Top Story


Home >> Marketing >> Article

Carmakers gun for mass market

Font Size   16
Carmakers gun for mass market

Global automobile majors General Motors, Toyota and Ford are now eyeing the big-volume compact segment for volumes in the one-million-unit plus Indian passenger car market.

All three entered the market with C segment (Rs 500,000-Rs 700,000) offerings about six to eight years back, but are now looking at volume-generating models in the compact segment, despite the formidable presence of Maruti Udyog, Tata Motors and Hyundai Motor India in this segment.

General Motors India (GMI) is planning two launches in the B segment (Rs 250,000-Rs 500,000) over the next one year.

In fact, GMI had been eyeing the facilities of the ailing Daewoo at Surajpur in Uttar Pradesh to produce its Spark (earlier seen on Indian roads as Matiz) in the country. GMI wants a 10 per cent share in the overall market in the next two to three years, up from less than two per cent.

Toyota Kirloskar, too, is targeting to double its share to 10 per cent of the two-million unit market by 2010. It is also understood that Toyota may enter the volume segment in India through its small-car subsidiary Daihatsu.

Ford, say company executives, will continue to pin its strategy on the mid-size segment, expecting volumes to grow manifold in the coming year.

The three entered the Indian market with premium offerings that fell in the C-segment (loosely defined as the Rs 5-lakh-plus segment) - Ford Escort, Toyota Corolla (though the imported D-segment Camry made the debut) and GM's Opel Astra.

All three claim this to be their well thought-out strategy -- establish the brand name first by offering mid-size or premium cars and later gun for the volumes with compact or some volume-generating models. Today, the compact/mini segment accounts for over 60 per cent of the total market in India, and is showing no signs of weaning.

Analysts say this is a sound game-plan that will stand all three in good stead. Says a Delhi-based analyst, “Compact car players today like Maruti, Hyundai and Tata may face some hurdles in selling the C or D segment offerings as consumers perceive these as small car companies. But for the three global biggies, it will be a much easier task to sell their compact offerings that are in the pipeline.”


Vijay Mansukhani, speaks to exchange4media about the resurgence of Onida, the scope of growth of consumer electronics market in India and the reasons why Indian consumer electronics brands don’t compete on a global scale

Projjol Banerjea opens up about hiring Anne Macdonald and GroupM's Rob Norman, and the brand's new identity

Meera Iyer tells exchange4media that in FY 2016/17, bigbasket clocked a revenue of Rs 1,400 crore. The online supermarket currently stands at 70,000 orders a day, with operations in 25 cities.

CMO, Kashyap Vadapalli on the start-up’s marketing play, why it has decided to stay away from IPL and response to its furniture rental apps

Mumbai was chosen in keeping with the company's focus on featuring their proprietary technologies over undiscovered markets like South Asia

The campaign, featuring brand ambassador Farhan Akhtar, exhorts consumers to showcase their achievements through the walls of their homes.

We list a few important stories that you may have missed in the week gone by