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.