For car makers, need for speed beats slowdown fears

A slow market may have dampened automobile companies’ sales, but not their plans.

The twelfth edition of the India Auto Expo, to begin in February next year, is likely to see a big splurge of sports utility vehicles and multi-purpose vehicles by top companies.

While Indian consumers will have their maiden tryst with Honda’s Mobilio (an MPV powered by a 1.5-litre engine), Chrysler’s Grand Cherokee (the SUV that heralds the company’s entry into the country) and Datsun’s Go +, home-grown Mahindra & Mahindra will bring the Korando C from the stable of its South Korean subsidiary Ssangyong.

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Also slugging it out for attention and offering customers an array of choices will be Korean giant Hyundai, which is expected to bring the new Santa Fe, and Renault, which will introduce the Lodgy (an MPV).

Compared with 35-odd in the previous edition, as many as 50 automobile makers are expected to participate in next year’s expo, making it the largest auto show ever hosted in the sub-continent.

Besides, according to the Society of Indian Automobile Manufacturers, there will be a bevy of auto firms making their first appearance in the country -- Datsun from Nissan, Italian bike maker Moto Morini, DSK Hyosung and Japan’s Isuzu Motors.

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The companies maintain a stoic silence on what they plan to bring to the expo.

The list of products to be on display is based on views of vendors and automobile analysts.

The long list of SUVs and MPVs, however, does not mean that there will be little for those looking for smaller cars -- entry-level hatchbacks.

One of the more interesting showcases is expected from US-based Ford.

Industry sources say the company is likely to have on display the new global small car, the KA, which it unveiled in Brazil earlier this year.

Developed in Brazil, the car is expected to have one-litre and 1.5-litre petrol versions, with attractive price tags.

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At present, Ford’s entry-level car in the country, the Figo, is priced at around Rs 400,000.

Maruti Suzuki, which made headlines in recent months with the YL7 (a replacement for the A-Star and seen as the new Alto for global markets), is expected to showcase the small car at the auto show.

Also, industry sources say, the Japanese auto maker is likely to display the YL1 (a replacement for the SX4, the not-very-popular sedan) and a largish concept SUV (code-named iV4) in February next year.

After a three-year hiatus, Tata Motors is also going to be back with new products. It will introduce two -- a hatchback and a compact sedan -- at the Auto Expo; their commercial launches will follow later in the year.

The new hatchback (code-named the Falcon 4) will sit alongside the existing Indica and Vista models; the company has ruled out phasing out either of the two models.

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Similarly, the new compact sedan (code-named the Falcon 5) will complement the Indigo CS, the country’s first compact sedan.

Fiat is expected to join the party in the hatchback segment with its 1.4-litre Abarth. However, this might carry a premium price tag.

With the compact SUV and MPV market seeing good volumes (55 per cent volume growth last financial year), backed by the success stories of the Renault Duster and the Maruti Suzuki Ertiga, more firms want to join the bandwagon.

Puneet Gupta, associate director at auto consultancy firm IHS Automotive India, says:

 “Though sales of utility vehicles have declined a bit in the past few months, there are some good products that are still selling well and have changed the fortunes of firms like Renault and Ford.

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“Indian consumers want products with premium features at aggressive price points. So, all companies are looking at this space.”

Renault, which has already tasted success, is expected to pit its MPV, the Lodgy, against Toyota’s Innova and Mahindra’s Xylo.

Honda, on the offensive to treble sales by 2017, too, hopes to use its MPV, the Mobilio, to ramp up its numbers as it takes on the Ertiga, say analysts.

SIAM Deputy Director-General Sugato Sen says: “The auto show next year will be the largest in terms of participation.

“About 45 automobile manufacturers have confirmed their presence.

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“Another 10-12 are waiting; we may accommodate three of them.”

About 32 passenger cars, nine two-wheelers and six commercial vehicles were introduced at the 11th Auto Expo in January 2012.

Based on the current trend, many say, this number could be surpassed in the 2014 edition.

To accommodate a larger number of participants, the exhibition has been shifted from Delhi to Greater Noida’s Expo Mart, which has nearly double the space, at 75,000 square metres.

 “The exhibit area next year will be nearly double the 39,000 square metres available in 2012,” informs Sen.

The increased exhibit area has also enabled the organisers to offer space for experiential activities of Hero MotoCorp, Nissan, Yamaha and Honda Motorcycle and Scooter India.

In what would be a first, the organisers have earmarked an enclave ‘Electric and Hybrid Mobility City’ to promote awareness about electric and hybrid vehicles.

Already, several companies -- M&M, Maruti Suzuki, General Motors, Honda, Toyota, Bajaj, Tata Motors, even BMW, have signed up to display and facilitate test rides of their green vehicles.