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CSAE STUDY : MARUTI (I) LTD.
A SUCCESS STORY IN INDIAN CAR MARKET
By- V. K. S. Bankoti
Industry Overview
The de-licensing of auto industry in 1993, however, opened the gates to international automakers into the country with an idea to tap the large population base in India. Car sales managed to cross the 500,000 mark in 1999.
Year 2001 was a spate of new vehicle launches as well as controversies, financial troubles, mergers and shutdowns & it's a quite ever increasing competitive market.
For the first time, in the financial year end in 2005, the total sales of passenger vehicles - cars, utility vehicles and multi-utility vehicles - crossed the one-million mark to touch 1.06 million, with exports of 166,000 vehicles. Study says that by 2010 India will take over Germany in sales volumes and Japan by 2012.
Geographical overview
An understanding of the zone-wise sales of passenger cars in the country shows the northern states at the top with over 43.9 percent of the country's total car sales in 1998, followed by western states with a share of about 25.3 percent and southern group with nearly 19.5 percent. The eastern states have less than 11.3 percent total car sales in the country.
The car penetration in India is concentrated in a few developed states. The eight states namely Delhi (which accounts 38% of sales in the Northern region and 16.7 percent of nationwide sales), Maharashtra (which accounts 10.3 percent of nationwide sales), Tamilnadu, West Bengal, Gujarat, Kerala, Karnataka and Uttar-Pradesh possessed major portion of cars sales in the country.
Marketing and Advertising: What is going on?
Passenger cars may not remain an ...