Automotive Blog

Renowned automobile companies are planning to launch high-end models of bikes in the fast growing Indian market. They are confident that their offerings will be lapped up by bike aficionados. The Managing Director of Bajaj Auto says that those who go for high-end bikes want power and performance and those who are looking for fuel efficiency can go in for the low-end bikes. Bajaj Auto Company has made an agreement with Kawasaki Company of Japan to distribute Kawasaki’s bikes in Indian market. According to the agreement, Bajaj will bring Kawasaki bikes for distributing them through its exclusive probiking stalls. The new comers are: The Sports Road Star ER-6n, the Super Sports Bike Ninja ZX6R, The Ninja 250 and the Vulcan Cruiser Z1000. They are supposed to be available in Indian market in this year.

“Ninja 250” is supposed to be introduced first. Actually this is designed for US, Europe, and Japan. This is powered by an 8-Valve, DOHC, liquid-cooled, 250cc fuel injection engine.

KTM power Sports AG is introducing the 690 Supermotto, superior street bike the 690 Duke, the powerful 990 Adventure, the light 250 EXE-F and ultra-precise performer 990 Superduke. Yamaha has planned to invest Rs. 800 Crore in its sale network. This company is trying to resurrect its brand image with the launch of other premium 1000cc plus bikes through the import route. The company has already launched its Super Sports YZF-R1 (1000cc) and Torque Sports MTO1 (1670cc) in India.

Suzuki Motor Company has planned to assemble 400-600cc bikes in India which can see the prices coming down to Rs. 4-5 lakh. The only manufacturer of 500cc bikes in India is Royal Enfield. It has produced the Bullet 350, the Bullet Electra, the Bullet Electra 5S, the Thunderbird and the Machismo 500.

In a recent report by UNIDO International Yearbook of Industrial Statistics 2008, India ranks 12th in the overall standing of worlds top automakers. The emerging giant also ranks 4th behind Mexico, Korea and Iran among developing countries.

Not surprisingly so, what with India also leading the increase in numbers of millionaires that exceeded 100,000 at last count. Indian millionaires club is growing at an astonishing rate of 21 percent per year. These affluent people are also ready to show their wealth by way of sporting high end apparel brands and driving the latest luxury cars coming out of Mercedes-Benz, BMW, Audi, Porsche or Jaguars stable. In fact Indian auto industry has become the engine of world auto market growth with a consistent rate of 12 percent. The high end or luxury segment is growing at even higher rate and is estimated to grow above 100 percent this year over previous year.

For long, the German trio of Mercedes-Benz,BMW & Audi has dominated the luxury car market on a global scale and its not different in India either. Mercedes has opened shop in India way back in 1996 and been numero-uno till now. But it is now facing stiff competition from its traditional rivals - BMW & Audi. They are matching Mercedes model for model and even the highest end Mercedes Mayback (that cost Rs. 15 million onwards) is not safe. Of course it is the entry level luxury models like C Class, E Class of Mercedes, 3 Series, 5 Series of BMW and A4 of Audi have been selling like hot-cakes.
The rapid growth of the luxury segment is also attracting other players like Lexus, Porsche, Jaguar or even high end sports cars like Ferrari, Lamborghini, Bugatti and other smaller brands who plan to sell exported cars because their sales is not yet big enough to set up an assembly line here.
So I am expecting to see a Ferrari whiz past me anytime soon or a young couple going on tour with their sports BMW.

Each and every year - my friend comes over from London to go around India. It has been going on for the last 17 years and every year we face a big problem - that is finding a car on hire!

Basically, we are not interested to see monuments or forts. What we strive for is to see the real India - its people, villages, fields, nature and so on. As India is big, we have to take either trains or flight to go from one corner to another. But the problem arises when we want to have a look around a particular area the way we want to - to drive slowly through the mud road and enjoy the serene environment of rural India.

My friend has to visit lots of countries in Europe and America as his job demands it. Once in a while, when he gets some spare time he just searches the internet ( viz. car hire Spain or car hire France ) - books his tickets and the car is delivered on his hotel door. He then can go anywhere he wants and leave the car there without worrying about returning the car.

Here lies the difference or should I say shortcomings of car rentals in other countries and in India. True, one can hire cars even in India. but Indian companies do not offer the freedom other countries offer. One has to take an accompanying driver with the caror have to return the car to the pick up point.

There might be several reasons for this kind of drawback that the market is facing despite it having huge potential. A car is still an exclusive domain of affluent people in India whereas every 1.5 people in Canada own a car. So car hijacking or theft is rampant in this part of the world. Also, bigger companies are not yet in the market thus the network of a car hire company is too smal unlike international network of car hire companies in Europe or Americas.

Hopefully , someday in the near future, me and my friend could land in Kochi, hire a car, drive through to Bangalore, leave the car there and again go to another destination. With booming economy and introduction of the world’s cheapest car “Nano” by Tata Motors, Indian car rental market will soon catch up with other countries like all other services sector in India is doing. This will also give boost to its tourism.