Car Assignment
Car Assignment
Car Assignment
Submitted By:
AIM OF PROJECT
1) To know the current scenario about the passenger vehicle (Car) market in India.
The first car ran on India's roads in 1897. Till the 1930s, cars were imported directly.
Embryonic automotive industry emerged in India in the 1940s. Following the independence,
in 1947, the Government of India and the private sector launched efforts to create an
automotive component manufacturing industry to supply to the automobile industry.
However, the growth was relatively slow in the 1950s and 1960s due to nationalisation and
the license raj which hampered the Indian private sector. After 1970, the automotive industry
started to grow, but the growth was mainly driven by tractors, commercial vehicles and
scooters. Cars were still a major luxury. Japanese manufacturers entered the Indian market
ultimately leading to the establishment of Maruti Udyog. A number of foreign firms initiated
joint ventures with Indian companies.
The passenger car segment in Indian auto Industry is growing by 8-9 per cent.
The Automobile industry in the Republic of India is the seventh largest in the world with an annual
production of over 11 million vehicles and exports of about 1.5 million. In 2009, India emerged as
Asia's fourth largest exporter of automobiles, behind Japan, South Korea and Thailand. By 2050, the
country is expected to top the world in car volumes with approximately 611 million vehicles on the
nation's roads. A major chunk of India's car manufacturing industry is based in and around the city of
Chennai and hence it is known as "Detroit of India". Chennai accounts for 60 per cent of the
country's automotive exports.
FACTS:
The Automotive Industry in India is one of the largest industries and a key sector of the
economy.
The Indian automotive industry started from 1991 with the government’s de-licensing of
the sector and subsequent opening up for 100 per cent FDI through automatic route.
Since then many large global companies have set up their facilities in India taking the
production of vehicle from 2 million in 1991 to 9.7 million in 2006.
Potential of the Automobile industry:
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 2010, the automobile industry is expected to see a growth rate of around 10-14%.
The turnover of the entire industry in April-February 2009-10 stood at Rs. 1,62,708.77 crore
vs. Rs. 1,28,384.53 crore in the same period last year. India has attracted lot of Multi-national
automobile manufacturers to set up their plants here. Some of the manufacturers who are
manufacturing their automobiles are:
The stimulus packages from the government led to the high growth of the automobile
industry. This made India the fastest growing automobile market in the world, second to
China. Society of Indian Automobile Manufacturers (SIAM) is extremely excited by this rate
and has predicted that the industry will grow at a rate of 10-14% in 2010-11. SIAM released
the annual figures which showed that 1, 22, 92,770 units of vehicles were sold in India during
2009-2010 which is a considerable high from previous year’s sale, 97,24,243 units.
Experts have suggested that factors like the government sponsored stimulus package, low
interest rates and the aggressive competitiveness to launch newer models have contributed to
this growth, which has made India second fastest growing automobile market in the world.
China saw a growth of 42% last year and Germany saw 23% growth. Most other markets in
the world saw a negative growth in their automobile industry.
However the floating automobile industry in India is set to slow down, relatively, and register
a growth rate in the low double-digits in 2010-11, primarily due to the high base effect of
2009-10. It is expected to register a growth of 10-14 per cent this year vis-à-vis the 26.4 per
cent growth of the total industry last year.
Indian Auto Market Growth for the year 2009-10
The domestic automobile industry sales grew 12.8 per cent at 89,10,224 units as against 78,97,629 units in
2009-10.
The automotive industry crossed a landmark with total vehicle production of 10 million units.
According to the Society of Indian Automobile Manufacturers (SIAM), car sales was 8,82,094 units against
8,20,179 units in 2009-10.
The growth of domestic passenger car market was 7.5 per cent
Car exports stood at 1,70,193 units against 1,60,670 units in 2009-10.
The two-wheeler segment, the market grew by 13.6 per cent with 70,56,317 units against 62,09,765 units in
2009-10.
Motorcycles had the upward march, 17.1 per cent in domestic market touching 58,15,417 units against
49,64,753 units in 2009-10.
Scooter segment grew by 1.5 per cent, fall at 9,08,159 units against 9,22,428 units in 2009-10.
Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units against 3,18,430 units in 2009-10.
Medium and heavy commercial vehicles managed a growth of 4.5 per cent against 23 per cent growth in the
year ended March 31, 2010.
Light commercial vehicles sales growth was 19.4 per cent at 1,43,237 units against 1,19,924 units in 2009-10.
Three-wheelers sales rose by 17 per cent at 3,60,187 units against 3,07,862 units in 2009-10.
Note: Nearly two-thirds of the auto component production is consumed directly by Original Equipment
Manufacturers (OEMs).
Market Advantage
“The industry has a strong multiplier effect on the economy due to its deep forward and
backward linkages with several key segments of the economy,” a finance ministry statement
said.
The automobile industry, which was plagued by the economic downturn amidst a credit
crisis, managed a growth of 0.7 percent in 2008-09 with passenger car sales registering 1.31
percent growth while the commercial vehicles segment slumped 21.7 percent.
Cars in India - Times are changing
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 2010, the automobile industry is expected to see a growth rate of around 10-14%.
Amidst all the havoc of the financial crisis of the past two years, it looks like India has a
“sun-rise’ sector to bet on! The Automobile sector especially passenger cars are moving into
top-gear. Although industry predictions are of 10-14 % growth as against 26% last year, yet,
this sector seems to have some smiles to give at the end of 2010-11
Let’s look at some of the history and how we stand in today’s world.
Following economic liberalization in India in 1991, the Indian automotive industry has
demonstrated sustained growth as a result of increased competitiveness and fewer
restrictions. Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki
and Mahindra and Mahindra, expanded their domestic and international operations.
The automobile industry in India is the ninth largest in the world with an annual production
of over 14,049,830 units in 2009-10. In 2009, India emerged as Asia’s fourth largest exporter
of automobiles, behind Japan, South Korea and Thailand. In 2009-10 the Automobile
Domestic Sales increased to 12,292,770 units from 9,724,243 units in 2008-09.
Future Plans:
The Government has prepared a ten-year Automotive Mission Plan (AMP) to draw a
future plan of action and remove obstacles in the way of competition, such as that
required infrastructure be put in place well in time to alleviate its constraining impact on
the growth.
The plan envisages a tax holiday for the industry on investments exceeding $225,000,
100% tax deductions of export profits, and deductions of 50% on foreign-exchange
earnings. It also calls for a one-stop clearance for foreign-direct-investment proposals in
the sector and deductions of 30% of net income for 10 years for new industrial
undertakings.
To bring down the cost of power and fuel, which accounts for 6% of the manufacturing
costs in the auto sector, captive power generation would be encouraged to enable
industries to access reliable, quality and cost-effective power.
At present, India is the world's
Production: According to the Society of Indian Automobile Manufacturers, the Indian
automobile industry has reached double-digit growth for the past three years in a row.
In 2006, the industry produced 10.9 million vehicles, an increase of 16.22% over 2005.
In 2005, production grew 14.5% over the previous year. The production of the
automotive industry is expected to achieve a growth rate of over 20 per cent in 2006-07
and about 15 per cent in 2007-08.
Exports: the cumulative annual growth rate of automotive exports during the period
2000-01 to 2005-06 was 32.92 per cent. Exports during 2006-2006 and 2007-2008 are
expected to grow over 20 per cent.
Imports: Europe is the biggest importer of cars from India, while African nations largely
account for the import of buses and trucks. China is most recently making inroads into
this market. The South-East Asian region is the prime destination for Indian two
wheelers.
Sales:
Investment: Among the car companies that are investing in India are US automakers
General Motors and Ford, Germany's Volkswagen and DaimlerChrysler AG, France's
Renault, Japan's Suzuki, Toyota and Honda, and South Korea's Hyundai.
There is also a boom in auto ancillary companies. India is an attractive outsourcing
destination for global auto companies because of its strong engineering skills and low
costs. Sourcing parts from India is 10-20% cheaper for US auto makers and about 50%
cheaper for their European counterparts.
Auto Components:
This industry grew by over 28 percent between 1995 and 1998, and has been sustaining
double digit growth, clocking 16 percent in 2004-05, and 15 percent in 2005-06. The
Indian auto component industry is quite comprehensive with around 500 firms in the
organized sector producing practically all automotive components; there are more than
10,000 firms total. India’s component industry now has the capability to manufacture
the entire range of auto-components, for example, engine parts, drive, transmission
parts, suspension and braking parts, electricals, body and chassis parts, equipment, etc.
Current Scenario
The Indian automobile industry crossed a landmark with total vehicle production of 10 million units.
Car sales was 8,82,094 units against 8,20,179 units in 2009-10.
The two-wheeler market grew by 13.6 per cent with 70,56,317 units against 62,09,765 units in 2009-10.
Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units against 3,18,430 units in 2009-
10.
Overview
The ICRA's analysis points on the auto sector that the passenger car market in the country was inching towards
cars with higher displacements. The sports-utility-vehicle (SUV) that was getting crowded everyday, would
witness intense competition as many SUVs had been competitively priced, the report said.
Honda, Suzuki, General Motors and Hyundai, the global automakers had already launched their premium SUVs
in the market to broaden their portfolio and create product excitement in the segment estimated at about 10,000
units annually.
In the two-wheeler segment, according to the report, the motorcycles would clock 11.5 per cent rise during 2009-
2010 over its siblings-scooters and mopeds. Scooters sales would decelerate and mopeds would also see the
same. Overseas market would present huge opportunities for the two-wheeler makers.
The commercial vehicles are likely to grow at a CAGR of 5.2 per cent. Heavy commercial vehicles market would
rise at 5.5 per cent and sales of light buses and trucks would achieve 4.7 per cent growth. For the tractors, the
report predicts a growth at 4.6 per cent.
Factors affecting the demand and growth of the auto sector in India
The automotive sector is one of the core industries of the Indian economy. Indian Government’s impetus to the
industry by allowing continuous economic liberalization since 1991 has made India one of the sought after
destination for many global automotive players. The automotive sector in India is growing at around 18 per cent
per annum.
Indian Auto industry has seen a phenomenal growth in the last 20 years. This is due to the convergence of a lot
of positive factors. This article aims to examine at some of these to understand the situation better.
The sales trajectory of automobiles has witnessed a sharp increase since 1990s till 2000. Automobile industry
has greatly benefitted from a sharp increase in demand and has added extra capacity, better research and
development facilities and technological advancement and distribution setup across the country.
Rise in the industrial and agricultural output indirectly helps Indian Auto
industry
Industrial and agricultural output increase has reflected in higher GDP and overall growth of the economy which
is about 9% in the last three years. Higher GDP means more purchasing power. Sales of vehicles for domestic
and commercial consumption have seen high growth in these three years too.
Indian highways and roads have improved a lot in quality and connectivity in the last 20 years. Projects like the
Golden Quadrilateral aim to make even remote areas accessible by road. Some of the National Highways are of
international standards. This has made road transport a viable, cost effective and speedy option both for goods
and passenger traffic.
Industrial growth in the 70s, IT boom in the 1980s and BPO boom in the 1990s have transformed the Indian
middle class. The present generation is able to earn the same levels of salary that their parents were earning
after years of work. This has pushed up the demand for two and four wheelers. A rise in per capita income is also
indirectly responsible for the retail boom and industrial boom for consumer durables. This has pushed up the
demand for commercial vehicles to enable efficient distribution.
Joint families in towns and villages have given away to migration of the younger generation to cities in search of
better opportunities. The new-age educated migrants and nuclear families (many with double income couples)
have a higher purchasing power. Presently, the rate of spread of urbanization is 30% which is likely to increase
by 40% in 2030 (UN). Urbanization has promoted infrastructural development and it is estimated to spread at a
rate of $500 billion in the next 5-6 years
Rising working class and middle class contribute to increased demand of
automotives
Post 1980s, a surging economy has created millions of new jobs in the private sector. This has lead to a lot of
prosperity in the working class and the middle income households. They are able to provide for food, clothing and
education and also are able to think of owning luxuries like vehicles. According to the Planning Commission
report, between the year 2003 and 2009, 130 million people would have been added to the working population.
According to a finding from McKinsey, the middle income group will grow from 50 million to 550 million by 2025.
Indian consumer in 70s and 80s had to choose between and Premier Padmini or an Ambassador. Now there are
at least 123 different models of cars from 30 odd manufacturers available. The prices of the compact cars like
Tata’s Nano has made the world sit up and take note of the truly unbeatable price points.
Most nationalized and foreign banks have very tempting finance options and low interest rates for purchase of
cars and two wheelers. There are specialized companies that finance the commercial vehicles. All this has made
the dream of owning a vehicle an easy reality
Apart from a healthy growing economy, Indian auto industry has a lot to thank the government for the amazing
growth rates. The Indian government has introduced several industry specific programs.
The Indian Auto Policy of 2002, introduced measures like low entry barriers and investment incentives by the
local state governments. To encourage in-house research and development activities, Government has
introduced policies that allow weighted tax deduction up to 150%.
National Automotive Testing and R&D Infrastructure Project (NATRIP) has been set up n in Rae Bareilly,
Ahmednagar, Pune, Manesar, Silchar, Indore and Chennai for strengthening the R&D infrastructure.
According to a study by KPMG in 2007, India Automotive Study, the labour cost per hour hovers around $20 in
UK, USA and Germany. In India, it works out to just $1.60. Due to the huge savings in the labour cost sourcing
auto components and finished cars makes a lot of business sense to the auto manufacturers who have global
presence. The improved design capabilities and continuous improvement in quality has been possible only
because of the availability of skilled manpower like engineers and IT professionals.
The future of Indian Auto Industry:
According to a report from United Nations Industrial Development Organization’s (UNIDO) in ‘International
Yearbook of Industrial Statistics 2008’, India enjoys 12th position amongst top 15 automakers in the world. India
is at the 4th position amongst the auto makers of developing countries. By 2016 the size of the Indian automobile
industry is expected to grow by 13%, to reach a mark of US$ 120-159 billion. Presently, India is the 2nd largest
two wheeler market in the world and fourth largest commercial vehicle market worldwide. With allies in a strong
economy, rising demand and financial backing, Indian auto industry is standing at the threshold of success.
Dimensi
Mileage
Engine Ground on Price Max.
(in Test Special
Capaci Clearan (LxWxH (Approx Spee
Condition Features
ty ce ) (In .) d
s)
mm)
Boasts
Chevrol 3880 x roomy and
Rs. 4.0- 11-12 148
et Aveo 1150 cc 188 mm 1670 x premium
5.0 Lac km/l km/h
U-VA 1495 quality
interior.
Spacious
3495 x
Chevrol Rs. 4.30 13-14 160 Interiors &
1248 cc 145 mm 1500 x
et Beat Lakhs km/l km/h Beautiful
1500
Design.
3495 x Small turning
Chevrol Rs. 3.0- 14-15 150
995 cc 170 mm 1495 x radius of
et Spark 4.0 Lac km/l km/h
1518 4600 mm.
260 litres of
Fiat 3827 x boot space
Rs.3.50- 12-13 131
Palio 1105 cc 170 mm 1620 x expandable
4.25 Lac km/l km/h
Stile 1440 upto 950
litres.
Fiat 1300 cc - 4030 x Rs. 5 - 165 Comfortable
Grande 1473 x Lac km/h Height
adjustable
driver seat
Punto 1490 for better
sitting
posture
3989 x Lighter 1.4 L
Ford- Rs. 6.50- 10-11 160
1399 cc 198 mm 1720 x TDCi diesel
Fusion 7.0 Lac km/l km/h
1529 engine.
3900 x Rs. 6.98
Honda 1190 cc 165
160 mm 1695 x to 7.33 16.1 km/l Magic Seats
Jazz i-VTEC km/h
1535 Lakh
Innovative
3810 x and fuel
Hyunda Rs. 4.50- 13-14 147
1341 cc 160 mm 1665 x efficient 1.3
i Getz 5.50 Lac km/l km/h
1515 L SOHC
engine
New-age 1.1
3565 x L iRDE
Hyunda Rs. 3.50-
1086 cc 165 mm 1595 x - - engine with
i i10 5.00 Lac
1550 electric
control unit.
More sporty
3940 x from the
Hyunda Rs. 5.00-
1197 cc 1710 x outside and
i i20 6.00 Lac
1505 more roomy
from inside.
4245 x Rs. 9.00- 6 Air bags
Hyunda
1396 cc 150 mm 1775 x 12.00 - - for extra
i i30
1480 Lac safety
Improved
fuel
Hyunda 3565 x efficiency,
Rs. 3.0- 12-13 141
i Santro 1086 cc 164 mm 1525 x reduced
4.50 Lac km/l km/h
Xing 1590 emission,
increased
power.
3335 x Low cost &
Maruti Rs. 2.0- 13-14 144
796 cc 170 mm 1440 x highly fuel-
800 2.25 Lac km/l km/h
1405 efficient.
Equipped
with ligth-
3500 x
Maruti Rs. 3.5- 18-19 155 weight KB
998 cc 170 mm 1600 x
A-Star 4.25 Lac Km/l km/h series engine
1490
for refined
performance.
Maruti 796 cc 160 mm 3495 x Rs. 2.50- 13-14 137 Powered
with 32-bit
1475 x
Alto 3.0 Lac km/l km/h computer
1460
technology.
Bigger and
3695 x
Maruti Rs. 4.0- 12-13 156 better with
1298cc 170 mm 1690 x
Swift 5.50 lac km/l km/h European
1530
style looks.
Roomy
interiors, 32-
Maruti 3520 x Bit
Rs. 3.50- 12-13 145
Wagon 1061 cc 165 mm 1490 x Electronic
4.50 Lac km/l km/h
R 1660 Control
Module
(ECM)
Ergonomicall
3535 x y crafted
Maruti Rs. 3.50- 11-12 145
993 cc 165 mm 1495 x seats
Zen 4.00 Lac km/l km/h
1405 withrich
upholstery
Maruti 3495 x Sporty looks
Rs. 3.0- 12-13 148
Zen 1061 cc 165 mm 1475 x and roomy
4.0 Lac km/l km/h
Estilo 1595 space.
Smart
Maruti 3715 x Distributor
1197cc Rs. 4 to
Suzuki 145 mm 1680 x - - Less Ignition
K12M 4.5 Lacs
Ritz 1590 (SDLI)
system
Eye catching
3992 x looks with
Skoda Rs. 5.0
1198 cc 146 mm 1642 x lots of
Fabia Lac
1513 interior
space.
Microprocess
3675 x or based
Tata Rs. 3.50- 12-13 148
1405 cc 170 mm 1665 x Engine
Indica 4.50 Lac km/l km/h
1485 Management
System.
3099 x
Tata Rs. 1.12- 105 Worlds
624 cc 180 mm 1495 x 23 km/l
Nano 1.34 Lac km/h cheapest car
1652
Sedan Cars
Sedan or Saloon is a car model with passenger carrying capacity of four or more persons having two rows of
seats and two or four doors with a separate trunk or boot at the rear side. Sedan cars, carrying high price tag with
them, are featured with host of luxury features like high-end entertainment system, integrated steering wheel,
plush and high class wood and leather work, classy looks, contemporary
and fully efficient security features. In India, recent years have witnessed
big players, like Volvo, Volkswagen and Skoda, entering into this segment
featuring their sedans of pleasurable and comfy luxuries.
Luxury Cars
A Luxury Car is an expensive vehicle, designed and packed with high-end, super comfortable and convenient
features for both the driver and the passengers. Luxury Cars provide ultra modern facilities for plush enjoyment
of the high class drive with greater level of comfort in comparison to other Cars. Unlike the mass-production the
Luxury Cars are made in small quantities with a very heavy price tag sometimes in Crores also. Owning a Luxury
Car becomes a symbol of social prestige. In India Luxury Cars market is growing at sound pace from last five
years and big shots of this segment like Audi, Bentley, Daimler-Benz,
Volvo and Volkswagen are venturing in India to enchash the market
growth.
Dimensi
Mileage Max
Engine Ground on Price
(in Test . Special
Capaci Clearan (LxWxH (Approx
Condition Spee Features
ty ce ) (In .)
s) d
mm)
Four-wheel
drive for
5086 x Rs. superior
Audi Q7 209
2967 cc 206 mm 1983 x 60.0- 6-7 km/l comfort and
SUV km/h
1737 65.0 Lac safety,
superior
suspension.
Audi R8 4163 cc 4431 x Rs.1.17 301 Sporty
stunning
outlook
with state-
1904 x of-the-art
Crore km/h
1249 engine
transmissio
n
technology.
Advanced S
Rs. tronic gear
4041 x
Audi TT 45.0- transmissio
3189 cc - 1764 x - -
Coupe 46.0 n, equipeed
1345
Lacs with ABS
and ESP.
One-touch
power
5410 x folding, 12-
Bentley Rs.4.0 274
6761 cc - 1900 x 5-6 km/l spoke 19"
Azure Crore km/h
1492 aluminum
alloy
wheels.
Strong
masculine
body,
Bentley 4804 x Electronic
Rs. 2.10 312
Continent 5998 cc - 1918 x 6-7 km/l cruise
Crore km/h
al GTC 1398 control
system,
6xCD
changer.
Recipient
of various
5206 x
Mercedes Rs. 70.0 250 awards,
3496 cc 146 mm 1871 x 7-8 km/l
Benz Lacs km/h very
1473
elegant and
luxurious.
Powerful
4.8 litre V8
Engine,
4970 x Rs. 1.41
Porsche 282 Luxurious
4806cc 143 mm 1931 x - 2.01 NA
Panamera km/h interiors,
1418 Crore
100 k.m./h
in 5
seconds.
Volkswag 1584 cc 140 4129 x Rs.20.45 - 180 Compact
en Beetle 1721 x Lac km/h Look,
1498 Curvy
Exteriors,
World
Class
Safety
140 hp of
power, 12-
4765 x way front
Volkswag Rs.25.0- 206
1968 cc - 1820 x - seats, multi-
en Passat 28.0 Lac km/h
1472 function
steering
wheel..
6 speed
automatic
Transmissi
4780 x
Rs.38.0- 240 on,
Volvo S80 3192 cc - 1911 x -
40.0 Lac km/h Collision
1815
Warning
and Control
system.
intelligent
All Wheel
Drive
4807 x
Volvo 2400 Rs. 45- 190 System
218 mm 1898 x -
XC90 CC 50 Lac km/h (AWD),
1784
Ultra Low
Emission
Vehicle.
HYUNDAI
20%
Chart Title
15% 2% 1% 0% 3%
Mini
Compact
Mid size
Executive
Premium
Luxury
79%
Market shares of the segments of the automobile
industry
Industry Automotive
Headquarters Delhi, India
Products Automobiles, Motorcycles
Employees 70,000
Website MarutiSuzuki.com
Maruti Suzuki India Limited a subsidiary of Suzuki Motor Corporation of Japan, is India's largest
passenger car company, accounting for over 45% of the domestic car market. The company offers a
complete range of cars from entry level Maruti-800 and Alto, to stylish hatchback Ritz, A star, Swift,
Wagon-R, Estillo and sedans DZire, SX4 and Sports Utility vehicle Grand Vitara.
It was the first company in India to mass-produce and sell more than a million cars. It is largely
credited for having brought in an automobile revolution to India. It is the market leader in India and on
17 September 2007, Maruti Udyog Limited was renamed Maruti Suzuki India Limited. The
company's headquarters are located in Delhi.
Profile
Maruti Suzuki is India's number one leading automobile manufacturer and the market leader in the car
segment, both in terms of volume of vehicles sold and revenue earned. Until recently, 18.28% of the
company was owned by the Indian government, and 54.2% by Suzuki of Japan. The Indian
government held an initial public offering of 25% of the company in June 2003. As of 10 May 2007,
Govt. of India sold its complete share to Indian financial institutions. With this, Govt. of India no longer
has stake in Maruti Udyog.
Maruti Udyog Limited (MUL) was established in February 1981, though the actual production
commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei car which at the time was the
only modern car available in India, its only competitors- the Hindustan Ambassador and Premier
Padmini were both around 25 years out of date at that point. Through 2004, Maruti Suzuki has
produced over 5 Million vehicles. Maruti Suzuki cars are sold in India and various several other
countries, depending upon export orders. Models similar to Maruti Suzuki (but not manufactured by
Maruti Udyog) are sold by Suzuki Motor Corporation and manufactured in Pakistan and other South
Asian countries.
The company annually exports more than 50,000 cars and has an extremely large domestic market in
India selling over 730,000 cars annually. Maruti 800, till 2004, was the India's largest selling compact
car ever since it was launched in 1983. More than a million units of this car have been sold worldwide
so far. Currently, Maruti Suzuki Alto tops the sales charts and Maruti Suzuki Swift is the largest selling
in A2 segment.
Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti" is commonly used
to refer to this compact car model. Till recently the term "Maruti", in popular Indian culture, in India
Hindu's lord Hanuman is known as "maruti", was associated to the Maruti 800 model.Maruti Suzuki
has been the leader of the Indian car market for over two decades.Its manufacturing facilities are
located at two facilities Gurgaon and Manesar south of Delhi. Maruti Suzuki’s Gurgaon facility has an
installed capacity of 350,000 units per annum. The Manesar facilities, launched in February 2007
comprise a vehicle assembly plant with a capacity of 100,000 units per year and a Diesel Engine plant
with an annual capacity of 100,000 engines and transmissions. Manesar and Gurgaon facilities have
a combined capability to produce over 700,000 units annually. It is listed on the Bombay Stock
Exchange and National Stock Exchange in India.
During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all, over six
million Maruti Suzuki cars are on Indian roads since the first car was rolled out on 14 December 1983.
Suzuki Motor Corporation, the parent company, is a global leader in mini and compact cars for three
decades. Suzuki’s technical superiority lies in its ability to pack power and performance into a
compact, lightweight engine that is clean and fuel efficient.
Nearly 75,000 people are employed directly by Maruti Suzuki and its partners. It has been rated first in
customer satisfaction among all car makers in India from 1999 to 2009 by J D Power Asia Pacific.
Services offered
Current sales of automobiles
Manufactured locally
1. 800 (Launched 1983)
2. Omni (Launched 1984)
3. Gypsy (Launched 1985)
4. WagonR (Launched 2002)
5. Alto (Launched 2000)
6. Swift (Launched 2005)
7. Estilo (Launched 2009)
8. SX4 (Launched 2007)
9. Swift DZire (Launched 2008)
10. A-star (Launched 2008)
11. Ritz (Launched 2009)
12. Eeco (Launched 2010)
13. Maruti New Wagon R (Launched 2010)
14. Maruti Altok10 (Launched 2010)
Maruti cars need no introduction. Maruti Udyog Limited, established in 1981 by an Act of the Parliament holds a
major share of the Indian market and caters to almost every market segment with economic models. Cars from
Maruti
PRICE:
Maruti (Sedan)
Popular Maruti sedan car prices range from cars at a bit above rupees four lakhs forty thousand to cars at a bit
below rupees five lakhs. These Sedans include
Maruti Esteem (Sedan)
Maruti Esteem is India's most popular Sedan. Earlier manufactured as the Maruti 1000, it is now called
the Maruti Esteem. The Maruti Esteem with its petrol variants targets the middle class consumer with car prices
between rupees five and six lakhs. Maruti Esteem variants include
Maruti Udyog is Maruti's first D segment luxury car. It has superb performance along with stylish and
luxurious looks. The Maruti Baleno with its petrol variants targets the middle class consumer with car prices
between rupees six and seven lakhs fifty thousand. Baleno variants include
Maruti (SUV)
Popular Maruti SUV car prices range from a bit above rupees five lakhs to a bit below rupees seventeen lakhs,
including
Maruti Gypsy (SUV)
The Maruti Gypsy is an all terrain Sports Utility Vehicle (SUV) that is
specially designed for Indian conditions. Available in three different versions, hard top, soft top, and ambulance, it
can take on any terrain be it the hills, desert, snow, or even congested city driving conditions. It is the preferred
vehicle of adventure seeking youth in India. At the same time, it is the standard transportation vehicle of the
police and Indian paramilitary forces. Maruti (SUV) The Gypsy with its petrol variants targets the middle class
consumer with Maruti SUVs between rupees five and six lakhs. Gypsy variants include
The Grand Vitara is Maruti's entry into the luxury SUV segment. This SUV
is distinctively designed with imposing front grills to lend a strong measure of audacity to the imposing forward
stance. Additionally the flared wheel arches take in extra strong tyres to counter any type of terrain. The stronger
R16 tyres are a useful asset during congested city drives. The Grand Vitara with its petrol variants targets the
middle class consumer with Maruti SUVs between rupees fifteen and seventeen lakhs. Grand Vitara variants
include
The Omni is a multi utility van for use in business as well as in the family.
The Omni is just right vehicle to use within the city. It offers a turning radius of just 4.1 m, negotiating this vehicle
in tight lanes and congested traffic is an easy job for the driver. There is a lot of space for nearly every family
requirement. It is ideal for individuals who require travel long distances or take their family members for a holiday.
The Omni with its petrol variants targets the middle class consumer with van car prices between rupees two and
three lakhs. Omni variants include
The Maruti Versa is Maruti's larger and more optimum multi utility van with
extensive features and specifications. The Maruti Versa with its petrol variants targets the middle class consumer
with prices between rupees four and five lakhs. Versa variants include
Maruti (Hatchback)
Popular Maruti hatchback car prices range from Maruti hatchback cars at a bit above rupees two lakhs to a bit
below rupees six lakhs. Maruti hatchback models include
It is the most compact car available in the Indian market. It is also dubbed
as the people's car after the efforts of erstwhile Prime Minister Rajiv Gandhi. For many years, it was India's
largest selling car. The Maruti 800 with its petrol variants targets the middle class consumer with Maruti car
prices between rupees two and two lakhs fifty thousand. Maruti 800 variants include
800 AC (Petrol)
The Maruti (Hatchback) is the basic model with standard features and specifications. Basic air conditioning is
also included. This variant has a showroom price of around Rs. 2.22 lakhs and on-road price of around Rs. 2.5
lakhs, which is inclusive of all charges such as insurance, octroi, RTO, etc.
The Maruti Alto has overtaken the Maruti 800 as the most popular car in the
Indian Market. The Alto comes with great looks and a superior feel, yet with the economy and easiness of the
Maruti 800. Maruti (Hatchback) The Maruti Alto with its petrol variants targets the middle class consumer with car
prices between rupees two lakhs fifty thousand and three lakhs fifty thousand. Alto variants include
Alto Lx (Petrol)
The Maruti Alto Standard is the upscale model with improved features and specifications. The 2.5 G4 (7Seater)
Diesel is now available at a showroom price of around Rs. 2.72 lakhs with an on road price of around Rs. 3.04
lakhs including supplementary statutory charges.
The Zen is now called the Zen Estillo, which is Spanish for style. The new
Zen Estillo has a perfect aerodynamic shape and a unique bean shaped body. The Zen with its petrol variants
targets the middle class consumer with prices between rupees three lakhs and four lakhs. Zen variants include
The Maruti Swift is a new kind of low slung, wide body compact car that is a
bit European but a lot more Japanese. Maruti has included a load of features on the exterior as well as the
interior to give this car a sense of flawlessness and excellence in looks and performance. The Swift has more
room and more aesthetic looks than any other car in the compact segment. The Maruti Swift with its petrol
variants targets the middle class consumer with prices between rupees four lakhs and six lakhs. Swift variants
include
Maruti (Wagon)
Popular Maruti models range in price from a bit above rupees three lakhs to a bit below rupees five lakhs,
including
Maruti WagonR (Wagon)
The Wagon R is yet another stunning family car from Maruti's stable.
Although it comes with a boxy van-like look and posterior, the Wagon R has an exterior that makes every one
stand and notice its presence. The curves and lines of the exterior designing add to the beauty of the vehicle.
The Wagon R with its petrol and LPG variants targets the middle class consumer with prices between rupees
four lakhs and five lakhs. WagonR variants include
WagonR LX (Petrol)
The Wagon R LX is the basic model in the Wagon R series. New cars in this series have a showroom price
ranging from around Rs. 3.3 lakhs to around Rs. 3.7 lakhs including other charges such as RTO, insurance, and
others.
WagonR Ax (Petrol)
The Wagon R AX is the top range model in the Wagon R series with enhanced features and specifications. It
comes with automatic transmission. At the showroom, this car costs around Rs. 4.58 lakhs with an on-road price
of around Rs. 5.1 lakhs. This includes standard ancillary charges also.
With opening up of the economy and re-entry of foreign competitors in the domestic car market, Maruti cars face
a tough challenge and the company is continuously improvising Maruti car models to maintain its lead.
MARKETING STRATEGIES:
MARKET SHARE:
SEGMENT1: Maruti 800,omni
SEGMENT 2;Zen,Alto,Wagon R
SEGMENT 3:Swift,Esteem,Baleno
SEGMENTATION:
CAR SEGMENTATION
SEGMEN PRICE
T RANGE CARS
Fiat,Palio,Esteem,Tata indica,
Indigo
Innova,SX4
10.0-
D 15.0LACS Octivia,Corolla,Civic
15.0-
E 30.0LACS Honda CRV,Maruti Grand Vitara,
Honda accord
(Rs. in Million)
Year Net Sales Year Net Sales
2004-05 1,09,108 2005-06 1,20,034
2006-07 1,45,922 2007-08 1,78,603
2008-09 2,03,583 2009-10 3,01,198
This feat is entirely based on the company's constant endeavour to meet aspirations of a large
and diverse demography, by providing the best through innovative products and services.
Today, each car from the Maruti Suzuki factories at Gurgaon, and Manesar, Haryana, North
India are the tangible evidence of Quality, manufacturing standards and efficiency.
Mileage
Ground Dimension
Engine Price (in Test Max. Special
Clearanc (LxWxH)
Capacity (Approx.) Conditions Speed Features
e (In mm)
)
Rs.
3335 x
Maruti 170 2.0- 13-14 144 Low cost & highly fuel-
796 cc 1440 x
800 mm 2.25 km/l km/h efficient.
1405
Lac
Maruti A- 998 cc 170 3500 x Rs. 18-19 155 Equipped with ligth-
3.5- weight KB series
1600 x
Star mm 4.25 Km/l km/h engine for refined
1490
Lac performance.
Rs.
3495 x
Maruti 160 2.50- 13-14 137 Powered with 32-bit
796 cc 1475 x
Alto mm 3.0 km/l km/h computer technology.
1460
Lac
Rs.
3695 x
Maruti 170 4.0- 12-13 156 Bigger and better with
1298cc 1690 x
Swift mm 5.50 km/l km/h European style looks.
1530
lac
Rs.
3520 x Roomy interiors, 32-Bit
Maruti 165 3.50- 12-13 145
1061 cc 1490 x Electronic Control
WagonR mm 4.50 km/l km/h
1660 Module (ECM)
Lac
Rs.
3535 x Ergonomically crafted
Maruti 165 3.50- 11-12 145
993 cc 1495 x seats withrich
Zen mm 4.00 km/l km/h
1405 upholstery
Lac
3495 x Rs.
Maruti 165 12-13 148 Sporty looks and roomy
1061 cc 1475 x 3.0-4.0
Zen Estilo mm km/l km/h space.
1595 Lac
Maruti 3715 x Rs. 4
1197cc 145 Smart Distributor Less
Suzuki 1680 x to 4.5 - -
K12M mm Ignition (SDLI) system
Ritz New 1590 Lacs
Target market:
The Maruti Swift with its petrol variants targets the middle class consumer with prices between
rupees four lakhs and six lakhs.
SEGMENTATION:
Psychographic segmentation:
Adventure loving
Style conscious
Mileage conscious
Delhi NCR is the major targeted market. Because launching the model at 4 lakh price tag . there is
another advantage in doing so considering the capital city of Delhi NCR road tax on the sub 4 lakh
priced car is considerably low at 2%.
Technological segmentation:
Feature loving
User friendly
Demographic segmentation:
18-45 yrs.
Positioning:
Both Suzuki and Maruti are positioning the car around traits such as style, modern looks and young
attitude, in addition to the traditional Maruti-Suzuki USPs of fuel efficiency and performance.
SWOT ANALYSIS
STRENGTHS:
WEAKNESS:
THREATS:
HYUNDAI:
Hyundai is a group of companies founded by Chung Ju-yung in South Korea. The first
Hyundai company was founded in 1947 as a construction company.
Some of the best-known Hyundai divisions are Hyundai Motor Company, the world's fourth
largest automaker and Hyundai Heavy Industries, the world's largest shipbuilder. Other
companies currently or formerly controlled by members of Chung's extended family may be
loosely referred to as a part of the Hyundai chaebol.
Hyundai Group underwent a massive restructuring following the 1997 East Asian financial
crisis and the founder's death in 2001. Today many companies bearing the name Hyundai are
not part of or connected to the Hyundai Group. Some of the larger former members of the
conglomerate include Hyundai Group, Hyundai Kia Automotive Group, Hyundai Department
Store Group, Hyundai Heavy Industries Group, and Hyundai Development Group. Following
the conception, Hyundai Group's business remains manufacturing of elevators, container
shipping services, and tourism.
Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company (South Korea) and
is the second largest car manufacturer in India. Hyundai Motor India markets a great number of Hyundai
passenger car variants in six segments. These include the Hyundai Santro in the B segment, the Hyundai Getz
Prime in the B+ segment, the Hyundai Accent and Hyundai Verna in the C segment, the Hyundai Elantra in the D
segment, the Hyundai Sonata Embera in the E segment, and the Hyundai Tucson in the SUV segment. Hyundai
car models in India include
Hyundai Hatchbacks
Currently, Hyundai Motor India markets two hatchback models including the Hyundai Santro Xing across five
variants, and the Hyundai Getz Prime across four variants. Hyundai hatchback car prices range from around
rupees three lakhs to around rupees six lakhs.
The Santro Xing is Hyundai's national favourite and the country's largest
selling car in its segment. The wind tunnel designed body of the Santro presents a low drag co-efficient. Hyundai
Hatchbacks One of the most popular cars for the middle class Indian consumer, the Hyundai Santro, with its
petrol and CNG variants, offers an on-road price range between Rs. 3 lakhs and Rs. 5 lakhs. Variant models
include
The new i10 features a host of exterior, interior, comfort and safety features
that sets the pace for the new generation. Hyundai Hatchbacks Popular passenger car for the middle class Indian
consumer, the Hyundai i10 (Hatchback), with its petrol variants, offers an on-road price range between
Rs.3,80,000 and Rs.5,20,000. Variant models include
The Hyundai Getz Prime is an idyllic combination of looks and power. This
model is another popular passenger car for the middle class Indian consumer. The Hyundai Getz Prime
(Hatchback), with its petrol and CNG variants, offers an on-road price range between Rs.4,35,000 and
Rs.5,80,000. Variant models include
Hyundai Sedans
Currently, Hyundai Motors India has four sedan models with diesel and petrol variants, the Accent with a single
variant, the Verna with eight variants, the Elantra with four variants, and the Sonata Embera with six variants.
Hyundai sedan car prices range from around rupees six lakhs to around rupees eighteen lakhs.
Hyundai Accent
The Accent is a mid sized sedan that virtually offers all the facilities of a
luxury sedan. Available only in petrol version, it meets an entire array of expectations that connoisseurs have
from a sedan. The Accent GLE is quite well-known in the Indian market. It has maximum features at a minimum
price and generally perceived as a marvel of resource optimization both for the consumer as well as for the
manufacturer.
The Verna comes as a mid sized sedan that has roomy interiors but
presents itself with a compact exterior. The unique features of this model are nearly equally sized doors, a
relatively short bonnet, and a stubby boot. The Verna is available in both petrol and diesel options which target
middle class consumers. Variants have road prices ranging from around rupees Seven Lakhs to rupees Nine
Lakhs Thirty Thousand. Hot models include
Hyundai SUVs
Currently, Hyundai Motors markets only a single SUV, the Tucson across a single variant the Tucson 2.0 CRDi
In 2006, Business Standard Motoring Magazine and NDTV Profit - Car & Bike declared the Hyundai Tucson as
the 'SUV of the Year 2006' and Sonata Embera as the 'Executive Car of the Year 2006'. The Hyundai Verna has
received the title of "Car of the Year 2007" by India's leading automotive publication - Overdrive. Business
Standard Monitoring has declared it as the 'Performance Car of the Year 2007'. The Verna also won the "Best
Mid-size Car of the Year" award by the NDTV Profit Car & Bike Awards 2007, and the "Best Value for Money
Car" by the CNBC Autocar Auto awards.
MARKET STRATEGIES:
Objectives
First year Objectives: We are aiming for 5% market share of the Indian market
through unit sale volume of 100000.
Second year Objectives: We are aiming for 10% market share of the Indian market.
An important objective will be to establish a well-regarded brand name linked to a
meaningful positioning. We will have to invest heavily in marketing to create a
memorable and distinctive brand image projecting innovation, quality and value. We
also must measure awareness and response so we can adjust our marketing efforts
if necessary.
Strategies
Product
Hyundai pa is fully loaded and will be sold with 3 year warranty. We will also
introduce a diesel/CNG/LPG version of Hyundai Pa in the near future. Also the high
end model will have an option of GPS system.
Price
Hyundai Pa’s base model will be introduced at ex-showroom price of 3 lakhs. This
price reflects a strategy of
1) attracting desirable channel partners
2) Taking market share from Maruti.
Distribution
•The Stockist will represent 3 to 4 districts in a State.
•The Dealer will represent a district or main City.
•The Sub-Dealer shall represent a particular area or taluka.
•The booking agents will be individuals working on freelance basis.
Marketing Communications
By integrating all messages in all media we will reinforce the brand name & main
Distribution
Marketing Mix
Product
Features:
The all-new “Hyundai Pa” is fully loaded with a range of exciting new features.
It's a perfect complement to your evolved tastes and lifestyle. And the best way
to take your driving pleasure to a brand-new high. European Styling. Japanese
Engineering. Dream-Like Handling.
The new Hyundai Pa is a generation different from Getz and Santro design. Styled
with a clear sense of muscularity, its one-and-a-half box, aggressive form makes
for a look of stability, a sense that it is packed with energy and ready to
deliver a dynamic drive.
Its solid look is complemented by an equally rooted road presence and class-
defining ride quality. New chassis systems allow for the front suspension lower
arms, steering, and gearbox and rear engine mounting to be attached to a
suspension frame. You get lower road noise and a greater feeling of stability as
you sail over our roads with feather-touch ease.
Price
Hyundai is expected to take Maruti heads on with the pricing of their upcoming
Hyundai Pa car. After launching cars for the masses since so many years, India’s
second largest automobile manufacturer is now targeting the premium segment with
their latest model from the Hyundai’s stable. The analysts predict the pricing of
this premium hunchback to start from Rs. 3 lakh.
This price range would practically rip apart Maruti’s offering in Zen Estilo,
which is priced at a higher tag of Rs. 3.5 lakh. Both the companies are known for
their value based offerings and Hyundai with their extensive service network and
brand reputation for making reliable cars should get the customer’s nod over their
competition.
The official pricing however is still not out. However, the company is said to b
E studying the prospects of launching the base model at the 3 - lakh price tag.
if they indeed do take the chance of pricing Hyundai at a considerable lower price
than Zen Estilo , they would quite likely force the competition to rethink their
strategy.
Promotion
Road Shows
The company plans to stage road shows, to display vehicles in the pavilions during
various college festivals and exhibition. This car will appeal to youngsters more.
Television advertisements
Advertisements to promote and market our product will be shown on leading
television channels. Major music and sports channels will promote and they will
reach out to the youth will be promoted through Star, Zee, Sony and Doordarshan
etc as it has more viewers.
Radio
Radio is the medium with the widest coverage. Studies have recently shown high
levels of exposure to radio broadcasting both within urban and rural areas,
whether or not listeners actually own a set. Many people listen to other people's
radios or hear them in public places. So radio announcements will be made and
advertisements will be announced on the radio about the product features and
price, qualities, etc.
Print AdS
Daily advertisements in leading newspapers and magazines will be used to promote
the product. Leaflets at the initial stage will be distributed at railway stations, malls,
college areas and various other locations.
Workshops and Seminars
Workshops and seminars will be held in colleges and big corporate to make people
aware about the companies past performance and product features, its affordability
and usage, vast distribution network. Road shows will be conducted where free
trials of the car would be given.
Banners, neon signs
Hoardings, banners, neon signs will be displayed at clubs, discs, outside theatres
and shops to promote our brand car.
Booklets and pamphlets
Booklets will be kept at car showrooms, retail battery outlets, etc for the customer to
read. These booklets will provide information about our company; the products
offered which suits the customers need accordingly.
Place
Dealer Name Address
City Std
Phone
Fax
Ashok Auto
Ashok Auto 10, Silk Mill Compound Lower Parel
Pin:400013
Mumbai
022
56661555
56661444
Auto Care Centre
Auto Care Centre C/O Hindustan Petroleum Corp. Ltd, C-33, G.N.Block
Bandra Kurla Complex, Bandra(E)
Pin:400051
Mumbai
022
26508517
26508517
SWOT ANALYSIS:
Strengths
The Quality Advantage
Hyundai owners experience fewer problems with their vehicles than any other car
manufacturer in India (J.D. Power IQS Study). The Santro was chosen the best in
the premium compact car segment and the Getz in the entry level mid - size car
segment across several parameters. This study measures owner in terms of design,
content, layout and performance of vehicles across several parameters.A Buying
Experience Like No Other.Hyundai has a sales network of 250 state-of-the-art
showrooms across 189 cities,with a workforce of over 6000 trained sales personnel
to guide our customers in finding the right car. Our high sales and customer care
standards led us to achieve higher nameplate in the J.D. Power SSI Study.
Quality Service across 1036 Cities.In the J.D. Power CSI Study Hyundai scored the
highest across all 7 parameters:least problems experienced with vehicle serviced,
highest service quality, bestin-service experience, best service delivery, best service
advisor experience,most user-friendly service and best service initiation experience.
The 92% of Hyundai owners feel that work gets done right the first time during
service. The J.D. Power CSI study also reveals that 97% of Hyundai owners would
probably recommend the same make of vehicle, while 90% owners would probably
repurchase the same make of vehicle.
Weaknesses
Commodity Price Risks
Hyundai commodity price risks to higher costs due to changes in prices of inputs
such as steel, aluminum, plastics and rubber, which go into the production of
automobiles.
Exchange Rate Risk
The company is exposed to the risks associated with fluctuations in foreign
exchange rates mainly of import of components & raw materials and export of
vehicles. The company has a well structured exchange risk management policy.The
company manages the exchange risk by using appropriate hedge instruments
depending on the prevailing market conditions and the view on the currency.
Opportunities
Leading Growth
As the market leader, company led the growth in the passenger car sector last
year. Hyundai sales went up 30% to 4,72,000 units. This, as I said earlier, is the
highest annual sale since company began operations 20 years ago. Hyundai also
gained market share, mainly on account of its performance in the competitive A2
segment where it increased its share from 40.3% in 2005-06 to 47.7% in 2006-07.
The record sales performance was reflected in the financials. Net Sales (excluding
excise) grew by 31% to Rs 93,456 million. Operating Profit Margin increased from
0.8 % in 2005-06 to 4.7 % in 2006-07. Profit after Tax jumped 270% to Rs 5421
million.
Threats
Risk Factors
In the course of its business, Hyundai is exposed to a variety of market and other
risks including the effects of demand dynamics, commodity prices, currency
exchange rates, interest rates, as well as risk associated with financial issues,
hazard events and specific assets risk. Whenever possible, we use the instrument
of insurance to mitigate the risk.
TARGET MARKET:
The brand was targeting those 800 users who wanted to upgrade into the B segment. The
target market was the 35-45 yrs middleclass Indians.
Santro along with the new looks also changed its TG from 35- 45 to 25 -30.
SEGMENTATION:
According to the income level they are targeting middle and upper middle class
people. They also attract the college going population to some extent.
POSITIONING:
Hyundai is giving its four-year old small car Santro a new and fresh positioning,
and has roped in young and vibrant Bollywood actress Preity Zinta for
promotions worth Rs 5 crore.
The target age group for the car has now shifted from 30-35 years to 25-30
years, a company executive said.
The old positioning of the Santro as a ‘family car’ is being changed to that of ‘a
smart car for young people.’
The repositioning follows the face-lifts the car has been getting from time to
time in the form of engine upgradation, new power steering,
automatic transmission, etc, to keep the excitement around it alive in the highly
competitive small car market.The repositioning also comes ahead of the
possible launch of a new design Santro, and the super B-segment car ‘Getz’,
sometime in 2003.
TATA MOTORS
Public
Type (BSE: 500570)
(NYSE: TTM)
Industry Automotive
Founded 1945
Automobiles
Products
Engines
Jaguar
Land Rover
Subsidiaries TDCV
Hispano Carrocera
Website TataMotors.com
Tata Motors Ltd (NSE: TATAMOTORS, BSE: 500570, NYSE: TTM) is a multinational
corporation headquartered in Mumbai, India. Part of the Tata Group, it was formerly known
as TELCO (TATA Engineering and Locomotive Company).
Tata Motors is India’s largest automobile company, with consolidated revenues of USD 20
billion in 2009-10. It is the leader in commercial vehicles and among the top three in
passenger vehicles. Tata Motors has winning products in the compact, midsize car and utility
vehicle segments. The company is the world's fourth largest truck manufacturer, and the
world's second largest bus manufacturer with over 24,000 employees. Since first rolled out in
1954, Tata Motors has produced and sold over 4 million vehicles in India.
Established in 1945, when the company began manufacturing locomotives, the company
manufactured its first commercial vehicle in 1954 in a collaboration with Daimler-Benz AG,
which ended in 1969. Tata Motors is a dual-listed company traded on both the Bombay Stock
Exchange, as well as on the New York Stock Exchange. Tata Motors in 2005, was ranked
among the top 10 corporations in India with an annual revenue exceeding INR 320 billion.
In 2004 Tata Motors bought Daewoo's truck manufacturing unit, now known as Tata Daewoo
Commercial Vehicle, in South Korea. It also acquired Hispano Carrocera SA, now a fully-
owned subsidiary. In March 2008, it acquired the Jaguar Land Rover (JLR) business from the
Ford Motor Company, which also includes the Daimler and Lanchester brands and the
purchase was completed on 2 June 2008.
Tata Motors has auto manufacturing and assembly plants in Jamshedpur, Pantnagar,
Lucknow, Ahmedabad, Sanand and Pune in India, as well as in Argentina, South Africa and
Thailand.
History
Tata Motors is a part of the Tata Group manages its share-holding through Tata Sons. The
company was established in 1935 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. Based on consumer
demand, he decided that building a small car would be the most practical new venture. So in
1998 it launched Tata Indica, India's first fully indigenous passenger car. Designed to be
inexpensive and simple to build and maintain, the Indica became a hit in the Indian market. It
was also exported to Europe, especially the UK and Italy. In 2004 it acquired Tata Daewoo
Commercial Vehicle, and in late 2005 it acquired 21% of Aragonese Hispano Carrocera
giving it controlling rights of the company. It has formed a joint venture with Marcopolo of
Brazil, and introduced low-floor buses in the Indian Market. Recently, it has acquired British
Jaguar Land Rover (JLR), which includes the Daimler and Lanchester brand names.
Expansion
The FIRST generation Tata Indica V2's excellent fuel economy, powerful engine and
aggressive marketing strategy made it one of the best selling cars in the history of the Indian
automobile industry.
After years of dominating the commercial vehicle market in India, Tata Motors entered the
passenger vehicle market in 1991 by launching the Tata Sierra, a multi utility vehicle. After
the launch of three more vehicles, Tata Estate (1992, a stationwagon design based on the
earlier 'TataMobile' (1989), a light commercial vehicle), Tata Sumo (LCV, 1994) and Tata
Safari (1998, India's first sports utility vehicle). Tata launched the Indica in 1998, the first
fully indigenous passenger car of India. Though the car was initially panned by auto-analysts,
the car's excellent fuel economy, powerful engine and aggressive marketing strategy made it
one of the best selling cars in the history of the Indian automobile industry. A newer version
of the car, named Indica V2, was a major improvement over the previous version and quickly
became a mass-favourite. Tata Motors also successfully exported large quantities of the car to
South Africa.The success of Indica in many ways marked the rise of Tata Motors.
Important developments
Tata Nano
Tata Nano
In January 2008, Tata Motors launched Tata Nano, the least expensive production car in the
world at about Rs. 100,000 (US $2,500).The city car was unveiled during the Auto Expo
2008 exhibition in Pragati Maidan, New Delhi.
Tata has faced controversy over developing the Nano as some environmentalists are
concerned that the launch of such a low-priced car could lead to mass motorization in India
with adverse effects on pollution and global warming. Tata has set up a factory in Sanand,
Gujarat and the first Nanos are to roll out summer 2009.
Tata Nano Europa has been developed for sale in developed economies and is to hit markets
in 2010 while the normal Nano should hit markets in South Africa, Kenya and countries in
Asia and Africa by late 2009. A battery version is also planned.
Tata has also been approached by a province in France named Moselle to setup a Tata Nano
manufacturing plant.
Tata Ace
Tata Ace, India's first indigenously developed sub-one ton mini-truck, was launched in May
2005. The mini-truck was a huge success in India with auto-analysts claiming that Ace had
changed the dynamics of the light commercial vehicle (LCV) market in the country by
creating a new market segment termed the small commercial vehicle (SCV) segment. Ace
rapidly emerged as the first choice for transporters and single truck owners for city and rural
transport. By October 2005, LCV sales of Tata Motors had grown by 36.6 percent to 28,537
units due to the rising demand for Ace. The Ace was built with a load body produced by
Autoline Industries.By 2005, Autoline was producing 300 load bodies per day for Tata
Motors. Tata Ace - Apka Pyaara Chota Hathi.
Ace is still a top seller for TML with 5M units sold to date (June 2010).
Ace has also been exported to several European, South American and African countries and
all-electric models are sold through Chrysler's Global Electric Motorcars division.
Tata OneCAT
Motor Development International of France has developed the world's first prototype of a
compressed air car, named OneCAT. In 2007, MDI owner Guy Negre was reported to have
"the backing of Tata".
It has airtanks that can be filled in 4 hours by plugging the car into a standard electrical plug.
In 2008 MDI planned to also design a gas station compressor, which would fill the tanks in 3
minutes There are no gasoline costs and no fossil fuel emissions from the vehicle when run in
town, but "the compressed air driving the pistons can be boosted by a fuel burner".
OneCAT is a five seat vehicle with a 200-litre (7.1 cu ft) trunk. With full tanks it is said to
run at 100 km/h (62 mph) for 90 kilometres (56 mi) range in urban cycle. There are severe
physical arguments pleading against those figures. In December 2009 Tata's vice president of
engineering systems confirmed that the limited range and low engine temperatures were
causing difficulties.
Electric vehicles
Tata Motors unveiled the electric versions of passenger car Tata Indica and commercial
vehicle Tata Ace. Both run on lithium batteries. The company has indicated that the electric
Indica would be launched locally in India in about 2010, without disclosing the price. The
vehicle would be launched in Norway in 2009.
Tata Motors' UK subsidiary, Tata Motors European Technical Centre, has bought a 50.3%
holding in electric vehicle technology firm Miljøbil Grenland/Innovasjon of Norway for
US$1.93 M, which specialises in the development of innovative solutions for electric
vehicles, and plans to launch the electric Indica hatchback in Europe next year.On 17 Sept
2010 Tata motors presented to the DTC [ Delhi Transport corporation] Four CNG - Electric
Hybrid lowfloored Starbuses to be used for commonwealth games.These will be the first
Environmentally friendly buses to be used for public transportation in India.
Products:
Passenger cars and utility vehicles
Tata Xover
Concept vehicles
Commercial vehicles
Tata Ace
Tata TL/Telcoline/207 DI Pickup Truck
Tata 407 Ex and Ex2
Tata 709 Ex
Tata 809 Ex and Ex2
Tata 909 Ex and Ex2
Tata 1109 (Intermediate truck)
Tata 1510/1512 (Medium bus chassis)
Tata 1612/1616 (Heavy bus chassis)
Tata 1618 (Semi Low Floor bus chassis)
Tata 1610/1623 (Rear Engined Low Floor bus chassis)
Tata 1613/1615 (Medium truck)
Tata 2515/2516 (Medium truck)
Tata Starbus (Branded Buses for city,inter city,school bus and standard passenger
transportation)
Tata Globus (Range of fully built luxury coaches)
Tata Hispano Globus (Rear Engined Inter city coach)
Tata Marcopolo Bus (Low Floor, Semi Low Floor buses for Mass Rapid Transit and
also standard passenger transportation Buses)
Tata 3015 (Heavy truck)
Tata 3118 (Heavy truck) (8X2)
Tata 3516 (Heavy truck)
Tata 4018 (Heavy truck)
Tata 4923 (Ultra-Heavy truck) (6X4)
Tata Novus (Heavy truck designed by Tata Daewoo)
Tata Prima (The World Truck designed by Tata Motors and Tata Daewoo)
Military vehicles
Tata Nano
Rs.1,15,361 (Ex-Showroom Price New Delhi )
The Tata Nano has stamped a distinctive position for the Indian car industry in the global automotive
map. Available in Eight variants: Base BSII, Base BSIII, CX BSII, CX BSIII, LX BSIII, Base-BS IV,CX-
BS IV and LX-BS IV. Nano is powered by a 2-cylinder, 624 cc, multi-point fuel-injection petrol engine
that delivers 34.5 bhp. 4-speed manual transmission is standard in all the variants. The Nano has 21
percent more interior space compared to its closest rival, the Maruti 800. Only the top end variant has
air conditioning.
Tata Safari
Rs.7,75,180 (Ex-Showroom Price New Delhi )
The car upgraded with the 2.2 VTT engine. Available BS III and BS IV variants are: 4x2 configuration
and 4x4 configuration. These are distributed in 5 main choices: LX, EX, EXi, GX, and VX. The EXi
comes only in Petrol; whereas GX comes only in Diesel. The EXi comes only in Petrol. The DICOR
variants are powered by a 2.2L VTT diesel engine and LX 4x2 gets a 1948 cc turbocharged diesel
engine. The petrol variants come with a 2092 cc petrol engine.
Tata Sumo Grande MK II
Rs.6,52,045 (Ex-Showroom Price New Delhi )
Tata Sumo Grande MK II is the latest upgraded version of its premium Sumo with a power Dicor
engine borrowed from the Safari SUV, classy interiors, and elegant exterior styling. Available Variants
are - LX, EX, GX, CX, CX Turbo, EX Turbo and LX Turbo. A 120 bhp 2.2L Dicor engine comes standard
among all variants. A refined 5-speed manual transmission that is standard across all variants
transfers power to the wheels. Rides on an independent front suspension with coil spring and a
parabolic leaf spring type rear suspension.
Tata Xenon XT
Rs.7,74,284 (Ex-Showroom Price New Delhi )
The new Xenon XT is a lifestyle SUV that can be differentiated from a pick-up truck with its style,
smart features, and 4 x 4 off-road capabilities. The compact but powerful DICOR engine delivers good
bhp and also emphasis on admirable fuel economy. The Xenon XT is available in two versions- EX 4x2
and EX 4x4. Both the versions come with 2.2 litre VTT In-line 4 engine. The interior is adorned with
excellent materials and the controls are perfectly located offering total comfort and convenience.
Other important marketing strategies are such as the packaging, innovations, and quality
control. Tata Motors provide many innovative features to attract car lover. One of these
innovations is the Tata Safari 4X4 Dicor that has “Reverse Guide System”. A weather-proof
camera is fixed to the rear car to help the driver while reversing the car.
2. Pricing Strategy:
There are various factors to determine a price of a car. These factors are such as market condition (it
can’t be too low or too high with the prices of same vehicle from competitors, it has to be at par),
cost incurred to build a car, profit by company, dealer profit.
Giving discount every month and special promotion for certain type of vehicle also one of the strong
strategy use by Tata Motors. Discount can be made from Company’s profit or from dealer’s profit at
certain range.
3. Place:
Place of dealership does play an important role. The channel of distribution, physical location, and
dealership method of distribution and sales is generally adopted. The distribution of vehicle must be
in a very systematic way, from the plant to dealership and to end user. This is not only in India itself
but also to the world-wide dealership. (See also Ford Motor Company SWOT analysis)
By looking at the Marketing strategies of TATA motors, the SWOT analysis (the Strengths, Weakness,
Opportunities, Threats) can clearly tells why Tata Motors marketing strategies is one of the
successful stories in automobile industry nowadays.
Weaknesses
The company's passenger car products are based upon 3rd and 4th generation
platforms, which put Tata Motors Limited at a disadvantage with competing car
manufacturers.
Despite buying the Jaguar and Land Rover brands (see opportunities below); Tat has
not got a foothold in the luxury car segment in its domestic, Indian market. Is the
brand associated with commercial vehicles and low-cost passenger cars to the extent
that it has isolated itself from lucrative segments in a more aspiring India?
One weakness which is often not recognised is that in English the word 'tat' means
rubbish. Would the brand sensitive British consumer ever buy into such a brand?
Maybe not, but they would buy into Fiat, Jaguar and Land Rover (see opportunities
and strengths).
Opportunities
In the summer of 2008 Tata Motor's announced that it had successfully purchased the
Land Rover and Jaguar brands from Ford Motors for UK £2.3 million. Two of the
World's luxury car brand have been added to its portfolio of brands, and will
undoubtedly off the company the chance to market vehicles in the luxury segments.
Tata Motors Limited acquired Daewoo Motor's Commercial vehicle business in 2004
for around USD $16 million.
Nano is the cheapest car in the World - retailing at little more than a motorbike.
Whilst the World is getting ready for greener alternatives to gas-guzzlers, is the Nano
the answer in terms of concept or brand? Incidentally, the new Land Rover and Jaguar
models will cost up to 85 times more than a standard Nano!
The new global track platform is about to be launched from its Korean (previously
Daewoo) plant. Again, at a time when the World is looking for environmentally
friendly transport alternatives, is now the right time to move into this segment? The
answer to this question (and the one above) is that new and emerging industrial
nations such as India, South Korea and China will have a thirst for low-cost passenger
and commercial vehicles. These are the opportunities. However the company has put
in place a very proactive Corporate Social Responsibility (CSR) committee to address
potential strategies that will make is operations more sustainable.
The range of Super Milo fuel efficient buses are powered by super-efficient, eco-
friendly engines. The bus has optional organic clutch with booster assist and better air
intakes that will reduce fuel consumption by up to 10%.
Threats
Other competing car manufacturers have been in the passenger car business for 40, 50
or more years. Therefore Tata Motors Limited has to catch up in terms of quality and
lean production.
Sustainability and environmentalism could mean extra costs for this low-cost
producer. This could impact its underpinning competitive advantage. Obviously, as
Tata globalises and buys into other brands this problem could be alleviated.
Since the company has focused upon the commercial and small vehicle segments, it
has left itself open to competition from overseas companies for the emerging Indian
luxury segments. For example ICICI bank and DaimlerChrysler have invested in a
new Pune-based plant which will build 5000 new Mercedes-Benz per annum. Other
players developing luxury cars targeted at the Indian market include Ford, Honda and
Toyota. In fact the entire Indian market has become a target for other global
competitors including Maruti Udyog, General Motors, Ford and others.
Rising prices in the global economy could pose a threat to Tata Motors Limited on a
couple of fronts. The price of steel and aluminium is increasing putting pressure on
the costs of production. Many of Tata's products run on Diesel fuel which is becoming
expensive globally and within its traditional home market.
TARGET MARKET:
Tata Motors has truly scored with the Nano. What's brilliant about the release is the
consumer segments it can appeal to. Unlike what the honchos of other car companies in
India think, Tata Nano will cut across and appeal to a cross section of consumer segments in
India.
Take the Great Indian Middle class, for instance; further divided into Upper, Middle and the
Lower middle class.
Now that's a first, not just in India, but around the world, a first for a product to appeal
across market segments.
SEGMENTATION:
Variable used.
GEOGRAPHIC: Rural or urban
DEMOGRAPHIC: Family size and income
BEHAVIORAL: Benefit and user status.
POSITIONING:
Tata Motors unveils the People’s Car
A comfortable, safe, all-weather car, high on fuel efficiency & low on emissions
Mr. Ratan N. Tata, Chairman of the Tata Group and Tata Motors, today unveiled the
Tata ‘NANO’, the People’s Car from Tata Motors that India and the world have been
looking forward to. A development, which signifies a first for the global automobile
industry, the People’s Car brings the comfort and safety of a car within the reach of
thousands of families. The People’s Car will be launched in India later in 2008.
Speaking at the unveiling ceremony at the 9th Auto Expo in New Delhi, Mr. Ratan N. Tata
said, “I observed families riding on two-wheelers – the father driving the scooter, his
young kid standing in front of him, his wife seated behind him holding a little baby. It led
me to wonder whether one could conceive of a safe, affordable, all-weather form of
transport for such a family. Tata Motors’ engineers and designers gave their all for about
four years to realise this goal. Today, we indeed have a People’s Car, which is affordable
and yet built to meet safety requirements and emission norms, to be fuel efficient and low
on emissions. We are happy to present the People’s Car to India and we hope it brings the
joy, pride and utility of owning a car to many families who need personal mobility.”
Stylish, comfortable
The People’s Car, designed with a family in mind, has a roomy passenger compartment
with generous leg space and head room. It can comfortably seat four persons. Four doors
with high seating position make ingress and egress easy.
Yet with a length of 3.1 metres, width of 1.5 metres and height of 1.6 metres, with
adequate ground clearance, it can effortlessly manoeuvre on busy roads in cities as well as
in rural areas. Its mono-volume design, with wheels at the corners and the powertrain at
the rear, enables it to uniquely combine both space and manoeuvrability, which will set a
new benchmark among small cars.
When launched, the car will be available in both standard and deluxe versions. Both
versions will offer a wide range of body colours, and other accessories so that the car can
be customised to an individual’s preferences.
Fuel-efficient engine
The People’s Car has a rear-wheel drive, all-aluminium, two-cylinder, 623 cc, 33 PS, multi
point fuel injection petrol engine. This is the first time that a two-cylinder gasoline engine
is being used in a car with single balancer shaft. The lean design strategy has helped
minimise weight, which helps maximise performance per unit of energy consumed and
delivers high fuel efficiency. Performance is controlled by a specially designed electronic
engine management system.
Environment-friendly
The People’s Car’s tailpipe emission performance exceeds regulatory requirements. In
terms of overall pollutants, it has a lower pollution level than two-wheelers being
manufactured in India today. The high fuel efficiency also ensures that the car has low
carbon dioxide emissions, thereby providing the twin benefits of an affordable
transportation solution with a low carbon footprint.
(For more information: www.tatanano.com )
Type PublicBSE: 500520
Industry Automotive
Farm Equipment
Founded 1945
Headquarters Mumbai, Maharashtra, India
Employees 16,000+[1]
Website Mahindra.com
Initially set up to manufacture general-purpose utility vehicles, Mahindra & Mahindra (M&M) was first
known for assembly under licence of the iconicWillys Jeep in India. M&M introduced Jeeps to India
and in no time they established themselves as the Jeep manufacturers of India. The company later
branched out into the manufacture of light commercial vehicles (LCVs) and agricultural tractors,
rapidly growing from being a manufacturer of army vehicles and tractors to an automobile major with a
growing global market presence. At present, M&M is the leader in the utility vehicle segment in India
with its flagship UV Scorpio.
In recent times the company is engaged in spreading its reach beyond its traditional markets. They
entered into the two-wheeler segment by taking over the Kinetic Motors in India. M&M also has
controlling stake in REVA Electric Car Company. M&M has also been selected as the preferred bidder
for the acquisition of South Korea's SsangYong Motor Company.
Models
Mahindra Bolero
Mahindra Bolero Camper
Mahindra Bolero Inspira
Mahindra Bolero Stinger Concept
Mahindra Scorpio
Mahindra Scorpio Getaway
Mahindra Scorpio First
Mahindra Xylo
Mahindra Legend
Mahindra MM550 XD
Mahindra-Renault Logan (in cooperation with Renault)
Mahindra Axe
Mahindra Major
Mahindra Souvenir Concept
Mahindra Commander
Mahindra DI
Mahindra Cab Chassis
Mahindra (Sedan)
Popular Mahindra sedans range from Mahindra cars costing a bit below rupees five lakhs to Mahindra cars
costing a bit above rupees nine lakh eighty thousand. Popular Mahindra sedans include
Mahindra (SUV)
Popular Mahindra SUV car prices range from Mahindra cars at a bit above rupees five lakhs to Mahindra cars at
a bit below rupees ten lakhs, including
Bolero DI (Diesel)
Bolero DI makes toughest roads smoothest while riding. New cars have a show room price of around
Rs.5,20,000 and on-road price of around Rs.5,85,000. Mahindra Bolero DI car prices vary in lakhs upon the car
dealer's location.
The Scorpio is Mahindra's world class presentation and flagship adventurous SUV. Mahindra (SUV) The
Mahindra Scorpio with its diesel variants targets the middle class consumer with Mahindra SUVs at on-road
prices ranging between rupees eight and ten lakhs. Mahindra Scorpio variants include
Mahindra has positioned itself as the traditional leader in utility vehicles on Indian roads. Its tie-up with Renault
has marked its full-fledged entry into the passenger car market. Mahindra cars today, including Mahindra Bolero,
Mahindra Scorpio, and Mahindra Logan enjoy immense popularity with Indian middle class consumers.
MARKET STRATEGIES:
Place
Mahindra & Mahindra has emerged as a well-known tractor brand in the US. It is now
planning to launch the Scorpio in the US sports utility vehicle market.
Mahindra Automobiles have a strong and growing presence in international markets
Yugoslavia,
Bangladesh
Sri Lanka
Australia
Uruguay
South Africa in 2004 (Mahindra South Africa)
Europe in 2005 (Mahindra Europe)
Mahindra vehicles have gone on display to auto enthusiasts around the world,participating in
prestigious automobile shows in Paris, Rome, Bologna, Johannesburgand São Paulo.
In 2006 Mahindra announced that it would be the first Indian automobile
manufacturer to enter the world¶s most demanding and critical market.
Price
Weakness
Effortless Acceleration.
Fire Retardant Upholstery.
Excellent Driving Experience.
Threats
Automatic Transmission only on Top-End Variant.
Opportunities
Mahindra vehicles have gone on display to auto enthusiasts around the world,participating in
prestigious automobile shows in Paris, Rome, Bologna, Johannesburgand São Paulo.
LATEST PRODUCT OF MAHINDRA & MAHINDRA IS
“SCORPIO”
SEGMENTATION:
A BRAND is a thought, and launching brands can be a great growth strategy for an
y corporate. But, it takes two to tango. A brand founded on a good idea needs to
be built with an ever-evolving gameplan. A case in point is the launch of the s
ports utility vehicle (SUV), Scorpio, by Mahindra & Mahindra (M&M).
When Scorpio hit the streets, it arrived as an SUV with a `car pluspackage. Tw
o-and-a-half years later, it has caused a paradigm shift in its category. Equipp
ed with a savvy marketing strategy, the brand has not only grown the SUV market,
but almost touched base with the `Cclass cars segment.According to automobile
manufacturersdata, the premium utility vehicle segment grew at approximately 14 per cent up
to June 2002. With the launch of Scorpio,the growth rate from July 2002 to March 2003 rose
to about 51 per cent. Between April 2003 and March 2004, the segment grew by 33 per cent.
POSITIONING:
Attract a lot of cross-over customers. Unlike for its competitors in the UV cate
gory, people who wished to purchase a C class car would also consider a Scorpio,
" says Hormazd Sorabjee, Editor, and Autocar India. "The Scorpio launch did play
a significant role in driving the UV market up. This to me is the ultimate meas
ure of success - the ability of a company to drive the growth of markets," remar
k Abraham Koshy, Professor of Marketing, Indian Institute of Management, and Ahm
edabad. Marketing gurus suggest that the positioning of Scorpio was also very bo
ld and innovative. Mahindra Scorpio Pick Up secures third position in T2 categor
y of Rally dos Sertoes in Brazil
TARGET MARKET:
The track monitors `high valueconsumers, and registers those who are in the SE
C A and B categories, while 67 per cent of the sample size is from the top eight
metros; the rest from the next 50-60 towns across India. Sales too have been zo
oming, says the company. According to brand-wise data, the company claims to be
matching sales of most C segment cars, even outselling some of them. In the last
six months, M&M sold 14,389 Scorpios, against a total C segment sale of 79,346,
according to company data
RECENT DEVELOPMENTS
Mahindra signs MoU to acquire stake in N.Korea based Ssangyong
Mahindra & Mahindra has entered into an agreement to acquire a majority stake in
beleaguered South Korean vehicle maker SsangYong Motor Company.
In a filing to the Bombay Stock Exchange, Mahindra & Mahindra (M&M) said that it has
"signed a memorandum of understanding with SsangYong Motor to acquire a majority stake
in the South Korean SUV maker". The agreement will be followed by a detailed due
diligence process and finalization of definitive agreements, the filing added."We are
committed to leveraging SsangYong's strong competencies in R&D and technology by
investing in a new SYMC product portfolio which will help us gain momentum in global
markets," M&M Automotive and Farm Sector President Pawan Goenka said.
He further said, "India is a rapidly growing SUV market and will create new growth avenues
for SsangYong. The synergies between both the brands, which share a similar heritage will
make us a combine force to reckon with in the global utility vehicle space."Rothschild and
Samsung Securities are advising M&M on the deal.On August 12, M&M was chosen as the
preferred bidder by SsangYong Motor. The company had said that deal is likely to be
finalised by November this year but did not disclose the financials involved.SsangYong
Motor, which has SUV models like 'Rexton', 'Kyron' and 'Actyon' and sedan 'Chairman', has
been undergoing a court-led restructuring from 2009 after suffering heavily due to the
downturn in auto industry.China's SAIC Motor Corp owns 10 per cent in the troubled
automaker and about 70 per cent is held by creditors, led by state-owned Korea Development
Bank.M&M currently has two manufacturing facilities in South Korea and has an employee
strength of 4,800 people.The company has 138 dealers in its home country, while 1,300
dealers are located across 98 nations. It sold 35,000 units in 2009.
M&M had said once the deal is done, it would consider bringing the premium SUVs from
SsangYong Motor's stable into India.
BIBILOGRAPHY
Overview of the Automobile market- www.icra.org, www.siamindia.com
Factors contributing to the increased demand of automotives and the growth of Indian Auto
sector-www.wikipedia.org
Hyundai-www.wikipedia.com, www.hyundai.com
Tata-www.wikipedia.org, www.icra.org
PURPOSE SERVED:
This project enhanced our knowledge of passenger
vehicle market in India.
It helped us to know the market share of different
companies and the prevailing car models in India, and
their marketing strategies.
It also helped us to compare the major players in the
market and helps in knowing its market share.