Best Cars for First-Time Buyers in India (2026 Edition)

For first-time car buyers in India, the ideal car should offer reliability, safety, low maintenance costs, good fuel efficiency, and strong resale value. The Indian market offers excellent options across every budget range, from practical city hatchbacks to premium SUVs and EVs.

Buying your first car is an exciting milestone. However, choosing the right vehicle can be overwhelming with so many options available. The best first car should be easy to drive, economical to maintain, fuel-efficient, safe, and backed by a strong service network.

Here are the best cars for first-time buyers in India across different budget segments.

1. Best Cars Under ₹6 Lakhs

1. Maruti Suzuki WagonR

Why Consider It?

• Excellent fuel efficiency
• Spacious cabin despite compact size
• Low maintenance costs
• Strong resale value
• Ideal for city driving

2. Maruti Suzuki Alto K10

Why Consider It?

• One of the most affordable cars in India
• Easy to maneuver in traffic
• Highly fuel efficient
• Reliable ownership experience

3. Renault Kwid

Why Consider It?

• SUV-inspired styling
• Good ground clearance
• Feature-rich for the price
• Suitable for urban and semi-urban roads

4. Maruti Suzuki S-Presso

Why Consider It?

• Tall seating position
• Excellent visibility
• Fuel-efficient engine
• Affordable running costs

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2. Best Cars Between ₹6–12 Lakhs

1. Maruti Suzuki Baleno

Why Consider It?

• Premium hatchback feel
• Spacious interior
• Efficient petrol engine
• Extensive service network

2. Hyundai Venue

Why Consider It?

• Compact SUV styling
• Modern features and technology
• Comfortable ride quality
• Good safety package

3. Tata Nexon

Why Consider It?

• Strong safety credentials
• Robust build quality
• Available in petrol, diesel and EV variants
• Suitable for both city and highway use

4. Maruti Suzuki Brezza

Why Consider It?

• Reliable ownership experience
• Excellent resale value
• Practical family SUV
• Strong after-sales support

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3. Best Cars Between ₹12–20 Lakhs

1. Hyundai Creta

Why Consider It?

• Segment benchmark SUV
• Premium cabin and features
• Comfortable for long journeys
• Multiple engine options

2. Kia Seltos

Why Consider It?

• Stylish design
• Feature-loaded interior
• Strong performance options
• Excellent highway manners

3. Honda Elevate

Why Consider It?

• Refined petrol engine
• Spacious cabin
• Excellent visibility
• Honda reliability and durability

4. Mahindra XUV700

Why Consider It?

• Premium features
• Advanced safety technologies
• Powerful engines
• Outstanding value for money

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4. Best Cars Above ₹20 Lakhs

1. Toyota Fortuner

Why Consider It?

• Legendary reliability
• Excellent resale value
• Strong road presence
• Proven long-term ownership experience

2. Toyota Innova Hycross

Why Consider It?

• Exceptional family vehicle
• Hybrid efficiency
• Comfortable and spacious cabin
• Low maintenance for its size

3. BMW X1

Why Consider It?

• Premium brand ownership
• Easy-to-drive luxury SUV
• Excellent build quality
• Ideal entry-level luxury vehicle

4. Hyundai Ioniq 5

Why Consider It?

• Advanced electric vehicle technology
• Long driving range
• Premium design and features
• Future-ready ownership experience

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Final Recommendation

If budget is the primary concern, the WagonR remains one of the smartest first-car purchases in India.

For buyers seeking the best overall balance of features, safety, and value, the Tata Nexon and Hyundai Creta are standout choices.

Those entering the premium segment should consider the Toyota Innova Hycross for family use and the BMW X1 for luxury ownership.

The ideal first car is not necessarily the most expensive one—it is the car that best matches your daily needs, budget, and long-term ownership expectations.

Quick Winners by Category

Budget	Best Overall Choice
Up to ₹6 Lakhs	Maruti Suzuki WagonR
₹6–12 Lakhs	Tata Nexon
₹12–20 Lakhs	Hyundai Creta
₹20 Lakhs+	Toyota Innova Hycross
Best EV for First-Time Buyer	Hyundai Ioniq 5
Best Resale Value	Toyota Fortuner
Lowest Ownership Cost	Maruti Suzuki WagonR

Tip: For most first-time buyers in India, the ₹8–15 lakh segment currently offers the best combination of safety, technology, comfort, and long-term value. The Tata Nexon, Hyundai Venue, Brezza, Creta, and Honda Elevate are among the most well-rounded choices available today.

The above view is solely my view and the reader should consider it for general information purposes only. It should not be relied upon as professional advice, and readers should consult a qualified expert before making any decisions.

Honda Amaze vs Maruti Dzire vs Chevrolet Sail

With the gap between petrol and diesel prices narrowing, petrol cars are making more sense than ever before. And, let's face it, the three compact saloons here are more suited to the short city hop than full-size saloons. It's exactly the kind of environment in which the lower price tag of the petrol car has a big advantage over the diesel car. So what we have here are three cars that fit the bill. There's the Honda Amaze, the Maruti Dzire and the Chevrolet Sail. All have 1.2-litre petrol engines, two are less than four metres in length and all are priced under Rs 7 lakh (ex-showroom, Delhi)—making them quite a lot of car for the money. Now the Sail may not be a sub-four-metre saloon, but Chevrolet's pricing strategy means that, at Rs 6.41 lakh for this fully loaded LT (ABS), you get a bigger saloon for less than the other two, which makes it even more car for your money. Still, at Rs 6.64 lakh and Rs 6.51 lakh respectively, the Amaze VX and the Dzire ZXi are good value in their own right too.

So, on paper, these three saloons look pretty evenly matched. But what are they like in the real world? That's what we are about to find out.

What are they like to drive?

Amaze

Dezire

Sail

With just 1.2-litre engines powering them, you might expect these three saloons to be wanting for performance, but this is not the case. Take the Sail for example—the engine makes 85bhp and 11.52kgm of pulling power, which translates into decent performance in real-world conditions. The engine is pretty responsive to part-throttle inputs and feels fairly easy to drive in traffic as a result. However, the power delivery flattens out after the rather lively initial response and then it starts pulling strongly again when you reach the zone between 4000 and 6000rpm. The trouble is, when it's revving hard, the engine gets quite buzzy, and even at moderate speeds, the sound it makes is quite intrusive. Add to this a clutch that doesn't offer much feel and a gearshift that isn't the best around, and you have a car that is only mediocre on the performance front—a fact backed up by its 14.5sec 0-100kph time.

Hop into the Amaze after the Sail and you'll immediately see how much better it is. It's amazingly refined at idle and responsive when you're driving around in traffic. The gearshift is superb, the clutch is light and the pull of the engine gets stronger as you rev it harder. It's not incredibly silent when it is near the redline, but it does sound a lot sportier than the Sail. Helping the Honda along is its light kerb weight of 965kg, which helps it post its rather quick 0-100kph time of 13.3sec.

If anything, the Dzire feels even better than the Amaze when you're pulling away from low speeds in high gears. The Maruti has an almost immediate response to small throttle inputs, which makes it very easy to drive in traffic with minimal gearshifts. The Dzire is smooth and quiet at idle as well, and it feels at least as refined as the Amaze. There is some whine from the engine near the redline, and isn't as happy to spin fast as the Honda, but that's the only grouse we had with it. With 86bhp on tap (the Amaze has 86.8bhp, the Sail has 85bhp), performance is good, and even if it's not as quick outright as the Amaze, it holds up well.

Ride & handling

The Sail has the stiffest ride at low speeds. Still, it's not stiff in a crashy, thumpy sort of way; it's just that you can feel everything the tyres are going over. A lot of this stiffness disappears as you go faster, but then again, the car does tend to get unsettled over the bigger bumps. It's not the most fun to drive either. The steering isn't the most consistent and, above 100kph, the car doesn't feel as planted as we would have liked it to be.

Both the Amaze and the Dzire have much better rides, whether at high or low speeds. Around town, the Amaze's suspension is quiet and absorbent and there's little of the sharp vertical movement you get in the Sail. The suspension handles bumps and craters very well and the decent 165mm of ground clearance is good as well.

The Dzire has no such problems. It's clear from the start that it's a quieter, more refined car. In fact, the Dzire's low-speed ride is even better than the Honda's, partly because it gets bigger 15-inch wheels (the other two use 14-inchers) and partly because Maruti has tuned the Dzire's rear suspension for the comfort that saloon car owners expect. As a result, you get a nicely pliant ride at low speeds with some pitching as you go faster. The Amaze's stiffer suspension setup gives it the slight edge in stability as the speeds rise, though. Agility is very good and it surprises you with how comfortable it is in corners.

In the hectic traffic of the city, it's the Amaze's lighter, more measured controls (clutch, gearbox and direct steering) that make it the easiest to drive as well.

What are they like inside?

Interiors of Amaze

Interiors of Sail

Interios of Dezire

All three cars are based on hatchbacks—the Sail is based on the Sail U-VA, the Dzire on the Swift and the Amaze on the Brio. This is significant because the Swift and the U-VA are bigger hatchbacks than the Brio, so naturally the Amaze should have the least space, right? The truth is that the Amaze has the most space of the three, because it has the shortest nose. Honda has increased the wheelbase (the space between the front and rear axles) of the Brio in creating the Amaze, and a lot of attention has been paid to maximising passenger space in the cabin. To that extent, the front seats are slim, the dashboard is pushed forward as much as possible and the door pads have been scooped out for more width. The result is a rear seat that's seriously spacious in relation to the Amaze's compact exteriors.

The Dzire also has a comfortable rear seat and it even betters the Honda's seat on thigh support. But the Dzire's rear seats don't offer as much knee room as the Honda's and the small windows do make you feel quite claustrophobic.

The Sail, being the bigger saloon, naturally has quite a lot of legroom, but amazingly, the Amaze has even more. Also, the Sail's rear seats fall a fair bit short on comfort. The seat cushions are too firm, there isn't enough thigh support and the fabrics feel downmarket as well. Redeeming features come in the form of the raised floor under the front seats that rear passengers can use as a foot rest.

Move to the front of the Sail and again, you'll find seats that are quite firm. The ergonomics aren't great either—the power window switches are placed on the centre console and the gearlever is a bit too far back. The space available is good, but the hard plastics, plain design and bland colours aren't particularly appealing. It is a simple design and buyers might be disappointed with the single-DIN audio system in a class where two-DIN is almost the norm.

The Amaze shares its dashboard with the Brio and this, as it turns out, isn't a good thing. It's not the quality or the fit and finish we take issue with; it's just the very basic, functional design. Honda has taken a radical approach with the dashboard but we feel it doesn't really work, especially in a saloon. The vents, centre console and instrument panel don't line up in the traditional sense and there are some odd looking bits, like the shut-line of the glovebox, which stands out like an upturned lip. The instrument cluster looks a bit too plain as well, and doesn't have the sophistication of the Dzire's.

It's the Dzire's dashboard we liked the most. The V-shaped centre console, the digital displays for the audio and climate control system and the stylish steering wheel all add to the ambience. The front seats are the most comfortable in this group by far, thanks to their excellent size, cushioning and support. Still, the dashboard cowl is high and this does limit visibility to a certain extent—it's something new drivers might not like, as it makes it tricky to judge where the car's extremities lie.

As for in-cabin storage space, the Amaze has no less than nine cup and bottle holders spread across the cabin, and big door pockets as well as a cubbyhole ahead of the gearlever. The Dzire also has door pockets capable of holding one-litre bottles, a cubbyhole ahead of the gearlever and a unique slot on the right of the steering wheel that can hold a mobile phone. We also like the pop-out cupholders on the dashboard that sit ahead of the air-con vent. The Chevy's storage spaces come in the form of a deep, rubber-lined cubbyhole ahead of the gearlever, space under the rear seats and big door pockets.

As for boot space, it is again the Amaze with its 400 litres of space that offers you the most. The Dzire has the smallest at just 316 litres, while the Sail, despite its extra length has just 370 litres of space. It is clear that Honda has really outdone itself on the interior packaging of the Amaze.

SAIL

DEZIRE

Amaze

Buying & owning

The Amaze VX is the most expensive car here by a small margin—but at     Rs 13,000 more than the Dzire ZXi, it's a margin that is of little consequence to today's aspirational car buyer. But the Honda is the most fuel-efficient car here—it gave us 12.5kpl in the city and 17kpl on the highway.

At Rs 6.51 lakh, the Dzire ZXi is quite good value considering it has the best equipment, the best build quality and the most upmarket interiors. Its fuel efficiency is also good—we got 12.4kpl in the city and 16.8kpl on the highway. Both Honda and Maruti offer identical warranties of two years or 40,000km. Both offer equal peace of mind to their customers and both have widespread dealer and service networks.

The Sail is priced very well at Rs 6.41 lakh, considering it is a bigger car than the other two. Going by the ARAI figures, the Sail shouldn't be too far off from the Amaze and Dzire as far as fuel efficiency is concerned. It also comes with a fantastic three-year/ 1,00,000km warranty, pointing at how much faith Chevy has in its product. Still, it's a relatively unknown product and Chevys generally don't hold their resale values as well as Hondas or Marutis.

Maruti won't give up its position easily

Maruti Suzuki, the country’s largest automaker, has drawn up an aggressive strategy to retain its 45-50 per cent share of India’s rapidly burgeoning car market that is expected to hit 5 million units by 2015, from the current 2 million. The blueprint includes upgrades or possible new models in the compact segment and a multi-utility vehicle (MUV).

The Japanese giant will also consider increasing its capacity, which could mean a new plant or expansion of existing units, after its ongoing expansion to 500,000 vehicles is completed in phases.
The possible compact launches are part of Maruti Suzuki’s effort to protect its dominance of a segment that is increasingly under attack from leading global players like Toyota, Ford, General Motors and Honda. With the R3 MUV — a six-seat concept vehicle showcased at the Auto Expo last year — the company wants to make its presence felt in a growing segment where it is virtually non-existent.

In an interview recently, Maruti Suzuki Managing Director Shinzo Nakanishi said: “The A2 (compact) segment constitutes 60 per cent of all cars sold in the domestic market. We do not see this ratio changing in the next five years, but many new players are coming in. We have to strengthen our position in this segment, where we already have seven models.” He said Maruti Suzuki would like at least two new models in this segment by 2015.

Nakanishi said the SUV-MUV market constitutes 12 per cent of overall sales, but that Maruti Suzuki has a negligible share with the Gypsy. “This is another area we would like to focus on. We had shown the R3 as a concept car and we are conducting market research to see whether we can introduce it as an MUV. The other important thing is to have diesel engine-powered SUVs,” he said.

However, Nakanishi admitted that to retain its 45-50 per cent share of the domestic market, Maruti Suzuki’s existing capacity would prove inadequate.

“Our enhanced capacity would suffice until 2013-14. But if the market maintains the high-growth momentum we have seen so far, we will have to consider adding further capacity,” he said.

Maruti Suzuki expects its 2010-11 production figure to cross 1.25 million units with capacity that has been enhanced through reengineering. It will add capacity for another 500,000 units, half of it by October this year instead of the original plan of early 2012. Nakanishi hopes that with these measures, Maruti Suzuki will be able to manufacture around 1.85 million cars by 2013. He said a decision on further capacity enhancement would have to be taken if Maruti Suzuki wants to retain its marketshare.

Nakanishi said he also sees an increasingly key role for the research & development centre in India, which has about 1,000 engineers. “We expect the R&D centre to utilise car platforms developed in Japan to develop full-body capability for the Indian market. Engines developed in Japan could be calibrated to Indian requirements at the facility here,” Nakanishi added.

He also said that nothing has yet been finalised with Volkswagen, which has picked up a 20 per cent stake in Japanese parent company Suzuki, in terms of a common programme. “We are talking, but it is difficult. It already has the Polo, which is its small car, in India and in Europe. So, we are competitors in both markets. We do not know what shape the discussions will finally take,” said Nakanishi.

Maruti Suzuki to launch Kizashi in January

MARUTI SUZUKI India Ltd is all set to launch its much awaited D-segment car Kizashi, a sedan by the end of January. Pronounced ‘Kee-Zah-Shee' which in Japanese means ‘something great is coming', it is an executive sedan to be launched in the third week of January 2011.

Kizashi is set to take on Honda Accord and Skoda Superb, Toyota's Corolla and Camry , Honda's Civic and Accord in features and pricing.This will be the first car by Maruti Suzuki catering to high-end customers entering into a segment where an average of 1,000 cars are sold every month.

Maruti will launch its first luxury car on January 28, 2011. Kizashi will be the first of the several new launches the company is planning in 2011 including a updated version of Swift and Dzire and a small SUV.

Sources indicate that the pricing is expected to be around Rs 18-20 lakhs, some other says it will cost around Rs. 11-12 Lakhs.The company is expecting upto 250 cars to be sold per month. Kizashi will have a 2.4 litre petrol engine, and will come in both manual and automatic versions.

Maruti recently raised its sales forecast for the current fiscal ,and said it expects to sell 31% more cars compared with the 10,18,365 cars it did in last year. Maruti currently produces 1,10,000 lakh cars a month, as compared to 84,000 per month last fiscal.

Launched first in 2007, Kizashi is already running successfully in Europe.The Kizashi version to be launched in India is a new model developed in 2010.So when are you grabbing one for you.

Maruti hikes prices by up to Rs7,500 across segments

The country's largest car maker Maruti Suzuki India raised the prices of all its models, expect Alto, by up to Rs7,500, citing a sharp increase in input costs.

The new prices are applicable with immediate effect, the company said.

"Due to a sharp increase in the input costs, Maruti Suzuki India has decided to pass on a part of this cost impact to customers," the company said in a statement.

The price revision, however, will not include its largest selling model Alto, it added.

"The approximate price revision on various models (Ex Showroom, Delhi) ranges between Rs2,000 and Rs7,500. The price increase ranges between 1% and 1.5%," the statement said.

The hike comes on a day when the company reported its best ever domestic monthly sales for July at 90,114 units, a 33.45% increase from 67,528 units in July 2009.

Maruti Suzuki India today reported 29.18% jump in its total sales, including exports, for July at 1,00,857 units. It had sold 78,074 units in the same month last year.

Maruti Suzuki to launch van to replace Versa

The country's largest car maker, Maruti Suzuki India (MSI) will launch a new van within this fiscal to replace its MPV Versa, whose production has been stopped.

"We will be launching a new van by the end of this fiscal. This vehicle will replace the Versa, whose production has already been stopped," Maruti Suzuki India Managing Executive Officer (Engineering) I V Rao told reporters on the sidelines of the Fourth Environmentally Friendly Vehicle Conference here.

He, however, did not give the price point of the soon-to-be launched vehicle.

MSI is also looking to produce one million vehicles by the end of this fiscal.

"Hopefully, we will have one million units in production by the end of this financial year by utilising our full capacity," Rao said.

He added the company is working on making all its models Bharat Stage-IV compliant as required under the government norms.

“We have not completed BS-IV compliance norms on all our models but we are working towards that direction," Rao said.

The company is also working on hybrid and electric vehicles for demo cars, but Rao said it has no plans for a full-fledged launch of vehicles with such alternative fuel technologies.

Maruti Cars India Launches New Maruti Zen Estilo

Maruti Suzuki India Limited, country's leading car maker, launched the Estilo with all-new overall looks and advanced technological features at a glittering ceremony here today.

The Estilo represents Maruti Suzuki matching pace with the changing taste and lifestyle of 'Vibrant India'. The bolder new Maruti Zen Estilo, designed to meet the aspirations of the Indian customer, is a heady-mix of sculpted features, bold designs, new exciting colours.

New Maruti Zen EstiloLeading the advanced technological features on the new Estilo are a new engine and a transmission system. Equipped with the popular 998cc K-series engine, the Estilo delivers a superior fuel efficiency of 18.2 kmpl (ARAI test results). This BSIV compliant engine makes the Estilo the second car in Maruti Suzuki stable that meets the BSIV norms much ahead of the effective date, April 2010.

The new Zen Estilo comes with new efficient transmission technology and advanced 'Detent pin' gear shift mechanism for smooth and precise gear shift feeling for the customers.

Speaking on the occasion, Mr. Shinzo Nakanishi, Managing Director and CEO, Maruti Suzuki India Limited said, "The new Estilo, with a new technology engine and a new transmission, is sure to delight the customer. We are confident that the new Estilo with its bolder new design and interiors will add to the competitive edge of Maruti Suzuki in compact car segment."

On the refreshed Estilo, that packages contemporary features and style with next generation technology, he added, "Product upgradation is an integral part of Maruti Suzuki's business strategy and future plans. This is a way to include feedback from the customers and offer better products that match their tastes."

The compact hatchback new Estilo is a part of the growing A2 compact segment where Maruti Suzuki is the established market leader with a market share of 58 per cent.

Superior Technology Engine:
The Maruti Suzuki new Zen Estilo houses the K-series 'K10B' engine under the hood. The 998cc three-cylinder engine delivers a power of 68 PS@ 6200rpm and a higher torque of 90Nm @ 3500rpm. The improved engine technology enables more power, low NVH (Noise, Vibration and Harshness) and the lighter weight of the engine helps to increase the fuel efficiency with lower emissions. The new Estilo comes with ARAI certified fuel efficiency of 18.2 kmpl.

Technical highlights of the K10B engine include DOHC (Double Overhead Cam shaft) with offset crank shaft, resulting in better volumetric efficiency, improved power and FE, high compression ratio, plastic intake manifolds for reducing weight and suction losses, Smart Distributor-less ignition (SDLi) system with dedicated plug top coils and advanced injector for superior atomization. The engine oil in the new technology K10B engine is required to be changed only after 10,000 km thus lowering the running cost.

Environment Friendly:
The new Estilo is the second model from the Maruti Suzuki stable which is BSIV compliant, thanks to the K series engine. The Estilo is also ELV compliant and 89% of the parts are environment friendly meeting ELV norms. Further, to take on the forthcoming norms of 10% Ethanol blending of petrol, the new Estilo is also E-10 compliant. Maruti Suzuki is bringing these environment-friendly features to its range of cars much ahead of the industry adopting these norms.

Superior Transmission:
A new transmission technology and a number of innovations make the new Zen Estilo a combination of power and pleasure.

The new Estilo comes with a new Cable-type transmission technology. The five-speed manual gear with synchromesh is now changed to Cable type as against Rod-type, mechanical transmission earlier. This new transmission reduces the gear shifting effort in the new Estilo, by reducing mechanical losses.

The new Maruti Suzuki Zen Estilo has been fitted with an advanced 'detent pin' gear shift and select mechanism. This mechanism eliminates the sliding friction (or line contact) between parts and provides rolling friction (or point contact). This technology, in turn, facilitates smoother transition of gears, and is a first among all Maruti Suzuki products.

These engineering changes, based on customer feedback, provide gear shift assistance for the driver (the gear smoothly goes into its position with minimal effort of the driver). The mechanism reduces the friction and hysteresis losses, thereby proving smooth and precise shifting of gears. It also removes the feeling of stickiness during gear shift process.

Safety, Security & Comfort:
The new Estilo is high on safety, security and comfort.

Improved occupant safety in the form of increase in the frontal impact absorbing area, as the distance between steering wheel and front bumper is increased.

The VXi variant comes equipped with front and rear fog lamps, rear wiper and washer. Safety features like Airbag (driver side) and ABS are provided as option in the VXi variant.

In terms of vehicle security the VXi variant comes with i-CATS integrated keys, five-door central locking and anti-theft alarm.

Rear parcel shelf adds to the passenger convenience and comfort in the VXi variant. Based on customer feedback, the suspension of the new Estilo has been fine tuned to provide improved ride and handling.

Compact and Convenient:
The new Estilo has got a minimum ground clearance of 165 mm and wheelbase of 2360 mm. The tight turning radius of 4.6 meters makes the Estilo a favored car in tight parking and driving conditions.

Vibrant design, styling and looks:
In its refreshed avatar, the new Estilo flaunts expressive, bold frontline looks owing to new swept-back headlamps, dynamic front and rear bumpers, sculpted fog lamp surrounds and a new hood design with crease lines. The rich chrome detailing in the grille and the stylish wheel covers add to the premium feel and the overall appeal of the vehicle. The side door mouldings and ORVM's have been given a new design to add to the bold looks.

The interiors of the new Maruti Zen Estilo have been done up in a posh-looking two-tone beige/chocolate brown complimentary combination, which adds to the refreshing feel inside the vehicle. The seat-covers, embossed with new organically designed geometric patterns heighten the posh looks of the car's interiors.

The dash-board is in a dual tone chocolate brown and beige combination with new attractive and bright silver accent prominently on the center console, instruments cluster, steering wheel, AC louvers and gear knob. The instrument panel has an all new design speedometer, digital fuel level indicator and multi-function display.

Vivacious new colours:
The new Zen Estilo is available in three exciting variants: LX, LXi and VXi in four brand new colours:

New Colours: Ecru Beige, Emerald Blue, Dusky Brown, Quantum Orange

Existing Colours: Silky Silver, Superior White, Bright Red, Midnight Black

Indian automobile sector ushers in new FY on positive note

The Indian automobile sector is ushering in the new financial year on a positive note. Sales across all major categories registered growth in April compared to the same month a year earlier.

Maruti Suzuki India reported nine per cent growth. The company is a subsidiary of Japan's Suzuki Motor and it sells one out of every two cars in India.

As for Hyundai Motor India, the country's second largest carmaker, sales were up 3.5 per cent.

Shinzo Nakanishi, managing director, CEO, Maruti Suzuki Ltd, said: "Since last December, the government has announced several stimulative measures, including excise duty cut, which has definitely helped us to survive in this auto industry."

A four per cent reduction in excise duty was one of the measures taken to help revive India's slowing economy and it has had the effect of boosting consumer spending by making things cheaper.

Growth in the auto sector for the month of April was also driven by new launches. Last year, Maruti Suzuki India launched A-Star, a car manufactured only in India. It helped exports surpass the company's previous record set in March 2004.

Another model, Dzire was launched in March. It helped Maruti to double its sales in the A3 segment.

People are also making a bee-line for two-wheelers. Honda Hero saw sales go up with the introduction of two new models.

Hiroshi Nakagawa, MD, Toyota Kirloskar Motor, said: "I strongly believe Indian economy is fundamentally very strong. So it's time to enjoy the growth."

However, analysts warn that it does not indicate a revival in consumer demand. The growth is relative to a low-sales base seen in April 2008. When compared to March this year, the sale of passenger cars and commercial vehicles in April have actually fallen by 20 per cent.

In addition, problems such as lack of funds and banks' unwillingness to provide loans continue to haunt the Indian automobile industry.

The sector has its wish-list ready for the new government that will assume office soon. Firstly, it wants the tax sops given to the industry to continue.

And with the Left parties no longer blocking economic reforms, the auto industry wants immediate approval of foreign investment in the country up to 100 per cent, with no minimum investment criteria.

Maruti to launch Ritz on May 15

Maruti Suzuki on Saturday said it will be launching its premium compact car Ritz on May 15 in Delhi in straight competition with its other premium compact car Swift.

"Ritz will directly compete with Swift. In the past, when we have launched cars in the same segment, it has helped the market to grow," Maruti Suzuki's managing executive officer, I V Rao, told reporters here.

"With the launch of Ritz, our customers would have two cars to choose from in the same category," he said.

Ritz and Swift would compete with Fabia, Getz, UVA and i20. Swift has been estimated to have a market share of 75% in the compact car segment.

In the next couple of years, seven new cars are being planned to be launched in the compact car segment by various car makers.

Swift, launched four years ago, has been a successful product of Maruti. At present, Maruti sells about 10,000 Swifts a month, Rao said.

The company has put up a new assembly line for Ritz at its factory in Gurgaon.

Last year, Maruti launched Swift in the European market. It makes Swift at a plant in Hungary.

Hyundai packs i10 with Kappa punch

HYUNDAI Motor India Ltd (HMIL) on Tuesday rolled out a new model of the i10 compact car fitted with its latest and more powerful 1.2 litre Kappa engine that is expected to give five per cent more mileage than the existing 1.1 litre engine fitted in the car.The new engine also emits less exhaust fumes. The i10 will also have a 4-speed automatic transmission variant, which will be more convenient for women especially in heavy city traffic as they will not have to press the clutch and change gears, HMIL managing director HS Lheem told journalists.

The Kappa i10 is available with Hyundai dealers at an entry level price of Rs 3.9 lakh. This compares with the existing i10 which costs Rs 3.37 lakh. The car is being launched in three variants —the Magna, Sportz and Asta with the high-end automatic transmission model with a sunroof priced at Rs 5,43,644.

This variant will also be fitted with front airbags and an anti-lock braking system. Lheem said the new engine and transmission plant at Sriperumbudur near Chennai has the capacity to produce 2,50,000 units of the new Kappa engine every year for powering the i10 cars to be sold both in the domestic as well as European markets. “The engine has been developed at a huge cost of $450 million over 41 months and will be produced in India for the world market,” he added. Lheem said the existing 1.1 litre engine has been a success and will therefore, continue to power both the Santro and the i10 “but the new Kappa engine will significantly raise the bar in the segment.”

The Kappa engine has an aluminium block, which makes it much lighter than the other engines, improves the power- weight ratio as well as fuel efficiency. It also helps cool the engine more quickly. The engine is fitted with a double overhead cam shaft, 16 valves and 32 bit microprocessor, which enables it to deliver more power with less noise and vibration.

The engine meets the latest Euro5 emission norms and emits only 119 g/ km of carbon dioxide, which is the lowest for this class of cars, Lheem claimed. He said the i10 has been doing well in both the Indian and European markets. The company had sold as many as 7,500 units of the i10 in the domestic market in the last eight months and had an order book of 1.1 lakh units in exports over the last seven months. Over 70 per cent of the car market in India comprises of compact cars.

The fast growing sales of i10 have taken Hyundai’s market share in the country from 19.5 per cent to 25.4 per cent and cover part of the gap with market leader Maruti. Lheem said the company was also working on a diesel variant of the i10, which is currently being exported. However, the cost at the moment was too high for the Indian market. “We are working on ways to reduce the cost of the diesel engine and making it more affordable for the Indian customer, but this, however, will take some time,” he added. HMIL has emerged as the largest exporter of cars in the country. Lheem said that about 40 per cent of the products were being exported from the Indian plant while 60 per cent was sold within the country.

Diesel powers India’s car sales growth

THE markets may be gripped by fears of an economic slowdown and the government by inflation worries, but the Indian consumer’s love affair with automobiles shows no sign of ending. Despite rising fuel prices, India’s automobile sales grew 8.09 per cent in May, 2008, according to data released by industry body the Society of Indian Automobile Manufacturers (SIAM).

Passenger car sales in the domestic market jumped 14.26 per cent, while total two wheeler sales were up by seven per cent during the month. With the price difference between petrol and diesel going up further, the sale of diesel cars is expected to accelerate vis- à- vis the petrol versions. According to industry sources, the current ratio of car sales in models such as the Swift that is available both in diesel and petrol variant is 60: 40. This means that out of every 100 units of Swift sold 60 are powered by diesel engines, while 40 are petrol versions. Sources disclosed that in the case of Maruti's Dzire the diesel version accounts for nearly 80 per cent of sales while the petrol variant makes up 20 per cent. The new generation diesel engines are a vast improvement over the older ones, which were prone to heavy vibrations and were also noisier.

Ford Motor Company, for instance, has started registering a sharp increase in car sales after it introduced its latest diesel models. The fact that technology is an important factor is reflected in the fact that Tata Motors has reported flat growth even though the company mainly markets diesel models. The company sold 14,228 units in May this year compared to 14,217 units in the same month last year. Mahindra & Mahindra (M& M) has reported a12.98 per cent increase in domestic sales during May at 19,296 units, up from 17,079 units in the same month last year which also goes to show the increasing popularity of diesel vehicles. The company mainly produces SUVs although it has introduced the Logan car recently as part of a joint venture with Renault.

Diesel is Rs 15.76 per litre cheaper than petrol in Delhi and modern diesel engines also give higher mileage per litre than petrol engines, which brings down the running cost of diesel cars even further. However, diesel engines normally cost more to maintain than petrol engines. Each time the government raises the price of transport fuels, the price of petrol goes up more than that of diesel, as a result of which the gap has been widening over the years. The reason is that petrol is still perceived as a rich mans fuel while diesel, which is used in the farm and public transport sectors, is considered politically sensitive.

According to sources, diesel cars have a20 per cent market share in India at present. However, diesel as a vehicular fuel comes in for some criticism from environmental groups on the ground that it is more polluting than petrol. But the car companies claim that modern diesel engines emit less carbon dioxide than petrol engines and the emissions are less harmful. Both Maruti and Hyundai have also introduced alternative fuel options such as LPG and CNG this month in anticipation of some buyers opting for these models as these are cheaper to run than the petrol versions.

Hyundai too raising car prices as input costs mount

HYUNDAI Motor India Ltd ( HMIL), the Indian arm of the Korean automobile maker, on Wednesday said it would raise the prices of its products by up to two per cent from the first week of June.



“There has been an increase in the input costs and we have been absorbing it for a while. The situation now is such that we have to pass some parts of it to the consumers,” Hyundai Motor India Ltd senior vice president marketing and sales Arvind Saxena said. He said the company will hike the prices of its various models by up to two per cent. “The price increase will come into effect from the first week of June,” he added.

Hyundai currently sells hatchback models Santro, i10, Getz along with sedans Accent, Verna, Sonata Embera in the country. The companys move to hike prices follows rival Maruti Suzuki India Ltd ( MSIL), which last week hiked prices across various models by between Rs 1,000 and Rs 18,000.

Maruti had hiked the prices of all its petrol variants — the hatchback Swift, sedan SX4 and the Gypsy — by Rs 9,000, while the price of the diesel version of Swift was raised by Rs 15,000. It had also increased the price of all variants of Zen Estilo and WagonR LPG by Rs 1,000 and of Alto and M800 by Rs 1,500.

Prices of all variants of Omni and WagonR Petrol were hiked by Rs 2,000 and that of multi- utility vehicle (MUV) Versa by Rs 8,000. Earlier, in January, Hyundai Motor India had raised the prices of all its models by between two to three per cent.

Who is scoring in the war of sedans?

It’s the ride quality where Logan scores over Dzire. On most other counts, it’s the Maruti sedan that offers more value for money.

AFTER SELLING like hot property in the A3 segment for a year, the Mahindra Renault Logan 1.5 diesel now faces stiff competition from the country’s largest automobile manufacturer’s latest avatar Maruti Suzuki Swift Dzire.

The Logan is powered by a 4- cylinder, 1461cc, 1.5 Dci engine, and the Dzire is equipped with a multijet diesel 1248cc engine. To distill this technical mumbo- jumbo, the Dzire is more powerful and produces excellent acceleration thrust. Yet the slower Logan should not be dismissed off- hand – it has enough spunk to beat city traffic. Fire up both the engines, and there is the rattle and hum typical of diesel cars.

Between the two, it is the Renaults engine that makes its audible presence felt. Both have a 5- speed manual transmission, but the Dzire tops with its precise gear ratio and smooth shift. Needless to say, the Logans gearbox is not as slick as the Swift sedans. The Renault cars third gear has a tall ratio that may force frequent changing of gears.

When it comes to ride quality, the Logan scores. The Renault easily negotiates dirt roads. And the Dzire seems to take sadistic pleasure in making you feel each bump on the road. At a glance, neither the Dzire, nor the Logan are stunning beauties.

The Renault has an outdated 1980s boxy look that needs at least a set of nice- looking alloy wheels and a rear spoiler to give it a passable makeover. Maruti has played its trump card and transformed its Swift hatchback into the Dzire. The sedan, therefore, retains the sporty look of the hatchback at the front, with the thick line of chrome at the rear being a take- off of the Nissan Teana and the BMW 7- Series.

Looked at from the side, though, the Dzires silhouette is awkward given its disproportionate aspects, but compared to the Logan, the Swift sedan looks contemporary and fresh. When it comes to interiors, the Dzire leaves the Logan squirming in embarrassment. As Maruti has borrowed most of the Swifts interiors, there is a sense of familiarity with the Dzires dash and the instrument cluster.

The high- end ZDI trim gets steering wheel mounted audio controls and an automatic climate control, which are both firsts in the category. The integrated audio system is neatly tucked away in the dash and is user friendly. The Logan's interiors are tacky. The beige colour adds to the cheapness of the look. The inside door handles look down market. Improper placement of the power- window buttons on the central console under the air vents requires almost a GPS system to locate them during driving. The instrument cluster, though, is clear, big and simple.

The Renault is the only car that has an onboard computer in this class. The Logans trump card is the ample leg, head and shoulder room available. It has a 510- litre boot space, which is generous in comparison to the Dzires 400 litres, which had to be shaved to accommodate the intrusions from the trunks flab. The fuel average is high for both the cars. The Logan gives 18 kmpl in city conditions and 24 kmpl on highways; the Dzire returns 14 kmpl and 18 kmpl, respectively.

The Dzire costs Rs 6.7 lakh and the Renault, Rs 6.9 lakh. Not much of a price difference, but the Maruti sedan gives more value for money. Given that they are entry- level sedans, the Logan and the Dzire have a lot going for them.

Maruti hikes prices of its models as input costs rise

INDIA'S largest car maker Maruti Suzuki India Ltd, on Monday raised prices of most of its models to offset the rising cost of inputs such as steel.

The price hike ranges from Rs 1,000 on the Zen Estilo and Wagon R hatchback to Rs 18,000 on its sedan Swift Dzire. The company had launched the Swift Dzire sedan with an introductory price ranging from Rs 4.49 lakh to Rs 6 lakh across different variants, which has now been withdrawn, a Maruti dealer said.

Maruti has also hiked the prices of all petrol variants of hatchback Swift, SX4 and Gypsy by Rs 9,000, while the price of the diesel version of Swift has been raised by Rs 15,000. It has also increased the price of all variants of Zen Estilo and WagonR LPG by Rs 1,000 and of Alto and M800 by Rs 1,500.

Prices of all variants of Omni and WagonR Petrol have also been hiked by Rs 2,000 and that of multi- utility vehicle Versa by Rs 8,000. The price increases, which spared the Grand Vitara SUV, came into effect at the weekend, he said.

Maruti's managing director, Shinzo Nakanishi, had said in April that the car maker was negotiating with steel companies on new contracts, for which it faced up to a 40 per cent price increase. Earlier, Maruti had cut prices of some of its models, after the government reduced excise duty on small cars.