The effect of the Budget on automobiles has been discussed in other forums but here is the buzz on the street and in dealer stockyards
Veeresh Malik
Discounts on luxury cars, like BMW 3 Series/Mercedes ‘C’ class/Audi A-4, continue to score in double-digit percentage points. With the added advantage of ‘unpopular colours’ and a ‘new version’ of the BMW 3 Series in the offing over the next few months, even higher discounts can be obtained. However, with competition from Hyundai’s new Sonata, price re-jigs from Volvo and murmurs of better discounts in the months to come, this is one segment which may well move out of what is known as luxury.
Meanwhile, the prices of two-wheelers and smaller cars continue to rise, either as an effect of hikes in service tax and excise duty—from raw materials onwards or from increase in the cost of raw materials themselves. This pre-Budget period did not witness the massive lift-off of stocks that was expected and, as a result, inventories appear to be piling up again for most cars and bikes which are not on the short- supply list.
The Maruti Swift, Hyundai Verna and even some basic people movers, like the Mahindra Bolero and GM Chevrolet Tavera, continue to astound market watchers with their demand. Here it is pertinent to point out that the past few months have seen an increase in export orders and actual exports in these categories, which are not being reflected in reports as yet, for vehicles which could best be called ‘non-luxury rugged’. For some unknown reason, there appears to be some delay in providing figures from seaports on actual movements of exported vehicles.
And, of course, the many new methods to try and squeeze more out of customers in the post-sales and service scenario go from bad to worse. Apart from the ever-prevalent racket of replacing the complete immobiliser + steering lock + all keys if just one key goes bad or adrift (which has already been reported on), and the high security number plate racket about to reach a town near you, comes this new one—an attempt to replace air-bags ‘compulsorily’ on a friend’s car which had done just four years and about 40,000 event-free kilometres.
On another note, will the rail Budget and the aviation scenario impact automobile sales in India? Put it this way—air fares have gone through the roof and tickets for the upper classes of rail travel are often not available. Taxis cost an arm and a leg in most parts of India, and public transport is still poor in many parts of the country, while cities have gone up in size by leaps and bounds.
Are people driving cross country more than they were before? Is it also for work, not just for holidays? Anecdotal evidence would suggest that this is the case, though luxury buses of all sizes and shapes appear to predominate, with people movers of the Toyota Innova variety running a close second. I would love to hear from readers on this subject
Helmet Rule: Who benefits?
The controversy about helmets rages on. It appears that state governments are unwilling to implement the helmet rule. If they do, it is only selectively; for example, women are exempted in Delhi, only on NH-17 in Goa and simple defiance in Pune. What is behind this is unknown. One school of thought is that helmet manufacturers stand to gain most from this, if the law is implemented, across the nation. This is denied by helmet manufacturers who claim that as long as helmets are ‘optional’ users seek out genuine ones. The moment they become compulsory, the fakes predominate, and genuine sales come down. This, too, is correct.
One thing is certain—the cost of damages caused due to non-implementation of the helmet rule is very high. Not just on the unfortunate victims and their families, but also on the rest of society who pick up the tab for diversion of already scarce medical resources, higher insurance costs and more.
It is about time insurance policies and payouts were made co-terminus with the usage of helmets—by both rider and pillion; otherwise, no policy and no claim settlement. And, as for scarce public health services being diverted to save people with head injuries or worse due to helmet-less habits, an open, free and frank debate is needed; as I observed in Goa, where nightly, the wail of ambulance sirens heading out to pick up another two-wheeler crash victim is becoming increasingly common.
Nissan: A car smaller than micra? There is a buzz in the air that Nissan may launch a car smaller than the Micra in India, under the old Datsun brand, a very strong favourite of expat Indians of a generation ago. All very good, but the stronger buzz is that, for the Indian market, Datsun may just be the same as the Maruti A-Star which also sells in the UK as the Nissan Pixo, and elsewhere as the Suzuki Alto. Which brings us back to luxury cars.
With the bottom having fallen out of the Chinese luxury car market, manufacturers are trying every trick to notch up sales in India. As a result, and especially with the German trio of Mercedes-Benz, Audi and BMW, a host of lower-end cars are reaching the market with the luxury marquees badges. But the Indian consumer is smarter. Value for money kicks in with luxury too. Which is also why the Jaguar Land Rover collaboration with Chery Automobile of China, itself a GM (General Motors) clone, does not surprise anybody.
Car maintenance: The summer checklist
Come summer and it’s time to run some checks again, some time-tested. This is that time of the year when motor vehicles catch fire and the blame is placed on gas or fuel leak, but the original cause is usually electrical or overheating or both.
Most new water-cooled engines for cars don’t even have radiator drain plugs anymore, under the assumption that the closed loop system and new generation materials used will prevent formation of sludge and rust; so, the simple drain-flush-refill doesn’t work that well. However, the cooling capacity of older vehicles does come down substantially and a simple replacement of coolant is not enough; so some expert assistance is required, if you have to clean the radiator. Depending on the make, model and age, you may need to flush the radiator; and be warned—it is not all that simple anymore. If you spot brown rusty liquid or an oily scum floating in the radiator’s overflow tank or through the radiator cap, then head for a radiator specialist.
Running a simple test on the fusible link used to be enough to get started on most electrical problems in older cars until about a decade ago. Pull the fusible link out, and if everything did not work, half the trouble was over. Now, unless it is an upper-end model, where the garage can use proprietary software loaded into their laptops to run diagnostics, you will need to check the circuits fuse by fuse. Any circuit that has been made ‘direct’ or requires a higher amperage fuse needs to be re-checked. If there are any add-ons which were not part of the OE (original equipment), analyse again, especially for high power-consuming accessories. And most of all, check the electricals for the air-conditioners, well in advance.
And, finally, the good old thermo-cool on the roof option is for far better retention of cooling. At about Rs10-Rs15 per square metre, using ordinary double-sided duct tape, fix the thermo-cool to the inside of your car’s roof. Yes, it won’t look pretty—maybe you can paint it. Leave holes for the lights. Watch the effect, once the air-conditioner is turned on.
Good luck, by all accounts, this summer is going to be a scorcher.
Veeresh Malik started and sold a couple of companies, is now back to his first love—writing. He is also involved actively in helping small and midsize family-run businesses re-invent themselves.
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