India's Luxury Car Market: The Competition Heats Up


Code : COM0096

Year :

Industry : Automobiles

Region : India

Teaching Note: Available

Structured Assignment : Available

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Indian Car Industry: A Profile For a long time in the history of India, cars were considered a luxury only meant for maharajahs (kings) and a few wealthy traders. The first car (a Rolls Royce) was imported in 1907 by Madhav Rao Scindia, the Maharajah of the then northern Indian princely state of Gwalior, just three years after the world famous company was incepted in Manchester. In 1921, when the Prince ofWales visited India, many of the maharajahs placed order for a number of Rolls Royce cars for the occasion...

Indian Luxury Car Market Between 1950 and 1990 the only way to import cars was through trading houses (export oriented units (EOUS) with huge turnover). These trading houses could import the cars under the condition that the imported vehicles could not be sold or transferred for a fixed period of time. These imports were channeled through official importing agents and companies, such as the erstwhile DCM Toyota (later Daewoo Motors India), which was the official importer of Toyota cars in the early 1990s...

The Competition Hots Up Dhawan said, "Although India will continue to be predominantly a small car driven market, the launch of a slewof dream machineswill surely rev up the growth in the luxury segment in the coming years." With the launch of more than 20 luxury models in the year 2005, the competition has become intense. But there are other challenges too for the premium car makers in India...

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