Decision / India / Automotive
Predicting the future of the hatchback segment in India
"Our predictive model has been a critical input into the future portfolio decisions of our client."
Business issue
Our client, India’s leading car manufacturer, had led industry growth for decades. Known for reliability, economy and value, they dominated the small car market.
Contrary to this, the overall Industry was starting to see huge growth of SUVs, therefore indicating that our client was heavily invested in a declining segment.
It was imperative for the client to achieve an understanding of the future market, so they could adapt accordingly and remain competitive.
Our solution
It was essential to find a solution which provided the client with valuable future market insights so they could pivot their strategy and remain at the forefront of the automotive industry. And, it was clear that a predictive modelling approach was fundamental here.
The Ipsos team built a time-series model, leveraging macroeconomic data, to help predict the future demand of car sales.
As part of the output of this model, we were able to present various possible scenarios of demand for small cars, specifically hatchbacks, in the future. These scenarios differed based on varying macro factors.
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Impact
As a result, our predictive model has been a critical input into the future portfolio decisions of our client, leading to a decision of consolidating their hatchback portfolio and reducing in the number of variants on offer. Our insights also aided their decision to funnel more future resources into introducing more products to the growing SUV segment.
