SUVs out in force despite crackdown

SUVs out in force despite crackdown

Toshihiro Suzuki, president and COO of Suzuki Motor Corp, right, and Kenichi Ayukawa, MD and CEO of Maruti Suzuki India Ltd, pose with the newly-launched Vitara Brezza at the Indian Auto Expo 2016 in Greater Noida on the outskirts of New Delhi yesterday. AFP
Toshihiro Suzuki, president and COO of Suzuki Motor Corp, right, and Kenichi Ayukawa, MD and CEO of Maruti Suzuki India Ltd, pose with the newly-launched Vitara Brezza at the Indian Auto Expo 2016 in Greater Noida on the outskirts of New Delhi yesterday. AFP

New Delhi: India's flagship auto show opened its doors in New Delhi yesterday, with a new batch of diesel-guzzling SUVs on proud display, despite industry uncertainty over a pollution crackdown targeting motorists in the capital.

More than 80 vehicle launches were expected at the Auto Expo 2016, the biggest edition in the show's 30-year history, with the Fiat Chrysler Automobiles-owned Jeep making its India debut hoping to capitalise on the popularity of sports utility vehicles.

SUVs pouring onto the roads have been partly blamed for the Indian capital's toxic air which the World Health Organization has ranked the worst on the planet.

The Delhi government and the courts have announced a string of measures to tackle the crisis, including a ban until March 31 on registration of new diesel cars with an engine capacity of two litres or more -- typical of large SUVs or luxury cars.

Although the moves have rattled the industry, carmakers pushed ahead yesterday with showing off their new range of SUVs -- smaller, cheaper versions of the off-road cars that can more easily navigate chaotic city streets and aimed at young, urban buyers.

Among those unveiling these "compact SUVs" was Maruti Suzuki, the Indian subsidiary of the Japanese carmaker better known for its dominance in the small car market, which was holding the global premiere of its Vitara Brezza.

"India's SUV market has been growing at a very fast pace. This is a segment in which we were not present for a long time and we are proud to say in this case the design has been done by an Indian team," C.V. Raman, executive director of engineering at Maruti Suzuki India Ltd, told AFP.

India's biggest car maker Tata Motors Ltd showed off a slew of new models as it seeks to revive its flagging market share, including two forthcoming SUVs and the Zica hatchback, which it plans to rename following the spread of the Zika virus.

"We recognise the need to improve air quality, but when we look at the targets being set, they should be set based on emissions -- limits on emissions rather than restrictions on engine size,'' Timothy Leverton, Tata Motors' head of research and development, told AFP. 

Industry insiders say there are fears that the ban on large diesel cars could be extended to other cities also trying to combat air pollution, or extended for a longer term.

Carmakers are rushing to offer petrol-powered versions of their vehicles as well as diesel, for fear motorists may shun the dirtier fuel.

"Right now the impact is not too much, but more and more in India, customers are becoming aware of it," Abdul Majeed, a partner at consultancy firm Price Waterhouse & Co and auto industry expert, told AFP.

With polluting cars in the frame, electric and hybrid vehicles -- still a niche market in India -- also made a strong showing at the expo, with Toyota Motor Corp saying inquiries about its Camry hybrid doubled in January.

India has an extremely low number of cars for its 1.2 billion population, with industry figures suggesting there are as few as 16 cars per 1,000 people.

But despite its huge potential, the domestic passenger car market has performed poorly in recent years with sales growth flat or in single digits, the Society of Indian Automobile Manufacturers (SIAM) says.

After two days of press previews, the show will open to the public on Friday and run until February 9. afp

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