Car Industry Strategy

Dr Amit Rangnekar

www.dramitrangnekar.com

Firm

Founder

Biz

Cars Information

Toyota (1937),
Japan

Kiichiro
Toyoda

Looms

GM (1908), US

William
Durant

Cars

Volkswagen (1937), Adolf Hitler

Germany

Cars

6.5

China No 1, JV 1m cars, Porsche Lamborghini,

Audi, Bentley, SEAT, Skoda, Scania, MAN,
Bugatti, Porsche, 20% stake in Suzuki

Ford (1903), US

Henry Ford

Cars

2.1

World No2, 56 years, EU No.2

Honda (1948)
Japan

Soichiro
Honda

Bike
Engine

3.9

Japan No 2, largest bike/engine manufacturer

Nissan (1914)
Japan

Peugeot Citroen
(1810), France

JP Peugeot

Coffee
mill

3.2

EU No 2, 1974 Peugeot M&A Citroen, units

Hyundai-Kia
(1967), Korea

Chung Ju
Yung

Construction

2.8

1998 M&A Kia

Suzuki (1907),
Japan

Michio
Suzuki

Looms

2.6

Racing cars, bikes

10

Fiat (1899), Italy

G Agnelli

2.5

No 1 in Italy, Brazil

9.2

Majority Daihatsu, Hin, Minority Isuzu, Yamaha

1929- 300+ firms M&A , No 1 for 77 years,
bankrupt 2009

SA Reynolds 1999, Asia No 3, engines

http://www.tflcar.com/2011/01/in-2010-the-top-ten-global-car-makers-that-sold-the-most-cars-are.html

Car Density
Country
Germany
UK
US
Japan
South Korea
Russia
Brazil
Turkey
China
India

(/000 population)
Car Density
565
463
460
455
246
188
158
85
45
13

Car sales % by geography L

13Y

N America

W Europe

E Europe

Asia

Global Auto Report 28Jul11

S America

China
Worlds largest car market 13.8m cars
(2010)
7x India
250 carmakers
20 major MNC players, 40 top brands
Top 10- JV- Global major + locals,
dominate
China- Toyota, GM, VW, Top 3 mimic
Global

Global Unit Sales L5Y

1,00,0
00
900,00
0
800,00
0
700,00
0
600,00
0
500,00
0
400,00
0
300,00
0

20
20
20
20
05
06
07 Report
08
Global Economic
Research
Global Auto

20
09

20
10

INDI
A

CAGR

India- Car industry

dynamics
Exports

L10Y 10.3%
N5Y 10.6%,
Export L10Y 31%

Demographics
50% population < 25
years
Rising PCI
70% cars EMI
Top 10 cities now 45%
(65%)

Manufacturing

2.2m cars to 5m in
N5Y Cost leader,
efficient SCM
Small car proficiency

4.5L cars exported

Growth @ 30%
18% of production

Policy
Stable political, business
envt
Booming local market
GST will drive growth

Performance
2010- 12th largest, 20183rd
2.4m cars, 2018- 5m
Growth@30%, worlds

Indian Automobile Market

Segments (SIAM)

2 Wheelers
Global No 2
Motorcycles
80%
Bikes HH
50%
Scooters
Honda 46%
Mopeds TVS
82%

3 Wheelers
Global No 1
Bajaj 68%
in
passenger
Piaggio
40% in
commercial

Commercial/ SUV
Global No 5
M&M 50%
SUV
Tata 60%
MHV

Industry SWOT
Strengths

Weakness

CAGR 10% +, Cost

leader
Small fuel efficient cars
Frugal approach

Capacities
Weak brands
Quality

Opportunities

Luxury, Rural,
Penetration,
Exports,
2 Wheelers

Threats
Inflation,
Petrol prices,
Interest rates,
Input costs

High industry attractiveness

TONE
Most global
players
present

BOPS
Many
suppliers,
few
specialised
critical

IOC / CR
Consolidated
Top 3- 70%
Global players

BPOB
Spoilt for
choice
Range, price
points, EMI

TOS
Alternate
technologies,
no break
through

Consolidated, oligopoly, Top 3 MS 75%, 30% growth,

competition

Global Rank v India Rank- Top 3 different

Player
Toyota
GM
VW
Ford
Honda
Nissan-Renault
Peugeot
Hyundai
Suzuki
Fiat
Tata

Global Rank
1
2
3
4
5
6
7
8
9
10
18

India Rank
4
5
7
6
8
10
NA
2
1
9
3

M&M (32), Benz 12, BMW 14 http://oica.net/wp-content/uploads/ranking-201

Contribution of India to Global Sales (Units)

Player

India
India Internation
sale
Ops al sale units units

% India
Contributi
on

TM

576534

343695

60

MSI

2589000

1065732

41

HMIL

5740000

603819

11

TKMI

8420000

74759

GMI

8390000

110804

VWI

7203000

53300

VW vs Toyota, played in India, S Banerji, HT, 22Jul11

Why India is significant

Worlds fastest growing car market
2018, 15-20% MS in India will be significant globally
4/ global Top 5 (units), not significant in India, except
Hyundai
Strong ancillary support
Premium; 4%
Mid; 18%
Small; 78%

Indian Car Market 1996-2011

Cars L

Grw%

L10Y MS Car Market

Source: SIAM, ICRAs estimates Till February 2011

Maruti Hyundai Tata

M&M

GM

Ford

Toyota Honda

VW

Fiat

Renault

Export trends
70
60
50
40
30
20
10
0

2002.0

2005.0

2008.0

2011.0

Source: SIAM, ICRAs estimates; Note: Passenger vehicle volumes includes UVs and MPVs; * Till

SUV
2010- 275,556 units , 13% total market @ 10%,
L5Y CAGR 9%
SUVs Rs. 7-11 lacs dominate
Top 3 MS 86%- M&M 53%, Toyota 20%, Tata 13%
Roles- Passengers + mass mover
M&A Tata- Land Rover, M&M- Ssangyong
NPL- premium SUV, leveraging on platforms and
technology
Source: SIAM Data; * Till February 2011

SUV MS L5Y

(Others range from 18% to 12%)

60
50
40
30
20
10
0

2006.0

2007.0

2008.0

2009.0

2010.0

Source: SIAM, ICRAs estimates Till February 2011

2011.0

Average Car model sales 2010 (units)

Alto

MSI

28000

Ritz

MSI

5750

Wagon R
i10
Swift
Dzire
Indica

MSI
HMI
MSI
MSI
Tata

14000
13800
12000
9000
8100

Indigo
City
Estilo
Innova
Scorpio

Tata
HS
MSI
TKM
MM

5000
5000
4250
4000
4000

Omni
Santro
Bolero
i20
Figo

MSI
HMI
MM
HMI
Ford

7500
7000
7000
6500
6500

Vento
Xylo
Spark
Astar
800

VW
MM
GM
MSI
MSI

3600
2700
2700
2600
2500

Eeco

MSI

6000

Beat

GM

2500

Nano

TM

5800

Polo

VW

2400

SIAM figures / Rediff India's hottest selling passenger cars in December 2010

Segment growth L8Y

Segm Length
ent
mm
A1+A2 < 4000

AKA

A3

Mid

200 201
7
1
26
30

18

10

33

133

49

14

-7

-4

38

15

362

38

Passenger Cars

87

22

30

Utility Vehicles

13

13

20

A4
A5
A6

40014500
45014700
47015000
>5000

Small

Contri 200
%
3
78
5.5

Executiv
e
Premiu
m
Luxury

Source: SIAM, ICRAs estimates Till February 2011

Capacity 42.85 L cars, 73% utilisation

Market structure
78%

Leader

Nicher/s

3%

Econom Medium Premium

y
Maruti
Maruti
Honda

Challenge
Tata,
r/s
Hyundai
Followers

18%

GM

Hyundai
Toyota,
VW,
Ford,
Fiat, GM
Nissan,
Skoda

1%
Luxury
BMW

VW,
Toyota

Audi

Fiat,
GM,Skoda

Benz,
Skoda

Mitsubishi

Porsche,
Bentley,
RR

Competition
Top 3 MS 75%, 9 global majors MS 25%, small cars
75%, 24 NPL
2011H1, Top 3 MS down 3.8%, Toyota, VW, Ford up
4.4%
India- 1-2-3- Suzuki-Hyundai-Tata- global strugglers,
well entrenched
Global 1-2-3- Volkswagen, Toyota, GM- bullish on India,
low MS
Honda, Ford, Renault-Nissan- getting act together, top
down, no ULCC

JV / alliances
Compete and collaborate, rising
Trigger- stagnating demand, overcapacity,
commoditization, reduced pricing power, rising
inputs and regulatory norms
Areas- Distribution, technology, manufacturing
and design
Sharing engines/platforms and service network
Fiats tragedy- best diesel engines- used by
Maruti Swift, Tata India- successful, used by Fiat

JV / Alliances
Alliance

Typ Motive
e

Status

Maruti-Suzuki

JV

India small car project, now No Active,

1, Suzuki majority

HondaShriram

JV

SIEL- Honda India entry,

majority

Active

ToyotaKirloskar

JV

TKML- Toyota India entry,

majority

Active

Fiat Tata

SA

Manufacturing/ distribution
sharing

Active

VW-Suzuki

SS

20% Suzuki stake- small car

capability

Active

GM- HM

JV

Opel manufacturing

Dissolved

MahindraFord

JV

Ford India entry, Mahindra PV

entry

Dissolved

MahindraRenault

JV

Renault India entry

Dissolved

Reach
Player
Maruti

Entry
1983

Citie Deale
s
rs
805
950

Expansion
2012-13
1050

1996

290

337

360

1999 (cars)

150

250

300

1994

210

250

300

1996

71

120

150

2000

55

117

150

1998

100

159

180

2001
(Skoda)
2005

56

67

100

23

23

45

60-70% revenues from service / spares

Policy drivers
Bharat Stage IV- cars > 1 engine type- petrol,
diesel, CNG
ED waivers- cars <4 meters, <1.2L petrol /1.5L
diesel engine
Helped grow exports, significant hub
GST ^18% < Current taxes 22%, drive boom

Maruti strategy
Suzuki- early entry, 1980s- JV GOI
Significant to Suzuki - 23% sales, 56% profits, 65%
growth
Big in small cars- defend MS 42%, credibility
Entry choice- Alto, Estilo, Swift, A-Star, Eeco and
Ritz
Scale, NPL, efficiency, low ownership cost, non
urban 20%
Range, reach, price points, service, key segments,
choice

Hyundai strategy
Hyundai- 327 dealerships , 679 service points
Innovator- tall boy-small cars ( Chose NPL Santro
over Accent)
Succesful brand offerings- Santro, i10, i20, Getz,
Verna, Accent
NPL sub Santro 800 cc HA @ 2.3-2.8L v Alto
< scale & reach than Maruti, export leader
Big in small, mid cars, scaling up executive, absent
premium+

Tata
Cars MS 18% 2007 to 13% 2011
Weakest in Top 3, lacks technology, slow NPD
Nano- delivered, others gave up
Nano- 10,000 Dec10 to 3250 Jul11, NPL Diesel
79% sales from premium model, not base model
Indica / Indigo too many extensions over 10 years
NPL Dolphin, priced above Nano
Improve tier-II /III markets reach, 300 dealers,
portfoilo

Aggressive MNC decline strategies

NPL/Avatar
Price cut

Penetratio
n

Maruti

Hyundai

Toyot
a

Ford

Swift,
SX4

Verna

Etios,
Liva

Figo,
diesel

All
models
except
Swift

Santro

GM

Honda

VW

Brio
City,
Jazz

Vento,
Polo

Free
Insurance
Low EMI
Warranty

2011 Q1, low growth- Inflation, high interest rates, fuel

price
New models, fast delivery, price cuts, freebies

Toyota v VW- India strategy

India to decide Global No 1 in 2018
Toyota (retain)/ VW (attain) No 1, both untested
VW and Toyota- highly aspirational
Key- small, cheap, frugal cars, both no expertise

Strong- China, EU, Brazil

L4Y in India, 3% share
Entry- Skoda
Small cars- expert
premium
Vento- India specific
Multi model launch
Long term approach

Strong- US, Japan, APac

L10Y India, mediocre
Entry Qualis SUV
Small cars- no expertise
Etios, Liva, India specific
One model, consolidate
Long term approach

Volkswagen
Global 3rd, GMS 11%, 13 marquee brands, target
Top3 by 2018
Entry 2007- 3% MS in 3Y, others took > 10Y
Aggressive pricing- Vento < Honda City, Polo < i20,
Jazz
Full portfolio- Audi Luxury, Skoda Luxury (Superb) to
Mass (Polo)
Strategy- range- entry to luxury, high localisation,
fuel efficient

Toyota
1999- JV Toyota Kirloskar Motors Limited, Qualis- SUV
(withdrawn)
High end- Camry, Corolla, Innova, Fortuner (addressed
12% market)
Etios, Liva- developed and adapted for India, now 45%
market
175 Toyota dealerships, 40% in tier-II markets
Boost EM share from 40% to 50% in N3Y,
Capacities, affordable, fuel efficient models

Ford
Demand but constrained by capacity, investing
$1b

2nd factory, Sanand, Gujarat engines and

assembly

Successful NPL- Figo small car, 75% of Ford sales,

NPL diesel
1.54% MS to 3.54% Broke image of high cost, high maintenance
brand
NPL- Fiesta sedan

GM
Started 1990s, JV- HM and Mahindra, dissolved
India focussed- premium to value in small / medium
cars
Extended Chevy legend- extended - Spark, Beat,
Optra
6 NPL, 14 variants N2Y, enter all segments, diesel,
choice
NPL SUV with Chinese JV partner, NPL 2012 Electric
car

Honda
Mid 19902- JV SIEL, commands premium, super
engines
Stretch model into avatars- City, Civic, Accord
Extend base model to hatchback and sedan
Lack diesel engine and small car presence
City and Jazz, walloped by Vento/ Verna and i20/
Polo
High localisation, reduced prices, NPL Brio

Renault- Nissan
2011- late entry, Fluence Rs15L, establish
brand Renault
2011 SUV Koleos
2012- mass hatchbacks, affordable SUV Duster
2013- 100 dealership in 70 cities
2014- 100,000 cars
2015- 5% MS (Took 8-10 years in Brazil)
Shorter learning curve

Fiat
Legend in India, not leveraged
50:50 JV with Tatas- car sales
Target- 5% MS, 1.3L cars ( currently 25000 cars)
Small car < Rs 2 L- take on Nano, 800
Punto, Linea
Weak link- sales and service network

Segments
Hatchbacks- small passenger 5 door car with fullheight rear door for luggage- A Star, Alto, Santro,
Getz, Palio, Fusion, Beat
Sedan (Saloon)- Regular car body, 4-5 passengers,
4 door car- City, Civic, Dzire, SX4, Verna, Accent,
Indigo, Corolla, Camry
SUV (Sports Utility Vehicle)- huge engine, bold and
boxy look, aggressive looks, long drives and
adventure, fuel guzzlers, Fortuner, Sumo, Safari,
Captiva, Scorpio, Xylo, Land Cruiser, Land Rover,
Pajero
Luxury- lavish, comfortable, expensive, high end
features, social prestige- Audi, Bentley, BMW, Benz,
Lexus

Entry
<2L
Maruti
Suzuki

Value
2-3L
800,
Alto

Hyunda
i
Tata

GM
Ford

Nan
o
Spar
k

3-4L

4-6L

High End
6-10L

10-15L

Premium
15-25L

A
Star,
Eeco

Wagon R, SX4
Swift,
Estilo,
Dzire, Ritz

Santr
o, i10

Getz

I20,
Accent,
Verna

Elantra

Indica

Indigo

Manza

Safari,
Sumo
Grande

Beat

Aveo

Optra

Cruze

Fiesta

Endeavour

Jazz,
City

Civic,
Accord

CR-V

Figo

Honda

Kizashi

Sonata,
Terracan,
Santa Fe

Captiva

FIAT

Punto

Linea

Toyota

Liva

Etios

Corolla,
Camry,

Innova,
Fortuner

Vento

Jetta

Passat

Phaeton

VW

Polo

Economy<Rs 5 L

Player

Maruti Suzuki
Hyundai
Tata
GM
Ford
Honda
FIAT
Toyota
VW
RenaultNissan
BMW

Mini

Entry

Comp
act

Medium Rs 5-10L
Mid

Sedan

Hiend

Premium >Rs
10L
Pre
miu
m
1025

Lux Opule
ury nce
25- 50+
50

What matters most?by segment

Price
Mileag
e
Brand
Design
Presti
ge
Comfo
rt

Small

Mid

1
2

1
2

3
5
4

3
4
5

1
4
5

1
3
2

2
3
1

Most important

Executi Premiu Luxur

ve
m
y
2
5
5
3
6
6

2nd most important

Least important

Survey of 120 car customers NMIMS FMBA 2010

Entry segment
communication
Tag line
Theme
Target

Car

Fir
m

Alto

MSI Lets Go, Aapka

saccha hum safar

Economy,
affordability

1st time buyer,

20-30, young
family

Wagon MSI For the smarter

R
race

Smart, utility,
fun

25-35, upgrade

Estilo

MSI Take a fresh view

of life

Cute

Young family 2535, upgrade

A Star

MSI Stop @ nothing

Design, Zippy
car

20-30, entry

Santro HMI 1st car, 1st choice

Value, tall boy

Entry, upgrade,
family

i10

HMI Catch the I

Technology,
style

Upgrade, 25+

Indica

TM

High value,
feature laden

25+, economy
conscious, family

More car per car,

Changes

Mid segment
communication
Tag
line
Theme
Target

Car

Fir
m

Getz

HMI Drive global,

Gets you
everywhere

Space for family,

friend, fun

25-35, young /
family

Chevro
let
Aveo
UVA

GM

Bad dil badi

car

Spacious

25-45, big family,

long travel

Punto

FI

Bold new
drive

Confident
youngsters

25-30

Swift

MSI You are the

fuel

Happening car,
peppy

20+, Vibrant
couple

Ritz

MSI Live the

moment

Manage work and

fun

Urban working
couple

i20

HMI Uber cool,

I got it all

Cool,
contemporary,
superior

30+, style
seeking

Luxury Global
Demand- BRIC, global recovery
Top 3 luxury brands- German, all above 1 m units pa
BMW No 1, Audi No 2, pipped Mercedes,
High EM growth
Porsche, 60659 units @ 37%, Cayenne SUV,
Panamera sedan
Bentley (VW) 2978 units @ 20%
Rolls-Royce (BMW) 1592 units @64%
Mini (BMW) 141,913 units @30%

Luxury Global
BMW

Audi

Mercedes

No 1

No 2

No 3

Units (H111)
L

6.8

6.5

6.1

Growth%

18

18

10

Germany

China

Germany

US, China,
Brazil, India

India 100%,
Brazil 47%,

China 52%, Russia

71%, Brazil@ 35%,
India 40%

Global rank

Largest
market
Key markets

Key driver

Emerging markets

Luxury India
1% contribution, 70% growth, 17,000 units
Dynamic shift- affluent population + high
disposable incomes + extravagant lifestyle
SUV + flaunt value + festivities + gifts
Down ageing- 45 (Professionals) to 30s
(intra/entrepreneurs)
Porsche Cayenne Rs 95L, after 1 year use value <
Rs 75L
Increasing rural demand

Luxury India 2010 @ 70%

Rank
1
2
Units
6246
5819
MS%
41
39
Growth%
73
80
Key
BMW 3 (2432) E-Class (2,490),
brands
BMW 5 (2403)
C-Class
BMW 7 (535)
(2,070),
SUV
(M, GL, R) 523
Brand
Strong, highly
Prestige, world
desirable
class luxury xp
Target
<40 years
> 40 years
Focus
Expand reach
Tier II

3
3003
20
81
SUV Q7
A4,A6,A7

Exciting
Sporty
NPL- A8L

Luxury segment positioning

Luxury + Status

Luxury +
Performance

Sporty + Luxury

Affordable +
Luxury

Positioning of other car

firms
Firm
Positioning
Maruti
Hyundai

High value, range, reach,

service
VFM, resale, range, reach

Tata

Trust, economy

GM

Leading automaker

Ford

Driving pleasure

Toyota
VW
Honda

world class quality, long

term value
German, technology,
leading player
Great engines and design,
VFM

Perceptual map

Low Tech

Hi Tech

Value

Premium

Prestige

Competitive strategies
Market

Leader

Maruti

dominance

Challenger

Hyundai, Tata

(Competition

Follower

GM, VW, Toyota,

based)

Nicher

Ford

Innovation

Pioneers

Maruti, Santro

(NPD, NDS,

Close followers

Hyundai, Tata, GM

Tech)

Late followers

VW, Toyota, Ford54

Growth strategies
Organic

Maruti

Inorganic

Tata-JLR/Daewoo, MM-Ssangyong, VW, BMW

Integration

Vertical
Horizontal Tata, M&M, VW

Diversification

Related

Maruti- Used car, finance, driving school

M&M- Kinetic, Reva

Unrelated
M&A

MM-Ssangyong, VW, BMW

Strategic M&A

Tata- JLR, Tata- Daewoo trucks

Strategic alliances

Tata-Fiat, GM-SAIC, Fiat diesel

engines
55

Marketing warfare strategies

Warfare

Strategy

Illustrations

DEFENSIVE
(Market Leader)

Block strong
competitive
moves
OFFENSIVE
Exploit leaders
(resourceful # 2/3 weakness
who can match#1)

Maruti- NPL, range, reach,

branding, network, reposition,
grow the market
Hyundai compact-mid size car
range, NPL

FLANKING
(# 4-6, or leader)

Maruti SX4/Kizashi, Chevrolet

Beat, Ford Figo, Hyundai lower
Santro, Toyota Liva / Etios
VW Vento / Polo

Enter uncontested
space, surprise.
Leader may also
flank
GUERILLA (Small, Hit and run
low/no resource
strategy
player)

Firms use a combination of strategies to protect/ grow own or

attack competitor business

Defensive marketing warfare strategy

(Leader/major)

Pre-emptive strike
Position Defense
Mobile defense
Counter-offensive

Attack before attacked

Erect fortifications
Constantly change positions
Attack attackers weak point

Maruti- Full range and reach

Maruti- Sensitive price points, NPL
Psychographic segmentation
Drop prices, promotion, cost leader

Strategic withdrawal

Retreat and regroup

Flank positioning

Strengthen flanks

Withdraw Esteem, Baleno, Zen

launch NPL
Maruti in premium

Deterrence

Keep competitors out of market

Maruti in small cars, penetration

Frontal Attack

Confront head-on

Hyundai / Tata in compact range v

Maruti

Encirclement
Leapfrog

Envelop opponents position

Dont confront, bypass rivals

VW with full range, M&M in SUV

Tata Nano new segment

Flanking

Followers- play in areas less

Toyota / GM / VW/ Ford economy
important to leader; Leader- take on
price warrior, challenger

Guerilla

Limited resources, never face to

Market strategies
Strategy
Produc Design
t
Produc Features
t
Produc Brand extensions
t
Produc Localization to cut down
t
costs
Produc Economies of scale and
t
scope
Produc Technology tie up
t
Produc Relaunch / reposition
t
Produc Flanking

Lead
er

Challen
gers

Followe
rs

Nich
ers

Market strategy
Strategy
Pricing

Drop price

Promotion

Ads, warranty,
offers,
contests

Promotion

Loyalty bonus

Cooperative

JV, alliance

Internationa Export Hub

l
Place

Increase network

Place

Penetrate
markets

Related
diversificati
on

Used cars
Car finance
(Own)

Lead Challeng
er
ers

Follow
ers

Nicher
s

Brand strategy
Corpora
te

Product brand

Sub brand

Maruti

Alto, AStar, Eeco, WagonR, Ritz,

SX4

Zen-Estilo, Swift, Dzire

Hyundai

Santro, i10, i20, Accent, Verna,

Santa Fe

Getz- Prime

Tata

Nano, Safari

Indica- Aqua, Saffire

Indigo-CS, Manza
Sumo- Victa, Grande

Toyota

Liva, Etios, Corolla, Camry,

Innova, Fortuner

GM

Chevrolet

Beat, Captiva, Spark, Cruze,

Aveo, Optra

Ford

Figo, Fiesta, Fusion, Endeavour

Ikon- Flair

VW

Polo, Vento, Jetta, Passat,

Phaeton

Honda

Jazz, City, Civic, Accord, CRV

Fiat

Punto, Linea

Nissan

Micra, Fluence, Teana

Endors
ed

References

Aggressive moves in motown, ET 8Aug11, CHANCHAL PAL CHAUHAN NEW DELHI

Turbocharged Race ET p10 4Aug11
VW vs Toyota, played in India S Banerji, HT, 22July11
Fiat To Adopt New Retail Strategy India, Carzy, 30Dec10
Indian automobile market http://business.mapsofindia.com/automobile/market/
HatchBacking, ET BE P3, 10Aug11, P Chamikutty
Indian Passenger Vehicle Industry: An ICRA Perspective
Luxury car sales in India zoom at 70% in 2010, Mail Today, New Delhi,January 11,
2011|Updated11:21 IST
15 July 2011HAITHAM RAZAGUI Audi takes second place in global luxury sales
race
http://www.goauto.com.au/mellor/mellor.nsf/story2/333D46745700EDE6CA2578
CE00252BEE
Industry statistics http://www.siamindia.com/scripts/industrystatistics.aspx
Study of the relevance of perception in the A2 segment in the Indian car market
http://www.slideshare.net/gopal_capricorn/consumer-behaviour-group-project-a2
-segment
Rediff- Indias hottest selling passenger cars
http://www.rediff.com/business/slide-show/slide-show-1-auto-the-hottest-sellingpassenger-cars-in-india-in-dec-2010/20110111.htm?print=true
Global Economic Research Global Auto Report
28Jul11 Scotiabank group
http://www.scotiacapital.com/English/bns_econ/bns_auto.pdf

Strategy
Range & choice
New models / variants
Product innovation
New segment entry
Drop price
Promotion (Ads, warranty, offers,
contests)
Loyalty bonus
JV, alliance
Export Hub
Car finance
Design
Features
Brand extensions
Driving school

Leader

Challenge
r/s

Follower/s

Nicher/s

Strategies- LCFN

New model / variants

launches
Product innovation
New segments
Drop prices
Promotion
Loyalty bonus
JV, alliance
Export Hub
Car finance
Design
Features
Extensions

Driving school- maruti

Penetrate rural, semi-urban
markets
Increase reach through network
Used cars
Localization to cut down costs
Economies of scale and scope
Technology tie ups