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compared to some of the ASEAN countries.
Two of your models, Getz and i10 were first launched in India and then introduced in the over seas markets. Why? Is India a good test market for auto manufacturers just as it is for pharmaceutical companies?
That’s not true. India is a very important market for us and not as a test market. You launch products where you have volumes. It’s our commitment to the Indian consumers that we get them the best products ahead of anywhere else. You cannot dub it a “test market” phenomenon, because its impossible to change specs for other markets in a short span. In fact we are trying to do what Apple did with iPhone, give Indian consumers access to global products.
What plans of enhancing your production capacity?
We already have a state-of-the-art plant at Sriperumbudur in Tamil Nadu, which has a capacity to produce 3,00,000 units per annum. And the second plant which has started functioning has doubled the production capacity to 6,00,000 units.
When you first contracted Shahrukh Khan for Santro, we saw a close fit. Today, when both the brand and the star endorser are established players in their own right, haven't you two outlived utility for each other?
Not necessarily. In fact, we saw a lot of potential in taking this association beyond Santro, which is why we have now moved him to i10. I think, we continue to benefit from this relationship.
What’s your reaction to Tata’s Nano?
What can I say? It is an interesting proposition. Nice design. Nice price. Now lets see how it performs on the road.
Hybrid cars are a rage these days. Do you see a future in them?
Honestly no. I have my doubts about the relevance of the technology and whether the customer will pay for it. We have the technology, can even go beyond it, but will people pay a premium for it? You have to bring relevant products to a market. I am not so sure it’s a viable technology for a price-sensitive market like India. Even in the US, the penetration of hybrid models is less than 1%.
Any plans for upcountry market?
We have a dealer network of 230, which we plan to increase to 300 by the end of this year. Assuming that the top ten cities account for 50% of the market, by that yardstick we already cover 95% of it. That said, the up country market also has...
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