Go Back   Team-BHP > BHP India > The Indian Car Scene


Reply
 
Thread Tools Search this Thread
Old 3rd November 2006, 19:21   #1
Team-BHP Support
 
theMAG's Avatar
 
Join Date: May 2006
Location: Long Island, NY
Posts: 7,034
Thanked: 1,470 Times
Default Completely Ignored Value/Revenue Chain

With the burgeoning of the mature car buyer in India, coupled with the thriving grey-market of performance mods, don't we feel its time that manufacturers start their own line of company-branded performance parts such as headers, free-flows etc. for their cars?! This would constitute to the company a niche yet lucrative avenue, while for for car owner - a perfect one-stop solution for company-branded performance parts that ensure the car's warranty is in tact.

A win-win situation for the performance enthusiast and car manufacturer I feel. And an opportunity manufacturers should not miss.
theMAG is offline   Reply With Quote
Old 3rd November 2006, 20:17   #2
BHPian
 
yeis's Avatar
 
Join Date: Feb 2006
Location: Mumbai
Posts: 237
Thanked: Once
Default

Mag, you have raised a valid point but I think its not like that that car manufacturers are unaware of it. They could have done it far earlier but there seems to be a major problem, these manufacturers will have to fight with the market-leaders of those products and its quite possible that nobody gives a damn to them. There are specialists in every field and people go for those specialists only, very few admire jack-of-all-trades! Your point of warranty is quite correct.
yeis is offline   Reply With Quote
Old 3rd November 2006, 20:29   #3
Team-BHP Support
 
manson's Avatar
 
Join Date: Oct 2004
Location: Bombay
Posts: 3,547
Thanked: 2,031 Times
Default

the manafacturers have their hands full of service and repair jobs, why would they dedicate so much of their time and effort for a very niche market. they might as well increase their capacity in what they do best.

manson.
manson is offline   Reply With Quote
Old 3rd November 2006, 20:41   #4
Senior - BHPian
 
rahul_intlad's Avatar
 
Join Date: Aug 2006
Location: Pune
Posts: 1,577
Thanked: 2 Times
Default

Market dynamics in India where cost is such an important consideration makes it an unviable option in a country like India.Perhaps in future things may change.
rahul_intlad is offline   Reply With Quote
Old 3rd November 2006, 21:57   #5
Ram
Senior - BHPian
 
Ram's Avatar
 
Join Date: Dec 2005
Location: Singapore, Mumbai, Nagpur
Posts: 2,165
Thanked: 144 Times
Default

Here's a severe statement!

Performance mods are illegal in many passenger car markets in the developed world!

The world's strictest road transport authorities are: Germany, the State of California, USA and Singapore.

And while the law in lesser lands, may marginally indulge an individual souping-up and hot-rodding a car of a certain minimum age, it will certainly not tolerate a new-car manufacturer offering such a car to the public. That would violate "Fitness for Merchantability" laws!

In fact, Chrysler USA once produced and sold a large five-seat passenger sedan with a hemispherical head engine. This model developed power beyond the range legal for insurance and registration. The car was issued with a federal sticker that disclaimed: "This automobile is manufactured for enthusiast speed-trials only. It is not street-legal and may not be registered for normal use!

That means in order to be able to drive it, the owner had to necessarily put the car on a trailer-truck and transport it to a designated racing track only. He could never have license plates for it. The checks and balances in a civilized country will prevent money from buying wanton uncivilized power.

Ergo, manufacturers cannot start their own line of company-branded performance parts such as headers, free-flows and other illegals!

Ram
Ram is offline   Reply With Quote
Old 4th November 2006, 02:08   #6
Team-BHP Support
 
manson's Avatar
 
Join Date: Oct 2004
Location: Bombay
Posts: 3,547
Thanked: 2,031 Times
Default

Quote:
Originally Posted by viper
@ Manson - They would do it for the money as there will be a line of people wanting the sports packages.
And how long is that line? I honestly doubt even 1% of the total cars on our roads having any aftermarket equipment in context to engine mods, and 10% of that 1%, i.e. 0.10% of the total market would probably have anything more than the usual filter, exhaust, wires etc

To make it simpler, how many people on an Automobile Enthusiast forum that we have drive modded cars? i m not talking about filters, plugs now, manafacturers have better products to apply their resources to!!

Honda and maybe a couple of companies will prob. sometime bring in these hi-performance products, thats good. But if they don't, they surely arent missing out on a Serious revenue chain as the thread suggests.

manson.

Last edited by manson : 4th November 2006 at 02:10.
manson is offline   Reply With Quote
Old 4th November 2006, 08:28   #7
Team-BHP Support
 
theMAG's Avatar
 
Join Date: May 2006
Location: Long Island, NY
Posts: 7,034
Thanked: 1,470 Times
Default

Quote:
Originally Posted by manson
Honda and maybe a couple of companies will prob. sometime bring in these hi-performance products, thats good. But if they don't, they surely arent missing out on a Serious revenue chain as the thread suggests.

manson.
One of the main factors that current cars do not have performance mods is due to the threat of engine damage, usage of suboptimal/fake parts, immediate voiding of any car warranty and the single important reason - distrust in commiting your car modification to an accessory store whose owner is truthful abt lack of control he has in sourcing genuine components, providing comprehensive post-sales backup and incompetent domain-expertise.

Case in point: I've read on Team-BHP that a Mumbai OHC VTEC which had FFE installed had its engine seized up and had to be rebuilt for Rs. 2.5 lacs. Another case of a turbo-charger fitted Baleno that is now completely worth its metal-value only.

I would reckon, atleast 15 % of all current owners (including me) would gladly go in for a company fitted performance mod, owing to the addressal of points described in the first paragraph.

And again, this would be a niche segment to the manufacturers.

Last edited by theMAG : 4th November 2006 at 08:30.
theMAG is offline   Reply With Quote
Old 4th November 2006, 11:02   #8
GTO
Team-BHP Support
 
GTO's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 47,712
Thanked: 89,068 Times
Default

I absolutely agree. The customisation scenario is booming in India, but the suppliers are mostly from the disorganised segment. Branded and manufacturer-backed modifications would be a welcome addition! Many car owners refrain from even basic modifications like tyre upgrades and sound systems since they are unsure of the route (specs, quality etc.) or dont want to mess up their warranty.

This is already in place in many countries worldwide, and I had personally seen some outlets in the USA. However, the pricing should include a reasonable premium and not one in excess.
GTO is offline   Reply With Quote
Old 4th November 2006, 13:05   #9
BHPian
 
west's Avatar
 
Join Date: Feb 2005
Location: India
Posts: 273
Thanked: 48 Times
Default

Yes, but where is the market. Here we are using a 10 year old molds for indica , and m 800. Do you think they are going to make a sports package because .001 % people are interested. See the auto senario in india. We sell 12 lks cars every year as opposed to 1.6 cr in US. This is the main reason why we cant and we dont. One more reason I might add is our head of department in industry are little bit old for this , dont you think eh??
west is offline   Reply With Quote
Old 4th November 2006, 13:32   #10
BANNED
 
viper's Avatar
 
Join Date: Mar 2005
Location: Mumbai
Posts: 1,769
Thanked: 8 Times
Default

Quote:
Originally Posted by theMAG
Case in point: I've read on Team-BHP that a Mumbai OHC VTEC which had FFE installed had its engine seized up and had to be rebuilt for Rs. 2.5 lacs. Another case of a turbo-charger fitted Baleno that is now completely worth its metal-value only.

Hi,

Would you mind giving the link to the same. IMO the report is fake and if at all the engine had to be rebuilt it does not cost anywhere close to the figure you or the post have mentioned. It will cost approx Rs50k on the higher side parts included for a engine rebuild.

Which Turbo Baleno are you referring to.

Viper
viper is offline   Reply With Quote
Old 4th November 2006, 13:49   #11
GTO
Team-BHP Support
 
GTO's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 47,712
Thanked: 89,068 Times
Default

@Viper : I had seen this blue Vtec myself at linkway Honda. Was busted due to a defective exhaust system, and Linkway estimate was 2L+
GTO is offline   Reply With Quote
Old 4th November 2006, 14:08   #12
Senior - BHPian
 
black12rr's Avatar
 
Join Date: Dec 2005
Location: Ridin earth now
Posts: 1,259
Thanked: 272 Times
Default

Cars manufactures also have to taken care of warranty and the insurance guys .Since Guys who are going in for these mods would obviously take there car to limits and any defects or damange the delears/maufactuere has to bear the expensives and insurace guys might offend these.Just my thought.
black12rr is offline   Reply With Quote
Old 4th November 2006, 14:38   #13
BANNED
 
viper's Avatar
 
Join Date: Mar 2005
Location: Mumbai
Posts: 1,769
Thanked: 8 Times
Default

Quote:
Originally Posted by GTO
@Viper : I had seen this blue Vtec myself at linkway Honda. Was busted due to a defective exhaust system, and Linkway estimate was 2L+
Hi,

That is really odd. It may be a 1 off case or in reality a wrong diagnosis or a combination of exhaust + some other stuff. Anyways no point discussing the same. Linkway is known for exhorbitant estimates

Viper
viper is offline   Reply With Quote
Old 4th November 2006, 16:50   #14
BHPian
 
yeis's Avatar
 
Join Date: Feb 2006
Location: Mumbai
Posts: 237
Thanked: Once
Default

Instead of providing power-modification instruments manufacturer could also provide power-packed maybe turbo/super-charged engines as an option. Example could be a all Honda City variants may house 1.5L i-DSI, 1.5L VTEC, 2.4L i-VTEC and just to make things thrilling a 3.0L V6 engine as options. FE-lovers could happily go for a 1.5L i-DSI and a dude could consider 3.0L V6! We don't have this kinda thing in India at all, I guess. You will have to live with an engine that's provided by manufacturer. Now either wait for warranty-expiry or simply go ahead and screw things by going ahead with engine-modification and end-up voiding warranty, insurance and god knows what.
yeis is offline   Reply With Quote
Old 4th November 2006, 19:37   #15
Distinguished - BHPian
 
Sam Kapasi's Avatar
 
Join Date: Jul 2005
Location: Mumbai (but wat
Posts: 6,989
Thanked: 1,452 Times
Default

Well, I've got an opinion here. The population of YOU guys is miniscule. Except for cities like Coimbatore and Bangalore, performance add-ons are rarely asked for and they are strictly toys for a small group of enthusiastic boys. I mean no disrespect here whatsover

Let's talk about a very basic performance product - a high quality Air filter (K&N or whatever)how many of these are sold in a year?As opposed to how many cars are sold in a year?

Why do you talk about engine performance only? Let's talk about the luxuries in a car. Our "Fully loaded" cars come with options that are basic for most countries. Even the Luxury Audi (A4? A6?) comes with "Leather Seats" as an option.

I can speak for the audio system. Worldwide Toyota has a reputation for providing ROCKING factory speakers, see here.
Try getting it in a Corolla/Camry here.

Has anyone seen the OE speakers supplied in a Honda City? Poor and Cheap.
One cannot blame ANY car manufacturer in India. Questions like "performance" come very far behind "Cost" and "looks"

We are a developing economy where a car is still a super luxury and every manufacturer in India is bending over backwards, trying to provide their machines at a lower cost to the consumer.
A testimony to this fact is that car dealers/showrooms make little or no profit on the sale of a car. I know this for a fact.

So you may as well ask, why does Toyota not offer a custom installed High-end Audio option? Why doesn't Honda offer an assortment of Alloy wheels and low profile performance tyres as an option? Why do they rely on the after market for these upgrades?

Disclaimer: My opinion on engines and upgrades is just a broad overview as I do not know enough to comment. These matters I have discussed are based on my personal opinions only.

My forte (pronounced for-tay) lies in other fields

Last edited by Sam Kapasi : 4th November 2006 at 19:40.
Sam Kapasi is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Maxi / Premium Scooters - An ignored species? .sushilkumar Motorbikes 21 12th March 2013 15:41
520 Chain (Karizma Chain) Query DeepakMenon Motorbikes 11 10th December 2009 12:29
FIAT GROUP Q1: 13th Consecutive quarterly growth as revenue exceeds 15 billion Euros sushanthr77 The International Automotive Scene 1 25th April 2008 15:53
FM Radio ignored? tsk1979 In-Car Entertainment 22 10th January 2007 22:46


All times are GMT +5.5. The time now is 23:14.

Copyright 2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks