Honda in India

Honda has always been the aspirational brand of the upper middle class in India. Honda Owners are always considered as those who have a class above the middle class in India. I still remember, in the early 2000 s, if someone owned a Honda City they were always looked up on by all in the society. The Honda Accord and the Honda CR-V were a class apart. 

Then came the Civic which took the D Segment by a storm. Radical styling, Cockpit like interiors and gem of an engine in 1.8L i-VTECH. The car was equipped with gadgetry much ahead of its time just as the looks as the looks suggested. Futuristic was one word to describe it. While on the other side, the City remained low on features, but zoomed up to the top on two pillars, Honda's brand name and the finest 1.5L i-VTECH engines.

By then, Honda had also moved into the small car space with the Brio Hatch. Cute car, fine 1.2L engine. It had come to make up for what the Jazz couldn't do. But the times had changed till then. It was the time when the Petrol Diesel Price gap widened and suddenly demand for Diesel Engines Surged. Maruti and Hyundai were the first to catch up with this change. Then came in the beloved 1.3 L Multi Jet from the FIAT which became the heart of Maruti, FIAT, Tata and Chevrolet.

Honda however was too adamant to realize this change and by the time they did, they had lost share in every segment.City was beaten by Verna, Civic by Altis and Elantra, Accord by the Passat and ofcourse the Brio by the Swift and i20. Honda gradually started to focus more on the mass segment cars. A diesel engine was brought in the face of Amaze followed by the new City and now the new Jazz.

In this transition however, Honda known as a premium manufacturer became a follower to the market demands. It struggled to develop a Diesel engine, offered the lowest equipment in its cars and ended up discontinuing it pillars the Civic and the Accord. 

Today no doubt the City and Amaze are scorching the sales charts but they are constantly threatened by Hyundai and VW. Honda has almost exited from the luxury space and is playing the number game. 

I believe in Honda still lies the quality of being a market leader, a premium brand an aspirational car. Hope Honda realizes it and gets back to the position it used to hold.

Hatchbacks, Cross Overs & More..

The most beloved segment of all car buyers in India is the Hatchback segment. India is the home of small cars and every home in India which owns a car, owns a Hatchback. According to figures, the hatchbacks comprise of 60% of cars sold in India. Hence, every car maker present in the Indian Market has a presence in this segment.

However, the past decade has seen a lot of changes in this Segment of cars. Upto the millennium era, it was majorly ruled by the A Segment cars which ranged between Rs. 1.8 lacs to Rs. 3.5 lacs. where major share was held by Maruti Suzuki with the likes of 800, Zen and the Wagon R.

As the market opened many new players joined in like Hyundai, Tata Motors, Fiat, Daewoo, Toyota, Nissan, Ford, Honda, Chevrolet, Skoda, and the recent entrants like Datsun.
The hatchback market not only saw new players coming but also emergence of various sub segments at various price points which ranged from Rs. 1 lac, the Tata Nano to the Rs. 25 Lac plus, Mercedes A class.

Today Hatchbacks have become just a form of design than being a term to explain economical cars. Hatchbacks today offer all the goodies that are seen on Sedans in the Rs. 10 lac plus bracket. This is majorly because the infrastructure in India is still conducive to low cost of ownership, low maintenance and ease of maneuverability. These are prime consideration factors in choosing a hatchback rather than merely a small engine.

The i20 Elite is the King of the segment in terms of interior space and on board features and gadgetry. While the VW Polo GT TSI and the Punto T Jet are hot hatches targeted at young buyers who are ready to pay the extra premium for performance. Another segment coming up these days is that of the Cross overs. The Polo Cross, Etios Cross, Aventurra and the latest i20 Active have given a new image to hatchbacks that offer bigger tyres, greater ground clearance, and better handling for tough roads.

Another segment that got added due to Government regulations was that of the Compact Sedans which was pioneered by Tata Motors with the Indigo CS. This concept was later adopted by Mahindra with the Verito Vibe, Hyundai Xcent, Maruti D Zire and the Honda Amaze. A compact sedan essentially meant a boot fitted on to a hatchback, yet maintaining the overall length to Sub 4 Meters to avail the excise benefit.

Automakers are well aware of the fact that to eat a larger piece of the pie named Market Share, constant innovation is needed to break the barriers and look at things with a different perspective. The success of i20 Elite, Etios Cross and the Polo GT TSI reaffirms the fact that there are buyers for all kinds of hatchbacks in India and that pricing is not a limiter in purchase decisions.

Young Indian doesn’t want to compromise on build quality; features, safety, looks, ride quality and drivability in their cars yet want enough practicality for it to be of everyday use, and a hatchback just fits in right. We shall wait to see what more unfolds in this segment.         

Compact SUV, an oxymoron

The year 2012 is going to be action packed as far as new automobiles are concerned. The year will begin with the much awaited Auto Expo ’12 @ New Delhi. A slew of new cars are waiting to enter the Indian car market. Many of these would of course be newer generations of existing ones like the Honda Civic 2012, Hyundai Elantra and many more.

However, one segment that has not been a favourite of customers or rather it contradicts the very essence of that segment is the “Compact SUV” segment. Yes, you guessed it, SUVs are meant to be meaty, huge and diesel guzzlers. However, in my opinion, it is the next in thing!! Most of the customers buy SUVs for their road presence and stature. But, with rising fuel costs, agony against fuel guzzling SUVs, and the ease of drivability in crowded Indian roads, compact SUVs can be of great utility besides being fun to drive off road.

Renault Duster

The first entrants in this segment will be the Renault Duster followed by the Ford Ecosport. The Duster may not perfectly fall into the Compact SUV category, but its price band of 7 to 9 lakhs will pitch it directly to the Ecosport and the upcoming Mahindra Xylo Compact. The Xylo Compact will also attract excise duty benefits on basis of its length. These SUVs will offer seating comfort, decent engine power, ease of driving and good fuel economy. I personally find the Ecosport from Ford to be very stylish and could be head turner at signals!!

Ford Ecosport

As a customer I am personally fond of such SUVs for the sheer traits that I mentioned above. Ease of driving an SUV is a major attraction that I have and this new segment fits just right. Although the market may take some time to accept this new segment. However if we see the BMW X1 and the upcoming Audi Q3 (to be showcased at Auto Expo’12) already fall into this category.

This means market does exist and those who do not want to give up the pleasure of an SUV along with economy will definitely move to this segment.

HOT Hatchbacks !!!

As we see a hatchback driving past us on the road, we hardly notice it. It is one of those cars which we often see on the roads in India. Hatches comprise of around 70% of the cars sold in our country. Till the year 2000 hatches were considered to be the entry level segment. But soon things changed. With the launch of the Santro, Matiz the market spiced up!! And then came the MADE IN INDIA Tata Indica which changed the game!!! The hatch back market since then has been a hot cake with launches from almost every car maker and the cars locking horns with each other to grab a piece of market share. But this happened in the hatch back cars which wanted to be frugal and sold in large numbers. Almost the same time when competition was popping up FIAT sneaked in the 1.6 Palio. This car began the race for HOT HATCHES!!!

It was FAST AND HOW!!!! The car was distinguished by its roof spoiler and super hot alloys!!!! And what set it apart was FERRARI RED colour!!! On top of that a 1.6 L engine with pure 100BHP of power!!! Push the pedal and the next thing you knew the car was flying!!! Although the car sold in pretty good numbers it still was a premature launch considering Indian consumers and their purchasing power. Chevrolet also took a chance and launched the Optra SRV. But it couldn’t set the sales charts in fire and soon disappeared.

However, now the time has come when such cars can survive and even grow in Indian market. The launch of the Polo 1.6 and the Fabia 1.6 asserts this belief. They offer 105 BHP of power and high amounts of torque. Also stepping forward are the Indica Vista 90 and the Punto 90. These cars are not the true hot hatches but have realized the importance of offering more powerful engine options along with the smaller engine variants which helps save Excise duty!!! And the surprise element comes from the fact that diesels are not left behind in this race.The FIAT Multijet engine which is used by both FIAT and TATA is also being turbo charged and launched. This has “TURBO CHARGED” the diesel hatchback market!!!  These more powerful small cars are targeted at the young buyers who wish to own a machine they can become one with, but are either held back by the pricing of larger cars or the size. Pitch them on city roads and they will drive like any other small car. But put them in the highway, shift up, push the pedal and u have more power than what u need!!! These are ideal for someone who is ready to pay a premium on a car which is a similar sight on the roads but knows what lies underneath.  

Amongst the upcoming cars we are awaiting the Jazz with the 1.5 engine from the City. This step would make the Jazz a true hot hatch. However, what worries me is the pricing and the positioning of the car along with the City. Jazz is overpriced and with a new engine option it could enter the City’s territory. The i20 form Hyundai’s stable is also a very capable performer. Should Hyundai launch a sportier model of this car, it will surely be worrisome for the other hot hatches because this car has everything that it takes to become a hot hatch, great looks, road presence and Hyundai’s trust. What it now needs is a 100 plus BHP engine.

Another car which I believe must come to India is the 1.6 VVT Swift from Suzuki. The Swift as the name suggests is already is a very sporty car. It can seriously bring jitters to the competition.

The companies must also make sure they differentiate the hot hatches from the other variants. These must be more sporty and stylized. With the right time, right price and proper marketing these HOT Hatches could create frenzy in the competition and even a segment above!! And the drivers, they just can’t get enough of the driving pleasure!!!  

 Now this is how a HOT HATCH DRIVES !!! 

KIZASHI, A GAMBLE

Its gonna be here soon.... It has created the buzz that no other Maruti has ever created before..... A Maruti for more than Rs. 15 Lakhs..... And you don’t get taken aback???!!!! ... thats not possible ... you wonder why does Maruti have to venture into this segment ... ??? How will Maruti succeed?? These are probably the questions everyone has in mind ... and cannot be answered until the car arrives on the 2^nd of February.

After giving a thought to these concerns I have arrived at the following two conclusions:

Firstly, what I believe is that cars from MSIL are no longer Maruti products, they are more Suzuki products. Suzuki wants to change the perception of being a small car maker and become a global player. It also wants to give the Maruti loyalists an opportunity to upgrade while sticking to the brand. Secondly, for the success Maruti needs to work upon factors like the Marketing of the product, segmentation within the competition and correctly understand and respond to the customer’s demands.

Now coming to the first factor, I believe it is a bold decision on part of Suzuki to bring the Kizashi to India because with the immense loyalty and brand recognition that Suzuki holds in India, people also have the perception of Maruti being a peoples car make just as VOLKSWAGEN (which means peoples car... which is just left in the name now!!!!) in India. This means a car maker which provides vehicles which are easy to drive and maintain and are generally the first choice of first time buyers. For Suzuki it is going to be a mammoth task to build up a brand image for cars which cater to the high end ...  here is where I like the concept followed by Toyota by having a separate brand Lexus for luxury cars. It abolishes people’s perception with the brand yet having the backing of a trusted name behind it. What Suzuki can do is develop another brand which would cater to the upper segment of cars may be starting from the SX4 onwards. The products can be manufactured at the existing facility of Maruti but marketed under a different brand name.This will help customers shed the inhibitions of using a Maruti product and be more satisfied by using a global product from Suzuki’s stable. And being a Maruti product people will not be sceptical to invest in it and also building a network of sales centres will not be difficult. Though Maruti will have to spend in brand building of the company along with developing the brand of the product itself.

The other alternative that I believe that Maruti could use is that if conceiving a new brand is difficult then it can come up with A class showrooms just the way TATA Motors has started F class showrooms for the Nano in the Tier II towns. These showrooms would sell only the upper segment cars from Maruti stable. These showrooms would have characteristics like a good ambience, well trained staff and all the sales and service facilities of the standard of the showrooms of companies like Skoda, Volkswagen, Toyota, Ford etc. These showrooms would help Maruti overcome the “perception problem”.  As I had read in one of the reviews it is essential for Maruti to understand that the customers in this new segment which it is about to enter, are very different then what it has been catering to all these years. These customers demand Quality, Design, Power, and Comfort for which they are ready to pay the extra price. These customers look for an entry level luxury car which could lift up their socio-economic status. As result brand value becomes important to them.

As a product, Kizashi seems upto the mark. The 2.4L engine which produces 178 BHP could be the most powerful car in its class. Reviews and pictures also suggest that the car is very spacious and power delivery is smooth. It also has the option of a 6 speed manual or 6 speed CVT transmission. Once the car becomes available, road tests would put light to some more features.

All in all, Kizashi is a great product, it has come at the right time, Maruti-Suzuki has the necessary resources to make the product a success. I only am apprehensive because of the fact that Maruti was not able to postion and target the Grand Vitara correctly which led to dwindling sales figures. Maruti has to be better prepared this time and only then can a great product like Kizashi become a great Success!!!

BEST WISHES TO MARUTI-SUZUKI  FROM CaRzInE!!!

Do watch the Kizashi advertisement here!! 

Beemerrr X1

I begin my blog with a new beginning that a premium car maker BMW has made with the X1. The new beginning is in the sub Rs. 30 lakh category. A BMW costing Rs. 22 lakh... unbelievable!!! But it has happened and the compact SUV is amongst us. Although the Rs. 22 lakh price is for the base Corporate variant which is the lower trim level, it is great value for money!!! Yes, it does seem odd to call a Beemer value for money !!!! 

The X1 is powered by two units, a 1.8 L petrol that churns out 150 BHP and a more powerful diesel which generates 177 BHP at a phenomenal 350 NM of torque. As far as the design is concerned, it is a baby X5. I personally like the rear of the SUV which is very sporty with it's beautiful tail lamps which give a perception of Batman.... although retaining it's macho image. Dimensions are perfect for city driving and enough for ocassional outings. The car is a rear wheel drive and a 4WD is on the cards and will soon be available.

The car is set to stir up the competition which is hot with the likes of Honda CR-V, Chevy Captiva, Toyota Fortuner, Ford Endevour and Hyundai Santa Fe. These car companies are going to find it really challenging to save their market share from the X1 as the X1 is a steal at it's price. In a country like India where Brand, Price and Fuel efficiency are the primary lookouts of buyers from all categories the X1 fits perfectly. No wonder with a sales target of 500 units BMW has achieved 300 odd bookings in Mumbai and 200 odd bookings in Delhi-NCR belt itself. Let alone the rest of Indian which is bustling with purchasing power.... BMW is going to find it hard to meet orders. The time of launch has been perfect with New year round the corner it is a great new year gift for yourself and the family( provided one can wait for 6 long months for delivery)!!!... but it is worth the wait. 

Just like the Tata Nano even for the X1 it's price is it's USP along with being a BMW. The company has priced it so correctly that it is not perceived as a "Cheap" BMW nor is it priced too much above the competition.Owning a car from the competition like Honda, Toyota or Chevrolet is great but a BMW is a BMW and nothing beats it. If all goes well the X1 will be a familier site on the Indian roads and we might just witness the competition heating up if other premium car makers like Mercedes and Audi enter the market. Till then its BMW all the way !!!!