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Indian automobile production increased at a CAGR of 12.2% over FY05-FY13, with a decline in Commercial Vehicle (CV) growth rate during FY09 and FY13. Globally, automotive industry suffered a decline in FY09 due to the global financial crisis and again on a decline in FY12 due to the European sovereign debt crisis. Apart from the global events, there are various internal risks the Indian OEMs need to consider: 1) regulatory risk due to excise duty hikes, decontrol of fuel pricing, etc., 2) market risks due to currency, inflation, interest rates, material cost, 3) industry risks due to increased competition, price war, etc. In this scenario, Indian Original Equipment Manufacturers (OEMs) need to constantly recalibrate their strategies to the changing market dynamics and associated risks. A research on megatrends affecting the Indian CV industry has identified more focus on Total Cost of Ownership (TCO) as one of the megatrend.

Foreign investments help in productive capacity building for both the parent organization in the home country, and in the host country. Preferably, investment promotion is encouraged as it creates biggest impact on creating backward and forward linkages besides generating direct and indirect employment. Commercial vehicle is one such industry. In this knowledge world, organizations can excel or sustain their excellence, only if there is a continuous learning at all levels. To a great extent, competitive advantage of a transnational organization lies in its ability to identify and transfer best practices, core competencies. Knowledge sharing happens in a natural way between its geographically dispersed and diverse units. Technology paves way in creating and leveraging knowledge at an exponential rate, besides reducing time, effort and cost while achieving business goals.

General insurance industry has been incurring losses due to their poor underwriting standards and fake third party motor insurance claims. Motor industry accounts for one third of the non-life industry premium. The problems associated with the motor insurance industry are being assessed here with the help of indicators claims ratio, solvency ratio. The steps taken by Insurance Regulatory and Development Authority (IRDA) have been in terms of declined risk pool and increase in Third party premium. Third party premium is calculated based on the past years claim data and a differential pricing mechanism have been adopted. Though different vehicle segments have been addressed by this approach, the individual customer needs are not addressed here. The next level of differentiation should be based on user behavior and insurance companies are now looking at rate differentiation using customer behavior.