With new entry compacts, Hyundai & Maruti are out to prove they are ready to fight the Rs.1 lakh car
If A-segment sales are anything to go by, that assumption does not appear unfounded at all. According to SIAM, Maruti 800, the lone A-segment player, sold a dismal 5,470 units in January 2008, finding itself at a thought provoking seventh spot in terms of sales! Evidently there is an average fall of a whopping 25-28% in the monthly sales of the product and the segment is clearly not ready to sustain more new players. Hyundai’s strategy to bring in a sub-B segment product instead, could be a well though out strategy as sales in this segment are the present volume drivers. Hyundai, like Maruti, could also be concerned about eventual threats on product quality that might come associated with an ultra-cheap product playing on very low margins. “Hyundai does not believe in providing a lower price point only. Instead it seeks to offer value, reliability, latest technology and a great ownership experience., confirms Lheem.
Now that Hyundai has joined forces with Maruti Suzuki to combat the evident threat from Tata’s Nano, the field is left wide open. With it’s positioning as a valuable product, if Tata’s Nano manages to win Indian hearts, both Hyundai and Maruti could find themselves back to the drawing boards. The volumes are mind numbing and none of the three players can afford to err in market analysis. For now it is the battle of the ‘new’ entry compacts. May the best ‘strategy’ win!
If A-segment sales are anything to go by, that assumption does not appear unfounded at all. According to SIAM, Maruti 800, the lone A-segment player, sold a dismal 5,470 units in January 2008, finding itself at a thought provoking seventh spot in terms of sales! Evidently there is an average fall of a whopping 25-28% in the monthly sales of the product and the segment is clearly not ready to sustain more new players. Hyundai’s strategy to bring in a sub-B segment product instead, could be a well though out strategy as sales in this segment are the present volume drivers. Hyundai, like Maruti, could also be concerned about eventual threats on product quality that might come associated with an ultra-cheap product playing on very low margins. “Hyundai does not believe in providing a lower price point only. Instead it seeks to offer value, reliability, latest technology and a great ownership experience., confirms Lheem.
Now that Hyundai has joined forces with Maruti Suzuki to combat the evident threat from Tata’s Nano, the field is left wide open. With it’s positioning as a valuable product, if Tata’s Nano manages to win Indian hearts, both Hyundai and Maruti could find themselves back to the drawing boards. The volumes are mind numbing and none of the three players can afford to err in market analysis. For now it is the battle of the ‘new’ entry compacts. May the best ‘strategy’ win!
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
