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Maruti is schedule to launch its all new ALTO-K10 on 4th August 2010, 12pm in Delhi, Mumbai and Bangalore.

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.

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Mahindra and Mahindra Ltd (M&M), India’s largest maker of utility vehicles, plans to launch at least eight models in the next 12 months, including variants of existing models.

The company intends to unveil a new sports utility vehicle (SUV) as well as variants of the utility vehicle Xylo and the small truck Maxximo, president of automotive and farm equipment Pawan Goenka said in a conference call with analysts.

All the models will roll out from M&M’s factories at Nashik and Chakan in Maharashtra. “It’s going to be one of the busiest years for us in terms of new product launches,” said Goenka.

The announcement follows the utility vehicle maker reporting a 40% jump in quarterly profits on 28 July, beating analyst estimates.

Ajay Sethia, analyst at Centrum Broking Pvt. Ltd, said the launches may not boost sales significantly unless they include a compact SUV. M&has M been planning such a launch, but did not speak about it on Thursday.

“The SUV, expected to be priced at Rs5.5 lakh, can lead to incremental volumes,” said Sethia.

Goenka said the demand for its models was robust, but the company was facing production worries as three key inputs—tyres, casting components and fuel injection systems used in diesel vehicles—were in short supply.

As a result, M&M had suffered a production loss of 7-8% in the June quarter. This included tractors, utility vehicles and smaller vehicles, whose combined sales rose 12% to 101,864 units.

The firm is now considering importing some of these parts, said Goenka, but the impact will only be visible by the third quarter of the fiscal.

M&M is also considering setting up a tractor manufacturing unit in Tamil Nadu. This will help the company compete with India’s second largest tractor maker, Tractors and Farm Equipment Ltd, or Tafe, which has a strong presence in the southern states.

Another analyst with a foreign brokerage said his firm is positive about M&M’s performance in the coming quarters, but he is sceptical if it can sustain the margins. “The margins can play a spoilsport for any auto company,” he said, requesting anonymity.

Shally seth
mint (Web & Print Edition)

Pune: Nearly three years after Bajaj Auto Ltd (BAL) pulled the plug on scooters, and stopped producing them at the Pune plant, Mr Rajiv Bajaj, Managing Director, has given the assurance that the company will return to making scooters.

The promise, however, comes with the rider that this will happen only after BAL gains recognition as a player of importance in the global motorcycle market.

“We will make scooters at some point of time,” Mr Bajaj told shareholders at the company’s annual general meeting (AGM), adding “but we have to be a globally dominant maker of motorcycles before that.”

Outlining the strategy, he said BAL wanted to become a specialist in marketing. “I don’t think motorcycles that succeed are (necessarily) better products, they are perceived as better products,” he said, adding that he wanted to compete by creating a right perception.

“When markets evolve, businesses have to be specialised, and only branded businesses make money.”

The way to specialise is through sacrifice, Mr Bajaj said, maintaining that by sacrificing scooters, BAL came to be perceived as a motorcycle specialist. “Though we make 3.5 million bikes (a year), our global market share is only 10 per cent,” he pointed out. “There is no reason why we cannot push for 30-40 per cent and do one thing well,” he said, reiterating, “We never said we’ll not make scooters, not at this point.”

Speaking about the car project, Mr Bajaj said that a new platform of three and four-wheelers was being developed and would most probably be made at Waluj which will help keep costs down. “We are not trying to make cars, but money-making cars,” he emphasised, adding that BAL believed in operating with 20 per cent EBITDA margins.

“We will put out a four-wheeler by 2012 and the capex on the project will be less than Rs 500 crore,” he said.

Alka Kshirsagar
The Hindu Business Line

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.