Motor Show

     
 The Yeti reemerges
     
     
 

The paw of the Yeti, the Abominable Snowman that is, was the focal point at Skoda – to draw attention to their new compact SUV of the same name. The Yeti, being the first SUV from Skoda, is highly anticipated by brand loyalists. Expected to be launched towards the middle of the year, the Yeti will feature Skoda’s 2.0 liter diesel unit. It’s fairly compact, which means that it’ll be a good size for in-city use. Nevertheless, it does have electronic four-wheel drive for the occasional off-road trail of your choosing.

Pricing will be crucial for Skoda, if they can bring it in well under Rs. 15 lakhs (on-road), they’ll have a very strong contender on their hands – courtesy of its unique exterior styling and great interior layout and quality, as expected from Skoda. Also on display was the Laura V-RS to gauge response once again to the famed RS badge, the Superb Combi, presumably to gauge response once again to a station wagon, as well as a few variants of the Fabia – a sporty variant with a 1.6 liter petrol unit, and the Greenline.

  
     
 

Pizzazz with Four Rings
 

To celebrate its centenary, Audi had some mouthwatering metal on display at its stand. To one side was the striking Sportback concept – alongside stood the current range of the A4, A6 and A8. On the other side was the absolutely stunning Audi Front 225 Roadster in white, reconstructed from its original 1935 design – alongside this stood the Q7 and Q5, also in white. Splitting the display down the center was the breathtaking R8, which took center stage, behind which stood the TT coupe – both in a delectable shade of bronze.

The Sportback will be an important model for the German luxury marque when it joins the ranks of the new-age four-door coupes as the Audi A7. In keeping with Audi’s focus, power comes from a clean 3.0 liter diesel V6 that produces 225bhp and 405lb/ft of torque, mated to a 7-speed dual clutch gearbox. The car also features a stop-start system and an energy recuperation system, as well as some other innovative technologies to save fuel – such as a new electromechanical steering system that only consumes energy when it’s actually steering. For India, Audi introduced the Q7 4.2 TDI and a limited edition A6 2.7 TDI with a price tag of Rs. 37.6 lakhs (ex-showroom, Delhi). They also announced domestic production of the Q5 mid-size SUV, which will begin in May this year.

 
  Leading the charge
At the expo, BMW demonstrated just what’s driven it to the top of the luxury car market in India, as their display featured a wide variety of cars and SUVs ranging from their bread-and-butter 3 and 5 series, a new top-of-the-line variant of their 7 series luxury flagship, the all-new X1, the Z4 hard-top convertible, the limited-edition Gran Turismo, the X6 M, as well as the X5 and X3 – now that’s what you call a line-up!

The BMW X1 is an all-new compact SUV that’s scheduled to come off their assembly line in Chennai before the end of the year. This model will also reduce the price of entry into the brand, as it’ll be their most affordable offering – which is sure to further accelerate BMW sales. At the more exclusive end was the new Gran Turismo at Rs. 63 lakhs (ex-showroom, Delhi) – of which only a 100 units will be available in India. Also introduced was the 550 horsepower monster, the X6 M – priced at an equally monstrous Rs. 1.3 crores. Not to be outdone, the 760Li comes in at just under 1.3 crores, and has a 6.0 liter twin-turbo V12 that produces 535 horsepower, which is transmitted to the road via an 8-speed automatic gearbox, no less.
  
   
  Interview with Peter Kronschnabl, President, BMW India
     

autoX: Tell us about the journey to becoming No 1.

Peter Kronschnabl: Well, it was hard work for the last three years – we worked hard in order to become number one. It happened one year earlier than planned, so that means our strategy was well defined. We are ahead of our plan, ahead of our strategy. That gives us the motivation to do even better. I think the credit, the congratulations, belongs to the whole team – whether its the dealer, the technician at the workshop, the order planner in our office, even the pantry boy in the office was committed to his job. I take it as motivation for 2010. We could think that now we are number one, we can take it easy and just maintain it. I say we have to continue, and work even harder. On the product side, we have unveiled the Gran Turismo, as well as the X1 – that means further investment into the country. We have also announced, for middle of 2010, that we will be introducing BMW financial services – another 50 million US Dollar investment within the next few years. The third pillar is the enlarging of the dealer network, expanding into the Tier 2 cities after completing the Tier 1 cities. We will enlarge by another 10 dealerships by the end of the year.

AX: Are you especially satisfied because you have managed to do better than your Southern countrymen?

PK: Being number one gives you satisfaction because it worked in your favour. But competition is important in order that you can become better. So the satisfaction doesn’t come from overtaking your competitor, it comes from the fact that the strategy you implemented was the right one.

AX: Was the number one target an implied target, or was it from BMW – saying you have ‘X’ number of years to become number one? Was it a tangible target?

PK: No, no – obviously it was not that BMW said you have ‘X’ number of years to do it. You set yourself targets, but it was not like you do everything just to become number one. You want to have profitable growth – not only for you, but your dealer partners. If not, then a position doesn’t mean anything. It’s like sports – if you want to participate in the Olympics, you are there to win, and not just to make up the numbers. Everybody who tells you that, ‘I don’t care whether I’m number one, two, three, four or five,’ he’s a liar or joking – pulling your leg. But the conditions are that it’s viable, it’s sustainable – you are not a one-time wonder!
     
 
 

AX: Is BMW still known as a maker of sporty cars driven by people on their way up the corporate ladder, on their way to a more mature car, or has that changed?

PK: BMW is a dynamic brand, and youngsters are always interested in sports cars. Look at India – when BMW was not in India these youngsters would dream of our coupes, the M Series, they were driving the image thanks to access to the Internet. BMW is, as I said, a dynamic brand, but we are also a very cultured brand. When we came into India, the customers saw that BMW has the sports cars, yes, but we also have very exclusive cars like the 7-Series. They see that BMW is a full line manufacturer that can offer you something, from a twenty-five year old to a seventy year old.

AX: Can you tell us a bit about what is your multi-pronged strategy that you have developed for India?

PK: There are different elements, what we call the three pillars – enlargement of the dealer network, there is the product offensive or the continuation of the product, and strengthening the financial services. These are the visible, tangible services for people.

AX: Regarding the X1, what kind of volumes are you looking at relative to the 3 and the 5?

PK: We are not talking about volumes, more about price – the X1 will be the entry into the SUV luxury segment.

AX: How do you select models for India ?

PK: We see what the customer is looking for – at the end of the day its the customer who drives the demand. India is more and more becoming a diesel market, so naturally we are looking at the diesel models that we have. On the other hand, we always try to get a feel through the dealers about what the customer is looking for – what he is ready to pay for. For example, the customer is not ready to buy a luxury hatchback, the market is not yet there – the same is with the station wagon, Touring, so we are not bringing these models. You know, we were the first ones with the SUVs, also the convertibles. It’s a niche market. We were the first ones trying out, we sold 80-90 cars in that segment, which is perfect – same with the Z4. Obviously a two-seater roadster is not the ideal product, but it’s selling itself – the same is the fact with the Gran Turismo. It’s limited, it’s exclusive – but, believe me, the 100 car will sell very fast.

AX: Are you getting into sales of pre-owned cars in a major way now?

PK: Obviously, it’s always a pleasure to see more BMWs in peoples’ garages. We have customers selling a car a couple of years after he bought it, so you have young used cars available. Currently, the market is very fragmented. You need to persuade the customer to see that buying a used car is just like buying a new car – you need to treat him as a new car buyer, he is buying into the brand, he is buying an almost new car. For him, we will have the BMW Premium Selection. I can tell you, a two-year old BMW is still an excellent car.

AX: What does the International Purchase Office (IPO) do?

PK: This is a long term venture – at the moment, it is minimal, and we are not giving out figures as yet. We are having discussions with vendors however. It takes a while to select partners – there is sampling, and more sampling. We have more than ten people working in the IPO – we feel there is good sourcing potential from the country, and we are talking with some of the vendors. Quality is not an issue anymore.

AX: On the small car front, in terms of the global small car wars taking place in India, where does a brand like BMW stand? Where does that leave the luxury market?

PK: Well, we are not going towards a small car. I think the luxury market has a strong potential for growth in the next couple of years. In 2009, the market saw sales of 9,000 cars with the total car market at 1.7 million – so it’s very small in comparison to the total market. So, this gives some potential for future growth. We believe that by 2015 the segment could be up to 20,000 cars.

AX: Finally, how was your Auto Expo experience?

PK: Looking at the entire Auto Expo, the quality of stands of the international manufacturers has improved. It’s a sign that the Indian automotive market is being taken very seriously. In the business hours, I noticed that the people coming were very interested – they have knowledge of the cars, more as a buyer, and not because they are from the industry. After business hours, you had the enthusiasts coming in – for many of them it’s like a dream come true, you can see it in their eyes; they see a BMW, they can touch a BMW.

  
     
  Three-pointed Magic  
 

If Mercedes Benz was worried about losing the top spot in the Indian luxury sales charts, you wouldn’t know it on entering their display. Taking center stage was the show-stopping SLS AMG supercar – with its gull-wing doors harking back to the legendary 300SL from the Fifties. And while it may have a 6.2 liter V8 producing 560 horsepower, Dr. Albur, Mercedes Benz India MD, says that the SLS is actually responsible fun since it consumes just 13.2 liters per 100 kilometers, which equates to 7.5 km/l. Presently only available in left-hand drive, it will make it to India, at Rs. 2 crores, when a right-hand drive version is available.

Also on display was the 1 crore S 500L, which is the most expensive car assembled in India (see our review elsewhere in this issue). Mercedes also aims to take it up a notch in the luxury SUV segment with the introduction of the 7-seat GL.



 
The GL 350CDI has Mercedes’ very smooth and responsive 3.0 liter diesel V6, mated to a 7-speed automatic transmission, as well as permanent four-wheel drive – this means it should drive just as well as its sibling, the ML, but allow you to take a few extra co-passengers along for the ride. Also on display was the impressive E Class coupe, which continues Mercedes’ trend of sharp styling, and even takes it up a notch. There was also a bulletproof S Class, which can be had for 5 crores – as they say, you can’t put a price on security.
  
     
  Interview with Dr. Wilfried Aulbur, MD & CEO, Mercedes Benz India
     
     
 
autoX: Where does Mercedes stand today in India in terms of name, reputation, quality – you were the first of the German brands to come into India, but today there are others from your country operating here?

Dr. Wilfried Aulbur: In terms of name and reputation, I would say there is Coke, there is IBM, and then there is Mercedes-Benz. Those are the three brands that people know, and have had a long affiliation with. If you look at the engagement of Daimler and Mercedes in India, it is second to none. We have just invested 250+ crores in a benchmark assembly facility near Pune, a facility that is the best outside Germany. We invested 100-250 crores with our dealers in a retail network that is on par with global levels. If you have not seen the showroom in Gurgaon, just go and have a look. We are also building a showroom in Mathura Road, which will actually be a brand centre – 26 cars displayed. In terms of R&D, we already have the largest unit outside of Germany in India, we are 350 engineers strong. That will continue to grow aggressively. Plus we have committed to build an Indian truck range in Chennai. So we are there in terms of commitment and investment – both in people, their education and their training, and in terms of hardware.

AX: And how are you doing globally, considering you have many more competitors on a global level than in India?

WA: Globally speaking, we have been in a good position over the last few months. We have made significant strides and strong growth. This has been supported by the success of the E Class, and the continuing success of the C Class, which is the market leader in its segment. The S Class is also the market leader in its segment. So, over all, I think we are moving in the right direction if we look at the product lines in which we compete.

AX: In terms of brand awareness, and in light of what you just said, does your brand still need major promotion?

WA: At the end of the day, any brand lives off three things – one is the product itself, second is the sales, more importantly after-sales service, and the third is the customer. It is deeply fortunate that across the globe we have been able to cater to customers and satisfy their mobility requirements. It is this association that is making Mercedes-Benz strong.

AX: Tell us about how 2009 was for you?

WA: 2009 was as per expectations – we sold 3,247 units. On the retail level, we are nearly flat. We had expected to sell less E-Class cars than we did due to the fact that, at the beginning of the year, we had only 686 kits of the old E Class, and then we introduced the new vehicle with top-of-the line equipment and top-of-the line features – the E 350, and the E 350 CDi, which really paid off because we had a winner for the Indian market with us. In addition, we made changes in the dealer network. We separated from about a third of our network due to differences in philosophy as to how we want to move the brand forward – that also had an impact on our sales. Typically, we sell comparable numbers of the C and E Class – last year, we sold 1,600 C’s, and only 1,000 E’s, so you have a delta of 600 units, and a similar delta comes from the fact that our network was not fully operational.

AX: Does it bother you and Mercedes that BMW did better last year?

WA: Honestly, I’m not worried about number one, number two, or number three, because frankly a few hundred units here or there do not make a difference in the long run. What is important for us is to make sure that our customers get what they expect from Mercedes Benz, and that’s a premium experience. We believe that we have the better vehicles, the better sales, and after-sales organization, to take care of our customers. We are quite happy to move forward with that kind of premium positioning with our customers. I’m very confident that in 2010 we shall have very strong double-digit growth.

AX: Why did it take so long for the GL to come to India?

WA: Basically it was not available in right hand drive. We would have liked to launch it a little earlier, but the timing didn’t quite work out. Typically it takes about six months to develop a right hand drive version on top of the left hand drive version, and then it takes you a little more time to actually make this version into a CKD kit. Typically that means the launch of a CKD RHD model happens about six to nine months later.

AX: Is the SLS purely a vehicle to demonstrate where Mercedes technology is today?

WA: For us, the SLS is all about pure fascination. At Mercedes-Benz, we don’t like to make compromises. Here, what we wanted to show is that you can combine the most exciting, most passionate design with a racing engine, which is second to none, giving you a limited top speed of 317 km/h, and yet it returns 7 to 8 kilometre per litre of fuel. So, it’s a combination of being responsible – don’t burn too much fuel, and, at the same time, enjoy your racing, as well as enjoy the fun of owning a beautiful automobile because this is a design classic. It shows the typical strengths of Mercedes-Benz.

AX: How serious is Mercedes about being ‘umwelt freundlich’ or environmentally friendly?

WA: We call it ‘Sustainable Mobility.’ Globally we have a clear road map leading to this. Sustainable Mobility for us means zero emission, zero accidents and maximum fun. Now on the road map to zero emission, we have a series of steps. Step number one is to optimize your diesel and petrol engine. Step number two is to look at bio-diesel and bi-ethanol. Step number three is hybridisation. Step number four is fuel cell, and fully-electric vehicles. Beyond that it’s not just the powertrain and the in-use consumption of the vehicle that we worry about – we worry about the vehicle from inception to death. So it’s extremely important to look at what happens during the engineering process, from the energy that’s consumed in the design process, the production process, and the in-use process, and, eventually, end-of-life costs.

AX: How is the pre-owned business for Mercedes in India?

WA: The pre-owned business so far has been something done by our dealers. In 2010, we will also make sure this is professionalised, and according to our global pattern. We have formulated the plan, and we will be rolling it out this year with pilot projects initially.

  
 
 
 
Off-road muscle 
Mahindra crashed the small car party with some good old fashioned SUV muscle. In addition to a number of customized Xylo’s, there was also one very special model on display – the Thar Adventure. A modern interpretation of the classic off-roader, the Thar comes with Mahindra’s tried and tested 2.5 litre CRDI, turbocharged diesel engine. It also comes with a low range gearbox, independent front suspension, and, thankfully, power steering. Undoubtedly, the Thar on display was tarted-up to some degree, but it looks good nonetheless and has a number of enthusiasts salivating prior to its launch later this year – when it’s expected to come in under Rs. 10 lakhs. There was also a cut-away of the left-hand-drive Scorpio pick-up on display, which is set to be launched in the North American market this year – complete with a urea-injection tank to meet US emission standards.
     
     
 French Revolution
     

     
 

The Mahindra Renault Logan isn’t really representative of French machinery – especially since it’s sourced from Renault’s Romanian subsidiary, Dacia. French cars are known to have unique design and flair, leading to a high feel good factor – something that’s clearly missing in the Logan. Luckily, Renault seems finally ready to bring us some cars from its mainstream stable – namely the elegant Fluence and Koleos SUV.

The Fluence has swept back headlamps and some nice lines, but what will really set it apart from the likes of the Honda Civic, when its launched in 2011, is its interior design and quality, which has a decidedly luxury car feel to it. It’s also expected to have a number of power-plants ranging from a 1.6 and 2.0 liter petrol engine to a 1.5 liter diesel. The Koleos is a crossover SUV based on the Nissan X-Trail platform, which is also likely to find its way into the Indian market. Unfortunately, the great looking Megane hatchback isn’t slated for an Indian launch. Renault also had a two-seat electric concept on display – the Twizy.

Renault state that their India strategy has finally taken shape, and they’re committed to this market, having already invested 100 million Euros at their new plant in Chennai – being developed jointly with Nissan.

  
     
     
     
   

 
     
 
 
     

 
 

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