As the first automobile industry, Hulas Motors Pvt. Ltd, owned by the Golcha organization, started its journey in 1996. With an investment of 4 million they have so far produced five types of motors which have been listed as
Big Cargo (Commercial use)
Small Cargo (Commercial use)
Nano (2 + 1 Seater)
City (4 + 1 Seater)
Battery
Among these, the Hulas Mustang and Hulas Sherpa were considered their flagship products. (motors, 2017) With a retail price of 14 to 18 lakhs this was a Nepal made SUV that was powerful enough and designed to go off road, had a diesel engine and middleclass Nepalese could afford. With over 14 dealers and over 150 service centres the vehicle sale had risen to 1,400. (News, 2011)
An unexpected turn of events in 2011 took place when the then Prime Minister endorsed the Nepal made vehicle. "New Nepalese PM Baburam Bhattarai has spurned the opportunity to travel in a luxurious car and has instead chosen an unglamorous vehicle assembled in Nepal. (Dhakal, 2011)” This step by then Prime Minister, was a big promotional boost that even Hulas motors had not anticipated.
Thus referring to the 4Ps of Marketing, i.e. Product, Place, Price and Promotion, Hulas motors had everything going for them. They had a good product, it had aesthetic value as it was built in Nepal, had a competitive price yet was low enough for middle class families to purchase and as for promotion, who better than the head of the state endorsing the product as a genuine made in Nepal. The product was customer centric, as people could afford it and goods could be transported to the remote places even off road. They even had a shared vision. "Industry analysts say that billions of rupees spent every year on importing foreign vehicles could be saved - and hundreds of jobs created - if more of the vehicles were bought in Nepal. (Dhakal, 2011)”
But one crucial thing that Hulas Motors missed was the quality of the vehicle. Quality meaning the smoke emitted by the vehicle was not up to the standard as demanded by the Government. Nepal government had levied EURO III as the standard to be maintained by vehicles. "According to Managing Director Das, the government had given the Company two years to fulfil the Euro III standard but it had asked for an extension by a year, which was rejected. (Setopati, 2011)”
A very innovative and a product that was made in Nepal failed since it was not able to meet the emission standard. New innovation thus have to look into all aspect of the product before launching. All factors of both micro and macro environment and its implications have to be brainstormed. The R&D needs to work on an engine that can meet the emission standard and perform equally well on the road. The company can still initiate a new project to launch this product as it cannot be considered a dead product. A new attempt has to be taken for a new prototype that needs to be cleared on all standards set by the Government of Nepal before bring launched into the market.
As the first automobile industry, Hulas Motors Pvt. Ltd, owned by the Golcha organization, started its journey in 1996. With an investment of 4 million they have so far produced five types of motors which have been listed as
Among these, the Hulas Mustang and Hulas Sherpa were considered their flagship products. (motors, 2017) With a retail price of 14 to 18 lakhs this was a Nepal made SUV that was powerful enough and designed to go off road, had a diesel engine and middleclass Nepalese could afford. With over 14 dealers and over 150 service centres the vehicle sale had risen to 1,400. (News, 2011)
An unexpected turn of events in 2011 took place when the then Prime Minister endorsed the Nepal made vehicle. "New Nepalese PM Baburam Bhattarai has spurned the opportunity to travel in a luxurious car and has instead chosen an unglamorous vehicle assembled in Nepal. (Dhakal, 2011)” This step by then Prime Minister, was a big promotional boost that even Hulas motors had not anticipated.
Thus referring to the 4Ps of Marketing, i.e. Product, Place, Price and Promotion, Hulas motors had everything going for them. They had a good product, it had aesthetic value as it was built in Nepal, had a competitive price yet was low enough for middle class families to purchase and as for promotion, who better than the head of the state endorsing the product as a genuine made in Nepal. The product was customer centric, as people could afford it and goods could be transported to the remote places even off road. They even had a shared vision. "Industry analysts say that billions of rupees spent every year on importing foreign vehicles could be saved - and hundreds of jobs created - if more of the vehicles were bought in Nepal. (Dhakal, 2011)”
But one crucial thing that Hulas Motors missed was the quality of the vehicle. Quality meaning the smoke emitted by the vehicle was not up to the standard as demanded by the Government. Nepal government had levied EURO III as the standard to be maintained by vehicles. "According to Managing Director Das, the government had given the Company two years to fulfil the Euro III standard but it had asked for an extension by a year, which was rejected. (Setopati, 2011)”
A very innovative and a product that was made in Nepal failed since it was not able to meet the emission standard. New innovation thus have to look into all aspect of the product before launching. All factors of both micro and macro environment and its implications have to be brainstormed. The R&D needs to work on an engine that can meet the emission standard and perform equally well on the road. The company can still initiate a new project to launch this product as it cannot be considered a dead product. A new attempt has to be taken for a new prototype that needs to be cleared on all standards set by the Government of Nepal before bring launched into the market.
References
Dhakal, S. (2011, August 31). PM Bhattarai praised for choosing Nepal-made Mustang. Retrieved from BBC News: bbc.com/news/world-south-asia-1472...
motors, H. (2017). Hulas motors. Retrieved from Hulas motors: hulasmotors.com/index.php
News, L. N. (2011, Jan 11). Hulas motors closed due to Euro III standard. Londan Nepal News , p. 1.
Setopati. (2011, January). Mustang manufacturer Hulas Motors closes production. Retrieved from Setopati: archive.setopati.net/business/5059/