Honda to roll out diesel powered car in India soon

Honda Siel Cars India – HSCI, the completely owned unit of Japanese manufacturer Honda Motors in India, will be soon launching their mid-sized car for India. The big news is that this car will be powered by a diesel engine!

Honda has specially manufactured a new diesel engine, probably a 1.5L which will be installed in the mid-sized car in question here. Honda might add the same engine to one of their currently available cars, as diesel powered cars is the need of the hour.

Mr Inaba, HSCI, said “Introduction of diesel model is not the only option to grow in India. We are planning to expand our network into smaller cities as well.” As we know that the increase of petrol price has affected Indians badly.

More and more people are looking forward to buy a diesel car as diesel is 40% cheaper than petrol. Honda might introduce a new segment of diesel powered cars in India soon. Another powerful diesel engine in the offing is the 2.2L turbocharged which will power the CR-V.

Honda Manages 50% Cut in India Output

Honda Motor Co.'s production cut in India will continue until July due to lower supply of parts from Japan after the March earthquake and tsunami forced auto makers to shut factories there, a senior executive at its local unit said Thursday. A three-month output cut is likely to further affect Honda's India sales, which fell 4% to 59,643 vehicles in the financial year ended March 31 because of a lack of new models and increased competition from the likes of Toyota Motor Corp. and Volkswagen AG.

However, Jnaneswar Sen, senior vice president for sales and marketing at Honda Siel Cars India Ltd., said the production cut is unlikely to delay the introduction of the Brio small car, scheduled for September. "We expect supply of parts to normalize after July only. Till then, production will be half, or about 2,500 vehicles a month," Mr. Sen said. Honda Siel Monday said it will cut vehicle production by about half at its Greater Noida plant in northern India's Uttar Pradesh state from May but didn't say when production will return to normal levels. Honda Siel sources some engine and electronic parts from Japan.

The Japan disasters also impacted production at Toyota's local unit, Toyota Kirloskar Motor Pvt. Ltd., which said last week that both its plants in southern India's Karnataka state will operate at about 30% of normal capacity from April 25 to June 4. Honda Siel, 99.9%-owned by Honda Motor and 0.1% by India's Siel Ltd., makes the Jazz hatchback as well as the City, Civic and Accord sedans at the Greater Noida plant. The factory has an annual installed capacity to make 100,000 cars, or about 8,300 cars a month, but currently makes about 5,000 cars a month, in line with demand.

The company has another factory in Alwar in northwestern India's Rajasthan state, where it makes engine parts such as connecting rods and crank shafts for the Jazz and City models. Mr. Sen said the company is hopeful that parts constraints will be resolved before the introduction of the Brio. "We are planning to introduce the Brio around the festival season and are hopeful that the situation will improve before that," he said. The festival season in India usually starts in late September.

The Brio is crucial for Honda to improve its position in India where small cars make up for two-thirds of total passenger vehicle sales. Demand for new cars has been rising steadily in India thanks to rising personal incomes, new models and cheaper loans. Local car sales grew 30% last financial year, the fastest in more than a decade, to 1.98 million units. Sales are expected to grow between 16% and 18% this financial year, according to auto industry body the Society of Indian Automobile Manufacturers.

Separately, two auto parts suppliers to Honda, who didn't wish to be named, said the company is aiming to sell 50,000 units of the Brio in the first year after introduction. However, Mr. Sen said the company hasn't fixed any sales target. "We would surely like to sell as many Brios as possible," he said. "We are yet to firm up any sales target for the Brio as we haven't decided on the price. Pricing plays a crucial role in deciding how many cars can we sell."

Ford Figo prices raised by 1%

Ford India has hiked the price of it’s hugely popular hatchback, the Ford Figo, citing increased input costs as the reason. The Figo, which single handedly has led Ford India’s sales to multiply many times over has been selling as quickly as Ford seems to be able to make it. Ford has been meeting the growing Figo demand by running two shifts at it’s Chennai plant even as demand continues to steadily increase.

While Ford India has not effected this price hike on it’s other car models in India, it is keeping close eye on input costs, whose further rise would force Ford to hike prices of it’s other models like the Fiesta Classic and Endevour as well. Meanwhile, here’s Ford India President and Managing director commenting on the 1% price hike on the Ford Figo.

Tata Motors plans to unveil electric Indica Vista in UK

 

Tata Motors, the largest utility vehicle maker in the Indian market, is gearing up to roll-out the much awaited electric version of its popular car Indica Vista in the United Kingdom. The company has already set-up a manufacturing unit for the production of electric vehicles in Coventry, which has a capacity of rolling-out 1500 units per year. The company will be mainly targeting business, fleet users. Initially, the company will be selling the car to the fleet customers will by mid-2011.

The Indica Vista Electric model has been designed at Tata Motors’ Tata Motors European Technical Center (TMETC). However, the body shells of the car will be imported from its base market India. The car is expected to carry a price tag of Rs 14.33 lakh, which includes the subsidy of Rs 3.5 lakh offered by the government of UK on electric cars. However, the company hasn’t revealed the price f the car in the Indian market.

In a Statement given to the Birmingham Mail, Steve Ocock, head of manufacturing, said, "By using the Vista we have a car which is a four-seater with good luggage space, unlike a lot of electric cars which have limited space inside and are not really practical."

Hyosung to unveil 250cc bikes in India

 

South Korean S&T and Garware group based on Pune plans to form a joint venture to produce and deliver motorcycles in India.Garware Motors has planned to launch the 650-cc GT650R and the 700-cc ST7 S&T heavy bikes in India on April 20.The price of the GT650 bike will be below Rs.5 lakh and similarly ST7′s price will be below Rs.6 lakh.

The Managing Director of Garware Motors,Diya Garware informed that S&T is keen to enter India. They plan a manufacturing JV by mid-2012.If and when the JV is formed they will enter the 250-cc segment.

She also revealed that the homologation process is over and they expect to get the ARAI certificate by next week. The company plans to open showrooms in Delhi, Mumbai, Goa, Bangalore, Chennai, Hyderabad, Chandigarh, Kochi and Kolkata, in addition to Pune. It has created a new Rs 20-crore assembly plant in Wai near Pune.It aims at a sales of 2000 bikes per year.It is forming a pan-India bikers’ club, Hyfliers,for developing its bikes.

BMW 6 Series unveiled in India

 

BMW launched its luxury car 6 Series in India, priced at Rs 95 lakh (ex-showroom). The company's wholly owned subsidiary, BMW India, also announced launching its sports utility vehicle X3 within this year as a completely knocked down (CKD) unit from its Chennai facility.

"In the next 10 years, India's luxury car market is expected to grow ten times to up to 1.5 lakh units. We will certainly enjoy 35-40% of the market by then," BMW India President Andreas Schaaf told reporters here. The Indian luxury car market stood at about 15,000 units in 2010 and the company sold 6,246 units to become the numero uno, he added

"We are stepping up investment in India. In the next two years, we will increase our investment to Rs 180 crore from the existing Rs 110 crore in the country," Schaaf said. The company has recently acquired additional land to enhance the size of its facility in Chennai to 40 acres, up from 22 acres earlier. BMW India recently hiked its production capacity to 10,000 units from 8,000 units.

"We will invest in the brand, network expansion and new products. We will continue to maintain leadership in the Indian luxury car market," he said. As a part of the expansion plans, the company will also launch its SUV X3 as a CKD vehicle within this year. He said the company will double its dealerships to 40 by 2012 from 20 at present. Talking about its new 6 Series, Schaaf said,"It is an ultra-luxury car which will be available in India as a completely built unit."

In 2011, the company expects to increase its sales by over 30%, the rate at which the industry is expecting to grow, he said. When asked if the company would increase the prices of its products assembled in India, due to new duty structure for CKD units, Schaaf said, "We cannot answer the question right now as we are in the process of looking at the new structure and see whether it will affect us." The company currently assembles its luxury sedans -- 3 and 5 Series and SUV X1 at its Chennai facility.

Hyosung 250cc motorcycles to arrive market next year

 

The average Indian motorcycle enthusiast who had been bereft of options for so long might see a flurry of motorcycles in the 250cc category regarded as one of the most potential bike segment in India. While there is buzz in the market about the impending launch of Honda’s CBR 250R, now it has been reported that the Korean bike brand Hyosung 250cc performance and cruiser bikes will be launched next year for under Rs 200,000 each, to compete directly against CBR 250R and the Kawasaki Ninja 250R.

It is not the first time for Hyosung though as the one of the popular but few in numbers Comet, a 250cc motorcycle which was launched by Kinetic Motors before being shelved, which is being remembered fondly by the motorcycle enthusiasts. Now Hysoung is on its second innings and the Pune based Garware Motors is presently setting up a completely-knocked down (CKD) assembly facility in India for importing two models, the ST7 and GT 650R from Hyosung. Garware is spending Rs 20 crore towards the CKD facility being built at Wai in Maharashtra. It has acquired 25 acres, which can be used for expansion

According to a report in Business Standard, Diya Garware Ibanez, managing director, Garware Motors was quoted as saying “We are discussing with SNT Motors (owners of the Hyosung) to see how the volumes work out for our two models. We will follow the launch with the naked version of the GT 650R later in the year, followed by the 250cc models next year. With regard to pricing of the 250cc, we have to be right up there with the best selling models like the (Honda) CBR 250. Other models of Hyosung could also follow, as there is a big portfolio of models to choose from.”

The report stated that Garware will open bookings for the ST7, priced at Rs 600,000, and the GT 650R, priced at Rs 550,000, on April 21, with deliveries to start by May end. The company will accept bookings at 10 dealerships which will be opened shortly, followed by an additional 10 outlets to be opened later in the year. It was also mentioned that although engines, transmissions and gearboxes for the Hyonsung bikes will initially be imported into the country from Korea due to the low volumes projected during the first year, they may get locally made in due course if demand improves substantially.

Since there is some big buzz around performance motorcycles now, the bikes are expected to sell in good numbers. The report mentioned that Garware is expecting sales of around 2,000 units of the two models in the first year.”We may have to go in for local production of engines to benefit from the lower tax duty if there are enough volumes supporting it,” stated Ibanez. But now since the company is going for the CKD route, the revised rules of the finance ministry that all imports of pre-assembled engines, transmissions and gearboxes will have to pay a customs duty of 30 per cent as against 10 per cent levied last year will be a bit of a burden.

Garware is also looking at neighboring markets too and the report stated that the company is in talks with distributors of Nepal, Sri Lanka and Bangladesh for sales of Hyosung bikes. Hyosung had recently appointed a distributor in Nepal, which is keen on procuring the bikes from Garware due to lower duties.