Auto Expo 2010: The India Show

Every major automobile manufacturer in the world showed up at the India Auto Expo in New Delhi. The air was thick with dreams, ambition and promise. What was on display at the stalls was amazing but best to take it with a pinch of salt because the devil lies in the execution.

Auto Expo 2010 was different in more ways than one. People who have been here in 2008 and before, are surprised by the turnout — in terms of participating auto and component manufacturers, global media attention and also visitors. For most of the five days Pragati Maidan has been packed. Comparisons with the Detroit Auto Show (which is on currently) have been drawn, and many corporates and journalists agree that India is a far more exciting place to be. That’s primarily driven by the optimism.

There are many cars, buses and trucks that have been launched at this Expo — either as concepts or ready-for-production vehicles. But to my mind the best way to understand this ‘automobile mela’ is to get to the intent behind the vehicles that have been showcased. There is an unmistakable streak of ambition in the minds of various companies; and how well they execute their plans will determine the fate of the automobile sector in India.

General Motors
At Lake Hanger, Stall No. 4, the troubled auto maker’s Indian subsidiary, General Motors India (GM), is hoping to strengthen its position in the small car segment with its new offering — the Chevrolet Beat. The pricing is right into Maruti Suzuki and Hyundai territory. All versions of the Chevrolet Beat have been priced below Rs. 4 lakh (ex showroom, Delhi). With rear door handles neatly recessed into the mirrors, the Beat has a sporty, two-door feel to it. And Chevrolet has a very lucrative offer in terms of features and safety. At Rs. 3.94 lakh (ex-showroom Delhi), you can buy a Beat with dual airbags, anti-lock braking system (ABS) and automatic climate control — a worthy competitor to the Hyundai i10 and Maruti Suzuki’s range of small cars, the Alto, A-Star and the Ritz. Also on display at the Chevrolet stall, was the much-talked-about Chevrolet Volt, General Motor’s electric car, which looks stunning, and which, the company is hoping, will revive its fortunes in North America.

Renault
Right next to the GM stall is the Renault stall. Renault’s aspirations of making it big in India with its sedan ‘Logan’ in a joint venture (JV) with Mahindra & Mahindra never really took off. This time around Renault is going it alone and banking on ‘Fluence’, a sporty looking sedan which is expected to be launched in India by 2011 along with the Koleos sports utility vehicle. The cars look great but Renault has a lot of homework to do before the roll-out in terms of brand building, creating a pan India network and the coming months will see a lot of action on that front.

Carlos Ghosn, chief executive officer of Renault has clearly stated his ambition of making Renault the global leader in electric cars and the Twizy electric compact car at the Renault stall was a testimony to that ambition. Powered by a 15 KW engine, the Twizy can seat two people and is designed for urban commute. Expect the concept vehicle to be in production by 2011 for developed markets.

Tata Motors and Jaguar & Land Rover
One place where you could see a lot of promise was the Tata Motors and Jaguar & Land Rover pavilion. We have been hearing about the Indica EV for sometime now and it felt nice to see the car in the flesh. There’s a lot of work going on at Tata Motors in the alternative energy space, especially with the Indica and the Nano in the passenger vehicles space. The launch of the Indica EV in Norway and Denmark this year is significant for the company and one can hope that if ever India is ready for electric cars, so will Tata Motors be. Then, there was the Tata concept sedan ‘Prima’ designed with Pininfarina. This is a very good looking car with twin exhausts and has a lot of potential for production. This car can also strengthen the company’s position in the sedan space which is now lack lustre despite the Tata Manza and Indigo.

In many ways, Jaguar, owned by Tata Motors, has redefined the luxury car segment with the launch of the all new XJ. It is clearly the best looking car in the segment dominated by the BMW 7 series, Mercedes S class and the Audi A8. The Jaguar XJ was premiered globally in London in July 2009 and deliveries will begin later this year. In an effort to strengthen its position in the SUV space, Tata Motors has also launched the ‘Aria’, a cross-over between multi-utility and a sports utility vehicle. Tata Motors’ current line up in the space includes Safari and Sumo Grande. The Aria is expected to be launched in the second quarter of 2010.

Toyota
At Hall No. 6, there was a clear sign of India ambition from the two Japanese heavyweights, Toyota Kirloskar Motors and Honda Siel Cars India.

The ‘Etios’ concept from Toyota is going to be the company’s first offering in the compact segment in the country. Lined up are the Etios concept hatchback and sedan versions for launch later this year. A lot is riding on these cars for Toyota’s growth in India and the price will be a big factor. A must-mention is the launch of the third generation Toyota Prius Hybrid in India; a car which has been a rage in North America ever since the launch of the first generation Prius. But with a Rs. 25 lakh plus price tag, it remains to be seen if this success can be replicated in India.

Honda
Honda made it clear that the company wants to step up its presence in India by entering the small car segment. The only good thing about Honda’s intent was the good looks of the ‘new small car’ concept. Company officials claimed that the small car is expected to be launched simultaneously in India and Thailand by 2011. If they are serious then purely from a customer point of view, it will be great to have the Honda reliability, good looks and fuel efficiency in the small car space. If not, then honestly, few will miss it.

Honda Motorcycles India
I personally believe that the occupants of Hall No. 7 at the Auto Expo 2010 will redefine the future of the two wheeler industry in India. In terms of entry level, commuter motorcycling, Honda Motorcycles India’s (HMSI) offering, the 109 cc CB Twister, is the perfect combination of all affordable, sporty and fuel efficient bikes in the country. In the coming months, it will be interesting to see how the Twister takes on the Splendor and the Discover from Hero Honda and Bajaj Auto respectively.


Harley Davidson
In another corner, Harley Davidson, the iconic heavy weight motorcycle manufacturer, is all set to begin its India ride. The bikes, priced in the range of approximately Rs. 7 lakh to Rs. 34 lakh, seem to be a good entry point for the company.

An interesting trend at this year’s Auto Expo was the enthusiasm of new players like Mahindra & Mahindra in JV with Navistar and Volvo Eicher commercial vehicles marking their entry into the heavy commercial vehicles segment in India. Was there any competitive edge on display as far as comparisons with Tata Motors or Ashok Leyland is concerned? I am not so sure, except that the new entrants firmly believe that with technology leaders on their side like Volvo and Navistar, the Indian commercial vehicles market has the potential to accommodate at least four large manufactures.

Surely, 2010 will be an exciting year as far as heavy commercial vehicles are concerned. The rest at Auto Expo 2010 was BAU — business as usual; the media fighting for press kits, photographers clamouring for front row seats, stars and VIPs making short trips to endorse their brands or launch vehicles, manufacturers talking up ‘clean and green vehicles’, Delhi-ites gate-crashing the stalls and exhibitors protecting their goods.