While the Birla group was very much the company that brought in the Ambassador, It is Tata that has given us the truly Indian car 'Nano'. But one company has been through it all since 1945 making Jeeps. If you don't belong to India, let me tell you that the company is called Mahindra. Today Mahindra stands in the country as the Fourth largest car maker and the largest Utility vehicle manufacturer.
Today Mahindra is not just a Utility Vehicle manufacturer anymore. In fact, Mahindra group now encompasses, Aerospace, Retail, Sea boats, Hotels, IT, Defense, Farm Equipment, Banking and much more. Mahindra and Mahindra Automotive itself has grown leaps and bounds in the last decade showing the true potential of Mr. Anand Mahindra. His contribution to the county is in noway inferior than the likes of Mr. Ratan Tata.
Coming to the Automotive Division, Mahindra and Mahindra Automotive itself has had a golden decade. The company has recently purchased domestic companies like Maini (Reva fame) and Kinetic Two wheelers and international companies like SsangYong based in Korea. But should we consider the old adage 'All is well that ends well' to be true here? Here is a break up of Mahindra's vehicle sales for February 2011.
MahindraLogan : 1151 (Indigo sold 8966 units, Accent sold 1224 units, Dzire sold 9490 units)
Xylo : 2287 (Tata Grande sold 2315 units)
Scorpio : 3924
Bolero : 7161
ST+Marshal+Maxx : 916
3 wheelers + GIO + Maxximo : 10299
Product and service Uniformity Website Definitely not the case if we take the examples of GM and Chrysler. While one can trust Mr. Anand Mahindra's prowess looking at the company's current standing, A few points definitely need to be taken care of. The first and most important suggestion will be that of the corporate Mahindra face. While most companies have a corporate website listing their complete automobile product range, Mahindra is yet to have one showcasing their complete product range. The power of the internet should not be underestimated. Mahindra needs a website showcasing
Scorpio
Getaway
Xylo
Bolero
Camper
Thar
Logan and
Reva.
Looking at the counterpart websites, showcasing their concepts and upcoming vehicles, showcasing the AXE UV is also a good idea.
Corporate GrilleAlso of major significance is to get the Corporate grille and logo in place. The Logan is still carrying a Renault face post the de-merger and the Maini is yet to figure in the showrooms. While the sales of Maini maybe slow, it will leverage Mahindra's image as the electric car maker with a history. It is important as Indians have a terrific recall value of products with a legacy.Along with the corporate grille, a uniform central console with their unique A/c vents, stereo (with USB and bluetooth to keep them cutting edge), steering wheel, Dials, and Headlights (with bluelights) will help in controlling costs and providing the already Mahindra's already strong identity a boost. This is how the imports like Skoda and Toyota have been able to withstand the onslaught of domestic makers like Tata and the largest car maker Maruti-Suzuki. Honda too uses the same parts from their bins on Jazz, City and Civic.
PS: Mahindra Logan with a Mahindra Grille will get a really front heavy look. With proper treatment and an engine to match, Mahindra can have India's first muscle car at hand. From the various Automotive forums I surf, People miss the Contessa and want Ford and GM to bring in the Mustang and Camaro. While the Logan Body is not strong enough to take in a V8 engine, Indian customers will be happy with a 1.6 engine (previously available on the Logan) turbo engine and huge 16 inch alloy wheels for now.
Strength at handElectric car or the next big small thingSince the time Mahindra took over Reva, This tiny but exclusive electric car hasn't taken to the showroom floors yet. One of the main reasons for Maini's minuscule sales were its fledgling dealer network. Now with Mahindra's Dealer strength, Maini can do some better numbers to begin with. Never to forget how it helps in recording customer reaction and feedback. With the New NXR and NXG coming up, the Reva has the capability to pose a serious threat to Tata Nano and Indica and Maruti Alto. This is all the more important considering Mahindra does not have a hatchback in its lineup. Not to forget Mahindra should give the Reva its Mahindra Grille before displaying it on the showroom floor.
CNG If Mahindra wants to be a volume player, they need to be the first to look at CNG options. With the way prices for petrol are rising, having cars with alternate fuels is the best way forward. With diesel engines already in the portfolio, CNG is the next big thing that Mahindra should get inside their vehicles. Maruti-Suzuki has already followed by providing CNG options for all its vehicles.
Cross-Platform sharingOne of the most significant benefits of putting the Reva on Mahindra floor will be gauging the expectations of people for an electric Logan or an electric Thar especially since an Electric engine provide torque all the way up from 0rpm itself all through the rev range. This will put a feather in Mahindra's cap as a company who has succeeded in bringing automatic transmission to the market much before Tata, Force, ICML or other domestics car makers.
PS: Has Mahindra considered putting in the Renault 1.4 under Reva's hood? Considering 80% of small diesel car owners take their car to work, a 2-seater FE city car with cheap spares makes for an awesome alternative.
Revamping the BoleroBolero is one of the strongest Mahindra products. The MUV reaches sales figures that will put more than 50% of the car manufacturers in India to shame. Some feat that definitely deserves acclaim. But along with age and quality niggles, interior design is also its Achilles's heel. Like every other car maker, scourging through the Logan/Bolero/Xylo parts bin to improve interiors is a good idea. Nothing lures customers better than a better value product
Brand positioningThe luxury MarqueeMahindra is known as a value for money brand. Most of their cars are meant for the common public. Also to add, Indian Brands are not considered upmarket either. So instead of taking the hard way to cater to those segments the company needs to look at an easier approach to beat the cut-throat competition. The answer comes in the name of Ssangyong. The Korean company has many models based on previous generation Mercedes-Benz platforms. I would suggest Mahindra Keeps the Ssangyong brand and positions it in the luxury segment. This should enable them to take on a wider product portfolio catering to a wider segment.
PS: Please revive the Sssangyong Kallista and bring it to India.
Re-establishment of the LoganI will begin by saying Kudos to Mahindra for their excellent efforts with the Logan's sagging sales. Looking at the sales stabilizing at more than thousand units per month. With the new sub 4-metre Logan, I hope Mahindra gets the interior ergonomics right. Placement of the power window switches and the viper design is the first thing. Also using a second reverse light should help. The central dash needs better design and upmarket feel. A touchscreen unit with rubber feel plastics will give the right impact. Using the 1.4 Logan diesel unit in the Reva should help in providing the right amount of sales and financing in bringing the NXR and NXG faster to the market while increasing profit margins on the Logan to take on the likes of Indigo Manza and Maruti Suzuki Swift Dzire.A 1.2 petrol engine can help and sharing one with previous partners Ford or the recent partners Renault depends on whether the company's relationship status is committed or ex. Not to forget bringing in various models on the Logan platform will show the buyers that Mahindra is backing the car.
A very crucial point to note here. The cheapest petrol Automatic sedan in India is the Suzuki Sx4 priced at 8.55 while the cheapest automatic diesel sedan is the Hyundai Verna priced at 9.44. Automatic versions of Logan will fill the void and add to the sales.
PS: Has Mahindra given thought to entering rallying with the Logan? The company can benifit from the body structure of the Logan which is strong and meant to withstand the ambience in developing economies. Companies like Mitsubishi, Suzuki are active on the rally scene. Mahindra should benefit from the fact that it is already present in various events (Raid de Himalaya's and other 4x4 events). Also, With the wide body and immense space, How about a redesigned Logan XL just like the Indigo XL with a DOHC unit?
The Two-Wheeler GloryMahindra has bought the ailing Kinetic 2 wheelers and has touched good sales figures only within a few months. But the Stallio has hardly received any response. Mahindra definitely needs to work on the Motorcycle quality issues. But thinking out of the box, I would say Mahindra can provide the Asian markets with the cheapest 1.2 bike based on a prospective engine they use for the Logan/Reva. This should give them an image boost and customers will flock the showrooms. Flicking the pages of history, it is evident how Yamaha got back into the game. People never viewed Yamaha as the Fuel Efficient vehicle but a fun to drive vehicle. They entered the niche premium end market and today their sales registers are ringing in money.
A 1200 cc bike will get Mahindra the bragging rights of the only and the cheapest Super bike in the country below 10,00,000 Rupees. Sales will definitely sky rocket in this segment while bringing in sales for Stallio along with Rodeo and other scooters too.
We also hope to see more motorcycles from the stables of Hyosung if possible (should be tough as the rumors are that they are entering by self). A Mahindra Hyosung Collabration shouldn't hurt either.
CustomizationMahindra has a great tool at hand which they have not used convincingly. Mahindra customization needs to be given a free hand so that they can create projects for road use for the masses like what Shelby did for Ford or what Nismo and Ralliart did for Nissan and Mitsubishi.
For taking the strongest way forwards, ideas exist in numbers equivalent to the brains. I just hope Mahindra can get some cues to grow leaps and bounds and make our country proud.
