REASON BEHIND RE-BRANDING

• In recent months, many brands like Pepsi, Fanta, Yes Bank, Nippo, LG and Twitter have changed their logo to refresh their identity and adapting to stay in modern marketing environment.
  

  
  
• Re-branding is a marketing tactic that involves changing an existing brand's name , concept or design.
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• The goal of a makeover is to make the brand appear so young and vibrant that it transforms its reputation and helps it to win back investor's and the target market's trust and attention.
• Generally companies go for change in their logo for:

1. Company Merger
2. When the old logo looks outdated
3. Change in the company's priorities and values
4. To make it more recognizable

 INDIAN AUTOMOBILE INDUSTRY - 

                                                   The Graveyard of Global Automobile Companies

• The Global ranking of Indian car market was 5th in 2020. As per the reports, China emerged as the biggest car maker while India secured the 5th spot with a production capacity of one car per 8.6 minutes.
• Despite being a big market, India has not been able to retain the top giants from US. In 2017, General Motors exited from the Indian car market. In 2020, Harley Davidson stopped manufacturing vehicles in India.
• Now US  automobile giant Ford, which has a share of less than 2% in the Indian market has announced its plan of stopping the manufacturing of cars in India.
• WHY?
• " We haven't been able to find a sustainable path forward to long term profitability" - Anurag Mehrotra (Ford  India President & MD). Ford has accumulated losses worth over 2 billion dollars in the past decade. Hence it has decided to quit the Indian market
                         

  
  
  
  
• Ford will be shutting down its factories in Gujarat & TamilNadu.This decision won't make a big difference since Ford has a very less market share.
• However the decision will affect around, 4000 employees
• Reasons for India becoming a graveyard for top car makers:

1. Price - Indian consumers prefer low priced cars.
2. Size - Higher inclination towards compact entry level models.
3. Cost Low cost cars happen to be the first choice of many Indian.

These are the likely reasons behind why US car giants have been unable to make  a mark in the Indian Market

• Indian market is ruled by compact, low cost, affordable car models. This is why Maruti Suzuki and Hyundai Motors continue being the first choice of many Indians willing to buy a car.
• Maruti Suzuki dominates the Indian passenger car market with a share of around 48%     -   Hyundai market share: 15.84%   -   Tata Market share: 9.43%
  
  
  
• However with an increase in the income, people are now willing to spend more on owning bigger and more advanced cars.