Monday 26 January 2015

Deserving of awards?

So make that two in a row for Hyundai India. Last year their second-generation i10, the Grand i10, won the Indian Car of The Year (ICOTY) award, and this year the second-generation i20, the 'Elite i20', won the award. A question one can ask is whether Hyundai really needed to use adjectives in front of car names; while it might make sense in case of the i10 with the previous generation car still in showrooms, but the new Elite i20 has replaced the old one completely. 

The fact is that even the first-generation i20 was a sales success (Disclosure: the author owns a 2011 i20). And there is a very simple reason for that, the Elite i20 is the best largish small car that one can buy in India. 

Yes, a three-box car does offer the ability to keep luggage flat on the floor, but hatchbacks are simply easier to own. While the prestige factor of owning a car with a boot is often given by car manufacturers, that is using 1990s marketing strategies. These ‘compact sedans' have been attractively priced because they manage to fulfill the Government's sub-four meter norm for 'small cars' making them faux small cars. And while designers have managed to make the newer compact sedans slightly more attractive aesthetically, most of them are frankly quite ugly. The length restriction makes many of them look like the designer took a meat cleaver to the rear end of the car.


And here is the funny thing, a fully loaded i20 is more expensive than some of these cars, although since it is a larger platform, it is actually more comfortable inside than some of these cars, because the i20 is wider and has better rear legroom. i20's sales success is indicative of people’s desire to have nice, large small cars. And there is another thing about Hyundai cars, indicative of why the brand has been so successful and why cars like the Grand i10 and the Elite i20 win awards — the parts of the cars that the customer touches and feels are very nice in every Hyundai. Sure, Hyundai's cars look nice inside and outside, feel nice and come kitted out with all the toys and are attractively priced. 

However, as mentioned above there is a dire lack of large hatchbacks in India. This is partially due to the Government regulations that cap the size of small cars for excise benefits at just four meters. Most small cars sold in India are well below this requirement as most of these cars are also designed for a global market where such small hatchbacks are considered single-person cars.

In India though, the car is still for the large part a family vehicle. While there are a growing number of single-person owned and driven cars, even those are often used to haul a lot of people and/or luggage occasionally, particularly in urban areas. Even for weekend trips, hatchbacks are perfect for young couples, and given that the higher-end model hatchbacks come with a split rear seat for additional storage, they are perfect for them.

And despite the current ban on services such as Ola and Uber, the fact is that taxi services across most cities have improved dramatically, so getting to and from airports and stations is a lot easier than before. With vehicles like the Grand i10 and Elite i20, Hyundai has managed to catch a niche, people who want nice, largish hatchbacks. And if their rivals continue to cede this space to them, they do so at their sales peril.

Published By:  The Pioneer

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