MUL ADOPTS TWO-PRONGED STRATEGY TO UP VOLUMES
Article Abstract:
Maruti Udyog Ltd (MUL) is to reduce its cost of production and market its cars in villages too. It expects to sell only 3.35 lakh cars in 1998-99 against 3.50 lakh vehicles in 1997-98 due to lesser demand. So, to maintain its net profit, Maruti Udyog Ltd is adopting the twin strategy of cheaper production of its cars and their sales in the new markets of rural areas. It perceives big demand for cars in smaller towns and villages. It is evolving financial packages for marketing the Maruti model cars. In the first 6 months of 1998-99, the growth in the car segment was 1.6 percent only. Maruti Udyog Ltd is confident that the recent reduction of prices of its cars would boost the volume of sales. During October-December 1998, sales of cars had fallen by 20-25 percent. (kvr)
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
AUTO RECESSION CONTINUES, TWO-WHEELERS FEEL THE HEAT
Article Abstract:
The recession in India's auto industry continues, with exports registering a decline of 18 percent at 122,468 vehicles during April 1998 - January 1999 compared to exports of 150,127 vehicles during April 1997 - January 1998. The two wheeler industry has been affected by the recession, registering a negative growth of 23 percent during April 1998 - January 1999 compared to a negative growth of 2 percent during April 1997 - January 1998. (khr)
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: HONDA-SIEL, BENZ, DAEWOO UP CAR PRICES BY 8-10% NEW DUTY REGIME MAY JACK UP PRICES OF NEW CARS COSTS OF AUTO PARTS WILL RISE: INDUSTRY
- Abstracts: FIIs LOWER HOLDINGS IN COMPANIES RPG OFFLOADS BAYER INDIA STAKE TO FIIs. FIIs GET MORE GOODIES, CAN PLAY TAKEOVER GAME IN INDIA
- Abstracts: OCL INDIA LIMITED SHREE CEMENT UNVEILS NEW INVESTMENT STRATEGY
- Abstracts: THE UNITED WESTERN BANK LTD CALL RATES BREACH 10.25% MARK. ANZ SCRAPS OLD JOBS FOR NEW ONES
- Abstracts: NEULAND LABORATORIES LIMITED TAMILNADU PETROPRODUCTS LIMITED