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.

Automakers charged up for green drive

 

With Budget concessions in place to propel the Indian automobile industry on a green drive, manufacturers are planning electric and hybrid variants of cars and two-wheelers. However, stakeholders say, infrastructural bottlenecks, lack of affordable technology and high operating costs could make the commercial introduction of eco-friendly vehicles unviable in the near future.

R C BhargavaSociety of Manufacturers of Electric Vehicle (SMEV) Director Sohinder Gill said: “In the Budget, the finance minister reduced the import duty on batteries from 26 per cent to four per cent. This would directly translate into reduction in running costs of electric vehicles by a fifth. This, coupled with the incentive scheme announced in November last year, would double the sale of electric two-wheelers in the organised sector in the coming financial year.” While the sale of two-wheelers is projected to increase from 40,000 units to 80,000 units, electric car sales are expected to rise three-fold to 3,000 units in the year. The numbers are minuscule, considering around 1.9 million scooters and 2.3 million passenger vehicles have been sold in the domestic market between April and February this financial year.

Bottlenecks arising out of the lack of adequate infrastructure and cutting-edge technology for developing commercially-viable electric and hybrid vehicles could delay the introduction of eco-friendly products in the Indian market. “Electric scooters sold in India today run on lead acid batteries that have to be replaced annually. The batteries today constitute as much as 30 per cent of the cost of an electric vehicle, lessening the appeal of the product. Lithium-ion batteries have a longer life but are too expensive for introduction in the vehicles on Indian roads. Unless technology is developed indigenously or subsidy is provided by the government for this, running costs are unlikely to come down”, Gill explained.

Maruti Suzuki India Ltd (MSIL) Chairman R C Bhargava concurred: “There is no electric or hybrid small car available in the market today that is commercially viable for consumers. Electric and hybrid cars require cutting-edge technology and the ones available today fall short in range as well as performance.” MSIL had developed sedan SX4 Hybrid and Eeco Charge concept vehicles as part of the government-initiated National Hybrid Propulsion Programme (NHPP) and High Energy Density Battery Development Programme. The company is, however, not looking to introduce the cars commercially in the near future.

“Even if the technology is developed, there are no charging points available for users. Infrastructure has to be set up to promote the use of electric and hybrid vehicles,” Bhargava added. A spokesperson for Hyundai Motor India Ltd (HMIL) reiterated: “We showcased the electric i10 in the Auto Expo last year. A few cars are running in Korea at present. We have the product and the technology, but, unless infrastructure is put in place and demand is subsequently generated in the market, it does not make sense to introduce the car here.”

Finance Minister Pranab Mukherjee proposed to set up a National Mission for Hybrid and Electric Vehicles in the Budget for 2011-12 to encourage manufacturing and selling of alternative fuel-based vehicles in India. Besides, he also reduced excise duty on development and manufacturing of hybrid vehicle kits to 5 per cent from 10 per cent, and fully exempted Customs and countervailing duty on import of special hybrid parts.

Enthused by the proposals, US-based car manufacturer General Motors is developing an electric version of a small car which would be displayed in June this year. P Balendran, vice-president, General Motors India, said: “We are considering an electric version of a small car. It would either be a variant of the Spark or the Beat. The car would be showcased in June this year.” He, however, clarified that a commercial introduction would only follow measures initiated by the government to put in place infrastructure for use of electric and hybrid vehicles.

TVS Motors, meanwhile, has already developed an electric variant of Scooty Teenz and a new product for the domestic market. The company is testing 50 electric scooters in towns across the country and, on the basis of the feedback received, is looking to re-launch in the electric scooters business in 2011-12. TVS is, however, not optimistic about generating volumes in the segment anytime soon.

“Business in electric scooters picked up in India a few years back, but dropped due to issues with battery technology and withdrawal of subsidies. There is potential in the market with the government announcing a national mission for promoting electric and hybrid vehicles. We do see some proportion of sales coming from the segment over the next five years, the proportion would depend on the kind of infrastructure governments are putting in place in different states”, informed TVS Motors President (Marketing) H S Goindi.

Earlier in April 2008, TVS Motors had launched electric scooterette ‘Scooty Teenz. Electric’. The company had targeted sales of around 40,000 units on an annual basis. However, it stopped the production in May 2009 following a lukewarm response from the market.

“What is required is a national policy on electric and hybrid vehicles to bring momentum to development and use of alternative fuel-based cars and two wheelers in India. Town planners have to adopt the technology and make provisions for developing charging points for electric vehicles, subsidy has to be provided for R&D work in the area. Only then, in the medium to long term, can we expect to see far-reaching implications in the industry, as well as the ecology,” said Gill.

Ashish Sinharoy, vice-president, Renault India said: “The National Mission announced in the Budget is a positive measure, as it will compel the industry and the government to think together on promoting eco-friendly vehicles in the country. Renault is a global leader in EVs and has both electric cars and battery technology. But we will not take a hasty decision to introduce electric vehicles in the Indian market. The project should not fail and, to ensure its success, infrastructure has to be built in alliance with the government.”

Honda Siel Cars India had earlier introduced a hybrid version of sedan Civic in India in 2008. The car, which was imported as completely built units (CBU) from Japan, failed to generate the expected response and the product was withdrawn from the market within less than a year of launch. Civic hybrid was initially priced at Rs 21.5 lakh, but the company managed to sell close to 300 units in total after it slashed prices of the product by Rs 8 lakh.

Toyota is the only company which sells the Prius hybrid in India at present. Sandeep Singh, deputy managing director, Toyota Kirloskar Motors (TKM), said: “The introduction of the National Mission for electric and hybrid vehicles is a welcome step. However, it will be some time before the hybrid market in India grows. TKM had introduced the Prius to create awareness about the hybrids, the market for which is still at a nascent stage in India.” TKM sold 150 units of Prius last year and is looking to sell 75-100 units in 2011.

Mahindra Reva, the sole maker of electric cars in the country, expects to sell 3,000 units this year. A senior SMEV official said the increase in sales was largely on the back of the incentive scheme announced by the new and renewable energy ministry last November. Under the Rs 95-crore package for electric vehicle makers for the remaining part of the 11th plan, the government provided incentives of up to 20 per cent on ex-factory prices of the vehicles, subject to a maximum limit. The cap on the incentive would be Rs 4,000 for low-speed electric two-wheelers, Rs 5,000 for high-speed electric two-wheelers and Rs 1,00,000 for an electric car.

Mahindra & Mahindra is also said to be considering an electric variant of Korando (a crossover product from the Ssangyong portfolio) for introduction in the India market.

Honda to launch 100 cc bike segment

 

Following its exit from Hero Honda, Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI) on Monday said it would launch a range of motorcycles, including that in the mass segment of 100cc, to grab leadership position in the Indian two-wheeler market. HMSI also unveiled its global ‘road-sport' bike ‘CBR 250R', which will be launched next month.

Mass models

“Our target in the next decade is to be No.1 in India. For the first time, we will introduce a mass segment motorcycle in the 100cc category…it is the first priority for us,” HMSI President and CEO Shinji Aoyama told journalists here. “We have not been entering the mass segment because of existence of Hero Honda (its erstwhile joint venture partner). But now for a while, we will concentrate on introducing mass models. We will introduce the 100cc bike in next year...it is currently under development,” he said.

New CEO

HMSI will be strengthening its R&D in India and start developing specific products for the country, besides considering setting up a third plant. “We will start operating our second plant at Tapukara in Rajasthan by July-August, which will take our total annual production to 22-lakh units,” said Mr. Aoyama, who will be leaving India after a four-year stint to join the parent Honda Motor Co. He will be succeeded by Keita Muramatsu on April 1.

Sales target

Mr. Aoyama said HMSI was expecting to sell a total of 16.5-lakh units in 2010-11, a jump of 30 per cent over the last fiscal, while it was aiming for an increase of over 27 per cent in its sales to 21-lakh units in 2011-12. The Indian two-wheeler market is likely to be 1.2 crore units in this fiscal.

Referring to HMSI's global ‘road-sport' bike ‘CBR 250R', which will be launched next month, he said it would mark the company's entry in the high performance 250cc segment. The bike will available in two versions — standard variant priced at Rs.1.43-lakh and C-ABS variant priced at Rs.1.68-lakh.

Hard sell comes to India’s cars

 

Would you buy a car along with your grocery? Car maker Tata Motors and retail giant Future Group are betting that you would—Tata’s marquee small car, the Nano, has been selling at the latter’s Big Bazaar outlets for just over a month. Sales have been encouragingly brisk, leading the two companies to talk of extending what should have been an unlikely alliance.

To be sure, this might turn out to be just a one-off success story. You don’t normally think of spending a few lakhs at the grocer’s (unless you are Mukesh Ambani), and the ultra-cheap Nano is currently the only car in the Indian market that remotely approaches the value proposition required for off-the-shelf sales. But it is also important to note the changing dynamics of the Indian car buyer. Affordability for vehicles has far outpaced their cost, enabling the man on the street to own not just two, but four wheels. That may not have been possible under the cloying, restrictive economic regime in place until a few decades ago. As sales of the Nano through Big Bazaar (450 since 4 February) show, a car is more of a commodity than it ever has been.

Tata’s move is also indicative of a larger trend. India’s auto market is expected to become the fourth largest in the world by 2015. Foreign carmakers are making a beeline for the country, and new models are appearing faster than ever. The competition keeps prices down, but that is no longer enough to lure buyers. More and more, car makers are being pushed to go the extra mile on marketing and sales. That includes tapping new segments, including women. At Nissan, a separate department with mind-boggling designations is helping to design cars for the Indian woman —traditionally small buyers, but now gaining purchasing power.

All this fleshing out is making the Indian car market fuller and deeper in ways that would have been unimaginable given its earlier socio-economic mores. Once, the enduring irony of the auto industry was that the man who helped manufacture the car never got to own it. Think of that when you see a Nano at a Big Bazaar, or a woman buying it.

Bambikes — bicycles with bamboo parts

 

While other kids were having a good time during the summer holidays, Vijay Sharma helped his father, a carpenter, in his workshop to help supplement the family income. But little did he know that the skills his father taught him would one day help make him famous as one of the few people in India who handcraft Bambikes — bicycles with bamboo parts.

Cycling is an eco-friendly way of getting around — no fuel is consumed and there are no harmful emissions. Sharma has scaled up the bicycle's eco-friendly quotient by using bamboo to make the cycle frame, which is usually made of steel, aluminium or titanium. But he is quick to add that other parts such as chains and brakes are made of metal, and the tyres from rubber. “The idea is to replace as many materials with bamboo as possible — for parts such as the handles, basket and so on,” he explains.

So, why bamboo? “Bamboo is comparable to steel in terms of strength; in fact, in North-East India, people use bamboo to build houses that last decades. Bamboo is inherently shock-absorbent and flexible too, all qualities essential for a bike,” he says.

Mauro Vanoli, an Italian cycling professional, says he learnt about Sharma's Bambike on the Internet. Vanoli travelled to Bangalore and got a Bambike custom-made for himself. He now displays the Bambike at major travel trade fairs and bike shops in Europe, and says people are excited about the product. “I've done television and magazine interviews on the Bambike, and invitations are coming in from other media organisations. The bike is booked for exhibitions and shows till May,” he says.

Carpentry to bike designing

Sharma became interested in bicycle-making after he enrolled for the ‘MAD bicycle workshop' at the Centre for Environmental Planning and Technology, Ahmedabad, where he was studying interior designing. Here, bicycles were dismantled and the parts reused to make everything from toys to tandems (bicycles for multiple riders). Sharma used this opportunity to design a recumbent (reclining) bike.

“Although I am a qualified interior designer, I like to get my hands dirty,” he laughs. But getting that qualification was no easy ride for this innovator, who had his early education in Gujarati medium. “I took eight years to complete a five-year degree in interior designing because my English wasn't too good and I had trouble writing my thesis. But with the help of some friends, I did it,” he says.

After setting up a furniture workshop in Bangalore, he began making all kinds of cycles — including tricycles and recumbent trikes — as a hobby. He started working on the Bambike after a friend suggested it. The challenge lay in putting together the bamboo frame — with steel or aluminium, you just weld the frame together — and Sharma found his solution in fibreglass, which is used to provide the joint between two lengths of bamboo.

Fame on Nilgiris

Arun Katiyar, who was involved with organising a cycling ‘Tour of the Nilgiris', heard of Sharma's bike-making abilities in 2009 when he was moving into his new house in Bangalore. “The man who fabricated my dining table worked in Vijay's workshop.” Katiyar was at the time trying to organise a meeting between people who built bikes and bikers. So he paid Sharma a visit and saw him working on the Bambike at his workshop.

“It was a very hip bicycle; you could ride it alright, although it swayed at the back. Its corners were bumpy, the bamboo wasn't rigid enough and, finally, borers had made holes in the bamboo since it was not treated then,” Katiyar recalls. But this was just Sharma's first try, and convinced of the Bambike's potential, Katiyar asked him to work on a racing Bambike for that year's Tour of the Nilgiris. As things turned out, the Bambike led the tour, with Sharma riding it.

That tour fetched him wide publicity, and he says his most memorable moment was when his parents called to say they saw his interview on TV. It was also at the tour that he met the President of TI cycles, the Chennai-based manufacturer of BSA cycles, who offered to get his bike scientifically tested. The Bambike passed the Japanese Industrial Standard (JIS) test, making it roadworthy on a flat, tarred surface. Sharma is now working to make the Bambike suitable for Indian conditions.

A major challenge facing Sharma in the manufacturing process is the absence of a standardised raw material; the naturally occurring bamboo can never have a uniform wall thickness and diameter, so the weight of the bike will also differ across products. But Sharma guarantees that the Bambike will last just as long as a regular bike, “unless you meet with a bad accident, of course.”  Salam Hidish, a furniture designer, says he likes to ride the Bambike because “it has a nice cushioning on a bumpy road and I find it much lighter than a regular bike.”

For enthusiasts and the rest

The price of the Bambike, however, may prove a major deterrent for potential buyers in India. Sharma's Bambikes start from Rs 25,000 for a hybrid bike, while a mountain terrain one costs Rs 30,000. These are, after all, handcrafted products that require considerable time and skill. “Bike companies make 4,000 bikes a day. I take 20 days to make one bike,” he says.

While the bike currently has few takers back home, as “people in India view bamboo as a poor man's timber, even though it's as strong as steel”, enquiries are pouring in from Copenhagen and Italy. As Katiyar says, “People in the West want to own a Bambike — it's a matter of social status to own a handcrafted, eco-friendly bike.” Abroad, bamboo bicycle designers sell the frames alone for $1,000-3,000.

The Bambike definitely cannot replace the latest models of hi-power bikes, but as Vanoli says, “it could create a niche for those who wish to have an exclusive and special ride.” Stressing on the need to bring this eco-friendly transport within the reach of ordinary Indians, Katiyar says, “It is not a bike built for India and it is not a model meant for the masses. What we need is a bamboo bicycle that everyone can afford. It's a question of evolution. The paperwala has to come on a bamboo bicycle.”

TVS aims to design India's cheapest motorcycle

The country’s third largest two-wheeler manufacturer, TVS Motors, is mulling a low-priced motorcycle to shore up volumes in the Indian market. The product, when introduced, would be the cheapest motorcycle in the country. TVS Motors, which currently manufactures mopeds, scooters and motorcycles for the domestic market, is considering a new product to bridge the price gap between the company’s range of mopeds and motorcycles.

“There is room for introducing one more product at the lower end of the motorcycle segment. Our cheapest motorcycle comes for Rs 36,000 while the most expensive moped is tagged Rs 25,000. There might be a new product positioned in this range,” said H S Goindi, president (marketing). He, however, admitted it would be a challenge to make a profitable product in the segment at such aggressive price points. “The Indian market is demanding, the quality of motorcycles on offer here is very high in terms of finish, engine performance, styling and fuel efficiency. The challenge would be to offer good features at competitive price points,” he said.

Industry experts note the 100-110cc segment account for 60 per cent of the nine million motorcycles sold every year and is the mainstay of companies like Hero Honda and TVS Motors. To launch inexpensive products in the category is, therefore, critical for two-wheeler companies in the country. Honda Motor Corporation (HMC), which too is working on a low-cost bike priced at around $ 600 for sale in emerging economies, has decided against introducing the product in the Indian market. Shinji Aoyama, president and chief executive officer, Honda Motorcycle and Scooter India (HMSI) had earlier said, “The low-cost bike is not suited for the current requirements in the market here. At present, we are not considering launching the product in India.”

The motorcycle is being developed at the company’s research and development centre in China, mainly for markets in Africa. TVS Motors, at present, is working on developing two new motorcycles which are likely to hit the Indian roads in the course of 2011-12. Goindi informed, “We are working on two products. It would take us another eight to nine months to launch these motorcycles commercially in the market.” He, however, declined to share details about the segments which the products would be launched in.

Additionally, the company is also firming plans to re-launch products in the electric scooters segment. TVS Motors has developed an electric variant of Scooty Teenz and a new scooter, which are being tested in 50 towns across the country. Depending on the feedback received a commercial launch would be made in the coming financial year. TVS Motors, which is the third largest two-wheeler manufacturer in the country, has sold 1.6 million units in the domestic market between April and February this financial year, registering a growth of 31 per cent as compared to the corresponding period the previous year.

Maruti Suzuki unveils Ten Millionth car

Maruti Suzuki India Limited, the country’s largest car manufacturer today rolled out its 1 Crore (ten millionth) car. The historic 1 Crore car, a Metallic Breeze Blue coloured WagonR VXi rolled out from the Company’s Gurgaon plant.  With this landmark achievement, Maruti Suzuki becomes the only Indian car company that makes its entry into the select club of automobile manufacturers across the globe who have crossed this milestone.


On the occasion, Shinzo Nakanishi, Managing Director and CEO, Maruti Suzuki India Limited said, “As we reach this historic landmark, we thank our founding partners who laid a solid foundation of values and practices. We thank our customers who have brought us this far. The commitment of employees and continued strong support of business associates has played a critical role all through the journey. Their enthusiasm and commitment is especially reflected in manufacturing around 5 million units just in the last 6 years. Today is a day of pride for the full Maruti Suzuki family.”


Maruti Suzuki India Limited, started operations in India in 1983 (then Maruti Udyog Limited) as a joint venture between the Government of India and Suzuki Motor Corporation, Japan.


The Company’s journey towards 1 Crore mark, picked momentum in recent times through several focused initiatives like capacity expansion, higher productivity levels and enhanced R&D capability demonstrated through product refreshments. A new car design philosophy, as evidenced in world strategic models like the Swift, SX4, A-Star, Ritz and WagonR helped to win customer’s hearts. Contemporary DDiS and Super Turbo Diesel engines and the K-Series petrol engines helped to reinforce the technological supremacy of Maruti Suzuki.Maruti Suzuki currently offers a wide range of 16 passenger vehicle models in India. It is the largest car maker with over 45 per cent share in India’s passenger vehicle market.


Starting with the handing over to the first Maruti 800 to the first customer in December 1983, the Company produced the First Millionth car in 1994. The cumulative production reached Two Million in 1997. The next big landmark of Five Million was reached in April 2005, almost 22 years after the first car was rolled out.


The present product portfolio of the Company includes compact cars Maruti 800, world’s largest selling Alto, Alto K10, Estilo, WagonR, Ritz, A star and Swift, MPV Omni and Eeco, sedans Swift DZire and SX4 and SUV Gypsy. The Company also imports Grand Vitara and premium luxury sport sedan Suzuki Kizashi, from Suzuki Motor Corporation, Japan. Maruti Suzuki range of models is available with petrol, diesel, CNG and LPG fuel options. With over 900 sales outlets and 2900 service workshops, Maruti Suzuki has the largest sales and service network in India. It is the sole base for producing diesel engines and the world strategic export model, A star for Suzuki Motor Corporation, globally.


With two manufacturing facilities and a combined manufacturing capacity of 10 lakh (1 million) cars a year, Maruti Suzuki currently produces over 12 lakh (1.2 million) units per annum. The Company is setting up two new plants which will bring in an additional annual capacity of 500,000 (0.5 million) units. Once these new facilities are in place by 2013, the Company will have a capacity to manufacture over 17 lakh (1.7 million) units annually. The Company is also setting up an R&D facility, Suzuki’s largest R&D centre outside Japan. The Maruti Suzuki’s R&D teams are working collaboratively with Suzuki Motor Corporation, Japan for designing cars for the global markets.


Maruti Suzuki’s revenue has grown consistently over the years. During 2009-10, Maruti Suzuki posted revenue of Rs. 301,197 million. The revenue was Rs. 203, 583 million in 2008-09, up from Rs. 178,603 million in 2007-08.