![]() Financial Daily from THE HINDU group of publications Saturday, May 18, 2002 |
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Industry & Economy
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Cars Battle begins in diesel auto segment C.J. Punnathara
KOCHI, May 17 WITH the across-the-board slash in Zen D prices, aimed at taking on the Indica V 2 from the Tata Engineering stable, the battle for the State's diesel automobile segment has begun in earnest. Maruti Udyog Ltd has slashed the price of the diesel version of Zen D by as much as Rs 46,000 in the Delhi market. Besides, it has also rationalised the freight charges to ensure that the prices prevailing in Delhi will be more or less the same for buyers in Kerala as well. Sources in Manikandan Automobiles, a major service centre for both Maruti and Indica, said that it is going to be an uphill battle for Maruti. According to them, Indica has already established a sizeable marketshare in the diesel automobile segment. But why has the fight in the automobile market shifted from the highways of Delhi and Mumbai to distant Kerala? There are several reasons. The die-hard Maruti owners in Kerala have begun to grey. And the new kids on the block have begun to fancy the Zens, Santros, Indicas and Palios. But it is the inimitable Kerala urge for diesel versions that has driven the new-found fancy for Indica. The penchant for diesel versions is unique to Kerala. The high mileage and low running costs are universally attractive factors and not restricted to the State alone. The cab driver on the street says that the diesel versions have not given any problems within the boundaries of Kerala. But take the older diesel jalopies to neighbouring hill stations across the border, say Ooty or Kodaikanal, and the vehicles create trouble. On cold mornings, starting problem is the order of the day. And the vehicles grudgingly cough and pant up the stiff gradient. It takes longer for the engine to rev and heat up. In effect, driving comfort disappears. However, the minute the vehicles hit the State's roads, all these hiccups vanish. The sanguine climate has a lot to do with the much-touted preferences of the resident Keralite for diesel versions, according to the drivers. This is the reason why the automobile majors are fighting their battle in Kerala. A 1527 cc TUD-5 engine of French auto giant Peugeot Citreon SA gives sufficient power and pick up for the Zen D version. However, the only diesel version from Maruti failed to find many takers in the market. It remains to be seen if Maruti will make a dent on the Indica market in Kerala.
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