Hyundai Verna and Maruti SX4 Comparison using concepts of Micro Economics
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Transcript of Hyundai Verna and Maruti SX4 Comparison using concepts of Micro Economics
![Page 1: Hyundai Verna and Maruti SX4 Comparison using concepts of Micro Economics](https://reader030.fdocuments.us/reader030/viewer/2022020217/55328d2c4a7959394b8b468d/html5/thumbnails/1.jpg)
WHICH CAR WILL
VROOM AWAY
Group 4Ashish Bhasin (8), Ashish Dubey (9), Benz Thomas (11),
Pratik Sharma (32), Vivek Sharma (47)
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A PROJECT TO UNDERSTAND CAR BUYING PATTERN FOR
HYUNDAI VERNA FLUIDIC AND MARUTI SUZUKI SX4 USING MICROECONOMICS CONCEPTS
A project for Dr. Biswajit Nag
by Group 4, Section A (MBA IB –PT – 2012-15)
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Mitch Hedberg
I KNOW A LOT ABOUT CARS. I CAN LOOK AT ANY CAR’S HEADLIGHTS AND TELL YOU EXACTLY WHICH WAY IT’S COMING.
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CONTENTS
Indian four wheeler market
Attributes being promoted
Sales figures
Verna and SX4 Demand Curve
Verna and SX4 Price Elasticity
Price sensitivity analysis
Conclusion
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Indian four wheeler industry
• Installed capacity in millions – 3.88• Passenger Vehicles - 15.07%• Major players – Mahindra, Hyundai, Maruti, Tata, Ford, Renault, Honda, Nissan, etc.
• Models – Alto, WagonR, Dsire, Bolero, Swift, i10, Indica + vista, Innova, Verna, SX4, etc.
Source: SIAM
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Total Sales
City18%
Vento14%
Verito9%
Rapid13%
Fiesta8%
SX46%
Verna32%
TOTAL SALES – Jan-Sept 2012
Source: www.motorbeam.com
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Passenger cars manufactured vs GDPSource: Automotive report by MarketLine
www.Indiastat.com
0
200
400
600
800
1000
1200
0.000
500.000
1000.000
1500.000
2000.000
2500.000
2006 2007 2008 2009 2010 2011
thousand units
India GDP*
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What do you first consult?
Auto TV programs
Magazines
Friends/relatives
Online
previous owners
0 2 4 6 8 10 12 14 16 18 20
First consultation
First consultation
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Attributes being promoted
VERNA
• Fluidic design• Commanding exterior• Technology with design• More features than the
price• Luxury• Power• Safety• Eco Friendliness
SX4
• Gentleman among cars• Amazing driving
experience• Commanding exterior• Plush interiors• Big on mileage• Loaded with entertainment• Spacious and comfortable• Safety• Power
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Model wise sales figuresSource: www.motorbeam.com
Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-120
1000
2000
3000
4000
5000
6000
7000
SX4Verna
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Verna – Demand Curve
0 2 4 6 8 10 12 14900000
950000
1000000
1050000
1100000
1150000
1200000
1250000
Series1
Avg Verna price assumed at INR 913403.5
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Demand drivers for Verna
Perfo
rman
ce/P
ower
Brand
nam
e/Bad
ge
Fuel e
fficie
ncy
Safet
y
Imag
e
Main
tena
nce
ease
Reliab
ility/
Consis
tent
per
form
ance
Trunk
Spa
ce
Luxu
rious
Inte
riors
Silenc
e ins
ide th
e ca
r
Comfo
rt
Refine
men
t
Servic
e Cen
tre0
4
8
12
Verna
Verna
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SX4 – Demand Curve
0 2 4 6 8 10 12 14 16 18850000
900000
950000
1000000
1050000
1100000
1150000
1200000
Series1
Avg SX4 price assumed at INR 882555.25
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Demand drivers for SX4
Perfo
rman
ce/P
ower
Brand
nam
e/Bad
ge
Fuel e
fficie
ncy
Safet
y
Imag
e
Main
tena
nce
ease
Reliab
ility/
Consis
tent
per
form
ance
Trunk
Spa
ce
Luxu
rious
Inte
riors
Silenc
e ins
ide th
e ca
r
Comfo
rt
Refine
men
t
Servic
e Cen
tre0
4
8
12
SX4
SX4
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Verna – price elasticity
% age increase in Verna price
Number of customers from Verna
10 13
20 5
30 2
At a 10% price increase the elasticity is 6.5 i.e >1 more than unit elasticAt a 20% price increase the elasticity is 1.25 i.e >1 more than unit elasticAt a 30% price increase the elasticity is 0.33 i.e <1 less than unit elastic
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SX4 – price elasticity% age increase in SX4
priceNumber of customers
shifting from SX4
10 3
20 16
30 1
At a 10% price increase the elasticity is 1.5 it is more than unit elasticAt a 20% price increase the elasticity is 8 it is highly elasticAt a 30% price increase the elasticity is 0.166 <1
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Price sensitivity
Rightward shift
Pric
e of
Ver
na
Demand for VernaOX
Y
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Conclusions
Verna dominates due to• Innovation•Design (fluidic)• Brand is considered more luxurious
New Markets for C segment• B and C
grade cities
Elasticity• People will
shift less from Verna than from SX4
Edge• Verna has
an edge over SX4 and other competitors
Market• Monopolistic
competition due to small number players occupying a major market share
Sales and support• Both
companies have comparable Sales and Service network
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So who is coming for the ride?
Thank youAll images in the presentation have been sourced from various contributors on www.sxc.hu