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Topic : Automobile Industry in India
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Created by : Mridula Maity, Product Development Manager, Rugel  | 01 06 2010 11:22:43 +0000
Industry : AutomobileFunctional Area : Global Business(Strategy & Execution)
Activity:  1044 views;  last activity : 07 06 2010 20:18:09 +0000

Recently all the Global biggies are thinking small and the recent Auto expo in Delhi clearly showed that small is indeed beautiful and big in the Indian context.

On Tuesday, Toyota and Honda showcased their concept small cars for India, and Volkswagen launched the Polo whose pricing will be made public in March. Toyota's Etios is scheduled to debut in early 2011 with the “Honda Now Small” concept car following suit.

 

http://www.thedailyinquirer.net/wp-content/uploads/2010/01/2010_toyota_etios_concept-300x162.jpg    http://www.autospies.com/images/users/turbox/main/Honda%20New%20Small%20Concept.jpg

 

The two companies will be part of a product category where Maruti rules the roost with a market share of over 50%. Hyundai, Tata Motors, Fiat, General Motors and, soon, Ford are the other key players. It is in this crowded ring that Toyota and Honda will strive to create a niche for themselves. What do you think people, can Toyota & Honda dethrone Maruti suzuki in small car segment?

 
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Top Argument
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I think yes, remember both these auto giants come up with an ace product time and again and have done well, though their portfolio of cars is very less compared to Maruti suzuki, but small cars wins the hearts of many Indians, but the key would be pricing, which would have to be under the Rs 4-lakh mark if these automakers need to catch the eye of customers. What both have in their favour is strong brand equity, which means the battle is half won. The downside could be their delayed entry in addition to the fact that established players are not sitting content.

And on the other hand Maruti is getting stronger by the day, and with more emphasis on local R&D will only manufacture more cost-competitive cars. So price factor is the key component here. So yes with good products and once the price factor will ensure Toyota & Honda in good lead and in future may be even dethrone Maruti's from its forte...


By Mridula Maity, Product Development Manager, Rugel  01 06 2010 11:27:46 +0000
 
Top Argument
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Maruti has an array of small cars that have and are blazing the roads of India. Honda tried a bit with its Jazz version but have been moderately successful Curreently its only the Hyundai i10 / i20 that is giving some kind of competition to the Maruti car.

Price points could play a mojor role, but its the after sales that will eventually play an important role. As far as I am informed maruti spares are quite easy on the pocket and hence it is a more popular car. If the Honda's and Toyota's manage to do the same, wel... It could be a different scenario!


By Makrand Bhave, Marketing & MICE, WIZCRAFT International  01 06 2010 11:57:36 +0000
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Competitive advantage is ephemeral. Maruti has several pluses in its favor: established product, market positioning, benefits of learning effects, widespread maintenance skills among mechanics, familiarity, market presence, et al. Yet, these can fade away with time when confronted with consummate competitors like Toyota and Honda. These companies have wide experience globally. Maruti needs to be on the guard and tread very cautiously.


By Azhar Kazmi, Professor, King Fahd University of Petroleum & Minerals  | 03 21 2010 19:39:16 +0000
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mridula i would like to support you in this case..though maruti have been leading in the small car market but people always look for different cars, with the brand image of TOYOTA & HONDA if they are able do the pricing accordingly i.e 2.5-4lakhs then  why not..they will be able to succeed in small car segment also.


By sanjeeb tamuli, Business Development-NER, Indian Energy Exchange Limited  | 03 21 2010 16:14:32 +0000
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the drive of the honda is just close to heavenly orgrasm


By Ajay__Ziz , , jammu university  | 03 18 2010 05:18:13 +0000
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yes.the way they produce models for each segments shows the fact.they have the best products for any particular segment.they r at present ruling world auto industry.suzuki's dominance only suited to India. more over they have very higher brand image in india/world than suzuki.


By phanindra , B.Tech/B.E. student, College Of Engineering , Andhra University, Vishakhapatnam  | 02 05 2010 04:01:55 +0000
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yes! u r right all the automobile vhicles age going to be in small car features in the near future...and according to indian context more costomers want to have a car in there budgets easily thtswhy this is important issue to the automobile sectors and they are compete each other...and while from the starting ' from when the car came in india till that date everybody knows the car by the name of maruti..and maruti has captured the 70% market of india...and we know very well that the service and maintence feature are very easy and maintainable for evry car holders.


By TEJENDRA PRATAP, MBA/PGDM student, IIITM  | 01 28 2010 10:06:58 +0000
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Yes,I think HONDA and other companies will really effect the sales market of MARUTI. As  they have more and more technologies  and manpower and more advance brains. So they will lead the game in near future.


By Sumit Gupta, B.Tech/B.E. student, Guru Nanak Dev University, Regional Campus  | 01 08 2010 16:17:24 +0000
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Yuppp, toyota will overcome the above across globe


By Ganesh , IT SALES ENGINEER, IT  | 01 07 2010 14:31:29 +0000
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I agree with you on the price part , 

one quick point , people will equally be cautious about the energy efficiency part and the tech inside it It is time we demanded built in GPS units !!


By Shaikh Mohd. Laeeq, Technical Associate R&D , ThinkLABS Technosloutions Pvt. Ltd.  | 01 06 2010 13:18:31 +0000
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Yes, Toyta & Honda will make a big dent on the Maruti Suzuki market share of small Cars. As rightly pointed out the price tag would be a concern. However, I do not think these car makers would get in to Price war, rather I think the strong Brand should provide an edge. Toyta and Honda can have marginal premium than the current price tag of small cars in India.


By Arup Chakraborty, Managing Consultant  | 01 06 2010 11:52:16 +0000
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Maruti is producing more than 11 models in the price band from 2.5 Lacs INR till 9 Lacs INR all of them between B & C+ segments. It provides varied opportunities to customers at every price slab of 40000 INR / designs / engine options. MUL also has the largest service network in the country coupled with strong brand image that was built in 30 yrs. Recently it achieved production levels of 10 lac cars per annum.

Toyota & Honda cater entirely to a different niche segment  ( Premium B & C).


By santosh kumar, Marketing Manager, AUTOMOBILE  | 03 18 2010 08:18:26 +0000
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very true,toughest product in all slots MARUTI has....


By Sanjay Koul, R&D, Bajaj Auto Ltd.,Pune  | 03 17 2010 11:01:52 +0000
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kaula suzuki + maruti = sanjays marketing aided by japanese R&D....

nothing beats a maruti 800 ( 1980s) even today ... kingsize vehicle ..for the bonds ..for the advisors ( japanese) wagonr for the tourist :: old maruti zen ..for the shooters :: swift :: for the rallyist ::sx4 , for the offroadesr tank gypsy king :: for the politician :: the old grand vitara .. for the classique :: kizashi ::

And finally for the warrior ( samurai :: gymny )


By Ajay Ziz, Dy. Registrar,, University of Jammu  | 03 17 2010 10:43:09 +0000
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Dethrong Maruti in India is quite tough task,,,,,still after 20 years of launch of maruti 800 still it is selling in market,Maruti constitutes for 80% of car sale share in indian market,y people opt for maruti is becaz of the relibilty and after sales support-spares+ service....Swift was launched in india 4 years back still there is no discount scheme on it (even on year ends),what swift contributes in % to maruti rest all companies clubing all their models dont not contribute equal to it...

Regards

Sanjay koul

pune


By Sanjay Koul, R&D, Bajaj Auto Ltd.,Pune  | 03 17 2010 10:27:40 +0000
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Atleast for some years, does not look to be happening.

The reason is the wide range of cars, Maruti have. For all kinds of customers, may be fuel efficiency, elegant look, initial cost, Maruti have something to offer. It's network of service staions give confidence in the mind of people. Looking at this, do not feel that, Maruti will get affected with Toyota or Honda in near future.

Looking at today's market, I feel after Maruti, General Motor may come on second position, with success of Spark & Beat. Toyota & Honda appear far behind.


By Prakash Saitwal, Technical Support Manager, Aditya Birla Management Corporation P. Ltd.  | 02 15 2010 16:09:47 +0000
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Hi Rajesh, I agree with you. Maruti has a strong brand image among the Indians and its will be really a challenge for other players to capture the market. Apart from that they know the minds of the Indian buyers and whom to target in India. So if at all Toyata & honda want to capture the market they should show some unique feature that would attract the buyers. 


By Shailena Varma, Logistics Manager, Target  | 02 15 2010 12:41:35 +0000
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No absolu


By KUMAR SAURABH JHA, Manager-HR & Admin  | 02 12 2010 12:33:11 +0000
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Maruti Brand was built over the last 25 years. Focussing on customer, they established dealerships as well as authorised service centers i.e netwirk.. It became a friendly neighbourhoos car- easy to acquire, easy to maintain and easy on wallet, plus good resale value.

If othersw can emulate and be available in Tier 2 and 3 cities esp service points then they only they might succeed.


By Ramesh Ganesan, Associate/Senior Associate, Saud Bahwan Automotive LLC  | 02 05 2010 04:16:39 +0000
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Its not only the small car the initial cost, cost of running- i.e fuel cost, repair cost and the resale value- all these determine the success of a brand. Over the period of time the maruti brand was built up with focus on customers satisfaction. The network spread and the general availability of spares and ease of acceess to dealership/authorised service centers instilled confidence in the general public.

Yes if VW and Toyaota can spread their wings to the tier 2 & 3 cities then they also can.


By Ramesh Ganesan, Associate/Senior Associate, Saud Bahwan Automotive LLC  | 02 05 2010 04:10:48 +0000
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The vast network of service and parts availability and the proven track record has made maruti the No 1. It would take another 5 years atleast and huge investments in developing dealership and service network for any new aspirent.


By Ramesh Ganesan, Associate/Senior Associate, Saud Bahwan Automotive LLC  | 01 30 2010 00:18:41 +0000
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maruti has established itself with a robust service netwok which no other company can match.. also the strength of maruti lies in prving small cars at competitive price and quality. Though honda and toyta are biggies abroad, in India it is too difficult to dethrone maruti


By Balaji P, Assistant manager, MSIL  | 01 29 2010 17:05:12 +0000
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ya am well aware of wat maruthi as a brand today is now..they have the best customer satisfactory mechanisms available..but if u look at the recent trends in the automotive indutry , the industry is bound to c investments worth 80,000 crore.in terms of new product development an existing factory upgradation an i think both honda an maruthi will have a tough time in coping with another player slowly but steadily entering the market.thats volkswagen , though they are currently not into the small car segment the second largest car manufacturer is planning an invasion of this segment. the recent developments in the company is proof of it..the factory upgradtion in chakan near pune and the company plans to launch a small segment car vey soon. They are also increasing there dealer chain really fast an exponentially so i believe both toyota an honda as well as maruthi need to asess this upcoming threat as well will being on the fast lane of competition in the automotive industry. 


By JAYARAM V, B.Tech/B.E. student, CALICUT UNIVERSITY INSTITUTE OF ENGG & TECHNOLOGY  | 01 18 2010 14:05:38 +0000
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The most strong point Maruti has its wide network and easy repair & spares availability. Maruti has been ruling Indian roads & customers since more than 25 years and to beat the rule of Maruti the challanging car has to come up with som really ir-resistable features.


By Rajesh Khanna, A.G.M, Famina Knit Fabs  | 01 08 2010 18:02:55 +0000
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I fully agree with Makrand, rather I would say Maruti cannot be beaten in the small car segment!!!

1. It is proved that beating Maruti on pricing is very very tough. The scale of economy matters here, apart from Maruti's conscious efforts on pricing. We all know how Honda's Jazz is priced.

2. It takes enormous efforts and years of time to build up the dealer network & service network. It is next to impossible for aby company except Hyundai to come even closer to Maruti.

No doubt, Toyota and Honda are a class by themselves, but to beat Maruti in small car segment, it takes at least a decade, if they have that patience!!!


By SHARATH CHANDAR REDDY, Business Development Manager - Insurance, I T C Ltd  | 01 08 2010 17:06:57 +0000
1
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Maruti Suzuki in other words say's "Public Car ", small car segment is most popular & comfortable in Indian market, maruti service & spares are more easily available any where in India, with local & authorized services provider, so not easy to capture the maruti india market for other.


By sandesh nigam, Sales & Marketing Engineer , Electronica machine Tools Ltd  | 01 06 2010 16:30:42 +0000
1
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Maruthi has some advantages like easily available spare parts; most of cars are cheaper when comparing other companies. Most important is, middle class people prefer maruthi.


By VENKATESHA BHOVI S R,, ENGINEER-DESIGN, zurich metal product manuf.CO.LLC  | 01 06 2010 16:21:37 +0000
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Maruthi has some advantages like easily available spare parts; most of cars are cheaper when comparing other companies. Most important is, middle class people prefer maruthi.


By VENKATESHA BHOVI S R,, ENGINEER-DESIGN, zurich metal product manuf.CO.LLC  | 01 06 2010 16:20:46 +0000
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Maruti is the best in small car segment.


By A R Vinayak Das, Civil Engineer, Consulting Engineering Services (I)  | 01 06 2010 15:52:47 +0000
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No doubt Honda and Toyota's are of world class players however, Maruti is the market leader in small cars especially in india. I feel Maruti will be under tremendous pressure after knowing about their up coming competitors plans and should comeout with an alternative for overcoming such competitors... Thank you, Manish N

Cheers!!


By Manish N Chugh, Officer Trainee, Stock Holding Corporation of India ltd.,  | 01 06 2010 15:24:12 +0000
 
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