Industry Awareness
Automobile Industry (Passenger Cars and Utility Vehicles)
8/24/2014
IIM Indore
PGP1, Section E, Group 7
Overview of the Industry
In India Automobile Industry is one of the key sectors of the economy. It acts as one of the key drivers of the economic growth due to its deep forward and backward linkages with several key segments of the economy. The Indian automobile industry after de-licensing in July, 1991 has grown at a spectacular rate of 17% on an average for last few years. The export in automobile sector has grown on an average CAGR of 30% per year for the last five years. Even with this rapid growth, the Indian Automotive Industry’s contribution in global terms is very low. This is evident from the fact that even though passenger and commercial vehicles have crossed the production
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Passenger cars accommodate not more than 8 seats in addition to driver’s seat.
Under Passenger cars segment there are four types of vehicle categories:
a. Small (upto 4000 mm)
b. Mid-size (4001-4500 mm)
c. Executive (4501-4700 mm)
d. Premium (4701-5000 mm)
e. Luxury (>5001 mm)
Small segment of passenger vehicles continues to dominate with 76.1% market share in 2014. Maruti Suzuki continues to dominate the small segment of passenger cars in India. The mid-size segment’s market share is estimated at 22.2% followed by executive, premium and luxury segment with 1.2%, 0.2% and 0.02% market share respectively in 2014.
% Share of domestic Passenger vehicle
Year 2006 2007 2008 2009 2010 2011 2012 2013 2014
Small 75.5 77.3 77.16 76.62 78.05 77.99 78.00 75.40 76.19
Mid-size 21.11 18.29 18.75 19.8 18.08 18.47 19.40 22.64 22.28
Executive 3.12 3.81 3.51 2.76 3.04 2.63 2.00 1.43 1.28
Premium 0.71 0.56 0.52 0.74 0,75 0.82 0.50 0.48 0.23
Luxury 0.01 0.04 0.07 0.09 0.08 0.10 0 0.05 0.02
Total 100 100 100 100 100 100 100 100
In the early 20th century, American philanthropy matured with the development of a very large and highly visible private foundations created by Rockefeller, and Carnegie. Henry fords Model T was not only successful because it provided cheap transportation on a massive scale, but also because the car signified innovation for the rising middle class and became a powerful symbol of America 's age of
More automobiles were manufactured and bought by people that made their life much easier. However, the machinery was dangerous and laborers worked for unfair employers. “You are surrounded… with an infinite number of comforts and conveniences which had no existence two or three centuries ago and those comforts are not only used by a few, but are within the reach of almost all men. Every day is adding something to your comforts” (Document 9). Every day, new machines and devices were developed for the satisfaction of the people who used those contraptions.
6.8 10 Air Conditioner 0 2.4 0.2 0 0 2.6 Electrical System 2.8 2.4 0.2 0 3.4
33.385 million =10.235 million * exp (0.12*10) is the value of the of the population when the rate changes by an increase of 2%. 38.950 million =10.235 million * exp (0.14*10) is valuation of the future population when the rate increases by 4% from its original rate of 10% for a total rate of 14%. Each input is accurate in comparison with its Excel counterpart, however, the Word calculations will have greater precision due to the estimation of the of the Excel counterparts.
According to an encyclopedia source,by 1919,”the need for a planned system of national highways became discernible with the proliferating common use of cars in the United States”(Source #4).In addition, another source claims that “more than 90 percent of the nation’s households have access to automobiles”(Source #7).As directly indicated by these two sources,automoibles weren’t a luxury,but rather they were true necessities for many. While cars were being produced between 1908 and 1927,specifically that of Henry Ford’s Model T,many people now wanted to travel however needed an effective system that would be able to save them much more time. As a result,these very crucial interstate highways have ultimately expanded
3. In this experiment, the percent yield was 90%. This number implies that there was little error in this experiment. However, this result could have been caused by certain external factors.
Peugeot is one of the most well-known French automobile manufacturer companies, founded in 1810 by Armand Peugeot. With many successful sales worldwide, approximately 2.973.000 vehicle sales during 2015 and remarkable rewards, Peugeot can be considered as one of the leading companies in the European and global automotive industry. As noted in the ‘’New Cars Industry Profile: France’’, the companies’ revenue for 2016 was $72.563 million (p.24). All companies, regardless of the industry they belong to; in order to thrive they have to successfully conduct customer segmentation. In other words, they need to divide their potential customers into groups that share common characteristics, needs, etc.
INTRODUCTION: Mercedes Benz is a globally known brand, originated in Germany. Benz is specialized in automobiles like cars, buses, trucks, etc. EXTERNAL BUSINESS ENVIONMENT: The automobile industry is a multi-billion industry with large brands in market. It’s important to carry out analysis on microenvironment before formulating strategies.
The Automobile business is a blend of organizations and companies engaged with the plan, advancement, assembling, promoting, and offering of vehicles. External environment is outside influences which has an effect on the industry. The environment factors help the industry to go through vast changes. Emergence of new competition have huge impact on vehicle development and design. Advancement of technology has helped the industry to use more high-tech driving capabilities.
The demographic characteristics of the average of the BMW owner are aged 30-50 for both male and females. For example, those who are bachelor could go for one with performance and married couples with two or three children can go for the family size vehicle. BMW Company tries to generally target both males and females with a high loyalty to the car as a product. Psychographic segmentation BMW Psychographic segmentation divides buyers into different groups based on social class, personality and attitudes.
The customers of Mercedes Benz look for products that have certain benefits that hold value for them. Therefore, in terms of benefits sought, they seek for high-end integrated technology and functioning of the car, along with consistency in performance and most importantly they will look to purchase cars that will offer high sustainability and reliability. The Mercedes is purchased among customers that heavily use the product on a daily basis. As mentioned in the demographics segmentation section that people who purchase these cars are in the high income class group, which means that these customers will regularly use a mode of transportation to travel to workplaces.
SUBMITTED BY TEAM DIGBY ASWANTH KUMAR (13UTA07) LAVANYA V (13UTA19) PRIYANKA R (13UTA27) VIGNESH.P (13UTA37) SHRUTHI.R (13UTA46) I) EXECUTIVE SUMMARY Harley Davidson is an American motorcycle manufacturer who is known for their heavy weight motor cycle. Harley has a very strong brand name and reputation.
Introduction BMW (Bayerische Motoren Werke AG) is a German automobile company which was founded in 1916 and is headquartered in Munich, Bavaria, Germany. BMW is now one of the largest car manufacturer in the world for its exceptional level of quality and producing cars with sporty driving characteristics. The BMW company 's slogan in English is "The Ultimate Driving Machine" or Sheer Driving Pleasure" which was originally translated from German slogan which is "Fraud am Fahren.” In addition to cars and motorcycle, BMW also operates an aircraft engine under the brand name which is known as Rolls Royce.
The company exports its vehicles to over 120 countries across the globe. The company aims at providing the best technology and performance driven cars to the Indian middle class segment at an affording prize. The company also commits to safety to provide safer ride on the Indian roads. The company has a Workforce of 12,500 employees and a service network