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Originally Posted by veyron_head So true. Even with a stellar value proposition like 'no maintenance cost for 3 years' they aren't able to succeed. |
The need of the hour for all such laggards like GMI, Tata, Fiat is two fold.
One and Primary is PRODUCT. This is not India of the 1990s - incidentally a time when all the above three were there and missed adapting to this brave new world. GMI needs new product like a deep sea diver needing oxygen. It is a necessity for survival. They can have a two pronged strategy like Nissan/Datsun and dump all Wuling products like Enjoy/Sail in the cheaper brand with discounted prices and bring in US product to India. I would think a mixture of Buick and Chevy would do wonders.
- Get the Corvette and Camaro at 35L and 50L respectively as brand building products. The Escalade would be a hit in India enamored with bling and will see quite nicely at the price of an ML (sorry GLE)
- GM sold the Subaru Forester in 2002 for 12L with a 2L petrol motor. It would be a fantastic runaway hit if they can get the current Forester (which now looks is CR-V sized and more SUV like) for say 18L but with the Cruze 2.2 160hp motor.
- It is inexplicable that the 1.3L National engine that Fiat and GM created jointly, works better in a Maruti than in with Fiat or GM and the 1.6L version of the same is being launched by Maruti and not Fiat or GM.
Second is PRICE. GMI and the other laggards must realize that they will not sell if they price at similar levels to successful competition. Whether it is the Swift/Grand i10 or i20 or DZire/SCent/Amaze or City/Ciaz or Ertiga or Innova or Corolla, every segment has its entrenched leader. In order to break into the segment, you will have to provide substantial class leading and class unique features at a substantial discount. No one in their right mind is going to buy a Sail or Zest at the same price as a DZire or Amaze even if equipment levels of the laggards are more.
Finally, enhance PERCEPTION. Take the long trek that Hyundai took in the 90s and most of the aughts after the Excel debacle in the late 80s. Once your name is mud, it takes a very long struggle to make it mainstream acceptable. Stand behind your products.
- Provide an industry leading warranty like 10/100k like Hyndai/Kia does in the US. Stand behind said warranty.
- Provide a transferable free maintenance package for 4/48k like BMW does in India. None of the nonsense of charging extra for it like BMW India does.
- Ensure that spare parts are available and reasonably priced by sourcing from India. Provide voluntary recalls and free replacement to out of warranty vehicles (since the current warranty is so pathetically small) for problem parts unique to GM which cost a ton. Things like diesel filter housing which is inexplicably made of plastic and which cracks and which costs 10k to replace or the AC compressor which costs 40k to replace. These are regular failures and should be taken care of by GM without any impact to customer. The 10/100k warranty will take care of most of this.
The three Ps above will start them on the road to recovery. Make no mistake, it will be a long and arduous struggle but it will have to be done if they are not content with selling 2000 cars a month.
Knowing GM, Tata and Fiat, they will continue doing what they have been for the past 20 years and wondering why their vehicles dont sell.