Overview automobile Industry:
Overall Indian Automobile Industry has shown 2.61% growth in FY 2012-13 compare to last FY 2011-12. Production and Domestic sales has registered growth of 1.20% and 2.61%, however export is negative growth due to negative global environment and fluctuation.
Most of the automotive players have plan for expending their activities in India including new product launches. Indian automotive industry contribute 5-6% in GDP and more than 15 million man power directly associate with auto industry. However the overall performance is not giving good vibes for Industry. Indian Govt should take some action for stabling fundamental sentiments of economy.
Passenger Vehicle Segment:
One of the hot spot in world automotive industry is Indian car market. Indian car industry is going thru turbulent times in now. Car sales is down by more than 6% in FY 2012-13 compare to last year of FY 2011-12. The main reasons are high interest rates, fuel price, high inflation, low movement in other sectors etc. Utility vehicle segment is having maximum growth in this segment @ 52%. Ertiga has put successful foot print this segment. This vehicle is giving good competition to Innova. SUV segment also grown due to its fuel economy and price combination became top choice for larger families.
Maruti has increased market share due its better performance in UV segment compare to FY 2011-12. Tata is still third largest car manufacture with marker share of 15%. Tata has de-growth of 15% which is very significant. Tata need to revive its product position and brand value which play important role in passenger segment.
Tata Nano can be a good case study for product planning. Only advertising cannot increase sales. They must fulfill all parameter and clear picture of this target segment.
Even export came down from 3,462 units to 166 units, recording a de-growth of -95% in FY 2012-13. ACG analyst team saw that the main reason is of heavy marketing of Nano, Tata shall think about reducing the marketing cost, make it more competitive and pass it the customers.
Economy car segment:
It is biggest segment in car industry of around 8-9 lacs units. Maruti and Hyundai is dominating this segment.
Fiat can be good example for inconsistent strategy. There could be big barrier to be become successful in market. Fiat India is having one of the quality product in its segment. Fiat is targeting a modest 1% market share in 2013, with 100 exclusive Fiat showrooms expected to be operational by the end of the 2013.
ACG primary research shows that most of the Fiat customers are satisfied with its product quality but they have dissatisfaction over after sales service. ACG team has done this study to macro level to prepare strategy paper.
Sales and Celebrity:
Nissan Micra is one the companies who use celebrity to increase its sales. Ranbir Kapoor is the brand ambassador for Micra. This is a miss match between this segment car and branding strategy of Nissan.
We have done a complete study on this brand and segment. Contact us for the complete study report.
SUV Segment: Compact SUV – Game Changer
Fastest growing segment of FY 2012-13. Its segment share is around more than 20% & growing by around 7% in FY 2012-13. There is a perceptible shift from Mid segment sedans to SUV segment.
Duster manufacture/assemble at the plants in Pitesti (Romania), Moscow (Russia), Curitiba (Brazil) and Envigado (Colombia) and in Chennai. 4X2 and 4X4 version are available globally. For South America it is available with executive cabin design and colors where in India there is separate AC arrangement for rear compartment.
Renault Duster has sold 39,188 units in India in FY 2012-13. Globally its sale was 256,553 units out of which 98,498 units sold in Europe. In Europe there is de growth of this model but rest of the world it is very well accepted. Ford is also launching its EcoSports SUV in this segment.
Luxury Car segment: Audi Beats BMW to Pole Position
India is rapidly emerging as a key market for global luxury car brands. All premium brands has now having their show rooms in India. Audi, BMW, JLR, Volvo Cars and Porsche are top performer in this segment. Mercedes Benz is still struggling to get its space in this segment. Tata’s JLR Range Rover and Jaguar XF Sportbrake has good enough support to have mix product portfolio to increase its sales globally.
Significantly Audi beats BMW for top spot in luxury car segment. According to the 'ACG Brand Image Study' its the strong brand value that Audi imposed into the Indian market aided them in achieving this. And there is every chance of the gap between the two German giants to get widen in the near future. Tata Jaguar and Land rover has shown strong growth in FY 2012-12 with 101% growth rate.
ACG saw drastic changes in market this year. We are expecting to have some market correction and growth could be around 2-3% in FY 2013-14. ACG do forecast every qtr to qtr. We will keep watching all factors which can influence car industry. ACG like to see some solid initiatives from the side of Indian Gov. to keep the India Car Market more attractive.
“For detail analysis on Passenger Vehicle Industry, visit our ACG analysis section – www.autobei.com”
Thanks “ACG Analysis Team and SIAM” for the stats and figures.
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