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Hind Motors chalks out growth strategy
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Source: Business Line
Edition : Aug 3rd
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| WITH the introduction of new models by existing players and the possible entry of new players into the Indian car industry continuing to pose threats for sustaining sale volumes of the existing models and players, Hindustan Motors Ltd (HM), the C.K. Birla-controlled car major, has chalked out a strategy to propel growth that involves initiating product improvements and aggressive marketing efforts. |
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According to its Chairman, Mr C.K. Birla, "the company is taking necessary actions to make the Lancer car available with a higher capacity engine. The company has also completed the work for introducing a restyled Ambassador car, which is likely to be available for sale shortly."
HM had developed the utility vehicle, Trekker, with a full metal body during last fiscal. The company expects that all these new variants in the product range would offer enough opportunities for growth, he said.
Mr Birla informed the shareholders through a communiqué that `Ambassador Classic' and a new model `Ambassador Avigo' were expected to penetrate not only the non institutional market but also strengthen the company's position in the institutional market and government sales.
According to Mr Birla, `Trekker' and `Porter', the pick up version of `Trekker' that is currently under development, would be in the market by next month and would open new market opportunities for the company in the utility vehicle segment.
"Likewise, Lancer production line is also to be strengthened by significant changes in the current year edition, which coupled with introduction of 1.8 litre automatic transmission vehicle is expected to increase sales of these vehicles in the premier segment of the car market," Mr Birla said.
Explaining the threats and opportunities before the company through management discussion and analysis in the latest balance sheet, he said the company was also exploring supply of components to other automobile manufacturers.
"Apart from being an automobile vehicles manufacturer, the company has been looking for supply of components and other aggregates to other automobile manufacturers. This will enable the company to look for more avenues of growth. The recent tie-up with Ford and General Motors are a step in this direction. The company would continue to look for such opportunities."
Further, with the picking up of the demand for construction and earthmoving equipment in the recent past, which was likely to be maintained in future also, the company expects its sale of automatic transmissions by its Power Products Division to pick
up.
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