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Passenger Vehicle Industry

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India represents one of the world’s largest automobile industries. The automobile industry can be classified into two-wheelers, three-wheelers, passenger vehicles and commercial vehicles. Passenger Vehicle Industry is an important sector of the automobile Industry. Increasing buying power of the Indian middle class along with easy availability of financing made passenger vehicles an attractive proposition. Besides, the growing organized used car market has also been a positive growth factor in the used car market of the country. Passenger vehicles are road motor vehicles, other than motor cycles, intended for the transport of passengers and designed to seat no more than nine people. The passenger vehicle industry can be further classified …show more content…

As both types of users have a decent amount option to buy from the market. However, rental car users have certainly a little higher amount of bargaining power because the products will be used for business not for personal use. So, the lesser the price at same quality & features will strive the market. Nonetheless, individual users will also have a higher amount of bargaining power because they will be looking for other features (mileage, design) if not price. Their perception about a brand/model also plays a significant role in their decision making process. Therefore, the bargaining power of buyers can be considered to be …show more content…

So, consumers will prefer to choose the mode of transport which will be cheaper (as the success of Delhi Metro is humongous that it is being adopted by many other major cities). It can be concluded that government expenditure on transportation systems, can be a point of worrying in the long term. Besides, high class two wheelers are also a substitute up-to an extent, especially in the places where congestion is high e.g. Bangalore, Delhi, Mumbai, consumers prefer to ease of driving/ riding which is higher in the case of two wheelers. Used cars (market for which has been increasing) act significant substitute, where middle class buyers and first time buyers go for a used car at a cheaper price than a new car. Rental cars and call-taxis also act as good substitutes for personal passenger cars even though they will be buyers but they will be serving more than 1 customers which will hamper sale figures. The threat of substitutes can be considered to be

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