THE HATCH PACK – Which one you should fall for

With so many compacts vying for space in your garage, we pick four hatches to woo you. Which one should you fall for.

Small cars, hatchbacks, compacts… call them what you may, these are the ones that rule the roost in the Indian auto market. From an era of graduating from the Maruti 800 to the Hyundai Santro, the year 2010 has increased the spectrum of choices, not just from these Jap auto moguls but also, to the ferocious American rides and the ever-dependent German delights.


So we take a look at the four brand new compact hatchbacks, launched within this year, which are trying to wrest the market space from the likes of Maruti Suzuki Swift, Hyundai i10 etc. These are not upgrades or new variants for existing models, but spanking new models launched this year.

Now let’s get to know these four warriors. From the land of the rising sun we have Nissan’s Micra which hopes to live up to its Japanese reputation, Volkswagen’s Polo brings with it an inane gamut of subtle looks, top-notch technology, smoothness and the German quality of endurance.

And lastly from the cheeseburger and fries munching superpower America, General Motors and Ford bring in their driving delights, the Beat and the Figo. Though the Polo and Figo have diesel variants also we are sticking to the petrol run platforms for an equal matchup between all four.

So without any further delay let’s get down and play the role of a referee…

Starting with the looks we have to say that the Micra stands out pretty much cause of its retro looking circular profile. The Beat has an unnaturally sporty look for a car its size whereas with the Figo, we feel, more than the looks the utilitarian aspect is given importance.

All said and done VWs Polo has to be the one which dishes out a very balanced feel as far as the exterior is concerned. Amongst all four the Beat and the Polo, with their badges stamped prominently on the nose grill kind of stamp an authoritative look but it’s the butch stance which the Polo and Figo have that take the cake.

The Micra is a very good looking car, no aggression, no butch feel but something like a very natural look for a car this size.

Now moving on the interiors of these cars the Beat kind of falls a bit behind as far as quality is concerned. Though they have tried to innovate with their instrument panel, but when compared to the rest it has a slightly tacky feel to it.

But then we also have to remember that the Beat also happens to be the cheapest car in this shootout. The Figo, like every other Ford doesn’t care a bit as far as cheesy interiors are concerned. Here it’s all about maximising the space issues.

And considering that the Figo looks the roomiest of the four, guess they have succeeded in that. As far as the quality goes Polo once again stands apart from the rest… clear instrument cluster, demure looks with everything exactly where it should be.

The Micra also doesn’t compromise a bit on quality and has to be the car with the best-looking interiors. Though if we classify all these according to the rear legroom available, the Figo tops, followed by the Micra, Polo and then the Beat.

Now we move to the most essential bit of this article. How do these vehicles perform in the real world? All four of these are perfect city cars, but where one has an edge over the other is the power department, the mileage quotient or in its extra mean streak for the highways.

The shape of the Beat is the most conducive for city driving. Maneuvering thorough traffic, parking at sticky spots, reversing through cramped zone; it does everything like a pro. According to the traffic conditions of our city where reaching the fourth gear is luxury and the fifth gear is, let’s face it, literally unknown the Beat does a very good job of taking you from point A to point B.

But it’s when you plan to move on to the highway that slight power issues creep up and if the air-con on then you might as well increase your on-road time by at least 30%.

Just like the Beat the Micra also proves itself to be a master in the city. But then unlike the Beat’s power problems on the highway, the Micra has its own sets of issues to deal with. But one of the major concerns we had was its handling issues post the 80kph mark on the speedometer.

In fact, though we could easily push the car past the 110 mark, the wobbly nature of the machine kind of made us not test its limits.

Now we reach the Figo. Ford has always been known for its driving thrills. And the Figo surely didn’t disappoint us a bit. From handling the mad rush in the city to the speed crazed ways of our national highways, the Figo undoubtedly stands apart due to its performance. Stash up people to the hilt, top-up the boot as much as possible, switch on the air-con… it’ll still come out as the best performer out of this lot.

And finally we reach the last contestant, the Polo. Exactly like the Figo, this one also is an all round performer in both city and highway conditions. Across its entire rev band you’re showered with enough power keep you happy. But somehow unlike the Figo, you really just end up driving a car and yet not really have that extra dash of peppiness that the Figo brings with it.

Finally no longer would a small car buyer have to shuttle between Maruti Suzuki and Hyundai. All these four cars have their own USPs. Where the Beat has an attractive pricing with great sporty looks, the Micra has features like keyless entry and push button start which are unheard of in this segment. The Figo might be an all-rounder when it comes to performance and space, but still on the looks front it lags a bit.

As far as the Polo is concerned, they do have a damn good package but are still struggling with negligible dealership presence across cities, just like Micra. So as far as our verdict goes Figo wins our vote hands down due its attractive price point, spaciousness and drive pleasure.

As far as the others are concerned, the Beat holds its own due to its very competitive pricing and the Micra has to work a bit on its handling when on the higher side of 80 kph and establish more dealerships. Lastly, with Polo, as we said earlier, our only concern is their low dealership presence.

“Copyright © 2010, Bennett, Coleman & Co. Ltd. All Rights Reserved”

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PRE-OWNED CAR SEGMENT 1.1 TIMES BIGGER THAN NEW ONES

Mahindra & Mahindra is betting big on the used-car segment. Rajeev Dubey, president (HR-after-market & corporate services) and member of the group executive board at M&M spoke to FE’s Ronojoy Banerjee on how the company is looking at increasing the number of used-car outlets across the country. He also spoke about how M&M is going to use its used-car platform to increase its spare parts business.


Excerpts:

What is M&M’s line of thinking as far as the pre-owned car business, FirstChoice, is concerned?

Our basic idea is to give pre-owned car buyers the same experience as the ones who buy new vehicles. We have created a stable service, sales and spare-parts division similar to what is provided to the new car segment customers. This way our pre-owned car customers don’t have to run from pillar to post and all facilities are provided to them under one roof.

What potential do you see in the used car or pre-owned car market in India at present? And how do you see it evolving over the years?

Currently, the pre-owned car segment is about 1.1 times bigger than the new car segment. It is roughly around 1.9 million units in India. Generally, when an economy develops the pre-owned car business grows rapidly. For instance, in US the pre-owned car business is 2.5 times bigger than the new car segment. At present, the pre-owned car segment in India stands at Rs 1,200 crore. By FY15, it is estimated to become an Rs 6,500 crore market. For M&M, the pre-owned car business is around Rs 450 crore.

But why do customers choose used cars over a new one?

As the disposable household income goes up, aspiration level too surges. On one hand, people don’t want to keep cars for too long and tend to sell off after a few years, increasing the supply of pre-owned cars, on the other hand, another segment aspiring for bigger cars are unable to afford a new one and so choose a pre-owned one. Therefore, there is a healthy mix of demand and supply. Since the pre-owned car business is getting organised, the transparency levels is increasing.

What are your future plans with FirstChoice?

We are a multi-branded pre-owned car business, present in 80 cities across the country. We are bullish and confident of creating a synergy between our three divisions: sales, services and spare parts. When this happens, there will be a strong eco-system for pre-owned cars.

Currently you are supplying spare parts to M&M products. Are you looking at increasing your supply of parts to other players and OEM’s too?

Yes. We are looking at supplying to other players. Our focus is still on supplying to M&M products. Once we are able to do that consistently, we will be looking to increase our share of spare parts to other players. We are going to leverage our used car business to expand our spare parts segment. Currently, our supply to others is very low.

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WE WILL FOCUS ON LOCALISATION TO BRING DOWN COSTS – Merc Benz India

WE WILL FOCUS ON LOCALISATION TO BRING DOWN COSTS

Shweta Bhanot

The Financial Express (Web & Print Edition)

Mercedes-Benz India is looking at a growth rate of 20% in its bus business this year. The company has seen a slow start with total sales of 67 units till date since 2008 when it entered with a two-axle coach bus. The company hopes to boost its business as it enters the city bus segment in 2011. In an interview to FE’s Shweta Bhanot, Wilfried Aulbur, managing director and chief executive officer, Mercedes-Benz India Pvt Ltd, shared his views about the company’s plans to bring down costs through enhanced localisation and at the same time maintaining the brand promise of high quality and reliability.

Excerpts:

How do you justify a volume of 67 buses since your entry into the segment in 2008?

We had a terrible 2009. Our focus on two-axle buses for private operators was badly impacted by the recession, wherein operators were not keen on making new purchases in an environment of unavailability of finance, and later swine flu. Their occupancy levels were significantly low. We sold only nine units that year. Things look good now and we have sold 43 buses in the first five months of the year. Of that, 30 are two-axle buses and the remaining are three-axle ones. At present, there is a backlog of around1 10-15 three-axle buses.

How do you plan to boost volumes and what is the current volume of production?

We are making seven to ten buses per month at the Chakan plant. We are ramping up production to meet the demand. We have a strong order book from state transport units (STUs). The launch of city buses in 2011 will further boost our volumes. We will soon be putting prototypes of our city buses to test in Rajasthan, Karnataka, Haryana and Maharashtra. These STUs will test the buses for six months.

What are your plans for localisation in a bid to bring down costs?

We will be looking at full localisation of the bus body; and depending on the volumes, localisation of the chassis will be considered. A commercial vehicle owner looks at the total cost of ownership. While the initial cost is high, the maintenance cost of our buses is low. We will soon start producing bus body in-house with our Egyptian partner MCV. This will be for city buses. Later, we may look at coaches as well. We will also look at synergies in terms of suppliers and other leverages arising out of our parent’s plant in Chennai (Daimler AG). All this will help us reduce costs. The in-house bus body building will help cut cost by Rs 1 lakh spent on transportation currently.

Will you continue with your tie-up with Sutlej Buses and what kind of cost advantage will you get once you make the bus body in Chakan?

We will continue with Sutlej, which is currently doing the coach bus body building for us and later may look at city bus body building as well. We want not confine ourselves to just one partner and will look at more partners as and when volumes grow. We have two partners at present, which we feel is enough for the current volumes.

What will be the capacity of the bus body building facility at Chakan and what will be the investment?

We are still finalising the details. The investment in Chakan will be a part of Rs 300-crore investment package for India. The city bus body building will start in another nine months.

How are the Actros trucks doing?

We had delivery problems during the end of the previous year. There was a shortage of finished goods and we somehow pulled it up. There were only 12 kits. We have sold 104 Actros so far. We are doing on an average 25 units a month. Things have improved since then.
http://www.financialexpress.com/news/We-will-focus-on-localisation-to-bring-down-costs/632163/

We will focus on localisation to bring down costs
Yahoo India

http://in.biz.yahoo.com/100610/50/bavrfk.html

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