Stock Car Racing in India

Arjun J Chaudhuri

Stock Car Racing is a variety of automobile racing involving Cars that share appearances with commercial models and are usually sponsored, at least in part, by an automobile manufacturer. As in any automobile racing, it is a sport in which drivers race specially designed automobiles over tracks or courses of differing lengths, designs, and constructions. The competition tests the skills of the drivers, the speed capabilities of the vehicles, and the endurance of both.

Stock car race is most associated with the USA because of the powerful public presence of the National Association for Stock Car Auto Racing (NASCAR), the sport's governing body. Stock cars were similar to conventional cars when this type of racing began, just prior to World War II (1939-1945). Despite relatively normal outward appearances, stock cars are pure racing machines that can reach speeds of up to 200 mph (322 km/h). Originally run on beaches and dirt tracks, NASCAR races are now held on paved ovals and, in major events, on high-banked superspeedways.

There are five other basic components of a stock car racing team: (1) the ownership, (2) the team manager, (3) the driver, (4) the support crew, and (5) the co-sponsors. The ownership of the car is in charge of the team but usually employs a manager to run operations on a day-to-day basis. The driver is always an independent contractor. Drivers usually compete in a variety of different cars for different owners throughout their careers. The support crew maintains the car before, during, and after races. The driver and support crew work together during races to handle needed repairs, tire changes, and fuel refills (done during brief service breaks known as pit stops). Finally, sponsors, are usually corporations, who provide money to the racing team in exchange for promotional ties, in the form of company and product logos, which are commonly seen on the outside of vehicles during races.

Stock Car Racing is yet to be fully introduced as a sport in India; and when it is by the governing body concerned, it will prove to be in direct competition to Formula 1, and greatly more popular to fans here, based on its preliminary Advertising &Promotional  value, just as it is in the United States of America.  Let’s try to understand why that is the case in this write up by understanding what Stock Car Racing is, and what is the commercial benefit extended to sponsors by taking the case study of Toyota Motor Corporation in the USA.

CASE STUDY-Toyota Motor Corporation [USA]

Prior to 2005, Toyota Motor Corporation [TMC], in its Communications Campaign wanted to highlight the economic contribution to USA and North America, in order to increase its sales revenue there, and beat the competition, in the automobile market there. According to data, TMC, in 2003, directly employed 29,135 people, and paid compensation of 1.9 billion USD, and indirectly employed 74,060 people, that is those who service and sell TMC products, and paid compensation of 2.6 billion USD. By 2005, TMC had set up 14 manufacturing plants, and R&D centres, in North America, and employed 38,040 people.

The communications campaign focused on brand building, and how the average consumer in North America would identify themselves with TMC and its products, which is an automobile company based out of its headquarters in Japan, manufacturing, selling, and selling cars all across the world. Doyle [1990] defined branding that conveys something that make consumers want to buy their product. He contends that successful brands portray an image that customers strive to achieve, therefore conveying the belief that if a customer buys a specific brand it will help them attain a certain status or image.

It this concept of image that TMC decided to invest in a NASACR Racing Team, and successfully americanize the Toyota Brand in North America, especially, USA. The A&P Value that NASCAR Racing brought to TMC ensured their dominance in the US car market, and allow the entry of their Pick-Up Truck, the TUNDRA Mode, for sale to the US consumer.

Conclusion

Stock car racing’s fan base in the USA has grown rapidly due to three factors. One factor is that stock car drivers are generally more accessible to fans than F1 or sports car drivers. Second factor is stock cars are familiar brand names such as Dodge, Ford, Chevrolet, and Pontiac, street car versions of which are driven by people on a day to day basis, and the third factor is stock car drivers and their cars receive better media coverage than other forms of racing.

The question is, with the growing demand for cars in India because of the rise in earnings, and disposable income, will we see car manufacturers taking to introducing or taking part in Stock Car Racing to differentiate their product from the competition, and indirectly increase their sales revenue based on their superior performance on the race track, as this is a sport that identifies more easily with the average consumer of cars when compared to F1.