![]() Financial Daily from THE HINDU group of publications Sunday, Apr 06, 2003 |
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Investment World
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Investments Columns - Auto Focus ... on the prowl S. Muralidhar
THE raging debate in the US now is if buying a large, gas-guzzling sports utility vehicle (SUV) is unpatriotic. With the US' increasing dependence on oil from West Asia and the current standoff in the Gulf, car buyers in the US are revisiting the issue of fuel inefficient automobiles, and the segment that is facing the most heat is SUVs. This issue is not new to the US. In the 1960s and the 1970s, massive cars, many of them rivalling some of today's yachts in size, were in vogue. These gas-guzzlers had to go as car buyers' perceptions changed, fuel efficiency became important and emission norms were tightened. As always, American car manufacturers came up with quick answers for those looking to buy a new SUV without having to face the quandary of either a compromise in safety or being unpatriotic. So, while there always existed a sub-segment of smaller SUVs, these are now being revived as the solution to skirt the twin issues of safety and fuel efficiency. As a result compact utility vehicles such as the Toyota RAV4, Ford Escape, Chevrolet Tracker, Honda CR-V, Suzuki Grand Vitara, Subaru Forester and even the Hyundai Terracan are finding increasing acceptance amongst buyers. What has all this got to do with the Indian market? Quite a bit and, that too, pretty soon. The Indian car market being sensitive to fuel efficiency across all vehicle segments is set to witness a slew of SUV launches in the coming months. While the SUV mania was kicked off with the launch of the Mitsubishi Pajero and imports of the higher end BMW X5 and Mercedes M-class, some real action is set to rock the SUV market this year. On the cards are the Chevrolet Forester (the first from GM India under this marquee), the Suzuki Grand Vitara and possibly the Hyundai Terracan. All these SUVs are the more compact ones for this class of vehicles and will be imported in fully built form initially and are expected to be priced below Rs 20 lakh. Lets us take a peek at what could be in offer for the Indian SUV buyer. General Motors India has taken the lead and introduced the Subaru Forester, one of its best-selling models worldwide, in the Indian market under the Chevrolet brand. This is the first Chevrolet model and GM preceded the launch with an elaborate brand-building exercise to drill the image and local flavour of the brand into potential customers' minds. The Chevrolet Forester, being introduced in fully imported form, is the latest version of Subaru Forester. In India, the SUV will sport a 1994-cc, 16-valve, four-cylinder petrol engine, married to the Forester in the horizontal format. GM calls this a two-litre boxer engine, which is capable of generating a maximum power of 125 bhp at 5,600 rpm. That is a thumper by Indian standards. However, internationally, the Subaru Forester comes with a larger, 2.5 litre boxer engine as standard. According to the company, the two-litre engine on the Chevrolet Forester is capable of propelling the car to a maximum speed of 185 km per hour. The new SUV is expected to retail at Rs 17-17.2 lakh in India. Other features of the Forester include an impressive clear glass headlamp cluster and a tall contoured tail lamp cluster, which is rounded and merges with the muscular exterior lines of the vehicle. In terms of safety features, the Forester is also fitted with an all-independent suspension, an anti-lock braking system, driver and driver-side airbags and GMs own all-wheel drive system. The other interior features will include an automatic climate control system, foldable seats and a music system with a six-CD changer. GM India has shrewdly introduced the Forester under the Chevrolet label, hoping that the brand acquires an enviable recognition and track record in the top-end, premium segment of the car market and before the company's planned launches in the lower, small-car segment. These could include the Chevrolet Cruze a Suzuki Wagon-R-type passenger car. Meanwhile, Maruti Udyog is gearing up for the launch of the Suzuki Grand Vitara later this month. That will be the most expensive vehicle from Maruti and also the first fully imported one by the company from its parent Suzuki Motor Corporation, Japan.
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