30 Years – India’s Strategy Boutique
30 Years – India’s Strategy Boutique

Automotive

Insights on OEMs’ Behavior in the Indian Passenger Vehicles (PV) Market

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Client Challenge

The client, a subsidiary of a USD 8 billion US-based corporation and a preferred supplier for various product categories in India, aimed to enter the Indian automotive glazing market. To evaluate its feasibility and potential success in this market, the client engaged Universal Consulting Indian Pvt. Ltd (UCIPL) to conduct a comprehensive study. The key questions UCIPL needed to address were:

  • How feasible is it for the client to become a successful player in the Indian automotive glazing market?
  • What are the key success factors (KSFs) for entering the Indian automotive glazing market?
  • What should be the client’s value proposition and positioning in India?
  • What should be the target price points for the client’s products in India?

Our Approach

  1. Primary Research:
    • Conducted interviews with Original Equipment Manufacturers (OEMs) representing approximately 97% of the PV volume in 2016.
    • Conducted interviews with two major suppliers of automotive glazing in India.
    • Conducted interviews with aftermarket players.
  2. Market Analysis:
    • Assessed the size and growth of the automotive glazing demand in India, differentiating between OEM and aftermarket demand.
    • Analyzed pricing practices followed in automotive glazing for OEMs.
    • Evaluated procurement practices and supplier evaluation criteria.
    • Identified differences in practices across local versus multinational (MNC) OEMs.
    • Examined key departments involved in OEMs’ automotive glazing sourcing.
    • Investigated OEM preferences and their propensity to pay a premium for different glazing features.
    • Assessed OEMs’ openness to switch suppliers and key criteria for switching.
    • Profiled the two largest glazing suppliers in India.

Our Impact

  1. Feasibility Assessment:
    • Identified the feasibility of the client becoming a successful player in the Indian automotive glazing market based on market demand and competition analysis.
  2. Key Success Factors:
    • Determined the critical success factors for entering the market, such as competitive pricing, high-quality products, and strong relationships with OEMs.
  3. Value Proposition and Positioning:
    • Recommended a value proposition and positioning strategy that emphasized superior product quality, innovative glazing features, and competitive pricing.
  4. Target Price Points:
    • Provided insights into preferable price points for the client’s products to ensure competitiveness and market acceptance.
  5. Target OEMs:
    • Identified specific OEMs to target in India, considering their demand, preferences, and openness to new suppliers.
  6. Strategic Focus:
    • Suggested focusing on specific platforms, offering competitive credit terms, and ensuring short lead times to enhance the client’s market entry and growth.

By leveraging these insights and recommendations, the client was equipped with a detailed understanding of the Indian automotive glazing market, enabling them to make informed strategic decisions for successful market entry and growth.