Car Sales in India - A Different Perspective


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Just read a news article that Hyundai India sold 4,00,000 cars in this year. Its a mighty achievement from Hyundai.

Its very good an part of hyundai but just a different perspective, assuming the parent company in South Korea takes a mere Rs. 30,000 per car on an average translates to Rs 12,000,000,000 out of india in this year which is 120 Crores.

suzuki which sells close to around 10 lakhs per year on similar lines must be taking Rs 300 Crores out of india.

Similarly every time we use any foreign made item it contributes to out flow of money. I guess we should should try to stick to purchasing indian brand items and try to keep indian money in india.
 
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Re: Car sales in India - A different view

... Hyundai India sold 4,00,000 cars in this year. ... assuming the parent company in South Korea takes a mere Rs. 30,000 per car on an average translates to Rs 12,000,000,000 out of india in this year which is 120 Crores.

Suzuki which sells close to around 10 lakhs per year on similar lines must be taking Rs 300 Crores out of India.

Similarly every time we use any foreign made item it contributes to out flow of money. I guess we should should try to stick to purchasing Indian brand items and try to keep Indian money in India.
That's a good analysis. There's another angle to it. What about the huge investment and efforts these two or any other foreign Cos have made in India to set up Plants, Employ & Train People, Vendor Development etc ? Lets assume, the Foreign Cos are forced to hand over their Cos to Indian Pvt Players. Few select private parties might make truck loads of money (and share 5-10% with share holders) in the form of Profit.

PROFIT ??? That's bloody people's money earned thro' huge margins.

So we will ask Govt to enact a law which would limit Pvt Cos to make NOT more than 3-5% profit after tax? Better is to ask Govt to take over ALL Cos operating in India ? But then we see so many Politicians, Babus and middlemen milking Govt funds in every possible way. What to do ????

Solution from Tughluq Durbar: We ask Govt to take over all Cos, Indian or Foreign and also to stop ALL welfare and development measures. Purchase power of people is more (so as to give profit to Pvt Cos). So Tax should be increased to 50% flat for all.

Tughlaq Durbar doesn't care about answers to the following Qs:
  • How long one waited for a landline connection 15 years back ?
  • How long one waited for their Scooters or Bikes or Cars 25 years back.
  • How long one waited in Q in a nationalised bank, before the Pvt players entered banking sector ?
  • How many had to take leave to renew their Vehicle Insurance when only Nationalised Ins Cos operated ?
 
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Re: Car sales in India - A different view

Just read a news article that Hyundai India sold 4,00,000 cars in this year. Its a mighty achievement from Hyundai.

Its very good an part of hyundai but just a different perspective, assuming the parent company in South Korea takes a mere Rs. 30,000 per car on an average translates to Rs 12,000,000,000 out of india in this year which is 120 Crores.

suzuki which sells close to around 10 lakhs per year on similar lines must be taking Rs 300 Crores out of india.
That is a good study vikyjoshi.

Similarly every time we use any foreign made item it contributes to out flow of money. I guess we should should try to stick to purchasing indian brand items and try to keep indian money in india.
Now this is a very debatable topic in my view because there are several things which is to be kept in mind while a buyer chooses to buy a car in India.

Key role is the money which is then attached to need and comfort of travelling (luxury in the higher budget cars)

If a buyer comes to the stage of buying his first car, he will definitely think about Maruti till today, why?

Because the company has made such an impression by giving their products which is affordable by a common man for his needs. This made the buyer and the seller both to meet their criteria. This doesn't end here, he went ruthless in the servicing campaign all over the country for which people think that it's worth pouring the money.

Whereas what did our Tata do? Brought the nano up so late when the consumers already had very good options in the market and by this time they were getting a lot better offerings (Alto,Santro,WagonR).

The hype for nano was such that everybody though it will be a good small car within less budget, but eventually the safety concerns (fire cases) rose up like wildfire such that i was listening the news from a non-enthusiast too!

Please don't mistake me that i'm bringing out the positives, but these are the facts which we have to acknowledge.

Now when you compare the above scenario and go ask the buyer between these two companies, he will definitely point out to Maruti because he is gaining much with the car and his need satisfied.

If you ask him go buy nano? He definitely thinks about the company (which has improved now), next the brand reliability and the kind of fame the car has gained in the market.

This is why the statement "First impression is the best impression" holds true.

So it finally ends upon your decision and the factors which you consider while buying your car. If the manufacturer finds the right way to capture the market and aggressive enough, then public will automatically turn towards them.
 
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Re: Car sales in India - A different view

vikyjoshi,

Thats an interesting perspective.[clap] Good thought. But what vijay_968 has suggested is valid, these cos. have made huge infrastructure investments, have provided job opportunity and contributed to our economy.

There is another point too, they would/might re-invest the money on R&D since there is a need to invent new technologies, new platform for new launches, capacity expansion, opening a new plant etc.

Moreover, unlike consumer durables, Electronics, Mobiles, cosmetics, beverages and genreal provisions, the choice of Indian cos is only 2 for auto industry, either TATA or Mahindra.
 

allhyundaicars

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Re: Car sales in India - A different view

What about the advantages to india ? Classic example of globalisation.

Company makes 120crore profit which goes out. Agree.

Benefits in the form of employment , benefits to other indian companies , manufacturing some products , offering their services, tax to the government. Some of the few advantages.

But yeah agree on buying the indian products , tata have made a huge leap forward with the bolt and the zest and sincerely hope for more good products from them.
 
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I totally agree with your post, but my concern is:

Driving on road contains a great safety issue about himself or family where nobody would like to compromise. Also after spending so much money one wants comfort & don't want to spend time while taking visits to ASS.

But there are so many fields where neither safety or comfort matters, still millions of money is drained by foreign companies, i.e.

- Pepsi like absolutely useless & harmful drinks
- McDonald like food joints
- Imported branded clothes, shoes & fashion apparels & cosmetic items
- Imported furniture items like Durian sofa & Italian marble.
- Visit foreign countries rather than different states of India.
- Vodafone like foreign mobile service provider company (The list is endless).

So this money drain is going to be continue till we madly blind after foreign goods & brand, & till we don't understand & till we don't focus on R&D, innovation & novel ideas. This thing should be deep rooted in our culture & study right from school. It should not be only "Make in India", it should be "innovated, designed & made in India". Any step towards this vision is most welcome.
 
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If USA dint offshore its business to india worth billions of dollars, there would be fight to get 15k job like in FY2000. And here we are debating few hundred crores?
 

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