Volkswagen arrives in India

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VW is another company that has stepped into selling it's cars in India recently. Just like Volvo, VW will be selling a car - Passat and an SUV Touareg in India. See news report. See more details of the car on VW India website.

Honda City - New Variant

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Honda City has completed 10 years on the road, and Honda is launching new variants of City to commemorate the event. There is also a word that Honda may soon phase out current City to bring in a new version. The anniversary editions will have a new music system, and a few other cosmetic changes in the styling of the interiors. See the press release for more details. See Honda website for more details on the car.

Volvo S80 and XC90

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Volvo joins the list of international companies pushing their models into India. They have made an entry to India with two passenger vehicles - XC90, an SUV and S80, a premium sedan. It has been a relatively low key entry, and unlikely that Volvo expects a serious market share. Both vehicles are feature packed, and would be good choice of buy for the people who are very concerned or paranoid about road safety, as Volvo's cars are generally well known for their safety features. See more details on Volvo India's website.

Need for a better motor vehicle policy

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When I look at the way our cities are becoming crowded with vehicles, I keep wondering if government has ever thought about how things will be 10 years down the line. It looks very likely that we will continue to add more vehicles, while the roads are unlikely to improve much, resulting in worsening of congestion.

Last few years have seen plenty of improvements in the roads in the highways, but a similar thing is difficult to expect in our congested cities. There is hardly any room available in the cities to add new roads or widen the existing ones. Flyovers haven't helped much in improving traffic conditions.

There have been a few good steps taken though. Delhi Metro is turning out to be a great example of public transport. The long flyovers between Delhi and Gurgaon, Delhi and Noida have also shown the example of making better flyovers. Rest of India needs to adapt similar steps to ensure smooth commute within the cities. Now Chennai also has got trains running within the city, and Bangalore is coming up with a Metro. All these are good moves, but also take long time to bear fruit and are expensive to implement everywhere.

Increasing affluence in the cities are resulting in more and more cars and bikes added to the roads every day. There is a need to consider a way to discourage people from using personal vehicles. For one, tax the cars and two wheelers heavily and use them to subsidize or fund public transport. Petrol prices can be increased further, as petrol is used only in private vehicles. An additional tax for diesel cars would help too. I would personally look at levying stringent taxes that result in doubling of the prices of all personal vehicles.

These measures can help in many ways, and the benefits are not just reduced congestion. It will improve the quality of air in the cities to a great extent, improving the health and living conditions. And to look at the larger perspective, emission of green house gases will come down considerably, resulting in a better place to live for future generations.

Without waiting for the government to act, we can take a step ahead too. Let's buy vehicles that are frugal in fuel consumption(read - small cars), let's avoid the temptation of frequent upgrade of our cars, and let's avoid driving unless we have to. I have already reduced my driving by one fourth of what it used to be a year ago, and looking forward to cut down further on it. Let's join our hands in this noble act of keeping earth liveable for longer.

Hero Honda Splendor - a brief history

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More than a decade ago when Hero Honda launched splendor, it looked a little out of place. Its sleek curves, a visor above the headlights and rounded looks were very different from the boxy shaped motor cycles that were common in those days.

It was not exactly a success when it came out and people were weary to buy a bike that looked out of place. Pricing mattered much more than it did today and few people were willing to shell out a few extra thousands. But as the years passed, more and more people started liking and buying the splendor. Its excellent road handling, decent fuel economy, sleek looks, smooth engines and riding comfort had things going for it. Soon splendor was the world's largest selling motor cycle brand.

Over the years, Bajaj and TVS woke up to the need of improving their fleet of bikes and many new bikes hit the roads. In the last few years, so many two wheelers, all looking similar and with similar features hit the road that bikes were transformed from brands to commodity. For some time, splendor stayed on because even when it did not have anything special going with it, at least you could find no fault with it. But an upgrade was definitely necessary, and as it usually happens in India, a new version - Splendor Plus was born with only cosmetic changes. It was hardly any different from the earlier Splendor.

But the market was moving from 100cc vehicles to 125cc, and if the 100cc engine remained on the Splendor, it would have lost its position and slipped to the category of budget bikes. So next came the Super Splendor, this time with a 125cc engine delivering 9bhp. Both splendors co-existed in the market.

Now Hero Honda has been constantly upgrading the Splendor to ensure that it doesn't get buried in the flood of new bikes that keep hitting the market. Besides, it has also used the well known Splendor brand by re-using the brand name as much as possible even when the new version may not have much to go with the old Splendor. The latest offering from Hero Honda is Splenor NXG, which is a 100cc, 7.7bhp bike and hardly looks anything like earlier generation of Splendor. The new Splendor, along with the existing models might help Splendor remain the most selling two wheeler brand ever.

Maruti Launches new Suzuki Grand Vitara

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Maruti has re-launched their SUV and only passenger vehicle in the premium segment- Suzuki Grand Vitara.

The Grand Vitara is equipped with a 2 liter engine which delivers 119.5bhp of power. The Vitara is available in 2 versions - one with manual transmission and another with a four speed automatic transmission. The Grand Vitara is priced at 13.8 lakh ex-showroom Delhi.

See more about the car on Maruti Grand Vitara website.

Hyundai Santro CNG launched

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Hyundai has launched a CNG version of Santro, almost a year after they announced that they are going to launch one.

But this will not be a factory fitted system that can run on CNG - a CNG kit will be retrofitted at the dealer. CNG version is available only in Delhi. The CNG version will be available in four variants - XK (non A/c), XL, XO and AT with prices starting at 3.25 lakh ex-showroom Delhi.

See press release from Hyundai

Hyundai launches Sonata Embera Diesel Automatic

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Hyundai has launched am automatic diesel version of its luxury sedan Sonata Embera. The new variant contains a four speed automatic transmission. The car has a 2 liter CRDi diesel engine with an output of 142PS. The car is priced at 15,71,656, ex-showroom Delhi. Along with the automatic diesel, Sonata Embera is available in three more variants.

See more details on Hyundai Sonata Website.

See the press release.

New Ford Endeavour 4x4

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Ford India has unveiled a new version of Endeavour 4x4 version.



The new Endeavour comes with a 2.5L, 143PS engine. The interiors include an in-dash CD changer, dual AC with independent controls for rear seat and foldable rear seats. The SUV comes with ABS and dual stage driver and passenger airbags. The Endeavour is now available in 3 models - A limited edition 4x4(XLT), 4x4 XLT and 4x2 XLT. Read more about it on Ford Endeavour microsite.

Maruti starts delivering SX4

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Maruti has started making first deliveries of the new car SX4. The car launch has been a bit low profile and it did not see many major campaigns before or after its launch. It would probably be seen on the roads of your city in no longer than a couple of weeks. From the images, the car definitely looks good and I am looking forward to see them.



The SX4 starts at a decent price of 629000 and the higher version costs 735000(Bangalore, ex-showroom). The car comes with a 102PS engine with a capacity of 1.6liters. The SX4, especially at the higher end looks well loaded. But it is surprising that there is no diesel version available, especially with Maruti making so much noise about bringing in more Diesel engines to India. But that make folks at Ford rejoice, since they still don't have a solid competition for Fiesta diesel.

One interesting new thing on the car is an integrated music system that is embedded within the dashboard, and not as a separate component. It looks nice, but is a pain if you wanted to replace it with your favorite system.



For more information on the car, see maruti sx4 website.

Three New Luxury Cars from Merc and Nissan

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Three new cars at the luxury segment were released in India last week.

Nissan launched it's first car and second passenger vehicle - Teana in India, the first being an SUV - Nissan X-Trail. Teana will cost a little more than Rs.20 lakh ex-showroom. Teana comes with a 2.3 liter engine delivering 170bhp. It is only available with a 4 speed automatic transmission and does not have a manual version. See Nissan India website for more details.

Mercedes launched two new premium vehicles in CL and S class, costing from 1.2 crores to 1.5 cores.

Chevy Spark Launched

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Chevy Spark is finally launched after much delay. Spark is the good old Daewoo Matiz in a new Avatar, relaunched with many changes to the car after GM bought Daewoo. Another small car is on the road now, which means more competition, more choices, and hopefully reduced prices for the consumer in the days to come. Here are some features and specification on the car.



Variants: 4 variants - 1.0E, 1.0, 1.0LS, 1.0 LT. Keep in mind, the lowest variant comes with out air conditioning!
Engine: 4 cylinder, 1 liter engine, delivering 63bhp. Note that the Matiz had a 3 cylinder engine.
Prices: Starting from 3.09 lakhs. 1.0LT costs 3.89 lakhs. The starting price will be less that that of Zen Estilo, but do note again that 1.0E does not come with air conditioning.

More information: Chevy spark website

Harley Davidson in India

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Harley Davidson would most likely have many fans in India, and most of those fans may not even have seen one. Considering the price tag that they carry, owning one in India is not going to a reality for most.

Harleys were not allowed on the Indian roads so far because they did not meet the emission standards set for the Indian bikes. But now the government has relaxed the norm specially for Harley Davidson, allowing its imports.

This is not the first time high-end bikes have attempted to create a market in India. BMW try to import its bikes to India more than 10 years back and they found no takers. Things could be much different now, but still it is unlikely that Harleys can sell in large numbers here.

It is also worth questioning how the government could take a concessionary attitude towards Harley Davidson. There is no reason why should they be given the privileges to pollute the Indian roads. If they wanted to sell in India, they should work towards building cleaner bikes that meet emission norms. It is definitely unfair and incorrect to give a foreign company privileges that even domestic manufacturers don't enjoy.

Fiat Palio Stile Launched

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Fiat has launched the new version of Palio today, that I was mentioning a few days ago. It has been named as Palio Stile. The Palio Stile comes with a 1.1 liter, 57 bhp engine. I had a quick look at the details of the car and here is what I liked about it.

1. The price. Starting at 3.49 lakhs, the big small car becomes an attractive buy.
2. Improved Fuel Efficiency. This was one of the major problem with potential Palio buyers earlier.
3. Better Service. The new Palio will be sold and services by Tata Dealers, which will hopefully make things better.
4. Great interiors. The redesigned dashboard looks great.



The only thing I did not like is that the 1.1 engine seems to be underpowered at 57bhp. Even lighter cars like Wagon R and Santro are powered with 64bhp and 63 bhp respectively. The bigger Palio seems underpowered in comparison. A 65 bhp engine would have worked better. But for those looking for more horses, a higher version - Palio Sport is available 1.6 liter engine delivering monstrous 100bhp.

See Fiat website for more information.

Hyundai Getz Prime launched

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Hyundai has launched a new version of the Getz, called Getz Prime, which is meant to comply with government's definition of small car to obtain tax discounts, and hence reduce the price tag of the car.

The Getz prime GLE with a 1.1 liter engine and body length less than 4000mm will comply to small car standards and will cost 3.89 lakh, ex-showroom Delhi. Getz also comes with a 1.3 liter, 82.9bhp engine option.

See more information and specifications on Hyundai Getz website.

Mahindra Renault Logan launched

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Logan is the much anticipated car of 2007 and it is now out. At prices starting from 4.28 lakhs for the petrol version, it does look attractive. But the diesel version, hosting a common rain engine will cost a lot more, starting at 5.47 lakhs. The Logan comes in 3 variants, named GL, GLE/DLE(Petrol/Diesel), GLS/DLS(Petrol/Diesel). The petrol versions come with a 1.4 litre engine delivering 75bhp and 1.6 litre engine with 90bhp. The diesel engine's capacity is 1.5 litres and delivers 65bhp.

Of course, its low price means you can expect most of the comforts missing in the car. Power windows and central locking are available only in GLS/DLS versions. And the lowest version - GL is not equipped with power steering.

Logan marks the entry of Renault in India. While most of the existing players are concentrating on mid sized sedan market(like Ford Fiesta, Chevy Aveo), entry of Logan infuses some freshness into lower end of sedan market, which is now filled with relatively outdated cars.

See more details of Logan on Mahindra Renault website.

BMWs and Lamborghinis

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The number of luxury cars available in India are growing. BMW is launching made in India 3 series cars and will soon follow up with 5 series cars. They are also contemplating on launching their small car Mini a few years down the line.

And Lamborghini is about to launch one of its most well known models - Gallardo in India.

Now most of the car companies have made it to India, either by setting up dealerships who import fully built units or by assembling in India on a small scale. Who knows, with Detroit on the verge of collapse and more and more companies setting up a base in India, we may even become the automobile hub of the world in the next decade.

Better Days for Fiat?

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Fiat had never had things going good for them in India. It dates back to the days of tie up with Premiere whose plants were closed due to a forgettable strike and their models died a slow death. When Fiat returned to India with Uno, and then Palio, Siena and Petra, they had good cars with them but poor economy and bad after sales let them down.



Now there is some chance that Fiat may see better days in India. A new, re-worked Palio, which is expected to be more efficient and economical is hitting the Indian roads in April. Most Indian car buyers do understand that Palio is a great car from a great company, but fuel efficiency and after sales worries had kept them away. The deal with Tata Motors for sales and service should help them get over the worries of bad service. Current Palio sales have also increased marginally since the service agreement with Tata Motors. And if the new Palio can actually give a much better fuel economy, it could eat some market share from Swift and Getz, and even the smaller cars. But a 54bhp engine seems to be a very underpowered compared to its counterparts and should be something for Fiat to worry about.

Bajaj wants to make a one-lakh car?

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Rahul Bajaj seems to be unhappy with all the publicity that Tatas are getting for their one-lakh car. He says that Bajaj will take the plunge and follow the footsteps of Tata Motors to build an 'economy' car. See more details here.

From the tone of his words, it looks more like a statement he made in a rush rather than a decision taken by careful analysis and discussion with his managers. So I would still wait for believing that Bajaj will actually make a budget car.

New Mahindra Bolero

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Mahindra has launched a new version of the Bolero, which is basically a face lift of the original one. But most important - the new Bolero is priced less than the old one. The changes are primarily cosmetic - both interiors and exteriors have been spruced up. Bolero is one of the best selling vehicles from Mahindra, and it sells even more than the popular Scorpio. The face lift and reduction in prices should be able to improve its sales further.

New cars to be released in 2007 in India

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March issue of Overdrive magazine reports that Hyundai is about to launch a new small car priced at around Rs 3.5 lakhs in October. Another small car in the same range - Chevy Spark is due from the plants of General Motors later this year. With two new models on the roads, small car market could see some heated action and Maruti may see a bit of it's market share eroding. Overdrive expects the new Hyundai to be released in both diesel and petrol versions, threatening all the Maruti models as well as the Indica.

Maruti is expected to roll out Suzuki SX, a mid-sized sedan that could compete with Hyundai Verna, Chevy Aveo, Ford Fiesta and Honda City. Maruti is also expected to come out with a series of new releases, with five new models in the cards by 2008.

Mahindra Logan is another car from Mahindra-Renault partnership, expected to roll out in mid-2007. Logan is a low-end sedan in the range of Ford Ikon and Maruti Esteem. Entry of Logan would give some life to this much neglected segment where no new models have hit the road in many years.

Its time for price rise

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Car makers are now increasing the prices post-budget though the increase is marginal. Skoda alone seems to be an exception, as they are reducing the prices by a good amount aided by cut in import duties.

Read the details about increase in the prices of cars from Hyundai, Maruti,

Ford Ikon 2007

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Ford has released a new version of Ikon with some cosmetic changes. Changes are primarily in the interiors, with a new dashboard and beige seats to make it look luxurious. The Ikon still remains a good value for money with prices starting at 4.76 lakhs, ex-showroom Delhi. Ford website has details on the car.

Ford website also mentions of a a CNG variant of the Ikon. But it seems to be a fitment outside the factory provided by a third party vendor and facilitated by Ford.

The new Tata Indigo XL

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The new Tata Indigo XL, released recently, is a stretch version of the Tata Indigo. It comes with plenty of luxury features that you don't get to see in many cars that are even double its price. At a price tag under 8 lakhs, there are no other cars that come anywhere close to Indigo when it comes to features. Look at some of the luxuries that the car offers -

1. Amazing rear leg room, sufficient to happily fold your one leg over other and still be left with more room.
2. Plush leather seating, standard DVD player and screens behind front seat.
3. Independent controls for rear AC vents.
4. 6 way electrically adjustable front seats.
6. Hands free communication system built into the car.

The Indigo XL comes with a 101ps petrol or 70ps diesel CRDi options. The diesel version does appear a bit underpowered. Also see the well designed Tata Indigo website, which gives all the details about the car.

Though it has luxuries that are beyond comprehension in other cars at same price, the Indigo may not be as refined as other cars in the range. A longer wheelbase may also make it cumbersome to drive and difficult to park. Unlikely it makes a good buy for someone who would want to drive his own car, but may be a great value for money for any one who would prefer the backseat.

Maruti Swift Diesel version released

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Maruti has been talking about a diesel Swift for sometime now. It is now available and comes with a price tag starting from 4.68 lakhs. The diesel engine uses CRDi technology, which means that it will be sufficiently sophisticated to feel like a petrol engine.

The swift website has some details of the diesel version. But I searched for a long time and could not find the engine specifications(horsepower, capacity) on the site or in the press release. I wonder why! But this site says that it is a 75bhp engine, which is excellent for a diesel engine, and also justifies the price tag. Also see a detailed review at The Hindu Business Line

The New Zen Estilo Ad

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Most of you would have seen the ad of Zen Estilo on tv, where everything and everyone is depicted as boring boxes and then comes the Zen Estilo, making a 'style statement'. The first time I was watching it, I wondered and tried to predict what could be the product. I could figure it out before the car turned up on the screen, but next, I wondered what purpose does the ad serve. Let us do some analysis.

First, lets look at what did the advertiser want to achieve with the ad. Naturally Maruti's ultimate aim would be to have their car sell well. If it was an existing and popular product, and people already know about it, an ad needs to serve the purpose of giving a good brand recall. Say, if the ad was for an Alto or Wagon R, people already know about the product. And if a viewer is bombarded with adverts, when he decides to buy a car, he will remember to check out the Alto or Wagon R too.

But the Zen Estilo is new, and is not known to the viewer. So an ad has to serve the purpose of -
a. Introducing the new product to the viewer
b. Educate him of the benefits of the car, and tell him why he should buy it.

So if you have an ad that praised the economy that the Estilo could offer, its low price, smooth ride, or such features that would make a potential buyer think of adding the Estilo to his list of cars to checkout. But the ad does not make any effort in that direction.

Now, even if we consider Zen as an old brand in new avatar, lets see if the ad serves to provide a good brand recall. Brand recall happens when you make an ad that people sit up and notice, like the Hutch ad. Or when you add some nice jingles that make people sing it even when the ad is out from the screen, or with something silly, or by getting celebrities to endorse it and such tactics. The Zen ad doesn't do any of this. Okay, lets forget all the formulas and agree that it's a new 'concept' ad and it might get noticed. If you were told that you are a miserable boring person(or 'dabba') and you can uplift yourself only by getting inside a Zen, do you think you would consider doing just that? Unlikely isn't it? The Estilo ad is trying just that. It tries to call everyone a looser unless you are in the Estilo. Marketers know that such ads have never had a long term positive effect on a product, and if it is a new product, things could be even worse.

Next, lets look at where does the ad try to place the car. It talks about making a 'style statement'. How many car buyers in this segment really look at making a 'style statement' with their car? Although I can't say with numbers and figures that might be arrived out of a survey, personal experience tells me that most small car buyers want better pricing, fuel economy and low maintenance cost. Sadly, though Zen servers all these needs, it is not highlighted. This is debatable though, and I have to give some credit for the idea of 'style statement'. The erstwhile Zen was known as a pretty and stylish car and was known for its good looks, and Maruti may be trying to fill the void created by it. But is the car really worth such a marketing effort is another question they need to ask themselves.

Luckily Maruti, and the Zen are in a position to attract buyers no matter how good or bad its advertisement turns ou