Automobile giants to sport 'Made for India' label
By agencies   |   Tuesday, 12 July 2005, 19:30 IST
Printer Print Email Email
Mumbai: Gone are the days when European and Japanese carmakers adapted their existing car models to suit the needs of developing markets such as India. Everyone from Ford to Toyota, who are present in the market, to Volkswagen, who is exploring an Indian operation, are busy readying cars that are tailor-made to suit the need of ‘new’ markets. While Ford is fine-tuning an all-new mid-size product meant for a global launch in India. Toyota is all set to take a lesson from its subsidiary Daihatsu to capture the Indian small car market. Volkswagen, the original people carmaker, is reported to be busy developing a small car that has the spirit of the famous Beetle. This is not the retro-chic Beetle that was launched world over to cash in on Bug nostalgia, but an all new product that carries the same genes of Hitler’s pet project that put Germans first, and the rest of the world later, on the road. ‘The new car will be cost effective to build, easy to maintain and cheap to run’, according to VW sources. Renault, the French giant, has already understood the necessity of a ‘car for developing market’. The Logan, which will be built in India through a model-specific joint venture with Mahindra and Mahindra, is one such machine. “The Logan is affordable but does not compromise on engineering or safety,” says Anand Mahindra, chairman and managing director, Mahindra and Mahindra. “If Renault had compromised in any of these areas the car wouldn’t have been a runaway success in Europe,” he added. Another factor that was working towards market-specific cars is cheap labour. Cars such as the Logan are designed to be produced from labour intensive, low-cost production facilities, which reflect in the list price. Ditto, the upcoming Ford and VW cars. Not following the trend is General Motors who was ‘gifted’ an entire gamut of new products when they acquired the Daewoo operations. ‘GM-Daewoo Automotive Technologies (GM-DAT) gives us a definite cost advantage and that means the spending on new car projects is much lower. But it will be an understatement to say that GM tailors these cars to specific market needs’, said Rajiv Chabba, managing director, General Motors India. “GM-DAT has acquired the all important Diesel technology and that will be crucial for success in the developing markets,” he added. By building the Suzuki Swift with a localized and proven power train (engine and gearbox minus gear wheels) Maruti Suzuki ensured that their hot seller was tailor made for India. If Maruti had used the Euro-spec Swift in India they wouldn’t have had the definite price advantage that the hot hatchback is enjoying now. The Swift programme, from the onset, had India and China (where the car is sold with similar specification as in India) in mind.

siliconindia