Yes, with the four-wheeler penetration being a pi
tiable 0.7% in India, many have voiced their confidence over the fact that such an offering would sell like hotcakes just as Vikram Gaur of Car India opined, “India being price-sensitive, the ultra small car segment will work, provided these cars are value for money.” Sure enough, India is a price sensitive market, but do the small cars fulfil any other promise apart from just being ‘affordable’?! Also look at the plummeting Maruti-800 sales, whose basic variant priced at $4878 is the cheapest in the country. Of late, the pedigree has slipped, giving way to other hatchback competitors priced higher. According to SIAM, sales in the A-segment have been on a constant downturn during the recent past, falling annually by 6% to 11,780 units in 2006-07, only proving why entry into a ‘lower than A segment’ looks a clear recipe for failure!
For Complete IIPM Article, Click on IIPM Article
tiable 0.7% in India, many have voiced their confidence over the fact that such an offering would sell like hotcakes just as Vikram Gaur of Car India opined, “India being price-sensitive, the ultra small car segment will work, provided these cars are value for money.” Sure enough, India is a price sensitive market, but do the small cars fulfil any other promise apart from just being ‘affordable’?! Also look at the plummeting Maruti-800 sales, whose basic variant priced at $4878 is the cheapest in the country. Of late, the pedigree has slipped, giving way to other hatchback competitors priced higher. According to SIAM, sales in the A-segment have been on a constant downturn during the recent past, falling annually by 6% to 11,780 units in 2006-07, only proving why entry into a ‘lower than A segment’ looks a clear recipe for failure!For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2007
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
No comments:
Post a Comment