CARS: IT'S CRUNCH TIME - LOSE SOME, WIN SOME
Article Abstract:
The auto industry in India reeled under recession in 1998 with companies burdened with high inventories and dwindling sales. The compact cars segment, which constitutes 85 percent of the total passenger car market, saw new entrants. Hyundai Motors India launched its 999 cc engine small car, the Santro, while Daewoo Motors of Korea launched the Matiz, its 796 cc engine small car. Tata Engineering & Locomotive Company launched its 1,400 cc small car, the Indica. Maruti Udyog Ltd holds 83 percent market share of this segment. It reduced the prices of its 800 cc basic model by Rs24,632 and that of the deluxe one by Rs11,127. The petrol version of the Indica is priced around Rs2.59 lakh in Delhi and it competes with the Zen LX of Maruti Udyog Ltd, which is priced at about Rs2.95 lakh. The Santro is priced around Rs3 lakh and the Matiz Rs3.55 lakh. The reduction of prices by Maruti Udyog Limited has hit the second-hand car market with the prices of used cars falling by 15-25 percent. The mid-size car segment saw the launch of the Lancer by Mitsubishi, in collaboration with Hindustan Motors. Fiat plans to enter this segment with a 1,700 cc diesel version of the Siena. The City of Honda, the Escort of Ford, the Opel Astra of General Motors, the Cielo of Daewoo and the Esteem of Maruti Udyog Limited also belong to this segment. Sales-wise, this segment suffered most. The offtake of the Opel Astra and the Escort fell by about 50 percent. In the multi- purpose vehicles segment, the Sumo of Tata Engineering & Locomotive Company competes with Mahindra in the 10-seater passenger carrier market. The super-premium car segment performed poorly with Mercedes-Benz selling very few vehicles each month. The sales of commercial vehicles fell by 25-30 percent. Volvo of Sweden is entering the Indian commercial vehicles market with its trucks which have a carrying capacity of 40 tonnes and more. It also plans to launch buses in India. The 2-wheeler segment, however, managed to buck the trend by posting higher sales. Motorcycles recorded higher sales than scooters. During April- November 1998, the sales of Hero Honda rose by 30 percent and those of TVS Suzuki and Escorts Yamaha also increased significantly. The motorcycles segment is witnessing upgrading of engine capacity from 100 cc to 150 cc. The trend is for 4-stroke engines. In the scooters segment, plastic body vehicles are being launched. TVS has launched the Spectra, its 150 cc, 4-stroke, plastic body scooter. LML has introduced the 60 cc Trendy having a plastic body. (tsm) (kvr)
Publication Name: BusinessWorld
Subject: Business, international
ISSN:
Year: 1999
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CALL-CABS
Article Abstract:
Bangalore is to have radio taxi service from September 1998. The service will be managed by Team Link, a part of the Punwire group of companies. Team Link has offered to the taxi owners deferred payments to have the radio sets which cost Rs9,000 each. One has to ring up a Team Link service number and the control room will trace the taxi nearest to the customer's address. The fare is Rs30 for the first 4 km. (uh)
Comment:
Will manage radio taxi service in Bangalore from 9/98
Publication Name: BusinessWorld
Subject: Business, international
ISSN:
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
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