Players like Toyota and Honda are banking on this titillating growth curve in the segment. Industry buzz has it
that Japanese auto players expect to contribute to further evolution of the compact segment, offering more features, better styling and space than existing players in the market. Adds Srinivas Krishnan of BS Motoring, “The much talked Yaris will not be the Toyota small car for India; Toyota is developing an all new small car for the Indian market, which they would prefer to be within the ambit of the small car norms.” It comes as no surprise therefore that even the larger Palio, Swift and Getz are following a similar line of duty, increasing value for consumers.
On a contrary note though, the Indian automotive market is under the dark shadows of a global slowdown and sales have largely dwindled over time. Some predict that it therefore may not be for the compact segment to consistently upgrade its value-proposition. “There is a slump in the market and it is very difficult to gauge the consumer mindset at this time. You can never really say anything until Tata’s Rs.1 lakh and Toyota’s small car actually hits the market,” reasons Bertrand D’Souza, adding a word of caution.
But market conditions are forcing manufacturers to really throw caution to the wings. When Skoda launched the Fabia as a premium compact in January this year, most were skeptical about the product’s success. Many analysts even questioned Fabia’s positioning which infringed dangerously into the mid segment territory. But despite costing upward of Rs.6 Lakh, more than 2658 units were sold in the first three months alone! Clearly, Indian consumers are willing to upgrade and are no longer influenced by price alone. Small is indeed no longer small :-) Karan Mehrishi
that Japanese auto players expect to contribute to further evolution of the compact segment, offering more features, better styling and space than existing players in the market. Adds Srinivas Krishnan of BS Motoring, “The much talked Yaris will not be the Toyota small car for India; Toyota is developing an all new small car for the Indian market, which they would prefer to be within the ambit of the small car norms.” It comes as no surprise therefore that even the larger Palio, Swift and Getz are following a similar line of duty, increasing value for consumers.On a contrary note though, the Indian automotive market is under the dark shadows of a global slowdown and sales have largely dwindled over time. Some predict that it therefore may not be for the compact segment to consistently upgrade its value-proposition. “There is a slump in the market and it is very difficult to gauge the consumer mindset at this time. You can never really say anything until Tata’s Rs.1 lakh and Toyota’s small car actually hits the market,” reasons Bertrand D’Souza, adding a word of caution.
But market conditions are forcing manufacturers to really throw caution to the wings. When Skoda launched the Fabia as a premium compact in January this year, most were skeptical about the product’s success. Many analysts even questioned Fabia’s positioning which infringed dangerously into the mid segment territory. But despite costing upward of Rs.6 Lakh, more than 2658 units were sold in the first three months alone! Clearly, Indian consumers are willing to upgrade and are no longer influenced by price alone. Small is indeed no longer small :-) Karan Mehrishi
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus
4 comments:
IIPM Full time Programs National Economic Planning and Entrepreneurship is great
iipm the best business school in world
iipm course content is mindblowing
we love iipm
Post a Comment