It may notch up the numbers, but competition is going to be
fierce, says Veeresh Mallik
The launch of the Hyundai Eon was supposed to be the
game-changer again in the small-car market in India. But, after the price was
announced, it appears to be one more in the list of ‘will-also-run’ in the
rapidly growing list of small cars aiming for the Indian market. Proving once
again that, after the initial song & dance is over, Indians choose to apply
numbers over sentiments. For a car that reminds one more of the Tata Nano than
the older and slightly more expensive Hyundai Santro, it is clear that dealers,
financiers and perception-builders have their work cut out, if the Hyundai Eon
is proposed to ride as a volume-builder.
If, however, the
Hyundai Eon is aiming at becoming a specialty car, towards a largely urbane
market which needs more spark and an alternative, then at a shade under Rs3
lakh for the slightly-loaded version, it may not appeal even to specific
groups. However, the grapevine doubts Maruti Suzuki’s ability to compete in
this segment. This may just provide the Hyundai Eon with the impetus needed to
notch up numbers. The truth is that automobile success and failure in India is
now increasingly decided by the views of those who finance vehicles, and those
who understand bottom-lines—especially residual values and cost of ownership.
And, in that
numerically-quantifiable aspect, the resale value of some Hyundai small cars
appears to be steadier than that of other brands—and almost as good as what
people have come to expect from Maruti Suzuki over the decades. Will this be a
factor in helping sales of the Hyundai Eon? A potential surprise in the form of
a small turbocharged diesel engine, from both manufacturers, may be the real
game-changer. And this may be launched soon. While the base edition of the
Hyundai Eon has been set at about Rs2.70 lakh (ex-showroom Delhi), the valid
market estimate of a good price for it would be in the region of Rs2 lakh
through Rs2.10 lakh, is what is being said. Who knows, Hyundai is not unknown
for offering discounts and sweeteners.
Safety: Don't get carried away
Go easy on turbocharged engines
While talking about turbocharged engines, the spate of
accidents involving high-end luxury cars in and around the capital recently as
well as elsewhere in the country has brought out the fact, once again, that
tampering with the engines and the control units therein, as well as ‘flashing’
the whole apparatus put together, called ‘high-power cars’ in the name of
upgrading for increased power, as well as removing speed limiters, is fraught
with danger. Up in the mountains, last weekend, in a slightly old ‘luxury car’,
which had been re-jigged for increased performance, taught me lessons which I
had forgotten.
The golden rule in
the mountains, especially with the onset of the cold season, is to always drive
200% safe. You never know when a drunk holidaymaker careens out of which
corner, or where the dry & steady road with good grip suddenly becomes wet
& slippery with dew or frost. As the saying goes, there are bold mountain
drivers and there are old mountain drivers, but there are very few—if any—bold
and old mountain drivers. But then this car, picked up for all of about Rs4
lakh and rebuilt, was capable of so much more. And long white hair whipping
through open windows in the fresh air has its own seduction. While we do follow
a strict ‘zero-alcohol’ policy while driving in the mountains, or long-distance
anywhere for that matter, we were keen to see how much more we could get out of
the old bomber—where some interesting multiple turbocharger reconfigurations
meant that keeping the car in low gear while going uphill provided fantastic
acceleration and all that goes with it.
Till something else totally unrelated, in the suspension,
which had also been ‘adjusted’, simply gave way under the tremendous power and
torque being unleashed beneath the roaring horses and pushed us almost over the
edge of a drop a few hundred metres deep. With the front hanging over a deep
gully, we stepped out and arranged for a local Jeep to drag the car back and on
the road, and drove very, very carefully for the rest of the journey.
The importance of one simple fact—that an automobile is a
very delicate combination of a variety of super-specialised parts and
sub-assemblies, can never be lost when upgrading or reworking a motor vehicle
to get better ‘performance’. At a simple level, it is like this—you cannot
upgrade the motor of an old Jeep to one that was intended for a Pajero and then
expect that everything will function as in a Pajero. For that matter, you
cannot even safely upgrade an old SUV’s (sports utility vehicle) engine, and
hope that all is good.
No claims: tough policy
Its time IRDA visited the norms
A few weeks ago, I had written on how no-claim bonus (NCB)
for motor vehicle insurance covers could be carried forward from one vehicle to
another, as long as the owner was the same, and also on the benefits therein to
the owner of the vehicle. This used to be a fairly standard procedure as long
as insurance companies were comfortable with the concept and there was an
element of mutual benefit as well as a service ethic.
But probably as a
result of increased competition and some other aspects like commission on
premium paid for new policies versus lower commissions on carried-forward
policies, there appears to be a change in the way things are actually carried
forward on the ground, and it appears to be increasingly difficult for the
average insured person to carry forward
his NCB.
To start with, the insurance company insists on a ‘survey’
of the outgoing vehicle which, obviously, is no longer in the possession of the
person who has sold it. There is also a survey cost involved here, and the
complete effort, coordination as well as problems that arise for every small
scratch and dent on the outgoing vehicle, even if there is
no claim.
Next, a similar survey is insisted upon for the incoming
vehicle, which is understandable. But the manipulations of the surveyor or his
representative kick in—minor scratches are shown as dents and the report is
made to appear as though the vehicle is a big liability. However, the
surveyor’s representative drops enough hints that if one talks to his ‘office’
the matter can be resolved. Finally, at
all stages, the insurance company will keep trying to shove
a new policy down your throat. For obvious reasons.
I have a 65% NCB on one of my outgoing cars, and it has now
been almost three weeks since I have been trying to transfer it to another car;
the saga continues. A lesser human being would have given up, but I can see an
article in this experience, as well as make some suggestions to IRDA (the Insurance
Regulatory and Development Authority). Even if it means a repeat regulatory
survey on NCB. But then, that will work only if IRDA chooses to be consumer-
and insured-friendly, and that, as they say, is another story..
