Indian Automobile Industry

Indian Automobile Industry Market Size USD 57.7 Billion

Worlds second-largest two wheeler manufacturer

20.7 million units were produced in FY13

Domestic sales has increased by 2.61% (from 1.73 crore to 1.78 crore)

Indian Automobile landscape

Market break Up

Commercial Vehicle Segment

One of the important factor in industrial success

70% production belongs to LCV and rest to MCV & HCV

The production of Commercial Vehicle is expected to rise by 7-9 % in 2014(LCVs are estimated to grow 10-12 % MCVs and HCVs are projected to increase 1-3 %)

Most of the sales(volumes) comes from LCV & revenue from M&HCV

The production of LCV increased by 13% in FY 2012-13 whereas for M&HCV it decreased by 9.60%

Relative market share & Leader

Light Commercial Vehicle Industry

One of the fastest growing industry after Two Wheeler

460,000 LCV’s were produced in FY 11-12 (expected to increase to 5 lakh 22 thousands i.e. increase of 13% in 2013

Industry Attractiveness(LCV)

Double digit growth rate (fastest growing segment)

Increasing demand for LCV’s ( due to the high cost of ownership for MCV/HCV)

Few players in this segment

Space for INNOVATION

High Profitability

Easy Entry for new players

MAHINDRA MOTORS

Entered Automotive manufacturing industry in the year 1947 to bring iconic Willys Jeep onto Indian roads

Over the years, Mahindra diversified into many new businesses in order to better meet the needs of customers. Currently, Mahindra’s operations span 18 key industries that form the foundation of every modern economy

Currently, Mahindra & Mahindra is one of the 20 largest companies in India

In January 2011, the Mahindra Group launched a new corporate brand, Mahindra Rise, to unify Mahindra's image across industries and geographies. The brand positions Mahindra products and services as aspirational, supporting customers' ambitions to 'Rise.'

MAHINDRA MOTORS PEST

Govt Regulations

Investment in Infrastructure

Import & Export

Low demand of Automobile

Challenging GDP Environmental activities

Technology enabled cars

Employment opportunities

Innovation

Slow growth affecting manufacturing

Political Economic Social Technological

Good Brand Image

Technologically advanced products

Quality products at affordable prices

Late entrant in few categories

Work on dealer networks

Product failure ( 2 wheeler )

Bank on New segments( 2 wheeler’s & LCV)

Late entrance affecting market share

Slow growth affecting manufacturing

Strength Weakness Opportunities Threats

MAHINDRA MOTORS SWOT

Mahindra spares centers

Low dealer network (280)

Competition (stay ahead of competition)

Sales

Time

Development Introduction Growth Maturity Saturation Decline

Product Life Cycle

Industry

TATA MAGIC & MAHINDRA MAXXIMO

Sales

Time

Development Introduction Growth Maturity Saturation Decline

Industry

TATA MAGIC

MAHINDRA MAXXIMO

Expected position in Product Life Cycle

Question Mark Stars

Dogs Cash Cows

Market Growth

Market Share

High

Low High

?

BCG MATRIX

MAHINDRA MAXXIMO

MAHINDRA MAXXIMO

Product & Price

A Mini van equipped with features such as huge space, comfort, contemporary design & best in class mileage

Point of Differentiation: Safe Eye TechnologyReal time tracking, Video recording & Crisis notifier

Priced at Rs.4,00,000 available with the good dealer network of 280 around the country

STD & P

Demographic: Maharashtra, Male 30-35 years, Married, Self employed, Income p.m: Rs.50,000

Psychographic: Attitude: Ambitious, Confident, Value-seekingValues: Enterprising, Hard working

Behavioural:The buyer looks at:Getting the maximum monetary value from the purchasePurchase considered a tool for enhancing prosperity of the Buyer and his Family

Differentiation: Safe Eye Technology

Positioning:A technologically advanced Mini Van vehicle with gamut of features keeping in mind safety of the end user

Tagline:Masti ka Hamsafar

Promotion

To position the Maxximo Mini Van VX –School Bus as a safe vehicle that ensures peace of mind for the parents of students whilst also resulting in Higher earnings for the Vehicle Owner

To establish the fact that Maxximo Mini Van VX is a ST-certified school vehicle in the state of Maharashtra

To Showcase the value offered by the vehicle and establish it as a product of choice in School Van Segment

Marketing Goal

Generate awareness and buzz around Maxximo Mini Van VX- School Bus with Third Party School Van Operators and Small Administrators in Maharashtra

Establish distinct advantages of Mini VanVX in School Application

Generate enquiries to the tune of 2000 through a mix of ATL & BTL campaigns

Media Goal

Approach

1 week campaign

Two mediums:Newspaper (Dainik Bhaskar)Teaser Ad, Announcement ad, Advertorial and follow up of events

Events activation:Mini Van safety weekTraining workshops held by Mahindra for Bus driversPanel Discussion involving Parents, Principals and RTO

Media Budget

1 week campaign

Top Cities of Maharashtra:MumbaiPuneAurangabadNashikNagpur

80 Lakhs was estimated cost for communications Actual cost: 65 lakhs

Results

Achieved the awareness objective with enquiries surpassing more than the set target of 2000 (3500+ enquiries)

More than 3000 people attended the interactive session

Sale of 200 Minivan took place within a period of 1 month after the campaign

Financials

Year 2013 2014 2015 2016

Market share(in %) 30 32 34 36

Production(in thousands) 2000 2200 2420 2662

Expected Revenue 800000000 880000000 968000000 1064800000