Indian Car Market Research Articles

A Research Paper on Digital Marketing Communication and Consumer Buying Decision Process: An Empirical Study in the Indian Passenger Car Market

ABSTRACTThe effect of digital marketing communication on product categories like books, music, fashion accessories, clothing, banking and online gaming etc. has been well researched by the researchers; but automobile industry despite being one of the largest digital spenders has faced dearth of academic studies especially in India. The present study aims to understand the effect of digital marketing communication on consumer buying decision process in Indian passenger car market. Mixed methodology was adopted for the study. Primary data was collected from 784 respondents from ‘Delhi’ using area wise proportionate sampling. One sample Wilocoxon Signed Rank, one sample binomial test and chi-sqaure tests were applied as tests of significance. The study concluded that 75% of the respondents used at least one digital channel of communication while buying a car. ‘Website’ was the most used digital channel of communication while buying a car followed by ‘social networking sites’ and ‘smartphones’. Each and every stage of car buying decision making process right from ‘need recognition’ to ‘post purchase’ was ‘significantly’ affected from digital marketing communication with ‘evaluation’ being the most affected stage. The results of the study confirmed that digital marketing communication is capable of even triggering need recognition in high involvement product category like car. The results also established that consumers feel positive towards digital communication, get affected from other customers' reviews and express their post-purchase feeling feelings over digital platforms. However, the study also confirmed that although customers appreciate the usage of digital channels throughout the decision making journey, still they don't book a car online.

Identifying the Indian Car Buyer Segments Using Digital Channels of Communication : An Application of Cluster Analysis

Digital technologies have redefined the marketing communication parlance with its unique capabilities. Consumers both males and females belonging to various age groups, occupations, income categories having different educational backgrounds are making use of contemporary digital technologies for searching, comparing, evaluating, and buying goods and services across diverse product categories. Digital marketing has affected each and every industry irrespective of its nature, size, type, and category. Hence, the Indian car market is no exception in which the digital 'Midas' touch is affecting both the customers and marketers. The present study dealt with identifying the specific segments of car buyers who use digital channels of communication while buying a car. The study made use of primary data collected from 801 respondents using area wise proportionate cluster sampling technique. Data was analyzed with the help of SPSS 18.0 version and chi-square and cluster analysis were used as tests of significance to validate the results.

Digital Marketing Communication in Indian Car Market:Understanding the Attitudinal Beliefs

Digital technologies have created remarkable effects on communication, promotion, branding and importantly consumer behaviour. Consumers in the marketplace are getting accustomed to myriad digital tools, technologies and channels. Marketers irrespective of size, type and industry are increasing their digital spend as this medium offers more return on investment compared to traditional marketing. In India, digital stats are increasing over the years in terms of internet access, possession of digital devices, subscription of social networking sites and increased time devoted to various digital usages. Marketers are adapting fast to digital format because it is interactive, personalized, relevant, informative and cost effective. FMCG, BFSI and Automobiles have been consistently ranked as the top digital spenders of the country for last five years. Consumers are attracted towards the digital medium because it is attractive, easy to use, engaging and offers customers the relevant content by recognizing them as an individual having unique needs rather than being a faceless member of the masses. The present study is an attempt to understand the attitudinal beliefs of digital marketing communication in Indian car market. The study is based on primary and secondary data. Secondary data were reviewed extensively to understand the characteristics of digital marketing. Primary data are collected from 801 respondents using area wise proportionate sampling from Delhi. Reliability of the scale was checked with the help of Cronbach's Alpha. One sample Wilocoxon Signed Rank Test was applied as test of significance.

The welfare effects of fuel conservation policies in a dual-fuel car market: Evidence from India

We estimate a model of vehicle choice and kilometers driven to analyze the long-run impacts of fuel conservation policies in the Indian car market. We simulate the effects of petrol and diesel fuel taxes and a diesel car tax, taking into account their interactions with the pre-existing petrol fuel tax and car sales taxes. At levels sufficient to reduce total fuel consumption by 7%, the increased diesel and petrol fuel taxes both yield deadweight losses (net of externalities) of about 4 (2010) Rs./L. However, at levels sufficient to reduce total fuel consumption by 2%, the increased petrol fuel tax results in a deadweight loss per liter of fuel conserved that is greater than that caused by the diesel fuel tax. This reflects both the high pre-existing tax on petrol fuel and the high own-price elasticities of fuel demand in India. A tax on diesel cars that results in the same diesel market share as the large diesel fuel tax actually has a negative deadweight loss per liter of fuel conserved. The welfare effects of all three policy instruments are positive, once the external benefits of reducing fuel consumption are added to the excess burden of taxation.

Five Innovation Inspirations from Indian Automobile Market

Five Innovation Inspirations from Indian Automobile Market

Financial Statement Analysis of Ashok Leyland Limited, India

<p><em>The Indian auto industry is one of the largest in the world. The industry accounts for 7.1 per cent of the country's Gross Domestic Product (GDP). As of Financial Year 2014-2015, around 31 per cent of small cars sold globally were manufactured in India. The Two Wheelers segment with 81 per cent market share is the leader of the Indian Automobile market owing to a growing middle class and a young population.</em></p><p><em> </em><em> 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 April-January 2016, exports of Commercial Vehicles registered a growth of 18.36 per cent over April-January 2015. In addition, several initiatives by the Government of India and the major automobile players in the Indian market were expected to make India a leader in the Two Wheeler (2W) and Four Wheeler (4W) market in the world by 2020.</em></p><p><em> </em><em>India’s second largest commercial vehicle maker Ashok Leyland has shown a declining trend in the total sales during August 2016 by 6 per cent due to lower growth in Medium and Heavy Vehicle segment. The company sold ten thousand eight hundred and ninety-seven (10,897) vehicles in the month gone by, compared with 11,544 units sold in the same month last year. Medium & Heavy commercial vehicle sales during the month declined 8 percent to 8201 units while light commercial vehicle sales grew by 2 percent to 2696 units on yearly basis. The contribution of Ashok Leyland in the growth of the automobile industry is very high. Hence an attempt is made to analyse the financial statement of <strong>Ashok Leyland.</strong></em></p><em><strong></strong></em>

Entry Marketing Strategy of SAAB Car Manufacturer into the Indian Market

As domestic markets have become saturated, multinational corporations (MNC) are turning their attention to international markets to increase their market share, revenues and their profits. MNCs activities have become increasingly global in scope, whereby going abroad is crucial if they are to succeed. This process is a challenge because the MNCs needs to overcome the barriers which hinder their entry into the targeted markets. They have to map out an entry strategy and choose the right entry mode. The focus of this paper is on how General Motors (GM) as a MNC can launch the Swedish SAAB brand of cars into India. Our analyses, which cover the period up to 2010, suggest that the best way to penetrate the Indian car market was by choosing the mix between exporting and local assembly as their entry mode. This helped GM to successfully penetrate its products, control investments and increase its competitive strength against domestic and foreign firms within the Indian market. Although recently the SAAB is in difficulty and almost bankrupt, the importance of this paper rests on the lesson how car manufacturers can enter foreign markets, especially in India.

Building Brands a Study with Special Reference to Small Car Market in India

The purpose of this research article is to explore and examine the key determinants Brand Building Strategies practiced by the automobile manufacturers in the Indian Small Car Market. Taking the literature support from the past Brand Management researchers the survey is designed to study the Brand building Dimensions such as,Brand Awareness/Brand Knowledge, Brand Image, Brand Identity, Brand Positioning, Brand Trust, Brand Associations, Brand Loyalty, and Perceived quality,across the small car manufacturers in the Indian Automobile market. The survey is limited to five major cities of Karnataka state (Mysore, Bangalore, Mangalore, Davanagere and Gulbarga) focussed on the automobile brands such as Maruti-Suzuki, Tata motors, Mahindra and Mahindra, Hyundai and Toyota. The Sample survey is designed with the help of multi stage sampling method & the sample size is 1000 small car users across the state. SPSS is used to develop the associated mean and standard deviation measures to analyse the formations of Strong/Weak brands. The research article provides substantial evidence to claim that the Indian automobile Market is completely saturated with existence of highly saturated Red Oceans (Where Competition snubs Innovation) and the article may initiate the automobile manufacturers in the Indian small car market to create highly evolved/Innovative Blue oceans.

Content Analysis of Print Advertisements of Sports Utility Vehicles (Suvs) In India

This paper attempts to do a content analysis of print advertisements of the top five1 Sports Utility Vehicle (SUV) brands in today’s highly competitive Indian automobile market. Specifically, Resnik and Stern’s (1977) classification system has been used to infer a pattern of advertising practices followed by the SUV advertisers and to analyse the informational cues and creative strategies used by these advertisers. The analysis suggested the presence of informational cues in all the advertisements analysed. Quality, shape and performance emerged as the most extensively used informational cuesfor the selected SUV advertisements as compared to others. The analysis of creative strategies of the selected SUV advertisements revealed that information; reasoning and psychological appeals are used more over any other creative strategies by advertisers.This result is unlike the common notion that the target market of SUVs is brand-conscious.The results complement the fact that, in India in general, the SUVs are preferred for safety, as four of the five brands have used safety as an informational cue in their advertisement.

Hyundai Motors India Limited: positioning towards market leadership

Subject area: Marketing Management, Product Management, Marketing Strategy. Study level/applicability Bachelor of Business Studies, MBA, Executive MBA. Case overview The case throws light on the intensely competitive Indian passenger car market and its unique challenges faced by Hyundai Motors India Limited (HMIL). It tries to capture the evolution of this dynamic industry, which is characterized by regular product launches and re-positioning efforts. The students are expected to assess the performance of HMIL and the success of its positioning efforts through multiple quantitative and qualitative data points given in the case. The students need to come up with recommendations whether, amidst intense competition, Government regulations and changing consumer expectations, HMIL should launch new products in its portfolio? If, yes, in which segments? And what should be the guiding philosophy behind such product launches? Expected learning outcomes The case is expected to guide students: 1. in comprehending the various macro-environmental factors that has made India an attractive passenger car market to invest and operate in, to virtually all multinational players across all segments; 2. in analyzing how the passenger car market is segmented in India; 3. in assessing the product-driven segment-wise performance by HMIL specifically and organizations in general and what are its implications on decision-making; this is indicative of the brand portfolio management based on BCG Brand/Product Portfolio Growth Share Matrix; 4. in assessing the impact of re-positioning on the firms performance judged before and after the re-positioning efforts by the firm; 5. in analyzing the market potential of SUVs and MUVs in India and whether HMIL should launch new products/brands for these segments; and 6. in deliberating on the guiding philosophy in new product launches around the concept of “Consumer Perceived Value”. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes. Subject code CSS 8: Marketing.

The rise and fall of the ‘people's car’: middle-class aspirations, status and mobile symbolism in ‘New India’

When the Indian car manufacturer Tata Motors launched its new ‘people's car’ in 2008 it was widely predicted to revolutionise automobility in India. Yet seven years after the launch, the car has barely made an impact on the Indian car market and is widely regarded as a failure. This article offers a detailed study of the rise and fall of India's ‘people's car’. Based on a mapping of the changing popular representations and symbolic imaginaries that attach to the car as a means to mobility and an object of identity and social status, we suggest that the car failed neither because it was mediocre, nor because it remained economically out of reach for most Indians. Rather, we argue that its insertion into the lower ranks of a powerful status hierarchy of identity-defining objects precluded it from adequately tapping into new and hegemonic forms of consumer aspiration in ‘New India’.

Digital Marketing in Indian Car Market: An Application of Theory of Planned Behavior

The paper deals with identifying the variables related to digital marketing if any, which could be leveraged by the car marketers to effectively market the product in Indian Market. Also the paper aims to study the most preferred digital medium used for information by the customers while buying a car. To achieve the objectives, primary data was collected with the help of structured questionnaire. Theory of Planned Behavior model was taken as base to analyze the factors that be leveraged by the marketers. Data was analyzed with the help of and multiple regression statistical technique. Results of the study revealed that digital attitude is the variable that can be leveraged by the marketer that could be leveraged by the marketers to effectively market the product and website is the most preferred digital medium for getting information about car.

Digital Marketing and Consumer Behaviour: An Empirical Study in Indian Car Market with Special Reference to Delhi and NCR

Indian economy's digital statistics are showing impressive trends from past few years. We have approximately 243 million internet users in our country. There's enough development in devices, internet networks, operating systems, processors and operator strategies to suggest that India is on track to resolving the challenge of affordable, easy and faster internet access. The average price of smart phones that deliver much richer content, including video, is falling rapidly as the customer base is growing. This digital revolution has not left the Indian car market untouched and it is affecting the consumer behaviour to a significant extent from awareness, evaluation, final buying to the post purchase-stage. This paper aims to find the most preferred digital channel to target the customers while they buy a car. Paper also uncovers the demographic profile, background information and preferences of the people who use digital channels for buying or ordering online. Along with these objectives the paper attempts to understand the impact of digital marketing practices followed by car marketers on Indian consumers living in Delhi and NCR. To achieve these pre-decided objectives, primary data was collected with the help of structured questionnaires. The questionnaire was administered to the car owners residing in Delhi and NCR area. Data was analyzed with the help of statistical techniques like chi-square and t-test. The findings are presented in a summarized manner for understanding digital consumer behaviour.

Smart Car Design using RFID

Background/Objective: The Indian automobile market has seen a drastic change in its trends over the past decade with several road commuters opting for mid-range sedans and SUVs, owing to the safety features of cars that two-wheelers can never provide. At times, the driver is not fully aware of his surroundings, leading to inconveniences and compromises on safety. Methods/Statistical Analysis: This problem has several facets to it. Blocked vision due to a large vehicle in front is a major hassle that persists especially during heavy traffic, in turnings and in narrow lanes. Bright headlights at night cause discomfort and troubled vision to drivers. It is the worst nightmare of a “fuel-conscious” driver to get caught in a traffic jam when he could have chosen a different lane and or to be forced to return back due to blocked roads. The most frustrating experience for any driver would be to get stuck under the sweltering sun in a road either due to a flat tire or an empty fuel tank. Result/Findings: These issues could be solved if the driver is given constant inputs about vehicles near him and the fuel level, battery conditions and tire pressure status. Providing information from other vehicles could be facilitated through vehicle-to-vehicle communication. Conclusion/Application: These applications can be incorporated into the future self-driving cars. This application also increases the safety of the drivers thereby decreasing the road accidents.

Single-beam thermal lens measurement of thermal diffusivity of engine coolants

Automobile engine coolant liquids are commonly used for efficient heat transfer from the engine to the surroundings. In this work we have investigated the thermal diffusivity of various commonly available engine coolants in Indian automobile market. We have used single beam laser induced thermal lens technique for the measurements. Engine coolants are generally available in concentrated solution form and are recommended to use at specified dilution. We have investigated the samples in the entire recommended concentration range for the use in radiators. While some of the brands show an enhanced thermal diffusivity compared to pure water, others show slight decrease in thermal diffusivity.

The Welfare Effects of Fuel Conservation Policies in the Indian Car Market

The Indian car market is the fastest growing in the world. With increased mobility has come increased foreign oil dependence, fuel consumption, and associated externalities. In response to this, the Indian government is contemplating fuel economy standards, but at the same time continues to subsidize diesel fuel. The result is a diesel discount of 30%, relative to petrol, and an increasing market share of diesel cars. We use a model of vehicle choice and kilometers driven to compare the welfare impacts of two possible fuel conservation policies: a tax on diesel fuel that would equalize diesel and petrol prices, and a diesel car tax. The latter is an alternative to taxing diesel fuel recently proposed by the Indian government. We find in 2006 that a diesel fuel tax that equalizes petrol and diesel prices reduces total fuel consumption by about 9 percent, at a deadweight loss of about 8 Rs. per liter of fuel saved. The tax reduces the market share of new diesel vehicles by 4.6 percentage points. A diesel car tax of 25% would achieve the same reduction in market share; however, it would reduce total fuel consumption by only 1.5 percent, at a deadweight loss of about 30 Rs. per liter saved. A smaller diesel fuel tax, sufficient to yield the same total fuel conservation as the diesel car tax, actually results in a net welfare gain: The increase in petrol fuel revenues as buyers switch from diesel to petrol cars exceeds the deadweight loss of the diesel tax.

Countering Disruptive Innovation Strategy in Indian Passenger Car Industry: A Case of Maruti Suzuki India Limited

Origin of Indian passenger car industry dates back to the year 1928. First 55 years saw negligible to slow growth in this industry till Maruti Udyog Ltd, later named as Maruti Suzuki India Ltd (MSIL), was incorporated in 1983. The MSIL, through its wide range of cars across different segments spread over 15 brands and over 150 variants, became the leader of the Indian car market during the next two-and-a-half decades. Suddenly, the MSIL showed a significant fall from over half of its share (53.13 per cent) of Indian car market to a market share of 44.9 per cent in the fiscal year 2010–2011, despite robust growth of 21.6 per cent of MSIL in the fiscal year 2010–2011 and a faster industry growth at 34.3 per cent during this fiscal. This declining market share of the leader of Indian car market has been investigated by the authors using industry analysis and reports, Society of Indian Automobile Manufacturers’ reports and publications, media coverage and other secondary sources available in print and web media, and MSIL’s own source for the last five years from 2006–2007 to 2010–2011. The article thus tries to bring out the strategic perspectives of MSIL that helped it reach the top of Indian car market segment and does the environmental scanning to identify factors that dipped it to low. It is found that in the last three years has come about what has been popularized as the ‘disruptive innovation strategy’ in the passenger car industry of India occupying the centre of the wheel. With increasing loss in its market prominence and market share, how does MSILpropose to meet the challenges of survival and sustainability on product price, customization and customer service is the issue of this case.

Influence of Pricing on Sales: An Insight into Indian Car Market with Reference to Chevrolet, Ford, Hyundai and Maruti Suzuki

The main purpose of this paper is to discern the dynamic causal relationship between car sales and prices of cars in the context of the Indian car market. The methodology is based on a comprehensive literature review of the major contribution made in the field of managerial economics and management science to the study of pricing strategies and practices, in particular the pricing of cars, in order to identify the various strengths and weakness of various thoughts of pricing strategy.

Impact of Digital Marketing Practices on Consumer Behavior in Indian Car Market

Impact of Digital Marketing Practices on Consumer Behavior in Indian Car Market

Automobile Stocks Dancing to the Tune of Dividend News: A Decadal Study

In 1980’s Indian Government had started promoting Automobile industry allowing foreign direct investment and other such liberalized norms for its growth and prosperity. Suzuki and Toyota of Japan and Hyundai of South Korea were allowed to invest in Indian Automobile market leading to its development. By the end of 20th century, there were 12 large automobile companies set up in India which were the result global companies’ investment. This sector has gradually evolved as a significant contributor in economic development of the nation.