PUNE, Feb 4: The Kinetic 500cc car has potential in the export market, primarily at beach resorts, according to the findings of an international consultant appointed by Kinetic Engineering Ltd (KEL). KEL chairman and managing director Arun Firodia said that the consultant had identified three potential markets for the car.Among the markets identified by the consultant are the Bahamas, Malaysia and the US. Firodia added that the beach use of the car, from the hotel to the beach, could be extended to the tourist destinations along the Mediterranean coast as well.
The consultant has identified the car for working women in Malaysia, retired people in the US and for beach use in the Bahamas. Firodia said that the tourist market offered the best scope.
Indicating that a franchisee network would be created, which would assemble the car and market it as well, Firodia said that KEL itself has not made major investments for the car and would not expect its franchisees to invest heavily either. He projected salesof a few thousands in such markets.
While Firodia kept harping on the domestic market, he admitted realisation would be higher in exports. Besides, the car fits in with the western market where perceptions about change of cars are different from those in India.
Domestic dealerships would be finalised as production proceeds. It is expected that the dealerships would be firmed up by July although Firodia said it was linked to the phased step-up in production. However, there will be just one dealer for Pune, while there will be three in Mumbai.
The cut-off point for dealerships would be cities with populations over 5 lakh. However, he said, the main worry was over the setting up of workshops at the dealers' since a car workshop required greater expertise than a two-wheeler.
Some of KEL's existing two-wheeler dealers could take up car dealerships as well, but the showrooms would have to be separate. The two oldest KEL dealers in Pune will not take up car dealerships since one has taken up the Honda City(Bafna) and the other has the Telco car (BU Bhandari).
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
