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