10 cars we need in India

1. Mazda RX-8- How many times have you driven a 1300cc naturally aspirated (non turboed or supercharged) engine that makes 280 horses? Especially one that has one numerous car of the year awards in 2600cc category? Yes, that is precisely why we need the RX-8. Also, the stringent regulations and the fact that Mazda is the only Wankel car maker has led to its death in 2012.

PS: Rx-8 is indeed a coupe sports car but comes with rear suicide doors for easy ingress and egress to the rear seats. It also comes with a 300w Bose sound system for the sound connoisseurs.

2. Mazda Mx-5: If aliens ever did provide us with technology for automobile evolution, this would be it. Famously called the 'Miata'. It meets the 4000 mm regulation for tax exemptions and to perfectly fit those jam packed cities. The car is as much fun to drive in the city as a Lamborghini Gallardo or Ferrari Scaglietti would be on the track. Other Japanese makers tried to compete with the Toyota MR2 and Honda S2000 but nothing has yet survived this car's smiley face onslaught. This topless car competes for attention at the beach too.

PS: Even in such tight and nimble clothing, the MX-5 got 4 star safety rating. The latest MX-5 concept 'Superlight' has been so true to the name, it also lacks a windshield.

3. Scion IQ-Before you notice the car which in itself is an eyeball magnet, it's the brand name. Toyota's answer for the North American burger fat bellied, IQ lacking, Beer thirsty youth. The IQ is small by US starndards but suits perfectly in India. I am not handing out Ferrero Rocher balls for guessing that the IQ here stands for Intelligent Quotient. The sub 3 metre car is something I would definitely purchase for my daily office commute over Tata Nano and Maruti Suzuki Alto and Hyundai Eon and also bigger cars like Maruti Suzuki A-Star, Hyundai i10, Chevrolet Beat, Maruti Suzuki WagonR, Nissan Micra and Ford Figo. The car also has numerous customization possibilities which Toyota is exploiting in the Japanese market.

PS: The car has nine airbags, vehicle stability control, traction control, anti-lock brakes, brake assist and electronic brake distribution.

 4. Cadillac SRX-  I am a fan of big cars. I drive Jap cars but still the lure of mammoth cars with mammoth engines wets my mouth. But SUV's are not my forte. But it is hard not to love the SRX with its 3.6 V6 engine and that Cadillac grille shouting 'I am the king of bling-bling'. Crossovers are the latest trend and SRX is the king of that trend whether it be style, features, interiors or plain sex appeal. Finally something Scarlett Johansson can use to look more deadly and American.

PS: GM had to cease production of a smaller engine option due to lack of sales. That's when the 3.6 V6 was launched to accompany the 3.0 naturally aspirated model option.

5. Cadillac CTS: If I have to glance at a BMW 6 series, Audi A5 or Mercedes-Benz E-class coupe, my eyeballs will stick at te CTS. We need the CTS because because we yawn everytime seeing the same old Audis, BMW's and mercedes- Benz's filling the road. Also, we need a car with so much bling it shines as bright as the sun and still manages to look like a thousand bucks.

PS: The CTS Coupe will be Cadillac's first coupe since the Eldorado, which was discontinued in 2002.

6. Dodge Challenger :  I have mentioned this before and I will mention it again and again. I love Mammoth cars with mammoth engines. No wonder Dodge Challenger tops my list of dream cars. But it is also here because its the last of the species of big cars with big engines and because Camaro and Mustang are already too modern for our liking. Also because it can win us a war against the aliens. Give me one and I promise to eradicate the Richshaw infestation in India.

PS: This is the one and only car I dare buy in Furious Fuchsia pink or Plum Crazy Purple.

7. Holden Commodore: I won't repeat how I like Mammoth cars with Mammoth engines coz they look like the Dodge Challenger pictured above and Dodge Charger pictured below. But Indian families are huge and live-in relationships are taboo (I hate this world). But worry not my wedding loving friends. GM has just the right car for you. They have taken a mammoth car, put in a mammoth engine and slapped four doors on it to carry the whole family in comfort and provide you with adrenaline when you sneak out on that wild Saturday night. The car gave sleepless nights to BMW, Audi and Mercedes-Benz in the guise of Pontiac G8 in the USA. Also, with four doors slapped on, the car looks ready to maul you if you try to sneak even a little further on the start line. No cheating!!!

PS: Holden Commodore is actually manufactured in Australia.

 7.  Dodge Charger: Since Dodge Charger ties with Holden Commodore I will have to repeat how I like Mammoth cars with Mammoth engines coz they look like the Dodge Challenger and Pontiac G8 aka Holden Commodore pictured above. You don't need a beer belly, small glasses and a huge mustache to scare children anymore. Park one of these and you are safe for life. My particular favorite is the Super Bee edition complete with the yellow paint and Black stripe and a matching Hemi engine to go with it. Imagine driving a yellow car on a hot summer day in Ahmedabad...

PS: If you see a black Dodge Charger, Slow down. It's that evil cops favouraite car these days.

8. I-miev: We only have one Harvinder Singh to slap all the corrupt politicians. So nothing can stop fuel quality to drop and prices to rise. At a time like this, our only hope is this car. The Mitsubishi I-MIEV. is sexy, small, sexy, electric and sexy. Did I say it looks sexy? The car is already sold in a dozen countries worldwide to keep the purchasing costs down and save the company's Indian operations. Famous editions include the 'Hello Kitty'(no pink for me this time please) and 'i-play'(ipod special edition).

PS:The U.S. version of the 'I-MIEV' has been enlarged to accomodate the fat American youth and the name has been shortened so the company officials do not waste time trying to explain the meaning of the moniker.

9. Citroen DS3: Thanks to our leaders like Sharad Pawar, the roads in our country resemble his face. Most cars due to this reason, are high on maintainence and the ride is bumpy. Enter Citroes DS3, the car that dons French Attire, French Etiquette, French poise and French performance. Citroen has perfected it after years of experience in the rally races. A perfect car for India

PS:  The car is named DS which is French for goddess.

 10. Alfa Romeo Brera: If you think the cars pictured above were beautiful, welcome to automotive porn. Here is a car which will wet every common man's pants with desire. Alfarotica will be inducted in the Oxford Dictionary soon. Alfa Romeo's are expensive to maintain they say. Well, Luxury can never be afffordable, I say. Period...

PS: Croation Car of the year 2006, Autocar best design award 2006, European Automotive design award 2006, Best Sports/Coupe - What Diesel Car?, European Car of the Year 2007 in Japan, 'Best of the show' at Geneva Motor Show 2005, Challenge Bibendum 2002 award, "the Most Fascinating Car" award at the Super Car Rally 2002. Nuff said. Now bow down and pay respect to the goddess of Alfarotica.

Ten Awesome leaders 2011

 1. Sergio Marchionne:  born June 17, 1952, Sergio Marchionne is an international manager best known for his turnaround of the Italian automotive group Fiat and, more recently, for managing the US automotive group Chrysler from bankruptcy to profitability. He is of Italian origin but brought up in Canada. Marchionne currently holds several roles of major importance, including serving as CEO of Fiat S.P.A., Chairman and CEO of Chrysler Group LLC, and Chairman of Fiat Industrial S.P.A., and its principal subsidiary CNH. He has also served two consecutive terms as Chairman of the European Automobile Manufacturers Association. In 2009, he was instrumental in Fiat Group forming a strategic alliance with the ailing US automaker Chrysler, with the support of the US and Canadian governments and trade unions. Less than 2 years later, following its emergence from Chapter 11, Chrysler returned to profitability (Q1 2011) and repaid all government loans (May 2011).  Dodge's car and truck line are now split into two, "Dodge" for cars, minivans and crossovers and "Ram" for light and medium duty trucks and other commercial-use vehicles. Also Chrysler and Lancia cars will share the same platform since both brands do not co-exist in a single geographics location.  'Imported From Detroit' has been touted as the best advertising slogan of the year by various trade pundits.

2. Carlos Ghosn: Carlos Ghosn is a Brazilian-Lebanese-French businessman who is currently the Chairman and CEO Japan-based Nissan and holds the same positions at Paris-based Renault, which together produce more than one in 10 cars worldwide. Ghosn is also Chairman and CEO of the Renault-Nissan Alliance, the strategic partnership overseeing the two companies through a unique cross-shareholding agreement. For orchestrating one of the decade's most aggressive downsizing campaigns and spearheading the turnaround of Nissan from near bankruptcy in the late 1990s, Ghosn earned the nicknames "le cost killer" and "Mr. Fix It.". When he joined the company, Nissan had debt of $20 billion and only three of its 48 models were generating a profit -- and reversing the company's sinking fortunes was considered "mission impossible.". Ghosn promised to resign if the company did not reach profitability by the end of the year, and claimed that Nissan would have no net debt by 2005. He defied Japanese business etiquette, cut 21,000 Nissan jobs (or 14 percent of total workforce), shut the first of five domestic plants, and auctioned off prized assets such as Nissan's aerospace unit. in one year, Nissan's net profit climbed to $2.7 billion from a loss of $6.1 billion in the previous year. Twelve months into his three-year turnaround plan, Ghosn had Nissan back in the black, and within three years it was one of the industry's most profitable auto makers, with operating margins consistently above 9% -- more than twice the industry average.In May 2005, Ghosn was named president and chief executive officer of Renault. When he assumed the CEO roles at both Renault and Nissan, Ghosn became the world's first person to run two companies on the Fortune Global 500 simultaneously. He is also the only person to have a comic book published based on his life.

 3. Anand Mahindra:  Anand Mahindra is the Vice Chairman and Managing Director of one of India’s largest enterprise, Mahindra and Mahindra. Mahindra was a co-promoter of Kotak Mahindra Finance Ltd, which was converted into a bank in 2003. Under Anand Mahindra's leadership, the Mahindra Group has set global ambitions and benchmarks for success. The company has grown rapidly through both acquisitions and greenfield business development with several high-profile mergers in the past few years, including the acquisition of Satyam Computer Services in 2009, Kinetic two-wheelers in 2009, Reva Electric Vehicles in 2010, and Ssangyong Motor Company in 2010. In 2002, the company launched an indigenously developed SUV, the Scorpio, which today has gone global. 'Knight of the Order of Merit' by the President of the French Republic. After the breakup of the Mahindra-Renault Alliance, the company has rejuvenated Logan car sales from 200 per month to more than 2000 units per month in a span of 6 months.

4. Rahul bajaj: It takes a lot to build a slogan people remember even after decades. 'Hamara Bajaj' is one of them, a national treasure of sorts. Rahul Bajaj is the man behind the company that made the slogan famous, Chairman at Bajaj Auto and a member of Parliament. What many people considered taboo was considered an opportunity by Rahul Bajaj during the license raj. The burgeoning demand for scooters was satiated only enough to make sure that the scooters appreciate in value after years. If you had foreign currency, your delivery period was shortened from 10 years to a couple of years for the iconic Bajaj Chetak. While the slump of scooters demand in the days of liberalization and globalization caught the company's profits, with the help of collabration from Kawasaki, Bajaj was quick to enter the motorcycle segment. Today while Hero Moto Corp is the largest two wheeler company in India, Bajaj Auto beats them in Motorcycle market share and even the Japanese lag behind. Today Bajaj Auto makes indegenous motorcycles under the Pulsar and Discover brand names and also sells Kawasaki branded motorcycles in the premium end keep a firm grip on the market share. The advertorials have held the cultural value and are a treat to watch even today.

5. Alan Mulally: In the 2009 recession, The largest car manufacturing base in the world fell apart. Two of the three companies sheltered against bankruptcy. The third company had recorded huge losses the year before, yet survived. The company was Ford Motors. The man responsible for such a feat was none other than Alan Mulally, currently the President and Chief Executive Officer of Ford Motor Company. He began his career with Boeing as an engineer in 1969 and was largely credited with BCA's resurgence against Airbus in the mid-2000s. One of Mulally's first decisions at Ford was to bring back the Taurus Nameplate. He said that he could not understand why the company previously scrapped the Taurus, which had been one of the company's best sellers until losing ground in the late 1990s. Mulally took over "The Way Forward" restructuring plan at Ford to turn-around its massive losses and declining market share. In 2008, amid mounting losses during an economic downturn, Ford announced a proposal on December 2, 2008 to cut Mulally's salary to $1 per year if government loans were received and used by Ford. During hearings for government loans to Ford, he and other industry leaders were criticized for flying to Washington, D.C. in corporate jets. During a subsequent meeting, he traveled from Detroit to Washington by a Ford-built hybrid electric vehicle, while selling all but one of the company's corporate jets. He is also largely credited for achieving a wage rate of $55/hour compared to $76/hour with the UAW (Union of Auto Workers).

6. Martin Winkerkorn: Think Audi, think Volkswagen, think Skoda, think Porsche Automobili, think Lamborghini, think Bentley and Buggati. The thinktank behind this company is Martin Winkerkorn. In 1993 Winterkorn became head of "Group Quality Assurance" at Volkswagen AG, and was appointed General Manager of Volkswagen AG with power of attorney in March 1994. The rest is history. The man responsible for VW group's prominance in the market today. Volkswagen rose to being the thirst largest carmaker taking advantage of the 2008 United States recession which affected big car makers including GM, Chrysler, Ford, Toyota and Honda. VW went on a market expansion spree also signing a controlling agreement with Suzuki especially for the Indian operations and buying Italdesign Guigiaro studios.

7. Chung Moon Koo: At a time when The Germans and Americans were controlling the market and the Japanese were on an offensive, A Korean car maker decided to stand amongst them. Today Hyundai stands as the fifth largest car maker in the world. Chung Mong Koo is much credited with improving the reputation, perception and sales of Hyundai vehicles by shifting the automaker's emphasis from production to quality. Togather with Kia Hyundai has cars are now more known for their quality than their quirky Korean designs. Being one of the latest entrants in the automobile industry, Chung Moon Koo has definitely made the cut taking the company to great heights globally.

8. Roberto Colaninno: Roberto Colaninno is the name that took Piaggio to become the worlds fourth largest two wheeler company. Piaggio's financial position was in a bad shape, but its brand was still well known and its products were featured in many Hollywood films thanks to the Vespa ET4. In 1995, Colaninno had pulled off Europe's then largest-ever hostile takeover when he took control of Telecom Italia SpA. In October 2003, Colaninno made an initial investment of 100 million euros through his holding company Immsi SpA in exchange for just under a third of Piaggio and the mandate to run it. Chief executive Rocco Sabelli redesigned the factory on Japanese principles, and changed it so that every Piaggio scooter could be made on any assembly line.Unlike the turnaround recipe applied at U.S. auto makers, Mr. Colaninno did not fire a single worker. Today Piaggio holds Aprilia, Derby, Laverda(defuct), Gilera, Moto Guzzi and Vespa brands.

9. Brij Mohan Lal Munjal: Brij Mohan Lal Munjal created the worlds largest two wheeler company in Hero Motors. Honda was regarded worldwide as the best automobile maker in the two wheeler market strongly based on the ruggedness in which Hero Motors products are used. The credit goes to Brij Mohan Lal Munjal. Today after the breakup with Honda, the company is still going strong on sales developing new products.

10. Venu Srinivasan: Venu Srinivasan is the Chairman and Managing Director of TVS Motors, and also the Managing Director of Sundaram Clayton Ltd. He has also served as the President of Confederation of Indian Industry (CII) for the year 2009-10. In 1990, when TVS Motors' joint venture partner Suzuki refused to bail the company out after a ravaging strike, Srinivasan decided to deal strictly with the labor unions. He shut the factory down for three months, and forced the unions to relent. Then he overhauled the company operations by upgrading the plant, investing in new technology and implementing quality programs.TVS Motors split with Suzuki in 2001, and started manufacturing on its own. Today TVS is the most famous name on the Indian racing scene and the company is the third largest in market share behind Hero moto Corp and Bajaj Auto.

Ten things Tata should do to turn into a global manufacturer

Tata has long been a major player defining the Indian car market. Currently the second largest car maker including trucks, TATA has worked hard to make the Middle class Indian mobile with the Nano and the Indica. But more than two decades of experience has not helped TATA reach the mantle of a global carmaker apart from the Jaguar Land Rover acquisition. Here are some important changes the company needs to focus on to appeal to a wider audience.

1.  Better Engine Platform Utilization: Over the years Tata has developed a lot of engines in both Petrol and Diesel configuration. To add to the range for competing better in the market Tata has also sought Fiat's help (Fiat India is a 50:50 venture) for holding a wider range of engines and gearboxes.  Including Jaguar, Land Rover and Fiat acquisition Tata at the moment has

Tata Indica/Indigo/XL/Marina Platform
Tata Vista/Manza platform
Tata Nano/Pixel/MagicIris/ Ace Platform
Tata Safari/ Aria/ Grande/ Xenon platform
Tata Sumo/TL platform
Tata Winger platform ( based on Renault Trafic design)
Tata Venture platform
Jaguar XJ
Jaguar XF (Ford platform)
Jaguar XK
Land Rover Defender
Land Rover FreeLander (Ford Platform)
Land Rover Discovery/ Sport platform
Land Rover Evoque paltform
Range Rover Platform
Fiat Linea/ Grande Punto Platform
Fiat Palio Stile platform
Fiat 500 platform

In Total Tata has 18 platforms in its kitty to maintain including the luxury brands and the fiat venture. While major car makers today are cutting down on platforms to increase the margin, Tata has an huge number of platforms at its hand. The company needs to reduce the platforms for a better capacity utilization and economies of scale. Also more car designs such as a coupe and convertible are needed too.

The current generation Sumo/ Spacio has been outdated and is being outsold by competition. Just like VW uses the same platform for VW, Skoda and AUDI vehicles Tata can utilize Land Rover platforms for its Utility vehicles including the Safari, Grande, Aria and other vehicles. The upside for Land Rover will be the economies of scale helping profitability and increased margins while helping Tata minimize the build quality issues, uneven panels and ergonomics and low brand image.  The defender platform is apt for Tata Sumo, Spacio, venture and winger models. The Freelander will make a nice platform for Xenon pickup and Grande. Finally the Safari and Aria can be based on the Discovery Platform. This will help the company erase its biggest weakness which is the public perception. Here the point is not to kill the platform the merge two platforms for a more economic and competitive single platform.

A similar exercise needs to be undertaken by TaTa by where the Vista/ Manza platform needs to be slowly outsourced on the Fiat Linea/ Punto platform . Fiat is having a hard time making sales targets. Sharing more than engine and gearbox will help both the companies just like the Land Rover Tata situation where economies of scale help in profit margins. Tata already has a lot of engines too.

4.4 Diesel V8 (Land Rover)
3.0 Diesel V6 (jaguar/ Land Rover)
3.0 Disel (Sumo, Safari)
2.7 Diesel V6 (Jaguar/ Land Rover)
2.2 Diesel (Land Rover)
2.2 Diesel (Grande, Aria, Safari, Xenon)

2.0 Diesel (winger, Sumo, Safari, TL)
1.4 Diesel Dicor (Venture, Indica, Vista,Marina, Indigo, XL, venture, )
1.3 Multijet (Vista, Manza, Fiat cars)
.6diesel (Iris, nano, Pixel)



.6 petrol (Nano, pixel, Iris))
1.2 petrol (Indica)
1.2 Petrol (Fiat Cars)
1.4 Petrol (Indica, Marina, Indigo, XL)
1.4 petrol (Vista, Manza, Fiat cars)
2.0 Petrol (Land Rover)

2.1 petrol (safari)
3.2 Petrol I6 (Land Rover)
3.5 petrol (Silhoutte)
4.2 Petrol V8 (Jaguar)
5.0 Petrol V8 (Jaguar/ Land Rover)


2. A stronger and sharper brand image: Tata is looked at more like a utilatarian car maker. More individual buyer marketing for Xenon and TL (Thar and Gateway for example)is necessary. The products do not show on the Tata Motors website. Grande MKII also needs to be provided with more features and a better image so that it can fight with Scorpio while the new Safari Merlin replacement can take the fight to the new Scorpios premium car. This will also aid in pulling Aria at a higher price segment. Pulling Grande MKII up the price ladder will also create a space for pitting Winger platinum againast Innova and Xylo and Tavera.

3. An easy to use website: Internet has fast caught on as a medium which provides immense information for car buyers. Tata Motors will not generate any business with a better website but it sure helps in providing a lot of information. Loads of models are not provided and information is scarce too. It also helps to include Merchandise (watches, sunglasses and pen, Mobile phone) to be retailed on the website. The merchandise products can be Tata brands itself such as Titan watches, Fastrack sunglasses etc.

4. Choice of alternative fuels: With the corruption catching up in petrol companies in India, prices have risen explicitly even though quality is still lacking. In such a scenario, buyers are fast looking at the alternatives. Diesel is one field where Tata Motors has a strong presence. But the company needs to catch up with CNG LPG options fast. Brands like Maruti and Chevrolet have provided their complete line ups with CNG and LPG options to cater to the increasing demand for non petrol vehicles.

 Also Mahinra and other international care makers are betting high on electricity as the alternative source. Tata needs to prepare for the onslaught. For those who are not aware Tata Motors has put in enormous R&D for oneCAT and has also succesfully prepared electric Indica and Ace models in the past. Tata has also bought Miljøbil Grenland/Innovasjon which is an alternative energy company for the same. But any updates are yet to be made public by the company. Succesfuly prototypes of Tata Vista and Nano have also be caught on test grounds.

But the most important addition would be of a 650cc two cylinder or a 975cc three cylinder diesel motor for use in Tata Nano and Tata Indica. Chevrolet has succesfully pulled this feat off in the latest Chevrolet Beat Diesel.

 5. Automatic Transmission: Fact: No Indian Hatchback on sale today has a diesel automatic option. Mahindra was quick to develop an Automatic option for its Scorpio diesel. Maruti  and Hyundai have been offering automatic transmission in their A-Star and I-10 hatchbacks. This makes Tata only car maker in the top five domestic car makers to not have an automatic transmission. With increasingly congested traffic situations an Automatic Manza against Honda City/ Verna/ Vento/ Fiesta will help bring customers to the Tata showroom and sell more cars.Not to forget that an Automatic Tata Vista will be the only car in the market in the diesel segment. While Jaguar Land Rover cars have automatic transmissions, Tata can also source automatic transmission from Fiat just like they sourced the manual transmission for Tata Vista.

6. Tata Customization programme: With increasing awareness and competition in the market, carmakers offer more and more models to cater to a wider audience. While custom car packaging has caught on outside the country, this concept is yet to make it mainstream in India. Mahindra for starters has begun providing customer with such custom vehicles. Volkswagen also provided a similar custom programme for its Polo hatchback on launch. I remember how on my purchase HM-Mitsubishi had offered me to provide wth a car in my colour with my choice of upgrades in three weeks. The same confusion was taken care of by the dealer when I wanted my Basic Honda Jazz to be kitted with aluminum wheels over steel wheels. I still missed out on the USB port for the audio. In addition engine upgrade options should also be provided. Tata Motors has a common engine platform for most cars. Selling engine upgrade spares via dealerships will provide Tata with a better brand image through spare availability and let users decide what engine configuration they are interested in. A 1.4 Tata Indica with DOHC head from the XL family can take the fight to Polo and Fabia in the 100bhp hot hatch game.

7. Technology upgrade- Tata cars while growing leaps and bounds in quality still leave a lot to be desired in features across the range. Most car makers today have provided ABS, EBD and Airbags across the range. In comparison Tata has these features only in Safari, Aria, Manza and Vista.Those who have demoed the 'My tata connect technology' will also agree that buyers will be willing to pay for 40K premium even in the most basic of cars like the Tata Nano. Connectivity is the buzz word in the markets today and even a fledgling car maker like Saab (just entered bankruptcy) has shifted to Android UI for its cars. Connectivity and communications integration in cars will lead to much efficient transition when the electric car wave hits the market in the near future.

8. Efficient capacity utilization: Tata motors has found it tough to increase the sales compared to market leaders Maruti and Hyundai. This has also led to plant efficiency falling to below 70%. Tata motors is already exporting to Brazil, Argentina, South Africa, South Korea, Thailand, Spain, Italy, Poland, Turkey and the United Kingdom but its major presence is still found on the Indian subcontinent namely India, Bangladesh, Bhutan, Sri Lanka and Nepal. It is an excellent opportunity to dump the slow moving stock in the international markets for competitive prices joinyl with some strong marketing and promotions. This will lead to Tata building a strong customer base worldwide and keep the plant efficiency above 80-90%.

9. Enter Rally Racing: At a time when Bajaj was selling Pulsar unchecked by competition TVS brought its Apache face to face and has changed the game. Customers are now buying TVS  motors Apache motorcycle as much as the Pulsar. This was made possible by TVS motors racing team which followed the motto 'race on Sunday, sell on Monday.' This is not the first time a car maker has taken to this slogan. Nissan, Ford, BMW, GM, Chrysler, Mitsubishi, Mazda, Subaru and many other car makers have followed the practice in history. It is a known fact that while not every customer buys a car to race, racing pumps adrenaline into everybody's minds. Hence racier looking cars always catch more fancy. A successful sales strategy by HM with the Lancer in the late 1990's had given the company so much leverage, it was one of the best selling cars. Tata need not go outside their stables for more success stories of racing and car selling. When Tata introduced the Tata Silhoutte sports car based on the Indica platform, enthusiasts all around the country thronged discussion forums to know more about it and buy if it was in their reach. Tata needs a strong presence in the INRC and other national rally championships where it stands a better chance to survive considering the cheaper spares and maintainence and stronger build.

10. Annual design refresh: The first Tata Indica appeared in the market on 1998. Indica V2, Vista and Vista V2 have followed in what has been the lifespan of 13 years. In comparison Suzuki's Alto (800/Alto/A-star) has seen more than 20 refreshes in 20 years. Ford's Fiesta has seen 10 refreshes in close to 7 years and Honda Civic has seen 4 refreshes in five years. With the sales spurts Tata has witnessed along with launching a refresh, it is quite evident that such tatics help the company keep the car abreast with competition even though it may only include an upholstry change, grille redesign and headlight changes. To make some buzz or the other in the market has become the necessity since the market is now crowded with more than 25 manufacturers.

HM launches a new vehicle part-II

Continued from http://boyracer.blogspot.com/2011/08/hm-launches-new-vehicle.html

A recent article has caught my eye recently and I will be putting it down here. The reason why this article is important is because the author has taken the pains to provide some correct information which is not readily available.

The car with a made-in-Calcutta tag is going retro to stay relevant in the age of sleeker, stronger and speedier.

A team of 30 engineers is racing against time at Hindustan Motors’s new R&D centre in Uttarpara to rebuild the Ambassador into a city slicker with fashionably retro styling and a peppier engine under the bonnet.

Already late by a year, the retro Ambassador will finally hit the road in its hatchback and sedan versions next August. “We are going to relaunch the Ambassador on a new platform, and with a lot of technical changes, in the second quarter of 2012,” Prakash Jha, the managing director of Hindustan Motors, confirmed to Metro.

The Amby revamp project had been outsourced to the Pune-based Onio Design Pvt Ltd, which did the initial design and research for the retro car. “We have since taken over the project and have been working on it since last February,” said Sandhya Pande, head, Vehicle Strategies & Development. 

The new Ambassador will retain the monocoque platform that gave the vehicle its roominess. “We will also maintain its heritage look and iconic features,” Pande said. 

What will change are the engine, transmission and suspension sytems. The Ambassador will have a peppier engine of 1.5 litres and 1.8 litres respectively for the hatchback and sedan. While the company is due to launch a BS IV-compliant petrol engine for the current Ambassador by the end of this fiscal, the new Ambassador will have a CrDi engine (diesel motor) that is being sourced from Europe. 

The hatchback, the prototype of which is ready for tests, will be less than four metres in length to make it eligible for excise cuts. It is likely to be priced between Rs 3.5 and Rs 4 lakh, a company spokesman said. 

The entry-level sedan will offer C-segment luxury features like leather seats, a new retro-looking dashboard, Bluetooth and other gizmos. Safety features like ABS (anti-lock braking system) and EBD (electronic brake distribution) will be optional. Coming to the other car based on the new Ambassador, the retro Ambassador sedan will compete with the current crop of C-segment sedans with the 1.5 Liter CRDI diesel engine and the 1.8 Liter BS4 petrol engines powering it. While the common rail turbo diesel engine is being developed from scratch, we hope that the 1.8 Liter Isuzu petrol unit gets more than just a BS4 certification compliance, as it isn’t exactly known for its frugalness, one factor which is the need of the hour in India. The C-Segment Ambassador sedan will have a host of new features like ABS, EBD and leather seats to add to the luxury quotient.

“The Ambassador is known for its product life cycle, safety and robustness. When the state government was phasing out commercial vehicles 15 years and older, we had 20-year-old taxis on the road. Tell me, which vehicle has such a long running life?” demanded managing director Jha.

The current model of the Ambassador is based on the 1950s Morris Oxford III. The UK-based Morris Motor Company, of course, discontinued the model about 50 years ago. 

Hindustan Motors has often been accused of being reluctant to adapt to newer technologies. Automobile designer Dilip Chhabria, who created the Rs 4.4-crore Amberoid that was inspired by the Ambassador, said: “It is an uphill task for the company (to revive the Amby). Apart from some very timid efforts, they haven’t done anything to it for decades. Being an icon is what has powered Amby sales since 1950s. I believe the company should treat it the way Porsche has treated the 911 and BMW has treated the Mini.” 

The Ambassador sold 8800 units in 2009-10, but and the figure dwindled to 6,700 units in 2010-11. The retro Amby is, therefore, Hindustan Motors’s last-ditch effort to revive this iconic passenger car that ruled the roads through the sixties and seventies till the Maruti 800 changed the way people drove in India.

http://www.telegraphindia.com/1110811/jsp/calcutta/story_14357767.jsp
By- Anasuya Basu

HM Launches a new vehicle

HM has just lauched the Veer. It reminds me of HP Veer. Apart from the sealed fate both do not have much in common.

HM has recently reported to BIFR as reported by me here. http://boyracer.blogspot.com/2010/05/hindustan-motors-reports-to-bifr-as.html Since then, the Managing Director resigned and company got in Mr. Manoj Jha as replacement.

The rein holder definitely wanted to make some noise and HM announced an Ambassador Redesign. Rumours were spread that HM was getting help from Studios in Italy. Fact was HM only visited a domestic company named 'Onio' designs.

After months of wait for HM supporters HM has finally launched the HM Veer. The sad part is Veer looks nothing more than a redesigned Hindustan Porter

It shouldn't be much of surprise how HM is moving towards commercial vehicles segment with the launch of HM Veer and Shifeng sourced Winner. But The sad part is the ill developed product. Mahindra and Tata both have succesfully capture the single cab pickup and double cab pickup markets with vehicles like the Tata Xenon, Tata TL4x4, Mahinra Getaway and Mahindra Camper. These vehicles also had a limited niche market appeal. Sadly, HM Veer falls in the no mans land.

With a focus on the commercial vehicle segment, ailing auto maker Hindustan Motors (HM) is expecting a revival of fortune in another three years' time, a top company official said on Monday. The vehicle priced at 3.3 lakh (ex showroom Kolkata) is built on the Ambassador platform of the company's Uttarpara facility in West Bengal.“We have honoured our commitment by launching Veer. Four new vehicles will also be launched this year. These will come both from our Uttarpara and Chennai plants,” he said.

It was speculated that HM might launch a sub 4 metre sedan/hatch aka the Verito or Indigo CS. But Hindustan Motors has instead decided to go for a commercial passenger segment with the next product being a 7-9 seater Van again based on the Ambassador.

The company sold 10000 units of the Ambassador last fiscal and with the launch of the variant of the same platform it is hoping to sell 50000 units. Sadly, for enthusiasts, the company does not have plans to relaunch the Contessa or upgrade the Ambassador platform to compete in the retail customer segment. Neither is there a cash strapped plan to build a seventh generation lancer derived Hatchback to compete with the Toyota Etios/Liva and Mahindra Verito. The company has also lacked the vision to study how Lincoln Town car and Austin LT cabs kept the companies alive while they built on their brands using newer platforms.

 Priced at 330000 INR, the vehicle retains the same engines used on the Ambassador.

LML is back and it has a plan.

LML was once a pioneer in the scooter market in India. An over zealous growth plan gone horribly wrong and employee strikes pulled the company down. The Singhania's were looking for a lifeline for the company while diversifying into to other businesses when Credit Suisse stepped in with fresh capital. This was about 6 years ago. So what has LML been up to? the reply is..... A lot!!

My first motorcycle was an LML Adreno. The semi fairing look stole my heart and it was extremely comfortable to drive. The handling was better than Hero CBZ and Bajaj Pulsar. But the extra weight and smaller engine did the bike in. It's Cousin the 'Energy' fared slightly better but met with a similar fate.

But my tryst with LML has continued in the form of the LML Scooter that my friend owns. The story is same nationwide since LML was the only other scooter maker apart from Bajaj. During the Bajaj monopoly days when their scooters were only available for Forex currencies, LML broke the mould. A bigger, better and stronger scooter.  It was again the scooters that saved LML six years ago after being declared sick by BIFR (Board of Industrial and Financial Restructuring) which is an equivalent of Bankruptcy. The company began operations by exporting scooters to Europe, Africa and Middle East as a retro and fun alternative. The bank account saw a jump and the company decided to stick to scooters even when the Kanpur based firm re-entered India.

The company is still in red and bleeding millions but the capital has grown and sales have increased year over year. The old scooter has been smacked with chrome, bigger alloy wheels, electric start and disc brakes. Voila!! you have a successful recipe. Today LML has the only geared scooter in the market with a promising Fuel Efficiency figure enough to pull customers into the showroom.  The company is also planning a similar smacking on their mildly successful 'Freedom' motorcycle targeted at the 110cc mass market. A 125cc engine is also rumoured also to power a gearless scooter. The only gearless scooter LML made was the Trendy which again had bombed in the market. The company is seeking to infuse fresh capital either via private equity route or through dilution of equity stake in order to fund development of new products.

Besides,LML has caught the nerve of the customers who use geared scooters. Most scooters are used as robust but fuel efficient goods haulers. Keeping this need in mind LML is launching a 200cc scooter in the coming two months priced at 47000.  It will be the same NV 150cc scooter now on sale in India with a bigger engine. This will be an important launch since Honda Activa's and Dio's have not been able to withstand the heavyduty use and the Eterno did not click for Honda. The 200cc four stroke engine mated to a four speed hand shift gearbox generates 11.5 Bhp and 14.5 Nm of torque. LML claims a mileage of 50 KMPL for this scooter but ARAI figures are yet to be released.

The downside of the company's plans is that the dealer penetration has only firmed up in North India around their Kanpur factories. The sales only cover Delhi, UP, Punjab and Haryana. But on the upside, the new scooters have received rave reviews globally for their build quality. The Select 4 features a 150cc four stroke engine producing 8.6 Bhp of peak power at 6200 rpm and 11.3 Nm of peak torque at 4250 rpm. The engine is mated to a cable shift, hand operated 4 speed manual transmission. The kick start version will cost INR 47, 140 while the electric start version will cost INR 50, 948, both prices ex-showroom, New Delhi. A 150cc motorcycle is planned for later part of 2012 rumoured to be based on the mildly successful LML Beamer. Hopefully LML can still tie-up with Daelim looking at the success of Hyosung Garware tie-up.

India- the new Chopper wars capital

Want to Buy a new motorcycle in India? Looking at a cruiser/ chopper? It is not the best time to buy one. Why? Read on.

Harley Davidson has been the icon of American motorcycling community since the time of inception. Harley has made inroads into the hearts of enthusiasts via an excellent marketing strategy and sale of more t-shirts than some t-shirt brands itself. 'Indian' on the other hand was the largest motorcycle manufacturer in the world when the Japanese wheels were not even born. Polaris saw the opportunity and entered the American motorcycle market with their Victory motorcycles at a time when Harley Davidson was facing quality and legal issues. What, you may think has this got to do with purchasing your motorcycle in India? Well, They all are coming to a dealership near you by 2012.

It certainly helps when Bollywood Icon Amitabh Bachhan says he is buying a Harley Davidson. A publicity stunt unmatched by any other (I have to disagree since I am a fan of Royal Enfield 'Leave Home' commercials.)


Garware motors also wants a pie of this market with the launch of the ST7, but what this Hyosung / Garware product doesn't have is legacy and appeal that a Harley Davidson, Indian, Victory or Royal Enfield has.

Royal Enfield was primarily a British icon. The bullet is reminiscent of the the pre-war times. Their ammunition business history find hint in their readapted tagline "Made like a gun, goes like a bullet" with the launch of their classic models. The company dissolved in 1971 but the Indian arm bought rights in 1995 and continued making the motorcycles. After Mr. Siddharth Lal was given the reins by Eicher India to put the company back into black, Royal Enfield has grown quite respectfully. Today Royal Enfield also has a presence in USA, Canada, UK, Germany, Middle East and other locations via signature dealerships.

The story goes a full circle now that Harley Davidson has entered India. One might not realize this to be an important step since Harley has been present in many other countries too. I wouldn't go on about how India is the fastest growing economy and it is a world superpower blah! blah! blah!. Harley-Davidson is here on an agenda. Looking at the success of Royal Enfield, they have decided to call India home. This plan wasn't made in a day but neither was it made in a decade. It all began when the Milwaukee, Wisconsin based company announced their 2009 annual results. The company was bleeding enough to dissatisfy shareholders and not last another year in all probability. Their superbike ambitions had gone horribly wrong with the purchase of MV Agusta. The American economy jumping into the well was also a major reason. The company cut off its Buell street motorcycle arm. MV Agusta was again back into Italian hands as Harley sold it off for peanuts.

Polaris owned Victory also was coming off strong since the parent company had heavy pockets. Harley's outdated designs were replaced by Victory's new flashy styles. Another big shock came in the form of the return of the world's first largest motorcycle maker 'Indian' based in massachusets.  Polaris made a big dent in the media again when it announced buying 'Indian Motorcycle INC.'from UK based Stellican LLC. Polaris was definitely out to cause damage to Harley Davidson. How victory and Indian are positioned by Polaris is yet to be seen.

According to interbrand, the value of the Harley-Davidson brand fell by 43% to $4.34 billion in 2009. On April 29, 2010, Harley-Davidson stated that they must cut $54 million in manufacturing costs from its production facilities in Wisconsin, and that they would explore alternative U.S. sites to accomplish this. The announcement came in the wake of a massive company-wide restructuring, which began in early 2009 and involved the closing of two factories, one distribution center, and the planned elimination of nearly 25% of its total workforce (around 3,500 employees). The company announced on September 14, 2010 that it would remain in Wisconsin. But with growing cut-throat competition, Harley has looked east and decided to call India their home. The company launched 12 models simultaneously showing how serious they are with this market. But the real agenda is turning India into an Export hub. A similar story of how Royal Enfield transitioned to India.

This is definitely a smart move by  Harley Davidson. The lower cost of manufacturing will lead to the company increasing their profit margins and reducing their retails prices denting the competition. But, Polaris industries being a bigger corporation reacted immidiately by announcing their entry into India by 2012. Definitely an Auto Expo debut then? Harley-Davidson has been smart enough to chalk out a two-throng plan here. Assuming how Polaris will react, Harley-Davidson has also setup a plan in Brazil. But it is the Indian plant that has helped them price the Superlow 883 model at 5.5 lacs, the cheapest Harley todate. This is keeping in line with Victory's cheapest model which is priced in the U.S. equivalent of 5.68 lacs.

Unlike Harley Davidson, Royal Enfield is more of a corporate arm of Eicher India similar to What Victory and now Indian are for Polaris Industries. The head team of Royal Enfield did hit back into the market last year with a retro design (first in 5 years). The company also revamped its old long-stroke single 350cc engine alongside the launch of the new 500cc engine. The bikes got proper disc brakes and button start to keep in business. While the top of the line Classic 500 model sells at a much lower price tag than the 883cc Harley Davidson, Royal Enfield needs to introduce bigger engines fast if it needs to have a bigger share of the market pie. It is safe to say that the company is in a safe position with a lower price tag (150000 INR against 550000 INR) atleast for now. But looking at the onslaught of other makers, It would be wise on Eicher to hit hard while the iron is hot.

While Royal Enfield has generally enjoyed a cult status in India in the absence of any other major cruiser motorcycles, the owners have had to live with Quality niggles. Also Royal Enfield's major chunk of revenues have come from the Indian Armed forces.  The company has but been smart enough to interact with the owners and fan clubs in improving the quality and technology to build a stronger foundation. It would be safe to say that bike owners have provided Royal Enfield with a status similar to what Harley Davidson has enjoyed in the United States. But unlike Harley Davidson, Royal Enfield doesn't have a prominent and cemented sales network apart from the handful of dealers here and there.

Harley Davidson on the other hand is coming of with experience in rock music tours and sale of merchandise which the competition sorely lacks. It shouldn;t come of as a surprise if Royal Enfield languishes in their sales targets while Harley climbs the ladder steadily. Polaris is yet to enter the cut-throat market but the corporate marketers need to be better prepared to make inroads against to historic icons. Victory and Indian Motorcycle's strength lies in the big bore engines but at the same time the company lacks a small capacity engine. Unlike Royal Enfield which lacks a big capacity engine. A 600-800cc engine is rumoured to be in development at UCE, the company's engine partners.  Harley Davidson is in the best situation with a larger engine range.

It remains to be seen if Polaris decided to play a dual brand strategy largely played in the car playing arena. Toyota for e.g. has Lexus and Scion, Honda has Acura, Ford has Lincoln, Gm has GMC, Chevrolet, Buick and Cadillac. Polaris may employ a similar strategy to take on both the low-end and high end or stock form and custom form of the cruiser market. Also, with the history and brand of 'Indian' (remember Burt Munro from Down under???) Polaris is now stronger than before to take the competitors on a global scale. Eicher just needs to pace up a little if it needs to stay in the race against Harley Davidson and Victory- Indian onslaught. Whatever the outcome maybe, the winner will be the Indian customer.