Financial Daily from THE HINDU group of publications
Sunday, May 23, 2004

Investment World
Features
Stocks
Port Info
Archives

Group Sites

Investment World - Cars


Question `n' Auto

I plan to sell my Maruti Esteem and buy a new C-segment sedan. The main pointers that I am looking for in the new car are trouble-free running (low maintenance cost), stability and safety, high seating position and a spacious and comfortable interior. The car is going to be mainly chauffer-driven.

I was keen on the new Honda City first, but some of the existing users have not given me good feedback. They feel that the previous model was better. The Hyundai Accent seems to suffer from repair and maintenance problems and the Opel Corsa, though good otherwise, appears too small and has less interior space. My budget is in the range of Rs 6- 8 lakh. Can you suggest a good option? It need not necessarily be from the above list.

NAVEEN CHAURASIA

From the options that you have listed and your budget limitation, the new Honda City will have to be the best option. While market feedback tends to be exaggerated at times, the ownership experience of many of the new City's buyers has indicated that this is the cheapest car to run and maintain. What the new City has been criticised for is the excessive focus on fuel economy, as a result of which the old City's power and performance seems to have been compromised with the new engine.

Again, the new City's cab forward design has not found favour with many of the fans of the old City, who seem to have preferred the straight lines and simple, yet elegant design theme of the predecessor. But the new city's design and focus on occupant safety, the fuel efficiency of the new 1.5-litre, i-DTSI engine and the class leading fit and finish quality of the car make it a compelling buy for anyone who is looking for a low maintenance sedan. Incidentally, the cost of a full service for the Honda City is also one of the lowest in its segment.

You can read more about the new City in the archives section of this column on our Web site www.blonnet.com.

I am unable to choose between the Wagon R VXi and the Fiat Palio NV ELX petrol. Kindly advise.

M. D. ANIL KUMAR

The choice depends on your priorities. The Fiat Palio ELX is a car that boasts of better fit-and-finish quality and has roomier interiors. In fact, compared to the Wagon R's 1,495mm and even set against the Maruti Esteem's 1,575mm, the Palio's width of 1,620mm enables it to offer much more shoulder space at the front and rear seats. The fully loaded version of the Palio also offers more value than the Wagon R VXi.

Again, the Palio's 1,252cc petrol engine is more powerful and torquey than the Wagon R's. The Palio's 1.2-litre engine generates a peak power of 73bhp and torque of 102 Nm compared to the Suzuki Wagon R's 64 bhp of power and 84 Nm of torque. Surprisingly, though the Fiat Palio looks low slung compared to the tall-boy design of the Wagon R, the ground clearance of the Italian car is higher at 170mm compared to the Japanese car's 165mm.

However, what the Fiat Palio suffers from is a comparatively poor mileage number. Fuel efficiency in the Palio averages 11-15 km per litre (city and highway) compared to 13-16 km per litre in the Wagon R. This is the expected fuel efficiency from the Palio NV engine even after it was tweaked by Fiat to offer a bit more mileage than when it was first launched in 2001.

The problem with the Palio quite clearly stems from the fact that the car is nearly 180 kg heavier than the Wagon R. Though the sturdier, heavier build comes in handy with better stability at high speeds, the extra load also pulls down fuel efficiency. This, and a bigger, more powerful engine that is not really meant to focus on fuel efficiency are the main reasons for the Palio's lack of popularity among the mileage-conscious car buyers in India.

Further, the lower sales numbers and the unfounded rumours about a possible negative impact from financial problems at Fiat SpA of Italy (Fiat India's parent) have had a dampening effect on the Palio's resale value. Of course, the Suzuki Wagon R's sales are not affected by such issues.

So, depending on your priorities, you may choose the Wagon R for its taller driving position (a real advantage only if you are over 6 feet tall), better fuel efficiency and competitive resale value.

But if you want better fit and finish and do not mind the lower resale value, the Palio will be the superior choice. After Fiat "repriced" the cost of spares and servicing, this car and the Wagon R are probably neck-to-neck in terms of maintenance costs too. However, servicing quality continues to be an issue that current Palio owners complain about.

I have been using a Maruti Zen for five years and my driving is mostly within the city. Of late, my friends have been telling me about the new highways and the pleasure of driving on them.

Hence, now I feel the need for a car with a larger boot space, and am thinking of upgrading to a C-segment car. I have short-listed two cars — Tata Indigo and Ford Ikon Flair.

I gather that the Indigo is a value-for-money car — the preferred variant being the diesel one. The Ford Ikon Flair is being offered for Rs 5 lakh.

What will the running and maintenance costs of the diesel Indigo be? How is the Ford Ikon Flair's engine? Will spares and service be available for the next five-10 years? Which car will you recommend with emphasis on operating and maintenance costs?

B. S. S. V. LAXMI NARAYANA

Going by your usage, it looks like the average daily distance you drive is not likely to be more than 30 km. For such limited usage, the main factor that drives the car purchase decision is usually a compromise between comfort, power and mileage.

Broadly speaking, the petrol-engined car is more powerful and comfortable, and the diesel-engined one is less powerful, suffers from higher levels of vibration and noise. However, the latter is more fuel-efficient. Of course, new diesel engine technology is fast changing that presumption.

Between the Ford Ikon Flair and the Tata Indigo, the ex-showroom price differential and features comparison comes up with minimal variation. The difference is in their build quality and in the performance of the two vehicles' engines.

The Ford Ikon Flair's 1.3-litre, single overhead camshaft, ROCAM engine is the more powerful of the two, developing a peak power of 70PS at 5,500 rpm. Though peak torque of this engine is lower than the turbocharged indirect injected diesel burner of the Indigo, the Ford car's overall build quality is better.

The Tata Indigo's turbocharged 1,405cc engine pumps out about 59PS of maximum power, which is as much as the Ford 1.8-litre diesel does. The Indigo diesel engine is the same Indica engine with a turbocharger added. This engine also generates more torque than the Ford Ikon Flair's 1.3-litre petrol engine. But clearly the reason why the Indigo finds so many takers is for its fuel-efficiency (thanks partly to the differential in prices of the two fuels).

We recommend the Ford Ikon Flair for you. For your limited usage, restricted largely to driving within the city, you may as well treat yourself to a better ride quality. You may not feel the need for higher mileage with such low usage.

Of course, Ford is in India for the long-term and its product strategy for the Ikon includes keeping the cost of servicing and spares at par with other cars in its class.

So, this need not affect your purchase decision.

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.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Investment Quiz


How to bank through the Net
Stanchart's `Parivaar' savings account
Verdict 2004: Catalyst for a market makeover
Active funds teach a lesson or two
Markets await policy direction
Franklin India Prima Fund: Invest
Birla Equity Plan: Invest in small lots
Kotak 30
Canbank Mutual to float CanIndex
Fundtalk
GlaxoSmithKline Pharma: Buy
Picks for the patient investor
Balrampur Chini: Hold
Madhucon Projects: Buy
Bharat Petroleum: Hold
Carborundum Universal: Buy
Tata Steel: Hold
Question `n' Auto
Birla Sunlife's Classic Life
Margin calls and stock prices
Sensex tumbles
Credit Policy's impact on debt market
Volatile condition may remain
Using futures/options
Who should trade in Options?
Futures guide
Options guide
SIDBI: Interesting offer
`Low linkages to China make Indian markets attractive'
`Products should sell across bank counters too'
Sale to wife of father's land, for a house to build
One house too many
Straight from Satan
Shortsell


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | Home |

Copyright © 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line