Trends: Executive Sedans

Trends: Executive Sedans

The year was 2000. The first two Completely Built Units (CBU) of Skoda Octavia landed in India and rushed to Aurangabad where the Volkswagen Group company would eventually set up a modern manufacturing facility. A confident Imran Hassan, as the head of the Czech company in India, looked keen to drill the fact that his Octavia was a car with a Czech badge but actually German in its quality – build and almost all of that it had to offer. A precursor of a segment that would pull buyers big time, the Octavia was official launched a year later in 2001. It was the same year that the Honda Accord was launched, albeit at a higher price point. The Hyundai Sonata too hit the market soon. The Honda Civic arrived in 2005, whereas the Toyota Corolla in 2003. The Hyundai Elantra arrived at round the same time. With SUVs yet to be the rage, these aspirational ‘executive’ sedans soon defined a new standard in the Indian auto industry. They came to occupy what would be termed as the C+ or D-segment. Forming an upper crest of sedans that were status and lifestyle-oriented, the two segment cars drew large sales volumes. The Octavia sold an estimated 8,000 units in 2005. A year before, in 2004, Honda Siel Cars sold 2,977 Accords. It cornered an enviable market share of 40 percent in its segment, an increase of 69 percent over 2003.

Between 2001 and 2010, the ‘executive’ sedan segment continued to be the ‘force’ with good sales. The introduction of new models like the Toyota Corolla and Honda Civic helped. The launch of large SUVs like the Hyundai Terracan, Ford Endeavour and Honda CR-V in the same time span did not create much ruffle as these were priced higher and were out of reach of many. It was with the launch of the Toyota Fortuner in 2009 that the SUV segment began gaining some serious muscle. By then, the D-segment had seen a good amount of shake and tumble. New additions included the Volkswagen Jetta and Passat. By 2011, the segment comprised the Toyota Corolla, Skoda Octavia, Honda Civic, Volkswagen Jetta, Hyundai Sonata Embera, Chevrolet Cruze and a few others. Crowded it became, and with an amount of fanfare to boast of. It turned out to be a segment that every manufacturer wanted a pie of. This, despite the SUV rage catching on since 2012 as the Ford EcoSport and Renault Duster arrived on the scene.

Vehicle buyers in India were suddenly exposed to a wider scheme of things; they were in fact torn between choosing an aspirational sedan or an SUV. The D-segment cars soldiered on with fair numbers to talk home about, albeit the likes of Civic and Octavia and not the Accord and the Sonata. On muted sales volumes, Honda discontinued the Accord in 2013. In May 2013, only 24 units of the ‘executive’ sedan were sold as compared to the sale of 68 CR-Vs. The Toyota Corolla sold 368 units in May 2013 as compared to the sale of 353 numbers in the month before. The Volkswagen Jetta sold 266 numbers in May 2013, and the Passat, 141 numbers. The Octavia, renamed as the Laura, sold 305 units in May 2013 as compared to the sale of 126 units in April 2013.

The near six-car D-segment has shrunk to a lone warrior in 2021. With the latest generation Honda Civic launched and quietly discontinued, the only car that seems to make up the segment today is the new Skoda Octavia. In the absence of Toyota Corolla, the only other car in the segment to give company to the Octavia is the Hyundai Elantra. Its numbers are anything to write home about today. The new Octavia has been priced uncomfortably close to the Superb with a starting price of INR 26 lakh. When it was first introduced in 2001, it was priced at no more than INR 10 lakh.

The executive sedan dilemma

If the Renault Duster should be credited to create some serious pull towards SUVs in India starting from 2012, today, it is the segments containing SUVs that are the most crowded. The clues of how the D-segment has shrunk to include just the Elantra or the Octavia (the new Octavia actually looks to have moved up and beyond the reach of this segment ironically) may be found in the proliferation of the SUVs at various levels – right from the Ford EcoSport level to the Toyota Fortuner level (where SUVs assume a serious form and function, complete with a 4WD system). A segment that did an estimated 10,000 units in 2005 has come down to a few hundred units in 2021. In January 2021, 32 units of the Elantra were sold. Eight units of the Octavia were sold. The Superb sold 239 units in the same month! Comprising cars that measure over 4.5m in length and are powered by engines with a displacement capacity of between 1800 cc and 2000 cc, the D-segment contenders have been priced between INR 15 lakh and INR 25 lakh.

Sitting above the C-segment, which consists of cars like the Maruti Ciaz and the Hyundai Verna, the D-segment cars have always been about status, comfort, features and performance. They are therefore about lower sales volumes and high production costs, making them difficult to pursue by many automakers. Proving to be a segment that has been tough to crack for many OEMs, the ones to taste immense success have been Skoda and Toyota with their Octavia and Corolla, respectively. With sales shrinking to become a fraction of that of the SUVs, and even not being as strong during their peak, the D-segment is a study that should reveal the time travel of the Indian passenger vehicle space. Affected extensively by the proliferation of SUVs at various price points, the D-segment is all but gone. The recent figures by SIAM indicating that SUV acceptance has increased steadily, and has grown to be more than the total sales of sedans and hatchbacks combined in the April-June quarter of 2021, the D-segment, it is clear, has shrunk drastically. With the B-SUVs (like Maruti Suzuki Brezza, Hyundai Venue, Tata Nexon) eating into the C-sedan segment and the larger C-SUVs (like KIA Seltos, Tata Harrier, Hyundai Creta) taking a pie out of the D-sedan segment, what was once considered as the most coveted has now been relegated to soldier on with much difficulty.

With India refusing to shift from being a price sensitive market, and with a certain purchasing power equation always present, the growth in SUVs that come at desirable price points with an aspirational value to talk about, the D-segment, it may be an exaggeration to say is on its last legs. Undercutting sedans when it comes to pricing, SUVs are proving to be the ruthless D-segment killers. Presenting a strong perception regarding ‘value for money’, it is they that are providing no chance for even the existing D-segment contenders to have much leeway. They may be world-class and highly regarded the world over, but the D-segment cars like the Skoda Octavia and Hyundai Elantra look like they are up against a wall. Made from Completely Knocked Down (CKD) kits that are weighed by the cost versus volume considerations, the D-segment cars that exist suffer from a significant cost disadvantage. Add low demand, and it is not surprising for Skoda to position the new Octavia within rubbing distance of the Superb in terms of price and features. Such is it that those looking for ventilated seats could go for the Superb and those not needing them could for the Octavia!

With such fine differentiation defining the current crop of vehicles that make up the D-segment, a big shake down does not seem far away. It could be driven by regulations and market requirements for certain. Already dissuading many OEMs to drop their D-segment offering, regulations like BS VI have indeed been a big factor. The other has been the availability of SUVs at price points that correspond with D-segment sedans. A big plus concerning SUVs is the status and lifestyle image they present. The other is their ability to travel over rough terrain and provide good visibility due to the high seating position. Providing a sense of invincibility, SUVs seem to offer more than a D-segment sedan could, today. At the top, it has increasingly come under pressure from luxury sedans and other offerings from brands like Audi, Mercedes-Benz and BMW. Some of the entry-level products from these OEMs don’t cost a premium. Owning used luxury cars has also become easy as their volumes have risen. This too has put pressure on the existence of the D-segment without any doubt. W ith the Octavia taking a position within close proximity to the Superb, the future of D-segment, at best, looks tough. This, even with the talk of the new Elantra being introduced gaining force with every passing day. Unless Hyundai unleashes the Elantra with some novel trick up its sleeve, there’s not much left to talk about the once glorious D-segment. (MT)

 

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Renault India Announces Festive Offers

Renault India Announces Festive Offers

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 launches the XUV 3XO

Mahindra launches the XUV 3XO

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
Mazda CX-30 And Five Other Models Get Top Safety Pick+ Ratings

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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Fortress Of Solitude

Fortress Of Solitude

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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