Automobile Industry : Passenger Vehicle Essay

4895 WordsSep 19, 201220 Pages
[Type the company name] | Industry Awareness | Automobile Industry : Passenger vehicle | | Group 13 | 9/16/2012 | Submitted by, Ashwani Kansal Harmeet Singh Bhogal Puli Harichandan Niyati Jhunjhunwala Mohammad Shameem Yogesh Shivdas Vasanth S | Executive Summary With expected sales of ~4.5 million passenger vehicles in FY13e, India’s passenger vehicle market ranks as world’s seventh largest; larger than markets like United Kingdom, France and Spain by Volume - India has been one of the few markets globally to buck the recessionary trend and record a strong volume growth during recession - Strong expected economic growth, rising disposable income levels, favorable demographics, easy financing environment and relatively low car penetration have been the prominent growth drivers for the industry - While at the one end, the growing domestic market is attracting foreign OEMs, on the other, established players are positioning themselves as strong contenders to offer low-cost car manufacturing capabilities to the world - So far, most foreign car makers, barring Hyundai have focused on the sedan and premium segment cars, shying away from the highly competitive small-car segment; with these players now launching small-cars that too designed keeping in mind specifically the Indian consumer, the small-car segment, which has so far been dominated by three players commanding over 80% of the volumes is likely to see increase in competitive intensity - Some of the newly launched models have had good initial response and have been aggressively priced, indicating new entrants’ strategy to grab market share while sacrificing profitability - Large established incumbents in the Indian passenger vehicle market derive strength from their low-cost

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