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Old 26th November 2014, 17:03   #61
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Default Re: Losses pile up for General Motors, Ford, Honda

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Originally Posted by rohanjf View Post
Toyota's losses include the investments on such average sellers as Etios twins, and upcoming launches such as Innova and the Etios replacement.
Not sure of previous investments since that may be part of earlier expense sheets. However I too have a feeling that the reason for the loss (or atleast major part of the same) will be due to investments in new production line for Innova replacement.

Innova replacement is expected to be out around 2015 festival season, that means TKM would have started work on production line which would require considerable investment. Also, there is a team from their Bangalore office posted in Japan head office helping to sync up and iron out all issues.
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Old 26th November 2014, 20:01   #62
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Default Re: Losses pile up for General Motors, Ford, Honda

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Originally Posted by Prafful_Rathod View Post
Nissan for example, compared to their domestic sale of 38,000 in FY 13-14, exported about 1,16,000 cars, that is even more than MSIL.
Are you comparing monthly numbers of Maruti with yearly numbers of Nissan? 1,16,000 is the yearly exports for Nissan while Maruti averages close to 1 lakh units per month in domestic sales.
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Old 26th November 2014, 20:23   #63
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Are you comparing monthly numbers of Maruti with yearly numbers of Nissan? 1,16,000 is the yearly exports for Nissan while Maruti averages close to 1 lakh units per month in domestic sales.
What he meant were the yearly exports by MSIL which were lesser than Nissan. In the domestic market Nissan might have failed but exports have helped it make a profit none the less.
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Old 27th November 2014, 00:31   #64
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Default Re: Losses pile up for General Motors, Ford, Honda

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What he meant were the yearly exports by MSIL which were lesser than Nissan. In the domestic market Nissan might have failed but exports have helped it make a profit none the less.
When Maruti is operating at near full capacity churning out models in domestic market, their export count is naturally going to be lesser.
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Old 27th November 2014, 11:01   #65
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Default Re: Losses pile up for General Motors, Ford, Honda

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Originally Posted by zenren View Post
Are you comparing monthly numbers of Maruti with yearly numbers of Nissan? 1,16,000 is the yearly exports for Nissan while Maruti averages close to 1 lakh units per month in domestic sales.

No, I was comparing Annual exports of Nissan with Annual exports of Maruti last fiscal year (which was about 1,01,000 units). Just trying to explain reason behind profitability of Nissan India, in spite of low domestic volumes.
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Old 27th November 2014, 19:04   #66
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Default Losses pile up for General Motors, Ford, Honda

The issue is that the Indian market is wonky in terms of what it is willing to pay for cars. Maruti value engineers its cars for India plus has scale - and hence is cost competitive and makes money on domestic sales. But it obviously can't sell this junk in developed markets - hence exports are down. Toyota probably makes money on the Innova and Fortuner but loses it all on the Etios twins and Corolla. Investment in future models would be capitalised and won't hit profits today, but investment in past models will hit the bottomline. VW - a function of profitable exports, plus sensible pricing in India. Also not sure if Audi profits are also recognised in the VW entity. People forget that Audi sells 10000 cars a year at RS. 30 l + prices. Honda - clearly selling the Amaze and the City for ridiculously low prices to build share.

Last edited by Hayek : 27th November 2014 at 19:05.
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Old 27th November 2014, 19:38   #67
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Default Re: Losses pile up for General Motors, Ford, Honda

Ford and its dealers are still not learning. Many dealerships do not care for the customers. I have read in this forum that vehicles meant for customers in Kochi are shipped to Trivandrum and vice-versa. Service also leaves lot to be desired still.
Some persons and companies never learn.
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Old 27th November 2014, 20:22   #68
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Default Re: Losses pile up for General Motors, Ford, Honda

One aspect here is "royalties" paid by Indian companies to their global parent for use of technology and brand. Therefore "loss" does not means parent company is losing money, but it might be a way to save tax. Otherwise it is understandable for General Motors or Fiat to operate on loss but I personally cannot digest that Honda Or Toyota losing money on Indian market.

Last edited by Vishal.R : 27th November 2014 at 20:24.
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Old 27th November 2014, 22:08   #69
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Default Re: Losses pile up for General Motors, Ford, Honda

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Originally Posted by Hayek View Post
Honda - clearly selling the Amaze and the City for ridiculously low prices to build share.
I don't think so. If you see the losses compared to previous year has been slashed by half. This must be due to the higher number of sales in new models like Amaze, City etc. If this trend continues in the coming years then Honda might become profitable. May be that is the reason Honda decided to go down on quality but play the number game.
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