06 July, 2008, Mythili Bhusnurmath; economictimes.indiatimes.com:
Hum do, hummer do? In case you’re wondering, no, that’s not a typo! It’s just a wacky Sunday morning take on how the Tatas or the Mahindras could tweak the ubiquitous hum do, hamare do family planning slogan if they buy Hummer, General Motors’ (GM) outsized military vehicle adapted for civilian use!
Sadly even as the West’s love affair with big cars, the bigger the better, seems to be waning, ours seems to be gathering steam. Or so it would seem going by news reports of the dramatic surge in sale of large cars in India even as the West is fast ending its obsession with them.
Why else would GM think the Tatas (according to unconfirmed reports) or the Mahindras might be interested in a model that is finding few buyers even in the developed world? The Hummer is notoriously fuel-inefficient — it gives only 14 miles a gallon — while its size of 16 feet long and 7 feet wide, wider than most Indian roads, makes it completely impractical for Indian conditions.
One reason, of course, is that Tata Motors have just bought two iconic brands, Jaguar and Land Rover and might have appetite for more. Another is that changes in consumer behaviour in response to spiralling oil prices and greater concern for the environment, so much a part of the emerging consumer landscape in the West, are yet to be seen in India. Spiralling prices of petrol — up to $4 a gallon — are ‘changing consumer behaviour in the US and rapidly,’ says GM’s CEO Rick Wagoner.
But there’s little sign of anything similar happening here. On the contrary! Not only are large cars widely regarded as a status symbol — owner’s pride, neighbour’s envy, to borrow the famous Onida TV ad — concern for the environment is noticeably absent.
The net result is that even as car sales, especially of big cars, has fallen in the US, we are seeing exactly the opposite here. In the US sales of SUVs and pick ups sales slumped to 22.3% of total retail sales in May 08, down from 37% in late 2006 while oil demand is expected to shrink by 330,000 barrels a day as the US obsession with driving fades. The number of miles driven in March 2008 fell for first time since 1979.
The US is not alone. In the UK registrations of 4x4 vehicles tumbled more than 18% in May this year, suggesting Europeans are joining the headlong scramble out of large gas-guzzlers seen in the US. Meanwhile, registrations of the smallest, “mini” segment cars were up 120% year-on-year in May. Daimler’s diminutive Smart cars were one of Britain’s fastest-growing brands last month, with sales up 147% year-on-year.
The main problem is most of us as individuals are not concerned with larger societal needs. There is also no social opprobrium attached to those who pollute. Rather there is admiration for those with big cars. The tragedy of the commons is never as fully played out as in the context of the auto industry.
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