B&E: Amongst all auto majors, Maruti was best able to withstand the slowdown period. The secret(s)?
MP: One of the major factors that has worked in our favour in this case is our network expansion in the rural areas. We decided to go to the rural markets much before competition realised the potential. So, when other players were busy tapping the rural consumers, we were targeting the rural markets to generate future growth for the company. If a Lehman Brothers files for Chapter 11 in a developed market like US, it will hardly affect the consumer who is living in a Tier-III city in the Indian market. Once, close to 3% of our total sales used to come from rural markets but today, the percentage has risen to 18% and that too in a span of just two years. We have even broken many myths. In fact, 2% of our total sales come from villages which have less than 200 people! All in all, the rural strategy has worked well for us.
B&E: What is the progress on your planned R&D Centre at Rohtak?
MP: We have earmarked close to Rs.25 billion for the R&D project at Rohtak. We have already purchased land for the same and aim to build a world-class test-track on it. The central idea is to conceptualise, test, develop, design and manufacture a car for India in India.
MP: One of the major factors that has worked in our favour in this case is our network expansion in the rural areas. We decided to go to the rural markets much before competition realised the potential. So, when other players were busy tapping the rural consumers, we were targeting the rural markets to generate future growth for the company. If a Lehman Brothers files for Chapter 11 in a developed market like US, it will hardly affect the consumer who is living in a Tier-III city in the Indian market. Once, close to 3% of our total sales used to come from rural markets but today, the percentage has risen to 18% and that too in a span of just two years. We have even broken many myths. In fact, 2% of our total sales come from villages which have less than 200 people! All in all, the rural strategy has worked well for us.
B&E: What is the progress on your planned R&D Centre at Rohtak?
MP: We have earmarked close to Rs.25 billion for the R&D project at Rohtak. We have already purchased land for the same and aim to build a world-class test-track on it. The central idea is to conceptualise, test, develop, design and manufacture a car for India in India.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri's Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri's Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
