Marketing environment of india automotive industry assignment

The total market size of the auto sector in India is approximately RSI 540 billion and has been growing at around 8-9 percent per annum for the last few years. Since the last four to five years, the two wheelers segment has driven the overall volume growth on account of the spurt in the sales of motorcycles. However, lately the passenger cars and commercial vehicles segment has also seen a good growth due to high discounts, lower financing rates and a pickup in industrial activity respectively.

The automobile industry is fairly concentrated, as in most of the segments two to three players have cornered a major chunk of the total sales. For instance, in passenger cars segment, MI-IL, Data Motors and Hounded Motors control around 85 percent of the total annual sales. Similarly, in the two wheelers segment, the sales volumes of Hero Honda, Baja Auto and TV’S Motors constitute around 80 percent of the total sales and in the commercial vehicles segment, the market leader Tells controls around 56 percent of the total annual sales.