The influx of foreign cars bred a flawed marketing strategies. The first to collapse was the theory of middle-class purchasing power. To sell, a car had to target each specific customer out of the crowd and offer him value.Second to fall was the alarmist theory, that the foreigners would take over. True, Maruti’s marketshare has come down from an obscene 80 per cent to 67 per cent, but August and September saw record sales and even when the transport strike hit inventory movement in October, it went up by 24 per cent. Elsewhere in the world, it takes the top half a dozen companies to get a two-thirds marketshare.
In the new wave of cost-consciousness, the domestic car industry has a tremendous advantage. The level of indigenous ancillary support is strong and locals are more at home with market idiosyncrasies. Obsolete technology and outdated models notwithstanding, there is still a market niche for the Ambassador. No wonder Mitsubishi is vying for a stake.