Maruti Suzuki India Limited will showcase two UV segment offerings at the Auto Expo 2012, to be held in January in New Delhi. Maruti Suzuki will do the global unveiling of the country’s first compact MPV—the Ertiga. Sharing the centre dais with it will be a concept compact SUV.

Says the company’s managing executive officer (marketing and sales) Mayank Pareek: “As the market gets more competitive, we have to gear up for the new dynamics. We are showing the best we can offer. The new models like the SUV, MPV and MUV will prove to the world that we are future-ready. We need to get first-hand feedback for this.”

Maruti Suzuki till now did not have an offering in the segment. The Ertiga positions itself in the MPV sub-segment, which broadly account for 9% of the automobile market. The Ertiga will also come with a 1.3 Litre Diesel DDiS Diesel Super Turbo engine.

Maruti Suzuki would also use Auto Expo as a platform for the global unveiling of the brand new K-14 VVT engine. India will be the first market in Suzuki’s subsidiaries to have the K-14 VVT engine technology. At the Maruti Suzuki pavilion, the display would include several international models from the SMC range, such as Solio, Palette and MR Wagon.

The Auto Expo will also showcase the company’s strengths in arenas like products, product segments, technology, production capacity and R&D capability.

Suzuki Motor Corporation has awarded an A grade status to the Delhi Auto Expo, on par with global auto shows like Frankfurt, Paris, Tokyo and Shanghai.

It is close to 14 years to the day when Hyundai opened its innings in India with a tall boy smallie to present not just its first car in the India market but also to present the first major challenge to Maruti Suzuki’s domination of the peoples’ car segment. Both Hyundai and Santro were unknown names in the Indian market but with some nifty marketing backed by sound engineering and design, the quirkily styled Santro helped establish the product and the brand in the minds of the Indian motorist.

Fast forward to the present and Hyundai is now an established and genuine number two car maker in the country, having a varied portfolio which still features the Santro as its entry level offering. Though long in the tooth and having seen two to three upgrades over its existence to date, the Korean car maker realised that it needed to dip into the segment dominated by the Suzuki Alto with an all-new car and try and take a slice of this pie.

So far the Alto has been a runaway success for Maruti Suzuki, and deservedly so, given its make-up, reliability, performance and pricing. What is surprising is the fact that it took so long for other car makers to see the Alto carve out such a strong and wholesome niche and then try and address it with a rival of their own.

Now with development time for an all-new product taking three years at the very least from concept sketch to production, one must hand it to Hyundai for having seen this earlier than others and developed an all-new, India-specific automobile which is the best way to describe what is a unique price-specific product needed for the entry level segment in India.

Brings us straight to discussing the price point of the new vehicle which should be on or about the Rs 2.5-lakh ex-showroom sticker tag for the base Alto. Hyundai would have worked out what it had to do with a brand new modern design to try and engineer it not just to the pricing of the Alto but more importantly, allow it to deliver more in terms of style, occupant space, performance, fuel efficiency than the established segment leader.

Thus was born Project HA, which saw not just Hyundai’s design and development centre at Namyang in Korea do most of the work, but the fact that Hyundai’s Hyderabad-based R&D centre also pitched in massively to firm up a product which is fresh and appealing and also meets most requirements in this class of small car in India.
The pictures here are of the exact production version of the Hyundai Eon, as the Project HA offering it will be known as when it is unveiled in India in the coming month. The writing is clear: the new Hyundai is a stunner with substance to boot, as I discovered during the course of an exclusive half an hour session driving this small Hyundai at the firm’s Namyang test track.

In one fell swoop Hyundai seems to have re-written a new chapter for entry level small cars and it is here in the Rs 2.5 lakh to Rs 3.0 lakh space, where most entry level buyers are to be found searching for their first spanking new automobile. While the Tata Nano may be cheaper, the Indian consumer is looking at better value, more substance and style rather than just focus on pricing. And in this era where every detail counts, the Eon should be the one which could ignite an all-new and more meaningful race in this segment.

The Eon is built on a completely new platform which has no bearing on the ones used before, either for the Santro or the svelte i10. What clearly denotes the Eon is its stylish exterior with hints of Hyundai’s fluidic design language showing. It is no secret that trying to style a small package is much more difficult than a larger sized hatch or saloon.

But with the Eon, the Hyundai design team has really pulled out all the stops and emerged with a package that is fresh, contemporary and appealing. Casey Hyun, the Australian-born Korean who headed the design team, was clear in his mind that style was as important as the interior detailing needed to prepare a product which had to stand the test of time in a class which would see newer competition arrive sooner rather than later.

The overall stance of the car replete with its hexagonal-corporate face and those swept back headlights running almost all the way back, to the rakish A-pillar, is thoroughly modern and with the large air dam in front plus the slickly valanced bonnet character lines, the Eon stands out strongly.

Given the fact that its overall length is just 3495mm, the Eon in profile is easy on the eye as against the Santro which shocked to make its imprint on motorists’ minds. The easily flowing glazed surfaces plus the milled wheel arches along with curvy character lines (at the waist level and lower down on the door sills) impart a level of design flair which normally isn’t prevalent in this class of car.

Design and style haven’t compromised what remains one of the key attributes punters look forward to in this class of car: usable occupant space. The packaging engineers have come up with a winner in this area, with class leading head, elbow and leg room, front and rear. I managed to spend quite some time getting my colleagues to move and slide front seats back and forth as I switched from front to rear seats. And this perfunctory course did suggest that the Eon would be impressive in its space efficiency and comfort

A quick comparison with the Alto is in order here and the figures tell their own story. The Alto measures 3620mm front to rear, while the Eon’s overall length is slightly shorter at 3495mm. However, the real story emerges when you factor in the 2380mm wheelbase of the Eon, which is 20mm longer than that of the Alto and the cabin just starts building up from there on.

Clever design of the dashboard, optimising the H-points for the occupants plus also proper thought on entry and egress helped liberate more space in the interior. If that wasn’t all, the seats impressed as did the width and the height, both these being dimensionally larger than that of the Alto (1550mm width and 1500mm height for the Eon as against 1495mm and 1460mm for the Alto). So much for the occupants but the Eon also caught the eye in another department, a substantially larger boot space to gobble up 215 litres of luggage.

The interior of the Eon is funky and appealing and the dashboard with its swathe of curves and slashes highlights this to the hilt. The central stack with air con and audio system switches, the instrument binnacle (with the large diameter speedo dominating) right in view of the driver’s forward line of vision and the nicely configured ergonomics are other details which highlight what Hyundai has done to move the game along in this class of car.

The level of fine tuning the interior can be gauged by the fact that Casey Hyun’s team ordered no less than 31 different makes of branded mineral water from India in various sized bottles to determine the positioning of no less than seven to eight bottle holders dotted all around the cabin.

On to the drivetrain which is now so very critical in this day and age of high fuel prices. Many would have forgiven Hyundai were it to have adapted the 1.0-litre mill from the Santro and tweaked it for the times but Hyundai opted to do things differently and created a whole new engine and transmission pack for the Eon. The engine is an all-new 814cc sohc three-cylinder one (actually based on the i10′s IRDE four-cylinder mill with one cylinder deleted), which is compact and takes up minimum space under the hood, also a design cue to the ample cabin space!

Being on a straight stretch of runway with a billiards-table smooth surface would make any car feel good. But what I felt when I did my couple of runs in the Eon at the Namyang R&D test track was the fact that the car’s wide footprint (wide track 1386mm front and 1368mm rear plus 2380mm wheelbase) made for a very stable and planted ride.

The torquey delivery, relative to its engine size of course, did say much for the lugging power of the small motor but what was impressive was the firm yet pliant ride. Hyundai hasn’t skimped much on the underpinnings with MacPherson struts up front and a torsion beam rear axle working with gas-charged shock absorbers.

Throw in electrically assisted rack and pinion steering gear, a front discs/rear drums brake set-up and 13-inch wheels shod with 155/70-R13 rubber, and the Eon makes for a compelling package in the smallest as well as the most important category of car in this country. Factor in its kerb weight in the region of 725 to 772kg depending on the variant (there will be three at launch) and the Eon is set to be the new standard bearer in the small car segment in the country.

Hyundai will have an early mover advantage in this class because market leader Maruti Suzuki isn’t exactly lagging behind with development for its own new offering in the Alto league. And the signs are that there should be some more new entrants joining the fray from other OEMs.

Just like the premium hatchback category has hogged much of the automotive limelight in recent years, and with justifiable reason, expect action to be heightened in the entry level category once Hyundai unveils the Eon some time in mid-October. A new dawn beckons for the 800s but this time it is Hyundai and not Maruti Suzuki which is setting the pace.

Team DNA engaged leading auto dealers from Pune in an interesting conversation to share perspectives on what’s happening in this segment.

Speakers:
Sunil Arlikatti,CEO, Deccan Honda (dealers for Honda)
Shirish Kulkarni, CEO, J Director, DSK Toyota (dealers for Toyota)
Kaushik Kothari, CEO, J MD, Crystal Honda (dealers for Honda)
Jay Shah, Executive director, Vidyut Motors (dealers for Renault)
Soumen Chaudhuri, CEO, J Williams (dealers for Mitsubishi Lancer & Pajero)

Here are the excerpts:

DNA: What is the mood of the market today in view of the hike in interest rates and rising fuel prices? What does the buyer want? Has the buyer become very demanding today?
Jay Shah: We dealers faced a problem with the Indian market moving very fast and foreign technology coming very fast, but the customers are not maturing fast enough. The market is slowly beginning to mature with the entry of many players, whether you go from basic ‘A’ segment to ‘D’ segment or even further.

Customers now know to some extent that they have to make choices within the same category of cars. This is an improvement and makes our job easier.

I feel in the print media, the columns on cars must talk about how to save money, rather than compare features of one model with the other. For example: how can one save money on insurance? Insurance can be discounted to 20%-30 %, if we have to cut-off the middleman. If we dealers also do insurance, we have to employ people for the service, have to ensure that you get the service and for this we will take some margin of commission.

Shirish Kulkarni: There is a very big movement in the market but there is a need to educate customers. There are certain people who try to compare two models or two different manufacturers, without having much knowledge. For example, you cannot compare Etios with Honda City, but people do compare.
On a macro level the manufacturers must look at educating customers on how various segments are divided. In India, nobody had explored the ‘D’ segment until recently, which came in much later. Today customers have moved on to buying cars worth over the Rs3 crore tag. The market is shifting very quickly.

Kaushik Kothari: As said rightly, the customer is becoming more and more demanding. Five or six years ago, we used to talk of very few features like air bag and integrated music system. Now all the safety features have even surpassed the expectations of customers that they had five years ago. Now the customer looks for something else. The customer is going to become more and more demanding as days go by. I think the market trend is going to be such for the next 20 years because India is a
developing country.

Soumen Chaudhuri: I feel there is an amazing trend in the market. Inspite of all sorts of financial crises around the world, you see a robust Indian automobile market with a steady growth. I think India is set to become the biggest market after China. We have the buying power, we have the numbers.
What I see in metros like Pune today is a sudden demand for high-end cars and SUVs, which is good. However, the Indian customer or the masses will
always go for mid-segments or small cars because we are very conservative in our upbringing. We don’t go and spend on something we can’t afford. I feel, the mid-segment and small cars will be our future.

DNA: The concept of brand loyalty has changed. What is really happening in the market? Which segment is growing very fast?
Jay: Loyalty for Maruti has diluted because so many entrants are coming in their forte of small cars. At the same time, Maruti has its loyalty because they have such a big range and if someone wants to change, they have an option to choose within the Maruti family itself.Honda and Toyota are in India for a long time. So any new entrant has to have that matching quality as well as something more to offer. When there are so many new options for customers, they are willing to try; they wouldn’t have tried if brand loyalty was so predominant.

DNA: What about hatchback segment?
Kaushik: The hatchback segment has just entered as two years is not a very big time period. The B+ segment is definitely increasing because of greater urbanisation, greater demand and convenience. In fact, the latest trend is that automatics are selling very well.If you compare any of the developed markets, the Jazz — better known as Pit in the US — is one of the hottest selling models in the hatchback segment in the US, even in Dubai for that matter. These are priced higher than the City in developed countries. The reason being that the Jazz is completely an urban car in terms of space. In terms of engine it carries the same engine worldwide except in India where it is 1.2-litre engine and that is the reason the Jazz was priced at Rs8 lakh initially. It was carrying all the elements of Honda and with lot of parts and components that were imported at that point of time. Now with the localisation a price correction has been done. So I think the Jazz is a brilliant car and now with the new price tag, it would not have to look back.

Shirish: India is developing into a market like the US, where in a family of four, you have four cars and the fifth car is for the family dog. This is happening
because the economy is growing so fast. The IT and the real estate sector have grown so rapidly that corporate level people like managers getting a package of Rs50,000 to Rs60,000 a month, can easily afford a car worth Rs8 or 10 lakh.

DNA: How is your brand positioning in the market and which are your best selling models?
Shirish: Toyota has a very strong positioning in the market. Since it’s been around for 11 long years, they have established their reputation on quality and customer satisfaction. Brand positioning for Toyota is extremely strong andpeople have recognised it as a good brand.

When Toyota Qualis was introduced in India, Toyota made it very clear that one has to drive the vehicle in order to know why they have got the vehicle into India. Innova has been making history. We have a waiting period of eight months for Innova. It has been a bestseller for a very long time. Toyota Etios is also picking up very well and now we have the petrol version, already out for both Etios and Etios Liva. Etios and Etios Liva have also shown a very steady growth.

Jay: Renault is one of the oldest car makers in the world. Even though it is in alliance with Nissan worldwide, in India, Renault and Nissan have come separately. Their technology for suspension, for interiors, for travel comfort and reliability is their USP. Within the next 18 months they will be coming with five models in petrol and diesel. It has a range right from Rs4 lakh to over Rs25 lakh. They are here to catch up with everybody.

Kaushik: Honda City has been our hottest selling model. This car has spoken for itself all throughout. It has won nine consecutive awards and is the only one with this distinction. Secondly if you compare any Honda product, Honda in itself looks at driveability, reliability and quality. Honda will never compromise on these three factors and its products rank high on space, low maintenance and high fuel efficiency which are important for customers. Honda is definitely ahead of its time in terms of technology and quality.

Sunil: I’ve been with Honda for 12 years and Deccan Honda’s spread over the city has been commendable. We used to sell 25 cars a year in 2000. I then had six sales consultants and I was the manager;today, I have four managers and 45 sales consultants and I am the CEO. So the spread of our showrooms in the city speaks for Honda’s strength as a brand.

Soumen: At J Williams and Company, we have been associated with Hindustan Motors for the last 60 years. So, from Landmaster to Ambassador, to now Mitsubishi, that is a relationship that our owner, Mr Irani does not want to break under any circumstances. There have been ups and downs. Mitsubishi as a product is wonderful as it is a Japanese product. Apart from being fuel-efficient, it is low cost on maintenance, and high quality structure.Pajero is very popular and is a brand that is yet to catch up in the market. We launched Outlander two years ago and are coming with Pajero Sports this year.

DNA: Finally, what is the average car buyer looking for in terms of fuel efficiency, style and design? What factors should one consider before going in for a purchase?
Kaushik: My advice to customers looking for a vehicle below Rs10 lakh, and while deciding between the petrol and diesel versions is to consider the approximate driving mileage in an entire year. If it is more then 40,000 km in a year, then it makes sense to go for a diesel car. The initial cost of procuring a diesel car is higher than a petrol car. Cost of maintenance of a petrol car is lower than a diesel car. You get a higher resale value for a petrol car than a diesel car. When it comes to maintenance, one must remember that Japanese cars are low on maintenance. Such cars have a high resale value.

Shirish: Look at the brand, look at the history of the brand and look at how they have been placed worldwide. One must also look at how they tackle their problems and how they have managed to overcome them. In my experience whatever 60-year history Toyota has, it has never faced a large issue like the other manufacturers. Their competency level in the cars is high, which is why they are a single brand and rank number one in volume sales. If you have a good dealer in your territory, who will assure that he will give you good after sales service, you should buy any model from him.

Jay: In terms of deciding between diesel and petrol, the pragmatic thing to do is to consider your daily running. If is it 40,000 km per year, which is about 100 km a day, then go for a diesel version. From resale point of view, you can put a gas kit on a petrol car, so a buyer has the option to put CNG or LPG, whereas you can’t do that in a diesel car. The resale value forpetrol car is better.

Daimler, the parent of Mercedes Benz, began its financial services business in India on Tuesday and said that the bouquet of services this division will offer would include individual lease plans, something very popular in the West but rarely used in India in individual cases.

“Individual lease is a big draw in developed markets. In the US, 40% of individual sales is through the leasing route while only 15% through finance. We expect the trend to pick up in India as well and this country seems to be adequately placed for such an option,” said Klaus Entenmann, global chairman of the Board of Management of Daimler Financial Services AG, which annually does business to the tune of euro 64 billion.

Explaining the process of individual lease, Sidhartha Nair, MD of of Daimler Financial Services India (DFS), said the facility offers one of the most flexible option to customers. “One does not need to pay the full price of the car. Normally, as per the leasing model, we give the car on lease for a period of three years, working out a residual value upfront. This value, which on an average is 50% of the cost of a new car, is something the customer does not need to pay. All that he pays us is the remainder value of the car, which is nearly half of its cost. We lease the car to him.”

Procuring the car at half the cost is not the only attraction. The service and maintenance costs as well as the insurance fee are the company’s headache.

If a new Mercedes model costs, say, Rs 30 lakh, DFS will give two options to an individual customer-buy or lease. Either he can get financing for buying the car and register it in his name, or else he can go for a lease model.

In case he goes for lease, the customer will need to pay only Rs 15 lakh as the rest of the cost will be taken as the residual value after three years when the company takes the car back.

Industry analysts said that the timing of the individual lease model is ideal for India. “Aspiration levels are high and more and more young people want to have access to a luxury brand like Mercedes. Also, since they have to pay just half the cost, it is easier for them to break into the coveted brand,” an auto analyst with a brokerage said.

The fact that Indians are also changing models frequently, in three-four years, is also something that will support this phenomenon. “Rapidly-changing technology and entry of newer models are something that prompts people to change models frequently, especially in the upper end of the market. The leasing model is perfect for such people who will only pay half the cost of a vehicle and will have the option to switch to a new model in three years,” another analyst said.

But while being a new phenomenon in India, leasing is already an accepted practice in the corporate world. However, the numbers are small even here, though these are picking up fast. When it comes to individuals opting for lease, history is against leasing, at least so far.

The automaker has donated over 40 units of 800 CC engines and powertrain to engineering college students, enabling them to manufacture their own prototype of a Formula car for the four-day SAE India-Maruti Suzuki event at Irungattukottai race track here.

“We decided to give them the engines and powertrain so that it will not only help them develop their skill, but also make others get interested in automotive engineering”, Maruti Suzuki India general manager (technical administration) Deepak Sawkar said at the race track about 50 km from here.

For the initiative, the company has teamed up with Supra SAE India, which would help students focus on developing a prototype of a Formula car equipped with Maruti engines and power transmission.

“The objective of this concept is to give them a platform to showcase their skills. It is mainly for those who have passion in the automobile industry. SAE India has selected students from various colleges and we have sponsored the event”, he said

For designing such prototypes the transmission cost takes a lion’s share, making it more difficult for students to take part. “This is the first time that such a competition is being organised for undergraduate and graduate engineering students,” he said.

The competition helps young engineering students design, fabricate and compete on a working model or a prototype of a Formula 1 racing car offering a real time challenge to students, he said.

The fate of a large number of component vendors as well as power supply shortages are the biggest concerns for Japanese auto companies like Toyota, Honda, Suzuki and Nissan. This is also an irritant for their Indian subsidiaries, which depend in varying degrees on the parent for crucial component and technology support.

Toyota, which closed down all plants in Japan after the March 11 quake, decided to reopen seven plants in Aichi prefecture from Thursday, a spokesman said in Tokyo. However, it will keep 21 plants shut until March 22. On the other hand, Nissan and an affiliate would reopen one plant on Thursday and another on March 18. Two factories, however, will remain closed until March 20, while another will operate partially. No decision has been made on reopening a sixth plant.

Mitsubishi also resumed production at its three plants in central and western Japan. These will continue running through Thursday, though no decision has been made about continuing output thereafter. But the plants of auto giants like Honda and Suzuki are still closed. Honda and Mazda said plants will be closed until March 20. Suzuki, the parent of Maruti, also said that all Japanese factories will be shut until March 21.

“Did you think about (buying) any other car before buying a Figo?” Rena Sofue, a Nissan employee with a rather long and unusual job title, asked Ragini.

Sofue is manager, attractiveness creation group for women, at Nissan’s customer-oriented engineering department. Her job is to convince women members of a family to purchase a Nissan and provide feedback to make the company’s models more desirable for women.

Car makers such as Nissan are going the extra mile to understand the needs and desires of women in India—underscoring women’s growing role in the purchase of high-value items such as cars and homes, traditionally a decision taken by male members of the family.

The change has been brought about by rising education levels and ability to pursue a career, which gives women more purchasing power.

“When it comes to spending money, traditionally women have had little opportunity as they were expected to manage the household budget rather than play any role in house- or car-buying decisions,” said Sharad Sarin, a marketing professor at Xavier Labour Research Institute, Jamshedpur, and an expert on consumer behaviour. “Today, that is changing. Globalization, liberalization and a growing emphasis on education have helped to raise the status of women in a family.”

Sarin gave another example to make his point. “In the 1960s, if you see, we hardly used to have cigarettes made for women. But over a period of time, we have seen mild, menthol, lights and what not. So, this evolution is happening in this sector.”

Economic independence and education have made women more assertive about their choices. More than ever, women engineers and designers are influencing the outcome of vehicles to help make them more women-friendly.

Globally, women make up around 40-45% of automobile consumers. “But in India, there may not be more than 15-20% women drivers in the country and most of them are in the metro cities,” said Sarin. “Paying attention to the women segment is not new, but their growing importance in the auto segment is a welcome change.”

Not surprisingly, car makers are increasingly designing vehicles with women’s comfort in mind. So far, cars designed for developed markets in the US and Europe and sold in India fail to factor that Indian women are shorter than their Western counterparts.

“Hardly anybody pays attention over the height of the seat or the size of the bonnet,” said Sarin. “So, there is a definite market in that segment. In the future, I am sure more and more car makers will pay attention to that.”

Sofue and others like her are leading the change by designing models that are attractive and comfortable for women in a market where passenger vehicle production is expected to surge more than fourfold to nine million units a year by 2020, according to government estimates.

“I am responsible for the products to be attractive for female customers,” said Sofue in an emailed response to a query. “I am specialized to analyse the difference of male/female from physical, behavioural and mental aspects and to plan the product specifications to be attractive for female customers.”

In the 1990s, most cars came with a courtesy mirror only on the passenger side, never on the driver’s side. The notion was that while men would drive, women would sit and do their make-up on the passenger seat. Today, most cars come with such mirrors on both sides.

“If you have noticed in our new WagonR, there is a tray under the driver’s seat where women can keep their boots and drive with comfort,” said Mayank Pareek, managing executive officer, Maruti Suzuki India Ltd. “We keep these things in mind while manufacturing a car.”

Even men who do not include women directly in the purchase decision are influenced by what they perceive women’s impression of the vehicle would be.

In mature automobile markets such as the US, women car ownership is as high as 45%. That excludes many women who drive vehicles registered under a male member of their family.

“Considering these factors, Nissan Motor had established the group to work intensively on product development for female customers,” said Sofue, who is now in China working on a similar study for Nissan.

India is not a unique case, but some factors are peculiar to the country. “Women’s opinions matter surely for family cars. Normally, it is a joint decision,” Sofue said. Many a time a “car is purchased and registered under a male name, but chosen and driven by female owners, such as wives and daughters.”

Many women feel they aren’t being taken seriously at the dealership—a challenge for car companies in an environment where every sale counts. Some dealerships are even offering sensitivity training to the male salesmen.

“Women are very capable of bargaining and want to be involved in the process,” said Pradeep Saxena, a former marketing veteran with Hero Honda Motors Ltd and now a market researcher with TNS Automotive. “There’s a missed opportunity when dealers don’t hear what women want and what they need, especially when women have more purchasing power and are more involved in decision-making.”

Rising competition will mean car makers may have to introduce at least two-three models a year, said Jatin Chawla, sector analyst with India Infoline Ltd.

The nation’s automotive sector will become the fourth largest in the world by 2015, overtaking the European market, consultancy firm Booz and Co. said last month.

With more models to choose from, car makers such as Nissan and Maruti have realized the importance of wooing women, a segment that will grow in numbers among car buyers.

“At the end of the day, if you ignore women in today’s world you will lose business,” said Saxena.

“After logging 600 per cent growth over 2009, our sales should cross the three-digit mark in 2011,” Rolls-Royce CEO Torsten Muller-Otvos told reporters here.

Rolls-Royce sells the Phantom and Ghost brands in India, priced upward of Rs 2.5 crore and Rs 3.5 crore, respectively.

India is the second-fastest growing market for the company after China. The China will form the carmaker’s biggest market as early as 2014, with its Ghost sedan driving demand, Mueller-Oetvoes said.

Rolls Royce now also plans to increase the footprint to India beyond the dealerships in Delhi and Mumbai.

“We looking at opening two more locations in Punjab and Hyderabad,” Muller-Otvos said.

Rolls-Royce also plans to unveil an electric version of its Phantom model, ’102EX’, at the Geneva Motor Show on March 1.

“We have engineered the world’s first battery electric vehicle for the ultra-luxury segment. With this vehicle, we begin an exploration into alternative drive-trains, seeking clarity on which alternative technologies may be suitable to drive Rolls-Royce motor cars of the future,” he said.

The US-based carmaker started 2011 with its best-ever monthly sales performance. The company sold over 10,000 units in the first month of the New Year and is now concentrating on introduce eight more car models in the next four years, Anurag Mehrotra, Vice-President (Marketing), Ford India, said here.

Besides, the company is concentrating on expanding its network across the country by appointing 30 more dealers, Mehrotra said, adding Ford India currently has 170 dealers.

The firm sold 83,887 units in 2010 and nearly tripled it sales volume against a total of 29,488 cars sold in 2009, he said, adding the auto major has not seen such a huge jump in sales in the last 15 years.

Ford India sold 10,026 units in January as against 2,453 units in the same month last year, Mehrotra said.

Gujarat is one of the fastest growing markets for Ford in the western region and the state has contributed 28 percent of the total sales, he added.

“Audi has continued this successful performance in January 2011. Based on this achievement and the current market conditions, we expect exceptional growth this year,” Michael Perschke, head of Audi India, told reporters on the sidelines of the company’s launch of premium luxury sedan A8 L.

According to Perschke, Audi has became the fastest growing luxury brand in India with the sale of over 3,000 units in 2010 and a sales growth of 81 percent.

“We expect our sales number in 2011 to grow at a minimum level of 50 percent, this should take our total sales figures to over 4,000 units,” Perschke said.

The company also expanded its portfolio of products in India with the launch of the premium luxury sedan A8 L, priced from Rs.8.9 million (ex showroom Delhi) onwards.

“The launch of Audi A8 L is a milestone for us. It marks the entry of our new flagship in India. This super luxury sedan will allow us to further build upon the tremendous growth potential,” Perschke said.

The super luxury sedan is equipped with the 4.2 FSI petrol engine with light aluminum body and elegant interior using premium materials, like the superior Valcona leather used on the seats and brushed aluminum or fine woods used in the optional inlays, the company claimed.

The German car manufacturer also opened the largest luxury car showrooms in the country with two storey facility in New Delhi displaying 20 cars in a space of over 30,000 sq. ft.