If Darwin loved cars...
...he’d perhaps have a view similar to auto analyst Murad Ali Baig about the evolution of the Indian auto majors!

The world’s auto companies are flooding into the Indian market at such a dizzy speed that buyers are more confused. Buyers today can choose among about 40 different models with 200 options in petrol and diesel engines and trim levels.

Maruti, or rather Suzuki, commands half of India’s passenger car market dominating the small car segment with seven cars and four utility vehicles, but just a small share of the bigger cars. So the peppy new SX4 was recently launched to offer a bigger car. Customers are confident about Maruti’s wide network of service and spares and the company has wisely promoted this ASP.

Hyundai made a great success of their small Santro and changed public perceptions with their Shah Rukh Khan campaign that changed ugly into cute. They then did well with their Accent and even more spacious and powerful new Verna. However, they did not succeed in persuading higher income buyers to go for their bigger Elantra and Sonata brands.

Tata Motors on the other hand have done so well with a number of well priced models based on their 1405cc predominantly diesel engine. They offered outstanding warranty to overcome initial problems. They have now allied with Fiat in India to first make their excellent petrol Palio and later bring in larger models from Fiat’s big stable. But Fiat’s image badly needs refurbishing and this is taking time.

Mahindra & Mahindra’s Scorpio has succeeded in being a spacious and comfortable vehicle but it is not a car. So they have just launched a real car, the Logan that is a product of their new alliance with France’s biggest carmaker Renault.

Japan’s Honda has done brilliantly with their City and big Accord and with their new Civic that is positioned between them with high reputations for fuel efficiency and reliability needing little support from advertising and promotion. Honda’s main global rival, and Japan’s largest automaker, Toyota commands the personal utility vehicle segment with their very successful Innova, but it has a small presence with the Corolla and imported Camry.

GM now sources most of its products from their newly acquired Daewoo plantsin Korea from where we have their spacious Optra, the smaller Aveo and their new small Spark that evolved from the Daewoo Matiz. The U-VA is a shortened hatchback version of the Aveo positioned just above the Spark. None of these brands have strong associations in India so constant advertising and promotions are necessary to attract consumers.

Ford made India their base for a brand new Ikon platform and is doing the same for their slightly bigger Fiesta models that includes a semi sports Fusion. Ford is a strong brand but does not enjoy an image comparable to that of their Japanese rivals so needs brand and promotional support. The Skoda Octavia has also been a success story among bigger cars despite the fact that few buyers associated it with its parent company Volkswagen. Its strong image for solid cars with and economical diesel engines requires little support.

The luxury segment, dominated by the German brands, is growing fast. Mercedes Benz had been the first and they sold over 2,000 cars last year. Now BMW has set up a plant and Audi will soon follow suit. Among the imports are also a few exotic cars from Porsche, Lamborghini, Ferrari and others.

India’s car buyers are very savvy and mainly look for fuel efficiency, reliability, service and resale value. As affluence increases many buyers change their cars even before their first set of tyres need to be changed. The market is very volatile and new models are appearing every month to tempt them.

Shall we shoot the analysts?
The Sensex crosses 15,300... and more

(column by Sunanda Roy)

“Riddikulus!” That is the antidote incantation used by Harry Potter and his mercurial wizard (and witch) friends to convert the fearsome Bogart monster into a harmless creature. And that seems to be the very charm used by FIIs to convert those innumerable morbid Sensex forecasts – of an impending crash – into historical highs! What else can you say when the Sensex not only crosses the 15,000 mark, but also reaches a never-before seen high of 15,341 on July 16, 2007. But then, is it really time for merry-making in Dalal Street or is it too premature a time to be boisterous about the achievement of our spectacular Sensex?

“Long-term prospects remain good apart from a high liquidity presence and a growing appetite of Indian investors, which is likely to keep valuations at stretched levels over the foreseeable future,” exclaimed J. P. Sinha, Director and Head – Research, Ambit Capital to 4Ps B&M. Nikunj Doshi, Fund Manager, Kotak Mutual Fund supported this viewpoint even over the long term to 4Ps B&M, “Both fundamentals and liquidity are favourable right now for India. The positive undertone will continue in the coming years.” Then what was it with all the socalled experts shouting hoarse about over-valuations? “Look at this perspective – it was only a few weeks back that inflation was dangerously high and interest rates much higher! How could any sane investment analyst have supported the theory of spectacular Sensex growth then?” defends Amit Saxena, CEO, Planman Financial, to 4Ps B&E.. Truly, macro-economic factors are more conducive today than before. And with inflation and PLRs seemingly down, the day is not far when the Sensex thunders further ahead. And then? Let’s just shoot the analysts, shall we :-)

(End of Sunanda Roy column)

Will it, won’t it, will it...

(column by Gyanendra)

Rise? The question is directly related to interest rates on home loans. But the prognosis is pretty elementary, for all the Watsons worried down to the Baskervilles. Rising interest rates and increasing EMIs, which have till date been the harbinger of worries for millions, may find some temporary respite as banks have brought down their floating home rates as a part of monsoon bonanza. Banks, which were till date very retrogressive by keeping their home loan interest rates high, have started being aggressive for a change; marketing loan products by offering lower interest rates, obviously aimed at roping in more customers. While HDFC Bank jump-started the domino falling process, ICICI Bank – currently the nation’s largest home loan provider – too, has reduced floating interest rates on loans up to 50 basis points (loans below Rs.2 million reduced by 25 basis points) for all the new customers.

For that matter, though a 25-basispoint reduction in the lending rate on a Rs.1 million loan would bring down the EMI by just around a meager Rs.160, it is argued that even the information that interest rates have been lowered – by whatever amount – has a huge positive effect on prospective home buyers ‘intent’ to purchase, especially during the upcoming lean monsoon season. Vijay Goel (Integrated Operation Cell, ICICI Bank), while talking to 4Ps B&M, agrees, “The credit growth has been quiet slow and this monsoon promotional offer will certainly help us attract more customers.” So is it a good time to buy a house? If that’s a question to us Mr. Watson, you’re perhaps already late... Go for it!

(End of Gyanendra column)

In vogue, Valentino
Forty five years of couture, and counting...

(column by Swati Hora with inputs from Angshuman Paul)

Valentino Garavani is a legend in the fashion industry. His flair for style and urbanity was admired since his apprenticeship days, and though he couldn’t gather much attention when he opened a fashion house in Rome, it was the entrepreneurial brilliance of his future business partner, Giammetti, that took his sexy collection to the world’s fashion capitals. Right from his first show in Florence, his client base began to strengthen. He has dressed public figures like Jacqueline Kennedy and Hollywood luminaries like Gywneth Paltrow and Julia Roberts – who even wore his gown to the Oscars. The 45th year of Valentino’s career was celebrated in Rome between 6-8 July, where apart from the golden fireworks, 33 dresses – designed over 40 years – were displayed too.

Valentino’s work has always flattered feminine contours, and his skill has earned him much respect. As Jattinn Kochhar puts it, “Valentino is a great pillar in the fashion world and he’s among the fewest of the few, who can match classic with contemporary. I think, even fashion institutes should include his work in the syllabus for complete knowledge and understanding of fashion.” So here’s to another 45 years of Valentino!

(End of Swati Hora with inputs from Angshuman Paul column)

The bugle’s been blown
Music can save the world...

(column by Anu Gulmohar)

Where the morning news on 07/07/07 talked of how incredibly lucky the day was for marriages, by noon Live Earth conquered the air-waves across the world. “We’re making sure Live Earth is broadcasted in India, for it is the fastest growing economy and this could very well be an opportunity for the nation to lead the world,” said Yusef K. Robb, the representative from Live Earth. Apart from radio, even VH1 captured the event and spread the message about how climate change should be people’s foremost concern.

Scientists are warning us about how we’re losing plant and animal species, as the temperatures across the globe steadily rise. About how on just another hot day like today, we might witness sprawling urban areas get engulfed by the rising waves.

Al Gore, Kevin Wall and Cameron Diaz have been at the forefront of Live Earth, with 150 artists performing at the series of concerts that began in Australia and ended at the Copacabana beach in Rio de Janeiro. Elucidating ways of saving energy, the concerts witnessed dismal viewership on the telly, but interestingly, broke the previous record in streaming media on the net, with MSN delivering 30 million live and on-demand streams till two days after the shows. While Live Earth is now over, Al Gore’s three-year campaign on educating people about combatting climate change has only begun.

(End of Anu Gulmohar column)

Accessories & Gizmos

Style watch!
Here is another flash for watch aficionados. Ubercool, elegant and appealing, the newly introduced Link Calibre 6 by TAG Heuer, the worldwide leader in luxury sports watches, embodies exquisite elegance. It is vertical textured, double-sided, has anti- reflective coating, a sapphire-case back, hand-applied markers and logo and a stylish large seconds counter. And with a choice for three dials – black, brown and silver – the impeccable style emblem could be yours at just Rs.96,000.

Gift and express...
Think gifts, think Bvlgari; for none can match its newest ‘Silver and Precious Gifts Collection’ – a complete range of unique and glamorous gift ideas, including everything from pens, cufflinks, key holders to the extraordinary money clips and atypical office items! All items are made in rich materials such as silver, gold, enamel, resin & rubber, and the most precious models are enriched with diamonds! (Available at the Bvlgari Boutique, The Oberoi, New Delhi) Price on request.

Rubbing it the right way!
Here to bust stress and help you cope with the ultra-strenuous lifestyle of this age, the opulence massage chair by Panasonic Home Appliances India Co. Ltd. christened ‘EP 3510 Real Pro X’, is loaded with luxurious features to de-stress your body. It caters to the largest massage area possible – head to toe (yes, fingers included!) – and is equipped with a unique Body Sensor that estimates the height and weight of the user and thereby customizes the rollers to fit the user’s body size and shape. Did you hear... rejuvenation just became electronic! Priced at Rs.3,60,000.

‘Tech’ing over corp needs
The latest to take the gadget market by a storm is none other than the hi-tech S60-series, Nokia E90 Communicator! This 210 g gadget is packed with everything imaginable – 3G connectivity, integrated WLAN, mobile office, quad-band GSM, integrated GPS, 512 MB micro SD memory card, 3.2 mega pixel camera, FM radio & music/ media player, ergonomic full qwerty keyboard and an impressive 800x352 pixel resolution in 16 million true colours for vibrant detail, to name only a few! You just cannot afford to give it a miss! Price: Rs.37,500.

Bang on!
Bang and Olufsen makes a double impact with the BeoVision 8 – a 26” 16:9 TFT LCD TV designed by David Lewis, exemplifying craftsmanship and performance. With exceptional picture and sound quality, it’s optimised for casual use. This 72x44x22cm wonder comes in black and silver cabinet finish and is designed to style your life better... Priced at Rs.1,85,000.