Case Study India’s rapid economic growth and prosperity has dramatically increased the pool of potential customers who aspire to own luxury cars. The annual World Wealth Report (2011) of Merrill Lynch Wealth Management and Capgemini, suggests that India has the 12th largest number of High Networth Individuals (HNI) in the world. Moreover, among the top 12 economies globally, India’s growth in HNI numbers was the highest at 20.8 per cent. In 2012, the Indian luxury car market sold around 29,000 vehicles and this represented just one percent of all passenger vehicles sold in India.

The management consulting company, AT Kearney, estimated that the Indian luxury car market was worth just over £640 million in 2010. Automotive experts predict that the luxury car market will grow at 25 per cent per annum for the next eight years and reach sales of 150,000 vehicles by 2020. In contrast, non-luxury passenger vehicle sales are expected to grow by 10-12 per cent annually over the same period. Certainly there is scope for increased market expansion as currently, the cities of Mumbai and New Delhi dominate luxury car sales

1.Critically analyse the Volvo case study using ONLY the information in the case study, to carry out an environmental analysis of the macro-environment using appropriate global marketing theory and models; in particular, the importance of social, culture and context factors on the development of Volvo in the Indian market.

2.Bearing in mind the current state of the global economy and your earlier analysis of the case study and Volvo in the Indian market; explain how you would conduct a competitive analysis, segmentation, targeting and positioning of Volvo for future growth and expansion in India.            

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