Individuals choosing to rent or hire a car in India are growing by the dozen. One company looking to profit from the surge in business is Carzonrent. This fall they are increasing their fleet size to be three times what it is now. The company is also reducing its prices hoping to attract even more customers.
The chief operating officer of Carzonrent, Vikas Marwah, said “The self-drive business in India is slowly catching up with the West. So, we plan to increase our fleet size from 180 vehicles now to 500 this fiscal.”
Mawah is expecting the number of reservations to double over the next year. “From a mere 2% of our total revenue in last two years, the self-drive business could contribute to 6-7% this financial year, as more people are realizing the need for weekend breaks.
“People in India are still not well-versed with the concept or the options available for self- drive. Hence, we intend to shell out Rs 5 crore as part of our marketing expenditure this year,” he said.
Rival to Carzonrent is Sixt who is looking to add electric cars to its fleet through a partnership with Reva Electric Car Company. Managing direction of Sixt, Sanjay Kapur, said “The self-drive business in India is still at a very nascent stage. However, there is a huge potential for the business, provided companies market their products better.”
Kapur also added that “So far, the focus of the company was on the B-to-B segment, but gradually we are foraying into the retail segment as there is an increasing number of people who are now willing to pay for such services.”
Sunday, August 24, 2008
Thousands in India protest land allotment for world's cheapest car
New Delhi - Thousands of protestors in India's eastern state of West Bengal Sunday laid a siege around a factory manufacturing the world's cheapest car, the Nano, to demand return of farmland acquired for the project. Led by the state's opposition leader, Mamata Bannerjee, activist Medha Patkar and politicians, an estimated 50,000 farmers, villagers and party activists converged on the factory site in Singur, near the main city of Kolkata. Organizers said this was the biggest demonstration in India against "land seizure" for setting up an industry. They expected the number of protestors to swell to 200,000, claiming many were still reaching the site. The factory, operated by Tata, among India's biggest industrial houses, resembled a fortress with the communist-ruled state government deploying nearly 3,000 policemen to break up any violent protests. Groups of farmers in Singur said some farmland for the plant was forcibly acquired by the state government and given to the company. They are demanding that Tata return 160 of the 403 hectares allotted for the factory to the farmers
But Tata argue that the land is required to set up units for spare parts and component vendors and shifting them would make it difficult to keep the costs of the car low. Bannerjee planned the "indefinite strike" at Singur in the backdrop of a threat by Tata owner, Ratan Tata, to withdraw the project from the state if agitation continued. "I would like to request all of you to abstain from any violence. This agitation is for the cause of common people," Bannerjee said. The Trinamool Congress and its allies have set up 21 camps alongside the boundary wall of the site. "No industry can be founded on the dead bodies of the farmers," said Amar Singh, leader of the Samajwadi (Socialist) Party, who has joined the demonstration. Tata, India's leading vehicle maker, has invested over 375 million dollars in the plant at Singur. The first Nano cars, priced at nearly 2,400 dollars a unit, were scheduled to roll out in October. A prototype of the Nano, dubbed the "People's Car," was unveiled with much fanfare at the car exhibition in Delhi in January. It is a 623-cc car with a 33-horsepower multipoint fuel injection petrol engine.
But Tata argue that the land is required to set up units for spare parts and component vendors and shifting them would make it difficult to keep the costs of the car low. Bannerjee planned the "indefinite strike" at Singur in the backdrop of a threat by Tata owner, Ratan Tata, to withdraw the project from the state if agitation continued. "I would like to request all of you to abstain from any violence. This agitation is for the cause of common people," Bannerjee said. The Trinamool Congress and its allies have set up 21 camps alongside the boundary wall of the site. "No industry can be founded on the dead bodies of the farmers," said Amar Singh, leader of the Samajwadi (Socialist) Party, who has joined the demonstration. Tata, India's leading vehicle maker, has invested over 375 million dollars in the plant at Singur. The first Nano cars, priced at nearly 2,400 dollars a unit, were scheduled to roll out in October. A prototype of the Nano, dubbed the "People's Car," was unveiled with much fanfare at the car exhibition in Delhi in January. It is a 623-cc car with a 33-horsepower multipoint fuel injection petrol engine.
Volvo plans to launch new models in India
CHANDIGARH: Volvo Car India (VCI) on Sunday said it plans to strengthen its dealer network and sell 400-500 in the country by the end of this fiscal and launch 2-3 new models in future.
"In addition to our dealers in Delhi, Mumbai and Chandigarh, we will soon have our dealers in Hyderabad, Bangalore, Cochin and Pune. Our target is to sell 400-500 cars by the end of this fiscal," the VCI's Managing Director Paul de Voijs told reporters here on the sidelines of a function, in which the company gifted a Rs 44-lakh sedan to Olympic gold medalist Abhinav Bindra.
Volvo, which has 10 cars in its portfolio at the moment, is also looking at launching 2-3 new models in future after testing and seeing the market response in India, where it has so far sold 100 cars after its launch less than a year back.
"In addition to our dealers in Delhi, Mumbai and Chandigarh, we will soon have our dealers in Hyderabad, Bangalore, Cochin and Pune. Our target is to sell 400-500 cars by the end of this fiscal," the VCI's Managing Director Paul de Voijs told reporters here on the sidelines of a function, in which the company gifted a Rs 44-lakh sedan to Olympic gold medalist Abhinav Bindra.
Volvo, which has 10 cars in its portfolio at the moment, is also looking at launching 2-3 new models in future after testing and seeing the market response in India, where it has so far sold 100 cars after its launch less than a year back.
Friday, August 15, 2008
Ford India launches new sports car, Fiesta S
MD of Ford India Michael Bonehan poses next to the 'New ford Fiesta' car during its launch in New Delhi Thursday
New Delhi, June 19: US automaker Ford launched its new sports variant of the mid-sized sedan in New Delhi Thursday, the Fiesta S that clocks zero to 100 km in 11 seconds.
They also launched an upgraded SXI variant of the Fiesta featuring a new front grille and headlamps.
The Fiesta SXI will be priced at Rs.7 lakh and Rs.8,14,000 for the petrol and the diesel variants respectively, in Delhi. The Fiesta S will come with a price tag of Rs.7,15,000.
Michael Boneham, president and managing director, Ford India, told media at the launch of the company's new car that the hike in excise had been incorporated in the price of the car.
"To be frank with you the excise hike has been corporated into the pricing we had to do, and our view is that it is consistent with whatever is going on from across the market with all our competitors, and we follow that position," said Michael Boneham.
The government had recently put an additional specific duty of up to Rs.20,000 a car, over and above the regular excise duty of 24 per cent on all large cars, in a bid to dampen the growth of fuel-guzzling vehicles. The increase in car prices comes even as fears of a further price escalation are doing the rounds following the jump in steel prices.
Boneham added that the mid-sized sedan, since its launch in the country two-and-a-half years ago, had sold more than 65,000 units.
New Delhi, June 19: US automaker Ford launched its new sports variant of the mid-sized sedan in New Delhi Thursday, the Fiesta S that clocks zero to 100 km in 11 seconds.
They also launched an upgraded SXI variant of the Fiesta featuring a new front grille and headlamps.
The Fiesta SXI will be priced at Rs.7 lakh and Rs.8,14,000 for the petrol and the diesel variants respectively, in Delhi. The Fiesta S will come with a price tag of Rs.7,15,000.
Michael Boneham, president and managing director, Ford India, told media at the launch of the company's new car that the hike in excise had been incorporated in the price of the car.
"To be frank with you the excise hike has been corporated into the pricing we had to do, and our view is that it is consistent with whatever is going on from across the market with all our competitors, and we follow that position," said Michael Boneham.
The government had recently put an additional specific duty of up to Rs.20,000 a car, over and above the regular excise duty of 24 per cent on all large cars, in a bid to dampen the growth of fuel-guzzling vehicles. The increase in car prices comes even as fears of a further price escalation are doing the rounds following the jump in steel prices.
Boneham added that the mid-sized sedan, since its launch in the country two-and-a-half years ago, had sold more than 65,000 units.
Fabia precedes Skoda’s other small ca
The newly launched Skoda Fabia small car has been working wonders for the Czech car manufacturer. The Fabia sold out in high numbers since it was introduced to India in January this year. Skoda posted an 81% rise in sales during the month of April.
Here’s news that will surely bring a cheer to all Skoda fans. Skoda does not seem satisfied with its deeds yet and is already working on a new small car. The new car will first be launched in India and later taken to European markets. It’s not expected anytime soon though and is likely to debut in 2010.
Here’s news that will surely bring a cheer to all Skoda fans. Skoda does not seem satisfied with its deeds yet and is already working on a new small car. The new car will first be launched in India and later taken to European markets. It’s not expected anytime soon though and is likely to debut in 2010.
Thursday, August 14, 2008
Honda to roll out new City in September
Honda’s largest selling car till date in India, City’s third new avatar will have a newly-designed and shaped G-CON structure sporting a toned new line-up of powertrain. As far as the new features are concerned, Honda is likely to introduce paddle shift gear option (where you don’t need to use the clutch pedal) on steering —a first in the segment—multi-airbags, integrated music system with steering mounted controls, anti-lock brake system (ABS), temperature control and electronically adjustable front seats.
Honda is looking at standardising such advanced features on all products. “We are looking at standardising the G-CON body, ABS, I-Vtec engines and few other technical features in all our future cars. It’s part our commitment to provide world-class products to the Indian market,” Honda Siel Cars India president and CEO Masahiro Takedagawa had told ET at the launch of 8th generation Accord in May this year.
When contacted by ET, the Honda spokesperson clarified that there are no such plans. “The so-called news of a new City is mere media speculation and we would not like to comment on it. The current Honda City is the only model available globally, and is doing very well in the Indian market. The Honda City ZX continues to maintain its leadership position in the premium sedan segment, even in the current slowdown,” the spokesperson said.
Maruti rides on old cars to push new sales
At a time when car sales have started moving southward for the first time in nearly three years, country's largest carmaker Maruti Suzuki is turning to 15-20-year-old cars to push new ones through exchange.
The company has tied up with scrap dealers across India to dispose of old cars exchanged for new cars and is welcoming customers to come with old cars of any make for exchange.
“We have tied up with 15-20 people dealing in scraps in each of the cities that we are present,'' Maruti Suzuki India Chief General Manager (Sales Support), Mr Ravi Bhatia told PTI.
The company has started giving offers to customers worth up to Rs 40,000 while purchasing a new car through exchange, while inviting bids from scrap dealers at the same time for the old cars.
He said the move has helped the company in pushing sales significantly through its pre-owned car business 'TrueValue'.
“Ever since we have started accepting 15-20 year old cars, exchange has gone up from 12 per cent to 20 per cent and it has helped an entry level product like Alto to become a replacement model,'' Mr Bhatia said.
Earlier Alto has been considered to be the car for the first time buyer. The exchange offer has helped about 12 per cent of total sale of new Altos coming from it.
Initially, TrueValue accepted only Maruti cars, which were not older than 10 years and ran less than one lakh kms. Recently, it has extended the scheme to all cars of any manufacturer and of any age.
“When we did a market study, we saw a latent potential where people wanted to exchange their old cars but did not know where to go and was not getting good value from scrap dealers as wellSaturday, August 9, 2008
Indian Electric Car: A First, But Not Yet A Winne
As one of India's key technology hubs, the city of Bangalore boasts its share of firsts: the first Indian city to get electricity and the first to see a car. It is also the first and only Indian city to manufacture an electric car. The problem is, not many people are buying them. But industry analysts predict that situation is bound to change, especially with surging oil prices. Raymond Thibodeaux reports from Bangalore in southern India.
The horn is good and loud, an essential asset when driving in India.
Mahesh says one of the first things people notice during their test drive of a Reva is its rate of acceleration. It is surprisingly quick for such a small car. The next thing they notice is its dent-free body, unusual for cars in India. Mahesh happily demonstrates the car's dent-proof exterior punching it with his fist.
The Reva Electric Car Company, a Bangalore-based carmaker, has been manufacturing electric cars for seven years. Their latest models range in price from $8,000 to $12,000. They go about 80 kilometers on one charge, slightly less if one runs the air conditioner. They require very little maintenance, mainly because there is no engine.
No engine means no exhaust. That is what prompted many Indian states to offer huge tax incentives for those buying electric cars, especially in the bigger, smog-choked cities across the country.
"It is a very positive step, with pollution being what it is today and the concerns we have, with over 50 percent of our pollution coming from the transportation industry," said Chetan Maini, Reva's deputy chairman and chief technology officer. "If we really want to change that, we have really got to change it using electric vehicles."
So far, Reva has sold about three-thousand electric cars. About half of those sales have been in Europe. Sales in India have been somewhat sluggish, even in forward-looking cities like Bangalore, one of India's key technology hubs.
Part of the problem is that electricity here - as in much of India - is unreliable, with frequent scheduled and unscheduled blackouts.
Maini says the Reva is designed for city driving, basically short distance trips like running errands or shopping. He says the Reva makes an ideal second car. That is a big problem in this fast-developing country of 1.1 billion people, most of whom make less than $2 a day. Most Indians still cannot afford their first car.
But Maini says that as India's economy thrives and fuel prices rise, more and more Indians are considering electric cars. In the past few months, he said Reva has seen a robust increase in sales.
"People take some time to understand new technologies, especially when you're the only player," he said. "People are waiting to see how this industry matures. But I think the industry's changing and the market conditions are changing. It's slowly moved into that area where people are saying, 'Hmm, let me just consider an electric car.' And that already is very big step."
For now, Reva is gearing up for potentially stiff competition from Tata Motors, another Indian carmaker set to launch its first electric car next year. Tata made headlines earlier this year as it rolled out the world's cheapest car, the Nano, which, at a quarter of the price of the Reva is within the reach of India's growing middle class.
Some car analysts speculate that Tata might figure out a way to mass-produce an electric car that, like the Nano, won't put too big a dent in one's wallet.
The horn is good and loud, an essential asset when driving in India.
Mahesh says one of the first things people notice during their test drive of a Reva is its rate of acceleration. It is surprisingly quick for such a small car. The next thing they notice is its dent-free body, unusual for cars in India. Mahesh happily demonstrates the car's dent-proof exterior punching it with his fist.
![[insert caption here]](http://www.voanews.com/english/images/thibodeaux_india_electric_car_08aug08_190.jpg "[insert caption here]") |
No engine means no exhaust. That is what prompted many Indian states to offer huge tax incentives for those buying electric cars, especially in the bigger, smog-choked cities across the country.
"It is a very positive step, with pollution being what it is today and the concerns we have, with over 50 percent of our pollution coming from the transportation industry," said Chetan Maini, Reva's deputy chairman and chief technology officer. "If we really want to change that, we have really got to change it using electric vehicles."
So far, Reva has sold about three-thousand electric cars. About half of those sales have been in Europe. Sales in India have been somewhat sluggish, even in forward-looking cities like Bangalore, one of India's key technology hubs.
Part of the problem is that electricity here - as in much of India - is unreliable, with frequent scheduled and unscheduled blackouts.
Maini says the Reva is designed for city driving, basically short distance trips like running errands or shopping. He says the Reva makes an ideal second car. That is a big problem in this fast-developing country of 1.1 billion people, most of whom make less than $2 a day. Most Indians still cannot afford their first car.
But Maini says that as India's economy thrives and fuel prices rise, more and more Indians are considering electric cars. In the past few months, he said Reva has seen a robust increase in sales.
"People take some time to understand new technologies, especially when you're the only player," he said. "People are waiting to see how this industry matures. But I think the industry's changing and the market conditions are changing. It's slowly moved into that area where people are saying, 'Hmm, let me just consider an electric car.' And that already is very big step."
For now, Reva is gearing up for potentially stiff competition from Tata Motors, another Indian carmaker set to launch its first electric car next year. Tata made headlines earlier this year as it rolled out the world's cheapest car, the Nano, which, at a quarter of the price of the Reva is within the reach of India's growing middle class.
Some car analysts speculate that Tata might figure out a way to mass-produce an electric car that, like the Nano, won't put too big a dent in one's wallet.
Tata invested Rs.1700 Crore to manufacture Nano
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Thursday, August 7, 2008
Car that changed the world - Tin Lizzie turns 100
When the Ford Model T went into production in 1908, it marked the beginning of an era when motoring became affordable to the masses and an end to the horse and cart age.
Thousands of enthusiasts the world over are this week celebrating in Richmond, Indiana, the centenary of the car affectionately known as 'Tin Lizzie'.
It is just one of several events leading up to the Oct 1 anniversary when the first Model T drove off the assembly line.
The Model T was a dream come true for Henry Ford who wanted to make transportation by motor car affordable by introducing assembly line production.
While the first Model-T sold for less than $1,000 at a time when other cars cost between $2,000 and $3,000, the price fell to about $300 in the early 1920s as production methods became more refined and cheaper.
It was sold only in black, allegedly because the colour dried faster which could speed up production.
The Model T has become virtually synonymous with the roaring 1920s featuring in many Laurel and Hardy movies. Ford extended production to European plants in Britain and Germany with the Model T becoming the first world motor car and sold 15 million units by 1927.
The 15 kW/20 hp engine with a top speed of up to 70 km/h had to be started with a hand crank. The throttle was controlled by a lever beside the steering wheel.
The petrol tank was fitted under the front seat and petrol had to flow to the carburettor by force of gravity.
It is ironic that Ford is celebrating the centenary of its most successful vehicle at a time when the company itself is in a deep crisis. During the last two years, it has lost more than $15.3 billion and failed to turn a profit since 2005.
Although Ford's deputy president Mark Fields says the lessons learned from the Model T still apply today 'as part of our DNA and our way of doing business', the company has lost huge shares to the Japanese manufacturers on its home US market where buyers are shunning fuel-guzzling Ford pick-up trucks and SUVs.
Now the company is trying to return to its Model T roots by adjusting to smaller and fuel efficient vehicles. At the London Motor Show, it presented a super fuel-efficient Ford Fiesta with a fuel-consumption of only 3.7 litres of diesel per 100 km.
Apart from the new Fiesta, Ford is planning to bring at least six small European-designed models onto the US market over the next three years.
The world's ten worst cars revealed
The Austin Allegro has been described by most Brits as the world's 'worst car ever'
According to a survey conducted by iMotormag, nearly one in four Brits picked the Allegro as the worst car, even though production of it ended 25 years ago.
The world's ten worst cars are as follows:
1.Austin Allegro
2.Morris Ital
3.Talbot Sunbeam
4.Austin Princess
5.Hillman Imp
6.Rover 200
7.Triumph Acclaim
8.Rover 800
9.Morris 1800
10. Triumph TR7. (ANI)
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