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 out. Maruti is a well established brand, and being a small, economy car, Zen has a market of ready buyers. But some good marketing could do a bit more to improve its sales.

Cars launched in 2006

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Economic Times has a quick roundup on cars that were launched in 2006. The list has the new cars like Civic, Zen Estilo and Verna, but some variants like the New Wagon R, New CRV also have sneaked into the list. I wonder why. See the article here.

Improved Tata Indica

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Tata Motors have launched 2007 edition of Indica, with some cosmetic changes.

It could be a minor variant, but I really appreciate the way Tata Motors has been constantly making improvements in Indica. The first Indica made some decent sales, but there were plenty of complaints in the area of reliability. It did not take too long for them to realize the problems and come up with Indica V2 which was praised for the improvements and quickly accepted. Since then, Tatas are having a good run with Indica, but have always been making improvements frequently. Launching Indicab was a smart move in pushing sales, though I think the image created by Indicab kept private buyers away from Indica. Xeta was a milestone in petrol version of Indica, in trying to push sales of Indica with younger lot. It is doing well too, and Indica is slowly gaining some acceptance even with people who were initially averse to it. They kept making small changes and improvements time and again, and the new version is just one of them.

The way Tata Motors is going in India and also in many third world countries, and the way they have been acquiring new companies and technologies from all over the world, I have a hunch that they could become one of the important automobile companies in the world in next ten years. Ratan Tata is indeed aiming at it, and I wish them for good days ahead.

Good old Amby is turning 50!

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India's iconic car Ambassador is probably the oldest surviving car in the world. It still manages to sell 13,000 units every year, and looks like Hindustan Motors has no plans to discontinue it!

Surprising, HM's website makes no mention of it. But business standard has an interesting article which looks back at the 50 years of the Ambassador.

Car Prices set to Increase

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December was the month when nearly every one was offering discounts to meet their year end targets. Now that 2006 is left behind, most car makers are looking to increase prices in a week or two. Some hike new here:

* Honda is increasing the price of Civic by Rs.12,000 and City prices will go up by Rs.5,000 to 8,000.
* Tata Motors increases the price of Safari by Rs.10,000 to 15,000 and Sumo by Rs.5,000.
* Hyundai to increase Verna price by Rs.3,500 to Rs.10,000, but is going to reduce prices in Tamil Nadu.
* Ford Fiesta is going to be costlier by Rs.10,000 and Endeavour by Rs.15,000, and Maruti may hike prices of Zen Estilo though it is not yet confirmed.

So be prepared to shell out a few more thousands if you are planning to buy a car now. Even if you book today, you might still have to pay more, since the price you pay will be the price on the day of delivery and not on the day of booking.

Honda Civic is CNBC autocar car of the year 2007

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Honda Civic has bagged CNBC Autocar Car of the year award. The contenders for this award include the new variants of older cars too, which meant there were many cars, and also many awards. Infact the number of awards doled out is more than the number of cars launched in 2006! See the entire list of winners here. The Bike of the year award was bagged by Bajaj Pulsar DTS-Fi.

Aveo UV-A is BS Motoring Car of the Year 2007

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Chevy Aveo UV-A has bagged BS Motoring car of the year awards. Other contenders for the trophy were Honda Civic, Lancer Cedia, Maruti Zen Estilo, Hyundai Verna and Aveo sedan. Chevy Aveo UV-A was launched only in the later of half of December and barely managed to get into the list of contenders. It is surprising that UV-A beat Civic to grab the award, but car awards in India usually tend to lean towards the smaller cars which are more practical for India.

The jury agreed that Civic is the best of the lot that they tested and was superior to all other cars, but it looses out in practicality and economy. The UV-A received decent scores in all parameters despite not arriving at the top in any category. BS Motoring says -

The secret is that the U-VA did consistently well in all the parameters without emerging too strong in any single one. The performance may not be exceptional, especially when looked at it in sterile 0 to 60 kph or 0 to 100 kph terms, yet its little 1150cc motor surprised the jury with its spunky, cheerful attitude. And the best part is that it's an efficient engine that's miserly with the unleaded.

Read more about it on BS-Motoring website.

Mahindra, Renault, Logan and lower C class

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Ford Ikon, Maruti Esteem and Tata Indigo - sedans, or cars with boot that cost around Rs.5 lakh, are what could be classified in India as lower C segment. The upper C segment spans to cars like Fiesta, Aveo and City.

Have you noticed that except the Tatas who don't have many choices under their umbrella, manufacturers are paying little attention to these cars lately? Esteem has gone old and is begging for a replacement, but is still donning the road. Ford Fiesta was meant to replace Ikon, but there was such a big price gap between them that Ford decided to keep both cars. General Motor's Opel Corsa was phased out by Chevrolet Aveo. Another car that costs a little more - Hyundai Accent was globally replaced by Verna but Accent lingers on in India.

Most car companies are looking at the pricier section of the sedan market with cars costing more than 6-7 lakhs ex-showroom and neglecting the ones that cost around 5 lakhs. Reasons could be many. When GM phased out Corsa or Hyundai introduced Verna, they were only imitating their parent companies' actions. That automatically meant introducing a bigger car, whether or not it suits India. We must also admit that more and more people are buying larger cars in India and there is a growing market for these cars. There is also a new segment of premium hatchbacks like Maruti Swift and Hyundai Getz that cost the same as smaller sedans but are newer, more nimble, more advanced and easy for driving in the congested city roads. These could eat up a portion of the market share enjoyed by lower C segment.

But does that mean there is a bigger market for those big cars than the smaller one? Does that mean premium hatchbacks can eat up the market of lower C class cars? Numbers say otherwise. Tata Indigo, the latest of the cars in this segment is still doing good, and sells more than the cars in upper C segment. It also sells more than Getz but less than Swift. Infact, if you exclude smaller hatchback cars, Indigo is one of the top selling cars in India(Nov-06 sales figures). If Ikon and Esteem do not have such numbers, it is simply because they are dated.

In fact there is a small void opening up in this segment, with little competition to Indigo. No one seems to be in a hurry to fill this void either. Ford, Maruti, GM or any other company has no plans to bring in new models in this market at the moment. That's where Mahindras seem to have seen a window of opportunity.

Introducing Renault Logan seems to make perfect sense in every aspects. India has a booming car market, and there are many people willing to upgrade from a small hatchback or buy an inexpensive sedan as their first car. And this segment of the market has little competition unlike the crowded upper C segment or the small cars. It also gives a good opportunity for Mahindras to enter car market and for Renault to enter India. And more than everything, it gives the consumer an option to buy a newer car instead of a stale Esteen or an Ikon.

If Logan meets some basic expectations in terms of cost of buying and ownership, performance and maintenance, it could be a big hit with the consumer. The word now is that the Logan will be priced below 5 lakhs and that seems to be a perfect number. We have to wait for a few more months before we see what Logan can do to our car market.

LOOKING BACK AT 2006

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The year of 2006 saw many cars and two wheelers launched. Here is a list of the new launches that were featured on India Auto Blog.

CARS

Lancer Cedia
Chevy Aveo
Honda Civia
Chevy SRV
Hyundai Verna
Maruti Zen Estilo
Chevy Aveo UV-A

TWO WHEELERS

Hero Honda Pleasure
Bajaj Platina
Kinetic Blaze
TVS Apache
Hero Honda CBZ Extreme

Here is wishing all the readers of India Auto Blog a very happy new year. Let's look forward to many more newer, advanced, user friendly and environment friendly vehicle in the year of 2007.

A NEW MARUTI BALENO?

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December issue of Autocar India magazine makes a mention of a new Maruti Baleno. They don't seem to have much substance in their story, yet they seem to be confident about it. All they have are some pictures of a left-hand-drive car with Suzuki logo behind it, and they don't even say where the pictures are taken from. But there is a small mention that the new Baleno will be similar to its Chinese counterpart. They support their argument by another fuzzy image, which they claim to be that of the new Baleno being tested by Maruti. The date of launch they are projecting is 4-5 month down the line in 2007, and make a price estimate of Rs.7-8 lakh for the new car.

I am not sure how true is the story, but Baleno surely needs a replacement. Infact, Baleno is a much appreciated car and is the best value for money car in its segment, but its dated looks alone have done lot of damage to its sales. Customers who would want to buy a Baleno are also discouraged by the fear that it may be obsoleted by Maruti very soon. If they launch a completely new car costing 7-8 lakhs, Maruti will loose the value for money advantage they have on current Baleno. Maruti has an experience of sprucing up the looks of their cars in the past - like the Zen and Esteem. Neither Zen not Esteem see an improvement in sales after they got the new looks, but a similar job could do wonders on the Baleno if they can make it look contemporary but retain everything inside and keep the same price tag. If they do that, they can also work on getting a replacement for Esteem, which is badly needed immediately, instead of spending their energy on a new Baleno.

CHEVY AVEO UV-A ROLLOUT

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After a long time since Chevrolet Aveo was rolled out, General Motors has now launched the hatchback version of the car, called Aveo UV-A. For a price tag starting from almost 4 lakhs, the Aveo UV-A appears big, impressive and value for money. It also has looks that can impress anyone. The Aveo comes with 3 variants, all of them sporting a 1.2L, 72bhp engine. For more details on the specifications, details and images, see Chevy website.

SCORPIO AND FORD DISCOUNTS

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Continuing on the discounts raining during the year end, Mahindra has announced upto Rs.50000 discounts on Scorpio. I heard it on an ad on the radio, and could not get the details. Mahindra Scorpio website was down when I was writing this.

Ford also is running good discounts on all its vehicles, which will be on only till December end. Here is a summary of discounts:

Endeavour: In car DVD player worth upto Rs.30,000 free
Flair: First year insurance free
Fiesta: Sporty pack worth Rs.20,000

See more details on this on Ford website.

YEAR END DISCOUNTS

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Rediff says is a good time to buy a car if you are looking for discounts, with companies trying to meet their targets at the end of the year. The discounts they are mentioning look pretty attractive, which includes a good 35,000 on Hyundai Santro, double that money on Accent CRDi, a 20,000 off on Maruti 800, and 26,500 to 40,000 on some Tata cars like Indica and Safari. See the entire list here. Go for it now if you were planning to buy a car.

THE NEW HONDA CRV

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It has been some time since Honda has launched the new CRV. The review at Business Standard Motoring says it is better than the old CRV, but still has room to improve. They also think it is not exactly value for money.

So you do get a safe automobile when you put in Rs 20 lakh and some more for your CR-V. It has got the space, has more comfort at the back (if you employ a chauffeur), ride quality, presence and handling that apes a car.

The new CRV comes with 6 speed manual transmission or 5 speed automatic versions, powered by a 161bhp engine. See the detailed webpage of the new Honda CRV for more details.

MARUTI ZEN ESTILO - THE NEW ZEN

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The relaunched new version of the Zen, called Zen Estilo, which was due for a while, was revealed to the Indian buyer yesterday. It has been a fairly quiet launch, without much publicity or fanfare.


The Zen Estilo comes with Maruti's time tested formula or variants - the no frills LX, LXi and high end version VXi. The car comes with a 1061ml capacity engine which can deliver 64bhps. See more details of the car on Maruti Zen website.

The LX is expected to be priced at 3.2lakhs and the VXi will cost 4.02 lakhs, keeping the pricing competitive.

FINALLY, AN INDIAN VEHICLE ON US ROADS

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M&M is planning to launch Scorpio in US, and if it works out, will be the first Indian vehicle to be on US roads. Indian vehicles had found their way, though in small numbers, into many countries in Europe and Africa, but never before to North America. It is a long way yet; they have signed a distribution deal with an automobile dealer in the US, but the date of launch is expected to be announced only in second quarter of 2007. See more detailed here.

CHEAPER TATA INDICA

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It could be a bit hard to believe, but now Indica is ready to compete with a much smaller rival - Maruti Alto. Tata Motors has launched new versions of Indica V2 Xeta Petrol with a smaller 1.2 liter engine(against the existing 1.4 liter engine) and have reduced the prices significantly. Now available at 2.27 lakh ex-showroom Delhi, its price now compares with the Alto!

In another news, Maruti reached half million sales mark on Alto so far and are celebrating with a limited edition variant, call Alto Xfun, which costs Rs.8000 more.

TWO WHEELER COMPANIES HAVE IT TOUGH

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More and more people are buying bikes today and sales of two wheeler companies has never been better, and still growing. Bike makers should have been happy. TVS and Bajaj should be elated because they are seeing faster growth and improving their market share and their cash boxes must have been full.

But all is not as well as it seems to be. Increasing competition, rising input costs and commoditisation of 100cc bikes market is eating up the margins of two wheeler companies. See some recent quarterly results.

Hero Honda Q2 net down 9.2%
TVS Motor Q2 net drops 22.28%
Bajaj Auto: Shrinking margins

Bajaj did show a bottomline growth but margins were hit considerably.

Competition has never been more tough. Once upon a time, Bajaj ruled the market with very little competition. When Hero Honda took over market leadership, they too enjoyed their leadership with little threat. TVS was on and off, but they were having a good run for the last few years. Most of the market belonged to these three. While that may remain so for many days to come, other manufacturers are doing their bit to increase the competition and put pressure on pricing and margins. Suzuki and Honda, though do not have a major presence, can still elicit trouble. Competition with the big three puts even more pressure on the prices, resulting in thinner margins.

Rising input costs, especially of steel and transportation, a problem in every maufacturing industry has not escaped two wheeler companies too. And there is also the pressure to keep the prices low.

Besides all this, the primary segment - 100cc bikes have become commodotized, which means that no company or brand can afford to expect a premium from customers willing pay the extra money to buy the best brand.

This is a tough time for two wheeler makers and it does not look like there are good days in near future either. It would take a few years before we can see some change in the equations of two wheeler markets.

NEW HERO HONDA CBZ X-TREME

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After nearly six months after CBZ was taken off the market, Hero Honda has now launched a new version of the bike, called CBZ X-treme. Looking at the specifications, Hero Honda looks like they are getting their equations right and there could be some competition for Pulsar, but that depends on the quality of the bike. I haven't seen any reviews yet, but I shall keep looking for it and update here once there is any.

The new CBZ comes with a approximately 14bhp, 150cc engine and costs Rs.54,500 ex-showroom at Delhi, which makes it a perfect rival to Pulsar in all sense - price, engine capacity and power. See the specifications of the bike on CBZ website.

CAR SERVICING MADE EASY

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Servicing the car has always been a painful job. You will be grounded without the car for the whole day, and also have to take the trouble of leaving the car for service and rushing to office, and then hurry back in the evening before the service center closes for the day. What if the service center becomes efficient enough to return your car within an hour? A Toyota dealer seems to be trying it out.

It will be nice if everyone can do it. That would make servicing a really easy job. Go to the service center in the morning, just leave the car and go for breakfast in a cafe nearby. Have a leisurely long breakfast as you read the newspaper. By the time you are finished with breakfast and the newspaper, your car would be ready! It would be nice to see that happen.

HYUNDAI VERNA IS RELEASED

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Hyundai has now launched its new Sedan that they have been talking about for a while - Hyundai Verna. Verna is a car that was initially assumed to replace Accent, but now both of them will be available in the market. But Verna is designed as replacement for Accent in other countries. Earlier reviews of the car are not very encouraging and people seemed to complain about the engine response and gears.

The new Verna's petrol version comes with a 1.6 litre, 103PS engine priced from 6.2lakhs to 7.35 lakhs. The diesel version is equipped with a 1.5 liter engine that delivers 110PS, priced at 6.5 to 7.7 lakhs. See more details on Hyundai Verna website.

CHEVY OPTRA CNG VERSION

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Chevy Optra joins the small but fast growing group of cars that are available in CNG and LPG versions. CNG option is available only in the versions with 1.6 litre engine, that is, 1.6 Elite, 1.6 Elite LS and 1.6 lt royale. See the optra page on Chvey India website for some more info. The website says it is available in only select cities without naming them. This news story has some more information, mentions that it will be available in Mumbai, Delhi and Gujarat.

IS BAJAJ TAKING OVER AGAIN?

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For many years, Hamara Bajaj ruled the Indian two-wheeler market with its well-known Chetak scooters. They had little competition to worry about until Hero Honda came in to spoil the party.

Hero Honda's new generation bikes that were reliable and cheaper to run became popular very quickly and it did not take long for them to become market leaders, taking over from Bajaj. They stayed on the top for a long time and stayed much ahead of their competition - Bajaj and TVS. But things seem to be changing again.

In August, Hero Honda saw decline in sales while Bajaj Auto's sales continued to grow. The gap in number of units sold by each of them stood at 30,000 - a number much less than what used to be.

In a market that is seeing a deluge of product launches, lower end of two wheeler market is nearly becoming like commodities. It is hard to point to models that stand out and no bike is considerably different from other. In such a market, prices and marketing become the key drivers more than anything else. With Bajaj and TVS managing to improve technology in their vehicles, Hero Honda's quality and technology edge is now lost. Besides, Hero Honda's attempt to gather a market share in the higher end with CBZ and Karizma has not met with the kind of success that Bajaj has seen with Pulsar and Avenger.

All is still not lost for Hero Honda. One of the reasons for decline is sales is attributed to strikes at their plant, which is temporary. Hero Honda plans to launch many models in the next few months, and their future could depend on it. They have also moved into scooters market by launching Hero Honda Pleasure. It is a market where Bajaj does not have a major presence, but wants to get into.

While Hero Honda can't be written off, it is likely that Bajaj will continue to improve its sales. It would be a fairly long wait before the winner is decided.

SANTRO GETS LPG AND CNG VERSIONS

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If WagonR gets a LPG version, can Santro be far behind?

Hyundai is launching CNG and LPG versions of Santro, which will be available from next January. See the press release, which also has much more about Hyundai's expansion plans and about ultimate aim to be the top car maker in India!

A NEW POWERFUL PULSAR

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Business Standard Motoring reports about the new Pulsar about to be launched - Pulsar DTS-Fi that is going to be much more powerful than the current version. It will come with a 220cc and a good 20bhp engine, which makes it much more powerful than Karizma. The guys at bsmotoring seem to be all excited about the new bike and they think it is going to be a big hit. See more of the story at their website.

See detailed information on the bike at wikipidea.

Fastcursor reports that it is going to be priced around Rs.92,000. But I personally expect Bajaj to price it much lower, may be a good 10-15,000 below that mark. Even if the launch price remains that high, it may come down considerably in a year or so.

THE TATA ONE LAKH CAR AND SOME HUMOUR

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The Rs.1 lakh car from Tatas is in the news for a while now though exact details have never been known since it's conception. The news these days is that Tatas are working on building a new plant in several places including West Bengal and Uttaranchal. Meanwhile, some one decided to take advantage of lack of clear picture and showcase the likely car's appearance. Beware, it is definitely something along your line of expectation. See here for the picture!

FORD IS NOT IN SMALL CAR RACE

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At the launch of new variant of Ford Focus, Ford announced that they have no plans for a small car launch in India. I wonder why Ford doesn't want to launch one, especially when they already have cars like the popular Ford Ka, which can fit the bill. It is fairly obvious that small cars are big in India, and every one who has missed the bus, like GM and Toyota want to join the small car party. Why would Ford want to stay away from this, I can't comprehend.

THE NEW WAGON-R

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Maruti has come out with a new WagonR. The changes seem to be more cosmetic than anything else though they have added some additional features to the upper versions. It seems to be starting a new trend of adding accessories usually found in bigger cars to the B segment cars. The top version comes with ABS, dual air bags and electric mirrors that are definitely new to this segment.

Other than that they have changed the grille, which makes the car look slightly better. The once odd looking front number plate which was comically located a little off from the center is now in proper place. But otherwise, changes don't seem to be much. Engine remains the same. Maruti just seems to have done a face-lift like they did with Zen a couple of years ago.

But what would be much desired and may become popular is the version that comes factory fitted to run on LPG – a first in India.

See more details and pictures on WagonR website.

NOW IT'S TWO WHEELER COs HIKING PRICES

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After Maruti and Hyundai announced price hike on their cars, it's the turn of two wheeler companies to increase prices. Increasing input costs are forcing automobile manufacturers to hike prices. Now it's the turn of Bajaj and TVS to increase prices by Rs.500-1000 It would be no surprise if Hero Honda also falls in line. Read more.

CHEVY OPTRA HATCHBACK VERSION - SRV

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GM India has launched hatchback variant of the Optra, called SRV. The SRV falls into the premium hatchback section, a category where others have not found success. Ford's Fusion and Hyundai Accent Viva are the two other cars that are currently available premium hatchback cars in India.

The SRV does not have multiple variants, and comes with a 1.6L engine that delivers 101bhp. But it comes with an option of additional features which GM calls 'option pack' which adds airbags, alloy wheels and a few more things. The SRV is priced at approximately 7 lakhs for the basic version, and around 7.5 lakhs with the option pack. See more details and specifications on GM India's webpage on the SRV.

HONDA CIVIC IS FINALLY HERE

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Honda has finally launched the car that everyone is waiting to see in India - the Civic, Honda's most popular car ever.



Civic comes with a vTEC engine that delivers 132BHP, with manual and automatic transmission options, with 5 speed for even automatic transmission. The automatic transmission seems to be really hi-tec, with a manual override option just at the press of a button!

The Manual version of the Civic costs around 10.75 lakhs while the automatic is around 11.5 lakhs. For more details, see the Honda India website which has excellent details on the car.

ANOTHER NEW DATE FOR LAUNCH OF CHEVY SPARK

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I am tired of keeping track of the proposed launch date for Chevy Spark. GM has been talking about it for a couple of years now, and the dates are always moving forward. Here they go again, and have announced a new date - first half of 2007. The previous date they had given was around last quarter of 2006, but this is not just the second time they are announcing new date.

GM failed to realize the importance of having a small car in India as quickly as they could. Now, I wonder if a Spark would be too outdated a car to launch in 2007. GM has missed the bus, and they better return to their design lab to make amends.

FUEL INJECTION TECHNOLOGY FOR BIKES COMES TO INDIA

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Fuel injection technology has replaced carburettors in cars and has become de facto technology in India for a few years now. But bikes had stayed far behind and no bike in India had fuel injection for the engine so far. Things are finally changing. Hero Honda has now launched new Glamour, which uses fuel injection technology. It comes at a cost though - buyer will have to shell out an additional 5,500 for this bike now! Bajaj is following it up very soon, and they will be launching Pulsar with fuel injection, called Pulsar DTSI-FI.

An additional Rs.5,500 seems really steep, but once Hero Honda(and Bajaj) manages to achieve the scale, prices may come down. But till that happens, buyers may think twice to pay so much for a motorcycle that delivers only 9BHP and has only 4 gears. But Fuel injection is a worthy technology that helps reduce emission levels and also enhances the power delivery from the engine. Someday in future when stricter emission norms come into place, all bikes on the road may have to use fuel injection.

See Hero Honda's website for more details on the bike.

NEW VERSIONS OF CHEVY TAVERA

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General Motors has launched two enhanced versions of the Tavera. They seem to be basically the same car with improved interiors. The new versions are called Tavera Neo LS B3 and Neo SS D1. The names seem to be as unintutive as it can get. The models are priced around 7.2 lakhs and 9 lakhs respectively. The most interesting thing about Taveras(not only the new models) for the buyer is the fuel economy, which GM claims to be(according to Overdrive magazine) 14.3kpl overall and 20.1 on the highway. That's definitely something to consider in the days of fuel price hike. See GM India website for more details on the models.

DRIVING TRIPS

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Driving to some nice destination over the weekend was a hobby limited to the westerner a decade ago. We in India have caught up fast with this fancy, and it is indeed a great way to spend time. I have been doing this since the time I bought my first car, and have made several journeys so far. While most of them were weekend or three-day trips, there were two occasions when I have taken a week off and spent all of it driving in the hills of south India. I love these driving trips and keep looking forward to one all the time. It has been a while since I have made a trip, since I was spending six months travelling across India, but I intend to do more of them this monsoon season. Here are some trip reports from the past.

Driving from Bangalore to Goa via Jog and Murdeshwara
Riverside picnic - Places around Bangalore
Hampi
Hills of South India
Driving in rain: Jog falls, Karwar, Kali and Goa

A NEW ELECTRIC BIKE IN INDIA

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After several years since we have had an electric car, we now have an electric bike. Brought out by Ace Motors, it costs a little above 26,000. Charging it is said to take around 6-8 hours and it can run for 70kms at a maximum speed of 25kph. What is interesting is that you don’t need to register the vehicle. See more of the story.

I wonder why market leaders do not make an attempt to go beyond traditional products. India's only electric car - Reva was not made by Maruti, Hyundai or the Tatas but a small unknown company in Bangalore. It seems to be the same story with bikes. I wonder if it is because they don't see much money in it?

INSURANCE TO GET COSTLIER

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You have had fuel price hikes. And then manufacturers want to hike car prices because fuel prices have increased. Add to that, starting next January, you may end up paying more money to insure your car.

Car insurance in India has always been cheaper than global levels. Prices were regulated and there were only a few limited parameters that were used to set the premium. Things are going to change from January 2007. You may pay up much more if you are accident prone, or if your car is unsafe, or if it is bought in a region where car theft is more common, or if the model you have bought is prone to theft, or... Essentially, insurance companies will decide the premium on many such factors and the cost of insuring the car may go up considerably. So expect to pay much more for a car if you are planning to buy one in 2007 or later.

This is a pricing policy that is commonly used in the west. The new pricing method means that you need to be very careful with your car. Frequent crashes and problems can drive up the cost of insurance and owning the car may become prohibitive. At the same time, no claims for a long time may help you cut down insurance cost.

FORD FIESTA AGAINST HYUNDAI ACCENT VIVA DIESEL

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Business standard has a story, comparing Viva and Fiesta diesel versions. Frankly, I don't see any reason why they should be compared at all. Everyone knows that Accents are a generation old car, already making way to the new version - Verna. But the Ford product is brand new and has got rave reviews from every corner. Here is the story, which throws up no surprises. Accent Viva is a more powerful and faster car, producing almost 15bhp more than the rival. But Fiesta beats the Viva in every other aspect.

LOOKOUT FOR A PLUSH MAHINDRA BOLERO

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M&M is launching new versions of Bolero at the higher end, named Sportz and SLX. The new versions are going to make the Bolero slightly more refined, though changes don't seem to be significant. The additions include keyless entry, four speaker music system and a few other features. See Bolero website for more details on the vehicle.

TAX BREAKS FOR CARS RUNNING ON LPG, CNG

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Just as the news of increase in fuel prices breaks out, government is planning to cut excise duty on small cars running on LPG and CNG by 8%. The small car definition is as it was stated in this year's budget.

The duty cut, of course would make no difference for cars that are retro-fitted with LPG or CNG. Interestingly, there is no car currently available in the market that is factory fitted to run on CNG or LPG. But Maruti is soon rolling out Wagon R which runs on LPG. Government is hoping that the duty cut will encourage other manufacturers also to look into alternate fuel options, and hence, may be eventually reduce some fuel consumption and pollution on our roads.

FUEL PRICES INCREASE AGAIN

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It was expected to happen someday, and I am sure Government of India and the finance ministry must be thinking that they needed to increase the prices a little more.

Though every one seems to whine and fret, I doubt if anyone would try and cut down using their personal vehicles. At least for most people I know, there is no trouble in affording the additional price they have to pay up. I think that goes with most people. Some one who can spend Rs.40,000 on a two wheeler or Rs.500,000 on a car would well be ready to pay for the fuel too. The affected people would be the ones who use their vehicles as part of their work - like ones who need to be moving around in their bike, car or commercial vehicles for the whole day.

Personally, I have no complaints even if the hike was much higher. I have been trying for sometime to reduce dependency on my personal vehicle, and the hike will only become a motivator.

BARGAIN HUNTING

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In case you are planning to buy a car sometime soon, it is better to check out possible discounts before you pay up what the dealer asks for. Economic times has a listing of discounts available this season on cars in all segments. Take a peek at it before you decide what to buy.

BARGAIN HUNTING

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In case you are planning to buy a car sometime soon, it is better to check out possible discounts before you pay up what the dealer asks for. Economic times has a listing of discounts available this season on cars in all segments. Take a peek at it before you decide what to buy.

ROLLS ROYCE: NOW IN A SHOWROOM NEAR YOU

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Yes, Rolls Royce is now sold in India, Mumbai to be precise. If you wanted to buy one but was worried about all the importing formalities, your time has come now. It will set you back by 3.5 crore, the money that can buy you more than a 100 Maruti 800s! And the numbers that the dealer is hoping to sell - 6 to 7 cars a year to start with! Read the story here.

NEW REPLACEMENT FOR ZEN IS MR WGAON?

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Only a few days back, I was musing about what went wrong with the new remodeled Maruti zen that was launched a few years ago. The news is abuzz these days that Maruti has already zeroed in on a replacement they were planning for sometime.

MR Wagon, a Suzuki small car that was sold in Japan a few years ago will be sold in the name of Zen in India. Obviously Maruti does not want to kill a successful brand name. They say MR Wagon is not a relative of the Wagon R, but a look at the images and specifications indicates otherwise. It seems to be another tall car like the Wagon R and I doubt if it is a good alternative to the feminine looking Zen. While the new MR Wagon is being readied for the Indian market, check with your Maruti dealer, you may get some fat discounts on the Zen, with Maruti trying to clear up the inventory.

Also - June issue of Autocar India magazine has a first look at MR Wagon.

HARLEY-DAVIDSON IN INDIA?

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Well, that's what I read on a news report today! The famed Harley-Davidson, which is known for its big, bulky, mean cruiser bikes is planning to sell it bikes in India. I am sure there are many people in here who drool on these bikes and presume it to be the ultimate symbol of masculinity, though I doubt if there will be many buyers. Read the story here.

People at H-D say that the problems they have with entering India is the stringent emission norms and steep tariffs. I am no economist to comment on the tariffs, but the stringent emission norms are definitely a nice thing. And Harley better send in only the bikes that don't leave everyone behind it choking for oxygen if they want to be here.

COMPETITION SANS FRONTIERS

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If you thought Bajaj and TVS compete for their place in two wheeler market in India, that's just part of the story. They are trying to get to every place on earth where they can find a market. They have been planning out Indonesia for a while, and now it is South America. These companies have been known to be innovative in both technology and marketing front, and people are acknowledging that they now have two wheeler technology that is as good as any other manufacturer in the world. Let's wish them all the success in their endeavor to conquer the world!

THE NEW ACCENT: VERNA

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The word has been out for a while that Hyundai Accent has a successor, and it will be called the Verna. There were talks of selling the old Accent and the Verna side by side, similar to Ford's Ikon and Fiesta, but it may not be so, as Accent's production has already stopped. Verna is likely to be out in the Indian market sometime in the later half of 2006.

Verna is supposed to be a much bigger car than Accent, somewhere the size of the Honda City. The Indian Verna is still not out of Hyundai's test track, and there are no reports about it. But a few lucky auto journalists have already had a look at the international versions of Verna, and the response is mixed. The folks at Autocar India got a chance to play with the Verna at Singapore and do not seem to be very impressed, while the guys at BS Motoring who drove it in Korea seem to love it.

INCREASE IN FUEL PRICES IS GOOD!

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In the last few years, more and more people in the country are saying no to public transport and buying a means of personal transport. Sales of two and four wheelers have continued to show double-digit growth, but if the fuel prices continue to increase further, things may change to some extent.

Yahoo reports a poll result that a third of Indians see public transport as more viable option owing to rising fuel prices. This is still a small number, but further rise in prices may see more people opting out of personal transport. See more about the original report on ACNielsen web page.

Less cars and bikes on the road could mean a lot to our cities. We can breath the air that is a bit cleaner and see our roads less congested. Even better, we may see fewer children walking into hospital complaining of lung problems. But that needs more work on improving public transport and some commitment from people to give up driving every day.

Personally, I have been struggling for more than a year to cut down the usage of my car and have met with partial success. Though fuel prices did not deter me from using the car, traffic situation and worsening air quality did. I now use the bus to travel to work as much as I can but still get tempted to use the car occasionally. I almost never take an auto-rickshaw and take public transport when I have time in my hands and my destination is well connected. And I am now using a two-wheeler instead of the car unless I need to go long distances. I am happy that I am doing a bit to reduce CO emission, but I still feel the need to do more about it. And I feel that if we all do our bit to avoid driving unless necessary, we will be helping to make our city much more livable.

MARUTI CITIBANK CO-BRANDED CREDIT CARDS

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You might have seen full-page ads in your newspaper a few days ago. Maruti and Citibank have launched a co-branded credit card, and Maruti has taken every effort to ensure that everyone knows about it. This is not the first time that a car maker is launching a co-branded card. Toyota has already done it with ICICI Bank.

It is an interesting development in the auto industry. Interesting because, most of the automobile services are traditionally weary of credit card transactions. Customers were usually asked to pay cash or cough up an extra 2-3% surcharge on the bill amount. A credit card launch by Maruti may or may not change such things, but if the manufacturers make a push, credit cards may slowly become more acceptable in the industry.

So it doesn't matter if you would want to get one of these cards, or it doesn't matter if this card would be of any benefit to you directly, but eventually it may help you to make your payments easier next time you get your car serviced.

END OF MARUTI ZEN

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A few months ago, Maruti Udyog quitely decided to shut down production of its once best selling car - Zen. Sales of Zen had gone down to less than half of its previous year level, and Maruti probably did not see a point in continuing with it. As someone who liked the car, I pondered what exactly happened with it.

The decline in sales probably started after the Zen was redesigned and given a new look some time in the end of 2004. Was the new look bad? Not really. in fact, they had done a good job with the looks, and the new car looked contemporary. But when they undertook this major change in Zen, they did not look at anything beyond changing the external looks and adding some fancy accessories such as chrome finish gear levers or the fog lamps that never get used.

The zen did not really need a change of engine or gearbox. It had an excellent gearbox, and the engine performance matched its counterparts. But users of Zen had some long standing complaints: first, about the low road clearance which often caused problems in our bumpy roads, and second, the height of the car. To give an example, a friend of mine who was slightly above 6 feet was looking for options of buying a car. He tried out a Zen and figured that his head nearly touched the roof when he was sitting in the driver's seat, so he had to abandon it. As they were anyway going for an overhaul, Maruti could have considered looking into these problems. But they did not seem to have listened to their customers.

Another problem was with the variants in the new look Zen. The no-frills version - LX, which did not have power steering, central lock or power windows was not exactly in anyone's favour. The next version, LXi, which had all these accessories is what most people would have gone bought, but it had its quirks. It did not have some really essential things - such as the left side rear view mirror and rear window wiper. And the mirrors were not internally adjustable. Such irritants did not make the buyer happy. And if the buyer wanted these things he had to upgrade to the top version - VXi. VXi had many unnecessary frills such as chrome gear lever, fog lamps(chrome handles?) and such things that no one would ever want, and costed a whopping 30,000 more than LXi. That made it prohibitive. So a buyer had to give up on essential accessories or pay through the nose, which suited no one. I know two of my friends who were die hard fans of Zen and wanted to buy a Zen and only Zen. They were deeply unhappy though they eventually bought the top model, but you will not see many people that loyal.

So most buyers probably did the next best thing - go for a parallel car like Wagon R or Santro, or upgrade to next level, which could be the swift. But is Zen a car that Maruti can do without? I personally don't think so. Wagon R, the other car in the same price range is not a suitable alternative to Zen. So Maruti may end up sending out their customers to go and buy Santros. A few who can afford might choose the swift and another few who do not mind Wagon R may go for it, but my guess is that Santro would become the most suitable alternative for Zen. With Maruti having no immediate replacement for Zen in pipeline, they will only loose out an opportunity to sell an additional 3-4,000 cars every month.

FIAT FREE CHECKUP CAMP

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If you own a Palio, Petra or Siena, call up your Fiat or Tata dealer; they may be running a free check-up camp for your car. It is going to be a month long affair where the Tata-Fiat dealers will have a look at your car and give necessary advice. See more about the story here.

TVS APACHE: MARKETING ON A CD

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I picked a copy of Autocar India today from the news stand. When I went home and opened the magazine, something fell off from it. It turned out to be a CD about TVS Apache. They were innovatively marketing it on a CD.

The people who have worked on the CD seem to have done a good job of it. it is made using macromedia flash, and has some interesting images of the bike, feature and specs and more things. There are some goodies for the intersested - like some games, wallpapers and screen savers for download. Most of the stuff on the CD are also available on the TVS Apache website, and there is also a contest. Have a look at the site.

BIG PLAYERS GETTING INTO USED BIKES MARKET

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Finally, used bike market is seeing some action like used cars. Companies like automartindia and Maruti Udyog have been active in the used cars market for some time now, and have given some safety and reliability to buyers, though at a price. A similar action is now likely to be seen in two wheelers too.

Although it is not going to happen soon, TVS and Hero Honda have plans to enter used bikes market. Hero Honda is already running pilot projects in a few cities, so it may not be long before they are in your city.

The good thing about organized players getting into used vehicles market is that buyers can be assured of quality, reliability and authenticity of the product they are buying. Inexperienced buyers could easily get swindled otherwise. Of course, all this goodness comes at a premium, and the buyer has to decide if he is ready to pay it up.

CHEVY AVEO USER REVIEWS

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Most of the auto magazines have now finished reviewing the Aveo, and if you are among those who are about to buy a new sedan, you might have already read a few reviews. Now, with the car out for sometime and available in the showrooms for test-drive/bookings, user reviews have started trickling in on the web. Mouthshut has a few reviews of the Aveo, and most of the reviewers seem to be impressed with the car. The biggest complaint made by auto magazines was about the gearbox. Some of the users have also expressed similar opinions. Read the reviews here.

MAHINDRA BIKES?!

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This seems to be interesting. Economic times thinks that Mahindra and Mahindra intends to get into bike market, and they are conducting a due diligence on LML's bike plant. The story also says that M&M is in talks with a chinese company. Would we be seeing some Mahindra bikes on the road in the years to come?

GROWTH IN AUTOMOBILE SALES

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Many of the automakers in India seem to be cruising fast on the growth highway. I was looking at the April figures of a few car and bike companies that was announced in the last few days, and a lot of them have a good story to tell.

Skoda reports 54% growth in vehicle sales
Tata Motors - 51%
TVS Motors - 35%
Bajaj - 37%
Hyundai - 30%
Honda - 27%

Of course, there are a few who don't have such exciting numbers, but no one has a sad story. It's the market leaders in both cars and bikes who seem to be going a bit slow.

Maruti - 13%
Hero Honda - 6%

MID SIZE CARS

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If you are looking forward to buy one of the mid-size sedans, i.e., one of Chevy Aveo, Ford Fiesta, Honda City or Maruti Baleno, you should be looking into current issue of Overdrive magazine(May 06). It is full of information and would be a useful tool for the buyer. Here is all that you can find about mid-size cars in the issue:

1. A full review of Chevy Aveo
2. A comparison of GM Chevrolet Aveo and Ford Fiesta - I am sure lot of people have been looking for this information.
3. A full-fledged comparison of all the four cars mentioned above. No surprises about who is the winner. Japanese technology rules!

In addition, I must mention that I am mighty pleased with all the content I found in the current issue of overdrive. Most of the information is relevant, readable and useful. And international coverage is limited to how much it should be. There are some more useful information like review of Kinetic Blaze, Bajaj Platina, buying used Palio, a brief long-term usage report on Honda City VTEC ZX, Maruti Swift and Octavia vRS, some stories on Indian rallies and many more stuff that are useful, meaningful and relevant. I look forward to more such readable and useful content from India's auto mags and a limited, moderate coverage of overseas cars like Lamborghinis or Jaguars that are almost never seen in India. I had once mentioned my discontent about too much unrelated content in auto mags - a thing that is fortunately not the case of this issue. And what I would look forward to see more in Overdrive is some focus on domestic auto industry news, which is not well covered.

AUTOMOBILE POLLUTION

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I had mentioned a few weeks ago in this blog about congestion and pollution in our roads. I had written that our government should not promote usage of personal vehicles by reducing taxes, but should work to encourage usage of public transport by improving the facilities and also imposing congestion taxes on private vehicles.

A report from Center for Science and Environment, New Delhi hints in similar lines about the problem of pollution and congestion in India. Read more about the report here.

KINETIC BLAZE: A PREMIUM SCOOTER!

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Kinetic Motors is venturing into a relatively new area by launching a gearless scooter - Kinetic Blaze. Blaze is a premium scooter and is priced around 50,000 - a price level where you don't see options for scooters.

Blaze runs with a 165cc, 12bhp engine. It is said to be first of the seven vehicles from Italian two wheeler maker Italjet Moto that Kinetic is bringing to India. See Kinetic Blaze's pretty website for more information(Thanks to Akshat for the link)

NEW BIKES FROM SUZUKI

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I was having a casual conversation with a friend today who mentioned about a new Suzuki bikes show room opening near his house. Curious, I decided to figure out what they are upto.

Sure enough, Suzuki was launching two new bikes in India, adding to the already crowded market of bikes, dominated by Bajaj and Hero Honda. Suzuki is offering two models to start with - Heat and Zeus, both with engine capacity of 125cc. Exact date of availability of these bikes is not know, but they should be out on the road very soon. See news story here.

Also see the Suzuki website for detailed specifications of Heat and Zeus

A CONVERSATION WITH IIMB STUDENTS

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A bunch of students from IIM Bangalore wanted my opinion about Maruti Udyog and the Auto industry for a project they were working on. I had a chat with them for around 15 minutes and answered to a few questions they had. This had happened nearly 3 weeks ago, but I could not post it here since I was travelling then. I don't remember the exact set of questions and answers, but here is an approximate transcript. So some questions/answers might have deviated from the original conversation and this is a best effort to put whatever I remember.

Q: What are the reasons for the success of Swift?
A: Swift was priced right. It found a small gap that existed between all the B segment cars(That is, Zen, Wagon R, Santro) and the next level. It was pitched at the level of Getz but would cost much less. And Maruti always has a loyal set of customer who would rather upgrade to a Maruti. And it is a good product and is good looking, which helped the success of Swift.

Q: The question was about Baleno, Esteem and such dated models
A: Maruti badly needs a replacement in this segment. They have a big bunch of loyal customers who would rather upgrade to a Maruti instead of shifting to some other make. But the existing dated models are a deterrent and Maruti really needs a new car in this segment. A radical change in Baleno(something similar to what they did with Honda City) would really help.

Q: Why does Maruti have a loyal band of customers?
A: Primarily because of they have great service. And their service network is vast which really helps.

There were a few more things that we discussed but this is as much I could recall.

(YET ANOTHER) BUDGET BIKE FROM BAJAJ - PLATINA

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Bajaj has launched yet another bike in the entry segment, named Platina. Platina is a 100cc bike and will sell at 34 to 36,000 rupees.

So many budget bikes have come(and gone) in the last couple of years, I am confused. Just to show how confused I am - I am writing this post only with things I already know, without deliberately doing further research on it.

A few of these new bikes might have stayed on to be successful but the models have been changing so often that you won't be able to buy these bikes on feedback from other users anymore. Just a few months and the model won't be sold any longer, and will be replaced by something else with a new name.

Bajaj used to have other entry level models - CT100 and Boxer priced similarly. I think the boxer is no more, but I don't know about the the CT100. It is similar story with Hero Honda. They used to have models by name Dawn, Joy, etc in the entry segment and I have little idea if they still exist or are replaced. Some of you probably haven't even heard these names. Sometimes a similar story unfolds on the more expensive bikes too. I am not sure if Hero Honda's Passion is still sold, but I know that Ambition was in the market for only a few months and was quickly replaced by Achiever(Again, I hope I haven't got the names wrong). With so many bikes flooding the market, I don't even know much about what is happening with LML, Kinetic and TVS!

This name game can confuse anyone. It gets more and more difficult to buy a bike based on recommendation from someone you know. I am not sure what prompts two wheeler makers to adopt such a strategy. I wonder if they are shooting in the dark with many models and letting the ones that make the mark to continue?! After all, I don't think it is cheap to launch a new bike - you would need some changes in the manufacturing facility, and you need to pump money for advertising it. But in any case, two wheelers are anyway selling in big numbers and I guess there is a room for such experimenting. Or may be it is becoming a tough market with many players and you have to be aggressive to keep moving ahead?

MAHINDRA SCORPIO CROSSES 1 LAKH MARK

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A few weeks after Hyundai marked one million cars, it is the turn of Scorpio to register a milestone - one lakh vehicles. Scorpio was launched in 2002 and it took nearly four years to cross the one lakh mark.

A few months ago, in November 2005, Mahindra's Bolero had managed to cross the one lakh mark. Scorpio's milestone came only a few months after Mahindras launched an all new Scropio with more than 40 new features. Read the full story. Also see the impressive Mahindra Scorpio website to know more about the SUV.

CHEVY AVEO WEBSITE

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GM has put up a some pretty pages with lot of information on Aveo on their website. The site has more details on the features and specifications and the models. A hatchback version would be rolled out sometime later this year, which could compete with Swift and Getz, but the website does not mention anything about it.

The pricing looks fair and competitive for the lower end models(1.4, 1.4E), with a 94bhp engine and power steering, windows and central locking as standard. The prices for the 2 higher end models(1.4LS, 1.4LT) are good too, but not as aggressive as that of the other two. There are some good images on the website and the car definitely looks pretty. Especially adding to the look are a nice grille and the bow tie symbol. The website is informative and worth a look.

GM is doing a good job in getting the right kind of publicity, and ensuring that everyone who would want to buy a car in its class will also put Aveo in the prospective buys(Very unlike the Corsa which was hardly an option for many). But they seem to have taken the same course as Ford Fiesta, in hiring movie stars for endorsement(Rani Mukherjee and Saif Ali Khan) and using some new jargons(VGIS for Aveo, like it was Dura for Fiesta). Here is what the website says about VGIS:

The Variable Geometry Intake System makes the Aveo an intelligent car. Drawing inspiration from the human body, this cutting edge technology enables the car to vary its air intake according to need, just like a runner who breathes in a normal manner while walking and automatically starts breathing faster while running.

Whether Aveo will make a mark or not, it is good news for the customer, who is now getting more choices in a segment that did not have many options a few years ago. And it is good to see that most of the cars in this segment are fresh new and offers the latest. Besides, more competition may very well mean that some of them may start offering discounts in the days to come.

CHEVY AVEO: MODELS AND PRICING

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Chevy Aveo will have four variants available in India, priced between 5.55 to 6.85 lakhs(ex-showroom, Thane). That means the starting on-road price would be somewhere near 6 lakh mark. Below are the variants and the prices:

1.4E - 5.55 lakhs
1.4L - 5.74 lakhs
1.4LS - 6.14 lakhs
1.6LT - 6.85 lakhs

There is no diesel version available yet, but GM is working on one. See the full story.

Update: The version mentioned above as 1.4L is called just 1.4 in GM's website. Besides, 1.4E will be available only from August.

HYUNDAI'S ONE MILLIONTH CAR

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Hyundai has rolled out its One Millionth car from its facility at Sriperumbudur, near Chennai. The one million mark has been breached 90 months after inception, is said to be the fastest in India. Its probably the second car maker after Maruti to reach one million mark in passenger cars.

CHEVY AVEO: BETTER DAYS FOR GM?

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General Motors has always been on the loosing side since they stepped in India. When Ford and GM come to India, they both made similar mistakes - of pushing old and useless models that no one really wanted, and a budget at which few people would have bought at that point of time. Ford India corrected their mistakes quickly in launching the Ikon. But General Motors never had much success. Nothing seemed to work for them: none of their cars - Astra, Vectra, Corsa or sail really made a mark in the Indian market. Things began to look up a little with Optra, which was accepted fairly. Tavera did not really begin well, but Toyota seemed to be kind to GM, and the sales of Tavera seemed to have gone up considerably since the exit of Qualis.

With Aveo coming into the market, GM should be ready to gather some more market share. Initial feedbacks for the car have been welcoming(See fist look at rediff). With Aveo being the much needed replacement for Corsa, and a small car coming up by the end of the year, GM will be able to offer something for the buyers in all segments, which may see some change in the company's fortunes in India. Aveo should be made available by third week of March. And Chevy Spark, the resurrected Matiz, which ran into problems of acquiring Daewoo plant, is likely to be launched by the end of the year. GM India is finally making the right decisions, and we have to wait and watch for it to take fruit. But it is very much likely that GM is going to see better days in India in near future.

REDUCED PRICES, MORE CARS AND MORE TRAFFIC JAMS

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This year's budget has made car buyers happy. And it has made car sellers happy too. The cut in the prices is substantial and that is very much likely to increase the sales. I have an ad from Maruti in front of me, which lists the price cuts.

Alto: Rs. 18,605
WagonR: Rs. 22,597
800: Rs. 13,838
Zen: Rs. 24,283
Baleno: Rs. 8,000

There are no price cuts on the Swift.

The question I have is - if the government encourages people to buy more cars and drive them on the same roads, how long can we sustain? Most of our cities are already congested and the travel time is increasing every day. More cars can only worsen things unless the new roads are built to support them. But the trouble is that it takes a long time to get the infrastructure in place but the cars will be on the road very soon. An increase in vehicles and more traffic jam also means more pollution and health disorders. In a city like Bangalore where I live, half the children are known to have some breathing disorders, and it only gets worse.

This is a time when most cities in the world are jacking up buying and driving prices of personal vehicles. Singapore introduced congestion taxes long ago to encourage using public transport. London has introduced congestion taxes since 2003 and it seems to be working. More countries in Europe are planning to go this way. What we now need is a step in similar lines. It can't be done in haste, and requires effort in improving public transport system to a degree that one feels convenient to take the bus. But working on these directions is the need of the hour to avoid congestion, ensure pollution free cities and faster movement from place to place.

END OF ROAD FOR MARUTI ZEN?

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It looks like the days of Maruti Zen are over. Its falling sales, which were cannibalized by Maruti's newer models like the Swift, Alto and the Wagon R are making Maruti to consider stopping production of their once best seller B segment car. This may not come as a surprise to most. Being one of the older cars on the road, Zen was getting dated, and the newer models of Maruti cannibalized the sales of Zen. It was spruced up to a new look in end 2003, but that was not sufficient. Maruti failed to address some important complaints that customers had about the car - less road clearance and height. But Zen did have its advantages in the longevity and reliability of its aluminum engine, best fuel economy in its class, a very stable body and a very refined engine.

But all is for good, and Maruti has decided to replace the existing Zen with a completely new car in the same range, with the same brand name. This again indicates the maturity that Indian car market is arriving at. It is common in the evolved markets to launch completely new makeover of a car with same brand name. Maruti is taking a step in the right direction.

NO STOPPING MARUTI UDYOG

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When Maruti launched its tin box - the 800, no one would have thought it will be such a huge success. It was then the only modern car in India, and it sold like magic. Maruti was an instant leader in the Indian car market, and there was no turning back.

The company never gave up its leadership in the Indian market. It did make some faux paus, like launching the Maruti 1000, which was received badly. There were other models like the Gypsy and the Versa that did not go too well. But most of the cars from Maruti were a success. And just when 800 seemed to be in its last days, Alto became the next gold mine of Maruti. When more car makers flocked India and cars like Santro and Matiz were released, everyone thought Maruti's share in the car market would come down to 30% or so. But it was not to be.

Even now, nothing seems to be going wrong with them. If the sales figures are to be believed, last few months must be one of the best in recent times for them. Launch of Swift, which was received very well with buyers, has boosted the sales considerably. Though it took a long time for people to accept its ugly shape, Wagon R has finally gone up in sales numbers and has finally moved above Santro in numbers. Alto is the largest selling car in India now. There is no stopping swift. Maruti has shown excellent growth figures of 41% in their Q3 numbers. It looks like they are going to hold on to their leadership for many more years to come. Obviously buoyant, they are investing more in production facilities.

But there are a few things that Maruti needs to work on. They have no cars to offer when people move up the value chain. They must remember that they have excellent service records, which prompt their consumers to look for a Maruti first when they are upgrading. Their C segments models - Esteem and Baleno are dated and need a serious overhaul or a replacement. They have no premium cars in the offering, which needs to be looked into. Maruti has the most enviable position of being loved by their consumers, who wants to stay with Maruti when they upgrade. But the company can remain a leader only when they can offer something for buyers in all the segments.

MORE VEHICLES FROM HINDUSTAN MOTORS - MITSUBISHI COMBINE

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There was not much activity of Mitsubishi brand in India, and Lancer was the only car for a long time if you exclude the Pajero, which you don't see often on the road. There is some activity seen lately. HM has now launched an improved Lancer Cedia. The next in line is another SUV from their stable - Mitsubishi Outlander. The Outlander is currently road tested, and may take sometime to be on the roads. Autocar India has the first drive in Feb 2006 issue, and reports that it may have a price tag of around 15 lakh and would be competing with the Honda CRV. The Outlander had a 2359cc engine which will deliver 170bhp at 6000rpm.

In another news, growing demands of SUVs in India is prompting HM to treble production of Pajero from current 40 per month to 120 a month.

THE INFLOW OF SUVs

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The last two years have seen lot of SUVs coming to India. The Indian car buyer is now more mature than ever, and also has more money than he ever did. Add many other factors - easily available finance, ease of importing completely built units by manufacturers and selling them here, and a growing resistance to SUVs in the west and hence the reduced sales. All of it are encouraging manufacturers to import SUVs to India, and we now seem to have more SUVs than small cars in India, never mind that their sales are a fraction of that of small cars.

Here a small list of all the SUVs you can see on the Indian roads.

* Maruti Grand Vitara
* Tata Safari
* Mahindra Scorpio
* Hyundai Terracan
* Hyundai Tuscon
* Ford Endevour
* Chevrolet Forrester
* Mitsubishi Pajero
* Toyota Land Cruiser Prado
* Honda CRV
* Porsche Cayenne
* Nissan X-Trail

MITUSBISHI LANCER CEDIA

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Just when the Lancer was looking old and dated and was being ignored by car buyers, Hindustan Motors has come out with a new version of the car - Lance Cedia. Cedia will have a sportier look and will cost more than the old Lancer. The existing version of Lancer will not be discontinued and Cedia will be sold along with its elder brother. The new Cedia will have a price tag that may be just above 10 lakhs. Autocar India magazine of February 2006 has a comprehensive road test. The test drive reports that the car has an excellent fuel efficiency of 10.2kpl in city. A brief report on the first ride is available online. Lancer Cedia comes with a 1999cc and 115bhp engine, dual airbags and has a top speed of 195kph.

TOYOTA DROPS DAIHATSU SMALL CAR PLAN

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Autocar India reports that Toyota has decided not to go with Daihatsu Boon, a small car that was earlier planned to be launched in India. The car would have been a rival to Matuti Swift if launched, but it is said that Toyota officials were not convinced about its likely success, since Boon is a much smaller car. Instead, Toyota has returned to the drawing board and intends to design a new small car for markets of the developing world, including India. So those who were looking forward to own a small Toyota will have to wait for 2 or 3 more years.

HERO HONDA PLEASURE

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It is very unlikely that you have missed the TV ads of Hero Honda Pleasure. They have made sure that every one notices it. It seems like a nice strategy to launch women’s a scooter at a time when Hero Honda has to compete with its technology provider - Honda Motors in the area of motorcycles. Besides, the market for scooters is almost monopolized by Honda Active and hence provides some room for other players to enter and compete. The 100cc scooters did not see much of action after Kinetic Honda was pushed back by new generation products. This seems to be an excellent step from Hero Honda, but we need to wait and watch to see how it works out. At this point, Hero Honda targets to sell 1.2 lakh units in 2006. There are no reviews available yet, but if it is a technically good product, unlikely it will fail.

BUSINES STANDARD MOTORING - CAR OF THE YEAR AWARD

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This year's BS Motoring Car of the Year award has been awarded to Swift. Its no surprise to see swift winning it, with no real contenders other than Ford Fiesta. See the details on contenders and evaluation.

Here are the other award winners for this year.

Bike of the Year: TVS Apache
MPV of the Year: Toyota Innova
Executive Car of the Year: Hyundai Sonata Embera
Import Car of the Year: Audi A6
Jury Award: Ford Fiesta

Here is details on the awards.

AUTO EXPO

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The biennial event Indian Auto Expo is round the corner. Auto Expo is Asia's largest Automotive show, held in Pragati Maidan, Delhi. It has additional importance and interest this year due to foray of many new automobile companies to India, and India emerging as one of the leading automobile markets in last year or two.

The expo is participated by leading manufacturers in the world. The stars of this year's expo include a fuel cell car from Honda - Honda FCX and Maruti's second SUV coming to India - Escudo. Skoda will showcase its SUV - Yeti.

But There are many dark spot for the expo. GM and Hyundai are unlikely to participate and so is Daimler Chrysler India. But these companies may hold their own mini shows somewhere in the premise.

FORD FIESTA USER REVIEWS

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For those who are looking forward to buy Ford Fiesta, some user review from people who have bought it or experienced it may be helpful. Mouthshut has some such reviews on the car. The opinions so far seem to be on the positive side.

GOOD BYE TO THE OLD HORSE: BAJAJ STOPS PRODUCING CHETAK(FINALLY)!

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The end was seen to be nearer though we could not tell when. Finally, they days of one of the most popular two wheeler of its time - Bajaj Chetak is coming to an end. Bajaj has stopped production from December 31st 2005 and are hoping to sell off whatever remaining inventory by March. Read the full story.

I am infact surprised that there is no big media coverage or obituaries for this 'icon' of a two wheeler that once ruled that Indian roads.

SKODA LAURA

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Skoda's new car Laura, launched recently, adds to its line of luxury cars. The feature packed Laura comes at around 17 lakhs, and like other Skoda cars, is said to be good value for money. The car features a 1.9 liter engine which delivers 105 bhps.

The car has feature packed interiors which includes 6 air bags, a refrigerator compartment, climate control system, cruise control, ABS, ESP(Electronic Stability Program) and much more. See Skoda's Laura webpage for more details and pictures.

LUXURY CARS FLOCKING INDIA

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As India is becoming a larger and more mature market for cars, more and more car makers and new models are hitting the Indian markets. What is surprising is that more people are betting on luxury cars costing big money than the small and volume markets. In a report that could be of surprise, as many as 30 new luxury cars are about to hit the Indian roads, which includes companies like Audi, Bentley, Porsche and more. Read the entire story on Rediff.

FINALLY, A MAGAZINE FOR BIKES!

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Most of the auto magazines in India claim to be car and bike magazines. They don't live up to the claim. You either see very little or no coverage on bikes. And occasional coverage you do see may be more about Harley Davidsons and Bmws, not Baja and Hero Hondas. Now some one has stepped in and decided that its time to have a mag only for bikes. I was pretty surprised to see a new magazine on the stands named 'Bike India'. The issue I noticed had a review on Hero Honda Achiever on the cover. Frankly speaking, I am doubtful if there would be a good market for the biking mag, but I wish them all the best and hope that they stay put and prosper.

THE YEAR END DISCOUNTS

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For those who are planning to buy, it is normal to see some discounts in December. I just noticed a couple of ads on discounts which I am posting here. I shall add to it if I see more. If you know any other offers, do post a comment. Of course these discounts may come with riders, check carefully before buying.

Chevrolet Optra: Save 75,000 to 1lakh. 1 year free insurance, 3 year or 30000km free service. 3 year or 60000km warranty. Includes finance incentive.
Chevy Tavera: Save 50,000 to 60,000. Includes finance incentive.
Maruti Zen: Save up to 22,000. Free insurance, free MP3 player.
Maruti Wagon R: Save up to 35,000. Details unknown.

In addition, you may be getting some perennial discounts on Fiat Palio and Open Corsa models like the Corsa sedan, Swing and Sail. But these are obviously models that are not doing very well in the market.

CARS IN INDIA - A MATURING MARKET?

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A few days ago, Maruti recalled more than 2000 units of Versa to replace a faulty component in its exhaust. A few years ago, recalling cars citing manufacturing defects was almost unheard of in the Indian market. It was a much discussed news when Honda recalled some early models of the new City a few years ago, but it seems to have become an acceptable and understood practice now and Maruti's recall has not created so much of a news. It could well be a sign of car market getting more mature in India and accepting practices in the global market, and at the same time becoming more responsive and responsible about quality issues and consumer satisfaction.

MARUTI HIKES PRICES

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Price hikes have become common these days. I have lost count of how many companies have increased prices how many times, and not it is the turn of Maruti to increase prices. The hike will be effective on all models and will be up to Rs.15000 and this will be effective from January.

There is also a line of thought that the price hike, which is declared much in advance could well be a gimmick to make customers rush to buy before the hike gets effective. Read more on it here.

CHEVY AVEO: THE REPLACEMENT FOR OPEN CORSA

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So everyone now know that General Motors will soon phase out Opel Corsa models in India and it will be replaced with Chevy Aveo, which is expected to be launched in February 2006. The fact that the news is public should have sent the sales figures of Corsa models to very low figures and it must be available for a good discount now.

The Aveo is originally designed by Daewoo in Korea, which is now owned by General Motors. Aveo will be launched in both Hatchback and Sedan versions to replace the Sail and the sedan Corsa respectively. There is no news about a station wagon model that could replace the Swing. There are many rumors about the engine capacity and the pricing of the versions of Aveo. "CAR India" magazine says that both versions will have a 1.4 liter, 95bhp engine. ET says there would be option of 1.4 and 1.6 liter engines. ET also proposes the price to be around 4.5 to 5 lakh for the hatchback and 6-7 lakh for the sedan, an estimate that does not need any expertise to make! See images of both hatchback and the sedan here

The launch of Aveo hatchback should heat up the upper B segment, which is now dominated by Swift and followed by Getz. The sedan should give some life to the ageing group of lower end sedans comprising Indigo, Esteem, Corsa and the Ikon, assuming that Aveo falls in this price range.

GM had never had things going good for India and it might change if Aveo makes a mark with the Indian customer. With Open Corsa being phased out, GM seems to be up to reducing focus on Opel brand in India and give more emphasis on Chevrolet instead.

TVS VICTOR EDGE AND A BAD EXAMPLE IN ADVERTISING

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If you have seen the recent ad from TVS about their bike - TVS Victor Edge, you would be surprised about what they are up to. When did corporations forget about their responsibility and started throwing away all the rules in public? The ad glorifies a dad who drives dangerously in a zig zag manner in heavy traffic, with no regard to traffic rules, lane disciplines and speeds, just to bring his kid’s homework to school. And the dad is picturised as the hero on his bike, which they call "traffic cutter". Whatever happened to the days when automakers talked about wearing helmets, road safety and things like that? This is the ugliest form of advertising I have seen in a long time. Where would they go next? Would they encourage you to jump signals? Drive past yellow lights at great speeds? TVS needs to wake up and make ads with more responsibility.

I decided to take this up with TVS and have written them the following email. I sincerely hope they take it seriously and respond to my mail sensibly. Here is the copy of the email:

"I saw your ad on the bike TVS Victor Edge, described as 'traffic cutter'. I have to say that it is shocking for a company like yours to encourage bad driving on roads - in a zig zag fashion at high speeds with no lane discipline and complete disregard to rules. I request you to be more repsponsible with your advertisements and take this particular ad off air. I hope you take a quick action on this."

BBC TOP GEAR INDIA EDITION

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I was out grocery shopping 2 days back and noticed the BBC Top Gear magazine's India edition. I had not seen that before and picked it up out of curiosity.

The first thing that stuck me was if it is really the Indian edition! As if to prove that, there is an Indian editorial board and there are some little mentions about cars available in India. Discount that and it looked as if you bought it somewhere in the west. One of the few articles on India vehicle was too outdated to be there - it was a comparison between Indigo, Esteem and Ikon. I finished the entire mag in less than 10 minutes and put it away! I think the people of Top Gear will be better off reselling their European edition as such, or at least never bother to sell the mag in India.

VALUE FOR MONEY

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Are you looking for a value for money mid-size car and don't mind going for diesel and make some minor compromise? In their recent feature, rediff recommends Hyundai Accent Viva CRDi against many other cars compared.

THE ACCEPTANCE OF NEW CARS

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In the last year or so, more and more customers are embracing newly launched cars. Most of the new cars launched recently seem to have become a big hit. This could well mean that Indian customer is moving up the value chain fast or that there are so many buyers that any thing new just sells out, the former being more likely.

Look at the facts. The new City ZX already has 2000 bookings. When the new City was launched a year or so back with a complete makeover, it was actually a big hit to every one's surprise. Ford seems to be doing well with Fiesta getting more than 2000 bookings. The swift created waves when it was launched and so did Innova. It is important to note that most of these models(except Fiesta) were remarkably different from any other cars, which shows that people do like their cars to be special and distinct.

But there are exceptions too. Hyundai Getz and Ford Focus were two new cars, which stood distinct from other cars but did not so much tickle the buyers. This is where we see that value for money is an equally important factor, with both cars being priced much higher than their nearest counterparts.

MORE AUTO COMPANIES LOOK AT INDIA

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Now that most of the automakers are here - either to sell their cars or to do some research and development or to outsource some dirty work or to buy spare parts. The way things are going, no one can ignore being in India. The latest to open an India subsidary is Rolls Royce. No, this is not about selling or making Rolls Royce in India yet, but to manage their growing volume of engineering work that it is sub-contracting. Read the complete story.

THE NEW HONDA CITY ZX VTEC

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If the initial response for Honda’s new Civic ZX is any indication, Honda's winning spree with the new City seems to be continuing. They already have 2000 bookings only a few days after the launch. The reviews have been good too. This month's Autocar India magazine has a peek into the car for those interested. Their verdict - "A fast fun to drive, comfortable and practical car"

When Honda phased out the old City and brought out the new model, a variant with VTEC version was missing altogether. It's now back with the ZX. ZX also features a 65mm longer bonnet that gives it a smooth taper in the front and makes it look a little less unorthodox.

Here are the features to look for:

Engine Capacity: 1.5 liter
Power: 100bhp
Engine Specs: 4 cyl, 16 valve, sohc

Price: 8.41 lakhs ex-showroom Mumbai

FORD FIESTA WEBSITE

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"Go Fida" seems to be their punchline for Fiesta. Since success of the Josh Machine campaign, they have been using Hindi words to promote their vehicles('Karega' for Fusion).

It is surprising that Ford did not have a website on Ford Fiesta when they launched. Finally its out and you have all the details you would want to know including images, features, variants available, booking a test drive etc. Pretty interesting design with lot of flash and nice images, and of course Abhishek Bachchan with that car. Go here.

TATA INDIGO IS GOING PLACES

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Tata Motors seems to be having an unstoppable run. We all know about Tata Motor's first breakthrough in international markets for cars came when they signed up Rover to export Indica to UK two years back. Tata cars have gone places since then. Indigo has been known to be selling well in South Africa. Tata Motors is planning a production unit for Indigo in Russia. Indigo will be hitting Saudi Arabia soon. Success seems to be following the Tatas wherever they go. Tata Motors has really come a long way from a few years back when they declared a gigantic quarterly loss of 500 crores in 2001. Read about an article on Tata Motor's success on Rediff.

SPEED WEEK ON DISCOVERY CHANNEL

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If you are an enthusiast for cars, racing and high speed, discovery channel has something for you this week. They are running what is called 'speed week', a series of programs on fast cars, high speed, racing and technologies involved. The program runs every day on the channel from 20th to 25th of November at 10pm. Enjoy while it lasts!

FORD: SOME POOR MARKETING

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I had requested Ford for more information on the Fiesta. A representative from Ford called me today to inquire my interests. It turned out that he was not very informed himself. Apparently there are four variants - 3 in petrol and one in diesel. I wanted to know how much power do each of the variants have, and he started telling me the engine capacity(cc) instead. I tried to make my question clear by asking again as to how many bhps is each variant. It turned out he did not know what a bhp is! He shouted to his colleagues for an answer but no one knew!! He said he shall get back to me later with the answer. I did not put him many questions but just wanted to know when can I get a test drive of the car. All the information that I got was that my request shall be forwarded to a dealer and they will inform me once it is available.

GENERAL MOTOR'S WOES IN INDIA

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Since the time they are in India, GM had never had any thing going good for them. And things seem to be continuing that way. Opel Astra, their first car in India was a car fit for the archeology department and that’s where it seems to have ended up. Further launches of GM never made it big in India. Opel Corsa did not click either. Many people don't even know that they sell a premium car called Opel Vectra. Chevy Forrester has no different story to tell. They were hoping to make some dent into the most popular and most important segment - the small car market by buying off Daewoo India and selling the erstwhile Matiz as Chevy Spark. With inordinate delays in acquisition, they are fed up and have shelved the plan now. Only Optra has brought some relief to GM. There is news that the next car in GM's line is Chevy Aveo to be launched in 2006, and we need to wait to see if it makes any difference to GM's fortunes.

When every one is going ga ga about selling cars in India and new models are launched almost every month, and all automakers are realizing India as a good market, GM seems to have remained more of a spectator. It still remains to be seen if they really have any serious plans for India.

THE RS. 1 LAKH CAR

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And I thought only Tatas are trying to make a 4 wheeled passenger vehicle(I am now not very sure if I should call it a car) costing Rs. 1 lakh. There seems to be a bigger lot of them. Every one who has some technology and money seems to trying to make some thing of the kind of a car at that price point. And the list includes

- Bajaj Auto
- TVS Motors
- Piaggio