Thursday 4 October, 2007

First Rover, now a loner...


Tata is at it again. After sending shock waves through the industry on their proposal for acquiring Jaguar and Land Rover, they are now planning on relaunching the Indica in the UK market. Tata, a huge conglomerate, has stamped themselves in the the minds of the Englishmen after the acquistion of Corus. Of course, this will definitely help boost brand value. After a failed stint in 2003 to sell the Indica through Rover, the think tank has been reconsidering the idea, but this time themselves. Rover, which was on the verge of bankruptcy was trying to sell the Indica at a premium of 6-8.5K pounds per car, hoping it would help turn around their fortunes. However, the plan bombed and with that so did the Indica leave the UK too.

However, reports from back then suggested that the car was probably overpriced by around a 1000 quid. Tata is now designing the next-gen Indica, the X3, the first major revamp. This, sould be a significantly better product, testing is currently being carried out with 1.4 litre dicor as well as Fiat-sourced 1.3 litre mulitjet diesel engines, the same unit doing duty on the Suzuki Swift. The Indica's strongest point in India has simply been the economy of diesel and space(read sedan-sized interiors). The new gen Indica I expect, will be a good contemporary looking product - as was the first generation car - with great space again and hopefully a big jump in quality. And when I say quality, it's an all-encompassing term including build quality, reliability and 'attention to detail', a few factors on which the Indica was a bit weak. The UK customer will not be as forgiving. Tata you listening?

The only other point of consideration is, if Tata does bag Land Rover and Jaguar, Tata will have much more on stake. They will have to - again, have to - ensure that the Indica succeeds and ensure that people would be able to rely on Tata selling cars. For if they don't, I don't know how many of them would be game to buy an English brand from an Indian company that can't make cars themselves. Now Tata, will you just go ahead and do it!!!

Wednesday 3 October, 2007

Harley's 'n Mangoes...sure you didn't think you would hear it together

There is a lot of ado over the Harley and mango deal. For the late starters, India is relaxing pollution norms for Harleys, so they can be Euro 3 compliant as compared to the standard Euro 4. For the now thirsty-and-bored-of-waiting-bikers, it means we'll finally get to set our rears on a Harley, if - and that's a big 'if' in the largest and wildest font you can find - you can afford to buy one. I wonder if it's a good thing, selling our mangoes for American cult machines.

The argument against such an arrangement is that, India would be selling its mangoes(a food source), which has a sizable chunk of it's population under poverty. My question here, does India have a mango deficit? Googling Harleys and mangoes(a match made in heaven you said?), I found here that we can export 8,000-10,000 tons mangoes a year as of now, as said by the Chairman of Agriculture and Processed food products Export Development Authority, India. And this would be at around $36/dozen, quite a sum. This in front of our total annual production figures of 14 million tons, looks like pocket change almost. A basic fact, buying power needs to be created in the first place to create demand. So for those who think this deal will make our country more impoverished, I doubt it, at the worst it would make a few farmers richer and give them incentive to produce even more. If the export of mangoes is kept to a controllable sum, then the government can ensure that domestic prices will stay in control.

And is pollution a problem? Hell yeah! But come to think of it, these are bikes which would at best sell in double figures now. I would be more worried by all the 1L cars that would be puttering around our roads in the future. The fact of the matter is, we are talking about some real small numbers here. A few bikes, a few mangoes, but that marque Harley Davidson is always known to create quite a stir isn't it?

Saturday 3 March, 2007

Spyke it up!

Exotic wheels, chrome exhausts, 400 horses and you drooling. Spyker. Resurrected in 1999, the marque shares only the name with the original that shut shop in the 1920's which is credited with making the first ever four-wheel drive racer. And now they plop Audi V8s and W12s into some spanked out bonnets. But just why am I talking about Spyker?

That's because they are heading our way! The V8 powered C8 Spyder and Laviolette will get to scrape our pothole splattered holy land first, after which probably even the D12 Peking-to-Paris, which looks like they just stretched a C8 on photoshop. And before I forget, their cars look a touch quirky with a few chrome touches and overly contoured surfaces, those side-view mirrors looking like they were plucked of the bonnet of some whackoly modded Scorpio. Hopefully the detailing will loook better in the flesh. But it sure does have a neat logo on the bonnet, that propeller dating back to the fact that Spyker made planes preceding World War One.

Check this out. The interesting bit is that they are planning on an engineering design centre! Surprising it seems at first to see a supercar manufacturer extract engineering services in a country whose market is just starting to mature, but on the component level it probably makes sense. You should be able to design a mounting bracket irrespective of the power pumped out by the engine, that’s straight engineering right...well almost! So it's another one to the list of R&D centres setting shop here. Dutch origin, German heart and designed in India. And were you talking about globalization?

The one problem that Spyker might face is that they are not as popular a brand as say Lamborghini or Porsche, which of course would be of prime importance for a buyer in this segment, for a car especially like this one is also a status symbol. Hopefully, their F1 foray will help build them a better brand image.

For the whole Spyker product line-up, click here.....

Tuesday 27 February, 2007

And just as I was talking about it in my first post, its confirmed. This is going to be a huge bonus for Tamil Nadu, what with the trio making the single biggest manufacturing facility in the country...

Saturday 24 February, 2007

The Guru on the Bullet

I came across this article a long time ago, now I would guess its probably almost 6 years. And I didn’t really understand it as much as the author would have wanted the reader to at that time, but for some reason that article stuck in my head, the reason I think being that I loved the bullet. If you are a biker, check out this article. If you are a bulleteer, you would have read it. And if you still have not, please go ahead with the ritual. Read 'N enjoy.

Friday 23 February, 2007

Bond, a Cat & a Swede...




You recently saw Casino Royale and found yourself walking out of the theatre salivating on Bond's women and his equally mesmerising drive, the DBS. We love to crib at the state of our industry which of course is now one of the most important in the world. So our hunger is sated with a three-pronged attack, Aston Martin, Jaguar and Volvo. That just made a lump in your throat.
Yes it's true, Aston will come in with DC's jewel the V8 Vantage, the DB9 and the Vanquish. Volvo with the S80 and the XC90 and Jaguar with probably it's S-type and the XKR. There may not be enough to choose from for the common man but there sure as hell is a barrage of models out there for the billionares to get confused enough to scurry away from dealerships.
Volvo's S80 will be entering a segment which Mercedes has made their own and the Beemers and Audis are trying to cut themselves a slice of the pie, it's a Swede trying to spoil an all German affair. Volvo has always been known for making some of the safest cars on the road but the S80 might feel a touch insecure in this segment. It's crowded, Mercedes, BMW and Audi have already bought space that the S80 wants to enter. And the XC90, well...truth be told, they look a touch bland. And Volvo is probably not the most desirable brand out there where the three-pointed stars rule the roost. The point is, what makes a Volvo so unique to buy one over the above mentioned brands? Ya ya armoured like a tank, but the Germans engineer them pretty dam well too. And I don't know if the Volvo's or more specifically if the S80 will come with that 4.4L Yamaha-derived V8 and it might not be competetively priced if it does. But here is to wishing all the best to Volvo.
Jaguar. Now thats a bit more exciting. That XKR, a bit of a quirky front end I personally feel but still one hell of an awe-inspiring design no doubt. Extremely fresh to look at, now if only that front could have been made a touch more catish. Callum's design sees those front lights tapered in the wrong direction probably. Makes it look a touch timid unlike the pretty aggressive outgoing XK, now that was really like the animal they call themselves. But I sure as hell would love to own a car that looks the way it does and moves the way it will with a 420 hp V8 under that feline hood.
But don't bother when Aston Martin is in the picture. For the Bond lovers, nothing matches up to Bond. But for me it's not about Bond, for me Aston Martin says it all. It's the type of car I would like to keep in my living room. Extremely romantic, class personified is Aston, it's in a league of it's own and extremely unique in identity. I remember seeing the DB7 for the first time, I mean in print. And what a sight. At that time, it definitley was one of the top few of my most-beautiful-cars-in-the-world list. The DB's and the Vanquish are pure Aston. That V8 Vantage probably looks a touch arrogant though, an Aston does not need to be. Astons can carry themselves on pure class with hardly an eye to match it. And just check out the interiors. I don't know how many animals they kill for it, but they look killer for sure. Aston Martin - luxury and performance never came in a better package.
So if there is anything to complain about now, it's for the sellers. Now that we have brought the cars here, I hope they get the buyers. Because I am just going to be looking. And I am not too sure how many people cash out in crores or it's multiples for buying a car. So who is going to buy me one?

Wednesday 7 February, 2007

It takes three to tango...

Renault, Nissan and Mahindra. The trio have been in the news for a while now & deserve to be in the limelight more than Shilpa Shetty for her escapades in a television show. For 8,00,000 is not a small number, not a bit when we are talking cars and not money.

'SHIFT_the future'. And Nissan has been shifting quite a few gears at that. Old news now, janata-carrier Mahindra froze a deal with Renault for rolling out 50,000 cars per annum from it's Nasik plant, which is expected in a few months time. But meanwhile, fickle-minded Nissan has been juggling it's options, first tying up with trusted partner Suzuki with which they already have experience making cars abroad, thinking of it's own 2,00,000/annum plant and finally going the straight-forward route by joining Mahindra-Renault. But there is a twist in the tale, Nissan will still manufacture 50,000 cars with Suzuki for export. And I said straight-forward, because Renault has a 44.4% stake in Nissan, the latter being a 15% stake-holder in Renault.

Nearly 11 lakh cars were sold in India during 2005-06. So when the tripartite alliance announced 8 lakh cars, even though it will take a few years for realisation, it definitely had everybodys antennas up and pinging for information. One thing we can be sure off - with a plant planned for 8 lakh cars, the trio would have a 'volumes' advantage while procuring parts which could be sourced through a common supplier base. More so, it would open up a plethora of opportunities such as export of parts, standardisation, using common dealer networks, supply chains etc. which would lead to further cost savings. Eventually, it would mean straight benefits to the bottomline.

Say Nissan and the first word that strikes the auto buff's head is 'Skyline'. But sorry, I think Nissan's thinking small cars. Loads of them, though they have not released a clear outline of their plans yet, but exports is a big possibility. They have made a slow start with the X-Trail selling about 200 cars last year, which has given them precious time to evaluate the market from close quarters. One rumour floating around though, is that they may for the first time design a car ground-up with Renault, a small car specially for the Indian market. Of course, the Indian market is that important. And entering at a phase when market-growth is high, it's the best chance Nissan might ever get to crack the market.



Coming to the Logan, dimensionally longer than most of it's competitors, a long wheelbase and a boot big enough to swallow a baby shark makes for great self-advertising. It has proved itself too, having sold 4,00,000 units since it was launched till the end of 2006, hence establishing a strong foothold in it's various markets. And it's frugal, so that should encourage a few more to uprgrade from their small cars. Romanian sourced engines would come in three formats, 1.4 and 1.6 petrols, and a 1.5 diesel and the car would be launched in a total of 11 variants. As of now, Mahindra-Renault(let's get used to it!) has announced a launch price of Rs.4.5-5 lakhs for the Logan(I wonder if that's becuase of our tax structure or the nature of our market that allows the company to have a monopoly over the price), so don't get surprised when Renault makes pompous comments about the Logan being 'the best value for money car in the world'. At this price, it will go head on against the Indigo and the Esteem. Competition would also come from the more expensive bunch in the mid-size segment and from the premium small-car segment. But the Indigo has probably the most to loose, frankly, it wasn't born with quality in it's genes and it does not have great competition in the same price range in the mid-size segment. With the Renault, quality comes free. But I really feel that the Logan is the more unique product in this segment, not beause it is extremely different, it is not, but because it provides a good balance of the various qualities needed in a car. The rest fall short somewhere, the Indigo on quality, the Esteem's staleness, a Small cars smallness and a mid-size cars price. Now the only thing left is, Mahindra should manufacture the product well and the duo should have a winner in their hands.

Overall, Nissan's small car plans will further enforce India's position as a global small car hub. Renault would be pretty confident about its prospects and are definitely going to stir up the market with the Logan. They would be hoping that a capacity of 50,000 cars will not be enough. Mahindra has all to gain from the venture, for it can learn the art of car manufacturing which they are yet to master. It will also open more windows for them, in the form of technology and new markets for their utility vehicles. So this three-way alliance is pragmatic, profitable, the surest way to give the customer diversity and the fastest route to evolution. The only issue now would be integration of different cultures which are bound to be starkly different. But once surpassed, it would translate into a melting pot of resources and products of common benefit to the manufacturers and customer alike. With 8,00,000 cars, the stakes are high and the margin for error is low in a competitive market like ours. So whatever they are planning better work for the trio, for as Mahindra would say, 'Nothing Else Will Do'.