AtulChandel_Articles_as_aPublisher_ACG.pdf

Indian Two Wheeler Industry Analysis
2022
Indian Two Wheeler Industry Analysis 2022 is the combination of the
Electric Two Wheeler and ICE Two Wheeler Segment. The Indian
Two Wheeler unit in 2021 stands at about 13.7 million units which
is equivalent to the sales volume of 2013 and is expected to register
a 5 percent CAGR over the next 5 years. The year 2021 wasn’t really
a cakewalk for the Indian two-wheeler industry as it had to navigate
across various hurdles to keep up the pace with its sales volume.
However, the growth was a meager 3.5% up from the year CY 2020
which proved to be fatal for the two-wheeler industry. The two-wheeler
industry has always had a significant foothold across the nation and the
cumulative market value stood at 1321.8 billion INR during this year.
ACG has put forth various reasons that led to the disastrous outing for
the two-wheeler industry, and the most prominent of them is the rapid
and incessant shot up in customer preference to buy Electric Two
Wheeler, fuel prices, massive inflation, and also the exorbitant interest
rates. All these factors continued to trouble the already plagued two-
wheeler industry and led to its downfall.
When we take a look at the market dynamics post-2018, we notice an
astonishing fact that the scooter and the motorcycle segment are mostly
in tandem with the growth curve and the overall performance in the
market.
Indian Two Wheeler Industry Analysis 2022

The two-wheeler segment in India has enjoyed a flawless run in the
market and thanks to the wide variety of product choices it offers to its
customer base.
The two-wheeler segment can be broadly classified under 5 categories
i.e Economy, Executive, High performance, Lifestyle, and Power Bike.
Out of all the categories listed above, the economy and the executive
category have established a firm hold in the market by amassing a
record number of sales in the past. Their market presence stands at a
whopping 93% as far as the year 2021 is considered. While the other
categories have not been able to get big in the market but have decently
performed as they all witnessed good growth in the yesteryear.
Taking a look at the growth curve of the various bike categories reveals
an interesting insight that the overall growth rate has been encouraging.
The entry-level segment has been able to record a CAGR of 4%, while
its close competitor Executive faced a slash in its sales volume, which
brought its growth to -1%. However, the lifestyle, high performance,
and the power bike have made the most of the market opportunity and
have amassed a growth of 24%, 160%, and -1% respectively during the
last decade starting from the year 2011.
Road to owning a two-wheeler:
Procuring a two-wheeler for facilitating commuting needs has been the
top priority for the Indian community at the moment. The buyers take
into consideration various factors before zeroing in on their purchase
call. The key areas of consideration are price range, ergonomics and
style, economy, status and prestige symbol, emotions, ease of comfort

style, economy, status and prestige symbol, emotions, ease of comfort
and convenience, and most importantly the maintenance cost and
safety. The weightage of these factors depends on the type of segment.
Ultimately, the customer makes the final call in regards to procuring a
two-wheeler.
The hierarchy of the factors that influence the purchase decision will
vary from person to person, and the key areas like age and income of
the buyer, gender, and most critically the geographical base play a
critical role in influencing the buyer. The report formulated from our
end depicts the fine relation between the purchase decision of the buyer
and the influence it has on the OEM’s market dynamics. The report
also highlights the corrective action that needs to be inculcated for
being able to build on the trust of the potential buyers.
Key factors contributing to the Purchase decision:
The marketing and the advertisement channels do constitute a major
part in getting the traction from the customer base and thereby enhance
the sales volume. The brands have started focusing on unraveling the
various standout features of their product in a visual mode and this in
turn has enabled them to reach a wide range of audiences. For instance,
the two-wheeler products like Pulsar and Apache have been
periodically making the headlines by coming up with an advertisement
to showcase the product’s best in class power ability, seamless ride
experience, and the confidence it instills in the rider.

Altogether, these advertisements have emerged as a strong medium to
directly engage with the potential customer base. Taking a look at the
ad conceptualized by Pulsar and Apache reveals that the brands are
trying their best to attract the customers to get their hands on the
product and we will soon get to know whether the brands would be
able to reap the best with this tactical Move.
The recently concluded study has revealed a scintillating insight that
the Word of Mouth(WOM) stands tall in influencing the mindset of the
buyers to make purchase-related decisions, it is then closely followed
by the product visibility attributes which also attracts the customers to
own a brand. Both these factors cumulatively sum up to almost 75% of
the influencing medium, out of which 40% is by the WOM and the rest
is from the product attributes.
The key insights of this analysis are briefly listed below:
Sentiment Analysis:
It is one of the prime factors that have a good impact on the buyer, this
analysis helps the brand to formulate a product strategy and a sales
plan. Over the last half a decade the TVS brand has done commendably
well in hitting the positive sentiment well.
Impact induced by the culture:
The profile of the person making the purchase decision: the two-
wheeler industry has always been customer-driven. The industry has
been able to quickly adapt itself to deliver to the needs of the
customers, which has been a prominent reason for its flawless run in
the market. Getting to understand the customer’s mindset is one of the
keys to success.
The different ways in which the communication is sent across:
Communication amounts to the overall rise in the sales volume, as it
strikes the right chord of the customer and influences them to buy a
product Communication across the two-wheeler industry is divided

product. Communication across the two-wheeler industry is divided
into 3 types i.e Points of Parity (POPs), Points of Difference (PODs),
and Points of irrelevance ( POIs). All these 3 types of communication
come together and render a good experience to the customer thereby
contributing to the success of this two-wheeler segment. However, the
influence of this communication factor is purely dependent on the
customer’s mindset.
Impact by the surrounding culture:
Let’s take a look at the most luxurious two-wheeler brand i.e the Harley
Davidson in the Indian context. We get to know that Harley Davidson
has evolved to be one of the key prestige and status indication in the
Indian scenario. And the buyers usually get their hands on this product
to enhance its popularity and traction in society than using it as a
mainstream commuting option.
Taking a further keen look in regards to how the competition has turned
out to be in the two-wheeler industry for the last few years reveals an
astounding point that the dominance of the two-wheeler segment is
segment specific, and even the segment leaders have been able to make
the most of the market by maintaining a popular product chunk of not
more than 2 to 3 two-wheeler models.
Case study analysis:
1. Ola Impact, Market share, Customer experience, and its impact on
Electric Two Wheeler Industry and Overall Indian Two Wheeler
segment
2. The study conducted on a customer who previously owned a Bajaj
Pulsar and went on to purchase a TVS Apache has revealed the various
factors that influenced the owner to make his buying preference.
Key Highlights of the report: Electric Two Wheeler and IC
Segment
Indian Two Wheeler Market Trend and Forecast 2030 – Electric
Two Wheeler and IC Two Wheeler
Used Two Wheeler Market Analysis

Comparison of Electric Two Wheeler Products, Markets, Price,
Product life cycle, Maintenance cost, Resale value, Getting a loan from
Banks to buy a vehicle, Challenges, Opportunities, Forecast, OEMs
profile, Customer Acceptance, Customer expectations, Customer’s
experience, Dealership difference, Selling Strategy, Technology, Key
Features, and Design
How buying and selling process is different for EV and IC Two
Wheeler
Customer willingness to pay for each brand and Models
The average life of Motorcycle, Scooter, and Electric Two Wheeler
Demand Analysis – Long, Medium, and Short term
Scenario Analysis of changing Price, Specs, and Key Features
Establish OEMs strategy to invest in Electric Two Wheeler Startups
Product improvement Analysis – Engineering, Design, Quality,
Reliability, Features
How Honda and Yamaha are leading the innovation to win the trust
of the buyers
Market Fit and Go-To-Market Strategy Analysis
How to develop a Product roadmap for Electric Two Wheeler
Indian Two Wheeler Segment Analysis – Market Share, Volume,
Growth, Price bracket, Number of Models, Model distribution Analysis
Motorcycle and Scooter Customer profile and map with purchase
criteria
Income and Age group and their buying pattern
Uses of Motorcycle and Scooter
Maintenance cost Analysis of Major Models
Brand Perception of Bajaj Auto, Hero, Honda, TVS, Harley
Davidson, Royal Enfield, Yamaha, Piaggio, Ola, and others
Two Wheeler Market dynamics of Rural and Urban India
Statewise EV Policy and Penetration forecast
Key growth drivers of Electric Two Wheeler and IC Two Wheeler
Customer preference to select the specific Models
Market Attractiveness for each Two Wheeler Segment
Top Selling Models and Why customers prefer those Top Models
Indian Two Wheeler Competitive Assessment tool
Communication Style of Major OEMs and Marketing Strategy
Opportunity Analysis based on Low growth, Low Market Share,
and Product life cycle
How some models are replacing segment leader Models

8/30/2021 Customer preference towards Electric Cars - Autobei Consulting Group
https://www.autobei.com/autoreports/electric-vehicle/customer-preference-towards-electric-cars/ 1/9
Customer preference towards Electric
Cars
ACG released the latest report on Customer preference towards
Electric Cars. The fast-paced world of today is the end result of
many successful ideas that have been implemented with the
right business strategy. If we consider any business model that
has rendered fruitful results to the owner, then such a business
will be governed by various factors, pivotal of them would be the
consumer base and the specification in which it is offered viz.
pricing, efficiency, uniqueness, etc. But the market dynamics
slightly change in regards to the booming EV industry, and we
need to bring in a completely different approach to ascertain its
growth strategy. Any newness in the market will never be
welcomed with an open arm, and the same goes with the EV
industry as well. Similarly, even the EV segment faced a lot of
problems in the initial phase, as the customers cited a lot of
apprehension in regards to its efficiency, build, and other aspects.
Whenever a product is presented into the market, then the
buyers look for the uniqueness coupled with affordability to own
it, and the EV sector is still not able to present their product in
the market with a cheaper tag nor an exorbitant mileage on
offer, or vast reach of charging places. The research analysis that
would be carried out as we deep dive into the core, will further
unravel various factors that will influence the locomotion
concerns. The following factors have proven to be the
quintessential for deciding the success of EV: Option to get a
feasible Charging point, an alternate mode of transport, especially
cars to facilitate commuting, the cutting edge systems in place to
boost the mileage efficiency.
We have been able to ascertain that an ample kilometer coverage
for an EV to be considered as good or worthy can stand starting
from as low as 95km to a maximum reach of up to 260km.
Customer preference towards Electric Cars

The transition to the field of Electric Mobility has challenges of
its own viz. inadequate charging infrastructure, shorter range,
and time-consuming charging.
In the current market scenario Tata Nexon, MG EV Hector, Tata
Tigor EV, Hyundai Kona are the Top products in the Market.
Electric Cars Product Performance:

After a keen inspection of the Locomotion structure, We can
deduce the need of strengthening the fundamentals and the
observation is as listed below:
Option to get a feasible charging point:
In the domain of EV, the energy fuelling stations have attained
utmost importance and are indeed very integral for its operation.
When we take a glance at Germany, France, the United Kingdom,
and China market, which flaunts the topmost active users of the
eco-friendly vehicle, it can be seen that the major amount of EV
sales belongs to the region that has a vast amount of energy
refueling stations.
An alternate mode of transport, especially cars to facilitate
commuting:
The presence of commuting alternatives always reduces the risk
associated with moving from one place to the other, and the
inception of EVs has paved a way for the customers to prioritize

EV’s as their next priority choice of vehicle or even as the
primary. Luckily, this factor has turned out to be a blessing in
disguise for the EV industry.
The end users anticipate a comprehensive system in place so that
it can render practical solutions to all their locomotion needs.
This aspect also seems to be the need of the hour, as many users
may need to take up travel across the city or states owing to
relatives function, various events, sightseeing, etc. As per the
observations made from the recent analysis amassing a handful
of commuters from various metropolitan cities concluded that
there are instances where the drivers are supposed to drive
greater than 1000 Kilometres and this sought of situation arises
on a maximum of 30 to 40 days per year, as per the report. Since
the EV has not yet been empowered to carry out trips on a
stretch, this would continue to haunt the sprawling growth of EV
and would be a major hurdle in the path of its adoption as the
primary car of the users.
This structured article aims at exploring the three vital things
influencing the commuting concerns on adoption to EV i.e Kind
of energy refueling facility or point availability, the need of
owning a second commuting option, lastly the mileage extent
influencer system.
The EV’s available in the market is one of the commuting
facilities that are available to access with certain characteristics,
and these characteristics at times may not be feasible to meet
one’s own needs or usage. What matters most to the drivers is the
mileage efficiency, higher energy refueling times, and sparingly
available charging points and these concerns need an efficient
and immediate addressal so as to facilitate all their travel
requirements.
The EV’s on the other hand find their space in the locomotion
option, if in case an alternate car is available at any given point
of time. Studies have also revealed certain points that the
mobility issues seem to be very negligible with the users with an
option of an additional car, and this can be any car that runs
with conventional fuel.
The kind of trends that are seen amidst the community of
owners who own multiple cars and then shift towards EV is:
Initially, they try to fit in EV in the place of the user for shorter
commuting needs, as the range that needs to be traversed falls
under the purview of actual EV range, and the EV’s when
harnessed for this need will perform to the expectation and
nullify all the negative concerns. Apart from this, EV also tries to

take it well past the user in the area of flexibility and thus boost
the figures of EV in the arena of Universal travel distance. So, all
these positives sum up to conclude the essentialness of EV and
the need for it to evolve as a prime alternate commuting system
though it does not find its use for everyday travel.
The cutting edge technologies in place to boost the mileage
efficiency:
The topmost governing authority highlights that at times the
Shorter mileage offered by EV’s acts as a thoughtful psychological
barrier. When we analyze and comprehend the desirability of
EV’s range then the user community is polarised to overestimate
the total distance they need to cover, and underlines this more
than their travel needs. Usually, these concerns are the end result
of anticipating the risk of being prone to breakdown, running out
of fuel or energy on the highways and in the vulnerable areas viz.
forest, village roads, nomans place, etc. Also in case of an
unplanned trip, these concerns will haunt even more as the
driver needs to take up the commute without the knowledge of
the kilometers to be covered, as they will not be aware of it
beforehand. This will put them into a situation where they will
not be able to furnish their travel needs owing to the
miscalculation of the total distance to be covered and other
factors. The study conducted taking into consideration 100 EV
users of silicon city of India, revealed the stressful situations they
face owing to the lesser mileage of EVs is arising in a recurrent
fashion and poses a threat to the end-users at least 12 times a
year.
Technology is the boon to the field of EV, and it is the need of the
hour for the manufacturers to come up with an application that
serves the purpose of giving end to end information about the EV
car to the user, like What is the vehicle condition, Total mileage
that can be achieved, Next service duration and lot more.
When it comes to the performance and capabilities of EV, we can
say that it has undergone a swift change and its significance as
well. But the evolving customer mindset has posed a great threat
to it, and the failure of EV manufacturers in building a system to
identify end users’ aspirations has blown the issue out of
proportion.
The Manufacturing company-related aspects like the Value of the
manufacturer and his position in the market, impeccable
consumer facilitation, ability to retain the users play a very vital
role in influencing customer’s mindsets and prove to be
quintessential in their decision-making process of owning an EV.

Strategy for Building the product and the segment it can fall
in:
The influential factors like Brand perception or social status tend
to occupy the foremost importance when customers have the
option of owning a Luxurious vehicle at the same cost as buying
an entry-level trim of EV.
The EV buyers of the present world are in search of getting the
best in class cutting edge features, they are versatile, passionate
to own a car and they consider this owning affair to be a vibrant
period. But ironically, the customers who value all the aforesaid
points are not existing everywhere and their presence in the
contemporary market almost tends to zero.
The prominent area of performance in the automotive sector is
the lookout for superior vehicle acceleration by the customers.
The best luxurious vehicles of today keenly encash on this aspect
by advertising the time elapsed in seconds by their car to
accelerate from 0 to a certain km range.
To conclude, we can clearly highlight the enormous amount of
importance that is being rendered to the concept of Speed and
Throttle maximize level. Categorically we can say that Cars that
take the mentioned points into consideration will have a
presence in the market of the following types: Affordable, Value
Plus, Premium, Luxury, and Highend Cars.

To conclude, we can say the need for attention to detail cited by
the customers is very much instrumental in amassing the sales
figures and thereby contributing to the growth of the Product.
The world today is driven by technology, and technology has had
an impeccable impact on our lifestyle too. These days owning a
car is not only for commuting means but also reflects one’s own
societal status. Despite the root cause of procuring a car is travel
needs but it all boils down to the user’s perspective. There might
be other influential factors for the owner to buy a car, such as
updating the car to the one with larger capacity so as to
accommodate additional members, passionate to get the taste of
the advancement in the market that may, in turn, contribute for
the higher efficiency and best in class feel. The above-listed
features are pivotal in making the choice of the car.
So, Which according to you is the instrumental thing that will
have its effect on the procurer to get a car for himself/herself?
The Response for this will be ‘Procuring amount’.
Many of the customers have a restricted budget for procuring the
vehicle. Cars are considered to be one of the fundamental
purchases and the price one can afford to own is very restricted
owing to a fixed cash flow. The EV’s are yet to get a level playing
field and at times find it difficult to compete with the existing
market, as the cost to own an EV is extremely high for a middle-
class family and the high cost is due to the battery and its build
architecture. The overall Amount that needs to be spent for
buying an EV car is a very costly affair compared to owning a 4
wheeler with an ICE.
The scientific point that needs to be observed here is the slightly
costlier investment in Electric vehicles, which can be largely
reimbursed by saving considerable amounts in energy
dissipation, service, and a lot more aspects. But it is very
saddening, that the potential car procurer will pay the least
attention to this broader concept. They consider that the savings
they will be able to make is very inferior and assume to count it
as fairly minimal than the product investment they make. As a
product architect, one can perceive to get a thought of luring the
customers by gradually scaling down the product cost by
rendering govt aided funds or freeing them from tax, else the
manufacturer can carry out impeccable research on the battery
architecture, and thereby present an economical battery solution
so as to address the high manufacturing cost and scale it down in
the near future.

There also exists an idea proposed by Better Place, which seems to
be practically feasible if efficiently implemented, like letting the
customers purchase an electric-powered car with no battery. The
customer in this case can be given an option of taking the
electric fuel endowment or renting them on the basis of trips.
This can be achieved by charging the customer only for distance
covered, or a 7 day,30 days plan. This implementation can largely
address the High-cost product issue.
Indeed, Better Place came up with a Superior sequel of this
feature, which included a specific energy interchangeable
infrastructure and also a closed-loop charging infrastructure.
They claimed that the battery Interchanging process of replacing
the charged battery with an already drained battery in the car
can be done within a quarter of an hour, and this innovation is
superior compared to the already existing fast charging services
of today’s world. But, the hurdle in the path of achieving this
mode of operation is that the concept of battery packet changing
needs global acceptance and the same has not yet been acquired
to date.
Things that are also equally impactful in owning a car are the
specifications and the characteristics inculcated in the car, like
the orientation of the structural part and vehicle trim. The
vehicle trim choice is completely dependent on one’s own
requirements and needs. For instance, a group of 7 people will
aspire to strike a deal of owning an SUV or MPV kind of car than
a 4 seater hatchback. As we take a glance at the existing electric
models, interestingly we find a notable amount of impeccably
enriched sedans and large SUVs.
Though many people were of the opinion that electric vehicles
would storm the market as a hatchback, Tesla’s advent into the
market presented a Sports racer and a Luxurious sedan. This was
the precedent set by Tesla, and the other manufacturers in the
lineup seemingly embraced the market with the same approach.
This move of them is to be well appreciated. The strength of an
electric sports car has always been its speed or the ability to
needle up beyond the normal speed. The car savvy’s have time
and again proved that they are all ready to procure the
Investment for attaining higher speed. Yet another factor that is
plaguing the slow-paced adoption of electric vehicles is its
operationality.
The psychological thought which is prevalent in the world today
is that the influence of the people around and their choices on an
individual is immense: If your classmate, co-worker, people in the

vicinity and acquaintance procure a number of EVs’s and in case
they share a good review with you, then eventually your thought
process bends towards making a similar choice.

8/30/2021 Electric Car Business Model for India - Autobei Consulting Group
https://www.autobei.com/autoreports/electric-vehicle/electric-car-business-model-for-india/ 1/6
Electric Car Business Model for India
A detailed walkthrough of the Electric Car Business Model for
India.
In the contemporary situation, the question which is demanding
the answer of the highest priority is “what’s the way ahead for
unraveling a future that is completely Electrified and free of
Emissions?”
The journey ahead may seem herculean and impossible at the
start, but when approached with the right strategy it can yield us
the right outcome. In fact, the two crucial things that are integral
ingredients for success are:
The positioning of EV product on varied parameters
Enhancing the Market acceptability
Undoubtedly, The era of Electric vehicles and their technology
will give an immense booster to the Transport industry and the
entire mankind at large.
Whereas the Management Sutra and proven Business strategies
imply that, at the end of the day what really counts is not the
greatness of the technology, but its ability to sell itself in the
market by meeting the client’s requirements.
The Fundamentals of the EV Business:
Initially, weightage needs to be given for scaling the uniqueness
and its distinguished value for the customer. Emphasis needs to
be laid on portraying the standout features viz. Design,
Ergonomics, Features, and availability of various models.

Further, the technicalities of the project need to be brought to
the table, and this innovation needs to be experienced by the
customers through boundary objects like flowcharts, Graphical
representation, maps, etc.
Monetary-related things take the driver’s seat in evolving the
leads to the final Customers. So structuring the right price is of
utmost importance. The pricing should address all the questions
like do the customers have to pay the entire price at once to get
the subscription? Will they get any aid in the form of a subsidy?
And this financial aid if rendered acts as a launchpad for
shooting the Market.
Last and foremost, the quintessential thing is to loop in the right
partner network for catering to the customers and other sectors
by establishing hassle-free connectivity between the production
base and the users.
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Once the above said things of the Electric Vehicles are
channelized in the right direction, then we can realize that
business model is not only about the cost incurred for the
battery, but rather involves lot many things. Today’s cutting-edge
technology offers us to choose from a wide range of choices, but
one should know the art of picking the right product and try to
exploit it commercially for the benefit of customers and ensure
its feasibility to the user base. We should also take into
consideration that all the possibilities that can be tapped by the
technology cannot be passed on to the end-users due to various
constraints like Cost, the paucity of time, the vastness of the
network.

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The bottom line is that even though the battery technology has
proven to be cost-effective, eco-friendly, affordable, and mature.
But it cannot be directly implemented by swapping electricity
with a fuel-driven vehicle.
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The right care is to be taken for choosing the accurate business
model which takes into account cost, Value, and the offer so that
customers can have access to choose the product that meets
their expectations and pricing.
The overall value of Electric Vehicles depends mainly on their
distribution across Pan India, and also on an associated
electromobility system. This sort of distribution needs external
activation of levers apart from the car manufacturers. So that the
growth strategy can be tapped by reaching out to cities, highways,
companies, and a lot more places. The next important thing is to

spearhead a mission to popularise the best in class Electric
experience to the customers and this is the core element for the
success of distribution methodology.
The government and the other major OEMs are on a mission to
revolutionalize the Automobile sector by swapping the ICE vehicle
with pure Electric Vehicle. But this approach initially seems to be
like Marching to war without adequate practice and skillset.
There are certain key areas that need to be well equipped before
evolving the Indian Automobile sector to the BEV.
Vital points in regards to Product development:
It needs to be within the monetary reach of the customer and
it should fall in the affordable range.
The choice range should be myriad in nature, so as to let the
option to the customer to choose from various models and
variants.
The product needs to comprehensively address the issue of
Charging duration, availability of Infrastructure for charging, and
the maximum range offered.
Things to be kept in mind to Appease the Customer base:
Ensuring the database of the target audience who will choose
electric Vehicles.
Bring about best market practices to take the confidence of
the customers, and also boost their trustability in the product.
Structuring the product under a nominal pricing scale and
making it the best product for the money being paid.
Standing firmly by the line, “Customer is the king”, and try in
all sorts to satisfy their particular needs and wants.
Building up the epitome of Brand value and create an
impeccable social status.
The proposed Business model for EV:
The uniqueness or the Value proposition of the product can be
structured in 4 part:

The term environmental friendly garners much interest from
the crowd but not many intend to invest in it and own one.
Electric Vehicles are premium priced, despite the fact that their
maintenance and usability in a long run is economical. In the
present scenario, the pricing of the Electric car is in the reach of
only High-income group customers, and the question arises
whether its running cost-effectiveness can be grouped under the

canopy of the value proposition? The response for this may hold
true or false depending on usage like personal or commercial and
also on the Value addition to the product offered by OEMs, tax
incentives, and subsidy from the govt.
Further, the value proposition gets bolstered by the addition of
the following factors:

Free to drive the vehicle across villages, city, district, and State
without having to worry about the infrastructure for charging
nor the charging timelines.
Making the product available to the customers for a nominal
upfront amount.

Inculcating the Internet of things in the product Encashing the
special key point that the electrical vehicles are super economical
and a class apart from its competitors.
Cost to procure Infrastructure: This factor should also be
considered, as there are different charging methodologies and the
costing differs and they are a need for different partnership
approaches.
An analysis and comparison of the Electric car:
ACG has come up with the cost analysis module by carrying out
the testing of EVs in various real-life scenarios. Below are the
enlisted considerations:

Electric car for the general usage of one’s own self
Harnessing Electric car for commercial purpose
Stage a comparison of Electric cars with diesel and petrol cars
of a similar price segment.
The observations made from the above-mentioned
considerations have been gauged under the Ideal as well as the
actual factors. The commercial usage of an electric car as a Taxi
has scientifically proven to be more rewarding than its personal
usage. Nevertheless, the tests will have different outcomes basis
on the models and variants.
Hence the need for a Business strategy will intend to make
necessary changes in the revenue model. And to showcase that
the electric vehicle is more affordable, we have priced the EV in
line with the thermal vehicle which has the same price segment,
and have varied the operational cost or the energy usage by
renting a battery.
Three keen observations were witnessed:

There was clear visibility of savings when they were not. The
battery rental and pricing can be varied depending on the
customer’s usage and needs. Lastly, the customer can be free of
risk, as the battery-related issues are transferred to the seller end
in this case.
EV Dealer Survey:

4/30/22, 10:27 AM Indian Auto Consumer Insights Report – Autobei Consulting Group
https://www.autobei.com/autoreports/passenger-vehicle/indian-auto-consumer-insights-report/ 1/13
Indian Auto Consumer Insights Report
Indian Auto Consumer Insights Report is a special report with primary
and secondary data analytics. The Indian automobile space offers a
level playing field for various brands to perform to their potential and
enable them to be triumph in the market. The automobile brands need
to have a clear knowledge in regards to the economic and cultural
mindset of the consumers before embarking on any product
conceptualization. The above mention points act as a strong
underpinning for the cost and product models. The production planning
however remains to be the pivotal point in forecasting the overall
success ratio in a country like India.
Looking at the year 2021, we observe that the Indian car segment was
able to amass a sales volume of little more than 33 lakhs. The Indian
PV industry had a fantastic outing in the market as the Industry
registered 44% growth compared with 2020. This value equates to the
sales volume recorded prior to the COVID times

sales volume recorded prior to the COVID times.
The Dealer network plays a major role in OEM’s success in India to
reach the target segment. There is a direct positive correlation between
the number of dealers and sales volume of Car OEMs:
Maharashtra, Gujarat, Delhi. Karnataka and Tamilnadu are top states in
terms of the number of car dealers:
Luxury and High Car OEMs is having different dealer network
strategies due to their target market and buyers segment Most of them
have 1 or 2 dealers in one state-owned by a single firm.

The SUV segment seems to have no stopping at the moment as it has
emerged as the first choice for consumers. The same is evident from
the sales figure and notably, the volume sold in the year 2021 is more
than twice what was recorded in the previous year.
There was a gradual rise in the overall market share of SUV, the share
was at a meager 9% in the year 2014 and that rose to a value of 37% in
th 2021 Thi h d d i t th ll t

the year 2021. This had an adverse impact on the overall car segment,
as its hold in the market dipped to 50% in the last year from 74% which
was the case in 2014.
The key factor in the rise of SUVs in the contemporary market is
because of the advent of new models alongside a very affordable price
range which caught the buyer’s eye.
The SUV B has an almost 60% hold in the SUV market presently, and
this value is proportionately 4% higher than what was seen in the year
2020.
Experts had anticipated a boom in the economic uprise post the COVID
period. It’s absolutely true that the Indian PV industry has rejuvenated
itself over the last few years and has become more oriented towards
buyers and product choices. Since the COVID scare is still present
across the nation in bits and pieces, so 1/3rd of the potential buyers are
in the process of making up their minds to go ahead with the buying
choice.

Amidst all the problems being faced by the automobile sector of our
country, the future of the industry still seems to have a fair chance to
excel in the market and it indeed has a supreme capacity to grow
further. The Indian automobile market is one of the widely acclaimed
market spaces across the world and has always performed exceedingly
well as the demand in this particular market has never fallen behind the
threshold. Indeed, even the used vehicles are attracting buyers in the
same way as the brand new car model does.
In recent days, the automobile industry has been plagued by numerous
problems with formidable hurdles in its path to grow big. They are
facing it tough to get aligned to the digitalization, the advent of electric
vehicles and the innovative vehicle connected features, pricing factor
and most importantly it’s a challenge for them to build a sustainable
product that would last for almost half a decade from now. The ongoing
tussle between Russia and Ukraine has had its impact on the global fuel
price and this would definitely raise the prices of the fuel significantly,
and this, in turn, will have its adverse effect on the pricing of an ICE
vehicle, and overall operations at large. The advent of electric cars
from the OEM would address the issue to an extent but it can only be a
damage control method and never a permanent solution for the
problem.

The OEMs have presented new entrants to the market, the count stands
at 14 brand new and 3 reintroduced models, and these new launches
have been brought in with a strategy of offering a model as an
alternative to the existing market giants, it also aims at bridging the
space that exists between the market and also in placing the available
products in the key position.
Tata motors have given an enormous contribution by launching new
products at regular intervals. This has set up rigorous competition in
the Indian PV industry. Notably, there have been a lot of new entrants
in the SUV segment and the brands like Kia and Tata have shown their
potential to capture the market at large they even can attract new buyers
and cause a dip in the sales of other existing brands in the market. The
growth recorded in the year 2021 is immense, the SUV sub-segment
recorded an overall growth of 90%, while the mid-level MUV stood at

43% and the B1 hatchback at 43%. However, SUV D had an amazing
outing in the market as they saw a magnificent rise in their growth
which went up by 318% in 2021.
The COVID 19 impact has posed a major threat to the economy and
this has resulted in the buyers drifting away from their purchase
decisions, especially in the budget range. The manufacturers should
continue to focus on the two prime segments, the one being the value
plus and the other the premium segment, as they own altogether a
market hold of about 85% in the present market scenario.
The rise in digitization has had a great influence in the auto sector as
the customers are now willing to shell some extra money to
accommodate the new features in the variant they are buying.
XUV 700 can be looked at as a perfect example for the same as the
buyers are ready to pay a premium price for acquiring top-end features.
Also, we have observed an interconnection between the number of
sales that take place to the dealership that is present across the country.
Even the VW Taigun has been the most sought after by the customers
because of its solid looks and unparalleled interiors. The Korean brand,
Kia has evolved to be a pivotal contributor in the Indian market and it
currently ranks 5th in the PV industry as far as volume is concerned but
it’s well placed at position 3rd in terms of revenue generation.
The study which was just concluded by ACG has shown that the buyers
are considering even the minute aspect in making their buying
decisions. The study involved almost 5,500 respondents coming from
various diversities and age groups. The study focused on evaluating the
vehicle purchase experience of the buyers in the top 25 cities in India
comprising of cities, towns as well as villages. The survey also aimed
at taking note of the attitude of the buyers, their preference of channels
in acquiring the information, choice of product, cost-effectiveness of
the brands, and most importantly the service rendered to the customers
ft th l l h d d

after the sales cycle has ended.
The study has unraveled various key points that would render the
needed help to the potential buyers, as we take a leap into the
upcoming developmental period in the Indian automobile market.
The SUV segment has eyed to conquer the market by rendering the
debut car buyers with an opportunity to buy the different variants at an
attractive price offering.
There have been various innovative strategies to influence the
customers buying decisions, the best of them has been the venture of
Offering the “Next best vehicle option”.
Potential buyers are now shifting their focus on the product they
plan to own than just going with the brand reputation.
The premiums of the car are also valued on the number of best
digital features they get. So the presence of digital features in the care
is extremely paramount at this time.
The rapidly changing market has demanded a change in the used
market space. So, the employees now need to understand what the
customer really expects and then need to deliver it accordingly in order
to ensure a high level of user satisfaction.
The way ahead:
At the moment the ongoing war between Russia and Ukraine has had
its impact on various businesses globally. Once the normalcy is
restored, there will be a fall in the oil prices and it would be at the level
it was before. This would render a very good breakthrough for the
Indian car market. The increasing oil prices will enable a sharp rise in
the overall sales of electric cars. The study concluded also revealed that
there would be an intense demand for personal cars and this would take
the market a long way ahead. It is also believed that there wouldn’t be
any slowdown in the business and even if there’s any then that would
be tackled easily.
Debut buyers – new vehicle buyer

Debut buyers new vehicle buyer
Maiden buyers – Old vehicle buyers
Non-debut buyers, Replacement
Non-Maiden buyers, Additional fleet
Increasing demand for the car, SUV, and MUV and buyer’s
eagerness to own a product:
The Indian automobile customers have shown a greater affinity towards
owning an SUV and for this reason, the SUV has become the most
sought-after product in the segment. The buyers are looking to own one
between the price tag of Rs. 770,000 to 870,700 INR. The study
concluded also revealed that almost 22 percent of people mentioned
that they are ready even to trade up in order to own a car in the near
future. While many even had a wish to slightly go beyond their budget
in order to make a purchase. There were instances, where the customers
have claimed that if their existing car is priced between 500,000 to
600,000 INR then they would never mind going up by a lakh or two in
making the purchase of a car with full-fledged features.
The results from the study further stated that the SUV models priced
between 110,000 INR to 130,000 INR have set up an incredible
platform for the OEM and they are indeed making the best use of it.
The buyers are looking out for vehicles that offer superior performance
and render the best cabin and driveability experience.

The overall Market held by the SUV B, B1 hatchback, and premium
hatchback constitutes almost half of the market presence with just 27
models that are available in the market.
Impact of the brand on customers buying preferences:
The new launches in the market are doing good, and the influence of
the brand reputation is enormous in keeping up the sales performance
of these new entrants in the market. It is to be noted that the acceptance
rate of new entrants is way higher than the existing models in the
market.
Sheer competition in the market space:
The last 3 decades have been really challenging for automobile brands.
The existing domestic brands and the reputed foreign brands are all
trying their best to create their hold in the market. The contemporary
market dynamics are extremely different than what it was before, now
there has been an increasing demand by the debut buyers. The not-so-
reputed brands were able to create a small space for themselves amidst
the presence of globally reputed brands and top-notch domestic brands.
But now, such a kind of mutual presence would not last long and only
the brands which are able to strike the customer’s aspirations are the
ones that continue to exist.
In this domestic brand space, the top-performing brands enhanced their
value from 13% in 2014 to a massive 18% in 2021. This growth rate of
5% in a span of less than a decade is a significant performance factor.

The key point that needs to be observed from the study is that the
retention rates particularly in the Indian automobile market are all-time
low. The reason for it needs to be ascertained but it is clear that the
buyers are not returning in favor of the brand for which they had made
an earlier purchase. The people who responded that they would go
become and purchase a vehicle from the same brand stood at a very
poor turnout of just 10%, this number slightly grew by 11% and raised
to 21% in 2021. Astonishingly, the owners of the car which is priced at
500,000 INR and above clearly stated that they are not in favor of
making the same brand purchase the next time they plan to upgrade.
The people with this opinion stood at 32%. During the period from
2014 to 2021, 53 percent of the people have not turned up to the
previous brand they had already owned.
Tata Motors, however, brought about a revolution in the Indian market
space by coupling their top-notch innovation alongside the premium
touch to their new SUV and car models. This made the customers
prioritize Tata motors as the first choice when thinking about budget-
friendly and premium feel cars. Tata Motors has now become
synonymous with affordability and the brand that caters to every need
of the customer.
Indian automobile market holds the credit of being one among the
largest market space for vehicles. The performance of various brands in
the Indian automobile market is dependent on various factors like
customer buying preference, safety, comfort, and many more. Almost
65 percent of the participants in the survey prefer the brands that had
their roots in Germany, while others went with the renowned brand JLR
(Tata). The study has further revealed that the JLR brand would be very
well received from the Indian audience in the future and they would
gradually evolve to be the pioneers in the luxury vehicle segment. The
other foreign brands hailing from South Korea and Germany have
h h ’ d h b f l i i

caught the customer’s eye and have been successful in creating a
prominent name for themselves in the Indian market. If we make a
comparison of the Indian market with that of Chinese, then we get to
see that there is a lack of presence of a domestic brand to cater to the
demand of the Luxury vehicle, and this is what has led the foreign
brand to rule this particular segment. The study further depicts the
customers are ready to go an extra mile by shelling some extra bucks to
get the cars from the reputed brands.
There is an entirely different buying behavior and decision tree of
Rural and Urban Indian customers. In India, the market dynamics in
regards to impacting the buyer’s choice is dependent on numerous
factors. Many buyers would rely on the words of their fellow
colleagues or the people around them when they want to go ahead and
buy an automobile for personal use. Apart from this, people also
choose to fetch the relevant data from the available channels on the
internet and segregate the brands and product that suits them the most.
There has been a sharp rise in the percentage of people who throng
YouTube and other well-known automobile expert channels and web
handles to get to know the best brand and models in the market. The
obtained information will thus be used by the buyer to decide on which
specific brand to own. This trend is gradually getting popularised and
currently, 36 percent of people have utilized such e-services available
on the net. Potential buyers will squeeze in all the relevant information
from the sites and then reach out to the sales executive and would then
finalize their choice. Whereas the other group of people who constitute
about 27 percent are not that tech-savvy and won’t really rely on the
abundant information available on the internet to get any details about
the product.
The information obtained from the online and offline modes plays an
integral role in influencing the buyer’s mindset. The potential
customers avail all the details pertaining to the overall performance of
the vehicle, reliability, technical features and moreover, the buyers tend
to go through the blogs and reviews written by the existing owners. All
these layers together give an initial perception to the potential customer
about the choice they would make.
Currently, the market trend is getting revised every day after Covid 19.
The most sought option by the buyers has still been the one where the
customer directly visits the showroom and interacts with the executives
to finalize their purchase. Apart from this, customers are trying to get
as much first-hand information by referring to the genuine and popular
web pages and other handles on the Internet. The customers have
already had their expectations set prior to getting their hands on any
model. The prime factors for which the customer looks while making
their buying decision are positioning of the brand in the market,

exterior aesthetics, premium seating, best in class features and most
importantly the formidable trust a brand has created over the years
which is also known as the degree of customer-centricity.
The key factor to be noted here is that more than 50 percent of the
people were of the opinion that the internet plays a pivotal role in
rendering the needed basic overview for the most probable buyers. It is
also to be noted that why some buyers don’t rely on the internet is the
lack of accurate price mention on various portals and this itself is a
major hindrance. As the pricing of automobiles especially in the Indian
market varies from state to state depending on the tax slabs and various
other parameters. And this has made the flow of customers towards the
online platform drift towards the offline showrooms so that they can
get to know the actual price and plan on owning it as per their financial
feasibility. The male population between the ages of 18 to 40 are the
ones who prefer to visit the showroom in person than surfing the details
online. In the current scenario, even the female audience is also shifting
towards online portals for getting the details of the automobile prior to
making a purchase. They mostly prefer to go with automobile websites
and phone applications because of their detailed information and
transparency. Even the offline setups are not much behind in this run,
as there has also been an increase in visiting the car dealers in person,
availing test drives and getting valuable insights from relatives, friends,
and many more such offline engagements have evolved as the top
choice for the potential buyers.

6/2/22, 11:00 AM US Car Market Analysis and Forecast – Autobei Consulting Group
https://www.autobei.com/autoreports/passenger-vehicle/us-car-market-analysis-and-forecast/ 1/9
US Car Market Analysis and Forecast
The car market of the U.S. is one of the largest car markets in the
world. Almost all the global brands are a presence in this
developed economy and mature market.
The overall size of the car, SUV, MUV, Pickup market is about 17.2
million units in the year 2018. Ford, FCA USA, and GM Pickup/SUV
had a combined market share of 59 % in the year 2009 which
slipped to about 54 % in the year 2018. The forecast for the car
segment for the year 2019 is not quite certain. However, ACG
forecasts that the car segment will end 2019 with single-digit
degrowth.
Segment-wise Market Forecast:
Safety and comfort for the family are actually the key reasons for
the adoption of the MUV vehicles, multiple purpose suitability of
Pickup truck, and lifestyle. In the next five years of time, MUV will
certainly be the first choice of major customer groups. The
average distance cover by the Americans is about 14,000 miles per
year as mentioned by the U.S. Department of Transport. This is
one of the major reasons as to why Americans prefer bigger

vehicles.
GM, Ford, and Toyota, are the top 3 OEMs Group in the U.S. :
It looks that Detroit is in the grip of a car recession that is
marked by the collapse in the demand of traditional sedans,
other types of car bodies which accounted for 52% of the market
about 10 years ago. The buyers have made a mass exodus out of
the classic family cars, and into the sport utility vehicles or the
SUVs. The top-selling car models like the Honda Accord and the
Ford Fusion marked a record low of more than 25% of the total
sales in the United States in the year 2018, and things will only
get worse. The customer experienced that they are getting a
better value proposition in MUV vehicle irrespective of the price
tag.

Industry Trend Analysis:
We have carefully examined the influence of the vehicle
attributes, brand loyalty, Product portfolio, product line
characteristics, emotions, as well as dealerships. We have found
that nearly all of the loss in market share for U.S. manufacturers
can be explained by the changes in basic attributes of the
vehicles such as price, size, power, operating cost, resale value,
reliability, transmission type, and body type. The US
manufacturers have improved the attributes of their vehicles but
not as much as compared to the Japanese and European
manufacturers which are exactly why the result.
The Japanese automakers are manufacturing light trucks in the
United States for the avoidance of tariff and the introduction of
the minivans, SUVs, and pickups, while the European premium
OEMs are entering into SUV segment also.
GM, Ford, and Toyota, Honda are all losing their market share in
the last 10 years in the Pickup and SUV segment. By launching
new models and offers, Nissan and FCA USA are increasing their
market share of the light truck/SUV segment.
Rate of unemployment, the sentiment of consumer, disposable
income, and availability of credit are the positive key supportive
indicators of the U.S. Auto market. The recent data clearly shows
that the car industry is going to down by about 1 to 2 % in the
year 2019. The overhang of tariff wars, as well as the buying
pattern move for the used cars, has some impact on this
downfall, but it is not the key reason.

ACG analyzed what is the impact of new technologies like
driverless vehicles as well as the preferences of millennial and
Gen Z consumers, new regulations which are the contributors in
the driving of the future demand.
Now, the point to stress is to what are the factors that are
influencing the U.S. car industry. ACG developed a completely
new research model that combines macro-level qualitative as
well as quantitative factors. Now, for seeing the broader and
macro-level picture, we have considered several other factors
such as customer expectation, changes in their needs and their
wants. The customers, technology as well as the Industry
structure are changing at a rapid pace which are also to be kept
in mind. The auto industry of the U.S. is also going through
disruption and it is essential to redefine the mobility frame.
There are some customers who also prefer to buy the used vehicle
or simply take it on lease or rental. The United States of America
is having multiple ethnics in the country with several Asian and
American origin people. Each of them follows different criteria
for buying the vehicle. Asian people prefer Japanese vehicles
whereas, on the other hand, the American people prefer the
Pickup and SUV of American origin of the U.S. like FCA USA, GM,
and Ford.
In the year 2009, the car segment was having about 52 % segment
share which has come down to about 32 %. SUV, MUV and the
Pickup segment had about 48 % segment share which gained
about 20 % market share in the year 2018. The choices of the
customers are shifting towards SUV and the Pickup segment
slowly. We spent a lot of time among customers in the U.S. for a
clear understanding of their pulse for knowing the exact reasons
behind this shifting trend. The customers themselves became
advocate to recommend other customers to go for the

SUV/MUV/Pickup vehicles.
Now, there is the new trend of the expectation of the customers
that are required to be added in customer preference that is the
introduction of new technology such as connected vehicles, great
digital experience, and autonomous vehicles. The OEMs should
make it a point to add these features in their product portfolio.
These features not only attract new customers but also plays a
vital role in helping the brand to shine and position
appropriately.

The car market of the United States is a classic example of where
“Value” is more important that “Price tag”. The top ten vehicles of
the market are having inversely proportional relation with the
volume of sales with some minor exceptions.
The buying of the new car is probably the next big investment
after real estate. So, people give a lot of preference for value and
not price. The vehicle here is not only the technical subject but
also the emotional aspect as well since most of the customers
associate emotions with the same as well

associate emotions with the same as well.
The car market of the United States is in transition state and
OEMs, suppliers, as well as other stakeholders, need to have a
clear understanding of the pulse of market movement. This, in
turn, is quite helpful to create business strategies for the next ten
years. In the next ten years, the U.S. automotive industry will get
a new shape.
Customer Perception and The Customer of The Future:
Japanese and Korean automakers have developed a perception for
the manufacturing of affordable cars with a value pricing
strategy that comes with the latest technology, advanced
features, reliable performance, and striking exterior and
appealing interior with competitive prices. Premium car but at
affordable price. The automakers of the United States may have
lost the market share because of the low-value proposition of
their cars and brand loyalty of the customers towards the
Japanese and European automakers.
ACG did not conduct any survey but discussed with the customer
to read between the lines and get the pulse of the customers.
Most of the U.S. customers are ready to adopt autonomous
vehicles if they are convinced that these autonomous vehicles
technology is safe and secure enough for operating on their own.
Tesla, on the other hand, registered excellent growth. It added 2 %
thereby an increase from 3 % to 5% market share in the year 2018
that is in just one year. The reason behind this growth was due to
its customer attraction of electric technology, screen display and
a number of other good features whereas the other OEMs were
not offering such features by that point of time in 2018. After the
year 2018, all the other OEMs also started to offer most of those
features in their vehicles and as a result of which the charm for
the Tesla vehicles became weaker as per the study conducted by
ACG.
As per the ACG customer survey, more than about 80 % of the
younger millennials cite technology and infotainment features as
the ‘must-haves’ at the time of purchasing a car while on the

other hand, 61 % of car buyers use video for research. The key to a
successful car marketing campaign is creativity for tugging on
the heartstrings of the customer and be memorable.
Brand Strategy:
It is essential for the OEMs to create the future of a car brand
that has several unique & different attributes rather than the
traditional attributes. The OEMs that have a stronghold in
software & hardware technology, Understanding Customer needs,
deliver a simple solution of a complex issue, and Personalized
communication will be considering the key attributes for the
definition of a car brand.
Saying 50- or 100-years legacy will not be a catchy word in this
regard. Brand loyalty is inextricably related to developing,
maintaining, as well as protecting the market share. Mannering
and Winston (1991) found that a significant fraction of GM’s loss
in market share during the 1980s could certainly be explained by
the stronger brand loyalty which the American customers
developed toward Japanese vehicles as compared with the loyalty
that they had for American vehicles.
Product strategy:
The OEMs need to create the product strategy in three phases
1. Short term
2. Medium-term, and
3. Long term strategy
Every section has its own impact on its market share and creates
a base of loyal customers. The most basic attributes of new
vehicles such as price, size, power, operating cost, reliability
transmission type and the type of body are changing and they
influence the purchase decision.

Economic theory suggests that the product line rivalry might be
an important feature of competition in the market of the
passenger vehicle. This is because the customers have very
strongly varying preferences. These preferences can be met with a
shorter product life. ACG analysts stress the fact that it is of
immense importance for the automakers to develop attractive
product lines that can anticipate and very quickly respond to
changes in the preferences of the customers.
The Japanese automakers had a short product life cycle so that
the new technology, and features, can be integrated easily, and
quickly in the new product portfolio. Ford also realized the same
and has a plan to launch new products with a shorter product
life cycle from the years 2020 to 2023.
The introduction of key features such as tire pressure sensor and
transmission knob by the automakers creates a lot of buzzes
which in turn plays a crucial role in the acceleration of the sales.
Auto Movements in the United States:
The automakers of the United States are facing several issues in
the domestic market. The OEMs such as General Motors had
decided to close their five plants in North America for which
about 14,000 workers lost their jobs. Most importantly, as a result
of this decision, some models are also discontinued.
On the other hand, the German and Japanese OEMs investing in
the market of the United States because it is the second-largest
car market and quite attractive for foreign OEMs as well. The
customers have welcomed foreign brands because of the fact they
deliver good value.
The OEMs are focusing on electric vehicles, autonomous vehicle
and the development of cars that are well connected with digital
technology. For the purpose of winning such challenges, the
companies are investing, making JV, alliances, and mergers with
the other OEMs as well as technology companies such as
Microsoft. In the present scenario of the market, the life of the
technology and products are quite short. The OEMs also need to
invest in a clear and complete understanding of the customers
and what exactly do they want. The customers are certainly at
the center point and play a crucial role in affecting all of the
other parameters. The OEMs need to create a joint venture for
the short term objective.
In recent times, Toyota and Tesla signed the partnership contract
with Panasonic for the development of Li-ion battery for the
electric vehicles and a VW Ford partnership for the development
of the pickup trucks and Vans. On the other hand, Honda and GM

came together along with the Toyota and Mazda joint venture for
the purpose of developing autonomous vehicles. FCA and PSA
have confirmed that they are doing a 50/50 merger for the
purpose of developing the new technology to jointly developed
Electric vehicles and advanced front-wheel-drive platforms to be
integrated into the cars for the U.S. market.
These JV/Alliances also clearly indicated that the brand position,
image as well as the reputation play a much more important role
in the buying process as compared to the specifications and
features of the products.
Key Highlights of the report:
The U.S. Car, SUV, Pick up, and MUV market trend and Outlook
Value, Premium, Luxury, and Sports & high end
The market size in volume and value
Market Forecast
Key Drivers of the Industry
Macro Economy Analysis
New Regulations and its impact
Customer preference and choice
Customer buying process
Customer feedback
Product Strategy, Position, Differentiation, and Product life
cycle change
Price and Segment Analysis
OEMs Strategy Analysis
Brand perception and Strategy
Advertising impact on purchase – Digital, TV, and Print
Customer preference analysis of value, Premium, Luxury, and
High-end cars
Please send your requirement to nidhi.singh@autobei.com for
customizes reports.

6/2/22, 11:02 AM Indian Truck Market Analysis and Forecast 2022 – Autobei Consulting Group
https://www.autobei.com/autoreports/commercial-vehicle/truck/indian-truck-market-analysis-and-forecast-2022/ 1/7
Indian Truck Market Analysis and
Forecast 2022
The post-pandemic period aided the automobile industry to
rejuvenate itself by boosting its growth and rendering them
opportunities to scale better. Taking a look at the Indian truck
market, we observe that the overall performance for this sector
was better as the sales figure shot to 0.64 million from 0.47
million units starting from 2020.
After the Covid impact, some OEMs are performing better than
the Pre Covid time. Maruti Suzuki, Ashok Leyland, and Tata
Motors increased their market share in the different Truck
segments. Mahindra lost in almost every truck segment.
Indian Truck Market Analysis and Forecast 2022

The growth rate of the Indian Truck Market recorded in 2021
stood at 37% compared to CY 2020. Also during this period, the
Heavy-duty truck segment performed better in the 4th quarter,
and this rate of growth is exceedingly well as compared to the
pre-pandemic times.

The recent rise in the omicron cases globally has played a
spoilsport by considerably bringing down the sales of Mini truck,
LDT, HDT. Many customers have pulled from their plans of
owning these commercial vehicles due to the COVID scare and
the unforeseen future ahead.
In Mini Truck Segment, Maruti Suzuki overtakes Mahindra in Q3
CY 2021.ACG published a report on how Maruti Suzuki strategy to
become the market leader in this segment.

Also, check our exclusive Report on the Indian Electric Truck
market Assessment and Forecast
As mentioned earlier the Q4 and Q3 in 2021 paved a way for some
tremendous growth across segments. The Indian tipper market
saw its growth climbing up by 15%, even the Rigid Haulage and
Tractor segment put up a commendable performance in bringing
their sales and recording a growth of 18% and 21% respectively.
The growth rate that was witnessed in the above-mentioned
segments couldn’t create magic in the Pickup Truck segment.
Ever since the start of 2020, this segment is facing tough times
and its market share is diminishing drastically. No considerable
growth was recorded even during the Q3 and Q4 of 2021, and this
period was almost standstill as far as this specific segment is
concerned.

Taking a look at the Tipper segment reveals to us that the growth
particularly in this segment is not linear and is oscillating from
10 % to 8% throughout the last two years i.e from 2020 to 2021.
Majorly, the Tipper Market has its roots in the GVW 18.5T to 34T
category and they tend to have a firm hold on its overall
operations and business. The current scenario has opened new
avenues for the Construction and Mining industry. Nevertheless,
the demand has shot up sky-high. This has led to the creation of
heavy market demands for the various Tipper models comprising
even the premium segment and the MDT tipper. The
construction and other activities related to the Real estate would
continue to excel in the future thus providing a constant growth
curve for this segment.
The heavy-duty tipper segment has been backed by various
formidable key performing brands in the industry. Tata Motors
and Ashok Leyland are the prominent ones in the segment and
have always held the top position irrespective of the market
situation. Their firm hold on the market is evident from their
total Market presence in this segment. Tata enjoys an overall
presence of 49%, while Ashok Leyland is in 2nd position with a
40% market share. Tata’s flamboyant run in the market
continued even to the 18.5 to 28T GVW segment and their
dominance seems to just get stronger shortly. Eicher has also
evolved to be a key contributor in the segment by being at the
2nd spot. As we move towards the 34 to 40T segment, Tata has
been successful in holding a key spot in this too. And they are
even more prominent in this segment as their share stands at a

even more prominent in this segment as their share stands at a
whopping 58%. Another premium brand Volvo is trying to get
things right in this segment and has managed to get a 12%
market share over the 4th quarter of the last year.
The market dynamics in the MDT segment are very different
compared to the other segments we have just discussed. Tata
couldn’t continue their uninterrupted streak of exceeding its
market hold. Their market share of 80% in the 2nd quarter of
2019 was reduced to a meager 40% by the last quarter of 2021. This
segment is now being led by Ashok Leyland as they hold a market
share of about 25% currently. It is then closely followed by Eicher,
which climbed to this spot by taking over about 8% from its close
competitor Tata motors. Overall, Ashok Leyland continues to hold
a vital position even in the 10 to 14.5T segment by being able to
turn around the overall market presence of 50% and 74%
respectively.
Another prominent player in this list is the Rigid Haulage. Over
this segment, the 14.5 to 16.2T has garnered much attention from
the customers, and by the virtue of this, it has been able to
establish itself as one of the biggest and exceedingly growing
segments. These models have found their extensive application in
the e-commerce industry, and the growing demand for the same
has opened up a new growth journey for this segment.
The credit for being the gigantic segment in the Rigid Haulage
goes to the 18.5T to 28T and 45 to 49T segments. Whereas the
quick growth in this truck category has been recorded by the 34

to 40T segment as they have consistently maintained their
growth curve at 48% for the two consecutive quarters of the year
2021.
As the sales volume of Pickup Truck has come down in 2021 Q1
and Q2 but it bounced back in Q4 2021. Also, the difference seen
between LDT and MDT is not that significant taking into
consideration the pre-pandemic time and the last quarter of 2021.
The previously discussed Rigid Haulage segment is experiencing a
never-before boom in the market at the moment. And the
Tractor trailer model couldn’t get the expected turnover in the
present market scenario and its sales figure hasn’t seen a
significant rise starting from the 1st quarter of 2018.
Other reports:
Indian Truck Market Pricing and Product Strategy
Model and City level Truck & Bus Data Forecast
Contact info@autobei.com to buy the Full Report

Tata Motors Product and Customer
Analytics
Tata Group is an iconic brand based out of India. The Tata brand is
respected and trusted worldwide.
Tata Motor Automotive business is primarily divided into two main
categories:
Commercial Vehicle (CV)
Passenger Vehicle (PV)
In the last few years, Tata Motors experienced losing its grip on some
of the automotive segments and sub-segments of Car, Truck, and Bus.
Tata Motors increased its market share by launching a new product
range in SUV and Car Segment.

There are basically five main components a business relies on:
Brand Experience, perception or image
Customer’s consideration to Trust, like, and buy it
Customer Satisfaction
Rich Products portfolio,..no but the suitability of product as per
customer needs, demands, and expectation
Tata Motors greatly started to focus on its Product range, Price point,
Features, Designing, Style, Customer segment, and Dealer
involvement.
Tata Motors, a company formally known to have established as the
offering of affordable product range, appears to have been drifting
away from that image. The company now manufactures vehicles for
ValuePlus, Premium, and Highend segment in the passenger Vehicle
category for medium Middle, and Upper Middle Class, and Affluent
income class. There is no product available for lower and Elite class
income class. Launching new models for these two income group
customers could increase Tata Motor’s market share by 5 to 7%.

The Medium income Middle-class customer segment owns 67% of
sales of cars, SUVs, and MUV shares and is one of the most significant
segments in the Indian PV segment. At present, Maruti regulates this
segment with 12 models while Tata has only 4 models.
In this segment, the Relative market share of Tata Motors climbed from
11 to 17.5% between 2017 to 2020. However, Tata remains to be the
second-best performer in this segment by increasing 6% relative market
share with just 4 models.
Tata Motors Segment, Product, and Market Analysis: Upper
Income Middle-Class Group:
The Upper-income Middle-class group customer contributes 11%
segment share in Tata Motors SUV Sales in 2020 as per ACG
Customer Analytics Report 2021.

Most of the customers of this income group still prefer Hyundai and
Kia SUV brands. Tata Motors dominates over 5% market share and its
relative market share increased from 12.8% to 14.7%. Harrier is
playing a significant role in the customer journey. It brings customers
to the point where they like the vehicle design, look, and style of the
Harrier or Tata’s product range (Connect with Harrier). This induces
them to buy and make curious to know about the other Tata’s products
also. It is creating the base for 4 customer attributes: Benefits,
Capabilities, Differentiation, and Value proposition. Now it is
accelerating the other model sales like Tiago, and Nexon.
Current Scenario of Tata’s Product portfolio, and Position:
Each of these newly launched cars & SUVs within these segments is
targeting a different group of income group, Lifestyle, Age, and some
are focused on family, some are focused on sporty, etc.
Tata Motor’s main point of difference within this group of competitors
is its commitment to functional “Made in India” design at a relatively
affordable price like Tata Harrier, Tata Nexon, Tata Tigor. Another
reason is the aggressive sales team from dealers.

We have surveyed to know “why do you buy a Tata”? In most of the
answers, that Model name supports the corporate brand Tata, like
People, love “Tata Harrier” design, Style, size, and features. As per our
Survey, 67% of customers changed their steering from other brands to
Tata Harrier.
Tata Motor was not rated specifically high on any of the attributes in
2013, this implies a possible problem within the Product quality &
brand image and we saw the major changes in some of the attributes in
2021. This upgrade helps the Tata brand to gain double-digit market
share in some specific segments.
Tata Punch launched Impact Analysis:

Tata Motor’s Commercial Vehicle Business Strategy:
A commercial vehicle is a different game with a variety of different
rules, and it functions on various other measurable market dimensions.
Tata Motor is also undertaking different market and product strategies
for its Truck and Bus Business segment.
Tata Motors is a market leader in most of the Commercial Vehicle sub-
segments. In the Overall CV segment, its market share is stagnant at
around 42% from the last 5 years.
In the Truck Segment, Tata lost 1% market share, while in Bus segment
its market share is almost stagnant. Under the CV segment, Tata
Motors is continuously launching new products and upgrading the
current product portfolio by adding new features.

In Mini Truck, Tata ACE is one of the top-selling products from the
very commencement of this segment. But now it is challenged by a
new player in this segment—Maruti Suzuki’s Super carry. Due to its
torque, it became the first choice for e-commerce application users.
There are two key competitors of Tata Motors in the Pickup segment,
one is Mahindra and the other is Ashok Leyland which is very
aggressive to gain market share in this segment. This is a growing
segment in India. Customers are looking mainly for bigger vehicles for
city-level applications.
LDT and MDT are smaller segments compared to Small trucks and
Heavy Duty Trucks. Currently in both the segment, Tata Motors is at a
dominant position. In Heavy Duty Truck Segment, Tata Motors is
maintaining more than 50% market share for over a decade. This is the
segment where the company can upgrade the product features to
increase the productivity of the drivers.
The company is the second-largest OEM in the Heavy Bus segment.
Based on different applications of the buses, Tata Motors need to add
new features to attract customers.

There are some possibilities to increase the quality at an extra price. In
this segment, the company could work on Electric Buses. Eicher
Motors is targeting this segment by launching new products.

The Medium Duty Bus segment is dominated by both Tata and Eicher.
Both are targeting a different segment. The light Duty Bus segment is
also dominated by Tata and Eicher. In this segment, the purchase
criteria differ from that of heavy Duty Bus segment.

The Minibus segment is having only one major player which is Force
Motors with a 72% market share. The Travelercomfort driving features,
the number of variants available, and its turning radius made it exercise
control over this segment. Tata Motors tried hard to acquire the
segment share but still, it is struggling even after some good products.
Contact Info@autobei.com to buy a full Report.

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