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     CURRENT ISSUE SEPTEMBER 04, 2006
 
    BUSINESS & ECONOMY: HOT WHEELS
 
Auto Invasion

With 11 companies offering over a 100 models and the buzz that another 30 will be hitting the road this year, the auto customer's choice is bound to expand. The reason for the surfeit: Carmakers are zooming in on India which is poised to become a three-million passenger car market by 2010.
 

Nitin Chaudhary is caught in a bind. In the market for a new car, the 25-year-old chief executive of a travel and placement firm is faced with a plethora of choices. What's more, his choice is all set to expand further. As of now, there are 11 companies offering over a 100 models, including the numerous variants like petrol/diesel et al, of which 10 models were introduced just last year.

THE PREMIER LEAGUE

PORSCHE 911
There's a lot to be said about the car's technology but it's all underscored by its sheer sex appeal
Rs 1.1 crore

MERCEDES S CLASS
The best known car manufacturers recently unveiled the newest variant of the S350 in India
Rs 72.3 lakh

LAMBORGHINI
The outrageously powerful Gallardo can go from zero to 100 kmph in 4.2 seconds flat
Rs 1.6 crore
*Figures denote the total sales of passenger vehicles annually
Price estimates courtesy Autocar India

This year, the Rs 1,44,000-crore automobile industry is abuzz with suggestions of another 30 hitting the road, ranging from high-end beauties like the Porsche 911 Turbo to smaller cars like the Aveo UVA to utility vehicles like the Audi Q7. The reason all these carmakers are racing to drive into India is because the country is one of the world's fastest-growing markets. Sale of passenger vehicles grew from 6,75,116 in 2001 to 11,43,037 last year. By 2010, India will be a three-million car market. As Ford's vice-president for marketing, sales and service Scott McCormack puts it, "If you want to make it big in the global market, you have to be a player in India."

TALK ABOUT UTILITY

AUDI Q7
Its biggest USP is that it is a 7 seater, the only of its kind in India, built to suit Indian roads
Rs 56-65 lakh

MERCEDES M CLASS
This was designed more for on-road refinement than off-road performance
Rs 55-62 lakh

MONTERO
The terrain-bashing Mitsubishi SUV is said to be a face-lifted version of the popular Pajero
Rs 29.7 lakh

The year got off to a flying start with the launch of big names like the Honda Civic, the Chevrolet Aveo and the Lamborghini Gallardo. Whichever way we look at it, 2006 is the most happening year since India hit the big league three years back aided by rising disposable incomes and lucrative financing options. Dilip Chenoy, director-general of the Society of Indian Automobile Manufacturers, says, "In the first four months of 2006, car sales have already seen a growth of 24.86 per cent." Big players like Mahindra & Mahindra (M&M), General Motors and Tata Motors-Fiat have announced huge investments in Maharashtra within the last month alone.

ON THE ROADS
The various car models, not including the variants, now available in India

Less than Rs 3 lakh

MARUTI 800, ALTO, OMNI
REVA

Rs 3-7 lakh

AMBASSADOR
FIAT PALIO, PETRA, SIENA & ADVENTURE
FORD IKON & FIESTA
CHEVROLET AVEO, OPEL CORSA & SWING
HYUNDAI SANTRO, GETZ, ACCENT
MARUTI ZEN, WAGON R, VERSA, ESTEEM, GYPSY, BALENO, SWIFT
TATA INDICA, INDIGO & SUMO
SAN STORM
MAHINDRA BOLERO

Rs 7-15 lakh

HYUNDAI ELANTRA
FORD MONDEO & ENDEAVOUR
CHEVROLET OPTRA, FORESTER & TAVERA
HONDA CITY, CIVIC & CR-V
MITSUBISHI LANCER & LANCER CEDIA
SKODA OCTAVIA CLASSIC & COMBI
TOYOTA COROLLA & INNOVA
MAHINDRA SCORPIO
TATA SAFARI

Rs 15-30 lakh

MARUTI SUZUKI GRAND VITARA
HYUNDAI SONATA EMBERA, TERRACAN & TUCSON
MITSUBISHI PAJERO
HONDA ACCORD
AUDI A4
MERCEDES C CLASS
NISSAN X-TRAIL
SKODA SUPER, LAURA
TOYOTA CAMRY
OPEL VECTRA

Rs 30-90 lakh

AUDI A6, A8 & TT
BMW X5, 5 SERIES & 7 SERIES
MERCEDES E CLASS, S CLASS, SLK, SL & CLS-CLASS
PORSCHE BOXSTER, CAYENNE, 911 CARRERA & CAYMAN S
TOYOTA PRADO

Rs 1 crore plus

BENTLEY ARNAGE, CONTINENTAL GT & FLYING SPUR
ROLLS ROYCE PHANTOM
MAYBACH

According to Hormadz Sorabjee of Autocar India, "The market currently is dominated by Maruti, Tata Motors and Hyundai. But things are poised for a quantum leap in the next five years and the core sector will be the small car segment." Recognising the growing demand for small cars in a country where only seven in every 1,000 people own a car, makers are focusing on the lucrative small car market which occupies 60-70 per cent of the total car market and is estimated to grow by 10 per cent. Toyota Kirloskar reportedly has a new model for India on the drawing board. Honda's president and CEO Takeo Fukui says the company has "already begun investigation into a new model, smaller than the City ZX." Then there is the long-awaited Chevrolet Spark. According to P. Balendran, vice-president, General Motors, the Spark is expected to be launched in early 2007.

THE IN-BETWEENS

SKODA FABIA
The new and improved Fabia is expected to hit the road by the end of this calendar year
Rs 7 lakh

HYUNDAI VERNA
The mid-size sedan, when launched, will be slotted between the Accent and the Elantra
Rs 6.5-7 lakh

INDIGO XL
This one surpasses sedans in the premium and luxury segments for its rear seating space
Rs 6 lakh

Not to be outdone, European carmakers are also shifting gears. If the buzz is to be believed, Volkswagen's New Beetle is knocking on the door. Then Renault is tying up with M&M to launch the Logan, while Fiat plans to launch the Grande Punto this year together with Tata Motors. All these plans tie in neatly with the Government's goal to make India a global manufacturing hub for small cars. The decision to cut excise duties on small cars in the Union Budget was a step in this direction.

SMALL WONDERS

FORD FUSION
Cool new features include a distance-to-empty indicator
Rs. 5.69 lakh

MARUTI SWIFT DIESEL
The diesel variant will help Maruti get a toehold in this segment
Rs. 5.5 lakh

GRANDE PUNTO
Fiat has pinned its revival hopes on this joint venture with Tata Motors
Rs. 4.5 lakh

MAHINDRA LOGAN
This one will mark Renault's first foray into the country
Rs. 4.5 lakh

CHEVROLET SPARK
General Motor's "cute little car" is not just a new and improved Matiz
Rs 3.5 lakh
Price estimates courtesy Autocar India

As car showrooms become windows of a globalised India, manufacturers are battling it out for a parking space in the market. And Indians are loosening the purse strings like never before. The upcoming Audi Q7, costing Rs 65 lakh, is already booked out for this year-20 bookings in Delhi alone, crows Amit Sachar, assistant manager, Euro Motors. Also, as a 2005 study by TNS Automotive revealed, there is a reduction in car ownership cycle-time from 61 months in 2002 to 53 months in 2005. So to hang on to the existing customers, manufacturers are going all out with referral bonuses, priority servicing, discounted driving lessons and more. If Maruti and Honda are taking the exchanged car route, Toyota Kirloskar has tied up with ICICI Bank to launch India's first automobile credit card. On the other hand, Ford is cashing in on its Car Gainz offer with rewards of service and maintenance.

"If you want to make it big in the global market, you have to be a player in India."

SCOTT MCCORMACK, VP, MARKETING, SALES AND SERVICE, FORD

"The market is dominated by three players now but things are poised for a quantum leap."

HORMADZ SORABJEE, EDITOR, AUTOCAR INDIA

"Launching the new S-class parallel to its US launch demonstrates our commitment to India."

WILFRIED AULBUR, MD & CEO, DAIMLER-CHRYSLER INDIA

There is a lot to be expected in terms of features too-be it an output of 480 BHP at 6,000 revolutions per minute like the 911 Turbo boasts of, or enhanced safety checks like Montero's collapsible propeller shaft, which collapses in case of an accident, ensuring that it does not enter the passenger cabin even in worst of situations, or a state-of-the-art stereo system like the Bose surround sound system in the new Audi Q7 with a digital sound processor, 14 speakers together with a large subwoofer, and a digital audio tuner. This not to say that the small and medium-range cars are not becoming innovative. The new Swift, with a diesel engine, is expected to reach 100 kmph in 14 seconds and attain a top speed of 165 kmph.

Given high petrol prices, companies are offering economic options. In the coming months, there will be a brand new diesel car on offer, no matter what your budget-be it the Fiat Punto, the Indica or the Santro. Maruti, the country's biggest player, too is readying to roll out its first diesel car by the end of 2006 or early 2007. The engine technology for the new car was bought from the collaboration between Fiat and Adam Opel, and a plant is being set up in Manesar, Gurgaon. Hyundai is expected to launch a CNG version of the Santro. By September, Ford lovers can expect the all new CNG Ikon. Before long, others too will join the green bandwagon.

What all this means is that all of a sudden auto aficionados in India find themselves in the enviable position where they can sit tight and play inky pinky ponky, while carmakers all but turn cartwheels for them. On a more sober note, auto giants complain about the glaring lack of infrastructure in the country, a sure indicator that the Indian automobile market may be dynamic but it is not mature.

There is also the X-factor called growth. While growth is good now, manufacturers could apply brakes if the economy slows due to global tensions and soaring crude oil prices. Eventually the market will decide. And the decision may well be to cut down on launches. Sorabjee, for one, believes that less than 10 new models will actually hit the road this year.

The biggest party-pooper is the quality of roads. Take the 911 Turbo, for instance. With a ground clearance of under 5", you might get stuck on the first speed breaker outside the showroom. The Porsche, unfortunately, for now is meant only to grace the porch

 

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