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Why Indian Automakers Should Pay Attention to the Beijing Auto Show
Posted on 11 May 201220,719 Views2 Comments
The curtain has fallen on a highly successful 2012 Beijing Auto Show, which was attended by senior executives from many of the world's largest automakers. After some reflection, here are a few key takeaways that Indian automakers can take learn from the Beijing Auto Show:
1) Go Local
International automakers made it loud and clear during the auto show that they are listening to Chinese consumers and are producing cars for the Chinese market. For example, Aston Martin and Jeep are two of many brands that decided to go for the most obvious and blunt visual approach to wooing Chinese consumers – by deploying a Dragon emblem on their latest model offerings, hoping to tap into Chinese affinity for the most powerful symbol in the Chinese zodiac.
While using the Dragon emblem might be considered flattering, automotive marketers need to be careful. Chinese consumers are increasingly becoming more global and sophisticated in their tastes, and leveraging the revered dragon could be considered pandering by some. In short, the key is to “go local” with marketing knowledge, without going provincial.
In India, knowing what appeals to consumers is equally important, For New Generation Indian Consumers (NGICs)—those born between 1975 and 1990 and members of the first generation to be exposed to a new world of ideas and like their Chinese counterparts—are more sophisticated and worldly than their predecessors. And they are also quite discerning when it comes to their vehicles. According J.D. Power research shows that one of the top reasons cited for rejecting a model is the consumer “didn’t like the exterior design.” In fact, one out of every four customers cites it as a reason for rejection, which indicates that there is much room for improvement in understanding these customers.
Other carmakers at the Beijing show have decided to go the practical route with good old research and observation. Nissan, for example, has recently configured the rear seating of its Infiniti cars to create a more spacious rear seating area to cater to the influx of businessmen travelling in China.
This is a cue for carmakers in India, considering that data from J.D. Power India studies show that one in five new car buyers employ a chauffeur to ferry them around in the cities. The long-held assumption that driver comfort is of paramount importance is now being questioned. Instead of pampering the driver, it is now critical to indulge the rear passengers to ensure that the purchaser of the car is happy.
Paying heed to local sentiments in a particular auto market can certainly also be profitable. Volkswagen is by far the highest-selling automotive brand in China. Par of its success story in China is due to its strength in localizing products faster than its competitors. In India, however, Volkswagen has much to work on in this respect.
For example, findings from our 2011 India Initial Quality Study show that a higher proportion of VW customers report problems related to clutch pedal effort compared to other brands in the same segments. Consumers in India tend to use the clutch far more than their European counterparts while travelling on congested city roads, and thus require easier pedal effort.
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Readers' opinions ( 2 )
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ram
if it is ur home u would have understood... besides gov pays peanuts and one cannot buy anything with the compensation in this times of inflation
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Ramsy
Nothing is going to make a difference in India until the roads are broadened , improvement in the infrastructure is made and discipline brought in. Otherwise there is no pleasure to drive in the Indian roads. All models would imply the same. If necessary bull doze some of the structures to pave way for broadening of the roads like what has been done in China. There is nothing wrong in suitably compensating the victims.
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