Evolution of Car World:
Evolution of Car World The automobile industry has undergone significant changes since Henry Ford first introduced the assembly line technique for the mass production of cars. Production concepts, processes and the associated technologies have changed dramatically since the first cars were built. Some 70 years ago, car assembly was primarily manual work. Today, the process of car assembly is almost fully automated .
Current Scenario :
Current Scenario The global passenger car industry has been facing the problem of excess capacity for quite some time now. For the year 2002, the global capacity in the automotive industry was 75 million units a year, against production of only 56 million units (excess capacity estimated at 25%). Efforts to shore up capacity utilization have prompted severe price competition, thus affecting margins and forcing fundamental changes in the industry. INDIAN FOUR WHEELER INDUSTRY The Indian automobile industry developed within the broader context of import substitution during the 1950s. The cars were built mostly by two companies, Premier Automobiles Limited and HM.
Major Players:
Major Players Bajaj Tempo Limited, Fiat India Automotive Private Limited, Ford India Limited, General Motors India Limited, Hindustan Motors Limited. Hyundai Motor India Limited, Mahindra & Mahindra Limited, Maruti Udyog Limited, Skoda Auto India Limited, Tata Motors Limited.
COMPETITOR ANALYSIS HYUNDAI MOTOR INDIA LIMITED:
COMPETITOR ANALYSIS HYUNDAI MOTOR INDIA LIMITED Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company, South Korea and is the second largest and the fastest growing car manufacturer in India . The Santro was given a fresh new positioning — from a ‘complete family car’ to a ‘sunshine car’ denoting a fresh new attitude and a ‘changing your life’ positioning.As the average age of a car owner has declined from around 30-35 three years ago to 25-30, primarily because of changing lifestyles, cheap and easily available finance, etc.
HYUNDAI’S PRICING STRATEGY:
HYUNDAI’S PRICING STRATEGY Hyundai is positioning its new variants on the tech platform. Strapped with 1.1 litre engine with eRLX Active Intelligence technology, the new variants also come with new colour-coordinated interiors, a new front grill and a 4-speed AC blower that makes the air conditioning more efficient.
Slide 7:
TATAMOTORS TATA INDICA – Tata motors flagship brand India's first indigenously designed and manufactured car, was launched by Tata Motors in 1999 as part of its ongoing effort towards giving India transport solutions that were designed for Indian conditions. Currently, the company's passenger cars and multi-utility vehicles have a 16-per cent market share. TATA’S PRICING STRATEGY After the price war being triggered off by Hyundai being the first company to introduce what came to be known as, pricing based on customer's value perceptions , all others followed suit.Telco's Indica came in the range of Rs 2.56 lakh to Rs 3.88 lakh with 4 models. The price-points in the car market were replaced by price-bands. The width of a price-band was a function of the size of the segment being targeted besides the intensity of competition. The thumb rule being 'the higher the intensity, the wider the price-band.'