Hyundai Motor price hike: Automakers would roll out more cars and increase investment in India

On August 26, 2010, Hyundai Motor India announced that it will increase prices of its products by 1.2 percent starting from September 1, 2010.

Arvind Saxena, Director, Marketing and Sales, Hyundai Motor India, said, "there has been an increase in the input costs for car manufacturers. We have tried to absorb as much of the cost as we can, to cause as less inconvenience as possible to our valued customers."

On the same day, the Annual conference of the Society of Indian Automobile Manufacturers took place. Auto industry executives said that due to high demand of cars, major automakers of the world are going to introduce new models and increase their investment in India.

Narrow roads, heavy traffic and lower price and the growing capability of the Indian middle class people are making compact cars measuring between 3.4 meters to 4 meters more popular. Currently, these cars account for 70 percent of the Indian car market.

At the conference, Marc Nassif, Country General Manager, Renault India, said that his company would launch five cars between 2011 and 2013. The cars will be produced at the company’s Indian facility.

Toyota Kirloskar Motor Ltd., the Indian unit of Toyota Motors Corp. said that it plans to sell 63,000-64,000 units of its Etios Compact cars within 2011. Sandeep Singh, Deputy Managing Director, TKM said that the Etios has been specifically designed for the Indian market.

J.D.Power & Associates Initial Quality Study: American automakers advance

According to the prestigious annual J.D. Power & Associates Initial Quality Study 2009, the quality of the latest vehicles produced by Detroit automakers rose “by an average of 10%” and the difference of quality between imported vehicles and domestic production is the smallest ever. The survey was conducted over various auto brands from November to February. The survey results were released on June 22, 2009. Here are some of the important points of the survey:

• In the first 90 days of ownership consumers brought less complains against cars produced by Ford, Chrysler, and General Motors.
• The Lexus brand of Toyota Motor Corp. took the top spot and BMW AG’s mini was the in the last spot.
• During a speech at the Automotive Press Association in Detroit, David Sargent, Vice President, Automotive Research, J.D. Power Automotive Research, said that the quality gap between domestic and imported vehicle has been the smallest; only six points.
• In case of cars both domestic and foreign car makers scored same while domestic truck segment had a slight advantage over foreign automakers. On the contrary, in the crossover vehicle segment, foreign automakers scored better than domestic producers.
• Chrysler LLC was the champion among domestic automakers. The Jeep brand of the company which came in the last position in the 2008 survey rose four spots in the ranking. There were 137 problems per 100 vehicle produced by the company compared 166 problems per 100 vehicle in 2008.
• Toyota’s Lexus had 84 problems against Porsche’s 90 problems. In the past two years, Porsche occupied the top spot.
• The Cadillac brand of General Motors was ranked third with 91 problems.
• Hyundai Motor ranked fourth with 95 problems.
• Honda took over the fifth spot with 99 problems.
• Ford’s Lincoln brand was ranked 27 with 129 problems. The Lincoln brand came 15^th last year.
• Volvo was ranked 24^th.
• GM’s Chevrolet brand finished in ninth place with 103 defects per 100 vehicle. Its Buick and GMC brands were ranked 19^th and 18^th.
• Saab scored the lowest with 138 problems. Saturn and Hummer were also among the lowest ranking vehicle brands.
  

P.S. If you want to know the results in detail visit the following webpage:

http://www.jdpower.com/autos/articles/2009-Initial-Quality-Study-Results

Related articles:

The Wall Street Journal

Skoda Superb: 7 Star experience on wheels

India is one of the emerging car markets in the world. Already some of the top car makers of the world such as Ford, Hyundai, Honda are competing in the Indian car market. Now, there is a new competitor, the Czech automaker, Skoda. The company launched an upgraded version of its Skoda Superb, a Euro-Sedan in India, this week.

The launching ceremony took place in New Delhi. Skoda is claiming that the Superb is a ‘7 Star experience on wheels.’ Built on a Volkswagen platform couple with VW/Audi engines and VW suspension, the Skoda Superb is a great car. The earlier models of Skoda did not do well in India because of their higher price. Skoda Superb is a premium segment car. Skoda is looking forward to sell 1,000 units of Skoda Superb this year. It already sold 522 models in the last eleven month.

Dimension:

Length: 4838 mm

Width: 1817 mm

Height: 1462 mm

Clear height: 139 mm

Wheel base: 2761 mm

Features:

• The new Skoda Superb comes with a ‘fuel-efficient’ new TSI (Turbocharged Fuel Stratified Injection) petrol engine. The 1.8 TSI/118kW is coupled with a 7° automatic DSG transmission that can be controlled using the 3-spoke multifunction steering wheel.
• The new Skoda Superb has parking assistant.
• The new Skoda Superb has Bi-Xenon headlamps with Adaptive Frontlight System (AFS).
• The new Skoda Superb comes with Twin-door system. Normally, you open up the fifth door of your car to carry luggage. If you are carrying bigger luggage that requires lots of space, then under the twin-door system, the rear window can be lifted up to create more space for luggage. If necessary, the volume of space can be further increased by tilting the backrest of the rear seats. In a typical cars, you would have to slam the door to shut the boot. In Skoda Superb, all you need is a light touch.
• The Emory interior of the new Skoda Superb makes it a great style statement. The fabric, leather and synthetic leather comes in ivory color. The dash board comes in two colors- blackand ivory.
• The new Skoda Superb comes with Climatronic air-conditioning. It ensures a comfortable environment inside the car.
• The new Skoda Superb has sunroof with solar panels. It makes sure that there is enough air even if the car is packed.
• The new Skoda Superb comes with 9 airbags including driver’s knee and rear side airbags.

Price:

Skoda Superb costs Rs. 18.8 lakh. The older models range between 20.1 lakh and Rs 22.7 lakh. Thomas Kuehl, Board Member, Sales & Marketing, Škoda Auto India, said that the new price is very important for the car because India is a price sensitive market. It is very important to get the right price for value proposition.

Related articles:

Business Standard Motoring

Sify.com

Skoda Auto.com

(This entry was originally published in march 2009)