Premium price warrior

LAUNCHES THIS month of the Honda Accord and the Hyundai Sonata multiply the Indian premium segment three fold — with Mercedes already in with its C, E, and S Class offerings. The Skoda Octavia and the Opel Vectra will soon follow and the end of the year should also see the Ford Mondeo on Indian roads. Considering that most estimates put the size of this segment at less than 15,000 cars annually (with Ford India estimating as few as 4,000), one wonders how many each manufacturer realistically hopes to sell.

Hyundai has gained the reputation of a price warrior in India, with not necessarily the cheapest cars, but appearing to give "the most value for money". It proved this with the Santro — the first of the post-Maruti "imports" that seemed to have got its marketing right — when every one else made a bee line for the midsize market, its "Indian" management convinced the Korean head office that a small car ought to be the initial offering. Effective brand promotion, with an unconventionally brilliant advertising campaign, proved it quickly right while rapid, but quality conscious, indigenisation and an excellent service network have already made it a worthy competitor in the small and midsize segments. The Mercedes E- class, the Accord, the Vectra, the Sonata and the Mondeo are all virtually the same size, with what one gives up in length it makes up in width, etc. They are all also powered by petrol engines of the same displacement (2 to 2.5 litres) while the three-pointed star, Opel and Ford offerings are optionally available with direct injection diesel engines of about the same size. All these cars are internationally referred to as 'D- class', although Mercedes chooses to call its car an 'E'. The Indian market will include the 'C-Class' Mercedes in this segment although, as the name implies, it is smaller and shares the dimensions of the Octavia.

Roomy and attractiveThe Sonata is externally attractive with strong overtones of Jaguars, past and present, in its design. It is better looking than the Honda Accord or the current E-type Mercedes, which has a successor due next year, but the new C- class Mercedes beats it in the appearance sweepstakes. The Sonata `Gold' variant comes with leather upholstery and alloy (`mag') wheels that add to its appearance. This premium version is also fitted with anti-lock disc brakes, ventilated in front, and traction control, but a driver's air bag is an optional extra. The four-cylinder petrol engine is quiet and balancer shafts and hydraulic mounts reduce engine vibration. Its maximum output of 130-brake horsepower is less than that of the Accord's V-Tec.

Interior room in the front wheel drive Sonata, Accord and Mondeo is excellent and superior to that of even the slightly longer E- class Mercedes — Mercedes sticks to a " traditional" front engine, rear drive arrangement that makes for a longer engine compartment and an intrusive transmission tunnel but compensates with better front- rear weight distribution. Its suspension is compliant making for a smooth ride, but the impressive 177mm ground clearance when lightly loaded comes down rapidly as the load increases.

Hyundai seems to have decided that most Indian Sonata owners will be chauffeured around and has made the rear seats more luxurious than in the 'Korean spec' version by transplanting the seats from its big sister, the Grandeur. The rear seats are comfortable but the Sonata is such an easy and pleasant car to drive that many will want to drive it themselves. Its driving position is superb for drivers for almost all shapes and sizes (unlike the awkward one in the Accord) and all the controls come easily to hand. The Gold variant costs about a lakh more than the GLS, but is so comprehensively equipped that it is the one to go for.

Pursuing the specification games that many Indians seem to be obsessed with, Hyundai may soon need to introduce a model with a V6 engine and an automatic transmission. It is likely that it will also introduce the refined, powerful and frugal second- generation common rail diesel that the Italian firm VM Motori has developed for it within six months. When it does, it will meet Mercedes on its own ground in more than one sense because, ironically, VM is now a DaimlerChrysler subsidiary! (Regular readers of this column will remember a detailed account of this development last February.)

It is likely that the Accord (and the Mondeo) will be the Sonata's main competition and one can only wait to see whether its lower rice — approximately Rs. 2 lakhs cheaper (than a similarly featured Accord that is slightly more powerful and has air bags for both the driver and front passenger, but does not come with alloy wheels and leather interiors) — will offset its currently lower brand image. The E-Class Mercedes is twice as expensive and even the 'C' costs at least Rs. 10 lakhs more.

The Sonata is for those who want a large, safe and comfortable car without wanting to pay a premium for a brand name — truly a premium price warrior.

C. Manmohan Reddy

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