Forget about a slowdown in the economy for a moment and brace up for a series of luxury car rollouts. The segment is going to see a host of high-voltage luxury sedan and SUV (sports utility vehicles) launches in the domestic market, to spoil you with choices at price tag of Rs 10 lakh to 20 lakh.
And stepping on the gas first is Honda, which is all set to introduce the new version of its discontinued sedan Accord — packed with new features. And don't expect that the present negative sentiment would mean a lower or equivalent price tag, compared to the one that has been phased out. Luxury comes at a price and Honda is expected to jack up the cost for the new features and the additional power, given in the new model.
Next in the line is Toyota, which is bringing its new 'Corolla'. The gen-next Corolla has already been rolled out in various markets and is likely to be launched in India soon, though company officials refused to confirm. The new Corolla will add spice in the premium segment and help Toyota give competition to Honda, that dominates the segment with its 'Civic' model.
Volkswagen, Mitsubishi and Hyundai are also lining up new launches in this segment. Hyundai is planning to get 'Avante' to replace its 'Elantra' model that is not doing well. The company managed to sell a poor 203 units of Elantra in 2007-08 and the replacement with Avante is expected within next few months.
Hyundai will also roll out 'Santa Fe', its globally successful SUV. The 2.2-litre common rail diesel model will be launched later in the year and could replace the 'Tucson' model. European car major Volkswagen, that is aggressively expanding in India, also plans new launches to increase its offerings. VW, that currently sells the luxury 'Passat' and the SUV 'Touareg', will introduce its 'Jetta' sedan in both petrol and diesel variants at a price range of Rs 13-16 lakh. It will also roll out super luxury 'Phaeton' this year, which would be imported and cost upwards of Rs 50 lakh.
"Income and wealth is growing in India and more and more people are now buying luxury cars," a senior VW official said, adding, the current negative sentiment would not impact new purchases. VW is expected to launch its iconic 'Beetle' model in India this year sporting a price tag between Rs 15 lakh and Rs 20 lakh. And there are more. Mitsubishi will launch its 'Outlander' SUV in August this year at Rs 15-20 lakh price bracket to get a foothold in the segment.
Peter Kronschnabel, president, BMW India, which also has some plan for this segment, said the premium car market would grow and there are no reasons for growth to slow down.
Monday, April 21, 2008
BMW 'Mini' not coming to India in '09
For those of you who have been waiting to lay hands on BMW’s iconic premium small car ‘Mini’, there is bad news.
The German auto major, which had announced plans to roll out the car in India in 2009, has postponed the launch, saying the market "does not appear to be viable".
"We will not be launching the Mini in India in 2009," BMW India president Peter Kronschnabl said.
The company has just finished a feasibility study that pointed out that conditions were not conducive to bring the model to India soon.
"We have taken the decision about a week back," Kronschnabl said, though adding that the decision does not mean an end to Mini’s India launch.
"We have not abandoned the plans altogether. But yes, we have certainly postponed as conditions do not appear to be viable at the moment," he said.
The high-performance Mini is an iconic brand globally and despite its small size, it carries a price tag comparable to premium cars. Originally a British car brand, it was bought over by BMW.
The German auto major, which had announced plans to roll out the car in India in 2009, has postponed the launch, saying the market "does not appear to be viable".
"We will not be launching the Mini in India in 2009," BMW India president Peter Kronschnabl said.
The company has just finished a feasibility study that pointed out that conditions were not conducive to bring the model to India soon.
"We have taken the decision about a week back," Kronschnabl said, though adding that the decision does not mean an end to Mini’s India launch.
"We have not abandoned the plans altogether. But yes, we have certainly postponed as conditions do not appear to be viable at the moment," he said.
The high-performance Mini is an iconic brand globally and despite its small size, it carries a price tag comparable to premium cars. Originally a British car brand, it was bought over by BMW.
Auto majors plan company-run showrooms to drive car sales
To carve out a niche in the competitive Indian automobile market, auto firms are setting up brand experience outlets for consumers. Carmakers, in line with international marketing practices, are opening their own showrooms and studios to display latest models, technology, vehicle architecture and interior design to bring in new level of experience for customers.
Traditionally, automakers have banked on a dealer network for their distribution as well as for showcasing the products. In India, such brand experience centres are used by electronics firms to showcase gadgets, which also doubles up as a sales outlet.
The facilities owned by companies will offer actual and virtual test drives, along with customised car solutions to influence customers’ buying decisions and generate sales. Taking the lead is the leader in passenger car market, Maruti Suzuki, which is opening its company-run showroom in South Delhi. Modelled on the lines of its Japanese parent Suzuki’s international branding stores, the firm will expand such showrooms in other major cities.
The new showroom will start functioning later this year and showcase its existing range and future cars — A-Star, Splash and Kizashi — along with international line-up of Suzuki’s business vans and concept cars.
Maruti Suzuki managing director Shinzo Nakanishi told ET: “We are planning to invest heavily and start a new marketing set-up in India. We will have a new class of company-owned showrooms to showcase our current and future cars. It is part of the Rs 9,000-crore investment plans to overhaul the marketing set-up and have a new R&D centre.”
Maruti is not alone. German luxury automobile major BMW, after its success in India, is also launching its marketing concept in Delhi. It will start the BMW Studio to be located at Janpath in Central Delhi by June this year. Its 3,000 square feet facility will house all BMW marquees — Series 3,5,6,7 and the X-3, X-5 and X7 sports utility vehicles — besides its future products — MINI and Rolls Royce brands — for the Indian market.
BMW India president Peter Kronschnabl said: “It’s a major display centre for BMW cars with world-class experience similar to our headquarters in Munich. It will showcase our design excellence and unique cross-pollination approach to Asian markets. It is a major part of our branding exercise to bring people closer to our international range of cars and BMW technology concepts.”
Two-wheeler makers also have a similar gameplan. The largest two-wheeler maker in the world, Hero Honda, is also starting a new retail chain format similar to its arch rival Bajaj Auto, which has already started its branded ‘Pro-Biking’ stores in Delhi, Pune, Chennai, Mumbai, and other major cities.
“It signifies a strong brand status and is much more than just displaying the actual products. Customers will have a first-hand experience of the latest Honda technology, which goes into our products,” said a senior executive of Hero Honda
Traditionally, automakers have banked on a dealer network for their distribution as well as for showcasing the products. In India, such brand experience centres are used by electronics firms to showcase gadgets, which also doubles up as a sales outlet.
The facilities owned by companies will offer actual and virtual test drives, along with customised car solutions to influence customers’ buying decisions and generate sales. Taking the lead is the leader in passenger car market, Maruti Suzuki, which is opening its company-run showroom in South Delhi. Modelled on the lines of its Japanese parent Suzuki’s international branding stores, the firm will expand such showrooms in other major cities.
The new showroom will start functioning later this year and showcase its existing range and future cars — A-Star, Splash and Kizashi — along with international line-up of Suzuki’s business vans and concept cars.
Maruti Suzuki managing director Shinzo Nakanishi told ET: “We are planning to invest heavily and start a new marketing set-up in India. We will have a new class of company-owned showrooms to showcase our current and future cars. It is part of the Rs 9,000-crore investment plans to overhaul the marketing set-up and have a new R&D centre.”
Maruti is not alone. German luxury automobile major BMW, after its success in India, is also launching its marketing concept in Delhi. It will start the BMW Studio to be located at Janpath in Central Delhi by June this year. Its 3,000 square feet facility will house all BMW marquees — Series 3,5,6,7 and the X-3, X-5 and X7 sports utility vehicles — besides its future products — MINI and Rolls Royce brands — for the Indian market.
BMW India president Peter Kronschnabl said: “It’s a major display centre for BMW cars with world-class experience similar to our headquarters in Munich. It will showcase our design excellence and unique cross-pollination approach to Asian markets. It is a major part of our branding exercise to bring people closer to our international range of cars and BMW technology concepts.”
Two-wheeler makers also have a similar gameplan. The largest two-wheeler maker in the world, Hero Honda, is also starting a new retail chain format similar to its arch rival Bajaj Auto, which has already started its branded ‘Pro-Biking’ stores in Delhi, Pune, Chennai, Mumbai, and other major cities.
“It signifies a strong brand status and is much more than just displaying the actual products. Customers will have a first-hand experience of the latest Honda technology, which goes into our products,” said a senior executive of Hero Honda
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