Showing posts with label Maruti. Show all posts
Showing posts with label Maruti. Show all posts

Saturday, November 10, 2012

MARUTI, HYUNDAI: COMPACT CAR STRATEGY

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!


Source : IIPM Editorial, 2012.

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Tuesday, July 31, 2012

Scrutiny-CAR THEFTS: PREVENTION

As of 2010, India was home to more than 40 million passenger vehicles, but has also experienced hundreds of thousands of cars getting stolen every year. Estimates show that on the whole, the stolen cars are worth more than Rs.10 billion. According to official estimates, only 10% of all stolen car are recoverable (recovery of high valued cars is next to impossible, as parts of the car are sold in the black market). Maharashtra, Delhi and Gujarat report the maximum car thefts.

Making GPS installation compulsory during manufacturing would solve the problem of recovery of cars to a large extent. GPS devices would enable the owner and search bodies to locate the movement of the car on a virtual network. Few owners voluntarily get a GPS device installed in their cars. In many countries, installation of immobilizing devices are compulsory during the manufacturing process itself. Since 1998, all cars in Germany are fitted with this device. Similarly, UK and Finland made it compulsory in 1998 while Australia and Canada made it compulsory in 2001 and 2007 respectively. Back home, companies like Maruti, Honda, Toyota, Hyundai and Ford are installing anti-theft devices in select models only.

A legislation making such anti-theft device installation compulsory – much like how insurance is compulsory – would enable security agencies to free up precious time they currently waste on recovering stolen cars. The cost of such devices – ranging around Rs.10,000 odd for GPS trackers – is too little when compared to the time, effort and investment saved.


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