Ambassador: R.I.P

Ambassador was called as the first Indian car. Ambassador was born in 1958 bought by Hindustan Motors. The design and technology resembles with the British car model: Morris Oxford. From 1958 to 1980 ambassadors ruled the Indian market. There were no more than two competitors in the Indian market at that time. They were Premier Padmini and Ambassador. After 1980, the scenario of this market totally changed. In 1983, Maruti Udyog Limited (MUL) launched Maruti 800. MUL had used very good marketing strategies to launch its product in the market. So, here ambassador had started losing its leadership position because of Maruti 800.  But, Ambassador had some strong advantages over Maruti 800. This car, Ambassador, was made dearer to certain segments. This was the only diesel car available in India. Those times there was significant difference in the prices of diesel and petrol. So this made the brand to become popular among big families and more in Taxi’s. Though the car look sturdy and well build, the car lacked quality and refinements with many complaints of rattling sounds and rusting.

Other significant factor which ambassador possessed was its presence in government sector. Over 16% of these car sales came from government. This was the first choice of the bureaucrats. Soon, these higher official who used to buy Ambassadors lost interest in it as new and better models were offered by other automakers.

The fundamental issue was with its product and price. If we look at the product, the Ambassador, it has never changed with times. Many cosmetic changes were made in its three upgrades named Mark II, Mark III, and Mark IV but there were no value additions as such in these three upgrades. The look and the build quality remained the same.

The apathy of Hindustan Motors to offer product changes in tune with the time made the brand stale. The major drawback which made ambassador lose its position was its price factor. It was very expensive to maintain. Hindustan Motors never bothered to optimize the price of the brand. Even now Ambassador cost more than Rs.4, 80,000/- .At that price one can afford more luxurious sedan.

In 2000, Hindustan motors plant had full depreciation. But then also company did not reduced cost of its car. If today they would reduce their price with a good marketing strategy I think so they can survive for more years.

But this was not the end, in 2000 nail in the coffin came with the launch of TATA Indica. After all this there was only one market in which Ambassador can survive that was in the Taxi’s, Indica took this also that also with the diesel version.

There must be a continuous investment in branding and product development. Ambassador must also learn from Maruti 800. Maruti is still running because it had made various changes along with the changing consumer values. Also they have optimized their cost such that each and every class of people can afford it.

According to me, the only option to keep Ambassador alive is to keep its price at least below the price of Indica.                                             

_____________Nikhil Ingale

Nissan - Asymmetric Cube Concept

Add caption Automakers have now started to integrate electric energy into their car concepts to a greater extent, in a positive response to the rising concern on global warming. Japanese automakers have started taking keen interest in the same. Most of them, including Toyota, Honda and Nissan have vehicles that capitalize on this noteworthy objective. Nissan’s dedication to cars, powered by clean electric energy, is best reflected in its new car concept, ‘THE CUBE’. The cube can be seen as a perfect example of a temporary interruption to those tension-releasing “slow cars” from Japan. This concept car has an electric motor and lithium-ion batteries placed under the floor and seats. The most outstanding feature of the car is the absence of sharp edges due to the designer’s custom of a wavy design. The Cube is primarily known for its aesthetic appeal, wherein the rear window is cut asymmetrically to expand the rear view. The front side of the car is same as that of the other cars of Nissan but the rearside of the car is combined with the rear bumper. This has comprehensively helped Nissan to reduce its cost. Nowadays a consumer expects more comfort along with all the latest technologies and electronic features embedded in a car. Thus, referring to the above-mentioned reason, the manufacturers of Cube have installed standard equipments like Bluetooth, browser, access and keyless start, and rear parking camera. The rear bench has three positions for adjusting the backrest recline. This backrest is available in four attractive colors such as military strategist, White pearl, turquoise sea and bitter chocolate. There is a wonderful concept in the design of Cube Interiors. There is an indication that it will help depict the presence of Nissan throughout the world. This idea emerged by observing a droplet of water, by which the ‘ripple design’ came into existence. The interpretation is that, ‘The cube’ is a droplet of water sent from Japan that will spread all over the world. We can say that the model is very interesting and it realistically represents the spirit of the Japanese market. The price of this car in India is Rs. 7, 06,500/- and in U.S. it is $15,700, which is vey less as compared to the features and the comfort that Cube offers. The customers can get a pleasing and comfort ambiance inside the car which each and every customer expects. Nowadays almost each and every automaker is trying to design their cars in eco-friendly manner or they comply with the latest emission norms. Nissan Cube uses electric energy due to which there are very little or no chances of pollution. The other most outstanding advantage the Cube offers is its small size which I think is very important if we want to launch the car in the over-populated countries. Analyzing this innovative cube from both ergonomic and aesthetic points of view we conclude that we can design and manufacture this Cube on a large scale in the overpopulated and crowded countries like India, Japan, etc.

South Korean automakers grab the opportunity

The automobile crises that occurred during 2008-2010 severely affected the automakers in Europe and Asia and primarily left the American automobile manufacturers devastated with a very little or no demand for their products along with the rising fuel prices.

The US automakers were mostly affected in the recession over other auto manufacturers. As a result, the South Korean automakers who were not performing well prior to recession got an opportunity to overtake US markets when the recessionary pressures were mounting over the US. As a matter of fact, the sales of “Hyundai”, one of the leading car manufacturers of South Korea, drastically went up during the same period.

Thus, Hyundai, paving way for itself, successfully overtook “Honda” in 2008 and climbed up the ladder - from the 8th to 5th largest automobile manufacturer - in less than a decade. It also surpassed “Ford”, the world’s fourth largest automaker, post Honda success. Interestingly, Hyundai Kia (car) in 2008 was leading the car market showcasing a sharp increase in the sales while other automakers witnessed acute decline in their sales. Therefore, the sheer success of South Korean automakers gave a sense of discouragement to Honda, Ford and GM and they filed for bankruptcy as well.

So, the South Korean automakers turned this crisis into an opportunity by providing high quality and well designed vehicles to the customers. Besides, three fuel efficient cars viz, Kia Picanto, Kia Ceed and Hyundai i30 attracted a lot of attention from the customers around the world. Also, on the other hand, the fuel prices were overshooting and the environmental issues too were bothering the entire world.

Therefore, the luxury and SUV manufacturers from the US, Germany and Japan were found to be less in demand. Besides, the South Korean manufacturers also started working on improving their brand awareness followed by the introduction of the luxury vehicles such as Hyundai Genesis which received positive response and accolades.

Advantageously, in 2010, when the condition of the US markets stabilized, the US further grabbed a lead in the world of automobiles which was bound to rise in demand. So, we can say that this article stands as a learning lesson to the management students. They must find the alternate ways to reap the benefits associated with the first mover advantage. These kinds of learning lessons always help the management students who always look out for the opportunities to capitalize upon in order to make merry when the sun shines.

New budget affected the structure of automobile sector

The highest revenue generator for the Indian government is the automobile sector. The government earns Rs.25 billion annually in revenue from vehicle sales.  But, the new budget had adverse effects on the automobile sector. There is a bad news for all those who are planning to buy a new bike or a new car. Customers will have to pay more due to an increase in excise duties and registration charges. The excise duty on four-wheelers has increased from 10% to 60% and on two-wheelers from 30% to 40%.The road development and maintenance tax has also increased; ultimately increasing the cash outflow of the customers. The road maintenance tax, for four-wheelers, will be charged at 5% rate of the total cost of the vehicle, which initially was 2%. Likewise, two-wheelers will be charged Rs 6,000 annually.  The middle income groups are the ones who will be adversely affected by this steep increase in taxes, as they are the largest buyers of two-wheelers in the country. The automobile dealers have estimated the price of two-wheelers to increase by Rs. 15,000 to Rs. 17,000 which is a substantial amount while considering the middle-income group people. But the story doesn’t end there; the government has also increased the annual registration charges.   Now, all the four-wheelers fitted with 2000 cc engines and below will have to pay Rs. 16,500, up from Rs. 15,000. The vehicles which are fitted with 2001cc to 2900cc will have to pay Rs. 29,000, up from Rs. 25,000 and those with 2900cc will have to pay Rs. 44,000, up from Rs. 40,000. The two-wheelers fitted with 125cc engines and below will have to pay registration charge of Rs. 2,000, up from Rs. 1880; those with 126 cc to 250 cc engines will have to pay Rs. 3,500, up from Rs. 2,500 and those with 250 cc engines and above will have to pay Rs. 5,000.  As the excise duty has increased, the price of two-wheelers and four-wheelers has is bound toalso increased, . tThus making it difficult for the middle class people to buy a two-wheeler or even desire to shift to a four-wheeler. The iIndustry experts think that this is going to adversely affect the sale of both, two-wheelers and four-wheelers in the Indian market. This decline in sales is ultimately going to hit the government tax revenue. Today with the entry of the big automotive giants into the Indian automobile market, this budget comes as more of a disappointment of what was expected to change industry dynamics and set the wheels of the Indian economy moving towards prosperity again.

Luxury car segment in India

By definition, a luxury car means an expensive vehicle which is designed to provide higher comfort levels to the driver and the passengers. Today, the Indian car market is beginning to grow out of its stages of infancy. With the foray of an ever increasing number of international car makers into the Indian market, the Indian market is emerging as a lifetime opportunity for major Automotive companies worldwide. Also with the growing number of HNI (High Net Individual) in India, more and more luzuxry car makers are setting up their shops here. The luxury car market in India is growing at a rate of 25% year on year (YOY).  This is the major reason why the luxury car makers like Mercedes Benz, Audi, BMW, Bentley, and Rolls Royce etc. have started selling cars in India.

With a price tag of more than Rs. 20 Million, luxury cars are accessible to a very few and select customers.  Well this is what the customers of luxury cars actually want and demand i.e. “Exclusivity”. The Indian economy is growing at a phenomenal growth rate. This means that the average consumer has more disposable income to spend on things like the luxury cars.

 Car manufacturers like BMW which sell the BMW 523i and 730ld models are receiving a lot of acceptance with the Indian consumers.  Even at prices which stand at ` 4,414,100 and ` 9,233,820, there is no scarcity of buyers. These German luxury cars are at the very epitome of quality and for the Indian millionaires, provide the pampering luxury that they crave for.  Besides BMW, other major German manufacturers are also doing the same in India. Mercedes Benz was one of the initial car makers that set shop in India, identifying the market potential. Today as more and more car makers perceive India as a great opportunity, the consumers are going to get an ever increasing array of options.

This all started in the 1990’s when we were introduced to one of the biggest economic reforms in the history of modern India. Today when the rest of the world is under recession, we here in India are witnessing a new luxury car launched almost every quarter. After almost 3 decades since the launch of the humble Maruti 800, we have now entered an era where India is said to be on the road to become the largest luxury car market in the world. The 139,835 millionaires in India in 2009 growing at a 19.7% rate YOY (Year on Year) are going to fuel the growth of the Luxury car segment for the years to come. May it be Mercedes Benz or the famous BMW’s, India is providing all of them with demand.

Chocolate-themed Smart Car

Car manufacturer Mercedes Benz on Wednesday unveiled a chocolate-themed version of its Smart car in Tokyo, just a couple of weeks before St. Valentine's Day

It was uncovered at the International Fashion Fair in Tokyo.
The car looks as if it is fully wrapped up by hundreds of chocolate bars.
The body and interior of the two-seater compact car were specially designed by Japanese accessory maker Q-pot for the fashion event.

Smart Car Vending Machine in Japan

Smart Marketing in Japan
The clever "vending machine" pictured above is located in Japan. You can't really buy a smart car from it, but you can get brochures and info about the various smart models. Yeah, it is anti-climactic.
Smart Car: Good and Bad
The smart fortwo is certainly a mixed bag. While the diesel version gets in the 60+ miles per gallon range and can be run on biodiesel, the gasoline version is only rated at a combined 36 miles per gallons by the EPA. But that doesn't take away from the smart's impact in making very small urban cars more mainstream, and making other compact cars look bigger in comparison. 

Upcoming Smart-like Cars
The teacher might soon be surpassed by the students: Toyota's iQ urban microcar looks like it might be more practical with its 3+1 seating configuration, and it will probably have better performance and fuel economy than the smart car in the gasoline model. There's also the all-electric Mitsubishi's i MiEV which shares many design elements (though it is bigger).

Alliance for US India Business (AUSIB) member in Automobile Sector

 REFER:-http://www.ausib.org/

The Alliance for U.S. India Business (AUSIB) is a leading non-profit trade association that offers a pathway to help your business succeed in the United States and India. Founded in 2004, AUSIB has been instrumental in building the bridges of business cooperation between the two countries. 

AUSIB seeks to augment investment flows and trade between the U.S. and India and open new channels of communication between business and government leaders. AUSIB has played a pivotal role in expanding bilateral trade in key sectors such as information technology, pharmaceuticals & life sciences, media & entertainment, and renewable energy. 

                     It has been more than a year that i am writing blogs and doing market research in the automobile sector. I feel it as an great opportunity for sharing and acquiring knowledge from AUSIB.I have done market research on buses, tractors, hatchback cars, tyres, Automobile components industries  and much more…Only Market  Research  on buses and tractors are uploaded on the website. If you need any further information on the researches done you are free to contact me on my email-id nikhil_production@yahoo.com.

Volkswagen Vento: IT’S IN INDIA !!!!!

It’s time for another new car to be seen on the Indian roads, and this time it’s Volkswagen Vento. Europe’s largest car maker Volkswagen launched its new sedan The Vento in India in the month of June 2010. The car was first launched in New Delhi.

 In the last 10 years the Indian automotive market has grown tremendously and is still continuing to do so. The race is on for every auto maker to capture the maximum market share and increase their sales volumes. Till before the launch, Volkswagen Group India comprised of Audi, Skoda & Volkswagen and all the three brands are doing fantastic in the strategic Indian market.

With the launch of Vento, Volkswagen wants to build a strong foundation in the Indian market keeping long term goals in mind and also to achieve 8-10% market share for the Volkswagen Group India. In the first six months 16900 units will be delivered to India. In the words of Volkswagens Board Member and Director Mr. Neeraj Garg “The Volkswagen Vento is a completely new product offering from Volkswagen in India. It will be another important brand pillar for us to stimulate the brand's growth in the country." The Vento has been launched with both a Petrol and Diesel variant with a 1.6litre engine. The interiors of the car are fabulous with a touch of luxury. With all the necessary safety features installed in the car, Volkswagen has again shown that nothing can beat the space, style, comfort and safety of the German automobile.

         The Indian car market is unique, distinctive and a very demanding market. Car makers always have to be on their toes to satisfy Indian customers. Being very choosy by nature Indian consumers never accept anything that doesn’t suite them and their needs. So keep a watch car makers, India is not a place to sleep.

Materials used in Formula1 Cars.........

The F1 cars have the latest technology innovations fitted into them. Some of them include and very modern steering wheel which allows the driver to control the car. But in this blog we are going to discuss-Why actually these F1 cars move with extreme high velocity? Is it…engine? Materials used? or something else?....I personally feel both engine and materials must be the contributor for this…Let us discuss regarding materials used inF1 cars.

          If we explore the engine the crankshaft and camshaft are made up of steel and cast iron. The piston cylinder heads and cylinder blocks are made up of carbon or aramid reinforcing materials. This will make it quite light in weight. The chassis of F1 cars are made up of many materials. The frame is made up of aluminum. The side panels are made of a composite of aluminum honeycomb and carbon fiber (Aluminum honeycomb is actually aluminum with holes in it).Aluminum is very light weight materials and holes in it will make it lighter.

          Actually carbon fiber is twice as light and strong as aluminum. The front nose of the cars is made up of Nomex honeycomb. It is twice as light as aluminum but not as strong. (Nowadays this material is also used in cars and mountain bikes to reduce weight).The brake part of the F1 cars must also be given attention, because it is the most important part to control the cars on turnings. Typically F1 cars have to use brakes 12times per lap or 900 times a race. On an average they have to slow down from 280km/hr to make a turn at 160km/hr which puts a lot of stress on braking system. They may get wear off soon if we use the brakes of commercial vehicles. So, just we have to do is change the materials of the brakes i.e; use carbon brake pads. The new carbon pads wear less and work better at high temperature of 350-500degree Celsius.

          

.........OPULENCE ON WHEELS FOR INDIA.............

             The escalation of the luxury car market segment in India is discernible from the past decade. There has been a transition in the Indian consumers due to the emergence of the middle and higher middle classes with increased purchasing power and aspirations to own luxury brands.

These consumers are very well aware of the quality, technology, the engineering involved and are clear about their choices which would gratify their desires. The Indian consumers are now conscious about the fact that the brands they choose actually represent them and their lifestyles. The desire to be distinct is what is lashing the luxury car segment in India. As the major growth lies in the below Rs 10 lakh volume car market segment which clearly illustrates the reason for the transition in consumer behavior in India as to be distinct among the masses. The government’s support in developing the infrastructure and the consumers growing desire has triggered the scope for luxury cars.

Figure 1BMW Z-4

Despite the recession that struck the entire world adversely, the automotive industry in India did not falter to the extent to which automotive industries across the world did. In fact the Indian automotive industry has done better than almost all other countries. The sales figures clearly depict the hold and the subsequent growth in the industry. The manufacturers certainly are aware about this fact and they justify their moves by launching exciting new cars in the luxury segment. There have been numerous launches like the Mercedes Benz India which launched its massive SUV, GL. Last year it launched the new E-class and this year it brought in new variants of the E-class as well as the S-class. Audi India launched its Q5 and also introduced the Q7 with a bigger engine. BMW India did not remain silent either, as it launched its Z4- the sports version and also a newer version of the renowned 5series. These exciting high segment launches indicate the fact that these big players in the luxury segment totally understand the consumer transition that took place. Certainly, brand consciousness and the desire for distinction among the consumers have triggered growth in the luxury car segment in the Indian automotive industry.

JUVENILE NANOS CATCHING FIRE

Tata Nano was the much awaited car after its grand launch in India as well as its promotion in Geneva. Who on earth might have even sensed the fate of few of the Juvenile Nanos? Two brand new Tata Nano cars were reported to catch fire last month, and a few in the last year.

According to sources both the cars caught fire in a similar fashion that is, both lighted up from the rear portion where the engine is located. There was no harm caused to the drivers but both the cars were completely blistered. Also last year a few Nanos were reported to catch fire and the company attributed the blame to the faulty ignition switches. The problem arose due to faulty switch in the indicator stalk that controls the headlight and the windscreen wipers, as reported in the press (Source: The Hindu Business Line). Though the company announced that it had changed the vendor who supplied those parts, no action was taken to recall the cars and to investigate further into the matter. Such instances are regretful for a company which has bagged huge stakes in foreign auto making companies like the Range rover and the Jaguar. Moreover Tata Nano was the show-stopper in the Delhi auto show 2008. It caused a tremendous level of excitement with its launch and so did they sell above 50000 units of the car. However customers/consumers in India would obviously want to be assured of their car’s safety, reliability and stability or else they would refrain from the purchase.

Apart from the distribution of Nanos in the domestic market, Tata also has plans to go global with the world’s most inexpensive car by selling gasoline-engine Nanos in Europe by next year and in the US within the next 3 years. Considering its future plans it is advisable that Tata Motors take a deep look into this matter in order to create and maintain its goodwill in the domestic and foreign markets respectively

Grab the opportunity - Just as South Korean Automakers

The automobile crises (2008-2010) affected European and Asian automakers but it was primarily felt in the American automobile industries. The U.S parts were mostly affected with recession than other auto manufacturers. The South Korean automakers which were not doing well even before recession got an opportunity to overtake U.S markets when they were affected with recession. The sales of “Hyundai”, one of leading manufacturer of South Korea were rising up. Hyundai successfully managed to overtake “Honda” in 2008 as world’s 5th largest automaker climbing 8th ranking in less than a decade. Even it has surpassed “Ford” as world’s fourth automaker. Hyundai Kia (car) at that time was in a lead and has a sharp increase in sales while other automakers saw sharp decrease in their sales. Not even Honda and Ford but “GM” was filing for bankruptcy.

            South Korean Automakers turned this crisis into an opportunity. They provided more high quality and well designed vehicles. They offered customers who have lost their jobs to return a new-car purchase for a refund. Three fuel efficient cars viz; Kia Picanto, Kia ceed and Hyundai i30 attracted global customers at time of severe economic recession, rapidly rising oil prices and increasing environmental causes. Hence, the luxury and SUV manufacturers from U.S, Germany and Japan were less in demand due to the increasing oil prices. They also started improving brand awareness and introduced luxury vehicles such as Hyundai Genesis which received positive response and awards in press.

            When the condition of U.S came to stable again, U.S again took the lead in the world of automobiles. This was of course going to happen. Here management students must do the same thing; they must find the alternate ways in which they can reap the benefits associated with first mover advantage. The learning lesson which comes out from this article for all the management students is always look out for opportunities as when it arises and ensure to cash in as when they come and make merry when the sun shines.
                                                                                                                      ----------- Nikhil Ingale

The Mother of inventions: Safety Device-Airbags

Hi friends,

             Todays hot topic of discussion is about the airbags...a life saving device...

Airbag is a large fabric bag used as a safety device in almost all vehicles. These airbags inflate and deploy during crashes and help save human lives.

Design of airbags:

From the above figure; we can see that airbags has three main components,

·         1.Crash sensors

·         2.Control unit

·         3.Inflator

Due to frontal crash force is generated and so the crash sensors are activated. They measure deceleration. Actually there is a wrong perception that the airbags are activated due to sudden braking which is incorrect. They are activated due to deceleration generated due to severest braking. When this crash sensors are activated signal is sent to control unit which further delivers signal to inflator to deploy the airbags.

Working:-

When there is a frontal crash a signal is sent to the inflator. An igniter is present near the inflator which starts the chemical reaction. Due to this chemical reaction gas is filled inside the airbag, making the airbag to deploy from the cover. A pallet of Sodium Azide (NaN₃) is ignited due to which a rapid chemical reaction occurs and nitrogen gas is filled inside the bag.

The invention of Airbags has saved many human lives. Researchers have revealed that when Air bags were made mandatory in U.S.A. over 15,000 lives were saved. The drivers don’t have to do anything during collisions the airbags inflate themselves. During one crash, the entire inflation and deployment process occurs which is faster than the blink of an eye. In case of severe crashes Airbags deploy within 0.015 seconds and 0.025 seconds for low speed crashes. This was the best technological invention - fully automatic. Usually in the research it is seen that passengers in cars fitted with airbags have 30 % less chances of dying that with the cars not fitted with airbags. Once the airbag is used it has to be replaced which costs approximately Rs. 45,000 in India. I think so, spending 45,000 is worth then compromising with your life.