Snap on your seat belts and get ready for the ride of your life. For car lovers in India, 2005 promises to be the best year yet. An unprecedented 30 new cars will hit the roads this year, including 11 new premium luxury cars from such celebrated marquees as Audi, BMW, Ferrari and Alfa Romeo. Says Hormazd Sorabjee, editor, Autocar India: "This is the biggest launch lineup I have ever seen on Indian roads." The rollout in the luxury segment has already begun with Bentley's new Arnage RL, launched this past week with a price tag of Rs 2.5 crore, and the Porche Boxster at a special Indian price. New entrants Audi, Land Rover and Porsche with prices at Rs 30 lakh upwards will set new standards for the top end of the market. Suddenly, India is getting all the variety and attention that have so far been reserved for so-called mature markets in the US and Europe. Says Rajesh Jejurikar, executive vice-president, marketing and sales, Mahindra & Mahindra: "The past two-three years have completely changed the way the world views India. Everybody wants to be here."

STORY OVER DINNER: UP TO RS 5 LAKH

CARS PRICE LAUNCH FEATURES COMMENTS CHEVROLET SPARK Rs 3.5 lakh-Rs 5 lakh Late 2005 1000cc, 64bhp petrol The second-generation Matiz will give GM India a strong foothold in the lower end of the market. CHEVROLET AVEO Rs 4.5 lakh-Rs 5 lakh Late 2005 1400cc, 92bhp petrol Developed by Daewoo, the Aveo is a large hatch in the Getz mould, an urban family car. FIAT PALIO Rs 3.5 lakh-Rs 5 lakh Mid- 2005 1.3-litre, 70bhp multi-jet diesel The Palio will get a fresh face, on the lines of a Brazilian face-lift, along with a new diesel engine. SUZUKI SWIFT Rs 4 lakh-Rs 5 lakh 1st half of 2005 1.3 85bhp petrol/1.6 94bhp petrol/1.3 70 bhp multi-jet diesel Maruti's most modern car in 20 years, the Swift is a good-looking Euro-style hatchback. INFORMATION AND COMMENTS IN ALL TABLES BY HORMAZD SORABJEE, EDITOR, AUTOCAR INDIA

The changing dynamics of the Indian auto market is directly linked to surging car sales. In 2004, passenger vehicle sales overtook the landmark one million figure, making India one of the fastest growing car markets in the world. While the US and Europe are reporting flat or negative growth, India has been witnessing double-digit growth-29 per cent and 22 per cent respectively in 2003 and 2004. Says Vinay Piparsania, vice-president, Ford India: "This growth looks sustainable, stable and consistent."

That confidence is reflected in the models lining up for launch in 2005, spearheaded by mid-sized and luxury sedans. Auto majors will bring in new and globally successful cars like the Honda Civic, Ford Focus and Skoda Fabia to perk up sales. The growing popularity and mass appeal of SUVs have sparked a rush in this segment with at least seven models, ranging from Rs 6 lakh to Rs 35 lakh, planning their debut in the next few months. They include the Toyota Innova, the Qualis replacement, Mitsubishi's Montero, the Ford Ranger and Hyundai's Tucson. For those looking to make a personal statement, there is also the Land Rover/Range Rover, arguably the most luxurious SUV available, and the BMW X3, the upscale sports activity vehicle.

But perhaps the best news for a majority of Indian car buyers will be the launches planned in the extremely competitive compact segment. Fiat will try to claw back into market contention with a new-look upgraded Palio, while General Motors (GM), in a hurry to strengthen its clout on the Indian car market, is planning to relaunch the Daewoo Matiz as the Chevrolet Spark. In fact, premium hatchbacks seem to be the flavour of the year despite the lukewarm response to Hyundai's Getz. General Motors and Suzuki are expected to launch the Chevrolet Aveo and Swift respectively later this year in the Rs 4-5 lakh price range.

MID-SIZE & LUXURY SEGMENT: RS 5 LAKH-RS 20 LAKH

CARS PRICE LAUNCH FEATURES COMMENTS FORD MONDEO Rs 16.5 lakh-Rs 17.5 lakh 1st half of 2005 1999cc, 145bhp petrol/1998cc,113 bhp diesel It will launch an assault on the luxury-car segment. It will be assembled in India. NEW HYUNDAI SONATA Rs 13 lakh-Rs 15 lakh Late 2005 2656cc, 166bhp petrol The replacement is a far more conservative-looking but handsome beast. NEW SKODA OCTAVIA Rs 14 lakh Mid- 2005 1896cc, 103bhp turbo-diesel The all-new Octavia is more spacious and even more refined and talented. MITSUBISHI CARISMA Rs 10 lakh-Rs 12 lakh Late 2005 1999cc, 120bhp petrol Mitsubishi's European mid-sizer will compete against the Corolla. SKODA FABIA 7.5 lakh Mid-2005 1896cc, 90bhp turbo-diesel The long-delayed Fabia is a high-quality rival to the Ikon and Accent. HONDA CIVIC 10 lakh-Rs 12 lakh Mid-2005 1668cc, 120bhp VTEC petrol The Civic will slot in between the City and Accord, against the Corolla.

Adding extra fizz, 2005 will not be about just new models alone but also about new auto companies making their India debut. Renault is in talks for a joint venture with Mahindra & Mahindra to bring in its cars starting with the Logan (expected to be priced at Rs 3.5-Rs 4 lakh), while Japanese auto major Nissan, having launched its X-Trail SUV, is considering setting up a manufacturing facility and outsourcing base in India. At the high-end segment, companies like Audi, BMW, Ferrari, Land Rover and Alfa Romeo see a niche but growing market for their high-priced cars.

The Indian car market is also undergoing significant structural shifts. The increase in double income, two-car families, rising disposable income, changing lifestyles with greater need for mobility for work and pleasure have expanded the boundaries of car ownership in the country. Accelerating the process were the lowering of customs and excise duties, which have made cars cheaper, and the easy availability of low-interest auto financing. Today, over 80 per cent of all vehicles sold in the country are financed. Car upgrades have become frequent and multiple car ownership is becoming the norm. Says Neeraj Bhatia, general manager, TNS Automotive: "Today, cars are status symbols. Constant launches, innovative features and marketing will be the key."

The likely reduction of customs duty (on completely-built-units) and excise duty in the forthcoming budget is going to keep demand buoyant. Going by current plans, the car majors see a smooth ride ahead. Honda, General Motors and Ford are raising production levels. Tata Motors plans to spend Rs 5,200 crore on new products and capacity expansion. Suzuki Motors, along with Indian subsidiary Maruti, aims to invest Rs 6,000 crore in the next five years to set up a new diesel engine plant, a gearbox production facility and for new car launches. The Society of Indian Automobile Manufacturers (SIAM) estimates that auto majors will invest Rs 25,000 crore in the next five years. Says Dilip Chenoy, director-general, SIAM: "There is an all-round optimism. From new launches, sales, capacity expansion, export thrust to hiring, it is the busiest season for the auto sector."

UTILITY VEHICLE & SUVS: RS 5 LAKH- RS 35 LAKH

CARS PRICE LAUNCH FEATURES COMMENTS TOYOTA INNOVA Rs 7 lakh-Rs 9 lakh 1st half of 2005 1998cc, 136bhp petrol The brand new and advanced Innova replaces the Qualis, and will provide a very high-quality offering in the class, with modern technology. HYUNDAI TUCSON Rs 13 lakh-Rs 14 lakh 1st half of 2005 1991cc, 112bhp turbo-diesel Hyundai's answer to the CR-V is civilised and sporty, with a CRDi engine to boost its appeal. FORD RANGER Rs 11.5 lakh-Rs 13 lakh Mid- 2005 2499cc, 112bhp turbo-diesel The pickup brother of the Endeavour is a large, rugged workhorse, but also works well as a macho lifestyle vehicle. MITSUBISHI MONTERO Rs 17 lakh Late 2005 2500cc, 98bhp turbo-diesel Replacing the Pajero 2.8, the Montero goes up against the Endeavour, with a similar engine and truck origins, along with superb off-roader ability. TATA SAFARI Di Rs 9 lakh-Rs 10 lakh 1st half of 2005 2.2-litre direct-injection diesel To meet Bharat-III norms, the Safari will get a more powerful CRDi engine and a cosmetic face-lift.

General Motors and Ford have suddenly woken up to the potential. "We made a slow beginning but we see a big market here," says P. Balendran, vice-president, General Motors India. GM's buyout of Daewoo Motor has given it access to a portfolio of small cars. Chevrolet Spark will, the company hopes, help it become a volume player in the small-car market.

India's low-cost, high-quality manufacturing also seems to be getting its due. Auto-component exports have already crossed $1 billion (Rs 4,500 crore) while car exports stood at 1.64 lakh units. Ford, GM and Toyota are sourcing auto components from India and plan to significantly upscale in the future.

Eventually, however, it is good news for car buyers. With close to 50 models on Indian roads, the competition is getting fierce. Says N.K. Goila, vice-president, Honda Siel: "Costumer satisfaction will become the differentiating factor." More companies will follow the Maruti model which today offers a one-stop shop-auto financing, accessories, insurance, second-hand trade-ins and even driving lessons. Maruti's latest marketing ploy is to tie up with dealers across the country to offer driving classes.

IMPORTS: RS 30 LAKH-RS 72 LAKH

CARS PRICE LAUNCH FEATURES COMMENTS AUDI A6 Rs 40 lakh 1st half of 2005 2976cc, 225bhp turbo-diesel Audi's E-class rival is huge, luxurious and very hi-tech, with striking looks and some great engines. PORSCHE BOXSTER S Rs 47 lakh 1st half of 2005 3179cc, 276bhp petrol Launched at special Indian prices, the Boxster S is one of the world's best-handling cars, the "cheap" alternative to a 911. LAND ROVER RANGE ROVER Rs 65 lakh-Rs 72 lakh Mid- 2005 4.4 litre, 282bhp petrol Huge, powerful, beautiful and luxurious, the Range Rover is the SUV equivalent of a luxury limousine. BMW X3 Rs 30 lakh-Rs 33 lakh Late 2005 2494cc, 192bhp petrol The X3 offers much of bigger brother X5's skills for less. Quirky styling apart, it is a true BMW, with great engines and handling. MERCEDES BENZ E-CLASS Rs 36 lakh-Rs 39 lakh Mid-2005 3724cc, 230bhp petrol The E-class will get new engines, including the S350's petrol V6, and more powerful petrol and diesel options.

The variants and upgrades will only become more intense. Toyota will replace its successful Qualis with the Innova. Maruti 800 has a new look and the WagonR now boasts airbags and abs braking systems. Honda City, re-launched in 2003 with a sleek, new modern design, will again get a boost with a VTEC version this year.

As competition hots up, consumers can look forward to offers of new features and accessories. Automatic transmission, tubeless tyres, the latest audio systems, air bags, keyless entry-car majors are betting on new features to grab the customers' attention. It is a strategy that worked in 2004. Lot of relaunches, face-lifts and price cuts infused new life and boosted sales for many old models. Ford Ikon Flair, GM's Corsa-all managed to keep sales moving while Maruti's new-look Esteem emerged as the largest selling sedan after Tata's Indigo. With new launches, industry experts also expect new product segments to emerge. "The portfolio of crossover vehicles will grow," says Anang Dev Jena, head, Synovate Motoresearch. He feels that the appeal of premium hatchbacks like Getz and the Swift lies in the combination of the comforts of a sedan with the compactness of a small car. India's rural market will spur demand for suvs which offer the comfort of a sedan and the toughness of an off-roader. Future car showrooms will get bigger with enough space for test-drive tracks and sales-spares-service all under one roof.

Growth in business is something that nobody doubts. Unlike China, the Indian car industry appears to be on a fairly stable and consistent growth path and has acquired a momentum of its own. "There can be two things that can make the car market sizzle or growth dramatic-the entry of Tata's Rs 1 lakh car or a sharp reduction in excise duty," says Arindam Chaudhuri, vice-president and director, The Boston Consulting Group India. Neither looks likely at least in the next two years. Meanwhile, the outlook is decidedly upbeat: the very fact that 30 new models are arriving at a showroom near you is testimony to the auto industry's confidence in the future. As for the customer, he is going to be like a kid in a candy store, except there is going to be some pretty expensive candy on display.

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