Re: March 2014 : Indian Car Sales Figures & Analysis I was reading the latest issue of Auto Bild India and found a comment that the way the Indian market is going manufacturers will probably reconsider their commitment to it. One look at the sales thread and those fears seem well founded, though to say that they have to reconsider their commitment is perhaps a bit too alarmist; at least at this stage.
Tata is teetering on the verge of a major disaster. Relaunching of the Aria, the introduction of the Safari Storme and the continuous revamping of the Nano have not produced the results they would want. I have my doubts about the Bolt and the Zest being game changers for Tata, for despite major changes they still carry the silhouette that is identified with the Vista. Tata's products are fine (I own a Nano and a Vista) but the market perception of the products has turned out to be negative. I am no expert brand analyst so I will not venture into the whys of this. I can only say that Tata needs to bring in the AMT into the Nano really quickly and that along with some sustained marketing efforts, revamped dealerships and a bit of customer pampering to push the sales of the Nano up consistently. The Nano has hope. Otherwise they need an entirely new line-up of models and fresh thinking to make up for what they have been losing consistently.
The story of Volkswagen, Toyota, Skoda, Renault, Fiat, GM and Nissan baffles me completely. The kind of numbers they are doing doesn't warrant their presence in India at all. I am told that Fiat first wants to put dealerships in place before bringing new products into India. That is confusing since a couple of exciting new models would have given the dealers also some confidence. But then it seems like Fiat is in a mess worldwide. Nissan's persistence with the Evalia confounds any realistic thinking. I am not even sure if they have got the Datsun strategy right. A few more months and we would most likely know which way it is going with that brand. Toyota is a one trick pony. Remove the Innova and there seems to nothing much else there. The legend of the Octavia seems to have died in India. Otherwise how does one explain the sale of 200+ units. Renault sells the Duster and Nissan the Terrano and a bit of the Micra. But I would not go to the extent of writing these companies off, they may know things that I do not know.
GM was doing fine when it was bringing Korean products to India but seems to have lost its way once it has decided to look at China. I think GM India is no longer owned as much by the Chinese SAIC as it was sometime ago. I remember having read somewhere that India operations of GM are owned upto 82 % (not very accurate this number) now by GM itself. If that is true then GM would do well to rid itself Chinese derivatives such as the Sail twins and Enjoy MPV and go back to bringing products from its own portfolio in Korea. After all there is animosity and aversion to China in India because of the political relations. (Some may argue that we are buying made in China electronic goods, but that is so because they are all made there anyway and customers like to think that they are buying Nokia, Sharp, Panasonic, Apple etc., even though they are mostly manufactured in China; so the situation is not analogous).
However, one thing that is worth discussing is the top down approach that manufacturers blindly seem to be following. The space at the top is very small and to enter that in order to establish their brand, manufacturers will have to jostle with one another. A failure there would mean the death of the brand itself. Hyundai seems to be the one manufacturer who got their India strategy right. The rest of the foreign players seem to be just groping the dark, with no sign of having found a breakthrough.
Perhaps, it is time that they start thinking very differently from what they are doing now and innovate in a way which satisfies the very difficult to please and very cost conscious Indian customer. A Herculean task no doubt, but having invested in the car market here they may as well do something about it.
Last edited by sadsack : 12th April 2014 at 10:06.
|