Another night's sleep messed up by the great Times of India (note sarcasm). I was just about to head of to sleep after surfing for a little bit, but i came across this ridiculous Article. I am not sure whether it was my nationalistic feeling as a Indian consumer or the nonsense that got me riled up. In anycase, i just had to rant.
The article aptly named "Hot Wheels to zoom Indian Roads", starts of on how this year might just be a turning point in the Indian car market and turn around the fortunes of many companies, with the introduction 20 new cars in to the market. Mentions how the new Suzuki Swift, the introduction of Audi and even Hummer is going to revolutionize the market.
An analyst from a "Synovate Motor Research" is quoted explaining how consumers are shifting from buying sedans as show off symbol to buying more basic but expensive compact cars. Mentions how even though Indians base their decision on fuel efficiency and price, their decision making is changing. They go on to quote Jagdish Khattar (Suzuki India MD) telling them how many Honda City owners have come up to him and expressed their desire to exchange their "cities" for the new Suzuki Swift.
They also quote a dealer for Bentley in India, saying with Indians getting to know about newer technology abroad, they are not settling for anything less.
To be fair the article does make a point regarding the fact that the per-capita GDP in India is only $650, and yet brands such as Porsche, Ferrari, MayBach and Bentley are finding buyers for their cars, launching local operations. Goes on to argue that since the younger population is getting more expendable income, there is a influx of luxury brands. The article then ends giving information on the new cars being launched and their prices, the Porsche 911 for Rs. 75lacs ($170,000 aprx) or the Hummer for Rs. 65lacs ($130,000), the Hyundai Tiburon (never heard of it, or its price), the Audi A4 for Rs. 24lacs ($51,000 aprx) etc.
Its understandable that there is excitment regarding the launch of new models in India, but what really gets me riled up is that no one realizes that we Indians end up with the short end of the stick. Sure, there are import restrictions and what not and many technical reasons for cars being expensive in India but still nothing justifies selling the most affordable cars world over as high luxury cars here in India. Unless, the car companies take us as fools, who don't realise that we shouldn't be paying extra for basic amenities such as A/C, power-steering and air-bags. Or that we are so blind that we don't realise that we pay $32,000 (14lacs approx) for a Hyundai Sonata which is actually sold for $13,000 (6.16lacs aprx) nearly everywhere else in the world. And for that same price we could buy a high end Acura TSX (Honda's luxury brand).
Getting to the article, i have never heard of that particular research group before, might be a good one. But, i beg to differ from their opinion, that more Indians are willing to buy expensive compact cars. If this is really true, we seriously are the most gullible car-buyers in the world. Suzuki Swift may be a really good car, but the thought of trading in a Honda for a Suzuki really puzzles me. Why would anyone want to do that, unless they have suffered financial setbacks, but hey this just my opinion.
Quoting a Bentley dealer is not really a good source of information seeing that Bentley is supposed to sell less than 20 cars in India this year. And if we Indians are seriously noticing the technology available abroad, we need to the see the price at which its available also. Since, we still have to shell out extra for even the most basic things. It is puzzling to see that having the A/C , power windows,steering is seen as a luxury, especially the A/C after all this is India.
As i said before, to be fair the article does raise the point of not many Indians being able to buy all these cars, but it goes on to negate itself. As it argues that since the younger population has more expendable sources of income, therefore we are seeing a rush of expensive brands in India. That is the largest load of crap i have ever heard. In India, we have a thing called Income Disparity, where the rich are really rich and the poor are really poor. And the only 'younger population' that can afford cars such as Ferraris and Porsches are people who's names end with 'Roshan' or 'Tendulkar'(the article mentions them). There might be millions of car enthusiasts in India, but they will only get to look not drive.
Having small cars in India makes sense, due to the cheap price, fuel efficiency, but its about time that we get more wise to how badly we are being played. Sure, there are loads of technicalities due to which we pay more for everything, but for how long? Its not just the price, its also about being fair and responsible. Basic amenities such as air-bags are not given, especially at a time when more and more people are buying cars and we record the most road accidents in the world. We really need to get more vocal and a get a fair deal. I could go on arguing but i am sure it falls on deaf ears.
(Its really early in the morning so forgive the bad grammer and spellings, will fix them later)
HI Jatin
When my folks got the wagonR..( and they got it because that was the cheepest small car in town) it actually advertised seat belts as a safety feature!!:O and that too after the seat belts were made mandatory in Mumbai.:|
But I am still waiting for my luxury Kia..:( do u think there is a market for that? maybe we can get saarook to endorse it.. or amitabh..
Posted by: Sqrl/NT | May 30, 2005 at 04:55 PM