The long-awaited reclassification of passenger cars has brought in a great deal of confusion between the car makers and the Society of Indian Automobile Manufacturers (SIAM).
Car makers are continually pushing for a better classification in terms of car length, engine displacement and horsepower but SIAM has only considered car length. SIAM reclassified car models on the basis of lengths.
Car makers are outraged because they feel that if the classification criteria for segmentation changes, it will directly affect the car market shares. This is mainly because if cars are classified based on length, Maruti 800 will lead the segment. Because, if reclassification is done on the basis of car length then Maruti 800 will be the only car to fall under the first segment that classifies cars of up to 3.4-metre as A1. This will definitely affect the market share positions.
Labels: car makers, indian automobile Industry, Maruti 800
2 Comments:
I dont know why SIAM is considering only the length even other factors also need to be taken care of. There will be a huge market share loss if this happens. Something should be done and they should be reclassified and provide better classification to the auto makers.
By considering the length of the car to reclassify passenger cars, I think SIAM is doing injustice to car manufacturers. Obviously, Maruti will gain by leading the segment with its Maruti 800, but what about the other car makers? Is SIAM favoring Maruti? I don’t know whether I should say this or not but that's something that has actually come to my mind. Just think, at present Maruti 800 is the only car falling in the A1 car segment.
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