Foray into Indian Luxury Car Segment
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Transcript of Foray into Indian Luxury Car Segment
Managerial Communication-I
Presented By:Avinash Singh (14029)
Pranoy Paul (14104)Ruchi Jain(14128)
Shivendra Gupta(14146)Srashti Saran (14158)
CaseYou are the GM of a car manufacturing company in USA. Your
company has been manufacturing luxury cars for the last 20 years and you are the market leader in that segment. You have noticed the robust growth in this car segment in India and would want to foray into it in India. Present your plan to your board.
Here , Team will present as GM and Audience is Board of Directors.
Company Profile : Hasten CarsHasten Cars is a company that manufactures and markets luxury cars worldwide.
It’s a US based car company which was started in 1993 by J.W.Williams.
Its primary markets are US , Canada , China and Germany but Hasten branded cars are distributed in 34 additional markets worldwide.
In 2013 , Its US sales were 1,47,982 Units and global sales were 2,78,487 Units.
Highest global sales continuously for the past 3 years.
Manufacturing and Design Facility• Hasten Cars has Design Facility and Manufacturing Facility at various locations across the globe.
These are :Design Facilities : 1. Detroit Design Facility, Michigan , US 2. Arlington Design Facility , Texas , US
Manufacturing & Assembly Line Facility : 1. Oshawa Car Assembly, Oshawa, Canada (for Sedan and Luxury Utility) 2.Shanghai Assembly Facility , Shanghai , China (for Coupes and SUVs)
Product Range• Coupes – ELR 214 , CTS V
• Sedans –A1 S Series , A3 S Series and B2 S Series
• Luxury Utility/ SUVs – S2 G series and S1 G series.
• Racing and V Series- Escalade and Carrera
Indian Luxury Car MarketWe did Market Research and found following information about Indian Luxury Car Market. ( We
hired IMRB International to conduct research for us)
• According to CII data – Indian Luxury car market size is $1.5 billion(Rs.9000 crores Market).
• As per CII data ,Luxury car market size is growing at rate of 15%+ YoY and same is expected to continue for next three years.
• Annual sales of luxury cars is around 32,000 units and total passenger car sales is 25,50,000 units.
• Luxury car market is 1.26% of total Indian car market.
Competition in the Industry• Major players in Indian Luxury Car Market are : Audi , Mercedes-Benz and
BMW.
• Audi is current market leader with annual sales of 10,002 units in year 2013. Annual sales for Mercedes-Benz and BMW stood at 9003 units and 8000 units respectively. (Research data by IMRB International).
Audi31% Mer
cedes
Benz
28%
BMW25%
Others16%
Sales
AudiMercedes BenzBMWOthers
Why to enter India ?• Bigger Market size which is growing at a good pace.
• Less competition.
• India is a BRICS nation which is developing .
• As per KPMG and EOS-Intelligence Survey , India will be 3rd largest market for luxury cars by 2020.
Our Entry In Indian Market• We have planned to foray into Indian Market with two of our best-selling
cars - Hasten A1 S series and Hasten S2 G series.
• Our R&D & Manufacturing will be done at our “R&D and Assembly Line Facility” which we’ll establish in Pune (India).
• Our R&D work in India will be assisted by our core R&D team based in Texas,US.
• We will place our products in company owned showrooms in Metro cities.
Models Description Hasten A1 S series
Luxury Sedan with 556 HP V8 Engine . Electronic stability control system. Accelerates from 0-60 Km/h in just 3.9 seconds. High Performance Brakes with massive stopping power. Driver focussed luxury interiors with one-touch functions. Rear vision Camera and Navigation. Available in 3 colors – Radiant Silver Metallic , Red Obsession Tintcoat and Black
Raven. Starts at Rs.40.5 Lacs.
Continued….Hasten S2 G series
Luxury SUV with seating capacity of 8. 403 HP V8 Power Engine. Adaptive Remote Start. Bose 5.1 surround Sound , Rear Vision Camera & Navigation. Third –row seats power fold in mere seconds. Available colors- White Diamond Tricoat , Mocha Steel Metallic , Sapphire Blue
Metallic and Black Raven. Price starts at Rs.60.57 Lacs
Promotions• Launch in Auto Expo-2016.• Television advertisements .• Advertisements in premium magazines and newspapers .• In-Flight Advertising .• Digital Marketing. • Celebrity Endorsements.
Financials (Company Standards)Capital Investment of Rs.540 Crores.• Land (100 Acres ) – Rs.110 Crores• Infrastructure – Rs.70 Crores• Machinery & Equipment – Rs.160 Crores• Material Costs (for 550 Units) – Rs.60 Crores• Labour Cost - Rs.25 Crores• Transportation- Rs.5 Crores• Promotions Cost- Rs.60 Crores• Cost for company owned showrooms - Rs.30 Crores• Contingent Expenses- Rs.20 Crores
Continued….RevenuesEstimated 1st year sales of Sedan – 300 Units = Rs.120 CroresEstimated 1st year sales of SUV- 250 Units = Rs.150 Crores
Annual Sales = Rs.270 Crores. We would be achieving Break Even in 2.5 Years.
This is an excellent business opportunity for Hasten Cars.
Questions ?