What could not be done by the Auto Biggies like General Motors, Tata Motors etc., has been done by Mr. Subbu.
He has successfully acquired Daewoo Motors, Surajpur plant. This plant has the capacity of 85,000 cars per annum. And now we can see a new entry in the Cars business.
So far this business was only meant for the Corporate Biggies only. Even though Hero Honda and Bajaj Auto have indicated their interest in entering in the small cars business, however no body could make such a smart move of acquiring the assets of a ready made facility that could be made operational in next 5-6 months.
Timing is the biggest challenging component in Marketing. Hyundai has been lately losing its pulse on the market because of non-availability of the production capacity. Whereas, Maruti's timely entry into one segment after another, is making its position invincible.
Mr. Subbu after breaking his relations with Hyundai had been silent for a long time, though he indicated his plans to manufacture cars. But no body would have taken him seriously because of the kind of investment and technical know-how requirements. Now he proved that yes, this dream can also be achieved.
We may see very soon, another small car fighting the big brands in B-segment for the share of pie.
Wednesday, February 14, 2007
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