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Published by Nikita Sinha

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Published by: Nikita Sinha on Jul 03, 2012
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Chapter 1: Executive Summary
The problem statement of the project is to know how the top two competitor of Luxury carsegment in Automobile Industry are fighting to increase their market share in Indian market. Weare majorly focusing on their sales and promotional strategies leading to the increase in theirsales volume.Being a small car market, India was never a favorite destination for top car manufacturers in theworld. It's a different story today. The great Indian auto industry has stunned the world bybecoming one of the fastest growing auto industries in the world today. Almost every luxury carmaker has set up their base in India today, including Aston Martin, Ferrari, Porsche,Jaguar,Mercedes Benz,BMW, AUDI,Bentley,Rolls Royce,and a few more are on their way. For the past three calendar years, 2009, 2010 & 2011 BMW came out on top as they sold thehighest number of cars in the luxury segment in India.BMW, Mercedes Benz and Audi are the 3 dominant German car manufacturers who are rulingthe roost in the country's luxury car segment today. Although the domestic car market hasexperienced a decline in the past few months, the luxury segment remains unaffected. As per thelatest figures, the luxury car segment has witnessed a rise by 45 to 50 percent. The growth in theluxury car segment continued throughout this year. Sales of BMW,Mercedes BenzandAudicombine to form a total of 22,000 units. Last year, the sales figures were just 15,000-16,000 units, resulting in a significant rise this year. These three luxury car makers grabbed amajor part of the luxury car market in India.During the 11 months, BMW and Mercedes Benz managed to grab a good market share. Sales of Mercedes increased by 31% and sales for BMW rose by 70 %.The recent growth in the luxury car market in India is much more than mere market dynamics ina particular car segment. It is a reflection of the changing lifestyle of the affluent class in thecountry. In India, the luxury car segment (Average Price 25-30 Lacs) has been growing at anaverage rate of 20% or above during recent years; it seems to be least affected by the globalfinancial crisis.
 
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Chapter 2: Introduction
2.1Automotive Industry
The
automotive industry
designs, develops, manufactures, markets, and sellsmotor vehicles, and is one of the world's most importanteconomic sectorsbyrevenue.  Around the world, there were about 806 million cars and light trucks on the road in 2007,consuming over 260 billion US gallons (980,000,000 m
3
) of gasoline and diesel fuel yearly. Theautomobile is a primary mode of transportation for many developed economies. The Detroitbranch of Boston Consulting Grouppredicts that, by 2014, one-third of world demand will be inthe fourBRICmarkets (Brazil, Russia, India and China). Other potentially powerful automotivemarkets are Iran and Indonesia. Emerging auto markets already buy more cars than establishedmarkets. According to a J.D. Power study, emerging markets accounted for 51 percent of theglobal light-vehicle sales in 2010.
Automotive Industry in India
The automotive industry in India is one of the largest in the world and one of the fastest growingglobally. India's passenger car and commercial vehicle manufacturing industry is theseventhlargest in the world,with an annual production of more than 3.7 million units in 2010. Accordingto recent reports, India is set to overtake Brazil to become the sixth largest passenger vehicleproducer in the world, growing 16-18 per cent to sell around three million units in the course of 2011-12. In 2009, India emerged asAsia's fourth largest exporter of passenger cars,behind Japan, South Korea,andThailand.In 2010, India reached asAsia's third largest exporter of  passenger cars,behindJapanandSouth KoreabeatingThailand.  As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotivevehicles were produced in India in 2010 (an increase of 33.9%), making the country the secondfastest growing automobile market in the world.According to the Society of Indian Automobile Manufacturers, annual vehicle sales are projectedto increase to 5 million by 2015 and more than 9 million by 2020. By 2050, the country isexpected to top the world in car volumes with approximately 611 million vehicles on thenation'sroads. 
 
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The majority of India's car manufacturing industry is based around three clusters in the south,west and north. The southern cluster nearChennaiis the biggest with 35% of the revenue share.The western hub nearMaharashtrais 33% of the market. The northern cluster is primarilyHaryanawith 32%.Chennai,is also referred to as the"
 Detroit of India
" with the India operationsof Ford,Hyundai,RenaultandNissanheadquartered in the city andBMWhaving an assembly plant on the outskirts. Chennai accounts for 60% of the country's automotive exports.GurgaonandManesarinHaryanaform the northern cluster where the country's largest car manufacturer, Maruti Suzuki,is based. TheChakancorridor nearPune,Maharashtrais the western cluster with companies likeGeneral Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors,  Mercedes Benz, Land Rover, FiatandForce Motorshaving assembly plants in the area. AurangabadwithAudi,SkodaandVolkswagenalso forms part of the western cluster. Another emerging cluster is in the state of Gujaratwith manufacturing facility of General Motors inHaloland further planned forTata Nanoat Sanand. Ford, Maruti Suzuki andPeugeot-Citroen plants are also set to come up in Gujarat.KolkattawithHindustan Motors,NoidawithHonda andBangalorewithToyotaare some of the other automotive manufacturing regions around the country.
2.2 Luxury Car Market in India
 
 
The luxury car market in India has registered a fair amount of growth in the last few years and isgrowing at the rate of 25% per year. A luxury car is a luxuriously styled automobile which isdesigned to give satisfaction and comfort to its owner.The luxury cars in the Indian market are very expensive, with price tags that start from 20 lakh.Hence, luxury cars can only be afforded by the people who belong to the high income group andthere are a lot of such takers in the Indian automobile market.The various reasons for the growth of the luxury car market in India are:
 
The economy is rising in the country which has given the people more disposable incomewhich they are spending in buying luxury cars.
 
Various loan schemes have been launched by the automobile manufacturers and thefinancial institutions. This has made it very easy for the people to buy luxury cars andthis has boosted the luxury car market in India.
 
With the IT boom in the country many youngsters are earning high pay packages whichenable them to buy luxury cars. And this have further given boost to the market of luxurycar in India.

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