Indian Car Industry - Volumes August '12

Car Industry - August 2012

Key Highlights:

Maruti's volume was hit very hard, due to the workers issue at Manesar plant. This episode resulted in lowest ever cumulative sales in the past 2 years. Alto, Wagon R, Ertiga, Eeco and Omni being made in Gurgaon facility, has not been affected. Alto and Wagor R has secured the top positions. After all these turmoils, Maruti still is in 1st postion.

Hyundai fills the 2nd position. I guess, some of the Verna magic is rubbing off on Elantra too. Combined with snazzy look, super interiors and low pricing strategy has made Elantra the leader in D1 segment. Verna and I20 has grabbed the opportunity that came their way, the manesar issue has came as a boon for them. When the rest of the industry was limping, the Hyundai was running!

Tata takes back 3rd position from Mahindra. The hatch backs (Indica and Nano) has done the magic. The Bolero, Scorpio and XUV 500 is leading their respective segments. Mahindras "Cheetah" (XUV 500) sells 4000 units for the 2nd month in a row, which is really amazing!

Toyota Innova and Fortuner had an excellent August. But the sedan and hatch back is reaching no were! There is nothing much to cheer about at Ford, except for Figos that makes its cash register rings.

Followed by Chevrolet, for which Beat (Diesel) heatens up the scene. The facelifted Cruze has gone un noticed!  

OLD CAR VS NEW CAR

Here i am taking you through pros and cons of buying a pre-owned car.

PROS

• More options for your money: More or Same car for lot less money. For the price of a new car you can bring home a well-maintained pre-owned car from a much higher segment. Sedans from higher segments (C and D) lose as much as 40% of their value in the first year alone! My friend who recently bought an one-year old Corolla Altis, which retails for almost Rs.14, 00,000  had it for about Rs.8, 50,000! These days a 3 to 4 year old Honda City, Mitsubishi Lancer or Maruti Baleno will go for close to the same price as a new Alto.

• Reliability: With most cars on the market today, long-term reliability is part of the package. A well-maintained sedan with 40,000 km on the odometer can be considered a virgin. 

• Certified pre-owned cars: Certain authorized dealerships now offer certified pre-owned cars.  Maruti and Mahindra is doing it for the past few years. While these cars carry a premium on their price tags, they are put through an exhaustive inspection and change of parts to ensure a near-new car experience. 

• Extended warranties: If the pre-owned car you are looking at is only a year or two old, you can take advantage of an extended warranty. There are two types of extended warranties: those that cover almost all components (like a new car warranty), and others that warrant only the engine and transmission.

• Financing availability: Financing is now available for used cars, though your financial institution may have restrictions on the models. 

CONS

• Maintenance: This is an often-overlooked factor. The cost of maintaining a pre-owned car of a given price will be more than the cost of maintaining new car of the same price. For example, a 5 lac rupee pre-owned Honda Accord or Mercedes Benz W124 will cost more in upkeep than a new 5 lac rupee car.

• Difficulty in finding: There is much effort involved in searching for a pre-owned car that suits your taste and budget. You may have to scan many advertisements and visit several dealerships before finding the car for you. It is not as simple as walking into a showroom and filling the order form for a new car.

• Not the latest: The best deals to be had are often on cars that are a generation or two old, such as older Honda Accords, Toyota Qualis, and Maruti Zens. Of course, there are also some good deals available for current generations.

• Higher interest rates: Potential customers generally buy pre-owned cars with cash. The interest rates on used car loans are significantly higher than on financing for new cars. 


• Car history: Pre-owned cars may have been damaged by negligence, floods, or accidents and only superficially repaired. Verifying car history can be a time-consuming chore.

SKODA RAPID REVIEW

Skoda Rapid

Who can forget the Octavia that was, in its time, the best selling C+ segment car.  The Rapid as Skoda says is sequel to Octavia (not in all terms). Rapid is an all rounder sedan. The model has been largely inspired from its siblings Fabia and VW Vento.

Exterior:

The first time you look at a Rapid, it seems like you are looking a Vento with Fabia’s front end slapped onto it. This could be a good and bad thing for VW. Having 2 nearly identical cars could result in sibling rivalry. The numbers may fall for the Vento, as the Rapid is expected to undercut the VW in pricing. Here the tactics used by the parent company can be to combine the sales of Rapid and Vento and take over Honda City or Hyumdai Verna.

It's when you start taking a closer look at the Rapid that you realize the bonnet extends over the front fenders. The front bumper is redesigned as well, though the headlamps, grill and fog lamps are inspired from the Fabia. The sides look exactly the same as the Vento and you’ll be forgiven for not being able to tell one from the other. At the rear, the boot lid, rear bumper and tail lamps are all new, but looks similar to others in the skoda family.

Can you spot any difference? On the left its a Skoda Fabia and on the right its the Skoda Rapid!

Skoda is offering the Rapid in 3 trim levels. There’s the base 'Active', mid-level 'Ambition' and the highest 'Elegance'. And to a surprise both, the Ambition and Elegance variants are available with an Automatic. The Elegance is kitted with 15” Alloy wheels, climate control, electric mirrors, driver and front passenger airbags, ABS and an audio system with SD card slot + Aux input. Steering mounted controls were sorely missing, the Skoda could have facilitated atleast the Elegance model with these. The Active variant has just the basic features and no safety kit. This trim level is probably best for the taxi segment only, or those on a very tight budget.

Rapid and Fabia share the same grill, headlights and fog lamps

Rear three quarter view: Side profile is identical to the Vento, typical Skoda tail-lamps.

The Rapid undercuts not only the Vento, but also the Honda City, Hyundai Verna and Ford Fiesta. The Rapids's fully-loaded variant is priced a whopping 60,000 rupees lesser than the Vento Highline. And the Rapid ends where the over-priced Fiesta doesn't even offer its starting variant. Further, the Rapid AT is now the cheapest Automatic sedan you can buy in the country, the Rapid Ambition AT is priced only Rs. 50,000 more than the Hyundai i20 AT.

Interior:

Well, if you’ve sat inside a Vento or Polo, well, you’ve been in a Rapid too. The interiors are nearly identical to the Vento. You will only notice the different colour combination of the interiors. Where the Vento has a grey shade on the dash, the Rapid gets a browner colour. The Rapid uses beige only for the seats, door pads and lower half of the dash. The best part is the black carpeting which obviously doesn’t soil as easily as beige, as seen in Vento.

The interiors look almost like its VW siblings

The Rapid is facilitated with the 4-spoke Skoda steering wheel that is similar to the one in the Fabia. The steering isn’t leather wrapped and were not having mounted controls, not even on the fully-loaded Elegance variant! The AC vents are lined with a shiny black finish which doesn’t look as good as the brushed aluminium of the Vento. Also, the Rapid has a shiny chrome finish on the gear knob, climate control buttons, audio system and headlight switches.

The front seats are comfortable even for 6 footers. The height adjustable center armrest is incredibly comfortable. The gear knob resembled an inverted golf club (typical Skoda). The foot area is well spacious, although a dead pedal is sorely missed, especially on the AT variant. 

Golf-club shaped gear knob

Driver footwell is spacious. Though, dead pedal is sorely missed.

At the back, you'll find good legroom even behind a 6 foot driver. The seats are comfortable with good thigh support. It's important to note that the rear seat is comfortable only for 2 passengers, and not 3. The primary reason being the transmission tunnel which severely restrict foot room for the 5th passenger. Rear passengers also get AC vents, though I didn't find them to be helpful, as the blower isn't powerful enough.

Audio head unit comes with a SD card slot and Aux-in, the steering wheel did not have any mounted controls. A real bad miss.

The audio system is a basic unit that doesn't get the USB input or steering mounted controls that the Vento recently got. It can read from SD cards though, and does have an AUX-in.

The Skoda Rapid has been launched in India at a price of 6.75 - 9.19 Lakhs (ex-Delhi).

Hits:

• A well-built European car.
• Better package than the Vento at a lower price.
• Superb diesel engine.
• Mature ride & handling setup.

Miss:

• Skoda's scary after-sales-service.
• No steering mounted controls, USB stereo, parking sensors etc.
• Petrol engine isn't as impressive as the diesel.
• Tall rear floor hump makes the Rapid more suited as a 4 seater, than 5.

Maximising Car Fuel Efficiency

In India there’s never good news when fuel prices are revised, since revisions have almost always been incremental. Fuel in India is now more expensive than ever before, making fuel efficiency a significant concern for any car owner. 

Here I enlist the various methods by which you can squeeze the most out of each drop of fuel. Each step by itself will account for a small increase, but if practiced in combination can increase your Fuel Efficiency by as much as 20%!

DRIVING STYLE

• Avoid clutch riding: Do not keep your foot on the clutch, except for when changing gears. Driving with your foot on the clutch results in “wastage” of engine power, which in turn increases your fuel consumption and wears out your clutch rapidly. 

• Smooth Driving: Aggressive acceleration and braking significantly increase the fuel consumption of your car. How you drive is very important to Fuel Efficiency. 

• Minimise Idling: If your car is going to be stationary for an extended period of time, switch the engine off. 

• Choosing the right gear: Shift up as “early” as possible without straining the engine. Being in a higher gear at too low a speed, or in a lower gear at a very high speed increase your fuel consumption. It is important to for most cars, the ideal shift point would be anywhere between 1500 – 2000 rpm. 

• Maintain a constant speed: Varying speeds do not make the car as efficient as a constant speed will. Especially when out on the open road, try to maintain a consistent rate of travel.  Keep within the speed limit of 80-90 to maximize the Fuel Efficiency of your car. 

OTHER MEASURES

• Appropriate tyre pressures: It is very important to maintain manufacturer-recommended tyre pressures to optimize the level of rolling resistance. And do not over size your tyre.

• Keep the car well maintained: Your car will gulp fuel voraciously if it is not in the right state of tune. Make it a point to keep your air-filters clean, engine oil changed and your engine healthy by sticking to the manufacturer recommended maintenance intervals. 

• The right fuel for premium cars: High-compression engines do not operate properly on the regular octane fuel available in India. To improve efficiency, it is important to use manufacturer-recommended grades of petrol. 

Fuel price hike in Mumbai in last 10 Years

Indian Hatchback Market - A Comparison

Friends, here i am taking you through a comparison of hatchbacks. I have considered only B & B+ segments for this equivalence and so you will not find all the cars in hatchback division. Please read and drop your suggestions. TY.

Fiat Punto


The Fiat Punto has been launched in India at a price of 4.90 - 7.36 Lakhs (ex-Delhi).

HITS:

• The most stylish hatchback on our roads today.
• Fuel efficient diesel.
• Superb ride quality.
• Excellent maneuverability.
• First class safety feats, ABS & airbags (even on the diesel variant).

MISS:

• Rear bench space.
• Interior quality is strictly average.
• Petrol not fuel efficient.
• No high powered engine.
• High engine noise when you speed up (on both variants).
• Service does not match the standard of competitors (Maruti, Hyundai).

Honda Jazz


The Honda Jazz has been launched in India at a price of 5.75 - 6.31 Lakhs (ex-Delhi).

HITS:

• Excellent build quality.
• Extremely spacious interiors.
• Fuel efficient.
• Flexible storage solution (magic seats).
• Light & easy to drive around in city.

MISS:

• Ride quality poor at low speeds.
• Low rpm torque delivery is weak.
• Level of equipment, poor.

Nissan Micra


The Nissan Micra has been launched in India at a price of 3.98 - 5.29 Lakhs (ex-Delhi).

HITS:

• Semi Retro styling.
• Quality, well-designed, interiors.
• Driver airbag standard across the range even in base variants.
• Diesel engine offers stunning driveability. Fuel efficient as well.
• Suspension tuned for comfort.
• Keyless entry & go, engine start / stop button, electric folding mirrors, climate control.

MISS:

• Three-cylinder petrol engine.
• ABS brakes removed from the diesel Version.
• Poor under-thigh support on the rear seat.
• Thin dealer network.
• Nissan's cost of ownership is not yet known.

Toyota Etios Liva


The Toyota Etios Liva has been launched in India at a price of Rs. 3.99 - 5.99 lakhs (ex-Delhi).

HITS:

• Spacious interiors can easily carry 5 adults.
• Effortless to drive within the city. 
• Safety package (Airbags, ABS & EBD) optional on middle variant too.
• Toyota’s ownership experience & excellent after-sales. 

MISS:

• Poor 1.2L engine.
• Stark interiors, as a part of cost cutting. 
• Cheap interior quality & unconventional dashboard.
• Missing equipment feats (climate control, height adjustable driver's seat etc.)
• Engine, suspension & road noise are prominent.

Ford Figo


The Ford Figo has been launched in India at a price of 3.81 - 5.94 Lakhs (ex-Delhi).

HITS:

• Sturdy build and construction.
• Interiors more comfortable than chief competitor Swift.
• 1.4 Diesel's proven driveability and fuel efficiency.
• Mature big-car-like ride quality.
• Extremely spacious boot, 284 liter.

MISS:

• Lacks the modernity in looks of recently launched hatchbacks.
• Both engines lack in outright performance. Neither engine can exploit the car's dynamics.
• No true top-end variant (tilt adjustable steering, rear power windows, MID etc.)
• Average backseat legroom.
• Ford's sub-par dealership experience.

Chevrolet Beat

The Chevrolet Beat has been launched in India at a price of 3.59 - 5.61 Lakhs (ex-Delhi).

HITS:


• Funky styling inside & out.
• Light, easy to drive and chuckable.
• Unique superbike-inspired speedometer.
• ARAI fuel efficiency topper.
• Chevy's 3 year service guarantee.


MISS:


• Compact 170 liter boot. 50 - 60 liters smaller than competition.
• Horribly undertyred (155 mm width).
• Some goodies missing (driver seat height adjust, steering mounted controls)
• Small rear window.
 

Volkswagen Polo

The Volkswagen Polo has been launched in India at a price of 4.34 - 6.7 Lakhs (ex-Delhi).

HITS:

• A well-built solid European hatch.
• Clean and contemporary styling.
• "Big car like" ride quality.
• Neutral handling & mature road behavior.
• Fuel efficient range of engines.
• 280 liter boot.

MISS:

• Poor 3-cylinder engines. Does not match the segment benchmarks.
• Ordinary rear bench legroom.
• Thin 40 dealership network.
• VW's cost of ownership is not yet known.

Maruti Suzuki Swift


The Maruti Swift has been launched in India at a price of 4.22 - 6.38 Lakhs (ex-Delhi).
 

HITS:

• A good looking car Interiors are well-designed too.
• Competent engine range. Very refined motors.
• Balanced ride and handling.
• Terrific fuel efficiency, especially from the diesel version.
• Effortless to drive in the city; extreme fun on the highway.
• Maruti’s excellent after-sales service & wide dealer network.

MISS:

• Small, impractical boot. Luggage capacity is severely restricted.
• Mediocre brakes (LXi / LDi & VXi / VDi).
• Looks nearly identical to the outgoing generation car.
• Rear seat space, though improved, still isn't "spacious".
• Pricey ZXi / ZDi variants.

• ABS no longer an option on the middle “V” variants. 
• Long waiting period for delivery. Runs over 6 months in some cities.

Hyundai I20


The 2012 Hyundai i20 has been launched in India at a price of between 4.73 - 7.67 Lakhs (ex-Delhi).
 

HITS:

• New Fluidic styling, excellent looks. 
• Best of the class equipment list (auto headlamps & wipers, keyless entry & go, reverse camera, electric folding ORVMs etc.)
• Big, practical 295 liter boot.
• 5 star safety equipment rating. Upto 6 airbags, all-wheel disc brakes, ABS & EBD.

MISS:

• Underpowered 1.2L petrol engine. Offers mediocre performance on the highways.
• Light & sensitive steering at speed.
• Diesel variant differs of Re. 1.5 lakhs (on the road) over the petrol.
• Asta variants prices like more powerful sedans.
• Hyundai's service costs are usually higher than that of the competition.

When buying a new car...

The first car ran on Indian roads in 1897. As early in 1900’s it was only a maharaja of a princely state or a business tycoon who owned a car. The scenario has changed now. It’s a buyers market out there and the ball is in our court. Gone are the days of the Premier Padmini and the Hindustan Ambassador being your only choices for a new car. With most major international brands available in a showroom near you, it’s never been a better time to buy a car. 

Here I would like to list some recommendations that you should take to get the best out of your new car purchase.

Mercedes Benz - B Class: Cheapest ride from merc's stable. Estimated price: 18-22 lakhs. Expcted Launch: Late 2012.

First things first

• Budget: The price is of paramount importance when it comes to the purchase of a new car. One must have proper arrangements for finance. First and foremost decide on the price range you would like to look upon.

• The right car: After deciding on your price range you should outline what sort of car best meets your needs. If you are a family of two there isn’t a need of a large MUV. In the present scenario, a wide range of makes and models would fit your budget.

• Proper Research: Research a car’s future depreciation by looking at used car values in your city and make a point of finding information on fuel efficiency, service costs and insurance premiums. 

• Diesel or petrol: There was a time when diesel engines were considered to be a curse, those days are gone. Common-rail technology has brought diesels to a level of performance and reliability that is at least equal to that of petrol cars. New age diesels are lightning fast, super efficient and offer better drivability than petrols, but there is a price premium to pay. But if you look at it from an EMI perspective( EMI+Monthly running cost) the diesels would be cheaper. 

• Safety Options: I would thoroughly recommend safety options such as ABS, airbags and traction control systems in cars. Consider cars that offer these options. 

• Go for a test drive: Never buy a car based solely on someone else’s opinion, even if it is that of a world-renowned automotive expert. What is right for someone else may not be right for you; think about details like the comfort of the driving position and engine responsiveness.

• The best time: You should avoid buying a car in December; by waiting less than a month your car will be a year newer on paper. Always wait for discount seasons, there are times when people stay away from buying due to superstitions. That’s when you gotta grab your piece of cake. 

Mahindra Ssangyong-Korando: This will be the second model from mahindra ssangyong tie up. Pricing will be competitive with an expected base price of Rs 15 lakhs when the car goes on sale in late-2012.

Other points

• Exchange: If you want to exchange your old car, don’t tell the salesperson until the deal is on. This will prevent dealers from buying your old car at the lowest price and selling your new car at the highest. Dealerships make a lot of money on used car sales. 

• Buy insurance yourself: Dealerships profit from fat commissions on every insurance policy sold. Don't buy insurance coverage from the showroom; instead, shop around and take quotes from 3 - 4 insurance companies / agents. You stand to save anywhere between 20 - 40% on insurance by shopping yourself and bypassing the dealer here!

• No Claim Bonus (NCB): Simply put, the NCB lets you transfer the insurance premium benefits of your old car to your new one if you have made no damage claims. Your old car must be sold or transferred to make this possible, but the NCB alone will save thousands on the purchase cost of your car! 

• Extended warranties: Extended coverage for your new car is always a good idea. Even the most reliable cars have occasional defects and parts for modern cars can be tremendously expensive to replace. 

• Accessories: Never go for any accessory from the showroom! Some authorized dealerships charge as much as Rs.4,000 for sun film on a hatchback, while an after-market option costs only Rs.1,200. Dealerships make a lot of money on accessories.

• Never buy any model which is running in the market for past 4-5 years. The company can discontinue(permanently/remodel) the model within that span of time. This will sorely reduce the resale value. (Read the note*)

• Never trust an ad or a salesman: Advertisements and salesmen can be misleading sources of information and their claims should always be taken with a pinch of salt. Verify important points with car owners.

Note* : Fiat has upgraded its models in the year 2012. The company is still left with old stock (2011). The most expensive model of Linea, T-Jet(Petrol) which was priced around 11 lakhs initially is now available at 6-7 lakhs rupees! Highly recommended for enthusiasts. Go to your nearest dealer right away! 

Ford Ecosport: A Mini-SUV from ford priced b/w 6-7.5 lakhs. Expected launch: Early 2013. 

MARUTI ERTIGA REVIEW

Maruti Ertiga – LUV (Life Utility Vehicle)

Maruti has taken a fresh approach to the compact UV segment, using the modern parts of the Swift, Dzire and SX4. The platform is that of a modern day passenger car. Maruti calls the Ertiga an LUV (Life Utility Vehicle), a new segment targeted at the urban buyer who needs 3 rows of seats in a compact body at a comparatively cheaper price.

Targeting and Positioning:

Maruti has positioned the Ertiga as a sedan-alternative and may not be looking at targeting the Innova or Xylo. Those who need the larger 7-seater MUVs will and should buy those; as the Ertiga isn't a substitute to a spacious UV that can easily accommodate 7 adults. Instead, the target customer is any middle aged buyer who usually opts for a B+ hatch or a C segment sedan. Maruti even refers to the Ertiga as a "5+2" seater, and not a 7 seater.

If you are considering a sedan like the City, SX4, Etios, Fiesta, Verna or Sunny, the Ertiga makes a case for itself by providing an additional row of seats with similar driving dynamics. In fact, the SX4 might face the biggest sibling rivalry since the Ertiga is newer, has the same engine, better space and is priced almost Rs. 70,000 lesser! Maruti must have taken a closer look at this matter.

Exteriors:

The Ertiga is brilliantly packaged UV if you only consider the compact exterior dimensions. The fact is, this Maruti shares its length & width with the Toyota Etios i.e. 4,265 mm X 1,695 mm. It's amazing how Maruti has been able to fit 7 seats (rather 5+2 seats)! The Ertiga is even shorter than most C2-segment sedans, including the City, Sunny, Vento and Verna. Reports say that Maruti is in talking terms with SIAM to reconsider Ertiga into a different class.

The long headlamps, front grill and bonnet closely resemble the Ritz. Thankfully, the rear isn't lifted from the Ritz (I seriously believe ritz has got a shoddy rear design)! The Ertiga has a tail design which shares a stark resemblance to that of the Honda Jazz, especially with the tail lamp which seems to have been adapted from the latter.

Maruti has richly supplied Ertiga with features. All diesel variants are equipped with ABS as standard equipment. Features wise, the L variant is strictly for taxi & commercial owners. The V variant makes for the most value-for-money choice with ABS, keyless entry, electric mirrors, front & rear fog lamps and an audio system! (That’s a real bet for what you pay).

One would never guess that it's an MPV from the front view. Looks like a regular hatch from Maruti.

Design elements are minimal on the rear. Again, looks more hatch than MPV.

When you look from the sides, many will say that Ertiga resembles a stretched Honda Jazz (Check the rear lamps!).

Interiors:

The dashboard has been inspired from that of kisashi and is identical to the Swift & Dzire, except the Ertiga gets a different colour combo. There is beige & brown here, instead of the black & beige combination of the Dzire. Personally, I didn't like this combo too much. The most used parts of the car, the steering wheel and gear knob are full beige! It will be a pain to keep them clean. The upholstery including the seats and carpets are beige coloured too! In my opinion, the Dzire's black and beige combination would have done the trick. 

As told before, Ertiga's interior packaging is its USP. Getting in and out from the 1st or 2nd row of seats is as easy as taking a candy from a baby. The foot area also has reasonable space. Although dead pedal was missing, there is sufficient space to rest your left leg next to the clutch pedal. Frontal visibility is fantastic and after driving my Linea it was a totally new experience.

Legroom in the 2nd row of seats is a boon or bane. When the 3rd row seats are up, the 2nd row can slide all the way back, giving substantial legroom. But when folded the story is totally different! Getting in & out of the 3rd seat row will always be an exercise! The 3rd row is best suited to kids or short adults only. Make a healthy adult sit here and you've made an enemy for life!

Beige steering wheel and gear knob gets soiled & dirty in no time. Steering wheel is nice to hold and light to use. The Black colour of the head unit should have continued onto the air-conditioning panel below.  

The quality of the upholstery is upto the mark. Beige fabric lining on the door pads get soiled easily. Maruti shouldn't have used beige excessively on areas with frequent human touch.

Other Facts:

·    ARAI fuel efficiency ratings : 16.02 kpl (petrol) and 20.77 kpl (diesel).

·    The ground clearance is rated at 185 mm.

·    Has an interesting colour options to choose from, including a metallic maroon and brown.     However, there is no black colour option! 

·    Toyota sells a similar product, the Avanza, in Thailand and rumour says that the Avanza might be launched in India. Watch out Maruti! 

·    The Maruti Ertiga has been launched in India at a price of between 5.89 - 8.45 Lakhs (ex-showroom).

Hits:

• A 5+2-seater MPV at the price of a C segment sedan.

• Car-like ride, handling & driving experience.

• The diesel engines offers outstanding fuel economy.

• ABS available on all variants, except the base petrol.

• Maruti’s excellent after-sales service & wide dealer network.

Miss:

• Not a spacious 5 seater nor a 7 seater.

• 3rd row is best suited for kids.

• Minimal 135 liter boot capacity(all seats intact).

• Long waiting period for deliveries of the diesel Version.