New Car Development

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 SPYCAR Name:

COMFORT AND CONVENIENCE AC with Climate AC: Control

Model:

VDi

Car Body Type:

Hatchback

Power Windows:

Segment:

B+ Segment

Central Locking:

Top Speed:

195

Remote Boot:

Fuel 21.00 kmpl. Consumption:

optional

Remote Fuel Filler:

Highway

Fuel 18.00 kmpl. Consumption: City

Warranty:

NA

Rear Wiper: Rear Defogger: Rear Armrest:

Streeing Adjustment (Rake/Reach):

OUR RATINGS

Appearance: Comfort:

Driver Seat Adjustment:

Manual

Features:

Music System:

Optional

Performance:

Leather Seats:

Value for money: ENGINE SPECIFICATIONS 1248cc, 4 Cyl, Multijet, Displacement: DDiS Engine Type:

Diesel

Maximum Power: Maximum Torque:

74 Bhp @ 4000 rpm 190 Nm @ 2000 rpm

Door Mirror: Tinted Glass: Rear AC Vent: Folding Rear Seats:

automatic

DIMENSIONS

Length:

3715 mm

Width:

1680 mm

Height:

1620 mm

OTHER SPECIFICATIONS Seating 2 Capacity: 165/80 R14 Tyre Size:

Suspension:

MacPherson strut, Torsion beam & coil spring

Turning Circle: 4.70 mtrs. Boot Space:

205.00 ltrs.

Steering:

Power

Brakes:

Front Disk, Rear Drum

Gears:

5 Manual

Ground Clearance:

170.00 mm

Kerb Weight: 1110.00 kgs. Fuel Tank:

Sun Roof: Buttons/Controls on Steering: Auto Viper:

Auto Headlamp: ACTIVE AND PASSIVE SAFETY

Airbag: Parking Sensors: Fog Lamp: Traction Control:

EBD:

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]