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Impact of recession on automobile industry
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EXECUTIVE SUMMARY
A Sport Utility Vehicle (SUV) is a vehicle similar to an estate car that is loaded with four –wheel drive for on-road or off-road ability. SUV s are evolved from military vehicle such as World War II jeep and Land Rover.
A Recent study by a Global research firm shows some interesting information about Indian SUV Market .It predicts that by the year 2020, the SUV Sales growth will overtake sales growth of passenger vehicle in Indian market. The main reason behind this change could be economic growth and infrastructure development.
Indians love their SUVs, and their desire to own one of their dream machine made India as one of the growing market for SUV s. No wonder every company is rushing in to SUV segment. India’s most trusted automobile manufacturer Maruti Suzuki unveiled their new compact
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It shows the strength of Maruti brand in customers mind. To them maruti is package of Trust, Reliability, Durability, Performance and Design. This positioning gives maruti their competitive edge over others.
AN OVERVIEW ABOUT MARUTI SUZUKI
Maruti Suzuki India Limited, previously known as Maruti Udyog Ltd, is undoubtedly the most famous and trusted automobile manufacturer in India. It is a subsidiary of Suzuki Motor Corporation (Japan).Since its beginning in1981 the company has achieved milestones and became a market leader.
The actual production of company is started with Maruti ALTO, the first modern car in India. Its main competitors were the Hindustan Ambassador and Premier Padmini .At the time of its incorporation 74% of shares are owned by Indian Government, and remaining portion of share was with Suzuki Corp.
The company has presence in segments like hatchback, Sedan, Mini-van, LUV (Life Utility Vehicles) and SUV. The popular models are 800, Alto, Swift, Dezire, Omni, Ertiga and now
Andrew Simms, a policy director and head of the Climate Change Program for the New Economics Foundation in England, presents his argument about the impact SUV’s have on our roadways, and the air we breathe. “Would You Buy a Car That Looked like This? “. The title alone gives great insight on what the article is going to be about, (vehicles). “They clog the streets and litter the pages of weekend colour *supplements. Sport utility vehicles or SUV’s have become badges of middle class aspiration” (Simms 542). Simms opening statement not only gives his opinion on how SUV’s are the new trend, but he also paints a picture of what we see every day driving down our roadways. Simms also compares the tobacco industry’s gap between image and reality to that of SUV’s; stating that the cause and consequences of climate change resemble smoking and cancer. Simms comparison between SUV’s and cigarettes shows how dangerous he believes SUV’s are.
In Mr. John Braggs writing, he proposes that the SUV is attacked by the same individuals whom support former Vice President, Al Gore’s call to abolish the production of internal combustion engines. Considering John Bragg is a policy analyst for the Center for the Moral Defense of Capitalism, it is safe to acknowledge that he advocates the production of SUVs not because it is conducive to maintaining the environment but because the SUV is the symbol of Americanism. Additionally, according to “Why Environmentalists Attack the SUV,” the production of SUVs has declined because of federal fuel efficiency mandates, which were emplaced in 1975.
In the 21st century, there are too many vehicles on the highway and most people drive a vehicle all around the world. According to Tencer, ‘’The global number of cars exceeded 1.015 billion in 2010, jumping from 980 million the year before’’ (2013). If a person is thinking about driving a vehicle, there are two options that can bring different experiences. SUVs are 4x4, strong, big, and more dangerous than sedans. While, sedans are fast, small, and the more popular choice. Driving a SUV and sedan are different in terms of safety, power and comfortable.
LRNA needs to determine a positioning strategy for the Discovery and itself in North America to entice its two distinct target markets. LRNA is aware that it has two distinct target markets whose purchasing decisions are impacted by various drivers but also knows that factors such as quality, safety, reliability, comfort, off-road capability and aesthetics overlap. When compared with other SUVs or SUV alternatives, we believe the following differences should be highlighted to develop a distinctive niche for the Discovery and Land Rover brand in the target audience’s mind. The Discovery and Land Rover brand should be positioned as luxury car alternatives with rich histories and superb off-road capabilities designed for the crème-de-la-crème of consumers: affluent, intelligent, practical, unique, full of character, and seeking to empower themselves through adventure and exploration during their driving experiences. The Discovery and Land Rover brand should, in effect, convey the following message: you are what you drive.
Since the early 1990s, the car market has become saturated with sport utility vehicles. While SUV’s have been enthusiastically received by a wide spectrum of the demographic – everyone from teenagers to soccer moms -- not all are excited by its arrival. Some of the current complaints with SUVs have to do with their ridiculous size and relative fuel inefficiency. Others criticize the vehicles as being unsafe, and certainly unnecessary, for the tasks for which they are commonly used. But even with the recent campaigns to educate the public on the possible physical and environmental risks posed by the automobiles, SUV purchases continue to be on the rise. Indeed, with car sales on the decline, and the SUV being seen as a possible savior -- or at least band-aid -- for the struggling motor industry, any movement to ban SUVs in the near future is unlikely.
Chevrolet has a large diversity of vehicles, as stated by Farrell & Hartline (2014), “the company has developed large trucks and vans; the Silverado, Avalanche, Colorado and the Express, full-size; midsize, compact, and sub-compact automobiles; sports cars; and even race cars” (p.406-407). Chevrolet strengths are the large diversity of vehicles under the brand name. Moreover, Chevrolet has a unique product mix, that offers an arrangement of vehicles for all different types of consumers. Additionally, Chevrolet offers these various types of vehicles at different price points, a vehicle to fit every budget.
BMW having high market share in European and U.S luxury car markets, started facing issues with launch product qualities and also facing a fierce competition from Japanese producers. Currently the market share was still stable but the rigorous growth of Japanese producers would affect BMW in future. These Japanese competitors had set higher standards of conformance.
The automobile sector has been a robust sector that has experienced tremendous growth in the past seven to eight years. Apart from two years in particular -2008-09 & 2012-13, there is general trend of ten percent plus growth in various segments like passenger car, commercial vehicles, two and three wheelers. The following chart shows the growth rate of various years in each sectors.
Vehicle 1 was a green 2005 Buick Terazza CXL mini van, vehicle, bearing temporary Florida tag. J78OTP and VIN#: 5GADV33L25D201085. The vehicle was registered to Silvia Tapia Ramirez of 5607 Bailey Road, Plant City, FL 33565. Vehicle 1 had a registered curb weight of 4320 pounds.
4) Viral-Quotient per Content (Any Media) - Most popular YouTube video was viewed 200,000 times. On an average, a video was viewed 1600 times. This builds upon the idea of Customer engagement, and Content distribution in the social space, that relates heavily to the very purpose of such a campaign. Also, this entire communication was user-generated, so the message didn’t look, at least to say, to be coming out in the form of ‘Company Promotion’.
There are many different automobile companies providing buyers with many styles of cars, trucks, SUVs, and motorcycles. Toronto Star January 14, 2005 present ways to approach the automotive buying process. There are many different surveys, crash reports, and rating systems comparing different companies and their vehicles. Things you should look for when reading these published articles are who conducted the study? Who paid for it? Who gains from it? Who loses? These are all things to keep eye on as some automotive companies will run their own surveys making their products seem overpowering against the competition. Some prove their products are safer then the competition where the competition has been proven time and time again to make that survey seem inaccurate.
Toyota offers for sale a full line of cars, from family and sportive ones, to minivans and trucks. The product mix of Toyota consists of sedans, coupes, hybrids, vans, SUVs and trucks. The width of Toyota’s product mix is quite substantial. Product line length is a number of different models in a product mix: Prius, Avalon, Corolla, Camry, Lexus, RAV4, Land Cruiser, Tacoma, Tundra, Scion and others. An example of a depth of Toyota’s product mix could be the possible variants of Lexus model (ES300, ES 350, IS Series).
To explain the barriers of entry, let us take the example of America's best-selling SUV in 2014 which was the Honda CR-V, for the third consecutive year followed by Ford Escape. These two companies with their immense economies of scale are posing a high barrier to entry for their share of the market. Honda CRV is able to offer the better fuel economy and safety rating without incurring a loss and maintaining the majority of the market share. This makes it difficult for firms like Volkswagen who are leaders in Europe to enter this market.
As a result of the increased demand of cars, the competition among car companies is becoming intense. Although the market of car is the biggest growing market in the world, there are still some companies who make cars failing year after year. However, there are some outstanding car companies such as The BMW Group performing distinctly.
of cars but also in a wide range of styles and sizes, including, mini-vans, sport utility vehicles