SUV is the new market propeller for auto sales in India

India is always a country which has its own pecularities. While the rest of the world is going slow on gas guzzlers and the big cars including SUVs, the market for them back home is getting attrcative with every passing day.

Inorder to cash on the building demand for SUVs in India, many global and domestic auto giants have been busy rolling out newer models or variants of their existing SUVs to pamper the senses of drivers who want to have a 4x4 driving experience.

In the brginning we had SUVs from companies like Mahindra who rolled out Scorpio, Toyota had Qualis which was phased out and Tata Motors which had Safari and Sumo. But now, there are at least 15-20 models (including imported ones) sold by a huge chunk of multinational companies in the country. Furthermore, people are snapping up these vehicles pushing the companies to either stop the bookings or launch new models.

The new innings this year was kicked off by General Motors India which launched the AT version of its Captiva SUV, followed by BMW with its X6, while others have also followed suit. While companies like Toyota are not taking additional orders for its recently-launched Fortuner SUV, Ford motor Company is offering an attractive price tag for its refreshed 2009 Endeavour SUV.

Toyota Kirloskar Motor Pvt. Ltd. (TKM) has recently announced that it had received a record 5,000 bookings of the ‘Fortuner’ in just over a month. TKM is trying to ramp up monthly production figures from 500 to 600 units to meet high customer demand and is also planning to sell 2500 units of the ‘Fortuner’ during 2009 versus the earlier announced target of 2000 units.As of now, TKM dealers have been advised to take customer orders without advance payments, while committing to a tentative date of delivery. The vehicle is powered by a 3 litre Advanced Common-Rail Diesel engine and also features fulltime four-wheel drive.

Within a fortnight of Toyota driving in its Fortuner diesel SUV in India, segment leader Ford rolled out a new version of its Endeavour, pricing the automatic variant of the model competitively at Rs. 17.9 lakh (ex-showroom Delhi). It is believed that by keeping the pricing of the automatic version of the Endeavour well below the Rs. 18.45 lakh pricing of the manual version offered by the Japanese auto titan , Ford is aiming to lure away all the Toyota customers (who are not able to buy Fortuner SUV immediately) into its own showrooms.

According to an auto industry analyst, sales have gone niche and buyers are putting their weight behind the premium SUV category which range from Rs. 13 lakh and above. SUV manufacturers have thrown in newer models; each better than the last one, got the right buyers interested, and managed to return with envious sales figures. Industry observers sees the overall market size of this category at a little over 10,000 units annually, which though small holds the potential of growing fast in the long-term with the road network getting better and more and more people driving across cities.

The resurgence of SUVs is yet another reason for the automobile companies in India to cheer about..and joining the bandwagon is now Nissan India with its X-Trail. There is promise of more action in coming days.

Tata's Journey So far..

1954
Tata launched its first Mercedes Benz diesel truck, Telco.



1958
India's first prime minister, Jawaharlal Nehru, walks through the apprentice shop at Jamshedpur.



1965
The owner of the first Mercedes Benz diesel truck, Sardar Kartar singh is presented with the key of the 1,00,000th truck.



1969
Employees cheer as the first Tata branded truck rolls out, ending the collaboration with Daimler Benz, Germany.



1977
Tata manufactures its first commercial vehicle at its plant in Pune.



1986
Tata launches its first light commercial vehicle from Telco, the Tata 407.



1992
Tata Estate, Telco's second passenger vehicle launched by JRD Tata and Ratan Tata.



1994
Tata Motors released its multi-utility car, Tata Sumo in the year 1994.
After that, there was no stopping the car manufacturing unit.



1998
Ratan Tata drives the first Tata Indica off the assembly line.



1998
Tata Motors produced an SUV, Tata Safari. It was the first SUV to be designed,
developed and manufactured entirely in India.



2002
Tata introduced India's most competitive indigenous sedan, the Indigo.



2003
Tata Engineering formally changes to Tata Motors.



2004
Tata Motors acquires Daewoo Commercial Vehicle Company, South Korea.
The first range of Tata Novus vehicles from Tata Daewoo is launched soon after.



2004
Tata Motors starts its globalisation drive and launches the Tata Indica in South Africa.




2008
Tata Motors launched the most-awaited car of the year,
its one-lakh car called Nano, at the 9th Auto Expo.

Old car or new?

This is totally dependent on your mentality. And of course, there is a price differential. So, it is better that you identify your needs first and then take a call on the one that suits your purposes.

For instance, if you are someone who is looking for a regular upgrade in say, every two-three years, then a second-hand car makes sense. Moreover, if this is your first car and you are trying to learn driving on it, a second-hand car definitely makes much more sense. On the other hand, if you are someone who is happy using the same vehicle for a number of years, then a new car is definitely recommended.

Of course, there are other important parameters like your negotiating skills and the previous owner. For instance, a Parsi owned car commands higher value as Parsis are known to maintain their cars very well. As a Parsi friend confesses, We do not believe in repair? we replace.? Whereas even the latest model in the hands of a Young Turk (a la Schumacher) would create imageries of burning tyres and engine on an overdrive.

Before buying any car, here are a few things you need to consider:

1. What is your budget for the car?

2. What is your monthly budget for the car?

3. How do you intend to use it? Within the city or even outside the city? (Heavy weight age towards the latter means that you need a MUV or multi-utility vehicle like Tata Sumo, Mahindra Bolero etc.)

4. How long do you intend to keep the vehicle?

Now that you have answered the above, you know whether you want a new or an old car. But before you go for that old car, get yourself a cool car mechanic that is, a trustworthy one who will check the car for you. Ask him to check all the parameters like tyres, suspension, cooling etc.