Automotive

Payal Kaun Hai ? Clip 1

Clip 2

Automotive

Automotive

Who is Payal ? Payal was born in India after 1985

She is younger to Maruti Suzuki and Hero Honda

She is among 8% of car buyers and 31% of two wheeler buyers in India today

Her age group has the potential to buy 1.9 Lakh cars and 35 Lakh two wheelers in a given year

Automotive

For Payal… Car = Maruti

Motorcycle = Hero Honda

TV = Color TV

TV Transmission = Cable & Satellite

Movie Viewing = My own choice (VCR)

Phone = Push Button / Mobile / iPhone

Music = My own choice (Walkman)

Career = IT / Software / BPO

Information = Internet

Money availability = Easy Credit

Sport = Cricket (not Hockey)

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Payal has been brought up… In Peace, no Strife

In abundance, no Shortages

In affluence – India Shining

With unprecedented choice

The Middle Class Rises!!The Middle Class Rises!!

AutomotivePayal has wide connections but little conversation…

More time spent in front of the screen than in classroomo More time with self o More time in impersonal communicationo More time in one to many communication o More time in one sided communication

Self centered behaviour Plethora of information, but no guidance for decision

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Even the forbidden is known to Payal

Sex is the most searched topic on the web

Secret Govt documents are available on Wikileaks

IPL auctions are no more a mystery

Confidential conversation between lobbyists and business

tycoons are available in magazines

Sting operations on political leaders, film stars, school

principals, Govt officials, Army Generals are telecast on TV

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Everything seems plausible to Payal

There are no more heros. Idols are crumbling. Warrants are out for Lalit Modi. There are no takers for Saurav Ganguly and Brian Lara even in second bidding. Everyone is a commoner. Therefore there is nothing which they can do, that Payal

can’t Nothing is too big to aspire for After all Irfan Pathan and Rohit Sharma the boys next door are getting the same

salary as the MD of a big corporate house

AutomotivePayal wants success today – everyday…and is willing to slog for it

I AM CONSTANTLY STRIVING TO IMPROVE MYSELF AND MY ABILITIES IN AS MANY WAYS AS POSSIBLE - % WHO AGREE

SUCCESS IS SOMETHING YOU CAN EXPERIENCE EVERY DAY - % WHO AGREE

Source : Global Monitor 2009

Source : Global Monitor 2009

Th

e P

ow

er

of

No

w

AutomotivePayal wants Instant Gratification – Does not want to wait for anything

I AM HAPPY TO HAVE SHORT-TERM DEBT TO ALLOW ME TO BUY THE THINGS I WANT -% WHO AGREE

You can get a bank loan and even buy a house anywhere so

why should we wait …we want to enjoy our

house today…

‘If people wait for tomorrow then they

will grow old and not be able to enjoy

life…

Source : Global Monitor 2009

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AutomotivePayal wants to be on trend – Not be left behind

I'M ALWAYS LOOKING OUT FOR THE NEXT BIG THING IN TECHNOLOGY, FASHION, MUSIC OR ART -% WHO AGREE

Recently we bought a diamond ring for me…I am the only one in my

Kitty to have such a ring, but the greater thrill was

that we saw it and bought it, we did not have to wait to think about the money and

all…I have a cell phone with all the latest features…I had the money in hand

and I bought it immediately…It feels

young and energetic to keep up with the

times…

Source : Global Monitor 2009

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AutomotiveThe ladder of life for Payal…

Payal doesn’t need to start at the bottom of the ladder

She can start from the middle of the ladder. She has the confidence to

start from there, credit enables hers to do that and her optimism tells her

that tomorrow will be even better and she will be up the next step for sure

…starting mid-course…starting mid-course

I have a house, and my dad has a Maruti Alto…how

about a iPod with my first salary…of course the

sedan will follow

I have a house, and my dad has a Maruti Alto…how

about a iPod with my first salary…of course the

sedan will follow

Automotive

750750 11001100 20002000 25,00025,000

30003000 40004000 50005000 10,00010,000

15,00015,000 36,00036,000 150,000150,000 40,00,00040,00,000

10,00010,000 10,00010,000

Salary of a young executive (INR)Salary of a young executive (INR)

FridgeFridge

DDA FlatDDA Flat

Colour TVColour TV

30003000 40004000 10,00010,000 50,00050,000

20,00020,000 22,00022,000 40,00040,000 2,50,0002,50,000

20,00020,000

60,00060,000

Two WheelerTwo Wheeler

Car Car

i Phone i Phone

Apple LaptopApple Laptop

50,00050,000LCD TVLCD TV

19701970 19751975 19841984 20102010

AutomotivePurchase ladder is now spiral

No purchase is life long

Durables are replaced many times over

Even a house gets upgraded over time

The base spiral itself may start with semi premium brands/products

With each change in life stage the spiral may expand and move up

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So what does Payal and her ilk do to the game?

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Payal is a harbinger of change, but change is all pervasive

Automotive

The changes witnessed in Car IndustryDigital is in..Digital is in..

One need not enter only through a “entry-level” carOne need not enter only through a “entry-level” car

People are increasingly buying “Small-Cars” at the price of a SedanPeople are increasingly buying “Small-Cars” at the price of a Sedan

Car owning households are buying MUVs, as additional cars Car owning households are buying MUVs, as additional cars

Automotive

Digital is in..Digital is in..

One need not enter only through a “entry-level” car

People are increasingly buying “Small-Cars” at the price of a Sedan

Car owning households are buying MUVs, as additional cars

The changes witnessed in Car Industry

Automotive

% using at least once a day – India (Global)

(32)

(54)

(36)

(61)

(14)

% using Digital at least once a day – India

Digital usage has not yet replaced offline media usage, younger consumers are more frequent digital media users

Coupled with a young population, the potential is huge

Coupled with a young population, the potential is huge

Source: A TNS Syndicated ResearchSource: A TNS Syndicated Research

Automotive

17.6 9.0 9.3 8.1 7.8 9.0 10.4 9.5 6.8

1.2 0.8 1.0 0.1 1.7 1.0 0.7 0.2 0.2

PC/ Laptop

Mobile

IndiaGlobal Male Female 16-20 21-24 25-34 35-44 45-60

The engagement level of Indian consumers are high. However, usage levels are almost half of the global average

Hours spent on internet per week

Source: A TNS Syndicated ResearchSource: A TNS Syndicated Research

AutomotiveCar Buyers are also using the digital media more than before…

3

6

10

65

10

4

8

EntryCompacy

Premiumcompact

UpperPremiumCompact

EntryMidsize

Midsize PremiumMidsize

MUV/SUV PremiumMUV

Source: Syndicated Total Customer Satisfaction StudySource: Syndicated Total Customer Satisfaction Study

Automotive

The Big Changes

Digital is in..

One need not enter only through a “entry-level” carOne need not enter only through a “entry-level” car

People are increasingly buying “Small-Cars” at the price of a Sedan

Car owning households are buying MUVs, as additional cars

AutomotiveMore people are entering the market by purchasing “Non entry” level cars

47

42

3835

37

41

13

54 4 4 3 3 3

2 2 2

9 9 9

EntryCompact

PremiumCompact

UpperPremiumCompact

EntryMidsize

Midsize DieselMidsize

SUV/MPV

2005 2007 2009

Source: Syndicated Total Customer Satisfaction StudySource: Syndicated Total Customer Satisfaction Study

Automotive

The Big Changes

Digital is in..

One need not enter only through a “entry-level” car

People are increasingly buying “Small-Cars” at the price of a SedanPeople are increasingly buying “Small-Cars” at the price of a Sedan

Car owning households are buying MUVs, as additional cars

AutomotiveConsumers increasingly purchasing the “small-big” car at the price of Sedan

Small car that is packaged with big car feature- Space, safety feature, engine to provide joyful and athletic ride. Also at the price equivalent to Entry level sedan

Entry level sedan’s has always has been a symbol of having arrived, or to say status

However the emergence of a new segment has added a twist to the tale with it being increasingly associated with symbol of being arrived

Average Price: Rs.6 Lakhs

Average Price: Rs.6 Lakhs

Average Price:. Rs. 5.8 Lakhs

Average Price:. Rs. 5.8 Lakhs

Total volumes (2010): 2.17 Lacs

Total volumes (2010): 2.18 Lacs

AutomotiveCar owning households are buying MUVs, as additional cars

30

43

2726

51

22

0

10

20

30

40

50

60

First New car Additional Car Replacement car

2007

2009Per

cent

age

Source: TNS Syndicated Total Customer Satisfaction StudySource: TNS Syndicated Total Customer Satisfaction Study

Automotive

Page 26

Who owns a SUV/ MUV as a additional car?

Entry & Premium

Compact-52%

Entry & Premium

Compact-52%

Entry & Regular Midsize-18%

Entry & Regular Midsize-18%

Premium Midsize- 6%

Premium Midsize- 6%

SUV / MUV- 21%SUV / MUV- 21%

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Purchase Behavior – Across Years

46

44

29

36

25

20

First Additional Replacement

2009

Page 27

2008

2007

A higher incidence of buying the second household carA higher incidence of buying the second household car

Automotive

Thank You

Thank You