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PRICING STRATEGIES OF INDIAN AUTOMOBILE INDUSTRY TO MEET THE COMPETITIVE ADVANTAGE: A CASE STUDY OF HERO MOTOCORP LIMITED AND HONDA MOTORCYCLE AND SCOOTER INDIA, PRIVATE LIMITED (HMSI)

Dr. Amar Kumar Choudhary & Sneha Melgandi

Companies use a variety of pricing methods to obtain a competitive edge in the fiercely competitive Indian auto business, especially in the two-wheeler category. Hero MotoCorp Limited and Honda Motorcycle & Scooter India (HMSI) Private Limited, two of the top companies in the two-wheeler sector in India, are the subjects of this study's analysis of pricing tactics. The study investigates how these businesses choose their pricing strategies, what influences those choices, and how those choices affect market share and customer preference. Hero MotoCorp, the biggest two-wheeler manufacturer in India, primarily uses a cost-based pricing strategy, producing reasonably priced commuter motorcycles for the general public. Its pricing strategy places a strong emphasis on cost control, economies of scale, and widespread rural penetration. HMSI, on the other hand, uses a value-based pricing approach and markets its goods as high-end options with cutting-edge technology, excellent quality, and a reputable brand. Even though HMSI charges more than its rivals, its greater build quality, increased fuel efficiency, and strong brand image justify the cost. The study compares the two organizations' pricing strategies, market performance, and strategic choices using secondary data analysis. The study comes to the conclusion that maintaining market leadership requires striking the ideal balance between cost effectiveness and value enhancement. Additionally, it offers suggestions for improving price methods for both businesses, such as utilizing technology, offering flexible financing alternatives, and maximizing production costs. The effect of electric mobility on pricing policies and changing consumer preferences in India's two-wheeler market may be the subject of future studies.


DOI:

Article DOI: 10.62823/JCECS/11.01.8416

DOI URL: https://doi.org/10.62823/JCECS/11.01.8416


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