Top 10 Fuel Efficient Cars In India

Fuel efficient hatchbacks and sedans are not the joyless penalty boxes they once were; the vehicles on our list of the 10 most frugal 4-doors in the land are proof. In this remarkably diverse lineup, you will find Indian refinement in the form of Maruti Suzuki Alto; engaging performance in the form of Tata Nano and cosseting luxury via Chevrolet Cruze. There are also Maruti Suzuki Estilo, Hyundai i10 and Maruti Suzuki Ritz, which are tailor-made for shoppers on a budget.

When you plan to purchase a vehicle, one of the most important factors to consider is its fuel economy. And this has become more important with the increasing fuel prices. Right from the fuel economy to luxury, there are several factors, which influence the fuel economy of a vehicle. Even as world moves towards more fuel efficient automobile technologies, it becomes necessary to discuss the state of fuel economy in India. Our rankings are determined using the kilometers per litre and the ratings for every vehicle below is expressed in kmpl as highway/city ratio.

Tata Nano – 23.65 kmpl

Tata Nano is a city vehicle designed and engineered by Tata Motors. Manufactured and marketed in India, the Nano is the cheapest vehicle in the world today. Before it went on sale, price of Rs. 1 lakh was widely touted. Since its introduction in 2009, the price has increased. Nonetheless, it remains the reasonably priced 4-door passenger car in the country.

Besides being cheapest vehicle in India, the Tata Nano is propelled by a 624cc 2-cylinder engine that offers the fuel economy of 23.65 kilometers per litre. The engine is mated to four-speed manual gearbox with rear wheel drive system. The small wonder from India’s largest automaker has capitalized on the fuel economy factor like none other.

Maruti Suzuki A-Star – 19.6 kmpl

Maruti Suzuki A-Star has been developed and designed to suit European car norms and is a true blue export car. As per the rating, it has been categorized under A-Segment vehicle. Amongst many features of A-Star which comply with European market norms include: New 998cc KB-Series powerplant that’s Euro 5-compliant with CO2 emissions. Its engine cranks out 67 horsepower with 90 newton meters of torque. The rated fuel economy of A-Star is 19.6 kmpl.

Maruti Suzuki A-Star has a bold design language with large wheel arches and strong lines. It is to be made in 200 trims and will be exported to 150 nations across Middle East, Europe, Asia, Latin America, Africa and Australia, under Suzuki Celerio and Suzuki Alto name. Nissan is also planning to market the vehicle under the name, Nissan Pixo in African and Middle East markets. When it comes to fuel efficiency, you can totally trust Maruti Suzuki. This stylish hatchback has got amazing looks with striking eye-shaped extended frog headlamps, beautiful front foglights and sweeping nose on hood. It is bestowed with enchanting looks, credit of which goes to body colored bumpers, door handles and rear view mirrors.

Chevrolet Beat – 18.61 kmpl

The irresistible Chevrolet Beat offers a well-equipped cabin, an expressive exterior design and some really smart features; a fusion cut out to add charisma to your personality and oomph to your ride. Phenomenally spacious inside and compact on the outside, the Beat has been designed and engineered to make sure you and your loved ones enjoy a comfortable and luxurious ride. Thanks to its clever design details and high build quality, it is amongst the most comfortable and safest vehicles in its segment.

The Chevrolet Beat comes equipped to run on 3 fuels – petrol, LPG and diesel, depending on the trim level you select and is extremely versatile. The Diesel is powered by a dynamic and powerful SMARTECH 1.0 XSDE Engine, which is good for producing 58.5PS of power with 150 newton meters of torque. It offers the fuel economy of 25.44 kmpl, making it one of the most fuel efficient diesel hatchbacks in the country. The Beat LPG/Petrol features a state-of-the-art SMARTECH II powerplant that delivers impressive fuel economy of 18.61 kmpl and reduces driveline noise, vibration and emissions. On the other hand, the LPG version not only cuts your fuel bills by up to 50 percent, but also helps reduce greenhouse gases and air pollution and greenhouse gases.

Chevrolet Spark – 18 kmpl

Chevrolet Spark fuses a well-designed cabin, many smart features and expressive exterior design. Small on the outside, it has a spacious interior, which provides comfortable seating for up to 5 passengers. Thanks to its clever design details and high build-quality, the Spark is among the most comfortable, practical and safest vehicle in its category. The aerodynamic design of Spark enhances fuel efficiency and makes it a modern looking and sleek ride, making you stand out wherever you go. Enjoy dazzlingly clear visibility at night with these uniquely designed and attractive Quotation Style headlights that provide a distinctive identity to the Spark.

Chevrolet Spark is your ideal companion on the road. Its noiseless and groundbreaking SMARTECH Engine offers smooth drives even on less than perfect roads. Its superior technology and remarkable fuel efficiency ensure an unparalleled driving experience, while the sophisticated SMARTECH engine maximizes torque and power at lower speeds, making even a congested city drive as smooth as a long drive on the cruiseway. SMARTECH Engine is a Smart Technology Engine designed and engineered with plenty of new-age innovations such as DDLI (Dual Distributor Less Ignition System), Sequential MPFI, Advanced Optical Sensor and MTIS (Motorized Throttle Intake System). Consequently, the engine operation is noiseless, smooth, powerful, fuel efficient, maintenance free and reliable.

Fuel expenses will be the last thing on your mind when you are on the road with your near and dear ones. Its powerful and smooth engine provides you with the fuel economy of 18 kilometers per litre. So go ahead experience a smooth and hassle-free drive.

Chevrolet Cruze MT – 18.27 kmpl

If you thought absolute power is unachievable, step inside the all-new Chevrolet Cruze and think again. The beveled hood of this mean and mighty machine hosts the most powerful powerplant in its segment with excellent refinement levels. The powerful VCDi 2.0 litre engine is good for churning out 166 PS of undulated power with 380 newton meters of torque.

Add to this Corvette inspired dual cockpit; aggressive styling, a perfect combination of luxury and performance and superb driving characteristics, and you have the most desirable sedan in India, the Chevrolet Cruze. With its confident, bold and wide stance, it is designed to be in a league of its own. The advanced Engine Management System combined with high performance Variable Geometry Turbo-charged CRDI (Common Rail Direct Injection) system delivers the fuel economy of 18.27 kilometers per litre and ensures awe-inspiring performance. Rev it and the Cruze is ready to growl. Try it!

Chiseled looks and dynamic aggression apart, the Chevrolet Cruze is also a thinking man’s vehicle, delivering an optimal balance between performance and power. It is developed and designed for those who need a vehicle to be nimble and flexible around town, yet capable of unleashing unadulterated power on the cruiseway. With the most refined and powerful powerplant in its segment and driver focused controls, it is simply a pleasure to maneuver this beast around. A flawless combination of spirited performance, refinement and muscular appeal makes the Chevrolet Cruze a dream machine, which is simply unmatched.

Maruti Suzuki Estilo – 19 kmpl

We live in a world where our needs for convenience and comfort are ever evolving. In an era where time comes at a premium, we all choose to take the easy way out. Today, we go shopping online; send instant messages and get food home delivered. We yearn for simplicity in everything we do and even in the car we drive. It is this unyielding need for ease which makes the Maruti Suzuki Estilo a perfect vehicle for you. It is easy on the eyes, easy to drive, easy on the pocket with ease of mind, ease of choice and ease and comfort.

With the entry of so many compact vehicles in India, one would think Maruti Suzuki Estilo won’t make it to our list of top 10 fuel efficient vehicles. But Estilo, with a fuel economy of 19 kilometers per litre, gives a tough competition to its rivals and makes it to our list at the 6^th position. Motivation for the Estilo comes from the same K-Series 1.0litre three-cylinder powerplant, like the one found in A-Star that generates 67 horsepower at 6200 rpm. It is teamed up with five-speed manual gearbox that improves its fuel efficiency.

Now, stop worrying about troubling your pocket for fuel bills and car ownership. With an astounding fuel economy of 19kmpl you can now go on long drives without worrying about big fuel bills.

Maruti Suzuki Alto – 18.1 kmpl

Maruti Suzuki Alto’s slick yet harmonious design packs quite a punch with the distinctive Wavefront design. The prominent wheel arch, the wider lip and the smooth long curves adds to the side stance. All this makes the Alto a design wonder. The interior has a refined feel and look. The overall result is superior interior quality with a comfortable environment and more space. Also you get to chose from an option of grey and brown interiors. Interior features are as follows:

Intelligently packaged slim doors for maximizing interior passenger comfort and space

More comfort with additional shoulder and head room in front together with extra legroom at the rear

Maruti Suzuki Alto offers supreme performance and innovative design. Propelled by a powerful three-cylinder 796cc powerplant, it generates 46 horsepower at 6200 rpm. Maruti Suzuki Alto with the fuel economy of 18.1 kilometers per litre falls at the 7^th position on our list, just behind Maruti Suzuki Estilo.

Hyundai i10 1.2 litre – 18.06 kmpl

Underneath the stylish looks of Hyundai i10 lie clever technologies which provide real comfort with superb economy – allowing it to take both the open road in its stride and urban driving. The newly designed clear headlamp clusters not only look good, but also enhance both your on-road visibility and your night vision, adding elegant extra safety. These repeaters make your intention to turn clear, even if other road users cannot see the rear or front lights. Electric heated exterior mirrors make life safer in bad weather situations. For additional stylishness they are offered in body color. The black dash looks stylish and feels good as does the contrast stitched, black, base trim of doors and seats. At last, if you love the classic feel and look of leather, but don’t want animals killed to offer it, beige and black leather look interiors are available.

Hyundai i10 features a Kappa, 1.2 litre 4-cylinder powerplant with DOHC (double overhead camshaft) and breathes through 16 valves. It cranks out 79 horsepower @ 5200rpm and delivers 18.06 kmpl, securing a place at the 8^th position.

Hyundai i10 1.1 litre – 17.83 kmpl

Hyundai i10 1.1-litre boasts Inline-four iRDE (Intelligent Responsive Drive Engine), which is good for churning out 66 horsepower @ 5500 rpm. The aluminum Kappa engine, the first in its segment offers low NVH (noise, vibration and harshness) levels with low emission output. The intelligent responsive technology of the company enhances mileage (17.83 kilometers per litre) and performance of the car.

Maruti Suzuki Ritz BS IV – 17.7 kmpl

Maruti Suzuki Ritz BS IV is thoughtfully designed for enhancing your driving comfort. Distinctive Tall Boy Design and many more enhanced and new features ensure that you feel the joy inside while driving it. It comes with Automatic Transmission that make you experience the joy of comfort whenever you sit inside it. K-series VVT powered powerplant offers a perfect combination of high performance, great fuel economy and smooth drive.

Last but not the least, the Maruti Suzuki Ritz BS IV makes it to our list at the 10^th position. It delivers the fuel economy of 17.7 kilometers per litre and gets a BS IV compliant K12M petrol powerplant that generates 85 horsepower. The powerplant uses shortened piston skirts, raisin coatings and plastic parts for enhanced performance. It also gets high-tech spark plugs, high grade engine oil, Dual Overhead Camshaft and plastic intake manifold.

 

Hedging And Its Use For Mitigating Risk

Hedging is often considered an advanced investing strategy, but the principles of hedging are fairly simple. With the accompanying criticism and popularity of hedge funds, the practice of hedging is becoming more widespread.

A hedge is an investment position intended to counterbalance potential gains/losses, which might be incurred by a companion investment. In simple terms, hedging is used for reducing any substantial gains/losses suffered by an organization or an individual. It can be constructed from different kinds of financial instruments such as stocks, options, exchange traded funds, swaps, forward contracts, insurance and many kinds of futures contracts and derivative and over-the-counter products. Public futures contracts were founded in 19^th century to enable efficient, standardized and transparent hedging of agro commodity prices; since then they have expanded to include futures contracts to hedge values of interest rate fluctuations, energy, foreign currency and precious metals.

Hedging is basically a practice of taking position in one market to balance and offset against the risk adopted by assuming a position in contrary or opposing investment or market. Hedging is often considered to be a sophisticated investing strategy; however the principles of hedging are fairly simple. With accompanying criticism and popularity of hedge funds, the hedging practice is becoming more widespread. In spite of this, it isn’t yet widely understood. Hedging basically means controlling or reducing risk and this is done by taking position in futures market, which is opposite to one in cash market (physical market) with the aim of limiting or reducing risks associated with price changes.

Hedging is 2-step process. A loss or gain in physical position because of price level changes will be countered by changes in futures position value. For example, the rice grower can market rice futures for protecting the value of his crop before investing. If the price of the rice falls, the loss in physical market position will be countered by gain in futures position. In this kind of transaction, the hedger tries to fix the price at a certain level with the aim of ensuring certainty in the revenue of sale and cost of production. Futures market has substantial participation by speculators who take positions based on price movement. There are also arbitrageurs who use this market for pocketing profits, whenever there are inefficiencies in the prices.

Example – Automotive Industry

An automobile manufacturing company buys huge quantities of steel as raw material for the production of vehicles. It enters into contractual agreement for exporting automobiles 3 months, therefore to dealers in East European Market. This assumes that contractual obligation has been fixed at the time of signing contractual agreement for exports. The automobile manufacturing company is now exposed to risk in the form of rising steel prices. In order to hedge against price risk, the automaker can purchase steel futures contracts that would mature 3 months. In case of decreasing and increasing steel prices, the automaker is protected.

Understanding the meaning of long/buying hedge

A long hedge is also known as buying hedge. Long hedge means purchasing futures contract for hedging cash position. Fabricators, consumers, dealers etc who have taken or planning to take exposure in cash market and want to lock-in prices, use the long hedge strategy.

Advantages of Long Hedge Strategy:

To protect uncovered forward sale of finished products

To replace inventory at lower prevailing cost

The aim of entering into long hedge is to protect the purchaser against price increase of commodity in spot market, which has already been marketed at specific price; however not yet purchased. It’s quite common amongst importers and exporters for selling commodities at an agreed price for forward delivery. Long hedgers are processors and traders who have made formal commitments for delivering a specified quantity of processed goods or raw material at price agreed upon, who don’t have raw material stocks essential for fulfilling their forward commitment and at later date.

Understanding the meaning of short/selling hedge

Short hedge is also known as selling hedge. Short hedge means selling futures contract to hedge.

Advantages of Short Hedge Strategy:

To protect inventory not covered by forward sales

To cover finished products price

To cover prices of estimated production of finished products

Selling hedgers are processors and merchants who simultaneously market an equivalent amount or less in futures market and who need inventories of commodity in spot market. In this case, hedgers are said to be short in their futures transactions and long in spot transactions.

Understanding the basis

Typically, in the business of purchasing and selling a commodity, the spot price is different from the price quoted in futures market. Futures price is a spot price adjusted for costs including handling, freight, quality and storage, together with impact of demand and supply factors. The price difference between futures and spot keeps on changing frequently. This price difference is called the basis and risk arising out of the difference is called basis risk. A condition in which the difference between futures and spot prices reduces is called narrowing of basis. Nonetheless, if the difference between futures and spot prices increases, it’s defined as widening of basis.

How Do Investors Hedge?

Generally, hedging techniques involve the use of complex financial instruments called derivatives, the 2 most common of which are futures and options. We are not going to get into fundamentals of explaining how these instruments work, but for now just remember that with these instruments you can develop trading plans where a loss in one investment is offset by gain in derivative.