SWOT ANALYSIS

STRENGTHS
1. Well established company, wont have any problems in logistics and production.
2. There company has a very good public image and there is a sense of trust associated
with it.
3. The car comes in all variants, LPG, petrol, diesel,CNG, AC, Non AC etc. at a very low price
(3-5 lakh) and offers a very large space compared to say a Nano which comes in the
same price range.
4. Very economical to maintain, spare parts ,repairing etc. very cheap

WEAKNESSES
1. The car is not technologically as advanced as the other cars in the market.
2. Wont have any appeal to the youth and will be considered as an “ old man’s car”.
3. They have accumulated losses for over four years and have debts worth about 70 crore.
4. As they haven’t launched a new product for over 5 years, they may not be competent
enough to deal with the other competitors.

THREATS
1. India has a booming economy and that is attracting a lot of MNC’s to the country
increasing the competition to a great extent.
2. Other Indian car companies like Mahindra, tata etc have grown a lot over the years and
the Indian public would prefer these over Hindustan Motors.
3. There are several cars having a low price tag like the Tata Nano which come in several
variants which are already in the market.
4. The launch of the ambassador could be seen as a step down in the progress that India has
witnessed in the automobile industry.