Olympus Dhruv DPKMOD

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    By - Abhay Munjal

    Jitendra Sangle

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    Indian Automobile Industry has shown marginalgrowth in FY 201213 compare to FY 201112.

    Production and Domestic sales have gone up.

    However export is has witnessed negative growth dueto negative global environment and frequentfluctuations.

    Car sales in Indian industry are down by more than 6%

    in FY 201213 in comparison with previous year.

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    Decline in Exports due to slowdown in Europe andAmerica as they are the major export centers for Indiathus drying up the demand as their growth rate werenegligible.

    Increase in Bank rates lead to increase in EMIs thusbuyers buying capacity was reduced.

    Saturation point in various states especially TamilNaidu, Maharashtra, Gujarat, Punjab.

    Lack of penetration in Rural areas in comparison tourban.

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    High Inflation reducing the consumption capacity ofpeople.

    Rise in Petrol and Diesel Prices due to deregulation of

    petrol by the Government and also reducing subsidieson diesel.

    IIP(Index of Industrial Production) 2% resulting in fallin demand for commercial vehicles as low demand for

    transportation by other sectors.

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    Setting up of facilities in India for manufacturing andlocalizing the components rather than importing(aspreviously it was imported directly from Japan onOrder).

    Set up free test drives centers in various parts of Indiato stimulate the buyers interest in the car as it will helpthe buyer to know how the car is in reality.

    Introduction of a Diesel Variant as previously Maruti

    Suzuki offered only Petrol variant of the car as rise inpetrol prices is a major deterrent for the buyer. Asdiesel cars are more fuel efficient

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    Positioning it as a competitor to Chevrolet Cruze andHyundai Verna(Rs.8 - 14 Lakh), as currently the car ispositioned against Skoda Laura and Honda Accord (Rs18 - 25 Lakh).

    Lowering of cost will make Kizashi compete in thecorrect league.

    Also, like Toyota creating Lexus & Volkswagen not

    stating their name anywhere near Audi; Maruti Suzukitoo can create a Luxury brand Kizashi withoutMaruti Suzuki (the mass car maker).

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    Look for just in time delivery

    Increasing Production of those vehicles which are highin demand like (LUVs & SUVs)

    Increase penetration in rural areas especially the northeast.

    Adding diversity to car portfolios

    Paying wages to labors to avoid any lock outs or strike in

    case of Bajaj or Maruti Suzuki

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    Introduction of Hybrid version as Green Cars are theway to future

    Conducting Auto Expos in all Metros beside Delhi and

    all tier-1 cities.