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Mahindra expects EVs to take up 2-5% of Indian market
Economic Times, 17 Mar '15
Eco-friendly electric vehicles are a new concept, but have the potential to occupy about 2-5% of the Indian market in the next few years, a top official at auto major Mahindra has said, underlining the need for significant incentives to make them commercially viable. "We remain very optimistic that electric vehicles will become a significant portion, about two-five% of the Indian automotive industry, in the next four-five years," Pawan Goenka, Executive Director and President (Automotive & Farm Equipment sectors) at Mahindra told reporters. He said while electric vehicles may not become mainstream soon, but for them to become commercially viable for consumers there has to be a significant government incentives across the world. Goenka said that till now there was not much inventive in India for electric vehicles but the new government has earmarked in its annual budget Rs. 750 million (US$ 12 million) for faster adoption and manufacturing of electric vehicles in 2015-16. "I am hoping that starting in fiscal year 2016, we will start to see an uptake in the electric vehicles volumes," he said. He said Mahindra has very high aspirations for electric vehicles, including bikes and two-wheelers and participating in Formula E, the world's first fully-electric racing series, is giving it tremendous exposure in terms of technology and brand development. In the segment, Mahindra has invested heavily in its Reva Electric Vehicles as well as in California and Ann Harbour in the US to design and manufacture the product. Goenka said the concept of electric vehicles is new for consumers and the off-take of volume has been slow as it takes time for them to become comfortable and used to electric vehicles. To ensure a shift in consumer preference towards electric vehicles, Goenka stressed that there is need to develop infrastructure in India for such vehicles including charging stations. Mahindra has had to grapple with a decline in sales with the company registering a 10% decline in total sales in February. Goenka attributed the drop in tractor sales last year to a downturn in the industry. In the automotive segment, he said the Indian market has struggled quite a bit in the last two years and a turnaround has begun to happen only now. He said Mahindra had a very good run in 2012-13 when it significantly outperformed the industry but in fiscal year 2014-15 it underperformed primarily because of a shift in consumer demand that has gone from full size SUVs to compact SUVs. "Our products in the compacts SUV segment will begin to be launched in this calendar year and so while in the last two years we have had some loss in market share and volume, we hope that starting this year we will catch up," he said.
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2015 Geneva Motor Show Cars relevant for Asia
With the Geneva Motor Show underway, a plethora of concepts and all-new models are being unveiled, along with facelifts of existing models. While supercars and luxury limousines steal press coverage from around the world, Segment Y takes a look at the vehicles that will be relevant for emerging markets in Asia:
Hyundai Tucson
Hyundai has unveiled the all-new Tucson, which is wider, longer and lower than the outgoing model. With the Tucson name to be used globally (instead of ix35 in some markets) from now on, the SUV will be initially available in Europe with a naturally aspirated 1.6 petrol engine, a turbocharged version of the same engine, a 1.7-litre turbodiesel and a 2.0-litre turbodiesel in two states of tune. Sharing its all-new platform with the Kia Sportage, the new Tucson will be eventually launched in Asian markets such as Hong Kong, Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam, though it is too early to guess a time frame.
Hyundai i30 facelift
The i30 gets a relatively subtle facelift, with a redesigned grille, new alloy wheel designs and two new colours. European markets will get a new seven-speed dual-clutch transmission as an option, though it remains to be seen if this will be offered in Asia as well. Europe will also get a range-topping 180 PS 1.6-litre turbocharged petrol variant, though this is unlikely to make to it to Asian markets. The facelift is expected to be introduced in Malaysia at a later stage. Hyundai is also displaying the i20 Coupé, a three-door variant of its popular i20 hatchback; however, this bodystyle has limited appeal in Asia at this price point, and is expected to be available only through private importers as a niche offering.
Kia Picanto facelift
The facelifted Picanto gets a redesigned grille along with new front and rear bumpers, in addition to mildly refreshed interiors, an upgraded infotainment system and stronger brakes. The facelift will ultimately make it to Indonesia, Malaysia and the Philippines sometime this year or early next year, as well as Hong Kong and Vietnam (where it is called the Kia Morning).
Kia Sportspace concept
The Geneva Motor Show witnessed the unveiling of the Kia Sportspace concept, which previews the look of the next-generation Optima. In conjunction with what Kia calls the 'tiger nose' grille, the Sportspace concept gets swept-back headlights, a deep front bumper, a shooting brake-type profile, slim mirrors and an integrated roof-mounted spoiler, in addition to a sporty rear with twin exhausts and a very low-mounted third brake light. The inside features a touchscreen infotainment system, raised centre console, leather upholstery and brushed aluminium highlights. The concept is powered by a 1.7-litre diesel-electric hybrid powertrain, which Kia calls 'T-hybrid'. In Asia, the Optima is currently offered in Indonesia, Malaysia, Philippines, Singapore and Vietnam.
Renault Kadjar
Sharing its platform and engines with the Nissan Qashqai, the Kadjar will slot in above the Captur in Renault's crossover range. However, demand for such vehicles is limited in most Asian emerging economies, and as such the Kadjar is expected to be offered only in more developed markets such as Singapore and Hong Kong at a later stage.
Volkswagen Passat
Volkswagen's all-new Passat has been named 2015 European Car of the Year. Edging out strong contenders such as the Citroën C4 Cactus, BMW 2 Series Active Tourer, Ford Mondeo and Mercedes-Benz C-Class, among others, the Passat succeeds the Peugeot 308, which won last year. The new Passat is expected to be launched in Singapore in the second quarter of this year, and in the Philippines sometime later, with other ASEAN markets to follow. India will only get the car in early 2016.
Volkswagen Touran
The all-new Touran, which is based on Volkswagen's modular MQB platform, is longer, wider and lower than the outgoing model, though advanced construction materials and techniques have resulted in a lower kerb weight. The new Touran will get advanced safety and comfort-oriented features, along with an upgraded infotainment system and optional three-zone climate control. Though no time frame has been announced, the MPV is expected to make its way to markets such as Hong Kong, Indonesia, Singapore and the Philippines soon.
Skoda Superb
After its first unveiling in Prague in February, the all-new Skoda Superb is being displayed at Geneva. Also built on Volkswagen's MQB platform, the new Superb takes on an edgy, sporty appearance not seen on the previous generations. Billed as the 'best Skoda ever', the new Superb's design has been influenced by the Vision C concept unveiled at Geneva last year. Design highlights include angular headlights, sharp creases along the sides of the car, a bold grille and a conventional hatch at the rear (the previous model's TwinDoor dual-hinged boot has been dropped). The cabin is claimed to be even more spacious than the outgoing model and will get optional triple-zone climate control and a panoramic sunroof, among other features. An upgraded safety feature list for European markets includes Emergency Assist, Traffic Jam Assist and Crew Protective Assist, though some of these features may not make it to Asia for obvious cost-related reasons. Internationally, engine options include 1.4-litre, 1.8-litre and 2.0-litre TSI units and 1.6-litre and 2.0-litre diesel motors. Due in the Indian market by the second half of this year, the car is expected to be launched in Thailand soon after.
Ssangyong Tivoli
The first all-new model to be developed by South Korea's Ssangyong since it was taken over by Indian automotive major Mahindra, the Tivoli is a five-seat compact SUV designed to compete with the likes of the Ford EcoSport, Renault Captur and Nissan Juke. Initially, 1.6-litre petrol and diesel engines will be offered, in conjunction with a front-wheel-drive layout. Additional engines and a 4x4 drivetrain will be added later. If priced right, the Tivoli has great potential in India's booming compact SUV segment; Ssangyong already has a presence through Mahindra in India, and currently sells the Rexton SUV there. Other markets where the Tivoli may be launched in the near future are Hong Kong, Malaysia, Singapore and Thailand. The company is said to be looking for a new distribution partner in Malaysia to expand sales, and is even considering local assembly to bring down costs.
BMW 1 Series facelift
BMW has unveiled the facelifted 1 Series, with larger air intakes up front and redesigned head and tail lamps. On the inside, the infotainment system has been upgraded, while the dashboard receives new materials. Equipment levels are expected to be upped across the range, including full-LED headlights. New three-cylinder petrol and diesel engines are also being introduced, though they are unlikely to make it to Asia. The facelifted 1 Series has been confirmed for India and Malaysia this year, with other markets getting it either towards the end of the year or early next year.
Citroen DS5 facelift
The facelifted DS5, which was unveiled in February, is being displayed at the Geneva Motor Show. With DS3-style headlights, a new grille - featuring, for the first time, a DS logo instead of Citroën's regular emblem - and redesigned rear bumper, the refreshed DS5 is expected in Malaysia, Singapore, Hong Kong and Thailand later this year or early next year. The car also gets a new infotainment system and more efficient powertrains.
Citroen Berlingo facelift
Along with the updated DS5, Citroen unveiled the facelifted Berlingo at Geneva. Aesthetic changes are limited to a redesigned front end with a re-profiled bumper, LED daytime running lights and a new grille. Citroën's new BlueHDi clean diesel engines will now be offered on the Berlingo, though it remains to be seen if they are introduced in Asia, given the poor quality of fuel in most countries there. Safety features such as autonomous emergency braking will be offered on the European model as well, but may be dropped in Asia to lower costs. European van-derived MPVs like the Berlingo have limited appeal in most Asian markets, and the facelifted model is only expected to make it to Singapore later this year or early in 2016.
Suzuki iM-4 4x4, iK-2 concepts
While unveiled in concept form, both the iM-4 4x4 and iK-2 concepts are expected to make it to production by 2016. The former is slightly larger than Suzuki's existing Jimny, though significantly smaller than the Vitara. The production model is expected to be closely related to the YBA prototype that is currently being tested on Indian roads. If priced right, the model has great potential for the Indian market, where small SUVs such as the Renault Duster, Nissan Terrano and Ford EcoSport have seen a boom in sales. The iK-2 hatchback, on the other hand, is based on an all-new platform and will be slightly larger than the Celerio. The concept is powered by a 1.0-litre direct-injection petrol engine, with Suzuki having committed to offering a mild hybrid option on the production model.
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