Major automobile players in india

8/13/2019 Major automobile players in india

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By

Abin jose, Sachin S, Bhartath Reddy, Deepak Manmohan, Uthapalakshi,Kiruba devi

AUTOMOBILE INDUSTRY

Cars are a part of our lifes journey, something that reminds

us that the joy is often in the journey itself, and not just in

the destination..........


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INTRODUCTION TO AUTOMOBILE INDUSTRY

The Automobile Industryof India has come a long way since 1898 when the first car

rolled out on the streets of Mumbai. The then government policies were not favorable to

the industry and the lack of interest of the state machinery was also responsible for the

delayed growth of the industry. After the liberalization of policies and tax reliefs, the

industry shed its cover of gloom and lazy image and emerged as one of the major sectors

of India. As of now, the estimated size of this industry stands at a staggering $6.7 billion

and is set to reach the size of $17 billion by 2012. The industry has registered a steady

growth of 17%-18% for the last ten years.

The automobile industry can be divided into 3 major parts :

two-wheeler segment,

passenger cars segment

commercial vehicles segment.


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BRIEF INTRODUCTION

Volkswagen- Peoples Car

Slogan- Das Auto (The Car)

Founded- 1937

Founder- German Labour Front

Head quarters- Wolfsburg, Germany

Production facilities- 100 across 27 countries

CEO- Martin Winterkorn

Employees- 5,50,000

Products- Automobiles, Motorcycles, Commercial

vehicles, Engines and Turbo machinery


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OPERATING AREAS Automobile

Financial


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PRODUCTS


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PLACE

Largest Car maker in Europe1 in 4 cars made by volkswagen12.8% share in World Passenger market


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SALES BY CONTINENT


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SALES BY COUNTRY


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BRICS


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SALES IN INDIA

Year Volkswagen Audi Skoda Bentley Lamborghini Porsche Total2010 30,319 3,003 20,019 NA NA NA 53,341

2011 76,107 5,511 30,005 52 14 0 111,693

2012 70,535 9,003 34,265 39 17 225 115,237


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PRICE RANGE IN INDIA

Low Price (lakhs) High Price (lakhs)

Volkswagen 4.5 76

Audi 25 200

Skoda 5 25Porsche 70 220

Bentley 166 270

Lamborghini 166 480

Bugatti 1200 2500

Scani 78 120

Ducati 8.7 49


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PROMOTION

Pele signed as brand ambassador to represent thecompany during upcoming FIFA world cup andOlympics

Maria sharapova for Porsche

Bentlysbrand ambassador and five times Lemans winner Derek Bell

Customer offers Ipods,Guitars

Media promotion most of the communicationtakes place through Magazines, newspapers.

The Talking Newspaper ad -----

Web promotion - Podcasting , Linkedin,Facebook, Twitter. Dedicated site innovation foreveryone and Think Blue.


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SEGMENTATION

Passenger cars Commercial Vehicles MotorcyclesVolkswagen VW Commercial Vehicles Ducati

Audi (99.55%) MAN(75%)

Bently Scania(82%)

Lomborghini

Skoda

Bugatti

PorscheSeat

Suzuki Motors (19.9%)


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SPORTS CAR OR CLASSIC CAR

In 2002 VW divided car sector into Sports and Classic

Audi (Sports)

Audi

LomborghiniSeat

Duacti

Volkswagen (Classic)

Volkswagen

Bently

Skoda

Bugatti


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TYPES OF VEHICLES


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TARGET

Age: 18-48

Status: Upper middle class and higher class


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POSITION

Third largest in production

Operating in 153 countries


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Rank Company Units (millions)

1 Toyota 9.75

2 General Motors 9.39

3 Volkswagen 9.20


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STRATEGY

Double its sales by 2018 :

Intends to deploy intelligent innovations andtechnologies to become a world leader.

To increase unit sales to more than 10 million this year.

To increase its return on sales before tax to at least 8%

Aims to become the top employer across all brands


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SWOT

Volkswagen SWOT

Strengths Weaknesses

Global presence

Strong brand portfolio

Synergy

Strong presence in China

Well performing brands

Weak position in the US passenger car market

Most cars are not environment friendly

Opportunities Threats

Changing customer needs

Positive attitude towards green vehicles

Growth through acquisitions

Increasing global demand for buses

Govt. policies

Fluctuating fuel prices

Rising raw material prices

Exchange rates


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HISTORY

Maruti Udyog Limited (MUL)was established in February 1981.

Originally, 18.28% of the company was owned by the Indian government, and 54.2% bySuzuki of Japan.

Then the government of India sold its complete share to Indian financial institutions

Actual production commenced in 1983.

Initial competitors were Hindustan Ambassador and Premier Padmini.

Signed agreements with Hungary for exports of Maruti cars.

Suzuki motor corporation acquired major stake in MUL in 2002.

Maruti Udyog Limited renamed as Maruti Suzuki India limited in 2007.


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EVOLUTION

First lot of Maruti cars assembled in 1983.(m-800)

Release of Indias first iconic MUV Maruti Omni at 1984.

Indias first off roader Maruti Gypsy launched in 1985.

Marutis first luxury sedan Maruti 1000 launched in 1990.

Launch of Zen in 1993.

Esteem launched in1994.

Launched Indias 1st24 hours on road service in may 1996.

Started customer care centre in 2000.

Started true value outlets in 2001.


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TAG LINES

For a country obsessed with mileage Maruti Suzuki makes Indias most fuel efficientcars

India comes home in a Maruti Suzuki

Maruti Suzuki- Big like India smart like you

Maruti Suzuki-way of life. Maruti Suzuki-count on us.


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PRODUCTS


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PRICING

Considers various factors such as market share, competition, material

costs, product identity and the customer's perceived value of the

product

The price decision is very sensitive and for that special care is to be

taken to get the competitive edge.


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Maruti Car Models Price Range (Rs.)Maruti 800 2,12,885 - 2,35,469Maruti A-Star 3,84,896 - 4,69,944Maruti Alto 800 2,46,500 - 3,60,500Maruti Alto K10 3,25,083 - 3,38,324Maruti Eeco 3,08,715 - 4,13,933Maruti Ertiga 5,98,971 - 8,70,971Maruti Grand Vitara 22,68,064 - 24,60,529Maruti Gypsy 5,51,410 - 6,04,373Maruti Kizashi 16,52,875 - 17,52,875Maruti Omni 2,20,492 - 2,82,014Maruti Ritz 4,32,238 - 6,33,613Maruti Swift Dzire 4,92,355 - 7,50,484Maruti Swift 4,48,894 - 6,87,769Maruti SX4

7,21,736 - 9,79,787

Maruti Wagon R 3,61,606 - 4,48,400Maruti Wagon R Stingray 4,13,724 - 4,70,724Maruti Zen Estilo 3,49,554 - 4,39,861


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Years Sales

OutletCities

Covered

By Sales

Network

Dealer

SeviceMaruti

Authorised

ServiceCities

Covered

By ServiceTrue

Value

OutletsCities

Covered

By

True Value2007-2008 600 343 683 2628 1220 266 1662008-2009 681

454

779

2767

1314

315

181

2009-2010 802 555 906 2740 1335 341 1982010-2011 933 668 1101 1845 1395 358 2082011-2012 1100 801 1305 1653 1408 409 2332012-2013 1204 874 1415 1514 1423 456 256

DISTRIBUTION NETWORK


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The promotion includes all communications a marketer used inthe market for his products and services to create awareness, to

persuade the customers, to buy and retain in future also.

The company emphasise on road safety and environment

friendly products. Institute of Driving Training and Research (IDTR) and the

Maruti Driving Schools spread across the country. Of the 5,00,000 people to be trained, at least 1,00,000 will be peoplefrom underprivileged section of society, who are keen to take

driving as a profession. Promotes the concept of "Reduce, Reuse, Recycle" (3R's).


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Considers festival seasons.

Cash discounts, lucky draws, shopping coupons or vouchers

Free Accessories

Print media

Radio

Road shows

Tv advertisements


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COMPANY PROFILE

Tata Motors Limited is Indias largest automobile company, with consolidated revenues of Rs.70, 938.85 crores(USD 14 billion) in 2008-09. It is the leader in commercial vehicles in each segment, and among the top three inpassenger vehicles with winning products in the compact, midsize car and utility vehicle segments. The company isthe worlds fourth largest truck manufacturer, and the worlds second largest bus manufacturer.

The companys 23,000 employees are guided by the vision to be best in the manner in which we operate best in theproducts we deliver and best in our value system and ethics.

Established in 1945, Tata Motors entered into collaboration with Daimler Benz of Germany in 1954 to manufacturecommercial vehicles. The collaboration ended in 1969. Tata Motors has grown from strength to strength.

Tata Motors has the unique distinction of giving India its first and only indigenously built passenger car The Tata

Indica and the premium feature sedan The Tata Indigo. The Indica, launched in 1998, reached the 2.50,000sales mark within 52 months of launch. Tata Motors, the first company from Indias engineering sector to be listed in the New York Stock Exchange

(September 2004), has also emerged as an international automobile company. In 2004, it acquired the DaewooCommercial Vehicles Company, South Koreas second largest truck maker. The rechristened Tata DaewooCommercial Vehicles Company has launched several new products in the Korean market, while also exporting theseproducts to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Koreaare from Tata Daewoo.

In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand tomanufacture and market the companys pickup vehicles in Thailand. The new plant of Tata Motors (Thailand) hasbegun production of the Xenon pickup truck, with the Xenon having been launched in Thailand in 2008. Tata Motorsis also expanding its international footprint, established through exports since 1961. The Tata Nano has beensubsequently launched, as planned, in India in March 2009.


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MARKETING MIX

PRODUCT (Brand, Packaging, Innovations, Quality) : a. Brand: Advertising is often used to make consumers aware of a products special low price or its benefits. But an

even more important function of advertising is to create an image that consumers associate with a product, knownas the brand image. The brand image goes far beyond the functional characteristics of the product. The products ofTata Motors have many special characteristics to them, but when consumers think of it, they not only think of itsfeatures, but they may also associate it with quality, performance, class. All of these meanings have been added tothe product by advertising. Consumers frequently buy the product not only for its functional characteristics but alsobecause they want to be identified with the image associated with the brand.

Tata Motors have been successful in creating and maintaining a professional brand image.

b. Packaging :A vehicle cannot have a material packaging. Here, packaging refers to and effective assembly offeatures. Tata Motors provide many innovative features to suit the target customers and the product. E.g. Tata SafariDicor has Reverse Guide System which includes a weather-proof camera to help the driver while reversing thevehicle.

c. Innovations : The various motives behind buying an automobile are Need, Prestige, Comfort, Fashion, Jealousyand Novelty. The R & D Department continuously strives to bring new innovations in their product. Tatas have anindustrial experience of over 100 years and they are well known with the Psychology of Indian customers, whodesire more at less price. This experience has helped them to develop products which fulfill the expectations ofIndian consumers.

d. Quality Control : Tata Motors have their Quality Control standards and the QC Dept. ensures that the customerdoes not face any inconveniences of a defective product.


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PRICING STRATEGY

The prices are fixed keeping in mind a number of factors. As told by Mr. Desai, prices have tobe at par with the prices of the competitors. Tata Motors give a relative price advantage ascompares to its competitors. The various determinants of price are

i. Market Condition

ii. Costs incurred

iii. Profit percentage desired by the Co.iv. Dealer Profit

b.Alterations : The Company does not allow any alterations to any of the features of theproduct. If there is an alteration which affects the performance of the engine, then thewarranty becomes void. However, there may be alterations in the accessories, if desired bythe customer.

c.Discounts : Discounts are decided by the Co. every month. Any further discounts madefrom the profits of the dealer. However, the Co. may compensate the dealer for the discountsallowed to a certain extent.


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PROMOTION a.Personal Selling : There is minimal personal selling involved. The Sales Officers at the dealerships

collect prospective customer databases and perform cold calling to attract customers.

b.Advertising :Advertising is a form of commercial mass communication designed to promote thesale of a product or service. Tata Motors is responsible for the advertising of its products. The dealerdoes play any role in the advertising. The various media used for advertising are T.V., Newspapers,Magazines, Hoardings, Internet etc. The dealer conducts point-of-purchase displays to advertise theproducts. The advertisements done by the Co. help the dealer to capitalize on the market.

c. Sales Promotion : The purpose of sales promotion is to supplement and coordinate advertising andpersonal selling; Sales promotions are designed to persuade consumers to purchase immediately byproviding special incentives such as cash rebates, prizes, extra product, or gifts. The Co. conductsintensive sales promotion during festivals such as festive discounts during Diwali.

d.Public Relations : Public Relations is a management function that creates, develops, and carriesout policies and programs to influence public opinion or public reaction about an idea, a product, or anorganization. The Co. takes serious measures to maintain good public relations. The Co. followsbusiness ethics to ensure that the customer is satisfied and receives good service whenever andwherever he desires


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PLACEa. Channels of Distribution : In case of vehicles, dealership method of distribution andsales is generally adopted.

Tata Motors have also adopted dealership method of distribution of its products. The dealers

purchase products from the Co. at a negotiated price. The MRP is fixed by the Co. and thedealer gets a profit within these prices. As the Co. deals in commercial and passengervehicles, there may be a single or distinct dealerships to market its commercial andpassenger vehicles in a town. However, if there is a single dealership appointed, then thecommercial and passenger vehicles are managed under Commercial Vehicles Dept. andPassenger Vehicles Dept. respectively.

Tata Motors have contracts with the Government of India and it supplies buses andpassenger vehicles, in some cases, to the Govt. Sometimes, bulk quantities of vehicles areordered by a Govt. Dept. or a private company. The sales, distribution and billing of theseare looked after by the Co. itself.

b. Physical Distribution : Thecommercial vehicles are manufactured

at Jamshedpur, Lucknowand Pantnagar whereas the passenger vehicles are manufacturedat Pune plant. From the plant, the finished product is transported to the dealerships. Thenation-wide dealership, sales, services and spare parts network comprises over 2,000 touchpoints. The dealerships are strategically located in the target and potential markets toensure efficient and timely availability of its products in the market.


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SWOT ANALYSISSTRENGTHS

World class Italian cabin design

Engine capacity up to 560BHP

Up to 75 ton load bearing capacity

1000+ customizations

Meets international testing standards

Multiple combination of power train,

WEAKNESSES

Low return on equityDeclining operating margin

Comparatively high price than competitors

New concept to customer base.

low promotion activities

OPPORTUNITIES

Increasing demand for fuel efficient vehicle in the market.

Existing goodwill in target market

Existing distribution channelTechnological advances

Acquisition of Daewoo motors commercial vehicledepartment added to manufacturing abilities.

THREATS

Competition from existing industry partners

Rising prices of raw material in global market e.g. steel,aluminum, etc.

Fuel is getting costlier

Global economic meltdown affected production.

SWOT Analysis

Documents

Major automobile players in india