Automatic cars find many new women buyers The auto industry has some new positioning working out to its advantage. Automatic transmission cars are se

The auto industry has some new positioning working out to its advantage. Automatic transmission cars are seeing brisk sales, thanks to the growing number of female customers who have developed a penchant for such cars. It is widely believed that automatic transmission variants of a number of models are finding a lot of woman takers as it enhances the comfort to drive such cars.

A number of companies that have lined up new automatic transmission-enabled models like Hyundai's i20, GM's Captiva (AT version), Fiat's Linea et al. Moreover, the recently launched models like Honda City, Mitsubishi Outlander, Mahindra Scorpio etc are already equipped with the aforesaid feature. Unlike before, carmakers are offering new-age five to six speed automatic transmission systems which are offering better fuel-efficiency along with improved pick up and performance.

One of the top-selling cars of such variants is the premium hatchback car-i10, which is selling over 1,600 automatic transmission variants per month, which is more than the company's initial estimates.

It was reported earlier that Mahindra & Mahindra Ltd. (M&M), on 22nd September'08, has launched the Scorpio Automatic in Pune and Bangalore, which incorporates a fully automatic 6-speed gearbox and the powerful 2.2 litre mHawk engine. Scorpio is the first Indian brand and the first SUV in its class to offer a 6-speed fully automatic transmission.

According to a senior representative of Hyundai Motor India Limited, the sale of automatic variants of i10 have exceeded the company's expectations. He added that there has been an overwhelming response from woman drivers and the growing congestion in the urban centres is pushing up demand. He also indicated that the company will also roll out the automatic transmission variant in its Verna sedan too and would also bring a variant for the physically challenged.

Commenting on the new trend, one of the top honchos of Honda Siel Cars India (HSCI) has stated that the company sells the automatic transmission variants for most of its models like Civic, Accord, City, CRV. He added that female buyers are inclined towards high-end features and automatic transmission is one of them.

According to a senior official of GM India, the Captiva model has been selling like hot cakes. Buoyed by the burgeoning demand, the company has decided to launch the automatic variant soon (with a four-wheel drive), that will cost around Rs. 20 lakh.

Carmakers offer gifts and gold to lure customers

It’s raining gold in the car market. Fighting sluggish market conditions, carmakers are offering diamonds sets, gold coins & chains, silver plates and MP3 music systems to lure customers into their showrooms before the festive season.

Traditionally, festive season has meant free insurance covers and auto accessories for buyers. However, this time around, carmakers such as Hyundai Motors and Ford India are offering precious metals to attract female customers and new buyers. Hyundai Motor India (HMI) is offering a free gold coin with its entire range (except i10 AT and Getz 1.5L CRDi) and an MP3 player with the Verna sedan range and the 1.1L & 1.3L Getz hatchback cars.

HMI managing director HS Lheem said: “We are offering these gifts as part of our successful decade-long operations in India. Besides, with these valuable offerings, we’re making Hyundai products very attractive for our customers.”

While Ford Motors India, which recently gave a facelift to Fiesta, is now offering Tanishq diamonds worth Rs 20,000 with every Fiesta. It has also started special offers including cash incentives for corporate and public sector buyers.

Car sales have nosedived in the past two months after a three year-long growth drive. While sales grew 3% in July, August saw a 1.71% dip year-on-year. To fight the slowdown, other companies are taking different routes to tap the market. Maruti Suzuki India has launched special incentives to attract over 25.4 lakh employees from the insurance, banking and retail sector with additional discounts of Rs 17,000 on SX4, Rs 5,000 on M800 & Alto, Wagon R, Estilo and Rs 4,500 on Swift (petrol version).

“It is a tough time and we are concentrating on non-core markets. Banks, financial institutions and insurance companies make up a big market, but still remain tapped. We are directly giving cash discounts to customers in place of tangibles,” a senior executive of Maruti said.

American auto major General Motor has also followed the similar path offering huge cash discounts. The highest cash rebate of Rs 58,000 comes on the Spark compact car, followed by Rs 46,000 on Tavera multi-utility vehicles. Other pre-Diwali offers include Rs 28,000 discount on Optra Magnum sedan along with a 4-5% interest waiver on all loan deals.

Honda Siel Cars India (HSCI) has plunged into the discount market for the first time and has waived 50% insurance premium on its popular City and Civic sedans, besides offering comprehensive warranty and service packages to the customers.

Redesigned Honda City for India

The all-new Honda City will be here soon. The City has absolutely dominated the mid-size car market, but has been criticized in some quarters for losing the fun-to-drive character that made it so popular when it debuted in India. With the new car, Honda is certain it will win back buyers who choose a car with their hearts and their heads.

The high seating and tall stance will be replaced by a sleeker silhouette, although not as low as that of its older sibling, the Civic.

Honda's range of twin-spark i-DSi engines may not make it under the hood of the new car. Instead, Honda's renowned VTEC power plants are expected to be standard across the model line. Whether the City will continue to have a continuously variable transmission option isn't clear, as C-segment buyers haven't shown a preference for it in the past.

Honda cuts car prices as central sales tax lowered

WHILE most automakers in the country are hiking prices, Honda Siel Cars India said on Sunday it is cutting the rates of its sedans, City and Civic, by up to Rs 5,000 with immediate effect on account of the reduction in central sales tax (CST) by the government.

“We have received notification from the government on the central sales tax cut from three to two per cent announced in the Budget. Hence, we are reducing the prices of our models City and Civic to pass on the benefit to consumers,” aHonda Siel Cars India official said. While mid- sized sedan, City will be cheaper by Rs 3,000, Civic will be cheaper by Rs 5,000.

Before the cut, City was priced at between Rs 6.80 lakh and Rs 8.65 lakh, while Civic cost between Rs 10.91 lakh and Rs 12.41 lakh. The official, however, said the price of the companys sports utility vehicle Honda CRV will remain unchanged.

In fact, CST was proposed to be reduced to two per cent from April 11, but it could not be done due to differences between the Centre and states over acompensation package for states for revenue loss due to the cut. The auto industry has been reeling under increasing input costs. Last month, Maruti Suzuki India Ltd had hiked prices its models.