[karanraheja]

Originally Posted by gopinathann

I don't think any major lift will be done on existing SX4, Maruti will just bring SX4 Diesel (not sure it will be 1.9 DDIS) which will give the competition.

Yeah the major facelift will not be for atleast 1 year. Its just been over a year
since SX4 was launched. But MSIL does have to think to increase SX4 sales as i expect further drop in SX4 sales after N3HC launch. Regarding Diesel
MSIL will surely not launch it for next 7-8 months. But MSIL surely has to bring the diesel.

[tsk1979]

There is 6 months waiting on Dzire diesel. I doubt Maruti has any spare capacity for more diesel engines. They need a new factory!

[gopinathann]

Originally Posted by karanraheja

Yeah the major facelift will not be for atleast 1 year. Its just been over a year
since SX4 was launched. But MSIL does have to think to increase SX4 sales as i expect further drop in SX4 sales after N3HC launch. Regarding Diesel
MSIL will surely not launch it for next 7-8 months. But MSIL surely has to bring the diesel.

My perception is that the SX4 sales won't get affected with N3HC because having NHC and SX4 with approx. 1 lakh difference, people who want VFM goes for SX4 and others who want Mileage & Interior finish quality & H Brand go for NHC. The N3HC will be definitely costlier than NHC and it will dent NHC sales. If N3HC is priced at current NHC price band with all the features then it will hit SX4 sales. One thing for sure that N3HC won't be fuel efficient like NHC.

[karanraheja]

Originally Posted by gopinathann

My perception is that the SX4 sales won't get affected with N3HC because having NHC and SX4 with approx. 1 lakh difference, people who want VFM goes for SX4 and others who want Mileage & Interior finish quality & H Brand go for NHC. The N3HC will be definitely costlier than NHC and it will dent NHC sales. If N3HC is priced at current NHC price band with all the features then it will hit SX4 sales. One thing for sure that N3HC won't be fuel efficient like NHC.

Only time will tell what will happen. But as of what info is coming in N3HC will have the 1.3VTEC so surely that will be fuel efficient. It will be costly but marginally. Honda has already launched Civic E to prove it doesnt want City to enter Civic territory.

[oss]

Honda definitely will have to take SX4 seriously. The day SX4 diesel comes out City sales will be impacted big time. If Honda has refinement & reliability, then Martui has unbeatable service. Anyone who has experienced Martui service, not just the network, but the responsiveness of the service people will vouch for it.

1.3iVTEC will certainly be competing with SX4, may be at a slight premium, and 1.5iVTEC will fill the top end of C-segment.

[vasudeva]

As predicted, because of the base effect, GM is no longer releasing PR touting their 50-60% growth. Remember Spark was launched in April 2007 and that enabled GM to release monthly PRs highlighting their sales growth. But the bubble has burst and there is no PR during May 2008 and June 2008. Their PR said for March 2008` Achieving these levels of growth clearly reflects the customers’ confidence in the Chevrolet brand and the consistent growth in monthly sales is an indication of the success of all our carlines. Wth industry first offers such as ‘The Cashless Ownership Offer’, and numerous awards our carlines have won over the year, the brand and the product have exceeded the expectations of our customers in terms of performance, attractiveness and quality, not to mention service and value for money'.

I wonder what celebration/anniversary offer will come out next from GM. Perhaps a `new 55 year stock price low' offer.



GM India sets all-time high sales record - March 2008 sales up by 51% at 6,836 units - Free-Press-Release.com

Did you know that in the US, GM introduced a `72-hour sale' offering 0% financing over 72 months in an effort to give its June 2008 sales a boost. The sale ended on June 30. The offer extended to all GM brands, and 80% of its models, but excluded in-demand models such as the Buick Enclave, GMC Acadia, and Saturn Outlook CUVs. GM was worried about losing its top rank in the US to whom-Toyota.

In the end, the US auto industry had its worst month in 15 years in June with sales tanking 18% to around 1.19 million. Except for a 1.1% increase by Honda, all the other 5-Detroit 3, Toyota, and Nissan--recorded double digit declines. Chrysler tanked 36%. GM's fire sale ensured that it declined 18.2%, compared with 21% for Toyota, and ensured that it still remains No. 1 in the US. Honda has gained because its Fit crossed the 10,000 mark, with gains for Civic and Accord as well.

[mahadev_kc]

Maruti investors | maruti Monthly Sales report

[greenhorn]

GM has already rolled out the next offer
domain-b.com : General Motors India rolls out an aggressive marketing communication campaign for Chevrolet Spark

[vasudeva]

Originally Posted by greenhorn

GM has already rolled out the next offer
domain-b.com : General Motors India rolls out an aggressive marketing communication campaign for Chevrolet Spark

I am pretty sure that Rick Wagoner will not pay for this `blast we have planned is going to target our customers at every touch point across media....'.

GM reported the largest losses in 2007 (US$46 billion) amongst Fortune 500 US companies. Its market cap is now at US$5.8 billion, and sinking. (many smaller Indian companies have higher market caps). Losses mean it does not have to resources to survive in a down market and others can price it out.


There is also talk about bankruptcy with Times London reporting that `it is facing increased fears over its financial stability, with Merrill Lynch warning that bankruptcy was “not impossible” if the company did not secure a cash injection of $15 billion and if the home market weakened further. GM responded by saying that it had enough capital for this year but that it would have to reconsider its position if sales worsened.

[nurni76]

Thats right. Chevy Spark is all out to ensure it atleast touches 3K a month. Anyways vasudeva do you have the statewise model wise sales upto June or May 08

[TeddyBear]

Originally Posted by vasudeva

I am pretty sure that Rick Wagoner will not pay for this `blast we have planned is going to target our customers at every touch point across media....'.

GM reported the largest losses in 2007 (US$46 billion) amongst Fortune 500 US companies. Its market cap is now at US$5.8 billion, and sinking. (many smaller Indian companies have higher market caps).

Another potentian buy for Tata, Mahindra or Sonalika Tractors

GM could have made profit (in India), if Multijets were available across their modles.

[SkyWalker]

Originally Posted by TeddyBear

GM could have made profit (in India), if Multijets were available across their modles.

Seriously! I wonder who is doing the market research for GM in India - just by adding an MJD to UVA & Aveo i bet they can see the sales rate of these cars more than triple!

In fact it makes me wonder why bother to release a car under 10 L without a diesel option now-a-days. Perceptions are important - and once you establish a model as a failed one, there's hardly much you can do about it later.

get the pricing & positioning done right the first time - like Maruti has done with Swift and DeZire

[vasudeva]

Oh, the benefits of below cost diesel (and petrol pricing). Price both at less distortive rates and then see what happens. Politics apart, diesel car sales have zoomed as fuel prices have increased and differential between petrol/diesel has widened (instead of narrowing).

In a free market, high crude should translate into high fuel prices, and some dampening of demand. However, in an absolute disconnect with the global rise in crude oil prices, India's petrol consumption increased 11.2% in FY2008, compared with 7.4% in FY07, and 4.8% in FY06. Diesel consumption growth jumped from 1.4% (FY06) to 6.7% in FY07 and 11.1% in FY08. No efforts at discouraging consumption at all, either by the Govt. (politics and economics) and consumers.

While both petrol and diesel jumped at same rates and both have subsidies (if you ignore the high taxes that are supposed to discourage consumption), the fact is that petrol accounts for 8% of India's petroleum products consumption and thus in absolute terms, the underrecovery on petrol was estimated at Rs. 7332 cr in FY08 (Rs.2027 cr in FY07). HSD/Diesel accounts for 37% and high growth in FY08 has meant that underrecoveries have shot up from Rs. 18776 cr in FY07 to Rs. 35166 cr in FY08.

So the more cars sold, the more the fuel consumption, and more the losses. Someone has to pay for that loss, and indirectly all pay through inflation, whereas the people responsible for that (basically automotive users) constitute only a small proportion.

[phamilyman]

Vasudeva ji, nice little para there - however, I'm sure some of my taxes are going there as well!! So all the shopkeepers/SMEs who don't pay tax are the ones who really make hay

[oss]

Originally Posted by vasudeva

Oh, the benefits of below cost diesel (and petrol pricing). Price both at less distortive rates and then see what happens. Politics apart, diesel car sales have zoomed as fuel prices have increased and differential between petrol/diesel has widened (instead of narrowing).

In a free market, high crude should translate into high fuel prices, and some dampening of demand. However, in an absolute disconnect with the global rise in crude oil prices, India's petrol consumption increased 11.2% in FY2008, compared with 7.4% in FY07, and 4.8% in FY06. Diesel consumption growth jumped from 1.4% (FY06) to 6.7% in FY07 and 11.1% in FY08. No efforts at discouraging consumption at all, either by the Govt. (politics and economics) and consumers.

While both petrol and diesel jumped at same rates and both have subsidies (if you ignore the high taxes that are supposed to discourage consumption), the fact is that petrol accounts for 8% of India's petroleum products consumption and thus in absolute terms, the underrecovery on petrol was estimated at Rs. 7332 cr in FY08 (Rs.2027 cr in FY07). HSD/Diesel accounts for 37% and high growth in FY08 has meant that underrecoveries have shot up from Rs. 18776 cr in FY07 to Rs. 35166 cr in FY08.

So the more cars sold, the more the fuel consumption, and more the losses. Someone has to pay for that loss, and indirectly all pay through inflation, whereas the people responsible for that (basically automotive users) constitute only a small proportion.

I beg to differ there; in a rapidly expanding economy there other other factors that come into play to ensure the growing consumption.

On the argument of rising fuel dampening the consumption, you should notice that majority of the consumption in India is not conspicous consumption but on account of essential needs. ONly the conspicous consumption comes down on increased price, but for day to day commuting need there is no option available but keep spending. The condition of the public transportation doesn't allow me to switch to that mode. Same with the use of 2wheelers due to safety concerns for someone used to travelling in cars. However you could see this effect to some extent in the increaseing 2wheeler sale as opposed to car sales after the fuel price hike.

The bulk of the under recoveries are in diesel and the reason is they don't want the price hike to impact the inflation. Therefore petrol is cross subsidising it, means the petrol users are paying for the rest of the consuming class.