For India’s auto sector, the year 2011 wasn’t as hunky dory as 2010 was. Sales fell and SIAM slashed projections twice, unprecedented in recent memory. In October 2010, passenger car sales fell to their lowest levels in two years.
Impacted by high petrol prices and interest rates, car buyers made a beeline for diesel cars, dumping their petrol models in the used car market and delaying buying decisions. Dealers made enticing offers to customers who came looking for a petrol but that notwithstanding, diesel is still king.
For business, the slowdown is now a very real challenge. As per the latest IIP figures available, the manufacturing sector grew by just 5.9 percent in November 2011. That’s not a rosy picture even as the rupee has fallen to Rs 52.23 to the US dollar. But business is all about brands and their power to attract the customer and command a premium in the marketplace. Brands have their origins in good and enduring ideas.
Call it innovation or out-of-the box thinking, it’s the idea that comes first. So what were the ideas that mattered from an automotive point of view in 2011?
GOVERNMENT/POLICY
At a macro-level, the government’s decision, announced in the Union Budget, to have a hybrid and electric vehicles mission would seem like an idea whose time has come. It has the potential to reduce India’s overwhelming dependence on imported crude in the long term. At present, India imports 70 percent of its crude oil imports and with nine fuel price hikes since June 2010, this is an ambitious but worthwhile plan.
How this idea can be made a reality is the question — can we put in place the right infrastructure and people to see it through? That’s what policy makers and the automotive sector must apply their minds to. The auto industry is looking forward to the government to take its earlier stated mission forward in the Union Budget in March or in the 12th Five-Year Plan. So far, very little is known except for the fact that Union industries minister Praful Patel is putting the finishing touches to a document that should, hopefully, see the light of day soon.
PRODUCTS
• Hyundai launched a baby hatch, the Eon which takes it into the competitive compact market. Sales zoomed to 6,815 units in the very first month and crossed the 7,000 mark in the second. This product has the potential to challenge market leader, Maruti, but it’s still early days.
• Mahindra & Mahindra has launched a global SUV, a good idea but its true test may be in the hurly burly of international competition. Last month, M&M upped production and prices but for a long time now, the XUV500 represents an exciting idea.
• The Force One made its debut riding on the vision of Force Motors’ gen-next management. With a new logo and exclusive marketing department, and the Big B as brand ambassador, it’s Force Motors’ brave new idea.
• Small is beautiful and the Ashok-Leyland -Nissan joint venture product, Dost with Nissan engineering under the hood is another good idea.
BRANDING
What’s in a name? Much if you are the world’s largest truck maker in the world. Mercedes-Benz’s top honcho Dr Dieter Zetsche flew into Chennai to kick off Daimler’s plans for India and to unveil a stunner of a name in ‘BharatBenz’. Not for the company the sophistication of the city slicker, it appears. The company will launch products from six-tonners to 47-tonners in an attempt to gain leadership in India. For now, the very name chosen to christen the range is a winner.
EVENTS
One great idea, one brought to fruition, in a sense, was the staging of India’s first Grand Prix at the Buddh International Circuit in Noida. Widely attended, it was a grand success from an organisation point of view, a feather in India’s cap. Sebastian Vettel won the race, topping off a cracker of an event. The spin-offs go far beyond the entertainment aspect with auto suppliers now looking for business deals in F1.
NEW BEGINNINGS
At a company-level, the Hero Group, which completed a year of it parting ways with the mighty Honda, unveiled a brand new logo and spent a pretty sum to announce Hero MotoCorp's arrival on the world stage but that’s just the beginning. In 2012, we should be witness to its idea of Hero.
ADVERTISING
In the advertising sphere, Ford India’s campaign to give cars to prospective buyers who own a rival brand has attracted considerable attention. And Fiat India launched a campaign that promised buyers a diesel car for the price of a petrol in an attempt to boost sales of its cars.
TWO-WHEELERS
Visteon India showcased production-ready technologies for two-wheelers. Visteon’s Growth Market Bike displayed key innovations for headlamps, tail-lights and engine management systems, all targeted at the mid-level segment which is engine specs in the 135-150cc range.
Meanwhile, SKF aims to supply stop-start technology for two-wheelers with StopGo, an automatic system for bikes and scooters. The company claims it saves fuel and lowers carbon-dioxide emissions, so good for the environment and for the buyer’s pocket too.
Stop-Go trials have been conducted in premium Indian bikes and the first Stop-Go-fitted bike is expected to roll out in the first half of 2012.
BUSES
Tata Motors developed a CNG-electric bus that was displayed at the Madrid Exhibition, FIAA. Among the product’s many benefits, apart from the obvious ‘green' benefit of fuel savings, is its versatile energy management strategy that can be tuned for specific customer requirements.
On to 2012 and hopefully new ideas for public transport, vehicle safety and fuel efficiency. This list is by no means exhaustive and we at Autocar Professional would like to hear from you about new products, ideas and innovations that your company is working on.
Brian de Souza