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!!