Indian Cars: Domestic Variants Vs Export Variants

[Akash1886]

Friends.

The reason to start this thread is to understand why the Car OEMs working in Indian market discriminate between the Domestic Variants and the Export Variants of the same vehicle? Why are the cars which are provided to us are highly compromised on features and primarily on the safety front in comparison to the Export Variant of the same model? To name a few examples I'll take up one of the oldest OEM catering to India and other countries i.e Maruti Suzuki.

Eg: Why the Ciaz Export Variant got a 1.6 L engine and not the Indian one?

Eg 2: Why the Celerio's export variant got more airbags than the Indian Version?

Eg 3: Why the mediocre engine specs provided to Indian Market/buyer in comparison to better ones being exported by the OEMs from here?

I have taken just one brand here. Please feel free to share your views on the same with other existing Car OEMs present here in India who export cars to other countries.

Regards

Akash

 

[roman]

Re: Indian Cars: Domestic Variants Vs Export Variants.

Good thread. The manufacturers cut corners in India. Evident in safety devices and Engine specs. They usually sell older models in India. Leaving out safety devices is a big area of concern. I also wonder how come Bread and Butter models like Corolla and civic be sold in India as luxury sedans. I still remember my days in U.K and these models were marketed as low end cars. I had seen the old Lancer used for pizza delivery when I once visited Dubai,here they marketed it as a midsized car.

 

[Niku]

Re: Indian Cars: Domestic Variants Vs Export Variants.

Very nice thread, Akash, as always.

I still fail to understand why the Indian market is considered inferior? OEMs not only differ the Indian car market from the rest in terms of the features, specifications and positioning (in segments) of cars but also have different attitudes with Indians. In the foreign countries, 'Skoda' is as good a brand as 'Honda' in India. People are satisfied and the entire Skoda team (from dealers and top-end executives to customer-care) is very supportive and positive. Coming to India, lack of desire to sell, long waiting lists for spares, lack of availability of parts, frauds, forged signatures, thefts, etc. are associated and pretty known (to enthusiasts) with Skoda. I know that Skoda dealers are to blame but Skoda could themselves take corrective measures and make stringent policies.

Indians get lower spec models, outdated designs, lesser equipment due to the tax subsidies (for sub-4m) in India and maybe, because of limited spending of Indians. The infrastructure can also be blamed. How many roads do we have to drive powerful fast cars? This may be a reason for less-powerful cars for India. How many hot hatches do we have in India? The mentality can also be blamed. In India, people don't buy top-models as "they can't show off airbags and ABS" (as I was told by the Maruti SA himself) and settle for models with good cosmetic features. They are less bothered about safety ratings. Presence or absence of fog lamps, power windows, etc. matters more in India than ABS, Airbags, etc..

Regards,
Nikunj

 

[SiriSiri888]

Akash thankyou for this thread! These OEM's not only differentiate in engine specs and saftey features, but also in the quality of materials used in its interiors. For the price they quote in Indian variants the cheap materials used by some of the OEM's is far inferior to similarly priced car in other countries. They have this mindset- we sell great elsewhere, brand image is enough to sell more cars here, so why bother incorporating better materials when you can do that with inferior ones!

 

[HARI GANGADHARAN]

Eg: Why the Ciaz Export Variant got a 1.6 L engine and not the Indian one?

Eg 3: Why the mediocre engine specs provided to Indian Market/buyer in comparison to better ones being exported by the OEMs from here?

High displacement engine provided by manufacturers from India in foreign countries is due to the lack of tax benefit rules in that countries.

For eg: The QUANTO sold in South Africa is powered by the same 2.2L Mhawk in Indian XYLO whereas Indians get the puny 1.5L powertrain in local Quanto.

I somewhere heard that MSIL is going to plonk the 1.6l version in CIAZ.Am I Right?

 

[Akash1886]

I somewhere heard that MSIL is going to plonk the 1.6l version in CIAZ.Am I Right?

Probably sometime in future HARI this "might" come. However, in present and at the time when it was launched, Maruti could have easily provided it with a 1.6 L engine. I say this because earlier and even in present, Indian market has seen cars like Chevy Optra and Hyundai Verna sporting a 1.6L engine. CIAZ could have got that too easily. Also, in present context, the S-Cross which is nearing the launch, even that's having a 1.6L engine. I feel that OEMs here have their own fantasy world and they just see our market as "not yet ready". If India is seen as a fast developing economy, then why do our OEMs still hold the perception of India being a gullible market?

Regards

Akash

 

[vikyjoshi]

Well the answer is quite evident. They are here to do business. If we desis are hell bent of lapping up what ever is dished out by these manufacturers why in the name of god would they give us more?

There are regulation as well which are not stringent. So its dual effect which helps these manufacturer.

 

[nmm mithra]

These types of variation in domestic as well as in the export happens mainly because the exported cars must be of perfect quality otherwise they would reject the products.

According to me, i think
1. In foreign countries only when they have higher Cubic Capacity they might able to drive in the highways non-stop but here in India we have both 2 lane and four lane roads so we indians may be in need of a lesser Cubic Capacity.

2. And we Indians only calculate the Fuel Efficiency as the fuel prices are higher but in foreign countries people spend a lot and their fuel prices are much lesser than ours. Still there are people who often calculate fuel efficiency in foreign countries so we indians need a lesser Cubic Capacity car (1.3 Lit. or 1.4 Lit.) to get more fuel efficiency so that's why car manufacturers are producing accordingly.

But then still car manufacturers must produce a better car for India with better safety features.

 

[Prads]

Good topic Akash!

Remember how people went crazy when Duster AWD got launched. It was being made here from day one & sent to the UK market.

Also i remember i20 2 door versions with better features were made & sent abroad.

And most of our cars being made here & exported have better ABS & also standard ESP & that just changes the game. Really keeps the car if you hit the track or any emergency.

 

[Akash1886]

Remember how people went crazy when Duster AWD got launched. It was being made here from day one & sent to the UK market.

Also i remember i20 2 door versions with better features were made & sent abroad.

The same thing has happened with Honda Jazz too. The 1st production that began in India was that of an export model and sent to Africa. Then it was Australia and then its nearing the launch in India. The export variant of Jazz would certainly be better equipped than the Indian version. I really don't understand this sub-standard attitude of OEMs. It is not only because of buyer's mentality here but to a good extent its also the gimmick by OEMs to provide features which are seldom of use and refrain from giving features which are actually usable by us. In one of my old threads I did ask, are the vehicles "fairly" priced in India. Over here it is of immense importance that do we get what we pay for? or do we get much less than what we are paying for to OEMs here? because comparing the overall finished products which are given to us are way behind than export versions in every area.

Regards

Akash

 

[Lameassonwheels]

Our govt. is interested in updating regulations related to excise duty, VAT and other taxes in every budget. The same enthusiasm is not shown in setting basic safety and quality standards for vehicles. IMO ABS, airbags should be integral parts of a vehicle just like a tyre, steering or brakes.

I am not sure about the figures below, but it must be something in that range. More than one quarter the excise duty for a 1.6 Ltr car!. Come on!.
What facilities the vehicle owners are given in return of paying all these taxes!. Most of the roads we drive through today are built in the times of our forefathers,
and nothing much changed except few re-tarrings. I do agree there is development everywhere, but not upto the magnitude of tax levied each year from the citizens.

Taxes at Time of Buying Car
Excise Duty
12% Small Cars under 4 Meter Central Government
24% Cars with Length > 4 Meter and Engine < 1.5 Lit,
27% Cars with Engine > 1.5 Litre

VAT
12.5% to 14.5% State to State irrespective of Vehicle Class State Government

Road Tax
3% to 24% Based on Vehicle Pricing - Differential in every State State Transport Department

Source: Mycarhelpline.com

 

[HARI GANGADHARAN]

IMO the product difference is not only the problem here but also the number of products(if we take the case of foreign companies).For eg, if we take the case of Toyota,they have only a small number of products here in India but can you count the number of models they sold in US?Why they didn't want to sell it here?

Other example is FIAT.Just open the official international FIAT webpage.You will get amazed to see the number of cars they make.In India they are playing with only two cards(read two CARS).

 

[saroya]

In other countries a car comes with different engine power and performance as options called variants but safety features comes as standard for all variants.
But in India usually all variants of a car comes with same engine and same performance and manufacturers looting peoples by selling top variants saying safety and some other basic features as SPECIAL features . You have to pay extra for leather seats, alloy wheels, ABS, EBD, Air bags, body color bumpers and ORVMs, Fog lamps etc. In some cars (Maruti speacially) Left side OVRM is also considered as Special feature and doesn't come in lower variants

 

[Mr.Boss]

Quite simple, OEs supply what Market wants.
Our market is "Vitamin-M" dependent than safety / spec / features / quality (I'm not speaking about the small group of petrol heads here, majority of people are just opposite to us)

Our market priorities:
- Low cost (buying & running)
- High FE
- Easy reach A.S.S
- Cheap spares
- Bells & Whistles (touch screen, revers cam, fancy interiors, alloys rather than Quality interiors and safety features)

Skoda & Fiat produce cars with superb build quality. There are many live examples which proved those cars to be more safer than many other brand cars with more number of airbags. Any comments about their performance (acceleration / braking / ride & handling, etc)? But do they sell in good numbers? NO. Why?? Lets not blame their poor A.S.S please. Those few dealerships take the advantage of monopoly. No. of dealerships in a city also depends on the sales figure. If we people buy those cars for the machine and not by seeing the A.S.S there should be more dealerships and competition among them self should change the current environment (towards the better side). Are we ready? NO

- We (market) are happy if a car could deliver a 3 digit FE and least bothered if it is built with paper. Aren't we??
- We blindly believe in "S" logo.

 

[HARI GANGADHARAN]

After reading the S-CROSS specs , i think the way of thinking of Indian car manufacturers have changed.If MSIL started to think that way,then without any doubt,i can say,we Indians will get the same variants as sold in the international markets in coming years.