Wednesday, December 31, 2008
Aston Martin V12 Vanquish
The Aston Martin V12 Vanquish is a supercar manufactured by Aston Martin since 2001. It rose to fame after being featured as the official James Bond car in Die Another Day, the twentieth James Bond film. In the film, the Vanquish has the usual Bond film embellishments, including active camouflage which rendered the vehicle virtually invisible. The Vanquish is powered by a 5.9 L (5935 cc) 48-valve 60° V12 engine, which produces 343 kW (460 hp) and 542 N·m (400 ft·lbf) of torque. It is controlled by a fly-by-wire throttle and a 6 speed 'paddle shift' or semi-automatic transmission. A special V12 Vanquish S debuted at the 2004 Paris Auto Show with the power upped to 388 kW (520 hp) and 577 N·m (426 ft·lbf).
Maybach
The Maybach 57 and 62 were the first automobile models of the Maybach brand since the brand's revival by DaimlerChrysler. They are derived from the Mercedes-Benz Maybach concept car presented at the 1997 Tokyo Motorshow (which was based on the Mercedes-Benz S-Class sedan). DaimlerChrysler attempted to buy the Rolls-Royce/Bentley marque when Vickers offered the company up for sale. When this attempt failed (they were outbid by BMW and Volkswagen respectively) they introduced the Maybach as a direct challenger in 2002. Both models are variants of the same ultra-luxurious automobile. The model numbers reflect the respective lengths of the automobiles in decimetres; the 57 is more likely to be owner-driven while the longer 62 is designed with a chauffeur in mind. The engine is a Mercedes-sourced 5.5-liter twin-turbo V12, generating 550 hp.
Mercedes-Benz SLR McLaren
The Mercedes-Benz SLR McLaren is a sports car and supercar automobile co-developed by DaimlerChrysler and McLaren Cars. It is assembled at the McLaren Technology Centre in Woking, England. Most people presume "SLR" to stand for "Sportlich, Leicht, Rennsport" (German for "Sport; Light; Racing"). The car's base price is £300,000 or $455,500. The SLR has a supercharged 5.5 (5439cc) litre dry sumped 90 degree V8. It produces 466.8 kW at 6500rpm (626 hp) and 780 N·m (575 ft·lbf) torque at 3250 - 5000 rpm.
World's most expensive car.
The Bugatti Veyron 16.4 is the most powerful, most expensive, and fastest street-legal production car in the world, with a proven top speed of over 400 km/h (407 km/h or 253 mph). It reached full production in September 2005. The car is built by Volkswagen AG subsidiary Bugatti Automobiles SAS and is sold under the legendary Bugatti marque. It is named after racing driver Pierre Veyron, who won the 24 hours of Le Mans in 1939 while racing for the original Bugatti firm. The Veyron features a W16 engine—16 cylinders in 4 banks of 4 cylinders.
Sunday, December 28, 2008
Saturday, December 27, 2008
Tuesday, December 23, 2008
CAR CARE TIPS..!!!
In this world of soaring fuel prices along with your dream car getting more expensive by the day, you would surely want to get the best out of your car while keeping the running and repair costs to the minimum. After all, with the prices of today's cars, they're well said to be one of your biggest investments in life – which you would like to protect at any cost.
But how to do that? Do you have to be an auto expert or learn some exceptional tricks to achieve that milestone? No. Instead, just following the owner's manual as well as paying heed to some useful tips would do the needful.
Here they go.
1. One of the best things you can do for a car's longevity is start it up properly and drive conservatively -- easy on the accelerator as well as the brakes. Jackrabbit starts and hard braking do more than wear the obvious parts more quickly, and thus can lead to more repairs down the road.
2. Drive your car regularly and as much as you can. Simply because not driving your car regularly can be as damaging as driving it too hard and recklessly. If not more, it may weaken the battery of your car as also lead the brake rotor to rust which will need to be replaced immediately.
3. Avoid riding the clutch as far as possible. Simply because holding in the clutch for extended periods or touching the clutch pedal unnecessarily may weaken clutch springs and also wear it prematurely, which is not cheap to replace. For beginners, thus, it would help practicing proper co-ordination of pressing of accelerator and release of clutch pedal. It would also help to remember that clutches and transmissions are not made to slow and stop the car – a job better done by the brakes. And it is much cheaper to replace the brakes than the clutch.
4. You should always be careful about tyre pressures. Under-inflated tyres increase fuel consumption by up to 10 percent and also effect stability during drive. Excessive air pressure, on the other hand, results in faster wear of treads, giving a hard and bumpy ride. Keeping your tyres properly inflated, therefore, can increase fuel mileage and help reduce flats caused by uneven tyre wear. "You should also avoid fitting oversized tyres or nutty accessories. They may impress a few, but not your car's performance," warns automotive expert Murad Ali Baig.
5. Always keep your engine tuned. A fouled spark plug or plugged/restricted fuel injector can reduce fuel efficiency as much as 30 percent.
6. Serious damage could also result if you don't pay heed to the warning lights, such as the oil pressure light and charging light. These lights come up when you turn on the ignition and fade away after a few seconds of engine operation. You should sense a problem if either a light doesn't come on during ignition or doesn't go away even when the engine is started. For instance, if you operate the engine with the 'oil pressure light' on, this can result into severe engine damage. Experts say that when the oil pressure warning light illuminates, it is signaling that the engine has lost the pressure that supplies lubricating oil to vital engine parts. Likewise, if the 'malfunction indicator' light comes on when the engine is running, there is a problem with the emission control system itself.
7. Remove excessive items from the vehicle so far as possible. Experts say that an extra 100 pound in your car could reduce your MPG by up to 2 percent.
8. Oil and air filters prevent dirt and harmful particles from damaging the engine and should be changed at twice a year or every 3,000-5,000 kms. Also, the engine should maintain the amount of oil it is programmed to receive. True, "changing your oil and filter religiously doesn' guarantee that you'll get more than 200,000 miles out of a car, but I can tell you that all the people I've met who have racked up well over that amount had been diligent about it," observes Joe Wiesenfelder, global automotive expert and senior editor, cars.com, a leading online automotive shopping destination and a joint venture of major newspaper companies in the US.
9. Modern cars, in fact, are believed to be exceptionally well made. In the past decade alone, maintenance intervals for things such as spark plugs, emission and cooling systems have been stretched out to 100,000 miles. Still the need for periodic maintenance hasn't changed. "In fact, given the longer life expectancy of the typical vehicle today, the need for periodic maintenance has never been greater if you expect to get the most from what has become the second biggest investment most individuals will ever make," according to the US-based National Institute for Automotive Service Excellence. Vehicle maintenance, therefore, is the most important aspects to its safety, longevity and value.
10. Your owner's manual itself lists specific time or mileage intervals between major and minor services your vehicle requires. Make sure all these jobs are done in time. "More because the manufacturer's recommended maintenance schedule is based on normal driving, whereas very few of us drive normally," says Rajiv Gupta, works manager, Basant Motors, a Delhi-based authorized service station of Maruti.
Moreover, in a country like India, even driving conditions are pathetic, leading to a fast wear and tear on your vehicle. This can be prevented only by proper maintenance. If not more, a well-maintained vehicle -- apart from speaking volumes about you as an owner -- will at least not desert you when you need it most!
But how to do that? Do you have to be an auto expert or learn some exceptional tricks to achieve that milestone? No. Instead, just following the owner's manual as well as paying heed to some useful tips would do the needful.
Here they go.
1. One of the best things you can do for a car's longevity is start it up properly and drive conservatively -- easy on the accelerator as well as the brakes. Jackrabbit starts and hard braking do more than wear the obvious parts more quickly, and thus can lead to more repairs down the road.
2. Drive your car regularly and as much as you can. Simply because not driving your car regularly can be as damaging as driving it too hard and recklessly. If not more, it may weaken the battery of your car as also lead the brake rotor to rust which will need to be replaced immediately.
3. Avoid riding the clutch as far as possible. Simply because holding in the clutch for extended periods or touching the clutch pedal unnecessarily may weaken clutch springs and also wear it prematurely, which is not cheap to replace. For beginners, thus, it would help practicing proper co-ordination of pressing of accelerator and release of clutch pedal. It would also help to remember that clutches and transmissions are not made to slow and stop the car – a job better done by the brakes. And it is much cheaper to replace the brakes than the clutch.
4. You should always be careful about tyre pressures. Under-inflated tyres increase fuel consumption by up to 10 percent and also effect stability during drive. Excessive air pressure, on the other hand, results in faster wear of treads, giving a hard and bumpy ride. Keeping your tyres properly inflated, therefore, can increase fuel mileage and help reduce flats caused by uneven tyre wear. "You should also avoid fitting oversized tyres or nutty accessories. They may impress a few, but not your car's performance," warns automotive expert Murad Ali Baig.
5. Always keep your engine tuned. A fouled spark plug or plugged/restricted fuel injector can reduce fuel efficiency as much as 30 percent.
6. Serious damage could also result if you don't pay heed to the warning lights, such as the oil pressure light and charging light. These lights come up when you turn on the ignition and fade away after a few seconds of engine operation. You should sense a problem if either a light doesn't come on during ignition or doesn't go away even when the engine is started. For instance, if you operate the engine with the 'oil pressure light' on, this can result into severe engine damage. Experts say that when the oil pressure warning light illuminates, it is signaling that the engine has lost the pressure that supplies lubricating oil to vital engine parts. Likewise, if the 'malfunction indicator' light comes on when the engine is running, there is a problem with the emission control system itself.
7. Remove excessive items from the vehicle so far as possible. Experts say that an extra 100 pound in your car could reduce your MPG by up to 2 percent.
8. Oil and air filters prevent dirt and harmful particles from damaging the engine and should be changed at twice a year or every 3,000-5,000 kms. Also, the engine should maintain the amount of oil it is programmed to receive. True, "changing your oil and filter religiously doesn' guarantee that you'll get more than 200,000 miles out of a car, but I can tell you that all the people I've met who have racked up well over that amount had been diligent about it," observes Joe Wiesenfelder, global automotive expert and senior editor, cars.com, a leading online automotive shopping destination and a joint venture of major newspaper companies in the US.
9. Modern cars, in fact, are believed to be exceptionally well made. In the past decade alone, maintenance intervals for things such as spark plugs, emission and cooling systems have been stretched out to 100,000 miles. Still the need for periodic maintenance hasn't changed. "In fact, given the longer life expectancy of the typical vehicle today, the need for periodic maintenance has never been greater if you expect to get the most from what has become the second biggest investment most individuals will ever make," according to the US-based National Institute for Automotive Service Excellence. Vehicle maintenance, therefore, is the most important aspects to its safety, longevity and value.
10. Your owner's manual itself lists specific time or mileage intervals between major and minor services your vehicle requires. Make sure all these jobs are done in time. "More because the manufacturer's recommended maintenance schedule is based on normal driving, whereas very few of us drive normally," says Rajiv Gupta, works manager, Basant Motors, a Delhi-based authorized service station of Maruti.
Moreover, in a country like India, even driving conditions are pathetic, leading to a fast wear and tear on your vehicle. This can be prevented only by proper maintenance. If not more, a well-maintained vehicle -- apart from speaking volumes about you as an owner -- will at least not desert you when you need it most!
Monday, December 22, 2008
Saturday, December 20, 2008
Friday, December 19, 2008
Maruti retains top position in Indian automobile mmarket
Despite incresed competiton in the domestic market, Maruti Suzuki has maintained its grip over the Indian automobile market by topping the annaul India Performance Execution and Layout study (APEAL) conducted by customer research body JD Power Asia-Pacific.
Four of Maruti Suzuki’s car models — small cars Wagon R and Swift besides sedans Swift Dzire and SX4 — topped their respective segments as over 6,000 customers who purchased a new vehicle between November 2007 and July 2008 voted for the company. Maruti’s newly launched Swift Dzire, which was pitted against Hyundai Accent, Mahindra Logan, Tata Indigo, scored 802 points on a 1,000-point scale. It was rated best on the 10 factors on which all cars were rated, covering aspects such vehicle exterior, fuel economy, driving dynamics, engine power and transmission smoothness, driving safety, music system and air-conditioning.
Maruti’s other cars—Swift and SX4—topped premium compact and mid-size segments for the second consecutive year in a row. Customers were particularly satisfied with the improved fuel economy of Swift Diesel.
“The newest generation of Maruti Suzuki products has clearly helped improve the brand’s overall image,” JD Power and Associates Asia-Pacific senior director Mohit Arora said.
All the top positions within different categories were bagged by Japanese carmakers. Honda Motor’s Civic and CR-V topped the premium sedan and SUV segment. While Toyota’s Innova was ranked highest in the multi-utility vehicle segment. South Korean carmaker Hyundai Motor India failed to bag any top slot, but it improved the overall appeal on the back of its new small car i10, which is among the top selling models in the country.
Four of Maruti Suzuki’s car models — small cars Wagon R and Swift besides sedans Swift Dzire and SX4 — topped their respective segments as over 6,000 customers who purchased a new vehicle between November 2007 and July 2008 voted for the company. Maruti’s newly launched Swift Dzire, which was pitted against Hyundai Accent, Mahindra Logan, Tata Indigo, scored 802 points on a 1,000-point scale. It was rated best on the 10 factors on which all cars were rated, covering aspects such vehicle exterior, fuel economy, driving dynamics, engine power and transmission smoothness, driving safety, music system and air-conditioning.
Maruti’s other cars—Swift and SX4—topped premium compact and mid-size segments for the second consecutive year in a row. Customers were particularly satisfied with the improved fuel economy of Swift Diesel.
“The newest generation of Maruti Suzuki products has clearly helped improve the brand’s overall image,” JD Power and Associates Asia-Pacific senior director Mohit Arora said.
All the top positions within different categories were bagged by Japanese carmakers. Honda Motor’s Civic and CR-V topped the premium sedan and SUV segment. While Toyota’s Innova was ranked highest in the multi-utility vehicle segment. South Korean carmaker Hyundai Motor India failed to bag any top slot, but it improved the overall appeal on the back of its new small car i10, which is among the top selling models in the country.
See i20 by the end of December this year.
Despite a dull market, Hyundai Motors India is planning to launch its five-door hatchback i20 by the year-end. The car had made its debut at the Paris Motor Show 2008 in October and will be priced in the Rs 5-5.5-lakh range.
Hyundai i20 will take on Suzuki Swift Zxi and Skoda Fabia, priced at Rs 5.08 lakh and Rs 5.24 lakh, respectively. It will sport a 1.4-litre petrol Kappa engine and will be manufactured at Hyundai’s Chennai plant.
In fact, Hyundai had started exporting i20 to Europe in November 2008. While this model will replace Getz in Europe over the medium term, the company is non-committal about its phase out schedule for India.
“A lot will depend on the market conditions. In another five years, a number of our models may or may not be phased out,” said Hyundai Motor India senior V-P Arvind Saxena. He also clarified that the company had no plans to launch a diesel variant of i20 as of now.
Hyundai i20 will take on Suzuki Swift Zxi and Skoda Fabia, priced at Rs 5.08 lakh and Rs 5.24 lakh, respectively. It will sport a 1.4-litre petrol Kappa engine and will be manufactured at Hyundai’s Chennai plant.
In fact, Hyundai had started exporting i20 to Europe in November 2008. While this model will replace Getz in Europe over the medium term, the company is non-committal about its phase out schedule for India.
“A lot will depend on the market conditions. In another five years, a number of our models may or may not be phased out,” said Hyundai Motor India senior V-P Arvind Saxena. He also clarified that the company had no plans to launch a diesel variant of i20 as of now.
Thursday, December 18, 2008
M&M launches 'MICRO-HYBRID' Scorpio, Bolero
Automobile manufacturer Mahindra & Mahindra today launched its 'micro-hybrid' technology- equipped variant of sports utility vehicles - Scorpio and Bolero, priced between Rs 6.5 lakh and Rs 6.97 lakh.
"This is the technological innovation which we have developed with the support from Bosch. This will give an average fuel saving of about five per cent from the normal vehicles," Mahindra & Mahindra President (Auto Motive sector) Pawan Goenka told reporters here.
The micro-hybrid technology enables vehicle engine to turn off automatically when idle or in neutral gear. The engine restarts once the clutch is pressed. Goenka said the company is planning to bring this technology would be available in all of the company's high-volume products, including Mahindra Pick-up and other engine series such as the M-Hawk.
The company is also considering to use the technology in its yet-to-be launched Ingenio SUVs, he said. Asked about the sales target of this new product, he declined to give a specific answer. On possibilities of exporting this vehicle, he said "We may look at similar markets like South-East Asia and Nepal in future but our present focus will be on the domestic market."
M&M has also applied for a patent for a specific sensor, which it has developed as part of this technology. He said the company is considering to focus on the hybrid vehicle development but "is taking time due to certain issues".
"We will take at least another two years to come with the full-hybrid as we are coming across many issues such as costing, " Goenka. Goenka also said although the micro-hybrid technology will not get direct incentives from the government, he was looking for some benefits in the form of excise.
"This is the technological innovation which we have developed with the support from Bosch. This will give an average fuel saving of about five per cent from the normal vehicles," Mahindra & Mahindra President (Auto Motive sector) Pawan Goenka told reporters here.
The micro-hybrid technology enables vehicle engine to turn off automatically when idle or in neutral gear. The engine restarts once the clutch is pressed. Goenka said the company is planning to bring this technology would be available in all of the company's high-volume products, including Mahindra Pick-up and other engine series such as the M-Hawk.
The company is also considering to use the technology in its yet-to-be launched Ingenio SUVs, he said. Asked about the sales target of this new product, he declined to give a specific answer. On possibilities of exporting this vehicle, he said "We may look at similar markets like South-East Asia and Nepal in future but our present focus will be on the domestic market."
M&M has also applied for a patent for a specific sensor, which it has developed as part of this technology. He said the company is considering to focus on the hybrid vehicle development but "is taking time due to certain issues".
"We will take at least another two years to come with the full-hybrid as we are coming across many issues such as costing, " Goenka. Goenka also said although the micro-hybrid technology will not get direct incentives from the government, he was looking for some benefits in the form of excise.
Eco friendly sedans by MERCEDES-BENZ
You needn’t loosen your purse strings on this one as it runs on compressed natural gas (CNG), the cheapest auto fuel in the world. The three-star iconic luxury brand, Mercedes-Benz, just drove in with a CNG-complaint engine, making it more fuel efficient than the India’s cheapest car Maruti 800, which runs only on petrol.
New CNG variant of Mercedes-Benz runs over 20 km on a kg of CNG against its petrol sibling which guzzles a litre for every 12 km. Moreover, CNG comes at less than half the price — Rs 19 — against Rs 45.52 for petrol in Delhi. And it’s much more cleaner than petrol.
As energy crisis grips the world and speculations mount about a hefty fuel price hike, CNG has taken centre stage in Mercedes India plans. The German company has already imported a couple of CNG-compatible cars in Delhi and Mumbai, allowing even the monied to have cheaper fuel options. According automobile industry sources, Mercedes-Benz plans to bring its globally-successful CNG sedans to India.
“We have some cars running on CNG in India. It’s a successful technology and has been developed over the years. We are also trying the bio-diesel option on the E Class saloon here. If these extensive trials are successful, we shall introduce these cars in India too,” said a Daimler India senior executive.
Mercedes-Benz, India’s largest luxury carmaker, had sold 2,491 cars in 2007. Buoyed by 50% increase in sales to 1,330 cars — both locally made and imported — in the first four months of 2008, it is looking at its worldwide successful new CNG models to garner higher sales.
It had already launched its B class B170 NGT and the E 200 CNG sedans in the US and Europe and plans to extend them to India. For its new CNG range in India, Mercedes is banking on institutional sales where vehicles ply largely on CNG technology.
Other luxury car makers are also not lagging behind on green plans. BMW is looking at bringing its clean hydrogen technology, which runs on water and emits only steam. The technology has not yet been commercialised.
“The high-tech BMW Hydrogen 7 is our answer to green fuels. It is an expensive technology but with rapid expansion of the luxury car market in India, there is a potential for alternative fuels in future,” said BMW India spokesperson.
CNG and other green fuels are likely to change the image of luxury cars known for guzzling fuel. With crude oil touching $135 a barrel, alternative fuel options are becoming basic characteristic of luxury cars too. With over 7,000 luxury cars sold in India in FY08, some exciting fuel options are likely to hit the segment soon.
New CNG variant of Mercedes-Benz runs over 20 km on a kg of CNG against its petrol sibling which guzzles a litre for every 12 km. Moreover, CNG comes at less than half the price — Rs 19 — against Rs 45.52 for petrol in Delhi. And it’s much more cleaner than petrol.
As energy crisis grips the world and speculations mount about a hefty fuel price hike, CNG has taken centre stage in Mercedes India plans. The German company has already imported a couple of CNG-compatible cars in Delhi and Mumbai, allowing even the monied to have cheaper fuel options. According automobile industry sources, Mercedes-Benz plans to bring its globally-successful CNG sedans to India.
“We have some cars running on CNG in India. It’s a successful technology and has been developed over the years. We are also trying the bio-diesel option on the E Class saloon here. If these extensive trials are successful, we shall introduce these cars in India too,” said a Daimler India senior executive.
Mercedes-Benz, India’s largest luxury carmaker, had sold 2,491 cars in 2007. Buoyed by 50% increase in sales to 1,330 cars — both locally made and imported — in the first four months of 2008, it is looking at its worldwide successful new CNG models to garner higher sales.
It had already launched its B class B170 NGT and the E 200 CNG sedans in the US and Europe and plans to extend them to India. For its new CNG range in India, Mercedes is banking on institutional sales where vehicles ply largely on CNG technology.
Other luxury car makers are also not lagging behind on green plans. BMW is looking at bringing its clean hydrogen technology, which runs on water and emits only steam. The technology has not yet been commercialised.
“The high-tech BMW Hydrogen 7 is our answer to green fuels. It is an expensive technology but with rapid expansion of the luxury car market in India, there is a potential for alternative fuels in future,” said BMW India spokesperson.
CNG and other green fuels are likely to change the image of luxury cars known for guzzling fuel. With crude oil touching $135 a barrel, alternative fuel options are becoming basic characteristic of luxury cars too. With over 7,000 luxury cars sold in India in FY08, some exciting fuel options are likely to hit the segment soon.
Wednesday, December 17, 2008
SUZUKI to stand alone in Indian Markets.
SUZUKI MOTOR has bought out its local prtner Satya Sheel Khosla and family in two wheeler joint venture firm SUZUKI MOTORCYCLE INDIA (SMIPL). the Japanese automaker, which is also present in Indian four wheelers market through Maruti Suzuki, is estimated to have picked 26% stake in the motorcycle company for around Rs. 180-200 crore, making it a wholly owned company.
The transaction was completed a few days ago, said a senior executive with the two-wheeler firm on conditions of anonymity. Mr. Khosla, said: “I would not like to make any comment at this stage.” An announcement is expected next month, when Suzuki obtains all the statutory requirements.
Suzuki re-entered the Indian market in 2006, after it severed a decade long ties with Chennal-based TVS Motor Company in 1999-2000, after the five-year non-compete clause expired. It formed a new joint venture company SMIPL with Mr Khosla, who was also appointed the managing director of the firm.
Mr Khosla has been closely involved with Suzuki’s Indian operations for the last two decades and in the past was also a director on the board of Maruti Suzuki. Suzuki has invested around Rs 500 crore in the venture, while the investment by the local partner could not be ascertained.
SMIPL has a manufacturing plant spread in an area of 37 acres at Gurgaon in Haryana with an annual capacity of 1.75 lakh two-wheelers. The company is currently utilising less than one-fifth of the land and has planned a major capacity expansion to hike the annual production capacity by around 40% to over 2.5 lakh units next year.
Suzuki plans to invest Rs 150 crore more in the two-wheeler business. Currently, it sells three motorcycle models in India — Heat, Zeus & GSI150R besides a 125cc scooter Access. It has also launched two high powered super bikes, the legendary 1,340cc Hayabusa and the 1,783cc Intruder. Both these bikes are imported from Japan.
Three of these six products were launched in the past two months, and the firm plans to introduce two new products every year to consolidate its position and increase its current 1.7% market share in the 7-million strong Indian two-wheeler market. Suzuki sold 85,622 two-wheelers between April and November this year.
Suzuki already has a controlling stake of 54.2% in the largest passenger car company in India, Maruti Suzuki India. Now with a wholly-owned subsidiary, it is looking at strengthening its presence in the Indian automobile market.
The transaction was completed a few days ago, said a senior executive with the two-wheeler firm on conditions of anonymity. Mr. Khosla, said: “I would not like to make any comment at this stage.” An announcement is expected next month, when Suzuki obtains all the statutory requirements.
Suzuki re-entered the Indian market in 2006, after it severed a decade long ties with Chennal-based TVS Motor Company in 1999-2000, after the five-year non-compete clause expired. It formed a new joint venture company SMIPL with Mr Khosla, who was also appointed the managing director of the firm.
Mr Khosla has been closely involved with Suzuki’s Indian operations for the last two decades and in the past was also a director on the board of Maruti Suzuki. Suzuki has invested around Rs 500 crore in the venture, while the investment by the local partner could not be ascertained.
SMIPL has a manufacturing plant spread in an area of 37 acres at Gurgaon in Haryana with an annual capacity of 1.75 lakh two-wheelers. The company is currently utilising less than one-fifth of the land and has planned a major capacity expansion to hike the annual production capacity by around 40% to over 2.5 lakh units next year.
Suzuki plans to invest Rs 150 crore more in the two-wheeler business. Currently, it sells three motorcycle models in India — Heat, Zeus & GSI150R besides a 125cc scooter Access. It has also launched two high powered super bikes, the legendary 1,340cc Hayabusa and the 1,783cc Intruder. Both these bikes are imported from Japan.
Three of these six products were launched in the past two months, and the firm plans to introduce two new products every year to consolidate its position and increase its current 1.7% market share in the 7-million strong Indian two-wheeler market. Suzuki sold 85,622 two-wheelers between April and November this year.
Suzuki already has a controlling stake of 54.2% in the largest passenger car company in India, Maruti Suzuki India. Now with a wholly-owned subsidiary, it is looking at strengthening its presence in the Indian automobile market.
AUDI and VOLKSWAGEN cut prices of thier premium cars.
German car makers Audi and Volkswagen today cut the prices of their products by up to Rs 2.79 lakh and Rs 80,859 respectively in response to the government's move to cut CENVAT by four per cent.
Audi has reduced the prices of its luxury sedans A8, A6 and A4 by Rs 2.79 lakh, Rs 1.51 lakh and Rs 1.21 lakh, while the company's sports-utility vehicle Q7 would be cheaper by Rs 1.85 lakh, Audi India said in a statement.
"We welcome this decision by the government of India. Audi believes in providing value to the customers and hence the entire four per cent reduction will be passed on to our customers," Audi India Managing Director Benoit Tiers said.
Likewise, Volkswagen has slashed the prices of its sedan Jetta between Rs 46,086 and Rs 57,814.
The car maker's luxury sedan Passat would now be cheaper by Rs 75,674-Rs 80,859 across India, it added.
"We are happy to pass on the full benefit of the duty reduction to our valued Indian customers. Going forward, it will be our endeavour to support government initiatives aimed at arresting the economic downturn," Volkswagen Group India President and Managing Director Joerg Mueller said.
Audi has reduced the prices of its luxury sedans A8, A6 and A4 by Rs 2.79 lakh, Rs 1.51 lakh and Rs 1.21 lakh, while the company's sports-utility vehicle Q7 would be cheaper by Rs 1.85 lakh, Audi India said in a statement.
"We welcome this decision by the government of India. Audi believes in providing value to the customers and hence the entire four per cent reduction will be passed on to our customers," Audi India Managing Director Benoit Tiers said.
Likewise, Volkswagen has slashed the prices of its sedan Jetta between Rs 46,086 and Rs 57,814.
The car maker's luxury sedan Passat would now be cheaper by Rs 75,674-Rs 80,859 across India, it added.
"We are happy to pass on the full benefit of the duty reduction to our valued Indian customers. Going forward, it will be our endeavour to support government initiatives aimed at arresting the economic downturn," Volkswagen Group India President and Managing Director Joerg Mueller said.
Tuesday, December 16, 2008
In keeping with the current market slump, where car-makers look for new avenues to increase sales, GM India will roll out its used car retail initiative on January 15, 2009.
Branded as ‘Chevrolet OK’, GM will initially open 10 outlets as part of existing Chevrolet dealers in metros like Mumbai, Delhi and Bangalore.
The company will also be launching LPG version of its small car Spark and CNG version of its sedan Aveo in April and June 2009, respectively.
GM India president and MD Karl Slym told media: “We will provide customers with certified used-cars guaranteed by Chevrolet. The cars will undergo a 110 point check-up and certification.” Mr Slym said that the various expansion plans of GM India will not be impacted by the failure of the $14-billion bailout package that the Big Three—GM, Chrysler and Ford—were expecting from the government back home in the US.
Chevrolet OK, which will deal only in GM’s cars, will be rolled out next month as part of a pilot test. Adds Mr Slym:
“The results should be out by the first half of 2009, after which we will decide expansion plans for Chevrolet OK.” GM has come to realise the advantage of having a used-car business, much like other manufacturers. The organised used-car market in India has grown by over 30% this year.
BOSCH in expansion mode in India.
Bosch, the world's leading manufacturer of automotive components and leader in industrial technology, today announced expanding its business operations in India by opening more than 100 exclusive Bosch System Speciality Showrooms (BSS), a new concept in power tool market, across the country in the next two years.
"The shortlisted authorised dealers would be investing from Rs 5 lakh to 30 lakh for the BSS exclusive outlets depending upon the showroom size", Bosch Power Tools Division Country Head Vijay Pandey said.
He said that of the planned total, 12 BSS outlets would come up in South India alone. "We are also planning to establish BSS outlets in Tier-II cities of the country by 2010".
Pandey said the company would authorise select dealers from their list to set up BSS. "We are in the process of selecting dealers from our list. The selection process is based on stringent rules and regulations, which will be imposed on them for setting up the showrooms,on par with international standards", he added.
"More than 150 types of power tool products would be sold in these BSS", he said adding that the BSS dealers would also ensure best services after sales.
Pandey, who was here to inagurate a new BSS outlet, said "we have initially fixed a target of minimum Rs eight lakh sales turnover per year for each new BSS".
FIAT postpones launch of Linea.
The Indian unit of Italy's Fiat has deferred the launch of its mid-sized Linea sedan to January from December, the company said on Tuesday.
The company attributed the delay in launch to the attacks in Mumbai last month, in which 179 people were killed during a three-day siege in India's financial heart.
"We do not feel like celebrating the joy of Linea now," the company said in a statement. Fiat India Automobiles Ltd started the production of the Linea in November and was to have launched it this month.
Monday, December 15, 2008
YAMAHA india appoints new CEO as part of turn around strategy.
Yamaha Motors, the world’s second-largest motorcycle maker, has appointed another CEO for its loss-making India operations in the hope of turning it around. The India arm has now seen three chief executives at the helm within a year.
Yamaha Motor India, which used to hold a 25% share in the mid-90s, today has less than 3% of the six-million motorcycle market. The motorcycle maker has now put its manufacturing head, Y Tsuji, as the new CEO in place of Tsutomu Mabuchi, who came in January and has now been recalled by the parent company.
The company spokesman refused to comment on the new CEO, saying he has not received any official communication to this effect.
Mr Mabuchi’s predecessor was T Ishikawa, a turnaround specialist who changed Yamaha’s fortunes in Thailand. Asked to do an encore in India, he was the CEO for over two years but couldn’t revive sales. Soon after his recall to Japan in January 2008, Mr Ishikawa came back to India and joined rival Bajaj Auto as a full-time advisor in April 2008.
Yamaha’s India operations have seen exits of several key executives in the last few months. The company’s chief marketing & sales officer, T Maeda, went back to Japan last month while Sunil Vij, in-charge of re-branding quit in the middle of the year. The head of corporate planning, Om Prakash, also left in September.
The company has introduced new models, the 150 cc YZF R15 and FZ16 and two super bikes, the 1,670 cc MT 01 and 1,000 cc YZF R1. In May 2008, Yamaha Motor revamped its India operation and offered an undisclosed equity to Japan’s third-largest trading house, Mitsui Corporation. It has outlined a planned capital investment of Rs 560 crore for new initiatives in marketing and products.
Yamaha Motor India, which used to hold a 25% share in the mid-90s, today has less than 3% of the six-million motorcycle market. The motorcycle maker has now put its manufacturing head, Y Tsuji, as the new CEO in place of Tsutomu Mabuchi, who came in January and has now been recalled by the parent company.
The company spokesman refused to comment on the new CEO, saying he has not received any official communication to this effect.
Mr Mabuchi’s predecessor was T Ishikawa, a turnaround specialist who changed Yamaha’s fortunes in Thailand. Asked to do an encore in India, he was the CEO for over two years but couldn’t revive sales. Soon after his recall to Japan in January 2008, Mr Ishikawa came back to India and joined rival Bajaj Auto as a full-time advisor in April 2008.
Yamaha’s India operations have seen exits of several key executives in the last few months. The company’s chief marketing & sales officer, T Maeda, went back to Japan last month while Sunil Vij, in-charge of re-branding quit in the middle of the year. The head of corporate planning, Om Prakash, also left in September.
The company has introduced new models, the 150 cc YZF R15 and FZ16 and two super bikes, the 1,670 cc MT 01 and 1,000 cc YZF R1. In May 2008, Yamaha Motor revamped its India operation and offered an undisclosed equity to Japan’s third-largest trading house, Mitsui Corporation. It has outlined a planned capital investment of Rs 560 crore for new initiatives in marketing and products.
TOYOTA cuts production in India by 30%
World's largest carmaker Toyota on Moday said it has cut production in India by 30 per cent this month, but is not holding back its planned investments of Rs 3,200 crore in the country.
The company, which operates in India through a joint venture with Kirloskar Group -- Toyota Kirloskar Motor (TKM), said the slowdown in the auto market has forced it to revise its sales target in India for this year.
"Everywhere else in the world, Toyota has put on hold all investments for expansions, except India," TKM Managing Director Hiroshi Nakagawa told reporters here.
The company, which produced 2,886 units in November, has decided to cut its production in the current month due to slowdown in the domestic automart.
"We will be producing 30 per cent less in December due to falling sales. We will decide about the future productions for January and February depending on the market condition for this month," Nakagawa said.
He said the company has revised the sales target for this year on account of falling sales.
"Our latest challenge is to reach last year's sales volume," Nakagawa said.
TKM had announced a sales target of 60,000 units for 2008. It had sold 54,181 cars in 2007 in the Indian market.
The company posted a fall of 48.55 per cent in sales in November this year at 2,087 units compared with 4,056 units in the same month last year.
The company is also planning to launch the CNG version of its utility vehicle 'Innova'.
"Currently, we are conducting the trial run of CNG 'Innova'. We are hopeful of commercially launching the vehicle by the end of January, 2009," TKM Deputy Managing Director Sandeep Singh said.
The company, which operates in India through a joint venture with Kirloskar Group -- Toyota Kirloskar Motor (TKM), said the slowdown in the auto market has forced it to revise its sales target in India for this year.
"Everywhere else in the world, Toyota has put on hold all investments for expansions, except India," TKM Managing Director Hiroshi Nakagawa told reporters here.
The company, which produced 2,886 units in November, has decided to cut its production in the current month due to slowdown in the domestic automart.
"We will be producing 30 per cent less in December due to falling sales. We will decide about the future productions for January and February depending on the market condition for this month," Nakagawa said.
He said the company has revised the sales target for this year on account of falling sales.
"Our latest challenge is to reach last year's sales volume," Nakagawa said.
TKM had announced a sales target of 60,000 units for 2008. It had sold 54,181 cars in 2007 in the Indian market.
The company posted a fall of 48.55 per cent in sales in November this year at 2,087 units compared with 4,056 units in the same month last year.
The company is also planning to launch the CNG version of its utility vehicle 'Innova'.
"Currently, we are conducting the trial run of CNG 'Innova'. We are hopeful of commercially launching the vehicle by the end of January, 2009," TKM Deputy Managing Director Sandeep Singh said.
Sunday, December 14, 2008
MARUTI turns 25.
At a time when the Indian automobile industry is passing through one of its worst phases, the country's largest car-maker, Maruti Suzuki India, will celebrate its 25th anniversary and is aiming to be a global player.
"Twenty-five years ago, when we set out on our journey, the objective was to modernise the Indian automotive industry and bring about a change in personal transportation. I can say proudly we have achieved that," Maruti Suzuki India Chairman R C Bhargava told PTI.
He said in the 25 years to come, the company's objective would to be to take its mission forward and become a global player.
"Now we want to be a global player in every sense ... from research and development and designing cars to manufacturing; we want to be among the best in the world," he said.
Bhargava said although the current market conditions are tough, they would not deter the company in striving to achieve its goals.
"The future will be even more challenging, but we are up for it," he added.
Since the rollout of the first Maruti 800 (M800) from its Gurgaon plant on December 14, 1983, the company has so far sold over 70 lakh cars of 12 models with over 100 variants, with the M800 alone accounting for 27,36,046 units, of which 25,43,132 units were in the domestic market and the rest abroad.
"Twenty-five years ago, when we set out on our journey, the objective was to modernise the Indian automotive industry and bring about a change in personal transportation. I can say proudly we have achieved that," Maruti Suzuki India Chairman R C Bhargava told PTI.
He said in the 25 years to come, the company's objective would to be to take its mission forward and become a global player.
"Now we want to be a global player in every sense ... from research and development and designing cars to manufacturing; we want to be among the best in the world," he said.
Bhargava said although the current market conditions are tough, they would not deter the company in striving to achieve its goals.
"The future will be even more challenging, but we are up for it," he added.
Since the rollout of the first Maruti 800 (M800) from its Gurgaon plant on December 14, 1983, the company has so far sold over 70 lakh cars of 12 models with over 100 variants, with the M800 alone accounting for 27,36,046 units, of which 25,43,132 units were in the domestic market and the rest abroad.
GM slashed prices significantly..!!
Automobile manufacturer General Motors on Wednesday cut the price of its vehicles by up to Rs 30,500, following the government reducing excise duty.
With immediate effect, the company has reduced the prices of its small car 'Spark' by Rs 8,000-Rs 10,200, GM India Vice President P Balendran told media.
The prices of hatchback 'Aveo U-VA' has been cut between Rs 12,000 and Rs 16,000, while that of entry-level sedan 'Aveo' is slashed by Rs 16,700-Rs 21,000.
Likewise, the company's multi-utility vehicle 'Tavera' would be cheaper by Rs 16,500, Balendran said.
"These price cuts are in addition to the discounts offered by the company between Rs 20,000 and Rs 58,000 on our different models," he added.
With immediate effect, the company has reduced the prices of its small car 'Spark' by Rs 8,000-Rs 10,200, GM India Vice President P Balendran told media.
The prices of hatchback 'Aveo U-VA' has been cut between Rs 12,000 and Rs 16,000, while that of entry-level sedan 'Aveo' is slashed by Rs 16,700-Rs 21,000.
Likewise, the company's multi-utility vehicle 'Tavera' would be cheaper by Rs 16,500, Balendran said.
"These price cuts are in addition to the discounts offered by the company between Rs 20,000 and Rs 58,000 on our different models," he added.
Saturday, September 13, 2008
Chrysler LLC plans to introduce seven major vehicle models in 2010 and remains on track to meet its internal financial targets for 2008, Vice Chairman and President Jim Press told reporters on Wednesday.
Press, who was marking his first anniversary with the struggling US automaker, also said the potential government support of $25 billion or more for automakers as loan guarantees could help accelerate the development of advance technologies.
"For a beginning, $25 billion is an appropriate place to start," he told reporters, adding that the loan guarantees would not constitute a bailout of struggling US-based car makers and parts suppliers.
Press said Chrysler has been working on developing a range of electric-drive vehicles, including plug-in hybrid cars, but declined to specify a time-line for the launch of such vehicles. "We are very seriously looking at the development of electric cars," he said.
"I think the battery technology is moving forward, and we have made good progress in adapting these new technologies and bringing them from the laboratory to the street." Press also said the automaker is developing a mid-size or what's known as a "D segment" vehicle but declined to give details.
Like larger competitors General Motors Corp and Ford Motor Co, Chrysler -- majority-owned by private equity firm Cerberus Capital Management -- has been hit hard by the sharp decline in sales of pickup trucks, SUVs and vans that followed the rise in gas prices this year.
Press said the automaker was still "on target" to meet its internal financial goals for 2008. "We haven't fallen off the table yet," he said.
The company, which has released limited financial data since Cerberus bought it from Daimler AG about a year ago, ended June with $11.7 billion in cash and had earnings before interest, tax, depreciation and amortization of $1.1 billion in the first half of the year.
Saturday, August 16, 2008
Motor-bike powered by compressed air!!
A motorcycle that is powered by compressed air has been developed by researchers at the National Central University in Taiwan.
Yu-Ta Shen and Yean-Ren Hwang, the researchers behind this discovery, say that such motorcycles may prove very helpful in fighting air pollution.
They have revealed that the current prototype can hold a little more than two and a half gallons of compressed air, which would carry the bike and driver about three-quarters of a mile.
Hwang said that the tank size will be increased three to four times in the future, and the maximum pressure that it can hold will be increased so that the motorcycle could go almost 20 miles without a refill, "which would be adequate for usage in the city. We would need an air compressor to refuel, most likely at a fuelling station."
A research article published in the journal Applied Energy suggests that researchers elsewhere are also working on vehicles that would run on compressed air rather than gasoline or diesel fuel.
"We have a vehicle that will address that market, but it's not a motorcycle," Discovery News quoted Shiva Vencat, Executive Vice President of MDI, Inc. in Newport, N.Y., and CEO of Zero Pollution Motors, as saying.
Though he said that he could not release any more information, he did reveal that it would be a small vehicle.
He said that they Zero Pollution Motors is also planning to bring a six-seater air-powered car to the U.S. market after competing in the Automotive X Prize race in September 2009.
The car will run on compressed air only when travelling under 35 miles per hour.
Vencat expects that fueling stations will arise as the car gains popularity.
"The good thing is you could put a compressed air station on campuses, in malls," he said. "You don't have the security situation that you do with gasoline."
ZPM plans to start a plant to manufacture the cars by late 2010.
Yu-Ta Shen and Yean-Ren Hwang, the researchers behind this discovery, say that such motorcycles may prove very helpful in fighting air pollution.
They have revealed that the current prototype can hold a little more than two and a half gallons of compressed air, which would carry the bike and driver about three-quarters of a mile.
Hwang said that the tank size will be increased three to four times in the future, and the maximum pressure that it can hold will be increased so that the motorcycle could go almost 20 miles without a refill, "which would be adequate for usage in the city. We would need an air compressor to refuel, most likely at a fuelling station."
A research article published in the journal Applied Energy suggests that researchers elsewhere are also working on vehicles that would run on compressed air rather than gasoline or diesel fuel.
"We have a vehicle that will address that market, but it's not a motorcycle," Discovery News quoted Shiva Vencat, Executive Vice President of MDI, Inc. in Newport, N.Y., and CEO of Zero Pollution Motors, as saying.
Though he said that he could not release any more information, he did reveal that it would be a small vehicle.
He said that they Zero Pollution Motors is also planning to bring a six-seater air-powered car to the U.S. market after competing in the Automotive X Prize race in September 2009.
The car will run on compressed air only when travelling under 35 miles per hour.
Vencat expects that fueling stations will arise as the car gains popularity.
"The good thing is you could put a compressed air station on campuses, in malls," he said. "You don't have the security situation that you do with gasoline."
ZPM plans to start a plant to manufacture the cars by late 2010.
Bajaj in a tough position.
It's going to be a tough ride for Bajaj Auto, one of the oldest two-wheeler makers of the country. While the company has drawn up an ambitious plan to roll out a Tata Nano-type low-cost car, for time being, it needs to fight out a constant erosion of market share in bread-and-butter motorcycle segment.
And it's a matter of concern for Bajaj Auto, considering the fact that bigger rival Hero Honda is gaining ground.
Bajaj, which at one time was closing in on Hero Honda, has seen its grip on the bike market going down by close to 6% in just 15 months. Its share slipped to 28.7% at the end of 2007-08 and further down to 26% at the end of the first quarter (April-June) of 2008-09, from 31.7% in 2006-07.
Hero Honda strengthened its hold in the same period, growing from 48.1% in 2006-07 to 54.5% by 2007-08 and a significant 57.2% by the end of April-June 2008, according to Society of Indian Automobile Manufacturers (Siam) data. So what ails Bajaj Auto? Analysts appear unanimous in their views that a premature shift of focus from the crucial sub-125cc segment to heavier ones, is the prime reason, even though Bajaj Auto's 2-wheeler CEO S Sridhar refused to buy the argument.
While Bajaj has only the Platina as its main product in the segment, Hero Honda has four models - Splendor, Passion CD Dawn and CD Deluxe.
"Just as Bajaj is focussing on higher-cc bikes, it is not refreshing its entry-level models around 100-cc engines. This is among the reasons behind the decline in its market share," Vaishali Jajoo, auto analyst at Angel Broking, said.
Another analyst said 100cc still promises a good market and ignoring it may not be good in the short-term, though it could work in the long-term.
A look at sales numbers of the companies makes similar revelations. While Bajaj sold 12.64 lakh units in the sub-125cc category in 2006-07, the numbers came down to 7.35 lakh units in 2007-08, showing a fall of 41.7%, though a part of it can also be attributed to the downturn in the industry.
And, it could not make up for this loss in the 125cc-plus segment where its sales in the same period increased from 8.14 lakh units to 9.22 lakh units, a growth of 13.1%, despite introducing a new 125cc model XCD, from which it expected big volumes. This could well explain the loss of 3% market share in just one year.
On the other hand, Hero Honda managed to beat the downturn as its sub-125cc segment saw a marginal 2.4% fall in 2007-08, on a bigger base. It sold 29.66 lakh units last fiscal against 30.41 lakh units in 2006-07. Importantly, the company's 125cc-plus portfolio grew 67.7% to 1.77 lakh units, though on a lower base.
However, Sridhar maintained the trend is "not worrying" as the share of 100cc bikes in overall sales was decreasing. "It used to be around 91-92% at one time, but has come down to around 65% last fiscal. So we are not worried as we are losing market share only in a declining segment and gaining ground in the 125cc-plus segment, which is a growing market."
Maintaining the company's strategy of low focus on 100cc, he said there was "no question of making investments in a segment that was not profitable and declining." Sridhar said Bajaj expects its numbers to increase significantly when the company introduces three new variants on the XCD platform later this fiscal.
Anil Dua, marketing Head of Hero Honda, said the company would continue to focus on the 100cc segment, while also concentrating on executive and premium market. "We feel that all the segments would grow, including entry-level. Our new launches will cater to all the segments," he said.
And it's a matter of concern for Bajaj Auto, considering the fact that bigger rival Hero Honda is gaining ground.
Bajaj, which at one time was closing in on Hero Honda, has seen its grip on the bike market going down by close to 6% in just 15 months. Its share slipped to 28.7% at the end of 2007-08 and further down to 26% at the end of the first quarter (April-June) of 2008-09, from 31.7% in 2006-07.
Hero Honda strengthened its hold in the same period, growing from 48.1% in 2006-07 to 54.5% by 2007-08 and a significant 57.2% by the end of April-June 2008, according to Society of Indian Automobile Manufacturers (Siam) data. So what ails Bajaj Auto? Analysts appear unanimous in their views that a premature shift of focus from the crucial sub-125cc segment to heavier ones, is the prime reason, even though Bajaj Auto's 2-wheeler CEO S Sridhar refused to buy the argument.
While Bajaj has only the Platina as its main product in the segment, Hero Honda has four models - Splendor, Passion CD Dawn and CD Deluxe.
"Just as Bajaj is focussing on higher-cc bikes, it is not refreshing its entry-level models around 100-cc engines. This is among the reasons behind the decline in its market share," Vaishali Jajoo, auto analyst at Angel Broking, said.
Another analyst said 100cc still promises a good market and ignoring it may not be good in the short-term, though it could work in the long-term.
A look at sales numbers of the companies makes similar revelations. While Bajaj sold 12.64 lakh units in the sub-125cc category in 2006-07, the numbers came down to 7.35 lakh units in 2007-08, showing a fall of 41.7%, though a part of it can also be attributed to the downturn in the industry.
And, it could not make up for this loss in the 125cc-plus segment where its sales in the same period increased from 8.14 lakh units to 9.22 lakh units, a growth of 13.1%, despite introducing a new 125cc model XCD, from which it expected big volumes. This could well explain the loss of 3% market share in just one year.
On the other hand, Hero Honda managed to beat the downturn as its sub-125cc segment saw a marginal 2.4% fall in 2007-08, on a bigger base. It sold 29.66 lakh units last fiscal against 30.41 lakh units in 2006-07. Importantly, the company's 125cc-plus portfolio grew 67.7% to 1.77 lakh units, though on a lower base.
However, Sridhar maintained the trend is "not worrying" as the share of 100cc bikes in overall sales was decreasing. "It used to be around 91-92% at one time, but has come down to around 65% last fiscal. So we are not worried as we are losing market share only in a declining segment and gaining ground in the 125cc-plus segment, which is a growing market."
Maintaining the company's strategy of low focus on 100cc, he said there was "no question of making investments in a segment that was not profitable and declining." Sridhar said Bajaj expects its numbers to increase significantly when the company introduces three new variants on the XCD platform later this fiscal.
Anil Dua, marketing Head of Hero Honda, said the company would continue to focus on the 100cc segment, while also concentrating on executive and premium market. "We feel that all the segments would grow, including entry-level. Our new launches will cater to all the segments," he said.
Wednesday, August 13, 2008
New HONDA CITY to be expected 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 costlier 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, 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.
According to sources in the vendor industry, the local market launch will follow the City’s launch in Thailand, expected sometime in early September. The new City will be priced much higher than the current model and could be available in three-to-four trims at different price points carrying different configurations.
However, the competitively priced current City model will complement the new car for some time. “Honda is following a two-pronged strategy. It will continue to sell the current model, which will serve as its entry-level premium car, while the new City will cater to the upper premium sedan market,” said a vendor source. Honda has sold 2.3 lakh units of the current City model in India.
The new City will be pitted against the yet-to-be-launched Fiat Linea, Hyundai Elantra and Toyota’s new Corolla, which is also expected to hit the market soon. The new City is expected to reinforce Honda’s top slot in the 2.25-lakh mid-size car market in India.
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, 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.
According to sources in the vendor industry, the local market launch will follow the City’s launch in Thailand, expected sometime in early September. The new City will be priced much higher than the current model and could be available in three-to-four trims at different price points carrying different configurations.
However, the competitively priced current City model will complement the new car for some time. “Honda is following a two-pronged strategy. It will continue to sell the current model, which will serve as its entry-level premium car, while the new City will cater to the upper premium sedan market,” said a vendor source. Honda has sold 2.3 lakh units of the current City model in India.
The new City will be pitted against the yet-to-be-launched Fiat Linea, Hyundai Elantra and Toyota’s new Corolla, which is also expected to hit the market soon. The new City is expected to reinforce Honda’s top slot in the 2.25-lakh mid-size car market in India.
Chrysler accuses M&M for design copy.
Mahindra and Mahindra (M&M) and Chrysler are embroiled in a dispute over the front grill design and shape of the Scorpio. Chrysler alleges that M&M copied the design from its automobile marquee Jeep. There is speculation that Chrysler could initiate legal action against M&M.
The two companies were also locked in an unrelated dispute in South Africa in June this year. The South African arm of Chrysler disputed an M&M ad saying it owns the trademark to the world’s oldest sport utility vehicle, jeep, which is World War II vintage. M&M insisted that it used the word ‘jeep’ with a lower case to denote the generic name for the kind of multi-purpose vehicles it makes. The Advertising Standards Authority of South Africa was later reported to be looking into the matter.
Sources in Mahindra said it had launched a heritage campaign in South Africa focused on the Willys Jeep, a famous utility vehicle which was used in the 1940s. Chrysler contacted M&M and was firm that M&M could not use the word, Jeep. Chrysler pointed out that till 1994, M&M could use the word, Jeep. But after 1994, it belonged only to Chrysler.
M&M and Chrysler are understood to be in discussions to sort out the dispute over the Scorpio design. A source in M&M said “this is nothing of significance and nothing legal. We had one casual conversation with some official in Chrysler. They said the Scorpio grill and the Jeep Wrangler grill look similar. So, can you do something about it?”
With M&M gearing up for the launch of its SUV Scorpio in the US market, any legal action by Chrysler could hold up its plan. M&M wants to cash in on the sale of diesel-powered vehicles in the US as petrol-guzzling SUVs are facing a tough time right now. While Chrysler officials refused to comment on the issue, an M&M spokesperson said they are in dialogue with Chrysler. “While we don't agree with Chrysler’s claims, both companies are looking to address the concerns,” the spokesperson said.
M&M’s ‘Jeep’ connections are decades old. When M&M founders, brothers JC Mahindra and KC Mahindra, started out in 1945 just after the war, they began by assembling completely knocked-down (CKD) Willys Jeeps imported from the US. Back then, the local content was minimal. But by the time M&M approached the government for a licence manufacturing Jeeps, the localisation levels had gone up substantially.
By 1954, the Willys CJ3B, a civilian version of the famed military vehicle, was being made under licence in India. M&M wasn’t the only company to bag the Jeep licence.
The two companies were also locked in an unrelated dispute in South Africa in June this year. The South African arm of Chrysler disputed an M&M ad saying it owns the trademark to the world’s oldest sport utility vehicle, jeep, which is World War II vintage. M&M insisted that it used the word ‘jeep’ with a lower case to denote the generic name for the kind of multi-purpose vehicles it makes. The Advertising Standards Authority of South Africa was later reported to be looking into the matter.
Sources in Mahindra said it had launched a heritage campaign in South Africa focused on the Willys Jeep, a famous utility vehicle which was used in the 1940s. Chrysler contacted M&M and was firm that M&M could not use the word, Jeep. Chrysler pointed out that till 1994, M&M could use the word, Jeep. But after 1994, it belonged only to Chrysler.
M&M and Chrysler are understood to be in discussions to sort out the dispute over the Scorpio design. A source in M&M said “this is nothing of significance and nothing legal. We had one casual conversation with some official in Chrysler. They said the Scorpio grill and the Jeep Wrangler grill look similar. So, can you do something about it?”
With M&M gearing up for the launch of its SUV Scorpio in the US market, any legal action by Chrysler could hold up its plan. M&M wants to cash in on the sale of diesel-powered vehicles in the US as petrol-guzzling SUVs are facing a tough time right now. While Chrysler officials refused to comment on the issue, an M&M spokesperson said they are in dialogue with Chrysler. “While we don't agree with Chrysler’s claims, both companies are looking to address the concerns,” the spokesperson said.
M&M’s ‘Jeep’ connections are decades old. When M&M founders, brothers JC Mahindra and KC Mahindra, started out in 1945 just after the war, they began by assembling completely knocked-down (CKD) Willys Jeeps imported from the US. Back then, the local content was minimal. But by the time M&M approached the government for a licence manufacturing Jeeps, the localisation levels had gone up substantially.
By 1954, the Willys CJ3B, a civilian version of the famed military vehicle, was being made under licence in India. M&M wasn’t the only company to bag the Jeep licence.
Monday, August 11, 2008
Hero Honda to raise prices of some bikes.
Hero Honda Motors Ltd, India's top motorbike maker, has raised prices of some models to partially offset rising costs of raw materials, the company said.
Prices of its entry-level 100 cc motorbikes have been raised by up to 850 rupees ($20), it said in a statement that did not give details of price increases on other models.
Japan's Honda Motor Co and India's Hero Group hold 26 per cent each in Hero Honda.
Vehicle makers in India have recently raised prices by up to 3 per cent to offset higher costs of materials such as steel, even as rising interest rates and high fuel prices have slowed sales in Asia's third-biggest economy.
Prices of its entry-level 100 cc motorbikes have been raised by up to 850 rupees ($20), it said in a statement that did not give details of price increases on other models.
Japan's Honda Motor Co and India's Hero Group hold 26 per cent each in Hero Honda.
Vehicle makers in India have recently raised prices by up to 3 per cent to offset higher costs of materials such as steel, even as rising interest rates and high fuel prices have slowed sales in Asia's third-biggest economy.
Sunday, August 10, 2008
Indian riders still don't prefer super bikes!!!
Superbikes may be fast. But in India, speed doesn’t matter. After big-ticket bike makers such as Ducati and Yamaha failed to make an impact with their much-hyped superbike launches, it is now the turn of domestic biggie Bajaj Auto to shy away from the fat cat segment of the two-wheeler market.
Sample this: In the last seven months, India Yamaha Motor managed to sell only 73 of its superbikes that are priced at around Rs 10.5 lakh. And for the Japanese bike maker, superbikes barely contribute around 1% to its total revenues in India. Similarly, Italy’s Ducati Motor Holding that hit Indian shores with its full range of motorcycles — priced between Rs 15 and Rs 50 lakh — has just managed to snap up around 22 bookings in the last three months.
And going by what Bajaj has up its sleeves, it may have got its strategy right. Bajaj Auto GM (marketing & Probiking) Amit Nandi says, “India is still not ready for superbikes. We don’t foresee a major market shift towards large-capacity bikes for another two years. And even then we are interested in launching only middleweight machines that will be priced in the lower price bracket of Rs 5-10 lakh.”
This is what Ducati Motor Holding CEO Gabriele Del Torchio had to say on the issue. “Our bikes are expensive because of the high quality components that go into making them. So, we don’t see big volumes for a long time to come. Around 50 odd units annually are what we are looking for at the moment”, he added.
But volumes are important. Ask any two-wheeler maker. And with almost all the players such as Honda Motorcycle and Scooters India and Suzuki Motorcycle India planning to join the fray to launch large-hearted motorcycles here, bike makers have to tread carefully on the thin line separating ambition and practicality.
Case in point: India’s second largest bike maker Bajaj Auto’s fascination with the mass-premium category, which it plans to tap into with the Kawasaki Ninja 250cc shortly. And here too, it plans to play safe with pricing, as the Ninja will be imported as a CKD unit (completely knocked down) to dodge steep import duties of around 114%. “It will be very competitively priced,” emphasises Mr Nandi. And if this is anything to go by, it’s time for close competitor Hero Honda, which sells the 220cc Karizma, to change gears fast.
Talking about Bajaj’s association with KTM Power Sports— Europe’s second largest bike maker—in which his company holds a 25% stake, Mr Nandi reveals that the association will not go beyond developing smaller capacity machines together, perhaps 125cc-250cc motorcycles.
Skoda to upgrade technology for Fabia!!
Czech automaker Skoda said on Saturday that it is upgrading its technology in two petrol variants of Fabia car for better fuel efficiency. "We have decided to upgrade our current technology in two petrol variants of Fabia so that our customers get better fuel efficiency from our cars," Skoda said in a statement.
Skoda said it is going ahead with the technology upgradation because of "fuel inconsistency" faced by the country. "We at SkodaIndia always believe in keeping our customers' interests at the forefront of our decision making," the statement said. There has been a report in the media that Skoda is withdrawing petrol version of the Fabia hatchback to rectify a technical glitch affecting the car's fuel performance.
The company said it is "not recalling the Fabia petrol cars". "We are only improving the engine performance and fuel consumption through a software enhancement. This will happen at the time of routine service or earlier if the customer chooses," it said.
Saturday, August 9, 2008
India to get its first bio-diesel pump in September.
In winter 2005, Chief Minister Narendra Modi was at the Gujarat Agriculture University campus in Navsari, riding a tractor with a difference - it ran on bio-diesel. Come September, that bio-diesel will be available at a pump for the first time in India.
The bio-diesel production, from Jatropha plants, is the brainchild of 40-year-old Dharmendra Parekh, chairman and managing director of Aditya Aromedic and Bio-Energy. Since April, the firm has been producing bio-diesel from the jatropha plant.
Registered in 2005 and set up with a capital outlay of Rs 5 crore, the company produces 17,000 litres of bio-diesel per day at its 140,000-sq ft plant located in Tarsadi village on the Navsari-Bardoli highway in Navsari district.
The bio-diesel is sold at Rs 38.90 per litre while the price of regular diesel is Rs 39.20 per litre and that of premium diesel Rs 40.40.
The firm has been pre-selling its entire output every day since April. "We don't have to do any marketing. On the contrary I take a deposit of Rs 5,00,000 from all my customers and everyone irrespective of the quantity purchased has to pay the full amount in advance. And the delivery is done only after 20 days," says Parekh.
"I have at least five customers waiting in the queue, each of whom has a daily requirement of over 500 tonnes of bio-diesel." Right now, the fuel is supplied from two depots - one at Navsari and other at Mehsana in north Gujarat.
The clientele is spread over Ahmedabad, Nadiad, Vadodara and north Gujarat, Mumbai and Delhi.
Importantly, diesel vehicles do not need to modify their engines to use bio-diesel. "I have been using my own bio-diesel in my Tata Indica diesel car for the past nine months and it runs very smoothly and also gives me a mileage of 21 to 22 km on the highway," says Parekh, a graduate in computer science and master in bio-informatics. "There is no problem at all even if you keep on changing the fuel from regular diesel to bio-diesel."
Parekh also claims that his bio-diesel was much better in quality than most of the premium diesel brands being hawked by the oil majors.
Heavy discounts from car companies to attract customers.
It’s raining discounts in Motown. Fighting sluggish demand and rising interest rates, car companies are doling out huge rebates to lure customers into their showrooms. In fact, the discounts are now no longer seasonal and continue right through the year.
Maruti Suzuki is offering a discount of up to Rs 47,000 under its ‘Freedom on Wheels’ package. Its top-selling hatchback Alto comes with a rebate of Rs 30,000 in August while the newly launched Maruti 800 Duo (the LPG variant) comes with a Rs 18,500 discount.
“We have increased discounts on our cars. Alto now comes with an additional exchange bonus of Rs 10,000 while the rebate on Zen Estilo has been increased by Rs 4,000 over July,” said an MSI executive. The South Korean car major, Hyundai Motor India, has launched ‘Freedom for Life’, offering customised packages of up to Rs 30,00 in rebates.
Its largest selling car Santro carries an exchange bonus of Rs 15,000, along with a free insurance package. Hyundai’s senior V-P (sales and marketing) Arvind Saxena said,”These price discounts are basically cushioning the high interest rates, which has almost doubled in the past 10 months. These cash discounts make huge value to customers and make the price attractive for them.”
Tata Motors dealers have increased the discount by Rs 10,000 over the last one month. They are now offering Rs 30,000 cash discount on the Indica hatchback and Indigo sedan range. A token discount of Rs 5,000 also comes on the recently launched Sumo Grande.
The basic idea to increase discounts comes from the fact that car sales remained flat in July for the first time this fiscal, forcing car makers to start new marketing initiatives to offload their piling inventories. Special price discounts on Spark, which started a few months ago, still continue.
“We plan to sell Spark at the discounted price of Rs 2.66 lakh till the end of August. The basic idea is to offer greater value to customers. Besides, we are also continuing with other standard discount packages on our entire range,” said General Motors vice-president (sales and marketing) Akush Arora.
Maruti Suzuki is offering a discount of up to Rs 47,000 under its ‘Freedom on Wheels’ package. Its top-selling hatchback Alto comes with a rebate of Rs 30,000 in August while the newly launched Maruti 800 Duo (the LPG variant) comes with a Rs 18,500 discount.
“We have increased discounts on our cars. Alto now comes with an additional exchange bonus of Rs 10,000 while the rebate on Zen Estilo has been increased by Rs 4,000 over July,” said an MSI executive. The South Korean car major, Hyundai Motor India, has launched ‘Freedom for Life’, offering customised packages of up to Rs 30,00 in rebates.
Its largest selling car Santro carries an exchange bonus of Rs 15,000, along with a free insurance package. Hyundai’s senior V-P (sales and marketing) Arvind Saxena said,”These price discounts are basically cushioning the high interest rates, which has almost doubled in the past 10 months. These cash discounts make huge value to customers and make the price attractive for them.”
Tata Motors dealers have increased the discount by Rs 10,000 over the last one month. They are now offering Rs 30,000 cash discount on the Indica hatchback and Indigo sedan range. A token discount of Rs 5,000 also comes on the recently launched Sumo Grande.
The basic idea to increase discounts comes from the fact that car sales remained flat in July for the first time this fiscal, forcing car makers to start new marketing initiatives to offload their piling inventories. Special price discounts on Spark, which started a few months ago, still continue.
“We plan to sell Spark at the discounted price of Rs 2.66 lakh till the end of August. The basic idea is to offer greater value to customers. Besides, we are also continuing with other standard discount packages on our entire range,” said General Motors vice-president (sales and marketing) Akush Arora.
Friday, August 8, 2008
JD Power: Toyota's Lexus is most dependable vehicle!!
Lexus once again stands alone atop a closely watched list of vehicle dependability after Buick slipped from the No. 1 spot it shared with the Japanese luxury brand last year, J D Power and Associates said Thursday.
It's the 14th straight year Toyota Motor Corp's high-end brand has held the highest ranking in the annual study, which measures problems experienced by the original owners of vehicles after three years. Lexus had 120 problems per 100 vehicles, down from 145 last year.
"That's a pretty good track record," said Dave Sargent, J D Power's vice president of automotive research. ``They benefited to some degree ... where a couple of their very important models in their second year on the market the ES and the RX, which together account for over two-thirds of Lexus sales both improved significantly.''
Ford Motor Co's Mercury brand ranked second, followed by General Motors Corp's Cadillac. Toyota was fourth, and Honda Motor Co's Acura luxury brand was fifth. Land Rover, which Ford sold this year to India's Tata Motors Ltd, was the worst-performing brand, with 344 problems.
The industry average improved to 206 problems per 100 vehicles, from 216 a year ago.
Buick, owned by GM, fell to sixth place in this year's study with 163 problems, although its now-discontinued Buick Century was the top-ranked vehicle in the midsize car segment.
"The lower score is largely due to vehicles that are no longer in the marketplace," Sargent said. "The vehicles are still out there, so the study is still relevant. But obviously they had some problems."
GM's Saab brand was the most improved in this year's study, improving to 254 problems from 319. More than 60 percent of the 38 brands in the study improved from last year.
The No. 1 problem cited in the study, based on responses from more than 52,000 original owners of 2005 model-year vehicles, was wind noise, followed by noisy brakes, pulling to the left or right, dashboard issues and window fogging. The study weights all problems equally.
Vehicle dependability has been steadily improving across the industry overall, Sargent said. Since the 2005 study, the industry average has improved from 237 problems per 100 vehicles to 206 this year. That equates to slightly more than two problems per vehicle.
Furthermore, the types of problems reported have trended toward "soft" problems, like funny noises or aesthetic wear, in place of "hard" problems such as major technical defects, Sargent said.
It's the 14th straight year Toyota Motor Corp's high-end brand has held the highest ranking in the annual study, which measures problems experienced by the original owners of vehicles after three years. Lexus had 120 problems per 100 vehicles, down from 145 last year.
"That's a pretty good track record," said Dave Sargent, J D Power's vice president of automotive research. ``They benefited to some degree ... where a couple of their very important models in their second year on the market the ES and the RX, which together account for over two-thirds of Lexus sales both improved significantly.''
Ford Motor Co's Mercury brand ranked second, followed by General Motors Corp's Cadillac. Toyota was fourth, and Honda Motor Co's Acura luxury brand was fifth. Land Rover, which Ford sold this year to India's Tata Motors Ltd, was the worst-performing brand, with 344 problems.
The industry average improved to 206 problems per 100 vehicles, from 216 a year ago.
Buick, owned by GM, fell to sixth place in this year's study with 163 problems, although its now-discontinued Buick Century was the top-ranked vehicle in the midsize car segment.
"The lower score is largely due to vehicles that are no longer in the marketplace," Sargent said. "The vehicles are still out there, so the study is still relevant. But obviously they had some problems."
GM's Saab brand was the most improved in this year's study, improving to 254 problems from 319. More than 60 percent of the 38 brands in the study improved from last year.
The No. 1 problem cited in the study, based on responses from more than 52,000 original owners of 2005 model-year vehicles, was wind noise, followed by noisy brakes, pulling to the left or right, dashboard issues and window fogging. The study weights all problems equally.
Vehicle dependability has been steadily improving across the industry overall, Sargent said. Since the 2005 study, the industry average has improved from 237 problems per 100 vehicles to 206 this year. That equates to slightly more than two problems per vehicle.
Furthermore, the types of problems reported have trended toward "soft" problems, like funny noises or aesthetic wear, in place of "hard" problems such as major technical defects, Sargent said.
BMW v/s MERCEDES in top luxury segment.
The luxury car market is heading for a German finish. The two luxury marques—Mercedes-Benz and BMW—are racing against each other to get the coveted top slot in the segment.
BMW India, on the back of 70% growth in sales, is vying to clinch the top slot from Mercedes-Benz, it’s worldwide bete noire, to emerge as the leader of the luxury car market in India. BMW has reduced its sales gap with Mercedes to 411 cars in the January-July period this year from 1,104 cars in 2007.
The company has also increased its sales target to 2,800 from the earlier 2,000 cars for 2008, and aims to surpass Mercedes-Benz sales in India by 2010.
BMW India president Peter Kronschnabl told ET: “Our success in the first year has propelled us to increase our sales target. We have set a mid-term aim to gain leadership position in the Indian luxury car market. We have surpassed all our sales targets, and from the initially projected sales of about 1,000 cars for 2007, we sold 1,387 cars last year.” Mercedes-Benz, which has been operating in India for the past 10 years, has set a target of 3,000 cars for 2008. Its sales increased 33% to 2,174 cars in the January-July period from 1,454 cars sold in the same period last year. The company had sold 2,491 cars in 2007.
Mercedes-Benz India head (corporate affairs) Suhas Kadlaskar said: “Despite a decade-long presence, we are maintaining a healthy growth in sales. It is normal for a new player to gain good numbers initially. We have a deep penetration in the market with a large distribution network spanning 28 cities to take care of any competition in the luxury car segment.”
GM to spend $900 on restructuring.
General Motors Corp said on Friday it expects to spend $900 million over the next few years to adjust its manufacturing capacity, including closing plants and reducing output.
The No. 1 US automaker, in its quarterly report filed with the US Securities and Exchange Commission, said it plans to spend $100 million in 2008, $200 million in 2009, and $600 million after 2009.
GM, which posted a $15.5 billion net loss in the second quarter, announced in July that it planned $10 billion of cost cuts, including eliminating white-collar jobs, retiree health-care coverage and executive bonuses for 2008.
The company is realigning its North American production to reflect a US auto market reeling from an oil shock being compared with those of the 1970s.
GM plans to close four North American truck plants and add shifts at two US plants that build more popular cars that get better mileage.
GM also said it expects to spend $300 million in 2008 on buyout programs to cut its white-collar costs by 20 percent.
The No. 1 US automaker, in its quarterly report filed with the US Securities and Exchange Commission, said it plans to spend $100 million in 2008, $200 million in 2009, and $600 million after 2009.
GM, which posted a $15.5 billion net loss in the second quarter, announced in July that it planned $10 billion of cost cuts, including eliminating white-collar jobs, retiree health-care coverage and executive bonuses for 2008.
The company is realigning its North American production to reflect a US auto market reeling from an oil shock being compared with those of the 1970s.
GM plans to close four North American truck plants and add shifts at two US plants that build more popular cars that get better mileage.
GM also said it expects to spend $300 million in 2008 on buyout programs to cut its white-collar costs by 20 percent.
Wednesday, August 6, 2008
Bajaj Renault deal only for ultra low cost car!!
Bajaj Auto has expressed disinterest in partnering the Nissan-Renault alliance in the mainstream car business. Bajaj Auto MD Rajiv Bajaj told that it was not an area he felt his company had any expertise in, hence the decision. So, the Bajaj-Renault-Nissan partnership will be limited to the ultra low-cost car project.
Mr Bajaj said: “We are not interested in participating in the mainstream car market as we do not believe that we can bring sustainable value to bear upon an existing auto major.” That’s the reason why, he said, Bajaj is not interested in expanding its partnership with Nissan-Renault beyond the ultra low-cost car project.
Last week, Renault had initiated talks with Bajaj to extend their partnership to cover the greenfield plant in Chennai (that will manufacture Renault and Nissan cars) as well as the marketing and distribution of Renault cars made in the plant. This, even as Renault is negotiating with Logan project partner Mahindra & Mahindra for a wider distribution arrangement. M&M pulled out of the Chennai plant in January this year.
While Renault has officially denied it is in talks with Bajaj Auto to partner in the Chennai project, two persons familiar with the development confirmed that Renault had made overtures to Bajaj for car distribution should the talks with M&M fail and had offered it a stake in the company that is setting up the manufacturing plant in Chennai.
Mr Bajaj said: “We are not interested in participating in the mainstream car market as we do not believe that we can bring sustainable value to bear upon an existing auto major.” That’s the reason why, he said, Bajaj is not interested in expanding its partnership with Nissan-Renault beyond the ultra low-cost car project.
Last week, Renault had initiated talks with Bajaj to extend their partnership to cover the greenfield plant in Chennai (that will manufacture Renault and Nissan cars) as well as the marketing and distribution of Renault cars made in the plant. This, even as Renault is negotiating with Logan project partner Mahindra & Mahindra for a wider distribution arrangement. M&M pulled out of the Chennai plant in January this year.
While Renault has officially denied it is in talks with Bajaj Auto to partner in the Chennai project, two persons familiar with the development confirmed that Renault had made overtures to Bajaj for car distribution should the talks with M&M fail and had offered it a stake in the company that is setting up the manufacturing plant in Chennai.
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