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Created by : ABHIJIT KULKARNI, Project Manager, BNP Paribas  | 04 17 2010 06:32:01 +0000
Industry : AutomobileFunctional Area : Autos(Personal Interests)
Activity:  523 views;  last activity : 07 06 2010 20:18:09 +0000
All models face a challenge in a market growing at more than 10 percent a year due to the dominance of local Indo-Japanese producer Maruti Suzuki, which has a 55-percent market share, and Indian groups Tata Motors and Mahindra. "In terms of total volume of sales we are not a big player, but this will change it," Volkswagen India marketing manager Lutz Kothe told. The compact hatchback from VW, which wants a 8-10 percent market share by 2016, will hit the roads in March at an as yet undisclosed price. This year's Delhi auto show is the 10th, but it first caught the world's attention in 2008 when Indian manufacturer Tata Motors unveiled its Nano, the world's cheapest car. The 115,000-rupee (2,500-dollar) Nano added impetus to the race to produce cheap, small vehicles, which account for 80 percent of all car sales in India. Recent months have seen foreign giants Ford, Hyundai and Renault join a stampede to India, where each has promised a small, cheap model designed for what Ford boss Alan Mulally termed the "sweet spot" of the market. Rising incomes mean Indians are following the familiar pattern of upgrading their transport from push bikes, to motorbikes, then to cars, but the vast majority of vehicle sales are still two-wheelers This is set to change, says GM India chief Karl Slym, who cites figures showing 8.5 cars per 1,000 people in India, 20 per 1,000 in China and more than 500 per 1,000 in developed countries such as Germany or the US. Car ownership is rising fast and Maruti will see its market share cut back in the face of pressure from foreign and domestic competition, Slym says. "I think everybody used to wake up and say 'I'm going to buy a Maruti', but times are changing," the GM India boss told AFP. "People are now looking for the best value proposition on the market." India's market has gone from a largely closed one two decades ago when consumers had only a couple of locally-made alternatives to one offering a plethora of choices amid fierce competition. Total car sales are forecast to reach two million this year and triple in the next decade, according to industry estimates. AutoExpo 2010, which runs in New Delhi until January 11, features 10 global releases of vehicles designed for India's new consumer generation. Japan's Toyota took the wraps off its first compact model designed for India, which has adapted suspension for the rough roads, plenty of storage space for large families and an engine made with city driving in mind. The Etios will probably be launched later this year, the company said, at a price -so far undisclosed- that will attract young professionals and families. Toyota's plan is to export it from India, which, though lacking in important infrastructure such as cutting-edge ports, is fast developing as a small-car production hub. "It's not a copy of a Japanese or European model," said Kazuo Okamoto, vice chairman of Toyota, at the presentation. "Etios is newly developed for customers in India." Honda unveiled its first small car concept model that it aims to start selling next year, while GM put on show its new 7,000-dollar Beat model and a new mini electric vehicle called the e-Spark. Maruti Suzuki -majority owned by Japan's Suzuki in which Volkswagen intends to buy a nearly 20 percent stake- said it was aware of the pressure on its market share. "We are trying to expand our portfolio and refresh our products to offer customers new cars," said I.V. Rao, senior director at the group, when asked about the competition.
 
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The big indian brands like TATA, MARUTI, MAHINDRA etc Vs as against global brands Toyota, Chevrolet, hyundai
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Yes of course and taking caution not not be paying premium for being nationalistic.

The advantages like broader support base naturally aligned  technology etc....not having wiper control on right hand because someone lifted the steering from left and placed on right etc... several things are considered i am sure.


By Ravindra Sharma, Managing Consultant, CHEF-India  04 19 2010 08:47:32 +0000
 
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Good debate Abhijit, I think the global brands are doing good than the local brands in all aspects like design, performance, price and service. Since the emergence of global brands people started looking for the best one than the brands. The reason being we see new models every quarter in the market.  So it is difficult to say which brand I prefer....

Thanks....


By Mridula Maity, Product Development Manager, Rugel  04 17 2010 10:12:03 +0000
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no, the top of the mind recall is the global brands, maybe its because of design, functionality, and good value for money,Indian companies need to change with the changing times
By HRITURAJ MAITRA, Assistant Manager, Media  | 05 21 2010 18:08:14 +0000
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Dear Abhishek,

The statement "Consider" is significant only to those who have to apply mind before a decision for whatever reason including of course the money and ease of spares and maintenance. The past record of some companies that came and left the customer groping for maintenance or not customizing to Indian conditions are important factors put to thought by those who consider.

For the other class it does not matter to order replacement from country of original make or even send out for repair if so wished. And in answer to till when we remain in protected..... the answer is till we get serious with our pursuits and start to invest in R & D and innovation and stop to weigh everything from" What will I gain?" angles alone. 

It is as well a truth that there is no automobile completely Indian if taken on technological assessment as Mr Kandadai expressed.


By Ravindra Sharma, Managing Consultant, CHEF-India  | 04 20 2010 06:29:54 +0000
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exactly, u r bingo.

till when we would remain in protected environment, Sanjay gandhi made change by bringing Maruti India before we had only two choice fiat and ambassador, same thing happned to maruti-- when we opened market for foreign players,

thats why maruti change models to zen and estello , swift  new models compare to serve India by maruti 800 for 10 years. So let be thankful for open market and see every car and co on its merit rather than its country


By Abhishek Gupta, Director , Skills Factory  | 04 19 2010 11:56:51 +0000
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its true if we are talking about smalls cars


By Abhishek Gupta, Director , Skills Factory  | 04 19 2010 11:11:18 +0000
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I think in india people consider looks of the car as one of the most important features, where indian brands are a hit in low cost, people do not like to purchase an expensive indian brand and bigger the car better the status.
By Rishi Makhija, Business Development, Wizcraft international entertainment pvt ltd  | 04 19 2010 10:56:53 +0000
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Majority of Indians believe in numbers. The more the merrier is our thought process. So when you decidedly gift money (Rs. 50 Lacs) any person like me would go and buy 5 different marutis rather than half a BMW (as that would be the available car from the money you gift).

What would be the thought behind this is the fact that there would not be any money keft to buy fuel for the car and only a half one at that :)

Be real my friend. Todays world has the people who need to marked by the things they use and yet have a host of fueal efficient fleets at their disposal. Creating an ebvironment of niche is diff than being REAL!!


By Makrand Bhave, Marketing & MICE, WIZCRAFT International  | 04 19 2010 09:46:44 +0000
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Dear Abhisherk.

By your definition my first car was a FIAT made by Premier Automobiles... was it Indian... I can not say but asides Ambassdor in similar category there were no choices. We in India believe in COPY PAST at best so expecting R & D and true indigenous is quite some distant in future I guess.

WHY WASTE ENERGY IN REINVENTING THE WHEEL? thought  is most Indian....am happy the one who made it round from square did not agree with our views.


By Ravindra Sharma, Managing Consultant, CHEF-India  | 04 19 2010 09:19:41 +0000
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Dear Abhishek,

Pardon, me but which " diff" is for different and which one for difficult?

Obviously the talk I am sure is in relative terms and to compare RR with Indica was never the intended intent, I feel.


By Ravindra Sharma, Managing Consultant, CHEF-India  | 04 19 2010 08:53:44 +0000
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Most definitely!!

I have complete confidence in our auto manufacturing abilities and I am sure so do a lot of others in India. I am a big fan of Maruti Zen and also noe with the M & M Scorpio. Tata Safari was also one of my favs at one time :))


By Makrand Bhave, Marketing & MICE, WIZCRAFT International  | 04 19 2010 07:29:00 +0000
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today indian brands are too competing equally with global brands like toyota,honda etc..not many people can afford for global brands' cars there are many resons for that which could be on-road price of the car, availability and cost of spare parts etc., in which case indian cars are the best..also most of the cars produced by these global brands are high end cars. and the most important problem in most of the indian cities is the parking problem, while the cars manufactured most  by honda are sedans, toyota manufactures SUVs which poses not only parking problems also consumes more fuels.  Indian roads need small cars which consumes less fuel compared to other cars and give adequate mileage,whish are best produced by Indian companies TATA, MARUTHI.etc


By Rajalakshmi S, B.Tech/B.E. student, Dr.AIT  | 04 19 2010 06:44:33 +0000
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I personally welcome the entering of global brands in the automobile field because, it will make the competition stiffer and as a result customer get the best product and best service. Before the entering of global brands, we were stuck with the cars that are not at all ergonomic and comfortable as now. We enjoy riding Indian brands because it is a blood relation with them, they know what we need and has a good reputation in our mind. Low priced spare parts, highest no: of service centers and ultimately reliability. We can let them serviced in the local workshops without a problem. 

In case of global car makers, they have excellent technologies that our brands lagging in. But it not only ends there, the ride & built qualities are sometimes good too. But it won't give them any upperhand against our brands. Indian brands are making the best in performance in the world. TATA brought Jaguar and Land Rover from Ford. The world's cheapest car was made by an Indian company. Maruti now creates designs for the Suzuki. Mahindra is getting recognized by the whole world, which now deals with all the automobile sectors like 2,3,4 wheelers and heavy trucks. Their reliability is higher than any other foreign company and it is the one we should look after.

If we didn't saw the good side of our companies and praise them, then who will do that Japanese or the Americans.? Think ...


By jinesh vinayachandran, Assosiate Professor, Matha College of Technology  | 04 17 2010 17:22:10 +0000
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Global brands are like dance tracks which keeps on changing. initially they look good but soon you become bored. when it comes to overall perfomance like regular maintainance, fuel efficiency & others, Indian brands are far ahead. Spare parts, service centres can be easily located for indian brands.i will always go for the indian brands.


By Pankaj Dangi, Online Advertising Manager, Crystal Travel  | 04 17 2010 10:36:18 +0000
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yes, i will support this side. Infact the first name is Maruti. One reason for that is because of the contrywide sevice centres, their dedicated 2x7 call centres. From my personnel experience I got assistance at midnight on my way back to home.


By Manoj Kumar, Sr: Manager - QA, ARCHETYPE GROUP, INDIA  | 04 17 2010 07:39:06 +0000
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Foreign car makers think small to crack Indian market NEW DELHI: Global car manufacturers eyeing the explosive growth of the Indian market unveiled new compact models at the Delhi auto show Tuesday as they seek to break the dominance of entrenched local producers. Japanese groups Toyota and Honda, Germany's Volkswagen and US giant General Motors (GM) put new vehicles on show designed for the growing car-buying middle classes with modest budgets and for the country's notoriously bad roads.
By ABHIJIT KULKARNI, Project Manager, BNP Paribas  | 04 17 2010 06:32:01 +0000
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Its not about the brand... its about which company gives you the best with the most reasonable price tag.
By Diwakar Gupta, Technical Consultant, Meridium Services & Labs Pvt. Ltd.  | 05 21 2010 18:42:03 +0000
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Not the matter of Brand but even all consumers are more concerned about the after sales service set ups & maintenance cost. Even few Indian brands are costlier to maintain than global brands.


By Vishal Jindal, Head - Operations, Globe Automobiles Pvt Ltd  | 05 20 2010 16:50:09 +0000
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I am not sure that one needs to look at this fact at all.

Personally, when i buy a car, i look at its history on road (i never touch newly introduced vehicles), the capital invest ment (on road price), then i look at the recurring investment - running cost which includes insurance, diesel or petrol, repairs etc.

Based on these factors alone i take the decision. When i invest that kind of money, patriotism does not come in to the picture. Besides what is indian make? Maruti? Chevy (Guj)? Huyndai (TN)? BMW (TN)? and so on

India is the cross roads of automobile manufacture .....so such a distinction is more emotional than logical.

Besides why restrict when there is so much choice to get maximum value for money?


By RAMESH KANDADAI, Principal Consultant, ARM Consultants  | 04 20 2010 07:09:06 +0000
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sorry to differ, without offensive at all,

I am here responding to a question-- do you consider Indian brands first before choosing foreign brands.

Answer to this question is based on your pocket, if you are comparing sujuki,indica,I10,I20,POLO,FIAT,MICA,FIGO,   Than I take my words back.

My question is still same, will u be treated and feel when u drop from audi and bmw or 5 Maruti swift as well.

and pls understand-- the people who buy BMW,AUDI, etc  Their priority of buying a car is not fuel efficient.., they can afford . Indian too, Major Indians in Niche class, who buy these cars, pls ask them :)

I am talking about that segment, You will be astounded by number of cars are getting sold under these umbrella.

Lets stop branding Indians with low things and brands and cars, let us progress


By Abhishek Gupta, Director , Skills Factory  | 04 19 2010 11:10:41 +0000
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Being patriotic is diff-- being honest is diff.

Dont compare BMW- AUDI- MERC- TOYATA --- with Maruti/indica/scorpio.

if i give you 50 lacs gift to buy a car of your choice THAN will u buy 5 maruti or 1 black Audi and bmw--   will u be treated as same if u come out of maruti swift OR blACK BMW-- common guys be true

References :

By Abhishek Gupta, Director , Skills Factory  | 04 19 2010 08:44:51 +0000
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Mr Pankaj, what was the last car you purchased ?

Dear If you said this about gobal brands, thwn what do u say about Maruti

Maruti 800, maruti 1000( esteem now) , zen, new zen, zen estello, new zen estello with new lights, Alto, Astar, Swift, dezire, esteem, Balero,


By Abhishek Gupta, Director , Skills Factory  | 04 19 2010 08:33:36 +0000
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indian brands are part of exports now. more or less they are equal to global brands and tough counter part for foreign moto. same comfort , power , look , average at zero maintenance. and not the least resistance to indian road.


By puneet , Manager Admin  | 04 17 2010 17:25:21 +0000
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