With new entry compacts, Hyundai & Maruti are out to prove they are ready to fight the Rs.1 lakh car
Maruti Suzuki’s A-Star debut at this year’s Auto Expo was met with skepticism after the initial hoopla. Analysts who had earlier
anticipated that progressive consumerism would shrink the entry level segment further; were aghast by the audacity with which Maruti made this bold move. According to market reports, the stylish car will be a sub Rs.3 lakh product, offering entry level customers a wider product range. As a repercussion to the impending Tata Nano (the Rs.1 lakh car), volume players are on a scramble to provide the customer with an alternative that is not basic (unlike the Nano) but is highly affordable nonetheless.
Taking the bait of even higher volumes, expected to be generated by the ‘high attention’ entry segment, India’s number two player, Hyundai Motor India (HMIL) has unleashed its plans as well. Reportedly, the South Korea major is developing an entry level small car, albeit one that is not directly competing with the Nano. Comments HS Lheem, MD, HMIL, “Hyundai does not have any plans to enter in to this segment immediately. What Hyundai might look into, in the near future, is the possibility of a car a notch lower than the existing Santro, keeping in mind parameters like technology, safety and regulatory norms.”...Contine
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
Read also :-
Maruti Suzuki’s A-Star debut at this year’s Auto Expo was met with skepticism after the initial hoopla. Analysts who had earlier
anticipated that progressive consumerism would shrink the entry level segment further; were aghast by the audacity with which Maruti made this bold move. According to market reports, the stylish car will be a sub Rs.3 lakh product, offering entry level customers a wider product range. As a repercussion to the impending Tata Nano (the Rs.1 lakh car), volume players are on a scramble to provide the customer with an alternative that is not basic (unlike the Nano) but is highly affordable nonetheless.Taking the bait of even higher volumes, expected to be generated by the ‘high attention’ entry segment, India’s number two player, Hyundai Motor India (HMIL) has unleashed its plans as well. Reportedly, the South Korea major is developing an entry level small car, albeit one that is not directly competing with the Nano. Comments HS Lheem, MD, HMIL, “Hyundai does not have any plans to enter in to this segment immediately. What Hyundai might look into, in the near future, is the possibility of a car a notch lower than the existing Santro, keeping in mind parameters like technology, safety and regulatory norms.”...Contine
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
Read also :-
