AUTOMOBIL ES

Prepared by: Wilson Dsouza - Roll No 08 Puneet Khalsa - Roll No 12 Amresh Kshirsagar - Roll No 15

Agenda

Overview 5 major companies Products and pricing Distribution Marketing Strategies Gov. regulations and legal issues Marketing Issues Differences/Gaps Conclusion

Automobile industry
Tenth largest in the world with an annual production of approximately 2 million units

AUTOMOBILE

2 WHEELER

3 WHEELER

PASSENGER VEHICLE

COMMERCIAL VEHICLE

History of Automobile Industry

As the infrastructure developed demand for vehicles increased The car, as we know it, took shape in 1890s Entry in this sector was easy Mr. Henry Ford father of Automobile industry entered with idea of Automobile Price Elasticity Since then the show started and after world war II European countries started concentrating on this sectors as there was heavy potential growth in it

Overview

Driving the most luxurious car has been made possible by the stiff competition in the automobile industry in India, with overseas players gathering the same momentum as the domestic participants. Every other day, we have been hearing about some new launches, some low cost cars - all customized in a manner such that the common man is not left behind. In 2009, the automobile industry is expected to see a growth rate of around 9%, with the disclaimer that the auto industry in India has been hit badly by the ongoing global financial crisis.

Initial Years Manufacturing was licensed

Early to mid 90s Sellers market and long waiting periods Delicensing in 1993 Removal of capacity restrictions Decrease in customs & excise

High Customs duty on import

Steep excise duties & sales tax

Evolution of Automobile Industry Mid 90s Early 2000s

Buyers market Increase in Indigenization Easy Auto finance Manufactures diversifying into related activities: finance lease, fleet management, insurance and used car market

2 Major players: Premier Automobiles Ltd & Hindustan Motors

1980s

Auto finance boom- more Entry of MUL, better product, players (foreign banks & with government support non banking companies, better schemes. Sellers Market Long Waiting Periods

Key players in passenger car segment

There are many players in market for the Passenger vehicles . To name few where like

Maruti udyog ltd Hyundai Motors India ltd Tata Motors ltd Nissan India Volkswagen ltd

Overview Maruti udyog ltd

Maruti udyog ltd ( MUL): was established in feb 1981 through an Act of Parliament ,to meet the growing demand of a personal mode of Transport System. Today it is the largest Automobile company in India. Market leaders in the car segment, both in terms of volume of vehicles Sold & Revenue earned.

Maruti was introduced targeting the middle-class.

Open market for up gradation in its own products with various price variants.

Product and Price of Maruti udyog ltd.

Small & Utility Segment Car (in lacs)
Maruti Suzuki 800 Rs1,98,352
Maruti Suzuki Wagon R 1.0 Rs.3,44,110 Maruti Suzuki Eeco Rs.2,95,194
Maruti Suzuki Swift Rs.4,41,308

Sedan Car (in lacs)

Maruti Esteem Rs.4,30,000. Maruti Dzire Rs .5,05,340. Maruti SX4 Rs.7,18,531. Maruti Kizashi Rs.16,86,411.

Overview Hyundai motors India ltd

Hyundai Motor India Limited was formed in 6 May 1996 by the Hyundai Motor Company of South Korea. When Hyundai Motor Company entered the Indian Automobile Market in 1996 the Hyundai brand was almost unknown throughout India. Hyundai Motor India Limited is a wholly owned subsidiary of the Hyundai Motor Company in India. It is the 2nd largest Passenger Car Manufacturer. Has established India as one of its manufacturing bases in the World . Is planning to Invest Heavily to boost Exports from India. HMIL presently markets 6 models of passenger cars across segments. The A2 segment includes the Santro, i10 and the i20, the A3 segment includes the Accent and the Verna, the A5 segment includes the Sonata Transform and the SUV segment includes the Santa Fe.

Product and Price of Hyndai motors ltd.

Small Segment Car (in lacs) Sedan Car (in lacs) Sport Utility Vehicle (in lacs)

Hyundai Santro 3.75 Hyundai I 10 3.95 Hyundai I 204.64

Hyundai Accent 5.07 Hyundai Verna 6.41 Sonata Transform 14.80 Sonata fe - 21.74

Tata Motors ltd

Tata Motors is a part of the Tata Group manages its share-holding through Tata Sons. The company was established in 1950 as a locomotive manufacturing unit and later expanded its operations to commercial vehicle sector in 1954 after forming a joint venture with Daimler-Benz AG of Germany. Despite the success of its commercial vehicles, Tata realized his company had to diversify and he began to look at other products. Tata Motors has more than 250 dealerships in more than 195 cities across 27 states and 4 Union Territories of India. It has the 3rd largest Sales and Service Network after Maruti Suzuki and Hyundai.

Pricing for passenger cars of TATA

.

Small Segment Car (in lacs)

Sedan Car (in lacs)

Sport Utility Vehicle (in lacs)

Tata Sumo 6.00

Tata Indica 3.75

Tata Indica V2 4.30 Tata Nano 1.49

Tata Manza 6.04 Tata Safari 7.94 Tata Indigo 3.73 Tata Xenon 7.79
Tata Sumo Grande 7.06

Tata Aria - 12.00

Nissan Motor Co. Ltd

Jidosha-Seizo Kabushiki-Kaisha ("Automobile Manufacturing Co., Ltd." in
English) was established on December 26, 1933, taking over all the operations for manufacturing Datsuns from the automobile division of Tobata Casting Co., Ltd., and its company name was changed to Nissan Motor Co., Ltd. on June 1, 1934.
As of 2011, the company's global headquarters is located in Nishi-ku, Yokohama.
In 2005, Nissan setup operations in India, through its subsidiary Nissan Motors India Pvt. Ltd. Nissan Motors has its Manufacturing plant in Chennai and they have around 70 dealers across India.

Nissan Motor Co. Ltd

Nissan Products

Nissan Micra (Small segment cars) 4.30 Lakhs

Nissan Teana (High end cars) 22 Lakhs

Nissan X-Trail (High end cars) 22.70 Lakhs

Nissan Sunny Yet to be announced

Overview Volkswagen motors

Volkswagen (abbreviated VW) is the original and biggestselling marque of the Volkswagen Group, Volkswagen means "people's car" in German, where it is pronounced [flksvan]. Its current tagline or slogan is Das Auto (in English The Car) In 1972, Volkswagen breaks world car production record with 15,007,034 units assembled.

In November 2009, Volkswagen and Porsche together surpassed Toyota and became the worlds largest car manufacturing group in terms of production.

Volkswagen motors Ltd

Volkswagen Products

Volkswagen Polo (Small segment cars)

Volkswagen Beetle(Small segment cars)

Volkswagen Vento (High end cars)

Volkswagen Passat (High end cars)

Volkswagen Jetta(High end cars)

RS 4,57,000 - 7,06,200

Rs 21,22,592

Rs 6,99,000 - 9,23,500

Rs 19,20,777- 25,65,000

Rs 14,12,400- 17,86,400

Distribution channel of Automobile industry

Manufacturing Plant

East Dealers

West Dealers

North Dealers

South Dealers

Customers

Customers

Customers

Customers

General Marketing Strategy of Auto industry

Positioning the products as per their target audience Pricing the product as to attract customers Promoting the product by hammering on the technology up gradation to benefit the customers Related Tag line as it creates a feel of the product Launching an adequate product as per the Rural Market Segment Offering lower interest rates which would attract the customers Using Various sales promotional Tool 1) Media Activities like Print, Television, Radio, Electronic Media, Digital Media, Outdoor Media. 2) Participating in the BTL like participating in the Auto Shows across the world.

Regulations-Auto policy
In 2002, the Central Govt. formulated an Auto Policy that aimed at Promoting Integrated, Phased, Enduring & Self Substantial growth of the Auto industry. The Auto Policy allows Automotive Approval for Foreign Equity Investments up to 100% in Automobile Sector & does not lay down minimum Investment Criteria. The auto Policy lay emphasis in R&D Activities carried out by companies in India. - Weighted Tax deductions of up to 150% for in house Research & R&D Activities. Formulation of an Appropriate Auto Fuel Policy to ensure availability of adequate Amount of Appropriate Fuel to meet Emission Norms.

Cont
MoS RT&H: The Ministry of Shipping, Road Transport & Highways. Along with MoS RT&H, ministries such as Ministry of Environment & Forests and Ministry of Petroleum & Natural Gas also have a vital role in the formulation of automotive regulations and standards in India. The Central Motor Vehicles Rules 1989 (CMVR). The Act governs Emission norms and safety standards in India detail.

Marketing Issues

Lack of Experience of foreign Market by Indian mncs. Comparatively New to Diesel Cars. People Resistant to Upper Segment Models in Indian mncs. Heavy Import tariff on fully Imported Models Competition from Second Hand Cars. Product Life Cycle not taken into Consideration properly.

MNCs Closing gaps

Open markets creates stiffer competition among the automotive players. More affordable prices Best in class services More advance versions Proper Market survey Rural markets are on the verge of opening up

Conclusion
Industry across countries meet challenges on new technologies, alternative fuel and affordability of automobile at large through constructive co-operation. The easier we are able to achieve this the better it would be for worlds performance.

Conclusion

Automobiles soon moved from means of mobility to objects of desire It then became statements of social status India has the opportunity to make quality automobile India has the opportunity to bridge the personal transportation divide between the rich and the poor nations in an affordable manner. Today India produces one out of 60 automobiles made in the world. We must aim at producing one out of every ten automobiles made in the world.

Thank you