OEMs should themselves force to place greater emphasis on developing right solutions rather than focusing on just how to sale vehicles, writes Atul Singh Chandel.
India is becoming a hot destination for foreign commercial vehicle (CV) manufacture and it's a new challenge for Indian OEM how to keep their market share in everyday changing business scenario. The basic concept how to define correct product portfolio and how to keep update and competitive portfolio without any damage of brand image and also keep market share. Triad players have normally shown much lower growth rates than their counterparts in India. The definition of best product in India is best suitable product at competitive price.
All OEMs need to understanding what Indian market looks like today, in which direction it could move and where OEMs are headed. First step should be understanding the application of vehicles here, based on application define segments and visualise how it is changing with time. At the same time, customers in Indian market are becoming increasingly sensitive to the total cost of ownership (TCO), which simply means all the costs of an investment over its entire product lifecycle.
In truck business, this includes the initial investment plus the fuel cost, driver's wages, taxes, repairs and maintenance etc. Another important factor is that trucks are becoming more and more interchangeable and, hence, customisation process appears. When this happens, product differentiation and definition becomes more and more difficult. OEMs should themselves force to place greater emphasis on developing right solutions rather than focusing on just how to sale vehicles.
After technical ground work finally it comes on commercial issues like TCO and street price. Finally we will have a product portfolio which will be best suited for India. With this product portfolio there is always a strong service, spare parts and maintenance and repair packages but customised.
Foreign OEMs should enter India with completely built unit after deciding right product portfolio. If they enter the market with CBU then there will be minor chances of having quality problems, parts availability, suitability, design, vendors and assembly etc.
By following this process, define a frame and give the best package (TCO, Service etc) is the most efficient way for product strategy. On some extent this process can be applied for many other countries where Indian OEM's wants to enter into the market.
By having correct portfolio foreign OEM's can increase market share easily but should decrease price also, both approach should comes together. For Indian OEM introduction of new/updated product and ensure quality standard with price in order to gain market share in low cost or budget segment.
The author is Manager - Marketing at Kamaz Vectra Motors. Email: firstname.lastname@example.org