The Indian car market is now flooded with models. And the small car segment is overcrowded enough to perplex the potential buyer. Fifth Estate tries to guide the car buyer in making the right decision.
Pretext: Brand new or a used car?
Of-course, used cars always give a money advantage. Try to buy the car from a company authorized outlet (it will cost more), or use help from an experienced mechanic to verify that the car is healthy enough (there are millions of ways of fraudulence in the used car marked). You may wish to read this: When you buy a used car in India.
1. Option one: The Brand.
One of the fastest growing car markets in the world, the Indian roads are now flooded with brands from around the world. From a mere three brands twenty years back, we now have numerous brand. All the major players are here. So how could a middle class buyer choose from this galore? And what really does brands mean in the Indian car market? Here are the answers:
Petrol or Diesel?
The most frequently asked question when you prepare for buying a small car in India is "should I buy a petrol or a diesel"? The tempting reason that attracts people towards diesel is of-course the subsidy for the fuel. But decisions are usually made without considering the higher initial expenditure as well as the total recurring expenditure. Incorporating all the related issues, the simple and straight answer to the question is this: Go for a diesel only if your car would run more than a thousand kilometres a month. A diesel car would cost more than a petrol, and the present price difference (in the same model) is at least 60000 rupees. Added to this is the higher cost of maintenance that a diesel car would call for. For example many things like the engine oil and the tyres will have to be changed more frequently for a diesel than for a petrol due to higher wear and tear owing to higher vibration. The battery used will be of a higher capacity in a diesel, and also would have to be changed more frequently because of more load. These expenditures are justified only if your car would run more than a thousand kilometres per month. Else go for a petrol. A petrol will have the added advantage of giving a comfortable and more smoother ride.
Diesel.
There was a time when you bought a used Ambassador petrol, replaced the engine with a Matador diesel (originally built for Matador pick-ups) and enjoyed the cost advantage of diesel in India. Driving diesel cars then involved some extra technicalities like heating the engine before starting etc. But even after all these efforts the engine gave out a lot of noise and vibration and too much heat. The 2000s saw introduction of newer technologies into the Indian market pioneered by Hyundai. And we started hearing terms like CRDI, turbo charger etc. Even though most of the car owners didn't understand what these were actually (and they still don't), they knew that they were buying something superior. And the difference was obvious in the ride. The cars were less noisy, with lesser vibration and lesser heat. And above all these, better mileage and better response.
Now, in 2012, there is not much point in comparing engines. Almost all of them use the same technologies but use different names. All of them are common rail direct injection (CRDI) for lesser vibration and better efficiency due to better distribution of fuel. All of them employ turbo chargers to tap more power. Now all the diesel engines are vibration and noise free, and give good response. So, there is in-fact not much to compare between the engines.
Petrol.
The last decade was of revolutions in diesel engines in India. In the case of petrol, the biggest change that happened in the last decade was the transition to MPFI (multi point fuel injection). But now mpfi has become the rule and there is nothing much to talk about it here. But by the end of the first decade of the 2000s we are again seeing some newer developments in the gasoline engine technology. Efforts are on to tap more power at higher efficiencies and for better responses.
Hybrid.
Hybrid is of course the future. But the technology is only in a kind of beta testing right now. So better don't waste you money on it. We could talk about it and write about it. But don't buy it until it is mature. But since none are available in India other than by import it is not a problem.
3. Transmission.
Automatic.
Of-course, the future is with the automatic. The shift liver would disappear in a couple of decades, no doubt. In the small car market, a few select models are now available in automatic variants. Examples are Maruti A-Star, and Hyundai i10. But I would rather recommend you not to go for them if you are not a really wealthy person. The mileage is less, the maintenance cost is higher than for the manual, and when it comes to selling the car after a few years, you would end up throwing it away at a very nominal price.
4. Interiors.
Space: Look for leg room, especially in the rear, when you buy a small car. Most of the good looking models are bad in leg room. If not enough leg room, it will give you problems in long drives.
5. Features.
There are three aspects here.
The time is gone when cars were passed on as inheritance. In India now, we change cars after an average five years (60000km). So the question is, what price could it fetch you when you sell it after five years? Now, here again the empire belongs to brand Maruti. There may be a lot of brands which are renowned worldwide, but if you go out and try to sell a used car, only the Maruti brand has got some value. So if you expect to get some money on selling it later, you have no other choice than Maruti, at least for another ten more years.
Still unconvinced? Rent one and test for a month before you decide.
A ten minute test drive at the showroom is not enough to understand a car, if it is not for an expert (i.e, one who makes a living out of it). Even after comparing all the cars, if are you still perplexed, then don't make a decision while you are still unconvinced. What you are going to shell out is a few years' earnings. So you should be really convinced before you make a decision. Here is the solution: If you have reached on a temporary decision, rent out the car. Most of the cars which are at least 1 year old in the market would be available for monthly rentals. So, rent one for a month. Use it and it will tell you exactly what it lacks, and see whether the shortcomings are significant for you.
Pretext: Brand new or a used car?
Of-course, used cars always give a money advantage. Try to buy the car from a company authorized outlet (it will cost more), or use help from an experienced mechanic to verify that the car is healthy enough (there are millions of ways of fraudulence in the used car marked). You may wish to read this: When you buy a used car in India.
1. Option one: The Brand.
One of the fastest growing car markets in the world, the Indian roads are now flooded with brands from around the world. From a mere three brands twenty years back, we now have numerous brand. All the major players are here. So how could a middle class buyer choose from this galore? And what really does brands mean in the Indian car market? Here are the answers:
- The brand image. In a fast growing economy, in a market where money is poured in like hell, in a society that becomes more and more consumerist day by day, social status too gets associated with brands. In an urban population, when you get down from a Chevrolet and a Maruti, the value you get from the neighbourhood could be different, even if they be similar priced ones. You might feel the difference at various places. Like when you park your car in a city mall. You'll probably get a better salute from the security guy there, or may be even a better behaviour, for a more valued brand. Else take the case when you inadvertently break some law on the road. This is India, and you could expect more gentleness from the police constable if you drive a more noble brand. So brand does matter. And in brand value, Maruti doesn't fare good at least in urban India. And this is probably the only aspect where Maruti would fall a little back in the middle class market.
- Reliability and the quality of manufacturing. All the players are really good in this except for Tata. Tata is only learning things, and even though they are learning fast, they are not still past the curve.
- Resale value. This is discussed below.
- Service network. Availability of service and quality. This is discussed below.
Petrol or Diesel?
The most frequently asked question when you prepare for buying a small car in India is "should I buy a petrol or a diesel"? The tempting reason that attracts people towards diesel is of-course the subsidy for the fuel. But decisions are usually made without considering the higher initial expenditure as well as the total recurring expenditure. Incorporating all the related issues, the simple and straight answer to the question is this: Go for a diesel only if your car would run more than a thousand kilometres a month. A diesel car would cost more than a petrol, and the present price difference (in the same model) is at least 60000 rupees. Added to this is the higher cost of maintenance that a diesel car would call for. For example many things like the engine oil and the tyres will have to be changed more frequently for a diesel than for a petrol due to higher wear and tear owing to higher vibration. The battery used will be of a higher capacity in a diesel, and also would have to be changed more frequently because of more load. These expenditures are justified only if your car would run more than a thousand kilometres per month. Else go for a petrol. A petrol will have the added advantage of giving a comfortable and more smoother ride.
Diesel.
There was a time when you bought a used Ambassador petrol, replaced the engine with a Matador diesel (originally built for Matador pick-ups) and enjoyed the cost advantage of diesel in India. Driving diesel cars then involved some extra technicalities like heating the engine before starting etc. But even after all these efforts the engine gave out a lot of noise and vibration and too much heat. The 2000s saw introduction of newer technologies into the Indian market pioneered by Hyundai. And we started hearing terms like CRDI, turbo charger etc. Even though most of the car owners didn't understand what these were actually (and they still don't), they knew that they were buying something superior. And the difference was obvious in the ride. The cars were less noisy, with lesser vibration and lesser heat. And above all these, better mileage and better response.
Now, in 2012, there is not much point in comparing engines. Almost all of them use the same technologies but use different names. All of them are common rail direct injection (CRDI) for lesser vibration and better efficiency due to better distribution of fuel. All of them employ turbo chargers to tap more power. Now all the diesel engines are vibration and noise free, and give good response. So, there is in-fact not much to compare between the engines.
Petrol.
The last decade was of revolutions in diesel engines in India. In the case of petrol, the biggest change that happened in the last decade was the transition to MPFI (multi point fuel injection). But now mpfi has become the rule and there is nothing much to talk about it here. But by the end of the first decade of the 2000s we are again seeing some newer developments in the gasoline engine technology. Efforts are on to tap more power at higher efficiencies and for better responses.
Hybrid.
Hybrid is of course the future. But the technology is only in a kind of beta testing right now. So better don't waste you money on it. We could talk about it and write about it. But don't buy it until it is mature. But since none are available in India other than by import it is not a problem.
3. Transmission.
Automatic.
Of-course, the future is with the automatic. The shift liver would disappear in a couple of decades, no doubt. In the small car market, a few select models are now available in automatic variants. Examples are Maruti A-Star, and Hyundai i10. But I would rather recommend you not to go for them if you are not a really wealthy person. The mileage is less, the maintenance cost is higher than for the manual, and when it comes to selling the car after a few years, you would end up throwing it away at a very nominal price.
4. Interiors.
Space: Look for leg room, especially in the rear, when you buy a small car. Most of the good looking models are bad in leg room. If not enough leg room, it will give you problems in long drives.
5. Features.
If any change worth commenting has happened in the last ten years in the Indian car market, it is the features available in cars. There was a time when, after using an Ambassador for a few years, you considered fitting an AC into it, or buying a smuggled car stereo. Now air conditioners and car music systems have become standard fitments. All the cars come with tinted glasses. Left and right external rear view mirrors have become mandatory by law. Power steering has become standard. Power windows have ceased to be considered as a luxury. So now, what else remains to be compared.
6. Maintenance.- Wide open doors. A feature that comes as a design advantage in SUVs. In the small car market, you could expect this feature only in 'tall boy' models like Maruti Wagon-R. This feature comes handy in two situations: When an elderly or a disabled person has to get in or out of the car with some assistance. And more particularly, when you have to move in a sick person to the car, to rush him to the hospital. So look out for this feature if your car should serve as an all-purpose family-car.
- Air conditioner. Even-though air conditioners are standard in Indian cars now, in the lowest price segment, models are still offered without this feature. So the question is: is AC a luxury? Could I avoid it if the difference in price does matter? It is of-course not an indispensable feature for a car. But would come handy in two situations. In the hot climate of India, when you go for longer drives, you'll feel the need. If you drive with the windows lowered, the air flow is blocked and the mileage reduces (of course the mileage is less with AC too). Another place where you will feel the need is in traffic jams in the city. In traffic jams in the hot indian roads, if you stay keeping the windows lowered, you'll end up inhaling all the toxic carbon monoxide from other vehicles. So, I would say that if you could really afford it, then don't miss it.
- Screw less finish. It was the Korean auto maker Hyundai that popularised many of the erstwhile affluent features in the small cars in India. And later Maruti followed suit. Hyundai features screw-less finish for the interior handles. Maruti and Ford models lack this feature, even-though they take care to hide the screws.
- Power-windows on the rear doors. Most of the models have front power windows in higher variants. But there are brands (eg: Ford Figo) which don't give power windows in the rear even in the premium variants. This would mean than when you park and lock the car you will have to manually open the back doors and roll up the windows if they were lowered by the co-passengers.
- Electric mirrors. There are models which don't give this feature even as an option (Eg: Ford Figo, Maruti Swift diesel).
- Rear wiper. Many models like Maruti Swift diesel, and Ford Figo lack this feature. You will feel the need when trying to back up in the parking lot during the monsoon.
- Rear defogger. Many models like Maruti Swift and Ford Figo lacks this feature too. Comes handy in the monsoon.
- USB, Bluetooth in car audio. Not available in some models like Maruti Swift and Ford Figo. The days of CDs or DVDs as music carriers have gone. Now we carry them in our mobile phones. So if you would play music while driving Bluetooth will be a convenience. At least you should be able to plug in a memory stick (USB).
There are three aspects here.
- Mechanical parts (engine, transmission, suspension etc.) manufactured by a proven manufacturer will be more durable and hence will reduce the cost of maintenance. In the Indian car market, this is okay for most players. But the Tata cars are yet not past their infancy. They are growing up fast but there are problems still.
- Cost of the spares. This is one of the areas where there is absolutely no competition for Maruti. Maruti is so well established that they have the lowest price for spares. Hyundai is trying hard to catchup and other players like Ford and Toyota are striving hard for a competition but are yet far behind. For most other players like Chevrolet and Nissan, this is not even a consideration yet.
- Availability of service: You go on a long drive, and your car gets some problem while it is still too far from any major city. Could you be able to get some help? Presently, the answer is a big 'no' for almost all of the brands except Maruti. When you really get into such a situation, the 'no' could be more alarming than it appears. So Maruti gains here a lot. Maybe some ten years later, Hyundai or some other brand could answer this, but not yet.
- Quality of service: You cant guarantee the quality of service you get with any brand generally. Because these things are contracted out to franchisees. But wherever there is choice and competition, there is a greater probability of getting a better service from the franchisees. Hence this probability is better for Maruti. In many cities, there would be only a single franchisee for most other brands. So quality is not guaranteed.
The time is gone when cars were passed on as inheritance. In India now, we change cars after an average five years (60000km). So the question is, what price could it fetch you when you sell it after five years? Now, here again the empire belongs to brand Maruti. There may be a lot of brands which are renowned worldwide, but if you go out and try to sell a used car, only the Maruti brand has got some value. So if you expect to get some money on selling it later, you have no other choice than Maruti, at least for another ten more years.
Still unconvinced? Rent one and test for a month before you decide.
A ten minute test drive at the showroom is not enough to understand a car, if it is not for an expert (i.e, one who makes a living out of it). Even after comparing all the cars, if are you still perplexed, then don't make a decision while you are still unconvinced. What you are going to shell out is a few years' earnings. So you should be really convinced before you make a decision. Here is the solution: If you have reached on a temporary decision, rent out the car. Most of the cars which are at least 1 year old in the market would be available for monthly rentals. So, rent one for a month. Use it and it will tell you exactly what it lacks, and see whether the shortcomings are significant for you.
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