AMITY SCHOOL OF BUSINESS

Automobile Industry

Indian automobile industry has grown leaps and bounds since 1898, a time when a
car had touched the Indian streets for the first time. At present it holds a promising
tenth position in the entire world. Withstanding a growth rate of 18% per annum
and an annual production of more than 2 million units, it may not be an
exaggeration to say that this industry in the coming years will soon touch a figure
of 10 million units per year.
Reasons of Growth

Economic liberalization, increase in per capita income, various tax relief policies,
easy accessibility of finance, launch of new models and exciting discount offers
made by dealers all together have resulted in to a stupendous growth of India
automobile industry.

Market Share

Automobile industry of India can be broadly classified under passenger vehicles,

commercial vehicles, three wheelers and two wheelers, with two wheelers having a
maximum market share of more than 75%. Automobile companies of India, Korea,
Europe and Japan have a significant hold on the Indian market share. Tata Motors
produces maximum numbers of mid and large size commercial vehicles, holding
more that 60% of the market share. Motorcycles tops the charts of two wheelers
with Hero Honda being the key player. Bajaj by far is the number one
manufacturer of three wheelers in India.

Passenger vehicle section is majorly ruled by the car manufacturers capturing over
82% of the total market share. Maruti since long has been the biggest car
manufacturer and holds more that 50% of the entire market.

Global recession has impacted, the Indian automobile industry also and can be seen
clearly in the sales figures of the last financial year. Even then this industry has
high hopes in 2009-2010, as banks have reduced loan interest rates and the major
chuck of automobile customers belong to the middle income group who are
becoming economically stronger with every passing day.
Company’s Profile
ACURA AUTOMOBILE ltd.

• ACURA AUTOMOBILE ltd. is a publicly listed automaker in India . It is a

leading four-wheeler automobile manufacturer in South Asia. ACURA
means "people's car" in German .Acura is recognized as one of the leading
small diesel engine manufacturers in the world.
• Its headquarter is at Germany , Hamburg .
• ACURA has offered a number of its vehicles with a TDI (Turbocharged
Direct Injection ) engine, which lends class-leading fuel economy to several
models. According to the United States Environmental Protection Agency,
four of the ten most fuel efficient vehicles available for sale in the U.S. in
2004 were powered by ACURA diesel engines.
• Company’s logo :
• Company’s website view :
Sales organization structure

The top management has delegated the authority to vice president of marketing,
who has further advertising manager managing all the advertising and promotion,
general sales manager who manages all the sales strategy whether outsourcing is to
be done or not or company should go for selling the cars by itself,finaly
marketing research manager who analyses the feasibility of the project, customers
who should be targeted for effective selling
Marketing Strategy
CAR SALES in India is witnessing a dip and the reason is rising inflation. The
competition to position strongly in the Indian car market segment is getting very
tough.

The company is working out many plans to increase the car sales and has tied up
with different car dealers across the country. And as a part of the strategy, the car
dealers have been asked to dispose old cars that they get in exchange of new cars.
The company is also providing an exchange discount of about Rs 40,000.

The old car will be placed for occasion to scrap car dealers. The company feels that
this bidding of old cars will benefit their pre-owned car business popularly known
as True Value.

The exchange offer has churned out positive results in ACURA car sales. The sales
figure revealed a hike of 12 per cent to 20 per cent, resulting in promotion of entry
level car models like “SPYCAR”.

ACURA is now completely relaying on the ‘old for new exchange’ scheme for the
sales. May be we would soon see other car makers joining the race.

Market Responsibilities
• Build and enhance our relationships with customers.

• Participate in all aspects of customer relations with sales and marketing team
both internal and external

• Work closely with other India Forge Teams to enhance customer satisfaction.

• Identify areas of the future business.

• Manage all aspects of customer requirements.

Promotion

In addition to standard advertisement practices, The advertisement is done through

following promotional mediums:

• Caps and T-shirts.

• Word of mouth from satisfied customers.

• SMS

• Boardings
• Property fair
• Television commercials
• Business magazines
• Radio

Features Of “SPYCAR”
ACURA SPYCAR 1.0 Petrol :
This will be a 1000 CC petrol engine of ACURA Mdi -series with a power output
of 65 BHP. This is somewhat similar to the engine used by Maruti Suzuki A-star.
This variant is expected to give a good mileage in city driving conditions.

ACURA SPYCAR 1.2 Petrol :

This variant will have a 1200 CC petrol engine of ACURA Mdi -series with a
power output of 85 BHP. This engine is similar to the engine used by Maruti
Suzuki swift. This variant is expected to give a moderate mileage with good power
output for car enthusiasts.
ACURA SPYCAR 1.3 Diesel :
This variant will have a 1300 CC multi-jet diesel engine with Fiat’s technology.
The power output of this engine will be about 75 BHP. This engine is similar to the
engine used by Maruti Suzuki swift DDIS. This variant is expected to give a good
moderate mileage with good power output in City Driving conditions. The price of
this model is expected to be the highest among the three variants.

Interiors of “SPYCAR”
VEHICLE SUMMARY COMFORT AND CONVENIENCE
Name: SPYCAR AC
with Climate
AC:
Control
Model: VDi

Car Body Hatchback Power Windows:

Type:
B+ Segment Central Locking: optional
Segment:

Top Speed: 195 Remote Boot:

Fuel
21.00 kmpl. Remote Fuel Filler:
Consumption:
Highway
Fuel Rear Wiper:
18.00 kmpl.
Consumption:
City
NA Rear Defogger:
Warranty:

Rear Armrest:

Streeing Adjustment
OUR RATINGS
(Rake/Reach):
Appearance:
Driver Seat Manual
Comfort:
Adjustment:
Features: Music System: Optional

Performance: Leather Seats:

Value for
Door Mirror: automatic
money:
ENGINE SPECIFICATIONS
1248cc, 4 Cyl, Multijet, Tinted Glass:
Displacement: DDiS

Diesel Rear AC Vent:

Engine Type:
Maximum 74 Bhp @ 4000 rpm
Folding Rear Seats:
Power:
Maximum 190 Nm @ 2000 rpm
Torque:
DIMENSIONS
Length: 3715 mm Sun Roof:

Width: 1680 mm
Buttons/Controls
1620 mm on Steering:
Height:
OTHER SPECIFICATIONS
Auto Viper:
Seating 2
Capacity:
Tyre Size: 165/80 R14
Auto Headlamp:
MacPherson strut,
Suspension: Torsion beam & coil
ACTIVE AND PASSIVE SAFETY
spring
Airbag:
Turning Circle: 4.70 mtrs.

Boot Space: 205.00 ltrs.

Parking Sensors:

Steering: Power

Front Disk, Rear Drum Fog Lamp:

Brakes:

Gears: 5 Manual
Traction Control:
Ground 170.00 mm
Clearance:
Kerb Weight: 1110.00 kgs. EBD:

Fuel Tank: 43.00

ABS:
Body Color
Bumpers:
ESP:
Tachometer:

Rear Seat Belts:

Alloys:

ORVM
Indicator:
Xenon
Headlamps:
Trip Meter: 2
Headlamp
Washer:

• Estimated cost :- 7-8 Lakhs

Sales budget
Print media: 2crore
Television : 5 crore
Sales associates:50 lacs
Radio ads: 1 crore
Boardings : 1 crore

Sales strategy
• Different and stand out from the competition.
 • Relationships with customers.

• Collecting E-Mail Addresses.

• Hire top sales people.

• Putting a shopping cart on our website.

Break even analysis

As the company has outsourced its whole project to three
underwriters so company is getting payment for that in
considerable time alongwith all the contract notes and other
confirmation terms and conditions

Sales territory
Company’s sales territory is Delhi and NCR region
because the budget Car (ACURA SPYCAR ) is basically
for salaried persons as there is no such car with so many
feature lie in the 7-8 lakh segment in Delhi yet, moreover
Delhi and NCR is the second largest place after Mumbai
in India having many corporate offices with large no. of
employees so company seeks a much heavy potential
there.

Distribution
Here we are going with Selective distribution [involves a producer using
a limited number of outlets in a geographical area to sell products. An
advantage of this approach is that the producer can choose the most
appropriate or best-performing outlets and focus effort (e.g. training) on
them. Selective distribution works best when consumers are prepared to
"shop around" - in other words - they have a preference for a particular
brand or price and will search out the outlets that supply]