Warranty on Indian cars - why disparity among manufacturers?

sbasak · 1st April 2007, 19:59

While browsing thru the latest issue of Top Gear [Apr 2007], I was quite surprised to find that different manufactures offer different kinds of warranties in India.

Some (eg. Ford/Fiat) offers 1 yr only, while most other (eg. Maruti) offer 2 yr/40,000 km and in some models (eg. Hyundai Sonata/Elantra) it is 4 yr/80,000 km.

Why there is such disparity among manufacturers?

In most other places [eg. Europe], most manufacturers offer similar 3 yr/100,000 km warranties.

theMAG · 1st April 2007, 20:54

Simple. Case of manufacturers wanting to monetize car services as soon as possible. In some cases the car segment is also considered to arrive at a warranty figure.

The Indian market not being as big as developed markets contributes towards this manufacturer-dependant thrust into their ROIs.

esteem_lover · 1st April 2007, 22:42

It is quite simple really, It is the level of confidence that the mfrs themselves have on their products. It is there everywhere in any product.

sbasak · 2nd April 2007, 08:27

Quote:

It is quite simple really, It is the level of confidence that the mfrs themselves have on their products.

Ha ha.... if the mfrs can't trust their vehicle how the consumer will?

here is the full list [from top gear magazine]

Chevrolet 3 yr/100k km
Hyundai 2 yr/unlimited mileage [Santro/Getz] or 40k [Accent/Verna]
Hyundai Elantra/Sonata Embera 4 yr/80k km
Maruti 2 yr/40k km
Tata 1.5 yr/unlimited mileage
Fiat 1 yr/unlimited mileage
Ford 1 yr/unlimited mileage
Honda 2 yr/40k km
Mitshubishi 3 yr/50k km
Skoda 2 yr/unlimited mileage
Toyota 3 yr/100k km
Audi 2 yr/unlimited mileage
Mercedes 2 yr/40k km or unlimited mileage depending on model
Mahindra 1 yr/unlimited mileage
BMW 2 yr/unlimited mileage
Nissan 2 yr/50k km

mail4ajo · 2nd April 2007, 10:43

There is extended 2 year warranty for 80000kms on Maruti available for a nominal cost. I may not use the car for 80K kms, but this goes a long way to show how confident Maruti is on their products.

condor · 2nd April 2007, 11:12

Quote:

Originally Posted by sbasak

Why there is such disparity among manufacturers?

Why should a similarity be there? Why cant manufacturers be free to decide on how much wty they offer?

By offering more wty, they can show their confidence in their products, and increase the customers confidence in them. Offering a better wty than the competition also shows their attempts to do better than the competition ..

vasudeva · 2nd April 2007, 11:22

To earn money from extended warranty. If you offer 3 years/100000 km warranty, then obviously you do not need to pay for extended warranty. But if it is for 1/2 years, then some may pay for extended warranties. Thus, for covering the same warranty period as a 3 years, manufacturers may earn 5-10 K more. That being said, many would not care to extend for Honda, but perhaps for Tata, Hyundai, Maruti, Ford, and Fiat.

However, consumer surveys internationally indicate that the length of a warranty is less important than the manufacturer's reputation for reliability. This is because, a lesser quality car sold with say a 5-year warranty would still require more trips and time wasted for repairs and blown out components, than a super reliable car with a lesser warranty period that may require only periodic maintenance.

srasania · 3rd April 2007, 05:00

Quote:

Originally Posted by mail4ajo

There is extended 2 year warranty for 80000kms on Maruti available for a nominal cost. I may not use the car for 80K kms, but this goes a long way to show how confident Maruti is on their products.

well,even I've bought 4 years/80,000kms in India for my NHC..I think it cost around Rs8300,and bought the extended during time of car booking..I think it's worth paying this much extra considering how much Honda charge for labour and parts incase anything goes wrong with the vehicle after the standard warranty is over..
also,Toyota in USA offer I think 3 years + 3 years extended = 6 yrs total coverage..we recently bought 2007 Camry SE model here,and dad paid like around I think $2000 extra or something for 3 yrs extended warranty..I don't know how many miles,and other warranty details..but just am aware it's total 6 yrs warranty..
-sr

v1p3r · 3rd April 2007, 14:42

You're asking WHY? Because certain products are of inferior quality, ie they suck.

mithun · 4th April 2007, 05:13

MUL products are having almost the same reliability as Honda & Toyota. But many folks still regards these products as like the manna from heaven and are ready to pay hefty premiums !!!

rider60 · 28th October 2007, 02:18

i agree with you mithun the we had marshal's engine did not need re bore untill it put on 2.7lac kms.

ram_hyundai · 29th November 2007, 12:32

i have got an idea about the extended waranty of the diff manufacturers now.but i dont know whether all are aware that the extension of waranty also differs with different manufacturers.i heard that hyundai is not allowing 4rth year extended waranty for diesels.is it true.
one more point of discussion-elantra was sold in us with 10 yrs waranty.

mail4ajo · 29th November 2007, 12:40

Quote:

Originally Posted by ram_hyundai

i have got an idea about the extended waranty of the diff manufacturers now.but i dont know whether all are aware that the extension of waranty also differs with different manufacturers.i heard that hyundai is not allowing 4rth year extended waranty for diesels.is it true.
one more point of discussion-elantra was sold in us with 10 yrs waranty.

It again depends on how confident the manufacturer is on the reliability of the engine. Tata gives a 1 lakh kms warranty on diesels but with a 2 year period (please correct if wrong).

Manufacturers can give longer warranty terms in the US primarily due to the car operational conditions. Less dust, better fuel, oil, roads, temperature conditions etc

1st April 2007, 19:59	#1
sbasak BHPian Join Date: Nov 2005 Location: CCU-LTN Posts: 608 Thanked: 14 Times	Warranty on Indian cars - why disparity among manufacturers? While browsing thru the latest issue of Top Gear [Apr 2007], I was quite surprised to find that different manufactures offer different kinds of warranties in India. Some (eg. Ford/Fiat) offers 1 yr only, while most other (eg. Maruti) offer 2 yr/40,000 km and in some models (eg. Hyundai Sonata/Elantra) it is 4 yr/80,000 km. Why there is such disparity among manufacturers? In most other places [eg. Europe], most manufacturers offer similar 3 yr/100,000 km warranties.
	() Thanks

1st April 2007, 20:54	#2
theMAG Distinguished - BHPian Join Date: May 2006 Location: Avon, CT Posts: 7,217 Thanked: 1,807 Times View My Garage	Simple. Case of manufacturers wanting to monetize car services as soon as possible. In some cases the car segment is also considered to arrive at a warranty figure. The Indian market not being as big as developed markets contributes towards this manufacturer-dependant thrust into their ROIs.
	() Thanks

1st April 2007, 22:42	#3
esteem_lover Senior - BHPian Join Date: Jul 2006 Location: Madras/Py Posts: 7,556 Thanked: 502 Times View My Garage	It is quite simple really, It is the level of confidence that the mfrs themselves have on their products. It is there everywhere in any product.
	() Thanks

2nd April 2007, 10:43	#5
mail4ajo Senior - BHPian Join Date: Mar 2006 Location: San Antonio, TX Posts: 1,957 Thanked: 331 Times View My Garage	There is extended 2 year warranty for 80000kms on Maruti available for a nominal cost. I may not use the car for 80K kms, but this goes a long way to show how confident Maruti is on their products.
	() Thanks

2nd April 2007, 11:22	#7
vasudeva Senior - BHPian Join Date: Mar 2007 Location: Delhi Posts: 2,221 Thanked: 212 Times	To earn money from extended warranty. If you offer 3 years/100000 km warranty, then obviously you do not need to pay for extended warranty. But if it is for 1/2 years, then some may pay for extended warranties. Thus, for covering the same warranty period as a 3 years, manufacturers may earn 5-10 K more. That being said, many would not care to extend for Honda, but perhaps for Tata, Hyundai, Maruti, Ford, and Fiat. However, consumer surveys internationally indicate that the length of a warranty is less important than the manufacturer's reputation for reliability. This is because, a lesser quality car sold with say a 5-year warranty would still require more trips and time wasted for repairs and blown out components, than a super reliable car with a lesser warranty period that may require only periodic maintenance.
	() Thanks

3rd April 2007, 14:42	#9
v1p3r Senior - BHPian Join Date: Feb 2005 Location: BLR / DXB / LON Posts: 5,334 Thanked: 6,896 Times View My Garage	You're asking WHY? Because certain products are of inferior quality, ie they suck.
	() Thanks

4th April 2007, 05:13	#10
mithun BANNED Join Date: Jan 2006 Location: Cochin Posts: 2,195 Thanked: 268 Times	MUL products are having almost the same reliability as Honda & Toyota. But many folks still regards these products as like the manna from heaven and are ready to pay hefty premiums !!!
	() Thanks

28th October 2007, 02:18	#11
rider60 Senior - BHPian Join Date: Mar 2007 Location: Bhagyanagaram. (A.K.A. Hyderabad) Posts: 1,620 Thanked: 56 Times View My Garage	i agree with you mithun the we had marshal's engine did not need re bore untill it put on 2.7lac kms.
	() Thanks

29th November 2007, 12:32	#12
ram_hyundai Senior - BHPian Join Date: Jun 2006 Location: Calicut ,trisur Posts: 2,020 Thanked: 53 Times View My Garage	i have got an idea about the extended waranty of the diff manufacturers now.but i dont know whether all are aware that the extension of waranty also differs with different manufacturers.i heard that hyundai is not allowing 4rth year extended waranty for diesels.is it true. one more point of discussion-elantra was sold in us with 10 yrs waranty.
	() Thanks