New Superb previewed at the Autocar Performance show

The all-new Skoda Superb will be in Indian showrooms early next year. Showgoers at the Autocar Performance Show were treated to an exclusive preview of the car.

The new Skoda Superb was unveiled at the Autocar Performance Show but will reach showrooms only in February 2009.

Prices will start at Rs 20 lakh for the base petrol model, going up to Rs 25 lakh for the full-fat petrol.

Thomas Kuehl, Board Member of Skoda India, said: “We will bring an exciting range of engines: a 1.8-litre, 160bhp TSI petrol, a 2.0-litre diesel with 140bhp, and a new 3.6-litre V6 petrol with 260bhp.”
The V6 however, will be launched a few months after the 1.8 petrol and 2.0-litre diesel versions.

Its trump card is the limo-like space that few can hope to match. The Superb will prove to be the biggest threat to Group stable-mate the Volkswagen Passat.

Maruti launches new car, seeks to increase exports

ew Delhi, Nov 19 (IANS) Auto major Maruti Suzuki Tuesday launched a new model targeted at the mid-priced segment, and said it hoped to export it to over 150 countries.

Priced in the Rs.347,000-Rs.412,000 range, the car - called A-star - will be made in over 200 variants and is touted to give a mileage of 19.59 km per litre of petrol. A-star is Maruti Suzuki's eighth vehicle launched in a little over three years.

'A-star will be exported mainly to European markets and we expect it to account for a major part of our total exports,' company chairman R.C. Bhargava said at the vehicle's launch.

The company exported around 50,000 cars last year and expects to export more this year.

Incidentally, A-star has been designed keeping the European market in mind, and will be rolled out of the company's facility at Manesar near Delhi

India Cranks Out Small Cars for Export

MUMBAI -- India is becoming a small-car manufacturing hub for some of the world's biggest auto makers.
Annual passenger-car exports from India have jumped five-fold in the past five years. Industry analysts predict exports over the next three years will surge nearly 300% to more than half-a-million vehicles a year.
India's homegrown auto innovation -- Tata Motor Ltd.'s $2,500 Nano minicar -- has attracted global attention, but the export wave consists mainly of small cars built in local plants by Japanese and South Korean car makers, including Suzuki Motor Corp., Hyundai Motor Co. and Nissan Motor Co.

India's small e-car to hit the road soon

RAJKOT: Makers of electric scooters and bikes under the Oreva brand, Ajanta group of India is all set to roll out its first e-car. First it was India's Tata motors putting on anvil the world's cheapest car called 'Nano' which has hogged headlines for all the reasons, including 100,000 Rupees price tag and the agitation forcing it out of Singur of West Bengal. Now, it is Oreva, the 'green' car becoming talk of Rajkot, The Tata Motors decision to put up 'Nano' car plant in Sanand village of the state coincides with Oreva manufacturing its cars from Morbi, home to its e-bikes. Both the cars have their plants in Gujarat. Ajanta will be rolling out the car from the same unit as had produced e bikes. Without divulging details about the price of the car, Rakesh Nathwani, National Marketing Head of Oreva Group said that the car would be able to run up to 200-250 kilometers in one time charge. "We don't have any competition with 'Nano'. This is our future product as we have seen electric bikes as out future products. We see electric cars also as future products for India and we are working on it. The research and development is going on. This car will go on battery and it will be a completely Indian made battery operated car," said Nathwani. But according to earlier news reports and industry sources, the company aims to price it at Rs 85,000, lesser than the 'Nano' car. Residents who came to take a preview said that they were keenly waiting for its launch. "I will definitely be the first customer," said Pooja, a resident. With oil prices having hit the rooftop this year and the countries focusing on energy security, there is greater pressure on carmakers to develop engines powered by alternate fuels.

Super luxury car makers surpass sales targets

New Delhi, A burgeoning number of high net worth individuals are driving the super luxury car market in India with world’s top brands such as Bentley and Rolls Royce surpassing their annual sales targets ahead of time. Typically, super luxury cars cost Rs 1.5 crore onwards. This year Bentley achieved its annual target of selling 25 cars in just eight months. Similar has been the situation with Rolls Royce. “The Indian market is allotted a quota of 25 cars a year. By August our order book had filled up. And we are requesting Bentley UK to allot some more models for the domestic market,” said Mr Amit Aggarwal, Corporate Sales Manager of Bentley in New Delhi. He was speaking at the sidelines of the launch of Continental Flying Spur that claims to be the world’s fastest car. The Flying Spur is a four door luxury saloon which can run 322 km/hour and will be sold at an approximate price of Rs 2.5 crore. He explained that since the cars are hand-crafted and not assembled by machines, it takes around six months to deliver to a customer after the order is placed. The process also constrains the company from producing more models. Rolls Royce dealership in Mumbai also said a robust demand in the first six months boosted sales of its models. “In the first half of the year, we crossed our target of eight-ten units. Even though the market sentiments seem to be slowing down the sales of super luxury cars, we would still exceed our figures. For the entire calendar year, the company could sell 20 units,” said Mr Sharad Kachalia, Director, Navneet Motors. According to Mr Satya Prakash Bagla, Managing Director, Bentley India, there are 50,000 individuals in the country earning income higher than $1 million. “The market is huge for such cars,” he commented. Last year, a Merrill Lynch report estimated the number of high networth individuals in the country growing by 20 per cent annually.

Mahindra Renault

New Logan cars were launched by Mahindra Renault to replace the older models of Logan cars in India. The new model has been developed from extensive feedback received from the customers that carries various new features to lure the customers.

Petrol version of the new model will be priced between Rs. 4.61 lakh and Rs. 5.93 lakh (ex-showroom) and the diesel version will be available at Rs. 6 lakh and above. According to Gerald Porcario, Marketing Head, Mahindra Renault India, the petrol version will deliver a mileage of about 14 km and diesel version will deliver a mileage of 18 kmpl.

Mahindra Renault has recently shipped its first batch of its model – Logan to South Africa. It also plans to launch new models in India. It recently opened its new design centre in Mumbai which is an integrated part of Renault’s international network of design centres across the globe. The design centre is under high security which is a satellite design centre and will work on projects from Mahindra Renault apart from other projects from the parent company.

Ford sets early 2010 target to launch small car in India

Cars that'll make you drool

CHENNAI: Armed with a $500-mn investment outlay,Motors has set early 2010 as the target to launch a small car in India, start its new engine-making unit and double the assembly line capacity, a top official said here.

The US-based giant will also unveil its refurbished Ikon by next month to expand its range of offerings in the country that includes Fusion, Endeavour and Fiesta, said Michael Boneham, managing director and president of Ford India.

"Ford now has a presence in only 30 percent of India's automobile market segments. We are entering other segments too. These are exciting times," Boneham told IANS at the company's factory at Maramalai Nagar on the outskirts of the Tamil Nadu capital.

"We are also commissioning a new enginemanufacturing unit. It will serve both the domestic and global markets. It will have the flexibility to produce diesel and petrol engines. The idea is to go for higher localisation in the months to come."

Speaking about the small car project, the Ford official said it was being designed and developed specifically for India by a global team. "It will meet the needs of Indian conditions - like water wading, air-conditioning and emission standards."

While declining to divulge any further information on the project, Boneham said it will have a sub-1.2-litre engine with a length of no more than four metres to avoid higher taxes. "It will be very, very competitive in that segment."

Ford's first offering here was the "Josh machine" Ikon that rolled out in 1999 from this city, often called the Detroit of India for hosting auto companies like Hyundai, BMW, Mitsubishi, Ashok Leyland, Caterpillar, TVS, Tafe and Same.

Nissan and Daimler are among some global players that have definite plans to set up their units in this city.

Boneham said the company's integrated engine plant for 250,000 units per annum will be its first outside Europe and will make low-displacement engines for cars to be rolled out of its Indian plant for both domestic market and exports.

He said the existing $26-mn diesel engine assembly plant, with a capacity for 50,000 diesel and 10,000 petrol engines for Fiesta and Fusion, would be eventually integrated with the new plant.

The company has the capacity to assemble some 100,000 cars per year at its facility here, which will be doubled to 200,000.

Queried about the future of its tie up with the Indore-based Avtec that supplies 1.6 litre petrol engines, Boneham said: "We will continue to work with them. We will look at sourcing components from Avtec."

He also sought to dispel the perception that the cost of ownership of cars was high compared with those offered by Japanese and South Korean companies, as several factors like fuel efficiency and servicing were also involved.

"As per our study, in some parts we are costlier and in some others we are cheaper. Overall, we are very competitive in this area. We are working to lower component costs further. Our diesel engine is more fuel efficient than many others," he said.

"High localisation is intended to achieve that. We are extremely quality conscious. Today, we can say we are far more satisfied and comfortable with our vendors."

New Megane headed to India

New Megane headed to India The new Renault Megane will be in India early-2010. It'll have both petrol and diesel power, and will compete with the likes of the Civic and the Jetta.

The new Megane, the third-generation model, will be produced at Renault-Nissan’s facility outside Chennai. The Megane will be sold across India through existing Mahindra-Renault dealerships , but whether the car will be branded a Mahindra-Renault remains or just a Renault remains to be seen.

With the Megane, Renault is hopeful this stylish new model will give its brand the upscale image the Logan failed to deliver. Initial impressions suggest that this stylish new car would appeal to the Indian buyer. The earlier Megane was popular in Europe thanks to a choice of good diesel engines and pricing that made it good value value.

Stylistically, the car displays typical French flair, although some elements are fussy, notably the nose of the car, with a big grille and a slat below the bonnet. The bonnet is unique, unlike anything that’s been seen in the Indian market to date. It features a strong curve across its surface from A-pillar to A-pillar, making it look like a bow drawn taut, with the Renault lozenge like an arrowhead. A steeply raked windscreen and high waist lend the car a lot of flair.

The Megane’s interiors can only be described as avant garde as is sure to be a hit with Indian buyers, especially those who want to upgrade from Optras and corollas. The swooping dashboard has a two-part layout, and is available in different colours according to customer preference. So you can order your Megane in contrasting dark-and-light grey or dark grey and beige. The instrument cluster features a digital speedo with an analogue rev counter. The oil temperature, fuel level and door open warning displays are integrated into the same pod as the speedo. Other information is displayed in an adjoining LCD display.

While the Megane’s looks have never been conventional, the latest model is still not as radical-looking as the earlier generation. However, whether it finds favour with Indian car buyers remains to be seen.

The Megane has a range of powertrain options, which include both diesel and petrol engines, mated to either five- or six-speed manual transmissions , or a CVT. A more powerful version of the same 1.5-litre dCi diesel (code: K9), which also powers the Logan, is expected to be the base engine. This unit produces 85bhp, with another iteration producing 105bhp. There is also a 2.0-litre dCi unit putting out a healthy 130bhp and 30.6kgm of torque.
Petrol engine options include a 1.6-litre 110bhp unit, a 2.0-litre 140bhp, and a turbocharged 1.4-litre producing 130bhp and 19.3kgm of torque.

With a 2640mm wheelbase, the car falls bang in Civic (2700mm) and Jetta (2580mm) territory; indeed, it is against these two that it will face maximum competition. The previous iteration was a comfortable car with sober handling, and since Renault have carried over a lot of the basic architecture, the new Megane is expected to provide a similar driving experience. If Renault can manage to undercut the Jetta and Laura diesels, and go head to head with the petrol Civic, Renault will have a fighting chance in this relatively small but crucial segment.

Hyundai i10 – Successful Small Car in India now for Exports

Hyundai i10 made its global debut in India in October 2007 and since then it has been one of the most successful models in the country. It swept the coveted “Car of the Year 2008” award from nearly every car magazine and automobile TV shows. This model is slated for the launch of an upgraded version now.

Hyundai Motors India Limited is the second largest car manufacturer and exporter in India. It has made India as its global manufacturing and exports hub for all its small cars. It is now planning to export its model, Huyndai i10 to the US market. It is developing strategies to launch the model in the US market which poises stiff competition and saturated small car market with low demand. The US market is “not a small car market” thus, it is more careful to launch its new small car model which enjoys position of one of the highest selling models in India amongst its segment.

The US market foresees Hyundai Elantra as a small car but the changing economic scenario and rise in global fuel prices has marked a shift change in the car market in the US. There has been an increase in the demand for smaller and more fuel efficient cars in the country and Hyundai i10 fits the bill appropriately with its new Kappa engine.

Nissan Motors

Nissan Motor Company Ltd. is a Japanese automobile manufacturer. It was established on December 26, 1933. It is the second largest automobile manufacturing company of Japan, popularly known as "Nissan". Nissan Motors are of the opinion that India has a hugh market potential and that the economy is growing at a tremendous rate. They believe that India is a market of opportunities and growth. They are of the opinion that their investment in India will help in the growth of the company. They are also planning to open manufacturing
units in India. They believe that India is strategically very important for them. And the company's future growth is a lot dependent on the outcome of their investment in India. They have immense expectation from the Indian market. They have bigger plans in the future for India. And setting up manufacturing units and initial investment is just the starting point of the bigger picture.

Nissan Motors India Pvt Ltd. is the Indian division of Nissan Motors. They deal with all the aspects of automobile manufacture.That would include import (presently, later it might be manufacturing), spare parts, sales, after sales, marketing, distribution etc.

Nissan Motors India has dealer outlets in places like Delhi, Mumbai, Bangalore, Secunderabad and Chennai. Nissan Motors India has started their operations in India with the launch of new X-Trail. This particular model is very popular throughout the world. They have been very successful throughout. Moreover Nissan has been able to complete its revival plan according to its planning and timing. Infact, they had actually completed their project a year ahead. This makes it even easier for them to concentrate better on the India market and work accordingly.

The new X-Trail has been launched in two different variants in India. It's a very powerful SUV. It's has four wheel drive system. It has the 4x4 ALL MODE system as well. Hence, driving the new Nissan X-Trail will be a treat for everybody.

BMW India

BMW AG (Bayerische Motoren Werke AG) was formed by Matthew Eben Ruark to manufacture aircraft engine. It is a German Company. Initially, BMW was called Bayerische Flugzeug-Werke. Later, in 1916 the name was changed to Bayerische Motoren Werke. It was only after World War I when Germany was prohibited from making any kinds of aircraft that BMW shifted to manufacturing Railway Brakes. They first built their motorcycle engine called Victoria in 1919. But it was only in 1923 that BMW built their first model

However, now BMW has three brands under their belt.They are; motorcycle called the R32. And it was only in 1927, that BMW had their first car called BMW 3/15. A BMW vehicle is a class in itself and a BMW car is a luxury.

BMW MINI Rolls-Royce BMW deals with only premium segments in the automobile market. They have vehicles ranging form small cars to big luxury cars. The company employs somewhere around 106,000 employees around the globe. The BMW group is famous for its design, superior technology and innovation. They are into marketing and sales as well, apart from research & development and production. BMW Group finally made a formal entry into India in 2007. BMW India believes that the introduction to the Indian market is an important step towards their bigger Asian objective. Right now they have two intermediate bmw dealers and in total have three outlets of BMW in India. However, they plan to open a sales subsidiary and a manufacturing unit in Delhi and Chennai respectively. Both the units will be owned completely by the BMW Group. And the units have become operational by the year 2007. The BMW India units will be dealing and manufacturing with BMW 3 Series and BMW 5 Series saloons for the local market only. Till now all the BMW cars were imported to India. Since 2007, BMWOther BMW dealerships are also on the top of the plans. The current global portfolio of BMW comprises of: BMW 1 Series, BMW 3 Series, BMW 5 Series, BMW 6 Series, BMW 7 Series, BMW X3, BMW X5, BMW Z4 MINI (One, Cooper, Cooper S, Convertible) Rolls-Royce Phantom

Rolls Royce Phantom Coupe Coming in November

Rolls-Royce’s latest Phantom Coupe arrives to Indian market in a 1st week of November. It will price approximately Rs. 3.75 Crore, with customs duty. The company sources said that new model has bagged 2-bookings from an India.

We will hopefully launch Phantom Coupe in the first week of November. We have got orders for this model from India.

-Dr. Matthew J. Bennet (GM, South & East Asia Pacific, Rolls-Royce Motors Cars Ltd) told.

The Phantom is the more popular car from the Rolls Royce. According to Mr. Graeme Grieve (Director, Sales & Marketing, Rolls Royce), India is the essential market for the company as it has the long history in country and it gives great growth opportunities for them.

It made its attack once again in an Indian market after almost 50-years and sold 12-units yearly in a country. This year it is planning to sell 16-20 units and about 70 units by 2013.

We do not believe in going for volumes. Rolls Royce produces cars only in limited numbers and in most markets, we enjoy a waiting against our models.

- Mr. Grieve added.

According to the company, India is set to develop into single major market in the Asia Pacific region in coming 5-years.

Rolls Royce opens its second showroom in India

The 100 year old super luxury British car manufacturer, Rolls Royce, opened its second showroom in Delhi today in partnership with Select Cars. Rolls Royce's Mumbai franchisee is Navnit Motors.

Costing Rs 3.15 crores upwards, Rolls Royce currently manufactures 3 models under the legendary Phantom series and expects to launch the latest and the last Phantom model this October which will be 2 door Phantom coupe. In addition, it will launch a new series of cars positioned below the Phantom series in 2010.

The super luxury car major based in Southern England, UK, grew by 25 percent last year. While it sold 1010 cars worldwide last year,, with China accounting for over 100 cars, India contributed 12. This year it plans to sell about 16 in the country.

Hyundai I-Series Cars in India

Hyundai is planning to launch its complete i-series cars in India. It has experienced a phenomenal success with the launch of its new i-10 model in the country and now plans the launch of its i20 model in October - December 2008. Subsequently, it shall launch its i30 and i40 as well in the coming years.

Hyundai has stepped up its plans to become India's largest car manufacturer and has greaed up its operations in the country. It is currently the second largest car manufacturer and exporter in India after Maruti Suzuki. It has also made India as its manufacturing and exports hub for its small cars. It recently model Hyundai i10 has been one of the most successful cars in its product portfolio.

According to Managing Director and CEO, Hyundai Motors, HS Lheem, "We plan to bring the entire portfolio of our new i-series cars to India. As a full range car company, the premium i30 and i40 cars have a significant potential in India. These new generation cars are ideal for the fast growing Indian market. Besides, we will also strengthen the i10 portfolio with a new engine and an automatic transmission in the next few months.”

Hyundai is also studying C and D car segment in India along with cars running on alternative fuels. With the rise in gasoline prices, it is also thinking of launching CNG cars and Santro hatchback and Accent Sedan in LPG variants.

Chevrolet rolls out new Tavera

After lying low for a while Chevrolet has decided to give its multi-utility-vehicle (MUV) the Tavera an update. Called the the Neo it is on sale for Rs 9.54 lakh (ex-showroom Delhi). That’s only Rs 2 000 over the older car.

You can differentiate this car from the older model by the all- new chrome grille with the huge Chevrolet bow-tie. The Neo also gets two-tone paint scheme and a series of stickers running around it. You also get alloy wheels as part of the Neo package.

But the biggest changes have been saved for the interiors. The highlight of the beige cabin is the leather seats — like the Innova the Tavera gets captain seats which are hugely comfortable and have plenty of adjustments on offer to keep you comfortable. The dashboard is an all-new design and quality is much improved though it still falls short of the Innova levels. There’s a new three-spoke steering wheel and twin-glove boxes to aid utility. The centre console gets a faux-wood finish and a two-din audio system is also part of standard equipment.

But the best change seems to be the relocation of the hand-brake which is now located at a more convenient position next to the gear lever rather than below the dashboard where it was earlier.

But all the changes are purely cosmetic — there has been no upgrade to the Tavera engine. You get the same tried-and-tested 2.5-litre 80bhp diesel which offers class-leading economy figures as well as great low-end pulling power that makes it a good city commute.

The Neo is essentially a pre-emptive strike by Chevrolet against the updated Innova which is just around the corner. While the changes do make it a more comfortable vehicle to travel in the Tavera is still no Innova-beater.

Car rental becoming a more popular option in India

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.”

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.

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.

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.

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.

Honda to roll out new City in September

Honda is planning to change the rules of the sedan game with the launch of its next-generation City, the most popular mid-size car in India. The new City-2008, loaded with a host of jazzy features, will hit the market by mid-September. Sources, , however, say that the new avatar will be pricier than the current version.

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 well

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.

Tata invested Rs.1700 Crore to manufacture Nano

In an exclusive interview with CNBC-TV18, Mr.Ravi Kant, Executive Director, Tata Motors said that they have invested Rs.1700 Crore to manufacture the Nano. According to Mr.Kant, for the next two or three years, the company’s focus will be on India and that they will consider export later. He added that Tata Motors has an extremely good lineup of new products for launch including a new Sumo, Indica and Ace .

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)

India will be Hyundai's small car hub

New Delhi, The $75-billion Hyundai Motors, the world's fifth largest auto maker, has decided to make India its global hub for small cars, the company's chief executive for the Indian market has said.

'We have a very clear picture about the Indian market. We want to use India as our small car hub. India will be used for manufacturing and export of our small cars,' Heung Soo Lheem, managing director of Hyundai Motors India Ltd said.

'Our upcoming i20 model, which will debut in the Paris Motor Show in September, will be solely manufactured in India,' Heung, whose company is India's second largest car maker after Maruti Suzuki, told IANS in an interview.

The automaker, which sells its cars in as many as 193 countries, had launched the i10 - its new offering in the 'A' segment - last November. This car, too, is exclusively manufactured in India, he said.

The Hyundai executive said i20 is a hatchback sedan offering in the 'B' segment. 'This car will hit the Indian market in November,' he said, while rubbishing reports that the company will phase out the Santro and Getz, post i20 launch.

Santro, which is sold as Atos in Hyundai's other markets, was used as the launch pad for the South Korean giant's foray into the Indian automobile market over ten years ago.

'When i10 was launched, it was tagged as a successor to Santro. We will continue to have the cars in our 'A' segment. Similarly, i20 is not a successor to Getz. We will strengthen our line-up giving more options to our customers.'

Heung did not disclose the price at which the new car from the Hyundai stable will be sold in India, but indicated that it will compete with Skoda's Fabia and Ford Fusion.

'We haven't yet decided the pricing. It'll be a little more than the Getz,' he said about the car which sells at between Rs.400,000 and Rs.600,000 in the Indian market.

The South Korean automobile giant sold 327,160 vehicles in India in 2007 and had doubled its assembly line at the Chennai plant to 600,000 units annually this January.

'We have set a target of 530,000 vehicles for the domestic as well as export market for this year,' Heung said. 'But rising fuel prices and inflationary pressures are taking a toll on sales,' he added.

'June, especially, was a tough month for us. Issues like inflation, economic slowdown and skyrocketing oil prices led to slow sales. Credit was denied to our prospective customers because of tight monetary policy,' he said.

'Things are not particularly bright even right now. But we hope after Tuesday's vote in the parliament, economy will pick its pace up.'

Hyundai Motors India - which counts actor Shahrukh Khan and tennis ace Sania Mirza as its brand ambassadors - is part of South Korea's Hyundai Kia Motors Automotive Group, formed after the merger between Hyundai and Kia in 1998.

Kia - the official sponsor of the Australian Open grand slam tournament - has a presence in the European and North American markets apart from the domestic market in South Korea.

Kia and Hyundai do have overlapping interests in certain markets, but the group has no plans to launch the Kia brand in the India, Heung explained.

India's Tata Motors Q1 net profit falls 30 percent to 3.26 bln rupees

MUMBAI (Thomson Financial) - Tata Motors Ltd. said first-quarter net profit fell nearly 30 percent due to higher input costs and valuation loss from the volatility in foreign exchange rates.

For the quarter to July 30, the auto maker's net profit declined 30.13 percent to 3.26 billion rupees from 4.66 billion rupees last year while net revenue rose 14.4 percent to 69.28 billion rupees from last year.

Tata Motors (nyse: TTM news people) shares provisionally closed up 6.85 percent to 424 rupees, while the benchmark Sensex rose 3.63 percent to 14,291.58.

Tata Scenario in India

Tata is planning to roll out its much awaited model Tata Nano in India in October- December quarter. It aims to lure first time car buyers in India who currently own two-wheelers and wish for a little more luxury. The project to roll out Tata Nano is near to completion and according to the company sources company officials are taking care to stick to the schedule strictly. Tata has directly challenged the status quo of Maruti Suzuki in India which is India's largest car manufacturer. It plans to double its capacity for Nano production looking at the present market demand.

It has already acquired Land Rover and Jaguar luxury brands from Ford Motors. It has already stated that it shall carry their brand value and shall not shift their manufacturing operations from their existing production plant.

Tata has recently announced that it shall launch its electric car by the end of current fiscal year. It shall then market the vehicle in overseas markets as well. Moreover, it has launched a 623cc car earlier in January this year. It shall also introduce new variants of this model soon. It is also looking at resurrecting the Daimler brand presently owned by Jaguar. Tata is currently looking at expanding its product portfolio in nearly every auto segment in India. It shall also introduce fuel-efficient models looking at the rising demand of such models due to high fuel prices and rising inflation.

Donning new look, Fiat shifts India gear

Fiat India is going for an overhaul. Under a global revival strategy, the Italian major is planning to create a new identity in the Indian market, by bringing its iconic brands like Ferrari, Alfa Romeo, Maserati and Cinquecento.

As part of this revamp plan, Fiat also plans to sell its excess capacity of engines, including the famed 1,300cc multijet diesel ones produced at its Ranjangaon factory, to other companies, to reap the benefit of shortage of such products in the Indian market.

Rajeev Kapoor, CEO of the Fiat-Tata JV Fiat India Automobiles Pvt Ltd (FIAPL), said the company is open to "opportunities in India and abroad" to sell the excess capacity of diesel and petrol engines. "There were discussions earlier, but so far there is no commitment. But capacities are there. And the way it happens is that Fiat has to sign an understanding with other companies, and the sourcing can be out of India," Kapoor told TOI.

Outlining an ambitious and aggressive revival plan for Fiat in India, a market where the company's volumes shrunk to 0.2% in 2007-08, or just 3,379 units out of the total car industry sale of 12 lakh units, Kapoor said, "We have already launched Palio in the 1300cc multijet diesel engine and it is picking up numbers. The next would be the Linea sedan around the festive season, while the Grande Punto hatchback will be out early next year," he said.

These cars with a high degree of localisation, would be Fiat's answer to competition from companies like Maruti Suzuki, Hyundai, Honda and Tata Motors.

And recognising the fact the luxury and sports cars have a promising market in India, Fiat has also decided to unveil its core strength by bringing some of its famed models via import route.

It has already rolled out famous neo-retro concept car Fiat500, also known as Cinquecento, that has been leading its charge globally, to be followed by another evocative hatchback Bravo. There is also plan to roll out the top-of-the-range Alfa Romeo, Ferarri and Maserati, though Kapoor declined to elaborate on them.

Kapoor is not worried by the hefty Rs 15 lakh price tag of the two-door Fiat500 and said the idea behind the style launches is not volumes but to showcase Fiat's brand value to Indian audience. "It is certainly an effort at building the brand. We want people here to see what Fiat stands for globally - styling, safety and remarkable engine quality."

Banking on Tata-Fiat co-branded dealerships for sales and service, the company hopes to increase sales to 45,000 units in 2009, garnering a 3% share of the expected 15 lakh car sales.

Kapoor said FIAPL would have a capacity of 300,000 engines - 1,300cc diesel multijet engines (used by Maruti Suzuki on its Swift and Dzire and General Motors on Opel models) and the petrol 1200cc and 1400cc engines.

While the first priority would be to meet requirements of Tata Motors and Fiat cars, the engines would also be exported to other Fiat plants worldwide. The rest of the capacity will be sold to other companies.

Saying Tata to Toorak tractors

PETROL shortages and rising prices at the pump are becoming a permanent pain in the pocket and purse for everyone who drives a car.

But are they the beginning of a design and manufacturing revolution that can breathe new life into the Australian automobile industry?

For all their extraordinary achievements, the companies making the world's cars and trucks have been notoriously slow to adapt to change.

To earn profits, they are hostage to the need for huge investment, massive redesign and retooling costs, and long production runs.

Nano

Unveiled in India last January, the first release model is now in the final stages of full-scale production, for sale late this year.

A four-seater all-weather sedan, averaging 100km on five litres of petrol, it has been designed to sell for an Australian equivalent price of about $2500, not including tax, transport and on-road charges.

It has no airconditioning, no electric windows, no power steering, and no airbag. It is just over 3 metres long and 1.5 metres wide.

The body is made of sheet metal and plastic, shiny bright yellow gloss finish in the launch model.

It has a top speed of 104km/h, a 0.6 litre rear engine, and a four-speed manual gearbox. It is test-proved to meet international crash standards and emission laws.

Diesel, gas, electric hybrid and gas options are in development.

It's the brainchild of the extraordinary Ratan Tata, chairman of India's powerful Tata Motors group, who dreamed of producing a new "people's car" that would change the accepted platform on which the worldwide auto industry builds and markets cars.

Tata aims to sell 500,000 cars a year over five years to India's consuming class of 250 million, with overwhelming demand already identified among rural and smaller-city dwellers, where roads are still relatively clear of the nation's six million powered two and three wheelers.

That sounds like a group very similar to Australia's fringe city dwellers and 180 degrees from the world automobile industry's current mainstream direction.

Our television screens nightly advertise the off-road virtues of heavy, ruggedly constructed passenger vehicles and their increasing lists of sophisticated features.

Tata's team of 500 (mostly young) innovators took four years to beat off industry disparagement and doubts, producing the first production model on time and priced to sell at a mission impossible price.

The Nano's significance is that it is the first of a new category of workhorse transport which slashes the capital cost of ownership, making it affordable for millions in the new world.

It is not going to make the current car population obsolete.

But its chosen target market in India has many similarities to potential buyers in Australia - the family car for struggling families, the potentially trendy second car for pragmatic better-off city dwellers.

Tata will ship each vehicle as an almost complete package, supplemented by parts and accessories to be added by its strategically located dealer-assemblers.

That's a recipe that should be attractive to Australia, with our experienced labor force, under-used factories and healthy steel industry.

At the Nano launch, someone asked Tata whether he would be aiming at the Chinese market.

He avoided the question adding, perhaps wryly: "If we could do it, so can others."

However, he has since acknowledged the possibility of franchising later to entrepreneurs in other countries.

Tata Motors to roll out electric cars

Chairman of Tata Group Ratan Tata poses with the Tata 'Nano' car during the launch at the 9th Auto Expo in New Delhi on January 10, 2008.

MUMBAI: Even as Tata Motors is gearing up for the much-awaited Nano launch, India’s top vehicle maker is working with a Norway-based company to produce an electric car.

The new car is expected to hit the Indian roads this financial year, said chairman Ratan Tata at the company’s AGM here on Thursday. However, Mr Tata did not disclose the possible price range for the electric car.

Electric car, or e-car, is the new super kid in the world of automobiles. Global auto majors like GM, Nissan and Honda are all putting greater focus on e-vehicles while cutting down on the production of fuel-guzzling light trucks and SUVs.

Volkswagen to enter pre-owned car business in India

NEW DELHI: Volkswagen, Europe's biggest carmaker, will be making a big push into the Indian market ahead of launching its compact cars and has decided to enter the preowned car business to poach customers from current market-leading brands like Maruti and Hyundai.

Mindful of its late entry into India, the company has lined up aggressive plans to make big inroads into India that also includes having dedicated 'brand stores'.

Volkswagen, that currently sells some of its premium cars in India, is investing around Rs 2400 crore for a greenfield factory at Chakan in Maharashtra that would be the main facility for its upcoming volume cars. .

Mahindra Renault may export Logan cars from India

A joint-venture of India's Mahindra & Mahindra (MAHM.BO: Quote, Profile,Research) and France's Renault Quote, Profile, Research, which makes the no-frills Logan in India, plans to export the model as higher borrowing costs and fuel prices trim sales.

Mahindra Renault also hopes to roll out a version of the sedan which runs on cheaper natural gas in the next 2-3 months, Chief Operating Officer Nalin Mehta said on Wednesday as he launched a premium variant of the Logan.

"May be next quarter itself we'll talk about it," Mehta said of the exports plan. "We are already doing some pilots in some countries," he said, adding the company would target India's neighbours and some countries in Africa.

Higher costs of raw materials such as steel, and rising interest rates aimed at checking annual inflation at 13-year highs, have bumped up vehicle loan rates by 200-300 basis points and depressed demand.

A fuel price hike in June of 10 percent, the biggest increase in a dozen years, has further crimped consumer spending and delayed vehicle purchases.

Mahindra Renault, which started selling the Logan last year, saw its car sales fall to 5,000 units in the April-June quarter from 8,300 cars in the first three months of 2008, Mehta said. A 10-day maintenance shutdown at its manufacturing plant in western India in June also hit sales.

"Yes, the market is less buoyant than last year ... but we are just a year old," he said.

Mahindra Renault has a current annual capacity of 25,000 units, but had the equipment in place to scale it up to 50,000 units, Mehta said.

VW plans pre-owned car biz

Volkswagen, Europe’s biggest carmaker, will be making a big push into the Indian market ahead of launching its compact cars and has decided to enter the pre-owned car business to poach customers from current market-leading brands like Maruti and Hyundai.

Mindful of its late entry into India, the company has lined up aggressive plans to make big inroads into India that also includes having dedicated ‘brand stores’.

Volkswagen, that currently sells some of its premium cars in India, is investing around Rs 2400 crore for a greenfield factory at Chakan in Maharashtra that would be the main facility for its upcoming volume cars.
"India is an important market for VW, though the late entry does not put us into a disadvantage as we get to learn from the mistakes that other companies made,” Makham Dhalivaal, newly-appointed MD of VW Passenger Cars, told TOI in an interview.

The India-born Dhalivaal, who has more than 25 years of experience in the automotive industry though mostly in Europe, said the company wanted to create a brand equity for VW in India before going in for mass volume segment. "We would be adopting a top-down strategy here, which means launching the premium cars first and then getting into the volume segment with our small cars,” he said. Getting into the used-car market would be an important strategy for the company, he said, pointing out that it was an easy way to poach people from other brands.

"Pre-owned cars would be a key part of our business and would also open up fresh revenue streams for our dealers,” he said. The used car business would enable people driving different brands to trade their old cars for VW cars.

"It is a good business opportunity and an excellent way to get people into your brand portfolio,” Dhalivaal, who has a previous experience in pre-owned business, said. The used-car and exchange market—once dominated by unorganised players—has witnessed action over the last few years, especially after market leader Maruti Suzuki stepped into the business around 2001.

Other players who are in the business include Hyundai which has it under the brand name ‘Advantage’, Ford with ‘Assured’ and Honda with ‘Auto Terrace’. Maruti sells around 12% of its new cars through ‘True Value’.

Suzuki bets big on India, to launch new car

New Delhi, Dec 11 (IANS) Japanese auto maker Suzuki Motor Corp (SMC) will launch a new 'global car' in India and locate its biggest production units in the country, company chairman Osamu Suzuki said here Tuesday.

The new car, referred to as a 'global car' by the company, would be made at Maruti Suzuki India Ltd's (MSIL) plant near the capital. Suzuki owns 54.2 percent stake in MSIL.

The car would be targeted primarily at the European market and is expected to be launched in the small car segment, officials said.

'In order to cope with the more intensifying competition, Maruti will make further investments in the field of not only manufacturing but also R&D (research and development) and sales,' Suzuki told a gathering of industry leaders at the Federation of Indian Chambers of Commerce and Industry (Ficci) here.

Osamu Suzuki is currently on a three-day visit to India. He is expected to highlight the increasing significance of India, which is gradually emerging as one of the company's most important markets after Japan.

'Both our plants (Gurgaon and Manesar in Haryana) are totally geared up to produce one million units a year by 2010, but our sales network needs to be strengthened which remains one of our weak areas,' Suzuki said, adding that the company is keen to invest over $1 billion in R&D in India.

He also highlighted some of the deterrents that the company is facing in producing one million cars in India.

'Even though we have set ourselves the target of producing one million units by 2010, we are worried about certain challenges that the company is facing in India.

'One of them is the capacity at the Mumbai port, which is currently full and operating beyond its capacity. We are also eagerly waiting for the railway freight to come up, in the absence of which we are facing huge difficulties in transportation between Delhi and Mumbai.'

The Indian government, which earlier owned a stake in the firm's Indian subsidiary, completely exited from it in May this year.

The Maruti saga began in the 1970s when Suzuki responded to the invitation of then prime minister Indira Gandhi to set up a car factory in India in collaboration with her favourite son Sanjay Gandhi's prototype small car project.

car prices in India Go up

The car prices in India are witnessing yet another hike in nearly all car models from all car manufacturers. The car makers in India have hiked prices on nearly all their car models for the third time this year. Prices for nearly all metals have escalated in past few months and car makers are forced to hike prices for their car models due to rising input costs. Aluminium, nickel, copper, steel, plastic and even rubber prices have witnessed a steep rise which has added to the manufacturing costs.

Auto makers shall hike their car prices by Rs. 5000 on small cars to Rs. 12000 on luxury car models. Honda Siel Cars India has already hikes prices of its model City by Rs. 15,000 Civic by Rs. 20,000 and the new Accord by Rs. 30,000. Maruti has commented that it shall also hike the car prices after the market review. General Motors is also evaluating its options to hike car prices and its impact on Company’s market share.

According to Pawan Goenka, President (Automotive Sector), Mahindra and Mahindra, the rising input costs have hit the Company’s bottom line and it is not forced to pass on the burden to its customers. The input costs have gone up by more than 30 percent while the car makers are increasing their prices only by 3-4 percent.

Tata Motors to introduce Air Car

Tata Motors is taking giant strides and making history for itself. First the Tata Landrover Jaguar deal, then the Tata Nano Car and now it is also set to introduce the car that runs on air, compressed air to be specific.

With fuel prices touching nearly $150 per barrel, it is about time we heard some breakthrough !

India’s largest automaker Tata Motors is set to start producing the world’s first commercial air-powered vehicle. The Air Car, developed by ex-Formula One engineer Guy Nègre for Luxembourg-based MDI, uses compressed air, as opposed to the gas-and-oxygen explosions of internal-combustion models, to push its engine’s pistons. Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets in August of 2008.

The Air Car, called the MiniCAT could cost around Rs. 3,50,000 ($ 8177) in India and would have a range of around 300 km between refuels.

The cost of a refill would be about Rs. 85 ($ 2). Tata motors also plans to launch the world’s cheapest car, Tata Nano priced famously at One lakh rupees by October.

The MiniCAT which is a simple, light urban car, with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air. Microcontrollers are used in every device in the car, so one tiny radio transmitter sends instructions to the lights, indicators etc.

There are no keys - just an access card which can be read by the car from your pocket. According to the designers, it costs less than 50 rupees per 100Km (about a tenth that of a petrol car). Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving), a factor which makes a perfect choice in cities where the 80% of motorists drive at less than 60Km. The car has a top speed of 105 kmph. Refilling the car will, once the market develops, take place at adapted petrol stations to administer compressed air. In two or three minutes, and at a cost of approximately 100 rupees, the car will be ready to go another 200-300 kilometers.

i10 is Indian Car of the Year.

The Hyundai i10 has secured the coveted title for 2008 Indian Car of the Year. The i10 is a car that made its global launch in India,and is manufactured in the country for the rest of the world. Criteria like price, fuel efficiency, design, comfort, safety, handling, performance, functionality, environmental responsibility and driver satisfaction were kept in mind. Technical innovation and value for money were particularly important factors while deciding on the winner.

Four new cars qualified for this year's award. These were the Chevrolet Spark, Hyundai i10, Mahindra Renault Logan and the Maruti Suzuki SX4. As is evident these cars are essentially new models and not just cosmetic upgrades of an existing vehicle or an installation of a new engine or transmission. The cars are considered irrespective of their country of origin but must be available in India at the time of voting and must have been homologated for Indian type approval.

The jury members were tasked with pronouncing a single decisive winner and the voting process has been designed specifically for this purpose, not to provide a scale of merit of all competing cars. Categories, sub-divisions and the like have thus been done away with and the jury is required to assess cars from various segments and price categories against their immediate market rivals.

The Indian Car of the Year award is an expert, independent judgment of all new cars on the Indian market, judged by a panel of senior motoring journalists from leading automobile magazines in India. This year, twelve automotive journalists from seven publications – Autocar India, Auto India, Business Standard Motoring, Car India, Overdrive, Top Gear India and What Car got together to deliberate on the Indian Car of the Year 2008 and to crown the most outstanding new car to go on sale in the twelve months preceding the date of the title.

Selection of the winning car was by a simple voting system. Each Jury member has 25 points to apportion to at least five cars, with a maximum of 10 points for any one of them. Heung Soo Lheem, managing director and CEO of Hyundai Motor India Ltd received the award. "It is a great achievement for Hyundai. We want to make great cars which are appreciated in India and around the world. The success of the i10 is proof of that. Now we are working on one more car - the i20 - which will be launched later this year, and which we hope will win the Indian Car of the Year award for us again in 2009."

Tata buys Jaguar and Land Rover

The sale of Jaguar and Land Rover has been completed following the finalisation of the complicated deal between Ford and India’s Tata Motors.

The Indian conglomerate has borrowed $2.3 billion (£1.2 billion) to buy the two brands, but maintains that it will not move production of Jaguars or Land Rovers to India, and will respect the brands' British heritage.

Tata chairman Ratan Tata confirmed his company will stick to the five-year investment plan for the UK factories in Halewood, Solihull and Castle Bromwich. Announcing the deal, he said:

“We are very pleased at the prospect of Jaguar and Land Rover being a significant part of our automotive business. We have enormous respect for the two brands and will endeavour to preserve and build on their heritage and competitiveness, keeping their identities intact. We aim to support their growth, while holding true to our principles of allowing the management and employees to bring their experience and expertise to bear on the growth of the business.”

Union worries about job losses have been partially allayed by the five-year promise and assurances that Tata will continue to use Ford-supplied engines. Many of Jaguar and Land Rover’s engines, such as the 2.7-litre V6 diesel and 3.2 V6 petrol, are made in Ford’s Dagenham and Bridgend factories. Ford will also transfer $600 million to the Jaguar and Land Rover pension fund.

Ford’s Executive Vice President, Lewis Booth, told Autocar that Ford will help Tata to integrate green technology into the Jaguar and Land Rover ranges, and he also that the engine supply arrangement is a long-term deal, saying that “Tata is really committed to the business and really committed to Britain.”

Booth also confirmed that Ford is not maintaining any stake in Jaguar / Land Rover, in contrast to the 15 per cent holding it maintained in Aston Martin when it sold the company last year.

Jaguar Land Rover CEO, Geoff Polites, welcomed the formal announcement of the deal by saying:

“Jaguar Land Rover’s management team is very pleased that Ford and Tata Motors have come to an agreement today. Our team has been consulted extensively on the deal content and feels confident that it provides for the business needs of both our brands going forward.”

New V10 boosts Gallardo to 552bhp

Lighter, faster and more powerful - this is Lamborghini’s facelifted Gallardo, the LP560-4.

It takes its name from the 560PS (552bhp) power output of the new 5.2-litre V10, up by 40bhp. The engine, developed with Audi, is new and uses the VW Group’s FSI direct injection, which Lamborghini is calling Inienzione Stratificata. Torque is up by 3kgm to 54.2kgm.

The extra shove fractionally improves the Gallardo’s 0-100kph time — now 3.7sec and a match for Ferrari’s 430 Scuderia — but it should also improve midrange performance with more torque available at 4000rpm than the old car had at its peak output. And it should make an even better noise with a new exhaust system.

On the outside there’s a new Reventon-style front bumper and an entirely new rear designed to make the back end look more horizontal. Some of the changes are aimed at cutting costs. The engine has plastic covers, and the accerartor pedal is now plastic with a clip-on alloy cover; it was solid aluminium.

India honing edge in auto design, R&D software

The increasing use of high-end software in automobile design and R&D has made Indian auto majors leverage the country's software prowess and gain an edge over their European and American competitors.

Most are expanding their research and design services either organically or by acquisitions, which will enable them to launch newer models in the market quickly and efficiently in the coming years.

By June 2009, the $6 billion Mahindra & Mahindra group (M&M) will open its new $116 million automobile design and development facility called the Mahindra Research Valley (MRV) spread over 150 acres in Mahindra World City in Chennai. Primarily, this R&D facility will cater to M&M's design needs, and later may consider doing similar high-end work for other OEMs.

Tata Motors has six R&D centres that span India, South Korea, Spain and the UK. In 2006, the Tatas acquired INCAT – now an arm of Tata Technologies – that conducts specialised R&D work for the Tata Group and others. Recently, Tata Motors bought a minority stake in Italian car design firm, Pininfarina, which has designed some landmark Ferraris.

In April this year, French major Dassault Systemes tied up with Argentum Engineering Design's (AED) Centre for Excellence to train automobile engineers who would design, test, validate and manufacture new vehicle models for domestic and international OEMs.

According to a Nasscom report, the automobile and aerospace design industry is currently estimated at $ 144 billion, in which India's current share is valued between $3 billion and $5 billion annually.

This amount is estimated to increase to around $16 billion over the next two to three years. Global spending on engineering services is expected to touch $1.1 trillion by 2020.

Outsourcing to India will touch over $ 50 billion by then.

High-end software like 3D, PLM, and V5 provided by software majors like Dassault Systemes, Siemens and IBM have revolutionised the way new models of vehicles are designed, tested, and manufactured. The advantages of using Indian software talent are obviously in costs. Indian engineering talent is 45 per cent cheaper than an American counterpart.

The savings in time and money gained by using high-end software are also obvious. "We are aware of anything between 25 and 40 per cent savings in time achieved by auto majors when launching a ‘concept to manufacture' programme," said Vivek Marwah, country marketing head, Siemens PLM.

In high performance motorsport, where turnaround time is essential, applications like PLM have reduced design time. Toyota Motorsport uses Dassault Systemes' PLM solutions to reduce aerodynamics design time by 80 per cent and achieve the first-physical assembly of the car in only two days, compared to three weeks previously. For an F1 racing team, time saved off the track is crucial.

Costs saved in building and testing models are equally substantial. "Earlier, we used to build 50 vehicles for crash tests. Now after using virtual crash tests, we use only about 40 units," explains Dr Arun Jaura, chief technology officer, Mahindra & Mahindra.

The costs saved in tests like these vary depending upon the skill sets of engineers and the country's regulatory agency requirements. Another testing expert said most new car models launched in Europe now undergo only one physical crash test, while the rest are simulated. The costs of constructing test prototypes can be enormous.

Despite a significant amount of contribution from Indian engineers in the development of models like the Swift, Dzire and SX4, Maruti Suzuki still relies on Suzuki, Japan for training its engineers, though the automaker plans to increase its R&D strength to 1,000 by 2010.

And players like Argentum hope to offer the same in India through its tie-up with France's Dassault Systemes. "Through this tie-up, we hope to train engineers who will produce engineering solutions, and not software people to do the same," said S D Pradhan, CEO, Argentum Engineering Design.

Currently, India enjoys a reputation as a provider of low-end research work that revolve around small cars. The current challenge is to change that perception. "The country has had a reputation for low-end design work. In setting up the Mahindra Research Valley, we would demonstrate to become the epicentre of engineering design and development for high-end work. We have the potential," said Dr Jaura.

India's journey to becoming the world's hub for automobile design and development may not be easy. "Opportunities are plenty, but competition abounds. China, Latin America, East Europe... each one with certain natural advantages," said R Srinivasan, executive vice-president, Avtec, a Hindustan Motors subsidiary.

Skoda starts work on small-car platform

BANGALORE: Czech automaker Skoda is working to develop an all-new platform for its proposed small car project, distinct from the existing platform of parent Volkswagen, a top company official said.

To be made in India, the car is expected to make its debut within two years and will be sold globally, Skoda India Director Thomas Kuehl said. Skoda’s smallest offering is the premium hatchback Fabia, which was launched in India in January. “Our small car will be launched first in India. The car will cater to virgin markets and will be priced in the Rs 3-5 lakh bracket,” he said. Simultaneously, Skoda will focus on expanding its product portfolio and has eight models lined up for launch in the country within five years.

"We hope to sell 100,000 cars annually beginning 2012." To support its growth, Skoda plans to expand capacity at its Aurangabad facility. The company has applied for the allotment of 50 hectares acres at the location. The plant — which makes the Laura, Superb, Octavia and the Fabia — has the capacity to build 30,000 vehicles annually.

The production of the Fabia will move to VW’s Chakan facility by 2009 and free up space at Aurangabad. Skoda will introduce its Roomster multi-utility vehicle by the end 2008. Plans are being made to launch within a year the Fabia Combi — a longer version of the hatchback — and the new Superb sedan built on VW’s B6 platform. In 2010, the company will launch the Yeti sport utility vehicle.

Maruti Swift sales cross 2-lakh mark

Country's largest carmaker Maruti Suzuki's runaway success with 'Swift' has crossed a new milestone in sales – two lakh units – with the car becoming one of the fastest selling models in India since its launch three years ago to achieve this feat.

"Maruti Swift has attained new benchmarks very swiftly. It has emerged as the fastest selling car in India by completing the two-lakh units sales mark in less than 36 months," a company official said.

The company launched this premium hatchback in petrol variant on May 25, 2005. In its first year of launch, it clocked sales of 61,200 units.

"The popularity of petrol version inspired the company to launch a diesel variant in January 2007, powered by much acclaimed and the most compact diesel engine in its category," he said.

At present, 60 per cent of 'Swift' produced, are in diesel variant.

Besides, Maruti also registered a sale of 9,490 units of 'Swift' during April, the highest sale in a single month.

"It is the only model to undergo a face-lift in less than three years of its launch. The company launched a refreshed version of Swift earlier this year," the company official said.

According to the monthly data of Society of Indian Automobile Manufacturers, Maruti sold 51,766 vehicles in the domestic market under all categories during April, a jump of 22.30 per cent over the previous year's corresponding sale of 42,326 units.

Maruti's this successful model, which is priced in the range of Rs 4 lakh to Rs 5.17 lakh, is awarded with numerous national and international awards over the last three years.

Force India looking for new Lewis

Vijay Mallya is confident he will one day discover India's answer to Lewis Hamilton.

Force India co-owner Mallya is only six months into his long-term project with the team after investing heavily.

Upon his arrival, Mallya felt experience was required to partner the emerging talent that is Adrian Sutil, and so opted for veteran Italian Giancarlo Fisichella.

That might have felt like a slight on Narain Karthikeyan, who has been making a name for himself in A1GP these past few months with Team India.

But Mallya was eager for his team to embark upon a swift ascent, and felt Fisichella's know-how would serve as the ideal foil to Sutil's burgeoning youth.

However, that does not mean the flamboyant billionaire has given up on discovering an Indian driver to race in his Indian team.

"I respect each and every individual regardless of nationality or class, and in my team I want the best people available," insisted Mallya.

"I've no doubt that in a population of 1.2 billion people we will find a Lewis Hamilton somewhere.

"However, it will take time and experience, and that's why we have Giancarlo Fisichella at the moment.

"But we are willing to invest in finding Indian talent and nurture him or her to the highest levels."

For now, Mallya's primary concern is cracking the secret that has so far eluded the team in qualifying.

Neither Fisichella nor Sutil has managed to make it into the second round in the four grands prix to date this year, in turn compromising their race as they have consistently started in the final six on the gird.

Fisichella at least came close to scoring the team's first point in the last outing in Barcelona 11 days ago, with the 35-year-old finishing 10th.

Mallya knows if Fisichella had been higher placed at the start he would more than likely have claimed a top-eight place come the chequered flag.

Ahead of this weekend's Turkish Grand Prix in Istanbul, Mallya added: "I was disappointed with qualifying (in Spain) after such a strong practice on Friday and Saturday morning.

"Clearly what I'm noticing is that we're not able to get good qualifying pace out of the car, which is our Achilles heel, and we need to investigate that thoroughly.

"If we start a few places up the grid we won't get into traffic or be a little accident prone like we are when starting from the back.

"This is just the start for us, though. Nobody expected us to be as competitive as we are. We've been on the grid for little over five months and look how far we have come.

"We are deploying all resources to improve, and although no-one expects miracles, the fact we finished in the top 12 in Bahrain and Malaysia and top 10 in Spain shows we are a genuine midfield contender now, not a backmarker.

"Of course, the field is incredibly tight, with at least 10 cars within a couple of tenths (of a second) of each other.

"It's a bitter contest now where everything counts, but I am delighted to see we are in that game."

Carlos Ghosn, CEO of both Renault and Nissan Motor, faced some petulant shareholders at the French automaker's annual meeting on Apr. 29 in Paris. One complained that the stock was down more than 30% this year. What, he wanted to know, had happened to the Ghosn Effect?

Good question. The Ghosn Effect once referred to the galvanizing impact the CEO had on Nissan, when he was dispatched by Renault, Nissan's controlling shareholder, to turn around the foundering Japanese company almost a decade ago.

Today, Ghosn's critics use the phrase to describe a boss who they worry may be stretched so thin he cannot manage either Nissan or Renault as well as he could manage one company. He certainly has hit a boggy patch. Sales at Renault have flattened out. Profits last year slid 7.6% and won't do any better in 2008. And Nissan? Its stock is down 32% from its 12-month high on flat profits in 2007 and poor prospects for 2008.

Yet Ghosn, a.k.a. Le Cost Killer, Super Carlos, the Icebreaker, and probably a dozen other epithets, isn't ruffled by the critics. True, his schedule seems impossible for ordinary mortals to survive, let alone thrive on. On Saturday, Apr. 26, he was in Tokyo preparing for Nissan's May 13 annual meeting and announcement of a new five-year plan. Monday night it was New York to pick up an award (after lunch with BusinessWeek). Tuesday afternoon he was in Paris to meet those agitated shareholders.

And, says Ghosn, it's all worth it. If you look at car-company tie-ups, such as Daimler-Benz buying Chrysler or Ford Motor (F) buying Jaguar and Land Rover, "there is only one global alliance that has added value, and that is Nissan and Renault," he says, pointing out that the two are still earning billions even in a year of recession and slowdown. Renault's operating income hit $1.8 billion in 2007, while Nissan posted $3.1 billion in operating income for the first half of its current fiscal year.

Ghosn figures his dual-CEO role fits the times, when automakers must move fast to adapt to changing tastes and ever-tougher regulations. In 2007 he launched four major joint ventures involving Nissan and Renault: two electric car projects in Denmark and Israel, a combined factory in Morocco, and a project to design and build a $3,000 car in India. That's on top of winning a joint venture in Russia with AvtoVAZ, securing a deal to supply small cars to Chrysler, outsourcing Nissan's pickup-truck manufacturing in the U.S., and agreeing to build small pickups for Suzuki Motor. "You need one decision-maker for these things," says Ghosn, "so you get the bickering [that would result from having two CEOs] off the table."

The game for Ghosn is getting even more challenging than when he saved Nissan from bankruptcy. In his worldview, Nissan has to stay strong in the U.S. even though, he says, "the U.S. market is not going to be great again." A saturated America now has some 800 vehicles per 1,000 people, vs. fewer than 30 in China and India. Hence the dilemma: You have to stand your ground in the huge U.S. marketplace while racing to win the hearts and pocketbooks of first-time car buyers in China, Brazil, Russia, and elsewhere.

TATA MOTORS ENTERS THAILAND WILL LAUNCH ECO CAR

It has become a passion for Tata’s, one of the largest business houses of India, to conquer and venture into new places. Since 2000, the company has either fully acquired or bought stake in as many as 49 firms across the world.

After positioning firm in different areas and businesses, it has again taken a leap forward in the automobile sector by entering into a new market. The company now will produce “eco car” in Thailand catering to the South Asian and African markets. Seems, it is a never-ending appetite of this 19th century Indian behemoth!

On April 2, India’s largest vehicle maker Tata Motors received Thailand government’s approval for setting up a greenfield facility to manufacture “eco cars” at an estimated investment of Rs 760-1,015 crore.

Thailand had invited investment from carmakers for manufacturing environment-friendly cars and proposed to give tax benefits subject to certain conditions. Toyota and Mitsubishi too have received nod for similar facilities on the same day.

Tata Motors said Bangkok had approved the company’s “green car” manufacturing facility but declined to share the investment details. Sources, however, said investment would be in the range of 6-8 billion Baht (Rs 760-1,015 crore) as the minimum investment criterion is five billion Baht.

Among others who had applied for the project include Honda, Suzuki, Nissan and Volkswagen. Thailand had already permitted Honda, Suzuki and Nissan to establish eco car plants, ahead of the latest round of approval.

As per the criterion for setting up a facility to produce “eco cars”, the vehicle should be with less than 1.4 litre engine and four out of the five engine components would have to be made indigenously there. Another condition for the project was to manufacture one lakh units in five years.

On the type of car that the company would manufacture in the country, Tata Motors (Thailand) Ltd Chief Executive Officer Ajit Venkataraman said, “Both Nano and Indica fit into the criteria. And something in between may also come. It can be anything.” Most of the manufacturers would likely export the cars to the neighbouring countries in the region, as the size of the passenger car market is two lakh units a year in Thailand.

“One of the conditions of applying for the project was to manufacture one lakh units in five years and seeing the number of players coming into the market, it seems everyone is looking to export,” he said, adding that the possible export market for Tata and other players could be Australia, the South-Asian region and the African countries.

Meanwhile, according to a Japanese media report, Tata Motors also plans to list its shares on the Tokyo Stock Exchange to raise funds, close on the heels of acquiring British marquees Jaguar and Land Rover. As per Japanese daily, The Nikkei, the firm is finalising plans to list the shares as depository receipts on the bourse in Japan.

“India’s Tata Motors Ltd is finalising plans to list its depository receipt on the Tokyo Stock Exchange as early as the summer,” the daily said in an article published in its online edition.

After entering into an agreement with US car maker Ford for the 2.3-billion dollar takeover of British luxury brands - Jaguar and Land Rover, Tata Motors had said it was looking to refinance the USD 3 billion bridge loan it had taken to fund the acquisition. Tata Motors’ American Depository Receipts (ADRs) are listed on the New York Stock Exchange.

Earlier, on March 27, Tata Motors had launched its one-ton pick-up vehicle Xenon in Thailand, priced between 5.39 lakh Baht to 6.29 lakh Baht (about Rs 6.86 lakh to Rs 8.03 lakh). The vehicle has been designed and manufactured by Tata Motors (Thailand) Co Ltd, a 70:30 joint venture company between Tata Motors and Thonburi Automotive Assembly Plant (TAAP).

Launching of the vehicle at the Bangkok International Motor show, Tata Motors Managing Director Ravi Kant said, “This is really a special moment for us as this is our first product in Thailand. After doing an extensive research here, we found the country very favourable for investments and have done accordingly.”

The diesel vehicle would be available in two variants - X-tend Cab and Double Cab with four doors. The company may come out with a CNG variant later this year, Kant said.

Xenon has been developed in Thonburi’s plant, which has a capacity of 35,000 units a year. The company currently has about 40-45 per cent localisation in inputs and plans to increase it further.

On its expected sale in the Thai market, Venkataraman said, “In the first year, we are targeting to sell 5,000 units and eventually we are looking to capture five per cent market share in the next five years.”

He said after focusing and developing the Thailand market, the company would export the vehicle to Australia, Malaysia, Indonesia and other ASEAN countries. “Depending upon the volume and demand, we may also set up a new manufacturing facility as the 65 per cent of the vehicles sold are pick-up cars here and the rests are passenger cars.”