Even if there’s a very small number of Indian consumers that could buy a Tesla, that number is growing rapidly. If we look at and dive into what the Indian economy looks like: India’s GDP Growth Rate: Its is growing rapidly. I think its important to look at the growth rate to see where this is headed rather than how small they are now. With government promoting sustainability and increasing educated population it will become a huge piece of electronic vehicle market around the globe. India’s GDP: It is lagging significantly behind China and USA despite this big population. India’s Population: Their population is growing faster than China’s, may even surpass China. India has 1.3 billion people. Right now, just in terms of population, we can say that the opportunity is pretty big. Target Location We are basically going to target metropolitan cities from India. These cities particularly have population over 4 million. Delhi, Mumbai, Kolkata, Chennai, Hyderabad, Bengaluru, Ahmedabad, Lucknow are those cities. Why these cities from India? Mumbai is the city of dreams and its India’s largest city. Also, it is known as the financial and commercial capital of India as it generates 6.16% of total GDP. It is one of the most expensive market in the world. Bengaluru is the third largest hub for high net worth individual and its also known as the Silicon Valley of India because of the large IT sector and MNC’s. The head office of Maruti Suzuki is in Delhi and it’s the capital of India Lucknow is among top cities of India in terms of GDP. The major industries include automotive, cars, machine, tools etc. Hyderabad is also one of the largest contributors to the GDP and is seen as an emerging metropolitan city. One third of India’s automobile industry is in Chennai. Kolkata and Nagpur were ranked as fastest growing city in India in terms of household annual income. Joint-Venture – Tesla and Maruti Suzuki
With more than 50% market share, Maruti Suzuki is #1 player in the automobile sector in India. Thus, entering in the Indian market in a joint venture with Maruti will advantage Tesla as it will have a huge customer base. Maruti has a brand loyalty and recognition among Indian customers, even in remote corners of the country. Maruti has been known to produce the best compact car in India (Maruti 800, introduced in 1983 and popular even today). Therefore, any new car by Maruti has a hype in the Indian market even today. The maintenance cost of both Maruti cars and Tesla cars is less. This is the USP for Maruti and would advantage Tesla. Maruti is one of the oldest automobile companies in India and the trust on the brand name is high. For most kids born in 1980’s and 1990’s, Maruti has been the first car they saw in their family (car owned by their parents), thus, the sentimental and emotional value associated with the brand is more than any other.
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- Summer '14
- Automobile, Electric car, Suzuki, Automobile industry in India