Showing posts with label Hyundai. Show all posts
Showing posts with label Hyundai. Show all posts

Wednesday, April 24, 2013

“We’ll try to close the gaps in our after-sales process”

Neeraj Garg, Member of Board & Director, Volkswagen Passenger cars, talks about the automaker’s plan of action in the all important Indian market

B&E: As compared to what Volkswagen has achieved in markets like China and Europe, it is still early days for the automaker in the Indian market. What it is that VW wants to achieve in India?
Neeraj Garg (NG): As a company, we are looking at becoming a key driver of the growth in India’s automobile market. After we started launching products in the high-volume segments three years back, we have been able to gain a strong position in the Indian market. As compared to a sales volume of 3,000 units in 2009, we sold 33,000 in 2010 and 78,000 in 2011. We are today the sixth-largest passenger car manufacturer in the country. Is this where we want to stop? Certainly not!

B&E: Globally, VW has a plan to become the market leader by 2018. While it is expected that the company will be able to achieve that milestone before the set year, what is your view on the market share that you would like to achieve in India by, say 2018?
NG: What I’d like to say is that if VW wants to keep growing, we will have to keep on expanding our sales volumes here. We are among the top three globally. And because India is a strategically critical market for us, we have to build a very strong footing for ourselves in this domestic market. Three years back, the awareness level of our brand was single digits. Hardly anyone knew what VW stood for. Today, that awareness level has risen by 800-900%, which is a significant jump. Although in this respect we are still way behind companies like Maruti, Hyundai and Tata – whose awareness levels range from 90%-99% – I think we have been able to communicate well with our target segment. We have the potential to climb up the ladder. However, this process will take time. Today, we are catering to only 40% of the total market with our seven-product line-up. Hoping that the industry will sell more cars than the 2.2 million cars sold last year, all I can say is that we are right on track.

B&E: You have outpaced the industry in terms of growth over the past few years. What is the action plan for this year?
NG: This is the time to check whether we are ready for the long-term growth of the domestic market or not. We plan to fill the gaps in our system and consolidate what we have achieved so far in India. For instance, since our sales network has grown exponentially, there are gaps in the after-sales process. We will also be addressing issues like manpower training et al.

B&E: And what about the novelty factor, since your competitors have launched many new models over the past few months?
NG: All our products are new in any case. Vento is one year-old, Jetta is just six months-old and Passat is just nine months-old. India is very different from the developed markets where manufacturers have to snatch away market shares of other manufacturers to grow. India has a lot of headroom for all manufacturers to grow and we will be able to scale up volumes by opening more dealerships and infusing more efficiency into our system.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
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Saturday, September 01, 2012

RIDING ON INTO THE DUST STORM

R. C. Bhargava, Chairman of Maruti Suzuki talks to B&E’s Pawan Chabra about competitve threats from foreign players launching better technology cars and the high royalty payment issue.The secret to profits has, and always will remain competitive pricing and satisfied employees, says a Least Worried Bhargava.

When R. C. Bhargava (the topper of the Civil Services Examinations of 1956) wanted to join Maruti Udyog Limited in 1981 as the Director (Marketing), people advised him against leaving BHEL (Bharat Heavy Electrical Ltd.), where he was serving as the Director of commercial operations for about three years. Maruti was then perceived to be a political project with a dull present and a lifeless future. He chose to try out Maruti for three years. What followed changed his life. He gave up IAS and chose to live the Maruti dream. He’s seen it all, from the launch of India’s first People’s car (the Maruti 800), to the entry of foreign competitors in India. Undoubtedly, he has an emotional connect with Maruti Suzuki that dates back to about three decades. Today, he’s the Chairman at Maruti, and the carmaker is under great threat of losing dominance in India. And of course, he hates to lose!

 B&E: Amidst JVs in the Indian automobile industry that have gone sour, the JV between Maruti and Suzuki has proven to be different and fruitful. What as per you are the factors that are responsible for the success of your JV?
R. C. Bhargava (RCB): For any JV to be successful, both the parties should look at bringing their respective expertise on the table. It is extremely important that both the parties work for the benefit of the JV rather than looking at getting the other party out of the picture. It is like a marriage, wherein you will have to trust your partner if you are looking at a fruitful and long relationship. It’s the trust that has made the JV between Maruti & Suzuki such a long and beneficial relationship.

 B&E: The company has grown hand-in-hand with the Indian automotive industry. And for ever, you’ve focussed on differentiating your offerings on the basis of prices. Your comments...
RCB: When we entered the Indian automotive market, there was practically no competition. In a way, there were products like the Padmini and the Ambassador that were selling in the Indian market. But they had an outdated technology and we entered with the latest technology that set a new standard. Maruti Suzuki clearly took the market by storm and being a market leader with over 50% market share there is obviously a price advantage that the company enjoys. The formula to deal with competition in the Indian market is very simple – if you can’t match the price levels of the market leader, it will be very difficult to succeed in the Indian market.

B&E: With so many new launches in the small car segment, Maruti is presently under great threat. There are also doubts whether Maruti can defend its market share. What’s your next move?
RCB: It’s not exactly true that we are under any threat. The new entries will surely make the competition more intense in the small car segment, but we are confident of our strategies. The scenario was similar even before during the 1990s when Hyundai and Daewoo entered India. We were able to defend our market share then too and we believe we will be able do it even this time. The strategy to do so will be as simple as introduction of new models and aggressive pricing.


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