M&M-Ford pact to focus on joint tech - ET

Coming close on the heels of Tata-VW/Skoda, India's automobile sector is in interesting space.

M&M with Ford seem to be better, for both TML (PV) and Skoda have not lived up to potential in the Indian market.

Skoda Service: I was pleasantly surprised to see a big shift in the quality of service when I was at Skoda dealer early this week. Skoda suffered on after sales, whereas TML product quality. M&M has shown more tuned to the market and customer, though Ford is making strides in Indian market.

Big opportunities to collaborate and deliver safety, quality and delight to car owners in India.

VW Races With GM for 2013 China Crown - Businessweek

How we all tend to chase numbers, including the respectable media :)! 
As a car enthusiast, or a common-man following auto industry, my concerns lies elsewhere : strategy, product, safety, pollution, et al !
Should we all not focus on quality, rather than 'quantity' ?!

Sometime back, at the peak of the recall crisis (or immediately thereafter?!), Toyota said they would not chase sales-numbers, but profitability and other related numbers! Perhaps, yes... first safety, of course !

So... back to numbers!!

• VW brands will be helped by Chinese recovery, though the much-preferred Audi may see a drop, thanks to the situation arising out of corruption in establishments. 'Aam Admi' waking up there too, to the malaise of corruption in political admin !! 
• Chinese auto market may grow in double digits, 10%-ish !
• VW, riding on the basket of brands, will most likely hit 2.7 million cars, compared to 2.65 million cars by GM ( in China)

Unfortunately, VW is yet to extend that kind of focus on India. The premium brands (VW, Audi, etc) is doing reasonably well, the popular Skoda, thanks to the perception 'value for money' at the entry level of luxury (!!) is not getting due attention. Skoda having displayed the much cliched 'early-mover-advantage', VW seem to be clueless how to handle the brand in India. In the process, the Skoda cusotmer is suffering. Not getting the VW advantage at all. 

Big opportunity for Skoda, along with VW ( Polo, Vento and pls introduce more models) to strengthen position. Roads are a big focus in 12th plan. 

VW Races With GM for 2013 China Crown - Businessweek

Maruti may emerge as a brand of Suzuki globally MINT

According to reports, Suzuki may start selling 'Maruti Suzuki' brand outside India. 

With Indian auto industry growing (slowly, but surely!), this would be great news to auto enthusiasts in India.  Though the temptation would be to launch this brand at the lower end. But, it would be great if opposite happens ( wishful thinking?!)  

Suzuki can truly launch an India auto brand abroad, more than Mahindra or Tata, or any other brand. 
Do a Bajaj Auto stuff in auto market !!

I have seen Tata cars (not JLR!) on roads of Middle East. Indian expat could be a ready segment, waiting to be tapped. Of course the taste of pudding is when the local customer laps up in big numbers...

Interesting !!

Sourse: Maruti may emerge as a brand of Suzuki globally Mint

Related thoughts on an earlier posting:
Foreign Carmakers Ship More Made-In-USA Cars Overseas - Forbes

Auto News India : Used car entry by VW

Volkswagen is entering the used car market in India. Das Auto will also be DAS WELT AUTO, 
the global pre-owned car business of VW. This will surely send the right signals to the market regarding VW's long term plans in India.

Interestingly, they hope to generate 25 % of their income from this business.
They will compete with Mahindra First Choice, the leading organised player in multi-brand, pre-owned car market. 

True Value from Maruti earns a good 1.3 times higher than their corresponding new car business. A proof of the potential of this segment, now dominated by unorganised sector. Of course Maruti has the advantage of scale, depth in service, relatively ease of servicing for their less-techie models.

Customer can only be happy about these developments ! !

Business Line : Companies News : Volkswagen to reposition Skoda, other brands in India

Volkswagen has a problem 'of plenty' with Skoda being identified as a luxury model here !!

VW has to get the positioning correct, for all 3 brands here, incl Audi.


Business Line : Companies News : Volkswagen to reposition Skoda, other brands in India

India not a priority for new models, investments till 2015: Volkswagen

I was surprised to see this headline, it is all over the media !!!

1. VW is the potential world No.1. But, can they ignore Indian auto market in their journey to global leadership ?
2. India is a different market - with the consumer behaviour unique, tax-regime not great and business environment, challenging. But then, can any top car manufacturer ignore such a market, with the greatest potential ?
3. Will it not give extra time for competition to erect barriers ? ( though VW, Skoda & other group brands already present in India)
4. Is it not a bad PR ?
5. Most importantly, a potential customer may over-react to this headline thinking VW may not invest in after-sales service and may exit, etc. That can work against the brand too.

The link:
India not a priority for new models, investments till 2015: Volkswagen - NDTVProfit.com

Banks to drag finance companies of car makets to CCI - ET

The leading luxury car players, BMW, Merc, VW family ( VW, Audi & Skoda) and Toyota have all pushed for volumes through their internal finance outfits. 'A unfair trade practise', feel the leading players in banking area, SBI, HDFC, ICICI, etc.

• Unfair to banks ? May be... Sour grapes or genuine interest for customer, who may not get best deal ?! :)
• Unfair to customers? May not be. The smart customer will go for the best deal. But then, the best deal may not be really 'the best', when there is internal subvention among the manufacturer and in-house finance company
• Unfair to their own brand & long term strategy ? May be... because, by pushing internal finance outfits, they will be shutting off support from banks. Losing an opportunity to tap banks' existing customers. Remember Fiat's FISAF? Maruti grew when they looked beyond few preferred financier-players
• Does the issue deserve to be taken up at C C I by these top banks? Perhaps over-reacting!!

What about similar arrangements for trucks ( Tata, AL) and far-equipment (M&M). Also, what about two wheeler finance ( Bajaj)? Here customers can complain banks are not supporting enough.  PSU banks are not there in CV Finance. Private banks are not uniformly aggressive, in view of the cyclicality of CV industry. Some leading private banks have exit two-wheeler finance.!!

Food for thought !

http://economictimes.indiatimes.com/news/economy/finance/banks-plan-to-drag-finance-companies-of-car-makers-to-cci/articleshow/16945204.cms

Festival Time Car Launches in India 2

One of the mostly awaited car launch was 'at the bottom of the pyramid', coming from the market leader, Maruti Suzuki.

Their Alto 800 is a model which has generated lot of interest and has quickly managed to get over 10K bookings. 

Maruti has gone ahead with a aggressive push for a petrol model, when the auto industry is in #dieselisation mode. But, they have assured a good mileage. This will have a CNG variant too. Interesting...

Developed entirely in India, with an investment of Rs 470 crore by Maruti Suzuki and its vendors, over 200 Maruti Suzuki engineers worked on the Alto 800 over the last four years. The new Alto 800 sports a fresh look, is more spacious and delivers 15% better efficiency than its predecessor, claims Maruti Suzuki.

Maruti has been losing market share for factors such as labour unrest, etc. This launch should help them gain the lost ground 

Festival Time Car Launches in India 1

Macro Level: Shradh (inauspicious) period comes to an end today. A spate of auto launches scheduled ahead of the festive season, from Dassera to Diwali. Industry volumes have been sliding down-hill this year. 
External factors, such as #dieslisation of auto industry, strike at Maruti plant, macro economic factors, etc. All car manufacturers are desperately looking for a spurt in demand during the festive season. RBI can play a catalytic role by reducing rates on 30th October !

With half the month lost to inauspicious, lot of catching up to do for auto dealers....

One of the first off the block is Ford Figo. 

• It claims over 100 modifications, including enhanced kinetic design
• Most of it cosmetic 
• This international best seller from Ford should improve its global presence in the small car segment through this best-seller.
• In India, Ford still seem to suffer from the perception of service levels, not world-class yet. An area they should focus too

Courtesy:
http://www.yourmoneysite.com/news/2012/oct/fords-new-figo-launched-priced-around-rs-385-lakh.html

Renault register growth in GCC

Having seen KSA market very closely, the new Renault dealer is a case study as to how to handle auto sales !
No big action, but get small, but key things right.
Get fundamentals right, other things will fall in place, incl market share, market perception ( of a European market dominated by Japanese brands), et al.

Hope they replicate it here in India...

Lots of expectations from newly launched Duster !

http://www.arabianbusiness.com/french-car-maker-posts-32-rise-in-gcc-sales-470176.html?message=3

Dieselisation of Indian Auto

No respite to this madness...

Now Honda may stop production of its once popular Civic.

Government, auto industry and educated public is sitting on this important development - dieselisation of India's auto industry. No one is bothered as long as he is able to drive a diesel car, thanks to diesel prices cheaper than petrol by 40%. Car owners are looking the other way. Auto Industry is not taking responsibility. And, what to say about this government, we have selected. They are sitting on many more such important issues... :(

Dieselisation trend in India

• March 2008 : 21%
• March 2012 : 40% 
• June  2012   : 50% 

Honda has a diesel engine in Europe. But, can not be sold in India, thanks to the quality of diesel sold. 

India's auto market will miss the holistic development of the industry. 

PS : Health hazard of diesel fumes already mentioned in a previous post !