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Daewoo guns for larger market share

Feb 17, 2000

Daewoo Motors has firmed up aggressive plans to grab a larger pie of the Indian auto market. To this end, the company is launching a stripped down version of the Nexia. Daewoo of South Korea has a presence in the country through its subsidiary Daewoo India. The 'Cielo', 'Nexia' (mid-car segment) and 'Matiz' (small car) are Daewoo's flagship brands in the Indian market.

Daewoo is hopeful of enhancing market share with the Nexia variant, although it is unlikely if just one model can help it boost market share. The price of the variant is yet to be finalised, and that could play an important role as a lot of recently launched models like the Ikon (Ford) and Accent (Hyundai) have registered strong sales largely due to an attractive price tag hovering at slightly below Rs 500,000. Daewoo also plans to introduce another low-end model in the mid-sized car segment.

The company has outlined ambitious plans to enhance small car market share from 14% at present to over 28% by July 2000. The company is restrained by lower production levels and has initiated steps to enhance production level to over 7,000 by July 2000 from 4,500 at present.

It is also launching compressed natural gas (CNG) version of the Cielo, the first of its kind in the country. The model will be introduced in Delhi for commercial users. It launched the Millennium Matiz in three variants. It has lined up a series of new vendors in anticipation of the larger output once production levels are enhanced.

Daewoo certainly seems to have a focussed plan to push market share. It is launching models/variants at regular intervals to boost sales, but then so are its competitors - Maruti, Tata Engineering and Hyundai. The going will be far from easy for Daewoo. But if current events are any indication it will definitely make a dent in Maruti's market share, although some of the market share targets it has set for itself may seem a little ambitious in the short term.

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