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.

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."

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.

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.

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.

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.