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The advent of the Chevrolet Beat, as well as the Ford Figo – American brand names using technology and resources from all over the world, including the third world – have led to the established Japanese and Korean marques providing us with trim and option levels not delivered in India before. Yes, the ‘export model’ versions of their cars had all the bells and whistles, but it took a nudge from the new competition to persuade Maruti-Suzuki, as well as Hyundai India, to give us the same for domestic customers.
We refer to the ‘new’ Suzuki Wagon R and Hyundai i20, both of which are certainly giving us a lot more, and at prices that are lower than before. Likewise, the Mahindra, nay Renault, Logan, which has lopped off a solid 15-20% off its sticker prices. Whether that will nudge sales up for the popular fleet taxi vehicle remains to be seen. A lemon is a lemon, even at a discount.
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But truth is always in numbers, and here’s one important factoid – both Hyundai and Suzuki agree in their international handouts that India provides a major chunk of their sales, as well as an even more important segment of their global profits. So, and this has been something that more than a few little birds have chortled into my ears – the word is out. As on date, automobile sales in India are rocking, non-stop from factory to dealer and thence to customer – like butter slipping off a frying pan. A good monsoon is forecast, so that will mean more sales.
However, it’s towards the fourth quarter that the two market leaders will unleash their flagship vehicles, and aim to venture out of just the small hatchback segment – with the new Hyundai Sonata and the equally new Suzuki Kizashi. Look out Toyota Camry and Honda Accord. As someone who’s driven all of
these extensively – both these cars will take the Honda / Toyota duo head-on in every possible way. And at prices that will
simply make this summer’s heat feel like a cool swim in a Himalayan spa.
Product portfolios from car manufacturers continue to get more diverse, as traditional small car makers delve into the luxury car space, while some foreign manufacturers who called it wrong, bringing in their bigger (for India) cars, have had to do some quick back-steps and bring in their smaller cars – all of which has led to improved products at lower prices.
There’s still a perception problem here though – the canny Indian customer rightly perceives the cost of spares and maintenance for a manufacturer of small cars going to big cars as not too expensive. Logic says that they’ve already built economies of scale – all the way from the factory till the
service centre.
But do it the other way around, as Skoda, VW, Honda, and now Toyota see it – and your PR as well as Corp Comm department can do what they want – but nobody is going to believe that a small car from a large car maker is going to be frugal. Sadly, that’s true too – I happened to accompany a friend with a
Honda Jazz to a Honda dealership, and was scandalised at the service and spares prices.
So, the next step in the car bazaar – fourth quarter 2010.
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Mr. Veeresh Malik has been one of India's leading automotive columnists and analysts for the past two decades
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