This data could be game changer for OEMs, Suppliers, and other stakeholders. The demand for which product specs and price range are trending and forecast. For example, in 2025, BYD had 24 variants in India, and only 3 accounted for more than 52% of sales. Tesla has a 2 Variants, but one variant is in demand. VinFast offers 9 variants, but 5 are in demand, with each model having a more than 10% share.

The benefits of having this database are:

• Optimize product portfolio
• New Product Launch Strategy
• Who is winning the race based on features, Specs and Pricing
• Elasticity analysis
• Value proposition
• Customer choice – Mapping variants with customer segment
• Forecast demand accurately
• Gap Analysis to launch new Model and Variants
• Sweet price spot
• Electric Car Business Case
• Entry Strategy for India

The variants-wise data provide key insight of each models like:

• Battery size
• Price
• Architecture type
• Charging time
• Range
• Body type
• Segment

The following Brands are included in this database:

• Mahindra
• Tata Motors
• BYD
• VinFast
• Tesla
• MG Motors
• Mercedes Benz
• BMW
• Porsche
• Hyundai
• Kia
• Volvo cars

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Variant-wise Indian Car and SUV Sales and Product Data are available with the latest updates. Variants of Cars, SUVs, and MUVs play an essential role in product and Sales Strategy because they show the product position. Earlier, the top-end model was not as popular; however, this trend has since changed.

Some variants offer different price points to cater to various customer segments.

Overall, business performance has been impacted by the distribution of variants for each Model.

For OEMs and Startups:

Maruti Suzuki, Tata Motors, Hyundai, and Mahindra are offering the maximum number of Variants. Only the top 4 brands offer more than 50% of the variants. These are the Top brands in the Indian Passenger vehicle Market in 2024. Others, such as MG, Toyota, and Kia, have a 5% share in the Indian PV market.

Some variants are popular and a good example of product-market fit.

In terms of Models, Mercedes and BMW have a wide model range, which includes the right product mix.

Some Models have an overlap among the Affordable, ValuePlus, Premium, Luxury, and  High-end segments. However, the Model perception for buyers is also essential, as it influences the product’s position in the customer’s mind.

The variants have a different price bracket. Our Indian Indian Variants-wise Car Data provides the price band of each model and its product position.

Passenger Vehicle Segment: Car, SUV, and MUV

In the Car segment, Maruti has the highest number of variants, followed by Tata Motors, Hyundai, and others, including Bentley, Porsche, and Skoda. Maruti is the leading brand in the Indian Car segment because it has been producing sustainable cars for decades.

The SUV segment is the fastest-growing segment in India. Hyundai, Mahindra, and Tata Motors have the most significant number of variants, as all three brands are aggressive in their efforts to gain market share in the SUV segment.

Toyota, Kia, and Maruti are leading brands in the Indian multi-utility vehicle (MUV) segment. This segment presents an attractive opportunity for new brands seeking to expand their business, as only three brands currently hold a significant market share.

Please get in touch with us to get the variant-wise Indian Car Data.

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There is a zigzag pattern in Maruti Suzuki’s Sales growth and regrowth from 2014 to 2024.

Small and Affordable car portfolio was the biggest USP for Maruti. In the current scenario, it has become the biggest challenge. Maruti Suzuki is losing its grip on the common man’s preferred car choice.

Maruti Suzuki is losing market share because its small, affordable, and value-plus cars market share has declined. In 2014, the affordable car segment held a 12% market share, which decreased to just 1% by 2024.  Similarly, the Value Plus segment accounted for 63% of the market in 2014, but its share contracted to 48% by 2024. Maruti Suzuki was known for Small and affordable cars. This was one of the reasons that it commanded the Indian passenger Market for decades. In both segments, Maruti Suzuki had a market share of 5% and 37.5% in 2014. In 2024, the company lost grip on both segments. The Maruti lost 10% of its market share in the Value Plus segment and 4% in the Affordable car segment from 2014 to 2024. The overall Indian car and SUV market is moving towards the premium and luxury segments.

To regain the market share, there are two key options:

• Promote affordable Cars like Alto and try to change the market demand
• Align with the market dynamics, accept it, change the Brand perception, and create a product portfolio

Both options are challenging because changing market demand is difficult; usually, this is the approach taken by European OEMs in India. The customer mindset, Economics, per capita income, social life, and culture all have a combined impact on the market dynamics.

Finding space in the premium and luxury segments is also challenging because numerous successful car and SUV models are already present. Brand perception also plays a crucial role in purchase decisions.

Maruti Suzuki Product Strategy:

Maruti needs to enhance its presence in the Premium and Luxury segments. The future trend indicates that these two segments will have impressive growth.

The company needs to work on the Electric car segment as well to maintain its momentum and market share.

Currently, there are no Cars and SUVs available in Maruti Suzuki’s portfolio if buyers upgrade their vehicle to the premium or Luxury segment.

Tata Motors and Mahindra are examples of how they changed the brand perception among Indian buyers. Both Brands are well accepted by customers. Customers are willing to pay a premium for their cars and SUVs.

Contact us to get the Full detail Report. Why Maruti Suzuki Is Losing Market Share

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India should not be considered a highly price-sensitive segment because premium and Luxury Cars and SUVs are in high demand. It is expected that the Affordable and value-plus Car and SUV segment will decline by 9% and 3% CAGR from 2025 to 2030.

The Premium, Luxury, and High-end Car and SUV segment is expected to grow at a 7%, 8%, and 11% compound annual growth rate (CAGR) from 2025 to 2030.

The reasons behind these trends are product specifications and features, as well as a change in customer purchasing behavior.

The rise in income and the customer’s awareness of the benefits of features are key reasons behind this shift. Since disposable income has increased over the last decade, the upper-middle class population has been rising. This is supported by India’s fastest GDP growth and the development of its road infrastructure.

Status symbols and easy finance facilities are another key driver to move towards the Premium car and SUV segments.

A large chunk of the buyers are not first-time car buyers. In the second purchase, they upgraded their car or moved to an SUV.

OEMs are also launching new models in the Premium and Luxury car segments.

The Rise of Premium and Luxury Car Culture in India

ValuePlus SUV was the dominant segment in 2019 because buyers were expecting a little better experience compared to a car. This value-plus segment was also suitable for their buying power.

In 2024, the Premium segment surpassed ValuePlus in terms of size, as buyers expect great value from their SUV for a long-term investment.

In the Indian Car segment, the Value Plus segment remains popular because it fulfills buyers’ needs. The affordable segment is losing its grip because it offers only basic features and is akin to the next update of a two-wheeler.

Competitor Analysis: Variant-level Price Point

In India, 50% of cars, SUVs, MUVs, and vans are priced between ₹ 1 and ₹2.3 million.

Half of the models are priced below 1.5 million INR, and the other half are above this price point.

The SUV segment is the most attractive in India. Around Half of the Models in the SUV segment are priced between 1.2 and 2.2 million.

Models and Variants in the MUV segment have a price range between 1 and 1.9 million INR.

Low Competition Meets High Demand 

The segment that has a large size but a low number of models is the attractive segment.

By 2030, the price segment of INR1.5 to 2.0 million is expected to experience high growth, making it an attractive market.

Please get in touch with us to obtain the full report on the Indian Car Pricing Strategy.

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Introduction to Platform Business Case:

This report examines how an Electric car platform business case can help automakers, venture capital firms, startups, and other stakeholders achieve their goals. Cost optimization, Production process, increased TAM market size, Business and Operational efficiency, enhanced modularity, and market acceptance in various markets. ACG is analyzing how a unified platform can streamline production processes and accelerate the launch of new models. Moreover, the financial calculation is in an Excel sheet, and the report is in PPT/PDF format for easy understanding.

The purpose of the Report Global Electric Car Platform Business case is to present a detailed Business case for the execution and deployment of the Electric Car platform.

The global Electric car Platform Business Case provides strategic insights into investment, Sales Volume, Production volume, Selling price, Cost structure, Feasibility, Return on investment (ROI), operating margin, Revenue, Platform scalability, and key components. The report enables stakeholders to make informed decisions by analyzing key factors in EV platform development, market dynamics, product positioning, and operational efficiency.

Our EV Business case also analyzed how to add additional revenue sources, including market Demand, Regulations, Opportunities, Challenges, Customer segments, Various platform used cases, Product differentiation, and long-term benefits.

Why need Electric Global Car Platform Business case:

Since major EV markets like the USA, Europe, India, and China have already fixed their target of electrifying the automotive industry, OEMs must launch EV models quickly. The EV platform helps to penetrate the market soon to launch new models or various body types like SUVs, cars, and pickups. The OEMs can manage consistent Quality, Safety, Maturity, and Profit by Platform Strategy. Automakers can launch their new EV models within 2 to 3 years and SOP within 2 years, using the electric car platform business case.

Hyundai Ioniq 5, and Volkswagen ID. EVERY1 are examples of how quickly brands can launch new models.

According to the ACG 2025 Survey, more than 40% of buyers demand electric cars due to their technological advancement, smooth driving, rising environmental concerns, and awareness of the EV powertrain technology.

Using a single platform for multiple models and body types helps meet customers’ expectations regarding price, range, and software-defined vehicle (SDV).

Unique Characteristics of Platforms:

The following are the unique characteristics of an electric car platform:

• Compatibility,
• Consumption Externalities,
• Switching Costs and Lock-In, and
• Significant Economies of Scale in Production

These factors are critical in creating a competitive edge and delivering maximum value to OEM partners.

Key components of an electric car platform:

• Battery Pack
• Infotainment and Connectivity
• Modularity and Scalability
• Platform Variants in the Market
• Suspension System
• Electric Motor(s)
• Safety and Structural Considerations
• Power Electronics, and
• Chassis and Body Structure

Key highlights of the EV Business case:

• Executive Summary
• Introduction
• Introduction to Platform Business Models
• Platform Architecture
• Market Overview
• Target Market Analysis
• Competing in a Platform Ecosystem
• Pricing in Platforms
• Technology and Innovation Analysis
• Regulatory and Policy Environment
• Customer Needs and Value Proposition
• Business Model and Revenue Streams
• Manufacturing and Supply Chain Strategy
• Go-to-Market Strategy
• Financial Projections
• Risk Assessment and Mitigation
• Sustainability and ESG (Environmental, Social, Governance) Considerations
• Conclusion and Recommendations

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More than doing a survey is required to understand customers in Europe. Using different methodologies and tools helps to understand the customer’s wants and needs.

The key challenge in such customer analytics is that most people do not have actual experience with electric cars, as almost everyone has a lot of knowledge and information about ICE cars. For electric cars, “The public can’t truly know what kind of electric car they want until they see what options are available.” However, with our advanced customer analytics, we have created a clear image of customers’ requirements for different segments. Each segment has a different requirement, wish, and willingness to pay.

Europe has a diversified culture and language. We discussed with an average of 300 people in each European country, like Germany, Austria, Denmark, Sweden, Switzerland, France, Poland, the Netherlands, Ireland, Romania, Belgium, Estonia, and Bulgaria, to know their views, plans, and expectations of the electric car.

We considered the sample to have a good mix of Males and Females, Different age groups, urban and Rural Residents.

Customers give feedback on Willingness to pay, expected charging time, Expected range, Charging stations, and Car body type. This feedback is provided by various customer segments, such as urban commuters, Families, Young professionals, and environmentalists.

Three car segments are considered: budget, Premium, and Luxury. The Electric car specs, features, price, and other attributes are listed based on customer feedback.

To achieve success in the market, Electric car OEMs must not only focus on stated needs and fill them but also look ahead to future needs that customers may have and be ready to pay extra to meet such needs.

A special section of this report is the level of customer satisfaction and reliability Analytics, with the various parameters categorized between current and expected ratings. The report also dives deeply into the impact on sales, market share, growth, and brand image of customer satisfaction and delight, using the examples of Tesla and VW.

Most potential electric car buyers have ICE cars, and it is essential to know how customers prefer to switch from ICE to Electric cars. For example, Purchase price, Total cost of ownership, and technology-enabled safety are the top 3 criteria of the Budget car segment.  On the other hand, for Luxury Electric cars, Driving performance, car brand, and Sustainability are the top 3 parameters.

The report also consists of the different Electric car combinations and the willingness to pay for them.

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This paper gives you every small, sensitive, meaningful, and crucial information.

In the electric car sector, the American auto industry faces challenges in keeping pace with global competitors in battery cell design, power electronics, software development, extended battery range, making it fit for the mass market, and advanced rapid charging technologies. Additionally, the transition to software-defined vehicles presents a further challenge for traditional OEMs. As software becomes the key differentiator in vehicles—enhancing infotainment, performance, connectivity, autonomous driving, in-cabin experiences, and continuous updates—companies prioritizing software design over hardware are increasingly positioned to lead the market. Setting up a manufacturing plant in a cost-effective location within the USA is a strategic solution for entering the American electric car market.

Focusing on producing SUVs, Sedans, and Pickup Trucks will effectively cater to various customer segments.

The cost of setting up the factory, the investment required, ROI, the Manpower requirement, the manpower’s skill, the salary range, the number of employees, the raw material cost, the Supplier’s option, Software development, Battery sourcing or in-house LFP battery, Power Electronics cost, robotics, number of assembly lines,  and other key information.

The other part concerns forecasting, electric car market dynamics, policy, sales, marketing, revenue, profit, model-level pricing trim, customer segmentation, technical and feature requirements, and business strategy.

The Electric Car Business Plan suggests the best locations to establish an Electric car plant and why. This information is based on our interaction with US government officials.

The USA’s electric car market is transforming rapidly, driven by stringent emission regulations, robust government incentives, affordable price points, and growing consumer awareness of environmental sustainability. This business plan outlines a strategy to capitalize on the burgeoning opportunities within the American EV market, leveraging innovation, technology, and customer service strengths.

Competitors analysis help to find the gap, add value and role of customer delight in the success journey of the Electric car. Tesla, Rivian, Ford, BMW, Vinfast, Mercedes, Porsche has been considered.

Marketing plan before and after launching the Electric car in the US. The detailed with the budget allocation and allocation of the budget. How to communicate to the target customers, what brand perception need to create and how. Complete road map of Business strategy.

In next step, how to sell the Electric car. Which are the various major sales channel and which are most successful model. For the US Market Hybrid Sales channel partner is the best option.

This Business plan guide companies to how to be success in the US electric car market.

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The electric car market is experiencing a remarkable surge, with sales surpassing 10 million units in 2022. Electric cars accounted for 14% of all new car sales in that year, marking a significant increase from approximately 9% in 2021. The first quarter of 2023 witnessed the sale of over 2.3 million electric cars, showcasing an impressive 25% year-on-year growth. Projections suggest that sales could reach ~15 to 16 million units by the end of 2023 with the support of government subsidies.

The electric vehicle industry’s expansion is fuelled by various factors. The convergence of the supply chain and technology is progressing steadily, although a noticeable gap persists between the availability and demand for essential EV components, including semiconductors, inverters, and power modules. As a result, EV OEMs and suppliers have acquired valuable understanding regarding the challenges, technology maturity, and the roadmap for advancing electric vehicles.

Tesla is a prominent and influential player in the electric vehicle industry, constantly adapting its approach to broaden its market share. While Tesla was relatively not that famous in the past, today, all conventional automakers are embracing elements of Tesla’s technology and business model. A noteworthy breakthrough by Elon Musk is the introduction of the Discrete Power Module, which not only cuts costs but also ensures a smooth and uninterrupted supply of power modules for their electric car line-up.

The electric vehicle segment poses a challenging phase for German OEMs as they strive to maintain their market share, not only in their domestic market but also in key regions like China and the US. This situation significantly jeopardizes the longstanding European legacy in the automotive industry.

The business strategy utilized by established OEMs and suppliers:

A considerable number of OEMs and suppliers have set up separate departments within their organizations to cater specifically to the electric vehicle (EV) market. Initially, the financial attractiveness of this vertical may be limited due to the substantial initial investments and uncertainties related to technology development.

The strategy for achieving a suitable product-market fit for electric vehicles (EVs):

Numerous new models from major OEMs are currently in the development pipeline, driving the growth of the electric vehicle (EV) industry. The strategic planning of EV products plays a pivotal role in both defining the industry’s expansion and fostering the overall business growth of OEMs. During the initial phase of electric vehicle product launches, Luxury, Premium, and SUV models are dominating the markets in Europe and the USA. In contrast, the Chinese EV market has already experienced significant growth in the small electric car segment during its first phase, with the Economy EV segment now prevailing in China. Although the Electric Vehicle Subsidy in China concluded in 2023, there were still local-level subsidies available to a limited extent. Recently, the Chinese government decided to extend the EV subsidy until the end of 2027, with one of the reasons being to provide continued support to the country’s economy.

In a bid to promote the adoption of premium electric vehicles, the Chinese government is actively encouraging a shift in the electric vehicle (EV) market. As part of their policies, tax waivers for high-end EVs will continue, but there will be a cap of CNY30,000 during 2024 and 2025 for vehicles priced above CNY339,000. This unexpected extension of the waivers is expected to alleviate concerns among local automakers, providing them with an incentive to explore and invest in premium EV brands. Moreover, it serves as a significant motivator for traditional luxury car manufacturers to expedite their transition towards embracing EV technology. In the following years, the cap will be further reduced to CNY15,000 in 2026 and 2027, broadening its impact to encompass a wider range of EV models.

European car manufacturers are actively engaged in developing economical electric cars to introduce to the European market. Among them, VW stands out as a proactive player, determined to establish its presence in the EV segment. Additionally, Peugeot, Citroen, and Renault have ambitious plans to launch their own cost-effective electric car models by 2024. These upcoming vehicles are set to utilize Si IGBT technology, enhancing their performance and efficiency. Moreover, renowned brands like Mercedes and BMW are placing their faith in the 3-level switch technology, which is anticipated to offer a significant 4 to 5% improvement in efficiency compared to the conventional 2-level switch technology.

There are five key technological attributes that significantly influence electric vehicles:

1. 400V Vs 800V architecture
2. Si and SiC Semiconductor
3. Battery Type – Li comes with other types of metals
4. Motor efficiency
5. Overall vehicle Efficiency

The data underscores the prominence of the 400V architecture as the primary choice, with the 800V architecture offering quicker battery charging capabilities.

There is straightforward correlation between an electric vehicle’s range and its price.

Among electric vehicles, Tesla’s Model S and Model Y stand out as prime examples of exceptional efficiency, providing customers with a highly attractive proposition. Equally noteworthy, Hyundai’s IONIQ model features a meticulously developed and efficient e-powertrain, adding to the array of top-performing electric cars available to consumers.

Here are some key highlights of OEMs’ strategies:

BYD is making substantial strides in the $10,000 USD electric car market, establishing a strong foothold not only in China but also in other targeted markets, where it enjoys an impressive 60% market share. In a bid to strengthen its position in the electric vehicle segment, Volkswagen (VW) has made a bold move by investing $700 million in start-up XPeng, acquiring a 4.99% stake, and forging deeper cooperation with SAIC. These strategic endeavours highlight the OEMs’ commitment to the evolving electric vehicle landscape.

The electric vehicle market classifies its models into distinct segments based on price and power specifications. Within the economy segment, there are entry-level models priced below Euro 30K, equipped with 250kW power and utilizing IGBT technology. Meanwhile, vehicles falling within the economy segment boast a range of 400km or more, and those surpassing Euro 60K are categorized as premium car segment offerings.

In terms of technology strategy, Chinese OEMs are actively exploring the feasibility of implementing 400V architecture with SiC technology, while their European counterparts are adopting different approaches in their pursuit of advanced EV technologies.

Tesla’s innovative influence spans across various markets, where it is at the forefront among Original Equipment Manufacturers (OEMs). Not only has Tesla taken the lead in the vehicle sector, but its impact extends to the component level as well. A prime example of this is Tesla’s pioneering adoption of Silicon Carbide (SiC) in Power Modules. Observing Tesla’s successful integration of SiC technology, other manufacturers have swiftly followed suit, embracing this cutting-edge material in their own products. This trend highlights Tesla’s position as a trailblazer, setting new standards and prompting industry-wide advancements. As a result, Tesla’s forward-thinking approach continues to shape and elevate the automotive and tech sectors, inspiring further innovations and fostering healthy competition among OEMs.

In the ever-accelerating race towards automotive innovation, Tesla is at the vanguard, harnessing cutting-edge heat pump technology to extract thermal losses while Stellantis forges ahead with their ingenious Intelligent Battery Integrated System (IBIS), channelling direct AC power to the battery. These advancements redefine efficiency, unveiling a new era of cost-effectiveness, spatial ingenuity, and lightweight prowess.

As the EV landscape unfolds, some narratives point to China as the frontrunner, with European and American counterparts appearing to lag behind. However, let us view this spectacle not as a static snapshot but as a thrilling relay of progress. China may be leading in this exhilarating lap, but the next leg of the EV journey promises exhilarating twists, turns, and formidable competition from all corners of the globe. The finish line is far from reached, and the world eagerly awaits the thrilling crescendo of the next round of EV evolution.

Reimagining Charging Infrastructure:

The landscape of charging infrastructure presents numerous challenges, particularly from a customer perspective. However, strides have been made in Europe, China, and the US to enhance accessibility, especially for apartment dwellers. Leading the charge in this domain is Tesla, with its cutting-edge charging infrastructure that seamlessly supports both Slow and Fast charging using a single, versatile charger.

In the quest to develop a comprehensive network, companies like ABB, EVBox, Scheider Electric, Siemens, BP, and Shell are diligently working to establish a dense charging presence. While progress is evident, there remains a significant opportunity to further refine charging functionality and introduce innovative features, driving the widespread adoption of electric vehicles.

An essential aspect of this transformation is the standardization of charging plugs. By defining a universal version, customers can enjoy a hassle-free charging experience across diverse points, making electric vehicle charging an effortless and convenient reality.

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One of the best examples of a brand is the Mini. This car is worth Euro ~ €23,000 in functional value but sold for ~ €33,000 in Germany. The willingness to pay is significantly high due to its brand image. The Mini normally does not offer any discounts to prospective customers, The Mini is one of the best examples of both intangible and tangible qualities. Since it is associated with the BMW brand, it promises Quality, reliability, power, and road-holding performance. The Aesthetic look and design get the attention of anyone on the street just like Tata Harrier.

How brand Loyalty is the new key parameter for the Indian Passenger vehicles Industry compared to any other brand attributes like Brand awareness, or bargain loyalty. It’s a new growth engine.

How Tata Motors’ brand strategy created a success story for the company. How a brand is different compared to 2015.

ACG released a report on Indian Car Industry Branding Strategy and its impact on all stakeholders. We covered Maruti Suzuki, Hyundai, Tata Motors, Mahindra, Toyota, Volkswagen, Renault, Citroen, Skoda, Porsche, BMW, Audi, Mercedez, Volvo,  Kia, MG, and Honda cars. This report is a game changer for many Businesses.

We have covered the following points in our latest report:

• Branding Strategy of Car OEMs
• Current and previous Brand Position of OEMs in the Indian Market
• What were the big Brand mistakes Volkswagen done in India
• Company-centric and Customer-centric Brand Strategy
• Impact of brand strategy on the Indian Car Industry
• How to design a brand campaign in India
• How do Indian customers think and perceive brand on Functional parameters and emotional side
• What are the key ingredients of Brand Strategy and how to mix them to get the desired result
• How to design the brand strategy: Target Customers, Competitors, Similarities, Differences, Relevance, and Deliverability
• Strong Brand Analysis and how to build in every segment of the Indian Car Industry – Entry level, Premium, Luxury, High End, and Electric Car
• Relationship between Car, SUV, MUV (Product), and Brand image
• Brand Identity and Brand image (For customers)
• The connection between the business and the brand strategy
• Types of Brand Intangible associations: User profile, Psychographic mindset-based, Personality, and Heritage
• Pricing Strategy and mapping with brand association with OEMs and Customers
• Brand identity and Brand Image
• Why Brand Experiences matter
• Digital brand experience
• Designing Brand Experience
• Signature pricing
• Brand practices and Engagement
• Brand Metrics and Returns
• Brand Design and Delivery
• Connecting Dots
• Brand Portfolio Management
• Brand Practices
• The Six A’s of Brand Engagement
• The ABCs of behavior change
• Brand health
• Internal Brand Health
• Customer-based brand equity
• Brand Value – different understanding
• Brand Perception, Image, and Strategy for Rural and Urban India
• 5 Tenets of Brand Building
• How to measure Consumer based brand equity
• Case Study: Tata Motors, Kia, VW, and Mahindra

The post Indian Automobile Brand Strategy Report appeared first on Autobei Consulting Group.

Key Highlights of the report:

• The market size in Volume and Value of used cars in India
• Demand Analysis of used car in India
• The market trend of used cars in India
• The relation between new car model launches and existing car model price
• Key OEM volume and market share
• The volume of Car, SUV, and MUV Types of Cars (Hatchback, Sedan, Luxury, Premium, and other types)
• Top volume based on used car states, District, and Cities
• “Willingness to pay” analysis based on various features, Brand name, Product Age, and technical specs
• Used Car Price Analytics and correlation of car features and function
• How do customers take buying decision to buy second-hand cars
• What are the key channels to buy the second-hand cars
• How brand name  and brand image influence the buying decision
• How do customers decide to change or buy the car
• Top used car dealers
• Used car dealers and their product knowledge
• Selling skills of the sales staff of dealers
• How to improve the sales skill
• OEM sales channel brand audit report
• How digital platforms help customers buy the used car and how to make them more effective
• Organizes and unorganized dealer’s opportunities and challenges
• What are the key drivers of used car
• Inventory management analysis
• Car loan option to buy the second-hand car
• Customer profiles for different car segments
• After-sales challanges
• Major Used car players: CARS24, OLX, CarDekho, Carwale, Maruti True value, Hyundai H Promise, Mahindra First Choice, Honda Auto Terrace, Toyota U Trust, BMW Premium Selection, Audi Approved Plus, Mercedes-Benz Certified, Car Trade, and local major players

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Looking at the year 2021, we observe that the Indian car segment was able to achieve a sales volume of just over 33 lakhs. The Indian PV industry had a fantastic outing in the market, registering a 44% growth compared to 2020. This value corresponds to the sales volume recorded before the COVID-19 pandemic.

The Dealer network plays a significant role in the OEM’s success in India, enabling it to reach the target segment. There is a direct positive correlation between the number of dealers and the sales volume of Car OEMs:

Maharashtra, Gujarat, Delhi. Karnataka and Tamil Nadu arethe  top states in terms of the number of car dealers:

Luxury and high-car OEMs have different dealer network strategies due to their target market and buyer segment. Most of them have one or two dealers in a single state, owned by a single firm.

The SUV segment seems to have no stopping at the moment as it has emerged as the first choice for consumers. This is evident from the sales figures, with the volume sold in 2021 more than double that of the previous year.

There was a gradual rise in the overall market share of SUVs; the share was at a meager 9% in 2014 and rose to 37% by 2021. This hurt the overall car segment, as its market share dipped to 50% in the last year from 74%, which was the case in 2014.

The key factor in the rise of SUVs in the contemporary market is the advent of new models alongside a very affordable price range, which caught the buyer’s eye.

The SUV B has an almost 60% market share in the SUV segment presently, which is 4% higher than the value seen in 2020.

Experts had anticipated a boom in the economic upswing following the COVID period. It’s true that the Indian PV industry has rejuvenated itself over the last few years and has become more oriented towards buyers and product choices. Since the COVID-19 scare is still present across the nation in bits and pieces, one-third of potential buyers are in the process of making up their minds to proceed with the buying choice.

Amidst all the problems faced by the automobile sector of our country, the industry’s future still appears to have a fair chance of excelling in the market, and it indeed has a supreme capacity to grow further. The Indian automobile market is one of the most widely acclaimed market spaces globally and has consistently performed exceedingly well, with demand in this market never falling below the threshold. Indeed, even used vehicles are attracting buyers in the same way as brand-new car models do.

In recent days, the automotive industry has been plagued by numerous problems, presenting formidable hurdles in its path to growth. They are facing a tough time aligning with the digitalization, the advent of electric vehicles, and innovative vehicle connected features, as well as pricing factors. Most importantly, it’s a challenge for them to build a sustainable product that will last for almost half a decade from now. The ongoing tussle between Russia and Ukraine has had an impact on global fuel prices, which will likely lead to significant increases in fuel costs. This, in turn, will affect the pricing of ICE vehicles and overall operations. The advent of electric cars from OEMs would address the issue to some extent, but it can only be a damage control method and never a permanent solution to the problem.

The OEMs have presented new entrants to the market, the count stands at 14 brand new and three reintroduced models, and these new launches have been brought in with a strategy of offering a model as an alternative to the existing market giants, it also aims at bridging the space that exists between the market and also in placing the available products in the key position.

Tata Motors has given an enormous contribution by launching new products at regular intervals. This has set up rigorous competition in the Indian PV industry. Notably, the SUV segment has seen a surge in new entrants, with brands like Kia and Tata demonstrating their potential to capture a significant market share. They can even attract new buyers, potentially causing a dip in sales for other existing brands. The growth recorded in 2021 is immense; the SUV sub-segment saw an overall increase of 90%, while the mid-level MUV segment grew by 43%, and the B1 hatchback segment also grew by 43%. However, SUV D had a fantastic outing in the market, with a magnificent rise in growth of 318% in 2021.

The COVID-19 pandemic has posed a significant threat to the economy, resulting in buyers shifting away from their purchase decisions, especially in the budget range. The manufacturers should continue to focus on the two primary segments: the value-plus segment and the premium segment, as they hold a market share of approximately 85% in the current market scenario.

The rise in digitization has had a significant impact on the automotive sector, as customers are now willing to pay a premium for new features in the variant they are purchasing.

The XUV 700 can be seen as a perfect example of this, as buyers are willing to pay a premium price for top-end features. Additionally, we have observed an interconnection between the number of sales that take place at the dealership, which is present across the country. Even the VW Taigun has been the most sought-after by customers due to its solid looks and unparalleled interiors. The Korean brand, Kia, has evolved to be a pivotal contributor in the Indian market, currently ranking 5th in the PV industry in terms of volume, and well placed at position 3rd in terms of revenue generation.

The study, recently concluded by ACG, has shown that buyers are considering even the smallest aspects when making their purchasing decisions, with nearly 5,500 respondents from diverse backgrounds and age groups. We focused on evaluating the vehicle purchase experience of buyers in the top 25 cities in India, which encompassed both urban and rural areas. The survey also aimed to take note of the buyers’ attitudes, their preferences for channels in acquiring information, the choice of product, the cost-effectiveness of the brands, and, most importantly, the service rendered to customers after the sales cycle has ended.

The study has uncovered several key points that will provide the necessary guidance to potential buyers as we embark on the upcoming developmental period in the Indian automobile market.

• The SUV segment aims to conquer the market by offering debut car buyers the opportunity to purchase different variants at an attractive price point.
• There have been various innovative strategies to influence customers’ buying decisions; the best of them has been the venture of offering the “Next best vehicle option.”
• Potential buyers are now shifting their focus to the product they plan to own, rather than just relying on the brand’s reputation.
• The premiums of the car are also valued based on the number of best digital features they have. So the presence of digital features in the care is extremely paramount at this time.
• The rapidly changing market has demanded a change in the used market space. Therefore, employees must now understand what the customer truly expects and deliver it accordingly to ensure a high level of user satisfaction.

The way ahead:

At the moment, the ongoing war between Russia and Ukraine has had an impact on various businesses globally. Once normalcy is restored, oil prices are expected to fall back to their previous level. This would represent a significant breakthrough for the Indian car market. The increasing oil prices will enable a sharp rise in the overall sales of electric cars. The study also concluded that there would be an intense demand for personal cars, and this would take the market a long way ahead. It is also believed that there will be no slowdown in business, and even if there is, it will be easily addressed.

• Debut buyers – new vehicle buyers
• Maiden buyers – Old vehicle buyers
• Non-debut buyers, Replacement
• Non-Maiden buyers, Additional fleet

Increasing demand for the car, SUV, and MUV, and buyers’ eagerness to own a product:

The Indian automobile customers have shown a greater affinity towards owning an SUV, and for this reason, the SUV has become the most sought-after product in the segment. The buyers are looking to own one between the price tags of Rs. 770,000 and 870,700 INR. The study also revealed that almost 22 percent of people mentioned that they are ready to trade up to own a car in the near future. While many even had a wish to go beyond their budget to make a purchase slightly. There were instances where customers claimed that if their existing car were priced between 500,000 and 600,000 INR, then they would never mind going up by a lakh or two to make a purchase of a vehicle with full-fledged features.

The study’s results further stated that SUV models priced between 110,000 INR and 130,000 INR have established an incredible platform for the OEM, and they are indeed making the best use of it. The buyers are looking for vehicles that offer superior performance and render the best cabin and driveability experience.

The overall Market Share held by the SUV B, B1 hatchback, and premium hatchback constitutes almost half of the market presence, with just 27 models available in the market.

Impact of the brand on customers’ buying preferences:

The new launches in the market are doing well, and the brand’s reputation has a significant effect on maintaining the sales performance of these new entrants. It is worth noting that the acceptance rate of new entrants is significantly higher than that of existing models in the market.

Sheer competition in the market space:

The last 3 decades have been challenging for automobile brands. The existing domestic brands and reputable foreign brands are all trying their best to establish a foothold in the market. The contemporary market dynamics are incredibly different from what they were before; now, there has been an increasing demand from debut buyers. The not-so-reputed brands were able to carve out a small space for themselves amidst the presence of globally renowned brands and top-notch domestic brands. However, such a mutual presence would not last long, and only the brands that strike the customer’s aspirations will continue to exist.

In this domestic brand space, the top-performing brands enhanced their value from 13% in 2014 to a massive 18% in 2021. This 5% growth rate in less than a decade is a significant performance factor.

A key point to note from the study is that retention rates, particularly in the Indian automobile market, are at an all-time low. The reason for this needs to be ascertained, but it is clear that the buyers are not returning to the brand for which they had made an earlier purchase. The people who responded that they would purchase a vehicle from the same brand stood at an abysmally low turnout of just 10%. This number slightly increased by 11% and rose to 21% in 2021. Astonishingly, the owners of the car, which is priced at 500,000 INR and above, clearly stated that they are not in favor of making the same brand purchase the next time they plan to upgrade. The people with this opinion stood at 32%. During the period from 2014 to 2021, 53 percent of the people did not turn up for the previous brand they had already owned.

Tata Motors, however, brought about a revolution in the Indian market space by coupling their top-notch innovation with the premium touch to their new SUV and car models. This made Tata Motors the customers’ first choice when considering budget-friendly and premium-feeling cars. Tata Motors has now become synonymous with affordability and a brand that caters to the needs of every customer.

The Indian automobile market is credited with being one of the largest markets for vehicles. The performance of various brands in the Indian automobile market is dependent on several factors, including customer buying preferences, safety, comfort, and many others.  Almost 65 percent of the survey participants prefer brands with German roots, while others opted for the renowned JLR (Tata) brand. The study has further revealed that the JLR brand will be well-received by the Indian audience in the future and will gradually evolve to become a pioneer in the luxury vehicle segment. The other foreign brands hailing from South Korea and Germany have caught the customer’s eye and have been successful in creating a prominent name for themselves in the Indian market. If we compare the Indian market with that of China, we see a lack of domestic brands catering to the demand for Luxury vehicles, which has led foreign brands to dominate this segment. The study further indicates that customers are willing to go the extra mile by spending a little more to purchase cars from reputable brands.

There is an entirely different buying behavior and decision-making process for rural and urban Indian customers. In India, the market dynamics that influence buyers’ choices are dependent on numerous factors. Many buyers would rely on the words of their colleagues or those around them when deciding to purchase an automobile for personal use. Apart from this, people also choose to gather relevant data from available internet channels and segregate the brands and products that suit them the most.

There has been a sharp rise in the percentage of people who flock to YouTube and other well-known automobile expert channels and social media handles to discover the best brands and models on the market. The buyer will thus use the obtained information to decide on which specific brand to own. This trend is gradually gaining popularity, and currently, 36 percent of people have utilized such e-services available on the internet. Potential buyers will gather all the relevant information from the sites and then reach out to a sales executive to finalize their choice. At the same time, the other group, which constitutes about 27 percent, is not particularly tech-savvy and won’t rely heavily on the abundant information available on the internet to gather details about the product.

The information obtained from the online and offline modes plays an integral role in influencing the buyer’s mindset. Potential customers avail themselves of all the details about the vehicle’s overall performance, reliability, and technical features. Moreover, buyers tend to go through the blogs and reviews written by existing owners. All these layers together give an initial perception to the potential customer about the choice they would make.

Currently, the market trend is being revised daily in the wake of COVID-19. The most sought-after option by buyers has still been the one where the customer directly visits the showroom and interacts with executives to finalize their purchase. Apart from this, customers are trying to gather as much firsthand information as possible by referring to genuine and popular web pages and other online handles. Customers have already had their expectations set before getting their hands on any model. The prime factors that customers consider when making their buying decisions are the brand’s positioning in the market, exterior aesthetics, premium seating, best-in-class features, and, most importantly, the degree of trust a brand has established over the years, which is also known as the level of customer-centricity.

The key factor to note here is that more than 50 percent of the people believe the internet plays a pivotal role in providing the necessary basic overview for most probable buyers. It is also worth noting that some buyers don’t rely on the internet due to the lack of accurate price information on various portals, which itself is a major hindrance. The pricing of automobiles, especially in the Indian market, varies from state to state, depending on tax slabs and other parameters. This has led to a shift in customer preference from online platforms to offline showrooms, allowing them to determine the actual price and plan for ownership based on their financial feasibility. The male population between the ages of 18 and 40 is the ones who prefer to visit the showroom in person rather than surf the details online. In the current scenario, even the female audience is shifting towards online portals for obtaining details about automobiles before making a purchase. They mostly prefer to use automobile websites and phone applications because of the detailed information and transparency they offer. Even the offline setups are not much behind in this run, as there has also been an increase in visiting the car dealers in person, availing test drives, and getting valuable insights from relatives, friends, and many more; such offline engagements have evolved as the top choice for the potential buyers.

The post Indian Auto Consumer Insights Report appeared first on Autobei Consulting Group.

Volkswagen India roadmap to becoming the leading player in India:

ACG is assisting OEMs, Automotive Suppliers, Dealers, EVs, and Financial institutes to write growth and success story in India, APAC, African, and the Middle East region. ACG Analytics has identified some major issues with VW strategy.

We diagnosis the VW issue from different angles and created the roadmap to be successful in Indian Car markets. Customers, Dealers, Product Analysis, and Competition analysis, and our recommendation are part of the study.

Customer and Product Analytics to launch new products:

Our Product specs and Features matrix help OEMs to see the market fit and make it more appropriate to increase its sales and product acceptability. This is based on many key parameters like Price, Engine, Power, Customer & Product category.

Key features of the Report:

• Indian Car and SUV Market Assessment
• The current status of VW
• Volkswagen India Product acceptability and Position
• VW roadmap to achieve significant market share in each segment
• How to match its global product portfolio to fit into the Indian market
• How to add value in VW product portfolio
• VW target segment – their need and wants
• VW growth plan for next 5 years
• How to create milestones for the next 5 years
• New definition to identify the closest competitor of VW on major parameters
• The key challenge for Volkswagen India and Skoda
• Opportunities for VW India
• How to establish its foot in the Indian market
• Dealer level Strategy
• Brand and Product Review Strategy Analytics
• VW After sales experience and expectations
• Tata Motors, Honda, Hyundai, Maruti Suzuki, and Ford, Car, and SUV Case study

The post How Volkswagen can win the Indian Car battle appeared first on Autobei Consulting Group.