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06/05/2018

11/11/2012

GM, Ford comeback in India stalls as market share falls

Almost two decades after entering India, here's what General Motors Co. and Ford Motor Co. have to show for their efforts in Asia's third-largest automobile market: combined market share of about 6.5 percent and falling.

GM's sales in the country have tumbled 17 percent in the past 10 months and Ford's deliveries are off 8.4 percent, according to researcher Intelligence Automotive Asia.

Though the U.S. carmakers say they're optimistic, they face mounting competition from Toyota Motor Corp. and market leader Maruti Suzuki India Ltd., which makes 4 in 10 vehicles sold in India.

The wrong cars priced above rivals' offerings, coupled with poor service, are among the reasons analysts cite for the Americans' lack of progress in a country that's projected to overtake Japan as the world's No. 3 passenger-vehicle market this decade.

While they are stepping up efforts to cater to Indian motorists, the Detroit automakers have yet to show they can reverse their slide toward irrelevance.

"GM and Ford have not been able to understand the market," said Deepesh Rathore, a managing director for researcher IHS Automotive in New Delhi. "They haven't been able to train their dealers and the competition is getting tougher."

When Ford introduced its latest Fiesta sedan in India in July 2011, it priced the car at 823,000 rupees ($15,120), or almost 20 percent higher than Hyundai Motor Co.'s similarly sized Verna. The Verna has outsold the Fiesta four-to-one.

Hindustan Motors

GM entered India in 1994 in a venture with Hindustan Motors Ltd., selling the Opel Astra and later the Corsa and Vectra -- all three sedans, in a country where most buyers prefer hatchbacks. GM bought out Hindustan Motors' stake in the venture in 1999.

The company's first hatchback in India, the Opel Corsa Sail, didn't hit the market until 2003.

And at 439,000 rupees, it was 25 percent more expensive than the comparable Fiat SpA Palio and Maruti Zen.

GM discontinued the model three years later, saying it wasn't competitive. GM now has a market share of about 3.3 percent.

Ford was the fourth-lowest scoring brand and GM was third- lowest in the J.D. Power & Associates's 2012 India Customer Service Index study, which ranks dealerships and service centers, released Oct. 31.

Maruti ranked first, followed by Honda Motor Co. and Hyundai.

The Americans also lag behind in their dealer networks. GM has 279 dealers in India and Ford has 160, versus 1,100 at Maruti Suzuki and 355 at Hyundai.

Recruiting more dealers may be a challenge.

'Chicken and egg'

"It's a chicken and egg situation," said Mohit Arora, an executive director at J.D. Power in Singapore. "If you don't have the volumes or model lineup, you end up attracting sub- optimal dealers."

Sometimes it's the little things. To save on costs, power windows were only offered in the front seats when Ford introduced its Es**rt sedan in 1997.

Buyers with enough cash to afford the car, though, typically have drivers, so they were in the back with wind-up windows while the chauffeur had power up front.

The problem has since been fixed. In GM's Chevrolet Optra and Aveo, drivers seeking to signal a turn by flicking the lever on the right, as is typical in India, would instead activate the wipers.

Today, GM is looking for inspiration in China, where it has been the No. 1 foreign automaker every year since 2005.

GM last week began taking orders in India for the Chevrolet Sail, the second-most popular vehicle in China.

This year, the automaker also plans to introduce the Chevrolet Enjoy, a version of a top- selling Chinese minivan called Wuling Hong Guang.

11/11/2012

01/11/2012

The well known marketing research firm, Phoenix Marketing International has recently reported findings that reveal consumer perceptions of automotive brands in the non-luxury and luxury categories, The study was held from July- September 2012 and covered over 5,600 consumers who have either recently bought a vehicle or in the process to get one. Key factors on which the study was held include unaided awareness, total advertising awareness (unaided and aided), as well as brand impression, purchase consideration, and recommendation. The study also provided analysis of open-ended brand association comments.


Phonenix finds that two companies that were neck to neck over the perceptions and purchase intentions of non-luxury automotive consumers are Ford and Toyota. While Toyota is a highly considered brand, it trails competitors in other metrics tracked in the study. Moreover, Phoenix's analysis depicts a connection between brand scores and open-ended brand association comments. For example, Ford received high marks for brand awareness and recommendation in addition to receiving comments that uniquely convey Ford’s identity in the minds of consumers.

As per Phoenix, the factor that lead consumers to consider Toyota and Ford over other brands is focused, active messaging strategy. Phoenix Senior Analyst Kevin Severance explains, “Toyota seems to have struck a balance between active messaging through frequent advertising and having created a resonant perception of quality that other brands haven’t quite achieved. Plus, they’ve done this despite past recalls that are still in the back of consumers’ minds. At the same time, Ford benefits both from its role in American automotive history and from consumers’ regard for the company for how it weathered economic downturn. Those perceptions coupled with active messaging campaigns that include a vibrant social media presence make for a very healthy brand.”

The Study also covered top brand's strategy for the attention of luxury vehicle consumers. Phoenix’s analysis of luxury brands reinforced the parallel between brand association and brand leading indicators like awareness, impression, and consideration. Each top-performing brand has incorporated its unique strengths into its communication strategy. As an example, BMW’s high scores for awareness, impression, and consideration are enhanced by the brand’s focus on performance messaging.

25/10/2012

Nissan Motor India will hike the price of its Sunny sedan and the Micra hatchback from 1 November . The Japanese automaker has attributed the hike to increasing input costs and rise in cost of transportation and logistics. However, the prices of the new MUV, the Evalia, will remain unchanged.

14/01/2012

FORD 1.4 TITANIUM (DEISEL) available in PUNE for sale! Just for the cost of Rs 570000.00/-

05/01/2012

Auto Expo 2012: Car makers look for growth at India expo

Auto Expo 2012: Full Coverage
http://economictimes.indiatimes.com/autoexpo2012.cms

Auto Expo 2012 at The Economic Times. Latest Auto Expo News - 11th Auto Expo 2012 News, The Auto Expo 2012, Asia's largest automotive show is a biennial trade fair of automobile and auto component manufacturers organized at New Delhi, India.

20/12/2011

Why used cars are good values

It’s obvious that used cars cost less than new ones. But to really see how much you can save, you have to look at overall owner costs, which include depreciation, fuel usage, insurance, interest on financing, maintenance and repairs, and sales tax.

The real key to used-car savings is depreciation, or how much value a car loses over time. On average, depreciation accounts for a whopping 45 percent of a new vehicle’s owner costs over the first five years, with the steepest drop in value coming in the first year.

By contrast, a three-year-old vehicle has already taken its biggest hit in resale value. Its depreciation accounts for only about 25 percent of its five-year owner costs. Big depreciation for new cars means lower prices for used cars, which in turn mean lower finance charges and sales tax. When combined, that can cut overall owner costs dramatically.

But we also found that some popular models, such as the Mini Cooper and the Toyota Prius, don’t depreciate much. So buying a used version of those models results in modest savings.

We included depreciation in our owner-cost estimates because we assume the vehicle will be sold or traded in after five years, which is a common scenario. That said, the longer you keep a car after the loan payments are through, the more value you get from it. So you could save even more.

18/12/2011

Event Profile :
Contact Organizer Auto Expo ranks as one of the leading automobile industry trade shows that are held in India.The Auto Expo show is hosted at the Pragati Maidan in New Delhi,and is attended by several leading professionals from this sector.A number of topical seminars and interactive conference sessions are organized during the event,with the SIAM-SMMT and the Recycling of Vehicles being two of the most noteworthy of such sessions.At the Auto Expo-New Delhi,the Garage Pavilion,the Diesel Pavilion and the Engine Pavilion are worth a special mention,and participants can also take part in the automobile designing contests that are held during the show.The Auto Expo 2012 show draws in a large number of exhibiting participants,showcasing lubricants,vehicles,CNG Units,auto-electrical items,CAD/CAM tools and a host of other related automotive instruments and design solutions.The show boasts of impressive visitor count as well,and has a large number of foreign participants visiting the show too.

17/12/2011

The chief highlights of the Auto Expo 2012 are:

1. The SIAM Auto Trade Dialogue session.
2. Recycling of Vehicles seminar.
3. Styling & Design Conclave,and
4. Theme Pavilions.
Watch for more details...

17/12/2011

For all Car Lovers:
Auto Expo 7 Jan-11 Jan 2012, Pragati Maidan,New Delhi, India
Watch this window for more.......