patentneer
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Thanks 'Gulte' ... and Mr. 'takeiteasy', I'm just stating facts, no - not flaunting silly; can't you see how game-changing that is for the rest of the world. Even at those prices things are pricey given India's GDP but for the rest of the world, OMG!
Yaar, look ... 5 Lakh- 9.47 Lakh is too much really.
I think India needs utility vehicles and mini trucks for 1 Lakh range. The Tata Ace, M&M, Piaggio Truk and others are still Indian Rs. 1.5 to 2 Lakh really ... a tad pricey! Hell, I'm likely naive re: India pricing.
Let's look at it again form the Co.'s pricing dept. angle:
1) Rural DIY (Do-It-Yourself) Jugaad contraptions cost no more than Rs. 25000 approx. Prestige wise - a huge thing in India- DIY Jugaad's are a total no-no.
2) 2'nd hand 3-wheeler pick-up's should be Rs. 25 - 50,000 range while 2'nd-3'rd hand Maruti type van's between 50000-1 Lakh. Soon a new generation of sub 2 Lkah new 2'nd hand Tata Ace and it's friends form Mahindra and Piaggio etc. will smash the Maruti van/ 3 wheeler market 2'nd hand market when the Tata Ace & party type vehicles enter the rural and otherwise 2'nd hand market. These mini trucks have gone into mass production, and in the past 3-5 yrs., more realistically 8 yrs., are ready to be passed on to the 2'nd hand market from the cities to the semi rural folks in large enough numbers to change the game. So prices of factory built 2'nd hand 3-wheelers must be nose diving and should settle no more than Rs. 25000. The home-made, bottom-of-the-pyramid DIY Jugaad types are totally unenviable and a 100 % wipe-out ...
3) The factory ppl. can continue to sell mass vehicles like jeeps, mini trucks, 3 wheelers (dangerous business) while booking profit at historical prices while focusing on the premium market to expand profit while fighting with Indian made foreign branded vehicles. the key differentiator will become scale as in how many Lakhs of a particular vehicle model sold. Except factories to scale up from Global size today to mega Global size soon.
For typical desi manufacturers, going 'Premium' is cheaper than going really really mega mass scale, the scale that India demands. I'm afraid they must invest in better HR, processess, tooling, marketing etc. For going upscale with the other passenger type models, all you do is get local and foreign consultants to jazz up basic contraption by sourcing latest music, lighting, plastics, air-con even design and engine modifications for a fee of course.
Mind you, local manufacturers like Tata, M & M, Bajaj are up to Global standards in quality and production nowor almost there; but India demands more than just Global standards from these guys. IT's the 2'nd guard the TVS, Vikram (sorry), Atul Motor, HM, Sonalika, Ashok Leyland and maybe GM Wuling and others like Oreva and Tara who may have to break into the market with discontinuous products. A 4 wheel electric or CNG mini-truck from TVS, GM Wuling or Atul motors may be a game-changer and would do nicely.
I am thinking India's auto revolution may boost its agri business by making farm-to-fork within reach of small farmers who can do an arbitrage or commission deal with a mini-truck wallah, say a standard 10% sadly; and they can deliver directly to City customers in week-end markets and 'Colony' type residential areas by-passing the mandi and it's middle-men etc. Even better, imagine a 'Green', but farmer connected to a loyal City clientele by a cell phone enabled subscriber list, .. with his own bank-loan enabled mini truck. Many small farmers own a Hero-Honda motorcycle as a business tool already. I can see this happening, it's not that crazy. It's when small farmers and tradies like plumbers, painters and electricians migrate from 2'nd hand Bajaj scooters to mini trucks that I will believe more in the India boom story. Heck, if local auto Co.'s can cater to vehicles in this segment with local, affordable products, they can have the world at their feet, no? A Tata Nano type pick-up or mini-truck, for say 1 Lakh or $ 5000 would be definite game-changer. Any such product anywhere in the world, Pakistan Indonesia, LAtin Amercia, Eastern Europe, China or Thailand?
I assure you the market is in for a huge revolution in prices as the Indian made foreign brand Co.'s stabilise and entrench themselves in India. Exciting times ahead.
Yaar, look ... 5 Lakh- 9.47 Lakh is too much really.
I think India needs utility vehicles and mini trucks for 1 Lakh range. The Tata Ace, M&M, Piaggio Truk and others are still Indian Rs. 1.5 to 2 Lakh really ... a tad pricey! Hell, I'm likely naive re: India pricing.
Let's look at it again form the Co.'s pricing dept. angle:
1) Rural DIY (Do-It-Yourself) Jugaad contraptions cost no more than Rs. 25000 approx. Prestige wise - a huge thing in India- DIY Jugaad's are a total no-no.
2) 2'nd hand 3-wheeler pick-up's should be Rs. 25 - 50,000 range while 2'nd-3'rd hand Maruti type van's between 50000-1 Lakh. Soon a new generation of sub 2 Lkah new 2'nd hand Tata Ace and it's friends form Mahindra and Piaggio etc. will smash the Maruti van/ 3 wheeler market 2'nd hand market when the Tata Ace & party type vehicles enter the rural and otherwise 2'nd hand market. These mini trucks have gone into mass production, and in the past 3-5 yrs., more realistically 8 yrs., are ready to be passed on to the 2'nd hand market from the cities to the semi rural folks in large enough numbers to change the game. So prices of factory built 2'nd hand 3-wheelers must be nose diving and should settle no more than Rs. 25000. The home-made, bottom-of-the-pyramid DIY Jugaad types are totally unenviable and a 100 % wipe-out ...
3) The factory ppl. can continue to sell mass vehicles like jeeps, mini trucks, 3 wheelers (dangerous business) while booking profit at historical prices while focusing on the premium market to expand profit while fighting with Indian made foreign branded vehicles. the key differentiator will become scale as in how many Lakhs of a particular vehicle model sold. Except factories to scale up from Global size today to mega Global size soon.
For typical desi manufacturers, going 'Premium' is cheaper than going really really mega mass scale, the scale that India demands. I'm afraid they must invest in better HR, processess, tooling, marketing etc. For going upscale with the other passenger type models, all you do is get local and foreign consultants to jazz up basic contraption by sourcing latest music, lighting, plastics, air-con even design and engine modifications for a fee of course.
Mind you, local manufacturers like Tata, M & M, Bajaj are up to Global standards in quality and production nowor almost there; but India demands more than just Global standards from these guys. IT's the 2'nd guard the TVS, Vikram (sorry), Atul Motor, HM, Sonalika, Ashok Leyland and maybe GM Wuling and others like Oreva and Tara who may have to break into the market with discontinuous products. A 4 wheel electric or CNG mini-truck from TVS, GM Wuling or Atul motors may be a game-changer and would do nicely.
I am thinking India's auto revolution may boost its agri business by making farm-to-fork within reach of small farmers who can do an arbitrage or commission deal with a mini-truck wallah, say a standard 10% sadly; and they can deliver directly to City customers in week-end markets and 'Colony' type residential areas by-passing the mandi and it's middle-men etc. Even better, imagine a 'Green', but farmer connected to a loyal City clientele by a cell phone enabled subscriber list, .. with his own bank-loan enabled mini truck. Many small farmers own a Hero-Honda motorcycle as a business tool already. I can see this happening, it's not that crazy. It's when small farmers and tradies like plumbers, painters and electricians migrate from 2'nd hand Bajaj scooters to mini trucks that I will believe more in the India boom story. Heck, if local auto Co.'s can cater to vehicles in this segment with local, affordable products, they can have the world at their feet, no? A Tata Nano type pick-up or mini-truck, for say 1 Lakh or $ 5000 would be definite game-changer. Any such product anywhere in the world, Pakistan Indonesia, LAtin Amercia, Eastern Europe, China or Thailand?
I assure you the market is in for a huge revolution in prices as the Indian made foreign brand Co.'s stabilise and entrench themselves in India. Exciting times ahead.