Marketing Environment of India Automotive Industry

SUBMITTTED BY ABHILASH VISWANATHAN REG NO: 09095101 S2 MBA ICM POOJAPPURA SUBMITTED TO: SIVAPRAKASH CS | MARKETING ENVIRONMENT OF INDIAN AUTOMOBILE labor | | | | | | MARKETING ENVIRONMENT OF INDIAN AUTOMOBILE INDUSTRY Introduction Forty years since Indias independence from the British in 1947, the Indian car food market was dominated by two localized versions of ancient European designs - the Morris Oxford, known as the Ambassador, and a old Fiat. This lack of growth activity in the Indian market was mainly cod to the Indian governments complex regulatory system that efficaciously banned foreign-owned operations. Within this system (referred to informally as the endorse raj), any Indian firm that wanted to import engineering or returns needed a license/permit from the government. The encumbrance of getting these licenses stifled automobile and component imports, creating a mortified volume high cost car industry that was inefficient, unprofitable, and technologically obsolete. The two dominant products Ambassador and Fiat, although customized to the poor road conditions in India, were based on a stale design model (with outdated features), and were also go off inefficient.

In the early 1980s, the Indian government made limited attempts at reforming the automotive industry, and entered into a joint venture with Suzuki of Japan. The joint-venture, called Maruti Udyog Limited, launched a small but fuel efficient model (called Maruti 100). Priced at about $5,500, the product became an instant hit. The joint venture now produces three small-car models, a van, and a utility vehicle at a straddle of more than 250,000 a year. Despite being a new-made entrant, Marutis vehicles are estimated to account for as much as 70 per cent of Indias car population. In 1991, a newly elected Indian government took over and faced with a balance-of-payments crisis initiated a series of economic liberalization measures designed to open the Indian economy to... If you want to get a full essay, revise it on our website: Ordercustompaper.com

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