Effective leadership doesn't just happen. You have to happen into it!

Wednesday, May 06, 2009

Kancil Retires; Nano Rises

The nifty Kancil, a Malaysian icon, will be retired next month after more than 15 years of delighting Malaysians with its fuel efficiency and 'tight-spot-parking-friendliness'. Perodua, the maker, has decided to call it a day with this model and position the Viva (basic variant) as it's entry level car. Kancil has done so well that it's maker realized that 'Kancil' has become a better brand than 'Perodua'. A position that most companies would love to be in but not in the auto industry and it was indeed a far-sighted move by Perodua's management to begin branding 'Perodua'. If anybody doubts the popularity of the Kancil, know this : 750,00 Kancils are on the road!

About the same time we see the last of Kancils being rolled out of Perodua's plant in Rawang, the Nano, made by the storied Indian conglomerate, Tata, will be hitting Indian roads. Dubbed by no less than Ratan Tata, as a car for the young generation of India, the Nano will be the first mass-production car in the world with a starting price tag of less than USD10,000. Of course it comes with no air-bags, one windshield wiper, no air conditioning, 3 wheel bolts instead of 4 and will definitely not pass most European countries and America's emission and safety control standards. It may not even pass Puspakom. But then, the Nano is not made for us or for the Americans. It is made for Indians and Indian roads. The Nano will be India's Model T. It will revolutionize Indian industry like what Model T did for the Americans and best of all in the case of India, it is going to impact the 800 million non-middle class Indians. As it is, India's new found prosperity is fulled by it's 400 million plus middle class. One can only imagine what will happen when the other 800 million becomes empowered!

Empowering Indians - that is exactly what the Nano is going to do. Just as the Kancil put car ownership within the grasp of more Malaysians than Proton could ever do, the Nano is going to move Indians like never before and I mean that literally. With the Nano, millions of families will be able to move about regardless of the crazy Indian weather. Which means they can buy more, consume more and spend more. They can travel further for work, leisure and more importantly for their all consuming passion - for education. Nano will spawn thousands of support industries. Rural petrol kiosks, repair shops and a myriad of other related businesses will be fueled by the millions and millions of Nano owners. It will need better rural roads and even more parking space in cities and the burgeoning Indain suburbs. More and more Indians will demand better roads for their Nanos to be driven on and they are going to pressure their elected representatives to do that for them. Car financing and it's related services will experience growth and sophistication like never before. Every facet of Indian life will change with the Nano.

As our own icon rides into the sunset, another will rise on another land. And, who knows what impact this new one is going to have on all of us. I can't help but relate this seemingly unrelated sequence of events to our own manufaturing prowess and its gradual decline; only to be surpassed by countries like Vietnam. Will we once gain loose a clear advantage that we had? After all, does it take a nuclear scientist to ask why we never took the Kancil into Africa? Or, could we have taken the Kancil into the Indian market 15 years ago like how Suzuki ruled that market with the Maruti?

The talk is, there will be a European version of Nano. Did I just hear the Africans want one too? Oh...the world is leaving us behind while we decide who is the rightful Menteri Besar of Perak.

It would seem that nothing ever changes....at least not in Malaysia.