Subject category:
Marketing
Published by:
Amity Research Centers
Length: 20 pages
Data source: Published sources
Abstract
The evolution and growth of the Indian passenger car market was marked in distinct phases. The first phase ended with the launch of the small car, the Maruti 800 in 1983 and the second phase began in the early to mid 1990’s with the de-licensing of the industry and the entry of global players. Since its inception, Maruti led the market and fulfilled the needs of the aspirant Indian consumers. However, all this had changed with the entry of global auto majors, especially the Koreans. Cars, on the other hand, evolved from being a luxury and a status symbol to a vehicle for mobility. The ownership pattern manifested the changing trends of lifestyle and consumption. Besides, the lucrative Indian car market was conspicuous with offerings to suit every pocket, making the market segmentation more complex. With over 100 car models, the Indian consumers were spoilt for choice. With rising economic mobility, the Indian car buyers were upgrading their purchases seeking better features or deferring their purchases due to rising interest rates and fuel prices. Amidst such a scenario, the unassailable market leader Maruti which was steadily losing its leadership position in the small car segment decided to replace its ‘bread and butter’ model the Maruti 800 with the new Alto 800 model priced lower than its predecessor to revive its fortunes. It remained to be seen whether the relaunched Alto 800 would be able to spin the fortunes for the car maker or not.
About
Abstract
The evolution and growth of the Indian passenger car market was marked in distinct phases. The first phase ended with the launch of the small car, the Maruti 800 in 1983 and the second phase began in the early to mid 1990’s with the de-licensing of the industry and the entry of global players. Since its inception, Maruti led the market and fulfilled the needs of the aspirant Indian consumers. However, all this had changed with the entry of global auto majors, especially the Koreans. Cars, on the other hand, evolved from being a luxury and a status symbol to a vehicle for mobility. The ownership pattern manifested the changing trends of lifestyle and consumption. Besides, the lucrative Indian car market was conspicuous with offerings to suit every pocket, making the market segmentation more complex. With over 100 car models, the Indian consumers were spoilt for choice. With rising economic mobility, the Indian car buyers were upgrading their purchases seeking better features or deferring their purchases due to rising interest rates and fuel prices. Amidst such a scenario, the unassailable market leader Maruti which was steadily losing its leadership position in the small car segment decided to replace its ‘bread and butter’ model the Maruti 800 with the new Alto 800 model priced lower than its predecessor to revive its fortunes. It remained to be seen whether the relaunched Alto 800 would be able to spin the fortunes for the car maker or not.