Indian Autos blog

With the advent of Mini in India, a whole new segment of cars is knocking on the doorstep of the Indian automotive market.

We are talking about the uber luxurious hatchbacks that are bought more for their style than practicality. Mercedes India is charting out a strategy to introduce the A Class. The Beetle and the Fiat 500 are already present in the market.

News comes in from China that Volvo has handed over the old XC90 platform to the parent company Geely to pursue their dreams of producing a luxury SUV under its own umbrella.

The idea is that Geely will have its own luxury marquee (like Toyota has Lexus) which will make luxury SUVs for the Chinese market. The existing XC90 platform will form the base of the new SUV from Geely’s luxury SUV division.

The Beijing Auto show saw a range of launches – everything from SUVs to sedans premiered at the show that attracted global media attention. But one special category that was exclusive to China was the LWB (Long Wheel Base) sedans. LWB or stretched versions of the existing sedans are quite popular in China.

The Chinese love lots of leg space at the rear and because the Chinese market is such a high volume game, manufacturers, big and small, are more than happy to oblige the Chinese demands and make an exclusive variant.

A few months back, Volvo India launched the D3 range of cars in India. Essentially, it was the same product portfolio but with an ultra efficient D3 diesel engine.

The D3 engine produces 163 PS/400 Nm while returning an impressive fuel economy of 18.5 kmpl on S60, 17.8kmpl on S80 and 14.7kmpl on the XC60.

The idea was the downsize the engine and thus reducing the price of Volvo cars making them affordable when compared to the Germans. It will take us some time to analyze whether the numbers have started to trickle in.

The Volvo V40 unveiled at the Geneva Motor Show last month may lead to the introduction of a series of much larger vehicles that includes a baby crossover carrying the XC40 monicker. Until now, it was believed that Volvo was working on a ‘XC30′ as a younger sibling to the XC60, but after the arrival of the V40, speculations have picked up around the usage of the XC40 branding.

According to media reports, the XC40 is just the start of a new lineup of vehicles that includes replacements for the aging XC90, S40 and S80 models beside new introductions such as the XC40 crossover. Most of these vehicles sit on a scalable platform that provides huge cost and time advantages.

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Volvo India, through new models and low price, is aiming to increase its market share in India and the V40 hatchback can be the most crucial model from that perspective. The new V40 is the compact car that’s pitted against the new introductions – BMW 1 Series, Mercedes A-Class and the Audi A3.

Two out of these three cars are going to be seen for the first time at the Geneva Motor Show where Volvo will also drop the V40. Can the V40 find ways to rewrite the rules in the compact luxury market with its simple yet interesting design?

What’s not news is Hyundai working on an i20-size hatchback for the Brazilian market to form a new entry point. What’s hot news is the Korean company is not putting a full stop there. The HB platform extends to to roll out a sedan (like the Verna) and a mini SUV (a la Duster) in the next two years.

2012 will be dedicated to the hatch after which the sedan and SUV could be launched in 2013 and 2014 respectively. Hyundai is reportedly trying out engines displacing 1.0-1.6 liters for the HB platform derivatives. These models are not expected to be built outside Brazil.

The Kia Cee’d is the Hyundai i30′s distant cousin. The Cee’d, recognized widely for being the “reasonably priced car” on Top Gear UK, is a C-Segment hatchback and with a complete redesign, it has plans to shake up the American market. Using design and the too-tempting-to-miss 7 year warranty in some markets, luring customers into showrooms is a game Kia is getting better at.

A more pointed “Tiger-nose” grille and more ergonomically designed cockpit are some of the interesting changes on the new Cee’d that lands at Geneva next month. With great design, ever improving quality and competitive pricing, the Cee’d could go a few steps forward and come dangerously close to grabbing customers of the i30!

Our recent conversation with Mr Tomas Ernberg revealed that Volvo India is planning to launch a compact car in early 2013. We are nearly sure that it will be the Volvo V40 which is schedule for a debut at Geneva. However, in the world where auto sleuths (such as ourselves) run rampant on the streets trying to unmask future products, the Volvo V40 has been previewed by a Polish auto magazine Motodziennik.

The Volvo V40 is a premium 5 door compact car soon-to-be-launched by Volvo to replace the S40 and V50 station wagon. The V40’s design draws heavy inspiration from the sweet-looking S60 though in a very conservative manner.

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Yesterday, we were at the launch party of the new D3 engines introduced in the current lineup of Volvo cars in India. We caught up with Mr. Tomas Ernberg, Managing Director, Volvo Auto India to discuss the future of Volvo cars in India. Here is what he had to say:

Summary
1) Margins have been reduced for the current aggressive pricing. Prices will normalize after 12 months
2) 800 units is the target for this year. Plans to sell 20,000 units by the end of 2020. Targeting top 3 slots in the Indian luxury market by 2020.
3) No new dealerships this year. They will start popping up in 2013
4) No new models will be launched this year. A brand new one will be launched in early 2013.
5) Competition is perceived to be the biggest challenge for Volvo cars in India.
6) Concept Universe hints about the future Volvo globally – planning to be more luxurious
7) XC90 replacement will be out in 2014-15

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