Saturday 25 February 2012

Review of Maruti Wagon R.

For a discussion on the general aspects of the small car market, see: A guide for the Indian car buyer.

One of the highest selling cars in the Indian market, the Fifth Estate reviews Wagon-R from the Maruti stable.

1. The looks.
Until an year back, there was nothing much to comment on the looks of this car. Wagon R until 2011 was nothing but a-box-fitted-with-wheels. In a way it was one of the ugliest cars on the Indian roads. And when the Indian market came to be flooded with new age beauties from around the world, it was really awful for Maruti to live on this box-wagon.

But things did change last year (2011), when  Maruti came up with a thorough revision in the design of Wagon-R. It was not only the looks that did change, the car now came in an all new redesigned platform as well.

2. Brand
You'll get all the advantages of the Maruti brand: the reliability, availability of service, value on resale and everything else.

3. The engine.
From 2011 on, Wagon R comes  with a new engine. The former 1100cc petrol engine has now been replaced with an all new K series 1000cc (K10) engine from the Suzuki stable. The drop from 1100cc to 1000cc is aimed at an increase in the mileage, and it has indeed been achieved. Also the K series engine from Suzuki is one of most advanced petrol engines of this size. The only problem you would feel is a little lack of power in the highways especially when the air conditioner is up. In other words you should not expect the throttle response of a 1.2 litre from this engine.

There of-course are no diesel versions for this small a car.

4. Transmission.
The transmission is good. Wagon-R uses a cable linked shifter as does Maruti Swift as well as the competitors from Hyundai namely Santro and the I series. The shift is as good as it is in the Swift. But I would say Hyundai Santro is better in this department. There is no choice of Automatic in Wagon-R. In this price segment, Maruti offers automatic only is A-Star.

5. Interiors.
The Wagon R had a thorough change in its dash and console in 2011. The central console has become really superb. From 2011 on, the audio system comes integrated onto the central console. This may mean two different things. From one side, the console looks really good and a little up-class. From the other, in a fast changing techno scenario, the system could get obsolete in a couple of years, and you could not replace it with those made for the standard form factor. This is notable especially when the system lack even contemporary features like USB and Bluetooth.

Looking inside the cabin, even-though there is no screw-less finish as do have the Hyundai i series, Maruti has taken care to hide the screws in the support handles.

Space: Where the Wagon-R wins over its competitors is its leg room. Here it beats even higher priced models like Chevrolet Beat, Nissan Micra and the Renault Pulse. And where Wagon R looses over its competitors  is its width. Even in the driving seat and in the front passenger seat, you might feel a little cramped. You feel less freedom for your hands. And never think of seating three in the back seat, especially if they are a little obese.

6. Features.
This is where Wagon-R beats all the others in the segment. None of the competitors could give you all the features that Wagon-R offer at a comparable price. Wagon-R is the one of the few models in the segment to offer wide open doors. And the premium variant of Wagon-R has features like electric-mirrors, power windows on all four doors, rear wiper, rear defogger, and a first-in-class tilt steering. The only shortcoming is that the music system doesn't have USB and Bluetooth.

7. Mileage.
The mileage is good. I think it is best in class. It gives a clean highway mileage of 17.5 kmpl.

8. Maintenance.
Here you get all the advantages of a Maruti. The manufactring quality is good. The spares are fairly priced. Service is avalable anywhere in India.

9. And finally, the resale value.
Of course you get the advantage of Maruti here too. The price is good in the used car market.

Unique advantages:
  1. A mileage of 17.5kmlp.
  2. Large legroom. Larger compared to many of the premium hatches like Chevrolet Beat, Nissan Micra, and Renault Pulse.
  3. Wide open doors. Very few models offer this feature.
  4. Four-door power windows, rear defogger, electric mirrors and a tilt-steering. You wont get some of these features even in some of the so-called premium hatches.
  5. All the advantages of a Maruti namely low cost spares, availability of service, and choice of service centres.
Shortcomings:
  1. Power: You wont get what you could call a 'throttle' response from the 1000cc engine. So no racing on the highways.
  2. The new version does look better than its predecessors. But it wont snatch eyes amid the new-age western beauties.
  3. The width is not enough to seat three in the rear seat.
  4. The audio system lacks USB and Bluetooth.
The final word.
Wagon-R beats all others in the segment with the features it could offer. No other brand could offer you four-door power windows, rear defogger, electric mirrors and a tilt-steering at the same price. The mileage is good. You would also get the unique advantages of using a Maruti in India. The only notable shortcomings being a little short of power, and the problem of width.

Friday 24 February 2012

When you buy a used car in India.

What should you be aware of when buying a used car in India.
  1. Stolen vehicles. You should be aware that stolen vehicles are sold off in the used car market. Take the following steps to exclude this possibility.
    1. Verify the engine number and the chassis number of the vehicle. Take the pain to read them from the vehicle itself. You should find these inscribed onto the metal in the engine compartment (bonnet). But know that this is not a confirmatory test. These inscriptions could very well be faked.
    2. Verify from the transport office records that the car is not a stolen one. Don't trust the registration certificate for this. It could be fake. You may use the national database of stolen vehicles for this. But bear in mind that the database may not be complete or up to date.
    3. Always be extra careful in case of cars from other states. Also be careful in case of re-registrations.
  2. Sale following a hit: With the help of an experienced mechanic, check the body for some recognizable patch work, welds in the chassis (under the body), partial or complete repainting, or collective  replacement of parts in a particular area. These may indicate covered-up damages from a hit (accident).
  3. Distance covered.
    1. Do not trust the odometer for the total distance covered. Whether analogue or digital, it could be rigged.
    2. Do not take the tyre condition granted for the distance even for comparatively new cars.
    3. Do not buy cars that has covered more than 80000 kilometres. Parts of the engine like the piston, and parts of the clutch and gear box components wear out at this stage wanting replacement and calling for huge expenditure.
  4. Mileage: If possible, try an actual test of the mileage. Cars are sometimes sold when they don't give the normal mileage for the model. This may happen for a few pieces in every batch owing to manufacturing errors (what we call manufacturing defects). It is also possible that the mileage be affected due to excessive wear and tear owing to bad driving practices as well as lack of proper maintenance (like periodic oil changes).
  5. Availability of spares. While buying models that are too old, verify that spares are still available.
  6. LPG conversion. Do not buy LPG converted vehicles if they are not legally endorsed. If the conversion is legally registered, you could find the info on the registration certificate. If the data is not recorded in the registration certificate, the car will fall out of insurance cover.  Give preference to manufacturer fitted LPG equipment.
  7. Loan: See the registration certificate and ensure that the car is not tied with any loans. If it does, verify the details from the financier.
  8. Verify service records. For cars that are only a few years old, verify the service records with the manufacturer. If a well maintained car, the records should indicate it.
  9. Price:
    1. While deciding on a price, consider the value of the brand and model (in the used market), consider factors such as age of the vehicle, distance covered, condition of parts such as the tyres and the battery, and maintenance history. It would be advisable to get help from an expert.
    2. While deciding a fair price, do not be taken away by some fancy 'extra fittings' like wheel cups, and seat covers.
  10. Do change the ownership legally. Once you buy the car, have the change in the ownership legally recorded (consult your local transport office for this). As well as in selling one, this is crucial in protecting your status before the law in case of any probability of the vehicle been involved in a crime in the past.

Thursday 23 February 2012

A complete guide for the Indian small-car buyer.

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:
  1. 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.
  2. 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.
  3. Resale value. This is discussed below.
  4. Service network. Availability of service and quality. This is discussed below.
2. The engine.
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.
  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. Electric mirrors. There are models which don't give this feature even as an option (Eg: Ford Figo, Maruti Swift diesel).
  6. 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.
  7. Rear defogger.  Many models like Maruti Swift and Ford Figo lacks this feature too. Comes handy in the monsoon.
  8. 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).
6. Maintenance.
There are three aspects here.
  1. 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.
  2. 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.
  3. 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.
  4. 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.
7. And finally, what will I get back when I sell it?
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.

Wednesday 22 February 2012

A review of Maruti Swift.

For a discussion on the general aspects of the small car market, see: A guide for the Indian car buyer.

The most happening car market in the world after China. The heaven of small cars. Fifth Estate examines the most happening segment in the Indian car market from the perspective of the most popular model - Maruti Swift.

1. The looks.
Of-course Maruti Swift is not the best looking car in the segment. At the time of its launch in 2005, it was a revolutionary change for the Indian eyes, and it did make a fashion statement with its lavish curves over the seemingly protruding front wheel arches - a novel approach then. But now, after seven long years of its reign in India, Swift looks rather aged. Time has changed and the Indian roads are now filled will new European, American and Japanese advents. Chevrolet Beat has a new-age aggressive look. In-fact it appears larger in the hood. I10 and i20 from the Hyundai stable have cute looks. Punto (Fiat) has a revived European look. Micra is a good looking new age beauty. Tata's Indica might have been designed in Italy, but it fails to fare among the new age beauties. Also the 'taxi' brand on Indica makes it less popular among the private owners. The Ford Figo is in no way a 21st century design. They have apparently borrowed a design from the Ford archives :-)

2. The engine.
Maruti Swift diesel features one of the best diesel engines in the world (in this segment). The same engine built by Fiat is used by at least two other brands including Tata Indica diesel and Fiat. Hyundai, the pioneer in diesel revolution in India, features one of the best and proven engines from the Hyundai stable.

Maruti Swift petrol version feature the most modern K-12 engine from the Suzuki stable. If you are going to buy a hatch back, then be informed that Suzuki makes the best petrol engines in the world for small cars. and the K series engines are the newest generation. The Hyundai i-series features the Kappa series of engines which are also one of best ones in small sized petrol engines. There are some brands like Nissan who collaborate with Suzuki in the small car segment. All the others are specialists in large cars.

3. Transmission.
The transmission is good in the Swift. But this is one department where Hyundai fare better. The Hyundai siblings (i10 and i20) give a crisper shift.

4. Interiors.
  1. Finish: Maruti gives good interiors for the price. But Hyundai fares better in this, in fact Hyundai is the best. In Ford Figo, the finish of the plastic in the dash and elsewhere is too bad for the brand and the segment. Toyota also does bad here with lesser quality plastic in the interiors of Liva. Indica gives good finish in the higher priced variants. The finish is really good in Micra and Punto. In Beat it is just okay.
  2. Space: Swift gives enough leg room and enough space. In this, Figo is the one which fares best. The legroom is more than enough for Figo. The boot space is largest too. For Beat, the rear leg room is not good enough for the price. The problem with leg room is that it gives you problems in a long drive.
5. Features.
Swift Petrol is of-course rich with features. The premium variant in petrol come with four door power-windows, electric mirrors, rear-wiper, rear-defogger, and a music system. But even the premium variant of the diesel version lack some of the features. So look out for what you should not miss. And when it comes to the other brand in competitive prices, some of these features are not available even the premium variants.

5. Mileage.
This is exactly where the Swift wins the game. It is the most fuel efficient diesel in the segment. Even-though two other cars use the same engine, Swift gives the best mileage.

A review of Honda's best seller - the CB Unicorn.

In the 150cc motorcycle market in India, Bajaj has the largest market share. The second in place is Honda Unicorn. We all know of the might of Pulsar. It is the celebrated model of Bajaj. But what makes Unicorn in this high a demand? Anybody initially thinking of buying a bike, may not consider Unicorn as the first choice, for one obvious reason - it does not catch eyes on the street. Still then why is Unicorn in this high a demand? Fifth Estate attempts to find the answer.

1. Looks. 
The Unicorn is not a sporty looking bike. Infact it is a design of the 1990s, inherited much from its cousin Hero Honda CBZ. And if we go for a comparison, it would fall far behind others in the segment like Yamaha FZ-series, Apache etc. Yamaha FZ is in line with the present European trend, and even Honda bikes sold in Europe has similar looks. See http://ww1.honda.co.uk/motorcycles and the sub section 'Traditional' for an insight.
Well, then again, it is not bad looking either. It has a classic look. And the pretty enormous dimensions (length, width and height) adds to its classicity.

2. Power and Torque. 
Unicorn has really impressive figures here. With 13.3 bhp power, Unicorn stands third in the segment, while the toppers are Apache 160 (15.7bhp) and Suzuki GS150R (13.8bhp). The Power figure of Pulsar is a goof. It is in PS (German Horse Power). Not bhp, a trick to make it appear big.

In Torque figures, Unicorn stands fourth with 12.8Nm while the top three positions are held by Yamaha FZ-series (14.0), GS150R (13.4) and Apache (13.1). Note that the much acclaimed Pulsar 150 has only a 12.76 Nm.

Evidently, while riding all these bikes, we feel the difference in the figures. FZ-series, Apache and GS150R have better pickup and fairly good throttle response compared to Unicorn.

A peculiar aspect of the Unicorn’s Torque figure is that it gives Max Torque at 5500 rpm compared to 6000 or 6500 rpm for most other bikes. This would mean that it would give a better response and more comfortable ride at a lower speed in any gear compared to others in the segment. (A sports bike would give max torque at a higher rpm. For example Yamaha R15 gives 15 Nm at 7500 rpm. Pulsar gives max Torque at 6500 rpm. Where as cruiser bikes give max torque (infact enormous values) at very low rpms. For example Bullet 350 gives 32 Nm at just 3000rpm.)

So obviously Unicorn was not designed to be a racing bike. It is a commuter.

3. The Throttle Response - A Paradox. 
Even with the high Power and Torque figures Unicorn doesn’t give an impressive throttle response. The reason persumably is its enormous weight (146kg).

4. Max Speed and Vibration. 
The initial versions of the Unicorn did not have a handle bar weight. And in the third modification, they brought one, even-though not really sporty looking as in the case of Stunner or Pulsar or Apache or any other bike. And I still believe the handle bar weights in Unicorn are there just part of a cosmetic make up. Anyway, I tried the bike on an open highway above 90kmph without any sort of vibration. But obviously, it is not very comfortable beyond 80kmph, since the engine looses torque beyond that speed in the fifth gear. GS150R fares better here with a sixth gear.

As I have mentioned earlier, due to the torque characteristics, other bikes in the segment like Yamaha FZ-series, Pulsar etc would give better comfort at higher speeds.

Now, this is the one aspect where the enormous weight of Unicorn comes to help. It gives the rider a feeling of safety, which others lack.

5. Braking. 
The braking is good and fine and you can be confident enough to go beyond 90kmph and stop the vehicle safely on short notice.

6. Engine Sound. 
Much has been said about Unicorn’s silent and smooth engine. It has apparently the most silent engine (that is, the best muffled one).

7. Suspension. 
I have been hearing a lot about the Unicorn’s Mono-Suspension. Much has been said for it and against it. Mono-Suspension is obviously the technology used in high-end sports-bikes. In the 150cc segment, other bikes using mono suspension are Yamaha’s FZ-series and R15. It obviously gives the rider a smoother ride. But there is still a controversy whether the mono-suspension really helps the pillion rider or not. Please note that the sports bikes are designed to seat only one person - the rider alone. So, is a fluid-filled-mono-shock better than a gas-filled-twin-shocks? I dont know the answer. But the feed back from the Unicorn owners are generally positive.

8. Mileage. 
Exactly it is here that Unicorn wins the game. Unicorn is one of the most fuel efficient bikes in the 150cc segment. It gives a mileage of about 55kmpl on highways, and about 50kmpl on normal city drive. And in my knowledge, this is second best in the class. The highest mileage is apparently claimed by Suzuki GS150R which claims an average 58kmpl when driven in the economy mode (a feature in GS150R). Pulsar with its dual spark and all of course is not very bad here, when we compare it with Yamaha FZ which gives the worst mileage.

Finally, to sum up,

Unicorn’s unique Advantages:
  1. Second best mileage in the segment.
  2. Proven reliability of Honda.
  3. Second best in dimensions and weight (translates into riding comfort).
  4. One of the best in power and torque.
  5. A classic looking bike even though not sporty.

Where does Unicorn loose?
  1. Looks: First and foremost, this is where Unicorn looses. Same money can buy better looking and more trendy bikes. So, if someone is looking for killer looks, then Unicorn is not the choice.
  2. Throttle response: If what you are looking for is an aggressive racer, then Unicorn is not the machine. The throttle response is not impressive for a 150cc.
  3. Delay in supply: It requires lot of patience to become a Unicorn owner. The demand in the market is high and the supply is less. The fast growing economy is the obvious justification. But does that really satisfy the aspirant owners? Honda is obviously on a slow-and-steady pace. They are apparently reluctant on investing hugely on manufacturing facilities (a contrast to the strategy of Tata for Nano).
  4. Price: The on-road price is a goof. Even the number plates are 'extra-fittings' for Honda. A very bad marketing trick.
  5. Tyres: The tyres are bad for the price. Honda should provide tube-less tyres for Unicorn.
The Final Word.
Of-course there is no perfect bike - whether it be in the Indian market or even in the global one. And Unicorn is no perfect a machine by any standards. But it definitely is a best compromise in the segment. There are other good looking bikes, more sporty ones in performance, those with more mileage etc. But if what you want is best of all these, then Unicorn is the one. It is the best compromise for a 150cc.

Note: The author does not own a Honda Unicorn motorcycle, and is in no way affiliated with Honda Motorcycles & Scooters India Limited, any of its subsidiaries, business partners, associates or dealers. This work is only in an academic interest.
© The Fifth Estate. All rights reserved.

Friday 17 February 2012

The failure of Tata Nano. What the media wont tell you.

Ratan Tata wanted to repeat what Harrison Ford did a hundred years back, but followed an absolutely different road. Ford went the natural way: produced normal cars and sold at profitable prices, increased the volume of production as well as reduced the cost of production in steps, and sold newer and newer versions in lesser and lesser prices, and yes, he did create history. But Tata went at it the other way round. He yelled out at the very beginning that he was going to make the lowest priced car in India; designed one from scratch for the purpose; set up a whole new production facility; and failed badly in the execution.

The vision.
Nano was aimed at a new lower cost price segment in the Indian car market. Tata aimed to create a space between the lowest priced Maruti 800 (about 2.5 lakhs at that time) and the executive-commuter motor-cycle segment priced at Rs 65000. So if you launched a car at just above rupees one lakh, say at 1.25 lakhs, it could tempt the bike aspirants into buying a car. Maybe you can also eat into part of the market share of Maruti 800 too. Tata had plans in mind to eventually reduce the price to 1 lakh, like what Ford did hundred years back in America.

The set back.
But what spoiled the whole plan was the set back at Singur when Tata was forced to pull back after a huge investment of about 1500 crores. Even a giant like Tata would be hurt if 1500 crores is compromised. And that was what happened. Tata, even though moved the factory to Gujarat, was forced to increase the price tag of Nano, and that was what caused the failure of Nano. Because the only advantage Nano had against it competitors was its price tag, and that exactly was where Tata lost.

Even at 1.75 - 2.25, Nano is still the lowest priced car in the Indian market. But to compete with a proven Maruti 800 at 2.5 lakhs, this price tag was not enough. You can better go for a used Maruti 800 at the price of Nano. And exactly at this kind of a weighing is some of the cost cutting aspects in Nano matters against the proven fidelity of Maruti 800:
  • Gradeability (on an uphill drive): With the shortest wheel base, elevated centre of gravity due to a tall boy design, and adding to all these, the engine placed in the rear (for a less complex and hence cheaper transmission) concentrating the weight on the rear, raised a concern of safe gradeability on an uphill drive. Tata addressed this specifically is the post launch ads.
  • Power (for highways): A family car in India should be able to ride on the highways as well. Because more than as a daily vehicle, cars in India are family carriers used for occassional long distance trips. The 624cc engine raises concerns of inadequate power for four passengers over a highway. The transmission too is only 4 speed. This is a major issue addressed in recent Nano ads.
  • Safety (Fire): An engine housed under the rear seat with the radiator vent facing backward allowing only a lesser air intake, and hence lesser cooling, along with more plastic/polymer elements (part of the cost cutting as well as weight reducing measures) in the inner panels, caused serious safety concerns even before the launch. After a few fire incidents were reported, Tata made modifications for fire safety in the newer versions.
  • Safety (Impact): The body panels of the Nano are of low weight, aiming at a low overall weight to cope with the low power of the engine and a high mileage requirement in the market. This cause concerns of passenger safety during an impact/collision.
The future of Nano.
After the huge investment in designing a new car from scratch, building all the dies and all, signing contracts with component suppliers, Tata can't abandon Nano anyway. So what they would aim now is to sell as much Nano as possible. Eventually when the loss is overcome, they would try to reduce the price in steps. And this is exactly what the media wont tell you. Because this news will again reduce the sales of the car. In the meantime Tata is trying to sell a modified version in Europe. But they can use only the platform and the overall design. Even the body panels cannot be used these because of stringent security requirements.

Please note that this is not a hate campaign against Nano. What the Fifth Estate attempts is only an academic analysis of the issue. But more than that the focus of The Fifth Estate is in speaking out what the media (the fourth estate) would suppress owing to commercial pressures.

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