Understanding Technology in 4 wheeler market

Automotive technology adoption
& trends in India
Submitted by: Anmol Narang

To understand Indian OEM’s product (technology) competitiveness .
Objectives
KSA Market Strategy -
To help OEM’s in their product positioning strategies.eg fuel efficiency
vs performance.
To understand product technology gap of Indian OEM’s vis-a vis global
counterparts.
To help internal teams understand technology that drives in a car and
and be in a position to have an intelligent conversation with clients.
2
1
3
4
5
To provide an indicative view to component makers and OEM’s
where R&D focus is required.

Top selling models contributing to 85% of sales volumes has been considered
both India and globally.
Scope of Study
KSA Market Strategy -
The highest variant for a model has been considered for this study.
The core systems of a typical car have been considered for study i.e engine,
transmission, brakes and steering.
Technology level/intensiveness score has been deduced on the basis of publicly
available performance data(or their proxies). Wherever such data was not
available, relative comparison of proven technology has been done e.g , drum vs
disc brakes.
2
1
3
4
The basic design and engineering aspects that drive performance
have been analyzed.5

Eon
Alto K10
Wagon R
stingray
0
20
40
60
350000 400000 450000 500000
Technologyscore
Price
Mini
i10
Elite i20Grand i10
Ritz
Swift
Celerio
Amaze
Brio
Indica V2 Indigo eCS
0
20
40
60
80
400000 500000 600000 700000 800000 900000
TechnologyScore
Price
Compact
Xcent
Swift Dzire
45
50
55
60
300000 500000 700000 900000 1100000 1300000
Technologyscore
Price
Super Compact Verna
City
Rapid
Sail
Sunny
Vento
20
30
40
50
60
70
80
90
700000 900000 1100000 1300000
TechnologyScore
Price
Mid Size
CR V
Superb
Camry
50
60
70
80
2000000 2500000 3000000 3500000
TechnologyScore
Price
Executive
Elantra Octavia
Corolla
50
55
60
65
70
75
80
1700000 1800000 1900000 2000000 2100000 2200000
TechnologyScore
Price
Premium
Technology-Price-Sales analysis, by segment.
Bubble Size indicates
sales volume

Eon
Alto K10
Wagon R stingray
0
10
20
30
40
50
60
350000 370000 390000 410000 430000 450000 470000 490000
Technologyscore
Price
Technology Analysis
• Alto K10 is able to provide double the technology as Hyundai Eon at approximately 7% higher cost
and hence has highest sale in the segment.
• In order to give more options to custoners,Maruti has strategically positioned both Alto K10 & Wagon
R at different places in Price –Technology matrix.
• Alto K10 provides more value: high technology at low cost than Stingray & hence has higher sales.
• Eon has 46% less acceleration as compared to Alto K10 & does not have a power steering as well.
 Hyundai Eon should invest in Technology at optimum cost to compete with Maruti Suzuki
vehiclles.
Technology Analysis -Mini Segment

i10
Elite i20
Grand i10
Ritz
Swift
Celerio
Amaze
Brio
Indica V2
Indigo eCS
20
25
30
35
40
45
50
55
60
65
70
400000 450000 500000 550000 600000 650000 700000 750000 800000 850000
TechnologyScore
Price
• Maruti Swift provides the highest Technology at a decent price (7.5L INR), hence is the leading
selling brand in compact segment.
• Maruti Celerio is able to provide the same technology at 30% less price than Grand i10.
• Even though Honda Amaze(compact sedan) offers similar Technology to Hyundai Elite
i20(Hatchback), but customers clearly prefer hatchback cars and not sedans in this segment
• Even though Ritz provides comparable technology to Swift and Hyundai i10, but Ritz looses
because of its unsporty look and styling.
• Hyundai has strategically positioned all its vehicles all across the providing different technologies.
• Honda Brio does not provide the technology its competitors like Grand i10 is providing and hence
has lowest sales in this segment.
Technology Analysis -Compact Segment

Xcent
Swift Dzire
44
46
48
50
52
54
56
58
300000 400000 500000 600000 700000 800000 900000 1000000 1100000 1200000 1300000
Technologyscore
Price
• Swift Dzire provides 20% more technology than Hyundai Xcent for the same price and hence has
higher sales.a
• Maruti Swif Dzire provides a superior Engine Technology because of its 4 cylinder inline as
compares to 3 cylinder 1100 cc of Hyundai Xcent.
• Swift Dzire also scores in the transmission technology with 30% better pick up than Xcent.
• Swift Dzire has a superior braking technology with Electronic Braking Distribution as well.
Technology Analysis -Super Compact Segment

• Honda City provides 14% more technology than Volkswagen Vento at approximately similar price.
• Skoda Rapid is not been able to take advantage of the value it is providing because of its limited
presence in the country.
• Honda City with a well-established brand name should invest in superior technology to ensure that
Hyundai Verna does not overtake it in sales.
• Volkswagen Group has strategically positioned Vento and Skoda Rapid at different positions in
Technology-Price Matrix. Skoda Rapid has been positioned as high technology-low price car
whereas Volswagen Vento has been positioned as high price-average technology car.
Technology Analysis –Mid Size Segment
Verna
City
Rapid
Sunny
Vento
55
60
65
70
75
80
950000 1000000 1050000 1100000 1150000 1200000
TechnologyScore
Price

Elantra
Octavia
Corolla
52
57
62
67
72
77
1700000 1750000 1800000 1850000 1900000 1950000 2000000 2050000 2100000
TechnologyScore
Price
• The segment comprises of Hyundai Elantra’s 1600 cc engine, Skoda Octavia’s 2000 cc engine and
Toyota’s Corolla 1800 cc engine.
• Hyundai Elantra and Skoda Octavia roughly sells the same number of vehicles and provides
similar level of technology.
• Customers in this segment are not price sensitive.
• Toyota Corolla fuel efficiency at 13.50 kmpl is 29% less than Hyundai Elantra.
• Even though Toyota Corolla has been leading in sales, it needs to invest more in Technology to
avoid Hyundai Elantra from taking it over.
Technology Analysis –Premium Segment

CR V
Superb
Camry
58
60
62
64
66
68
70
72
74
76
1600000 1800000 2000000 2200000 2400000 2600000 2800000 3000000 3200000 3400000
TechnologyScore
Price
• Toyota Camry is able to justify its high cost because of an exceptional Technology it is able to offer
its customers.
• Skoda Superb’s ability to provide higher technology than Honda CRV for roughly the same price
has ensured its sales are double than that of CRV.
• Customers in this segment are willing to spend the extra amount as long as they get additional
benefits.
• Skoda Superb is able to deliver very high technology using 2000 cc turbocharged engine as
compared to 2500 cc of Toyota Camry or 2400 cc of Honda CRV.
Technology Anlalysis -Executive Segment

Corolla(G)
Golf
Elantra(G)
Focus
Camry SE(G)
Polo
Hongguang
Passat(G)
Eon
Alto K10
Wagon R stingray i10
Elite i20
Grand i10
RitzSwift
Celerio
Amaze
Brio
Indica V2
Indigo eCS Xcent
Swift Dzire
Verna
City
Rapid
Sail
Sunny
Vento
Elantra
Octavia
Corolla
CR V
Superb
Camry
0
5
10
15
20
25
30
0 1 2 3 4 5 6 7 8 9
OEM Technology Distribution on Power / Weight
Toyota Maruti Volswagen Honda Skoda Tata Hyundai Others
Corolla S
Premium(G)
Golf
Hyundai
Elantra(G)
Focus
Camry SE(G)
Polo
Hongguang
Passat(G)
Eon
Alto K10
Wagon R stingray
i10
Elite i20
Grand i10
Ritz
Swift
Celerio
Amaze
Brio
Indica V2
Indigo eCS Xcent
Swift Dzire
Verna
City
Rapid Sail
Sunny
Vento
ElantraOctavia
Corolla
CR V
Superb
Camry
0
5
10
15
20
25
30
35
40
0 2 4 6 8 10
OEM Technology Distribution on Fuel efficiency
Corolla (G)
Golf
Elantra(G)
Focus
Camry SE(G)
Polo
Hongguang
Passat(G)
Eon
Alto K10
Elite i20
Grand i10Ritz
Swift
Celerio
Amaze
Brio
Indica V2
Indigo eCS
Xcent
Swift Dzire
Verna
City
Rapid
Sail
Sunny
Vento Elantra
Octavia
Corolla
CR V
Superb
Camry
0
5
10
15
20
25
30
0 2 4 6 8
OEM Technology Distribution on Top speed
Technology-Model analysis, by OEM and performance parameter (1 of 2)
Global
Hyundai Verna and
Honda Amaze score in
engine technology
because of their furl
efficiency whereas
Hyundai Verna scores
in Max Torque
category.
63%
Engines in Indian
market are better
than the global
benchmark in fuel
efficiency.
25%
Indian OEM’s with an
average fuel efficiency
of 22.8 kmpl are 25%
better than Global
OEM’s
Honda CRV is best
Honda Vehicle when
it comes to
power/weight but
score badly in fuel
efficiency./

Corolla(G)
Golf
Hyundai
Elantra(G) Focus
Camry SE(G)
Polo
Hongguang
Passat(G)
EonAlto K10
Wagon R
stingray
i10
Elite i20
Grand i10
Ritz
Swift
Celerio
Amaze
Brio
Indica V2
Indigo eCS
Xcent
Swift Dzire
Verna
City
Rapid
Sail
Sunny
Vento
Elantra
Octavia
Corolla
CR V
Superb
Camry
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
0 2 4 6 8
OEM Technology Distribution on Max Torque
Corolla (G)
Golf
Elantra(G)
FocusCamry SE(G)
Polo
Passat(G)
Eon
Alto K10
Wagon R stingray
i10
Elite i20
Grand i10
Ritz
Swift
Celerio
Amaze
Brio
Indica V2
Indigo eCS
Xcent
Swift Dzire
Verna
City
Rapid
Sail
Sunny
Vento
Elantra
Octavia
Corolla
CR V
Superb
Camry
0
5
10
15
20
25
30
0 2 4 6 8
OEM Technology Distribution on Pickup
Technology-Model analysis, by OEM and performance parameter (2 of 2)
When it come to Maximum
Torque, Volswagen and
Skoda beat their Japanese
counterparts Honda,
Hyundai and Suzuki
38%
The mean time taken
to reach from 0 to
100 kmph is 8.1 sec
for global vehicles vs
13.1 sec for Indian.
All maruti Vehicles
have similar pickup
whereas there is
considerable
difference in pickup
of Hyundai vehicles.
Global

Engine, Transmission, Steering and Brakes System Analysis
Type
Electric
/Electromecha
nical/Hydraulic
Tilt/Telescopic/Tilt &
Telescopic/None
Score 1/0.5/0 0.5/0.5/1/0
Score Rating
2 Very High
1.5 High
1 Average
0.5 Low
0 Very Low
Head Front Rear ABS EBD
Brake
Assist
Type
Ventillated
/Solid Disc
Disc/Dru
m Yes/No Yes/No Yes/No
Score 1/0 1/0 1/0 1/0 1/0
Score Rating
5 Very High
4 High
3 Average
2 Low
1 Very Low
Engine Rating
Range Rating
16 - 30 Very Low
30 - 4 4 Low
44 -58 Average
58 -72 High
72 -86 Very High
40%
30%
30% Fuel efficiency
Power/Weight
Max Torque
Engine Technology is being rated on :
40%
30%
30%
Fuel efficiency
Accelaration
Top speed
The parameters have been selected so that the rating
is done on an output basis. The transmission
technology for any particular capacity of engine can
be rated on the following 3 parameters
 Fuel efficiency
 Acceleration
 Top speed
E
N
G
I
N
E
B
R
A
K
E
S
S
T
E
E
R
I
N
G
T
R
A
N
S
M
I
S
S
I
O
N

Corolla (G)
Golf
Elantra(G)
Ford Focus
Camry SE(G)
Polo
Hongguang
Passat(G)
Eon
Alto K10
Elite i20
Grand i10
Ritz
Swift
Celerio
Amaze
Brio
Indica V2
Indigo eCS
XcentSwift Dzire
Verna
City Rapid
Sail
SunnyVento
Elantra
Octavia
Corolla
CR V
SuperbCamry
0
10
20
30
40
50
60
70
80
90
0 1 2 3 4 5 6 7 8 9
OEM Wise Distribution of Engine Technology
Engine Technology analysis, by OEMs and segments.
Eon
Alto K10
Wagon R stingray
i10
Elite i20
Grand i10
Ritz
Swift
Celerio
Amaze
Brio
Indica V2
Indigo eCS
Xcent
Swift Dzire
Verna
City
Rapid
Sail
Sunny
Vento Elantra
Octavia
Corolla
CR V
Superb
Camry
0
10
20
30
40
50
60
70
80
Segment wise Distribution of Engine Technology
Mini Compact Super Compact Mid size Premium Executive
66%
Engines are above
average in both
premium and
executive segment.
Honda Amaze with its
exceptional furl
efficiency and
maximum Torque
provides an engine
comparable to Skoda
Octavia in Premium
category..
Hyundai has the
highest band of
options in Engine
Technology for its
customers.
Toyota Corolla looses
to its competitors in
premium and
executive segment in
Engine Technology.
Global Indian

Corolla (G)
Golf
Elantra(G)
Focus
Camry SE(G)
Polo
Hongguang
Passat(G)
Eon
Alto K10
Elite i20
Grand i10
Ritz
Swift
Celerio
Amaze
Brio
Indica V2
Indigo eCS
Xcent
Swift Dzire
VernaCity
Rapid
Sail
Sunny
Vento Elantra
Octavia
Corolla
CR V
Superb
Camry
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
0 1 2 3 4 5 6 7 8
OEM Wise Distribution -Transmission Technology
Eon
Alto K10
Wagon R stingray
i10
Elite i20
Grand i10
Ritz
Swift
Celerio
Amaze
Brio
Indica V2
Indigo eCS
Xcent
Swift Dzire
Verna
City
Rapid
Sail
Sunny
Vento
Elantra
Octavia
Corolla
CR V
Superb
Camry
10.00
20.00
30.00
40.00
50.00
60.00
0 1 2 3 4 5 6
Segment Wise Distribution-Transmission Technology
Though having manual
transmission ,Honda Amaze
and City are leading the
transmission technology in
Compact and Mid Size
Segment .
Alto K10 & Swift Dezire are
leading in Mini and Super
Copact Segment.
whereas
Transmission Technology analysis, by OEMs and segments.
Global Indian

Brakes Technology analysis, by OEMs and segments.
Corolla (G) Golf Elantra(G) Focus
Camry SE(G)
Polo Hongguang
Passat(G)
EonAlto K10
Wagon R stingray
i10
Elite i20
Grand i10
Ritz
Swift
Celerio
Amaze
Brio Indica V2
Indigo eCS
Xcent
Swift Dzire
Verna
City
Rapid
Sail
Sunny
Vento
Elantra
Octavia
Corolla
CR V
Superb
Camry
0
1
2
3
4
5
0 1 2 3 4 5 6 7 8
OEM Wise Distribution of Braking Systems
V High
High
Average
Low
Very Low
Eon
Alto K10
Wagon R stingray
i10
Elite i20Grand i10
Ritz
Swift
Celerio
Amaze
Brio
Indica V2
Indigo eCS
Xcent
Swift Dzire
Verna
City
Rapid
Sail
Sunny
Vento
Elantra
Octavia
Corolla
CR V
Superb
Camry
0
1
2
3
4
5
0 1 2 3 4 5 6 7
Segment Wise Distribution-Brakes Technology
22%
of Indian cars have
rear brakes of disc
type whereas in
global cars all of
them have rear disc
brakes
.
81%
of Indian cars have
ABS which prevents
the wheels from
locking up on slippery
surfaces.
.
60%
of Indian cars can
boost for Electronic
Brake Force
Distribution wheras
only 30% have a
Brake Assit.
.
V High
High
Average
Low
Very Low]
Global Indian
*In absence of Data for Braking Distance & Mean Average Deceleration value ,Brakes have been rated on
the type of front & rear brakes,presence or absence of ABS,EBD & Brake Assist

Steering Technology analysis, by OEMs and segments.
Corolla (G)
Golf
Elantra(G) Focus
Camry SE(G)
Polo
Hongguang
Passat(G)
Eon
Alto K10
Wagon R stingray
i10
Elite i20
Grand i10
Ritz
SwiftCelerio
Amaze
Brio
Indica V2
Indigo eCS
XcentSwift Dzire
Verna
City
Rapid
Sail
Sunny
Vento
Elantra
Octavia
Corolla CR V
Superb
Camry
0
1
2
3
4
5
6
0 1 2 3 4 5 6 7 8
OEM Wise Distribution-Steering Technology
Eon
Alto K10
Wagon R stingray
i10
Elite i20
Grand i10
Ritz Swift
Celerio
Amaze
Brio
Indica V2
Indigo eCS
Xcent
Swift Dzire
Verna
City
Rapid
Sail
Sunny
Vento
Elantra
Octavia
Corolla
CR V
Superb
Camry
0
1
2
3
4
5
0 1 2 3 4 5 6 7
Segment Wise Distribution-Steering Technology
44%
44% steering are
collapsible and
prevents the driver
from injury during
acidents.
100%
.Hyundai steering
varies across models
in different segments
whereas Maruti Suzki
steering all gall in
Average Category.
.
37%
In India 37% steering
are both tilt and
telescopic adjustable
compared to 100%
globally.
Global Indian

• Different OEM’s are having different strategies in Indian market. Indian Leading
manufacturer Maruti Suzki has positioned all its vehicles as affordable fuel efficient vehicles
for masses whereas Skoda has positioned all its vehicles as high technology -high price
models for classes.
• Globally Volswagen Polo and Golf are providing the best technology across almost all
categories and systems.
• Leading players like Maruti and Hyundai have strategically positioned all their vehicles at
different position in Price-Technology Analysis.
• Research shows that Volswagen - the leading OEM in technology in global market does not
bring the best of technology in India due to price constraints but it has its subsidiary-Skoda
which provides the best of technology in Indian to the niche segment.
• Amaze, Verna and Octavia provide the leading engine technology whereas Verna, Elantra
and Camry provide the leading steering and brakes technology
• The research helps in identifying the points of parity and points of differentiation for different
models in Indian Automobile market.eg Except for Skoda and GM, rest all OEM’s are using
electric power steering technology.
• Tata Motors models-Indica V2 and Indigo eCs need to invest in technology in order to
increase its sales.
• In order to launch a vehicle at a lesser rate than Alto K10, Hyundai Eon did not focus at
technology which has resulted in lowest sales in mini segment.
Conclusions

 Tata Motors should increase its R&D capabilities and invest more on
Technology to compete in 4 wheeler segment.
 Models like Indica V2,Eon, Indigo eCs and i10 needs to invest in
technology to increase their sales.
 Hyundai Xcent in Mid Size segment has to either decrease its cost or
increase the technology in order to provide more value to customer.
 Indica, Eon and Brio needs to upgrade their powertrain technology whereas
Eon, Indica and Indigo needs to upgrade their brakes and steering
technology.
 Honda needs to add more affordable price-high technology models to City
and Amaze in order to penetrate in Indian market and give more options to
customers.
 Even though they do not have best of technology, models like Corolla and
City are performing exceptionally well in Premium and Mid-Size Segment.
They need to keep a track of what competition is doing in order to retain
their positions
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