CARS: THE THIRD WAVE
Article Abstract:
When Tata Engineering and Locomotive Company (Telco) announced the launch of its Indica car with the size of the Zen of Maruti Udyog Ltd, the space of the Ambassador of Hindustan Motors Ltd and the price of Maruti 800, Maruti Udyog Ltd reacted by reducing the price of its cars. Hyundai Motor has announced that it would not reduce the price as its Santro is a state-of-the-art car. Daewoo, which has launched Matiz costing more than Rs4 lakh, has not offered any price reduction. Ind Auto reduced the price of its Fiat Uno by Rs1 lakh. A recent study has found that the size of the middle class in India is around 110 million, not 250 million units. Of 110 million units, only 1.2 percent will spend money on quality. The price of the cars is the most important factor for the buyer and the maker. A car is bought taking into consideration the features offered, the dealer network, servicing costs, warranty and the safety of the passenger. Sales of used cars have increased and buyers are willing to wait and watch as they are wary of the performance of new vehicles. More sales of second-hand cars are likely to continue for the next 6-12 months. The Indica car has generated a lot of interest but buyers are willing to wait till it is proven as an efficient car. The multi- utility vehicles of Tata Engineering and Locomotive Company had quality problems initially, which were solved later. Tata Engineering and Locomotive Company should sell 60,000 Indica cars to break even. Maruti Udyog Ltd and Tata Engineering and Locomotive Company have huge tax outflows. The tax benefits from depreciation of a new product line, concessions and tax benefits are likely to improve the profit of Tata Engineering and Locomotive Company. Maruti Udyog Ltd has a market share of 82 percent, which is likely to be eroded. Hyundai Motors has already sold 3,500 Santro cars. The first wave belonged to the Padmini and the Ambassador. The second wave saw the arrival of small cars in the Indian market. The third wave in the domestic car market will be to build brand image and offer cars as a lifestyle product. (rk) (kvr)
Publication Name: Financial Express Investment Week
Subject: Business, international
ISSN: 0015-2005
Year: 1999
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PFIZER
Article Abstract:
The net profit of Pfizer India increased by 8.8 percent to Rs137.8 million for the 8 months ended November 1997. Its sales declined by 19.2 percent. Its formulation brands include the multivitamin Becosules, Corex, Dolonex, Terramycin and Protinex. It has launched three new products- Haematinic with Zinc Dumasules, Glucotrol XL and Cardura. It has relaunched cardiac care product, Amlogard. Its parent company, Pfizer Inc of the US plans to increase its stake in Pfizer India from 40 percent to 51 percent. (rk) ------------------------------------------------------------ Financial Performance of Pfizer India (Rs in million) ------------------------------------------------------------ Particulars 8 months ended November 1997 ------------------------------------------------------------ Sales 1,416.00 ------------------------------------------------------------ Gross profit 253.80 ------------------------------------------------------------ Net profit 137.80 ------------------------------------------------------------ Equity 117.20 ------------------------------------------------------------ Earnings per share (Rs) 17.60 ------------------------------------------------------------ Market price of share (Rs) 663.75 ------------------------------------------------------------
Comment:
Relaunches cardiac care product, Amlogard & also, launches 3 new products, Haematinic w/ Zinc Dumasules, Glucotrol XL & Cardura
Publication Name: Financial Express Investment Week
Subject: Business, international
ISSN: 0015-2005
Year: 1998
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