This document provides an overview of strategies for success in the passenger car category in India. It begins with some "quirky car truths" about the Indian market. It then discusses the evolution of personal mobility in India and how cars are now seen as a status symbol as well as an expression of independence. The document analyzes case studies of successful (Hyundai Santro) and unsuccessful (Ford, Renault) market entries. It proposes a "strategic success structure" with three pillars: product lure, social imagery, and heritage. Each pillar includes considerations for successful market entry and strategies to attract Indian consumers.

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Passenger Car Category:
A Strategic Instigation for success in India

2. Get Instigated…
Passenger Car Category – A Strategic Instigation for success in India

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Quirky Car Truths
(a few few fun observations & insights about Indian car market
to give you a quick flavor)
Evolution of personal social-mobility in India
(& where a car stands now)
India Success Structure
• Success & Failure Case Studies
• The Triangulated Approach to success
Deck Navigation

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A few quirky car-truths about India

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I want to bring home a western car which is high on tech,
features, lifestyle and foreign imagery,
but on the way I will do puja & need a spot on the dash board
for my ganpati bappa

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Buying & bringing a new Car home is
second only to bringing a new bride home

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My car is as much for me to feel happy about as
much as it is about my neighbors feeling jealous about it

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Don’t discount the car,
discount the price & the service

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Indians want to stand-out/apart from conformism. VFM over
service, spare parts and mileage, plush Interiors but now I also
demand exteriors which help me stand out. Also enable me to
customize.

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Can your showroom help me do puja to my new car and
help me decorate it grandly when it is a wedding gift for my
son-in-law?

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I want everything in my price-range,
I am not going to compromise…
(Democratization of luxury)

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I don’t care about your segments, my needs for more
demand that you invent new segments and create hybrid
segments
(Stretched Hatchback, Mini-SUV etc;)

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India (as a state of mind) Loves Independence & Is in Love with
Foreign Cars, Bharat (as a state of mind) loves Status & Power &
is patriotic about Indian-made cars

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Foreign Car is Cool (The Coconut nature of India years for all lifestyle things
from abroad) Vs Foreign Car is uncool (The Jugaad nature of India looks down
on low service & high maintenance foreign cars)

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Wagon R started becoming a success after it too off in
Punjab, as the high ceiling accommodated the turbans of
the Punjabis with some extra space…

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Wagon R started becoming a success after it too off in
Punjab, as the high ceiling accommodated the turbans of
the Punjabis with some extra space…

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Curious Case of Space crunched City Dwellers
Buying SUV/Mini-SUV segment
Big = Status (size does matter)

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Leaving aside these quirky car facts,
here is a macro-view to understand what Car means to India…

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Evolution of personal social mobility in India:

20. Social Mobility in
Pre-Occupied India
(Pre 1800’s)
Social Mobility in
Post-Independent
India
Social Mobility in
India Currently
TOP END: Personal
Social Mobility was a
heady mix of Status,
Power & Self-
Expression. It was
highly customized.
Middle & Lower End:
Though functional and
utilitarian, personal
social mobility also
was a form of self
expression and was
decorated &
customized
TOP END: A few foreign
Cars connoted status,
while ownership of a car
itself was status &
power. Self-Expression
& Customization took a
back seat
Middle & Lower End:
Interestingly thought I
was very utilitarian at
this segment, self-
expression,
customization via
jugaad continued.
TOP END: The top end is seeming without a limit,
while interestingly the EMI is democratizing it to
the middle level segments. Customization & Self-
expression is back with a bang.
Middle & Lower End:
Differentiation to stand-out is very important
and self-expression and customization is very
important.
Note: Status is hygiene as a motivation need for
car category in India. With discernment,
independence are differentiating aspects.
However India demands VFM & Service quality
as a non-negotiable hygiene

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Scarcity
Economy
Progressive
Economy
Indulgent
Economy
Post 1947 Post 1992 Post 2000
A car is a rich & powerful
man’s indulgence
(Status & Power)
Owning a car is a sign of
progress, achievement and
having arrived in life.
Every common man’s dream.
(Status & Independence)
Owning a car is not enough,
the kind of car you own, how
the car helps you stand-
out/apart and UnCar
Car is social currency, Car is
an expression of
self/extension of self Vs Own
Car is an inconvenience
(Status & Independence)

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The Success Structure
A few success & failure stories…

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Getting the Market entry right – from the launch itself is very important.
Let’s look at a few success & failure stories within the category for key learnings

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Hyundai Santro: The Success Story
Issues faced:
• Anonymity (They even had to teach the pronunciation)
• Daewoo debacle gave Korean Brands a bad name.
• 1997 Asian financial crisis, people had lesser money to spend

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Hyundai Santro: The Success Story

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Hyundai Santro: The Success Story
What did it resolve?
• Anonymity
• New face to the Korean Culture
• Mr. Kim-
• Well dressed
• Patient
• Not afraid of questions
• Resolute
When he managed to ‘Convince’ SRK, the Indian Public followed

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Was it Just Advertising?
• Hyundai launched with a Small Car-
• ‘Tall boy design’
• Streamlined supply chain operations
• Rationalised costs
• ‘Car Clinics’ to educate the consumer
• Dealers were experts in their domain.
Single minded purpose of winning the hearts of the Indian Consumer.

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In Contrast

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Ford did not really
get it right till Eco
Sport.
Ford failed to
enter the market
right because it
ignored the key
market realities
here:
Design, Service &
Imagery.

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Renault did not
really get it right
till Duster.
Again like Ford,
Renault ignored
the key market
realities here:
Design, Service &
Imagery.

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There are many brands which are yet to
even course-correct like Ford, Renault:

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Keeping these learnings and all our knowledge of the category and the Indian
consumer behavior in mind, we want to instigate you with a triangular success
structure for the right market entry into India

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The Success Structure
A strategic instigation…

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Strategic
Success
Structure
Product LureSocial Imagery
Heritage
India Bharat

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Product LureSocial Imagery
Design
Service
Interior
Exterior
VFM
Non-DIY
Status
Independence
Release
Which car to
launch with?
Technology
Heritage
Trust Performance
BI
CI
EI
India Bharat
Unifying Consumer Experience Strategy

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A few provocations on each of the 3 main success pillars:

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Product Lure
Design
Service
Interior
Exterior
VFM
Non-DIY
Fully Loaded, thought-through and democratized interiors are a must.
Swift, Duster, EcoSport, XUV, Creta and Brezza showcase that well
differentiated, design led exteriors are critical to success. Customization is key.
India is a VFM country and not a DIY country. Hence reach & efficiency of
service, cost of spare parts and cost of servicing, customer treatment &
pampering at the point of service are extremely critical factors for success
which Chevrolet, Skoda, VW, Ford ignored to their peril.

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Social ImageryIndependence
Release
Which car to launch with?
Who is the brand ambassador?
Who are our first buyers?
How do we create & display:
Technology, Innovation,
Efficiency & Trust
Discernment
Status as hygiene
“Jo road pe zyaada dikhta hai, wohi
bikta hai”
A premium offering to set the image
right, yet key focus on the hatch-back /
mini-suv segment would possibly be
the right way to go”

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Heritage
Trust Performance
The right heritage/parentage imagery is essential for
success & is quite tricky to achieve too (in the case of a new brand)

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The country of origin always
enjoys a certain perception
in the consumer mind.
German: High-performance, Scientific & efficient
machines.
American: Big & Flashy, Fuel-Guzzling, Lifestyle
Statement Cars.
Japanese: Safe & Solid, with good performance and fuel
efficient.
Korean: Stylish, Fully Loaded, VFM and good
performance.
Italian: Italian design (yet the failure of Fiat hangs over
Italy’s head – at least in the automotive category)

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Especially when it comes to a JV, then with two countries involved –
the combined imagery needs to be crafted with great care…

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Let’s look at a few good & bad JV positioning to manage the heritage question…

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Examples of Success and Failures
• Combined Strengths
• Hero Honda
• Maruti Suzuki
Maruti/Hero- Indian
• Trust - Patriotism,
• Sturdy,
• Great reach and understanding of consumer
Honda/Suzuki- Japanese
• Technology,
• Efficiency,
• Vision
• Foreign Imagery
• Combined Weaknesses
• Tata Fiat
Tata-
Lack of experience in Passenger Vehicle
Bad service support and penetration
Ignored imagery needs of Indian consumers
Fiat-
Padmini hangover with Premier
Looked at India as a utilitarian market only
and never showcased its technology &
innovation strength sher
• Similar Examples of Failures in the Indian Market
• Mahindra Renault
• Kawasaki Bajaj

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Thank You

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