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Failed Cars In India

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Classification of cars based on

shapeHatchback

Cars with hatch or flip-up window at

the back. Indica . 800, nano, swift, fabia

,

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Sedan

Cars with separate trunk for luggage at the

rear

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SUV

Usually have four ± wheel drive

for off-road ability

MUV

Used for multiple purposes

Eg. Innova,omni

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Classification of cars based

on priceSmall segment cars

Price range below 4 lakhs

Have 800 ± 1200 cc

Eg- Alto , maruti 800, Indica,etc

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Mid segment cars

price range 4 ± 9 lakhs

Have around 1500 cc

Eg ± Honda city , Ford Ikon , Tata Indigo

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Premium segment cars

Price range of 9 ± 20 lakhs

Have more than 1800 cc

Eg ± Honda Civic , Toyota Corolla

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Luxary segment cars

Cars ranging above 20 lakhs

Cars have cc above 2500

Eg ± Brands like Audi , BMW etc

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Some of the failed cars

� Daewoo Cielo

� Maruti Versa

� Ford Mondeo

� Mahindra Logan

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Daewoo Cielo

� Daewoo entry a milestone

� Cielo ± 1500 cc was first launch in 1995

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� First car came with 3 variants ( Cielo ,Cielo GLX , Cielo GLE)

� Price 6.3 ± 7 lakhs

� Power steering , power windows,

� Bookings reached 114000

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� 70000 customers cancelled bookings

� Only 9044 cars sold against 20000 by

March 1996

� 9006 Cielos sold (1997- 1998) ± decline

of 41%

� Only 5500 cars sold (1998 -99) ± decline

of 50%

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Reasons for failure

� Entry in a hurried manner - high import

content

� Competition from Ford and GM

(General Motors)

� Low fuel efficiency

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� Price cut of 1.5 lakhs in 1998(4.5 ± 5

lakhs)

� Daewoo introduced Matiz in october 1998

� Started focussing Matiz

� Finally production stopped in 2001

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� 1300 cc car

� Claimed as µLuxuary MPV¶

� pricing 5.15 ± 6 lakhs

� Amitab and Abishek for advertisement

� Versa witnessed low sales

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Reasons for failure

� Over priced

� Mini bus like shape

� WagonR

µs success in 2003

� Production stopped in 2006

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Ford Mondeo� First Ford¶s luxuary car Mondeo launched in

India in 2001

� 1999 cc

� Pricing around 18 lakhs

� Witnessed low sales

� Production stopped in 2006

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Reasons for failure

� High maintenance costs

� Over pricing

� Competitors Toyota Camry (2002) and

Honda Accord(2001)

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� Lack of features like Automatic

transmission , etc

� Outdated look

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Mahindra -R

enaultLogan

� Launched in 2007

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� Pricing 4.5 - 6.9 lakhs

� Expected sales of 2500 cars per month

� Actual sales was only 500

� Coolest thing is fuel efficiency

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Reason for failure

� Over pricing ( Engines imported form

France)

� Dated looks

� Ended up being µTourist Taxis¶

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� Competitors

Maruti Swift ± (4.32 ± 5.46 lakhs)

Tata Indigo cs - ( 4.2 ± 5.3 lakh)

Hyundai Accent ( 4.9 ± 5.36 lakh)

Ford Ikon (4.9 -5.7 lakhs)

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� Excise duty for small cars less than 4

metres is 8%

� Cars above 4 metres ± 20%

Logan length ± 4.27 metres

Tata Indigo CS ± 3.98 metres

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