HIGH PRIORITY MARKET - AUTOMOBILE
STRATEGIES ADOPTED
Capacity addition
· Every company wants to increase its capacity in order to increase its market share in automobile industry . Moreover , Nissan and Mercedes is planning to increase their capacity in Chennai and Chakan respectively .
· Most of the companies eyeing India as an outsourcing hub .
· Honda is planning to expand its capacity for cars and bikes by investing USD158 million .
Launch of new models
· In 2015 , new models of cars were launched in India . They are Audi Q7 ( New Generation ), Audi S5 , Maruti Wagon R Stingray , Toyota Land Cruiser 200 , Maruti Baleno , Chevrolet Trailblazer , Fiat Punto EVO , Fiat Abarth Avventura , Fiat Abarth Punto and Maruti Ciaz .
Marketing & advertisement
· Each and every firm is now focusing on shelling out a chunk of their profits on advertisement .
· The idea is to make the customers more brand conscious and increasing brand positioning .
· This is giving the firms differential advantage . Success today lies in structuring and restructuring strategies .
Catering Indian needs
· India boasts a large population of middle class .
· Most of the firms including Ford and Volkswagen have adapted themselves to cater to this class by dropping their traditional structure and designs .
· This allows them to compete directly with domestic firms making the sector highly competitive .
CAPITALISING ON STRONG DEMAND AND PRODUCT INNOVATION
Growing demand |
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Policy support |
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Increasing investments |
Rising income , young population |
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Goal of establishing India as an automanufacturing hub |
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Rising investments from domestic and foreign players |
Greater availability of credit and financing options |
Inviting |
R & D focus ; GOI has set up a technology modernisation fund |
Resulting in |
Greater product innovation ; market segmentation |
Strong growth in exports , Improved Infrastructure |
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Policy sops , FDI encouragement |
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Demand projected to remain strong , making returns attractive |
Spotlight on Indian Electronics 2016 | 202