Toyota has launched the Fortuner. It would soon be joined by the new Endeavour, which rides on Ford’s renewed enthusiasm in India. Ford has invested $ 500 million in its Chennai plant in an effort to double its capacity and rope in an amount of automation. While this follows the trend displayed by most automakers including GM, Fiat, Maruti Suzuki, the fact remains that all the automakers in India are well aware of the potential of the Indian auto market.
Both the Fortuner and Endeavour are pick-up truck based SUVs positioned in the mid-luxury SUV segment. The Fortuner, in fact, shares the platform with the Innova and is built from CKD kits at Toyota Kirloskar Motor plant near Bangalore.
Like the above mentioned automakers, Toyota too has been investing in India. India is probably the only location in the world where Toyota is going ahead with the investments! Most of them would be utilised to further expand the market reach by introducing new models and exploring new categories — most of them volume oriented.
In fourth gear!
The plan to invade volume-oriented categories (the B and C-segment respectively, which account for almost 70 per cent of the Indian auto market) seems to be the prime objective of most automakers. Activity and new trends, however, continue to emerge in almost all the segments. Having launched a limited edition variant of the C-Class, Mercedes is expected to launch the new E-Class by Diwali, supporting a trend that demands that the automaker offer the latest and best. With the presence of competitors like BMW, Volvo and Audi in India, what Mercedes seems to be dialing-in, is excitement, a fact that both Audi and BMW have managed to incorporate in their image for India. Within two years of its entry into India, BMW has managed to bag the No 1 sales spot in luxury auto sales.
All three have a whole gamut of products on offer, some made locally and the others imported. This, again is a trend that continues to flourish in India, with the Indian auto buyers well aware of the newest trends and technologies that are emerging in the field. Technology, style and price have been defining the auto trends in India — a fact that further justifies the considerable investments most automakers have been undertaking here.
Awareness on the part of the Indian buyer has also assured that automakers at times reposition their products, often in an effort to blur the boundaries in the segment. An example here is the repositioning of the Skoda Laura. A group company of Volkswagen, Skoda has repositioned the Laura (which is actually the current Octavia in European markets) in such a way that the price of the lower-end Laura models overlap the price of the higher-end Octavia models.
Looked upon as an emerging trend that carries with it various undercurrents that point at technology, features and cost, the game of volumes starts at the segment where the Laura is positioned. Competition here is tougher than that of the luxury segments.
Competing with Laura is its long-distance cousin, the Volkswagen Jetta! There are many others from Europe and Japan. If the overlap between the Octavia and Laura prices has blurred the boundary, the Toyota Corolla and Honda Civic also crowd this segment. A segment below is the new Honda City, which with its futuristic looks, has managed to ring in excitement. Supported by Honda’s solid image, the near Rs 9.5 lakh price for a car looks far-fetched. Especially when the earlier generation model came at Rs 6 lakh approximately. Agreed that the City and Jazz are highly competent, but the high price tags dilute this very fact.
At Rs 7 lakh that the Jazz is priced at, there are a host of mid-size sedans like the Renault Logan and Ford Fiesta. Further down are exciting and almost equally capable premium B-segment hatchbacks like the Fiat Grande Punto.
Like Honda, the B-segment is set to see a host of new players. Many mentioned above are the ones that are investing heavily in India. Till now, they preferred to limit themselves to bigger, higher profit segments. To support the Jazz, Honda invested in a new plant. This plant is also expected to support the small car that the automaker is said to be working upon.
Technology ensures safety, efficiency and environment friendly factors, which rakes in a lot of demand. Also, an automobile is symbolic of one’s style statement. Just like you would spend on dressing up, people like to spend lavishly on automobiles.
Jitendra Mali, Vice President,Marketing, DSK Toyota.
Small is big
An interesting trend emerging in close vicinity to the B-segment is the lower C-segment sedans like the Maruti Dzire. Positioned below the likes of Ford Fiesta and Fiat Linea, compact sedans like Dzire and Ford Ikon are doing good numbers. Made by the small car market leader, the Dzire rides on reputation, pricing and the incorporation of modern technology, the current-tech common-rail diesel motor being one. Tata is not far back. With the new Indigo (Vista) ready for launch, the stage is set for greater competition and thus, greater value for buyers.
Fiat is also said to be thinking of bringing the Albea, which it makes in some global markets including Russia.
The trend in the lower C and B-segments is again technology, style, features and efficiency matched with extremely competitive pricing. Needless to say that service back-up is assuming greater importance as buyers become keen to ensure that their cars retain good value. An emerging trend in this highly volume-oriented end of the market is buying of cars that are a pleasure to drive, retain value and are reliable and cost less to own. Higher refinement and comfort levels are also emerging as a trend.
The B-segment, which accounts for the highest number of cars sold is also the most competitive and demanding. Trends in this segment indicate a pull towards diesel and especially those that are well equipped. Buyer of a small car is today ready to spend more, opting for features that were until now found only in luxury cars. Features like ABS, airbags, auto air-con, voice enabled infotainment system, sunroof, auto transmission, and so on. Those like power windows and remote locking are already passe.
The small car buyer today has higher aspirations and is willing to pay to get them. He is also demanding cars that are efficient, safe and green.
If the A-segment Tata Nano has made the world sit up and take notice, it is also an indicator of how automakers are keenly listening to market voices. While customer-centricity is the emerging trend at the automaker end, at the buyer end, the trend defines almost all the traits that are observed in buyers of B-segment cars. So, for a car like Nano, the desirables include efficiency, safety and comfort. This is common to most volume-oriented segments.
When it comes to small cars, buyers
always consider price, features and technology, in that order. Price is the first criterion as features can be upgraded later. - Kapil Pashankar, Managing Direcor, Pashankar Group
Revolution on a ride
A two-wheeler buyer, whom Tata is targetting with the Nano, is demanding a stylish product that is also efficient and reliable. The availability of alloys wheels, stylish instrument panels, disc brakes and electric starters is therefore becoming a norm. An emerging trend here is the increasing preference for ungeared scooters, which can be used by both, a male and a female rider.
While quality and reliability have been important criteria, the trend in two wheelers is to seek a product that meets most needs and is far from being plain vanilla. No wonder two wheeler makers like Hero Honda, Honda, Suzuki, Bajaj and TVS have been dressing their “volume” motorcycles with bells and whistles and shots of botox. A micro-trend in two-wheelers, driven by image-building exercises undertaken by manufacturers is that of power machines. This also reflects a trend that has automakers trying to squeeze more power out of a given displacement capacity. And the trend is universal! Automakers across the globe are seeking more from smaller engines. To do so, they resort to turbocharging, valve lift mechanisms and direct fuel injection systems.
If there is a disturbing trend in two wheelers, it is the move from fuel injection to carburettor. Bajaj Auto recently dressed its Pulsar 220 with a carburettor, cancelling the fuel injection.
But such things apart, the encouraging part of the emerging trends is a growing concern for environment and safety. The journey is long and would fuel trends that would have a long-term influence on motoring, trends that would power automobiles with electricity, hydrogen and more. They are already round the corner. Look at the Honda Civic Hybrid that just zoomed past or the tiny Reva on a congested Bangalore road and a new trend will picture itself. Don’t forget that attractive electric scooter parked on East Street in Pune!
Source:sakaaltimes
