It’s sad how a Giant like Mitsubishi has almost Fallen by The Wayside in The India Auto-Sweepstakes, with much of it being its Own Undoing. B&E does a to-date-legacy Summary on The Death of a Brand…in India.
With a presence in over 170 countries, there is no denying that Mitsubishi is one of the oldest names operating in the global automobile circuit, and has had glorious moments in its journey, which started way back in 1917 with the Model A. It stands as the 7th largest Japanese auto major today and the 17th largest globally.
It also took an important lead, when it set up its Chennai car plant in 1998, in collaboration with Hindustan Motors Ltd. However, despite having received rave reviews for its cars (particularly Lancer), the company is actually facing humbling times in the Indian market. One wonders why the company hasn’t been too interested in being a part of the success story of the second fastest growing auto market in the world – India. In fact, Brazil has found better favour as the Japanese automaker recently made it clear that it is trying to quickly lift global production to 1.5 million units by redistributing business resources and will be investing close to $241.5 million for securing a 50% share in MMC Automotores do Brasil SA (a Brazilian company responsible for production of Mitsubishi products). Going simply by the numbers, even globally the company seems to be developing a laudable vision – Mitsubishi is eying sales of over 13,70,000 units by the end of FY 2013 from the current sales of 1,000,000 units by the end of FY2010. The company is planning to build a third factory in Thailand, which will make it the second largest export hub after Japan. It is aiming to strengthen production in China and even start producing a new SUV series in Russia.
And what about India? Well, in all of Mitsubishi’s BRIC speak, the ‘I’, that is India, is strangely absent. And the more intriguing part is, one isn’t quite able to understand the reasons that Mitsubishi might be avoiding mentioning India as one of its topmost priorities. What could be called the ‘clarion call’ of 2010 for Mitsubishi was the fact that while Hindustan Motors sold close to 490 units of the decades-old Ambassador in the month of December 2010, Mitsubishi managed to deliver only 143 units, combining all the offerings that it has in its India portfolio! And the response of Mitsubishi to all this? Well, nothing to write home about.
It’s quite intriguing, the current situation for Mitsubishi in India. During the late 1990s, Lancer was the epitome of technology and style for the Indian consumer. The modern looks coupled with the superior technology offered exactly what its target segment was looking for. However, the years that followed have only taken the company only deeper into the woods. The biggest issue facing the Japanese giant is the product portfolio. Today, the situation is such that while any prospective buyer in India would be able to drivel off various car brand names of Mitsubishi’s competitors like Honda, Toyota, GM, it’s rare now to meet a buyer who would be able to recall even three brand names of Mitsubishi vehicles (the list starts at Lancer and ends at Pajero). Over the years, while competitors kept introducing new models specifically targeted at various demographic and psychographic consumer segments, Mitsubishi’s product portfolio has remained an awkward mix with a couple of sedans and SUVs minus a hatchback. Yes, Mitsubishi had recently showcased its global concept car at the Geneva Motor Show, which is scheduled to launch from its Thailand facility in 2012. The company has even confirmed this in its global mid-term business plan from 2011-2013, which it calls Jump 2013. But concept cars are, well, only concept cars.
It also took an important lead, when it set up its Chennai car plant in 1998, in collaboration with Hindustan Motors Ltd. However, despite having received rave reviews for its cars (particularly Lancer), the company is actually facing humbling times in the Indian market. One wonders why the company hasn’t been too interested in being a part of the success story of the second fastest growing auto market in the world – India. In fact, Brazil has found better favour as the Japanese automaker recently made it clear that it is trying to quickly lift global production to 1.5 million units by redistributing business resources and will be investing close to $241.5 million for securing a 50% share in MMC Automotores do Brasil SA (a Brazilian company responsible for production of Mitsubishi products). Going simply by the numbers, even globally the company seems to be developing a laudable vision – Mitsubishi is eying sales of over 13,70,000 units by the end of FY 2013 from the current sales of 1,000,000 units by the end of FY2010. The company is planning to build a third factory in Thailand, which will make it the second largest export hub after Japan. It is aiming to strengthen production in China and even start producing a new SUV series in Russia.
And what about India? Well, in all of Mitsubishi’s BRIC speak, the ‘I’, that is India, is strangely absent. And the more intriguing part is, one isn’t quite able to understand the reasons that Mitsubishi might be avoiding mentioning India as one of its topmost priorities. What could be called the ‘clarion call’ of 2010 for Mitsubishi was the fact that while Hindustan Motors sold close to 490 units of the decades-old Ambassador in the month of December 2010, Mitsubishi managed to deliver only 143 units, combining all the offerings that it has in its India portfolio! And the response of Mitsubishi to all this? Well, nothing to write home about.
It’s quite intriguing, the current situation for Mitsubishi in India. During the late 1990s, Lancer was the epitome of technology and style for the Indian consumer. The modern looks coupled with the superior technology offered exactly what its target segment was looking for. However, the years that followed have only taken the company only deeper into the woods. The biggest issue facing the Japanese giant is the product portfolio. Today, the situation is such that while any prospective buyer in India would be able to drivel off various car brand names of Mitsubishi’s competitors like Honda, Toyota, GM, it’s rare now to meet a buyer who would be able to recall even three brand names of Mitsubishi vehicles (the list starts at Lancer and ends at Pajero). Over the years, while competitors kept introducing new models specifically targeted at various demographic and psychographic consumer segments, Mitsubishi’s product portfolio has remained an awkward mix with a couple of sedans and SUVs minus a hatchback. Yes, Mitsubishi had recently showcased its global concept car at the Geneva Motor Show, which is scheduled to launch from its Thailand facility in 2012. The company has even confirmed this in its global mid-term business plan from 2011-2013, which it calls Jump 2013. But concept cars are, well, only concept cars.
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.
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
