All About Cars

The Budget 2008 has reduced the excise duty for small cars and two-wheelers from 16 to 12 per cent, so a Maruti-800 customer should benefit by around Rs 10,000, reasons Sanjay Nigam, Director-Automotive Business, Trilogy India, a US based company providing business solutions to auto OEMs.

“From the manufacturer’s point of view, it’s good news for Maruti, Tata and Hyundai and all those planning to launch small cars in the near future,” he adds in a recent e-mail interaction with Business Line.

“But the excise duty on bigger cars continues to be at 24 per cent, which will cause more disparity between the prices of small and big cars. The demand for big cars may get impacted in the short-term,” rues Sanjay.

“In the infrastructure sector, the Government has increased allocation for the National Highway Development Project (NHDP) to Rs 12,966 crores which will increase demand in the auto sector in medium to long term.”

Excerpts from the interview, in which Sanjay answers a few pointed questions about the forthcoming Nano, the one-lakh car from Tata.

What impact do you foresee of Nano on the two-wheeler and the passenger car segments, and as challenges to motorcycles and entry-level passenger cars in retaining their market share?

Entry of Nano has set a new benchmark in both price and size in the passenger car segment. It has opened up a huge market that was hitherto untapped. Its potential impact on the market can be judged by the recent proposals of competitors to come out with similar cars in the same segment.

While the price and fuel efficiency of Nano can have a competitive edge over the two-wheeler segment and entry-level passenger cars, its actual impact on their market share would have to be gauged taking into consideration the interplay of various macro factors.

Such as?

To begin with, while it will have an impact on the two-wheeler segment, to state that this will be significant enough to alter market share may be incorrect.

For instance, a sizeable number of two-wheeler users are youngsters whose purchase is guided by fuel efficiency, price, style, parking considerations, besides a host of other factors.

Replacing the two-wheeler with a Nano may not always be an attractive or a feasible option for this segment as they face a budget constraint, parking issues, the absence of style as in a fancy motorbike, the absence of power as in a motorbike of this price. Even the middle-aged group using a two-wheeler will factor in similar considerations, though to them, the style factor may not play a significant role.

As for entry-level passenger cars, or ‘A’ segment cars, they could be impacted to a certain extent, especially since Nano, besides its attractive features, is also positioned as an environment-friendly car at a more attractive price. But a larger impact is likely to be seen in the used car segment.

On the effect that the used car market has to get used to…

Nano’s impact on used cars is likely to be more pronounced in tier II and tier III cities. These cities are a potential market for used cars. Given that these cities are also a strong market for small cars, the availability of a brand new car at a price that could probably match a used car could prompt customers to pitch for a Nano in place of a second-hand car.

Besides, the client base here typically is price conscious, pays attention to factors such as fuel efficiency, which Nano can aptly satisfy. While these cities can form a potential market base for Nano, the sales could be at the cost of used cars. Given that the tier II and tier III cities are a major market for used cars, a fall in demand here could effect a fall in price of second-hand cars.

In the same vein, the availability of Nano could also prompt similar tilt in purchases in the tier I cities, in favour of Nano and against used cars. This in turn would again lead to a fall in the price of used cars in tier I cities. Such a fall in price of used cars, both in tier I cities as well as tier II and III could indirectly impact segment B and C cars.

Indirectly because, typically, the purchase of segment B and C cars is an upgrade, which means that the car currently in use would have to be disposed of, to make the new purchase. A fall in the price of used cars could act as a deterrent at least in the short run, for purchases in the B and C segments.

How will Nano impact after-sales services’ profitability of dealers and service centres?

Car sales yield very low margins, especially in the A segment. This is because of high showroom costs and high discounts offered. While Nano would face a similar challenge, yielding low margins, the sheer volume of sales may counter this, ensuring profitability. Besides, a major chunk of the profit for a dealer comes from after-sales service and body shop and hence it would pay a dealer to invest in the workshop.

However, given the expected volume of sales, innovation in dealing with sales and after-sales service is certainly called for. For instance, an option of having a central pool of inventory could be explored, from where the dealers can draw their stocks periodically. This would greatly reduce the burden of land cost to hold stocks for individual dealers. To handle the excessive rush and the resultant adverse impact on sales service on other car segments offered by the dealers, individual kiosks could be set up to exclusively cater to orders for Nano. The Internet too could be used to reduce the pressure on dealers.

As for customer satisfaction, different car segments call for different levels of customer satisfaction. Lower segment customers are typically less demanding in terms of customer-care expectation and thus, meeting this with a team of stretched customer-care officials may not be a major challenge.

As regards after-sales service, these centres need not necessarily be in the heart of the city but could be situated in the outskirts to cater exclusively for Nano. There could be an arrangement with a service centre within the city where the customer can leave his car for servicing. The actual servicing could happen in the centre that is outside the city. This would take care of the spiralling real estate prices within the CBD (central business district) and ensure profitability.

Do you see the absence of a backdoor, fuel-tank access inside the bonnet acting as deterrents?

The customer of an A segment car is essentially one who is guided by price, fuel efficiency and other related factors. He is not as discerning or as demanding as a customer in the higher segments. Hence, as long as the above criteria are met to his satisfaction, he is not unduly worried about factors such as the absence of a backdoor or fuel-tank access.

Will Nano’s slow speed be an edge over other cars?

This again will not be relevant, as the sale of a car is dependent on factors such as price, size, status factor, fuel efficiency, besides a number of other connected variants. Congestion on roads need not necessarily improve the sales of Nano.

Ford Motor Co. is expected to announce today that it will sell its Jaguar and Land Rover brands to India’s Tata Motors Ltd. for at least $2 billion, people familiar with the transaction said yesterday.

The deal would transfer two of the world’s best-known luxury brands to India’s largest truck maker. Ford said in January that Tata was the preferred buyer.

Aston Martin unveiled at the Geneva Motor Show an revised version of the DB9, both Coupe and Volante versions. Deliveries of the updated DB9 begin during quarter two 2008, with prices from £113,950 for the DB9 Coupe and £122,950 for the DB9 Volante.

The new DB9 is powered by a revised version of Aston Martin’s 6.0 litre V12 engine to deliver improved power and torque. Peak power of 470bhp (350kW) – increased by 20bhp (30Nm) - is now reached at 6,000rpm, resulting in a power to weight ratio of 267bhp per tonne (199kW/tonne) – an increase of 11bhp per tonne over the existing DB9.

Peak torque of 600Nm is delivered at 5,000rpm, providing even more accessible power for the driver, as well a greater performance feel overall. Accordingly, top speed is now 190mph (306km/h) and the benchmark 0-60mph time improves by 0.3 seconds for the Touchtronic transmission – which benefits from a new valve box and integrated transmission controls to achieve quicker gear shifts – to 4.6 seconds and by 0.1 seconds to 4.6 seconds for the manual gearbox.

Press release

Aston Martin will introduce a revised version of the company’s critically acclaimed DB9 at the 2008 Geneva Motor Show, which includes significant enhancements to standard specification.

These changes include a revised version of Aston Martin’s 6.0 litre V12 engine to deliver improved power and torque. Peak power of 470bhp (350kW) – increased by 20bhp (30Nm) - is now reached at 6,000rpm, resulting in a power to weight ratio of 267bhp per tonne (199kW/tonne) – an increase of 11bhp per tonne over the existing DB9.

Peak torque of 600Nm is delivered at 5,000rpm, providing even more accessible power for the driver, as well a greater performance feel overall. Accordingly, top speed is now 190mph (306km/h) and the benchmark 0-60mph time improves by 0.3 seconds for the Touchtronic transmission – which benefits from a new valve box and integrated transmission controls to achieve quicker gear shifts – to 4.6 seconds and by 0.1 seconds to 4.6 seconds for the manual gearbox.

The latest Aston Martin DB9 also incorporates a series of chassis developments for both the Coupe and Volante derivates. Bilstein dampers are introduced in addition to revised upper suspension arms and retuned suspension bushes to deliver improved ride quality; aiding greater refinement in the Volante and an enhanced sporting feel in the Coupe. The DB9 Volante also benefits from revisions to the front shear panel which increases torsional rigidity by 10%, further improving refinement.

The DB9 manages to combine all facets of style, quality and usability of a traditional Aston Martin without relying on retrospective detail or design. Accordingly, styling changes to the revised DB9 are subtle, reflecting the car’s timeless design and understated elegance.

Exterior styling changes include the introduction of a new standard 19’’ 10-spoke alloy wheel, new door mirrors and a revised anodised aluminium five-bar grille. In the cabin changes include a new centre console constructed from die cast zinc with a painted iridium silver finish and the introduction of a new Emotion Control Unit (ECU) – first seen on the DBS in 2007. The ECU – constructed from glass, polished stainless steel and polycarbonate - replaces the key used previously for the DB9.

The innovative DB9 introduced an exciting new era for Aston Martin. The 2+2 sports car set new standards in its class due to its astonishing combination of technology, agility and design. The car marked the beginning of a new era for Aston Martin and became the first car to be hand-made at the company’s state-of-the-art facility in Gaydon, Warwickshire.
Sales of the DB9 started in spring 2004, and to date, more than 10,000 examples have been produced and delivered to customers around the world – surpassing the DB7 as the most successful Aston Martin of all time.

Deliveries of the updated DB9 begin during quarter two 2008, with prices from £113,950 for the DB9 Coupe and £122,950 for the DB9 Volante.

As some of you might have already heard by now. The Hyundai Genesis Coupe has been unceremoniously de-cloaked courtesy of MyRide.com and the New Tiburon forums and is now making the rounds online. The consumer-grade version of the concept shown last year in Los Angeles simply looks fantastic, and with both turbo-four and V6 power on tap, it’s ready to make some noise. Unfortunately, we can’t tell you the specifics just yet (but rest assured, there’s plenty to tell — and it is good).

Barring any additional unforeseen surprises, we’ll have the complete story for you when the car makes its debut this week in New York. But since the cat is out of the bag regarding this particular sampling of fourteen official photos, here they are for your enjoyment.

A self-effacing and impeccably dressed Bob Lutz took shots at the old Pontiac during the live reveal of the 2009 Pontiac Solstice Coupe. Busting on the arrowhead’s former taste for cladding and Iron Dukes in the “excitement” product line, Lutz confidently strode alongside a silver 2009 Solstice GXP Coupe as it rolled out amidst fanfare provided by the Young Lords. Strobe lights flashed, music blared – it was like catching the last act of Kimmel, complete with Pontiac Garage signage. The Solstice Coupe replaces the world’s flimsiest soft-top setup with a composite targa panel. 50-Cent also made an appearance and touted the performance of the GXP-trim Solstice, saying “It’s faster than a Porsche Boxster. For $30,000… pick this one, not that one,” while pointing at the Porsche display. The look of the Solstice Coupe is definitely zoomy - think of a C3 Corvette left in the dryer too long and you get the idea. Inside, the feeling is perhaps slightly less claustrphobic, but the general low-budget interior continues, though the GXP on the stand was wearing leather on the seats. The price of entry will still be a bargain when you look at the style it buys (official pricing hasn’t been announced) - and the Coupe may even have enough trunk for an overnight bag.

Used Coupe cars for sale by manufacturers at Volcars

Green cars were on display at the Geneva Auto Show last week, fueled by rising oil prices and environmental concerns.

Car makers presented an array of cars that run on a variety of sources, from electricity to diesel. The Saab 9-X BioHybrid, for instance, won recognition for Best Concept for its 1.4-liter BioPower turbo engine backed by GM’s next generation hybrid system. Daimler showed a Mercedes SUV, the BlueTEC Hybrid. Nissan said it would launch an electric car in the U.S. in 2010, and release it worldwide in 2012.

General Motors confirmed its $4 million investment in Think Global, a Norwegian electric car maker, which debuted its Think Ox at the show, a five-seat car with a range of 125 miles per charge.

Daimler said it has a hydrogen model that can reproduced affordably in large quantities, but the lack of infrastructure presents a barrier. For others, biofuels, such as ethanol, are the name of the game. For instance, Lotus displayed a version of its Exige 270E Tri-fuel that runs on gasoline, ethanol and methanol.

Toyota, maker of the wildly successful Prius, also debuted its iQ model, which it bills as the world’s smallest four-seater.

Forty thousand cars have been sold in Turkey within the first two months of the year. A total of 3,452 of automobiles purchased are off-road vehicles. In Europe, Turkey ranked in ninth with these figures.

The purchase rate of 4×4 vehicles, which are twice as expensive as in Europe, has reached top levels. These off-road vehicles were sold for approximately $52 thousand and within the past two months, Turkish car lovers spent more than $275 million overall for the purchase of these vehicles. Turkey has climbed the ladder over many European countries and has attained a European average. In the past two months, 39,784 vehicles were purchased in Turkey, of which 3,452 were off-road vehicles. This means nine percent of the vehicles sold are 4×4 SUV’s. This rate is 8.7 in England, 7.1 in France, 7.3 in Ireland, 6.5 in the Netherlands and 3 percent in Portugal.

Koleos, Laguna GT and Twingo RS. Those are three of the four new models which Renault was anticipated to unveil at this year’s Geneva show, but right up until the end of the press conference, a big question mark hung over the identity of the fourth. The wraps have been taken off and the veils have been lifted, revealing the Megane Coupe concept.

The existing Megane – along with its distinguished curved rear window – is on its way out, and Renault is assuredly working hard at a new design that will capture buyers’ attention in an increasingly crowded market. But while the concept is likely a very far ways away from what the production version will end up looking like, it did grab its share of attention.

Used cars for sale and Luxury Car updates

The Chevrolet Traverse will probably outsell General Motors’ other three midsize crossover SUVs put together after it goes on sale this fall as a 2009 model, company Vice Chairman Bob Lutz said in an interview at the auto show here today.

“It’s going to be a huge hit for Chevrolet,” Lutz said.

GM will build the Traverse in Spring Hill, Tenn.

GM’s other midsize crossovers are the popular Buick Enclave, GMC Acadia and Saturn Outlook, all of which went on sale last year and are assembled in Lansing.