MARUTI EYES RURAL MARKET, EUROPE
Indias biggest car manufacturer, Maruti Suzuki India Ltd, plans to boost sales in the current fiscal year by focusing on the domestic rural market and western Europe, a company executive said.
The company, which clocked growth in unit sales of 3.6% in the year ended March, is targeting 8-10% growth this fiscal year in the domestic market alone.
In 2008-09, rural sales contributed 8% of Marutis overall domestic sales, double the 2007-08 component. And the company hopes to replicate this success in the current fiscal as well.
In the domestic market were ambitiously targeting 8-10% growth. We have grown in that range in April, and Im sure things will only improve hereafter, said Rajiv Gandhi, chief general manager of Maruti Suzuki India.
The company is also betting big on the Western European market.
In exports, were planning a (near) 50% increase in growth. A-Star is doing very well in Europe and is best suited for the European market, Gandhi said.
A-Star, sold under the Alto banner in Europe, has been a winner in overseas markets, making up nearly 90% of the car manufacturers 120,000 vehicle export target. Maruti Suzuki plans to make India the A-Stars production hub for exports.
Aman resort in Delhi chooses the iconic Indian brand the Ambassador to build its limousine fleet.
Ambassador, the ubiquitous taxi or government vehicle has transformed into a limousine! Affectionately called Amby, the countrys first indigenous car manufactured by Hindustan Motors (HM) is quietly finding a place in the vintage segment of luxury cars offered by premium hotels.
Amanresorts International Pte Ltd, the Singapore based company that owns and manages 21 small, luxury resorts worldwide has a fleet of 10 Ambys for its New Delhi property. It seemed natural to embrace the understated unique style of Hindustan Motors Ambassador and add it to our fleet. The car is synonymous with India as well as New Delhi, said Antony Treston, general manager for Aman Delhi.
The ultra luxury resort is planning to add five more Ambassadors to its all-Amby fleet. All our international guests loved them and, in fact, many asked if they could have one shipped, Treston said. But to be offered as a limo service, the car underwent a makeover. Aman worked with HM for a custom-made retro dashboard, with a large, central speed dial, mushroom leather interiors, wood finish details together with I-pod docking, cool box and a modern music system. All the 10 Ambassadors in the hotels fleet are painted in a special shimmering silver colour that has been developed exclusively for Aman Delhi. s
Its probably the flexibility of the car that makes it unique. We are aware that we cater to strikingly different market segments. At one end, the brand association is with the premium (read government power). On the other, it is the common mans taxi, said the spokesperson for the C K Birla Group. Clearly, the brand appeals to both ends of the spectrum; taxi operators love it for ease of maintenance and availability of spare parts. But thanks to its association with Indian politicians, government officials and diplomats, its become the symbol of power.
The HM spokesperson said that the companys small marketing team canvasses the product in various circles. However, it is not planning to launch any communication campaign to reposition the brand. The numbers dont support its promotion for the luxury segment. HM sells around 15,000 Ambassadors annually of which around 65 per cent are run as taxis, 20 per cent are sold to various government departments and the rest go to individual consumers.
To leverage its vintage value some cars are exported to countries like the UK. We sold around eight to ten cars to one of UKs car rental companies Karma Kabs, said the HM spokesperson. The company offers a unique Indian experience to its customers and decks up the vehicle with incense sticks, marigolds and hibiscus flowers. A customer has to shell out around twice the amount for a Karma Kab compared to a regular taxi, she added.
Hindustan Motors Ambassador, the first car to be manufactured in India, has been in production since 1948 and is the sole survivor of the 1950s era of Morris sedans. The rear axle from a 1949 Morris is still used in the Ambassador for its excellent roadworthiness. The Amby is robust and suited to Indian road conditions. The mechanic across the road can fix it. He knows the car inside out, said the spokesperson.
HM plans to continue banking on the retro value of thsse Ambassador as a brand and quietly position it as the iconic Indian car. The company is not eyeing huge numbers, but its a way to keep the brand alive, especially, among the youth.
Though Tata Nano is Indias latest claim to fame in the fast changing global automotive masrket, its the Hindustan Ambassador that dominated Indian roads for most part of the 20th century. And just when everyone thought it has run out of steam, the Amby is back in a new avatar.
HONDA TO BRING PRODUCTS WITH INDIA-SPECIFIC ENGINES
Japanese car giant Honda will explore possibilities to bring in products powered by India-specific engines like it has planned with the small car -- Jazz, which will be launched in the country in June.
"The Jazz, which will be launched in India this June, has an engine, which has been specially developed for India keeping in mind the conditions here," Honda Siel Cars India Vice President Marketing Jnaneswar Sen told mnedia.
The Japanese firm, which is present in India through a joint venture with the Siel Group, has already launched the Jazz in the UK with the same India-specific 1.2 litre petrol engine, generating 90 PS power, he added.
Asked if the company would develop more products specially meant for the Indian market, Sen said: "As and when the opportunity arises, we cannot rule out such a possibility. All our products are introduced after detailed study."
He, however, said currently there were no plans to introduce more India-specific products apart from the Jazz.
Sen said as per Automotive Research Association of India (ARAI) certification, the Jazz would give a mileage of 16.1 km per litre under standard testing conditions.
The new small car would be positioned as a premium hatchback as Honda looks to strengthen its presence in the Indian market. The company currently sells premium sedans -- City, Civic and Accord, alongwith sports utility vehicle CR-V.
FORD BETTING BIG ON INDIAN CAR MARKET
New Delhi: American car company Ford India is going aggressive in the country even in times of global financial meltdown as the company has devised four pronged strategy, which will not only help it beat slowdown blues but also expand its market share significantly.
We have adopted four pronged strategy for Indian markets to increase our market share. Ford is raising local contents of its vehicles, going on capacity expansion, would enter small car segments and lastly offer low cost of ownership, said Ford India president and managing director Michael Boneham.
Ford India will be increasing the localisation for its Ikon and Fiesta models to 90 per cent and 80 per cent respectively by outsourcing their engine blocks. Outsourcing will provide the company with high quality engine blocks at very competitive prices and would help Ford price its cars more competitively.
We have done well in the segment we are already in. Endeavour is the market leader in the SUV segment and Fiesta and Ikon grew 400 per cent year over year, said Boneham.
The size of the premium SUV segment in India was estimated at about 11,800 units in calendar year 2008. Ford sold 3,328 units of Endeavour in 2008, garnering a market share of 28 per cent in its segment.
Ford will enter small car segment in 2010, which constitutes roughly 70 per cent of the total car market in the country. Our small project is on track. The prototype of the car is ready and we are hoping big numbers. The small car would be launched not only for Indian markets but also be exported to Asia Pacific and African regions, Boneham said. As regards market share, we want to at least quadruple it, he added.
India is going to witness a wide range of small cars by 2010. Hondas Jazz will be launched in June this year while Chevrolets Mini car would see the light sometime in December and Toyota would produce small car in 2010.
Even Chennai plant capacity expansion is on track. The plant will have capacity to produce 200,000 units by 2010, informed Boneham. The plant has current capacity of producing 1,00,000 units.
Ford is investing $500 million to expand its current manufacturing facility in Chennai to begin production of a new small car by next year. The rest of the planned investment involves establishment of a new integrated petrol-cum-diesel engine production unit, which will come up adjacent to the existing operations at Maraimalainagar near Chennai. The initial annual production capacity is planned at 250,000 units.
Explaining low cost of ownership Boneham said: We are offering our products to customers at competitive price, fuel economy, low maintenance and finally better resale value.
Cost of Ownership is a lifetime cost to own and operate a vehicle, and plays a vital role while making a purchase consideration. There are various components in cost of ownership such as cost of purchasing the vehicle, insurance, fuel efficiency, cost of maintenance and repair etc.
The company has been making tremendous progress to enhance the overall service experience with several after-sales initiatives to maximize customer satisfaction resulting in overall low cost of ownership.
Concept of low ownership has shown positive results as upgraded new Ford Ikon has registered four-fold increase in sales in the first quarter of calendar year 2009, compared with the previous year.
Ford India established operations in 1995 as a joint venture with Mahindra and Mahindra. The company commenced operations with an initial equity infusion of $ 375 million in facility and operations.
In March 2005, Ford India became a wholly owned subsidiary of Ford Motor Company after divesting its crossholding portfolio with M&M. In October 2005, Ford India received approval from Ford Motor Company for an additional equity infusion of $ 75 million to meet the needs of future plans.
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