| As the '80s dawned, a revolution was launched in India. The
Maruti, a dinky toy of a machine, hit the road. This was the family dream, and nothing,
except the arrival of satellite television in India, has had such an influence on urban
lifestyles in the past two decades. Today
Maruti has an extraordinary 82 per cent share of the car market. That may change as
Maruti's profitability has lured competitors, each hungering for a slice of the pie. And
now, with the release of the Santro by Hyundai, an automobile war has been officially
declared. It is just the beginning. Next week Daewoo presents the Matiz, in December will
roll out Tata's Indica and Fiat's Palio. And next year, General Motors, Mercedes and
Mahindra Ford promise to join this small car battle.
The Indian car market has exploded. During the mid-'80s,
India managed with three car makers who produced 1.2 lakh vehicles and sold most of them;
last year, there were nine manufacturers who sold a total of 4,16,408 vehicles; in the
near future there could be 15 companies producing 10 lakh cars per year. Yet, as our cover
story notes, not every player survives. Many are confronted with a Catch-22 situation:
while it may be economical for them to produce cars in large numbers, they still have to
sell all those vehicles.
Which means prospective consumers are treated like royalty.
Once they were denied a choice and dealers adopted a take-it-or-leave-it attitude. These
days, explains Principal Correspondent Robin Abreu, who reported the story with Special
Correspondent Shefali Rekhi, "They are given free gifts, taken for test rides and are
ceaselessly pampered." But this is a sport where not everyone can win. And
manufacturers will do almost anything to rudely elbow out competition and give the
customer what he wants-safety, style, speed, space, mileage and price. A revolution is
clearly brewing and, as usual, a bloodbath is in the offing.
(Aroon Purie) |
