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STRATEGIES OF AUTOMOBILE SECTOR
IN INDIA
INTRODUCTION
• The Indian auto industry became the
4th largest in the world in 2017.
• It was the 7th largest manufacturer of
commercial vehicles in 2018.
• Two Wheelers segment dominates the
market in terms of volume.
• India is also a prominent auto exporter.
2
3
CAR MANUFACTURERS IN
INDIA
4
5
CURRENT SCENARIO
• 7.5% contribution to GDP.
• Worst sales performance in nearly 19 years in
July.
• SIAM have revealed that passenger vehicle
sales in the month of July dropped to a
whopping 31 per cent to 2,00,790 vehicles
compared to a year earlier.
• Maruti struggled to even reach 1 lakh units this
month, with sales totalling 96,478 units.
• This massive drop in sales has happened
despite the introduction of recent models like
the Mahindra’s XUV300, the Hyundai
Venue and the MG Hector. All products
pegged to be game changers in their own right.
6
ADD A FOOTER
SWOT
ANALYSIS
7
8
STRENGHTS
• Foreign Investment.
• Low cost and cheap labor.
• Increase in disposable income.
• Increase in demand of luxury products.
• Increase in exports.
9
WEAKNESS
• Low labor productivity.
• Car recall.
• Bargaining power of consumers.
• Regulatory environment
• Poor infrastructure.
10
OPPORTUNITIES
• Introduction of fuel efficient vehicles.
• Changing demography
• Government initiatives.
• Niche marketing.
11
THREATS
• Economic slowdown.
• Diminishing export.
• Saturating domestic urban market.
• Intense competition.
• Volatility in fuel prices.
The Strategies
of Automobile Sector
13
STATEGIES
• Accelerated modification and diversification of the product portfolio
• Pervasion of automobiles with digital technology
• Innovation and flexibility in development and manufacturing
• Support services like vehicle insurance, used car sales, fleet management,
accessories and car finance
14
STATEGIES
• Continuous improvement of quality maintenance.
• Strategic pricing decisions need to be made and pricing is inherently
limited to product quality specification.
• Extensive advertising including celebrity endorsements .
Thank You!

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Strategies of automobile sector in india

  • 1. STRATEGIES OF AUTOMOBILE SECTOR IN INDIA
  • 2. INTRODUCTION • The Indian auto industry became the 4th largest in the world in 2017. • It was the 7th largest manufacturer of commercial vehicles in 2018. • Two Wheelers segment dominates the market in terms of volume. • India is also a prominent auto exporter. 2
  • 4. 4
  • 5. 5 CURRENT SCENARIO • 7.5% contribution to GDP. • Worst sales performance in nearly 19 years in July. • SIAM have revealed that passenger vehicle sales in the month of July dropped to a whopping 31 per cent to 2,00,790 vehicles compared to a year earlier. • Maruti struggled to even reach 1 lakh units this month, with sales totalling 96,478 units. • This massive drop in sales has happened despite the introduction of recent models like the Mahindra’s XUV300, the Hyundai Venue and the MG Hector. All products pegged to be game changers in their own right.
  • 8. 8 STRENGHTS • Foreign Investment. • Low cost and cheap labor. • Increase in disposable income. • Increase in demand of luxury products. • Increase in exports.
  • 9. 9 WEAKNESS • Low labor productivity. • Car recall. • Bargaining power of consumers. • Regulatory environment • Poor infrastructure.
  • 10. 10 OPPORTUNITIES • Introduction of fuel efficient vehicles. • Changing demography • Government initiatives. • Niche marketing.
  • 11. 11 THREATS • Economic slowdown. • Diminishing export. • Saturating domestic urban market. • Intense competition. • Volatility in fuel prices.
  • 13. 13 STATEGIES • Accelerated modification and diversification of the product portfolio • Pervasion of automobiles with digital technology • Innovation and flexibility in development and manufacturing • Support services like vehicle insurance, used car sales, fleet management, accessories and car finance
  • 14. 14 STATEGIES • Continuous improvement of quality maintenance. • Strategic pricing decisions need to be made and pricing is inherently limited to product quality specification. • Extensive advertising including celebrity endorsements .