pricing-automobile sector

8/14/2019 Pricing-Automobile Sector

1/21

Alyn VargheseBhumika VagrechaDharmesh Mehta

Sainatth WaghSneha SamuelVrishali Sinha

Pricing-Automobile Sector


2/21

A u to m ob ile secto r

It is one of the core sectors of Indian economy.

the advent of new business and manufacturingpractices in the light of liberalization andglobalization.

Competition has changed the sector.

Entry of new foriegn players.

Indian Automobile sector is growing at 18% perannum.


3/21

C o n td

Country's passenger car sales grew 22%, thehighest growth rate in current financialyear.

Passenger car and motorcycle segment isset to grow by 8-9%.

The production of passenger cars in India isexpected to grow to over 14 million units in2014-2015

The sales are expected to increase at a rateof 10% per annum.

In February 2009, monthly sales of passenger cars in India exceeded 100,000units.


4/21

-S e g m e n ta tio n A u to m o b ilesector


5/21

M a rke t S h a re


6/21

:our Wheeler Segments


7/21

:ey Players otable Indian automobile

manufacturers

Ashok LeylandMahindra: Major, Xylo, Scorpio.Maruti Suzuki: 800, Alto, WagonR, Estilo, AStar,

Ritz, Swift, Swift DZire, SX4, Omni, Versa,Gypsy

Tata Motors: Nano, Indica, Indigo, Sumo, Safari, TL.

Electric car companies in IndiaAjanta GroupMahindraHero ElectricREVA


8/21

ocally manufactured Automobiles of-ult i national Companies

Audi: A4, A6.BMW: 3 Series, 5 Series.Chevrolet: Spark, Aveo U-VA, Aveo, Optra, Cruze, Tavera.

Fiat: Palio, Grande Punto, Linea.

Ford: Ikon, Fiesta, Fusion, EndeavourHonda: Jazz, City, Civic, Accord.Hyundai: Santro, i10, Getz, i20, Accent, Verna, Sonata.Mercedes-Benz: C-Class, E-ClassMitsubishi: Lancer, Lancer Cedia.Renault: Logankoda: Fabia, Octavia, Laura.

Toyota: Corolla, Innova, FortunerVolkswagen: Jetta, Passat.


9/21


10/21

Discriminatory Pricing

ame car sold at different prices based on their.e og ra ph ic al l oc at io ns

. .: , .E g Cars in Delhi Haryana and Chandigarh are much cheaper than other Indian cities

:h is is because of two cri t ical factors.1 Insurance rates.2 Road Tax

onda City


11/21

Price Wars

Started when the carmakers in India slashed the prices to sustain.their sales in the market

Hyundai Santro started selling its car at its 1998 launch price of, , , ,2 99 000 down from the regular price of 3 33 000

. .As a result Ford s Indian Unit had to cut its price by upto Rs 91000

,Because of this price war Toyota Kirloskar had to put the launch of.their Prius Hybrid on hold

yundai S antro ord Fiesta


12/21

Pricing Method : Target Return Pricing: Target pricing is used by general motors,

which price its automobiles to achieve a 15-20 percent ROI.

The target pricing method is used most oftenby public utilities, like electric and gascompanies, and companies whose capital

investment is high, like automobilemanufacturers.


13/21

Premium pricing :

It is a strategy by which prices are set distinctlyhigher than average to reflect better productquality, exclusivity or status.E.g. Mercedes-Benz, Ferrari, Audi, Bentley,

Porsche.


14/21

Perceived Value Pricing :

It is a market-based approach to pricingwherein the price is set by estimating whatthe perceptions of potential consumers areregarding the value of the product.

Market research is a very important componentof this type of pricing.

Honda Jazz


15/21

Tying :It is the practice of making the sale of one

good (the tying well) to the customerconditional on the purchase of a seconddistinctive good (the tied good).

Vertical tying is the practice of requiringcustomers to purchase related products orservices from the same company.

For example, a Hyundai car can only beserviced by its dealers.


16/21

Discount Pricing

It is a pricing method which is generally offered during the.festive seasons or during special occasions

. .:E g General Motors offered a massive discount available on Chevrolet Spark .during Diwali It was being offered at a starting

. .price of Rs 2 79 lakh

hevro let Spar k


17/21

Penetration Pricing

It is a pricing method whereby the organisation sets a low price to.increase sales and market share

. .E g Nano which is priced at around one lakh is a prime example of.penetration pricing

.Aims at gaining high market share

ATA Nano


18/21

Product Line Pricing:


19/21

Optional Feature Pricing:


20/21


21/21

Thank You!!!!

pricing-automobile sector

Documents