Question

In the post lockdown scenario it is expected that with economic activity slowing down, impacting buying power of consumers, demand will shift towards smaller cars or low price cars and first time buyers. MarutiUdhyog Ltd.(MUL) is faced with a dilemma. If it retains its present level of profit margin, it will continue to lose its market share and if it cuts down the price to retain the demand for its car and its market share it loses the profit volume. What in your opinion should be the objective of MUL.

Answer 1

Answer:

this is on lockdown

Explanation:

this question is which class

Answer 2

Answer:  

• The exceptional coronavirus emergency has pounded the automobile business internationally and India isn't out of that situation.

• The emergency has gouged the automakers' business graphs harshly, however it will likewise make new typical in the business.  

• Since the coronavirus emergency has developed, a few auto specialists have been showing that in the post-COVID-19 period, purchaser inclination for purchasing vehicles, utilizing ride-hailing administration are going to change fundamentally.

• Individuals would concentrate more on claiming individual vehicles, while the worry about spending on optional merchandise will likewise assume a key job in dynamic for them.  

• This circumstance will help in expanded volume for little vehicle deals, rather than concentrating on bigger cars or SUVs. This new pattern is required to bring back the fortune of little vehicles in India as a few automakers could concentrate on the mass-advertise section.  

• The adjustments in buyer conduct including cleanliness awareness and constrained purchasing are going to impact the vehicle purchasing choices in the coming days.  

• "Buyers would need to play safe as far as brands and could normally like believed brands like Maruti Suzuki and Hyundai," said Jay Kale, Vice President, Equity Analyst, Auto and Auto Ancillaries, Elara Capital.  

• Maruti Suzuki and Hyundai Motor India Ltd (HMIL), two of the greatest partners in the Indian traveler vehicle showcase, with mastery on little vehicles have opportunity to turn into the greatest recipients in the post-COVID-19 time. Additionally, their longstanding set up brand name also will support these two automakers. "  

• Maruti Suzuki by and by has little vehicles like Alto, WagonR, Celerio and S-Presso in its armada, while its South Korean rival has Santro and Grand i10.  

• The previously mentioned four mass-advertise models from Maruti Suzuki sold 4,67,125 units in FY20, out of the automaker's 14,14,346 units recorded in the equivalent financial. Then again, Santro and Grand i10 consolidated, sold 1,51,206 units in the last monetary, out of Hyundai's 4,85,309 units enlisted in a similar period.