Predicting and Modelling Costs and its impact on Profitability using Artificial Neural Networks: A Case in Automotive Passenger Car Industry in India

Precise product cost management is essential for any business and automobile industry is no exception to it. With concurrent cost management methodology, the industry will get in-time detailed cost analysis which subsequently help them manage cost risk and improve product profitability. Therefore, efficient and effective cost and profitability analysis is vital to the automotive industry. Despite, introduction of new versions like, fuel efficient cars, AI and Internet enabled vehicles have made a metamorphosis in the Passenger Car industry in India and in the global market place. Hence in order to survive and to gain competitive advantage every car manufacturer has to build cost-competitiveness within every sphere of their operations, not only to win an order, but to keep a satisfied and delighted customer. The Study focus on the most influenced cost components towards sales and profit after tax and its general pattern in with special reference to top performing passenger car companies, and to create and test a model over costing and revenues and to gain better understanding of the trends.