India a market for low-cost cars? Not any more

If you thought India was a low-cost car market, it might be time for a rethink. In the nine mnths to December 2012, the three models that brought additional numbers for Maruti Suzuki were not from the entry-level segment, once the bread-and-butter for the company. These were the Swift, DZire and Ertiga — all bigger premium products with price tags of more than Rs 4.5 lakh.

In fact, while sales of low-cost cars (M800, Alto, WagonR, Estilo and A-Star) declined around 13 per cent during the period to 305,209 units, those of more expensive models like the Swift, DZire and Ertiga (priced between Rs 4.5 lakh and Rs 8.70 lakh) surged a whopping 83 per cent to 299,248 units.

The share of these value-for-money cars in the company’s overall sales declined to 41 per cent from 51 per cent in April-December 2011, while that of premium cars rose to 40 per cent from 24 per cent in the corresponding period the previous year. (CHANGING GEARS)

Maruti Suzuki India Ltd (MSIL) COO (sales & marketing) Mayank Pareek, agrees that Indian buyers have become more value-conscious and are showing a higher preference for premium products. But he also mentions that the difference in prices of diesel and petrol could have had a play in the sales numbers. “There is a demand for premium products, with a high proportion of sales for even entry-level products coming from high-end variants, but we also have to consider that entry-level products don’t have diesel options. This may be fuelling demand for bigger cars.”

The shift towards premium models could also be seen in the sales figures for Hyundai Motor India Ltd (HMIL), the country’s second-largest car maker. Here, too, despite the newly launched Eon pushing volumes, the combined share of this small-car model, the Santro and i10 in Hyundai’s total volumes came down to 58 per cent in April-August 2012. The Korean auto firm sold 163,611 units of these three models — a 5.7 per cent climb down from the 173,460 units sold in the corresponding period the previous year.

In the meantime, the sales of i20, Verna, Elantra and Sonata rose nearly 19 per cent to 115,020 units, accounting for 41 per cent (up from 35) of the overall HMIL sales. Vice-President (sales & marketing) Rakesh Srivastava says: “Due to the wide difference between prices of diesel and petrol, there was a substantial swing in consumer preference for models with diesel power trains. This led to volume growth for the i20, Verna and Elantra. Strong brand differentiation, with addition of unique features liek day-running light (DRL) in the i20 also boosted customer interest, bringing in more buyers.”

V G Ramakrishnan, senior director (automotive practice (South Asia, West Asia and Africa), Frost & Sullivan, says the trend has been precipitated by the economic slowdown. “While consumers at the entry-level are more sensitive to factors such as inflation, high interest rates, fuel expenses, those up the ladder have more disposable income at hand. For an entry-level buyer, the cost of a car would be equal to or more than his annual salary, but for a mid-level one, the vehicle cost would be a smaller portion of his overall salary. So, making purchase decision would be easier for the latter segment of buyers,” he says.

Also, with the age of first-time buyers coming down, consumers are moving towards bigger and premium cars. Abdul Majeed, partner and leader (automotive practice), PricewaterhouseCoopers, says: “As consumers are moving from middle to higher-middle class, the cash flow is increasing. And, the first aspirational need they want to address is mobility. A bigger and better car is a status symbol.” Over last five years, while the proportion of first-time buyers at the entry level (cars priced between Rs 2 lakh and Rs 4 lakh) has declined to 55 per cent from 62 per cent in 2007, the number of first-time buyers in the A2+ segment (cars priced above Rs 4 lakh) has nearly doubled to 46 per cent from 24 per cent.

Industry estimates suggest, there are around 15 million people vehicle owners in the country. Of these, around 10 million are looking to switch to a better car. The trend of customers moving towards premium cars is also being pushed by the large base of customers wanting to upgrade. “The rising interest rates could have deterred first-time buyer, but there is a large base of people looking to upgrade their vehicles,” says a senior executive at a leading automobile company.

http://www.business-standard.com/article/companies/india-a-market-for-low-cost-cars-not-any-more-113022300265_1.html

A Spanish Pilot Wanted To Use A Smart Car In A Deadly Off-Road Race

Entrants in the Dakar Rally, one of the most grueling and dangerous races, tend to take on the desert route in cars made for driving in tough conditions. One man wanted to do it in a Smart car. José Luis Álvarez, a Spanish pilot, took a Smart Fortwo and customized it for serious off-roading capability. He put the car's body on the chassis of a Polaris XP 900 side-by-side ATV, and added a 900cc engine that produces 90 horsepower, according to Digital Trends. But even with the sponsorship of Feber, a Spanish toy company, Álvarez was left about €17,000 ($22,552) short of the funds he needed when another sponsor dropped out. Without the money, he could not get the car and his team to the race's departure point, in Lima, Peru. To raise the cash, the team asked for public donations, but fell short of its goal (Álvarez will return the money that was donated). On the Smart Dakar 2013 website, he thanked his supporters and sadly admitted defeat, writing, "We have no choice, we love to dream." Given that Álvarez already has the vehicle he wants to race and is clearly motivated to take on the route, it is a good bet he will make another bid to get to South America for next year's race. Originally known as the Paris-Dakar Rally, the event began in 1977 as a race through Africa and Europe. In 2009, the race was moved to South America because of security concerns. This year's route goes down the Pacific coast, into the Peruvian desert, over the Andes Mountains into Argentina, and then back to the coast before concluding in Santiago, Chile. In its 35-year history, the rally has led to deaths of about 60 people, fewer than half of whom were competitors. Read more: http://www.businessinsider.com/pilot-wanted-to-use-smart-car-in-dakar-rally-2013-1#ixzz2H9cRvvfM http://www.businessinsider.com/pilot-wanted-to-use-smart-car-in-dakar-rally-2013-1

Soon, a smart car that can drive and park itself

Researchers have unveiled a new smart electric car that is able to park itself and come to the driver when "called".
Nissan's NSC-2015 is only a prototype, but its name suggests that the carmaker aims to have it on the market by 2015, the 'BBC News' reported.

However, one analyst warned that the mass use of such cars was a long way off.

The NSC-2015 is a modified version of Nissan's Leaf model and was launched at the Ceatec 2012 show in Tokyo.

The car relies on sensors, cameras, computers and 4G communication technology for wireless links to navigate, and robotics to turn the steering wheel, change gears and brake.

The car drove itself at about 5km/h in a straight line forward and in reverse, and was able to turn, during a demonstration.     The car could recognise road markings and was able to stop at a crossing.    

"After the driver exits the NSC-2015, it starts to park itself automatically, following the instructions given by smartphone," the company said.
 "The vehicle looks for a vacant parking space while identifying its surroundings; once it detects an open parking space automated parking begins.
"The driver can also use smartphone commands to make the NSC-2015 vehicle leave the parking space and return to the place where he or she is," it said.  
The car's security system automatically works with a camera installed in the vehicle.

If the system detects suspicious behaviour, the driver is alerted automatically by a report to his or her smartphone.

However, Tooru Futami, director at electronics engineering development division at Nissan, told Forbes the demo version could only self-park in an area equipped with sensors and restricted to other robotic cars to avoid the risk of collision.

http://www.business-standard.com/india/news/soonsmart-car-that-can-drivepark-itself-/189882/on

Tata to launch eMO Electric Car

After showcasing theeMO EV concept as a part of the Michellin Challenge Design at the Detroit Auto Show, Tata is now working with French company Dassualt Systems to commercially produce the car that could cost around Rs. 10 lakh.

In a statement, Tata Technologies President (Vehicle Programs and Development Group) Kevin Fisher said the company is working on with Dassault Systemes to "leverage the talents of a global engineering team to meet numerous design and cost constraints, as well as create the targeted user experience, including a final vehicle price tag of under USD 20,000."

“The eMO project symbolizes the coming of age of Indian automotive engineering,” said Warren Harris, Tata Technologies President and Global COO. “It is a tangible example of the capability of Tata Technologies to engineer a full vehicle – a first for any India-based engineering services company.” Harris noted that the unique strength of Tata Technologies is the organization’s global reach. “Because we are India-based, Tata Technologies is ... 

dditionally, our experience and presence in Europe and North America means we also have an understanding of developed markets; a combination that provides a competitive advantage to our clients,” he said.Tata Technologies’ Vehicle Programs & Development (VPD) Group, with more than 300 engineers operating from its four automotive engineering centers of excellence worldwide– Pune (India), Detroit, Coventry (UK), and Stuttgart (Germany) – had the responsibility of developing eMO.

 http://in.news.yahoo.com/photos/tata-emo-ev-concept-unveiled-slideshow/media-contacts-dan-saad-siddhartha-bortamuli-latest-press-releases-tata-technologies-displa-photo-1326448215.html

IIT-Bombay rolls out India’s 1st electric racing car

A new set of hot wheels from India is set to enter the racing circuit. What’s more, it’s green. The IIT (Indian Institute of Technology)-Bombay Racing Team on Thursday launched at the institute the country’s first electric race car —Evo1 — designed and manufactured by its members. The car, the first such creation at the student level, will be put to the test in the Formula Students competition at the famous Silverstone Circuit, UK, in July. The competition is a testing ground for the next generation of world-class engineers and it challenges university students from around the world to design and build a single-seat racing car. Evo1 is powered by high-efficiency direct current motors and superior lithium polymer batteries. It has no tailpipe emissions, thus leaving a negligible carbon footprint. It also has a comprehensive data acquisition system, which collects and transmits data of important parameters of the car such as the amount of charge left in the battery and its temperature, motor current, number of revolutions per minute of the wheel and vehicle acceleration. Such a system is widely used during the testing stage to predict the ‘health’ of a car. Created by a team of 60-IIT-B students from different disciplines of engineering, the race car costs Rs15 lakh — Rs3 lakh more than what a car with traditional motor engines and which offers similar efficiency would cost, said Prateek Sharma from the IIT-B Racing Team. “The IIT-Bombay Racing team participated in Formula Student in 2008-2009 with an IC (internal combustion) engine powertrain. This time, it is an electric car. This shift in technology was primarily envisaged keeping in mind the global impetus received for electric vehicles owing to reasons of energy security and environmental concerns. India is many miles away from mass scale of commercialisation of electronic vehicles,” added Sharma. Prof Rangan Bannerjee, dean of research and development at the institute who launched EVo1, said, “We are ready for initiatives which give students exposure to practical groundwork. People who are working on such projects can become innovators tomorrow, which will help us make a difference in society.” http://www.dnaindia.com/mumbai/report_iit-bombay-rolls-out-indias-1st-electric-racing-car_1702401

50% of cars buyers research online before final purchase: Study

With over 120 million Internet users in the country, the Internet is playing a major role in influencing the decision making of India's growing number of car buyers.

An offline study conducted by Nielsen on behalf of Google India at car showrooms of leading car makers in top 8 metros revealed that one in two car buyers had conducted research online before arriving at the dealership.

The survey also revealed that of those who had researched their purchase online, over 50% changed their choice of car brands after uncovering new information on the web.

The study shed light on how the Internet influences the purchasing decisions of car buyers in India. Respondents reported that they used the web to research and compare prices, watch online videos and find images, do competitive analysis, find dealer contacts and read both expert and user reviews. Most car buyers also rated OEMs website as the most important and trustworthy source of information. Of the 50% respondents who went online, 42% said they used search engine as the first source of information, just behind the opinions of friends and relatives' (47%).

On average, car buyers spend 9-12 weeks researching before arriving at their final decision, and of those who turned to the web for assistance, over 90% of shoppers used a search engine to learn more about the cars they were interested in buying.

Buyers rated Internet more important than TV or print media for auto related content, thanks to fast, easy access to necessary information and rich media formats such as online video. Over 56% car buyers also choose to watch videos online as part of their research, with over 48% rating YouTube as the destination and a important source of information on the Internet.

Speaking about the study's findings, Rajan Anandan, VP & Managing Director of Google India, said "This offline study substantiates the growing number of auto-related searches we've seen on Google search in India. Auto is among the fastest growing vertical in terms of query volumes on Google. Most OEMs have not yet tapped the full potential of the digital medium and we hope this study will help them to understand and engage the Indian consumer online."

These findings are consistent with query trends on Google Web Search. Auto is among the fastest growing vertical on Google, with query volume growth of over 70% year on year. In addition, in 2011 mobile queries grew 125% yoy; from smart phones, the query volumes were almost double at 242%.

With search engines emerging as the starting point for online car research, we dug deep into the search query patterns on Google search in India for insights into the minds of consumers across the nation.

In terms of query volume growth: SUVs was the fastest growing car segment growing at (83% yoy), followed by premium cars (82%), sedans (75%), luxury cars (74%) and hatchback cars were growing at (53% yoy).

Based on the search query volumes, we also looked at the top 10 most searched cars based query volumes Google search in India in 2011. 

http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/50-of-cars-buyers-research-online-before-final-purchase-study/articleshow/13848629.cms

Some Big ideas and smart cars

We recently caught actor R Madhavan shooting for Maruti WagonR Think Big Challenge's new TVC in Mumbai, and he was just as involved in the making as he is while shooting for a film.
The TVC captures how the idea of 'thinking big' is infectious, and people who come across Madhavan are coming up with big ideas for the Think Big Challenge in the most unlikely situations. Madhavan said, "We wanted to make an ad that had an aftertaste and recall value. I really like this TVC because it's tongue-in-cheek and funny."
The 'WagonR Think Big Challenge' is back with its third season. It is a call of action for those who have an idea, a business plan and the skills, but have been waiting for the right opportunity. The winner stands a chance to win `10 lakh, venture capital and an all-new WagonR. Madhavan has also been involved with the first two seasons, but his association with WagonR goes back to before he became their brand ambassador. It was his wife's first car and his parents also own one. He said, "It is the kind of car that every Indian wants, and it's smart. It's zero maintenance, and is reliable."
Shashank Srivastava, chief general manager, Maruti Suzuki India Limited, said "The WagonR Think Big Challenge is the perfect stage for potential entrepreneurs. Over the last two years, the quality of ideas has been phenomenal. With each year, the challenge gets bigger and more exciting." To participate, SMS 'WagonR TBP' to 53636 or log on to www.wagonrsmartideas.com.

http://articles.timesofindia.indiatimes.com/2012-04-22/bollywood/31379337_1_ideas-brand-ambassador-first-car