Car majors rev up with 34 rollouts in 2004

Indian passenger vehicles companies have launched over 34 new models, variants and special editions as on date in calendar 2004. By the close of 2004, the figure could be over 37 "" a good 27 per cent more than the 29-odd new launches reported last year.

Carmakers and auto analyst alike believe that this a distinct developed market trend setting in India. It is the time-tested 'model-year' concept of the West, where every automobile manufacturer launches at least one new model or a variant of the model every year, usually in the beginning of the calendar year. The logic is simple: customer fatigue is bad for business and the a new launch every year keeps customer excitement in a brand alive.

Consider this: Maruti Udyog Ltd, the country's largest carmaker, has thus far placed six new models or variants in 2004, while Tata Motors has made three launches. Luxury (D-segment) player SkodaAuto, which was relatively quite in 2003, has launched five new models or variants in 2004.

"Consumer interest can be bought though discounts but you need a new model or variant to have the consumer excited about a particular brand," said Anang Dev Jena, chief of Synovate Motoresearch.

In 2004 (till October) with seven launches Hyundai Motor India Ltd (HMIL) has had the maximum number of launches, followed by market leader MUL with six launches.

In the case of General Motors India, between February 2003 and October 2004, there have been nine launches including variants and special editions. GM India's vice president (corporate affairs), P Balendarn, said the primary reason is to bring freshness to the market and in some cases the changes in special editions can also be used to test the waters on consumer acceptance.

Ford India vice president (sales, marketing and service) Vinay Piparsania added that Ford has a global policy to have a 'launch that never ends."

"Apart from keeping the buzz in the market, fresh launches also helps in keeping the buyers mind away from discounts," he said. Ford India had five launches in 2003 and three in 2003, including the much awaited Ford Fusion.

While each auto makers has his own reason for a new launches, the bottomline is that the discerning Indian consumer has clearly arrived and expects freshness and the widest range the industry can offer. Analysts believe see this is as the beginning of a big Indian automobile boom.