Daewoo Motor India Ltd (DMIL) has postponed plans to launch three new luxury cars
in India this year, the Business Standard newspaper said.
DMIL announced in March that it would import and sell three new cars in 2001
– the Magnus (Leganza), Nubira II and Lanos II.
Go deeper with GlobalData
But, the newspaper said, DMIL’s newly appointed managing director and
CEO, Young-Tae Cho, now says that import duties are still very high and it may
not be the right time to launch.
“The cost of the imported cars will be too high if we go through the [completely
built up] route,” Cho told the Business Standard.
“We are now studying the market to identify the segment in which to launch
our new car. We will have firmed up our plans in the next couple of months.”
While Daewoo was expecting a reduction in import duties when its previous Indian
managing director announced plans for the new cars last March, the Indian government
instead increased duties on CBU models to 120%.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
Profit margins on these cars are slim and the Daewoo management won’t
risk launching them without the promise of decent sales volumes, the Business
Standard said.
The newspaper added that sales of DMIL’s volume seller, the 800 cc Matiz city
runabout, have declined over the past few months, mostly due to consumer apathy
stemming from the ailing financial health of the South Korean parent company.
To view related research reports, please follow the links The Automotive |
