A car which changed India

As we forged our way into year 2015, we are leaving behind one of the legendary cars that changed India and its auto industry. The journey of the Indian passenger car segment has been marked by model which then became milestones in their own right. The Maruti 800 which came out in 1983 broke the shackles of the License Raj and built the aspiration for the car in the minds of the Indian family. While Maruti build on the aspiration with its simplicity, Hyundai and its Santro marked the rise in aspiration of the common man to move from the necessity of mobility to the mark of driving in comfort.

In 1998, Hyundai came into the small passenger car segment with the Santro (inspired from the elegant city of Saint Tropez in the French Riviera) which was then dominated by Maruti (80% share) with the basic 800 and the Zen with a  more powerful 1000 cc engine. A new entrant in the small car segment was another Korean, the Daewoo Matiz. The rest like the Ford, Honda, Toyota were out to focus on the mid-sized saloon segment. Coming in as a challenger to the dominant force is not a mean thing; but for a car which even towards its closure in 2014 is selling up to 30,000 units a year, there has to be something special.

The first success for the Santro came from its tall boy design which was a novelty in itself. Yes, the purists claimed it looked much like its name in Korea, Atoz which sounded like an auto (rickshaw), it gave radically more head room in the cabin as against its competition. This also meant that an Indian woman could get in without much trouble of managing her saree and having to almost kneel to get inside. The other part was the fact that Santro has a better ground clearance than most in its category. And while air conditioning as a standard accessory was not available initially, the cost differential between an AC and non-AC was just a few thousand rupees.

The turning point for Santro was the 2003 launch of the Santro Zing which had the AC and power steering as a standard option. This was the major blow to have an impact of the market which Maruti was slowing losing its grip on. With no major improvements on the Zen and the delay for the tall boy Wagon R meant Santro went on to gain in leaps and bounds within no time. The only possible area where Hyundai could have lost the battles was costs. But using a single vendor approach for economies of scale and an 80% localization of suppliers, the Santro was the largest selling car within two years of its launch. Between 2003 to 2010, the Santro sold anywhere between 1,00,000 to 2,40,000 units year after year. It was the simple looking, comfortable interiors design, zippy but fuel efficient engine and the distinction that it was not a Maruti built its first base for Hyundai loyalists of today.  

In a city like Mumbai where driving might be a pain almost all throughout the day, Santro found a new lease of life in the last 5 years. The iconic black and yellow Premier Padmini was on its way out into the oblivion and there were already new contenders in the form of Maruti Wagon R, Alto, Omni, Ecco and Tata Indicab waiting to fill the gap. But the Hyundai Santro today has a dominant present as the new face of the black and yellow Mumbai Taxi. I am yet to see a cabbie who is not happy with the change to Santro. The ones who moved over directly from the Padmini to a Santro find a whole ocean of difference in the driving experience. Their most common appreciation comes in the handling and the power steering that have helped reduce their fatigue and work longer shifts. The ones who tried others and are now driving a Santro just say “yes uss se accha hai…”.

It is kind of funny that the Santro will be discontinued from the same year as the legendary Ambassador has taken its final bow. But one thing is for sure, if the Ambassador left its legacy as the car that was the one which enjoyed the decades of the Licence Raj, the Santro will be remembered for a car that established India as the global small car hub. What we will also remember is the fact that it pushed the wheels of the Indian auto towards previously perceived luxuries of power steering and air conditioning into standard specification and made our ride a little more joy. 

Not just Power, even Horse Power corrupts

"Power corrupts, absolute power corrupts absolutely "- the essence of a quote by Lord John Acton was originally in reference to monarchies which went on to wield power in a manner that was oppressive and ultimately resulting in revolutions. The world is no longer rules by crowns and thrones; but the concentration of power with one person has been happening time and again with military rulers and dictatorships. More often than not, these regimes collapse and revolutions led by citizens do happen.

While India has rarely seen such revolutions since the emergency, the Czars in India is a bit different. There is political power which resides with politicians, but is exercised to the full by at least a 100 people under them. The money power with an industrialist extends far beyond the limits of their family. Time and again, this power reaches you and me through their arrogance or acts which challenge laws and rules which apply to the rest.

But there is one area where almost every single one of us has become corrupt: thanks to a certain power vested in us as a privilege and not a right (used to be written behind a book style license). It is the privilege of a drivers licence. May be once it did certify that this person knows how to drive, today it also means this person has a license to chill, go for a thrill and hopefully not kill.

Let’s be honest; we all have driven rash at some or the other point. We do cut lanes, run red lights, ignore the yellow and the zebra crossing is actually a grey area with pedestrians. Many times, we have reasons justifying why we do so; while sometimes, it is actually unwarranted. Overall, we do end up abusing this privilege in ways more than one and in a way dominate power over someone who is not having the same at their disposal.

In the hay days of the License- Raj in India, owning a car or a scooter was something limited to only a small section of the Indian population. Limited choice options, controlled manufacturing and lack of easy access to finance and credit meant that the number of vehicles per family were less and hence also the traffic on the road. Almost everyone know their place in the hierarchy demarcated by their engine horse power: so a scooter was slower than a Yezdi while the Ambassador- FIAT could never outrun an imported car. I guess road rage was also mostly an unheard term then.

The 80’s era saw a super transition of sorts with cars and bikes getting affordable and easily available. The old guard of slow moving tanks like Ambassador- FIAT and Bajaj Super 150 were being replaced by zippier and trendy looking models from Maruti, Hero Honda, Yamaha and the likes. The cycle gave way to bikes and the biker turned car owners. But even though economic growth and access to finance has propelled consumerism to a new high, it is yet to make us aware of the fact that monetary power and its expression in the form of horse power are very different aspects.

I know the last lines were a bit over the top- but you can check this for yourself with a small social experiment. Stand at a signal where the only crossing is for pedestrians and observe what vehicles that stop at the crossing as soon as the light goes to red.  Repeat the exercise for five times and you will possibly confirm to similar results that I witnessed. Most bikers (70%) will not stop; instead will try to weave around pedestrians as they are crossing. Local buses or garbage trucks can be held back only if their way is obstructed by someone. Private luxury cars and private cars with drivers are most likely to stop (60%), so are cabbies and ricks with middle aged or older drivers (63%). For young adults of both genders, teenagers, cars with families- the numbers are just about 50:50.

My understanding from this is pretty simple. Bikers possibly rule pedestrians below them and actually don’t care. The same is true for buses and garbage vans as even when they don’t own the vehicles, they have the horse power. Drivers abide to rules, possibly coz they are still answerable to their employers. Cabbies are trying to just make a living and penalties don’t help their cause. For the rest; it’s all about the muscle and power under the hood that’s talking.

Very recently, a friend of mine was expressing his disgust about reckless bikers and the sheer ignorance and lack of driving skills for first generation car owners. In all honesty, it isn’t their fault coz their cars and bikes are an expression of their means and not skills. Yes, my friend and I have been fortunate to be having a car around us since birth, been bashed up for every scratch as we learnt to drive and actually took a driving test. We tried to hone it like an art rather than use it as means to vent our primal instinct; it was like the frontal cortex and not the limbic brain at the wheel.

Talking of limbic brain (also called the lizard brain), the best manifestation of our primal instinct is that we use SUV’s in cities. At a time when our cities are low on available parking space, we have car a of draconic size, with the driver perched at a position of vantage, an engine sounding like a T-rex chasing you, guzzles fuel like a blue whale and is built in a manner that will save the inhabitants and wreak havoc outside in case of an accident. Not to mention, the looks are often inspired from predatory animals and have names like Duster, Scorpio, Fortuner, Captiva etc. In a nut shell, the entire scheme is for dominating the streets by use of the horse power.

Though I have no clue where all this might go; but if the apathy, road rage and use of roads for defining why cars with powerful engines are called ‘mean machines’ goes on, we are likely to witness an expression of corruption via horse power that is likely to be so common that we shall even fail to recognize it. 

In-Film Blasphemy

Possibly a strong word for what I intend to write about; but its impact at times when used inappropriately destroys the sanctity of an art form and also is an abuse to a viewer. Sure there is enough logic for film makers and marketing fraternity to bind and place products in a movie- the problem is I’m seeing instances of in-film placements being done on a level which is so ridiculous that it actually spoils the movie experience.

In-Film placement (or branding) is something I had no clue of when I was asked about it during my application stage for a media school. In fact, what I wrote was utter crap and am actually confused how I managed to get through. But the grooming has now reached a level where I can know why Superman crashed into a giant Coca- Cola signage and why Bond drove into a van with Perrier water bottles. It also justifies why BMW, Aston Martin, Sony and other brands have so much invested in a Bond franchise. I would have still known a Mini Cooper from The Italian Job (Michael Caine or Mark Wahlberg), but I got introduced to Remington Vaults from it. My point is it is subtle and doesn’t seem like it is not a part of the storyline.

The scene in India has been a bit different though. Loads of films through the 60’s to 80’s have mentions of Mobil Oil, Chevrolets, Coca-Cola, Polson butter; but I guess I identify them since I have an open eye for it. Possibly Rajdoot motorcycles is the best example of intentional use of products in films. Bobby (1973) lent the motorcycle used the same as its name. In Hero (1983), Rajdoot has a complete product placement through 5 bikes- along with a song shot on the bikes and musical show with Escorts brand logo placed on the backdrop. Interestingly, the producer- director of Hero, Subhash Ghai had a song sequence with a fleet of Maruti 800’s in Meri Jung (1985) and Coca-Cola in Taal (1999). But none of these were overt displays of a product or brand, so much so that Bambai se gayee Poona and its association with East West Airlines is virtually unknown.

In recent times, in-film placement has become a significant part of a film marketing aspect. While working with Percept, my agency was coordinating with Godrej Security Sytems on Tasveer 8 x10. I got to learn a bit more of what is in-film and out of film associations. Honestly, I have no issues with out of film as it has no impact on my movie viewing pleasure. But I have a problem with brands that are force fit into the script.

So while the marketing fraternity was up in arms when Krissh offered his friend Bonvita or SRK travelling on Chennai Express told me what the latest Nokia handset could do (and the price as well), I was actually not impressed. BigB asked cops to chase Bunty aur Bubbli in an Orange Maruti Swift and Mariti Ertiga was the subject of Mere Dad ki Maruti… yawn! But surprises were when Munni badnam or Fevicol se did not have a large hoarding of Zandu or Fevicol in the background. Disappointments were though when Chulbul Pandey in Dabangg 2 used an Astral pipe to fight the bad guys and assured his father of financial security for the family by subscribing to LIC Insurance policies.  Comparatively when Ultratech Cement donned the Indian jersey in Chak De India, it was not a sore sight as it was actually the sponsor for hockey. The recent list on this front is actually endless.

The latest uproar is about Mary Kom- and rightly so as the brand placements are so very ‘in your face’ that it becomes a turn off. So like any Indian, she is cooking in her kitchen; why the specil focus on Tata Salt. Why is PC caught saying, ‘Hum ne desh ka namak khaya hai’, relieving muscle pain with a particular brand or switching to sugar substitutes when confirms pregnancy?? I have no objection against Monnet Steel for the branding on the jersey; but rest all is staged so bad that it is actually repulsive.

This is not limited to Hindi alone: a Marathi remake of Seven brides for seven brothers (coz Satte pe satta is a remake of this one) had a Tata Ace (Chota Haathi), Red Label Maharashtra mix (for the hardworking Marathi) and a masala brand being hammered all throughout. Recently, Poshter Boyz had a scene especially written for Birla Wall Putty highlighting its benefits, quality and other features compared to the rest as a blatant 2 minute ad.

What is the reason marketing and film fraternity causing such blasphemy and abusing a national source of entertainment? It is actually a sad state of affairs as in-film marketing agencies see theatre audience as a captive and a cheaper option to television ads. Brand owners, I guess, are demanding prime presence in shots and mentions of the brand in the script in some way. Sadly, film makers also see this as a good source of revenue to support the production costs and turn overs and are giving a fair amount of leeway to the advertisers in such cases. The overall impact- as a viewer, the brand communication is intruding into my entertainment space and actually getting a bit of a repulsive response for spoiling the texture of the movie.

I am actually interested in some hard core numbers to quantify the impact of such communication. Honestly, I have a feeling this is being run purely on mutual benefit theory rather than anything. Brands are lured assuring audience and cheaper media; film makers are actually abusing their creation through blatant and ‘in your face’ ads in movies by bending down to financial temptations. Overall, I don’t see a benefit- all I see is blasphemy. 

A disaster of Nano proportions

I just saw an episode of ‘The Men who built America’ on TV where the US courts broke down the empire of Andrew Rockefeller’s Standard Oil into smaller fragments under the anti-trust law and paved the way for competitive markets to replace the oil monopoly. The same also coincided with the rise of Henry Ford and the model T becoming the first car people from the American middle class could buy. This changed the whole landscape for the automobile sector in the US in the 1900’s.

India saw a similar shift when Maruti & Suzuki launched the Maruti Suzuki 800 (the Indian version of the Suzuki Fronte) hit the Indian roads in 1983. Beating the long waiting periods and the virtual dearth of India to think beyond the Ambassador, Premier Padmini, Jeeps and an odd Standard Gazelle or Herald, Maruti 800 forged the way for the Indian middle class to realize the Car dream. The parallel progress was the 2-wheeler market which moved from the age old Bajaj 150 Super to sleeker motorcycles built most by Indo-Japanese collaborations with Suzuki, Honda, Kawasaki etc. All of a sudden, the Indian families found mobility.

The globalization of the Indian economy in 1991 saw an avalanche of car manufacturers flood the Indian markets. Asian giants from Japan like Toyota, Honda, Mitsubishi, South Koreans with Hyundai and Daewoo and the Europeans like Peugeot, Mercedes, FIAT saw India as the hot bed. Some perished, some survived- but their success was all due to the revolution started off by Maruti; which survived every new entrant. It was only a matter of time before Indian heavy vehicle giant TATA stepped into the ring with passenger cars. Success came to TATA when the Sumo picked up in the rental segment and the Indica V2delivered in the family car.

While the affluent and middle class migrated from the small Maruti 800 to sedans from Honda, the gap between the 50K motorcycle to a 250K Maruti 800 still kept most of India in search of the 4 wheels. This was the gap which the Tata Nano was out to bridge since 2006; a car which costs just about 100K to appeal to the large volume of smaller Indian pockets. I can vouch for the excitement it created; there were so many designs floating on the net to claim to be the Indian people’s car.

The buzz was so high that the chief of the Nano team; Girish Wagh found his way into my General Awareness exam papers in MBA. Not to mention, Nano was formally launched on my birthday in 2009. People I remember spent hours to get a test drive of the new car and interest levels were so high that the car allotment had to be done through a lottery method by filling out forms through State Bank of India branches across India. It was spacious beyond imagination and gave driving comfort which small cars usually cannot offer. Yes, it was a little under powered for some; but perfect for city driving.

So why after 4 years of its launch, there are less than 800 Nano’s hitting Indian roads each month with sales dipping every month. Why is a car offering over 20kmpl not ringing the registers for TATA? Experts cite a lot of possible errors ranging from their marketing to the Singur issue. But what really is it? I feel it was a lot of factors coming together.

Promises a little too long: The initial buzz that caught the frenzy of the Indian market was the fact that Nano was going to be a car with space for a family at a price tag of INR 100K.  The initial offer from the TATA’s on the base model was just a fraction above the promised pricing. But the promise soon faded away amidst global pressures arising due to higher costs for steel. As prices went higher and reached closer to the 2^nd hand car market, Nano was o longer the 1^st choice. Why will anyone go for a car which has no frills when a decent 2^nd hand can come in the same price?

Positioning: I don’t think you need to take a lot of marketing effort for a car that is so much in buzz, positive vibe through test drives and booking rush that you had to go in for a lottery system. You can’t buy that kind of PR and buzz that Nano lost its relevance with iPod for some. Not to mention the advertising which showed even a BEST bus driver going to work in a Nano, the joy of the child when a Nano reached a far off village in Ladakh did its job of creating the awareness.

Now the demand was high, but where was this demand coming from? Was it the urban middle class looking for its 2^nd car; or it was in fact serving as the means to someone meeting his dream of 4 wheels? I believe it was more of the first and this was one area where the market started to deviate from the vision of TATA. Though the ads positioned it in one way, the market attracted was a different one.

Time to Market: So let us call this a case of a car that was wrongly positioned- but that hardly discounts the kind of interest and numbers reflected in the participation of the lottery. So was the lottery a bad idea?

Honestly, it was not the first time it was happening in India. The first Maruti 800 customer was an Indian Airlines employee who got the privilege by a lottery, while the rest with the moughals of the 80’s with money and even political power had to wait. What was different now was that there were options for the customers who did not wish to wait and try a hand with lottery. The exit barrier was low and it actually did not matter much to just let go.

Teething trouble: Once bitten, twice shy- Indian markets today are ruthless in this regard. While the world was waiting to hear how the Nano performed in the real, sporadic cases of the car catching fire sank the interests even more. ‘Nano should be offered with a fire extinguisher’ spread like a wild fire and didn’t help the cause. In any category, it takes ten times the effort to win back a customer. While the competition was cutting down prices, offering warranties and making the markets tough, the hazards of fire was damaging.

When I see the new ad from Nano with the youthful feel, all I wish for is that let this one click and the fortunes of the Nano move in the right direction. I also read that Girish Wagh after a small disappearing act is back on the job. Let the new management divert the future of this car to greater heights and away from which is closer to its name.