Milestones matter. Targets titillate. five years ago, who would have dreamt that an indian telecom company will have 100 million subscribers. twenty years ago, who would have imagined that an indian company will report annual sales in excess of rs. one trillion. inevitably, one auto company will cross the two million mark. pawan chabra analyses the favourites & the dark horses.
One may argue that when Maruti Suzuki (the market leader) is yet to touch the milestone of one-million unit sales in a fiscal year, even after 28 years of its existence; then reaching two-million units in a fiscal is too far a dream for automotive majors in the country. But with Maruti Suzuki strongly holding on to its eight products in the compact car category, Hyundai making India its export hub and Tata Motors’ Sanand plant getting operational (which will take the production of the much-talked about Tata Nano in full swing), experts believe that the automotive industry will grow like never before in times to come. In fact, the two-million mark will be a race where the winner will be able to claim fame in the last lap of the competition. As a matter of the fact, India is the 11th largest passenger car market globally, and is expected to be the seventh largest by 2016. Experts claim that compact car segment will be the one which will steer the winner successfully to this milestone. Though, one will surely have to wait for a time span of around 5-7 years before any of the giant reaches the two-million milestone. B&E dares to take a sneak peak into who will reach the two-million mark first in the Indian automotive industry?
When one goes back a little and takes a look at the last fiscal’s unit sales, Maruti Suzuki sold 7,92,166 units, which stood tall in front of Hyundai’s 4,97,425 units and Tata Motors’ 4,98,172 units. Maruti Suzuki perhaps is similar to what Valentino Rossi is to MotoGP in this race. In fact, one cannot deny that Maruti Suzuki is in a cushy position in the compact car segment selling close to five lakh units in the last fiscal as its counterparts were not able to match even half of the standards set and settling at 1,82,775 units for Hyundai and 1,35,637 units for Tata Motors. But there are many dark horses trying to vroom ahead in the fifth gear and the future may not be as comfortable as it seems for the market leader. In the words of Shinzo Nakanishi, MD, Maruti Suzuki, “We will not be launching a product in the ultra-low-cost car segment and our focus will remain the A1 and the A2 segment going forward.
One may argue that when Maruti Suzuki (the market leader) is yet to touch the milestone of one-million unit sales in a fiscal year, even after 28 years of its existence; then reaching two-million units in a fiscal is too far a dream for automotive majors in the country. But with Maruti Suzuki strongly holding on to its eight products in the compact car category, Hyundai making India its export hub and Tata Motors’ Sanand plant getting operational (which will take the production of the much-talked about Tata Nano in full swing), experts believe that the automotive industry will grow like never before in times to come. In fact, the two-million mark will be a race where the winner will be able to claim fame in the last lap of the competition. As a matter of the fact, India is the 11th largest passenger car market globally, and is expected to be the seventh largest by 2016. Experts claim that compact car segment will be the one which will steer the winner successfully to this milestone. Though, one will surely have to wait for a time span of around 5-7 years before any of the giant reaches the two-million milestone. B&E dares to take a sneak peak into who will reach the two-million mark first in the Indian automotive industry?
When one goes back a little and takes a look at the last fiscal’s unit sales, Maruti Suzuki sold 7,92,166 units, which stood tall in front of Hyundai’s 4,97,425 units and Tata Motors’ 4,98,172 units. Maruti Suzuki perhaps is similar to what Valentino Rossi is to MotoGP in this race. In fact, one cannot deny that Maruti Suzuki is in a cushy position in the compact car segment selling close to five lakh units in the last fiscal as its counterparts were not able to match even half of the standards set and settling at 1,82,775 units for Hyundai and 1,35,637 units for Tata Motors. But there are many dark horses trying to vroom ahead in the fifth gear and the future may not be as comfortable as it seems for the market leader. In the words of Shinzo Nakanishi, MD, Maruti Suzuki, “We will not be launching a product in the ultra-low-cost car segment and our focus will remain the A1 and the A2 segment going forward.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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