Volvo Estimates a Three Fold Growth for India’s Luxury Car Market by 2015

India has one of the fastest growing car industries in the world and everybody knows that India is a price-sensitive market where low-priced compact cars are very popular. However, according to Volvo Car Corp., India’s luxury-car market will be tripled by and would account for 1.5 percent of the whole car market by 2015.

This seems to be a surprising statement by Volvo India’s managing director Paul de Voijs, but he has his logic behind it. He thinks that there are lots of rooms for growth for the luxury cars in India. Moreover, Capgemini SA and Merrill Lynch Wealth Management, the number of millionaires in India could be tripled by 2018 thanks to India’s surging economy.

India has the second-fastest growing economy in the world after China and naturally the number of rich people in the country would continue to grow. This is where lies the possibility of growth for the luxury cars in India. Companies like Volvo, Bayerische Motoren Werke AG and Daimler AG are planning to launch luxury cars in the country very soon. In fact, Volvo has plans to introduce two luxury cars in India by 2011 and one of the models would be available in Indian market in the first half of the current year. So, it seems that the price-sensitive tag of India’s car market would not restrict the big companies to enter into the Indian market with luxury car models.

Related article:

bloomberg

India Emerge as the Largest Market for Super-compact Cars

India has overtaken Japan as the largest market for super-compact cars. Around 900,000 small cars are expected to be sold in India this year. The market is growing as except a small portion of population, most people in the country still do not own a car. The dream is there for the urban people. All the major automakers have set up production facilities. They invested a lot of money with the anticipation that the market will grow for foreseeable future. Their prediction is correct and they also invested rightly in the small car segment.

India is not a rich country and here, many people cannot afford cars more than $10,000. So, to match with the price, the size is always small. Economic recession caused the car market in Europe and USA to suffer a lot and car sale decreased in most of the rich countries. The new opportunity lies in Asia. China and India are now most attractive auto markets in Asia. 

India: 34% More Cars Sold in October 2009

This is good news for everyone related to the car business in India. Because of economic recession, 2009 had not been a great year for them. However, now, it seems that things are going to become better and brighter as the worst of the recession is over. Well, October was the month of festival in the country but we have to remember that this 34% increase happened compared to October 2008.

Economic Times reported:

Car sales clocked a 34% jump on-year to sell 132,615 units while 42,562 light and heavy trucks rolled out of showrooms, according to data released by industry body the Society of Indian Automobile Manufacturers (SIAM).

Truck sales, which had been in the red for most part of the year, had started showing signs of growth in July, but the October performance has brought fresh cheer to policy makers who count it as a key indicator for improved industrial activity.

Hopefully, the market will grow more as there is huge potential for growth for at least for the next one decade. However, I am just concerned about the environmental impact because the large cities are already polluted. More cars will only worsen the situation.

In another note, I wrote about Free Car media in USA in which car owners can get some extra cash by painting their cars with advertisements of companies. I wonder if the same concept can be introduced in India. 

Maruti Suzuki Upbeat about Future Car Sales in India

Maruti Suzuki is the top player in Indian car market. The main reason it is the leader in the country is the matter that it understands Indian consumers very well. That is why, it always focused on making inexpensive models that became very popular. Recently, TATA came in the market with Nano but could not move Maruti Suzuki from the top spot. Now, many people in India are worried about the possible negative impact of lack of rain in this rainy season. Most people in India are depended on agriculture directly or indirectly.

Shortage in rain fall means there is real fear of shortage in production of agricultural commodities. It is bad news for Indian economy. However, Maruti officials are confident that the drought will not have serious impact in Indian economy and there should not be any big problem about auto sales in the country.

REUTERS reported:

Maruti, 54.2 percent owned by Japan's Suzuki Motor Corp (7269.T), earns about 15 percent of its revenues from the rural market, a segment it plans to expand in, but a deficient monsoon this year could hit rural income and spending.

"So far, we have not seen any impact because this crop comes in November," said Mayank Pareek, executive officer of marketing and sales

"My guess is the effect will be there, but will be very marginal effect. If at all it is there, the first hint we will get in November," he said, adding Maruti was not reconsidering its plans to expand in rural areas.

I agree and disagree with this official. I think that drought may have bad impact on the Indian economy this year and farmers would suffer. However, the farmers are not the target group of Maruti. It is the wealthy people who buy cars in India and I don’t think they would suffer so much.

All about Skoda Laura: The luxury sedan

On May 22, 2009, Skoda India Pvt. Ltd. launched its latest luxury sedan, Skoda Laura, in India. India is one of the emerging auto markets. All the major automakers of the world, both Asian and European, are doing business in India. Skoda is famous for producing top quality luxury cars. Though India is a very price sensitive market, the company has been doing pretty well. In 2008, Skoda India sold 16,051 vehicles in India.

The new Skoda Laura offers a “perfect 10” driving experience. Skoda Laura is available in three engine variants- the 1.8 TSI Manual Transmission, 1.9 TDI PD in Manual & Automatic Transmission and 2.0 TDI PD in Automatic Transmission. Skoda is now gearing up for launching its next luxury model cross over vehicle Skoda Yeti in the second quarter of 2010.

Skoda Laura: Basic facts

• Name: Skoda Laura
• Length: 4569 mm
• Width: 1769 mm
• Height: 1485 mm
• Wheel base:2578 mm
• Ground clearance: 164 mm
• Storage capacity: 560 liter
• Storage capacity with rear seatback folded down: 1420 liter
• Tank capacity: 55 liter
• Turning circle diameter: 10.2 meter
• Kerb weight:
• 1.8 TSI/118 kw……………1305 kg
• 1.9 TDI PD/77 kw……….1310 kg
• 1.9 TDI PD/77 kw(A)……1335 kg
• 2.0 TDI PD/103 kw (A)… 1355 kg
• Gross weight:
• 1.8 TSI/118 kw……………1965 kg
• 1.9 TDI PD/77 kw……….1970 kg
• 1.9 TDI PD/77 kw(A)…… 1995 kg
• 2.0 TDI PD/103 kw (A)… 2015 kg
• Colors: Brilliant silver, arctic breeze, candy white, capuccino beige, and magic black.
• Alloy wheels: 15″ Pyxis, 16″ Lyra, 16″ Crateris.
• Trim levels: Škoda Laura Laurin, Škoda Laura Klement, Škoda Laura Elegance and Škoda Laura Ambiente.
• Engine types: New Skoda Laura is availabe in two diesel engines and one petrol engine.
• Cylinders: 4

Design:

The Skoda Laura is a luxury sedan and its design stands out from the rest of the cars in the market. In a crowded street, people can easily recognize Skoda Laura for its unique design. The new Skoda Laura sports a subtle aggressiveness without loosing its touch of elegance, thanks to its new chrome front grille and flared headlamp brows. The side mirrors of the new Skoda Laura are fitted with turn indicators which complement the cars look. The four 16″ alloy wheels coupled with strong shoulder lines just reveal Skoda Laura’s opulence. The bold swage line and thick lower sills and a smooth slopping roof line display stability.The C- designed tail lamp sports a chrome central insert. The one piece rear bumper, which accommodates two reflective strips, makes the car very unique and the running crease lowers the visual mass. The interior has top quality materials and contemporary design. The wooden design décor and ivory upholstery give a sense of richness and increases the sense of space. The chrome interior handles adds up to the overall style quotient of the car.

Other major features:

• On the front axle, the Skoda Laura has McPherson suspension.
• On the rear axle, the Skoda Laura comes with multi-element axle.
• The Skoda Laura has direct rack and pinion steering with electro mechanic power steering.
• The Skoda Laura comes with xenon curve projector headlights which offer high visibility around turns.
• The Skoda Laura has parktronic sensors integrated in the front and rear bumpers that warn the driver of possible obstacles in the front and rear spaces while parking the car.
• The Skoda Laura has Tyre Pressure Monitoring System (TPMS) which continuously checks the air pressure in the individual tires and provides warning of pressure loss in any of the tyres.
• The Skoda Laura has six airbags including dual front airbags, dual side airbags (front), dual curtain airbags at front and rear.
• The front seats of the new Skoda Laura are equipped with “Whiplash Optimised Head Restraints” to reduce neck injury in the event of an impact from the rear.
• The rear view mirrors of the new Skoda Laura are equipped with photo sensors which can detect the intensity of light coming out from other vehicles and reduces glare.
• The Skoda Laura comes automatic headlight system with light sensors that adjust the lights of the car in low light conditions such as tunnels, basement parking etc. It also reduces driver fatigue and increases safety.
• The Skoda Laura has retracable headlight washers that spray high pressure jet of water to clean the headlamp lenses and maximize the intensity of light.
• The Skoda Laura has Anti Lock Braking System (ABS) to prevent the vehicle from skidding and maintaining driving control.
• The Skoda Laura has Anti Slip Regulation(ASR) to prevent the driven wheels from slipping by reducing the engine output.
• The Skoda Laura comes with Electronic Differential Lock (EDL) which maintains the vehicle’s stability while driving on roads that are partially wet or gravel.
• The Skoda Laura has Electronic Stability Programme (ESP) to control the car’s driving dynamics.
• The Skoda Laura comes with Mechanical Brake Assistant (MBA) and Hydraulic Brake Assistant (HBA) that ensure maximum pressure on the braking system in case of a critical braking situation.
• The new Skoda Laura has engine immobiliser with floating code system that changes every time after the car is switched off.
• The new Skoda Laura comes with security code for central infotainment system.
• The new Skoda Laura has remote controlled unlocking of doors and the boot lid.
• The new Skoda Laura has remote controlled opening and closing windows.
• The new Skoda Laura has 12 way electrically adjustable driver seat.
• The Skoda Laura has drive seat with three programmable memory functions.

Price:

The price of Skoda Laura ranges between Rs.1.267 million and Rs.1.715 million.

Here is a price list I collected from a website:

Variants	Delhi	Maharashtra	Chennai	Kolkata
1.8 TSI Ambiente	Rs. 12,98,767	Rs.12,67,711	Rs.12,96,645	Rs.13,07,257
1.9 TDI Manual Ambiente	Rs.13,30,681	Rs.12,98,999	Rs.13,28,559	Rs.13,39,171
1.9 TDI Automatic Ambiente	Rs.14,03,102	Rs.13,70,000	Rs.14,00,979	Rs.14,11,591
1.9 TDI Manual Elegance	Rs.14,69,844	Rs. 14,35,434	Rs.14,67,721	Rs.14,78,333
1.9 TDI Automatic Elegeance	Rs.15,40,801	Rs. 15,05,00	Rs.15,38,678	Rs.15,49,290
2.0 Automatic TDI L&K	Rs.17,55,440	Rs.17,15,541	Rs.17,53,317	Rs.17,63,929

For more information you Skoda Laura visit the following link:

http://www.skodalaura.co.in/

Related articles:

Skoda Laura official website

Wikipedia-Skoda

Zig Wheels

Auto Tantra.in

The Economic Times

The Hindu Business Line