Small Car Industry Case Study

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The automobile small car sector is changing at a dramatic pace. India’s rapid economic growth during 1990s has raised per capita income significantly which has impacted Indian car consumption pattern change from earlier observed pre-liberalization period. Consumer buying behaviour pattern in automobile small car sector has attracted great interest to a number of researchers as it is riding a wave of change. India is one of the fastest growing economies in the world. The Indian Government’s economic reforms aimed at removal of economic imperfection in various sectors of the economy in July, 1991. The economic reforms anticipated to change the national income and standard of living of the Indians. Consumption expenditure in India was anticipated…show more content…
LITERATURE REVIEW In the 20th century Original Equipment manufacturers focused on similarities of consumers, and in 21st century it focuses on understanding differences among consumers. India's fast-paced economic growth has helped companies to find growth opportunities in this sector. PricewaterhouseCoopers (PwC) forecasts India market performance in last decade was underpinned by natural demand driven by the country’s economic performance, low levels of vehicle ownership and rising middle class. Low economic growth; along with rising petrol prices and elevated interest rates created strong changes in the Indian vehicle market, and instability in petrol and diesel prices added to uncertainty in the sector. Insightful understanding of the competitive environment is a critical ingredient of a successful strategy. The following trends in society are having a high impact on attitudes and consumer purchase behaviour in the 21 st…show more content…
Emergence of information intensive society: The growing awareness of trends has been fuelled by the internet and lifestyle media. As a result, the characteristic Indian middle class consumer is conscious not only of the styles but also about the lifestyle attributes connected to the product, leading to the significant consumption changes. Increase in Living standard: In a period characterized by consumption many households own the necessities of life .Now with the economic boom, and with consumerism, urban India is fast catching up with the economic growth, and lifestyles have changed With the emerging trends in consumerism, most of the Indians refrain from purchasing luxury items, as they believe it to be unimportant in their lives but are less likely to reduce their spending on household facilities and lifestyle essentials like education and public

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