Aston Martin Arrives in India

Aston Martin joins Ferrari S.p.A, Maserati S.p.A and Volkswagen AG's Bugatti and Lamborghini units in India with the U.K.-based company Friday launching three models for the country's sports car enthusiasts.

"India represents a new opportunity for us," said Michael van der Sande, chief commercial officer at Aston Martin.

The company will sell the V8 Vantage, priced at 15.50 million rupees, the Rapide at 21.5 million rupees and the One-77 for 200 million rupees in Asia's third-largest economy that has already prompted Daimler AG, BMW AG, Audi AG, Bentley and Jaguar to introduce luxury cars for India's rising number of millionaires and billionaires.

"A decision to bring the Aston Martin brand to India is driven by a strong level of interest and enthusiasm from potential customers in an emerging luxury market."

Aston Martin on Friday starts a dealership in Mumbai and will open a second dealership in New Delhi by the end of May.

Expanding sales in India and China have provided global auto makers new market opportunities with business in Europe and the U.S.--their primary markets--stagnating.

Aston Martin was in 2007 sold to Kuwait's Investment Dar Co. K.S.C. and Adeem Investment by its erstwhile owner Ford Motor Co.

Ultra-luxury carmakers bullish on India

Even though ultra-luxury carmakers like Bentley, Rolls Royce et al are bearish about the American and other developed markets, their sentiments are understood to be quite bullish towards emerging markets like India. Despite the Indian auto industry expected to grow by 7 per cent only in the current fiscal year, sales of super luxury cars is expected to grow by 20 per cent over the next few years. It is widely believed that the burgeoning nouveau riches have been the main factors responsible for brisk sales of such models.

A super luxury car is retailed above Rs. 1.5 crore, including the import duty on CBUs. Since such cars are hand-crafted and not assembled by machines, it takes at least six months to deliver to any customer after the order is placed.



Bentley Motors Limited, an English manufacturer of ultra-luxury automobiles, has launched the Bentley Continental Flying Spur Speed (a high-speed variant of its existing model, Continental Flying Spur), on 10th October'08, at New Delhi in India. The car is touted to be the world's fastest four-door car. With a product profile consisting of the Bentley Arnage, the Continental GT and now the Flying Spur Speed, Bentley Motors has introduced only top-end saloons in India so far. Priced at Rs. 2.5 crore (ex-showroom Delhi), the car would be imported as a Completely Built Units (CBU). It would be available through Delhi-based Exclusive Motors Private Ltd. The company plans to operate through the exclusive dealership model in India as it operates globally the same way. Bentley is hoping to sell around 10 units of the Flying Spur family in the Indian market. Moreover, this year Bentley achieved its annual target of selling 25 cars in just eight months. Similar has been the situation with Rolls Royce. Bentley grew by 20 per cent last year and expect to clock similar growth in the country this year. Since commencing its operations in India 2003, it has sold over 100 Bentleys in India and some of its customers own between 2-3 Bentleys.

According to a senior representative of Bentley Motors (Middle East, Africa and India), the company has long term plans for the Indian market and will stay focused on our high-end saloon. He added that the company experienced a huge growth in the Indian market over the past year. He also stated that India is a saloon market and the company will continue focus on this segment. He indicated that in order widen its product portfolio in the country; all its future models will be simultaneously launched in India along with the global market. He added that the Indian automaker is allotted quota of 25 cars a year and by August'08, its order book has been full.



Rolls Royce Motor Cars, the manufacturers of super-luxury Phantom, has said that it is banking heavily on the Indian market for pushing up its volumes. On the sidelines of launching its new showroom in Delhi, the company has indicated that it is aiming to notch up 70 cars in the country by 2013, citing the country to be to emerge as the single-biggest market in the Asia-Pacific region in the next five years where it is targeting the top end of the personalised car market. It has also been learnt that he BMW subsidiary is rolling out a slew of new models at its facility in Goodwood, England, and plans launch it in India in the next few years. Moreover, its RR4, a smaller luxury saloon than Phantom, will hit the Indian roads by 2010. Besides, a Phantom coupe with different powertrain option is also on the cards. Rolls-Royce's new car RR4, a smaller ultra-luxury saloon than its current Phantom model, will be launched in India in the next two years.

According to a senior representative of Rolls-Royce Motor Cars, the new family will not compete with Phantom, but it will be the second most expensive in the world. He stated that the company has discerned a huge chunk of ultra-high net worth individuals in India, which make the market very impressive for it. He also added that it is scaling up its production capacity in England from 1,000 units to 3,000 units. A Rolls Royce dealer in Mumbai has claimed that it has already crossed its target of 8-10 units by June'08. The dealer is tipped to be receiving orders for another 10 units by the end of this year.

The number of high networth individuals earning over a million dollar in India is estimated at 50,000. Moreover, the market for super luxury cars in India is ballparked between 20-30 cars annually.

Bentley’s New Car in India

Though the economy is slowing down rapidly, luxury car company Bentley and many other companies like it still see India as a ‘key market’, and remain bullish on the market. ‘There is always somebody making money’, says Bentley’s MD for India on the sidelines of launch of its new model in India.



Bentley announced the launch of its new model, Continental Flying Spur, which can make 100kmph in 4.2 seconds and reach its top speed at 322kmph. The new model is priced at Rs. 2.5 crores (ex-showroom Delhi). Bentley hopes to sell at least 10 models in India. “We are looking at enhancing our range in India. All our future models will be simultaneously launched in India along with the global market,” said Chris Buxton, Regional Directors, Bentley Motors, (Middle East, Africa and India).

Amidst the ongoing economic crisis, major car manufacturers are experiencing a major slump in their sales and piling up of inventories at their manufacturing units and dealer locations. On the other hand, Bentley surprisingly has an order backlog of 30 cars in India. This is even more amazing considering the cost of their cars in India. It clearly shows that someone somewhere is still making money.

Lamborghini sees India as big market for future

Iconic Italian sports car maker Lamborghini has big expectations from India and has identified it as a “big market for the future”. In India since 2006, the company is now working on expansion plans and is confident that the rapid economic growth and new-emerging billionaires would make India one of its strong markets in the coming years.

“India is a big market for the future for Lamborghini. It is a big country and the attitude of buyers is now changing and they are becoming more open to buying ultra luxury high-style brands like ours,” says Enrico Maffeo, global director of sales and customer service for Lamborghini, told TOI.



Lamorghini, famous for its raging bull logo, sells the Gallardo and the Murcielago sports cars in India that are also available in their various variants like the lightweight Gallardo Superleggera and the convertible Gallardo Spyder, all of which retail for a hefty Rs 3 crore-plus.



Maffeo, a regular visitor to India, said high price was not much of a deterrent for their target customers who choose a Lamborghini for its exquisite design, high-profile branding and uncompromising performance. The company, which currently retails in India through its only dealership Exclusive Motors of Delhi, hopes to sell ten of its famed cars here this year. “Our business is not that much about volume. It is more of brands and desirability. Our plan is to create brand awareness, and the sales will follow,” he said.

Maffeo said as the company expands in India, Lamborghini would also increase its distribution network here. “We plan to have a new dealership in Mumbai next year and follow it up with one in Hyderabad in 2010,” he said.

But just when it looks to expand and grow in India, it also faces competition from rival like Ferrari. Alarmingly, Ferrari may get assistance from domestic heavyweight Tata Motors, the joint venture partner of Ferrari owner Fiat, when it decides to come to India. Maffeo said any new brand had to go step-by-step in any market. “And don’t forget. We are part of the Volkswagon group that already has presence in India through brands like Volkswagon, Skoda, Audi and Bentley.”

Volkswagen confident of doing well in India

"The Nano is a unique answer to the needs and aspirations of the vast majority of Indians. I think it's a wonderful move from the Tatas to give India its own version of 'people's car'." It isn't often that one is accustomed to hearing such effusive praise from a marketer, especially when the object of praise happens to have been concocted in a rival boardroom.

But Detlef Wittig, executive vice-president and worldwide head of sales & marketing, Volkswagen, isn't shy of appreciating a smart idea and is visibly impressed with Tata Motors' disruptive innovation. Wittig adds that Volkswagen - which created the original people's car, the iconic Beetle - did toy with the idea of a similar 'price proposition-based' product, but dropped the idea as European markets are quite different from the Indian one: and doing something exclusively for India to replace the motorcycle market isn't one of the company's objectives at this moment.

That said, the Indian market - where the group is investing close to Rs 3,600 crore - is obviously high priority for the Volkswagen Group, which owns seven marquee brands that include Audi, Bentley, Bugatti, Lamborghini, Seat, Skoda and the flagship Volkswagen brand. Of the lot, Audi, Skoda and Volkswagen are already in India, and in the first six months of 2008, the group recorded the highest growth in volume sales from the country (69%), as compared to other emerging markets like Russia (63% growth), Ukraine (50%), China (23%) and Brazil (22%).

In contrast, European sales had a marginal 1.3% increase, while sales in home turf Germany went up 4%. And with India billed to become the fourth largest car market (as against its current position of No 13) over the next 10 years, it isn't surprising that Volkswagen wants to get its India act together, despite having been a late entrant. Wittig clearly has the opportunities and challenges in mind, even as he admits that the company's entry into India was delayed due to "uncertain auto policies, the group's inability to find a suitable JV partner for a long time and the absence of the right product".

But Wittig wants to put the past behind him and Volkswagen, and focus on the future strategy instead: and that includes putting together a crack marketing team under KK Swamy (managing director & vice-president, Volkswagen India), adding more dealerships and introducing new models in India. And, of course, the launch of the Beetle next year is expected to go a long way in helping Volkswagen "find an expression" in the Indian market, as Wittig puts it. "If you have to build a brand, you have to highlight its roots, else you are just a commodity," he adds. "We want to be more than that. The Beetle will work towards enhancing the brand heritage of Volkswagen in the country." Volkswagen is betting on the Beetle's global 'cult' status as a means of pitching itself to Indian consumers.

"Beetle's followers have great memories attached to it. Punch buggy (a car sighting game generally played by young children in which participants hit each other upon sight of a Volkswagen Beetle) is only a sign of the 'fun car' status the Beetle enjoys around the world," says Wittig, adding that India being a young country, it certainly has space for the car.

Yet, the Beetle cannot be expected to drive volumes for Volkswagen: rather, it will serve as the master key in Volkswagen's plan to secure 10% of the burgeoning Indian market within five years (currently, Volkswagen has less than 1% share of the Indian market). Incidentally, Volkswagen entered China in 1984 and has been able to grow significantly: in the first six months of 2008, the company recorded sales of 531,600 cars, breaching for the first time the 500,000-units mark in China over a six-month period.

The moot point is whether Volkswagen has squandered the opportunity to make a similar mark in India, given its late entry. Wittig concedes that India's potential had not been correctly estimated back at that point in time. "Yes, we are late in coming into this market, but may be not too late," he says, pointing out that even some of Volkswagen's European competitors, who came in earlier, "haven't been tremendously successful either".

Wittig says that the company has adopted a top-down strategy for India. Case in point: Skoda, which is a budget brand in many countries, but opted to enter India with the premium Skoda Octavia. Even the Fabia is priced at a premium when compared to rivals occupying the same hatchback segment. "We launched the Passat, which targets the upper end of the market. Then we brought in the Jetta, which is one step down, and now we'll soon have the Polo - not the one the world knows of, but its derivative that would fit in the Indian market," says Wittig.

Given the record sales achieved by Volkswagen in the first six months of 2008 on the back of demand in India, Russia and China, emerging markets are the area of focus for the company. While Wittig finds the situation in China and India as being very interesting, he is sold on Russia - the nation is all set to become Europe's biggest car market by next year. He says: "The dynamics of the Russian market had gone unnoticed, much like India." However, considering the demographics and increasing purchasing power here, he feels India is all set to be among the Top 5 car markets in the world in coming years.

Defining the key value propositions for each of the Group's marquee brands - Audi, Skoda and Volkswagen - Wittig says that Audi is sophisticated and clearly stands for luxury. "It is meant for powerful people who are sporty, like to be leaders, like to show off, though not necessarily aggressive in their manners." Volkswagen, on the other hand, is for those with average income, but with a penchant for showing off. "It may not fit in where a Nano does, but is affordable for people who are looking for more value," he says. On the other hand, Skoda drivers are more rational in their thinking. "With the Skoda Fabia, we scaled down from the Rs 1.5-million bracket (Rs 15 lakh) to Rs 6 lakh to cater to this audience," says Wittig, who has spent well over three decades at Volkswagen.

The group soon plans roll out the Up!, which the carmaker hopes will go down well, given the inflationary trends and the recession afflicting the auto sector. However, Wittig feels the impact of the recession is not a cause for worry in emerging markets as much as it is in the US and Europe. "The recession there has caused companies to concentrate on compact cars, less fuel consumption and, eventually, hype about hybrid cars. There is a shift in production and engine mix in Europe.

However, emerging markets are too dynamic, giving everyone a lot of room for growth," he says, adding that India, particularly, is more interesting than any other market as the situation does not change overnight like in China. "You are not dependant on the US situation. I have seen India since the mid-90s and the strength you have gained is admirable," he says. It's a strength that Wittig and Volkswagen would like to juice to the fullest.

Tata Motors may revive Daimler

TATA Group chairman Ratan Tata has told investors he is considering making a super- luxury version of the car that is a favourite of Britain’s reigning monarch, a British daily reported on Monday.

Ratan Tata, whose Tata Motors bought the marque as part of its $ 2.3- billion purchase of Jaguar and Land Rover earlier this year, was looking to revive Daimler, the Times reported. The car, which is a favourite of Queen Elizabeth II, may be remodeled into a super- luxury version to rival Bentley and Rolls- Royce — funded from a kitty of a billion pounds earmarked to develop new models at Tata- owned manufacturing units in Britain.

The paper said Tata’s plans, which include selling these cars to rich customers in Britain, Asia, Russia and the Middle East, had the support of analysts. It quoted analyst Garel Rhys of Cardiff University as saying: “Tata could make a very good job of this, especially if they target the space between where the top of Jaguar’s current range ends and where manufacturers such as Bentley kick in. Daimler has a fantastic heritage.”

Luxury cars fly in ‘ recession- hit’ India

The Luxury car market in India is growing like never before. Sample this: In the first six months sales of luxury cars have almost doubled.

Mercedes

Mercedes India has sold 1,892 cars in the country compared to 2,491 cars sold last year.

BMW

BMW has sold 1,323 cars in the first five months, which is almost equal to the 1,387 cars the company sold during the full last year.

Volkswagen

The Volkswagen group has managed to sell 810 premium cars of its two brands Audi (470 units) and Volkswagen (340 units).

Audi

And Porsche is aiming to double the tally of its car sales this year by selling over 200 premium cars.

Clearly, financial sector meltdown and the consequent wealth erosion hardly seem to be dissuading buyers of high-end cars in India, even as the global luxury car makers pump in huge resources to lure the Indian customers.

“If you look at the segment we are operating in, price sensitivity of the product is not an issue,” says Kurt Rippholz, head, communications, Volkswagen India.

To this Dr. Wilfried Aulbur, chief executive officer and managing director, Mercedes India, adds, “Back in 1995 when we started operations in India, we were optimistic about the potential that India held and we are now convinced about it.” And why not?

According to the 2008 Wealth Report by Merrill Lynch Cap Gemini there are around 1,23,000 millionaires in US dollar terms in India. Also, the country has a significant number of young, rich and enterprising people in smaller cities who are spoilt for choice. And manufacturers are strutting their products to lure them.

Bentley

So, the top- end luxury cars such as Bentley and Lamborghini, which cost upwards of Rs 2 crore, and that can only sell around 25 and 10 cars, respectively, for exclusivity sake, have industrialist buyers queuing up — for four to six months — to get their cars. But it’s the entry- and mid- segment luxury cars that are selling like hot cakes among the class aspirants.

Lamborghini

This year till June, Mercedes sold 1,000 C-Class cars ( Rs 25 lakh onwards). In fact, in March alone, it sold over a 100 Mercedes S-Class cars ( Rs 70 lakh onwards).

Maybach

BMW sold 666 cars of its 5 Series and 355 units of its Series 3 cars upto end- May this year.

BMW

Last year Audi sold 107 units of its Q7 model while Porsche sold around 90 cars of its Cayenne model. “Along with corporate sales that are pushing the sales of these premium cars, aspirational sales are fast picking up.

Interior of a Rolls Royce

Professionals in their thirties who have a global lifestyle and hail from smaller towns are the main customers in this segment,” says Aulbur. And to sell these new cars, companies are expanding their distribution network thick and fast. New dealerships are being set up in Tier II, III cities.

There is a sizeable population of Mercedes cars in cities such as Kolhapur, Ludhiana, Madurai, Coimbatore and Kochi.

Volkswagen, in its second phase of expansion opted for cities such as Hyderabad, Chandigarh and Ludhiana for their dealerships and Porsche is looking at potential new dealerships in Punjab. “We are trying to have 120 distribution dealerships in the next three years as we expect a growth of 250 per cent in the Indian auto market over a period of ten years,” says Kurt. And he is not alone; Audi is planning to take the tally to 11 dealerships from the existing seven by the end of the year.

Porsche

Porsche is looking at having nine dealerships by 2010 from the current two and is also looking at building a steady relationship with Indian customers. So, it’s zip, zap zoom time ahead for the luxury car market in India.