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Old 15th January 2013, 13:56   #1
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Default HM shifts focus, will bring out new SUVs with Mitsubishi. Will it work?

Read this online.

Hindustan Motors would be launching new SUVs soon in collaboration with Mitsubishi Motors.

"Our focus is now on SUVs (sports utility vehicles) and we plan to launch new models on the Mitsubishi platform by the next fiscal," company managing director Uttam Bose has said.

http://zeenews.india.com/business/au...shi_68129.html


Well, I could not help but think what is wrong with Mitsubishi-HM after I read this news.

Is it that the low sales have disillusioned them and they are unable to think straight?

The two companies have an alliance for over two decades and are still lying at the bottom of the sales chart. And now they finally wake up, or so it seems, and make a silly announcement that they will bring in more SUVís.

As thereís no point talking about the HM and Ambassador, Iíll jump to Mitsubishi.

A company which already has 4 SUVs in India Ė Pajero SFX, Pajero Sport, Montero and Outlander and only one sedan the Cedia (not considering the Evo as its a niche car) is talking about introducing more SUVs.

Of the five models that they sell here, 4 are SUV's and still they are at the bottom of the sales chart. So, how ill launching new SUVís help them is beyond me.

And I have also read that they are planning to bring in cars like the Mirage and Colt.

Though there is nothing wrong with new launches, but whatís the point if they are not going to meet the same fate as the Cedia or Outlander or Montero.

The company needs to look at the root cause of the problem. They need a major image makeover. Just because you are planning to launch new models does not mean that the Indian consumerís interest in the brand will surge overnight.

Drastic steps and a major rejig are the need of the hour.

Mitsubishi immediately needs to break up with Hindustan Motors and pump in money to set up new dealerships and more important, much better after sales service.

Instead of focusing on SUVs, they need to focus on small cars and launch at least a three modelsóone to counter the Alto/Eon class, the second to compete with the likes of i10/Wagon R and maybe a premium hatch as well, but that can wait.

But the most important thing is to provide cheap spare parts and best after sales service and only then can they expect to enjoy the loyalty of the Indian customer.
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Old 15th January 2013, 16:47   #2
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Default Re: HM shifts focus, will bring out new SUVs with Mitsubishi. Will it work?

Quote:
Originally Posted by captain.torque View Post
Read this online.

1) The two companies have an alliance for over two decades and are still lying at the bottom of the sales chart. And now they finally wake up, or so it seems, and make a silly announcement that they will bring in more SUV’s.

2) A company which already has 4 SUVs in India – Pajero SFX, Pajero Sport, Montero and Outlander and only one sedan the Cedia (not considering the Evo as its a niche car) is talking about introducing more SUVs.

Of the five models that they sell here, 4 are SUV's and still they are at the bottom of the sales chart. So, how ill launching new SUV’s help them is beyond me.

3) And I have also read that they are planning to bring in cars like the Mirage and Colt.

The company needs to look at the root cause of the problem. They need a major image makeover. Just because you are planning to launch new models does not mean that the Indian consumer’s interest in the brand will surge overnight.

4) Mitsubishi immediately needs to break up with Hindustan Motors and pump in money to set up new dealerships and more important, much better after sales service.

Instead of focusing on SUVs, they need to focus on small cars and launch at least a three models—one to counter the Alto/Eon class, the second to compete with the likes of i10/Wagon R and maybe a premium hatch as well, but that can wait.

5) But the most important thing is to provide cheap spare parts and best after sales service and only then can they expect to enjoy the loyalty of the Indian customer.
1) Lack of insight at the time when Mitsubishi was doing good is the main reason. The global issues also might be disoriented Mitsubishi a bit.

2) Out of the 4 SUV's, one is petrol, which is certainly not going to sell in India at this point of time. The once ruler of this market, i.e. CRV is also not doing good ( though higher price might be a killer ).

SFX has got reasonable image in India and unfortunately, HM-Mitsubishi could not market it properly.

They need some advertisement firm which is creative, like the one VW has reading ( for adding steering mounted controls for audio ) :"Adding audio controls on steering will not smoothen out potholes".
Simply put, HM-Mitsubishi could not push a product when it was in limelight.

Montero was always lost out in crowd. Although it relatively VFM, who would buy a Rs. 40 lakh SUV when they can have almost similarly good stuff in Fortuner ? This is true for higher end SUV also like Prado. Only the niche marques like the trio of BMW, Mercedes-Benz and Audi manage to sell due to higher brand image.

Pajero Sport could have done much better I think, but again pricing it above Fortuner was wrong and second, lack of outlets.

3 and 4 ) For that a lot of investment is required which Mitsubishi does not have. One thing is for sure that Mitsubishi is not sitting on a pool of money like VW or Toyota or even Ford for that matter. Expansion of outlets and service centers would help them push Pajero Sport, which is very critical for them. The car really has potential and Mitsubishi's name is not entirely wiped out of consumer's radar, atleast in SUV segment.

5) For this, Mitsubishi must consider a tie up, else they cannot expand.
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Old 15th January 2013, 22:06   #3
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Default Re: HM shifts focus, will bring out new SUVs with Mitsubishi. Will it work?

IMHO, it's a good sign that Mitsubishi has identified their strengths and decided to focus on them. That's one step in the right direction.

But, this step alone won't save Mitsubishi. They've huge tasks cut out for their market analysis team, marketing team and after sales and service teams.
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Old 15th January 2013, 22:24   #4
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Default Re: HM shifts focus, will bring out new SUVs with Mitsubishi. Will it work?

Quote:
Originally Posted by captain.torque View Post
Read this online.

Hindustan Motors would be launching new SUVs soon in collaboration with Mitsubishi Motors.

"Our focus is now on SUVs (sports utility vehicles) and we plan to launch new models on the Mitsubishi platform by the next fiscal," company managing director Uttam Bose has said...
Guess I had reported this atleast 1-2 years back itself, on this forum! And the news came directly from Mitsubishi's India head - so the news was as solid as a rock!

I doubt it was HMs call. I believe that was more of Mitsubishi's approach as they were starving internationally too and was not doing well! In India, they will need tremendous investment in the form of dealers & A$$ if they need volumes. Rather pick some high value SUVs, bring those as CBUs (to minimise the overheads) & sell it at H-U-G-E profits to survive.
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Old 16th January 2013, 09:31   #5
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Default Re: HM shifts focus, will bring out new SUVs with Mitsubishi. Will it work?

I think HM & Mitsubishi may be seeing the success M&M making in marketing UVs / SUVs, and the dominance of Maruti in the small car market. So, they may have decided to keep away from the small car market and have a try in the UV / SUV segment where Maruti is not a big player. But they can succeed only if they launch their products in the 7 - 15L segment, IMO.
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Old 16th January 2013, 10:14   #6
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Default Re: HM shifts focus, will bring out new SUVs with Mitsubishi. Will it work?

Quote:
Originally Posted by aaggoswami View Post
They need some advertisement firm which is creative, like the one VW has reading ( for adding steering mounted controls for audio ) :"Adding audio controls on steering will not smoothen out potholes".
I am sorry I partly disagree with you on this point. Just compare the number of VW showrooms and service centres in the country with Mitsubishi's.

VW today has a much wider reach than Mitsu. They have a strong presence here. So, what I am saying is that Mitsu will have to adopt a multi-pronged approach if it wants to succeed.

Creating creative ads when you don't adequate infrastructure and brand value would serve no purpose.
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Old 16th January 2013, 12:33   #7
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Default Re: HM shifts focus, will bring out new SUVs with Mitsubishi. Will it work?

Perhaps HM is following the footsteps of old colleague Premier Automobiles and its Rio. But success would depend on the product quality and would not be easier convincing the customers who are wary of the HM's image.
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Old 16th January 2013, 12:50   #8
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Default Re: HM shifts focus, will bring out new SUVs with Mitsubishi. Will it work?

Since HM wants to focus on SUV's, please relaunch the old Pajero for around 10Lakhs and provide good sales and service support.
There is a great need for an affordable and reliable 4x4 SUV in the 10L range. The Scorpio, Safari, Upcoming Duster 4x4 are no match to the engineering and reliability of the old Pajero.
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Old 16th January 2013, 15:05   #9
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Default Re: HM shifts focus, will bring out new SUVs with Mitsubishi. Will it work?

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Originally Posted by speedmiester View Post
Since HM wants to focus on SUV's, please relaunch the old Pajero for around 10Lakhs and provide good sales and service support.
There is a great need for an affordable and reliable 4x4 SUV in the 10L range. The Scorpio, Safari, Upcoming Duster 4x4 are no match to the engineering and reliability of the old Pajero.
10lac? Come on! Do you even get a preowned one for that price?

From Lancer to Cedia to Outlander to Pajero Sport, they sold coz people knew about the brand. I sms'd twice for the Pajero Sport test drive but they dint respond!
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Old 16th January 2013, 15:13   #10
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Default Re: HM shifts focus, will bring out new SUVs with Mitsubishi. Will it work?

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Originally Posted by jkdas View Post
10lac? Come on! Do you even get a preowned one for that price?

From Lancer to Cedia to Outlander to Pajero Sport, they sold coz people knew about the brand. I sms'd twice for the Pajero Sport test drive but they dint respond!
It's a 80's design. Surely they would have recovered the investment. What is wrong in deleting a few features and launching a bare bones( but include safety features) version for around 10L and gain market share.

I know it's all wishful thinking.
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Old 16th January 2013, 15:17   #11
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Default Re: HM shifts focus, will bring out new SUVs with Mitsubishi. Will it work?

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Originally Posted by aaggoswami View Post
They need some advertisement firm which is creative, like the one VW has reading ( for adding steering mounted controls for audio ) :"Adding audio controls on steering will not smoothen out potholes".
Simply put, HM-Mitsubishi could not push a product
Really?
I remember the attrocious Polo advertizements where they drove it over an Ostrich's egg to demonstrate the GC. Why should the customers care to know the average size of Ostrich's egg and compare it with the speed-breakers is beyond me. Mitsu does not need such nonsense. They just need to have reasonable network and reasonable pricing. They have good vehicles.

Last edited by anandpadhye : 16th January 2013 at 15:18.
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Old 16th January 2013, 17:30   #12
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Default Re: HM shifts focus, will bring out new SUVs with Mitsubishi. Will it work?

It may actually be a good idea for HM/Mitsu to launch new products. Renault was nothing in India before the Duster. A good sought-after product has the potential to positively contribute to both their brand image and their sales.

The products that they are looking to launch may as well be their trump card to turn things around.
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Old 16th January 2013, 18:18   #13
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Default Re: HM shifts focus, will bring out new SUVs with Mitsubishi. Will it work?

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Originally Posted by veyron_head View Post
It may actually be a good idea for HM/Mitsu to launch new products. Renault was nothing in India before the Duster. A good sought-after product has the potential to positively contribute to both their brand image and their sales.
Well, true but Renault had two factors going for it.
Firstly, the Duster was a ready product that could simply be introduced in India without any substantial R&D (or related) costs. Does Mitsubishi have any such product relevant to today's market?

Secondly, the brand perception of Renault was neutral at worst (if not positive), so people were willing to take the plunge with the Duster. We all know the story with Mitsu. Anyone heading to their showroom will have ten people advising him to stay away.

Last edited by avisidhu : 16th January 2013 at 18:20.
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Old 25th January 2013, 23:30   #14
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Default Re: HM shifts focus, will bring out new SUVs with Mitsubishi. Will it work?

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Originally Posted by anandpadhye View Post
Really?
I remember the attrocious Polo advertizements where they drove it over an Ostrich's egg to demonstrate the GC. Why should the customers care to know the average size of Ostrich's egg and compare it with the speed-breakers is beyond me. Mitsu does not need such nonsense. They just need to have reasonable network and reasonable pricing. They have good vehicles.
Quote:
Originally Posted by captain.torque View Post
I am sorry I partly disagree with you on this point. Just compare the number of VW showrooms and service centres in the country with Mitsubishi's.

VW today has a much wider reach than Mitsu. They have a strong presence here. So, what I am saying is that Mitsu will have to adopt a multi-pronged approach if it wants to succeed.

Creating creative ads when you don't adequate infrastructure and brand value would serve no purpose.
IIRC, there is also a thread existing on the one full front page ad by VW. It created a mixed opinion on TBHP, but at the end of the day, they caught customer's mind and made their presence felt.

I am speaking from that perspective. Pajero Sport would cost almost as much as Fortuner. But how many are having Mitsubishi in their buying radar ? All are more often than not, driven away by the Fortuner, not considering that Pajero Sport is an equally capable vehicle.

The only point for me favoring relatively creative ads need to make is bringing Mitsubishi back on buyers radar with greater awareness. This will automatically increase demand IMO. Right now, I am not sure how many would be even considering Mitsubishi products while they are out shopping cars. The awareness in customer's mind must be as strong as it was when they came out with the Lancer and were going head on with City, Astra, Baleno.

Last edited by aaggoswami : 25th January 2013 at 23:31.
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Old 30th January 2013, 12:02   #15
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Default Re: HM shifts focus, will bring out new SUVs with Mitsubishi. Will it work?

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Originally Posted by aaggoswami View Post

Montero was always lost out in crowd. Although it relatively VFM, who would buy a Rs. 40 lakh SUV when they can have almost similarly good stuff in Fortuner ?
Montero costs around Rs. 50 lacs on road in Pune.
The vehicle cannot be compared to the likes of Fortuner which is around half the cost.
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