hyundai verna and maruti sx4 comparison using concepts of micro economics

Download Hyundai Verna and Maruti SX4 Comparison using concepts of Micro Economics

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Hyundai Verna and Maruti SX4 Comparison using concepts of Micro Economics

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WHICH CAR WILL

VROOM AWAY

Group 4Ashish Bhasin (8), Ashish Dubey (9), Benz Thomas (11), Pratik Sharma (32), Vivek Sharma (47)

A PROJECT TO UNDERSTAND CAR BUYING PATTERN FOR

HYUNDAI VERNA FLUIDIC AND MARUTI SUZUKI SX4USING MICROECONOMICS CONCEPTS

A project for Dr. Biswajit Nag by Group 4, Section A (MBA IB PT 2012-15)

I KNOW A LOT ABOUT CARS. I CAN LOOK AT ANY CARS HEADLIGHTS AND TELL YOU EXACTLY WHICH WAY ITS COMING. Mitch Hedberg

CONTENTSIndian four wheeler market Attributes being promoted Sales figures Verna and SX4 Demand Curve Verna and SX4 Price Elasticity Price sensitivity analysis Conclusion

Indian four wheeler industrySource: SIAM

Installed capacity in millions 3.88 Passenger Vehicles - 15.07% Major players Mahindra, Hyundai,

Maruti, Tata, Ford, Renault, Honda, Nissan, etc. Models Alto, WagonR, Dsire, Bolero, Swift, i10, Indica + vista, Innova, Verna, SX4, etc.

Total SalesTOTAL SALES Jan-Sept 2012

Source: www.motorbeam.com

City 18%

Verna 32%

Vento 14%

SX4 6% Fiesta 8%

Verito 9% Rapid 13%

Passenger cars manufactured vs GDP2500.000 1200Source: Automotive report by MarketLine www.Indiastat.com

1000 2000.000

800 1500.000thousand units India GDP*

600

1000.000 400

500.000 200

0.000 2006

2007

2008

2009

2010

0 2011

What do you first consult?First consultationprevious owners

Online

Friends/relatives

First consultation

Magazines

Auto TV programs 0 5 10 15 20

Attributes being promotedVERNA Fluidic design Commanding exterior Technology with design More features than the

SX4 Gentleman among cars Amazing driving experience Commanding exterior Plush interiors Big on mileage Loaded with entertainment Spacious and comfortable Safety Power

price Luxury Power Safety Eco Friendliness

Model wise sales figures70006000 5000

Source: www.motorbeam.com

40003000 2000 SX4 Verna

10000 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12

Jul-12

Aug-12

Verna Demand Curve1200000

1150000

1100000Series1 1050000

1000000Avg Verna price assumed at INR 913403.5

950000 0 2 4 6 8 10 12 14

Demand drivers for VernaVerna14 12 10 8 6 4 Verna

20

SX4 Demand Curve1400000 1200000 1000000 800000 600000 Series1

400000200000 0 0 5 10 15 20

Avg SX4 price assumed at INR 882555.25

Demand drivers for SX4SX414

1210 8 6 4 2 0 SX4

Verna price elasticity% age increase in Verna price 10 20 30 5 2 Number of customers from Verna 13

At a 10% price increase the elasticity is 6.5 i.e >1 more than unit elastic At a 20% price increase the elasticity is 1.25 i.e >1 more than unit elastic At a 30% price increase the elasticity is 0.33 i.e