Car companies in reverse

Higher interest rates and competition have forced auto makers to think again when adding new models to their stables. Examples include Toyota Kirloskar Motor (TKM) launching the Etios sedan variant before its Etios Liva hatchback; Renault India pricing the diesel variant of its first solo launch, Fluence, cheaper than the petrol; and Volvo Auto India offering the diesel variants of its crossover XC90 and sedan S60 cheaper than the petrol. TKM expects the success of the Etios sedan to rub off on the Liva. Volvo is producing cheaper diesel engines, while Renault will offer cheap cars with high-end features. Such contrariness is also due to the Indian market.“Multiple models are vital, as are renewed product placement strategies,” said Abdul Majeed, an auto practice leader at PricewaterhouseCoopers. He feels the industry will see more such strategies.