Introduction

Automobile sector is a key player in the global economy. The global motor vehicle industry (for
wheelers) contributes 5 per cent directly to the total manufacturing employment, 12.9 per ces
to the total manufacturing production value and 8.3 per cent to the total industrial investment.
It also contributes US$560 billion to the public revenue of different countries, in terms of taxes
on fuel circulation, sales and registration. The annual turnover of the global auto industry is
around US$5.09 trillion, which is equivalent to the sixth largest economy in the world
(Organization Internationale des Constructers automobiles). In addition, the auto industry is
linked with several other sectors in the economy and hence its indirect contribution is much
higher than this All over the world it has hom treated as a leading economic sector because of
its extensive economic linkages. India's manufacture of 7.9 million vehicles, including 1.3
million passenger cars, amounted to 2.4 per cent and 7 percent. respectively of global
production in number. The auto-components manufacturing sector is another key player in
the Indian Automotive industry. In India, the automobile industry provides direct employment
to about 5 lakh persons. It contributes 4.7 per cent to India's GDP and 19 per conto India's
indirect tax revenue (Society of Indian Automobile Manufacturer).

Automotive industry is the key driver of any growing economy. It plays a pivotal role in the
country's rapid economic and industrial development. Due to its deep forward and backward
linkages with several key segments of the economy, the automobile industry is having a strong
multiplier effect on the growth of a country and hence is capable of being the driver of
economic growth. It plays a major catalytic role in developing the transport sector on one hand
and help industrial sector on the other to grow faster and thereby generate significant
employment opportunities.

Automobile industry, being one of the fastest growing sectors in the world, its dynamic growth
phases are explained by the nature of competition, product life cycle and consumer demand.
Today, the global automobile industry is concerned with consumer demands for styling,
safety, and comfort. and with labor relations and manufacturing efficiency. The industry is at
the crossroads with global mergers and relocation of production centers to emerging
developing economies.

In 2020, India was the fifth-largest auto market, with ~3.49 million units combined sold in the
passenger and commercial vehicles categories. It was the seventh largest manufacturer of
commercial vehicles in 2019.
The two wheelers segment dominate the market in terms of volume owing to a growing middle
class and a young population. Moreover, the growing interest of the companies in exploring
the rural markets further aided the growth of the sector.
India is also a prominent auto exporter and has strong export growth expectations for the near
future. In addition, several initiatives by the Government of India and major automobile
players in the Indian market is expected to make India a leader in the two-wheeler and four-
wheeler market in the world by 2020.
Indian Automobile scenario

The automobile industry in India is the world’s fifth largest. India was the world's fifth largest
manufacturer of cars and seventh largest manufacturer of commercial vehicles in 2019. Indian
automotive industry (including component manufacturing) is expected to reach Rs. 16.16-
18.18 trillion (US$ 251.4-282.8 billion) by 2026. The industry attracted Foreign Direct
Investment (FDI) worth US$ 25.85 billion between April 2000 and March 2021 accounting for
~5% of the total FDI during the period according to the data released by Department for
Promotion of Industry and Internal Trade (DPIIT).
The Indian automotive industry is expected to reach US$ 300 billion by 2026.
Domestic automobile production increased at 2.36% CAGR between FY16-FY20 with 26.36
million vehicles being manufactured in the country in FY20. Overall, domestic automobiles
sales increased at 1.29% CAGR between FY16-FY20 with 21.55 million vehicles being sold in
FY20.
Two wheelers and passenger vehicles dominate the domestic Indian auto market. Passenger
car sales are dominated by small and mid-sized cars. Two wheelers and passenger cars
accounted for 80.8% and 12.9% market share, respectively, accounting for a combined sale of
over 20.1 million vehicles in FY20. Two-wheeler sales stood at 1,195,445 units in March 2021,
compared with 1,846,613 units in March 2020, recording a decline of 35.26 %.
Passenger vehicle (PV) sales stood at 279,745 units in March 2021, compared with 2,17,879
units in March 2020, registering a growth of 28.39%.
Overall, automobile export reached 4.77 million vehicles in FY20, growing at a CAGR of 6.94%
during FY16-FY20. Two wheelers made up 73.9% of the vehicles exported, followed by
passenger vehicles at 14.2%, three wheelers at 10.5% and commercial vehicles at 1.3%.
The electric vehicle (EV) market is estimated to be a Rs. 50,000 crore (US$ 7.09 billion)
opportunity in India by 2025. Several technology and automotive companies have expressed
interest and/or made investments into the India EV space. Auto companies such as Hyundai,
MG Motors, Mercedes, and Tata Motors, have launched EVs in the market. A recent study
conducted by Castrol found out, most of Indian consumers would consider buying an electric
vehicle by the year 2022. The study also highlighted for an average Indian consumer, price
point of Rs. 23 lakh (or US$ 31,000), a charge time of 35 minutes and a range of 401 kilometers
from a single charge will be the 'tipping points' to get mainstream EV adoption. A cumulative
investment of ~Rs. 12.5 trillion (US$180 billion) in vehicle production and charging
infrastructure would be required until 2030 to meet India’s electric vehicle (EV) ambitions.
A report by India Energy Storage Alliance estimated that EV market in India is likely to increase
at a CAGR of 36% until 2026. In addition, projection for EV battery market is forecast to expand
at a CAGR of 30% during the same period.
The Government aims to develop India as a global manufacturing and research and
development (R&D) hub. It has set up National Automotive Testing and R&D Infrastructure
Project (NATRiP) centres as well as National Automotive Board to act as facilitator between the
Government and the industry. Under (NATRiP), five testing and research centres have been
established in the country since 2015. NATRiP’s proposal for “Grant-In-Aid for test facility
infrastructure for Electric Vehicle (EV) performance Certification from NATRIP
Implementation Society” under FAME (Faster Adoption and Manufacturing of (Hybrid) and
Electric Vehicles in India) scheme was approved by Project Implementation and Sanctioning
Committee (PISC) on January 03, 2019. In Union Budget 2021-22, the government introduced
the voluntary vehicle scrappage policy, which is likely to boost demand for new vehicles after
removing old unfit vehicles currently plying on the Indian roads.
The Indian Government has also set up an ambitious target of having only EVs being sold in
the country. The Ministry of Heavy Industries, Government of India, has shortlisted 11 cities in
the country for introduction of EVs in their public transport system under the FAME scheme.
The first phase of the scheme was extended to March 2019 while in February 2019, the
Government approved FAME-II scheme with a fund requirement of Rs. 10,000 crore (US$ 1.39
billion) for FY20-22. Under Union Budget 2019-20, Government announced to provide
additional income tax deduction of Rs. 1.5 lakh (US$ 2,146) on the interest paid on the loans
taken to purchase EVs.
EV sales, excluding e-rickshaws, in India witnessed a growth of 20% and reached 1.56 lakh
units in FY20 driven by two wheelers. According to NITI Aayog and Rocky Mountain Institute
(RMI) India's EV finance industry is likely to reach Rs. 3.7 lakh crore (US$ 50 billion) in 2030.
The Government of India expects automobile sector to attract US$ 8-10 billion in local and
foreign investment by 2023.
FINANCIAL YEAR '20

■ The automobile industry was hit hard in FY 2019-20 as sales fell across

vehicle segments. According to data released by SIAM, the Indian

automobile industry recorded a 20.3% decline in domestic sales in FY20

as compared to a 5.9% growth in FY19.

■ The Passenger Vehicle segment declined 17.3% in FY20 (as compared to

2.8% growth in FY19) due to weak consumer sentiment, the rising cost of

vehicle ownership, and general economic slowdown.

■ The Commercial Vehicle industry in India registered a 30.0% decline in

FY20 compared to 17.1% growth in FY19, as a result of subdued demand,

and higher capacity arising from the transition to BSVI.

■ After an outstanding growth in FY19, Indian industry's domestic sale of

motorcycles in FY20 saw a decline of 17.5%. It was not just the relative

lack of demand as the motorcycle industry was subjected to several

regulations which significantly increased the cost of ownership.

■ Industry-wide domestic sales of three-wheelers fell as well. After enjoying

growth of over 10% in FY19, it fell by 9.2% in FY20.

■ The Covid-19 pandemic also cast a long shadow over a much anticipated

mild recovery in the automobile industry. Besides, the economic and

political uncertainties and increased protectionism in some of the export

markets impacted the exports sales.

■ To adjust to the changing economic climate, companies adapted

themselves to cater to the large middle-class population by dropping their

traditional structure and designs. Maruti Suzuki launched 'Maruti Suzuki

 Subscribe', a service that allows customers to lease select models for a

specific period.

■ The interest in a personal mode of transport revived due to hygiene and

health issues. This gave a boost to pre-owned vehicle businesses post-

Covid-19. Mahindra First Choice Wheels Limited (MFCWL), India's

foremost organized multi-brand used car player, sold about 200,000 used

vehicles during FY20.

Sales of automobiles in India from financial
year 2011 to 2021, by type
(in million units)

Release date
2021
Region
India
Survey time period
FY 2011 to FY 2021
Maruti Suzuki India Limited, subsidiary of Suzuki Motor Corporation, Japan, is India’s biggest
car maker with more than 51% market share in the passenger vehicles segment in FY20. The
company recorded sale of 1,457,861 units in FY21. Company Website: [Link]
Maruti Suzuki - Way of Life 2021 ...
About Maruti Suzuki>

Tata Motors was established in 1945 under the Tata Group. It is among the world’s leading
manufacturers of automobiles with around 81,090 employee strength. It was the market
leader in commercial vehicles segment with about 45% market share in FY19. It is present in
segments like cars and utility vehicles, trucks and buses, and defence vehi...
About Tata Motors>

Hero MotoCorp Limited (formally Hero Honda Motors Limited) is the world’s largest
manufacturer of two-wheelers. It is present in South Asia, Africa, Middle East, and Latin
America. Hero MotoCorp was the first Indian two-wheeler company to establish a
manufacturing plant in Latin America. Its key products include two wheelers up to 350cc
and...About Hero MotoCorp Limited>
India's Automotive Report FY 2020 and Forecast

The dreary fact is that March and April remained the most
challenging months of 2020 for the auto sector, for the 40 days
lockdown produced nil sales and zero production.

Market trend & forecast

April 2020 – Indian Automotive Industry, unfortunately, is going through a rough time just

like any other automotive market. Reason ? COVID-19, New Emission norms, Weak consumer

and economic sentiments! Coronavirus will change the future of the automotive industry and

is believed to produce a long-lasting impact on a large scale. ACG forecast on the Indian

Automotive market is produced in 3 different ways – Optimistic, Pessimistic, and Unsure. The

Indian GDP forecast shows there will be an absolute drop of around 2.8% in FY 2021. The CAGR

of the Indian automotive industry’s sales between FY 2009 and FY 2020 comes around 8%. The

Passenger Car segment registered a 5% growth rate, Commercial vehicle 6%, 2-wheelers 8%,

and 3-wheelers segments registered a 6% growth rate between FY 2009 and FY 2020.

The dreary fact is that March and April remained the most challenging months of 2020 for the

auto sector, for the 40 days lockdown produced nil sales and zero production. However, OEMs

gave financial support and helped dealers during these difficult times.
Production: Re-establishing production facilities will be more challenging than shutting them

down. It requires a thoughtful approach to revive the supply chain, equating the volume to

actual demand, and, most importantly, shielding the workforce, who are indeed the backbone

of every successful industry. The passenger vehicle sales declined by 50%, Commercial

vehicles to 88%, Two Wheelers to 40%, and three Wheelers registered 60% in March 2020.

Besides, in the CV segment, almost all major OEMs recorded more than 85% decline in sales.

Overall sales declined by 45% in March 2020 compared to March 2019.

When it comes to Passenger vehicles, Tata Motors, Volkswagen, Mahindra, Skoda, Honda, and

Ford recorded massive degrowth in the history of their service in India.

Similarly, in the two Wheeler segments, all top OEM firms recorded more than 40% degrowth

in March 2020. Similarly, Indian Auto Industry sales dropped to 18% and Production volume to

15% although exports registered a 3% growth in FY 2020.

The size of the Indian Automotive market is lessened to 2,15,50,494 units with an 18%

degrowth in FY 2020. Among which, commercial vehicle market is declined to 7,17,688 units

with a 29% degrowth, three Wheeler market is declined to 6,36,539 units with a 29%

reduction, passenger vehicle declined to 27,75,679 units with an 18% degrowth and Two

Wheeler market declined to 1,74,17,616 units which again is an 18% degrowth in FY 2020.

However, the SUV/MUV and MHCV are two sub-segments that showed minor growth.

Maruti Suzuki gained around 3.5% market share in the car segment, and in the SUV/MUV

segment Mahindra lost a 6% market share; however, Hyundai improved its performance in the

SUV segment and increased 5% market share in FY 2020.

 Sales trend
Among the commercial vehicles, Mahindra had increased its market share from 25% to 28% in

FY 2020. Whereas, Tata Motors and Ashok Leyland had lost their 2% market share. In the

MHCV Bus segment, Ashok Leyland increased its market share by around 4% and among the

MHCV Truck segments, Ashok Leyland lost 4% market share but Eicher increased its share by

2% in FY 2020. In the LCV Bus segment, Force Motors holds its authority status by adding

another 3% market share; whereas in the LCV Truck segment, Tata Motors lost its 2% market

share. Among the Two-Wheelers market, Honda has improved its performance and increased

its market share by 2%. While in the Motorcycle segment, Hero still manages to take the top

spot by yielding a 50% motorcycle sales share in India.

Key Highlights of the report:

· Indian Automotive market trend from FY 2008 to Fy 2020 and Forecast.

· Sales, Production and Export Analysis

· Pricing Analysis

· Product Life cycle

· Truck, Bus, Two Wheeler, Passenger Vehicle – Car, SUV, MUV and Van, Commercial

Vehicle, and Three Wheeler market Analysis

· Competitor Analysis

· New players in the Indian Automotive market and impact

· Challenges after COVID 19 for OEMs, Suppliers, and Dealers

· SWOT Analysis, and

· Entry Strategy.
 Market size
Domestic automobiles production increased at 2.36% CAGR between FY16-20 with 26.36
million vehicles being manufactured in the country in FY20. Overall, domestic automobiles
sales increased at 1.29% CAGR between FY16-FY20 with 21.55 million vehicles being sold in
FY20.
In FY21, the total passenger vehicles production reached 22,652,108.
In May 2021, production of automobiles (passenger, three-wheeler, two-wheeler vehicles and
quadricycle) was 806,755 units.
Two wheelers and passenger vehicles dominate the domestic Indian auto market. Passenger
car sales are dominated by small and mid-sized cars. Two wheelers and passenger cars
accounted for 80.8% and 12.9% market share, respectively, accounting for a combined sale of
over 20.1 million vehicles in FY20. Two-wheeler sales stood at 995,097 units, while passenger
vehicle sales stood at 261,633 units in April 2021.
Overall, automobile export reached 4.77 million vehicles in FY20, growing at a CAGR of 6.94%
during FY16-FY20. Two wheelers made up 73.9% of the vehicles exported, followed by
passenger vehicles at 14.2%, three wheelers at 10.5% and commercial vehicles at 1.3%.
EV sales, excluding E-rickshaws, in India witnessed a growth of 20% and reached 1.56 lakh
units in FY20 driven by two wheelers. According to NITI Aayog and Rocky Mountain Institute
(RMI) India's EV finance industry is likely to reach Rs. 3.7 lakh crore (US$ 50 billion) in 2030. A
report by India Energy Storage Alliance estimated that EV market in India is likely to increase
at a CAGR of 36% until 2026. In addition, projection for EV battery market is forecast to expand
at a CAGR of 30% during the same period.

● Premium motorbike sales in India recorded seven-fold jump in domestic sales,

reaching 13,982 units during April-September 2019. The luxury car market is expected

to register sales of 28,000-33,000 units in 2021, up from 20,000-21,000 units sold in

2020. The entry of new manufacturers and new launches is likely to propel this market

in 2021.

Investments
In order to keep up with the growing demand, several auto makers have started investing
heavily in various segments of the industry during the last few months. The industry has
attracted Foreign Direct Investment (FDI) worth US$ 25.85 billion between April 2000 and
March 2020, according to the data released by Department for Promotion of Industry and
Internal Trade (DPIIT).
Some of the recent/planned investments and developments in the automobile sector in India
are as follows:
● In FY21, passenger vehicles sales reached 27.11 lakhs units, two-wheelers reached 151.19

lakhs units, commercial vehicles sales reached 5.69 lakhs units and for three-wheelers

it was 2.16 lakhs units.

● In 2019-20, the total passenger vehicles sales reached ~2.8 million, while ~2.7 million

units were sold in FY21.

● In February 2021, the Delhi government started the process to set up 100 vehicle battery

charging points across the state to push adoption of electric vehicles.

● In January 2021, Fiat Chrysler Automobiles (FCA) announced an investment of US$ 250

million to expand its local product line-up in India.

● A cumulative investment of ~Rs. 12.5 trillion (US$180 billion) in vehicle production and

charging infrastructure would be required until 2030 to meet India’s electric vehicle

(EV) ambitions.

● In January 2021, Lamborghini announced it is aiming to achieve sales in India higher

than the 2019-levels, after recovering from pandemic-induced disruptions.

● In January 2021, Tesla, the electric car maker, set up a R&D centre in Bengaluru and

registered its subsidiary as Tesla India Motors and Energy Private Limited.

● In November 2020, Mercedes Benz partnered with the State Bank of India to provide

attractive interest rates, while expanding customer base by reaching out to potential

HNI customers of the bank.

● Hyundai Motor India invested ~Rs. 3,500 crore (US$ 500 million) in FY20, with an eye

to gain the market share. This investment is a part of Rs. 7,000 crore (US$ 993 million)

commitment made by the company to the Tamil Nadu government in 2019.

● In October 2020, Kinetic Green, an electric vehicles manufacturer, announced plan to

set up a manufacturing facility for electric golf carts besides a battery swapping unit in

Andhra Pradesh. The two projects involving setting up a manufacturing facility for

electric golf carts and a battery swapping unit will entail an investment of Rs. 1,750

crore (US$ 236.27 million).

● In October 2020, Japan Bank for International Cooperation (JBIC) agreed to provide US$

1 billion (Rs. 7,400 crore) to SBI (State Bank of India) for funding the manufacturing

and sales business of suppliers and dealers of Japanese automobile manufacturers and

providing auto loans for the purchase of Japanese automobiles in India.

 ● In October 2020, MG Motors announced its interest in investing Rs. 1,000 crore (US$

135.3 million) to launch new models and expand operations in spite of the anti-China

sentiments.

● In October 2020, Ultraviolette Automotive, a manufacturer of electric motorcycle in

India, raised a disclosed amount in a series B investment from GoFrugal Technologies,

a software company.

● In September 2020, Toyota Kirloskar Motors announced investments of more than Rs

2,000 crore (US$ 272.81 million) in India directed towards electric components and

technology for domestic customers and exports.

● During early September 2020, Mahindra & Mahindra singed a MoU with Israel-based

REE Automotive to collaborate and develop commercial electric vehicles.

● In April 2020, TVS Motor Company bought UK’s iconic sporting motorcycle brand,

Norton, for a sum of about Rs. 153 crore (US$ 21.89 million), making its entry into the

top end (above 850cc) segment of the superbike market.

● In March 2020, Lithium Urban Technologies partnered with renewable energy

solutions provider, Fourth Partner Energy, to build charging infrastructure across the

country.

● In January 2020, Tata AutoComp Systems, the auto-components arm of Tata Group

entered a joint venture with Beijing-based Prestolite Electric to enter the electric

vehicle (EV) components market.

Achievements

● Under NATRiP, following testing and research centres have been established in the

country since 2015.

● International Centre for Automotive Technology (ICAT), Manesar

● National Institute for AutFollowing are the achievements of the Indian

automotive sector:

● In H12019, automobile manufacturers invested US$ 501 million in India’s auto-tech

start-ups according to Venture intelligence.

● Investment flow into EV start-ups in 2019 (till end of November) increased nearly 170%

to reach US$ 397 million.

 ● On 29th July 2019, Inter-ministerial panel sanctioned 5,645 electric buses for 65 cities.

● NATRiP’s proposal for “Grant-In-Aid for test facility infrastructure for EV

performance Certification from NATRIP Implementation Society” under the FAME

Scheme was approved by Project Implementation and Sanctioning Committee (PISC)

on 3rd January 2019.

● omotive Inspection, Maintenance & Training (NIAIMT), Silchar

● National Automotive Testing Tracks (NATRAX), Indore

● Automotive Research Association of India (ARAI), Pune

● Global Automotive Research Centre (GARC), Chennai

● SAMARTH Udyog - Industry 4.0 centres: ‘Demo cum experience’ centres are being set

up in the country for promoting smart and advanced manufacturing helping SMEs to

implement Industry 4.0 (automation and data exchange in manufacturing technology).

Road Ahead
The automobile industry is supported by various factors such as availability of skilled labour at
low cost, robust R&D centres, and low-cost steel production. The industry also provides great
opportunities for investment and direct and indirect employment to skilled and unskilled
labour.
Indian automotive industry (including component manufacturing) is expected to reach Rs.
16.16-18.18 trillion (US$ 251.4-282.8 billion) by 2026.
The Indian auto industry is expected to record strong growth in 2021-22, post recovering from
effects of COVID-19 pandemic. Electric vehicles, especially two-wheelers, are likely to witness
positive sales in 2021-22.
A study by CEEW Centre for Energy Finance recognised US$ 206 billion opportunity for electric
vehicles in India by 2030.
References: International Organization of Motor Vehicle Manufacturers, Media Reports,
Press Releases, Department for Promotion of Industry and Internal Trade (DPIIT),
Automotive Component Manufacturers Association of India (ACMA), Society of Indian
Automobile Manufacturers (SIAM), Union Budget 2021-22
Marketing Strategies of Automobile
Companies in India:-

“Marketing is the marketing logic by which the business

units expects to achieve it marketing objectives.”

-By Phillip Koetler

“Choosing market targets and a strong market positions base

on differentiating capabilities to create a robust and

sustainable value proposition to customer and networks of

critical relationship”

-By Piercy

1. TATA

Tata Motors is India’s largest and the only original equipment manufacturer (OEM) offering
extensive range of integrated, smart and e-mobility solutions. It was founded in the year 1868
by Jamsetji Tata. Tata believe in “Connecting aspirations”, by offering innovative mobility
solutions that are in line with customers’ aspirations. Its diverse portfolio includes an
extensive range of cars, sports utility vehicles, trucks, buses and defence vehicles . They
have the strength of 81,090 employees. Tata also had a sub-brand TAMO which is an
incubating centre of innovation that will spark new mobility solution through new
technologies, business models and partnerships.

Now let’s look into the marketing strategy of Tata (According to 2017-18 annual report)

Strategy 1 – Focus on New Product

Objectives
Tata motors

To develop a range of exciting and contemporary products and services across the Public
Vehicle (PV) and Commercial Vehicle (CV) segments to match and surpass customer
expectations.

Jaguar Land Rover

Producing customer lovable and lifelong giving experiences, embracing technology on ACES
while delivering product of highest quality, move towards Modular Longitudinal Architecture
(MLA).

Looking Ahead

Tata Motors Limited

● To create number of new variants to increase the range of choices for customer.
● More importance is given on the customer’s safety and passengers comfort by giving
value added features to the product.

Jaguar land Rover

● It has started the migration to be a leader in electrification, it also have a line up of

special vehicles created in Special Vehicle Operations (SPO).
● JLR is planning to offer that its entire vehicle will have an electric option by 2020 these
vehicles will be mid hybrid and Plug in Hybrid Electric Vehicle (PHEV).

Strategy 2 – Expanding International Business

Objective
The main focus of this strategy is to identify the international market on the basis of
Regulatory Landscape, Geopolitical Landscape, And Competitive Landscape.
Looking ahead

TML

As company’s international business is growing faster so, TML has decided to look into the
four key features for developing suitable products

● Driving optimal sourcing.

● Manufacturing.
● Enhancing overall customer experience.
● Establishing the TML brand across the geographies.

JLR

Its working on its manufacturing unit in China and its approach is to support key market while
accessing a lower cost base.

Strategy 3 – Mitigating Cyclicality

Objective
Company is planning to strengthen its operations while gaining market share and offering a
wide range of product and also planning to strengthen its business operations like financing of
vehicles and spare part sales and maintenance contracts among others.

Looking Ahead-

TML

It is working towards growing business in the field of fully built vehicles like-trailers and
tippers, regular focus on cost and production management and pursuing opportunities in the
electronic vehicles.

JLR

It is focusing on the driving cost efficiency and operating leverages across the business. It is
also focusing on the realistic planning of volumes in recognition of the present market
realities.

Strategy 4 – Customer Focus

Objective
TML is focusing on giving a good and hassle free sales and service experience to its customer.
JLR’s philosophy is “Customer First”, which helps it in doing the things with more ease.

Looking Ahead

TML

So far TML has expanded and strengthened its extensive network of service centres, increased
its distributor in rural areas.

Now, it’s planning to increase the number of customer touch points, reinforce customer
engagement activities such as Key Account Management and customer and dealer meet.

JLR

JLR strives for continuous improvements in customer services. Through the “Customer First”
transformation plan, the company focuses on five strategic objectives:

● Exceeding Quality
● Expectations
● Delivering on time
● Creating value for the company

Creating value for the customers and enabling and using people efficiently

JLR has a network of 1,571 retailers in 129 countries and it has further plan to expand the
network by 1800 till FY23.

Strategy 5 – Organisational Efficiency and Cost Management Objective

To critically review and right –size the cost structure to deliver best-in-class products at
competitive prices and maximise the returns on a continual basis.

Looking Ahead

TML

It is now focusing on reducing input cost and doing initiatives such as margin improvements it
will be continued in FY19 to strengthen overall financials.

JLR

It has been making tough and prudent choices on its investment plan to meet affordability
criteria while remaining competitive and innovative.
Observation

According to the above strategy of TATA it is concluded the following points.

● It is focusing on the advancement and innovation in its vehicles whether it is Public

vehicle or Commercial vehicle.
● It is reaching across the globe with the aim of

2. MAHINDRA AND MAHINDRA

Mahindra and Mahindra is the world’s largest tractor brand by volume, India’s largest utility
vehicle manufacturer. It was established in 1945 by J.C. Mahindra, K.C. Mahindra and Malik
Ghulam Muhmmad. Products it used to manufacture are Automobiles, Commercial Vehicles,
and Two wheelers. They are employing more than 2, 40,000 people, and generating revenue of
Rs 93,896 Cr (US$13 billion) (2018). They are empowering enterprises everywhere like in Rural
Prosperity and IT, from Financial Services to Clean Energy and Business Productivity. Its
headquarter is in Mumbai, India.

Its Marketing strategy:

At Mahindra they are well aware of the reality looking at the future, the right product at the
right cost, sold through an efficient distribution network will be essential but not sufficient
much more will be required to win in the market place. So they have already started to shift
from just offering products to providing solutions, and delivering experiences to their
customers, with the product itself becoming an enabler.

AUTOMATIVE SECTOR

Their main focus is to strengthen the product portfolio with new launches and expansion in
the global market.

Passenger Vehicles
In these vehicles they are going to expand the sales and service network and developing
gasoline engines option for their passenger vehicles by [Link] new products also to
offer customer a complete range of UV’s.

Small Commercial Vehicles

In these vehicles company is making market dominance through attractive customer value
proposition. They are launching smart, connected and electric vehicles while focusing on the
technology leadership.

Medium and Heavy Commercial Vehicles

They are focusing on the services and market expansion of these vehicles.

They are also going to launch the Intermediate Commercial Vehicles (ICV) and Light Weight
Commercial Vehicles (LCV) to strengthen the commercial vehicle portfolio.

Electric Vehicle

They are developing the Electronic Vehicles (EV) ecosystem through partnerships with the
government, shared mobility players and other key stakeholders. They are providing a
diversified product portfolio from Mass Mobility to Objects of desire- # wheelers, cars,
commercial vehicles, buses, high end luxury cars. They are also maintaining a pioneering and
leadership position by investments in technology with global partnership.

FARM EQUIPMENT SECTOR

In this sector the main focus of the company is on delivering “Farm prosperity” to farmers.
They frame the strategy in such a way in which they intent to catalyze the next revolution in
farming enabled by new technology for this purpose company is doing “Crop Specific
mechanization solutions”. They have also made strategic acquisition and built a farm
machinery portfolio for global markets with the objective of being a global farm machinery
player.

Tractor

For strengthening the Domestic market they have a 3-brand strategy which includes

● Mahindra – Pioneering Technology

● Swaraj – Reliable , Powerful, Authentic
● Trakstar – Affordable Mechanisation
For strengthening the global market in tractors they are owing and acquiring the brands which
are established in foreign.

Farm Machinery

They are developing a strong portfolio of farm machinery products for both the domestic and
global markets. They are focusing on profitable growth for the Farm Machinery Portfolio.

Maruti Suzuki

Maruti Suzuki was established in 1982 in Gurugram. Their total revenue was 818,082 million
their sale has been increased by 16.33% from the previous year. They started this company
with the partnership of Suzuki motors in Japan, whose expertise could best meet the people’s
needs and aspiration. With the rising income changing lifestyle, and increased exposure to the
external world, customer expectation are also increasing so to meet up this growing need of
customers, the company is involving its offerings. The introduction of exciting product line-
up and sales channels like NEXA and ARENA are such initiatives.

Their Marketing Strategy:-

Amid changing market economics, government regulations and industry dynamics, they are
doing quite well to stand in the market and to crate delightful memories to the customers.
They are gearing up for the future by working on strengthening the quality of business,
introducing appropriate technology, harnessing partnerships and building capabilities.

Quarterly Marketing Strategy

Q1

● Enhancing employability of cth:country's youth – They are setting up automobile

Enhancement Centres across 15 governments run ITIs to train 30,000 youth in
automobile related jobs over 5 years.
 ● Again Marketing With New Dezire: – Authentic sedan styling, plush interiors,
superior comfort and convenience features take India’s best selling sedan to new level.

Q2

● Maruti Suzuki Arena: – the new corporate identity for the retail sales channel to excite,
delights and serves customers by leveraging the power of digital technology.
● True Value revamped: – A complete revamp of the True Value operations to make the
process of buying pre-owned cars even more engaging, seamless and transparent.
● Nexa redefines car services in India: – Customer experience in after-sales service is
taken to the next level with plush workshops, digital ‘health cards’ for cars and
premium lounges.

Q3

● Strengthening road safety: – As part of the company’s focussed efforts to promote

safe driving and road safety, joined hands with government of NCT of Delhi to set up 12
state-of-the-art Automated Driving Test Centres across the city.
● Drives-in-all-new S-cross: – Launched premium urban offering, S-cross in all-new,
bold and assertive form. Gets the acclaimed DDiS200 smart Hybrid Technology.

Q4

● Future Mobility: – The Company is working on a portfolio of xEV technologies to

accelerate electrification of power trains in India. After the successful introduction of
mild hybrid technology in India, the company is now working on a strong hybrid
vehicle based on Suzuki Hybrid System. This system was showcased at Auto Expo 2018.
These vehicles perform various functions such as idle stop, torque assist and
regenerative braking. The company is working with the Government of India, SIAM and
other partners on electric mobility.