Torque Motor India Pvt.

Ltd
Hybrid Car Muscle India Go To Market Strategy
Unique Value Proposition
Torque Muscle is designed to offer the power of an SUV at the running cost of a hatchback.
Estimation of exact size of the segment
Current Monthly Sales 1860000.00 (Given in the Exhibit)
Estimated Annual Sales 22320000.00 (Current Monthly Sales * 12)
CAGR (Car Market) 0.05 (From Sources)
CAGR (Hybrid Cars) 1.98
(Computed from the projections of
National Electric Mobility Mission Plan
Target of 5 Million Vehicles by 2020)
Current Hybrid Car Sales 3000.00 (2.3% of 130000- Given in Case)
Estimated Average Profit for per
car realized by the company 10000.00 (Estimate)
Estimated Market Share of
Torque Muscle 0.16 (Estimate)

Year 2014 2015 2016 2017 2018 2019 2020
Total Car Market Size 23436000 24607800 25838190 27130100 28486604 29910935 31406481
Hybrid Car Sales 8940 26641 79391 236585 705022 2100965 6260876
Estimated Hybrid Car
Sales of Torque 1430 4263 12703 37854 112803 336154 1001740
(The annexures for calculations are present in the attached sheet).
Positioning and promotions
The main doubt in consumers minds about hybrid vehicles, especially SUVs, is power and
reliability. Hybrid cars are seen as less powerful and less dependable (because they have to
be charged).
To overcome this, Torque Muscle will be positioned as more powerful than a regular
SUV. This will be done through ads which will show that Muscle has two engines -- petrol
and electric. Also, since its a petrol engine, its more powerful than regular diesel SUVs.
Promotions will be done by endorsements from successful duos in the world of sport -- like
Paes-Bhupati, the current opening pair of the Indian cricket team etc. This will be done to
create an analogy between their successful partnership and the 'partnership' between petrol
and electric engines of Torque Muscle.
Promotions will also focus on the cost benefit of owning a hybrid car, reflecting the car's
UVP.
Pricing
Since we will be manufacturing the car in India, it will be lower than the US cost of $27,000
and $35,000. Also, due to the superior technology and additional costs of electric systems in
the hybrid vehicles, the costs of hybrid vehicles would be higher than their non-hybrid
counterpart vehicles. As per the National Electric Mobility Mission Plan target of 5-7 Million
Electric Vehicles by 2020, it is expected that the government would give tax rebates to the
company which will manufacture hybrid vehicles. Hence the cost of production is expected to
decrease which the company will pass on to the consumers by reducing the cost of the car.
Muscles price has to be strategically determined to attract consumers in the segment. As
price being one of the most important factorials which consumers see while purchasing a car,
the car has to be priced in the range of existing non hybrid cars in the same segment.
The price of the car in the Indian Market will be in the range of 10-14 Lakh. There will also
be a huge demand for Electric-CNG hybrid vehicle, hence in the future, Torque Motor India
Pvt. Ltd will foray into this segment and introduce an Electric-CNG hybrid vehicle in the
country. Due to the superior technologies, the cost of the vehicle will be higher than other
models.
The prices of various variants of the car are given in the following table:
Car Model Price
Muscle Hybrid 1019000
Muscle Energi 1290000
Muscle CNG 1430000

Distribution
As Torque Motor India Pvt. Ltd is an established player in the country, it already has an
extensive dealer network within the country. The company should utilize this network for
distributing this product.
The Hybrid Sales could be boosted if the company would provide an exchange offer in which
consumers can sell their old cars to an authorised second hand car dealer and buy a new car.
So to tap this market the company should create tie-up with authorized second hand car
dealers and tap into that area.
Company should focus extensively on Tier I cities first and then move to Tier II cities. It can
establish tie up with various NGOs that promote Environmental Awareness and make them
their distribution channel.