As per the prevailing conditions in the organised automotive sector, it seems that it is being adversely impacted by the dampening sales. The heat of this major slowdown in sales is also noticed by the leading car manufacturers of India like Maruti Suzuki, Honda and General Motors, amid others. Needless to say, this tough phase has cunningly forced the auto makers to look towards the North Eastern market. At present, this seems to be a pretty viable choice as the North Eastern market promises of ample opportunities to sustain sales and implement expansion plans. In fact, leading manufacturers see these regions as 'rapid growth' zone that can help them to eye an expected growth rate of up to 50 per cent. Lured by high sales, auto makers make endeavour to meet their set targets by exploring new opportunities that prevail in the North Eastern market.
Reports reveal that the key players of the Indian auto market subtly plan to execute aggressive expansion plans in order to tap the resourceful North Eastern regions. Expressing his views on this, the Deputy Director General of Society of Indian Automobile Manufacturers, Sugato Sen was quoted as saying, “The North Eastern market is very fertile. I think, the future of this region is very bright. Opportunities are there for auto makers. The rate of owning a car in India is 18 units per 1,000 people and it is even lower in North East (NE).”
From the aforementioned statements, industry experts are of a view that it is pretty evident that why leading auto makers show resolve to harness the untapped North East region. Following the league, Honda Cars India Ltd, the wholly-owned Indian subsidiary of Japanese car maker Honda, is expecting to adopt aggressive strategies in the coming months in order to expand wings in the eight states of North East region. Recently, Jnaneswar Sen, the Senior Vice President (Marketing and Sales) of Honda Cars India Ltd said, “The North East market is increasingly gaining significance for Honda as this market has a lot of sales potential for hatchbacks and compact sedans. We are hoping more than 50 per cent jump in our sales in the region. Considering the current industry growth, which is negative since last several months, the NE region is still expected to post a double digit growth.”
Sen remarked that the North Eastern market has a small consumer base and hence, more opportunities remain for automobile players. Evidently it is quite apparent on what he was trying to refer to here; expansion plans are almost indispensable to uplift sales and promote the respective brand. To give an indication about the importance of North Eastern region for automobile market, Honda India in the course of next one and half year is all set to establish new facilities in Arunachal Pradesh, Meghalaya, Mizoram and Nagaland.
India's largest passenger car manufacturer Maruti Suzuki is also joining the bandwagon to execute expansion plans for a widespread presence in rural as well as remote parts of North East. The auto maker can sense the huge growth that lies in the North Eastern market. Speaking on this, Mayank Pareek, the Chief Operating Officer (Marketing and Sales) of Maruti Suzuki India, stated, “North East market has always been very important for Maruti Suzuki. We believe that there is a huge opportunity in rural areas of North East, besides the major cities”. He also emphasised on the fact that the contribution from the NE region is currently 4 per cent of the total domestic sales of Maruti Suzuki.
