The Indian automotive industry, which witnessed dynamic growth in the last decade, now stands at a critical crossroad. Especially since the road ahead is riddled with tough competition. Exemplifying this is the fact that as many as 15 car manufacturers are now churning out automotive variants and the Indian consumer, who until the early 90’s had minimal choice, now has an embarrassment of riches.And things look like they could only get worse for the car-makers, given that the -- Car Wars” predicted by many pundits looks set to move into top gear next year. What with three new players -- of the likes of Toyota of Japan, Skoda of Czechoslovakia and Proton of Malaysia -- set to make their Indian debuts in the next 15 months, and with 14 new models slated to hit Indian roads, the heat is definitely on.
In the west, the car has been an expression of an individual’s personality, and traditional differentiators like price have limited appeal. In India, price is still important, but this could soon change. What then holds the key to success in the Indian automotive market?
To be sure, only manufacturers who address the traditional troika of critical issues will stay competitive. One of these factors is the -- indigenised content -- of the vehicle. Next is the -- target segment -- for the vehicle, wherein the car-maker would have to ensure that the model on offer meets the customers aspirations and technological demands. And, third, comes the -- price expectations -- .
But along with these three critical components are some new parameters that have emerged as part of the -- success equation”. Car-makers will now have to keep a keen eye on psychographic profiles, especially since car marketers are attempting to change the perceptions of their brands and specific buying motivations appear to be replacing generalities.
The key to success in the next millennium will lie with those auto manufacturers who seek new solutions, implemented through constant innovation. Effectively, car-makers will have to work harder to offer the customer a gamut of services ranging from finance, insurance, after-sales service and supplies. Success could well hinge on the best bundle of services that a car-maker can provide.