With companies eying to assemble SUVs in the country, waiting period for such high-end vehicles is expected to come down in the coming days  Consumers willing to purchase sports utility vehicles (SUVs) now have a reason to rejoice. Top SUV makers operating in India such as BMW, Audi, Tata Land-Rover etc are planning to manufacture their SUVs in the country itself by assembling components locally, which will play a big role in reducing their prices. Low manufacturing cost benefiting India
According to Puneet Iyer, sales manager of Divya Automobiles, an Audi dealer in Bengaluru, “Manufacturing costs in India is much less as compared to other parts of the world. At present most of the SUVs are imported from other countries, which make them very expensive. The penetration level of SUVs in the country is increasing thick and fast due to increase in disposable income among consumers. Therefore, it is apt for companies to look to assemble auto parts in the country itself, which will bring down costs of such vehicles.”
Analysts also opine that the upcoming festive season in the country, when car makers enjoy a dream run, might have prompted SUV manufacturers to devise this plan. It is to be noted that BMW has plans to launch its premium model BMW XI during the October-December quarter of 2010-11, while Hyundai motors plans to venture into the segment by launching Santa Fe, which is expected to intensify competition further.
In this context, Achinkya Pande, sales manager of Deshraj Automobiles, a Tata Land-Rover dealer in Mumbai, says, “Another advantage of assembling parts in the country is that it will bring down waiting period for SUVs, which in turn will increase the company’s client base.” Some of the premium SUVs that are in the pipeline to be assembled in India are Audi Q3, Land Rover Freelander, Volkswagen Tiguan etc. Meanwhile, Audi has already commenced assembling its premium SUV Q5 in the country, which will be priced between Rs 25 and Rs 28 lakh.
Arup Choudhury |
