VW, Honda, Hundai to be questioned on the grounds of fair price practice for the spare parts

In an interesting move, CCI (competition commission of India), the agency that works as watchdog to hold fair price/trade and practices  in India has ordered an enquiry in to Foreign automakers Honda/VW and Hundai. According to the complaints apparently by consumers, the auto spare parts are only available through the authorized dealer network and are sold at high price. They claim the parts are not available in normal retail outlets like parts from various Indian vehicle makers.

The availability and cost of genuine parts of these foreign brands are always an issue. If the claims are true, it is interesting to know the case for Hundai motors that is second highest selling brand in India now and has vast network and distribution system.

The other brands fairly lesser in sales, and often times the issues is to get the parts to be replaced in time. The dealers even order parts to replace. So it not sure why would they stack them at retailers or the retailer would be interested to stock them.

Honda has been facing issue in its aftermarket due to higher parts costs and has been struggling in sales, not necessarily due to the higher part cost, but it could be one of the prime factors when there is ample choice available for consumer. VW, started its journey through luxury segment and now it has Polo and Vento on market so might take a while to gain its spread.

However CCI, has ordered the investigation requesting a report within 45 days, so it would be interesting to know the outcome of report which most likely would not turned out anything significant.

TATA introducing Divo - Intercity luxury buses for India

TATA motors, the largest CV maker of India has decided to add competition to Volvo and Mercedes in luxury intercity bus segment. TATA that owns Hispano Carrocera, the Spanish bus body building and bus maker is launching its luxury intercity model Divo by 1^st quarter of 2011.

TATA took 100% control of Hispano in 2009 by acquiring balance 79% of remaining  stake making it 100% subsidiary called TATA hispano. TATA already has popular Globus model running on Indian roads with body built by hispano in Goa, India.

The Intercity luxury bus market is growing significantly with private and government owned corporations investing heavily in acquiring the fleets. Presently Volvo, the Swedish automotive major controls over 50% share in the segment followed by Mercedes. TATA, planning to price the Divo at around 10% less than the global brands and giving same luxury thinks it would position well in this segment.  

Picture - TATA hispano

TATA Pixel - TATA motor's answer to futuristic urban transportation

TATA motor’s newly showcased “PIXEL” looks as cool as its name itself. True to the name the car looks really made for the urban transport. The showcase of the concept came as surprise as Nano was pitted as TATA’s answer for global small car hunt. The car developed in its European Technology Centre looks elegant and seems to possess best engineering.

The car comes with a 1.2ltr, 3 cylinder turbocharged engine and offers just 3 meter turning radius. The engine is claimed to be highly fuel efficient and environment friendly.  True to its claim for urban usage, the concept car offers the scissor styled door. Not sure in the commercial vehicle it would really be viable from commercial cost perspective.  An electric variant also is on cards, however TATA is more keen to start its Indica EV running on European roads.

TATA as a car maker, has a lot of woes for its ambitions in India to capture the market share. However it seems to be making every good move to show its presence in European market. Undoubtedly TATA has made significant investments in its R&D/Engineering for PV segment from setting up an European Tech centre in suburbs of London, having seasoned Automotive professionals in engineering, management including its top management, collaborations. The much hyped Nano, really did not let TATA help realize it in terms of commercial success. TATA does not have enough models to fill the narrow segments on Indian road that is filled with best of the models from global car makers. Its Indica is by far the most popular model that helped TATA stand on its feet in PV segment following a series failed models. Like TATA, all pundits felt Nano would be a run away success due to its perceived low cost that was not there. Even if TATA tried to sell it at its hyped below $2500 price tag, it knows it can’t make money by selling at that price. 

India is a tricky market, as majority of the middle class the whole world is looking at is cost sensitive but has very high aspirations. Adding about 100,000 or so more for a bigger car is not an issue for the people whom Nano was targeted. TATA tried various marketing campaigns to pitch its value for money theme but has not shown in the sales yet.

But all its investments and visions might payoff in Europe in next 4-5 years. As the European market is matured and has one need – Small and electric.









Pictures copy righted by TATA Motors.