New Maruti Dzire

The carmaker is testing its newly developed diesel technology, common rail i-DTEC, on the Brio and could introduce it in a 1.2-litre version. The diesel variants of its City sedan and Jazz hatchback, carrying larger engines, will be introduced later. The company had earlier planned to introduce diesel vehicles in 2013.

“Honda is committed to bringing its diesel technology to key markets like India. And to ensure that Honda diesel is best suited to local conditions and offers optimum performance levels, Honda is conducting stringent tests at its R&D centres across several locations,” a company spokesperson said in an email response. Honda, which operates in India through its JV Honda Siel Cars India, is keen on regaining market share from rivals Volkswagen and Toyota whose diesel cars account for a large chunk of their sales.

The Japanese automaker, which entered India in 1995, has seen sales fall 27% in the first nine months of the current fiscal, largely because it was unable to introduce any diesel variants, which have become popular in India because of the rising cost of petrol.

The carmaker’s output in India was also affected by shortage of components after last year’s tsunami in Japan and flash floods in Thailand, which led to a 36% loss in production, or 27,939 units, in the April-December period.

The i-DTEC engine, nicknamed “Earth Dreams Technology” will first be used in the new Civic sedan in Europe this year. According to some people working closely with the company, “its application for other models and markets is likely to come in the shape of Brio compact car for India in the initial phase”.

Diesel cars, which registered a 26% rise in sales in the first nine months of the current fiscal, accounted for about 60% of the passenger vehicles sold in the country. During the same period, sale of petrol cars dipped 18%. According to industry executives, diesel cars account for over 80% of sales in models like Maruti Swift and Hyundai Verna, where both fuel options are available.

Maruti Suzuki India, Hyundai Motor India Ltd and Tata Motors, the top three volumes player in the Indian automobile market, are leaving no stones unturned to tap the potential of social media which they consider very important for future.

“Earlier, source of information for buying a car used to be friends and family but now increasingly more people are doing it themselves through the social media. Moreover, it is inexpensive and you can get a lot of feedback from customers through it,” Maruti Suzuki India (MSI) Chief General Manager (Marketing) Shashank Srivastava told PTI.

Social media can no longer be ignored as it is becoming a part and parcel of smart phones and with increasing internet penetration across India. Therefore, for any marketer it is important to be a part of social media, he added.

“The importance of social media is that increasingly the average age of users is decreasing. In 2005-06 it was 39 years and now it is 34,” Srivastava added.

Expressing similar sentiments, Hyundai Motor India Ltd (HMIL) Director Marketing and Sales Arvind Saxena said: “We are getting a lot of young customers, who are active on the social media, these days. They are constantly on Facebook or Twitter exchanging information. If you want to tap them, you need to be on social media.”

Tata Motors believes that communication through social networking sites is the immediate barometer of effectiveness in the communication strategy.

“We engage with customers through social media marketing, answer their queries on social networking sites like Facebook, Twitter and so on. Besides the metros, we also received good response from small towns,” a Tata Motors spokesperson said.

Market observers also feel that the auto companies are heading towards the right direction with the use of the social media as a marketing tool.

“Last year we saw a big chunk of first time car buyers look for information on the Internet and social media pages before making a purchase decision. It is in this context that we are saying auto makers using e-marketing for example email news letters to better engage this community,” Octane Marketing COO and Co-Founder Samarth Saxena said.

As per a recent report ‘e-Marketing Outlook in India for 2012′ by Octane Marketing, there would be 18 per cent increase this year in the number of Indian marketers, who see the importance of integrating e-mail and social media campaigns.

Social media (68.8 per cent) and e-mail marketing (53.1 per cent) emerged as the top two online marketing initiatives that will see an increase in marketing investments in 2012, as compared to 2011, the report said.

Considering the importance of the medium, it is not surprising that these companies are increasing their spendings for campaigns on the overall digital media.

“In fact our spending on digital media, including social media has been doubling over the past few years. This year it will be Rs 16 crore as against Rs 8 crore last year,” Srivastava said.

He further said, “The amount may be still small compared to our overall marketing expense but one has to keep note that we have been doubling it.”

Similarly, HMIL has also been doing the same. “Two years back our spending on digital media was very less. It was about two per cent of our total marketing expenditure. Today it is has increased to about eight per cent,” Saxena said without sharing the overall marketing expense of the company.

Already, the companies are seeing the returns on these investments.

“Our model Ritz has the highest following on Facebook with 5.5 lakh followers. The Alto has 4 lakh followers,” Srivastava said, adding MSI even used feedback from customers while coming up with new products.

“Lots of changes that we had incorporated in the interiors of the new Swift was based on feedback from people through the social media,” he said.

Tata Motors has also reaped the benefits of logging on to the online medium and sell its Nano, besides using the conventional methods.

“Tata Nano is also very active on Facebook and Twitter. Nano Facebook page has a fan base of over 1.56 lakh,” the company spokesperson said.

Lastly, but not the least, Srivastava said having a presence in social media has its brand rub off as well and “any company which is inactive on it is considered outdated” by today’s young customers.

“The usage of social media by companies will only increase. I am sure there will come a time when car launches will happen only on social media. Although it may take time in India but the direction is very clear,” he said.

A car is an object of affection. While function, practicality and logic do play their part, the drool factor has always played a major role in the decision making process of purchase for potential car buyers are looking for a vehicle that will make them look good, stand out and simply gel with their persona.

Having said that, there are a handful of cars that have been a market success based on their merit of being extremely practical purchases. Their looks are not something to write home about, but the vehicle itself has proved its mettle and gone on to become a success story. Such is the nature of the Swift Dzire.

When it made its debut around four years ago, one couldn’t phantom how MSIL would fit a boot onto a car that was designed to be round. That being said, I am yet to come across someone who doesn’t like the car! In terms of numbers the Swift Dzire clocked over 10,000 units a month and MSIL has sold over 3.3 lakh units till date in the domestic market.

With the advent of the new Swift, it was a wait and watch game to see how MSIL would treat the boot on the new Dzire this time around. Fingers were crossed that the designers would pay more attention to detail and design, however they seemed to have walked down a new path and enter the realm that has so far only seen the Tata Indigo CS occupy. That’s right, instead of working on a gorgeous rear, the new Dzire has been designed to fit the 4000mm length requirement that the Indian Government has stipulated as the definition in size for small cars and therefore benefit from the additional excise cut.

Fitting a boot onto a hatchback that measures 3850mm in length while keeping the overall length of the car under the 4000mm mark obviously isn’t any easy feat to accomplish and the designers literally had even less room to play around with. The result of all this tinkering and scalpel treatment is a notch. No, the new car isn’t a notchback, but a proper three box sedan, albeit with a very tiny looking boot.

The size is most apparent when the car is viewed from the side and there is no doubt that this is going to take some effort for those looking for a three box car to digest. The design is boxy compared to the rest of the car and the boot sticks out distinctively from the otherwise round sporty lines of the Swift. The factor that does light up the rear are the large tail lamps which now form a trapezoidal appearance and frankly look quite nice, but that is just a consolation prize to an otherwise mediocre design.

Measuring 3995mm in length, the new Dzire still manages to offer more than its hatchback sibling in terms of space. Despite the truncated boot, it offers 316 litres of trunk space, which is over 100 litres less than the outgoing model. While this does take away slightly on the whole practicality aspect, the new Dzire is still a decent purchase for those looking for a no nonsense entry level sedan.

The Dzire is based on the new Swift so it gains from the fact that interior space has been optimized for passenger comfort.

Moreover Maruti Suzuki has packed the Dzire to the hilt with goodies which includes a dual tone dash, integrated stereo on higher models, climate control air conditioning as well as a host of safety features such as front dual SRS airbags, ELR seatbelts, ABS, Brake Assist, EBD and an Engine Drag Control system.

The Swift Dzire will be available in both petrol and diesel engine options. The petrol variant boasts of the K12M VVT petrol engine which delivers 87PS of power @ 6000rpm and a decent 114Nm of torque @ 4000 rpm. Tuned to offer a spirited drive yet retain a decent mileage figure, the petrol

Dzire is capable of going from 0-100kmh in just 12.6 seconds and offer a company claimed fuel efficiency of 19.1 kmpl.

The diesel variant retains the tried and tested 1.3litre DDiS engine that generates 75PS of power @ 4000rpm and a solid 190Nm of torque @ 2000rpm.

Being a class leading engine in terms of fuel efficiency, the diesel Dzire offers a company claimed efficiency figure of 23.4kmpl and still manages to go from 0-100kmh in just 14.8 seconds.

Now all these figures might seem rather high for an entry level sedan, especially when compared to its hatchback sibling, but here is the key to all this wizardry. The Dzire weighs in exactly the same as the hatchback, despite the slight extension in size!

Now MSIL hasn’t just stopped here, but have taken the Dzire a notch further (pun intended) by also offering an automatic transmission variant.

The four speed automatic transmission will debut with the petrol engine initially however we are praying that this extends to the diesel in the future. The box is a smooth unit that is extremely well suited for city driving and will be a boon any city dweller.

It is worth mentioning however, that the automatic variant doesn’t come with climate control air conditioning and features the regular switch and blower unit that we are accustomed to on smaller cars.

So, after having spent a day out with the Dzire, I have returned with a mixed bag of emotions. On one hand, the car just doesn’t offer any visual delight, but there is brilliance in what MSIL has achieved. By making it less than 4000mm in length, it benefits from the excise cut and therefore lets the company pass on that benefit to the customer in the form of lower pricing.

At the same time, MSIL has packed the car with ample goodies and safety features that are comparable to sedans from a segment higher. Where this leaves the equation is just about exactly where the original Dzire started its journey-practicality.

The new Dzire is once again going to have to make its way into the market by trumpeting the practical vehicle badge. It might have lost out on a little trunk space but there is still no arguing the fact that it still remains a very practical offering that is hard to ignore and customers should be urged to look past the sheet metal and recognize the genius that lies underneath.

Although the model will qualify for the excise duty of 10 per cent enjoyed by small cars, the company said it is unlikely that the new version of DZire will be priced less than the existing one, which ranges between Rs 4.94 lakh and Rs 7.29 lakh (ex—showroom Delhi).

“We have invested a lot on the new DZire. It is on a brand new platform. There are at least 150 new features compared to the existing DZire and it is unlikely that the new one will be priced less,” the Maruti Suzuki India Managing Executive Officer (Marketing and Sales), Mr Mayank Pareek, said.

He, however, added that the company has not yet finalised the pricing of the new DZire, which will be available in both petrol and diesel options.

While the petrol version will be powered by a 1.2 litre engine, the diesel one will have a 1.3 litre engine. An automatic transmission variant will also be available in the petrol version.

The company and its vendors have invested over Rs 230 crore for the model change, Mr Pareek added.

Asked if the existing DZire would be discontinued once the new version is launched, he said, “There is demand for the existing one and we will continue it for some specific variants for the commercial segment.”

According to MSI Chief General Manager (Marketing), Mr Shashank Srivastava, the company will discontinue the mid- and top variants of the existing DZire and offer the base model in stripped down version to target fleet segment.

Mr Srivastava said the new DZire will be launched in the first week of next month.

Since its launch in 2008, the DZire has sold over 3.2 lakh units so far. The existing model did not enjoy the excise benefit of 10 per cent on small cars as it is longer than four metres.

The new DZire will be manufactured at the company’s Manesar plant. MSI is looking to recover lost ground this year after it was hit by a series of labour unrest at the plant last year.

Mr Pareek said at present the DZire has a waiting period of 3-4 months and MSI is looking to address the issue by gradually ramping up the output.

As per the current Government policy, cars below the length of four metres and engine capacity of 1,200 cc in petrol and 1,500 cc in diesel qualify as small cars.

Those bigger than the specifications come under the big car category and attract excise duty of 22 per cent with an additional Rs 15,000 for those cars with engine capacity above 1,500 cc.

Dr Ralf Speth, Chief Executive Officer of JLR, told Business Line that it was not the easiest of decisions to invest in a downturn as any company would have to leverage wisely between growth and liquidity.

“During a crisis, cash is king since getting money from banks during these times is nearly impossible. This makes it even more challenging to balance things out in the right way,” he said.

Some companies opt for the safe route of cash conservation in difficult times while others try and find a way in between marginal investments while steering clear of product creation.

“The third route involves saving wisely while not interfering with the (product) development process. When the crisis is over, the company concerned emerges a lot stronger with new products. I personally am in favour of this option though it finally depends on how long the slowdown lasts if we have to maintain the R&D momentum,” Dr Speth said.
Be Flexible

From his point of view, it is imperative for JLR to be flexible and save in every way possible while giving top priority to product development. “This is what the market will demand when the slowdown is over. We should be financially cautious but still push forward with new products. The world has seen a lot of crises and we need to be constantly optimistic,” Dr Speth said.

This, however, does not take away the fact that the recent events in Europe are a huge cause for concern to carmakers especially when nobody has a clue on what lies ahead.

“I am very worried about 2012 and what is even more disconcerting is the unpredictable scenario. Just when we thought the worst was over post-Lehman, we are now up against this crisis,” he said.
US, emerging markets

The silver lining in the cloud is that the US is beginning to show some signs of recovery though Japan could still stay relatively flat in 2012. Eventually, JLR is pinning its hopes on emerging markets like India, China, South America and Russia with products like the Range Rover Evoque, Sport, Discovery and XJ.

China, in particular, has been the best piece of news in 2011 with sales of over 42,000 units which accounts for nearly 16 per cent of the company’s global volumes of 2.45 lakh vehicles. In contrast, sales from its traditionally reliable markets like the UK, North America and Europe fell to sub-20 per cent levels. This could just get worse if the slowdown continues through 2012.
Upbeat on India

Dr Speth was as upbeat about JLR’s prospects in India, a market where its owner, Tata Motors, is one of the oldest auto brands. “We think India has the potential to grow like China in the coming years. The team has done a great job in developing the overall base and I am very satisfied,” he said.

There are concerns that the India story could be derailed during 2012-13 thanks to the Europe crisis. However, global carmakers do not share this pessimistic outlook especially when the rest of the world is in a semi-paralytic state.

“If India has a problem with 7.9 per cent GDP growth, I think seven per cent would be fantastic in Europe though it may not be achieved in the next ten years. Obviously, there is a different perception of what a crisis means as emerging markets will eventually offset negative growth in one or more industrial nations,” Dr Speth said.

At present, Mahindra & Mahindra’s all- electric Reva is the first and only electric car on the Indian roads. As the two- seater vehicle attracted only few curious and green- conscious buyers, the company has unveiled a new four- seated version slated for commercial launch before Diwali 2012.

According to sources, the company is working on keeping the price in the range of ` 4- 5 lakh, as it is looking at larger commercial success.

“ We have been saying time and again that electric and hybrid cars are the future. But price is one factor that needs to be worked on. With more infrastructure support and incentives we are sure that more companies will come up with such technologies,” Pawan Goenka, president ( automotive and farm equipment sectors), Mahindra and Mahindra, said.

Another firm Toyota Kirloskar Motors launched the new Prius at the Auto Expo priced at ` 27,38,500 to ` 29,40,500 ( exshowroom Delhi).

“ Hybrid is the technology for tomorrow. We aim to raise awareness of hybrids.

With a solar powered ventilation system we hope to see more Prius customers,” said Shekar Viswanathan, deputy managing directorcommercial, TKM. Even companies like Maruti Suzuki that has stuck to the traditional fossil fuel- driven engines are looking at commercially manufacturing a hybrid Swift. According to reports, the carmaker has already started road- testing the Swift ‘ range extender’, which runs on an electric motor, and alternatively on petrol.

Two- wheeler companies are not far behind.

Hero MotoCorp, the leading two- wheeler maker in the Indian auto market, uncovered its first ever concept hybrid scooter, Lead, at the Auto Expo.

Ertiga’s compact dimensions make it easy to park and maneuver. Its active and dynamic stance from the outside, and the quality fit and finish and features in the interiors, enhances its appeal among customers. Ertiga will be offered in both petrol and diesel versions.

The glistening `Serene Blue’ compact MPV was unveiled by Mr. Kenichi Ayukawa, Deputy Executive General Manager, Global Marketing, Suzuki Motor Corporation and Mr. Shinzo Nakanishi, Managing Director & CEO, Maruti Suzuki India Limited.

Speaking at the unveiling Mr. Kenichi Ayukawa said, “Suzuki Motor Corporation has taken the opportunity of the Delhi Auto Show to showcase models that hold our message as a compact car manufacturing expert. This is because the event has been getting more and more prominence and importance in the global automotive industry. India is one of the countries that has been drawing increasing attention from the world.

“Through the Ertiga, XA Alpha and all the other cars on display at this pavilion we want to deliver a message of our brand philosophy of – Way of Life”.

Managing Director and CEO of Maruti Suzuki Mr. Shinzo Nakanishi said, “The global premier of the Utility Vehicle portfolio at the Auto Expo is an iconic event as it is a reflection of the Company’s preparedness for the future competitive scenario. The Ertiga brings space, style and compactness to Utility vehicles for customers in India. As India gears to be amongst the largest global automobile markets by 2020, with the foray into UV segment, Maruti Suzuki will strengthen its leadership position in the industry. With Ertiga the Maruti Suzuki will step into the Utility Vehicle segments and effectively create a new Compact MPV segment in India.”

Compact MPV segment

The Utility Vehicle (UV) segment accounts for around 14 per cent of the Indian automobile industry, a 66 per cent (two third) of these are Multi-Purpose Vehicles (MPV), the segment where Ertiga is positioned. In the Indian automobile industry, the MPV is the fastest growing sub-segment amongst UVs showing a growth of around 15 per cent in the last four years. At the same time Utility Vehicles segment (MPV + SUV) have shown a growth rate of over 12 per cent in the last four years.

The Ertiga is launched in India with an aim to pioneer a new market of compact 3-row vehicles.

Theme of togetherness

Ertiga is a bold and aggressive initiative, wherein company’s designers have carefully built in `features and attributes’ of a sedan in a compact MPV to evolve a next generation vehicle.

Built on the central theme of ‘togetherness’, Ertiga is an interesting mobility solution for young dynamic confident Indian who want to retain individuality yet retain Indian custom of ‘togetherness’.

Ertiga’s compact proportions are its uniqueness and give the users excellent flexibility to park and maneuver even in congested lanes and by-lanes of metros and semi-urban cities.

Ertiga has been crafted to address the need of evolving Indian customer for individual day-to-day running, unwinding with family on a weekend shopping, dining, fun time with colleagues and friends and long weekend leisure drives etc. Ertiga fits the best with this positioning as its compact size offers optimized seating for any urban family.

Conceptualizing the Ertiga

Though an MPV, Ertiga retains characteristics of a passenger car – it is stylish, sporty and has an elegant appearance. With an active and dynamic stance that delivers energy, the youthful Ertiga is an example of innovative use of space.

The key styling of the Ertiga revolves around the basic elements of Passenger car characteristics, Ertiga’s powerful road presence with an assurance of safety that complements Suzuki’s strong Identity.

Compact yet Spacious

The Ertiga is distinguished by its compact dimensions (overall length: 4265mm, overall width: 1695mm, overall height: 1685mm). The bold and aggressive stance complemented by the 2740 mm wheel base along with 15 inch alloy wheels combined with a strong shoulder thick section gives Ertiga an absolute power of presence.

Interiors – Redefining driving pleasure

The plush and premium interiors of Ertiga exude confidence, elegance, class, versatile character and agility. The interiors offer a host of new features such as a 3-spoke, tilt adjustable electric steering, twin AC, audio system (USB Compatible, 4+2 speakers), steering mounted audio controls, central door locking and keyless entry, multi information display, power windows with auto down and electrically adjustable mirror. The feature rich Ertiga is sure to delight the customer looking for rich features in the MPV.

Introducing the K-14 VVT engine first time on Ertiga

The all new powerful and light weight K-14 VVT petrol engine will debut on Ertiga. In that way it’s also a global unveiling and extension of the `K’ family engines. In addition, the Ertiga’s diesel variant will be powered by the acclaimed 1.3 litre DDiS Super Turbo diesel engine.

Class leading Performance and Efficiency

The Indian specification Ertiga with a petrol engine delivers a peak performance of 70kw@6000rpm and a maximum torque of 130Nm @ 4000rpm. The Certified fuel efficiency (as per CMV Rule 155, India cycle) of Petrol Ertiga is a top of the class 16.02 km per litre.

The Ertiga with the high powered Diesel engine in India will deliver a peak power of 66kw@4000rpm and a top end torque of 200Nm@1750rpm. The Certified fuel efficiency (CMV Rule 155, India cycle) of Diesel Ertiga is a class leading 20.77 km per litre.

Versatile seating

The Ertiga offers a three-row flexi-seating options for 7 passengers (2x3x2) that is easier to operate and is high on storage space. Each row of the car has been designed keeping in mind the occupants seating requirements; whether for an individual’s day-to-day business commitments or for a family’s weekend shopping, dining or week end drives.

Excerpts:

What is the outlook for Maruti in 2012? Are you stepping up focus on rural and semi-urban pockets?

The prospects for the car market in India during 2012-13 will become clearer after the Budget. Factors like recovery in Europe, reversal of the decline in the rupee, the inflationary trend, interest rates and fuel prices will all play a part. The policy regarding pricing of diesel compared with petrol will also be relevant. However, Maruti Suzuki does expect that it will have a better market share in 2012-13 as compared to the current year, when the strike in the factory caused a decline in sales and market share. The rural and semi-urban markets have been areas of priority for us and will continue to remain as such.

Do you think it is the right time to enter a new segment? How has your luxury car offering Kizashi performed since launch? Is Maruti stretching itself too thin in an attempt to cater to all segments?

We are proposing to enter the MUV (multi utility vehicle) sector with the Ertiga. The MUV segment is a growing market and we believe it is the right time to launch a model. The Kizashi was never expected to sell in high volumes and has been impacted by the falling market as well as a weak rupee. However, having vehicles in all segments is the right strategy for MSIL, being the market leader in India.

Maruti saw a massive disruption in production in 2011 amid worker unrest. In hindsight, do you think the management could have handled the labour issues better? Could the state government or outside unions have offered you more support in dealing with truant workers?

I believe the labour issues were handled very well by the MSIL management. The state government gave full support in dealing with the problem. Outside trade unions really had no role to play in bringing about a solution. The management has implemented a number of measures which are designed to bring about closer and more productive relations with workers and prevent further trouble.

Maruti has been struggling to meet demand for diesel cars. Is there is any plan to put up fresh diesel engine and vehicle capacity to meet this growing demand? Has the sourcing deal with Fiat for diesel engines been finalised?

Please check the position of the deal with Fiat with the management. An investment decision for producing more diesel engines by establishing a new line would be considered after the Budget.

Your take on competition in passenger cars… Have you decided to delay or postpone investment in the new facility in Gujarat because of the current slowdown?

The market will continue to be highly competitive. MSIL has been successfully dealing with this and will continue to do so in the future. We are not slowing down investments in Gurgaon. The work on Line 3 was started some time ago and is continuing. (He made no comment on investment in Gujarat.)

The company will showcase its sports utility vehicles Rexton and, which will be launched in India soon, at the auto show to be held in the National Capital.

“Post the acquisition of Ssangyong Motors, there has been a lot of interest within Indian consumers to see for themselves some of these world-class products. Keeping in mind this aspiration, Mahindra will showcase among other vehicles, both the Rexton and Korando E which are slated to be launched in India shortly,” the company said in a statement.

In November, 2010, Mahindra & Mahindra (M&M) had signed a definitive agreement with Ssangyong Motor Company (SYMC) to acquire 70 per cent stake in the ailing South Korean auto maker at a total cost of $463 million (about Rs 2,105 crore).

Besides, the company will also showcase an electric variant of its sedan Verito during the Auto Expo. Electric vehicle Mahindra Reva NXR will also be displayed.

Likewise, Ford India will showcase a new vehicle that is planned to be introduced in India and other global markets in the near future.

“The new vehicle will be the latest One Ford global product, a vehicle designed to help expand Ford’s footprint in the world’s fastest—growing auto markets, including India. It will be the second of eight products Ford plans to bring to India by mid—decade,” Ford India said without sharing details.

The company will showcase in total 12 vehicles, including Figo, new Fiesta and Endeavour, it added.

Premium luxury car—maker Mercedes—Benz yesterday said it will launch its SLS AMG Roadster at the Auto Expo in January. The company will also display the concept A-Class, which is globally acclaimed for its superior technology.