By - Abhay Munjal Jitendra Sangle

Indian Automobile Industry has shown marginal

growth in FY 201213 compare to FY 201112. Production and Domestic sales have gone up. However export is has witnessed negative growth due to negative global environment and frequent fluctuations. Car sales in Indian industry are down by more than 6% in FY 201213 in comparison with previous year.

 Decline in Exports due to slowdown in Europe and

America as they are the major export centers for India thus drying up the demand as their growth rate were negligible. Increase in Bank rates lead to increase in EMIs thus buyers buying capacity was reduced. Saturation point in various states especially Tamil Naidu, Maharashtra, Gujarat, Punjab. Lack of penetration in Rural areas in comparison to urban.

 High Inflation reducing the consumption capacity of

people. Rise in Petrol and Diesel Prices due to deregulation of petrol by the Government and also reducing subsidies on diesel. IIP(Index of Industrial Production) 2% resulting in fall in demand for commercial vehicles as low demand for transportation by other sectors.

 Setting up of facilities in India for manufacturing and

localizing the components rather than importing(as previously it was imported directly from Japan on Order). Set up free test drives centers in various parts of India to stimulate the buyers interest in the car as it will help the 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 in petrol prices is a major deterrent for the buyer. As diesel cars are more fuel efficient

 Positioning it as a competitor to Chevrolet Cruze and

Hyundai Verna(Rs.8 - 14 Lakh), as currently the car is positioned against Skoda Laura and Honda Accord (Rs 18 - 25 Lakh). Lowering of cost will make Kizashi compete in the correct league. Also, like Toyota creating Lexus & Volkswagen not stating their name anywhere near Audi; Maruti Suzuki too can create a Luxury brand Kizashi without Maruti Suzuki (the mass car maker).

 Look for just in time delivery

Increasing Production of those vehicles which are high

in demand like (LUVs & SUVs) Increase penetration in rural areas especially the north east. Adding diversity to car portfolios Paying wages to labors to avoid any lock outs or strike in case of Bajaj or Maruti Suzuki

 Introduction of Hybrid version as Green Cars are the

way to future Conducting Auto Expos in all Metros beside Delhi and all tier-1 cities.