Saturday, October 18, 2008

“The slowdown can be seasonal”

Vivek Nayar, VP (Marketing), Auto Division, Mahindra & Mahindra

B&E: What are the effects of the industry slowdown on M&M? VN: If there is a slowdown, naturally we will also be affected by it. However I think that the slowdown is a seasonal factor and sales will pick up eventually. Then there is the monsoon and rains, a situation where the consumer is not very keen in making new purchases.

B&E: On M&M’s new found focus on the environment.
VN: The subject of global warming is something which we should be aware of. The beauty we see in the nature will not be here forever. What matters most is what you leave behind and that is what M&M wants to do. We are not only leading at the CNG initiative, there is a lot more. We have already demonstrated our electric vehicles at the auto expo as well. It all depends on the reach of infrastructure.

B&E: On the company’s environment friendly products.
VN: The launch is a part of our sustained mobility programme. We have already launched the Champion CNG and Alpha CNG in light load carrier segment. Now it is the two tonne segment, Bolero Pickup. We have a portfolio of small load capacity vehicles which are propelled by CNG. In the light commercial category these are solutions to a specific issue. Right now the launch is for the Delhi market, followed by Mumbai and Gujrat. As the infrastructure develops, and as the government plays a major role in increasing the CNG reach, we go to other places as well.

B&E: Will CNG be used in the company’s other models?
VN: Once you are strong in a technology you can use it in various segments; so I think we can provide this initiative into the passenger segment as well. We may launch a Scorpio hybrid in the near future.

B&E: On M&M’s market performance.
VN: M&M volumes have grown from 30,000-44,000, a CAGR growth of 20%. This is when the industry grew by only 7%. In pickups, we are the market leaders with 83% market share. Here, Mahindra grew at 77%, a full 33% more than the segment.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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