Product pricing is a critical function for the
automotive industry. With fierce competition and customers’ options, pricing intelligence is the key to profits. A minor change in the price can have a major impact on the bottom line. To respond to the changing market, regulations & competitor prices, the pricing team needed an immediate technology-driven approach. An agile method for responding to these price changes would be beneficial. This should also keep a close tab on margins and other business parameters. A cost-plus approach is used to arrive at the on-road price. Parameters like dealer margins, federal and state taxes & cess, transportation charges, insurance, discounts, and others add to the complexity of the problem. The analysis becomes further cumbersome when it involves many variables. They include location, fuel type, vehicle color, vehicle type, and road taxes based on jurisdiction.