Re: Kia achieves operating profit in just 1 year Quote:
Originally Posted by vsrivatsa I would like to add that Kia could not have done this without the Knowledge Transfer and Resource Transfer from Hyundai. Hyundai backed them up in every step and provided the know-how of the Indian market which Kia was fortunate to receive. |
+1
That's the key here! And also the fact that Kia is extremely aggressive and street smart. I have said this before, they are a late entrant to this market. So, they knew very well that their cars will get pulled up by GNCAP. Yet, they went with their main objective - profitability above all. That shows a mentality very few can muster!
I usually do not comment on YouTube, Maybe here or there for international reviews. But hardly for the Indian cars or brands. But when I got the notification for the crash test results for the Thar, it was a pleasant surprise and I was buzzing after watching the video. Because the sight of the mighty muscular Scorpio crumbling like a pack of potato chips is still fresh in my mind. So, I did make a comment under the GNCAP video asking both Maruti and Hyundai/ Kia to learn from Mahindra. And guess what, I got some replies for my comment - in both English and Hindi. The gist of it was like Seltos is 3 stars and not that far away - So, it is okay! I didn't bother to reply.
Maybe Hyundai/ Kia know the market too well!! And that all these hullabaloo within pockets about the crash ratings will pass and that isn't going to affect sales in the long run. Maybe that score of 8.03 wasn't by chance! Maybe the question on the drawing board was, "How can we get 3 stars with the minimum hit on profitability??" Maybe Genesis will be primed to hit profitability in 6 months!! Quote:
Originally Posted by SmartCat According to this article, Gross profit = Raw materials/Components + Employee costs.
So wow! Gross profit of Maruti (approx 25%) is higher than that of Toyota, VW, GM, Ford, BMW & Mercedes Benz!
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I haven't read the article or any reports, but it is not really a surprise to see the high profitability for Maruti when compared to the others you have listed there.
From a fair distance, I can see that each and everyone of them blow a significant amount of money on:
1) R&D
2) Motorsports
3) Building each car (material quality + craftmanship + material quantity even)
All that affects profitability. And they have to do it - that's non negotiable to sell in the advanced markets. But our market doesn't hold the manufacturers (successful ones i.e.) to the same level of scrutiny and they can get away with it. Guess, each market gets the makers that it deserves!
Just think about it! A large pool of customers were shortchanged by some manufacturers regarding safety. And within a few days we have news celebrating the giant killings made by the brand within such a short time period. This would be another PR disaster for any other market, but over here, we still go gaga over it! It looks like some of them can get away with anything in this country as long as they are successful. I guess that's our culture. |