Analysis of the success of compact SUVs and new market space creation with example of Renault Duster and Ford Eco sport in India

Abstract

The automotive industry is one of the the major contributing industry as far as key drivers of growing Indian economy. Indian automobile Industry has forward and backward networks with every industry of the economy. Impact of automobile industry will have direct effect on Indian economy as well as subsequent sectors related with it. The sales of sport utility vehicles (SUVs), Multi utility vehicle (MPVs) & specially Compact SUVs is the most attracting segment in the automotive sector at present. The growing popularity of compact SUV like Eco sport & Duster gives hope for automobile manufacturers to enter into this segment to increase growth. The success of Renault Duster and Ford Eco sport has encouraged other companies to launch 9-10 new models SUV/MPV in recent AutoExpo2014. The purpose of our study is to analyze the drivers of the popularity of SUV/MUV/Compact SUVs. We seek to understand what consumers want from an SUV and how an SUV is perceived to be different from sedans and hatchbacks. We will study one or two successful SUVs in detail by carrying out primary analysis which will be based on a theoretical model of vehicle buying.