News and views about the Auto Sector in India

Weekly news updates on trends and happenings in the Indian Automobile Industry

Tata Motors is making news on several pitches. It has launched Magic and Winger light commercial vehicles and is sprucing up itself for the take over of Jaguar and Land Rover from Ford. It is to begin production of compressed air cars in 2008. Further, it will also unveil its Elegante concept car and its Rs1 lakh car at the Auto Expo in January 2008. The Auto Expo will also witness the introduction of an array of concept cars by several other auto makers. Speaking of concepts, the Yo Speed electric scooter is likely to ride out of Electrotherm’s stable in September 2007. On the small car front, Toyota and Nissan are considering making their forays. However, on a low key is the Indian auto components industry, which has been hit by sluggish vehicular demand, poor orders, competition from low-cost manufacturers from overseas and the depreciation of the dollar.

- Chillibreeze Business Research Team

BMW to launch X5 in November

BMW India is planning to launch X5, its latest model, in November 2007. Meanwhile, the premium car marker is also aiming at achieving sales of 1,000 units in 2007-2008, as compared to its earlier target of 1,200 units. To achieve this, it intends to start its business in new cities such as Pune, Kolkata, Ahmedabad and Kochi. Presently, BMW India operates in Mumbai, Chandigarh, Delhi, Hyderabad, Chennai and Bangalore.
August 27, 2007
Source: Economic Times

Hind Motors plans to invest Rs 750 mn

Hindustan Motors is planning to make an investment of Rs 750 million at its plant in Uttarpara, West Bengal. The investment, which will be spread across 2 years, will be procured from the proceeds of the land development at the Uttarpara plant. It will be for increasing the company’s components business through technology upgradation and modernisation of the component manufacturing facilities.
August 27, 2007
Source: Economic Times

Luxury cars, now available at lower EMIs

Luxury car makers in India like BMW and DaimlerChrysler India are tying up with commercial banks to offer intelligent and affordable car finance to increase sales of their luxury cars. Affordable car finance, which are mostly confined to mass market cars, are now being provided on top notch cars like Mercedes-Benz, BMW and Audi through equated monthly installments (EMI) that are similar to those of premium cars like Honda Accord, Toyota Corolla and Hyundai Sonata
August 25, 2007
Source: Economic Times

Car majors have a clear concept for Auto Expo

The Auto Expo, slated for January 2008, will provide a platform for an array of concept cars by both Indian and global car makers. Tata Motors will unveil its Elegante concept car along with its Rs1 lakh car at the show. From the Maruti Suzuki stable there will be compacts such as Kizashi and Splash, some of which could be launched in the Indian market. Honda will be stealing the limelight with its hydrogen concept car FCX, the F1 racing circuit Earth Car, the Civic Flexible fuel, Fit Sports Extreme and the Small Hybrid sports car. Hyundai will also be participating at the auto show with its next-generation sedan Genesis, Qarmac, HCD Hellion and HND Veloster concept cars. Meanwhile, General Motors is expected to showcase its Chevrolet concept car range that includes Volt, WTCC Ultra, Beat and Trax.
August 25, 2007
Source: Economic Times

Yo Speed electric bikes launch delayed

Electrotherm India, the manufacturer of Yo Bykes, is expected to launch its new Yo Speed electric scooter in the second week of September 2007. The hi-speed scooter was initially planned to be released in June 2007, but was postponed to August 2007. The second delay to September 2007 has been speculated as the scooter’s failure to pass the Automotive Research Association of India (ARAI) tests. Industry sources suspect that Electrotherm had to replace the prototype of Yo Speed with a 22 AH 60 Volt battery after the earlier prototype with a 33 AH battery could not sustain the electrical circuit of the bike at the ARAI design quality test. However, Electrotherm attributes the delay to procedural reasons and is confident of Yo Speed clearing the ARAI test. It has forecast that Yo Speed, the two-seater and 500-W battery driven scooter, will achieve sales of 6,000 units in the first month. The company plans to make 50,000 units of the Rs 35,000 scooter in the first year.
August 25, 2007
Source: Economic Times

Tata Motors Launches Magic and Winger

Tata Motors Limited has unveiled Magic and Winger, its two light commercial vehicles, in Kolkata. Magic is a 4-7 seater passenger vehicle developed on the Ace platform. Meanwhile, the Winger is a 9-13 seater vehicle priced Rs 4.79-Rs5.7 lakh. The Winger, developed on a new platform and using the Tata Sumo engine, is touted for the tour and travel segment. Both the Magic and the Winger will be produced in Tata Motors’ Pune facility.
August 25, 2007
Source: Society of Indian Automobile Manufacturers

Tata confirms interest in buying Jaguar, Land Rover

Tata Motors has confirmed its interest in acquiring Jaguar and Land Rover, the two European car brands from Ford Motor. According to the company, this bid is not aimed at merely making an international presence but to gain access to larger scales and move out of the single economy segment.
August 24, 2007
Source: Economic Times

DaimlerChrysler eyes Indian bus market

DaimlerChrysler is considering entering the Indian bus market. Presently it has a presence in the commercial vehicle segment of the Indian automobile industry through its Actros range trucks. According to company sources, DaimlerChrysler is evaluating the commercial vehicle market in the country and is yet to take a final decision on its foray into the bus segment.
August 24, 2007
Source: Economic Times

GM hopes to double its sales in Kerala

General Motors India is forecasting its sales in Kerala to rise by 90% in 2007-2008. In 2006-2007, the company had sold around 275 vehicles, whereas in August 2007 alone it has sold 475 vehicles. General Motors India, which has recently opened its seventh sales and service outlet in Kerala, is aiming to set up three more sales outlets in the state.
August 24, 2007
Source: Economic Times

Now, Nissan joins small car race

Nissan will join the small car race in India by 2009-2010 with a 1.2-litre, three-cylinder petrol engine small car, code named W02A. The car will compete in and be priced as per the A2 segment. It will be manufactured at the Chennai plant, which is shared between Mahindra and Mahindra, Renault and Nissan. The small car will enjoy excise duty benefits. Meanwhile, Nissan is also expected to launch a mid-size sedan with a 1.5-litre engine by 2009-2010. Nissan’s plans of foraying into the Indian small car segment comes at a time when its sister company Renault is preparing itself to launch a small car in collaboration with Bajaj.
August 24, 2007
Source: Economic Times

Toyota’s Foray Into Small Car Could Begin With India

Toyota Motor Corporation will make its foray into the small car segment from India by 2009. The company’s small car is likely to be priced at Rs4 lakh, which is the lowest in its global portfolio of cars. Following the Indian market, Toyota Motor intends to launch its small car in various other markets. In India, Toyota Motor’s strategy is similar to that of various other auto makers who are seeking to enlarge their market share with their small cars. Toyota Motor is looking at increasing its share in the Indian passenger vehicle market to 15% by 2015 from 3.7% at present.
August 23, 2007
Source: Society of Indian Automobile Manufacturers

Auto slowdown derails component Cos' drive

The auto component industry is suffering a downturn, and is abandoning its expansion plans. This can be attributed chiefly to the 6% decline in the demand for cars, trucks and two wheelers, which in turn has forced original equipment manufacturers (OEMs) to trim down production and reduce component orders. While the supply orders for two wheelers and commercial vehicles have fallen by 15%, the same for commercial vehicles have dropped by 35%-40%. The other reasons that have led to the sluggishness of the component industry are competition from low-cost countries like China and Thailand, and dollar depreciation that has eroded profits in the export market. The component industry is now backing on the festival season of October and November to improve the demand. If the final hopes of the industry are shattered, it will impact the long-term investment plans of the industry. Also, the investments planned for greenfield projects will have to be curtailed.
August 22, 2007
Source: Economic Times

Tata compressed air car production in 2008

Tata Motors will start producing cars running on compressed air fuel in 2008. The compressed air engines are being developed in collaboration with France’s Moteur Development International’s technology. The pollution-free compressed air car will be able to offer the lowest running cost across all passenger car segments, including CNG. Each fuel refill would last for a distance of 150-200 kilometers and is likely to cost Rs90. The car, which is speculated to being tested on Tata Motors’ different models, will be priced around Rs3.5 lakh and resemble the European variant called MiniCAT.
August 22, 2007
Source: Dance with Shadows