How Globe Scott Motors are competing with the Chinese Motor Market - A Lesson for Every Entrepreneur

With the increasing cost of operation and customers demand for lower price and good quality, it is becoming challenging for the Indian motor players to remain competitive in the market. Moreover, China’s strategy of selling materials at low cost in the Global market, is helping in no way and creating more trouble.

On the other hand, considering the rise of EV vehicles initiative across the globe, as well as the rapid adoption of the latest technology and innovation, there is an increase in demand for the permanent magnet motor in industrial, household appliances and automation market. Hence it is imperative how the Indian motor manufacturers emerge stronger and create a competitive advantage over the Chinese manufacturers.

Here is bringing to you “Cangi Calan” Managing Director at Globe Scott Motors Pvt. Ltd. sharing his concept of competing against the Chinese products and its success story. Globe Scott Motors Pvt. Ltd. is an Indian company manufacturing PMDC motor, BLDC motor, Wound field motor, Gearboxes, Electric Lifting Barrier, Electric Point Machine and more items.

“Starting with 25 motors a month to 4000 units per month, Globe Scott Motors have come a long way since I took over the company in year 2000. Our vision “To become a global leader in motor and gearboxes industry through constant innovation and latest technology absorption” captures our aspiration of being the best in everything we do. It is the foundation for what we stand for as one institution, and directs the choices and decisions we make at every stage. We began following six world class principal which has boost our company’s growth:

1. “Focus on your Customer – China’s efficiency-driven and customer-focused innovation is the key to their success. They have mastered the art of understanding the customer problem and by commercializing new ideas to quickly meet the requirement. Likewise, Indian motor manufacturers need to be more focused on the customer requirement throughout the Globe, by offering greater choice and customized product that are cost effective. We at ‘Globe Scott Motors’ are working towards reading the customer need in detail and offering solution which works best for them.”

2. “Cost Reduction – Indian motor manufacturer have many items in the WIP, finished goods and raw materials – which is a big mistake. Cost Reduction is one of the most important practice to stay competitive in the market, that we all strive to follow but may not always be successful. Focus on setting your ‘benchmark stock’ level and purchase accordingly, through analysis of historical lead time from vendors. Ensure to have enough material to avoid shortages, as well as avoid over-stock (huge inventory). Parallelly, work towards aligning the process to deliver the short manufacturing lead time through identifying and eliminating bottlenecks. These will help improving financial profitability.”

3. “Reduce Rejection Rate – Internal rejection and rework needs to be reduced. Indian motor industries need to have mindset of achieving the lowest possible rejection rate. Adoption of six-sigma method is the key here. Focus on improving the processes and operations in the company, and make it the company culture to ensure that every end product manufactured is free of any defect. Globe Scott Motors focus on conducting Value Stream Mapping, commonly known as VSM in Lean Management has helped to achieve increased productivity with lower rejection rate.”

4. “Infrastructure - Chinese industries have impressive infrastructure, sometimes bigger than needed, but it always pays off. Indian entrepreneur need to have big vision and rather than saving money for your future, invest it in your own company.  Invest wisely, talk about ROI and ROA. Use each resource wisely so that it will help you grow your business.”

5. “Act as a team and hold on to your values – Great teamwork and great outcomes go hand-in-hand. Integrity and internal harmony plays an important role in handling the day-to-day tasks as well managing crises. We at ‘Globe Scott Motors’ have used our crises experiences as a lesson to revive the team and improve our culture.”