"OEMs should themselves force to place greater emphasis on developing right product portfolio & solution rather than focusing on just how to sale vehicles", writes Atul Singh Chandel.
India is a becoming hot destination for foreign 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 & 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 OEM’s need to understanding of what the Indian markets look like today and in which direction it could move and where OEM’s are headed. First step should understand the application of vehicle here, based on application define segments and visualize how it is changing with the time. At the same time, customers in Indian markets 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, customization 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 understanding the applications define drive.
How to define Product portfolio in India:
After defining product portfolio then go back to application through the same rout but check different applications also weather it is suitable or not. This process is a continue one.
After technical ground work finally it comes on commercial issues like TCO and street price, it should be suitable for industry and how fast vehicle can achieve Break even point. 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 & repair packages but customized. Foreign OEM’s should enter into India with completely built unit after deciding right product portfolio. If they enter into 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 or updated product and ensure quality standard with price in order to gain market share in low cost or budget segment.