UTOMOBILES

Lads After The Tallboys

ARINDAM MUKHERJEE

Auto firms rustle up an Indian dish: the mini-SUV, to sate, and whet, our big-car aspirations
PRIN SHA COMMENTS T RE

ALSO IN THIS STORY

here are two proven mantras in the booming Indian car marketthe love of cars small; and the

aspiration for monstrous, Ive-made-it sports utility vehicles (SUVs). Automobile makers are seeking to mix these two and serve up truncated, mini-SUVs that look posh, but can be bought for the price of a topend Swift, i20 or Ikon. If it works, this exclusive gambit will open up a new segment for notoriously fickle car consumers. With the most popular compact car segment (800-1200 cc) getting crowded, auto companieslike Maruti Suzuki, m&m, Toyota, Mitsubishi and Premier are betting that mini-SUVs priced in the Rs 4-8 lakh range will strike a chord with consumers. The USP lies in the specifications. The mini-SUVs are designed like their bigger cousins but have a length similar to a small car. Because their specifications fit the small category, these offerings will get tax concessions, making them affordable for Indias growing small carowning population.

Premier Rio, 1489 cc Price: Rs 5.25 lakh Launch: Out now

Needless to say, there is enough demand in the SUV segment. This is evident from the success of Maruti Gypsy and the response to vehicles like Mahindra Scorpio, Bolero, Tata Sumo, Toyota Qualis and Chevy Tavera. If a similar, more compact option was available at a lower price, it could be a winner, feel experts. In India, it is the SUV aspiration that is driving this niche. Initially, this market may be in the range of 25,000 vehicles per annum and is expected to grow at 10-15 per cent on a year-on-year basis, says Rakesh Mehta, vice-president, Premier Ltd, which is the first company to launch its mini-SUV in India. Named Rio, the 1.5-litre 65 bhp diesel engine mini-SUV starts at a little above Rs 5 lakh. Many others are in the queue, with offerings in the same price range. Fresh from the success of its new off-road vehicle, Xylo, Mahindra & Mahindra is readying its mini Xylo, a small, four-metre-long, 1490 cc diesel vehicle, which is expected to be launched sometime next year.

Maruti Jimny, 1.3 litre Expected price: Rs 5 lakh app Likely launch: 2011-1

Then, say sources, theres market leader Maruti, which has a mini-SUV launch planned sometime in the next financial year. While the offering could most likely be the Jimny, already popular in markets abroad, Maruti also has the Vitara platform to fill the spot. It also showcased the RIII concept vehicle in this years Auto Expo. Its a compact multi-activity vehicle (MAV), similar in format to the Toyota Innova, but smaller in size and conceivably much cheaper, with features like doors that open from the centre, a concept not available in India. Some other likely contenders include Mitsubishis Colt and Toyotas Avanza. Ford, whose Fusion roughly fell into the same category and had limited response in India, is also learned to be working on a mini-SUV for the Indian market based on its new platform, codenamed B515. Finally, the Tata Group, which has a vast experience in off-road vehicles, is also working on a crossover vehicle.

Toyota Avanza, 1.5 litre Expected price: Rs 6-9 lakh Likely launch: 2010-11

Obviously, these cars would have to prove themselves in a market where options are in abundance in every price band. This segment is being created in India. Globally, we have SUVs and muvs but the miniSUV is not an established segment. It is untested, warns Yezdi Nagporewalla, auto analyst with kpmg. Remember, these would largely be glorified normal cars, only looking like the rugged vehicles but functionally distant from actual ones. So forget the usual frills of a four-wheel drive, high engine power and other features associated with the real thing. Of course, as the market grows, keeping the pricing in the range may become a big challenge. But companies are betting on aspirations. SUVs are extremely aspirational and it is not a small market. The hatchback segment is also saturated and has too many players, says Hormazd Sorabjee, editor, Autocar India. And that is where these cars could find their niche as buyers graduate from tallboys and coupes to these mini-SUVs. If successful, it could well define a brand new segment in global automotive history.