When it comes to technology, especially in the auto sectors, Japanese and Korean manufacturers can never be defeated. In India as well as globally, they are one of the most sought after and dependable car manufacturers. The list of their popular cars includes Hyundai Santro, i20, Verna, Maruti Swift Dzire, Honda Civic saloon, Toyota Innova and many more to count.
With the consumer preferences changing rapidly, it becomes quite tough for the manufacturers to be in sync with the likes and dislikes of the consumers. Focus and the continuous efforts in R&D with matching financial resources has helped these car makers from Japan and Korea to establish themselves even in the competitive US car market. Hyundai in particular has been quite aggressive with its marketing spends in USA, they were also responsible to create a new paradigm in terms of cars sales when they offered 5-7 years of warranty on their product. Hyundai seems to have studied the Japanese approach to the US market in the eighties and have responded almost similarly. While quality and safety are in no doubt important features but it now seems to be relegated to a lower order of benefit as compared to vehicle styling. Styling obviously has to become the key reason for brand purchase as it help individualize ones car thus helping them to stand out in a crowd.
The past year has not been good for the auto industry and the same seems to be continuing in the 2013 as well. In India, considering the recent excise hike on the SUV and the economic slowdown gives negative vibes about the future, but still it is a market full of potential and promises. It may be due to the increasing number of young people or the growing wealth or may be the urge to own a four wheeler for a comfortable life.
Even though the industry is seeing a downfall, companies having great foothold and resources along with high capital base are likely to survive and benefit in the long run. The only thing that the industry needs to keep in mind is the right product, right price and the right offers.
The 3% increase in the SUVs excise duty has already started to shed its impact on the growth where as the economic slowdown has added to the woes negating the market sentiments and reducing the overall foothold at the dealerships. However, the market is still unstoppable. Moving forward to the installment plans, since 75% of purchases are financed, it will have low impact on purchases made on monthly installments. Besides the heavy discounts and offers to increase the sales can also be of some help to the sector.
Moving further, in bigger cities like Delhi, the expectations are for a better quality and value for money on the other hand in rural areas or first time buyers are more likely to go ahead and purchase cars with focus on price. So brands with focus on these product and price will not only survive but can also profit in the long run.
With the consumer preferences changing rapidly, it becomes quite tough for the manufacturers to be in sync with the likes and dislikes of the consumers. Focus and the continuous efforts in R&D with matching financial resources has helped these car makers from Japan and Korea to establish themselves even in the competitive US car market. Hyundai in particular has been quite aggressive with its marketing spends in USA, they were also responsible to create a new paradigm in terms of cars sales when they offered 5-7 years of warranty on their product. Hyundai seems to have studied the Japanese approach to the US market in the eighties and have responded almost similarly. While quality and safety are in no doubt important features but it now seems to be relegated to a lower order of benefit as compared to vehicle styling. Styling obviously has to become the key reason for brand purchase as it help individualize ones car thus helping them to stand out in a crowd.
The past year has not been good for the auto industry and the same seems to be continuing in the 2013 as well. In India, considering the recent excise hike on the SUV and the economic slowdown gives negative vibes about the future, but still it is a market full of potential and promises. It may be due to the increasing number of young people or the growing wealth or may be the urge to own a four wheeler for a comfortable life.
Even though the industry is seeing a downfall, companies having great foothold and resources along with high capital base are likely to survive and benefit in the long run. The only thing that the industry needs to keep in mind is the right product, right price and the right offers.
The 3% increase in the SUVs excise duty has already started to shed its impact on the growth where as the economic slowdown has added to the woes negating the market sentiments and reducing the overall foothold at the dealerships. However, the market is still unstoppable. Moving forward to the installment plans, since 75% of purchases are financed, it will have low impact on purchases made on monthly installments. Besides the heavy discounts and offers to increase the sales can also be of some help to the sector.
Moving further, in bigger cities like Delhi, the expectations are for a better quality and value for money on the other hand in rural areas or first time buyers are more likely to go ahead and purchase cars with focus on price. So brands with focus on these product and price will not only survive but can also profit in the long run.
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