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Old 2nd June 2011, 23:55   #16
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Default Re: What is the way forward for new automobile companies?

I guess the rules of the game have changed quite a bit when Hyundai / Daewoo were the first of the foreign lots to set up shop.

The starting path now IMO should be:

Build a factory in India - no way out of this, and governments are giving enough incentives

1 dealership in each of 10 big city - at time of launch.

3-4 models - 1 small hatch, 1 regular sedan, 1 suv (maybe 1 luxury sedan as CKD) - launch all of them at same time.

More engine options, less trims - have petrol/diesel for each segment, and make the trim levels as add ons, not hard and fast trims.

ADVERTISE heavily before launch - get into their heads so that they visualize your car in their garage

Have key differentiators - this is very important to make a company stand out

Last edited by blackasta : 2nd June 2011 at 23:57.
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Old 3rd June 2011, 01:43   #17
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Default Re: What is the way forward for new automobile companies?

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Originally Posted by blackasta View Post
3-4 models - 1 small hatch, 1 regular sedan, 1 suv (maybe 1 luxury sedan as CKD) - launch all of them at same time.
while i understand all your other points this one intrigues me. Why would you launch all the segment models when you do not have a brand identity in the market??
would you please elaborate
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Old 3rd June 2011, 02:15   #18
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Default Re: What is the way forward for new automobile companies?

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while i understand all your other points this one intrigues me. Why would you launch all the segment models when you do not have a brand identity in the market??
would you please elaborate

I guess my 'advertise' point should have come before this. You build a brand image in the mind of people. Now during the age of internet people can get news all over the world via internet / friends living abroad / foreign news channels / movies (as in 'fast and the furious' franchise). Public shall become inquisitive about the manufacturer and inquire themselves.

Yes - I understand that an SUV might be an overkill, but a hat and a sedan is an absolute must. Better for the manufacturer if they share platforms (like polo / vento)

Eg: Of the Detroit big 3 - only Chrysler does not have a presence in India.

If they wish to enter, they should advertise heavily with their macho 'never neutral' tagline.

They should leverage their partnership with FIAT to get hold of a FIAT small car platform and launch it alongside a sedan, say the 200.

They can then launch the Jeep brand as many Indians instantly recall that brand. This is a 'key differentiator' for them.

Also, for brand building, they can launch CKD or fully built Challenger / Charger (a la Nissan 370Z).

Last edited by blackasta : 3rd June 2011 at 02:19.
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Old 3rd June 2011, 09:19   #19
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Default Re: What is the way forward for new automobile companies?

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Gansan, Cielo was not a failure at all. On the contrary, it was all the rage in those days and was a hot-selling sedan. Till the closure of Daewoo in 2002, Cielo was selling in good numbers.
Cielo was competing with Esteem and Peugeot 309 and I am sure they never sold like the Maruti Esteem. 309 was a failure on the first day but they sold a few with the TUD5 diesel Engine.
Cielo was plagued by the injector gumming problem due to poor fuel quality in India. I think it was the first MPFI car in India. Poor mileage killed the car in India before Daewoo India's parent died in Korea (That was due to some financial fraud not sure though).

Quote:
Originally Posted by blackasta View Post
The starting path now IMO should be:

Build a factory in India - no way out of this, and governments are giving enough incentives

1 dealership in each of 10 big city - at time of launch.

3-4 models - 1 small hatch, 1 regular sedan, 1 suv (maybe 1 luxury sedan as CKD) - launch all of them at same time.

More engine options, less trims - have petrol/diesel for each segment, and make the trim levels as add ons, not hard and fast trims.

ADVERTISE heavily before launch - get into their heads so that they visualize your car in their garage

Have key differentiators - this is very important to make a company stand out
I agree to the points. Manufacturers should look at India as a long term market and export hub also. This way even if the initial volumes are low the company can continue operating profitably through the cost benefits of manufacturing in an LCC and selling in a developed country.

Having 3-4 models at the same time is easily said than done. Weighing the COSTS (the tooling costs, a greenfield site development costs, etc etc) and a potential risk of not being able to sell these cars and interest rates they would in all probability opt to start with one model or two only. With the various versions this itself would amount in Crores.

As to getting help from Fiat on developing India operations, I think it will work the other way round. Fiat might bring the cars in Chrysler stable to india. I am just saying this cos that is cost effective. you do not have to build a brand from scratch

This might not be the case always as GM chose to kill Opel and bring Chevrolet instead from scratch.
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