According to President Donald Trump, Japan, one of the US’s biggest trading partners, has agreed to a “massive” trade agreement with the US. According to Trump’s social media post, the idea would result in Japan investing $550 billion (ÂŁ407 billion) in America and US imports from the Asian nation being subject to a 15% levy.
Key Highlights of the U.S.âJapan Agreement
He went on to say that Japan will allow American products, such as rice, trucks, vehicles, and some agricultural products, to enter its economy. Shigeru Ishiba, the prime minister of Japan, praised the announcement, stating that it was the lowest number among nations having trade surpluses with the US to date.
Tariff Reductions on US Autos and Agricultural Exports
At a White House event on July 22, Trump boasted that he had recently struck what he believes to be the biggest trade agreement ever with Japan. He went on to say that the squad had put in a lot of time and effort on it, and that Japan has its best personnel here. And it’s a fantastic bargain for all. “I constantly stress that it must be fantastic for everyone.
“It’s a fantastic deal,” Trump said. In an interview with reporters on July 23, Ishiba stated that the deal would reduce US car and part tariffs from 25% to 15%. “We were the first in the world to reduce tariffs on cars and auto parts without any quantity restrictions,” he stated. “The agreement does not include any reduction of tariffs on the Japanese side,” Ishiba stated.
Japanâs Billion Dollar Investment Commitment
Shigeto Nagai of Oxford Economics, a research firm, told BBC News that Japan’s “best compromise at this stage” is to lower its main tariff rate to 15%. The announcement’s mention of Japan’s planned investment in the US “will be a huge boost to restore the US, fitting in with Trump’s story of reviving US manufacturing with more jobs,” he continued.
Political Context in Japan Following the Deal
This month, Trump threatened to impose a 25% tariff on Japan’s exports to the United States unless a new trade agreement was reached by August 1. This was one percentage point higher than the 24% rate that was announced during his so-called Liberation Day on April 2.
Following global market turbulence, the April tariffs planâwhich included levies on numerous US trading partners worldwideâwas put on hold for ninety days. It gave the trade delegates from Tokyo more time to engage in talks with their Washington colleagues.
Market Reaction: Japanâs Stock Surge
The Nikkei 225, Japan’s benchmark stock index, rose more than 3% on 23 July in Tokyo, driven primarily by advances in shares of the country’s largest automakers, such as Toyota, Nissan, and Honda. The alleged agreement comes as Ishiba faces pressure to resign following the weekend elections that cost his Liberal Democratic Party (LDP) the majority in the nation’s upper house. Last year, the LDP lost its majority in Japan’s lower house, which has more influence.
The president of the union that represents workers announced on 2 May that General Motors is cutting off roughly 750 employees at its Oshawa Assembly facility as it adjusts shifts because of US tariffs.
According to a news release from Unifor, the plant, which employs about 3,000 people, will switch from operating on three shifts to two shifts beginning this autumn. Unifor would not permit GM to barter Canadian jobs in order to win over Donald Trump.
Lana Payne, national president of Unifor, described the action as a careless choice that directly affects Unifor’s members and might have repercussions for the whole network of auto parts suppliers. In addition to the 1,500 employees who work elsewhere in the supply chain, the plant will lay off about 750 workers, Payne told a media house.
The shift change “will impact approximately 700 workers”, according to GM spokesman Marie Binette’s email, though she did not call the action a layoff. “We are committed to supporting employees through the transition,” she stated.
Why Company Decided for a Layoff?
Workers in Oshawa’s car industry have been preparing for the effects of U.S. tariffs on their livelihoods, and now they are facing layoffs. Last month, President Donald Trump imposed a 25% duty on all automobile imports into the United States.
In an email to a media company, GM spokesperson Jennifer Wright stated that the company’s Oshawa facility will resume operating on two shifts due to anticipated demand and the changing trade situation.
As GM refocuses the Oshawa facility to produce more trucks in Canada for Canadian consumers, these adjustments will contribute to a sustainable manufacturing footprint. According to Unifor, light and heavy-duty Chevrolet Silverado pickup vehicles are produced at the Oshawa factory for the North American market.
These trucks are also assembled at plants in the United States and Mexico. As per Payne, GM has already given the required six months’ notice of layoffs. She stated that during those six months, she will fight back with her members every day in an attempt to persuade General Motors to change its decision.
PM Offers Sympathy to Affected Workers
In his first significant press conference since winning the federal election, Prime Minister Mark Carney expressed his “deepest sympathy” for the impacted employees and their families. The government is “fighting hard” for the auto industry, he added, and “making sure companies act in true partnership ⌠in maintaining employment and investment in Canada.”
“If not, there will be consequences for those companies,” Carney stated. Payne called the announcement of shift reduction by General Motors before Carney and US President Donald Trump started negotiations on a new economic agreement premature and disrespectful.
Under Canada’s remission framework, Unifor urged the federal government to “review and reconsider” GM’s tariff-exempt status. According to the government’s website, this framework exempts businesses from paying retaliatory Canadian tariffs on US goods.
In order to reiterate their dedication to Canadian investment and production, the union is also requesting that Carney speak with automakers.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations.
Though some of us still want to go for a first-hand experience of things, a significant number of people opt for used products instead of new ones, especially when it comes to the purchase of vehicles.
Our financial conditions have taken a tumble since the outbreak of the coronavirus pandemic, but new cars are getting costlier each day. Furthermore, as ironic as it is, the quality of these cars and their average lifespan are going down equally. Besides, for first-time buyers, going for used cars is always better as a decision. All of these reasons have boosted the sales of used cars.
Buying used cars in India is not at all pain, but all gain today! This is primarily because of the growing used car space in India, which is dominated by promising startups that are equipped with the technology of the age. Spinny is one such used car startup based in Gurgaon, Haryana that is disrupting the segment of used cars in India.
Read more about the brand Spinny, all the details of the used car industry, Logo and Tagline, Founders, Startup Story, Mission and Vision, history, Employees of the company, the Business and Revenue Model, Funding and Investors, Competitors, and more.
Spinny Company Details
Startup Name
Spinny
Also Known As
Spinny Cars , myspinny, Spinny Assured Cars
Legal Name
ValueDrive Technologies Pvt. Ltd.
Headquarters
Gurgaon, Haryana, India
Industry
Automobile, Automotive
Founders
Niraj Singh, Ramanshu Mahaur, Mohit Gupta, and Ganesh Pawar
Spinny is a reliable platform for used cars. Powered by cutting-edge technologies, Spinny promises simple, convenient, trustworthy transactions for all the users who look to buy and sell used cars.
The company’s platform contains a list of automobiles with full details that the buyers can check out. Furthermore, it also includes a test drive with a 5-day money-back assurance, thereby allowing the car owners to sell their vehicles and potential consumers to buy cars in an easy and transparent manner.
Sellers may arrange for an evaluation and accept an offer for their vehicle. Buyers may also go through the wide range of cars that Spinny offers online, choose a car, and book a test drive. Car owners may also put their vehicles for sale on the site and receive fast bids.
Spinny eliminates the danger of buying a used car and provides users with complete peace of mind. Its multi-step filtration means that the users always have the option of selecting from a pool of certified used automobiles of the greatest quality. When a customer buys a Spinny Assured automobile, he/she will be getting a used car that hasn’t been in an accident, hasn’t had its meter tampered with, has clean records, and has been properly inspected against a 200-point checklist.
Spinny – Industry
The used automobile market in India was valued at $561.13 million in 2023 and is predicted to grow to $738.57 million by 2032, with a CAGR of 3.10% between 2024 and 2032.
As opposed to the serious aftermath of the pandemic for the new car space, the impact of the COVID-19 pandemic on the industry was negligible. The industry is expected to significantly rise as more individuals desire independent mobility and new financial alternatives are incorporated into the used automobile market. Besides, after the pandemic onslaught, consumers have been forced to search for alternatives to new automobiles, and the used car sector has a lot of room for expansion in this area. Besides, manufacture and sale have also been hampered by the pandemic, which made the purchasers quickly resort to the used automobile market.
Spinny – Logo, and Tagline
Spinny Logo
Spinny has chosen red and black as its brand colors and the logo of the brand is crisp and catching, marked with the starting letter, “S”, of the brand.
Spinny’s tagline says, “Cars you will love to buy.”
Spinny – Founders and Team
Spinny was founded by Niraj Singh, Ramanshu Mahaur, Mohit Gupta, and Ganesh Pawar in 2015.
Spinny’s Founder and CEO is Niraj Singh. Niraj Singh has also worked as a Founding Partner at Outbox Ventures in the past.
Ramanshu Mahaur
Spinny and Karmabite were co-founded by Ramanshu Mahaur, who currently serves as the co-founder and CTO of the company. He was most recently a member of Adobe’s technical staff. Ramanshu graduated from the Indian Institute of Technology in Delhi with a Bachelor’s degree in Computer Science.
Mohit Gupta
Mohit Gupta is one of Spinny’s co-founders. Prior to joining Spinny, he worked at Flipkart from 2011 to 2014, holding several responsibilities.
Ganesh Pawar
Ganesh Pawar used to be Senior Manager of Business Development in Flipkart. He, then, co-founded Spinny. Now, he is building the food FMCG business at Udaan – an eCommerce-supply chain.
India’s used car industry has been getting a lot of attention for quite some years now. It is mainly due to the better value proposition that used cars offer, that more and more Indians are looking to opt for old cars than the newer ones.
However, the lack of proper information that is inherent in the process of the sales of used automobiles, the absence of trustworthy middlemen, the complexity of navigating through the variety of alternatives when it comes to buyers, and finding the correct price of the vehicles for sellers have all been roadblocks in this path.
Besides, the procedure of buying a secondhand automobile is cumbersome and overly complicated. Independents provide a wide range of rates and services to entice people to buy automobiles of dubious quality. Choosing from a pool of mint and lemon autos, for example, has a high likelihood of bad selection for a beginner. All these provided a cradle for the birth of Spinny.
Niraj Singh, an IIT-Delhi alumni, serial entrepreneur, and investor founded Spinny in 2015. His aim to alleviate young Indians’ automobile ownership woes led to the formation of the firm. Niraj invested $500,000 of his personal money into the company. He is now backed by numerous venture capital groups and has raised close to Rs 418 crore. Niraj saw a need to provide a quality experience for individuals buying used automobiles and decided to build a simple and clear platform for customers to collect information and purchase a car.
Niraj Singh, Ramanshu Mahaur, Ganesh Pawar, and Mohit Gupta embarked on a mission to develop Spinny in order to sift out the quintessential problems of annoyance and skepticism and break down the arduous procedure into a one-click solution.
Buyers may rest assured knowing that all of the cars on offer have been Spinny Certified, which means they have passed a thorough assessment by our expert inspectors. This guarantees that the buyer is fully informed about the vehicle’s condition and is making an educated selection. Buyers of Spinny-certified cars also benefit from a warranty on cars acquired via Spinny.
In addition, the organisation handles all documentation, from registration to title transfers, as well as aiding purchasers with financing their new acquisition. Spinny has finally brought actual ease and a smoother transaction to the used automobile market for both buyers and sellers.
The Spinny business initially started in Delhi NCR in 2015 and has seen quite a growth since then.
Spinny’s mission is to make car ownership accessible, simple, and delightful.
“Our goal is for the country to trust our method, believe in and enjoy our cars”, states the company’s website.
“Only four percent of people are satisfied with their experience of buying a used car. We are providing trust, transparency, and simplicity. Our aim is that the buyer should be able to purchase the car with the same confidence that he or she shows while buying a new car,” added Niraj.
Spinny – Business Model and Revenue Model
Spinny, transitioned from a customer-to-customer model to a full-stack one in which it buys, refurbishes, and sells old cars. According to the creator and chief executive officer Niraj Singh, the website sells close to 1,500 automobiles every month and is increasing at a constant pace of 15-16% month over month. Spinny hopes to roughly triple its current volume by the end of the year 2021, according to Singh.
âThere was a lot more capital available, but we wanted limited dilution in this round because our burn is very limited. We don’t have a runaway problem. It was just that we wanted to add an extra layer of security and the ability to experiment more,â Singh said.
Spinny has over 2 lakh customers and works with around 1000 people in over 11 cities, with ambitions to grow to 6 more by the end of the year, 2021. It now offers used cars in the INR 4-8 lakh range but intends to expand its services to include both cheaper and higher-priced vehicles.
In 2024, Spinny startup sells over 7,000 cars each month. Spinny’s online sales have also increased by 13% to reach 70% of the total sales.
Spinny raised around $513.5 million in funding over the 9 funding rounds it has witnessed to date. The last funding came in the form of an undisclosed funding round from Sachin Tendulkar after the huge Series E funding round on November 24, 2021, led by Tiger Global and Abu Dhabi Growth, which helped the company join the unicorn club of Indian companies. Currently valued at over $1.67B, as of December 2024, Spinny has already become the 4th Indian unicorn startup in the used car space and the 39th unicorn startup of India to achieve a unicorn valuation in 2021.
Date
Round
Amount
Lead Investors
December 14, 2021
Funding Round
–
Sachin Tendulkar
November 24, 2021
Series E
$283M
Tiger Global, Abu Dhabi Growth Fund
Jul 9, 2021
Series D
$103.30M
Tiger Global Management
Apr 7, 2021
Series C
$65M
General Catalyst
Sep 27, 2019
Series B
$43.7M
Fundamentum
May 21, 2019
Series A
$13.2M
Accel, Elevation Capital
Nov 13, 2018
Debt Financing
$4M
Blume Ventures
Jun 6, 2017
Seed Round
$1M
Blume Ventures
Spinny – Shareholders
Spinny shareholding as of November 2024 (source: Tracxn):
Spinny Shareholders
Percentage
Niraj Singh
9.7%
Mohit Gupta
2.6%
Ramanshu Mahaur
2.6%
Tiger Global Management
14.1%
Elevation Capital
12.5%
Accel
13.1%
General Catalyst
6.6%
ADFD
5.6%
Fundamentum
5.2%
Avenir Growth Capital
5.1%
Blume Ventures
5.3%
ESOP Pool
6.7%
Others
10.9%
Spinny Shareholders
Spinny – Acquisitions
Acquiree Name
About Acquiree
Date
Amount
Scouto
Scouto is an AI-powered connected car connectivity start-up.
Feb 10, 2022
–
Truebil
Truebil is a team of young, highly motivated professionals who strive to help you buy and sell used cars in the simplest way possible.
Aug 6, 2020
–
HopCar
HopCar is a provider of buy and sell car. Free Inspection. 15 days Sale Guarantee.
Jun 13, 2016
–
Spinny competes with its ESOP buyback for its current and former employees. The ESOP buyback plan announced on December 21, 2021, worth ($12 mn) INR 90 crores, was the first employee stock ownership plan that the company has seen to date.
Spinny – Growth and Revenues
Top Car Preferences: Maruti Suzuki, Hyundai, BMW, and Mercedes-Benz were the most popular in 2024.
Online Sales: 70% of purchases were made online in 2024.
Spinny Parks: 50% of deliveries were from new Spinny Parks in 2024.
Financing: 46% of buyers used Spinny Capital for financing in 2024.
Metro Growth: Bangalore, Delhi NCR, and Hyderabad saw the highest sales in 2024.
Spinny – Financials
Spinny’s financial performance from FY20 to FY24 shows strong revenue growth but continued losses. Revenue grew from INR 17.7 crore in FY20 to INR 3,821.9 crore in FY24, while expenses also increased, leading to a loss of INR 587.5 crore in FY24.
Particulars
FY24
FY23
FY22
FY21
FY20
Revenue
INR 3,821.9 crore
INR 3,380.7 crore
INR 180 crore
INR 39.7 crore
INR 17.7 crore
Expenses
INR 4,409 crore
INR 4,196.1 crore
INR 670 crore
INR 150 crore
INR 93.9 crore
Profit/Loss
INR -587.5 crore
INR -815.5 crore
INR -490 crore
INR -110.3 crore
INR -76.2 crore
Revenue grew by INR 441.2 crore (13.05%) from FY23 to FY24. Expenses increased by INR 212.9 crore (5.07%), reducing the loss by INR 228 crore.
Spinny Revenue:
Spinny’s revenue grew from INR 3,380.7 crore in FY23 to INR 3,821.9 crore in FY24, mainly due to higher revenue from operations.
Revenue Source
FY24
FY23
Revenue from operations
INR 3,725 crore
INR 3,259.8 crore
Other income
INR 96.8 crore
INR 120.9 crore
Total Revenue
INR 3,821.9 crore
INR 3,380.7 crore
Revenue from operations increased by INR 465.2 crore (14.27%), while other income fell by INR 24.1 crore (19.93%).
Spinny Expenses:
Expenses rose from INR 4,196.1 crore in FY23 to INR 4,409 crore in FY24, driven by higher purchases of stock-in-trade and finance costs.
Expense Type
FY24
FY23
Cost of materials consumed
INR 90 crore
INR 143.8 crore
Purchases of stock-in-trade
INR 3,495.2 crore
INR 3,242.9 crore
Changes in inventories of finished goods, WIP
INR 8.4 crore
INR (217.5) crore
Employee benefit expense
INR 391.7 crore
INR 393.5 crore
Finance costs
INR 90.1 crore
INR 67.7 crore
Depreciation, depletion and amortisation expense
INR 62.1 crore
INR 77.9 crore
Other expenses
INR 271.5 crore
INR 487.8 crore
Total Expenses
INR 4,409 crore
INR 4,196.1 crore
Purchases of stock-in-trade increased by INR 252.3 crore (7.78%), while other expenses decreased by INR 216.3 crore (44.34%).
Spinny Profit/Loss:
Spinny reduced its losses from INR 815.5 crore in FY23 to INR 587.5 crore in FY24 due to revenue growth and cost management.
Profit Type
FY24
FY23
Gross profit/loss
INR 326.7 crore
INR 137.8 crore
Operating profit/loss
INR -497.4 crore
INR -747.6 crore
Net profit/(oss
INR -587.5 crore
INR -815.5 crore
Gross profit increased by INR 188.9 crore (137.08%), and net loss reduced by INR 228 crore (27.96%).
Quick Summary:
Revenue: Increased by 13.05% (INR 441.2 crore), driven by a rise in revenue from operations.
Expenses: Increased by 5.07% (INR 212.9 crore), mainly due to higher stock-in-trade purchases and finance costs.
Profit/Loss: Net loss was reduced by INR 228 crore (27.96%) due to improved gross profit and controlled expenses.
Spinny, a used car startup, had laid off 5% of its workforce, or around 300 employees in August 2023, as the company merged the Truebil and Max platforms into the main platform. The reason for the layoff is to have cleaner and more focused execution going forward and to offer everything to customers on the main platform.
The company’s official statement on this “We have witnessed a sharp uptick in demand for reliable, budget-friendly cars as most people have resumed work from the office. By splitting our inventory of cars across different brand platforms, we were sometimes unable to offer enough options to such customers. With this consolidation, we should be able to meet the needs of these customers well.
Spinny is providing affected employees with a three-month severance package, faster ESOP vesting, and the option to maintain their assets as a show of support.
The trust issue is one of the major worries consumers have when buying used automobiles, according to Niraj Singh, co-founder, and CEO of Spinny. The startup’s rigorous and transparent inspection of the car, buying it from the owner, and then selling it to clients, addresses those concerns, Singh adds.
The business claims it is removing conventional intermediaries from the mix, making used car purchases more reasonable and reliable for clients. If a consumer is unhappy with the automobile they bought from Spinny, they will receive a complete refund.
Spinny started out as a used automobile marketplace, but according to Singh, the company has grown to become a full-stack platform. The pandemic harmed Spinny’s company for a few months, according to Singh, but the startup has now restored its pre-pandemic growth rates.
According to Singh, the outbreak of the deadly virus made many people wary about taking an Uber or Ola trip, prompting them to look into purchasing their own vehicles. Spinny’s CAC was also dramatically lowered, he claimed.
Though Spinny is an evolving startup that has already achieved a unicorn valuation, it is facing tough competition from its rivals in the used car space. Therefore, surviving in one such landscape with cutthroat competition is itself a challenge that Spinny is battling against.
Spinny – Future Plans
Spinny doesn’t want to be just another participant in the market in the coming year; instead, it wants to be the catalyst for changing people’s perceptions about used vehicle purchases. According to Niraj, the goal is to create a seamless shopping experience that is consistent with openness, quality, responsibility, and trustworthiness.
Spinny – FAQs
What is Spinny?
Spinny is an Indian used car buying and selling platform founded in 2015. It provides a seamless, transparent, and trusted process for purchasing and selling pre-owned cars.
What does Spinny do?
Spinny is a used car trading platform that aims to deliver affordable used cars via an easy and transparent process for everyone.
Who founded Spinny?
Spinny was founded by Niraj Singh, Ramanshu Mahaur, Mohit Gupta, and Ganesh Pawar.
Spinny founded in which year?
Spinny was launched in 2015.
Which companies do Spinny compete with?
CarDekho, Droom, CARS24, CarTrade, CarWale, Creative Webmedia Pvt Ltd, Carnation, CheckGaadi, Chehaoduo, CapCar, Shift Technologies, and Carlypso, are the top ten rivals in Spinny’s competitive set.
What is Spinny business model?
Spinny operates on a direct-to-customer (D2C) model for buying and selling used cars. It owns and inspects the cars, ensuring quality before selling them to customers through its online platform and physical hubs. This eliminates middlemen, offering competitive prices and a better customer experience. The company earns revenue from car sales, financing services, and value-added products like insurance and warranties.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved byFord.
Ford Motor Company (often referred to as Ford) is an American multinational automotive manufacturer based in Dearborn, Michigan. Henry Ford created the company, which was formed on June 16, 1903. The Ford brand offers autos and commercial vehicles, whereas the Lincoln premium brand sells luxury cars.
Based on 2015 car production, Ford is the second-largest U.S. automaker, GM being the first. As per 2017 data by OICA, Ford is the fifth-largest automaker in the world, led by Toyota, Volkswagen, Hyundai, and GM. As published by carlogs.org, Ford Motor is the World’s fourth-largest car company on the basis based on 2020 revenue. Ford’s Revenue is projected to reach $140.80 billion in 2023. With an annual growth rate (CAGR 2023-2027) of 1.86%, the projected market volume is $151.60 billion by 2027.
The firm became public in 1956, although the Ford family retains 40% voting rights through special Class B shares.
Ford Motor Company is an American automaker that designs, manufactures, distributes, and serves a wide range of Ford trucks, SUVs, automobiles, and Lincoln luxury vehicles.
Automotive, Mobility and Ford Credit are the company’s three segments.
The Automotive division is responsible for designing, producing, distributing, and maintaining Ford and Lincoln cars, as well as their components and accessories. Ford Mobility is a wing dedicated to innovation in the automobile sector. Ford Mobility is working in the field of designing emerging mobility services and also invests in new innovative ventures in the automobile sector. Ford mobility is also working to develop autonomous vehicles. While Ford Credit division provides automobile financing and leasing services.
Ford also holds ownership in Argo AI, a developer of autonomous driving systems, and Spin, a micro-mobility service provider.
Ford – Industry
Before the coronavirus crisis threw the globe into chaos, the automobile sector had been on an upward trend throughout 2018 and had just begun a period of stagnation in 2019. Between March and May 2020, global car sales fell by almost 15% worldwide. China was the first market to recover from the crisis, with car sales remaining at pre-pandemic levels for months after the outbreak. Electric vehicles, autonomous driving, and mobility services are expected to continue to fuel the industry, resulting in an overall rebound in the coming quarters.
Ford Motor Company – Founder
In 1903, Henry Ford established the Ford Motor Company.
Founder of Ford – Henry Ford
Henry Ford
Henry Ford was born on July 30, 1863, in Springwells Township, Wayne County, Michigan to Mary and William Ford. While Henry was just 12, he had his own small self-built machine shop where he spent much of his time experimenting with machines. He was just 15 when he built his first steam engine.
Henry started his career as a machinistâs apprentice in the shops of James F. Flower and Brothers in Detroit(a city in the US). In July 1891, Henry joined as an engineer at the Edison Illuminating Company of Detroit and became the chief engineer of the company in 1893. During his stint at the Edison Illuminating Company, Henry ford also developed a deep friendship with Thomas Edison.
Henry Ford’s automobile manufacturing journey began in the winter of 1893 when he built a modest one-cylinder gasoline model inspired by his interest in internal combustion engines. On a wooden table in the kitchen of the Ford house at 58 Bagley Avenue in Detroit, the first Ford engine flickered to life. His first vehicle, which was a frame-mounted with four bicycle wheels, was powered by a later version of that engine. The Quadricycle, Ford’s first automobile, was built in June 1896.
Henry Ford resigned from Edison Illuminating Company in August 1899, to start his venture. In 1899, he created the Detroit Automobile Company, which became bankrupt just within 18 months of its inception.
Leaving the firm paved the door to his achievement. âFailure is merely the opportunity to begin again, this time more intelligently,â remarked Henry Ford. With this guiding concept in mind, he tried again and established what is today known as the Ford Motor Company in 1903. He also revolutionized the automobile business by introducing the then-unheard-of âassembly line’ for his vehicle manufacture. Ford grew to be one of the world’s most successful and lucrative businesses that even managed to survive the Great Depression of 1930.
Ford is also the world’s largest family-controlled company, which has been controlled by the Ford family for over 110 years. Volvo, Land Rover, Jaguar, Aston Martin, and Mercury were previously part of Ford’s premium portfolio. These brands were sold to other firms over time, and Mercury was eventually phased out.
Ford – Mission and Vision
Ford’s mission statement says, âto make peopleâs lives better by making mobility accessible and affordable.â
This mission statement emphasizes the movement of people, which is a fundamental function of vehicles and the transportation industry. The fact that Ford places such a high value on mobility reveals the company’s social mission. The firm strives to make people’s transportation more efficient as one of the largest participants in the international market.
Ford – Slogan, Tagline, and Logo
Ford’s Company Logo
Ford’s first slogan that was used by the company in 1914 was âFord: The Universal Car.â Over the years Ford has tried to appeal to its customers across the world through various slogans. Some popular slogans by the company are –
Go Further
All-New Focus Drive One.
Everything We Do is Driven By You
Built Ford tough!
Ford has a better idea
Better Ideas. Driven by you
Built for the road ahead.
Have you driven a Ford lately
Quality is Job one
Thereâs a Ford in your Future.
If you havenât looked at Ford lately, look again.
Build for life in Canada
Ford. Designed for living. Engineered to last.
The Best Never Rest.
Answer the call to any adventure.
‘Built Ford Proud’ is Ford’s latest slogan.
Ford – Business Model and Revenue Model
Ford’s operations are divided into three categories: “Automotive,” which is by far the largest, “Ford Credit,” and “Mobility.”
The majority of Ford’s revenue comes from producing and selling automobiles to consumers. Electric vehicles and self-driving automobiles are two areas where the firm wants to increase its capabilities. Ford also makes money through its leasing and financial divisions, which provide automobile loans and lease agreements to customers.
Ford Credit is a Ford service that supplies dealerships and consumers with a variety of automobile finance options. These solutions enable dealerships to buy new inventory and expand existing capabilities, as well as provide clients with finance for car purchases and leases without having to leave Ford’s business environment. In the United States, Canada, and Europe, Ford Credit is offered.
Ford’s Mobility business is primarily the company’s research and development division for self-driving cars and the software that goes with them. This segment generates no revenue because the company has yet to sell any of these cars.
Don Bunker, Pmp, Csm – Project Management Consultant
Aakash Puntambekar – Product Development Engineer
Aarik Kimberlin – Process Coach
Aaron Anderson – Parts Specialist
Aaron Bresky – Product Development
Aaron Brunke – Product Engineering Designer
Aaron Estelle – STA Engineer
Ford – Sponsorships
Ford Center in downtown Evansville, Indiana, and Ford Field in downtown Detroit are two major sports facilities sponsored by Ford In the USA.
Ford also sponsors many events across the globe. Ford is a major sponsor of Sky media channel’s coverage of Premier League football. Ford also sponsored the UEFA Champions League for 20 years, before ending the sponsorship in 2014.
In recent times, automobile demand in important countries such as North America and Europe, as well as China, has fallen short of expectations. These excesses have boosted prices for automakers that have ramped up their capabilities to match projected future growth, as Ford explains in its annual report. In China, for example, surplus capacity in the car sector reached 78% in 2018. According to Ford, surplus capacity will average 47 million vehicles until 2024.
The rush by automakers to tap into the enormous Chinese market has heightened competitiveness in the sector. This, along with declining demand and the growth of Chinese automakers like Chery Automobile Co. and BYD Auto Co., has put pressure on firms like Ford to maintain high prices.
The development of startups like BYD and Tesla (TSLA) has fueled demand for hybrids and electric vehicles, increasing competition and putting pressure on traditional automakers to make their vehicles more efficient and technologically advanced.
Ford – Investments
Date
Organization Name
Round
Amount
May 2, 2022
Cavnue
Series A
$130M
Sept 22, 2021
Redwood Materials
Private Equity Round
$50M
Jul 23, 2021
Rivian
Private Equity Round
$2.5B
May 3, 2021
Solid Power
Series B
$130M
Oct 13, 2020
Solid Power
Series A
$28M
Jun 19, 2020
Motorq
Series A
$7.3M
Apr 2, 2020
Phantom AI
Series A
$22M
Dec 23, 2019
Rivian
Private Equity Round
$1.3B
Oct 29, 2019
Cellink
Series B
$22.5M
Apr 24, 2019
Rivian
Corporate Round
$500M
Nov 7, 2018
SAIPS
Corporate Round
$12.5M
Mar 19, 2018
Desktop Metal
Series D
$65M
Ford – Growth
Year
Amount
Percentage Increase/Decrease from last year
2022
$151.736B
+12.72%
2021
$136.433B
+4.63%
2020
$127.144B
-18.45%
2019
$155.9B
-2.77%
2018
$160.338B
+2.27%
Ford – Competitors
General Motors Company (GM), Honda Motor Company (HMC), Toyota Motor (TM), Daimler (DDAIF), Tesla Motors (TSLA), Navistar International (NAV), and Spartan Motors (SPAR) are Ford’s main competitors.
In 2022, Ford Motor Company received two awards, and 6 awards in 2021. Ford Motor Company took home the awards for Best Engineering Team 2022 and Best Global Culture 2022.
Other recent awards are as follows:
Best Company for Diversity 2021
Best CEO 2021
Best Company Culture 2021
Best Company Happiness 2021
Best Leadership Teams 2021
Best CEOs for Diversity 2021
Car of the Year 2019 â Finland
Car of the Year 2019 â Croatia
Belgian Family Car of the Year (two price categories) â Belgium
Irish Car of the Year awards: Small/Compact Car of the Year â Ireland
Autobild Golden Wheels Award: Best Compact car â Bulgaria
BusinessCar Awards: Best Lower-Medium Car â U.K.
Parkers New Car Awards 2019: Best Small Family Car â U.K.
2018 Scottish Car of the Year Awards: Best Family Car â Scotland
Auto Zeitung Auto Trophy 2018: Compact category winner â Germany
Great Austrian Automobile Prize: Start category winner â Austria
In the face of an auto sector destabilized by increased rivalry, uncertainty, and technological innovation, Ford has launched a “global redesign” to become more nimble and less bureaucratic. According to Ford CEO Jim Hackett, this revamps promises to save $14 billion in expenses by 2024.
Cutbacks Ford eliminated about 3,000 of its paid workforce in the U.S., Canada, and India. The company was looking to lay off as many as 8,000 positions in a move to shift its focus to electric vehicles. Ford promotes the layoffs as part of its new, creative approach, but others view them as a last-ditch cost-cutting move.
Ford stated in January 2021 that it would devote 90% of its worldwide capital allocation through 2023 to a shift to trucks, SUVs, and commercial vehicles. This means that Ford will phase out sedans and other compact automobiles during the next four years.
Self-driving cars Ford is expanding its investment in self-driving cars, as shown by its Mobility business unit. This is undoubtedly a forward-thinking move on Ford’s side, but breakthrough autonomous cars are unlikely to arrive fast enough to provide the benefit Ford requires. Ford is developing its first fully self-driving car, with a cost of $2.7 billion.
Electric and Hybrid Vehicles Ford announced intentions to invest $11 billion in electric vehicles in January 2018, much above its prior aim of $4.5 billion. By 2022, the firm hoped to have 40 electric cars on the road thanks to this investment. The rest would be plug-in hybrids, with 16 being entirely electric.
Ford has established itself as the second electric vehicle company in the US after Tesla. Since the Mustang Mach-E model debuted in late 2020, Ford has produced 150,000 of them. It intends to build 600,000 by 2023 and over  2 million EVs annually by 2026.
Conclusion
Ford is a well-established American automotive company known for producing a wide range of vehicles, including cars, trucks, and SUVs. With a history of innovation and a commitment to quality and durability, Ford has built a loyal customer base and remains a major player in the global automotive industry.
FAQs
What does Ford do?
Ford Motor Company is an American automaker that designs, manufactures, distributes, and serves a wide range of Ford trucks, SUVs, automobiles, and Lincoln luxury vehicles.
When was Ford founded?
In 1903 Henry Ford, an American automobile manufacturer established the Ford Motor Company.
Who founded Ford?
Henry Ford established the Ford Motor Company in 1903.
Which companies does Ford compete with?
General Motors Company (GM), Honda Motor Company (HMC), Toyota Motor (TM), Daimler (DDAIF), Tesla Motors (TSLA), Navistar International (NAV), and Spartan Motors (SPAR) are Ford’s main competitors.
Ford company belongs to which country?
Ford is an American based in Dearborn, Michigan, U.S.
Volkswagen is a very familiar name for all automobile enthusiasts across the world. This German motor vehicle manufacturer has fared on the path of success and popularity due to its uncompromising quality and commitment. It was founded on 28 May 1937, by the German Labour Front and is headquartered in Wolfsburg, Germany.
Going by the factual pieces of evidence it can be seen that the Volkswagen group has played a significant role in making cars a product of the middle-class by being a very elitist possession, especially during the second world war. However, it is important to note that Volkswagen is not just a single popular brand. They in fact own many other brands as well. This article will look into the various companies that are owned by the Volkswagen group
It is an independent automotive software company under the Volkswagen Group that consolidates and expands the software competencies of the firm. With a goal to make the best use of technology to benefit the automotive industry, this company is on its way to developing more sustainable automotive services. It was established in 2020.
Volkwagen Group Components
Volkswagen Group Components Logo
This company was founded in 2019 as a part of Volkswagen group strategy 2030. They aspire to improve the potential and viability of component activities through cross-brand management. They are divided into new business areas that are known as Engine & Foundry, Gearbox & Electric Drive, Battery Cell & Battery System, Charge & Energy, Chassis and Seats. Today, they manage over 75,000 people across the globe.
Volkswagen Financial Services
Volkswagen Financial Services Logo
It was founded in the year 1949 and since then has been performing well even during the Covid 19 pandemic. They focus on finding better services with regard to the digital spaces. Their primary focus area revolves around dealer and customer financing, leasing, bank and insurance activities, fleet management and mobility services. They are represented in over 48 markets across the globe.
MOIA
MOIA Logo
MOIA is a company under Volkswagen that focuses on offering mobility services to city dwellers. It was founded in December 2016 and since then has been working towards its primary goal of recruiting the nuances of mobility amongst the people in urban areas. They develop on-demand services including ride pooling. With the Volkswagen group, they are able to thrive under an experienced company while having exposure to a startup culture.
SEAT
Seat Logo
Seat is the first car manufacturing company in Spain and was founded on 9 May 1950. Since then they have been demonstrated evidence that stands as a testament to the robust technology and industrial competence that the firm maintains consistently. Today the company has marked its presence in more than 75 countries employing over 15,000 people. They sell vehicles under two brands namely SEAT and CUPRA.
Skoda
Skoda Logo
Skoda is a Czech Republic company that was founded in 1895 by Vaclav Laurin and Vaclav Klement. It is one of the oldest car manufacturers in the world that is functional even today. For the last 30 years, Skoda auto has been a very important part of the Volkswagen group. Skoda has also not forgotten their commitment to creating a sustainable environment like all other brands under Volkswagen. They are driven by the exporters of a well-construed sustainability advisory board.
Scania
Scania Logo
The Swedish brand was founded in 1891 by Philip Wersen and Surahammarsbruk, which is a centuries-old ironworks. Over the years, they ran into many financial difficulties before they became the general agent for Volkswagen in Sweden. By 2008, Volkswagen owned over 68% of the voting rights and 37.73% of share capital. By 2014, Scania was wholly owned by the Volkswagen Group. The company has grown so much under Volkswagen that in 2020, Scania released its fully electric truck to become one of the topmost companies in the commercial vehicle industry.
Ducati
Ducati Logo
Headquartered in Bologna, Italy, Ducati has never failed to impress motorbike lovers. It was founded by Antonio Cavalieri in the year 1926. Ducati was taken over by Volkswagen in 2012 for $1.2 billion. Through Ducati, Volkswagen has been able to maintain a stronghold in the motorcycle industry as well.
Porsche
Porsche Logo
This popular brand that is known for its premium qualities was founded by Ferdinand Porsche in 1931. It is said that the Beetle designs by Volkswagen were influenced by Porsche. Although the companies agreed to merge in August 2009, it was only towards the end of 2015 that Volkswagen had the majority shareholding in Porsche.
Audi
Audi Logo
This famous automobile brand became an important part of Volkswagen in 1965. It has been offering premium vehicles since its inception in 1909. Today Audi cars have become a measure of the quality of life and place their owners in a certain class of society.
Lamborghini
Lamborghini Logo
Lamborghini was founded by Ferruccio Lamborghini in the year 1963. Since the founding of this Italian company, it has been a competition to Ferrari due to its uncompromising design and quality. The firm shot to fame within a few years. However, due to financial burdens, Lamborghini had to shut down in 1973. After several changes of ownership Volkswagen finally took over the firm in the year 1998. Through the deliverance of unique hybrid technologies, they have generated billions in the automobile industry today with no turning back since the acquisition.
Bentley
Bentley Logo
Bentley was founded in 1919 and Crewe of United Kingdom. Today Bentley is an end to end net carbon neutral company which adds to the unmistakable reputation of the firm. They have been a part of the Volkswagen group since 1998.
It is a subsidiary of the Volkswagen group that was founded in the year 1998. This luxury brand of hyper sports cars is based in Molsheim, France. Today strong brands like Porsche and Rimac have agreed to formulate a joint venture with Bugatti wherein they will produce hypercar models. Right now the two hypercar models that are planned are the Bugatti Chiron and the all-electric Rimac Nevera.
Traton
Traton Logo
Under the umbrella of Volkswagen, Traton has emerged as one of the largest commercial vehicle manufacturers across the globe. Recently they merged with Navistar which has further elevated the prospects of the firm. They aim to become the leading brand in the field of commercial vehicles by giving importance to sustainability and digitalisation.
MAN
MAN Logo
The MAN Truck and Buses are two of the most popular additions of this brand under Volkswagen. However, to focus on the global plans for the premium end of the market, MAN trucks exited the Indian markets 2 years ago.
IAV
IAV Logo
Volkswagen AG and IAV is an auto parts maker that has created standards to follow for latecomers. Volkswagen owns more than 50% of its stake in IAV. It was founded in Berlin in 1983 by Dr Hermann Appel. Over the years they have developed electric vehicle rechargers that are built into the road for which they have submitted patents.
Renk
Renk Logo
It was a subsidiary of MAN since 1923. As Volkswagen acquired MAN in 2011, Renk became a direct subsidiary of Volkswagen. However, the latter happened in 2019. Renk is a remarkable automotive company that is into the manufacturing of engines for trucks, ships and combat defence vehicles.
WirelessCar
WirelessCar Logo
In 2018 Volkswagen group acquired a 75% of stake in WirelessCar which was owned by Volvo information technology AB. it will help the parent company to further extend its mission of improving connectivity. This Swedish telematics specialist is expected to accentuate the growth of the digital ecosystem and thereby provide extensive connectivity for vehicle generations to come. It is expected that WirelessCar technology will ensure a stable and safe exchange of data between various platforms.
From being one of the pioneers in bringing cars into the midst of middle-class households, Volkswagen continues to be the baton bearer of various other important milestones since then. Today, Volkwagenâs electric vehicles are the most frequently delivered passenger car across the world.
Through digitalisation, they have transformed the present and future of the company. They have brought in relevant software updates through which the company have been able to remain customer friendly.
Inadvertently, these efforts have helped them remain focused on their goals to be the best in the industry. The zeal of Volkswagen to not only focus on the present but also invest intelligently in the future is something that has to be appreciated and looked up to.
FAQs
What subsidiaries does Volkswagen own?
Bugatti, Traton, MAN, IAV, Renk, WirelessCar, Lamborgini, Porsche, Ducati, Scania, Skoda, Audi, Seat, and MOIA are some of the subsidiaries of Volkswagen.
Is Bugatti Owned by Volkswagen?
Yes, Volkswagen acquired Bugatti in 1998 for $50 million in an all-stock deal.
When it comes to automotive manufacturing, Maruti Suzuki India Limited has caught all the fame. Although today, the automobile industry has developed immensely. But the charm and popularity of Maruti Suzuki haven’t failed!
The company is a subsidiary of Japan’s Suzuki Motor Corporation. In India, Maruti Suzuki is considered the largest manufacturer of passenger cars. In fact, it’s Maruti Suzuki who is credited for the revolution of the ushered automobile industry in the country.
Maruti Suzuki begins its journey with the legendary Maruti 800 and today, the company has come up with around 16 car models along with more than 15 variants. Maruti Suzuki manufactures a broad range of passengers as well as luxurious cars like Alto 800 to Ciaz.
ââMaruti Suzuki offers the facility of car financing and pre-owned sales of the car fleet management. Its factories are established in Gurgaon and Manesar, Haryana, and the art R&D center in Rohtak. Maruti Suzuki is very promising and remarkable with its products and services. In this article, we will be discussing the business model and strategies of Maruti Suzuki. Let’s begin!
Why Maruti suzuki cars are so popular? | Maruti Suzuki Business Strategy
ââAbout Maruti Suzuki
ââMaruti Suzuki was formerly known as the Maruti Udyog Limited, India, and functioned through a joint endeavor between the government of India and Japan’s Suzuki Motor Corporation, signed in 1981.
Maruti Suzuki is widely famous as the largest company in the automobile industry. The company is headquartered in New Delhi and was founded in 1981 by the government of India.
Later in 2003, the automobile manufacturer- Maruti Suzuki was sold to the Suzuki Motor Corporation and functioned as its subsidiary. The Suzuki Motor Corporation owns the capital of 56.2% in the Maruti Suzuki company. Alongside, the company has a market share worth 53% in the market of the Indian passenger car.
The company launched its first product– Maruti 800 and resulted in 13 months of record production. The chairman of this prominent automobile manufacturing company is R.C. Bhargava and Kenichi Ayukawa is the managing director and CEO.
Where does Maruti Suzuki operate?
ââMaruti Suzuki India Limited is the most prominent automobile manufacturer across India. The company is a subsidiary of Japan’s Suzuki Motor Corporation. The automobiles manufactured by Maruti Suzuki are used by almost every third individual in India.
Key Products of Maruti Suzuki
ââMaruti Suzuki offers a great range of cars such as the Maruti 800, the first-ever Maruti car; Alto 800, Alto K10 as the entry-level cars while Swift, Wagon R, Ritz as the stylish hatchback.
ââMaruti Suzuki India Limited puts its entire focus towards the young aged people. Its target audience is generally around 30 to 35 years old. Half of the Nexa customers belong to the age group of 30 years.
ââThe business model of Maruti Suzuki Limited India is based on its wide range of cars and customer services. The automotive company has recently shifted to the digital platform due to the marketing crisis that occurred from the covid-19 pandemic.
To keep up with its competitors, Maruti Suzuki opted for the digital world for better content marketing and more customer engagement. The digital platforms have become a very crucial part of Maruti Suzuki’s Business Model. Around one-fourth of its total marketing budget went off to the delicacy of digital media.
ââMaruti Suzuki manufactures its automobiles based on the requirements and facilities of the middle class as well as the upper-class section. That’s why the company produces a broad range of its products at affordable rates and features.
ââMaruti Suzuki follows a certain model to cope with the difference between online marketing and the dealership experiences of the customers. The company has brought around 900 dealerships to the online platforms through India’s largest Dealer Digitization Program by the company. With the developing digital technologies, Maruti Suzuki has been earning a great sum of deals and customer support.
ââMaruti Suzuki is considered India’s largest automobile manufacturer with around 50% of the total market share. The company earns way more profit when compared to Korea’s Hyundai, its biggest market rival. The automobile manufacturers do not provide a clear figure of the company’s profit on each deal but they do declare the net profit earned by the company.
ââAccording to the calculated data, Maruti Suzuki has sold more than 7.5 million automobiles in India, to date. And around 500,000 units have been sent mostly to European countries. The company’s profit includes the money generated through the sales of spare parts of the automobile. However, the profit differs based on the car’s size, features, and model. The larger cars are expected to bring more profit to the company’s account.
From the latest calculated data, Maruti Suzuki has its revenue worth Rs. 16,997.9 crore along with a profit of Rs. 1,391 crores.
Conclusion
ââMaruti Suzuki is one of the most prominent automobile manufacturers across India. The company has had an incredible journey since 1983 when it launched its first car- Maruti 800. The company offers a great range of cars with amazing features.
Maruti Suzuki follows a very strong and remarkable business model and now, with digital media, Maruti Suzuki is growing even more. The company has a long run ahead. Stay tuned for more updates!
FAQs
What is the revenue of Maruti Suzuki?
The revenue of Maruti Suzuki is 78,994 crores INR in 2020.
Who is the CEO of Maruti Suzuki?
The CEO of Maruti Suzuki is Kenichi Ayukawa.
When was Maruti started?
Maruti was founded by the Government of India in 1982.
What are the most sold models of Maruti Suzuki?
Most sold car models of Maruti Suzuki are:
Maruti Suzuki Alto 800
Maruti Suzuki WagonR
Maruti Suzuki Baleno
Maruti Suzuki Celerio
Maruti Suzuki Swift Dzire
Maruti Suzuki Ignis
What is Nexa?
NEXA is Maruti Suzuki’s premium sales channel for Maruti Suzuki premium & luxury Sedan and Hatchback cars in India.
With over 1.3 Billion people, India is the second most populated country in the world and when there are so many people, almost everything is larger than life here. So naturally, it is not a surprise that India is the fifth largest automobile market in the world in terms of sales. Brands like Maruti Suzuki, Hyundai, Tata Motors are already a hit in this country and are making heads turns of their customers with their amazing automobiles.
While some brands experience immense success in the country, some of them got exposed to failure as well. In this industry, some automakers failed to make a place in the fifth-largest automobile market in the world. This article will talk about all those automakers that failed to set their foot in India and the reason behind it. So without any further ado, letâs get started.
âCar designers are just going to have to come up with an automobile that outlasts the payments.â
Why Automakers are Struggling to Succeed in India?
Two brands that can set their name on the top automakers’ list with their powerful performance in the country are Honda and Hyundai. It wouldnât be wrong to say that they are ruling the Indian market.
On the other hand, there are some of the automakers who are struggling in our country to lay their foundation. Some of the reasons for this are listed down below:
Increasing fuel price is said to be one reason.
It is also revealed that some concessional GST rate was not allowed by the Government.
One of the reasons is also the higher road taxes.
India is a price-sensitive market and people mostly focus on small cars here, for their needs. A company has to be very precise about this.
Planning of the products by the automakers was poor and naturally, they were not able to adapt to the market.
Another reason is some of the companies are not able to judge the growth of India’s automobile market.
India is a country where a single company dominates more than a quarter of its sales. Maruti Suzuki and Hyundai are the top two companies that dominate the automobile industry. There are some global known brands who failed to set their foot in India and we are here to discuss them.
Harley Davidson
Harley Davidson
The legendary American Cruiser bike was not able to set up its brand in the Indian market. It is said that in 10 years, Harley Davidson was able to sell a little more than 27,000 units in the country. While its competitor Royal Enfield sells double the number of bikes every month. Some of the reason for this is down below:
Not the Right Market
India is a country that is considered one of the biggest two-wheeler markets in the world, but it is not a market for big bikes. In India, over 90% of two-wheelers are small motorcycles and scooters as they are easy to maintain as well.
Expensive Offerings
Another vital reason has to be the price; the most affordable bike from this brand costs somewhat 4.7 Lakh. That kind of pricing is extremely high for the people living in a country like India.
Tough Competitors
Royal Enfield proved to be a better companion for the Indian customers over Harley Davidson, in terms of price, lighter in weight, and easier to maintain.
High Repair Cost
Indiaâs roads are somehow filled with potholes and Harley Davidson bikes are quite expensive to repair if it is damaged by potholes.
General Motors
Chevrolet by General Motors
This American multinational automotive manufacturing company is considered as one of the best and biggest manufacturers in the country but unfortunately, it was not able to establish its power in India. When General Motors first came to India, it was able to sell quite a decent number of cars but with time, the average popularity started declining. So, General Motors 2017 decided to close its operation in India. Some of the reasons that it failed in India are:
Failed Business Strategy
The management of a company is one of the most important factors for its survival. As per reports, decisions regarding the company took a lot of time which resulted in not being able to reach a proper strategy for the business at a time.
Weak Dealership Networks
The dealership networks of General Motors were quite weak. The customersâ main issue was with the dealerships as they were not that confident regarding the products of GM.
Bad Resale Value
GM launched over 20 different models in 20 years and also withdrew 10 of them. Naturally, the change of the model lineup affected the resale value badly, and the customer service was also not up to the mark.
Fierce Competitors
General Motors’ technology was not that modern. Reports said that there are cars that barely pass the emission tests. Other brands focused on updating the technology of their car and were quite fierce competitors for GM.
Failed to Attract the Right Audience
GM never introduced top models that are famous in other countries in India. Naturally, it was not able to attract the attention of people in India.
Ford
Ford
Probably one of the biggest shocks the Indian automobile market got when Ford decided to stop making cars in India. The products were well made and were affordable to buy as well. Still, it failed to crack the Indian market, and the reasons are down below:
Sudden Rise in the Price Factor
The sudden rise in the price factor of Ford is one of the reasons, the company lost its place in the Indian market, the maintenance cost started rising of the new models. This high ownership cost became a problem for the customers; which also resulted in decreased sales.
Not Concentrated on the Right Models
Ford didn’t concentrate on SUV when it started getting momentum. Thus it misses out on a great opportunity to use the model to encourage the brand in the Indian market.
Wrong Investment Decisions
The cost structure is another problem, Ford invested where it was not needed, for example, they invested in world-class factories. It was not able to meet the expectations of its potential customers.
Lack of Proper Marketing
Ford slugged in making its brand big in India, while other brands like Hyundai worked 24/7. This is one of the reasons, plus the aggression that was needed for marketing, was missing in Ford’s startegy.
The Automobile market in India is a huge one, one needs to concentrate on various structures to make their brand a successful one in the country. The automakers that failed in this country are a big lesson for those automakers that wanted to make the 5th largest automobile market a hub for their brand.
FAQs
Which Indian car companies are closing?
Ford, General Motors, Fiat, and Harley had exited the Indian automotive market.
Which car company stopped making cars in India?
Ford India closed its operation in 2021 due to huge mounting losses.
Owning a luxury car is one of our childhood dreams for most of us. Be it owning a normal car or a luxury beast on the road, a four-wheeler is one of the goals that people dreamt to achieve in their life. Luxury cars are quite common in the cities of UK, US and UAE but now they are gradually becoming familiar in the streets of the cities of India as well.
Whatâs better to choose your dream car from a showroom that has some of the biggest collections of luxury cars? In this article, we are going to talk about Indiaâs largest buyer and seller of luxury used cars that is Big Boy Toyz. So without any wait, letâs look at how does Big Boy Toyz make money.
âTake care of your car in the garage, and the car will take care of you on the road.â
Big Boy Toyz is also known as BBT was founded in the year 2009 by Jatin Ahuja. His goal was to transform and make the previously owned exotic car business big in a country like India. One can find cars like BMW, Audi, Range Rover, Aston Martins, Bentley, Lamborghini, and others parked in their showrooms.
Jatin Ahuja, Big Boy Toyz Founder
At first, it was a one-showroom company based at Gurugram, it is also where the headquarter of the company was situated. Now, it can be found in Hyderabad and Mumbai as well. Ahuja started the business with an investment of just âš70,000. It became so popular that, in its very first year it experienced a turnover of âš6 Crore.
Big Boy Toyz Showroom
Over the years the brand has secured to expand its name over the industry and secured its name in the list of top businesses in the country. In 2017, it gave an opportunity to its customers to buy luxury cars online, a first for any company in the country. Not only that, but BBT also started dealing with Premium motorcycles like sportbikes, cruisers, and other exotic two-wheelers in 2019.
By 2023, it is said that Indiaâs used car market is to cross the $25 billion mark and Bigg Boy Toyz seems to be leading this industry with its strong calibre.
Target Audience of Big Boy Toyz
Jatin Ahuja started this business with premium car dealers. Since 2009, BBT has supplied over 6000 cars to people from different cities of India. The prices of the cars are somehow between âš50 Lakhs to âš4 Crores, naturally, they target the customers who are celebrities or are from the upper-middle-class that want on getting luxury in their collections of four-wheelers.
Jatin Ahuja with Bollywood Actress, Neha Dhupia
These people are free from the stigma of buying pre-owned cars and are at the age of 35 to 50 years. With its price range, it has now started working on making luxury cars accessible to other sections of society as well.
Business Model of Big Boy Toyz
BBT mainly focuses on selling luxury four-wheelers to the customer and that is mainly how they make money. The quality of the cars that they sell to their customers is what makes them more unique. Their USP is all about making their customers happy.
Price definitely plays a big role in attracting customers but apart from that, another thing that plays a significant role is how pre-owned cars are owned by some of the biggest celebrities in the country. To be able to drive a car that is driven by their favourite celebrity is quite a good offer to be missed.
How does Big Boy Toyz Make Money?
Celebrities from the Bollywood industry and sports industry are some of the major customers of Big Boy Toyz. They mainly buy and sell their cars as well, because they lose interest in the luxury beast quite quickly than expected when another catches their eyes. Â
With its showrooms in three of the business cities in the country, it has been able to attract the attention of the customers quite well. In a year, it has been able to sell 340 to 400 cars easily. They mostly sell one to two cars a day. This is how the company generates revenue mostly. It has also partnered itself with Dharma production and with MTV Music Television Channel;
What is Unique About Big Boy Toyz?
Some of the features of BBT that make it unique are listed below:
It mainly deals with buying and selling luxury cars and now some bikes as well.
Every car that is in the showroom of BBT goes through 151 quality checks before it is certified by BBT.
Big Boy Toyz provides all the insurance history of the preowned cars to its customers.
BBT also takes note that all the cars have not run more than 20,000 KM.
BBT ensures that none of the carâs meters is tampered with or face any kind of problems and is as good as new.
Revenue of Big Boy Toyz
The revenue of Big Boy Toyz was between âš100 – âš500 Crore as of the financial year 2020. Surprisingly even during the Covid, the brand was able to sell over 140 luxury cars in just the first half of the fiscal year. BBT experienced a 48% increase in the demand for luxury cars post the first lockdown during the Covid.
BBT is a kind of company that is literally giving an opportunity to their customers to own their dream cars. The best part is that, even after the Covid lockdown, they experienced a surge in the demand for luxury cars. The company is proving its mettle every day, by growing its business in the tough time, it is surely going to lead the pre-owned car market in the near future.
FAQ
How does Big Boy Toyz make money?
BBT sells preowned cars to customers, its main target audience is celebrities or the upper-middle class who are looking for a preowned luxury car. They sell one to two cars a day.
What is the business of Big Boy Toyz?
Big Boy Toyz mainly focuses on buying and selling pre-owned luxury cars.
Who is the owner of Big Boy Toyz?
Jatin Ahuja is the founder and managing director of Big Boy Toyz.
The automobile business is one of the worldâs fastest expanding and evergreen industries, particularly in India, where it plays a significant role in the countryâs economic growth. Customers who are enthusiastic about cars and bikes will gain most from the industryâs perception of various automobiles culture of the industry. Droom is an online marketplace in India where you can buy and sell new and used cars. Sandeep Aggarwal established Droom in 2014. Droom provides a large variety of automobile categories and also other all connected services such as warranty, insurance, finance.
A variety of elements influence a customerâs decision-making process when acquiring a vehicle, including price, performance, mileage, and vehicle ratings and reviews. Customers look for easy online platforms for buying and selling automobiles as the use of the internet and technology for activities such as shopping grows.
Droom is a renowned autosite that provides an online platform for the vehicle industry. This is a digital automobile platform that employs technology to facilitate end-to-end vehicle sales and purchases from the vendor to the buyer. Droomâs broad and thorough platform allows users to buy or sell a variety of vehicles, from bicycles to aeroplanes. Droom is the largest online automobile platform in India for buying both used and new vehicles, and is also the fourth largest E-commerce site, with an 80% market share of Indiaâs online automobile transactions.
Droomâs business began in Delhi as an online marketplace for old vehicles, but after three months, it expanded to include two-wheelers as well. The brand spread its services across 100 cities within a year. After another six months, the company began offering services such as roadside assistance, warranty, and insurance. They also expanded their services to include seaways, planes, bicycles, and other vehicles.
Business Model of Droom
Droom’s Business Model
Droomâs tenacious business model was important in its growth and success. Let me first define what the term âbusiness modelâ means before examining Droomâs business plan.
A business model is a form in which an organization is built, that supports the practicability of a product or a company and portrays how an organization operates and goes forward to achieve its aim. As a result, a business model encompasses all of an organizationâs operations and regulations.
Droomâs business model is divided into four categories: business to consumer, customer to customer, customer to the business, and business to business. The business to consumer model accounts for the majority of its revenue (approx. 88%), with the customer to business and customer to customer models contributing 10%, and the business to business model accounts for the remaining 2%.
Value Proposition of Droom
A value proposition is a value that a firm claims to deliver to its consumers, and customers prefer to buy their products or services based on that value. Droomâs proposition of value is unique, consisting of pricing, trust, and transparency. It provides buyers with a low cost and large selection, while sellers have access to a large number of online shoppers, a full range of e-commerce services, and so on, allowing them to manage their online store at Droom.
Droom has become the first car gateway worldwide to house the entire ecosystem of the automotive, with additional elements such as price, finance, history, tools, and marketplace.
Droom provides its customers with a variety of ecosystem products and services which are mostly technology driven by combining, data science and artificial intelligence such as using the âECO Appâ for getting vehiclesâ inspection reports. It also offers purchasers a full circle trust score to verify that the sellers with whom they are engaging can be trusted.
Droom launched a pricing system for automobiles called Orange book value (OBV). It is the first company to introduce this feature in India. This assists dealers and consumers in determining the fair market price of automobiles. This is data-driven and unbiased. Consumers can also use this tool to see if a vehicle is available on the market. It also has Droom discovery, Droom assists, and Droom credit to help buyers and sellers.
Division of Customers in Droom
Droomâs target market is online consumers and internet users. In a larger sense, the companyâs customer sector is classified into four categories: Buyers, Sellers, Dealers, Enterprises.
Droom has created four marketplace types to ensure harmonious and smooth buying and selling operations. It offers a variety of purchasing choices to meet the needs of each buyer, which creates a major trust factor.
Droom strives to be incredibly transparent. It allows sellers to upload an unlimited no. of listings and promote to a large audience on the internet, and it allows sellers to sell both used and new vehicles.
Droom offers dealers self-service accounts, such as StoreManager. Dealers can use this to run and manage their internet company from anywhere at any time.
Droomâs customers also include businesses involved in the automobile industry, it provides vertical enterprise solutions. It also offers a variety of effective advertising options.
Important Resources of Droom
Droom uses technologies such as AI, Machine Learning, Data Science, and Big Data in its core services such as customer assistance and the development of various tools such as OBV, and so on. These are the key resources of Droom. Labs of Droom are dedicated to using world-class technology apps to provide excellent user experience and user satisfaction.
The company has a customer-centred approach and its trained and talented team of officials reach out to buyers and sellers helping the organization reach a certain level of growth.
Client Relations with Droom
Droom focuses on establishing trustworthy and strong client relationships and strives to provide excellent customer support and management, that is its assistant tool: Droom Assist. This tool helps buyers and sellers with guidance and consultation services. It also helps in transactions of its customers by making them easy and transparent. Droom improves its relationships with consumers by providing security to their funds with the use of easily refundable tokens.
Major Activities of Droom
Droom encourages its services and features through marketing and promotional activities on several social media platforms such as Facebook, Linkedin, etc. It also undertakes researches at its AI labs to develop improvements that would enhance customer satisfaction.
How does Droom Make Money?
Droom mainly has four sources to earn revenue that are, Service fees, Premium tools, Subscription, and Advertisements.
The service fee is the main source of revenue, and this is charged on every successful transaction on the platform. This varies according to the vehicle type.
The subscription plan is offered to various big auto dealers, and the company provides them with online products and services.
Its premium tools include OBV, Droom credit, etc. Droom also earns a lump of money from advertisements as it advertises different auto brands on its platform. This also helps in doubling traffic on the platform.
Competitors of Droom
Droom faces major competition from companies such as Car24, CarDekho, OLX, and Quickr. Droom has several advantages over its competitors such as, it follows all the models of business and it is very efficient for buyers and sellers to get on the platform and use its services and provides an end-to-end service.
Conclusion
Recapitulating, Droom operates on a Business model, a plan that is well-integrated with technological advancements and a progressive model. It gives details to distinctive marketing activities. In the future, when automotive sales are expected to skyrocket, Droom will be facing tough competition, even though it has a big advantage overall.
FAQs
What does Droom Company do?
Droom is India’s first automobile e-commerce platform that allows you to buy and sell automobiles online.
How does Droom make Money?
Droom mainly has four sources to earn money that are, Service fees, Premium tools, Subscription, and Advertisements.
Middle-class people are looking to buy the best car at the cheapest price. Well, rarely these two combinations can be found in new cars. Droomâs platform provided an opportunity for second-hand car or bike buyers to buy the vehicle that people wanted at in much cheaper price than new ones.
Droomâs platform also became an opportunity for sellers because they are the ones posting images and pictures of their car and bikes so that they can find a buyer for them. Droom came into the market when there was already an existing application like OLX. But, how did they gain peopleâs attention and become one of the most reliable platforms when it came to buying and selling second- hand cars?
It was all about the marketing strategy that the company adopted. The company focussed on efficient marketing and made sure to reach out to as many people as possible.
Droom is an e-commerce company that was founded in 2014 by Sandeep Aggarwal. Droom is an online application platform where people can either buy or sell second-hand cars and bikes with a fresh perspective. The company has its headquarters located in Gurugram.
Droomâs business is primarily in creating a marketplace in India to help people buy and sell used cars (multi-category). Sellers on this platform are provided with useful tools to manage their listings. Droom became the 17thIndian startup to achieve the title of a unicorn as a high-profile investor.
Droomâs services were appreciated by most users because a deal could be done between a buyer and a seller within five days. This was pretty amazing and a new way of bringing a service to the people.
Droomâs Marketing Strategy
Droom logo
Droomâs marketing strategy is quite simple yet effective one which is being able to attract new users to its website every day. There are four to five strategies that the company uses to market and brand its company. Some of them are as the following.
Facebook (Meta) Community Advertising
Indiaâs most trusted motor place i.e. Droom created a community page on Facebook where the company is carrying on with its marketing. This is one of the simplest methods of marketing to attract a large number of customers at a single time.
Impressions
Also known as âad viewâ impressions means a metric system that is used to quantify digital views in a piece of content. To put it in simple words, impressions are all about online advertising.
Targeted Mailers
Also known as email marketing is what Droom uses as one of their marketing strategies. Once a user becomes a subscriber then the user receives emails from the company regarding deals and offers. A targeted mailing list is important for the profitability of the business. This is why Droom focussed on such marketing techniques.
Banner Advertisements
Banner advertisements again are one of the common methods of marketing not only for other businesses but for Droom too. It is the simplest way to reach out to the audience directly. Droom captured the attention of the audience through such advertisements.
All in all, it can be said that the company uses the use of social media primarily for its advertisement. The advertisement methods might be common but they have proved to be effective ones.
Droom, also recently rolled out their TV advertisement and started new campaigns. âDroom Hai, Toh Fir Test Drive Kyu?â advertisement campaign created a buzz on several platforms. The ad campaign urged customers to buy used cars rather than testing them first.
Droom Advertisement
Droomâs Growth Over The Years
With effective marketing techniques used by the company, it was obvious that Droomâs future was all about growth and flourishing in the market. Back in 2014, when the company was just stepping into the Indian market its inception took place in Singapore. It was in the same year that the company had raised its 1st and 2nd rounds of capital funding.
By the year 2015, the company sold its first vehicle of Droom and in the same year, its several applications were launched like the mobile application, website, etc. By the time July came in 2015, the company had already raised its 3rd round of funding. By this time the company had already sold more than 100 orders.
Droom received several awards for its contribution to the online automobile platform. Some of the prestigious awards were the Coolest start-ups award, Consumer Durable and Integrated advertising campaign awards, and more.
Conclusion
A company like Droom has proved that competition does not matter if marketing is done efficiently. Droomâs current growth rate is 100% every year which is quite surprising because it is something that does not happen with every business. Altogether, the company had 6 rounds of funding and by the end of its 6th round, Droom had already raised more than $125 million.
FAQs
When was Droom founded?
Droom was founded in 2014 by Sandeep Aggarwal.
What does Droom company do?
Droom is Indiaâs online marketplace for buying and selling new and used cars. Droom is Indiaâs largest auto portal.
How to contact a seller at Droom?
There are support assistance provided to the customers who want to engage business with Droom. However, other than that there is also a Whatsapp number that people can use to contact them.
Which vehicles can people buy and sell on Droom?
Vehicles to buy and sell on Droom are:
Car
Bike
Scooter
Bus
Bicycle
Plane
Truck
Tractor
What are the popular brands of used cars on Droom?
Some of the popular brands of used cars on Droom are:
