car and aeroplane engines.

    Henry Royce - Rolls-Royce Founder
    Henry Royce – Rolls-Royce Founder

    In 1904, they both co-founded Rolls-Royce along with Claude Goodman Johnson, who was the founding Managing Director of the company after its incorporation in 1906. Their passion for cars and engineering expertise fuelled the company’s growth all through the years.

    Rolls-Royce – Startup Story

    The seed for Rolls-Royce was planted in 1884 when Henry Royce started a mechanical and electrical business in Manchester. In the beginning, he was making dynamos and cranes. Later, he acknowledged the market potential of the car industry in the future and started working on it.

    On the other hand, Charles Rolls graduated from Cambridge and got himself employed in various companies. But he was keen on marketing and motoring, thus started importing and selling cars.

    In 1904, Royce was designing and manufacturing a car of his own and that is when Rolls happened to meet him at an Automobile Club. He was impressed by Royce’s design and agreed to sell all the cars that Royce would make. Thus on 23rd December 1904, at the Paris Motor Show, the brand Rolls-Royce was introduced by displaying their first car Rolls-Royce 10 hp.

    It was initially started as a partnership in 1904. Then in 1906, Rolls-Royce was converted into a Private Limited Company and was further transformed into a Public Listed Company the subsequent year. After the death of Charles Rolls in 1910, Henry Royce and Claude Johnson took the company forward. They kept introducing new car models and by 1914, Rolls-Royce started manufacturing civil and defence aircraft engines too and made it a huge success.

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    Rolls-Royce – Mission and Vision

    Rolls-Royce’s mission is to provide “Better Power for a Changing World”. They aim at improving their standards and performances to provide competitive and clean energy for the future. Rolls-Royce also marches with a vision of Net Zero Carbon in all their endeavours to meet the present and future power needs, while also protecting our society.

    Rolls-Royce Logo
    Rolls-Royce Logo

    The brand name Rolls-Royce was derived after the founders Charles Rolls and Henry Royce. The company’s name is always used with a hyphen in between, which emphasizes the friendly association between founders.

    The logo of Rolls-Royce plc comes in the blue background where two ‘R’s are embedded closely to each other in the middle with Rolls on the top and Royce below. Rolls-Royce Motor Cars Ltd has a similar logo with a white background.

    Rolls-Royce’s “Spirit of Ecstacy” emblem is highly admired by many. It resembles a woman leaning forward, with her hands stretched back. Her clothes billow from the back of her neck to her hands which look like wings. The Spirit of Ecstasy, also known as Eleanor or Flying Lady, was designed by Charles Robinson Sykes.

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    Rolls-Royce – Business and Revenue Model

    Rolls-Royce’s business model focuses on reducing the costs of its power systems. This helps them utilize funds to invent and innovate techniques that help them move closer to achieving their mission and vision. They generate revenue by selling engines and other power systems to various industries. Also, a part of the income flows through service contracts from airlines for maintaining the aircraft engines.

    Rolls-Royce Motor Cars Ltd sells premium luxury cars with high standard and customized features to its customers. Their cars are priced ranging from ₹5 crores to ₹10 crores with Rolls-Royce Phantom topping the price table. Rolls-Royce recently introduced a model named ‘Boat Tail’ for its highly exclusive customers, which is priced at a whopping ₹202 crores.

    Rolls-Royce – Challenges Faced

    In 1971, Rolls-Royce declared Bankruptcy due to the losses suffered by mismanagement. Their fixed-price contract for manufacturing airlines engines with Lockheed Aircraft Corporation became the reason for their fall. This long-term contract made their losses unbearable. Rolls-Royce’s fall impacted various other industries, and as a result, the government stepped over the issue and nationalized the company. The government’s hold continued till 1987, after which it was again converted into a Private Limited Company.

    The next big challenge faced by Rolls-Royce was during the Covid-19 pandemic. The reason stated was, 50% of their revenue comes from aerospace activities which were completely halted due to the crisis. The company reported a loss of around £4 Billion in 2020 which was the biggest loss reported in Rolls-Royce’s history.

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    Rolls-Royce – Funding and Investors

    Rolls-Royce has so far raised around $266 Million in 2 rounds. Their latest funding was through the Post-IPO Equity round for developing Small Modular Reactors (SMR).

    Date Round Amount Investor Name
    November 9, 2021 Post-IPO Equity £195 Million BNF Resources, Exelon Generation Company
    January 21, 2021 Convertible Note $1 Million United States Navy

    Rolls-Royce – Mergers and Acquisitions

    Rolls-Royce Motors demerged from Rolls-Royce (1971) Ltd., in 1973. It operated independently of its parent company along with Bentley Motors until 1980, when Vickers plc acquired this car business. Later in 1998, the Rolls-Royce motors were sold to Volkswagen Group by Vickers but the rights for using the name “Rolls-Royce” and the logo were purchased by BMW for £40 Million. From 2003, BMW got the sole right to name, manufacture and sell Rolls-Royce cars.

    Roll-Royce plc was brought under Rolls-Royce Holdings plc as a subsidiary after the latter was incorporated in 2011. But all the major and principal operations are carried out by Rolls-Royce plc. The following are some of the top acquisitions and subsidiaries of Rolls-Royce Holdings plc:

    Name of the Company Year of Acquisition/Incorporation
    January 14, 2020 QINOUS
    March 30, 2015 R.O.V. Technologies
    2014 Rolls-Royce Controls and Data Services
    2014 Rolls-Royce Power Systems
    July 2, 2013 SmartMotor
    May 1, 2013 Hyper-Therm High-Temperature Composites
    January 8, 2013 PKMJ Technical Services
    May 23, 2011 Rolls- Royce plc
    September 2, 2011 R. Brooks Associates
    January 28, 2010 Europea Microfusioni Aerospaziali
    January 6, 2010 ODIM
    July 8, 2008 Scandinavian Electric Holding
    1995 Rolls-Royce North America (earlier Allison Engine Company)
    1998 Rolls-Royce AB (as a part of Vickers acquisition)
    1999 Rolls-Royce Marine Power Operations
    1998 Vinters Limited (as a part of Vickers acquisition)

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    Rolls-Royce – Growth

    Since the car division was demerged in 1973 and later acquired by BMW, it has seen significant growth in its sales over the years. They’ve even made a record sale in their history by selling more than 5000 cars in 2019. Here is the growth record of Rolls-Royce Motor Cars since 2007, according to Statista:

    Year Sales in Units
    2007 1010
    2008 1212
    2009 1002
    2010 2711
    2011 3538
    2012 3575
    2013 3630
    2014 4063
    2015 3785
    2016 4037
    2017 3438
    2018 4194
    2019 5100
    2020 3756

    On the other hand, Rolls-Royce plc maintained their revenue with little ups and downs from 2016-19 but faced a pitfall of 28% due to pandemic in 2020. Here is their revenue chart for the past five years:

    Year Revenue
    2016 £14.96 Billion
    2017 £14.75 Billion
    2018 £15.73 Billion
    2019 £16.59 Billion
    2020 £11.82 Billion

    Rolls-Royce – Competitors

    Though Rolls-Royce Holdings plc has a powerful brand identity, they have tough competitors in the market. Here is a couple of them:

    General Electric – General Electric along with its partners leads the aero-engine market occupying 55% of the market share and holds the 1st position. GE is also involved in various high-tech industrial activities like power systems, aviation, renewable energy, and the digital industry.

    Pratt & Whitney – Pratt & Whitney is another major competitor for Rolls-Royce in the aero-engine market. They also compete with Rolls-Royce in the manufacture of power turbines for marine and other industrial services.

    When it comes to cars, Some of the top competitors for Rolls-Royce Motor Cars Ltd. are:

    Rolls-Royce – Future Plans

    Rolls-Royce invests huge money in inventing technologies for efficiently meeting our world’s power needs. Their innovations are awe-inspiring which reduces cost for the customers as well as protects our environment.

    Electic Planes – Rolls-Royce aims at electrifying the aviation sector. Their first all-electric plane made its maiden flight on 18th September 2021. This aircraft is further being enhanced to achieve a speed of 300 mph. In the view of combating climate change, Rolls-Royce is into developing zero-emission aircraft for the future.

    Small Modular Reactors (SMR) – Rolls-Royce SMR Ltd was created to build power plants that generate electricity using SMR to meet the future power needs of the UK. This technology is expected to be available by 2030.

    Space Exploration – Rolls-Royce is innovating nuclear technologies to develop power systems for space launch. Net Zero Carbon – Rolls-Royce put forth Net Zero Carbon as their major goal in all their present and futuristic development. They target to bring the carbon level to zero in  their operations by 2030.

    Rolls-Royce – FAQs

    What does Rolls-Royce do?

    Rolls-Royce is an engineering company that manufactures Aero-engines and power systems for civil, defence, and various other industries.

    Is Rolls-Royce owned by BMW?

    Rolls-Royce Motor Cars Ltd alone is owned by BMW since 2003. It is a separate entity from that of Rolls-Royce plc which is involved in the manufacture of aero-engines and power systems.

    Who are the founders of Rolls-Royce?

    Charles Rolls and Henry Royce started Rolls-Royce in 1904 as a partnership and incorporated as a Private Ltd Company in 1906.

    Which is the costliest Rolls-Royce car?

    The company’s latest introduction of ‘Boat Tail’ is the costliest Rolls-Royce model. Its price is estimated at around ₹202 crores and is made only for a few exclusive customers.

    Who are the top Rolls-Royce competitors?

    Some of the top competitors for Rolls-Royce are:

    • Williams International
    • GE Aviation
    • Safran Aircraft Engines
    • Honeywell
    • General Electric
    • Pratt & Whitney

  • TVS Motor- India’s Multinational Two-wheeler Company

    The scenario of public transport in India was not this better always. The middle class had no other option than to wait endlessly for boarding crowded buses. This is the time when mopeds were introduced to the Indian market, and mopeds soon won the hearts of the Indian middle class. Talking about mopeds, one name that we can never fail to mention is TVS. TVS launched India’s first two-seater 50cc moped in 1980, which soon became a part of many Indian households. TVS is still upholding its legacy and is still considered a trusted name in the two-wheeler segment. Here is more on the journey of TVS.

    TVS Motor- Company Highlights

    Startup Name TVS Motor Company Limited
    Parent Sundaram – Clayton Limited
    Headquarters Chennai, Tamil Nadu, India
    Industry Automotive
    Founders T. V. Sundaram Iyengar
    Founded 1978
    Products Two-wheeler, Three-wheeler, Automobile parts
    Current CEO K. N. Radhakrishnan
    Website www.tvsmotor.com

    TVS Motor – About
    TVS Motor – Industry
    TVS Motor – Founders and Team
    TVS Motor – Startup Story
    TVS Motor – Mission and Vision
    TVS Motor – Logo, Slogan, and Tagline
    TVS Motor – Competitive Force Model
    TVS Motor – Employees
    TVS Motor – Challenges Faced
    TVS Motor – Investments
    TVS Motor – Mergers and Acquisitions
    TVS Motor – Subsidiaries
    TVS Motor – Growth
    TVS Motor – Competitors
    TVS Motor – Awards and Achievements
    TVS Motor – Future Plans
    TVS Motor – FAQs

    TVS Motor- About

    Indian multinational automobile manufacturer, TVS Motor Company (TVS) is located in Chennai, India. TVS is named after its founder Thirukkurungudi Vengaram Sundaram Iyengar. Motorcycles, scooters, mopeds, and 3-wheelers, as well as associated replacement parts and accessories, are the primary products of the firm. With exports to over 60 countries, TVS Motor Company is also India’s fourth-biggest two-wheeler manufacturer after Hero Moto Corp, Honda two-wheelers, and Bajaj Motors. In terms of export, TVS Motor is India’s second-largest exporter of two-wheelers.

    Automotive vehicles and Parts, Automotive Accessories, and TVS Financial Services & Others are the major operating divisions of TVS motors. The Automotive vehicles and components segment is where the majority of the company’s income is generated. TVS Motor Company is the largest firm of TVS Group both in terms of size and turnover.

    TVS Motor – Industry

    In India, the automotive sector is one of the most rapidly developing sectors. India isn’t known for being a simple market, but perseverance always pays off. India produced 26.36 million cars in Fiscal Year 2020.

    Passenger cars and 2-wheelers accounted for 80.8 percent and 12.9 percent of the Indian automobile market share, respectively, with over 20.1 million vehicles sold in FY20. Small and midsized automobiles are the most popular passenger vehicles.

    In all, India exported 4.77 million cars in FY20, representing a 6.94 percent CAGR from FY16 to FY20. Two-wheelers accounted for 73.9 percent of all vehicles shipped, with passenger vehicles accounting for 14.2percent, 3-wheelers accounting for 10.5%, and commercial vehicles accounting for 1.3 percent.

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    TVS Motor – Founders and Team

    T. V. Sundaram Iyengar established  T. V. Sundram Iyengar & Sons (TVS), a transportation firm with a huge fleet of trucks and buses, in 1911.

    T.V. Sundaram Iyengar

    Thirukkurungudi Vengaram Sundram Iyengar was an Indian businessman and pioneer in the car industry. T. V. Sundram Iyengar & Sons, a bus firm he started in 1911, eventually moved into automotive manufacture and became the parent company of the TVS Group, India’s largest commercial empire.

    TVS Motor – Startup Story

    T.V. Sundaram Iyengar is the founder of TVS Group. He began his career as a lawyer and later went on to work in the Railways and in a bank. Sundaram Iyengar however was more inclined towards entrepreneurship, and in 1911 he left his job to form TV Sundaram Iyengar and Sons, a Bus Service provider in Madurai. Till TV Sundaram Iyengar’s death in 1955, the company operated buses and lorries by the name of Southern Roadways Limited. TVS Motor, the flagship company of TVS Group was launched by TV Sundaram Iyengar’s Son T.S. Doraiswamy in 1978.

    In 1980, India’s first two-seater moped, the TVS 50, rolled out of the factory in Hosur, Tamil Nadu. Sundaram Clayton Ltd and Suzuki Motor Corporation formed a joint venture in 1987 as a consequence of a technological partnership with the Japanese car giant Suzuki Ltd. Motorcycles were first produced commercially in 1989.

    Sundaram Clayton was incorporated in 1962 as a joint venture between Clayton Dewandre Holdings and T.V. Sundaram Iyengar & Sons Ltd. It produced brakes, exhausts, compressors, and other automobile components. Sundaram Clayton is also the holding company of TVS Motor.

    TVS Group has since then ventured into many businesses and forged tied with many organizations. Axel India Limited, a joint venture between Sundaram Finance and Dana Holding Corporation, USA produces Axel Housings. Brakes India Limited was formed in 1962 as a joint venture between TV Sundram Iyengar and Sons Ltd., and Lucas Industries Ltd.UK. for manufacturing braking equipment. TVS is also into the manufacturing of Motor parts and accessories, Electronic Ignition Systems, bus bodies, rubber products, and even textile.

    TVS Motor- Mission and Vision

    TVS Motor’s vision statement says, “We are committed to being a highly profitable, socially responsible, and leading manufacturer of high value for money, environmentally friendly, lifetime personal transportation products under the TVS brand, for customers predominantly in Asian markets and to provide fulfillment and prosperity for employees, dealers, and suppliers.”

    TVS Motor – Logo, Slogan, and Tagline

    TVS is the abbreviation for Thirukkurungudi Vengaram Sundaram(TVS Group Founder). The company’s professionalism and power are symbolized by the lettering’s blue hue in the company logo. A red-hued jumping horse serves as the TVS logo. The horse’s silhouette is heading right, into the future, and represents the brand’s growth and velocity.

    Company Logo of TVS
    Company Logo of TVS

    TVS’ tagline says, “Inspiration in Motion.”

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    TVS Motor – Competitive Force Model

    The following is the analysis of the TVS competitive force model:

    Supplier Power – Although TVS has long been a popular provider for low-income clients in the two-wheeler industry, we will examine the suppliers’ influence in this case. The TVS supplier market is very fragmented, and the possibility of backward integration is also strong, limiting the suppliers’ strength. TVS works with a number of local vendors to procure spares and components for its cars. The arrival of numerous new small-scale manufacturers has also aided big vehicle manufacturers such as TVS in obtaining highly competitive prices for their spares and parts. This plainly demonstrates the supplier’s poor power.

    Buyer Power: Buyers’ power is greater in the two-wheeler sector due to the wide range of products and brands offered. Today’s buyers are choosy and particular about what they want for their money. They are seeking a brand that offers better prices and technology, which has eroded consumer loyalty for any company today and is TVS’s greatest danger.

    The threat of Replacements: When compared to other factors, the threat of substitutes is rather modest, since the market appears to be growing and maturing every day. However, when we looked farther down the road, we could see danger from rapidly rising gasoline prices, which may force buyers to convert to more fuel-efficient diesel vehicles. Growing environmental concerns have also resulted in the introduction of bicycles and battery-powered two-wheelers, which might pose a challenge to TVS in the future.

    TVS Motor – Employees

    • T. V. Sundaram Iyengar – Founder
    • Manu Saxena – VP Business Planning
    • K Gopaladesikan – CFO
    • Rajesh Narasimhan – CEO
    • Lakshmi Venu – Joint Managing Director & Non-executive director
    • TG Dhandapani – Chief Information Officer

    TVS Motor- Challenges Faced

    As of July 2020, Due to a shortage of trained labor, TVS Motor Company – one of the top manufacturers of motorcycles and scooters – was experiencing delays in the delivery of replacement parts and overall manufacturing operations.

    Following the lifting of the lockdown in May, most manufacturers are attempting to ramp up output in order to meet demand. However, factors such as a spike in Covid-19 cases and a lack of personnel have hampered automakers’ capacity to boost car manufacturing.

    According to the Society of Automobile Manufacturers, due to the negative impact of the Covid-19-induced economic downturn, car sales across all categories might drop by more than 25% in FY 21. This followed a decrease of 18 percent in domestic sales in FY 20.

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    TVS Motor – Investments

    Date Organization Name Round Amount
    Sep 3, 2020 Ultraviolette Automotive Series B ₹300M
    May 9, 2019 TagBox Series A $3.9M
    Apr 29, 2019 Altizon Systems Series A $7M
    Aug 15, 2018 Ultraviolette Automotive Series A ₹60M
    Dec 8, 2017 Ultraviolette Automotive Corporate Round –
    Aug 14, 2017 Rentongo.com Funding Round ₹15M

    TVS Motor – Mergers and Acquisitions

    Acquiree Name About Acquiree Date Amount
    EGO Movement Swiss Company EGO Movement offers innovative mobility solutions like e-bikes & e-scooters September 17,2021 Undisclosed
    Intellicar Telematics Intellicar Telematics promotes shared mobility to reduce traffic congestion and emissions. Dec 1, 2020 ₹150M
    Norton Motorcycles Norton Motorcycles (UK) Ltd manufacturers motorcycles in the UK for world wide retail. Apr 19, 2020 £16M

    TVS Motor – Subsidiaries

    TVS Motor Subsidiaries include –

    • Norton Motorcycle Company
    • TVS Housing Limited
    • TVS Motor(Singapore) Pte. Ltd.
    • TVS Motor Services Limited
    • Intellicar Telematics Private Limited
    • PT. TVS Motor Company Indonesia
    • Sundaram Auto Components Ltd.
    • TVS Motor Co. (Europe) B.V.

    TVS Motor – Growth

    On Monday, TVS Motor Company reported that it sold 278,855 automobiles in July 2021, an increase of 10% over the same month the previous year. In the month of July 2020, the indigenous automaker sold 252,744 vehicles.

    Not only has the brand seen an increase in domestic sales, but it has also seen an increase in international sales. In July 2021, it claimed to have shipped 103,133 automobiles, increasing 65 percent from the same month the previous year. In July 2020, it exported 62,389 vehicles. With 87,559 units delivered in July 2021, TVS saw a 62 percent increase in exports in the two-wheeler sector alone. It exported 54,141 two-wheelers to foreign markets in July of the previous year.

    According to the automaker, demand in the export market is still strong, and container availability is increasing compared to the previous few months when shipping was disrupted. In the next months, TVS anticipates a further increase in container availability.

    TVS Motor- Competitors

    Bajaj Auto, Hero MotoCorp, Yamaha Motor, Suzuki Motor Corporation, Ather Energy, Honda, Royal Enfield, Kymco, Piaggio & C. SpA, and Piaggio & C. SpA are among the top ten competitors of TVS Motor Company.

    TVS Motor – Awards and Achievements

    Most recent awards and achievements are:-

    • Bike Awards – 2019 – Two-wheeler manufacturer of the year
    • Indian Motorcycle Of The Year – 2017
    • TVS Motor has been awarded Highest in Customer Satisfaction by J.D. Power Asia Pacific Awards for 2018.
    • TVS Scooty Zest 110 is awarded the Most Appealing Executive Scooter by J.D.Power Asia Pacific Awards for 2016.
    • TVS Motor Company was named the Two Wheeler Manufacturer of the Year by NDTV Car and Bike Awards 2015.
    • TVS is India’s Most Trusted Brand in the Two Wheeler Category
    • TVS Apache RTR180 is the Most Appealing Premium Motorcycle as awarded by J.D.Power Asia Pacific Awards for 2018.
    • TVS StaR City + is awarded the highest-ranked Economy Motorcycle by J.D.Power Asia Pacific Awards for 2018.

    TVS Motor – Future Plans

    While TVS Motor Company has already begun manufacturing and selling their new electric scooter, the iQube, in a few locations, the next 24 months are expected to witness exponential development, with a whole new variety of electric vehicles due to reach the market under the new vertical. The vehicles will most likely be two and three-wheelers with power outputs ranging from 5 to 25 kW. However, for the time being, the brand’s electric car division will work alongside its ICE vehicle division.

    Speaking on his future plans, Sudarshan Venu who leads the new strategy says “We want to scale up the TVS electric experience pan India, and it is a space where we would like to play a leading role. We’ve quietly worked on EVs for the last one decade. It is a huge focus area for us as we advance. We are embracing this future; we are investing in it and are excited.”

    For the time being, though, it’s probable that the company is searching for partnerships to help them expand its charging network and satisfy consumer demands. In addition, the company has built a new EV plant that will be scalable to meet demand and is investigating the possibility of managing crucial backend production of batteries and other vital elements in-house.

    TVS Motor – FAQs

    Which country is TVS Motor based in?

    TVS Motor is an Indian automotive company.

    Who founded TVS Motor?

    T. V. Sundaram Iyengar established TVS, a transportation firm with a huge fleet of trucks and buses, in 1911. Later

    When was TVS Motor founded?

    TVS Motor was started in 1978 by T. V. Sundaram Iyengar’s son T.S. Doraiswamy

    Which companies do TVS Motor compete with?

    Bajaj Auto, Hero MotoCorp, Yamaha Motor, Suzuki Motor Corporation, Ather Energy, Honda, Royal Enfield, Kymco, Piaggio & C. SpA, and Piaggio & C. SpA are among the top ten rivals of TVS Motor.

  • Maruti Suzuki – Emerging Stronger than Ever

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by the organization it is based on.

    Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an Indian automobile manufacturer headquartered in New Delhi. It is a subsidiary of the Japanese automotive manufacturer Suzuki Motor Corporation.

    Maruti Suzuki has 3,598 sales outlets across 1,861 cities in India. The Brand Trust Report published by Trust Research Advisory, a brand analytics company, has ranked Maruti Suzuki in the thirty-seventh position in 2013 and ninth position in 2019 among the most trusted brands of India.

    Maruti Suzuki – Company Highlights

    Startup Name Maruti Suzuki India Limited
    Headquarters New Delhi, India
    Industry Automotive
    Founded 24 February, 1981
    Founder Government of India
    CEO Kenichi Ayukawa
    Parent Suzuki Motor Corporation
    Area Served India
    Website www.marutisuzuki.com

    Maruti Suzuki – About and How it Works?
    Maruti Suzuki – Logo and its Meaning
    Maruti Suzuki – Recent News
    Maruti Suzuki – Founder and History
    Maruti Suzuki – Mission
    Maruti Suzuki – Joint Ventures
    Maruti Suzuki – Business Model
    Maruti Suzuki – Revenue and Growth
    Maruti Suzuki – Recent Acquisition
    Maruti Suzuki – Competitors
    Maruti Suzuki – Challenges Faced
    Maruti Suzuki – Future Plans
    Maruti Suzuki – FAQs

    Maruti Suzuki – About and How it Works?

    Maruti Suzuki India Limited is a holding company. The Company is engaged in the manufacture, purchase and sale of motor vehicles, components and spare parts (automobiles). The other activities of the Company comprise facilitation of pre-owned car sales, fleet management and car financing.

    Its geographical segments include the domestic segment, which includes sales to customers located in India, and the overseas segment, which includes sales to customers located outside India. The Company’s product portfolio includes Alto 800, Alto K10, Wagon R, Celerio, Ritz, Swift, DZire, Ertiga, Omni, Eeco, Gypsy, Ciaz, etc.

    Its service offerings include Maruti Finance, True Value, Maruti Genuine Parts, Maruti Genuine Accessories, Maruti Suzuki Auto Card and Maruti Driving School. It has approximately five plants, located in Palam Gurgaon Road, Gurgaon, Haryana, and at Manesar Industrial Town, Gurgaon, Haryana, with an installed capacity of over 1.5 million vehicles per year.

    Maruti Suzuki – Logo and its Meaning

    The present variant of Suzuki logo is designed in red and blue colours. The red colour (the letter S of Suzuki) represents passion, integrity and tradition, while the blue(the letter M of Maruti) stands for excellence and grandeur.

    Maruti Suzuki's Company Logo
    Maruti Suzuki’s Company Logo

    Maruti Suzuki – Recent News

    • Maruti Suzuki sees ‘much better’ 2021 as economy rebounds: Chairman
    • Maruti Suzuki sales increase 1.7% to 1,53,223 units in November

    Maruti Suzuki – Founder and History

    Maruti Udyog Limited was founded by the government of India on 24 February 1981, only to merge with the Japanese automobile company Suzuki in October 1982. The first manufacturing factory of Maruti was established in Gurugram, Haryana, in the same year.

    The company was formed as a government company with Suzuki as a minor partner to make a people’s car for middle class India. Over the years the company’s product range has widened ownership has changed hands and the customer has evolved.

    On October 2, 1982 the company signed the licence and joint venture agreement with Suzuki Motor Corporation Japan. In the year 1983 the company started their productions and launched Maruti 800. In the year 1984 they introduced Maruti Omni and during the next year they launched Maruti Gypsy in the market. In the year 1987 the company forayed into the foreign market by exporting first lot of 500 cars to Hungary.

    In the year 1990 the company launched India’s first three-box car Sedan. In the year 1992 Suzuki Motor Corporation Japan increased their stake in the company to 50%. In the year 1993 they introduced the Maruti Zen and in the next year they launched Maruti Esteem in the market.In the year 1995 the company commenced their second plant. In the year 1997 they started Maruti Service Master as a model workshop in India to look after sales services.

    In the year 1999 the third plant with new press paint and assembly shops became operational. In the year 2000 the company launched Maruti Alto in the market. In the year 2002 Suzuki Motor Corporation increased their stake in the company to 54.2%.

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    Maruti Suzuki – Mission

    Maruti Suzuki’s mission statement says, “To be The Leader in the Indian Automobile Industry, Creating Customer Delight and Shareholder’s Wealth; A pride of India.”

    Maruti Suzuki – Joint Ventures

    Relationship between the Government of India, under the United Front (India) coalition and Suzuki Motor Corporation over the joint venture was a point of heated debate in the Indian media until Suzuki Motor Corporation gained the controlling stake. This highly profitable joint venture that had a near monopolistic trade in the Indian automobile market and the nature of the partnership built up till then was the underlying reason for most issues.

    The success of the joint venture led Suzuki to increase its equity from 26% to 40% in 1987, and to 50% in 1992, and further to 56.21% as of 2013. In 1982, both the venture partners entered into an agreement to nominate their candidate for the post of Managing Director and every Managing Director would have a tenure of five years.

    Maruti Suzuki – Business Model

    Maruti Suzuki’s product range extends from entry level small cars like Alto 800, Alto K10 to the luxury sedan Ciaz. Other activities include facilitation of pre-owned car sales fleet management, car financing. Its Business Segments are divided into : Operating Income from sales of cars and Interests from Investments.

    • Maruti Suzuki offers 17 models of cars
    • Company focuses on catering to the needs of almost all the segments from the middle class to high class through wide range of products

    Maruti Suzuki – Revenue and Growth

    Maruti Suzuki: growth highlights are:

    • It has a presence in 34 cities as of March 2024
    • The company has 16,500 employees as per LinkedIn as of March 2024
    • It has served over 27 million happy customers in India as of March, 2024
    • It acquires news stakes in AI startup Amlgo Labs as per a news report from March 23, 2024
    • The company has manufactured close to 2 million cars a year in FY 2022-23

    Financials

    Auto major Maruti Suzuki reported 2.05 per cent year-on-year growth in consolidated profit at Rs 1,419.6 crore for the September quarter of FY21 (Q2FY21) while revenue rose 10.34 per cent to Rs 18,755.6 crore. In comparison, the company had posted revenue of Rs 16,997.9 crore and profit of Rs 1,391 crore in the corresponding quarter of last year.

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    Maruti Suzuki – Recent Acquisition

    Maruti Suzuki India on 13 May 2020, said its board took a slew of decisions, including acquisition of Delhi-based JJ Impex, and supply of Vitara Brezza to Toyota Kirloskar Motor (TKM). The car major on said its board has approved acquiring 39.13% equity stake held by Sumitomo Corporation, Japan and 10% held by Sumitomo Corporation India in JJ Impex (Delhi), a company engaged in automobile service and repair business.

    The cost of acquisition or the price at which the shares are to be acquired is fixed at Rs 21.73 crore, the company said.

    After the acquisition, the company shall become the wholly-owned subsidiary of MSIL. MSIL shall have the right to nominate/ appoint all the directors on the board of the company. The nominee Directors of Sumitomo Group shall resign from the board of the company, Maruti Suzuki India (MSIL) said. The acquisition does not require any government approvals, it added.

    Maruti Suzuki – Competitors

    The top 10 competitors in Maruti Suzuki’s competitive set are Tata Motors, Honda, Hyundai, Mahindra, Toyota, Chevrolet, Ford, Volkswagen, Ashok Leyland and Mercedes-Benz.

    Maruti Suzuki – Challenges Faced

    Suzuki Motors Corporation had to recall certain models of vehicles such as the Grand Vitara and XL 7 which were manufactured in the year 2005. A problem was detected in the adjuster pulley for the drive belt which has the outer portion made up of plastic and operates the power steering pump and air conditioner compressor. Repeated heat stress caused the outer body made up of plastic to weaken and pieces of the pulley broke off.

    The company found out that the broken pieces of pulley can get caught between the pulley and the drive belt which can cause the drive belt to come off resulting in increased effort to steer the vehicle by the driver which in turn increased the risk of a crash or accidents. The company made a plan to resolve the issues in the vehicles with this problem and the dealers of Suzuki Motor Corporation replaced the power steering pump belt tension adjuster free of charge for the customers whose vehicles had the same defect.

    Suzukis subsidiary Maruti Suzuki India Limited faced a great challenge to keep its lead in the small market segment of automobiles in India. The company was facing severe production issues which resulted in a long gestation period for some top-selling brands such as Maruti Suzuki Swift, Maruti Suzuki Swift Desire and a few other models. These production issues could have lead to loss in the market share of Maruti Suzuki in India however the company dealt with the situation by working with their vendors to increase the supply of the materials and the company was able to deal with the backlogs of its normal sales on many models.

    Difficult days, but we will emerge stronger—This was the message India’s biggest car company gave out on Wednesday as it came out with its annual integrated report for the 2020 financial year and took stock of the toll that the pandemic was inflicting on its bottom line.

    “The COVID-19 epidemic has given your company as well as its vendors and dealers an opportunity to review all systems of working and become more efficient and competitive. Thus, while we are going through difficult days, I believe we will emerge stronger and fitter in the future,” Maruti Suzuki chairman R.C.Bhargava said, addressing stakeholders.

    The market leader had posted losses for the first time in about two decades, as the April-June 2020 quarter showed nearly Rs 250 crore loss. Net sales had declined to less than Rs 4,000 crore, compared to nearly Rs 19,000 crore from the period in the previous year.

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    Maruti Suzuki – Future Plans

    In an alliance with Toyota, Maruti Suzuki will be targeting the Hyundai Creta space with a midsized SUV in 2022, and this vehicle will be based on the current Brezza architecture. A C-segment MPV in 2023 is also planned, and both vehicles are likely to be produced at Toyota’s factory in Bidadi.

    Unlike the re-badged Baleno, Ciaz and Ertiga, which will be shared by Maruti and Toyota in India till 2022, the SUV and MPV under development are likely to have distinct characteristics or differentiation to ensure that both companies gain from India’s growing preference for utility vehicles.

    “With over a dozen SUVs planned by its rivals, Maruti Suzuki knows it has to have competitive offerings to retain its 50% overall share. The exit from diesel makes compact UVs a challenge, but a 1.5-litre diesel engine is not yet ruled out,” said one of four executives aware of Maruti’s plans. “Plus, Maruti will be relying on the localised hybrid solutions from Toyota to spruce up its future portfolio.”

    The utility vehicle segment is expected to overtake the humble hatchback segment in India, as an increasing number of buyers prefer the tall and high-seating SUVs and MPVs that cost as low as Rs 5 lakh and as high as Rs 1 crore. According to vehicle forecasting firm IHS Markit, utility vehicle sales will close 2019 at 38%, a tad behind the hatchback segment, before overtaking the latter in 2020. The share of entry-car or mini-car segment, once Maruti’s mainstay, today accounts for just 10% of the overall market as against 25% share it enjoyed 5-7 years ago.

    Apart from bringing in the petrol versions of Vitara Brezza and S-Cross, Maruti created an entrylevel SUV with S-presso. Maruti expects a significant number of its Swift, Dzire, Ciaz, and Ertiga buyers to eventually upgrade to a bigger SUV and MPV.

    Maruti Suzuki – FAQs

    Who is the owner of Maruti Suzuki?

    The company is a subsidiary of Suzuki Motor Corporation of Japan.

    Which country company is Maruti Suzuki?

    Maruti Suzuki India Limited (MSIL), formerly known as Maruti Udyog Limited, a subsidiary of Suzuki Motor Corporation of Japan, is India’s largest passenger car company, accounting for over 50 per cent of the domestic car market.

    Where is the head office of Maruti Suzuki?

    Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an Indian automobile manufacturer headquartered in New Delhi.

    Who is the CEO of Maruti Suzuki?

    Kenichi Ayukawa is the current CEO of Maruti Suzuki.

  • Volkswagen – Investing Strongly In Its Future

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Volkswagen.

    Volkswagen Group is a German automobile manufacturer whose main brand is Volkswagen. With headquarters in Wolfsburg, Germany, it is the world’s biggest luxury vehicle manufacturer.

    Volkswagen creates, produces, and distributes passenger and commercial cars, motorbikes, engines, and turbomachinery, as well as financial, leasing, and fleet management services. It overtook Toyota as the world’s largest carmaker in 2016, and held that position for the next three years, selling 10.97 million vehicles.

    Volkswagen – Company Highlights

    Company Name Volkswagen
    Headquarters Wolfsburg, Germany
    Industry Automotive
    Founder German Labour Front
    Founded 1937
    CEO Herbert Diess
    Parent Volkswagen AG
    Website vw.com

    Volkswagen – About and How it works?
    Volkswagen – Founder and History
    Volkswagen – Logo and its meaning
    Volkswagen – Mission
    Volkswagen – Business Model
    Volkswagen – Revenue and Growth
    Volkswagen – Investments
    Volkswagen – Acquisitions
    Volkswagen – Competitors
    Volkswagen – Challenges Faced
    Volkswagen – Future Plans

    Volkswagen – About and How it works?

    Volkswagen is a premium automobile manufacturer and retailer located in Germany. Volkswagen is derived from the German word Volk, which means “people,” and so Volkswagen means “people’s automobile” or “people’s car.” It is divided into four sections:

    • Passenger Automobiles – includes vehicle and engine research, manufacturing and marketing of passenger cars, as well as the related authentic parts industry.
    • Commercial vehicles include light commercial vehicles, trucks, and buses, as well as the genuine parts sector and related services.
    • Large-bore diesel engines, turbo compressors, industrial turbines, and chemical reactor systems, as well as gear units, propulsion components, and testing equipment, are all part of Power Engineering.
    • Dealer and customer finance, leasing, banking and insurance operations, fleet management, and mobility services are all part of Financial Services.

    Among the company’s brands are Volkswagen, Audi, SEAT, SKODA, Bentley, Bugatti, Lamborghini, Porsche, Ducati, Volkswagen Commercial Vehicles, Scania, and MAN.

    Volkswagen – Founder and History

    The German government, led by Adolf Hitler of the National Socialist (Nazi) Party at the time, forms the Gesellschaft Zur Vorbereitung des Deutschen Volkswagens mbH, a new state-owned automobile business, on May 28, 1937. It was renamed Volkswagenwerk, or “The People’s Car Company,” later that year.

    Volkswagen was based in Wolfsburg, Germany, and was originally owned by the German Labour Front, a Nazi group. Aside from his ambitious plan to create a network of autobahns and limited-access motorways across Germany, Hitler’s favorite project was the creation and mass manufacturing of a low-cost, high-speed car that could be purchased for less than 1,000 Reich marks (about $140 at the time).

    Hitler enlisted the help of Austrian automotive expert Ferdinand Porsche to develop this “people’s vehicle.” “This automobile has been developed for the wide masses,” the Fuhrer said during a Nazi rally in 1938. Its objective is to satisfy their mobility needs while also making them happy.” However, shortly after the KdF (Kraft-Durch-Freude)-Wagen (“Strength-Through-Joy”) was presented at the Berlin Motor Show in 1939, World War II broke out, and Volkswagen halted production. With the plant in ruins after the war, the Allies chose to concentrate their efforts on rebuilding the German automobile industry on Volkswagen.

    Volkswagen – Logo and its meaning

    The Volkswagen logo is made up of the company’s initials, with the “V” positioned above the “W,” and both letters interacting beautifully.

    The Volkswagen Logo
    The Volkswagen Logo

    The blue color of the Volkswagen emblem stands for quality, reliability, and class, while the white hue stands for nobility, purity, and charm.

    Volkswagen – Mission

    There is no formal mission statement for Volkswagen. Volkswagen’s objective, according to a spokesman, is to “provide beautiful, safe, and ecologically sound vehicles that can compete in an increasingly competitive market and establish world standards in their respective classes.” The corporate aim encapsulates all the organization undertakes to achieve its vision. Its focus is on maintaining a level of quality that outperforms all other rivals in every way.

    Volkswagen – Business Model

    Innovation-driven VW introduces new models on a regular basis. It adjusts to fit local needs and focuses on the unique characteristics of each country (esp. in growth markets). VW seeks to decrease costs through efficient manufacturing methods and economies of scale while stressing the requirement for quality. “Offer beautiful, safe, and ecologically sound cars that can compete in an increasingly competitive market and establish world standards,” says the organization.

    VW secures control and exploits its scale by a degree of centralization, but its worldwide presence allows it to accommodate for local specifics: R&D (including worldwide trend reconnaissance and technology scouting) is headquartered in Germany, with subsidiary research hubs in the United States, Japan, and China. Similarly, Group procurement buys manufacturing supplies, services, and Capex in bulk to maximize negotiating power, but it does so from 39 sites in 23 countries.

    VW develops sustainable, long-term relationships with a range of suppliers and requires a high level of quality and dedication to ensure steady and efficient flows of high-quality and innovative sourced components.

    The Group’s multi-brand approach encourages internal competition, encourages switchers to try new brands, and appeals to a wide range of individuals. Because of its strict hierarchical brand design with sub-brands, internal cannibalism of sales is reduced. Passenger (VW), premium (Audi), luxury (Porsche), and commercial business holding firms are the four product categories in the corporation. The brands are translated into the corporate hierarchy and are used to arrange the business in order to represent customer preferences within the company.

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    Volkswagen – Revenue and Growth

    Volkswagen AG reported $60.736 billion in revenue for the quarter ended March 31, 2020, down 10.89 percent year over year.

    Year Annual Revenue Percentage change
    2019 $282.948B +1.58%
    2018 $278.538B +6.83%
    2017 $260.74B +8.45%

    Volkswagen – Investments

    Date Organization Name Round Amount
    Jun 9, 2021 Northvolt Venture Round $2.8B
    Apr 28, 2021 IRP Systems Series C $31M
    Mar 15, 2021 Northvolt Corporate Round –
    Nov 30, 2020 TuSimple Series E $350M
    Sep 29, 2020 Northvolt Venture Round $600M
    Jun 16, 2020 Audi AG Secondary Market $267M
    Jun 16, 2020 QuantumScape Corporate Round $200M
    Nov 14, 2019 credi2 Series A –
    Aug 30, 2019 SeeReal Technologies Corporate Round –
    Jul 12, 2019 Argo AI Corporate Round $2.6B
    Jun 12, 2019 Northvolt Corporate Round $600M
    May 7, 2019 Gett Series E $120M
    Nov 12, 2018 ONO Grant $50K
    Jun 21, 2018 QuantumScape Corporate Round $100M
    Jun 7, 2018 Gett Series E $80M

    Volkswagen – Acquisitions

    Acquiree Name Date Amount About Acquiree
    WirelessCar Dec 19, 2018 $122M WirelessCar is a provider of manufacturers of cars and commercial vehicles with customized telematics services to end-customers
    Porsche Jul 5, 2012 – Porsche is a German automobile manufacturer
    Scania Mar 3, 2008 – Scania is a manufacturer of heavy trucks and buses as well as industrial and marine engines

    Volkswagen – Competitors

    The competitors of Volkswagen Automobiles are:

    • Ford
    • General Motors
    • Toyota
    • Suzuki
    • Hyundai
    • Nissan
    • Honda
    • FCA (Fiat Chrysler Automobiles)
    • BMW
    • Mercedes

    Volkswagen – Challenges Faced

    Economic volatility and greater competitiveness, as well as the costs of the current diesel crisis and new, time-consuming exhaust testing in the European Union, are among the issues.

    According to chief financial officer Frank Witter, the cost of executing the Worldwide Harmonized Light-Duty Test Procedure (WLTP) testing surpassed €1 billion (S$1.6 billion). Production increased by 13.5 percent in the second quarter, more than twice the growth rate of deliveries, as the automaker prepared for the regulation change. Volkswagen warned earlier this year that inventories might pile up ahead of the WLTP’s implementation on September 1st.

    VW is grappling with political issues as well as internal transformation in the aftermath of the three-year-old diesel scandal, which continues to haunt the industrial juggernaut.

    The business incurred penalties of €1.64 billion, mostly due to a punishment imposed by German authorities, bringing the total losses to almost €27.4 billion. Mr. Rupert Stadler, the now-suspended chief of Audi’s premium division, was arrested by Munich prosecutors in June and is still detained.

    As per a spokesperson, a subsequent partnership with Ford in light commercial vehicles would allow the companies to pool development resources for electrification, lowering one-time costs in areas such as battery-powered and self-driving cars, both of which are gaining pace at the same time.

    “We cannot rest on our laurels because great challenges lie ahead of us in the coming quarters,” Mr Diess (chairman of the board of management of Volkswagen Group) said. “Growing protectionism also poses major challenges for the globally integrated automotive industry.”

    Volkswagen – Future Plans

    • Between 2020 and 2024, planned investments and development expenses in future sectors such as hybridization, electric transportation, and digitization will reach over EUR 60 billion.
    • In Planning Round 68, the share of anticipated spend on future themes grew to over 40%, up from around 30% in the previous Planning Round.

    The Volkswagen Group continues to make significant investments in its future. Planning Round 68 resulted in the creation of the investment plan for 2020 to 2024. The Group plans to invest over EUR 60 billion in hybridization, electric mobility, and digitization over the next five years. This amounted to around 40% of the company’s property, plant, and equipment investments, as well as all research and development costs, throughout the planning period. It’s a ten-percentage-point rise over the previous Planning Round for the Group. The Group expects to invest about EUR 33 billion in electric vehicles alone.

    “We are resolutely pressing ahead with the transformation of the Volkswagen Group and focusing our investments on the future of mobility. This is part of our systematic and consequent implementation of the Group’s strategy,” said Hans Dieter Pötsch, Chairman of the Supervisory Board of the Volkswagen Group.

  • Toyota Motors Plans to Design Special Electric Vehicles

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by the organization it is based on.

    Toyota Motor Corporation is a Japanese multinational manufacturer headquartered in Toyota, Aichi, Japan.  In 2017, Toyota’s corporate structure consisted of 364,445 employees worldwide and, as of December 2019, was the tenth-largest company in the world by revenue.

    Toyota is the largest automobile manufacturer in Japan, and the second-largest in the world behind Volkswagen, based on 2018 unit sales. Toyota was the world’s first automobile manufacturer to produce more than 10 million vehicles per year, which it has done since 2012, when it also reported the production of its 200 millionth vehicle.

    Toyota Motor – Company Highlights

    Startup Name Toyota Motor Corporation
    Headquarters Toyota City, Japan
    Industry Automotive
    Founders Kiichiro Toyoda
    Founded August 28, 1937
    CEO Akio Toyoda
    Website www.global.toyota

    Toyota Motor – About and How it works?
    Toyota Motor – Logo and its meaning
    Toyota Motor – Founder and History
    Toyota Motor – Mission
    Toyota Motor – Business Model
    Toyota Motor – Revenue and Growth
    Toyota Motor – Funding and Investors
    Toyota Motor – Investments
    Toyota Motor – Acquisitions
    Toyota Motor – Competitors
    Toyota Motor – Challenges Faced
    Toyota Motor – Future Plans

    Toyota Motor – About and How it works?

    Toyota Motor Corporation (Toyota), incorporated on August 27, 1937, conducts business in the automotive industry. The Company also conducts business in finance and other industries. The Company’s segments include Automotive, Financial Services and others. Toyota sells its vehicles in approximately 190 countries and regions. Toyota’s markets for its automobiles are Japan, North America, Europe and Asia.

    Toyota produces automobiles, and related parts and components through approximately 50 overseas manufacturing companies in over 30 countries and regions besides Japan. Toyota’s manufacturing facilities include plants in Japan, the United States, Canada, the United Kingdom, France, Turkey, Thailand, China, Taiwan, India, Indonesia, South Africa, Australia, Argentina and Brazil.

    The Company’s Financial Services segment consists of providing financing to dealers and their customers for the purchase or lease of Toyota vehicles. Toyota’s financial services also provide retail instalment credit and leasing through the purchase of instalment and lease contracts originated by Toyota dealers. Toyota’s subsidiary, Toyota operates financial services companies in approximately 40 countries and regions, which support its automotive operations across the globe. Toyota Motor Credit Corporation is Toyota’s principal financial services subsidiary in the United States.

    The other segment includes the design, manufacturing and sale of housing, telecommunications and other businesses. Its information technology related businesses include a Web portal for automobile information.

    Toyota Motor – Logo and its meaning

    The overlapping of the two perpendicular ovals inside the outer oval symbolize “T” for Toyota, as well as a steering wheel, representing the vehicle itself. The outer oval symbolizes the world embracing Toyota.

    Toyota Logo
    Toyota Logo

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    Toyota Motor – Founder and History

    Kiichiro Toyoda is the founder of Toyota Motor.

    Founder of Toyota Motor Corporation
    Founder of Toyota Motor Corporation

    In 1933 Toyoda Kiichiro founded what later became the Toyota Motor Corporation as a division of the Toyoda Automatic Loom Works, Ltd. (later Toyota Industries Corporation, now a subsidiary), a Japanese manufacturer founded by his father, Toyoda Sakichi.

    Its first production car, the Model AA sedan, was released in 1936. The following year the division was incorporated as the Toyota Motor Company, Ltd., headed by Kiichiro. (The company’s name was changed to Toyota, which has a more pleasing sound in Japanese.) Toyota subsequently established several related companies, including Toyoda Machine Works, Ltd. (1941), and Toyota Auto Body, Ltd. (1945).

    Toyota Motor – Mission

    Toyota’s corporate mission is “to make ever-better cars, to build a future where everyone has the freedom to move.” This mission statement is a combination of the company’s official statements regarding the mission of its business: “to build a future where everyone has the freedom to move” and “to make ever-better cars.” Toyota’s corporate mission statement has the following key elements that reflect the enterprise and the purpose and goals of its business:

    1. Make ever-better cars
    2. Build an inclusive future
    3. Freedom to move for everyone

    Toyota Motor – Business Model

    Toyota’s operation has been analysed based on those 4Vs below :

    • Volume of Processes : Toyota manufactures numerous vehicles (8,736.5 thousand units in 2012, Toyota Production figures) and for such high output, there’s greater degree of repeatability in the process. The high volume of output has allowed Toyota in systematization of activities and Toyota believes in developing deep expertise in specialities among its workforce as an essential requirement to its product-development system. Such high volume process output helps Toyota gain economies of scale and thus reduces the unit cost of its production.
    • Variety of Processes : Toyota carefully chooses a variety to balance market demands and operational efficiency. The company is present in all the segments of automotive and at least 70 different models of vehicles are sold by Toyota (Automotive, 2014) making the portfolio with a wide range of products and this accounts for a higher variety of processes. High variety of processes enables Toyota to match a wider range of customer demands and be more flexible in the eyes of customers. This, however, accounts for higher unit costs and makes the process relatively complex but Toyota has advanced other productions methods to control such aspects.
    • Variation of Processes : With predictably constant demand, it’s easier to allocate resources to a level that is capable of meeting the demand Slack et al. (2012). The variation in demand for Toyota’s products is low in the past few years and the company’s production has integrated Just in Time production techniques to fulfil those demands. Low variation enables Toyota to implement stable, routine and predictable operation processes.
    • Visibility of Processes : Process visibility indicates how much of the processes are exposed to its customers Slack et al. (2012). Toyota has low process visibility, as most of its operation process is ‘factory-like’. Low process visibility means there’s a time lag between production and consumption of Toyota products but it enables the company for high staff utilization and enjoys low unit cost for its products. Few of its processes such as those of sales centre and test drive facilities, however, have some kind of contact with customers allowing limited visibility.

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    Toyota Motor – Revenue and Growth

    The Toyota Motor Corporation’s net revenue contracted by one percent year-on-year and dipped to just under 30 trillion Japanese yen in the fiscal year ended March 2020. This figure is approximately equal to 278 billion U.S. dollars. Toyota’s revenue for the twelve months ending September 30, 2020 was $241.196B, a 13.59% decline year-over-year.

    Year Annual Revenue Percentage change
    2019 $272.031B +2.88%
    2018 $264.416B +3.02%

    Toyota Motor – Funding and Investors

    Toyota Motor Corporation has raised a total of $243.6M in funding over 2 rounds. Their latest funding was raised on Jun 28, 2018 from a Post-IPO Equity round.

    Date Round Amount Investor
    Jun 28, 2018 Post-IPO Equity $201.6M GT Capital Holdings
    Apr 14, 1982 Funding Round $42M –

    Toyota Motor – Investments

    Toyota Motor Corporation has made 27 investments. Their most recent investment was on Feb 25, 2020, when Pony.ai raised $462M.

    Amount Organization Name Round Amount
    Feb 25, 2020 Pony.ai Series B $462M
    Jan 16, 2020 Joby Aviation Series C $590M
    Dec 4, 2019 May Mobility Series B $50M
    Oct 24, 2019 OPTIMIND Series A ¥1B
    Oct 15, 2019 LeapMind Series C ¥3.5B
    Jul 24, 2019 Didi Chuxing Corporate Round $600M
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    Apr 19, 2019 Uber Advanced Technologies Group Corporate Round $1B
    Aug 27, 2018 Uber Corporate Round $500M
    Aug 21, 2018 Getaround Series D $300M

    Toyota Motor – Acquisitions

    Toyota Motor Corporation has acquired 3 organizations. Their most recent acquisition was Daihatsu on Feb 12, 2016.

    Acquiree Name Date Amount About Acquiree
    Daihatsu Feb 12, 2016 – Daihatsu is the surviving Japanese internal combustion engine manufacturers
    Cascade Corporation Mar 28, 2013 $760M Manufacturers of materials handling load engagement devices
    Hino Ottawa-Gatineau Oct 28, 2010 – A Japanese manufacturer of commercial vehicles

    Toyota Motor – Competitors

    Toyota Motor Corporation’s top competitors include FCA US, Mitsubishi Motors, Opel, Volkswagen, Nissan USA, PSA Group, Hyundai Motor, BMW Group, Ford Motor, General Motors and Daimler.

    Toyota Motor – Challenges Faced

    • Toyota’s sales in its home market are going through a phase of stagnation.
    • Any weakness in the Japanese yen provides a competitive advantage to Toyota’s overseas business. Therefore, the company’s margins from the overseas business are highly dependent on the currency movement of the Japanese yen against major currencies, including the US dollar and the euro. Continuous strength in the yen against these currencies can significantly affect Toyota’s profitability.
    • Despite being an Asian automaker, Toyota is unable to stay ahead of GM in the Chinese market.
    • With increasing environmental awareness across the globe, a delay in Toyota’s ability to deliver mainstream eco-friendly vehicles may restrict its future growth prospects.

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    Toyota Motor – Future Plans

    The demand for electric and hybrid cars is growing vastly. You might have heard of the self-driving vehicles running on the roads these days. That is a rough example of what modern technology demands from the automakers. Inbuilt software running the automobile is the need of the hour. The automotive industries are now racing for innovations to keep up the repo in the market. The modern era is the time of transformation. And that is what Toyota is battling for.

    The manufacturers now understand that electric cars are the future. The company is now designing special electric vehicles in a partnership with Subaru. Toyota now has the dedication to built electric cars. Toyota future plans will help to increase global sales. They are now in a joint venture with the various battery supplying companies.

    They not only have to design electric vehicles but also have to match the market needs. Numerous electric car manufacturing vehicles are in this race. The demand for electric cars is increasing all around the globe. The experts working on Toyota future plans will have to put all efforts possible. It is so to increase sales and reach the set target.

    The automakers are working on hybrid and plug-in hybrid models as well. According to industry knowledge, the count of electric vehicles will still be less than hybrid cars. Electric vehicles are not the only focus for the company. They also want to increase global sales in hybrid vehicles. The company will design and manufacture electric vehicles as per the market demands. But the game will still be on the hybrid and plug-in hybrid cars.