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At an intersection
India’s hatchback segment accounts for 70% of the country’s auto
market and is about to enter the most intense phase of competition yet.
Aside from the three incumbents, six global majors have launched new
small cars. To understand how things are likely to play out, India Reality
Research, in its inaugural auto survey across 20 cities, spoke to 70 car
dealerships and 60 buyers. While Maruti is the reigning champ, it will face
serious challenges across market segments.
Rising competition worries Maruti car dealers
Amid higher fuel prices, rising interest rates and labour problems, the key
concern among dealers of market leader Maruti is increasing competition.
Maruti is gearing up for competition at the entry level, where it has been the
unchallenged leader. Its top-selling Alto is up against Hyundai’s Eon. Maruti’s
vast distribution network is a key strength. However, new entrants are
boosting their networks and product offerings.
Diesel cars all the rage
Our auto survey reveals that diesel cars outsell petrol cars by a ratio of 3-4:1
for models where both variants are available. Dealers indicate that diesel-car
sales have increased in the past three months following petrol-price hikes.
Diesel models dominate the top-end of the small-car market. The best sellers
at the premium-end of the hatchback segment are all diesel cars. A strong
diesel offering is crucial for success in the hatchback segment.
New entrants come up with serious offerings
Among the new entrants, Ford Motor (Ford Figo) and Chevrolet (Beat) are
seeing sales rise on competitive pricing for their diesel hatchbacks. Honda’s
Brio is set to compete against Maruti and Hyundai’s top-selling petrol models.
Honda’s premium image in India could help with the launch of its new
hatchback. Despite offering economical, fuel-efficient cars and a good dealer
network, Tata Motors is losing share because of a weak brand image. Hyundai’s
Eon will present a serious challenge to Maruti at the entry level.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
At an intersection
India’s hatchback segment accounts for 70% of the country’s auto
market and is about to enter the most intense phase of competition yet.
Aside from the three incumbents, six global majors have launched new
small cars. To understand how things are likely to play out, India Reality
Research, in its inaugural auto survey across 20 cities, spoke to 70 car
dealerships and 60 buyers. While Maruti is the reigning champ, it will face
serious challenges across market segments.
Rising competition worries Maruti car dealers
Amid higher fuel prices, rising interest rates and labour problems, the key
concern among dealers of market leader Maruti is increasing competition.
Maruti is gearing up for competition at the entry level, where it has been the
unchallenged leader. Its top-selling Alto is up against Hyundai’s Eon. Maruti’s
vast distribution network is a key strength. However, new entrants are
boosting their networks and product offerings.
Diesel cars all the rage
Our auto survey reveals that diesel cars outsell petrol cars by a ratio of 3-4:1
for models where both variants are available. Dealers indicate that diesel-car
sales have increased in the past three months following petrol-price hikes.
Diesel models dominate the top-end of the small-car market. The best sellers
at the premium-end of the hatchback segment are all diesel cars. A strong
diesel offering is crucial for success in the hatchback segment.
New entrants come up with serious offerings
Among the new entrants, Ford Motor (Ford Figo) and Chevrolet (Beat) are
seeing sales rise on competitive pricing for their diesel hatchbacks. Honda’s
Brio is set to compete against Maruti and Hyundai’s top-selling petrol models.
Honda’s premium image in India could help with the launch of its new
hatchback. Despite offering economical, fuel-efficient cars and a good dealer
network, Tata Motors is losing share because of a weak brand image. Hyundai’s
Eon will present a serious challenge to Maruti at the entry level.
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