PRODUCT STRATEGY AND MANAGEMENT
TERM PAPER
KIA MOTORS INDIA
Submitted to
Prof. Ramesh Venkateswaran
Submitted by:
Group2
Fathima Shahin A R (2011131)
Darshan Ukey (2011141)
Harshit Verma (2011142)
Shivendra Vivswan (2011143)
Samarth Yadav (2011144)
Dhruv Agarwal (2011151)
Table of Contents
Introduction ................................................................................................... 3
Background ..............................................................................................................3
Problem statement: .................................................................................................3
Automobile Industry in India ........................................................................ 4
Key Success factors ................................................................................................5
Why did KIA enter the SUV segment instead of hatchbacks? .................. 7
Marketing Mix of KIA Motors India .............................................................. 8
What solution did KIA offer? ..................................................................................8
How was accessible KIA Seltos for the Indian market?......................................8
Was the pricing and value offered perceived well? .............................................8
Did they educate the consumers about the brand properly?.............................9
Competitor Analysis ..................................................................................... 9
Value Map................................................................................................................ 10
The implication of Results for Kia Seltos ........................................................... 10
Linking Product Features to Customer Satisfaction Using Kano Model 11
Branding & Positioning .............................................................................. 12
2019 - Pre-launch: .................................................................................................. 12
2019 - Post Launch: ............................................................................................... 12
2020 – Advent of Covid and Increased Market Awareness: ............................. 13
2021 – #NewKIA: .................................................................................................... 13
Conjoint Analysis ........................................................................................ 13
What it means to KIA? ........................................................................................... 14
Conclusion and Insights ............................................................................ 14
Right product at the right time ............................................................................. 14
Value for money and a feature-rich product for the Indian Market.................. 15
Effective marketing communication in India ...................................................... 15
Effectively assessing customer needs ............................................................... 15
Introduction
Background
Mr Kookhyun Shim, the M.D. and CEO of KIA Motors India, reflected on the success of
KIA motors in India, especially the Seltos. KIA took almost two years and $2 billion to roll
out its first Product, Seltos, in July 2019. Interestingly just eight months before the launch
of the brand, very few Indians were about the brand. In the next 22 months, KIA became
the 5th largest passenger vehicle manufacturer and 3rd in the utility market.
KIA Motors India is testing the Indian market with unique styles and has new products
lined up. Carnival and Sonet are the immediate variants available, while Seltos competes
with Maruti Suzuki S-Cross, Nissan Kicks, Renault Captur and Hyundai Creta. Based on
price parameters, Seltos competes with MG Hector and Tata Harrier. The intense
competition for Seltos in the Indian mid-SUV market increases with many new launches
like the SKODA Vision IN, China's SAIC backed MG Hector plus and France's Groupe
PSA Citroen C5 Aircross.
The COVID19 pandemic has severely hit the already struggling Indian economy. With
increasing competition, the pressure to main the market share of Seltos was already high
for Mr Kookhyun. He has scheduled a meeting with the product manager of Seltos, the
nd head of sales and marketing for a meeting next week to discuss the strategies to
maintain the market share of Seltos in the Indian SUV market for the next 2-years. He
was worried if the initial launch strategy of Seltos in India will help them maintain the
market share.
Problem statement:
Seltos moved up one rank (from FY'20) to become the fourth best-selling SUV in FY'21
and continues to grow at more than 27% (m-o-m) in FY'22. Amidst slowing industry
growth, increasing competition in the compact SUV segment, and Seltos becoming a
more familiar face in the Indian SUV market, it will be interesting to see whether KIA can
sustain the high sales and market share of Seltos in the mid-size SUV segment.
Automobile Industry in India
India's automobile industry is one of the largest globally, with an annual output of 23.96
million vehicles in the F.Y. 2015-16. The automobile industry consists of two-wheeled,
three-wheeled, passenger, utility, and commercial vehicles. The passenger vehicle
(P.V.) segment has a 14% market share, and the commercial vehicle (CV) has a 3%
market share.
India's passenger car market was valued at USD 30 billion in 2020 and is expected to
increase at a CAGR of 9% between 2020-20261. In 2015, India exported USD 15 billion
worth of automobiles worldwide, with the United States and Mexico accounting for over
7% of the total. Hyundai, Toyota, Volkswagen, Nissan, and Maruti Suzuki are all
expanding their manufacturing plants in India. Autoliv Inc, the largest automotive safety
supplier globally and TRW automotive inc. are establishing operations in India to boost
the automotive capacity. Furthermore, by 2024, G.M. plans to invest $1 billion to
enhance the Talegaon factory in Maharashtra's total from 130,000 to 220,000 vehicles
per year.
India's four-wheeler market has been the fastest growing in its market segments in the
past ten years. P.V. sales in 2019 are close to 4 million units, and it is expected to grow
rapidly. India's auto exports grew rapidly at a rate of 14.5% in FY19.
By sales, Maruti Suzuki, Hyundai and Mahindra are the leaders, followed by Tata,
Honda, and Toyota. After years of fascination with small passenger vehicles,
automakers in one of the fastest-growing economies are now turning to compact sport
utility vehicles and utility vehicles (MUV). In the past five years, its sales have exploded,
accounting for a quarter of passenger car sales in the Indian automotive industry,
reaching 74 billion U.S. dollars.
In 2010, U.V. and compact SUVs accounted for approximately 14% of passenger
vehicle sales. According to the Association of Indian Automobile Manufacturers (SIAM),
the latest data from the industry bodies show that they currently account for more than
48%. Most of the latest explosions in U.V. sales are led by compact SUVs such as
Maruti Suzuki Vitara Brezza, Toyota Fortuner, Ford Ecosport, Renault Duster and Tata
Nexon. There are two main factors for the success of utility vehicles, especially SUVs.
Sports utility vehicles, especially compact SUVs, have become affordable products for
Indian consumers. Secondly, automakers have consciously decided to introduce more
SUV models to the Indian Market. Automakers are fine-tuning car designs and bringing
innovations suitable for Indian conditions. In addition, compact SUVs are expected to
become the second-largest segment of the Indian market during the forecast period
2019-2024.
In 2020 due to strict social distancing regulations and national lockdowns, the
production units of different original equipment manufacturers were completely shut
down, and the transportation of raw materials was stopped, directly or indirectly
affecting thousands of dependent workers and the entire industry was in trouble.
Although this is not a complete disaster for the market, local Indian manufacturers such
as Tata Motors and Mahindra had lost a good time to market when their cars were
accelerating in terms of safety and popularity,
During the Covid pandemic, the least affected market segment was the utility vehicle
(U.V.) segment. All vehicle segments-passenger cars (-16%), commercial vehicles (37%), tricycles (-74%) and two-wheelers (-22%) and its sub-segments have
experienced a double-digit year-on-year drop in sales during April 2020 and December
2020. The U.V. segment is the only market with single-digit year-on-year sales drops of
-6.69%.
Key Success factors
There are many factors that can affect the success of a car in any market. In India,
customers are price sensitive. Moreover, owning a car is more a luxury than a need.
Hence the car is tested on multiple parameters before the buyer makes purchasing
decision. The key success factors for passenger vehicles in India are:
1. Brand and Price- Purchasing a car is a significant financial commitment that
involves weeks of planning. The first step in making the purchase decision is to
define the budget. Buyers assess the showroom’s numerous benefits, such as
cash discounts, extended warranty offers, discounts on insurance cost etc.In
addition to price, brand is also a very important factor. Buyers in India have varying
opinions about each brand. Customers will analyze a brand before purchasing a
4-wheeler based on the brand’s market reputation reliability, built quality and
innovations in design and technologies.
2. Styling- Style is subjective; what is attractive to one person may be repulsive to
another. Cars are regarded as extension of customer personality and are used to
flaunt success and emphasize style. Therefore, potential customers want their cars
to be different than the rest. Renault Kwid is a good example of how innovative
vehicles in its segment attract buyers to the point that it worried the segment leader
Maruti Suzuki.
3. Fuel economy and Performance- Indian car owners are very sensitive and
obsessed with good fuel economy. Even India’s biggest car manufacturers market
themselves of being most fuel-efficient car manufacturer.
4. Space- Space is one of the key factors for existing car owners who are looking to
upgrade to new vehicle. the boot space and interior space provided by the car is
also important factor for new buyers as well. More boot space or leg room is always
an added advantage for buyers.
5. Comfort and Safety feature- More the features offered b a manufacturer the more
it is perceived as value for money. Many of the new cars are loaded with features
such as touchscreen infotainment systems, high-quality speakers, audio controls
placed on the steering system, power windows and adjustable exterior mirrors and
reverse cameras. Such features add to the driving experience.
6. After-sales and service costs- Having a large network of dealers and authorized
service providers is also a vital deciding factor since it implies that the car can be
easily serviced. Even spare parts availability makes a difference in making the
purchase decision.
7. Dealership Experience- Ten years ago, buyers could only choose from a handful
of car brands. Now there are more options. But manufacturers now have multiple
dealers and distributor within a city. As a result, competition between distributors
has intensified. Thus, car showrooms are now getting much more fashionable and
spacious. They pay more and more attention to the needs of potential buyers,
prepare better for walking and prepare for test drives. The distributor experience
with different brands also affect buyers purchase decision.
8. Resale Value- In India, the depreciation rate of some brands and models is much
lower than other brands. Some brands and models lose up to 25% of their cost in
depreciation. For example, Hyundai and Maruti models usually only lose 15% of
their value in the first year.
9. Ground Clearance- Buyers are preferring compact crossovers or SUVs to
hatchbacks and premium sedans, mainly because of their high ground clearance
that makes the car’s maneuver easy on Indian roads without worrying about
scraping the car.
Why did KIA enter the SUV segment instead of hatchbacks?
Seltos announced its entry in India in the year 2016 but launched its first car in the year
2019. One of the important decisions KIA had to make was to decide which car to launch
first in India. KIA Motors is owned by Hyundai, which is the second biggest player in India,
but KIA wanted to be perceived as a brand and not as a sub-brand of Hyundai. And hence,
choosing the car was the deciding factor to establish the brand in the minds of the people.
KIA Rio was the first option for Indian markets, but when tested and researched, it seemed
the extraordinary hatchback would not suit the Indian Market. This eventually led to the
launch of Seltos in India. It is a rare instance when a company enters a new market in the
SUV segment. KIA's decision was supported by the growth of SUV purchase increase in
India.
When Seltos was unveiled in 2019, the Market SUV market was on the rise. However,
the existing incumbents lacked in a variety of categories. From the total sales of 220,306
units FY2007, the sales grew to a massive 946,010 by 2019. The contribution to the
passenger vehicles at the same time grew from 16% to 34%. There has been a shift in
consumer preferences, attested by the fact that 25 SUV models in FY2007 have
increased to over 80 models in FY2021.
During the 2014 to 2019 period, The market standard Creta was launched back in 2015
and, despite a midlife design update in 2018, and was starting to show age. The market
was due for a new platform in performance as well as style. Seltos was able to capture
both. KIA took premium-ness a notch up by using materials that match the ones used in
BMW and Audi. KIA understood the market requirements very well and introduced Seltos
at the right moment.
Marketing Mix of KIA Motors India
What solution did KIA offer?
Kia Motors India has two successfully sold products Seltos and Sonet. The new model,
Carnival, is a recent launch in India. They are both competing in the SUV segment. Kia
products are known for their product quality, fuel efficiency and design. Seltos, a 5-seater,
has a sports car design attracting the young population with luxuries attributes. There
are two versions: G.T. (Grand Tourer) line and Tech line. Some of the interesting features
that were a solution to some of the consumers in the mid-luxury SUV segments are heads
up display, internet-enabled air purifier, LCD/ HD touchscreen for infotainment etc., along
with the other basic features. KIA was the earliest to launch these features in this segment
at an affordable price. Thus, Seltos achieved its ambitious growth in the declining Indian
automobile market.
How was accessible KIA Seltos for the Indian market?
KIA motors entered with an aggressive distribution network with its presence in about 160
cities in India, 192 service centres along with four parts dispatch centres covering all
corners of India. These numbers were more than most of the competitors in the Indian
car market. KIA took advantage of the IoT and integrated the end-to-end steps from
purchase to after-sales service in KIA Link App. This also helps dealers track their
inventories and connect easily with consumers.
Was the pricing and value offered perceived well?
KIA India offers competitive pricing, which is marginally in line with the competitors. The
motto is to sell more volume and gain more margin. Seltos ranged between Rs. 9.89 lakh
and Rs. 17.29. Seltos advertisements were not focused on pricing rather on product
superiority. They believed in performance and did competitive pricing, and gained
popularity via product features.
Did they educate the consumers about the brand properly?
KIA had a strong marketing launch strategy. They created awareness of the brand KIA
even before the launch of Seltos. KIA used Tiger Shroff as the brand ambassador during
Seltos launch to target the upper-middle class, young generation. One of the main
competitors, Hyundai Creta, targets the aged generation as well. Hence, Seltos saw an
opportunity to target the youth and set trends for the brand. The promotion was about
product features, and they educated the customers about their superiority and
performance. Hence, shifting the promotion to education about product features and not
pricing.
Competitor Analysis
The Indian mid-size SUV market is
highly competitive, and the top players
are Hyundai Creta, Kia Seltos, Mahindra
Scorpio, MG Hector and Maruti Suzuki
MARKET SHARE OF MID SIZE SUVs (FY'21)
Creta
Seltos
S-Cross (Figure). Given the very low
Scorpio
market share held by Renault Duster,
MG Hector
our further analysis has excluded the
S-cross
same. Technology and innovation are
Duster
key driving factors in this segment of
automobiles where consumers prefer
0%
10%
20%
30%
Figure 1
safety and innovative features more
than mileage. Hence to understand how
these firms fare when it comes to
technology, an innovation matrix is
designed as shown in the figure from
inputs
throw
surveys
and
various
authentic car reviews. To understand
the success story of Kia, it is imperative
to understand consumer perception of
Figure 2 Innovation Matrix
40%
50%
the product in comparison to its competitors. To assess the same, a market perceived
value map was composed.
Value Map
The most standard Product in the mid-size SUV market was considered for the value map
analysis. A survey was constructed, and respondents were asked to rate the cars on
various Product and price attributes. Product and price attributes and their weights were
chosen after studying car buying guides on zigwheels.com, autocarindia.com and
autoportal.com. Products quality was assessed using Head-up display, sunroof, safety,
car performance, mileage. Price was assessed using Cost, Warranty duration,
Maintenance Cost, Value-Added Features (Paint Scheme, DCT/CVT engine, Ventilated
Sheet). The results are shown in the figure.
1.4
MG Hector
Percieved Price
1.2
S Cross
1
Scorpio
Creta
0.8
0.6
0.4
0.2
0
0
0.2
0.4
0.6
0.8
1
1.2
Percieved Quality
Figure 3 Value Map
It can be observed that the customers feel that Seltos provides higher quality with
comparatively lesser price than S-Cross, MG Hector and Mahindra Scorpio. In the case
of Creta, the perceived quality with respect to its price is highly close to Seltos (with a
slightly higher price), which is also evident in the market share of the two models. Detailed
workings and results are shown in Exhibit.
The implication of Results for Kia Seltos
Kia has fairly registered itself in the minds of its customers as a quality product that is at
par with its pricing. The market leader, Creta, is its biggest competitor. Going forward, Kia
should continue to innovate and retain this perception in the minds of the consumers. In
particular, it should focus on Creta, understand why consumers prefer it over Seltos. The
long presence in the industry(as compared to Kia) and a larger geographical penetration
(which results in easy serviceability) are clearly the major reason.
Linking Product Features to Customer Satisfaction Using
Kano Model
Kano
Model
of
product
development
and
customer satisfaction can be used to analyze the
features of Kia Seltos, which lead to three levels
of Customer Satisfaction, Dissatisfaction, and
Indifference.
Threshold Attributes (Basics): These are the
must-have features that the customer expects in
a mid-size SUV of Seltos' price range. Currently,
it
is
expected
to
have
both
types
Figure 4 Kano Model
of
transmissions, the basic performance of 16kmpl (Petrol) and 20kmpl (Diesel), Sunroof,
MIDs (Multi-Information Displays), Air Bags, Color variants etc.
Performance Attributes (Satisfiers): These features are not essential for the product, but
if they are present will increase the satisfaction of the users. A network of Service Centers
(Kia is expanding its network to 360 touch points covering 218 cities), Ventilated and
Power Seats, 4G/Internet connectivity, Rear Parking Sensors, Dual Tone, Premium
Upholstery etc.
Excitement Attributes (Delighters): These are the product features that delight the
customers and give Seltos a competitive advantage. Kia Seltos boasts an off Heads-Up
Display, Bose Premium 8-speaker sound system, Internet-enabled air purifier, 360degree camera and an H.D. infotainment touchscreen display from its base variants, etc.
Branding & Positioning
Kia Motor's branding strategy has constantly evolved in the three years, reacting to
external factors like Covid, new competition, and internal factors like the maturing product
and key differentiating features becoming the norm. Kia ensured that its branding
reverberated with its Product Life Cycle. KIA engaged with the younger audience by
associating itself with Global Sporting events like the Australian Open, Football World
Cups.
2019 - Pre-launch:
Kia Brand around Unique Design and Quality - All the advertisements of KIA around the
first half of 2019 mentioned the unique and
brilliant design of KIA. This was done by
showcasing successful products of KIA along with
testimonies of customers, both Indian as well as
foreigners reiterating this idea multiple times.
Along with this, KIA focused on developing trust in its manufacturing by creating ads that
showed off its new plant and its features, focusing on technology and automation.
Seltos Hype – Kia focused on generating hype for Seltos in its advertisement by showing
its features like Bose Speakers, Tiger Grill Nose, DRLs, and design. All its ads, even
when not about Seltos, always had a reference about it.
2019 - Post Launch:
Post launches, the strategy changed to now reinforce KIA's design and quality. However,
there was a significant change in how Seltos was pitched.
Campaigns like "Badass on the Road" & "Adventures of
Meerkat" were created to the imag ination of millennials. The
focus shifted from just building the brand Kia to establishing
Seltos as the go-to product in this segment. A new Beat360
showroom came up, and new Ads started coming up, which
focused on customer testimonials, unique features, and clips of auto reviewers praising
the product.
2020 – Advent of Covid and Increased Market Awareness:
Early in 2020, KIA expanded its lineup via Sonet & Carnival, and Seltos Specific did not
happen. Around May End, KIA started a new
campaign, "No one messes with the Badass,"
signalling a change in which KIA and the Market
perceive Seltos. It was no longer a newbie in the
market but a dominant player to protect itself from new
entrants. Along with this, it launched the KIA Cares initiative to build trust and help the
owners of KIA during the Covid Pandemic
2021 – #NewKIA:
KIA dropped Motors from its name and pushed towards a new brand identity as Kia India
and a new slogan –"Movement that Inspires." This new identity aims for KI A to establish
itself as an automaker and a company that provides
advanced sustainable mobility solutions. With the
"Movement that Inspires" campaign, KIA campaigns for
people to move out, make a move, meet new people
and create new experiences in this process. 2021 brings KIA at the centre of their
campaigns, and Individual products are at the periphery.
Conjoint Analysis
The new Seltos 2021 model was launched in May. With special attention to safety and
the fresh iMT technology. To assess if KIA is heading in the right direction in the market,
we evaluated buyer preferences on a total of 18 combinations. Three values for brands (
KIA, Hyundai, M.G.), two values for transmission type (manual, automatic), and three
values for safety features ( Airbags, Driver assist, and Anti baking technology). The idea
of using the conjoint analysis was to understand the importance of different parameters
for customers and assess how well KIA can understand and capture value from it. We
also checked the pulse of some of the new features introduced by KIA in the new model
of Seltos via a short survey.
Based on the conjoint analysis (n=23), we can found that over 60% of the users value the
brand of the car the highest. The average value of the brand in the conjoint analysis was
about 52%. Safety of the car was the next important factor at approximately 31%, with
transmission type being the remaining 17%.
The pulse report explained some of the new features that KIA is introducing in the market
regarding "connected car," the new iMT ( intelligent manual transmission), the new interior
display, and added safety features. Based on the survey (n=47), over 80% recalled KIA
as a brand when thinking about cars in the compact SUV category. Over 66% of
respondents were keen to try the new iMT technology, and around 77% of respondents
highly value safety in cars in a premium offering like Seltos. Over 53% of respondents
responded that the new-look interior and connected cars would influence their purchase
decision.
What it means to KIA?
The brand was the most critical factor in consideration for users looking to buy an SUV.
KIA has done well in its efforts first to establish the brand image in the Indian Market. KIA
should continue to establish the brand positioning in the Market for Seltos. Additionally,
the focus on safety and the new iMT technology in the Seltos 2021 model can be expected
to get a great perceived value from Indian consumers. KIA Seltos appears to be on the
right path in its product design and should continue its efforts in these verticals
Conclusion and Insights
Right product at the right time
Kia had planned to enter India with a 'Rio' hatchback; however, they never launched the
car in the market. In hindsight, it would have been too obvious a choice, but they still went
ahead with Seltos. They understood the Indian market requirement well enough to
understand what the consumers wanted. Seltos, a mid-size SUV loaded to the brim with
features and providing a touch of luxury at a moderate price range, filled the void for
Indian consumers.
Understanding the market and planning well to stay ahead of the curve
4P analysis of Kia Seltos made us realize that Seltos was an excellent product sporting
some of the first-to-be-seen features in India, all of this at a very competitive price. It had
planned its launch well even before the launch of Seltos, with a distributor network in 160
cities. They moved in early, created a buzz around the car well before launch, enlisting
youth icons as brand ambassadors to target the younger segment, and focused on
communicating the excellent features of the car rather than pricing.
Value for money and a feature-rich product for the Indian Market
Creating a value map for Seltos and comparing it to its competitors showed that Seltos
provided higher quality for the customers with comparatively lesser price. This strategy
works well for Seltos. However, Hyundai Creta, with similar quality and a higher price,
continues to outperform Seltos. As per the Kano model, we analyzed and concluded that
Seltos performs exceptionally well on all three fronts – threshold, performance, and
excitement attributes, leading to high levels of customer satisfaction.
Effective marketing communication in India
Kia used marketing effectively to reverberate with the life cycle of Seltos in India and
made sure to rapidly adapt its marketing strategy accordingly. Starting with a focus on
technology and more premium features in the early stage, then shifting to a more sporty
outlook with customer testimonials to woo the millennials, and finally shifting to
communication as top market performers, with "No one messes with the badass"
campaign shows effective adaptation to the market and product situation.
Effectively assessing customer needs
Performing a conjoint analysis showed that a majority of users (60%) valued 'brand' the
highest attribute. Other important factors were: 'Connected car', 'safety, and 'premium
interior'. Recent marketing communications of Kia, and the product offering as well, are
in line with these findings.
Appendix:
Exhibit 1: SUV Sales Volume Acceleration Figures
SUV Sales Acceleration1
Fiscal year
Units sold
Change (in %)
FY2007
2,20,306
FY2008
2,43,589
10.57
FY2009
2,25,800
-7.3
FY2010
2,72,740
20.79
FY2011
3,24,212
18.87
FY2012
3,67,012
13.2
FY2013
5,53,660
50.86
FY2014
5,25,942
-5.01
FY2015
5,53,699
5.28
FY2016
5,86,664
5.95
FY2017
7,61,998
29.89
FY2018
9,22,322
21.04
FY2019
9,41,461
2.08
FY2020
9,46,010
0.48
FY2021*
6,77,107
-28.42
Total
*April-December 2020
81,22,522
Exhibit 2: Month Wise Sales Volume of Top 5 SUVs
Monthwise Sales Volume
16000
14000
12000
10000
8000
6000
4000
2000
Seltos
Creta
MG Hector
S-cross
Jul-21
Jun-21
May-21
Apr-21
Feb-21
Mar-21
Jan-21
Dec-20
Nov-20
Oct-20
Sep-20
Aug-20
Jul-20
Jun-20
May-20
Apr-20
Mar-20
Feb-20
Jan-20
Dec-19
Nov-19
Oct-19
Sep-19
Aug-19
0
Scorpio
Seltos
Creta
MG Hector
S-Cross
Scorpio
Aug-19
6236
6001
2108
666
2862
Sep-19
7754
6641
2608
1040
3600
Oct-19
12854
7269
3536
1356
4628
Nov-19
14005
6684
3239
Dec-19
4645
6713
3021
979
3656
Jan-20
15000
6900
3130
558
5316
Feb-20
14024
700
1376
0
1505
Mar-20
7466
6706
1518
0
40
Apr-20
0
0
0
0
0
May-20
1611
3212
571
0
7113
Jun-20
7114
7207
1867
0
3292
Jul-20
8270
11549
2105
0
3135
Aug-20
10655
11758
2851
2527
3327
3878
Sep-20
9079
12325
2410
2098
3527
Oct-20
8900
14023
3625
2526
3961
Nov-20
9205
12017
4163
2900
3725
Dec-20
5608
10592
4010
1185
3417
Jan-21
9869
12284
3602
580
4083
Feb-21
8305
12428
4329
2505
3532
Mar-21
10,557
12640
5528
2535
2331
Apr-21
8086
12463
2565
2247
3577
May-21
4277
7527
1016
231
1782
Jun-21
8549
9941
2105
1441
4160
Jul-21
6983
13000
4225
3855
Source: Statista and various News articles published online
Exhibit 3: Model Wise Market Share Mid-Size SUVs FY’21:
FY20-21
Sales Volume
% Share
Creta
Seltos
1,20,035
40%
Scorpio
89,173
29%
MG Hector
41,443
14%
S-cross
31,585
10%
Duster
16,856
6%
3,685
1%
Exhibit 4: Value Map Workings
Product Attribute
Weight
Safety
30
Performance
20
HeadsUp Display
20
Mileage
15
Sunroof
15
Product Attribute
Weight
Ex-showroom Price
40
Warranty
15
Maintenance Cost
20
Value-added features
25
Product
Price
Quality
Hyundai Creta
1.034
1.005743
Mahindra Scorpio
1.2119
0.941895
MG Hector
1.1733
0.909382
Maruti Suzuki S- Cross
1.0961
0.710695
References:
https://www.indiatoday.in/auto/latest-auto-news/story/kia-to-expand-to-360-touchpoints-in-2021-17967962021-04-30
http://www.joviho.com/kia-seltos-why-kia-will-be-successful-in-india-kia-case-study/
https://motoroctane.com/news/213004-surprising-features-kia-seltos
https://www.mordorintelligence.com/industry-reports/india-passenger-car-market-outlook
https://www.goldsteinresearch.com/report/india-compact-suv-market
https://www.ibef.org/industry/india-automobiles.aspx
http://www.pbr.co.in/2020/2020_month/July/14.pdf |
https://motoroctane.com/news/213004-surprising-features-kia-seltos
https://www.outlookindia.com/website/story/automobiles-kia-details-its-after-sales-network-ahead-ofseltos-launch/335660
https://www.nextstepros.com/index.php/2019/08/21/kia-seltos-price-and-marketing-strategy/
https://www.autocarpro.in/news-national/india-shifts-to-suvs--sales-cross-8-million-units-in-15-years-78380
https://www.financialexpress.com/industry/has-the-seltos-set-a-new-benchmark-for-suvs/1615075/