With the exciting range of autos being offered in the Indian market, the question that is being increasingly asked is about the pricing. Are Indian cars overpriced? Ravi Shankar from Chennai said that his plan to upgrade to a new car from his current stead – a 2013 model Volkswagen Polo GT TSI – threw some weird challenges. “The Hyundai Alcazar with a starting price of INR 1,700,000 and Skoda Kushaq with a starting price of INR 1,700,000 lakh look overpriced. Considering the fact that localisation has gained since I bought my Polo, the car prices should go down rather than go up. My Polo, with an imported TSI engine and a DSG transmission, cost INR 930,000 lakh. The Polo GT TSI on offer today is priced at INR 1,174,000 approximately in Chennai,” said Ravi. He added, “Should the price not go down rather than go up?” Mahesh Murthy from Bangalore said that he has postponed his plan to upgrade from his 2012 Punto. He finds the current car prices exorbitant.
A car dealer from Delhi expressed on the condition of not revealing his name that the interpretation or inference of a product being overpriced lies with the buyer. Cars today offer more creature comforts, safety and powertrain combinations, he said. This should justify their price, he added. Stating that a sub-four metre car costing close to or more than INR 1,500,000 is discomforting, Vikram Jagtap of Pune said that cars like these fit in a tax bracket that ensures a significant tax rebate. Asked if this was because of the regulations and features, he answered that the he is not certain if the addition of technologies and features like BS VI, airbags, ABS, ESP and EBD would lead to such a price escalation. Saikat from Kolkata averred cars like the Mahindra XUV300 and Tata Nexon offer among the best safety aspects if the preconception of buying a ‘big’ car at INR 1,500,000 is set aside. They offer a long list of safety features like seven airbags, ESP, ISOFIX seats, ABS, EBD, 5-Star GNCAP rating and more, he added.
Is it features?
Rohan Srivastava from Kanpur informed that the long list of features in today’s new cars is their differentiator as well as a catalyst for price increase. They, to an extent, justify the price increase. The other factors include inflation, which has in turn led to a jump in raw material prices, he added. Drawing attention to the near 40 percent jump in steel prices, which has affected his business, Srivastava said that some Indian car segments are reasonably priced. Srivastava drives a Hyundai. Neelkanth Sawant, a marketing professional from Pune, who drives a Maruti, said that car prices have kept pace with inflation. What failed to keep up with the pace are salaries in most jobs. “It is therefore that those looking to upgrade their cars seven-to-ten years down the line are finding it difficult to choose a new set of wheels costing 1.5 to two times more,” he added. Of the opinion that an INR 10,00,000 priced car of yesteryear lacked features like airbags, ABS, EBD, touchscreen, longer warranty coverage, parking sensors, auto wipers and head lamps, sun roof, climate control and connected car tech, an auto enthusiast from Hyderabad said that factor in inflation, and it is not illogical to have the current version of the same model cost INR 1,700,000.
Raveeraj from Bangalore averred manufacturers are pricing their autos as per the customer’s willingness to pay. The fact that most cars are well-equipped does not mean that they are overpriced, he added. Ajit Powar of Pune expressed cars in India tend to be overpriced than in many other markets of the world. They also tend to differ in quality, he quipped. Is it because laws concerning autos are perhaps not as strict as in the UK or the US? Powar could not provide a definitive answer. An industry observer stated that he has seen some companies practice a culture of using different materials in cars that they export. The grade of steel they use differs, the quality and thickness of paint they use differs and even the amount of insulation or features they offer is different, he said. This, he claimed, is done to address the stringent safety and other requirements of the export markets. In terms of emissions and safety, we lag behind the European and US markets, and yet the cars made in India are priced high. This has largely to do with the taxes and high cost of doing business, he explained. Ram Naresh of Hyderabad said that the TUV300 he bought in 2017 cost him INR 1,250,000 on road. On the top of it, he paid INR 250,000 as the loan interest. He spent around INR 50,000 on accessories. The total cost came to about INR 1,550,000. What he spent on diesel, service, spares, insurance etc. would amount to another INR 150,000 to INR two-lakh. Looking at upgrading to a new car, he is finding the prospect of spending INR 150,000 on a sub-four metre vehicle weird.
Inflation, weak Indian rupee, taxes, policies or greed?
Ram Naresh’s search of the low-end versions of cars has made him conclude that they are overpriced. “The Harrier XE, for example, is quite bare bone,” he said. “I have decided to postpone my decision to buy a new vehicle. I am now looking for a used car instead,” he added. Blaming inflation, weakening Indian rupee, the greed of automakers to make huge profits and the knee jerk reaction of authorities, Rohit from Indore said that it is high time cars are looked upon as a necessity and taxed accordingly. Bala from Chennai averred that tax policies have led to a great extent for cars to be highly overpriced. Electric cars are also not being spared, he rued. Look at the prices of electric cars and it does not look like the government is encouraging them, he quipped. Dev Tahalwani, who operates a three-wheeler, said that he finds the price of the new Mahindra Treo Zor electric three-wheeler high. And, if I avail finance, the cost is going further up, he complained. Expressing surprise over the recent EY survey report about buyers being ready to pay a premium of up to 20 percent, an industry source mentioned that the price of electric cars on offer in India is definitely high. The operating costs of such vehicles, their range, their reliability and their usability in terms of infrastructure are values that are yet not clear.
Checks and balances?
Of the opinion that law makers in US and Europe are far more aware and sensitive to the sentiments of buyers and the general public, an industry observer said that the situation in India has not matured as much. The level of checks and balances governing automakers in the US and Europe are simply not there, he added. Stating that inflation, depreciating Indian rupee, ever increasing taxes, availability of high tenure loans and stagnating incomes have already driven car prices to insane levels, Robin from Chennai mentioned that a good upgrade for a reasonable amount after four-to-five years is no longer in sight. Sanchit Chari from Bangalore said, “Taxes have remained the same for the last few years. When GST was rolled out, the rates were set to what the combination of pre-GST rates were (VAT, state taxes etc.). So, they are not the cause of price hikes. Their increase has been one-to-two percent, whereas the car prices have moved up by almost 30 to 50 percent during the same period.” “It needs to be investigated if the addition of safety and emission technologies as well as features would lead to an increase in prices to such a level,” he averred. Rajesh Tandel from Mumbai drew attention to the price escalation in some of the long running cars in India like the Toyota Innova. In 2005, the vehicle was launched at a starting price which was no more than INR seven lakh, he said. Today, he mentioned, the starting price of the same vehicle is no less than INR 1,600,000 lakh. An increase of INR eight-lakh for a product line that is not drastically different from that of 2005 is hard to grasp, he added.
A Delhi-based industry source expressed that the level of taxes on an automobile (there’s GST and a compensation cess of 48 percent, the enormous registration tax that is a state subject and continues to rise time and again), regulatory requirements and the cost of doing business are responsible for the costs rising so much and so often in at least the last one year. The average buying capacity of an Indian buyer has not risen in line, he informed. Explaining that INR 10,00,000 (roughly USD 13,000) is more or less the same amount of money incurred to develop a modern car – a compact SUV or a typical sedan – in comparison to other markets the world over, the source said that it is the tax component that needs to be looked at. Of the opinion that taxes would amount to a good portion of the prices paid to buy cars, Rohit remarked, “The increase in car prices is mainly due to base increases by manufacturers. Taxes are a percentage of base price and increase as the base price increases.” “If one wants to compare prices of cars with those that are also found in the US, he or she could compare the ex-showroom price there and the ex-showroom price here,” he explained. Doing the same some years ago, Rohit concluded that the base price of a car in India is a bit higher than in the US. This, despite the higher labour and regulatory cost in that country.
The demand for EVs worldwide is claimed to be at an all-time high. In 2020, EV sales surpassed three-million units as compared to the sale of 17,000 EVs globally in 2010. A clear message from these numbers is that the global auto industry is highly receptive to the idea of going electric. In India, the central government has announced the Phase II of the FAME policy. Various states have announced an EV policy. A consumer survey by EY has revealed that consumers are ready to pay a premium of up to 20 percent to buy an EV. For a price conscious Indian market, the prospect of paying a premium for an EV may sound a bit too far stretched. The survey conducted by the consultancy firm involved more than 9,000 respondents from 13 countries. Of these, 1,000 respondents were from India. Of the total respondents in the EY survey, 40 percent showed a willingness to pay a premium of up to 20 percent. Among the Indian respondents, three out of 10 people said they were open to buying an electric or hydrogen vehicle. Majority of the respondents from India expect a driving range of 100 to 200 miles (160 km to 321 km) from a fully charged electric vehicle, as per the report. Now the baffling part: the survey also gathered that nearly 90 percent of consumers in India are willing to pay a premium to buy an EV. Vinay Raghunath, EY India Partner and Automotive Sector Leader, said, "Consumers are willing to pay extra for an added value of being environmentally responsible." With 97 percent respondents stating that the Covid-19 pandemic has heightened awareness and concerns about environmental issues as the top reason to buy an EV, the EY survey has stated that they would also prefer to use digital channels to buy a car. Raghunath expressed, “The reducing gap in the cost of ownership between electric and other technology platforms and the increasing segment of consumers vocal about environmental impact will drive a fundamental change in consumer buying behaviour for EVs."
On the occasion of Onam festival, Renault India Private Limited (RIPL) has announced festive offers in the form of discounts and benefits of up to INR 75,000 on its range of vehicles sold in the state of Kerala. It has also announced additional loyalty benefits for its vehicle buyers in the respective state.
The RIPL dealership in Kerala has achieved a rear feat of delivering a total of 200 vehicles in a day during the festival period, which is 20 August 2023 to 31 August 2023. The Onam festival offers from the company are applicable till 31 August 2023.
Sudhir Malhotra, Vice President – Sales & Marketing, Renault India Private Limited (RIPL), said, "Onam is a festival that resonates with the spirit of togetherness and celebration. At Renault, we believe in becoming an integral part of our customers' joyful moments. The remarkable achievement of our dealer, who delivered 200 vehicles in a single day, is a testament to our brand's strength and our commitment to providing exceptional experiences to our customers. With our special festive offers, we aim to add more delight to this festive season and bring our customers closer to their dream of owning a Renault vehicle.”
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Mahindra & Mahindra Ltd has launched yet another compact SUV called the XUV 3XO. Conceptualised at the Mahindra India Design Studio (MIDS) in Mumbai and engineered (and developed) at the Mahindra Research Valley (MRV) near Chennai, the new vehicle combines standout design, premium interiors, comfortable ride, cutting-edge technology, thrilling performance and unmatched safety.
With the base model priced at INR 749,000 ex-showroom, the XUV 3XO is made at the company’s facility in Nashik with the use of advanced manufacturing processes to ensure a high-quality job. To commence deliveries from 26 May 2024, the vehicle is fitted with 17-inch wheels. It has a water wading depth of 350 mm.
Laced with 35 standard safety features including six airbags, ESC with Hill Hold Control (HHC) and disc brakes on all four wheels, the XUV 3XO is built to meet the highest B-NCAP safety rating. Powered by a 1.2-litre TDGI (turbo-petrol) engine that does 230 Nm torque and a 1.5-litre turbo-diesel engine that does 300 Nm, the compact SUV is offered with a 6-speed auto transmission.
Capable of accelerating from 0 to 60 kmph in 4.5 seconds on the turbo-petrol model, the XUV 3XO is equipped with a multi-tuned valve concentric land technology (MTV-CL). This technology – being offered by OE suspension parts suppliers Monroe and Tennaco – enables a uniquely broad range of tuning options in terms of vehicles dynamics.
The MTV-CL technology helps to enhance damper performance by providing a more precisely defined blend of ride, handling and NVH. The XUV 3XO is the second vehicle to get this technology after the Scorpio N.
Fitted with a MacPherson strut fully independent front suspension and a twist beam semi-independent rear suspension, the compact SUV is quite refined and spacious for its size.
Claimed to have the best-in-class wheelbase, occupant space and legroom, the compact SUV offers 364-litre boot space at the rear. This could be further enhanced by folding both or either of the 60:40 rear seat.
Available with first-in-the-segment ‘Skyroof’, dual zone climate control and 65-watt USB-C charging, as per the company sources, the XUV 3XO comes with an electronic parking brake (with auto hold), three smart steering modes, Level 2 ADAS and Twin HD Screens – a 26.03 cm screen for infotainment and a 26.03 cm screen for instrumentation. In terms of convenience, there’s wireless Android Auto and Apple Carplay, and built-in Alexa. The Harman Kardon premium audio system consists of an amplifier and sub-woofer. There’s 360-degree surround view system with blind view monitor too.
Speaking at the launch of the XUV 3XO, Veejay Nakra, President – Automotive Division, Mahindra & Mahindra Ltd, said, "With the launch of the XUV 3XO, starting at an attractive price of INR 749,000, Mahindra is redefining what an SUV can be. Engineered to deliver 'Everything you want and more,' the XUV 3XO is designed to cater to a broad spectrum of customers. From those upgrading from a hatchback to their first SUV to luxury seekers looking for high-end features at a competitive price, the XUV 3XO offers a unique blend of innovation, safety, comfort, and performance. Each variant is a strategic response to the nuanced needs of different customer segments, effectively making each variant a disruptor in its segment."
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Mazda CX-30 And Five Other Models Get Top Safety Pick+ Ratings
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- June 12, 2020
The IIHS evaluates a variety of crashworthiness tests including driver-side and passenger-side small overlap and moderate overlap frontal crashes, a side crash, a roof strength test and a head restraint and seat test that simulates a rear impact. In addition, headlight performance and frontal crash prevention by means of auto-braking and forward collision warning systems are evaluated.
For the Mazda CX-30, its strong Top Safety Pick rating in the US tests adds to a series of impressive global safety assessment results. In Europe, the CX-30 achieved a maximum five-star rating by Euro NCAP, while the Australian New Car Assessment Programme (ANCAP) also awarded Mazda’s new SUV the maximum five-star rating. Both safety bodies scored Mazda’s newest SUV with an exceptional 99 percent score in the Adult Occupant category - making it the first vehicle to ever achieve this near-perfect score. It also earned maximum points for frontal full-width impact, as well as the maximum for both barrier and pole side impacts.
In the United States, Mazda was the manufacturer who received the most 2020 Top Safety Pick+ awards, a result that is a testament to the company’s overarching safety philosophy focusing on three key factors: the adoption of the very latest Skyactiv-Vehicle Architecture, which features a high-rigidity, impact-absorbing yet lightweight body shell; a wide range of advanced i-Activsense safety technologies which help drivers identify potential risks and reduce the likelihood of damage or injury; and high standards of pedestrian protection performance.
The Mazda CX-30’s active and passive safety performance, is complemented by its driver-focused dynamics that deliver linear, responsive and predictable acceleration, braking, handling, and steering. Involving, safe, comfortable and refined, the car’s advanced safety technologies reduce the potential for accidents without compromising Mazda’s traditional fun-to-drive character.
In addition to its 99 percent Adult Occupant score, the CX-30’s Euro NCAP performance included Child Occupant score of 86 percent, full marks in Child Restraint System installation checks and for child protection in the lateral impact test. Vulnerable Road User (pedestrian safety) tests achieved a score of 80 percent, with maximum points for pedestrian leg and pelvis area protection. A score of 77 percent in the Safety Assist category recognizes the efficiency of the new Mazda CX-30’s comprehensive suite of i-Activsense safety features. Michiel van Ratingen, Secretary-General of Euro NCAP, said, “Congratulations to Mazda for another almost-perfect score in adult occupant safety”.
Revealed at the Geneva Motor Show in 2019, the Mazda CX-30 enters a new market segment for Mazda, slotting into the company’s award-winning SUV range below the larger CX-5. The second model in the company’s next generation line-up, like the Mazda3, it features Skyactiv-X spark-controlled compression ignition engine. Combining the bold stance of an SUV with the sleek profile of a coupe, its styling is a sophisticated evolution of Mazda’s KODO design philosophy, while it’s spacious and versatile cabin ensures it has the practicality and comfort demanded by customers in this popular sector. (MT)
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Hyundai Motor India is all set to add a new member to its SUV family as it recently unveiled the official images of the Alcazar. According to the Korean manufacturer, this new three-row SUV will be a natural upgrade for Creta owners. Going by its name, Alcazar, which means castle or fortress in Spanish, is set to offer plush comfort lavishly. No doubt the Creta continues to be the best-selling SUV in its segment, but Hyundai feels the Alcazar will add more versatility and flexibility by offering a 6- or 7-seater SUV in the lap of luxury.
At the unveiling of the Alcazar, S S Kim, MD & CEO, Hyundai Motor India Ltd, said, “With a deep-rooted understanding of our customer’s aspirations, our R&D centre has invested countless man-hours to ensure every aspect of Hyundai Alcazar exudes magnificence. And combined with our premium and superior manufacturing capabilities and rich heritage of ‘Make in India’, we have crafted the perfect masterpiece of grandeur. Hyundai Alcazar is well set to enter a new segment, marking Hyundai’s genesis into uncharted territories. With bold new moves, we are on a conquest of redefining benchmarks to exceed the aspirations of our customers.”
Even though the Alcazar’s based on the Creta, it gets a 2,760 mm wheelbase, which is 150 mm longer, and this additional space allows it to accommodate the third row. As a matter of fact, the Alcazar boasts of having the longest wheelbase in the segment beating the Mahindra XUV500, MG Hector Plus and the Tata Safari.
At a glance, there’s no getting away from the fact that the Alcazar looks like a stretched Creta, but once you take a closer look, there’s a lot more than meets the eye. The first thing that will catch your attention is the new chrome-studded front grille. The lower part of the grille, which also houses the number plate, gets a thick silver-finish rim that runs all the way to the headlamp cluster splitting the LED headlights and the DRLs. The front bumper is slightly tweaked from the Creta and sports a new set of fog lamps. With faux skid plates in front and rear, the Alcazar does try to flex its SUV image. As the Alcazar is 6- or a 7-seater, it has a massive quarter glass for the third-row passengers.
Coming to the side silhouette, Alcazar’s extended length becomes quite evident with its longer rear overhang. Hyundai has given the new SUV quite a muscular stance with bulging wheel arches and deeply etched bodylines starting from the headlight across the doors and ending at the rear lamps. For practical purposes, it also comes with a side step for making entering and exiting the cabin easier for the passengers. Apart from this, the Alcazar gets a new set of dual-tone 18-inch alloy wheels like the Safari and the XUV500, but bigger than Hector Plus and the Creta.
The Alcazar’s rear profile is completely different from the Creta as it sports a clean and simple design with wrap-around elongated C-shaped taillights.
Even though Hyundai hasn’t revealed much about the Alcazar’s cabin, the second row will either come with Captain seats with floor-mounted armrest, a first in the segment, or a three-seater bench. Both the seats can slide forward or back for additional space. The third row, on the other hand, comes with 50:50 split seats that can be completely folded to make more boot space. With the third row up, the Alcazar offers a decent space of 180 litres, which is again more than Hector Plus, Safari and the XUV500. The third-row passengers will also get dedicated air conditioner vents. Expect the Alcazar to retain all the features from the Creta like a 10.25-inch touchscreen unit, Bose music system, ventilated front seats, Blue Link car connectivity, panoramic sunroof, wireless phone charger and much more.
The Alcazar will be powered by a 2-litre petrol engine like the Elantra and the Tucson and the tried-and-tested 1.5-litre diesel, which is seen in the Creta. The petrol motor will churn out 157 bhp and 192 Nm of torque. It gets an additional 7 bhp more than the Elantra and Tucson. The diesel variant, on the other hand, produces 113 bhp and 250 Nm of torque. Both the powertrains will be mated to either a 6-speed manual or a 6-speed torque converter automatic transmission. The Alcazar will also boast of multiple drive mode selection—Eco, City and Sport.
After a span of two decades in India, Hyundai has managed to sell over one million ‘Made in India’ SUVs in both domestic and export markets, which began with the Tucson, Santa Fe, Terracan and now the torch has been passed on to the Creta and the Venue. No doubt the new Alcazar will further strengthen the Korean manufacturer’s position in the SUV market. (MT)
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