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Strength and Weaknesses of

passenger car manufacturers in


INDIA

ANKIT MISHRA 09038


ANKIT SHUKLA 09039
ANURAG GUPTA 09044
AASHISH 09004
ASHOK 09049
 Established distribution and
after-sales networks
 Understanding of the Indian
market and ability to liaison
with the government
 Ability to design products
with differentiating features
 Brand Image
 Experience and Know-how
in technology
 Dependent on vendors
 Heavy Import tariffs
 Increased purchasing power
of Indian middleclass
category
 Govt. subsidies
 Foreign collaboration
 Threats from Chinese
manufacturers
 Indian as well as foreign
competitors
 Hyundai has a sales network
of 250 state-of-the-art
showrooms across 189 cities
 The Santro was chosen the
best in the premium compact
car segment
 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.
 Higher costs due to changes
in prices of inputs such as
steel, aluminum, plastics and
rubber, which go into the
production of automobiles.
 Long term contracts dilute the
benefits, if any of a decline in
input prices.
 Company led the growth in
the passenger car sector last
year.
 Hyundai sales went up 30%
to 4,72,000 units.
 Its share increases from
40.3% in 2005-06 to 47.7%
in 2006-07
 Hyundai is exposed to a
variety of market and other
risks including the effects of
demand dynamics.
 we use the instrument of
insurance to mitigate the
risk.
 The automotive industry is
very capital intensive
 Cheapest car-tata nano
 Brand image
 Alliance with Fiat since 2006
 Internationalisation strategy
 Good in terms of technology
 Good service
 No self made car in
luxury segement
 Declining margins and
returns
 ACQUIRED DAEWOO
MOTOR’S
COMMERCIAL VEHICLE
 ACQUIRED LAND
ROVER , JAGUAR
BRANDS AND
ENTERED INTO
LUXURY SEGMENTS
 INCREASING
COMPETITION
 SITUATION LIKE
SINGUR LAND
CONTROVERSY
Strengths...

 Brand Image... Snob Value attached.


 Extra attention to passenger safety.
 SUV Bumper
 Resale Value
 Roadside Assistance
 Designed by keeping the customer mood in mind.
Weakness...

 JIT...
 Not catering to the needs of the masses.
 Building Time
 Waiting list
 Costly Spares.
 Can't be drived anywhere
 As the rule goes.. “profit lies at the
bottom of pyramid”… so Mercedes have
a lot more market if they start catering
to the needs of the Masses.

 Mercedes is known to give quality so


there
 As we see that these days lot more
companies are shifting to producing
“DESIRES” in the car market so it no longer
would be a mercedes bastion.

 The roads are getting cramped day by day


so a hard time chasing high capacity
mercedes cars.