Brand Recall

Topics: Advertising, Automotive industry, Brand Pages: 9 (3064 words) Published: April 2, 2009
Research Paper

“Brand recall of car manufacturing companies (in India)”


While automobiles were introduced to India in the late 1890's, the manufacturing industry only took off after independence in 1947. The protectionist economic policies of the government gave rise in the 1950's to the Hindustan Motors Ambassador, which is still ubiquitous in the roads and highways of India. Hindustan Motors and a few smaller manufacturers such as Premier Automobiles, TATA Motors, Bajaj Auto, Ashok and Standard Motors held an oligopoly until India's initial economic opening in the 1980's. The maverick Indian politician Sanjay Gandhi championed the need for a "people's car"; the project was realized after his death with the launch of a state-owned firm Maruti Udyog Suzuki which quickly gained over 50% market share. The Maruti 800 became popular because of its low price, high fuel efficiency, reliability and modern features relative to its competition at the time. Tata Motors exported buses and trucks to niche markets in the developing world. The liberalization of 1991 opened the flood gates of competition and growth which have continued up to today. The high growth in the Indian economy has resulted in all major international car manufacturers entering the Indian market. General Motors, Ford, Toyota, Honda, Hyundai and others set up manufacturing plants. Rolls Royce, Bentley and Maybach are examples of the few high end automobile manufacturers which entered India in the recent years. The Tata Nano is at the lower end of the price range costing approx. Rs.1.25 Lackhs. The construction of expressways such as the Mumbai-Pune expressway have opened up new touring opportunities. The expected launch of a Formula One circuit in New Delhi is expected to spark public enthusiasm for a motor sporting industry. The automobile industry in India has grown to eleventh largest in the world with an annual production of approximately 2 million units. India is the expected to overtake China as the world's fastest growing car market in terms of the number of units sold and the automotive industry is one of the fastest growing manufacturing sectors in India. Because of its large market (India has a population of 1.1 billion; the second largest in the world), a low base of car ownership (7 per 1,000 people) and a surging economy, India has become a huge attraction for car manufacturers around the world. The automotive industry directly and indirectly employs 13 million individuals in India. The industry is valued at about US $34 billion contributing about 3.1% of India's GDP (nominal). India's cost-competitive auto components industry is the second largest in the world. Though several major foreign automakers have their manufacturing bases in India, the Indian automobile market is dominated by domestic companies. Maruti Suzuki is the largest passenger vehicle company, Tata Motors is the largest commercial vehicle company while Hero Honda is the largest motorcycle company in India. Other major Indian automobile manufacturers include Mahindra & Mahindra, Ashok Leyland and Bajaj Auto. Prime Minister Manmohan Singh in 2007 said that the building of 'Brand India' in the world was powered by the Indian automotive industry meeting global standards. He described the automobile industry as a 'sunrise sector' of the country's economy which 'like a beautiful butterfly' had come out of its protective cocoon and now showing its wares across diverse continents. "The success of the Indian automobile and auto components industry is a proud symbol of the success of Indian enterprises in this new era of globalization. Brand India has now begun to make its mark on the world stage," he further added. The automobile industry has been using marketing communication functions (like advertising, personal selling, publicity, etc) and media for decades but how they are selected and used has significantly changed over the years. The Recant changes are due to the...

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