Big B's Big Plans...

It seems like BMW is getting really aggressive in India. The recent actions are very evident. BMW announced the X1 the cheapest SUV from BMW for India during the auto expo at Delhi. And now the announcement of 320d CE (Corporate Edition) for individuals at around Rs 24 lakhs has come. Earlier this downgraded version was available only for corporates and institutions who buy a minimum of 3 units to-gather. The company is also setting up its used car business with its own financial services.

This proves that BMW no more wants to be a niche player in the premium segment. The company is planning to leverage its Ultimate Driving Machine to a bigger market. There is a huge potential in the premium car segment in India that is still untapped. This segment of consumers is actually confused. They expected a real premium brand to satisfy their Self Esteem and were not ready to shell out the real price for it. It seems like BMW understood this and is acting fast. Before the traditional rivals Mercedes and Audi could possibly enter this segment BMW wants to grab a maximum market share.

Now the Accords, Passats and Superbs have to worry. Can they compete against an Ultimate Driving Machine. But for a consumer like me, who dreams of owning a BMW one day, it seems like the day is not too far.

When Mercedes India proudly said they are back at No.1 after Jan 2010 sales, the BMW India CEO replied, 'There are still 11 months to go'.

What a statement !!!

the conFUSION is now gone...

Ford India has taken a wise decision to axe Fusion. Though the model hardly sold in the last few months, the decision had come at the right time before Figo hitting the showrooms in the first week of march. This is a wise decision because, the cars look somewhat similar from certain angles.

The biggest mistake in Fusion was its pricing. At 6.5 lakhs to 8 lakhs, there were more exciting models available in the market. And its station wagon like feel, confused the buyers and hardly drove in customers. Also Ford did not push the brand much as it did for Fiesta or Ikon. There was nothing to remember like 'The Josh Machine' or 'Go Fida'.

With the same platform and the same wheelbase as in Fiesta, the Figo is all set to go at an expected price range of 3.5 to 5 lakhs. This should be ideal for a car like this. It seems like now Ford is clear in what it is offering to the market and what it is expecting from the market. So, the conFUSION is finally gone.

Is it time for FIAT?

There are mixed news about Fiat India, ripping Palio. Though Palio sells a meagre 50 units every month in the 2000 units that Fiat sells via its Tata-Fiat dealerships, its the entry level hatchback that the company offers against the Indica and Swift. Logically, its been some time that the model is around and it needs a major upgrade. Fiat, as of now have not mentioned anything about Palio meeting the BS IV norms which means the model may be discontinued.

Now, this can be good from profitability point of view. But a company which has Ferrari and Mesarati in its portfolio is not ready to play a solo innings. Punto cannot survive against Indica Vista and Linea cannot fight Indigo Manza when presented to a typical customer. The Tatas are strong in their utility ratio. Though its the same engine in all these cars, Tatas score on the value for money column. So presenting them next to each other is not a good idea. Now that the Punto and Linea have gained a market for themselves to sustain, its time for Fiat to move on.

Fiat on the other side have released pictures of an all new Palio. As I've mentioned in my earlier post, though its not very clear on the next move with Palio, for the company to taste its share of the small car boom in India, its time to go alone.

Will ARIA be another winner?

Tata announced its entry into the MPV segment with Indicruz in early 2008. And now after the actual revelation of the vehicle as Aria powered by the popular 2.2 DICOR engine, the MPV market is getting geared up. The other players in this crossover segment are Innova, with a leading market share and Xylo following it.

But for the first time, it was surprising to see Tata going ahead of competitiors with Aria. The vehicle is priced at around Rs 12 lakhs to Rs 14 lakhs. Though it is fully loaded with features like 4 wheel drive, GPS, Parking sensors, dual ACs, 6 Airbags, ABS, head mounted LCDs, etc., which justifies this cost, its quite interesting to see the way Tata wants to position this vehicle. It seems like Tata wants to position this for a premium segment in the SUV target market.

But, there is a check. At this price point, customers would expect the car to be of a better quality than Innova. And customers perceive Tata cars are always not comparable with Japanese or European cars. This perception of the brand may demean the image Aria wanted to enjoy. The way Tata is going to address this gap will decide the success rate of Aria.

This will also test the strength of brand Tata and its marketing abities in this new segment. The live example for this from Tata's stable is the Safari. Though Safari was positioned at a premium segment through its communications, the product quality never met the expectations of the consumers in its segment. Though not a  failure neither was it a success. Hope Tata took some lessons from it and play the game differently.

A true CLEAN Performance - Hybrid from Porsche

Audi @ this Olympics

Automakers Beware!!!

Case 1:
Last week a friend of mine booked a Thunderbird. The choice was made by his Fiancée. Sweet isn't it.

Lesson 1:
Its no more the target segment that matters. Need to attract the influencer too. In reality as found by Volvo during its Your Concept Car (Refer here for details), an influencer, especially women, make a huge impact, even in the purchase of vehicles designed for a niche target of men Eg: Thunderbird. So automakers, expand your target segment.

Case 2:
Another friend of mine decided to gift his father an SUV. The discussion narrowed down on Toyota Fortuner or Ford Endeavour. A previous poor experience from a Ford dealer on his Ikon resulted in going for the Toyota. No second thought.

Lesson 2:
Just opening up dealerships or setting up service centers doesn't work anymore. The people P has a critical place in the business. So train people at dealerships and service centers to handle people better than handling cars. One lost opportunity to serve is a customer lost forever.

So automakers beware!!!