1 / 59

Automobile Industry - Event held by NeoNiche

NeoNiche is a top event management & experiential marketing company in Mumbai, India, offering services in event planning, digital marketing & PR with best practices& key strategy development. Contact Us Now!

Neocomms
Download Presentation

Automobile Industry - Event held by NeoNiche

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 INDUSTRY LOOK BOOK 20 1 9-20 AUTOMOBILE AUTOMOBILE IN D U S T RY a nd the g e a ring o f tre nd s...

  2. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 OVER OVERVIEW

  3. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 OV ERV IEW The Indian auto industry became the 4th largest in the world with sales increasing 9.5 per cent year-on-year to 4.02 million units (excluding two wheelers) in 20 1 7. It was the 7th largest manufacturer of commercial vehiclesin 20 1 7. The Two Wheelers segment dominates the market in terms of volume owing to a growing middle class and a young population. Moreover, the growing interest of the companies in exploring the rural markets furtheraided the growthofthe sector. India is also a prominent auto exporter and has strong export growth expectations for the near future. Automobile exports grew 20.78 per cent during April-November 20 1 8. It is expected to grow at a CAGR of 3.05 per cent during 20 1 6-20 26. In addition, several initiatives by the Government of India and the major automobile players in the Indian market are expected to make India a leader in the two-wheeler and fourwheelermarketin the world by 20 20 . 4THLARGEST auto marketin 20 1 7withsales increasing 9.5 percent year-on-yearto 4.02 million units (excluding two wheelers) in 20 1 7. 7THLARGEST manufacturer ofcommercial vehicles in 20 1 7. PRESENCE OF established domestic and international original equipment manufacturers (OEMs). STRONG MARKET in terms of both, the domestic demand and exports. Source: Media Reports, Press Releases, Department of Industrial Policy and Source: Media Reports, Press Releases, Department of Industrial Policy and Promotion (DIPP), Automotive Component Manufacturers Association of India Promotion (DIPP), Automotive Component Manufacturers Association of India (ACMA), Society of Indian Automobile Manufacturers (SIAM), Union Budget 20 1 5 (ACMA), Society of Indian Automobile Manufacturers (SIAM), Union Budget 20 1 5- - 1 6, Union Budget 20 1 7 1 6, Union Budget 20 1 7- -1 8 1 8

  4. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 MARKET SHARE Domestic automobile production increased at 7.08 per cent CAGR between FY1 3-1 8 with 29.07 million vehicles manufactured in the country in FY1 8.During April-November 20 1 8,automobile production increased 1 2.53 per cent year-on-year to reach 21 .95 million vehicle units.  Overall domestic automobiles sales increased at 7.01 per cent CAGR between FY1 3-1 8 with 24.97 million vehicles getting sold in FY1 8. During April-November 20 1 8, highest year-on-year growth in domestic sales among all the commercial vehicles at 31 .49 per cent followed by 25.1 6 per cent year-on-yeargrowthin the sales ofthree-wheelers.  categories was recorded in Premium motorbike sales in India crossed one million units in FY1 8. . During J anuary-September 20 1 8,BMW registered a growth of 1 1per cent year-on-year in its sales in India at 7,91 5 units. Mercedes Benz ranked first in sales satisfaction segment according to J D Power 20 1 8 India sales satisfaction index (luxury).  in the luxury vehicles Sales of electric two-wheelers are estimated to have crossed 55,000 vehiclesin 20 1 7-1 8.  Source: Department of Industrial Policy and Promotion (DIPP), RNCOS Source: Department of Industrial Policy and Promotion (DIPP), RNCOS Reports, Media Reports, Press Information Bureau (PIB) Reports, Media Reports, Press Information Bureau (PIB)

  5. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 INDUSTRY BREAK- UP Share Of Each Segment In Total Production Volume (FY1 8) Two Wheelers Three Wheelers Commercial Vehicles Passenger Vehicles Source: Source: Hospital Market India by Research on India, Aranca Research

  6. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 INDUSTRY BREAK- UP Over the past few years four specific regions in the country have become large auto manufacturing clusters, each present with a different set of players. Delhi Delhi Gu Gur rg ga ao on n F Far arid ida ab ba ad d Mumbai Mumbai Pun Pune e Nas Nashi hik k Aurangabad Aurangabad Kolkata Kolkata J ams J amsh he edpu dpur r Chennai Chennai Bengaluru Bengaluru Hosur Hosur Source: Source: ACMA, Aranca Research

  7. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 INDUSTRY BREAK- UP NORTH NORTH Ashok Leyland Force Motors Piaggio Swaraj Mazda AmtekAuto Eicher Honda SIEL Maruti Suzuki Tata Motors Bajaj Auto Hero Group Escorts ICML J CB Yamaha Mahindra Suzuki Motorcycles                  WEST WEST Ashok Leyland Ashok Leyland Bajaj Auto Bajaj Auto Fiat Fiat GM GM M&M M&M Eicher Eicher Skoda Skoda Bharat Bharat Forge Tata Tata Motors Volkswagen Volkswagen Renault Renault- - Nissan Nissan J ohn J ohn Deere Merecedes Merecedes Benz Benz Tata Tata- -Hitachi Volvo Volvo- -Eicher Motors Deere Forge Hitachi Eicher EAST EAST Tata Motors Tata Motors Hindustan Hindustan Motors Motors Simpson & Simpson & Co International International Auto Forgings Auto Forgings J MT J MT Exide Exide Co SOUTH SOUTH Ashok Leyland Ashok Leyland Ford Ford M&M M&M Toyota Toyota Kirloskar Kirloskar Volvo Volvo Sundaram Sundaram Fasteners Fasteners Enfield Enfield Hyundai Hyundai BMW BMW Bosch Bosch TVS Motor TVS Motor Company Company Renault Renault- - Nissan Nissan TAFE TAFE Daimler Daimler Caterpillar Caterpillar Hindustan Hindustan Motors Motors Source: Source: ACMA, Aranca Research

  8. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 KEY PLAYERS Each segment in the Indian automobiles sector has few established key players which hold major portion of the market. Market leader in the passenger vehicles segment and held around 50 per cent market share in the segment in FY1 8. The company recorded its highest ever sales of 1 ,779,574 units during 20 1 7-1 8, a year-on-year increase of1 3.4 per cent. The company crossed its cumulative production milestone of four million two wheelers from its Gurugram-based plant in 20 1 8.   Market leader in the commercial vehicles segment  commercial vehicles sales increased 26 per cent year-on-year to 39,859 units in August 20 1 8. Tata unveiled its Tata Tigorelectric car during the 20 1 8 auto show and won a bid from Energy Efficiency Services Ltd (EESL) in 20 1 7 under which Tata can sell 1 0 ,0 0 0 units of its TigorEV.  Hero MotoCorp and Honda are the top two players in the two-wheelers segment, with market share of 37.67 per cent and 30 .9 per cent, respectively in Q1 FY1 9. Bajaj Auto recorded domestic motorcycle sale of 1 .57 million units in December 20 1 8, up by 39 per cent over December 20 1 7. Honda Cars India had a cumulative growth of 3.7 per cent year-on-year by selling 1 34,797 units during April- December 20 1 8.    Bajaj Auto is a leader in three wheelers with 58.1 5 per cent market share in FY1 8. Piaggio Vehicles is the second leader in three wheelers with 24.0 5 per cent market share in FY1 8.   Source: Aranca Research, Autocar India, Financial express Source: Aranca Research, Autocar India, Financial express

  9. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 REC ENT DEV ELO PMENTS Rising income and a large young population. Greater availability of credit and financing options. Demand for commercial vehicles increasing due to high level of activity in infrastructure sector.   Growing Growing demand demand  Clear vision of Indian government to make India an auto manufacturing hub.   boost to the sector. Introduction of a new National Auto Policy and Faster Adoption and manufacture of Hybrid and Electric Vehicles (FAME) II for a clean future in mobility to be launched soon. Policy Support Policy Support   Improving road infrastructure. Established auto ancillary industry giving the required support to boost growth. 5 per cent of total FDI inflows to India went into the automobiles sector.   Support Support infrastructure infrastructure and high and high investments investments  Note: NEMMP Note: NEMMP National Electric Mobility Mission Plan National Electric Mobility Mission Plan Source: Society of Indian Automobile Manufacturers (SIAM), Source: Society of Indian Automobile Manufacturers (SIAM), Aranca Aranca Research Research

  10. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 REC ENT DEV ELO PMENTS POLICIES AND INITIATIVES Support from the Indian government in the form of new policies and initiatives has been crucial in development and growth of Indian automobile sector. Setting up of R&D centres at a total cost of US$ 388.5 million to enable the industry to be on par with global standards. Under National Automotive Testing And R&D Infrastructure Project (NATRIP), five testing and research centres have been established in the country since 20 1 5   NATRiP NATRiP  Department of Department of Heavy Heavy Industries & Industries & Public Public Enterprises Enterprises Worked towards reduction of excise duty on small cars and increase budgetary allocation for R&D Weighted increase in R&D expenditure to 20 0 per cent from 1 50 per cent (in-house) & 1 75 per cent from 1 25 per cent (outsourced).   The Automotive The Automotive Mission Plan Mission Plan 20 1 6 20 1 6- -26 (AMP 20 26) (AMP 20 26) AMP 20 26 targets a 4-fold growth in the automobiles sector in India which includes the manufacturers of automobiles, auto components & tractor industry over the next 1 0 years.  26 Source: Source: Aranca Aranca Research Research

  11. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 REC ENT DEV ELO PMENTS POLICIES AND INITIATIVES Support from the Indian government in the form of new policies and initiatives has been crucial in development and growth of Indian automobile sector. Planning to implement Faster Adoption & Manufacturing Of Electric Hybrid Vehicles (FAME) till 20 20 which would cover all vehicle segments, all forms of hybrid & pure electric vehicles. Under the scheme, the Government of India is planning to provide grants of up to Rs 1 0 5 crore (US$ 1 6.33 million) to each of the selected city with population of more than a million, for buying electric buses, cars and three- wheelers in FY1 8. Additional funds will be provided for charging infrastructure. The Government of India has shortlisted 1 1 cities in December 20 1 7 to have electric vehicle based public transportation systems under this scheme. Number of vehicles supported under FAME scheme has increased to 1 92,451 in March 20 1 8 from 5,1 97 in J une. FAME Phase-I has been extended up to March 31 , 20 1 9. The Government of India is expected to launch the second phase soon.  FAME FAME  Source: Source: Aranca Aranca Research Research

  12. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 REC ENT DEV ELO PMENTS INVESTMENT SCENARIO Indian automobile sector has seen huge investments from both domestic and foreign manufacturers. FDI inflows to the sector were US$ 1 9.29 billion in automobiles sector between April 20 0 0 J une 20 1 8. Planning to double its current investment level of about US$ 2.5 billion over the next five years Aims to raise its market share to 5 per cent by 20 22. To increase the Chennai Plant capacity to 40 0 ,00 0 units a year in a few years time. The company plans to launch eight new car models in India by 20 21 .Nissan opened its first global digital hub at techno park in Trivandrum in December 20 1 8.    Nissan Nissan Toyota is planning to invest US$ 1 65 million on its new engine plants and projects.  Toyota Toyota Hyundai Hyundai Plans to invest US$ 1 billion in India by 20 20 .  Chinese state owned auto major, SAIC Motor has announced investment of over US$ 31 0 million in India. It is expected to start operations in 20 1 9. In March 20 1 8, SAIC announced that its subsidiary MG Motor India will invest Rs 5,00 0 crore (US$ 775.8 million) in India over the next six years.  SAIC SAIC Increased the plant capacity of 20 ,0 0 0 units per year in Chakan Plant, which is the largest for any luxury car manufacturer in India. Expansion of MIDC, to invest US$ 244 million for capacity expansion in Chakan, Pune.  Mercedes Mercedes- -Benz Benz  Note: MIDC Note: MIDC Maharashtra Industrial Development Corporation; MoU Maharashtra Industrial Development Corporation; MoU Memorandum of Understanding Memorandum of Understanding Sources: Company websites, media sources, Sources: Company websites, media sources, Aranca Aranca Research, Research, Autocar Autocar India India

  13. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 REC ENT DEV ELO PMENTS INVESTMENT SCENARIO Indian automobile sector has seen huge investments from both domestic and foreign manufacturers. FDI inflows to the sector were US$ 1 9.29 billion in automobiles sector between April 20 0 0 J une 20 1 8. As of October 20 1 8, Honda Motors Company is planning to set up its third factory in India for launching hybrid and electric vehicles with the cost of Rs 9,20 0 crore (US$ 1 .31 billion), its largest investment in India so far.  Honda Motor Honda Motor Company Company Superbike seller Motoroyale Kinetic is planning to establish a plant in Supa, Maharashtra with an outlay of Rs 1 2 crore (US$ 1 .71 million) by 20 21 .  Motoroyale Motoroyale Kinetic Kinetic  Note: MIDC Note: MIDC Maharashtra Industrial Development Corporation; MoU Maharashtra Industrial Development Corporation; MoU Memorandum of Understanding Memorandum of Understanding Sources: Company websites, media sources, Sources: Company websites, media sources, Aranca Aranca Research, Research, Autocar Autocar India India

  14. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 EMERG ING TRENDS With sales of around 40 ,0 0 0 luxury cars in 20 1 7, India became the 27th most attractive luxury market in the world. The luxury car market in India is expected to grow at 25 per cent CAGR till 20 20 . Audi is launching its luxury electric SUV in India in 20 1 9. The electric SUV will be called e-Tron. Mercedes-Benz crossed 1 6,0 0 0 annual sales for the first time in India and sold 1 6,236 units in 20 1 7-1 8, recording a 22.5 per cent growth during the year. The company ranked first in sales satisfaction in the luxury vehicles segment according to J D Power 20 1 8 India Sales Satisfaction Index (luxury). Premium motorbike sales in India crossed one million units in FY1 8. Volvo India sold a record of 2,638 units in calendar year 20 1 8, a jump of 30 per cent over 20 1 7. BMW crosses 1 0 ,0 0 0 unit mark for the first time in a calendar year 20 1 8. BMW along with Mini grew 1 3 per cent compared to 20 1 7. Mini sales rose by a staggering 66 per cent in 20 1 8.    Luxury Vehicles Luxury Vehicles    Most of the firms including Ford & Volkswagen have adapted themselves to cater to the large Indian middle class by dropping their traditional structure and designs. This allows them to compete directly with domestic firms making the sector highly competitive. BMW India has launched its online sales channel in India to enable customers to browse all products, choose a preferred dealership and even book a test drive online.   Catering Indian Catering Indian needs needs  Note: CAGR Note: CAGR Compounded Annual Growth Rate Compounded Annual Growth Rate Sources: Society of Manufacturers of Electric Vehicles, Sources: Society of Manufacturers of Electric Vehicles, Aranca News Articles, News Articles, Aranca Research, Research, Moneycontrol Moneycontrol, ,

  15. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 EMERG ING TRENDS Carmakers such as BMW, Audi, Toyota, Skoda, Volkswagen & Mercedes-Benz have started providing customised finance to customers through NBFCs. Auto finance business of NBFCs in India is expected to grow at a CAGR of 1 5 per cent by FY20 on the back of better macroeconomic   New Financing New Financing Options Options infrastructure and rural areas. HDFC Bank Ltd started providing customised car loans to its customers in Mumbai, which will help them to buy cars at a lower EMI.  Note: CAGR Note: CAGR Compounded Annual Growth Rate Compounded Annual Growth Rate Sources: Society of Manufacturers of Electric Vehicles, Sources: Society of Manufacturers of Electric Vehicles, Aranca News Articles, News Articles, Aranca Research, Research, Moneycontrol Moneycontrol, ,

  16. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 STRATEG IES ADO PTED Hero MotoCorp will invest Rs 2,50 0 crores (US$ 387.9 million) by FY21 to increase its production capacity in India. Hyundai announced it will be increasing its production capacity of its Chennai plant from 71 3,0 00 to 750 ,0 0 0 units in 20 1 9. With the total investment of around US$ 1 63.7 million, Honda Motorcycle & Scooter India expanded its production of Activa in three variants at Ahmedabad plant. As of October 20 1 8, Honda Motors Company is planning to set up its third factory in India for launching hybrid and electric vehicles with the cost of Rs 9,20 0 crore (US$ 1 .31 billion), its largest investment in India so far. In November 20 1 8, Mahindra Electric Mobility opened its electric technology manufacturing hub in Bangalore with an investment of Rs 1 0 0 crore (US$ 1 4.25 million) which will increase its annual manufacturing capacity to 25,0 0 0 units.     Capacity Capacity Addition Addition   Source: Media Sources Source: Media Sources

  17. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 STRATEG IES ADO PTED Mahindra has launched its new electric car and Tesla motors is also set to enter the Indian market. Suzuki Motors will source its premium cars with lithium ion batteries from its Gujarat battery plant from FY21 . India's electric vehicle (EV) sales increased to 25,0 0 0 units during FY 20 1 6-1 7 and are poised to rise further on the back of cheaper energy   vision to see 6 million electric and hybrid vehicles in India by 20 20 . Avan motors, an electric scooter start up announced in December 20 1 8 that it plans to have total sales of 1 0 0 ,00 0 units in the coming two to three years.  Electric Electric Vehicles Vehicles  Vehicle (EV) company, Sunra, is planning to enter into Indian markets and set up a factory in Bangalore, Karnataka. As of December 20 1 8, local arm of Finland based energy company Fortum India is planning to install about 720 charging facilities for electric vehicles by 20 20 in seven cities in India. EV Motors, in partnership with DLF, ABB India and Delta Electronics, is also planning to invest US$ 20 0 million to set up 6,50 0 electric vehicles (EV) charging stations in the next five years. They launched Plugngo, first public electric vehicle charging outlet in Delhi in November 20 1 8.    Source: Media Sources Source: Media Sources

  18. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 STRATEG IES ADO PTED Honda is planning to launch three new car models in India by 20 20 and will localise the engines to keep the prices low. Ashok Leyland has planned a capital expenditure of Rs 1 ,0 0 0 crore (US$ 1 55.20 million) to launch 20 -25 new models across various commercial vehicle categories in 20 1 8- 1 9. Hero MotoCorp will launch five new two- wheelers in FY1 9. Hyundai will launch its first electric vehicle in India in 20 1 9. J awa motorcycles, competing Royal Enfield in 30 0 -cc segment are sold out till September 20 1 9. Maruti Suzuki is planning to start testing prototypes of its electric vehicles in India in October 20 1 8. Superbike seller Motoroyale Kinetic Pvt Ltd is planning to develop 30 0 cc-50 0 cc bikes in India by 20 21 . The company is also planning to set up a plant in Supa, Maharashtra with a capacity of 60 ,0 0 0 units. As of November 20 1 8, Volvo Cars India Ltd is planning to launch four plug-in hybrid vehicles in the next three years.     Launch of Launch of new models new models     Source: Media Sources Source: Media Sources

  19. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 G G OV ERNMENT INITIATIV ES The Government of India encourages foreign investment in the automobile sector and allows 1 0 0 per cent FDI under the automatic route. Some ofthe recentinitiativestaken by the GovernmentofIndia are: The manufacturing centre and an R&D hub. government aims to develop India as a global  Under NATRiP,the Government ofIndia is planning to set up R&D centres at a total cost of US$ 388.5 million to enable the industry to be on parwithglobal standards  The Ministry of Heavy Industries, Government of India has shortlisted 1 1 cities in the country for introduction of electric vehicles (EVs) in their public transport systems under the FAME (Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles in India) scheme. The government will also set up incubation centre forstart-upsworking in electric vehiclesspace.  In February 20 1 9,the Government ofIndia approved the FAME-II scheme with a fund requirement of Rs 1 0 ,000 crore (US$ 1 .39 billion) forFY20-22.  Source: Media Reports, Press Releases, Department of Industrial Policy and Promotion Source: Media Reports, Press Releases, Department of Industrial Policy and Promotion (DIPP), Automotive Component Manufacturers Association of India (ACMA), Society of (DIPP), Automotive Component Manufacturers Association of India (ACMA), Society of Indian Automobile Manufacturers (SIAM), Union Budget 20 1 5 Indian Automobile Manufacturers (SIAM), Union Budget 20 1 5- -1 6, Union Budget 20 1 7 1 6, Union Budget 20 1 7- -1 8 1 8

  20. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 G G OV ERNMENT INITIATIV ES Following are the achievements of the government in the past four years: Number of vehicles supported under FAME scheme increased from 5,1 97 in J une 20 1 5 to 1 92,451in March 20 1 8.During 20 1 7-1 8, 47,91 2 two-wheelers, 2,20 2 three-wheelers, 1 85 four-wheelers and 1 0 light commercial vehicles were supported under FAME scheme. Under National Automotive Testing And R&D Infrastructure Project (NATRIP), following testing and research centres have been established in the country since 20 1 5  International Centre for Automotive Technology (ICAT), Manesar  National Institute for Automotive Inspection, Maintenance & Training (NIAIMT),Silchar  National Automotive Testing Tracks (NATRAX),Indore  Automotive Research AssociationofIndia (ARAI),Pune  Global Automotive Research Centre (GARC),Chennai SAMARTH Udyog Industry 4.0 centres: centres are being set up in the country for promoting smart and advanced manufacturing helping SMEs to implement Industry 4.0 (automation and data technology).   cum  exchange in manufacturing Source: Media Reports, Press Releases, Department of Industrial Policy and Promotion Source: Media Reports, Press Releases, Department of Industrial Policy and Promotion (DIPP), Automotive Component Manufacturers Association of India (ACMA), Society of (DIPP), Automotive Component Manufacturers Association of India (ACMA), Society of Indian Automobile Manufacturers (SIAM), Union Budget 20 1 5 Indian Automobile Manufacturers (SIAM), Union Budget 20 1 5- -1 6, Union Budget 20 1 7 1 6, Union Budget 20 1 7- -1 8 1 8

  21. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 RO AD AHEAD The automobile industry is supported by various factors such as availability of skilled labour at low cost, robust R&D centres and low cost steel production. The industry also provides great opportunities for investment and direct and indirect employment to skilled and unskilled labour. Indian automotive industry (including component manufacturing) is expected to reach Rs 1 6.1 6-1 8.1 8 trillion (US$ 251 .4-282.8 billion) by 20 26.Two-wheelersare expected to grow 9 percentin 20 1 8. References: Media Reports, Press Releases, Department of Industrial Policy and Promotion (DIPP), Automotive Component Manufacturers Association of India (ACMA), Manufacturers (SIAM),UnionBudget20 1 5-1 6,UnionBudget20 1 7-1 8 Society of Indian Automobile Exchange Rate Used:INR 1= US$ 0.0 1 4as ofMarch 1 ,20 1 9 Source: Media Reports, Press Releases, Department of Industrial Policy and Promotion Source: Media Reports, Press Releases, Department of Industrial Policy and Promotion (DIPP), Automotive Component Manufacturers Association of India (ACMA), Society of (DIPP), Automotive Component Manufacturers Association of India (ACMA), Society of Indian Automobile Manufacturers (SIAM), Union Budget 20 1 5 Indian Automobile Manufacturers (SIAM), Union Budget 20 1 5- -1 6, Union Budget 20 1 7 1 6, Union Budget 20 1 7- -1 8 1 8

  22. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 IN NEW S  Fiat Chrysler Auto Expands India Footprint; Has 82 Dealerships In India https://auto.ndtv.com/news/fiat-chrysler-auto-expands-india- footprint-has-82-dealerships-in-india-20 20 988  Vehicle Sales In India Saw A Decline Of8% In March 20 1 9:FADA https://auto.ndtv.com/news/vehicle-sales-in-india-saw-a-decline- of-8-in-march-20 1 9-fada-20 20 855  Productioncurbs help auto firmsreduce inventory https://economictimes.indiatimes.com/industry/auto/auto- news/production-curbs-help-auto-firms-reduce- inventory/articleshow/68823937.cms  Motors, controllers, and sensors:This German firm is ready to cash in on the Indian EV opportunity https://prime.economictimes.indiatimes.com/news/6880331 0/trans portation/motors-controllers-and-sensors-this-german-firm-is- ready-to-cash-in-on-the-indian-ev-opportunity  Utility vehicle sales hita speed breaker https://economictimes.indiatimes.com/industry/auto/auto- news/utility-vehicle-sales-hit-a-speed- breaker/articleshow/6880 390 5.cms  Bengaluru based start-up Emflux launched EV One at Auto Expo 20 1 8 http://www.emfluxmotors.com/

  23. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 G LO BAL TRENDS 2 0 19  Connectivity (IoT)  AutonomousDriving https://www.forbes.com/sites/danielnewman/20 1 9/01 /1 7/top-5- digital-transformation-trends-in-automotive-for- 20 1 9/#39b0cb6d1 5bb  EASCY - Electrified, Autonomous, Shared, Connected, Yearly updates https://eu-smartcities.eu/sites/default/files/20 1 8-03/pwc-five- trends-transforming-the-automotive-industry.compressed.pdf  Sales growthwithcrude oil prices decreasing  Software as a key differentiator  Loweremissions https://rsmus.com/what-we-do/industries/industrial- products/automotive/automotive-trends-to-watch-in-20 1 9.html  Smartphone integration  Sensorcraze  Modularcars (withrise ofelectrification) https://content.intland.com/blog/the-road-ahead-20 1 9-trends-in- automotive-technology

  24. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 EXPERIENTIAL EXPERIENTIAL LEA RNING S

  25. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 The Rise of Electric: Riding on 2 wheels The potential is huge.India is the and motorcycles with annual domestic sales exceeding 1 9 million in the fiscal year ended March 31 , 20 1 8 - six times that of car sales over the same period. biggest market for scooters Electric scooters make up a fraction of the total but are growing fast. In fiscal 20 1 7-1 8,sales more than doubled to 54,80 0 from a year ago while electric car sales fell to 1 ,20 0 from 2,000 over the same period, according to data from the Society of Manufacturers of Electric Vehicles(SMEV). In May 20 1 7, form a new policy that suggested electrification of all new vehicles by 20 30 by mainly offering subsidies to buyers. economic policy think tank began discussions to The proposal faced resistance from carmakers and auto parts companies that considered the shift too sudden and ambitious, and the targetwasdialled backto 30 %. India is now working on a new policy which aims to incentivise investments in electric vehicle manufacturing, batteries and smart charging,instead ofonly giving benefits on sales. The government also wants to push the use of electric vehicles for public use, a revolution already led by three-wheeled auto- rickshaws.Sales ofthese vehicles,ubiquitous on Indian city roads,are expected to double to 935,000 units a year by 20 23, according to consulting firm P&S MarketResearch. The EV marketin India was about25,000 units atthe end of20 1 6-1 7. Electric cars and four-wheelers accounted for less than 8% of total sales,according to Society ofManufacturers ofthe Electric Vehicles. A study conducted by the group showed that 4,330 EVs were sold in Gujarat, 2,846 in West Bengal, 2,467 in Uttar Pradesh and 2,388 in Rajasthan during the fiscal year.

  26. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 Favourable macroeconomic and demographic trends Currently, the automotive sector contributes more than 7 percent to GDP.The Automotive Mission Plan 20 1 6 26 sets an aspiration to increase the contributionto 1 2%. A numberofeconomic trends could help in meeting thistarget.Rapid urbanization means the country will have over 50 0 million people living in cities by 20 30 1 .5 times the current US population. Rising incomes will also play a role,as roughly 60 million households could enter the consuming class (defined as households with incomes greater than $8,000 per annum) by 20 25. At the same time, more people will join the workforce. Participation could reach 67 percent in 20 20 ,as more women and youth enter the job market,raising the demand formobility. Some of them would leap straight into four-wheeler segment, and others will graduate from two-wheelers to four-wheelers. Over 44% of the consuming-class households will be in 49 growth clusters for example, Delhi is expected to have the same GDP per capita at purchasing power parity as the entire country of Russia in 2025. Citieslike Delhi are a sweetspotforcarmanufacturers to target. In the future, these macroeconomic and demographic trends could shift pockets of growth in passenger-vehicle market. Mini cars and hatchback cars have been the mainstay for the automobile industry in India, with share around 50% and growth of 6 to 7% between financial year20 1 4and 20 1 7. These segments will continue to maintain a dominant position, but the majority of growth is expected to come from new segments such as compactSUVs,sedans,and luxury vehicles.

  27. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 Continued government focus on supporting the industry Through the Automotive Mission Plan, the National Electric Mobility Mission Plan (NEMMP), and other initiatives, the government seeks to achieve two objectives facilitate long-term growth in the industry and reduce emissions and oil dependence. In the Automotive Mission Plan 20 26, the government and industry set a target to triple industry revenues, to $30 0 billion, and expand exports sevenfold, to $80 billion. To meet these aims, it is estimated that the sector could contribute more than 60 million additional direct and indirect jobs, and the result could be improved manufacturing competitivenessand reduced emissions. To tackle emissions, the government seeks to bring local standards up to par with global standards, enabling India to leapfrog from BS- 4 to BS-6 emissions (the Euro 6 equivalent) by 2020 (Exhibit 1 ). Additionally, India has implemented Corporate Average Efficiency norms in which the manufacturers have to improve their fuel efficiency by 1 0 percent between 20 1 7 and 20 21and by 30 percentormore from 20 22. Fuel Additionally,to address pollution from old vehicles,the governmentis working on an initiative that focuses on formulation of end-of-life or scrappage policies. It plans to give incentive for the adoption of these policies with the help of lower taxes, discounts on purchase prices,and simple compliance processes. To reduce dependency on oil imports, the government is promoting adoption of alternative fuels through FAME2,which is an extension of the original FAME (Faster Adoption and Manufacturing ofHybrid and Electric Vehicles) initiative. Where electric vehicles (EV) and hybrid EV buyers, FAME2 is expected to incentivize electrification of the public-transport fleet of buses and taxis, as well as facilitate demand for all types of alternative fuel. Furthermore, to enable immediate adoption, a lower goods and services tax of 1 2% is applied to battery electric vehicles, compared with31to 48% forothervehicles. 1 offered incentives to

  28. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 The development of India as a manufacturing hub The World Economic Forum ranks India manufacturing index, which assesses the manufacturing capabilities of more than 1 0 0 countries. The initiative has played an important role in elevating In the past three to four years, India improved on nine out of ten parameters forease ofdoing business. 30thon the global in position. Although there is still a long way to go before India becomes a leader in the manufacturing arena, companies in the automotive sector are embracing this opportunity to leverage India as a hub for low-cost, high-quality products. After creating proposition in mini cars, India is gaining global recognition in the compactsedan and SUV category. a strong value

  29. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 The potential for global disruptions The global automotive industry is undergoing disruptions that will reshape it in unexpected ways, and India will be no exception to this. Four key trends will shift markets and revenue pools, change mobility behaviour, and build new avenues for competitionand cooperation. a cascade of Electrification has just started to take off in India. Factors such as declining prices of batteries and supportive policies from the government are stimulating the 2,352 units of electric vehicles were sold.7 However, early signs of growth are visible through an order for 1 0 ,000 electric vehicles by the energy-service Efficiency Services Limited. Likewise, local governments in ten cities, with populations of one million or more people, have placed orders for 390 electric buses during phase one.In the next phase, the order bookis expected to be in the range of1 ,000 e-buses. growth. In 20 1 7, only company known as Energy The pros and cons of electrification continue to evolve. Reduction in emissions and less dependency on oil imports are clear advantages of electrification. The level of adoption of electric vehicles will determine its impact on the automobile industry. According to industry experts,people carriers like buses,two- and three-wheelers, luxury passenger vehicles, and light commercial vehicles could see maximum penetration by 20 30 . This will be followed by other passenger vehicles, medium- and heavy-commercial vehicles, and constructionequipment,whichwill take longerforEVsto penetrate.

  30. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 THE WAY THE WAY FORWARD

  31. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 FORE FORECAST

  32. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 FO REC AST The first month of the calendar year 201 9 took off in a slow lane, marred by tough market conditions like high-interest rate, vehicle price hike and low consumer sentiment. Majority of automakers either posted a marginal increase in sales or registered a decline. However, only a few exceptions like Honda Cars India, Ashok Leyland, and Suzuki Motorcycles continue to post double-digit growth which is primarily because of stock adjustments at the dealership level. Moreover, experts believe that the automotive industry will continue to face the slump due to uncertainty in the market because of elections and low consumer marketsentiment. However, few believe that recent change in taxation will help market to revive in the upcoming months especially in two wheeler and small car segment. Country's largest carmaker, Maruti growth ofmarginal 1 .1 % in domestic sales at1 42,1 50 units inthe month of J anuary 20 1 9 as against 1 40,60 0 units dispatched to the dealers across the country in J anuary 20 1 8. Maruti Suzuki Suzuki India saw a marginal On another hand,Mahindra the domestic sale at 23,872 in J anuary, compared to 23686 units in the same month last year. Despite new launches like Marazzo and Alturas, the company failed to get incremental sales in the utility vehicles space. The company saw almost flat growth, as it sold 22,263 units of utility vehicles last month, compared to 22,235 units in J anuary 20 1 8. Mahindra & & Mahindra Mahindra posted 1per cent growth in

  33. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 FO REC AST Tata Tata Motors Motors domestic sales of passenger vehicles witnessed a drop of 1 1 %, at 1 7,826 units in J anuary 20 1 9, as compared with 20 ,055 units sold the same monthlastyear. Similarly, Toyota its domestic sales at 1 1 221units in the month of J anuary 20 1 9. it sold 1 2,351units in the domestic marketin J anuary 20 1 8. Toyota Kirloskar Motor (TKM) reported a decline of 9.1 % in The only exception in the lotis Honda double-digit growth of 23% on the back of Amaze and WR-V. The company sold a total of 1 8,261units in J anuary 20 1 9, compared to 1 4,838 units in the corresponding monthin 20 1 8. Honda cars India which posted strong India's Manufacturers (SIAM) has forecasted a single digit growth for overall vehicles sales in FY20, owing to rise in commodity price, election, below normal monsoonand recentrepo rate cutby RBI. apex industry body, Society of Indian Automobile According to SIAM, passenger vehicle sales are projected to grow between 3-5 per cent and commercial vehicle at 1 0-1 2 per cent.The two-wheeler segmentis expected to grow between 5-7 percentand three wheelersegmentis pegged to grow between 7-9 percent. Driving this growth will be overall infrastructure and Gross domestic product that is estimated to grow at 7 percent during FY20. Other reason cited for growth was pre-buying of BS-IV vehicles in FY20 before BS-VI implementation and several new launches in the currentfiscal year.

  34. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 THE V ERDIC T Sport Sport Utility Utility Vehicles Vehicles Sport Utility vehicles or SUVs are a trending globally, sales of SUVs are overtaking the sedans and hatches at speed.In India, this global trend is catching on,in 20 1 7-1 8,we saw a 7times growth in SUV sales compared to passenger vehicles. Most of the Manufacturers are introducing SUVs in their product line up, even in the luxury and uber luxury segmentofthe market,SUVsrule the roost. Tata is most awaited SUV, The Landrover based launch towards the end of J anuary 20 1 9, while Nissan is poised to bring the KICKS. Mahindra will be entering the Compact SUV segment with the XUV30 0 . Hyundai will be updating its TUCSON with a facelift, The big boy Hyundai Santa Fe is expected to hit the Indian shores in 20 1 9 as well. KIA Motors is arriving in India with its KIA SP-Concept SUV, reports suggest its likely to named KIA Trezor. The Renault Duster is due for an upgrade, The New Duster, unveiled in 20 1 7 Frankfurt Autoshow is expected to hitthe showrooms towards the end of20 1 9. is slated to SUVs are the wheels of choice in the luxury segment and the luxury manufacturers are bringing their complete arsenal of SUVs to India. BMW is slated to bring the all-new X7, X5, X4 and X2. While Audi is bringing the all-new Q3 and Q8 to the party. After 1 2 launches in 20 1 8,Mercedes Benz ispoised to bring the New GLE to India.

  35. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 THE V ERDIC T Automatic Automatic Transmissions Transmissions With ever-growing traffic situation in our country, automatics provide the best comfort and ease Transmission technologies like AMT/TC/CVT/DCT/DSG are available in India and the sales figures show us a growing trend of purchasing automatics. of driving. Multiple Automatic Most of the Manufacturers are offering automatics in their product lineups. India being a price conscious market, the introduction of the Automated Manual Transmission (AMT) gearbox has been a key factor in generating interest in automatics in a traditionally manual gearbox oriented society. Today cheapest offering from Maruti or Hyundai has an Automatic Variantgiving the buyeran option even at the entry level. We expect to see more manufacturers bring automatic variants of the carsand SUVsin 20 1 9.

  36. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 THE V ERDIC T Features Features and and Creature Creature Comforts Comforts Android Auto, Apple Carplay, Ventilated Seats, Connected Cars, Climate Control Systems and Sunroofs were high on the checklist of buyers in 20 1 8.Moving forward to 20 1 9 we expect manufacturers to include more features apart from things mentioned. 360-degree camera a feature only available in higher-end vehicles is present in upcoming new SUV The Kicks. Similarly, the mobile app based connected features will be supported by more manufacturers. Auto Headlamps, Wipers and ORVMs with keyless entry and push-button startsystem have become a norm in 20 1 8. In 20 1 9 we expect to see more cars with 360 camera systems, LED lighting technology, Start/Stop systems to increase efficiency.

  37. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 THE V ERDIC T Safety Safety Tech Tech The awareness to vehicle safety is very low in India. But Global New Car Assessment Program or GNCAP is making a difference.Recently Tata Nexon got5 Starrating forAdultCrash Testing.The government is planning to come outBharatNCAP forIndia in 20 1 9.Manufacturers are taking notice and with Automotive Industry Standard 1 45 (AIS 1 45) coming into action from March 20 1 9, Dual FrontAirbags will become a standard across all cars along with Speed warning buzzer and reverse sensors. Anti lock braking systems (ABS) are gaining traction with the manufacturers as well.All two wheelers above 1 25cc will require to have ABS in 20 1 9. New technologieslike Electronic Brake distributions(EBD), Cruise Control and Adaptive Cruise Control are expected to reach budget segments. These safety features will help further reduce and avoid road accidents. The Government aims to reduce road accidents in India by 50 percentby 20 20 .

  38. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 THE V ERDIC T Petrol Petrol over over Diesel Diesel Ithas been one ofthe mostprogressive decisions in India to leapfrog directly from Bharat Stage IV (BS-IV) emissions standards to BS-VI in 20 20 . This will narrow down the gap between diesel and petrol emissions substantially. Available market information suggests that nationally, the share of diesel in the sales of sedans and small cars hasfallen to 23 percent,from close to halfin 20 1 2-1 3. Delhi has also reported as much as a 1 6 per cent drop in diesel fuel sales due to a decline in car numbers. While initially, the diesel SUV market remained bullish, petrol SUVs have gained ground quickly, Most manufacturers are bringing petrol variants of their SUVs. The share of petrol SUVs a rarity a couple of years ago five-fold,from 3 per cent in 20 1 2-1 3 to 1 6 per cent at the end of 20 1 7- 1 8. All big diesel car makers have started to roll out more petrol versions. has increased This trend will continue in 20 1 9, petrol will slowly become the fuel of choice forbuyers.

  39. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 EMERGING EMERGING TRENDS

  40. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 Cloud Powered Automotive Industry There is a lot of buzz around the use of cloud technology in the automotive industry in India.From design and operation to servicing, cloud technology will be increasingly used at every stage to reduce costsand eliminate any scope forwastage. Industry 4.0 orthe Fourth Industrial Revolution is bringing a significant transformation in automation technologies. With Internet of Things and Cognitive Computing, the automotive industry is taking more determined steps towards cloud-powered design and engineering activities.

  41. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 Connected Cars Smart driving is going to be another popular automotive trend in 20 1 9, owing to the recent innovations in Vehicle-to-everything (V2X) technology. This technology is driven towards ensuring better connectivity between drivers, passengers and a car. Cars will be connected withsmartphones to provide betteraccess to drivers. Further, Vehicle-to-Vehicle (V2V) and Vehicle-to-Infrastructure (V2I) technologies will make it possible for a car to communicate with other vehicles on the road and with the infrastructure. Consequently, drivers can adjust their speed and distance in response to changing road conditions.

  42. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 Automotive AI Artificial Intelligence is already a buzzword in the automotive industry in India, and is going to transform its processes to a greater extent in 20 1 9. Automobile engineers development of accurate voice-control systems. Further, several developments are happening in the field of shared vehicles, which can easily recognize preferences of passengers and make their journey more comfortable. are working on the Automotive companies are also working on enhancing capabilities for image recognition and processing. This will help in making journeys in self-drivencars more secure.

  43. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 Migration to Bharat Stage (BS) VI India is currently following BS IV emission norms to put a cap on the emission ofhydrocarbon,nitrogen oxide and particulate matter from vehicles. However, with the increasing vehicle penetration across different cities, India is likely to adopt BS VI norms by April, 20 20 . Vehicle manufacturers in India have already started working on new emission guidelines, which include a mandatory OBD (on-board diagnostics) forevery vehicle. Automobile manufacturers will be ably supported by ERP software for automobiles that will help capture the imagination of the Indian consumers looking to purchase their cars or upgrade their current model.Some ofthe features ofERP software forautomobiles are: Manage Manage R&D Most of the top-rated automobile software solutions offer computer- aided design (CAD) system integration to minimize rework. You can also collaborate with your OEMs via Internet, execute accurate product configuration and even automate Bill of Materials (BOM) and Engineering Change Control(ECC) to reduce human errors. R&D and and Product Product Design Design: : Optimization Optimization of By using an ERP Software for Automobile, you can augment forecast accuracy for just-in-time (J IT) manufacturing and also reduce wastage. You can automate your communication with different vendors and customers through Electronic Data Interchange (EDI). Furthermore, you can identify in real time which vendors are supplying materials as per your requirements vis-à-vis cost,time and quality. of Supply Supply Chain Chain: : Streamline Streamline Production By making use of an automobile ERP solution you can lower the lead times to ensure faster delivery; simplify estimation, quoting and scheduling to maximize the capacity needs; and augment quality throughrobustlottraceability and integrated quality control. Production: :

  44. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 A Year Of Wows And Woes Internet Internet Of IoT and AI technologies will continue to revolutionize the automotive sector, driving unprecedented transformations across vehicle and device connectivity, autonomous driving, electric powertrains, and shared mobility. Think of your vehicle becoming a mini-office with your in-vehicle personal digital assistant making experience safer,more productive,and less fraught. Of Things Things ( (IoT IoT) ) And And AI AI Unleash Unleash Transformation Transformation: : the driving China China Takes After a decade of sales growth, the Chinese automotive juggernaut finally stumbled,with the passenger vehicle market declining in 20 1 8. Expect a slowing economy, the growing uptake of shared mobility modes, the continued popularity of public transportation, and an increasingly saturated SUV market to clip the wings of the Chinese dragon. Takes A A Tumble Tumble: : Ride Ride- -hailing hailing IPOs Expect some mega blockbuster ride-hailing IPOs in 20 1 9.Among the big names set to hit the public market are Uber, Lyft and DiDi, with valuations beating those of well-established car companies who have been building cars forover75 years. IPOs Go Go Supersize Supersize: : The The Future Future Of Public private partnerships, reinforced by Big Data and data analytics, will power resource-efficient, flexible and on-demand multimodal mobility solutions. This will dovetail with new policy initiatives aimed at promoting streamlined and sustainable urban transportation. At the same time, expect more white label journey planning apps forB2Band travellers. Of Mobility Mobility Is Is Multimodal Multimodal: :

  45. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 A Year Of Wows And Woes A A Connected Connected Environment A connected vehicle ecosystem is closer than we imagine. From powertrains and advanced driver assistance systems to connected services and smart interiors, cars are becoming more connected both internally and externally. Business models ranging freemium where connected features are offered either as a demo, charged one off or are subscription based to short and long term subscriptions with one time, monthly and yearly payment models will evolve to keeping pace with this highly networked and connected environment. J ust check out strategy of offering an à lacarte menu of options where you can buy connected carfeatures on demand. Environment With With Features Features On On Demand Demand: : from new e-Tron launch The The Vehicle Vehicle As Baskin your own little (automotive) marketplace.From the comfort of your car, access a whole host of on-demand contextual services ranging from fuel and parking, food ordering and payments, restaurant reservations, hotel bookings, navigation, alerts on offers from your preferred dealership and information on connected brands and valuable offers. As Marketplace Marketplace: : Autonomous Autonomous Shuttles Forget all those sci-fi films. The day is not far when into an autonomous shuttle or a self-flying taxi in the real world. Car manufacturers, mobility service technology companies are furiously pushing to be the first to debut theirvisionofautonomous shared transportation. Shuttles And And Taxis Taxis Zoom Zoom Closer Closer To To Reality Reality: : be hopping providers and autonomous

  46. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 SOCIAL MEDIA SOCIAL MEDIA TRENDS

  47. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 Excerpts from Social Media Week Social Social media media and and the the purchase purchase process process According to Danielle Shamos, VP of Revenue West Coast, Adaptly, 90% of new vehicle buyers who used social media in their decision process feel thatitinfluenced theirdecision.  87% ofcarbuyers use a discovery platform during auto research  31 % of social media users consider Facebook to be the primary platform thatinfluences them to make purchase decisions  1in 4 of new vehicle buyers use Twitter as an input to their vehicle purchase decision  Snapchat users are 2.4x more likely to be interested in a new vehicle launch thannon-Snapchatusers When buying a vehicle,an average of1 4.5 hoursare spent:  Talking withothers(0.4hours)  Researching/shopping withprint(0.3 hours)  Withthe dealership/sellerwhere purchased (3 hours)  Visiting otherdealers/sellers (1 .8 hours)  Research and shopping online (8.8 hours) The The path path to to purchase purchase Although the customerjourney has changed,there is no singular path to decision-making and the familiar marketing mantra of right place, righttime,rightmessage isclearly in place forMazda. The key success factor is to align content for the right audience and the right time throughout the initial consideration set, active evaluation stage, the moment of purchase plus the post-purchase experience.Mazda is investing more resources at the customer, who is engaging more withsocial media and more withvideo,evolves. has set the bar for all of Media and importance of leveraging personalization in the customer journey. need to serve the rightmessage to move them down the funnel. commented Stacey Fairbanks, Mazda when Manager Analytics, stressing the

  48. AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 Excerpts from Social Media Week The The importance importance of of video video: : Knowing that customers are researching more online makes video a key componentforsocial:  4x as many consumers prefer watching videos about a product to reading aboutit  65% of automotive shoppers report narrowing down their car choices afterwatching a video. Measuring impact is key to knowing that social media is generating results. As consumer attention continues to shift, and learning,said Fairbanks. always testing

  49. Sell through Social Platform AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 Marketing 66% of car owners and buyers that have registered Facebook accounts have seen a Facebook ad about a car and clicked on it. This not only shows the extent to which social media has attracted people to use its services but also that adverts concerning vehicles have a large and receptive audience The The Vehicle Vehicle Purchasing The role that social media plays in the automobile industry is far more than merely attracting buyers through coming up with catchy adverts. In fact, with each passing day, there is a significant increase in the number ofcar-buying transactions thattake place over various social media platforms.With social media apps such as Vero among many others, the car-purchasing process has been made much easier. Their primary objective is to make online purchases appear more as they would in real life, with all sorts of transactions being facilitated. This includes cheap automobile pieces to high-end automobile . Purchasing Process Process Has Has Moved Moved Online Online Manufacturers Manufacturers Focus We have to admit that a car` s looks have always been a crucial factor to consider when buying it. However, with the rapid growth in the use ofsocial media in the automobile industry,there is a need for a car` s appearance to be atitsbestmore thanbefore. . Focus on on Appearance Appearance Now Now More More than than Ever Ever This is because the most popular and highly used social network platforms such as Instagram emphasize that their users are sharing pictures.It comes as no surprise that cars frequently show up in these pictures, with most users always eager to flaunt their latest vehicle acquisitions. For most Instagram users, especially the rich ones, posting pictures of their vehicles on this platform to acquire many is one ofthe highlightsoftheirsocial lives.

  50. Sell through Social Platform AUTOMOBILE INDUSTRY LOOK BOOK 20 1 9-20 Marketing Because of this, car brands are incorporating social media to link them directly to their target market. Other than manufacturing glamorous-looking cars, they go an extra step to post visual content that showcases these vehicles on their official social media accounts. By so doing, they can reassure potential buyers that their cars would lookgreaton theirsocial media posts. Car Car Sellers Sellers Extend Initial Initial Contact Contact Social media platforms are of essential value to car sellers because they provide a platform where they can reach their customers at a personal level even after their initial contact. This is made possible via the creation of advertisements that are highly personalized and tailored according to a client` s tastes and preferences. With the numerous ads that are available online, it is quite easy for a buyer to be swept off their feet by better offers from salespeople elsewhere. However, with this feature, a car-seller can follow up on potential buyers by sending personalized content via social media networks. Because buying a vehicle isn` t a spontaneous decision to make, this helps in convincing customers to settle fortheircarbrand. Extend Their Their Relationship Relationship with with Customers Customers Beyond Beyond

More Related