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Old 14th January 2014, 00:32   #76
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Originally Posted by zenren View Post

Low introductory price is part of marketing for any new product - be it in any segment. The introductory prices for a model are the prices that people associate with that product to assess the segment it belongs to, its VFM proposition etc. So any manufacturer would want to put a low sticker tag (it might even be a minimal profit price) for a new variant to catch the attention of the general public.

Once this price gets across everyone, they'll slowly increase the price to the levels where they have the desired profits. It is usually done in stages so that the hike doesn't appear too steep. Consider this move to be similar to the 50p increase in diesel prices per month that is being implemented with a target increase of Rs.5 over a year. Its not that the government doesn't know it needs to hike the price of diesel again next month when they do it now. However, a single shot hike of Rs.5 would lead to huge outcry and they'll have to rollback it at least partially which defeats the purpose. Similarly, a steep hike in price of a model would lead to customers rejecting it forcing them to offer discounts which is as good as rolling back the hike. So they are careful by hiking the price in a phased manner.

Everyone plans to do this but if they end up making a market dud, they'll hold their plans of hiking the price till the market accepts the product. IIRC, Swift LXi when introduced in May 2005 was priced at 3.83L but it stayed under 4L for only a short while.
Agree. But the price rise for ES has been steep. Now the introductory offer might have been with minimal profits but increasing prices twice quite steeply and then creating waiting list for a year without any price protection to its in line customers and tearing the VFM tag away seems an insane policy. Also it looks like they found a smart way to rip off customers. As compared to other manufacturers the price rise by Ford is far above and that too only for ES indicating that its a rise by choice and not by circumstances.
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Old 14th January 2014, 08:43   #77
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Default Re: December 2013 : Indian Car Sales Figures & Analysis

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As compared to other manufacturers the price rise by Ford is far above and that too only for ES indicating that its a rise by choice and not by circumstances.
They cant increase the prices of their other cars due to the low demand and heavy discounts. So the only car where they can offset the losses from the other models is the Ecosport.
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Old 14th January 2014, 11:04   #78
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Default Re: December 2013 : Indian Car Sales Figures & Analysis

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Originally Posted by zenren View Post
Low introductory price is part of marketing for any new product - be it in any segment. The introductory prices for a model are the prices that people associate with that product to assess the segment it belongs to, its VFM proposition etc. So any manufacturer would want to put a low sticker tag (it might even be a minimal profit price) for a new variant to catch the attention of the general public.

Once this price gets across everyone, they'll slowly increase the price to the levels where they have the desired profits.
Nothing wrong in increasing the prices. Manufacturer would always want to command highest possible price which the customers are ready to pay for a product. But the problem is that the People who booked ES looking at the launch price, and then many of them since are waiting for delivery. Ford could not make enough cars (to serve domestic market) hence those who had booked much before the price increase have to pay extra. Of course one can argue that the customers always have the option of cancelling their booking
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Old 15th January 2014, 15:16   #79
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Default Re: December 2013 : Indian Car Sales Figures & Analysis

Price hike or not, I do think that Ford would have acted in a more prudent manner if they had:-

1. closed all new petrol ES bookings
2. delivered the already booked petrol ES and cleared all backlog, and then
3. focus on exports

With their capacity, I don't think it would have taken Ford too long to clear up petrol bookings (which probably are way less than the diesel) and it would have helped them retain a favourable image in the eyes of customers.
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Old 17th January 2014, 10:59   #80
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Default Re: December 2013 : Indian Car Sales Figures & Analysis

JLR India sold 2913 units in 2013, up 22% from 2012

Source ET
http://economictimes.indiatimes.com/...w/28897147.cms
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Old 17th January 2014, 16:38   #81
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Default Re: December 2013 : Indian Car Sales Figures & Analysis

The New Ford Fiesta has many flaws too.
- It feels too cramped for the exterios dimensions is carries
- The petrol motor is lacklusture. None of the motors have the punch effect
- The exterior body styling is outdated and in many ways weird too.
- The Vento diesel feels much better in the drive.

As a product itself, it does not have any USP. Plus the pricing helped that it never moves out of the showroom.
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Old 1st February 2014, 11:24   #82
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Default Re: December 2013 : Indian Car Sales Figures & Analysis

Maruti Suzuki's Jan-14 Sales have fallen by 10% to 102416 units as compared to 114205 units in Jan-13, with the exports being reduced to halve of the comparative month.

More details here:

http://www.moneycontrol.com/news/bus...e_1035817.html
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Old 1st February 2014, 13:23   #83
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Default Re: December 2013 : Indian Car Sales Figures & Analysis

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Maruti Suzuki's Jan-14 Sales have fallen by 10% to 102416 units as compared to 114205 units in Jan-13, with the exports being reduced to halve of the comparative month.

More details here:

http://www.moneycontrol.com/news/bus...e_1035817.html
This was expected anyway with Celerio launch due next week. MSIL would have definitely used some of its capacity to make Celerio but it wouldn't be shipped to the dealers (except demo cars) till it is launched. Expect a spike for the Feb numbers to compensate this fall once all these cars get shipped to dealers in Feb.
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Old 1st February 2014, 14:41   #84
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Default Re: December 2013 : Indian Car Sales Figures & Analysis

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Originally Posted by zenren View Post
This was expected anyway with Celerio launch due next week. MSIL would have definitely used some of its capacity to make Celerio but it wouldn't be shipped to the dealers (except demo cars) till it is launched. Expect a spike for the Feb numbers to compensate this fall once all these cars get shipped to dealers in Feb.
This could also be because of the overall downturn the auto sector is facing these days. But all have high hopes from 2014 to revive the demand or at least arrest the downfall in sales.

But, there is some good news in this.... Swift, & Ritz have managed 24k numbers & even the Dzire has munched up close to 20k. Also, alto & Wagon R are going strong as usual & Ertiga has more than 4.5k unit sales. Wonderful start for equally wonderful products (please let's not start the latest safety ratings issue here) as all other manufacturers are the displayed similar behaviour on safety standards.
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Old 1st February 2014, 14:57   #85
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Default Re: December 2013 : Indian Car Sales Figures & Analysis

Tata Motors start at a low note.

Domestic passenger vehicle sales dropped to 10,974 units in January, down from 15,209 units a year earlier.


Tata Motors sold 8,463 units of Nano, Indica and Indigo cars and 2,511 units of Sumo, Safari, Aria and Venture vehicles.

Source:Tata motors

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Old 1st February 2014, 16:14   #86
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Default Re: December 2013 : Indian Car Sales Figures & Analysis

Toyota Kirloskar Motors sales for Jan-14 are down by 18% @ 10910 units as compared to 13329 units in Jan-13.

Source Link - http://www.moneycontrol.com/news/bus...h_1036023.html
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Old 1st February 2014, 17:17   #87
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Default Re: December 2013 : Indian Car Sales Figures & Analysis

M&M had more than fourth of its sales numbers slashed in Jan-14 sales which stood at 19792 as against 26555 in Jan-13.
__________________________________________________ ________________________

Honda Cars India posted nearly three-fold rise in its domestic sales at 15714 units in Jan-14 from 5451 units in Jan-13. Amaze & City had wonderful month at 7398 & 7184 units, respectively. However, Brio at 1015 units has only managed to beat Punto in sales numbers it seems.
__________________________________________________ ________________________

Ford reported almost 50% increase in sales (courtesy strong demand for EcoSport) at 10634 units in Jan-14 as compared to 7115 units in Jan-13.

Source Link - http://www.moneycontrol.com/news/bus...w_1036023.html
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Old 1st February 2014, 19:02   #88
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Default Re: December 2013 : Indian Car Sales Figures & Analysis

Hyundai Motor India Ltd reported 2.6% lower domestic sales at 33405 units during Jan-14 from 34302 units in Jan-13.

For details refer-

http://profit.ndtv.com/news/industri...subdued-379304
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Old 1st February 2014, 20:01   #89
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Default Re: December 2013 : Indian Car Sales Figures & Analysis

Following is a quick comparison of Month-on-Month sales. Honda seems to be the big winner here with 186% growth over December 2013 sales and with that they have become the 4th largest automaker in India by a huge margin.

What's interesting is that Honda has shipped 7184 units of the new City which had received over 9000 bookings before the launch. I think Honda realizes that customers today have a lot of options to choose from and hence they don't want to go the EcoSport way of making customers wait for months to get delivery. Seems to be the right strategy in a slowdown.

Another surprise for me is that despite having such huge backlog for EcoSport, Ford is focusing a lot more on exports which I think is a shame. Of the total sales of 10634 units, 3928 units were exported which is 37%.

Lastly, Nano seems to be back with a bang having shipped 8463 units. Nano Twist seems to have hit the right cord with consumers. Only time will tell if they can keep up the momentum. With launch of new cars at the Auto Expo next week, there could be good times for Tata Motors in 2014.
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Old 1st February 2014, 20:54   #90
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Default Re: December 2013 : Indian Car Sales Figures & Analysis

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Lastly, Nano seems to be back with a bang having shipped 8463 units. Nano Twist seems to have hit the right cord with consumers. Only time will tell if they can keep up the momentum. With launch of new cars at the Auto Expo next week, there could be good times for Tata Motors in 2014.
8463 is the combined sales of Nano, Indica/Vista, Indigo/Manza. Hence individual sales numbers of Nano is unknown as of now, need to wait until the final report comes up.

Last edited by v1kram : 1st February 2014 at 20:56.
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