Alternative fuel takes the wheel

Honda, M&M and the Sonalika Group stole the show at the 8th Auto Expo with their future-proof designs and hybrid powertrains, reports Sandeep Anurag.

Every two years, New Delhi becomes a Detroit, but without its concomitant downtown rot. This year was no exception: The national capital was graced by the who's who of the auto world—except for GM, Hyundai, Toyota and DaimlerChrysler. The 8th Auto Expo was a glittering expanse of the affordable and the unaffordable, of production-ready and concept cars and motorcycles, and of women dressed in artificial satin body stockings.

For petrolheads (read, those who think that diesel motors and hybrid high-tech are BS), there was much to see and admire. The coming attractions were low-emission, low-cost common rail diesel engines, not petrol blasters, but it was the hybrid/alternative fuel technology vehicles that caught all eyeballs. Hybrid cars that use both electric motors and small capacity internal combustion engines, hydrogen-oxygen fuel-cell cars that trickle out pure water as emission, and electric vehicles made their Indian big ticket debut at the 8th Auto Expo.

With crude getting more expensive—and destined to go off the roof if the US attacks Iran, the world's fourth largest producer- mega auto companies are well into alternative fuel R&D. The hybrid Honda Insight is a massive hit in the SUV-crazy US itself, and Europe has a demonstrated passion for low-capacity, low-emission vehicles—and with China not prepared for anything but Xeroxing Hondas and BMWs, and even the Bajaj Pulsar), India is the next destination of alternative fuel vehicles. (It already has one in the electric Reva, which sells in its thousands in Europe.)

Mahindra & Mahindra showcased India's first hybrid powertrain SUV, the Scorpio Hybrid Electronic Vehicle, and the fuel cell-powered three-wheeler Bijlee. "We have already developed the prototype of the Scorpio Hybrid and expect to launch a hybrid SUV in the next three to four years," said M&M vice-chairperson and managing director Anand Mahindra.

Japanese auto giant Honda also unveiled its latest hybrid Insight and the FCX fuel-cell car. The Insight claims to deliver a fuel efficiency of 36 kmpl. At the Indian end, tractor-maker Sonalika Group displayed its electric three-wheeler. According to auto expert Rajeev Mitra, alternate fuel vehicles might become the solution to the political vagaries of petrol price rises—they can deliver 10-80 per cent better efficiency over conventional diesel engines, which, in any case, have better fuel efficiency than petrol vehicles and at half the price. Unfortunately, the Insight is unlikely to be unveiled on Indian roads soon. It is an expensive, computer chip-controlled vehicle and the Indian roads will reduce it to a crumpled wad of metal. Nor do other global players like Ford, GM and DaimlerChrysler have plans to introduce their hybrid variants.

Besides, says Mitra, legal hassles are preventing their entry into India. While Ford will be introducing 10 hybrid models globally, it won't do the same in India, because the country does not have a compatible legal and homologation infrastructure to import these vehicles, leave aside produce them. “In Insight and the FCX fuel-cell cars, we showed our technology and educated customers about the benefits of alternate fuel technologies," says Honda Siel Cars India Ltd president and CEO Masahiro Takedagawa.

But Indian players are more upbeat, even though R&D in longer-running, short-recharge batteries for electric vehicles is still in its infancy. International Cars and Motors Ltd, part of the Sonalika Group, has decided to introduce a hydrogen-based four-wheeler. "We have been able to design a four-wheeler that runs on hydrogen and demonstrated it at Benaras Hindu University. We will launch it soon," says ICML chairperson L D Mittal.

Audi, from the Volkswagen Group, rolled out its luxury A4 sedan with a price tag of over Rs 24 lakh; it says it will bring its Q7 SUV (likely to be priced at Rs 65 lakh) to India next year. Skoda showed its entry-level Fabia, which will hit the market this year, with a price tag of Rs 6-7 lakh, as will Honda's new generation Civic, with an expected price tag of Rs 9-10 lakh. Interestingly, while most manufacturers are focussing on luxury and superluxury cars because they bring in the bulk of their profits, the future will revolve largely around high-volume small cars of between 600-800cc.

But Skoda managing director Lukas Folc denies the auto economic theory that volume-based-business lies only in small cars. "We have cars over the Rs 10 lakh bracket and are growing every year," he insists. "We saw a steep growth of 25 per cent in 2005, with sales of 8,953 units. This trend shows that the Indian market is growing," he said, adding that the company plans six new launches in India this year, with sales targets of 13,500 units.

The indefatigable old dobbin, Hindustan Motors, launched the Mitsubishi Lancer Cedia, with a price tag of Rs 9.87 lakh, and plans to roll out an SUV, the Montero, in the following six months. Despite the fact that India, along with the US and China, remains at the top of the list of global emissions, the Indian customer seems to be going the American way: SUVs and more SUVs. Even Maruti Udyog is getting ready with its Honda CRV-sized Escudo, costing Rs 14-15 lakh. This apart is its incoming three-box sedan, the YY4, which was not on display.

But every company is keeping its offerings under wraps. While as many as 30 new cars will be hitting the Indian roads in 2006, only four were on show. This meant some disappointment for auto buffs with loose change the size of Fort Knox, who can afford astronomically-priced autos from Lamborghini (which had an electric blue Gallardo on show, just as a drool factor) to Ferrari, Maserati, and Aston Martin. "For me, the Rs 5-crore Maybach is history, as I have seen it," says Isha Bedi, a student. "Here, I had come to see Bugatti's Rs 10-crore Veyron, powered by a 1001 bhp engine that can be tuned to hit 400 kmph, but couldn't."

If she had met Ford vice-president V Sivaramkrishnan, she would have throttled him. He says, "Showing does not mean offering. You see and believe in the technology being developed across the globe." Auto shows give carmakers an idea about market conditions and their potential, based on which they chalk out their plans.

When it came to investments, market leader Maruti Udyog was way ahead, with its plans to invest Rs 2,718 crore by 2008 and launch five new models, including a diesel car, in the next five years. A unique piece at the show was Maruti's Solio, a vehicle designed for the physically-challenged.
Tata Motors and the Italian auto major, the beleaguered Fiat Group, announced an agreement on dealer-network sharing. A targeted selection of Fiat cars and the Tata range, will be available from March through the Tata dealership network.

Tata, which has proved its canniness with its recent single-platform Indica range of hatchbacks, sedans and estates, is likely to share the latter’s technologies and marketing savvy to secure a foothold in the overseas markets, where it became a no-deal player after the Rover fiasco. Then, of course, Tata is holding out the promise of a sub-Rs 1 lakh car that will not be made of wax paper and tarpaulin. Given current per capita holdings, car ownership in India is still a thing of aspirational beauty.