Tuesday, March 30, 2010

Indian Hatch market - Victory of customer and liberalisation

The recent happenings in the Indian hatch car market is an example of what globalisation, liberalisation and the resulting competition can do for customers. The pricing of the newly introduced Chevy Beat and Ford Figo is a stark contrast to the days of waiting in the queue for sub standard value products like Ambassador (Whatever nostalgia people might have for the car, it definitely is not VFM at the pricing and features that it provides).
Three things that make me happy

1. The pricing is definitely value for money. Right from barebones to the top end version (LT and Titanium respectively), each price point is VFM. The top end diesel Titanium version of Figo will be sub 6.5 lakhs OTR. This is clearly due to competition and the need to beat incumbents like Maruti, Tatas and Hyundai.
2. These cars are not "dumb down" versions of cars made for western markets. These are made in and for India. And no, the designs do not cry out "Sorry India - we have made this sedate box for you in which we have put windows, chassis and a sub 1 L engine tuned for 15+ kmpl".
3. The top end versions come with ABS and Airbags. These safety features, pretty much standard across the west are atleast provided as optional in the top end versions. A significant shift in safety feature provisioning for Indian small car segment.

With VW, Nissan, Honda and Toyota too coming into the segment, we would have a bevy of beauties to choose from. (A sub 6 L German car in Indian roads - My grandpa, if alive, would never have trusted his eyes on this one. But yes, the Polo is here!)

1 comment:

talll.com said...

The issue here is, if an upper middle class person makes x per month in India, he will pay 10x for a car like that. but in US for example you pay, well, x? maybe 2x?