Valuenotes Connect – July 2015

ValueNotes Connect
Welcome to the July issue of ValueNotes Connect.

The Indian automotive industry is expected to see substantial growth in the next decade, despite near-term concerns. With a vehicular penetration of only 15 cars per thousand persons, the country is one of the most promising auto markets in the world. While the luxury car segment is miniscule when compared to the global average, some analysts believe that the country’s enormous individual wealth will make India a top-3 luxury car market in the next five years. Poulomi Daam tells us how intense competition, costly imports and price sensitive customers are driving even high-end auto makers to indigenize their sourcing.

Another segment set to benefit from India’s promising auto sector is the electronics segment. In a piece titled Indian cars are getting smarter, Rohan Shevate details how demand for infotainment, and safer, greener, and more fuel efficient vehicles is driving technological innovation and new product development by OEMs.

Globalization has changed the way businesses operate on a global and local level. How well they localize their marketing strategy and products – whether B2B or B2C – will determine how successful they will be in a local market. Varsha Chitale tells us about the importance of ‘localization’, particularly in an emerging market like India.

We hope you enjoy reading our newsletter, and as always, we look forward to your comments.
Best regards.

Rising localization by luxury car makers
by Poulomi Daam
Forecasting market growth The Indian automotive industry is expected to see substantial growth in the next decade, despite near-term concerns. With a vehicular penetration of just 15 cars per thousand persons, the country is one of the most promising auto markets in the world. A rising working middle class population, growing disposable incomes and poor public transport will continue to drive growth. Consequently, Indian and global auto OEMs are increasing investments in the country.
more>>
Indian cars are getting smarter
by Rohan Shevate
future is already here In the next 5 years, more than 25% of the cars in India will be connected to the Internet. As automotive technology evolves, consumers are demanding additional infotainment features and functions along with the basic expectations of safety and efficiency. Currently electronics contributes upwards of 30% of vehicle cost, and 90% of innovations and new features in a car. Considering that, the electronics segment has a huge potential to grow.
more>>
Customer intelligence for successful localization
by Varsha Chitale
Big data analytics With increased globalization, localization has become the buzz word. When the Indian market was opened to foreign companies, companies would merely import their existing products and sell them locally. Subsequently, they started translating their brochures and manuals into Indian languages. Companies that have actually created products to suit local needs have had the most success in the country.
more>>
Case studies
Commissioned research
Some client problems we have solved:
  • Awareness of ABS + Airbags among OEM dealerships
  • Opportunity assessment for HVAC control panels in India’s auto sector
  • Joint venture due diligence for an Asian motorcycle manufacturer
  • Consumer study of luxury cars
  • Offshoring automotive design & engineering services to India
  • Due diligence on an auto ancillary company for an investment bank
  • Location analysis for a multinational automotive parts supplier
ValueNotes in the news
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