Funding your dreams and meeting your needs have never been so easy. Be it your dream home, car, iPod , yearly holidays, plasma TV, or even a Delhi-Mumbai air ticket, you can stop fretting over the cost factor . Banks are more than ready to address all your worries with loans for all your needs. But, as the saying goes, all good things come at a price and this is no exception.
This is the EMI age, where a major chunk of your monthly income goes towards repaying our loans. Certainly, financing all your needs with easily available loans seems an immediate solution for fulfilling all your present dreams. However, the ghosts of repayment and high interest expenses are more than enough to rob all your sleep for the rest of the life.
Do some plain calculation of adding up all the EMIs (equated monthly instalments) that you are supposed to pay over the full loan tenure and then compare the figure with the actual cost of the product. An astounding sum would come out staring at your face. This is the price that you are paying for not living within your budget.
Even if you are capable of repaying your loans, it makes little sense to opt for a loan for just any reason under the sun. Loans might be necessary and unavoidable in certain cases, but most often one can avoid taking interest-guzzling loans, at least in part.
Just pay heed to measures mentioned here and you can end up with savings lakhs in your life time.
Sensex @ 10K! Sounds alarming? Not, if the current momentum on the bourses continues and there are more than enough catalysts to propel the markets further, at least at the current growth rate.
The Indian stock market has never seen so much interest in the recent past. The bulls are charged up and the market scaling new peaks is almost a daily routine now.
The bulls had roared loud last time with such intensity when Harshad Mehta was around. The BSE Sensitive Index (Sensex) had surged from the 2,000 level to the 4,000-point milestone in less than three months. However, that boom proved to be a damp squib once the deeds of Mehta were out in open. Thereafter, the benchmark index, which tracks 30 large-cap stocks, had taken more than seven years to cross the 5,000-point level. The obvious reason, the past rallies were driven by more of speculations rather than fundamental strength.
Here are some reasons why the bull run on the bourses will not stop.
ContinuedThe big question is: will Sensex touch Mt 10K?
BARUN JHA"Roti, kapda aur makaan" has been the theme of mankind ever since evolution. Even Adam and Eve began their life together with a bite in apple, which was followed by a dress made of leaves and a cozy abode among the shrubs. However, Adam and Eve had the whole Garden of Eden at their disposal and they did not have to pay the God anything for building their sweet home. Unfortunately, we are not as lucky as our very-first ancestors and we need money and lots of money for even an inch of land that we can say our own and where we can build our own sweet home.
Living in own house has been always a dream that we the Indians cherish the most. Thanks to this dream, the real estate market has been consistently on an upswing and is still going strong. With the prices always surging up above the roofs, an average Indian always feels short of funds for his dream home when he ventures into the market.
However, the economic reforms over the past few years have led to a significant decline in the housing finance interest rates. The southward movement in interest rates, together with tax sops associated with home loans, has made opting for a housing loan almost a must when one thinks of buying a house. So when India's richest man and software major Wipro's chairman Azim Premji wanted to build a house (a palatial farmhouse, to be precise), even he went for a housing loan. Premji draws an annual salary of Rs 2.4 crore and he is estimated to be worth nearly Rs 40,000 crore.
While the likes of Azim Premji have got options of taking a loan for their dream home or financing a many houses just from their salaries, a common man can't even think of these liberties. True, the personal incomes are going northward these days, but so are the expenses. And home loan is the only option for a majority of home-dreamers. Home loan is still the only route that a common man can take to fulfill his dream. And then there are those who want to buy their own home, are eligible for home loans, but can't arrange for the down-payment part, which comes out to be at least 15% of the property value. More than often, this small percentage runs into lakhs and this is no small amount for a common man.
Thankfully, the banks and housing finance companies (HFCs) are more-than-ever ready to happily finance your dreams – no matter whether you are Premji or just another common man. And the "common man" means its literal meaning here, including those who do not have a few lakhs left in their bank accounts to pay for the down payment or a small part of the property cost that one needs to arrange on their own besides the loan.
With the ensuing cutthroat competition in the housing finance market, the banks and HFCs are always going an extra mile to lure their potential customers. While, the lowering of interest rates and hefty discounts are likely to have reached their optimum levels, there are charting new territories to expand their reach. The latest carrot on offer is 100% or more financing or zero down-payment loans for your dream home. However, this is a hidden carrot as yet, thanks to some regulatory constraints, and here we are trying to crack some secret codes to unlock this treasure for potential home buyers.
Full package on a platterTypically, the banks and HFCs offer upto 85% of the property cost as housing loans. The total cost of the property include various charges as acceptable to the HFCs, such as agreement value of the property, the stamp duty and registration charges, the society transfer charges, garage charges for parking cars, electricity connection and water connection charges, as well as cost of additional furnishings done by the developer or builder, for which an amenities agreement has been entered into between the customer and the developer that has been duly stamped and registered.
However, there are select banks that offer 100% or even more financing for your dream home without any extra efforts from your side. You just need to ask the representatives of these banks or their authorized agents for these offers. On standard home loan products, Citibank claims to offer home loans upto 90% of the property value, the highest from any bank. Lately, Citibank has come up with a new home loan product that it calls "zero down payment loan." According to a loan calculator provided by the bank on its website, a person with monthly income of Rs 30,000 is eligible for a dream home for upto Rs 1,628, 372 with a 15-year loan under this zero down payment plan. Incidentally, the loan amount is same under the bank's standard home loan plan on similar metrics, according to the web-based calculator.
ICICI Bank, a major player in the housing finance market, also offers "Special 100% funding for select properties," claims the bank's website. However, the bank offers only 85% of the property cost as home loans under its standard plans. The bank sources admit, however, that 100% financing is considered in special cases.
You can also find pamphlets and banners from associates of several other banks and HFCs claiming to arrange loans of upto 110% of property value.
Lack funds! Club two loansWhile qualifying for special consideration from banks for 100% funding might be difficult for some home buyers, taking another loan is always an easy option to make up for the margin money required to finance your dream home. In personal banking sector, home loan is not the only market that is booming. Banks are also aggressively marketing their personal loan products nowadays. With ever-improving lifestyles of all, personal loans are available for any reason you can think of. Banks don't even ask you what you care going to do with the money, as long as they are sure of your repayment capabilities.
You can always take a personal loan for the 15% of the property cost that you need to give as margin money or down payment. However, you should be ready to fork out extra bucks as interest costs, as the interest rates are considerably higher for personal loans, as against the home loan rates. Typically, home loans are available at interest rate of 7.25%-9.00%, while personal loan rates can go above 20%.
However, availing two loans together might be difficult, if you have opted for maximum loan amount you are eligible for. The HFCs calculates the loan amount eligibility through installment to income ratio (IIR) and this ratio is based are your salary, qualifications, employer/business, years of experience, growth prospects, alternate employment prospects and sources of other income. The IIR is normally restricted to about 40%-50% of your monthly gross income. The 40% IIR is based on these assumptions: about 10% of income is spent on repayment of existing or future loans, about 25% of income goes for statutory deductions and investment purposes and about 25% of income is stipulated for monthly expenses.
Buy home and renovate it too!While, personal loan is an easier option, home improvement loan can prove to be much more cost-effective for your pockets. The interest rates on home improvement/home renovation/home extension loans are only marginally higher than the home loan rates and vary from 7.5% to 9.5%. Through these loans you can save upto half of interest costs, as compared to the home loans.
An executive with a home finance associate of ICICI Bank says, while bank provides 85% of the property cost as home loan, upto 30% of the loan amount can be disbursed as home improvement loan. Therefore, if one wants to buy a property with cost of Rs 10 lakh, he is eligible for Rs 8.5 lakh home loan and another Rs 2.55 as a home improvement loan. Collectively, he can take a loan of 11.05 lakh, which comes out to be 110.5% of the property cost.
However, renovation loans are sanctioned only after submission of original property papers. Therefore, one has to necessarily opt for the same HFC, from which he is availing the home loan. The HFC keeps the property papers until the home loan payment is on and will not transfer them to another HFC. Still, if one wants to opt for a different bank or HFC for home renovation loan, he has to transfer his existing home loan to another bank after making prepayment charges, as applicable.
Most often when one buys a home that is still under consideration or when the possession is still some time away, full payment is not asked for immediately. Typically, a builder asks for around 15% of the property cost at the time of possession. Therefore, one can easily take a loan of upto 85% of property cost at the time of buying the property and can follow it up with a home renovation loan for the remaining amount before taking the possession.
The only extra effort one needs for a home renovation loan is a certificate from a qualified civil contractor/engineer/architect, detailing the necessary repair or renovation work of the property.
Take a loan and top it upThere may be instances when one has got some liquid funds left in his bank account that can make up for the margin money or the down payment. However, the potential buyer may not be in a position to lock the fund for a long period. In these circumstances, one can utilize the available funds as down payment and take a home loan of upto 85% of the property cost. Subsequently, he can take a top-up loan against his existing home loan and can put the extra money back into his accounts.
With the declining interest rates, banks and HFCs are aggressively marketing their top-up loan products as well these days. The banks are currently offering top-up loans considerably in excess of the outstanding loans plus the prepayment charges, if any. This option also helps in reducing the overall interest costs, as the top-up loans can have interest rates lower than the rate of existing loans, due to the ongoing downward movement in the interest rates. Moreover, in some cases while providing top-up loans, banks consider the current market value of the property as the floor price and with the current boom in real estate market, the property prices are consistently on an upward trail.
Check your good faith One of the most cost-effective ways to fund the margin money is help from friends/relatives or your employer. While, taking a personal or home improvement loan might cost hard on your pockets, some monetary help from friends/relatives or your employer might come without or very little interest costs. Check out if your employer can provide you with a low-cost loan or if a worthy relative or friend can spare some money for some time. Remember that your good faith counts a lot here and getting help from these fronts depends a lot on how you fare in their books.
A word of caution To sum it all, while getting 100% funding for your dream home may not be a difficult task, the loan repayment might come to haunt you even after you are sleeping in your own home. Therefore, ascertaining one's repayment capabilities is a must before going for the home loan, whether 100% or 85% of the property cost. Another measure to reduce the burden while going for a smaller loan for the margin money, whether from banks, friends, relatives or your employee, is that one should opt for a step-up home loan. This particular home loan product allows one to pay gradually increasing installments, instead of equal repayment installments under the standard plans. Therefore, while your loan for the down payment portion is still going on, a lesser EMI for the home loan might prove to be really helpful.
Ascertaining one's repayment capabilities becomes more important in view of the RBI (Reserve Bank of India) taking strong note of the practices of providing 100% or more funding for home purchases. In the recent past, the central bank has warned several times against a potential upsurge in credit defaults and possibly a subsequent bubble-bust in the home loan market, as margin money being up by a borrower also works as a sort of commitment from his side to the loan.
Therefore, go and get financed your dream home, but make sure of your repayment capabilities if you want to live happily ever after.
Banda Yeh Bindaas Hai
Big B says he still wants to shake his legs with amorous Aishwarya, but people don’t let him. So, when he gets a chance with Nandita and Raveena simultaneously, it never appears too much for this big man. One for the day and one for the night, but there are still morning, evening, noon, afternoon……….
Loving his women has never been a big thing for Big B. He has done this earlier in his hey-days with great aplomb and now it seems he will keep on going after his newly acquired Hollywood –type avatar. We all know it is never a taboo in Hollywood films for the ageing actors to pair up with all the belle and beauties. Remember yesteryears’ James Bond Sean Connery- and- Catherine Zeta Jones- act in Entrapment?
But now you don’t have to strain, stretch and tear your ears apart to hear the mumblings of Hollywood, for feasting your senses with such acts. Jump for joy for the verbal indulgence and visual gratification ‘Aks’ provides you with, starting a new trend with ravishingly young Raveena and the not-so-young Amitabh.
Amitabh must be at a big high. What a luck man! He must have desired it in his not-so-lucky days of his second innings. Nobody ever complained of his action or high-power emotional scenes. It was the love-act in all his Jaadugars and Akaylas that let him down. But now he ahs got the mantra to impress his viewers while rubbing his finely cropped grey beard into the silky black locks of Nanditas and Raveenas. Sport a Hollywood look and all the dusky damsels are right here, not in distress, but seductively strip-teasing before you. In Demi Moore’s tantalizing fashion.
In fact, it must be real difficult to stay sober and upright as an old man for someone like Aby Baby. He is the same man who has enjoyed the spring of Bollywood in the company of Rekha, Zeenat, Parveen, Sridevi and all. Just name a Bollywood beauty and you recall Amitabh crooning beside her. Be it a namkeen seaside song, drenched-in-rain duet or just plain romantic numbers like Kabhie Kabhie. It has been Amitabh all the way. So, how can you just write off his days of romance? He has always been considered the best lover silver screen ever had. How can you expect him to practice his coochie-cooing with his contemporary grey-league only?
No way! A horse and a man never get old. And is our Big B any older than his Western counterparts like Michael Douglas and Sean Connery? He is certainly the horse for a longer race. Just wait and watch with bated breath. A whole new innings follow here. Look forward for Big B fulfilling his dreams of gyrating with Aishwarya. What if ‘Ras Peene Ki Pyaas Hai’?
Jack and the Gang, jumped with a Bang
Mama Miya….Pom Pom….Sounds weird? These were the signature lines of a hit era of our very own Bollywood. And jumping over these tunes were the Jack Jeetender, Queens Sridevi and Jayaprada and Jokers like Kader Khan and Shakti Kapoor. And believe it, there was no place for the kings and aces in this pack of cards.
The Jumping Jack and his gang dominated a whole new era. They never wanted critics’ approval. They never cared for the Censor scissors. May be, the likes of Sushma Swaraj and Asha Parekh were not awake then. In fact the scissor- lady Asha Parekh also joined his ‘Caravan’. Himmatwala, Mazaal, Mawali, Tohfa, Kanwarlal, Sansar…, whatever be the title, formula was the same. Blend together Jeetender-Sridevi-Jayaprada-Kader Khan-Shakti Kapoor, add some spicy lyrics and dialogues peppered with Bappi Lahiri type of music and weave a story—whatever you like! The cocktail sure becomes an instant hit.
Another important feature was the props used in the song sequences—giant size Matkas, Sarees, Chudis, Kanganas, Dholaks and whatever you can think of. Take a badminton racket and a cork for example. The sound produced, when one hits the other, becomes the theme track of a song in ‘Humjoli’. And tapping his feet with this hit and sound music is our Jack, crooning ‘Dhal gaya din, ho gayee raat’. What a great delight was it to watch this mixed-singles under rain-showers with Babita! No Tom-Dick-or-Harry can match this. Bravo Jack!
But except for the picturisation, ‘Humjoli was rather of a different court. The lyrics were simple and the partner was also not from his original team. In fact, it belonged to the earlier innings of the master-blaster who now specialized in this legendary stroke. He formed his complete team and jumped right into the hearts of the audience. Nobody ever dared to play on the pitch laid by the Jack and his gang.
The paradox is, all this was happening when action films were considered to dominate the whole indusry. It was the Amitabh, the angry young man’s, era. Nobody took seriously the release of the Jeetender starrers, as they were low budget, light family dramas with a high input of homour. Critics always discarded these movies as nonsense, even before their release. But the public is the ultimate critic. All his films ran on mouth publicity. The winning edge was the unusual songs and dialogues with all the more unusual treatment-- be it pelvic thrusts or just plain jumping.
Sample this. ‘Ladki nahin hai, tu ladki ka khamba hai’, Bak-bak mat kar naak tera lambaa hai’. Any intellectual type will just dismiss this as complete nonsense. But, just think of the majority cine-goers. This is their language. They can connect themselves with the song. These days, the same logic holds good for Govinda and David Dhavan. Jeetender was the hero for the masses. But can anyone become a mass hero? Almost everybody tried, but there was nothing except refusal. Just suppose that someone else is jumping to the tunes of ‘Jhonpdi mein Chaarpaai’. No one really can fit into Jeetender’s shoes. The words like ‘Taaki o taaki’ and ‘Ek aankh maaroon to’, may look easy to write, but the easiness stops there only. The road ahead! is only made for the ‘Himmatwala’. No ‘Mawali’ in this ‘Sansar’ has this ‘Mazaal’. Only ‘Kanwarlal has this ‘Tohfa’.
And when it was the time to declare his innings, this thirty-plus man imparted the secret of his success to his inheritors—Tusshar and Ekta Kapoor. Tusshar proved his inheritance with ‘Mujhe kuchh kehna hai’ and Ekta is donning the small screen with all her Saas-Bahu dramas. They know how to strike the right cord in the hearts of the viewers. And again the target is the masses. Kyonki public makes you hit, not the awards. They come in later, on their own.
FROM OMNI TO INNOVA: A LONG JOURNEY
Have you ever wondered why fleet and family cars are not in same lane despite the two segments operating on same basics of cost and efficiency factors?BARUN JHAOnce upon a time, there was Maruti Omni. The van was reigning almost unchallenged in the family car segment. To be precise, it was lack of challenge that helped the erstwhile Maruti van rule over the roost. But nothing is permanent in this fragile world and so came a battery of new wannabe rulers gunning for the top slot.
Tatas tried quite successfully to dislodge the Indo-Japanese leader with their Sumo. The new incumbent was a perfect match for its name when it came to power and looks. However, the power went awry when it was time to defend the throne. After all, a fort once invaded becomes prone to new attacks and new kings.
Since then we have seen Qualis, Tavera, Scorpio and Innova among others vying for the top slot. Among all the new entrants, Qualis has been the most successful one and has enjoyed one of the longest periods at the top. In fact, one can see this vehicle still in service despite having been aborted by its parents. Incidentally, Qualis takes its name from Quality and Service.
After the small personal cars, utility vehicle segment is one of the most cherished-for markets in India for the car manufacturers. The reasons can be varied – large families, ever-growing BPO sector etc.
Indians have been always known for large enough families that can’t be always contained within a Maruti 800 or its new brothers Alto, Santro, Swift etc. Even if it is small family with one or two children or a DINK one (Double Income No Kids), one quite often wishes company of friends or relatives when it comes to outings – be it movies, picnics or small holidays. The economic reforms have also boosted the appetite of a whole class of consumers who no more want to rely on car rental services for their group of family outings, even if it comes out to be just once or twice a year.
The evolution of BPO sector has further fueled the demand for utility vehicles that can easily accommodate 6-8 persons. After all, the basic founding principle of the sector is based on cost reduction. It is always better to go for eight persons in a single vehicle rather than carry three each in three different ones. The power factor also comes to fore when we compare a delicate small box, ala Maruti 800, and a ruff-n-tuff Qualis or Scorpio.
The power and economy factors apply to both the family and office market segments alike. These two issues have been instrumental in the evolution of the segment from Maruti Omni to Innova. Omni was certainly most economical car on the block in this segment. We can still lots of Omnis running in small cities and even in some of the metros. However, they have remained confined to the work of ferrying children to small colony schools or can be seen running as taxis. The car failed to withstand the pressure of doing four to five rounds a day and a night when it came to the call centres. The families also started ditching the van when they were presented with new and better options.
POWER PLAY TO THE TOP
Sumo came at a right time when the demand was robust for a powerful and economical utility vehicle. It was a runaway hit when launched in 1994 and was considered as the best MUV around the time. However, it lagged behind when it came to defending its position by evolving as per the demand cycle. The big car had become synonymic with the call centres in the teen-days of the sector. People used to instantly know that if it is a Sumo there must be some call-centre executives inside. However, the car was loved both as the fleet vehicles and as the family cars in its heydays. However, Sumo was soon sidelined in the personal car segment with the advent of Qualis and Tavera. Tata tried to recapture the market with its Sumo Victa version, which was presented as a true lifestyle vehicle. However, the consumers could not differentiate the new model from the old brethren.
There were common factors that worked both in favour of and against Sumo. The car was loved for being a simple and rugged workhorse in the fleet vehicle market segment. However, the very commercial-vehicle feel that it presented worked against the powerhouse when it came to family cars. Tata tried to reinvent the interiors in its Sumo Victa model with a non-commercial look and a luxury car-like feel. But, the repackaging was rather late and fell pale in comparison to new entrants on the block.
The one factor that always worked for Sumo was its economical aspect. The car presented an attractive value by offering lifestyle SUV features at the price of an MUV. This worked really when in the commercial markets, but it demands much more than price value in the family car segment.
HERE COMES THE KING
Times were changing fast and so were the tastes and requirements of the car users. Toyota read the opportunities right and came up with its ideal offering of quality and service, Qualis. The car reached the new peaks never scaled before. It was not call centres-and-Sumo any more. Qualis became the mouthpiece of the BPO sector. The car provided both comfort and power required in this segment. It was a natural hit has a fleet vehicle. However, when it came to the family car segment, the bouquets were not many, especially in the metro centres. In small centres where there were no BPO firms, the car somehow managed to hit the eyeball with the families.
Toyota presented Qualis as a multi-purpose vehicle (MPV), rather than calling it MUV or SUV. The vehicle has been a leader in the fleet segment ever since its introduction in 2000, even after having been phased out by the company. Qualis grabbed nearly 35% market share in the MPV segment in its first year itself and expanded its share to more than 40% in the second year. However, the entry of new competitors partly dented Qualis’ market share in 2003. Again the culprit was the ever-evolving family car segment. Qualis always delivered on quality, service and performance fronts, which are the most sought-after factors for fleet vehicles. However, these were again not enough to fill the appetite of families.
ALONG CAME TAVERA
The quest for better comfort levels has been one of the biggest drivers in the evolution of the car market. In addition, to families, there trends started to surface in the BPO sector as well, where firms were trying their best to provide best of benefits to their employees. This time around, General Motors (GM) read the lines correct and then came calling Chevrolet Tavera.
While launching Tavera, GM focused on reliability, fuel economy and value-for-money as key drivers for the fast-growing MUV segment in India. When it came to a stylish look, the car left Qualis miles behind. GM made Tavera longer than Qualis and other utility vehicles on the block. The concept hit the right chord with Indians, who have traditionally been fascinated with the length of a car ever since the British era.
Kewal Krishna Pahwa, who owns a chain of cyber cafes in Delhi, says, “I bought a Tavera late last year. The car is much better both in looks and handling that the Toyota Qualis.” Pahwa adds that his Tavera offers excellent fuel efficiency with a mileage of around 13-14 kmpl.
The long Tavera, along with its eight, nine and ten-seater models also worked well with fleet operators. However, the car somehow failed to generate much interest at lower end of the market segment due to its high-end pricing and maintenance costs.
Mann Singh of Delhi-based Kuldeep Tours and Travels, who operates vehicle fleets for a number of MNCs and BPO firms, says, “Tavera became an excellent proposition for out bigger clients who were willing to spend some extra money for better comforts.” Singh adds that some of their BPO clients projected their Tavera fleet as a differentiating metric in providing better comforts to their employees.
A NEW INNOVATION
Tavera was loved for its luxury car-like looks and features, but Qualis was still ruling over the roost. However, Toyota took serious note of declining market share of Qualis, though still small. The company announced a surprising departure of Qualis when it was still at peak. Toyota bounced back with a bang with Innova.
The verdict is still divided when it comes to Innova or Tavera. To add to the competition, there are others like Scorpio too vying for their piece of cake. However, ask an Innova owner and he would swear that the car is miles ahead when compared to Qualis or Tavera.
Both Qualis and Innova came from Toyota’s global IMV (Innovative Multi-Purpose Vehicle) project. While Qualis was third-generation IMV from the Toyota stable, Innova was projected as a fifth-generation IMV.
Samir Padukone, a technical-support associate with a leading BPO firm and a self-acclaimed car lover, says, “Just a plain look and Innova is ages ahead of Qualis.” Padukone says that Qualis was an ugly duckling that knew its work well. “But Innova and Tavera both score much better than Qualis both in work and looks,” he adds.
The huge success of Qualis can be mainly attributed to its fleet vehicle avatar, while Innova is more of a lifestyle vehicle. Not surprisingly, one of the most-loved features of Innova is its better air-conditioning capabilities when compared to Qualis. Toyota has tried its best to make Innova much more stylish that Qualis and Tavera. On size metrics, Innova is 4,555mm x 1,770mm x 1,755mm, while the Tavera is 4,435mm x 1,680mm x 1,765mm.
The car has been so far quite successful in attracting eyeballs in both the family and fleet segments. The one thing that is not working in favour of Innova is its higher price tag when compared to Tavera and Scorpio. However, Toyota is trying its best to retain the glory of Qualis in the fleet segment, while attracting new markets from the lifestyle segment. The company has even roped in Aamir Khan as a brand ambassador for its new Innova.
SCORPIO: A SILENT SUCCESS
Scorpio has been there since long and that also quite successfully. However, one feels to forget its existence whenever a debate erupts related to the SUV market. However, Scorpio is the only SUV that realty looks like a sports vehicle. While Qualis was more of a fleet vehicle, Innova and Tavera are predominantly lifestyle vehicles.
Navin Aggrawal, a Delhi-based advocate and a holiday-freak who has owned a Scorpio since 2001, says, “I quite often go on weekend holidays to nearby places and Scorpio has been my companion ever since I bought it.” Aggrawal says that Scorpio is the only true SUV available in its price-range and its market segment.
Aggrawal adds, “Qualis is certainly a better option if you are a fleet operator, but Scorpio is the personal utility vehicle that you would prefer to be seen inside.”
“The difference between a Scorpio and other utility vehicles is the fact that in one you are in driving seat and in others you are on driver’s seat,” says Ankur Mohanti, a senior executive with a BPO firm who is planning to buy a Scorpio. Besides looks and performance, Scorpio beats Qualis and other rivals by a wide margin also on the pricing front, Mohanti adds.
FLEET & FAMILIES - POLES APART
Fleet vehicle operators have been one of the biggest beneficiaries of the BPO boom in the country. Given the 24-hour work shifts being observed in the BPO firms, the pickup and drop facilities are necessities rather than extra benefits. This sector has been a major force behind driving the utility vehicle market to current highs. Both the fleet vehicle and family car segments are driven by broadly similar factors of economy and value-for-money. However, the two segments have not gone hands-in-hands when it comes to choice of vehicles.
Maruti Omni was love of families, but Sumo was more of a commercial vehicle. Qualis became an instant hit as a fleet vehicle and was lapped up instantly by fleet operators. However, families remained mostly away from Qualis and Sumo, notwithstanding repeated attempts by Toyota and Tata to attract the attention of families with new and better models. The fact that both Sumo and Qualis provided good resale values also helped the families to switch over to other models like Tavera. The used cars, especially Qualis, were lapped up by smaller fleet operators.
Gulshan Rai Makkar, a retired police officer and owner of a travel agency, says, “We started the agency with a fleet of used vehicles. Qualis and Sumo are the best options in the used MUV segment.” Makkar adds, besides the cost factor, Tavera and other newer models are not always preferred by the fleet operators, due to extra maintenance efforts required for these vehicles.
The travel agency operator clarifies, “Drivers keep on changing for out vehicles and moreover we can not expect these drivers to take care of the cars as their own, unlike the family cars. Therefore, maintenance is a major reason why we would still prefer a Qualis, despite the new and better facilities present in the newer models.”
The fences had been clearly drawn in the utility vehicle segment until the advent of Tavera and Innova. Omni was always a family car, Sumo was a commercial vehicle and Qualis was a true fleet vehicle. Scorpio has always remained focused on the family car segment. However, Toyota and GM are trying their best to hit two birds simultaneously with their new offerings. The problem is Qualis is still refusing to leave the front in fleet segment and there are new competitors always being churned out of the factories for the already-crowded family car market.
