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Failed Cars in India

The document discusses several cars that failed in the Indian market such as the Daewoo Cielo, Maruti Versa, Ford Mondeo, and Mahindra Logan. It analyzes the reasons for their failure including being overpriced, having outdated designs, facing strong competition, and not meeting customer needs and expectations. Key factors like high import duties for larger cars and preference for fuel-efficient and affordable small cars in India contributed to the commercial failure of these vehicles.

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Shyam Cr
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38 views

Failed Cars in India

The document discusses several cars that failed in the Indian market such as the Daewoo Cielo, Maruti Versa, Ford Mondeo, and Mahindra Logan. It analyzes the reasons for their failure including being overpriced, having outdated designs, facing strong competition, and not meeting customer needs and expectations. Key factors like high import duties for larger cars and preference for fuel-efficient and affordable small cars in India contributed to the commercial failure of these vehicles.

Uploaded by

Shyam Cr
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Failed Cars In

India
Classification of cars based
on shape
Hatchback
Cars with hatch or flip-up window at
the back. Indica . 800, nano, swift, fabia
 
,

#
Sedan

Cars with separate trunk for luggage at the


rear

#
SUV

Usually have four – wheel drive


for off-road ability

MUV
Used for multiple purposes

Eg. Innova,omni
#
Classification of cars based
on price
Small segment cars

Price range below 4 lakhs

Have 800 – 1200 cc

Eg- Alto , maruti 800, Indica,etc


#
Mid segment cars

price range 4 – 9 lakhs

Have around 1500 cc

Eg – Honda city , Ford Ikon , Tata Indigo

#
Premium segment cars

Price range of 9 – 20 lakhs

Have more than 1800 cc

Eg – Honda Civic , Toyota Corolla

#
Luxary segment cars

Cars ranging above 20 lakhs

Cars have cc above 2500

Eg – Brands like Audi , BMW etc

#
Some of the failed cars
• Daewoo Cielo

• Maruti Versa

• Ford Mondeo

• Mahindra Logan
#
Daewoo Cielo
• Daewoo entry a milestone

• Cielo – 1500 cc was first launch in 1995

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

• Price 6.3 – 7 lakhs

• Power steering , power windows,

• Bookings reached 114000

#
• 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%
#
Reasons for failure
• Entry in a hurried manner - high import
content

• Competition from Ford and GM


(General Motors)

• Low fuel efficiency


#
• 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

#
Maruti Verna
• Introduced in 2001

• Upgrade to Omni

#
• 1300 cc car

• Claimed as ‘Luxuary MPV’

• pricing 5.15 – 6 lakhs

• Amitab and Abishek for advertisement

• Versa witnessed low sales


#
Reasons for failure
• Over priced

• Mini bus like shape

• Wagon R ‘s success in 2003

• Production stopped in 2006


#
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


#
Reasons for failure

• High maintenance costs

• Over pricing

• Competitors Toyota Camry (2002) and


Honda Accord(2001)
#
• Lack of features like Automatic
transmission , etc

• Outdated look

#
Mahindra - Renault Logan
• Launched in 2007

#
• Pricing 4.5 - 6.9 lakhs

• Expected sales of 2500 cars per month

• Actual sales was only 500

• Coolest thing is fuel efficiency


#
Reason for failure
• Over pricing ( Engines imported form
France)

• Dated looks

• Ended up being ‘Tourist Taxis’

#
• 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)


#
• 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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