Car makers looking to adopt new ways for overcoming the stagnant phase

Tuesday 19 November 2013, 11:25 AM by

It is been a quite a while since the Indian car market has been going through repressive spell. The demand for passenger cars has been falling constantly on taking account the sales graph of major car manufacturers. Many companies had pinned hopes on the festive season to drive sales forward but to make matters worse, the season did not bring any huge respite. Trade analysts are saying that this phase of Indian car market is expected to continue in 2014 as high interest rates and tough economic conditions will hamper the growth prospects of the auto industry.

Car makers looking to adopt new ways for overcoming the stagnant phase | CarTrade.com
Car makers looking to adopt new ways for overcoming the stagnant phase

In order to counter the weakening demand for passenger cars, car makers are infusing newer strategies every now and then to increase their earnings. At present, the conditions are so difficult that manufacturers are trying to lure buyers by altering their sales strategies. Generally, car companies are trying newer tactics, among which the most preferred one is introducing new models. So far, this strategy has worked quite well for most of the car companies; however experts are saying that impact of a new model is short term. Other trade practices like offering massive discounts and numerous promotional offers had gathered a good response from buyers towards new cars, but the demand soon fizzed out after the festive season.

Car makers looking to adopt new ways for overcoming the stagnant phase

Considering the success of new models like Ford EcoSport, Hyundai Grand i10 and Maruti Suzuki Ertiga, a few would doubt the fact that their respective companies have gained a lot owing to these models. According to industry experts, the main reason behind the success of these models is the alluring promotional and marketing campaigns carried out by the respective companies before launching their products. They also endorse the view that Maruti Suzuki, Ford and Hyundai have carefully analysed the market conditions prevalent in India and have timed the product launches to perfection.

Talking about Hyundai in particular, it had kept people guessing with its Grand i10 as it was launched after almost a month ever since its unveiling. The company released each and every information regarding the vehicle at the time of unveiling but it launched the vehicle quite late, thereby creating an enormous buzz among the Indian audiences. It must be mentioned that the leading car brand of India, Maruti Suzuki, showcased its seven seater concept in 2010, while it launched Ertiga in 2012. Now that the company showcased its XA Alpha concept at the 2012 Auto Expo, the compact Sports Utility Vehicle (SUV) is expected to arrive in India by 2014. This reflects that the company knows well how to market its products in India and at what time.

Car makers looking to adopt new ways for overcoming the stagnant phase
Car makers looking to adopt new ways for overcoming the stagnant phase

According to experts, the point behind delaying the launch of production model after unveiling a prototype of the same is to carefully ascertain the market conditions, which helps in pricing the product accordingly. After estimating cost of the vehicle, the car maker soon gets to know that what features must be given in the car. Also to mention, this trade practice helps in getting feedback from the audience and critics so as to address the required needs before introducing the vehicle. With these practices, the companies can rake in huge profits, hence reducing the risks to acquire a sizeable proportion of the overall market share.

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