Presentation Points on Car Accessories Market in India

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Car Accessories – India
January 2011

Executive Summary
Car accessories market is expected to grow as the younger generation is looking to convert their cars into an entertainment zone It has been expected that car accessories market will reach INR X bn by 2014 growing at a CAGR of Z% – Accessories for luxury car segment alone accounts for INR X – Y bn in 2010

Market

Latest car accessories like Product 1, 2, 3, 4 and 5 are becoming the need of the hour for latest models Drivers Challenges – Higher Cost of Accessories – Competition from Unorganized Players

– Favourable Demographics

Issues & Challenges

– Development of Automobile Sector – Used Car Market – Growing Youth

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Company 2 Company 4

– Increasing Traffic Problem

Car accessories market is dominated by a large number of X players Accessories market also includes retail chains which is a one stop shop where customer can get all the domestic as well as foreign brands

Competition

Major Domestic Players
Company 1 Company 3

Major Foreign Players
Company 5 Company 7 Company 6 Company 8

CAR ACCESSORIES MARKET IN INDIA 2011.PPT

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•Market Introduction •Market Overview •Drivers and Challenges •Competition

CAR ACCESSORIES MARKET IN INDIA 2011.PPT

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Younger generation looking to convert their cars into an entertainment zone will develop the market Car Accessories – Overview
• Car accessories market is expected to grow as younger generation is looking to convert their cars into an entertainment zone

Market Size and Growth
INR bn d Z% s q r t

Demand is not just for Product 1 but also for product 2, 3, 4 and 5

• Development of the car accessories market has also shattered the old perception that expensive cars are better With good accessories, even low cost cars can be compared with relatively costlier ones

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c b a 0 p 2010

2011e

2012e

2013e

2014e

Share of Expenditure on Accessories
Segment 2 Segment 1 S2%

• It has been estimated that entertainment accessories, such as product 1, 2, 3, 4 accounts for a major share of the car accessories market Product 1 are an essential accessory for any car Besides entertainment accessories, product 2, and 3 is also in huge demand

• It has been estimated that accessories for luxury car segment alone accounts for INR X – Y bn of the market in 2010 S1%
Source: CAR ACCESSORIES MARKET IN INDIA 2011.PPT

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Drivers & Challenges – Summary

Drivers
Development of Automobile Sector

Challenges
Used Car Market Favourable Demographics Growing Youth Increasing Traffic Problem Higher Cost of Accessories Competition from Unorganized Players

CAR ACCESSORIES MARKET IN INDIA 2011.PPT

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Customer will have more bargaining power as competition between X and Y players increases Competition – Overview
• Car accessories market is expected to face stiff competition due to the X and Y players vying for a larger market share. This leaves much of the bargaining power in the hands of customers • Car accessories can be bought from various channels such as X and Y players X players sells good quality branded product with service warranty mainly sourced form local markets or through imports Accessories market is dominated by Y players offering low price product and the product is generally sourced either through import or from small scale domestic manufacturers – Market constitutes of product X manufactured from locally assembled parts, catering mainly to price conscious customers

• To overcome the competition, X players have also diversified its range of products so as to provide complete solution to the car owners Car manufacturers are now using accessories to differentiate their cars from competitors – Players such as Company 1 have started selling branded accessories through its selected outlets

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Type 1 Segment 4 Type 2 Type 3

Segment 1 X Players Segment 2 Y Players Segment 3
Source: CAR ACCESSORIES MARKET IN INDIA...
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