Business Daily from THE HINDU group of publications Sunday, Apr 29, 2007 ePaper |
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Investment World
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Automobiles Question & Auto S. Muralidhar
I am planning to buy a sedan in the Rs 5-5.5-lakh price range. The inevitable choice seems to boil down to the Maruti Esteem VXi. What are your views on this car? Is it a good buy? Is any other car a better choice in your view? Will the Esteem be phased out soon? If no, when would Maruti pull it out of the market? Arjun The Maruti Suzuki Esteem is unlikely to be withdrawn from the market in the near future. There is no market information about this and Maruti Udyog (MUL) too has also not indicated anything to this effect. The Esteem's current position in the market adds strength to Maruti and it continues to provide the company a presence in the crucial entry level sedan segment. If your doubts and worries over the Esteem's future stems from the imminent launch of the SX4 sedan, you can rest easy, as this is unlikely to immediately affect the future of the Esteem. But that said, it must also be remembered that automobile companies are constantly looking at ways to refresh and renew the range of cars on offer, to both reflect the tastes of consumers and also to effectively tackle competition. That effectively means that MUL could still alter or refresh the Esteem's design to improve its appeal if the demand for the car starts flagging. In a few years' time, when Suzuki's four common-platforms plan is put in place, the Esteem could also be withdrawn. Finally, it is a Maruti, and if you did buy the Esteem, even though it will lose value if and when it is withdrawn, it will still be a better bet given the value that the car offers for your money. If your are willing to stretch you shopping budget a bit and wait another couple of weeks, you can consider the new SX4 sedan that Maruti is expected to launch by mid-May. Look out for our review of the car next week. I plan to buy the TVS Victor GLX 125 cc bike. What are the pros and cons of this bike? I am 6 feet, 2 inches tall and I like TVS bikes. I have had a pleasant experience owning the TVS Victor GL. Now I am looking at a bike with higher capacity, more powerful engine. I feel that the Apache may not suit me given my height, and so have ruled it out. Can you tell me what is the average mileage that the GLX gives, and why it is not so popular? Is something wrong with the bike? Karamveer Hooda The TVS Victor's brand extension with different-size engine options and styling was not as successful in terms of bringing in larger sales volumes for TVS, as some of the competition's. Essentially, the original Victor's success and market penetration just could not be replicated by the Victor GX (the 110cc version) and the Victor GLX (the 125cc engine variant). And, this, despite the advertising and branding support that all three bikes got from the Victor brand ambassador - Sachin Tendulkar. However, while TVS' experience can be somewhat comparable to that of Hero Honda (another company that tends to be associated with 100cc bikes more than with performance segment bikes), the market experience for the Bajaj Discover has been very different. Mechanically, there is nothing wrong with the TVS Victor GLX. The GLX's popularity was probably lower due to a combination of reasons. For one, it looks too much like the smaller-engine original Victor. It was probably also introduced at a time when the 125cc bike segment was still in its infancy and the perception among buyers that TVS is a entry-level bike maker didn't help either. With the success of the Apache, the perception about TVS Motor has changed. But the GLX's appeal is unlikely to change, unless TVS decides to redesign and improve the bike's overall looks to make it exclusive of any design cues carried forward from the original Victor. The Apache's saddle is relatively low, and the bike may be a little inconvenient for a person of your height. But it may still be suitable if you alter the seating position. The other alternative in the performance segment that you may want to check out could be the Bajaj Pulsar 150. I am staying in Chandigarh and will be shifting to Bangalore soon. I want to purchase a 2003 model Hyundai Santrofrom Chandigarh before I move out. If I get it registered in Bangalorewhat are the taxes and how much of it will I have to pay there? What will be the road tax in Bangalore for an old car? Swati Gupta It may not be a good idea to shop for a used car in Chandigarh, when you are sure that you will be shifting to Bangalore. In most States, lifetime road tax (or life tax) has to be paid at the time of purchasing the new car. The life tax paid at the time of purchase is not refundable and valuations for used cars differ from State to State. So, if you buy a used Santro in Chandigarh and take it to Bangalore, you may be required to pay life tax again in Bangalore. Valuation for the purpose of tax payable will differ. You may get an estimate from the local chapter of the Automobile Association of India or the Regional Transport Office. A better idea may be to shop for a used car in Bangalore, where the prices may also be attractive given the size of the market there.
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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