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'.