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Lakhs Lakhs Lakhs Lakhs 90
Maruti Chevrolet Ford Mitsubishi Lakhs
Gypsy, Tata Tavera, Endeavor Pajero, Audi
Indigo Ford Hyundai Q5, Q7,
Marina Fusion, Tucson,Toyo Toyota
etc. Mahindra ta Prado,
Scorpio & Fortuner,Ma Porsche
Bolero, ruti Suzuki Cayenne
Tata Grand Vitara etc.
Safari etc. etc.
TOP SELLING SUVs/MUVs IN INDIA
— TATA SAFARI
— MAHINDRA SCORPIO
— MARUTI SUZUKI GRAND VITARA
— CHEVROLET CAPTIVA
— FORD ENDEAVOR
— MITSUBHI OUTLANDER
— MAHINDRA BOLERO
— PORSCHE CAYENNE
— MITSUBHISHI PAJERO
— HONDA CR-V
— AUDI Q7
PROFILE OF SOME KEY PLAYERS
• Formed under the conglomerate diversification strategy of Tata group.
• India’s largest automobile company with consolidated revenues of around
Rs.70,938.85 Crores(USD 14 Billion) in 2008-09.
• Mid-size player on the world market with around 0.81% market share in 2007 as
per OICA data. But the second largest manufacturer of commercial vehicles in the
world.
• In India, Tata ranks as leader in commercial vehicle segment , and is in the top 3
makers of passenger cars.
• It is following a backward integration strategy by forming Tatacummins that
manufactures high horse power engines used in the company’s range of
TATA commercial vehicles also it has formed JV with Marcopolo and Fiat Auto in order to
develop its commercial vehicle segment more strongly.
MOTORS • Tata Motors entered the passenger vehicle market in 1991 by launching Tata
Sierra, a multi-utility vehicle, then it launched Tata Sumo(1994) and Tata Safari (
India’s first SUV in 1998).
• Tata occupies the second largest market share of 22% after mahindra & mahindra
in the sports utility vehicle segment.
• SOURCE- www.siamindia.com, www.tata.com, www.tatamotors.com,
www.wikipedia.com
• The Mahindra group is large industrial conglomerate in India with its operations
in the automotive,farm equipment, financial services,IT etc.
• Established in 1945 as a franchise for assembling jeeps from Willys, USA, the
company soon began manufacturing LCVs & agricultural tractors , emerging as
one of India’s leading auto brands.
• At present, M & M is the leader in the utility vehicle segment in India with its
MAHINDRA flagship UV, the Scorpio. And its Bolero was crowned India’s leading SUV brand
for 2 years in a row with record sales of over 50,000 units in one year.
&
• It currently accounts for about half of India’s market(occupies a market share of
MAHINDRA 43% ) for utility vehicles with a product portfolio that ranges from rugged mass-
transport UVs to personal segment SUVs.
• It is different from other automobile companies in a way that it is concentrating
on utility vehicle segment and tractors unlike other companies which are
concentrating on HCVs, LCVs and passenger cars.
• SOURCE: www.siamindia.com, www.wikipedia.com, www.mahindra.com
• Following concentration strategy i.e. they are only present in
automotive sector.
• It was world 18th largest corporate entity and 3rd largest auto-
maker as ranked by 2008 revenues on the Fortune global 500
& ranked by unit sales 2008 it was the world’s second largest
auto-maker.
• Since its inception GM concentrated on horizontal
diversification strategy i.e. it acquired Reliance motor truck
co., Rapid motor vehicle company etc.
• In current scenario GM is in product & purchasing ,
GENERAL technology collaborations with Suzuki Motor Corp., Isuzu
Motors Ltd. of Japan, Daimler AG, Toyota Motor Corp. etc
MOTORS • GM plans to focus its business on four core US brands-
Chevrolet ,Cadillac, Buick & GMC.
• It occupies largest market share in US(22.1%) followed by
Canada (21.4%) & Mexico (19.8 %) .
• In India it occupies only 3.3 % market shares in overall
automobile sector and in utility vehicles segment 8.74%
market shares.
• It is mainly into the making of passenger cars and UVs in India.
• SOURCE: www.wikipedia.com , www.gm.com ,
www.siamindia.com , CRISIL
MARKET SHARE OF KEY PLAYERS (UVs)
DOMESTIC SALES OF KEY PLAYERS(UVs)
MANUFACTURERS FY07 FY08
USE OF IT e . g. SAP
Inbound Outbound
Operations Marketing Service
Logistics Logistics
Suppliers , Contractors,
Efficient storage facilities , JIT
Regional Warehouses, Dealer
inventory
Workshops, Distributors
— ECONOMIC FACTORS
— Higher GDP growth.
— Increasing per capita income.
— Easier finance schemes & cheaper interest rates(which are increasing).
— India’s huge geographic spread mass transport system.
— Increasing road development.
— Replacement of aging four wheelers.
— Strategic partnerships & JVs with global players and many players have entered into technological tie-
ups.
— Establishment of India as a manufacturing hub.
— SOCIAL FACTORS
— Growth in urbanization.
— Upward migration of household income levels.
— Indian customers are highly discerning, educated & well informed. They are price sensitive
and put a lot of emphasis on value for money.
— Preference for small and compact cars. They are socially acceptable, even amongst the well
off.
— Preference for fuel efficient cars with low running costs.
— TECHNOLOGICAL FACTORS
— With the entry of global companies into the Indian market, advanced technologies, both in
product and production processes have developed.
— With the development or evolution of alternate fuels, hybrid cars have made entry into the
market.
— Few global companies have set up their R & D centers in India & this has become possible
due to the govt. initiatives regarding tax rebates given to global players.
— Major global players like Audi, BMW, Hyundai etc. have set up their manufacturing units in
India.
KEY CONCERNS & SUCCESS FACTORS
FOR PASSENGER VEHICLE MARKET
— Costs of raw- materials — Presence across
are rising. segments.
— Availability of finance — Efficient operations.
is there but interest — Wide dealer network
rates are rising. and availability of
— PV market is fairly finance.
fragmented, so there — Access to latest
exists high competition technologies.
which has led to fierce
price competition.
— Rising fuel prices.
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