Sales process effectiveness at automobile showrooms

Abstract

The Indian Car Industry is currently the 6th largest in the world. It is also one of the most attractive with car sales estimated to reach 11mn by 2020 which will make it the third largest in the world. Although the market went through a slump in the recent past, analysts predict 15% annualized growth as the economy recovers and the population and purchasing power grows. The automobiles production increased at a compound annual growth rate (CAGR) of 13.2 per cent over FY05-12, while the export volumes increased at a CAGR of 22.4 per cent. Although the growth story is promising, and most international brands have their presence in India, the Indian consumer has been a challenge to cater to for myriad reasons. The unique consumer preferences, limitations in infrastructure, fragmented markets & steep learning curve in distribution are major reasons which has stopped several MNCs from striking gold in India. In fact, India is the only major market in the world where the top 4 global giants-Toyota, Volkswagen, GM & Ford has <5% market share. Maruti Suzuki with 48% market share and Hyundai with 20% market share are invariably leading the pack and seem to have got most, if not all of the above aspects. While some of the global players will have to invest in India heavily in terms of R&D & distribution to play for the long haul, brands like Tata will have to work on branding to become more acceptable to Indians. Invariably, both set of companies will also have to invest heavily in understanding consumer perception and decision making while revamping all touch points and communication to win the confidence of the consumers.