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Automobile: An Asian small-car race this year

Ha! It'll be an Asian small-car race this year..

This is going to be a busy calendar for three top Asian automakers' small car plans for India. And even while the industry is concerned about issues relating to interest rates and material costs, Toyota, Honda and Hyundai are planning to go flat out in 2011 in an arena where Maruti Suzuki reigns supreme.

By end-March, Toyota will have launched the Etios Liva hatchback which is expected to be priced aggressively under Rs 4-lakh for the base version. Honda, likewise, is planning to pull out all stops for the Brio which was originally planned for an October debut but will hit the roads at least a month earlier. The last will be Hyundai with its sub Rs-lakh HA which has been touted as the ‘real challenger' to the Tata Nano.

VOLUMES GAME

The imminent tug-of-war is intriguing in more ways than one. It will, possibly, be for the first time that Toyota and Honda would be competing in the volumes game. From the time they began their India innings a decade ago, the two Japanese companies have steered clear of each other.

While Toyota focused on the utility-vehicle segment with the Qualis (and now the Innova), Honda made its intent known in the premium car slot with the City. Observers say the Corolla-Civic duel would actually be nothing compared to what is in store with the Liva and Brio.

Honda, in particular, needs a break badly especially after the lacklustre response to the Jazz premium hatchback. Its City continues to be the flagship brand but the Brio would catapult it to the next level because of its potential to generate numbers.

In contrast, Toyota would be justified in thinking it has had a stronger headstart thanks to the response to the Etios sedan which has received over 20,000 bookings. This feel-good factor will percolate down to the Liva. The Brio follows four months later and Honda is expected to be on overdrive with its branding and marketing efforts.

FORCE TO RECKON WITH

Hyundai's 800cc HA would be the last to debut but the Korean automaker is a force to reckon with in the compact car segment. Its i10 is doing brisk business while the larger i20 has shown the Honda Jazz how smart pricing can make a big difference. The HA is expected to take on the Maruti Alto which is the largest selling model in India.

Hyundai will leave no stone unturned to ensure that the HA takes off with a bang. And given that its international business is on the wane, there is more reason to pay greater attention to the domestic market.

It will be interesting to see how these new cars alter the leadership stakes in the compact car segment. A section of the industry believes that Asian carmakers understand the needs of Indian buyers a lot better and, to that extent, the Japanese and Koreans could have a good thing going.

Santro exports hikes.

Santro exports touch 5 lakh units

Hyundai Motor India Ltd (HMIL) announced on Tuesday that its flagship model Santro has touched the 5 lakh unit export milestone this year.

The first car to be introduced by the Korean automaker in India, the Santro compact is made at Hyundai's Chennai plant and is exported to over 80 countries. The second largest carmaker in India, Hyundai is also the largest car exporter at 40 per cent of production and has a 57 per cent share of the country's car exports.

RETAIL: Gloria Jean's coffee in a cart

Gloria Jean's serves up coffee in a cart

Premium Australian coffee brand Gloria Jean's Coffee has caught customers' eyes by serving coffee in a street-styled ‘thela' (cart). Brought to India by Dubai-based Citymax group, the company tried out three retail formats and the brew-on-the-move concept has clicked.

Now, it might use the concept for promoting brand visibility. Initially they have three formats namely high street, kiosk, and the mobile cart. The cart was launched in Hyderabad last year and has been a huge success. Hence they  would like to replicate it; however, we would not want to be identified with only a cart.

The Australian chain sells its cuppa between Rs 60-110 and is positioned premium. Its carts will sell coffee in malls and in high traffic shopping areas.

EXPANSION

Gloria Jean's Coffee entered the Indian market in 2008 and is expanding across key cities. The chain which opened four outlets in the Capital on Tuesday, said it has 250 stock keeping units including food and merchandise. The company plans to have 200 outlets in the next three years. The company-owned and operated stores entail an investment of Rs 50 lakh per store. At present, it has 17 stores.

The company would consider sub-franchising the brand. Citymax's expansion in India will be funded by its parent company, the Landmark Group, along with bank loans.

The organised coffee segment in India is estimated to be growing at 40 per cent and is pegged at Rs 1,000 crore. A few key factors influencing this growth is transition of certain sections of the population from traditional tea-drinkers to coffee lovers, increasing amount of disposable income and exposure to international brands.

The market too has been buzzing of late with global chains such as Starbucks on the verge of entering India. Though there are several competitors in the segment — Barista, Cafe Coffee Day and Costa Coffee — the market is far from saturated.

A study by Coffee Board of India pegs the domestic coffee consumption at one lakh tonnes in the year 2010. Further, out of more than 3,000 cities in India, coffee retailers are present in only 175 cities which indicates the enormous growth potential the industry holds.