Then there are other auto players like Suzuki which are still bullish on the Indian auto sector’s potential as is evident from its 150cc bike launch annoucement last month. Come November 26th and you’d see it unveil its big bikes (including the Hayabusa) in the capital city. Atul Gupta, Vice President – Sales & Marketing, Suzuki Motorcycle India Pvt. Ltd. reveals Suzuki’s push strategy as, “Our strategy will be deeper penetration and tie-ups with retail financers to assure them repayments in order to combat this economic meltdown.”
So what can others do to stay afloat in such lowly times? “Launching more innovative products, increasing reach and marketing aggressively will be our mantra to attract more buyers,” says Gupta. And to stay profitable, the auto majors are doing their level best to curb over-supply as Jagdish Khattar, Former MD, Maruti Suzuki India and Founder, Carnation, states, “This is the time to tighten the seat belt and increase efforts in terms of marketing and reaching out to customers instead of waiting for them.” But there is hardly any silver lining for now as December is normally a sluggish period for the sector. What’s worse? Even sector experts aren’t too sure about that too as Jajoo further adds, “The auto sector will not revive in the next 6-8 months.” CRISIL has further predicted that the weak demand in the auto sector will prevail till FY2010. Surely, Bajaj is not the only Bechara here... many more Becharas are yet to get counted! And they’re half-way there already!
On improving affordability...
What reasons do you attribute to the prevailing slump in the auto sector?
Though the auto industry is witnessing a slow growth, but so far it still looks positive. It is a cyclical industry and is used to such downturns in the past. The overall economy is slowing and sentiments are weak, thus customers are postponing their buying decisions. With low penetration level and growing middle-class, the auto industry in India has a bright future, both in the medium and long term. Most manufacturers are betting on their future in India & China, where this industry is growing at its fastest. This is also evident from the fact that some more manufacturers are setting up base in India, taking advantage of the low production costs and growing domestic market.
So can we expect the end of this dark tunnel soon?
This is the time to tighten seat belts and increase efforts in terms of marketing and reach out to customers instead of waiting for them. It’s the right time for manufacturers to review their network strength, and build upon it, look at supporting the network to improve efficiency and financial health. This strong network will come handy as the situation improves...
What should the companies do to attract more buyers?
The companies need to focus and concentrate on small car production. India being a price sensitive market the manufacturers need to make cars more affordable...
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
So what can others do to stay afloat in such lowly times? “Launching more innovative products, increasing reach and marketing aggressively will be our mantra to attract more buyers,” says Gupta. And to stay profitable, the auto majors are doing their level best to curb over-supply as Jagdish Khattar, Former MD, Maruti Suzuki India and Founder, Carnation, states, “This is the time to tighten the seat belt and increase efforts in terms of marketing and reaching out to customers instead of waiting for them.” But there is hardly any silver lining for now as December is normally a sluggish period for the sector. What’s worse? Even sector experts aren’t too sure about that too as Jajoo further adds, “The auto sector will not revive in the next 6-8 months.” CRISIL has further predicted that the weak demand in the auto sector will prevail till FY2010. Surely, Bajaj is not the only Bechara here... many more Becharas are yet to get counted! And they’re half-way there already!
On improving affordability...
What reasons do you attribute to the prevailing slump in the auto sector?
Though the auto industry is witnessing a slow growth, but so far it still looks positive. It is a cyclical industry and is used to such downturns in the past. The overall economy is slowing and sentiments are weak, thus customers are postponing their buying decisions. With low penetration level and growing middle-class, the auto industry in India has a bright future, both in the medium and long term. Most manufacturers are betting on their future in India & China, where this industry is growing at its fastest. This is also evident from the fact that some more manufacturers are setting up base in India, taking advantage of the low production costs and growing domestic market.
So can we expect the end of this dark tunnel soon?
This is the time to tighten seat belts and increase efforts in terms of marketing and reach out to customers instead of waiting for them. It’s the right time for manufacturers to review their network strength, and build upon it, look at supporting the network to improve efficiency and financial health. This strong network will come handy as the situation improves...
What should the companies do to attract more buyers?
The companies need to focus and concentrate on small car production. India being a price sensitive market the manufacturers need to make cars more affordable...
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
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