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In the US, the Ford Explorer was the first SUV launched in the mid-Eighties. Cheap gas prices and the Americans' obsession with being perceived as the king-of-the-road peering down at lesser mortals in more humble autos soon propelled a niche market into market segment on its own. General Motors and Chrysler Corp also soon realised the huge profits that Ford Motor Company was making by selling SUVs and also jumped onto the bandwagon. By the turn of the century, almost half the cars sold in the US were SUVs. However, in 2000, a rash of rollovers of Ford Explorers equipped with Firestone brand tyres, resulted in the deaths of hundreds of motorists in the US. Public outcry and federal investigations resulted in Ford having to recall and retrofit existing Ford Explorers with Vehicle Stability Systems. This caused a financial burden on the company and also dented its reputation. All SUVs manufactured from 2001 onwards were fitted with VSS as standard equipment in the US. From 2001 onwards until the commencement of the turmoil in Iraq and the Middle East, sales of SUVs in the US surged. With the onset of the war in Iraq and spiralling of gas prices, many Americans abandoned their SUVs for more fuel efficient cars mainly those from Japanese auto companies. The cover page of the Aug. '07 issue of two respected Indian auto periodicals shows the Mitsubishi Montero, Suzuki Grand Vitara, Honda CRV and Ford Explorer bound for India soon. Although these remain in the niche segment at the moment, is it a part of the manufacturers' larger game plans ? Or will they continue to remain in the niche segment cross-subsidizing their lower priced sisters in a lower category where margins are wafer-thin and continuously under downward pressure ? Remember the Grand Vitara is priced around Rs. 4.0 lakhs lower than its preceding model. Only time will tell...
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