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Tata Motors today took the covers off the world’s cheapest car — the Nano.
Over the past year, Tata has been building hype for a car that would cost a mere 100,000 rupees (roughly $2,500) and bring automotive transportation to the mainstream Indian population. It has been nicknamed the “People’s Car.” Over the course of the New Delhi Auto Expo, which began this week, anticipation had grown to fever pitch.
With the theme from “2001: A Space Odyssey” playing, Ratan Tata, chairman of Tata Motors drove the small white bubble car onto Tata’s show stage, where it joined two others.
The Tata Nano could sell for around $2,500. (Photo by Raveendran/Agence France-Presse/Getty Images)
“They are not concept cars, they are not prototypes,” Mr. Tata announced when he got out of the car. “They are the production cars that will roll out of the Singur plant later this year.”
The four-door Nano is a little over 10 feet long and nearly 5 feet wide. It is powered by a 623cc two-cylinder engine at the back of the car. With 33 horsepower, the Nano is capable of 65 miles an hour. Its four small wheels are at the absolute corners of the car to improve handling. There is a small trunk, big enough for a duffel bag.
“Today, we indeed have a People’s Car, which is affordable and yet built to meet safety requirements and emission norms, to be fuel efficient and low on emissions,” Mr. Tata added. “We are happy to present the People’s Car to India and we hope it brings the joy, pride and utility of owning a car to many families who need personal mobility.”
The base price for the Nano will be 120,000 rupees, including road tax and delivery. Higher level models will cost more and come with air-conditioning. Sun visors and radios are extra.
The nearest priced competitor is the Maruti 800, which costs roughly twice as much as the Nano. In comparing the Nano to the Maruti 800, Mr. Tata said, “It is 8 percent smaller — bumper to bumper — and has 21 percent larger seating capacity than Maruti 800.”
Things to know about Nano, the people's carTata Motors will on Monday launch the "People's Car", the Nano, which it unveiled in January 2008 as the world's cheapest car with a dealer price of Rs 100,000 ($1,900). Following are some details of the 4-door car, available in standard and deluxe versions:
Length: 3.1 metres. Height: 1.6 metres. Width: 1.5 metres. Engine: Rear-wheel drive, 2-cylinder, 623 cc, multi-point fuel-injection petrol engine, rear
mounted. Tata said it is the first time a 2-cylinder gasoline engine is used in a car with single balancer shaft.
Safety: Has an all sheet-metal body, with crumple zones, intrusion-resistant doors, seat-belts, and rear tailgate glass bonded to the body. Tyres are tubeless.
Environment: Tailpipe emission performance beats current regulatory requirements, and the Nano has a lower overall pollution level than two-wheelers made in India, Tata has said. A high fuel efficiency (20 km/litre) ensures low carbon dioxide emissions.
The Team: In 2003, a four-member team at Tata's Engineering Research Centre in Pune city started work on a "very low cost transportation with four wheels" and a price of 100,000 rupees. Helped by the Institute of Development in Automotive Engineering in Italy, the team grew to 500, headed by Girish Wagh.
Nano Europa: Will launch in some European markets by 2011. Length: 3.29 metres; Width: 1.58 metres; Wheelbase: 2.28 metres. Engine: 3-cylinder, all-aluminium MPFI engine with 5-speed automatic transmission and
electric power steering. Plus, advanced restraint systems, ABS, ESP and airbags.
FAQ’s About NANO
What are the fuel options offered on this car? For now, this car will be offered only in the Petrol version A624cc 2 cylinder petrol engine. Will this car be offered in Diesel variant? Is it planned? As of now there is no Diesel variant of the Nano. The Nano is only available in a Petrol version. Can this car be converted to LPG/ CNG? This car is available only in the Petrol version. No other alternate fuel option is offered at the moment. It is not recommended to convert it to LPG/ CNG. Where is the spare tyre located? How can this be accessed? The spare wheel is located under the bonnet and is easily accessible. Do any of the versions in Nano have alloy wheels? The wheels in Nano are called 'Style-in-steel' wheels. They are steel wheels made to look like alloy wheels. Where is the battery located? The battery in the Nano is located below the driver seat. How does the rear engine get cooled? Two scoops are provided on either side of this car. These scoops allow for cooler air to enter as the car moves and also help in engine cooling.
Is there any storage space or luggage space in this car? A luggage space of 80 litres is provided in this car behind the rear seat. The rear seat is a 100% bench seat that can be folded to create additional luggage space. With the rear seat folded, the luggage space in the Nano is 500 Litres. The other storage spaces are cup holders in the floor console for Nano LX, door trims with pockets for books sand magazines in Nano CX and LX, and holding space (storage) on the dashboard due to its peculiar shape.
Are power windows present in the Nano? Yes, front power windows are available in the Nano LX.
Can the Non-AC Nano be converted to an AC version later? It is not possible and also not at all recommended to undertake such a conversion. Such a change will require changing the cross car beam in the Nano and disturb the entire vehicle dynamics. How does this car compare with other entry level cars in India? The interior space for the Nano is 21% more than the Maruti 800. The power to weight ratio of the Nano is more than the Maruti 800. The Nano is also wider and taller than the Maruti 800. The kerb weight of 600 kg for Nano is lower than other entry levels cars in the Indian market. Certain high end features like body coloured bumpers, power windows on front doors and central locking are offered on the Nano LX. These features are not available on other entry-level cars (Maruti 800 and Alto) that are priced between Rs.1.8 to 2.75 lakhs. How comfortable is this car at the driver's seat? The driver's seat comes with a slider and a recliner across the trim levels. The instrument cluster is at the centre of the dashboard thus ensuring maximum visibility at the front. The inner rear view mirror is antiglare in the Nano LX that ensures easy rear view even in harsh conditions. How safe is this car? This car passes all the safety tests required in India including full frontal crash, roof crush, side door intrusion for doors, etc. The Nano design is also package protected for European safety tests like offset frontal and side impact. In addition, ELR type seat belts at front and high mount stop lamps are provided. Nano LX has a host of other safety and security features like front and rear fog lamps and central locking and antiglare IRVM. It also has a Hazard Warning Light switch, which can be operated without the ignition being turned on. This can be used in case of breakdowns especially in the night when the vehicle has to be parked off the road or when the vehicle is operated in adverse conditions. What is the mileage of this car? This car gives a mileage of 23.6 kmpl (as per ARAI).
What is the top speed that this car can achieve? The top speed that can be attained on this car is 105 kmph. Is a music syst9m provided on any of the models in Nano? There is only a provision for music system (wiring) on all the 3 versions of Nano. Does this car come with power steering? No, power steering is not offered on any of the trim levels in this car. What is the pickup of this car? This car accelerates from 0-60 kmph in just 8 seconds. The torque on this car is 48Nm@3000 rpm. What is the engine capacity of this car? The Nano has a 624CC Petrol engine.
Is there a danger of over speeding in this car? This car has a feature of fuel cutoff at the top speed of 105 kmph. So, there is no danger of over speeding in this car.
What is the fuel tank capacity of this car? The fuel tank capacity of the Nano is 15 Litres. How many colours are offered on the Nano CX- mid version? The Nano CX is available in 5 colours: Racing red, Ivory White, Summer blue, Champagne Gold and Lunar Silver. How many colours are offered on the luxury version- the Nano LX? The Nano LX is offered in 3 colours - Sunshine Yellow, Champagne Gold and Lunar Silver. Which are the different colours in which the Nano is available? The Nano is available in Racing Red, Summer Blue, Ivory White, Sunshine Yellow, Champagne gold and Lunar Silver. What is the warranty on the Nano? The Nano comes with a basic warranty of 4 years/60,000 KM, whichever is sooner. Is the body of Nano made of plastic material? No, the Nano has an all sheet metal body. Is the rear seat foldable? Yes, the rear seat of the car is foldable.
How is this car environmentally friendly? The Nano is BS 3 compliant and is BS 4 ready.
How advisable is it to drive the Nano on highway? The Nano is entirely safe to drive on the highway.
he Tata Nano is an inexpensive, rear-engined, four-passenger city car built by the Indian company Tata Motors and is aimed primarily at the Indian domestic market.
Tata Motors began selling its "one-lakh car" in March, 2009.[5] The cheapest car in the world today,[6] though the price continues to rise[7] due to increasing material costs.[8] Its nickname, "one-lakh car" is due to the Nano's price point, near 100,000 (one lakh rupees).
In 2008 the Financial Times reported: "if ever there were a symbol of India’s ambitions to become a modern nation, it would surely be the Nano, the tiny car with the even tinier price-tag. A triumph of homegrown engineering, the... Nano encapsulates the dream of millions of Indians groping for a shot at urban prosperity."[9] "Homegrown engineering" is a relative term here as much of the systems and parts used in the Nano may not have been developed or produced in India.[10]
History
Seeing an opportunity in the great number of Indian families with two-wheeled rather than four-wheeled vehicles,[7] Tata Motors began development of an affordable car in 2003.[11] The purchase price of this no frills auto was brought down by dispensing with most nonessential features, reducing the amount of steel used in its construction, and relying on low-cost Indian labor.[12]
The introduction of the Nano received much media attention due to its low price,[13] and the car was available to buy throughout India in early 2011.[14]
The Nano's development was foreshadowed by the 2005 success of the affordable, 4-wheeled Tata Ace truck.[11]
[edit] Expectations
Many have had great expectations for this small car,[15] some perhaps going a bit too far. One study, by Indian rating agency CRISIL, thought the Nano would expand the nation's car market by 65%.[16]
[edit] Singur factory pulloutMain article: Tata Nano Singur controversy
Tata Motors announced in 2006,[citation needed] that the Nano would be manufactured in Singur, West Bengal,[17] helped in part by a forced acquisition and reuse of farmland by the West Bengal state government[17] to entice Tata to build there.[17] Local farmers soon began protesting the forced acquisition of their land for the new factory.[18] As the protests continued through 2007 and 2008,[11] Tata first delayed the Nano launch[19] and later decided to build the car in a different state (Gujarat) instead.[2]
[edit] Design
A Tata Nano in silver.
The car's exterior was designed at Italy's Institute of Development in Automotive Engineering.[11]
[edit] Cost cutting features
The Nano's design implements many cost-reducing innovations.
The Nano's trunk is only accessible from inside the car, as the rear hatch does not open.[20]
One windscreen wiper instead of the usual pair[13]
No power steering, unnecessary due to its light weight[13]
Three lug nuts on the wheels instead of the usual four[21]
Only one wing mirror [13] No radio or CD player[13]
No airbags in basic model[13]
623cc engine has only 2 cylinders[13]
[edit] Price
Wikinews has related news: World's least cost car launched in India, will go on sale in April
Announcing the vehicle as the least expensive production car in the world,[22] Tata aimed for a starting price of one lakh, or 100,000, rupees. This was approximately US$2000 at the time.[23] As of December, 2010, the cheapest Nano costs around US$2900.[7]
Rapidly rising material prices[8] (up 13% to 23% over the car’s development time[24]) caused it to cost somewhat more than 1 lakh (US$2,220).[25]
In late October 2010, Reuters reported that prices will be raised by an average of 9,000 rupees (US$202) from November because of rising material costs,[26] and as of the beginning of 2011 the Nano costs 140,000 rupees (more than US$3,000).[14]
[edit] Model versions
Tata Nano Europa
At its launch the Nano was available in Indian in three trim levels:[25]
the basic Std priced at 142,000 (US$3,152.4) has no extras the deluxe Cx at 171,000 (US$3,796.2) has air conditioning the luxury Lx at 195,000 (US$4,329) has air conditioning and power windows
[edit] Europa
This export version of the Nano was first shown at the 2009 Geneva Motor Show [27] but has yet to go on sale. Heavily upgraded to meet EU safety and emission standards, the car will have a number of improvements over the standard Nano, including an extended wheelbase, a new 3-cylinder engine, power steering, an anti-lock braking system (ABS) and an improved interior and exterior.[27] The Nano Europa will be more expensive, heavier, and less fuel efficient than the standard Nano with prices said to be around US$6000.[28]
[edit] Export
Export to other developing countries may begin in late 2011, and export versions will probably differ little from those sold on the Indian market.[29]
[edit] Technical specifications
The Nano is a 35 PS (26 kW; 35 hp) car with a two-cylinder 624 cc rear engine.
The car complies with Indian emission standards and can also meet European emission standards as well.[20]
Engine2 cylinder petrol with Bosch multi-point fuel injection (single injector) all aluminium 33 horsepower (25Value Motronic engine management platform from Bosch2 valves per cylinder overhead camshaftCompression ratio: 9.5:1bore × stroke: 73.5 mm (2.9 in) × 73.5 mm (2.9 in)Power: 35 PS (26 kW; 35 hp) @ 5250 rpm [3] Torque: 48 N·m (35 ft·lbf) @ 3000 +/-500 rpm [3]
Layout and TransmissionRear wheel drive4-speed manual transmission
Steeringmechanical rack and pinion w/o servoTurning radius: 4 metres [3]
PerformanceAcceleration: 0-60 km/h (37 mph): 8 seconds[3]
Maximum speed: 105 km/h (65 mph)[3]
Fuel efficiency (overall): 23.6 kilometres per litre (4.24 litres per 100 kilometres (66.6 mpg-imp
Body and dimensionsSeat belt: 4[30]
Trunk capacity: 150 L (5.3 cu ft)[31]
Suspension, Tires & BrakesFront brake: 180 mm drum [3]
Rear brake: 180 mm drum [3] Front track: 1,325 mm (52.2 in)[3]
Rear track: 1,315 mm (51.8 in)[3]
Ground clearance: 180 mm (7.1 in)[3]
Front suspension: McPherson strut with lower A armRear suspension: Independent coil spring12-inch wheels[32]
Part/system [33]
Texspin Clutch BearingsBosch Oxygen sensor, Gasoline injection system (diesel will follow), starter, alternator, brake systemContinental AG Gasoline fuel supply system, fuel level sensorCaparo Inner structural panelsHSI AUTO Static sealing systems (Weather Strips)Delphi Instrument clusterDenso Windshield wiper system (single motor and arm)FAG KugelfischerRear-wheel bearingFederal-Mogul Pistons, Piston rings, Spark plugs, Gaskets, Systems protectionFicosa Rear-view mirrors, interior mirrors, manual and CVT shifters, washer systemFreudenberg Engine sealingGKN DriveshaftsINA Shifting elementsITW Deltar Outside and inside door handlesJohnson ControlsSeatingMahle Camshafts, spin-on oil filters, fuel filters and air cleanersSaint-Gobain GlassTRW Brake systemCeekay Daikin/ValeoClutch setsVibracoustic Engine mountsVisteon Air induction systemZF Friedrichshafen AGChassis components, including tie rodsBehr HVAC for the luxury versionDürr Lean Paint Shop
[edit] Alternative-energy engines
While the Nano is driven by a gasoline-powered engine, several more-radical powerplants have been proposed but not put into production.
[edit] Compressed-air engine
Tata Motors signed an agreement in 2007 with a French firm, Motor Development International, to produce a compressed air car Nano.[34] While the vehicle was supposed to be able to travel
approximately 200 kilometres (120 mi) on US$3 of electricity to compress the air,[35] Tata's Vice President of Engineering Systems confirmed in late 2009 that vehicle range continues to be a problem.[34]
[edit] Diesel
A website has speculated that the Nano might be made available with a diesel engine.[36] Tata motors have not confirmed this but have stated, "As of now there is no Diesel variant of the Nano. The Nano is only available in a Petrol version."[37]
[edit] Electric vehicle
Tata has discussed the possibility of producing an electric version,[38] and while it showcased an electric vehicle Nano at the 2010 Geneva Motor Show,[39] no such car is currently on the market.
If an EV Nano is sold it is expected to be the "world's cheapest electric car",[40] use lithium-ion batteries, and have a range of 80 miles (130 km).[41] A Norwegian electric car specialist, Miljøbil Grenland AS, has been named as a supposed partner in the project.[38]
[edit] Safety concern
A small number of fire incidents involving the Nano were reported.[7] This led Tata to add safety devices to the vehicle,[7] although no recall was initiated and according to Tata, the car is safe.[7] Its safety is relative however, as the Nano has no airbags, passenger-side wing mirror, or crumple zone.
[edit] Effects
The introduction of a cheap, mass market auto such as the Nano is bound to have some unforeseen effects.
[edit] Safer Travel
Nano driving is safer than that of the currently used two-wheelers especially during monsoon, when heavy rains can make traveling difficult on two-wheelers due to wet roads.
[edit] Pollution increase
As the Nano was designed for a population currently using eco-friendly bicycles and motorcycles,[7] environmentalists are concerned by the increase in pollution that would follow a mass motorization in developing countries such as India.[13]
The Nano has lower emissions than the average Volkswagen, which is a much larger car.[13]
[edit] Indian used car market
The Nano is thought to have affected the used car market in India, as some Indians may opt to buy a Nano rather than a used vehicle. The new-car market is also being affected. Sales of new Maruti 800s, the second-cheapest car in India, dropped by 20% and used models by 30% immediately prior to the Nano's introduction.[42]
[edit] Awards 2010 Business Standard Motoring Indian car of the year[43]
2010 Bloomberg UTV-Autocar car of the year[44]
2010 Edison Awards, first place in the transportation category[45]
2010 Good Design Awards, in the category of transportation [46]
[edit] In the media "Small Wonder: The Making of Nano", is a book on creation of Tata Nano
New Car of Bajaj and Nissan
Renault-Nissan-Bajaj's Ultra-Low-Cost car project
Here’s the latest bit of buzz emerging from the Bajaj-Renault-Nissan ULC camp. The Ultra Low Cost developed by this tripartite alliance will reportedly sport a stunningly cheap price tag of INR 1.10 Lakh.
Carlos Ghosn made this statement publicly at Renault-Nissan’s Annual General Meeting on Friday, amidst a stunned audience and here’s what he had to say.
In India, Renault and Nissan are developing an ultra low cost vehicle with the Bajaj group, benefiting from its expertise in the light vehicles and the knowledge of the Indian market. We are aiming for a price of $2,500.
Adding fuel to the fire, Rajiv Bajaj also reaffirmed Mr Ghosn’s pricing views.
Coming from as influential a personality as Mr Ghosn, we have no reason to disbelieve this remarkable piece of development. But, we’re still struggling to comprehend how the Tripartite alliance of Bajaj-Renault-Nissan will manage to price the ULC at such a low end cost. This, even as Tata Motors clearly stated that the second batch of the Tata Nanos will be costlier than the first ones citing raw material and production price hikes.
New Bajaj Small Car
Confounding matters further, it was only recently that Rahul Bajaj, the Chairman of Bajaj Auto, announced the shelving of the ULC project stating that the ULC doesn’t fit in Bajaj Auto’s overall scheme of things.
Meanwhile, If the ULC can really be priced at the levels Carlos Ghosn has talked about, it certainly will require a paradigm shift in the entire production techniques, a-la-Tata Nano. We’re waiting.
It's been a while since we've heard an update on the car coming from the joint venture of Renault-Nissan and Indian manufacturer Bajaj, a competitor to the Tata Nano. Carlos Ghosn, Renault-Nissan's CEO, fills us in with a statement that the ULC (Ultra Low Car) project is alive and well. What news do we learn? First, the 2011 release date has been pushed back to 2012. Second, the car is going to cost $3,000 (compared to the Nano's base price of around $2,000) and will still be available in a version that gets 70 mpg. According to Ghosn, the car will be designed, developed and produced by Bajaj, while Renault-Nissan will provide sales and marketing. We surmise that an export model, with either Nissan or Renault (or maybe Dacia) badges, is more than a possibility.
The small car will be a new level of optimization to a trend which Tata started. The highlights of the car will be low price, low maintenance cost and high fuel mileage. The car is expected to be reach the showrooms by year 2012. This is going to be an interesting segment as no other player has been thinking to enter this segment of Tata Nano. But it seems that eventually the difference between the car segment of 600 cc cars and 800 cc cars will slowly fade and the customers will have more choice by slight
increase in budget. We will keep an eye on it and will keep updating you with all the happenings of ULC car segment.
Renault-Nissan Alliance and Bajaj Auto have signed an agreement to manufacture an ultra low-cost car to be sold in India and other emerging markets.
Renault-Nissan said they would launch the car in India in 2012 along with Bajaj. The car would rival Tata Motor's Nano, the world's cheapest car.
The design, manufacturing and sourcing for the car would be done by Bajaj while Renault-Nissan would handle marketing in India and overseas, the companies said.
India, along with China, is one of the few bright spots for the automobile sector, while recovery in the United States and Europe continues to be unsteady. Global car makers are queuing up to invest in India to tap growth.
Earlier this week, Toyota Motor Corp said it would invest about 9 billion yen ($103 million) to produce engines and transmissions for its compact car Etios in India.
The compact car segment is about 70 per cent of the total passenger car market in India. India's top carmaker Maruti Suzuki is the undisputed leader in the segment with brands such as the best-selling Alto, Swift and Ritz hatchbacks.
General Motors' Beat, Ford's Figo and Volkswagen's Polo hatchback were some of the new launches this year in the compact segment. Toyota's Etios is expected towards the end of the year.
Renault, which had a joint venture with India's Mahindra & Mahindra for the Logan sedan, bailed out from the loss-making venture in April by selling its stake to the partner, and is expected to focus on other projects in India.
Renault-Nissan said they would launch the car in India in 2012 along with Bajaj. The car would rival Tata Motor's Nano, the world's cheapest car.
The design, manufacturing and sourcing for the car would be done by Bajaj while Renault-Nissan would
handle marketing in India and overseas, the companies said.
India, along with China, is one of the few bright spots for the automobile sector, while recovery in the United States and Europe continues to be unsteady. Global car makers are queuing up to invest in India to tap growth.
Earlier this week, Toyota Motor Corp said it would invest about $103 million to produce engines and transmissions for its compact car Etios in India.
The compact car segment is about 70 percent of the total passenger car market in India. India's top carmaker Maruti Suzuki is the undisputed leader in the segment with brands such as the best-selling Alto, Swift and Ritz hatchbacks.
General Motors' Beat, Ford's Figo and Volkswagen's Polo hatchback were some of the new launches this year in the compact segment. Toyota's Etios is expected towards the end of the year.
Renault, which had a joint venture with India's Mahindra & Mahindra for the Logan sedan, bailed out from the loss-making venture in April by selling its stake to the partner, and is expected to focus on other projects in India.
Renault-Nissan-Bajaj Ultra low cost car price released
Finally the trio have decided on the price of their ultra low cost car. It was considered that Renault, Nissan and Bajaj were not able to come up with an agreeable selling price for their ultra low
cost car and because of this, the project was considered to be on hold.
But on Friday, Renault President Carlos Ghosn revealed that they were aiming for a price tag of $2500. When Rajiv Bajaj was contacted today regarding the price of the Ultra Low Cost car, he replied in the affirmative.
The new car would cost around Rs 1.10 lac in India. It is clear that Renault-Nissan-Bajaj want to take on Tata Nano which as of now is the world’s cheapest car with price of Rs 1.23 lac to Rs 1.72 lac.
REVA: The Eco-Friendly Car
REVA, the revolutionary Indian car is by all means an environment friendly car as it runs on Electric power with no emissions and pollution. REVA is a battery run car and has an on-board charger to facilitate easy charging, which can be carried out by plugging into any 15 Amp socket at home or work. REVA, India's first electric car, is the best eco-friendly car ever produced. REVA is fully automatic car and has no clutch and gears. Its small turning radius of 3.5m makes it easy to park and navigate in difficult city traffic conditions. REVA is twice as efficient as a petrol driven car and has an operating cost as low as Rs 0.4 / km. REVA is also a very safe car and has safety features like dent-proof ABS body panels, side-impact beams, a steel space frame and dual-braking system.
The car REVA comes in three variants, REVA Standard, REVA AC and REVA Classe. The latest addition to the REVA range is REVAi which is a small 2-door hatchback measuring 2.6-metre long, 1.3-metre wide and 1.5-metre high. Weighing in at 750 kg, the car can accommodate two adults of average height in the front and two children in the rear. The rear seats fold down to increase cargo space.
Maximum passenger and cargo weight is 227 kilograms.
REVAi is certified by the Automotive Research Association of India (ARAI) and the European Economic Community (EEC), paving the way for the REVAi to gain a foothold in the UK and Europe. The REVA Electric Car Company is the recipient of the SESI-Business Leadership Award (Electric Vehicles) in 2005, the Golden Peacock Innovative Product Award in 2004, the Thomas Alva Edison Award for Innovation in 2002 and the Dr M.S. Swaminathan Award for Environment Protection in 2001.
The REVA runs on eight 6-volt lead acid batteries that create 48 volts, and has an onboard charger to facilitate easy charging by plugging into any 15 Amp socket. Power flows through a 350 ampere motor controller to a DC motor rated at 4.8 kW (6.5 hp) and can handle up to 13.1 kW (17.5 hp). A small turning radius of just 3.5 metres makes the REVA easy to park and best-suited for city commutes. The car has a maximum speed of 80 kmph and a maximum range of approximately 80 km (50 miles) on a full charge. The REVA uses approximately nine units of electricity for a full charge, which works out to an average running cost of about 40 paisa per kilometer. An intelligent 'low battery' warning light and energy gauge allow for easy estimation of driving range. The front features independent McPherson Struts, and the rear has an A-arm with Panhard rod and coil-over shock absorbers. Four-wheel dual circuit hydraulic brakes, with integrated regenerative braking, provide impressive stopping power. REVA requires minimal maintenance because of the minimum number of moving parts.
The REVAi has a quaint appeal to it unlike any other car in the hatchback segment. REVAi's modular design allows easy upgradation of the next generation Electric Vehicle technologies. The body is tall, rising up from a flat windscreen; large wheels ride on a small wheelbase. Features like Climate Control Seat (CCS) and remote controlled AC provide comfort to passengers. Funky interiors incorporate a sweeping dash, thick steering wheel and prominent 'power' switch. Customers have a choice of personalising colour schemes from over 2,000 shades. A remote lever opens the rear hatch without any manual involvement.
Performance and Safety Measures
Reva is run by an electric motor. So it’s obvious, the car has been designed to be an economy vehicle and an eco-friendly vehicle. You can’t normaly equate economy and eco-friendliness with firebreathing performance and in the case of Reva it’s certainly not a correct equation. Reva boosts of a modest pick-up and a modest top speed of 50 kilometers to an hour. Of course, in our kind of traffic, fifty kilometers an hour is not a modest speed at all. In fact that is a foolish speed to have in indisciplined traffic as ours. So Reva’s performance in a sense compel you to be a cautious driver. You can’t wreck this car too bad.
Even if you do wreck it in the front, it has a very well built crumple-zone which absorbs the shock well enough to keep the driver safe from being crushed between his seat and the crumpling bonet. If you crash into a stationary object, like a tree or a light-post, then you’re very likely of coming out unhurt. If you dash against a speeding car, however, God be with you.
If something dashes from the side, it’s a dicy situation. Remember, this car is not only short in length but also very narrow, not too broad. So the door panels are almost of the same thickness everwhere which is very small in itself. But the doors come with a crumple zone of their own.
Fuel Efficiency
This car doesn’t run on any particulate fuel, like petrol or deisel or something like that. It runs on electricity. So it’s mineral-fuel efficiency is infinite.
In one charge, the car goes sixty kilometers. All one know is that Reva owners spend 900 Indian rupees a month on charging their cars if they do it everyday. Once charged, the battery runs down after 48 hours or so, so you’ve to charge it after every two days even if you don’t use it. The car does not charge itself as it runs, so it will shut down after 60.
Frequent speed alteration consumes more battery power. So for an efficient running, it is advised that the driver mantains a consant speed and avoids speeding up to much or breaking too often. So keep at about 30 kilometers to an hour.
All in all
All in all, Reva is a worthwhile buy only if
a) you are a city commuter and your city isn’t the collosal madness called Mumbai or likenesses of it andb) if you aren’t using your car for anything apart from office-to-home and home-to-office.
It’s good, therefore, for housewives who need to use the car for things like dropping children to school and bringing them back, going to the market (the car will make that happen everyday) or going out to kitty parties. The car’ll shut down at the end of this, however.
It’s a good car if your interests lie in within-city short commutes. It’s a heaven-like feeling however to be in this car with one another passenger in crowded places because you can park this biscuit-sized car easily (more easily than others that is) and weave out of jams with that much more ease.
SPECIFICATIONS
Engine and Transmission:Engine Displacement (CC) AC ElecNo Of Cylinders EVNo Of Gears EVPower (PS) 17.68 PSTorque (NM) 53 NmTransmission Electronically controlledKerb Weight 700 kgs.Fuel Type ElectricDrive Type FWDPerformance:Top Speed (KPH) 65(Claimed)Brakes Steering Suspension and Tyres:Brakes Front Drum BrakeBrakes Rear Drum BrakeMinimum Turning Radius 7 MtrTyre Size 145/70 R13Wheel Size 13Exterior Dimensions:Length Width Height 2638/1324/1510Wheelbase(mm) 1710 mmGround Clearance (mm) 150 mm
FEATURES
Interior:Seat Upholstery ( Leather/ Fabric) FabricDual Tone InteriorDoor Trim FabricAnti Glare Inside Rear View Mirror (IRVM)Front and Rear Head RestraintExterior / Exterior Appearance:Body Colored BumpersBody Colored Outside Door Handles
ORVM ManualFront Grill Body colouredAntennaWheels Type (Pressed Steel/ Alloy) SteelComfort and Convenience:ACRear AC DuctsPower SteeringAdjustable Steering (Tilt/ Rake)Power Windows ( Front / Rear )Adjustable Driver Seat ManualAdjustable Front Passenger Seat ManualFront Seat ArmrestRear Seat Center ArmrestFront CupholdersIn Car Entertainment (Audio) Data Not AvailableNo of Speakers Data Not AvailableSteering Mounted Audio ControlSteering Mounted AC controlSteering Mounted Cruise ControlSunroof / MoonroofPuddle Lamps On Front DoorsDoor and Trunk Ajar WarningLow Fuel Warning LampRemote Operated Fuel Tank LidHeated/Cooled SeatsRear Parking SensorsAuto Rain Sensing WipersTachometerDual Trip MeterDigital Fuel IndicatorRear Parcel TraySafety and Security:ABSEBDESPAirbagsCollapsible Steering ColoumAnti Theft System (Immabolizer)Central Locking (Manual / Remote) ManualFog Lamps (Front / Rear )Rear Wash Wiper
Rear DefoggerSeat BeltsPrice:Delhi 3,38,744Bangalore 2,98,131Mumbai 3,56,000Gurgaon 3,38,744Noida 3,38,744
Auto majors lose car market share to smaller firms in 2010-11New Delhi, Apr 10 (PTI) With many players entering the small car segment in India with new models, leading players like Maruti Suzuki, Hyundai Motor and Tata Motors lost their market share in 2010-11 to mainly Ford India and Volkswagen, says SIAM.
According to figures released by the Society of Indian Automobile Manufacturers (SIAM), the country''s car market leader Maruti Suzuki India''s (MSI) market share in the passenger car segment fell to 48.74 per cent in the last fiscal from 50.09 per cent in 2009-10.
MSI''s domestic sales, however, increased to 9,66,447 units from 7,65,533 units in the previous fiscal, SIAM said.
In 2010-11, the overall domestic passenger car sales rose by 29.73 per cent to 19,82,702 units from 15,28,337 units in the previous fiscal.
Hyundai Motor India also saw its market share declining to 18.10 per cent in FY 2011 from 20.61 per cent in the previous year. The company had sold 3,58,904 units in 2010-11 as against 3,14,967 units in the year-ago period, SIAM said.
Likewise, Tata Motors too lost its market share during the said period, falling to 12.92 per cent with sales of 2,56,202 units.
In 2009-10, the company enjoyed 13.18 per cent market share by selling 2,01,399 units.
General Motors India (GMI) and Honda Siel cars India (HSCI) also lost their market share last fiscal. While GMI''s share fell to 4.40 per cent from 4.62 per cent, HSCI''s market share dipped to 2.97 per cent from 4.01 per cent in FY''10.
The biggest gainers in the race of market share in the Indian passenger car segment are Ford and Volkswagen. These two car makers took away other players'' pie riding on their new small cars -- Figo and Polo -- respectively.
Ford''s sales during last fiscal soared to 95,395 units from 34,324 units in the previous financial year. Consequently the market share jumped to 4.81 per cent from 2.25 per cent.
Volkswagen''s market share increased to 2.60 per cent from a mere 0.27 per cent a year ago because of Polo and its sedan version Vento. The car maker sold 51,608 units as against just 4,094 units in 2009-10, SIAM said.
SIAM President Pawan Goenka had said the passenger vehicle segment saw 24 new launches and 40 refreshed versions in 2010-11.
Segmentation of market share of automobile industry in India
Passenger Vehicle: 15.96%Commercial Vehicle: 3.95%
Three wheelers: 3.60%Two wheelers: 76.49%
Cars by Price Range
Under Rs. 3 Lakhs
Maruti 800 , Maruti Alto, Omni Reva
Tata Nano
Rs. 3-5 Lakhs
Ambassador Chevrolet Aveo U-VA , Chevrolet Spark,
Chevrolet Opel Corsa Fiat Palio , Fiesta, Ford Icon Hyundai Santro , Hyundai i10, Hyundai
Getz Maruti Zen , Maruti Wagon R, Maruti
Versa, Maruti Esteem, Maruti Gypsy, Maruti Suzuki A-Star, Maruti Suzuki Zen Estilo, Maruti Suzuki Swift, Maruti Suzuki Ritz , Mahindra Logan
Indigo XL , Indigo Marina, Indigo Manza
Tata Indica , Toyota Qualis, Tata Indigo CS
Rs. 5-10 Lakhs Chevrolet Swing, Chevrolet Aveo, Chevrolet Tavera, Chevrolet Optra Magnum
Fiat Linea , Fiat Adventure, Fiat Grande Punto, Ford Fusion
Hyundai Accent , Hyundai Elantra,
Hyundai i20, Hyundai Verna, Hyundai Sonata Embera, Honda City ZX, Honda Jazz
Maruti Baleno , Maruti Suzuki Sx4, Maruti Suzuki Swift Dzire, Mahindra Scorpio, Mitsubishi Lancer, Mitsubishi Cedia, Mahindra Bolero
Toyota Innova , Tata Sumo Victa, Tata Sumo Grande, Tata Safari
Skoda Fabia
Rs. 10-15 Lakhs
Chevrolet Forester Ford Mondeo & Ford Endeavour, Ford
Focus Honda Civic , Hyundai i30 Skoda Octavia & Combi Toyota Corolla , Toyota Corolla Altis,
Tata Indicruz
Volkswagen Jetta
Rs. 15-30 Lakh
Audi A4 Chevrolet Captiva Chevrolet Cruzes Honda CR-V , Honda CRV 2008, Honda
Civic Hybrid, Honda Accord, Hyundai Santa Fe
Maruti Suzuki Grand Vitara , Mitsubishi Pajero, Mercedes C Class
Skoda Superb Opel Vectra Skoda Laura Toyota Camry , Ford Endeavour Thunder
Plus, Terracan & Tucson, Toyota Fortuner
Volkswagen Beetle Volkswagen Passat Volkswagen Jetta
Rs. 30-90 Lakhs
Audi A6, A8 & Audi TT, AUDI Q7 BMW X5, 5 Series & 7 Series Mitsubishi Montero , Mercedes Benz S-
Class, Mercedes E Class, S Class, SLK, SL & CLS-Class
Porsche Boxster, Cayenne, 911 Carrera & Cayman S
Toyota Prado
Volvo Xc90 , Volvo S80
Above Rs. 1 Crore
AUDI R8 Bentley Arnage, Bentley Continental GT
& Flying Spur, Bentley Azure Maybach
Rolls Royce Phantom
Most Popular New Cars in India by Range
Entry level (Tata Nano)
Economy Pact (Chevrolet Beat)
Compact (Fiat Punto)
Entry level Sedan (Tata Manza)
Compact Sedan (Fiat Linea)
MPV (Maruti Eeco)
SUV (Mahindra Scorpio Hawk)
Mid Size Sedan (Toyota Camry)
Fulll Size Sedan (Audi A8)
Top Line (Jaguar)
Best in resale value (Swift Dzire)
The hybrid in India(SX4)
Team-BHP
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Last edited by GTO : 10th February 2010 at 14:02.
Mid Size CarsA mid size car is referred to as an automobile with a size between that of compact and full size cars.
The price range of mid size cars lies between Rs 3 to 8 lakhs. The mid size cars have the capacity to carry 4 passengers- 2 adults and 2 children.
The credit of manufacturing of these cars goes to companies like- Fiat India, Ford, General Motors, Hindustan Motors, Hyundai motors, Maruti Udyog, San Motors and Tata Motors. While the companies like- Ford, Hyundai, General Motors and Mahindra & Mahindra are yet to launch their models under this segment. This model basically target executive class.
MID SIZE CARS
COMPANY MODEL VARIANT
Hindustan Motors Ambassador Petrol o 1800
ISZ MPFI
Diesel o 1.5 E2
DSLo Classi
c 2000 DSZ
CNG/LPG o 1.5 E2
CNG/LPG
o 1800 ISZ with CNG/LPG
Avigo
Grand
Chevrolet
Chevrolet Beat
Chevrolet Aveo Aveo 1.4 E Aveo 1.4 Aveo 1.4 LS
Aveo 1.6 LT
Chevrolet Aveo U-VA
Aveo U-VA 1.2
Aveo U-VA 1.2 LS
Aveo U-VA 1.2 LT
Chevrolet Spark Spark 1.0 E Spark 1.0 Spark 1.0 LS
Spark 1.0 LT
Fiat India Fiat Linea
Fiat Palio Fiat Diesel o Fiat
Palio 1.9 EL
o Fiat Palio 1.9 ELX
Fiat Petrol o Fiat
Palio 1.2 NV-ELPS
o Fiat Palio 1.2 NV-ELX
Palio Stile 1.1 SL
o Palio Stile 1.1 SLX
o Palio Stile 1.1 SLE
Palio Stile 1.6 Sport
Fiat Petra Fiat Petra Petrol
o 1.6 EL PS
o 1.6 ELX
Fiat Petra Diesel
o Petra 1.9 EL PS
o Petra 1.9 ELX
Fiat Grand Punto
Punto EvoNew Fiat Uno 2011
Ford Motors Ford Ikon Ford Ikon 1.3 Rocam
Ikon 1.4 DuraTorq TDCi
Ford Fiesta Fiesta Duratec 1.6 EXI
Fiesta Duratec 1.6 ZXI
Fiesta Duratec 1.6 SXI
Fiesta 1.6 S
Fiesta Duratorq 1.4 SXI
Fiesta Duratorq 1.4 ZXi
Fiesta Duratorq 1.4 EXi
Honda Motors Honda Jazz
Hyundai Motor Co. Hyundai i20 Era
Hyundai i20 Sportz
Hyundai i10 Hyundai 1.1 iRDE
Hyundai i10 Kappa
Hyundai i20 Hyundai i20 MAGNA
Hyundai i20 ASTA
Hyundai i20 ASTA (O)
Hyundai Accent Eco
Hyundai Accent Accent GLE Accent GLS Accent Viva Accent Viva
CRDi
Accent CRDi
Hyundai Getz Prime Getz Prime 1.1 GLE
Getz Prime 1.1 GVS
Getz Prime
1.3 GLS
Getz Prime 1.3 GLX
Hyundai Elantra Elantra GT Elantra CRDi
Elantra GLS
Hyundai Santro Santro XK Santro XK
(Non AC) Santro XL Santro XO Santro AT
Santro CNG
Hyundai Verna Verna i (Petrol)
Verna Xi (Petrol)
Verna XXi (Petrol)
Verna CRDi VGT
Mahindra & Mahindra Co.
Mahindra Renault Logan
Petrol o GL
1.4o GLE
1.4o GLX
1.4o GLS
1.6
Diesel o DLE
1.5 dcio 1.5
DLX
o DLS 1.5 dci
Maruti Suzuki India Ltd.
New Maruti Suzuki Wagon R Maruti Suzuki Concept R3
Maruti Suzuki Ritz
Maruti Zen Estilo Zen Estilo Lx Zen Estilo Lxi
Zen Estilo Vxi
Maruti WagonR WagonR Lx WagonR Lxi WagonR Vxi WagonR Ax
WagonR Duo
Maruti Versa 5 seater
8 seater ( DX & DX2)
Maruti Esteem Esteem Lx Esteem Lxi
Esteem Vxi
Maruti Baleno Baleno Sedan VXi
Baleno Sedan LXi
Maruti Swift New Swift Swift LXi Swift VXi Swift ZXi Swift
Diesel'Ldi'
Swift Diesel 'Vdi'
Maruti Suzuki Zen Estilo Sports
Maruti Suzuki SX4 Maruti SX4
Vxi
Maruti SX4 Zxi
Maruti A-Star
Swift DZireMaruti RIII Concept
General MotorsOpel Astra
Opel Corsa
Tata Motors Tata Indigo Manza
Tata Indica Tata Indica Vista
Tata Indica V2
o DLS o DLE
Tata Indica V2 Xeta
o GL o GLX o GLG o GLS o GLE
Tata Indica V2 Turbo
o DLS o DLG o DLX
Tata Indica V2 Dicor
o DLS
o DLG
Tata Indigo XL
Tata Indigo Petrol Variants
o Indigo GLS
o Indigo
GLX Diesel
Variants o Indigo
LXo Indigo
LS
Tata Indigo LS Dicor
Tata Indigo LX Dicor
San Motors San Storm 1.2
Volkswagen Volkswagen Polo
MID SIZE CARS AWAITED
MODEL COMPANY
Skoda Auto Cars Skoda Roomster
Tata Indigo Vista Tata Motors Cars
Elegante Tata Motors Cars
Icar Mitsubishi
Infiniti G35 Nissan
Linea Fiat
Maruti Suzuki Splash Maruti Suzuki India Ltd
Rhino Rover MG Rover Group
i20, i40 Hyundai
Top 10 Small Cars in India Under 5 Lakhs
1) Maruti Suzuki Swift
The Swift's launch has been Maruti’s trump card, and since its launch in the country it has totally changed the scenario of the Nation’s car market for some time to come. It is an attractive upgrade for small car owners and the clever pricing makes it fantastic value for money. It is highly desirable, fun to drive, and very cool. The 1.3L engine generates 87 bhp in the petrol version and 75 bhp in the diesel version with estimated fuel economy as 11/13 km/l (city/highway). The cabin is well designed and controls are well laid out which gives the interior a classy look.Swift comes with a 5-speed manual transmission with cable-shift mechanism.
The Maruti Suzuki Swift LXi, VXi and LDi models range from Rs.4,17,000 - 4,78,000 approximately, ex. showroom Mumbai, while the higher end models can go upto almost Rs.6 lakh.
2) Chevrolet Aveo U-VA
The Chevrolet Aveo U-VA is the all-new hatchback that offers excellent comfort and great fuel economy. The cabin provides quite comfort and offers adequate space for passengers and cargo. Jewel type headlamps with full-chrome bezels and a huge
horizontal grille are designed to grab attention. This small car comes in three variants in India - 1.2, 1.2 LS, and 1.2 LT with an option pack. All variants are powered by a 1.2-liter petrol engine that delivers 75 bhp. A 5-speed manual transmission is standard across all variants. Spacious interiors and comfortable seating with easy-to-access controls makes it a user friendly car.
The 1.2, 1.2 LS range from approximately Rs.4,24,000- 4,68,000 ex. showroom Mumbai, while the 1.2LT and 1.2 LT Option pack go up to Rs.5.5 lakh.
3) Hyundai i10
Compact cars being India's favourite, Hyundai has chosen the right place to launch it's i10 model. The wheels pushed out to the corners to maximize interior space. i10 is available in two major choices: iRDE and Kappa. This wide and smart small car steals the hearts of many car enthusiasts with its eye-catching design. The 5-speed manual transmission is standard with a choice of two engines: 1.1L iRDE I4 and 1.2L I4. i10. The car gives an impressive fuel economy of 12/15 km/L (city/highway). It offers a good number of convenience features, upscale interior, and superior technology that no other hatchbacks can offer at an affordable price. It also offers an optional anti-lock braking system for increased safety.
The price starts at Rs 3,41,000 (ex-showroom Mumbai).
4) Tata Indica Vista
Tata entered the car market in 1998 with the launch of the Indica. Earlier this model had some flaws and was notorious for breaking down, until Tata launched an improved version in the form of Indica V2 and the Xeta. Now it comes with an even newer face the Indica Vista. Indica Vista is a more powerful small car from Tata Indica segment with enhanced interiors, improved quality, and better performance is built on a completely new platform. This new model is available in 3 variant in India: Aqua, Aura, Terra, offering a choice of 3 engines : 1.4L TDI (Diesel), 1.2L Safire (Petrol) and 1.3L Quadrajet (Diesel). Versatile and roomy interiors with contemporary styling features like two-tone dash board, two DIN stereo system and the breakthrough central Instrument cluster assures utmost comfort.
The prices for the different variants range from Rs 3,53,000- Rs.4,99,000 (ex-showroom Mumbai).
5) Maruti Suzuki A-star
The global compact car A-star is produced exclusively in India. It's available in 3 variants - LXi, VXi, and ZXi. A low wide grille, large hood, and eye-shaped headlamps add elegance to the car. A spacious cabin with an aero-dash and well integrated audio system are highlights of this global car. The sporty hatchback has a combination of current and futuristic design to leave viewers spellbound.
Ex-Showroom Mumbai Price starts from Rs. 3,48,000 for the LXi to Rs.4,14,000 for the Zxi model
6) Hyundai Getz Prime
The new premium hatchback, Getz Prime, is the inimitable fusion of sophistication, high-performance, appealing style, and incredible comfort. This car is labelled as India’s first true world car that meets global standards in terms of performance and comfort. The Prime comes with a 5-speed manual transmission and an estimated fuel efficiency of 12/15 km/l (city/highway). It is one of the most spacious cars in its segment. A tilt steering ensures easy maneuvering.
The prices start at Rs 3,80,000 (ex-showroom Mumbai).
7) Fiat Palio Stile
The Fiat Palio Stile is a blend of elegance, practicality, comfort, and safety. This car offers a choice of 7 variants in India with 3 engine choices. A refined 5-speed manual transmission is standard. All variants come with redesigned headlamps, bumper, and tail lamps besides a double-foldable rear seat and a rear parcel shelf. The interiors are well crafted with a sporty instrumentation cluster, comfortable seating, and ample storage area.
Prices range approximately from Rs.3,35,000- Rs.4,70,000 (ex. showroom Mumbai)
8) Maruti Suzuki Zen Estilo
The new Zen Estilo hit the roads in India by replacing the decade old Maruti Suzuki Zen with an upscale roomy interior and a powerful engine. The fusion of style and urban chic imbibes an imposing feel with a luxurious fascia. This trendy and smart car is built on a Monoform Aerodynamic design that allows it to cut through air current. Available variants include the LX, LXi, and
VXi. An ergonomic interior is coupled with a highly proficient cooling system, front and rear seat adjustable head restraints, and a front seat back pocket for added comfort.
Prices start at approximately Rs.3,02,000 (Ex-showroom Mumbai).
9) Chevrolet Spark
The Chevrolet Spark is a customized hatchback of the earlier Matiz from GM. The first striking feature in the Spark is its unconventional interior layout with a gracefully designed, clear, and easy-to-read instrument panel placed in the center of the dashboard. Flexible seating options with spacious head and leg room make the drive comfortable. It has four petrol variants in India: 1.0, 1.0PS, 1.0LS, and 1.0LT. This hatchback is powered by a 1.0L S-Tec I-4 engine that generates 63 bhp. A 5-speed manual transmission is standard across all variants. Its striking design, agility, and host of features distinguish the Spark from its rivals. Due to its compact size, it is easy to handle and best suited for city driving.
The starting price tag is from Rs.3,25,000 (ex-showroom Mumbai).
10) Hyundai Santro Xing
Hyundai Santro can be termed among the most popular cars in the country with its appealing look, superior handling, and well-appointed interiors. It is built with an eRLX 'active intelligence' technology engine that delivers impressive power and performance. The Santro Xing is available in nine variants. Santro Xing comes with a 5-speed manual or a 4-speed automatic transmission. A three-spoke power steering wheel with central locking and front power windows was the selling point when Santro was first launched.
The starting price tag is Rs. 2,56,000 and it can go upto Rs.3,97,000 (ex-showroom Mumbai).
Indian auto companies face favourable domestic conditions: a vehicle market growing considerably faster than GDP growth, which itself is very strong; a phase of economic modernization which is bringing easier finance with it; and increasingly favourable consumer behavior, as well as a new round of auto-supportive infrastructure improvements.
However, there are also challenges: growth in India and the rest of Asia is bringing tougher competition at home, and competition for investment is intensifying from emerging producers like China. Indian automakers face the challenge of establishing their brand credentials; global companies will have to work hard to fulfill their profit potential so long as India's physical infrastructure and business environment remains at best only partly rebuilt and reformed. These are the themes of the three propositions on India's domestic challenges that we put to leading automotive executives in this report.
The Indian domestic market will continue to be dominated by small cars
Passenger car sales in India have grown by almost 15 per, cent CAGR over the last five years, with growth concentrated in the small car segment. Will India remain a predominately small car market, or trade up to higher specification medium-sized vehicles?
Indian car buyers' preferences are changing. "A few years ago Indians would never pay for luxury, but now they will," comments Sunil Rekhi of General Motors.
New car registrations have grown from 625,000 in 2001 to over 1.3 million in 2006. The sub-1500 cc or 'mini and compact car' segments account for over 66 per cent of new sales - the Maruti 800 was the best selling car in India for a number of years before ceding the position to another sub-1500 cc car, the Maruti Alto, in 2005. (Figure 17)
Carmakers are investing accordingly: Toyota has announced plans to set up a new small car manufacturing plant by 2010 with an annual capacity of 100,000 units. Hyundai, Tata and Ford have also announced small car manufacturing expansion plans.
"Customers want more quality and they want more comfort," says Suhas Kadlaskar of DaimlerChrysler. "They are even calling for more power - this was something that was unheard of just a couple of years ago." But Kadlaskar believes this trend is seen
primarily in the shift: from two-wheelers to cars, rather than the purchase of larger cars. ''The main trend is that people are migrating from two-wheelers to four-wheelers," he says.
Affordability shapes the Indian passenger car market. Indian lenders are typically willing to advance between three and four times household incomes in car finance loans. That rate of borrowing combined with forecasts of household income from NCAER suggests that it is the small car segment that will continue to dominate the passenger car market, with almost 50 per cent of households being able to afford an A1 or A2 small car by 2009, compared with less than 15 per cent able to afford a mid-sized car. (Figure 17)
Figure 17. Auto Affordability Forecast
Households which can afford a particular car-segment
SegmentPrice (USD
'000')2005 2009
Segment A1 & A2 (Mini & compact)
6.25 - 12.535.06 per
cent48.46 per
cent
Segment A3& A4 (Mid Size & Executive)
12.5 - 30.0 8.9 per cent14.53 per
cent
Segment A5 & A6 (Premier & Luxury)
Over 30.02.43 per
cent4.5 per cent
Source : KPMG International, 2007 The small-car segment will also benefit from recently introduced tax incentives, cutting central excise duty on small cars to 16 per cent (compared to 20 per cent for larger models). But responses to our survey suggest that the majority of auto executives (65.5 per cent) believe it is affordability in terms of household incomes that will ensure that India remains overwhelmingly a small passenger car market in the next five years.
"I believe India will remain a small car market," says a senior executive of Endurance. "Thanks to the small cars being produced by Tata and others there will be 15-20 per cent growth in this market. The medium-size car market will grow but the small car segment will grow a lot faster."
In interviews, companies identified two critical issues for the growth of the small car market:
▪ Affordability & Credit: In Indian terms even small cars are costly - the average small car costs around 12 times average annual disposable income. A K Taneja of Shriram Pistons
believes that affordability will restrict sales growth of larger cars in the foreseeable future: "Small, fuel efficient cars will remain the main market," he says. "It is not only a matter of the cost of
the vehicle in the showroom, it is also the total cost of ownership. But what is changing is that vehicle demand used to be driven by government, by institutions and private companies
- now it is being driven by private, middle-class consumer demand. And for this set of consumers, affordability is the key issue." A senior executive of Endurance says that financing and
taxation will continue to shape the market for larger cars, arguing, "The medium segment is still dominated by company cars, the sort of thing that medium- to high-level managers get. Either companies buy fleets, or they offer employees finance.
And in this segment a lot will depend on whether there are new fringe benefit taxes."
▪ Attitudes: "Indians are savers, they are frugal, they are cost
conscious, and they are very driven by value for money," says AK Taneja of Shriram Pistons. Most companies believe that this means that medium sized cars will remain hard to sell in volume
- but that despite the conservatism of consumers, attitude changes will drive small car sales. “There is a huge social shift
in India," says Shriram Parameswaran of Eaton. "People are coming from rural areas to the cities, two-wheelers are giving
way to four wheelers, and as a result the very small 800-1000 cc car market is going to grow very fast. Plus we are moving to an era of dual incomes, husband and wife both working, and we are also seeing new concerns about two-wheeler safety that support
small car sales." A growing percentage of vehicles in the Indian market will run on alternative fuels
Alternative fuels and the vehicles that use them are now high on the agenda for the global auto industry with new alternative fuel initiatives already in place in Europe, the U.S. and South America. Will India develop as a significant market in this emerging sector?
"We are an agricultural country, with 365 days of sunshine," says AK Taneja of Shriram Pistons. "Biofuels can not only address our emissions and sustainability issues, they also hold immense
promise for the participation and prosperity of the politically important farming sector."
Demand for alternative fuels in the coming period is likely to be determined by the price and availability of different fuel categories, and the enforcement of new emission controls.
Demand pressure is likely to keep the price of conventional fossil fuels relatively high: the Economist Intelligence Unit (EIU) currently forecasts that global petroleum demand will grow at an annual 2.3 per cent over the next five years with most of the demand growth coming from Asia: Asian demand is forecast to grow at 6.1 per cent and Indian demand to grow at 7.2 per cent. The EIU also predicts that crude oil prices will fall moderately over the next five years, predicting an oil price of USD 44 per barrel by 2011. Such a price will increase the likelihood that only the most efficient producers of bio-fuels will find profit opportunities in the medium term. (Figure 18)
At current prices, however, existing alternative fuels offer a very significant price advantage where they are available. KPMG in India estimates that fuel costs for the average Indian passenger car are USD 9.8 cents per mile for conventional gasoline, whereas Liquid Petroleum Gas (LPG) costs USD 5.8 cents per mile and
Compressed Natural Gas (CNG) USD 2.8 cents per mile.
India is currently experimenting with a range of alternative fuels. In both Delhi and Mumbai, CNG is already widely used for buses, taxis and three-wheelers. Some larger gas-powered vehicles run on LPG, although the distribution infrastructure remains embryonic. There are only two cross-country pipelines, both in Northeastern India, while one more is proposed. Some states have introduced gasoline blended with 5 per cent ethanol derived primarily from molasses, and field trials are underway on a 10 per cent ethanol blend. Bio-diesel which can be derived from a wide range of fat-bearing agricultural products (in India the crop of choice is the Jatropha plant) or even industrial waste is also limited to field trials in passenger cars, buses and trains. A very small number of electrically powered vehicles also operate.
Some companies believe that bio-fuels will emerge as a significant sector in the Indian economy, as policymakers grasp their potential for bringing new profitability to agriculture. "There is a big question in India over how farmers can participate in fast economic growth," says AK Taneja of Shriram Pistons. "The answer is bio-fuel."
Regulatory changes in India will also create demand for lower-emission alternative fuels. Under the Indian government's Automotive Fuel Policy, a series of new emission controls known as the Bharat Stage norms - standards modeled on European emission rules - are already being enforced in a rolling program ending in April 2010. The Bharat norms have already resulted in the conversion of all three-wheelers and taxis, in the national capital region (NCR) and Mumbai, to LPG or CNG vehicles; the phased conversion of diesel-based commuter public buses in target cities to CNG and the phasing out of commercial vehicles above 15 years in age.
Based on a survey of auto industry professionals, KPMG in India estimates that of the 14 'select' cities with access to piped fuel gas, approximately 10 per cent of passenger cars (or 680,000 vehicles) will be running on CNG by 2015. Commuter vehicles and light commercial vehicles are likely to be running on LPG and CNG without exception by 2015. As the final Bharat stage IV emission controls are introduced, a likely total of 2.17 million vehicles will be running on gas fuel in the 14 cities.
There is disagreement among companies over how readily consumers will adopt new fuels. Shriram Parameswaram of Eaton
states "Historically India has always been a petrol market. Diesel was always seen as very down market - only recently have you seen a shift to diesel. And the 'right fuel, wrong fuel' mindset is still strong in India." But AK Taneja of Shriram Pistons points out: "Already all the buses and taxis in Delhi run on CNG - this is the largest fleet of buses in the world. This change was something that was readily embraced by the government and the people, sol see no reason not to go further and adopt bio-fuels."
In our survey of executives from Indian and global auto companies a majority (45 per cent) agreed that national distribution infrastructure was the key to developing a mature alternative fuel market. Some 31 per cent also felt that government subsidies towards alternate fuels would be essential during the early development of a national market. (Figure 19)
In interviews companies identified three critical issues for alternative fuel development:
▪ Policy Support: "It depends a lot on government: will they come out with the fiscal policies that are needed to support it?" asks
Suhas Kadlaskar of DaimlerChrysler, commenting on the future
of biofuels. He adds: "There is still a lot work to be done on processing this fuel: you have to be sure you can cultivate a
suitable quality input, and you have to get sufficient yields. As a commercial reality it is at least five years away - we have yet to
convince farmers that there is a profit in it" Sunil Rekhi of General Motors also doubts that new policies to support biofuel development will be in place soon. "Fossil fuel is coming to an end and the whole of mankind needs something to replace it I
am not sure the government is really geared up to deal with this fact"
▪ Marketing: Companies believe that the consumer acceptability
of alternative fuels for private vehicles remains untested. Shriram Parameswaram of Eaton believes that this is a market
that has yet to materialize: "for one thing environmental consciousness is not widespread," he says. "There is a lack of demand, arising out of the reluctance to pay a premium for a
higher cause." ▪ Infrastructure: Tata Motors says that there will be continuing
constraints on the availability of gas fuels. Suhas Kadlaskar of DaimlerChrysler agrees: "To get the CNG infrastructure in place will take years. Today and tomorrow, petrol & diesel will be the
fuels of choice." Replacement of commercial vehicles will boom as older vehicles get scrapped and logistics hubs emerge
Most of India's commercial vehicle fleet is old and inefficient. Will a combination of new legislation and the development of more efficient distribution drive a new cycle of vehicle retirement and replacement?
"This is the need of the hour," says AK Taneja of Shriram Pistons. The commercial vehicle market is dominated by three companies (Tata Motors, Ashok Leyland and Mahindra & Mahindra) which account for nearly 90 per cent of the entire domestic commercial vehicles market Historically, commercial vehicles in India have tended to be short- to medium-haul vehicles, often owned by single-vehicle contractors. This is a result of poor federal infrastructure and an absence of organized retailing. Single vehicle contractors keep their vehicles for longer than larger logistics companies: almost a quarter of the commercial vehicles on India's roads are over 15 years old, while more than 40 per cent are over 10 years old.
"These older vehicles cause more pollution, they are more costly to maintain, and they cause more accidents," argues a senior executive of Endurance Group. "So we have to move to the concept of end of life for vehicles. The realization has come and I think the issue will gain momentum." Conversely, some companies believe that electoral sensitivities will slow progress: "You have to start vehicle retirement with commercial vehicles, but there are a lot of single vehicle owners out there, entirely dependent on their one vehicle," says Rajiv Dube of Tata Motors. "That is why the issue is sensitive." (Figure 20)
However, the commercial vehicle fl
eet is already changing fast Domestic sales of new commercial vehicles grew at 24.3 per cent for the whole segment over the last five years: medium and heavy vehicle sales grew at 23.2 per cent and sales of light commercial vehicles grew at 26.1 per cent (Figure 21). Sales have been driven by economic growth, easier financing, better roads and regulatory developments. In particular, a Supreme Court ruling in November 2005 sharply limited the
permitted loading of commercial vehicles, creating replacement demand.
Growth is also being fuelled by new road building, including 5,800 km Golden Quadrilateral federal highway network that is now nearing completion. New roads and the increasing sophistication of retailing are leading to the emergence of a 'hub-and-spoke' national logistics network. This is likely to increase commercial vehicle demand, especially for vehicles at the larger and smaller ends of the spectrum.
Our survey of Indian and international auto executives revealed that there was almost equally strong support for the propositions that faster vehicle retirement and the emergence of logistics hubs as drivers of commercial vehicle sales. Some 34 per cent of respondents thought that vehicle retirement would create demand; 31 per cent felt that logistics hubs would do so.
"There is a perception change," believes Sunil Rekhi of GM India, who adds: "People used to buy a vehicle for a lifetime. Then they were thinking in terms of five years. Now it is three years. It is already getting harder and harder to run old vehicles. Insurers, for example, are getting very reluctant to insure vehicles that are over 15 years old."
In interviews, companies identified two critical issues for vehicle replacement:
▪ Policy Support: "The industry has been asking policymakers for a retirement policy for old vehicles," says Sunil Rekhi of
General Motors. "The trouble is we are not getting it. Government is warming up to the idea, but as of today there is
nothing actually on the table." Other companies agree that electoral sensitivity will determine policy: "That is why we
think the starting point should be end of life regulations not for private vehicles but for example city bus fleets," says Suhas
Kadlaskar of DaimlerChrysler. "Government understands that this is an area where they can use policy to influence safety and environmental standards. But measures should not be coercive, they should be incentive based." AK Taneja of Shriram Pistons says: "Government is not going to mandate an overnight change [in vehicle retirement policy]," he says. "It will be more like the approach to emissions. First there will be change in Delhi. Then
the next biggest metro cities. Then the mini-metro areas. It is already happening – a truck or bus that is more than ten years
old is not allowed to register or apply in Delhi. And this policy is something that will be gradually extended to other cities,
virtually like a step-by-step vehicle retirement policy." ▪ Road Infrastructure: Prakash Kodlikeri of Kalyani Lemmerz
believes that the next five years will see high commercial vehicle sales growth and renewal of fleets only if there are more improvements in road infrastructure. "Weak infrastructure is a real drag on growth," he says. "But there are huge efforts being
made to improve that infrastructure. The whole program of highway building is delayed by around 1-2 years, but it is
getting completed." Conclusion
India's leading automotive executives are optimistic. That is the overall result of the interviews and surveys conducted for this report: several years of strong domestic growth combined with a growing level of internationalization of the manufacturing economy has given corporate executives high expectations for the near future.
Almost all the companies surveyed expect the above trend growth in the automotive sector to continue, fuelled by rising disposable incomes and increasing consumerism. They also believe that global automakers will continue to allocate a rising proportion of
their foreign direct investment into India, growing auto manufacturing first and later auto engineering and R&D services.
Many companies are aware that their labor cost advantage is beginning to erode as both shop floor and managerial wage costs rise. However, they are optimistic that productivity improvements through low-cost automation and improved management efficiency will compensate for rising direct wage costs.
But Indian companies are also cautious. Their leading concern is the continuing cost imposed by India's relatively poor physical infrastructure, and the slow pace of improvement in road, rail and port facilities. They are also aware that the automotive industry lags behind other sectors such as IT and financial services in management training, reward and retention.
In international business, many companies surveyed speak of the need for more extensive alliances in distribution and marketing, and for more well chosen acquisitions especially in the auto component sector. Above all, Indian companies recognize that to achieve global scale they will need to meet the challenge of building persuasive global brands.
Nevertheless, the overall impression of these discussions is that India's auto sector has passed a critical turning point. The inherent strengths of India's manufacturing economy - an exceptional human resource base, the capacity to deliver high quality engineering products, and the strategic geographical positioning - have been reinforced by a strong domestic economy and a new readiness on the part of global auto manufacturers to make key investments in India.
The opportunity for India's automotive companies to emerge as leading participants in the global industry is clearly present: the challenge is no longer to create the opportunity, but to manage it.
A case of car buyer segementation based on priceA CASE OF CAR BUYER SEGMENTATION BASED ON PRICE
Budget car segment
It is the largest segment of the Indian market, accounting for over 60 percent of the market and expected to maintain a decent growth in volume, but decline in terms of the share of the total market. An entry-level car is what this segment looks for.
Preferred price range: below Rs. 2.2 lakh.
Maruti 800 and Omni are the dominant offers and it is extremely difficult for competitors to enter because of the competitive advantage enjoyed by Maruti in cost/price.
This segment is sometimes referred to as the small car segment. But, in the Indian context, it may be more apt to refer to it as the budget car segment. This segment actually wants a low price car and not necessarily a small car. In developed countries, a small car means a compact maneuverable, city car, with high comfort, and top quality. In India a majority of the small car buyers are not particular to have a top quality compact car, or are that willing to pay the price required for such a car. So, a high priced car, though it may be compact, rules itself out of this segment. And, that is why Volkswagen decided not to enter the Indian market. It knew that its Polo would not fit the segment that is loosely termed as the small car segment in India.
Compact car segment
It lays between the budget car and family car segments. As mentioned earlier, in developed countries, this segment is referred to as the small car segment.
Preferred price range: between 3 lakh and Rs. 4.5 lakh.
Zen, Santro, Matiz, Fiat Uno, and Indica are the main players in the segment. Forms a reasonably sizeable segment of the market, commanding around 15 percent share, but cannot come near the budget car segment in size. It is expected to grow at a steady pace in volume as well as in market share.
Family car segment
Forms a reasonably sizeable segment of the market (around 10 percent) and it is expected to maintain a decent growth rate in the next few years but cannot come near the compact segment
(certainly not the budget segment) in size, for many years to come.
Preferred price range: Rs 4 lakh and Rs. 5 lakh.
An easy to enter segment, relatively crowded already.
Maruti Esteem, Daewoo Cielo, and HM Contessa belong to the segment; and Maruti Esteem is the reference point.
The purchasing capacity of buyers in this segment is somewhat higher than that of the budget and compact car segments. But, this segment too, by and large, prefers a less expensive car. It is only because the cars that re sold in India as ‘budget car’ and ‘compact car’ do not meet their purpose, especially in terms of space, that they turn to ‘the family car’. They however, find world-class cars (the premium cars), which provide space as well as other benefits, ‘high priced’. The ‘family car’ is their compromise choice.
Premium car segment
This segment represents buyers who need a real world-class car and are willing to pay the due price.
Preferred price range: They are flexible in this matter. Around Rs. 6 lakh is okay with them.
This forms a relatively sizeable segment of the market for the present. This is mainly because of pent up demand. Likely to saturate soon; then, the share will start dipping. It is easy to enter relatively. Crowded already and is expected to get even more crowded.Opel Astra, Ford Escort, Fiat Siena, Ford Ikon, Honda City, Mitsubishi lancer, and Audi 1800 belong to the segment.
Super luxury saloon
Buyers in this segment look for a real super premium car.Mercedes Benz E 229, E-250, Rover Montego, Audi 6, BMW, are the players here.
Obviously, this is a tiny segment in the Indian context. To quote BMW, ‘At the moment there is no significant market in India for a car like ours. We will have to develop a market
