Arun Intercontinental Traders ( AIT ) , A an automotive wing of Chaudhary Group of organisation in Nepal, is providing its greatest car merchandises and services for about three decennaries and is exclusive authorised distributer of Suzuki Motor Corporation, Japan and Maruti Suzuki India Limited, India. The company dominates Nepali car market with about 27 % market portion ( Appendix 1 ) more exactly enjoys monopoly in A1 ( Mini ) and C ( Van ) merchandise sections as per industry beginning in Appendix 2. Despite company ‘s widest web, best antiphonal staffs and merchandises handiness, AIT is still behind in perforating A2 ( compact ) and A3 ( midsize ) sections, which is jointly the most moneymaking market section with 61 % market portion. AIT could avail this as an chance to specialise in peculiar section and present two new theoretical accounts A-Star and Swift Dzire for better market portion and competitory advantage. Although, dominant participant like Hyundai has its supreme clasp in A2 section, virtually commanding market with 49 % , AIT manage to keep 27 % with its available theoretical accounts like Alto, Zen, WagonR and Swift, which is assuring ( Appendix 3 ) . Further, increasing client ‘s demand for A3 section is another chance to present new theoretical account Dzire, readily available from Principle Company.
A2 and A3 sections besides deliver amassed client profile within income bracket of NRS. 30-50 1000 and age group from 25-60 old ages old. Professionals like physicians, applied scientists, instructors ; employees like bankers, authorities officers ; little and medium concern endeavor proprietors ; affluent society members like Gurkhas, Sherpas ; and households with foreign remittance income all autumn under the profile. Based on the market analysis, two new theoretical accounts are targeted for given market section.
AStar, a compact auto peculiarly designed maintaining in head the immature coevals has extraordinary power and flawless control and manner that make caputs turn. Within the A2 section, primary mark market will be savvy people of age group of 25-40 holding center to upper income degree, sooner unmarried or late married with individual or no kid and presently a two Wheeler or mini users. Secondary client mark is college pupils who need manner and velocity. Similarly, its concern mark is midsized to big sized corporate that want to assist directors and employees by supplying a auto as periphery benefit.
Dzire, a luxury saloon is complete solution for those looking for striking expressions, epicurean insides, best characteristics, lowest care, first-class handling and baggage infinite and reassuring safety characteristics. Hence, it belongs to A3 section chiefly aiming PMEB ‘s with income bracket of NRS. 30-50 1000 and age group of 30-60 old ages old. Basically, a mid-sized household looking for a auto that besides reflects their societal position are the right pick. More significantly, bing auto users of assorted trade names seeking to upgrade or troubled with after gross revenues serves are besides a right mark. Its concern mark is midsized to big sized corporation and institutional gross revenues.
As of now, many auto makers from India, Malaysia, Japan, Korea and Europe are stand foring to fulfill the increasing demands of Nepali urbanites. There is a explosion in car market due to figure of grounds like easy bank loans, import prohibition on reconditioned autos and heavy one-year revenue enhancement on 20 old ages old vehicles. The figure of autos in the metropolis has gone up from 41,677 in 2095/2096 to 113,391 in 2009/2010[ 6 ].
The major market strength is the combination of A1, A2, C and H1. Whereas, A1 and H1, the entry degree bears cheaper operating cost, but A2 still consist half of market portion given its amassed monetary value sensitive client base. Recently, there is a new rush in demand for epicurean midsize among A2 users looking for an ascent. Unfortunately, A2 users are constrained to exchange between trade names due to high monetary value difference with offered A3 and A4 sections. The overall competition is hence concentrated on A2 section.