The Hindu Business Line : Assembly lines rev up for 2005

YEAR 2005 promises to be an exciting 12 months of action for the passenger vehicles industry. A year that could see quite a few blockbuster launches and, perhaps, even the introduction of a few `segment-redefining' cars and utility vehicles.

The industry, which is gearing up for a deluge of new vehicles, has not been unduly perturbed by a marginal slowdown in sales in 2004 compared to the growth rates in the previous two years.

But two concerns remain for the industry — an increase in the cost of producing vehicles (which is directly reflected in the pricing) and the running cost for the customer — both of which will continue to be affected by the rising price of oil.

The only possible shot-in-the-arm for the industry could be a reduction in excise duties in the forthcoming Budget. But one difference that this year's launches would have from those of the past will be that most would have been carefully selected and focused in sub-segments that are fast emerging as growth opportunities.

The passenger vehicles sub-segment that is likely to see the most action would be the new, emerging cusp segment between the premium compact cars and the sedans. This segment, which has cars in the Rs 4.5-6.5-lakh range, has already seen two launches — the Hyundai Getz and the Ford Fusion.

There could be three more launches in 2005. After the first wave of sedans, both entry-level and premium, this year could see the launch of two brand new models, at least two refreshed versions of existing vehicles cars and a number of new variants.

The list of new vehicles that could hit Indian roads in 2005 will get even longer if we were to include those that are likely to be imported wholly.

With so many possible new launches ahead, a brief profile of the ones that are most likely to land at a showroom in your neighbourhood this year.

Maruti Suzuki

First off, the market leader, Maruti Udyog's much talked about premium hatchback the Suzuki Swift could set off the slugfest in the cusp, `between B and C', segment.

The Swift promises to be the most modern and globally up-to-date model to ever come out of the Maruti assembly line. Suzuki has developed the Swift after extensive collaborative efforts with European engineers and motoring enthusiasts.

Based on the Concept S, which was first showcased by the Japanese compact car manufacturer in 2002, the Swift could come with a 1.3- or a 1.5-litre petrol engine initially and may be offered with a direct-injected diesel engine in 2006, after Maruti's proposed new diesel engine manufacturing facility goes on stream that year.

With the launch of the Swift, Maruti and its parent Suzuki may just decide to put off the launch of the Ignis. But other Suzuki vehicles that Maruti may look to launching here later this year or the next could include the Suzuki Liana sedan and the Carry van.

Toyota

The next most prominent, hi-profile launch of 2005 would be the Toyota Innova. Called the Kijang Innova in Indonesia and elsewhere, this is a brand new multi-purpose vehicle that Toyota has built as part of its Innovative International Multi-purpose Vehicle (IMV) project.

Under the project, Toyota is developing three new pick-ups, a new minivan and a new SUV (all on the same platform), in addition to using the network of production bases for developing and producing even small cars that will be relevant for the focus markets of the project.

The Innova (minivan or MPV) is a baby of this IMV project. This same vehicle was launched late last year in the Indonesian market.

The Innova is for sure coming to India, but what is not sure is if Toyota Kirloskar Motor (the Indian subsidiary) will replace the popular Qualis with this new vehicle or if the two will co-exist. The Innova, weighing in at over two tonnes, is currently offered with a turbo-charged 2.5-litre, common rail direct injected diesel engine. It will boast of much higher levels of refinement than the Qualis and will also be in keeping with Toyota's new generation styling theme.

Given Toyota's ability to come up with penetrative pricing, the Innova just might wipe out competition in the segment.

Honda

In our opinion, if Honda decides to launch its award winning premium hatchback, the Jazz, later this year, it will be the most significant car to look forward to.

The car has all that it takes to make the premium small car market swerve in its favour here.

The Jazz has been rated as one of the most practical and spacious premium hatchbacks available in markets such as the UK and Thailand. Of course, the car is rated as a super-mini in these markets.

The Jazz and the City were developed by Honda specifically for emerging automobile markets and for countries where the convenience of a small car had created a niche market segment.

The Jazz will offer good road presence, provide the height advantage of such small cars as the Santro and the WagonR, and also be wide enough to offer as much shoulder space at the rear as many sedans currently available. With innovative storage solutions and a design that will be universally likeable, the Jazz could become a benchmark in the rapidly growing premium hatchback category.

It is currently available with 1.2- and a 1.4-litre i-DSI engines. In Thailand, the Jazz is also offered with a 1.5-litre VTEC engine and with the same seven-speed CVT (continuously variable transmission) that now comes with the new City in India.

Honda may also decide to launch the new Civic to complement its line up of cars in India.

This sedan, also an award winning compact in the US and other markets, will complete the range of cars offered by Honda in terms of price positioning.

The Jazz could be priced upwards of Rs 5.5 lakh and the Civic may come in at Rs 8 lakh plus.

Hyundai

Hyundai Motor India is likely to be busy with three launches — two refreshed variants of existing cars and a brand new compact SUV in 2005. We are of course talking about the new, year 2005 model variants of the Accent and the Sonata and the recently launched Tuscon SUV.

The Tuscon will be directly pitted against the Honda CR-V and the Nissan X-TRAIL in terms of size, build and features, but could be priced more competitively at about Rs 15 lakh. Hyundai is banking on the Tuscon to continue its good run in the tough US market, where its full size sports utility Santa Fe has been received well.

The Tuscon was launched in the US market last year and features an aggressive front profile. With outsized headlamps and muscular wheel arches, the Tuscon tries to pack in as much punch as a full-sized SUV, but offers better fuel efficiency and innovative storage solutions.

Hyundai is currently offering the Tuscon with either a 2- or a 2.7-litre V6 gasoline engine and a 2-litre CRDi diesel engine option. The vehicle could be launched with two trim levels specifically suited for the Indian market.

The new Accent will feature sleeker lines and a more understated style. It can be expected to continue to carry forward Hyundai's now famous habit of offering more value than its competitors.

The new Sonata will also roll in with a more European profile and an internationally acceptable, sophisticated look.

Hyundai has given the Sonata a complete makeover and the same grand, gentlemanly design that was first unveiled in Seoul in the middle of last year will wind its way into India later this year.

The slightly weird, merging twin-eyed looks of the Sonata will be gone and in its place will be simple, unpretentious straight lines all around the car.

Ford

The company that sports the Blue Oval has been busy in the last few months. With more variants of its best selling entry-level sedan, the Ikon, and the more recent launch of its premium hatchback, the Fusion, Ford has its hands full already.

But the rumour mills are rife with gossip that the company is also actively looking at a new sedan to possibly replace or be set alongside the Ikon.

Of course, the sedan that we are talking about is the new Ford Focus. The Focus is a classy Ford and could come in donning its popular notchback looks or may be launched as a full-sized sedan priced in the Rs 6-8.5-lakh range. The Focus, already popular in markets such as the UK, is offered with five engine options — 1.4-, 1.6- and 2-litre petrols, and 1.6- and 2-litre Duratorq TDCi diesel engines.

The Focus will be a worthy addition to Ford India's line-up and if priced right, could upset the applecart amongst the other mid-size cars in the same category.

Ford may also decide to refresh the Mondeo with a much-needed makeover to revive demand for the car; its sales has been floundering in the wake of competition from the other luxury marques that have entered the market.

If that was not quite big enough, the other cars revving up could include the Chevrolet Spark and the station wagon variant of the Chevrolet Optra from General Motors; the premium hatchback Fiat Panda and the new Fiat Palio; and the Skoda Fabia.

In the super premium category, the Nissan Altima, the Audi A6 and the new BMW 3 series may be the ones to drool for this year.

With so many new launches, the year ahead promises to be exhilarating for the auto enthusiast.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Value inflow sans cash outflow

Indian firms continue to destroy value

Ambuja Cement India: A cash cow

HDFC Growth: Hold

SBI Magnum Equity: Switch

In line with time profile

HSBC to launch Dynamic Midcap fund

Mastek: Keep it on hold

Gujarat Ambuja Cement: Buy