Motoring
Luxury carmakers change lanes to cruise in a slow market
BERLIN – Earlier last month, German luxury car maker BMW launched the 1 series at an entry price of Rs 20.90 lakh (ex-showroom, India) — a mere Rs 46,000 higher than the entry-level variant of Honda’s premium sedan, Accord. This time, the idea was not to attract the usual well-heeled upwardly-mobile consumer who would otherwise opt for Mercedes-Benz and Audi, or, occasionally, the Jaguar-Land Rover. Instead, with the 1 Series, BMW was eyeing buyers of Honda, Toyota and Volkswagen.
BMW is just another of the many bringing entry-level luxury cars to the market. Earlier, in May this year, compatriot Mercedes had launched its luxury hatchback, A Class, at prices starting Rs 23.39 lakh. Audi, with its compact SUV Q3, launched last year, has already gained pace in race for the top slot in the luxury market.
The numbers already seem to reflect consumer preferences. While retail sales of luxury vehicles from the Mercedes and Audi stables have shot up 22 per cent to 13,852 units till September this calendar year (BMW shares only its annual sales numbers), demand for premium sedans like Skoda Superb, Honda Accord and Toyota Camry have shrunk by a fourth to 1,586 units in the first six months of this financial year. In this category, sales had dipped 32.2 per cent to 4,358 units in 2012-13, too, according to wholesale data from Society of Indian Automobile Manufacturers (SIAM).
“We are looking for a lot of new customers to enter the BMW world with the 1 series. We will target people in the age group 18-40 years, urban high achievers, educated, who want to drive the car themselves. The 1 Series has proved in other markets that it can make the drivers of high volume cars from Honda, Hyundai and other brands to come over to BMW,” says BMW Group India President Philipp Von Sahr. The company has good reason to bet on entry-level cars to boost its sales tally. In 2012, the X1, with sales of 2,461 units, had accounted for 26 per cent of annual volumes. For Mercedes, too, Next Generation Compact Cars (NGCC) A Class and B Class models account for 25 per cent of the sales in the country.
Mercedes Benz India MD & CEO Eberhard Kern says: “Today, one out of every four cars we sell is from the NGCC family. There are broadly two categories of buyers for the A and B Class — the first is of customers who already own a luxury car and are purchasing their second or third vehicles. The second group comprises salaried professionals, entrepreneurs and owners of small and medium enterprises who are purely upgraders. In fact, company executives inform more than half the buyers of the newly-launched A Class (tagged upwards of Rs 23.39 lakh; ex-showroom, Delhi) are those who have never owned a Mercedes before. The target class includes those looking for a Toyota Camry, Honda Accord, Volkswagen Passat, Hyundai Sonata, Nissan Teana or Skoda Superb. And the pull is such that despite the slowdown in domestic automobile market, the brand already has on roads over 1,000 units of the A Class compact and B Class sports tourers in India.
The A-Class currently has an order backlog, with waiting periods stretching to over 12 weeks, even as the headquarters in Germany continues to struggle to produce more. Executives at BMW inform that 1 Series would keep the counters ringing. “The 1 series has been received very well. This car, along with the 5 series would be the key growth driver for the company”, said a senior BMW India executive.
“There has been a coupling effect. With luxury car makers introducing entry-level models, the price differential with premium products has come down by around 30 per cent. This has broadened the target consumer base. Additionally, these entry-level luxury products enjoy strong brand value, customers who were initially looking at making purchases in the Rs 15 lakh bracket are stretching their budget to own these aspirational products,” explains Puneet Gupta, associate director at automobile advisory firm IHS Automotive India.
Led by the A Class and B Class, Mercedes has reclaimed the number-one position in India’s luxury car market from Audi in the third quarter of 2013. The company’s sales grew 58 per cent to 2,696 units in the three-month period, compared with 2,545 units sold by Audi.
To keep the excitement going in India, Mercedes will step up its launch pace. Next year, it will launch the GLA, a compact luxury sports utility vehicle, and the CLA, a four-door coupe. Both these models are expected to be priced under Rs 30 lakh.
The Federal Capital Territory Administration (FCTA) has ended contracts with taxi rank and terminal operators due to their failure to meet engagement terms and conditions.
Mr. Ubokutom Nyah, the Mandate Secretary of the Transportation Secretariat, FCTA, made this announcement during a meeting with managers of these terminals and taxi ranks in Abuja.
Nyah clarified that due to the operators’ failure to fulfill their engagement terms, the FCTA had to terminate their contracts.
He instructed them to transfer control of the ranks to the Administration within three months, starting from Nov. 21.
He lamented the presence of unauthorized motor parks in the city and assured the readiness of the Administration to establish proper taxi ranks and terminals in the capital.
He revealed that personally visiting the city’s taxi ranks, terminals, and unauthorized motor parks gave him direct insight into the poor condition of these facilities.
He emphasized that as the federal capital city, Abuja deserves better, highlighting that the poor condition of these facilities attracts various criminal elements.
He said “We must rid Abuja of all these. I have gone round the taxi ranks, and of all the places I visited, not one is worthy to be called even a village motor park.”
The Mandate Secretary stressed that the intention wasn’t punitive; rather, it aimed to revamp the sector, introduce new engagement terms, and modernize taxi ranks and terminals in the federal capital.
He also highlighted the plan to increase the number of terminals and ranks where necessary, which would positively impact the administration’s revenue.
He emphasized that this measure was part of a broader effort to eliminate illegal motor parks in Abuja and curb the associated criminal activities.
In response, Mr. Adebisi Lawal, the Operator of Jahi Taxi Rank, praised the administration’s initiative to modernize the taxi ranks and terminals.
Lawal urged the administration to prioritize current operators’ involvement in the selection of new developers for the modernization of the taxi ranks and terminals.
It was a show of power at the Ojota area of Lagos on Monday as soldiers pummeled an officer of the Lagos State Traffic Management Authority, (LASTMA).
Eyewitness accounts claim that the ugly scene played out around 8am, and saw about eight soldiers pounce on the yet to identified LASTMA official, while his colleagues took to their heels.
The video of the melodrama has gone viral, where the LASTMA official was appealing to the soldiers, who appeared bent on ‘teaching him a lesson’.
This onslaught comes on the back of a reported assault of a soldier at the same location by LASTMA officials last week.
It would appear that what played out today was the army asserting its authority and defending their khaki as the armed soldiers carried out what looked like a revenge mission.
Eyewitnesses further averred that the victim was rushed to a nearby hospital, after the soldiers left the scene.
It was gathered that the authorities at LASTMA has reported the incident to the military authorities who are said to be looking into the matter.
Meanwhile many members of the public are rejoicing that the soldiers have taught the crude LASTMA official that power is stronger than power, for all their atrocities against motorists on Lagos roads.
The impact of the removal of subsidy on Premium Motor Spirit (PMS), otherwise known as petrol, has seen the pump prices of the product skyrocket with a corresponding increase in the cost commercial transportation in Nigeria.
According to the National Bureau of Statistics (NBS), intra-city bus transportation fares across Nigerian cities, measured between May and June 2023, increased from N649.59 to N1,285.41 in June 2023.
This translates to 98 percent growth or N635.82 within the month in view.
The NBS made the data available in its Transport Fare Watch report for June 2023.
In the report, the NBS also shared the breakdown of bus journeys within the cities per drop for constant routes; bus journey intercity (state route); charges per person, amongst others.
On a year-on-year basis, the report has it that bus fares rose by 120.63 percent from N582.61 paid by commuters in June 2022.
The average fare paid by commuters for bus journey intercity per drop rose to N5,686.49 in June 2023 compared to N4,002.16 in May 2023 indicating an increase of 42.09 percent, month-on-month.
The report read, “The average fare paid by commuters for bus journeys within the city per drop increased by 97.88 per cent from N649.59 in May 2023 to N1,285.41 in June 2023.
On a year-on-year basis, it rose by 120.63 per cent from N582.61 in June 2022.
“In another category, the average fare paid by commuters for bus journey intercity per drop rose to N5,686.49 in June 2023, indicating an increase of 42.09 on a month-on-month basis compared to N4,002.16 in May 2023.
“On a year-on-year basis, the fare rose by 55.25 per cent from N3,662.87 in June 2022.”
Biztellers reported that the twin forces of forex pressure and increasing price of Brent in the global market would likely see the pump prices of petrol, increased again in no distant time in Nigeria.
I Make $40,000 Montly With Content Creation Says Blessing CEO
Senator Ifeanyi Ubah Laid To Rest In Nnewi Amidst Tight Security
Tinubu Moves To Transform Tragedy To Prosperity With Livestock Investment
Nicki Minaj Teams Up With Davido On ‘The Pink Print’ Anniversary
Simon Ekpa’s Arrest Will Restore Peace In South East, Says Enugu Gov’t
Wizkid’s “Morayo”: Critics, Fans Clash Over Album’s Quality
OSSG Raises Alarm Over Murder Plot By APC Chieftain
NCC, SMEDAN, NAICOM, SEC, Others Set for SUPERNEWS SMEs Conf June 13
Sahara’s Tonye Cole resigns from GPHCDA
Oando opens ultra-modern petrol station in Lagos
Niger Delta Avengers: President Buhari Reads riot Act …considers the carrot and stick option
