![]() Financial Daily from THE HINDU group of publications Sunday, May 02, 2004 |
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Investment World
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Cars Question `n' Auto S. Muralidhar
We bought a Maruti WagonR LXi in November 2003. As the first vehicle in the family, the best selling points for the car were its boot space, airline style seats and rear seat leg space, but I was told that it does not have a good resale value. Recently, I read that our model won the best car title in the J D Power and Associates survey leaving behind Honda City and the others. I do not find anything special in the car, not even the mileage (10-11 kilometres per litre without air-conditioning). Can you help me appreciate our car better? - Madhur Mansinghka
The J. D. Power and Associates' 2003 India Initial Quality Study (IQS) was based on evaluations from more than 3,300 new-vehicle owners of 26 different models representing 11 makes. The study, which measures new-vehicle quality in the first two-six months of ownership, quantifies problems experienced in nine IQS categories which include ride, handling and braking; features and controls; seats; heating, ventilation and cooling (HVAC); sound system; exterior; interior; engine; and transmission. The Maruti Suzuki WagonR, with 118 PP100 (problems per 100 vehicles), was ranked highest in the premium compact car segment. The Maruti Zen and Hyundai Santro follow in the rankings, both achieving PP100 scores lower than the segment average of 176, (but were higher than the WagonR's number). The IQS as the name suggests is a representation of the number of problems that a particular vehicle experiences in the initial months. However, it is not a ranking of the vehicles based on resale value or fuel efficiency. So, while the ranking is an indicator of the quality of the particular vehicle, it cannot be taken to be an indicator of best performance on other parameters such as overall comfort, resale value and running costs. The WagonR was rated highest only in the premium compact car category. In the mid-size category the Honda City won the award and in the entry mid-size segment, the Maruti Esteem was ranked highest in the 2003 IQS. Maruti was also adjudged the number one nameplate in the Customer Satisfaction Index (CSI) Study. This is based on customer experiences and satisfaction levels with the car company's service quality. The WagonR continues to attract the compact car buyer's attention because of its consistent quality and the advantages that the car's unique design offers. The WagonR's features, comfort and performance has to be ranked with cars in its category and class. So, the car's specialty will wane in front of cars in the mid-size segment, such as the Honda City, but will hold forth when set against other cars in the compact segment. The problems that you are facing with the WagonR's mileage can be addressed by a company-authorised mechanic, if there is a genuine problem with the engine. A mileage number of 10-11 kmpl when the air-conditioner is switched off is definitely low for the WagonR. However, it must be remembered that driving style and traffic conditions also affect the car's fuel efficiency. You should be able to get 12-13 kmpl in the city and about 15 kmpl on the highway. The resale value of a car is governed by a number of factors, the most important of which is the particular models popularity in the market. WagonR's sales have just started picking up and the resale value may improve. But you may take consolation from the fact that when you do go to sell the used WagonR in the market, you probably would have also spent the least for maintaining it. I live in Hyderabad and want to purchase a Maruti 800. I want to know the difference between Euro-I and Euro-II. Which one should I prefer? D. Venkat Reddy Euro-I and Euro-II are European automobile emission standards that have been used as benchmarks by the Government to formulate similar stringent emission standards that Indian automobile manufacturers have been mandated to comply with. The equivalent Indian standards are called Bharat Stage I and Bharat Stage II. These standards specify the maximum amount of constituents such as sulphur dioxide and nitrogen oxide compounds that the car's exhaust can emit. Euro-II or Bharat Stage II emission norms (which more stringent than the previous stage I) are currently in force in the metros for both petrol and diesel passenger cars. This is likely to be extended to the rest of the towns and cities India by this October. Since the Bharat II norms are applicable in the metros already, you will not be able to purchase a Maruti 800 Bharat I and register it in Hyderabad. Theoretically speaking, you will be able to buy the Euro-I version outside Hyderabad city and register it there if you have address proof. But, our advice would be to buy the M800 Bharat II, since that will additionally give you a more refined engine and the resale value of the car will be better compared to the Bharat I version, especially since Euro-II equivalent norms will become standard all over India by October this year. The cost difference between the Bharat I and Bharat II variants of the M800 is only about Rs 17,000.
(Queries may be sent to: q&a@thehindu.co.in or by post to Q&A, Business Line, 859/860, Kasturi Buildings, Anna Salai, Chennai - 600 002.)
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