News and views about the Auto sector in India

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

The Indian automobile industry is set to witness a slew of product launches. Advances are happening in the hybrid cars sector with several companies setting their focus on hybrid vehicle launches in 2008. Research and development on India’s first digital car project has also been set off with Satyam Computers at its helm. Bajaj Auto and TVS are brawl over Bajaj Auto’s allegation that TVS has infringed intellectual property on its DTSi technology.

- Chillibreeze Business Research Team

Bajaj Auto to sue TVS on IPR infringement

Bajaj Auto, India’s largest two-wheeler manufacturer, is planning to sue TVS Motors of Chennai for the alleged infringement of intellectual property rights on its digital twin spark ignition (DTSi) technology used in several Bajaj bikes. Bajaj Auto has reported that it has examined TVS products and found that TVS has applied its DTSi technology in its latest models, including the Flame 125 cc bike. Bajaj Auto had obtained global and Indian patent for its DTSi technology for small engines on July 16, 2002, for 20 years. According to Bajaj Auto, it has not sold or licensed this technology to any company. However, TVS claims the technology referred to is its own and is a result of research at its Hosur facility. TVS claims that it has spent Rs50 crore in the research and development of the new engine that uses this technology.
September 2, 2007
Source: Economic Times

Hero Honda August sales up 12 pc YoY

Hero Honda Motors Limited has recorded 12% year-on-year growth in its August 2007 sales at 240,875 units. The increase in sales has been attributed to the success of the new launches.
September 2, 2007
Source: Economic Times

GM car sales up 114 pc in Aug

General Motors India, the wholly owned subsidiary of General Motors Corporation, has registered a 114% year-on-year increase in its August 2007 sales at 5,817 units. The sales comprise of 1,547 units of Chevrolet Tavera multi-utility vehicle, 1,567 units of Aveo sedan and Aveo UV-A hatchback, 741 units of Chevrolet Optra premium sedan and 1,962 units of Spark mini car. The company has attributed the tremendous growth in its sales to its ownership program and customers’ confidence in the Chevrolet brand.
September 1, 2007
Source: Economic Times

MUL domestic sales up 24.8% in August

Maruti Udyog Limited (MUL) has recorded a 24.8% year-on-year surge in its domestic sales in August 2007 at 60,229 units. During the month, MUL has also reported a 59.6% year-on-year increase in its exports at 5,739 units. The company’s sales in the A1 segment dropped by 14.7% to 5,480 units. However, in all other segments MUL’s sales have seen a rise. In the A2 segment, its sales have gone up by 28.6% to 41,736 units and in the A3 segment its sales have grown by a whopping 70.6% to 4,839 units. Meanwhile, in the multi-utility vehicle segment the company’s sales have augmented by 45.4% to 285 units.
September 1, 2007
Source: Economic Times

Hybrid cars to hit Indian roads in 2008

The Indian automobile industry will witness the launch of a slew of hybrid vehicles in 2008. Mahindra and Mahindra is presently test-piloting the mild-hybrid variant and full-hybrid variant of its Scorpio. Honda Siel Cars India is also set to launch its premium Civic hybrid version, which would be imported as completely built units in the beginning. Meanwhile, Toyota is considering introducing its popular Prius hybrid car in India, depending on the subsidies the Indian government is prepared to provide for hybrid vehicle makers. Ford India is also watching the Indian market for a hybrid vehicle launch. Concurrently, the Society of Automobile Manufacturers Association India (SIAM) is appealing to the Indian government to provide its encouragement through lower taxes and duties on CNG, LPG and hybrid vehicles, as well as on alternative fuel vehicles and components required.
September 1, 2007
Source: Economic Times

Bajaj Auto August sales down 6 per cent

Bajaj Auto Limited has recorded a 6% year-on-year plunge in its vehicle sales at 1,95,707 units in August 2007. During the month, the company’s sales of motorcycles dropped by 7% to 1,67,483 units, its two-wheeler sales dipped by 6% to 1,70,203 units and its three-wheeler sales fell by 2% to 25,504 units. However, its exports during August 2007 surged by 75% year-on-year to 56,452 units.
September 1, 2007
Source: Hindustan Times through Reuters

Honda to launch new Honda City variant at lower price

Honda Siel Cars will launch an all-new variant of its City in the first half of September 2007 in a bid to regain its position that is falling due to competition from Maruti’s SX4 and Mahindra and Mahindra’s Logan. The new City variant will be priced lower than the City ZX VTEC. It will feature new air bags and anti-lock brake system besides several other safety features.
August 31, 2007
Source: Dance with Shadows

TVS Motors now rides into 3-wheeler sector

TVS Motor Company has launched a three-wheeler passenger vehicle with a focus to tackle global warming. The two-stroke three-wheeler, which will hit the roads in October 2007, will be available in petrol, LPG and CNG versions. Sporting good looks with low maintenance and superior functionality, the three-wheeler will provide comfort to both the passengers and the auto driver. It is claimed to save 30%-50% fuel in comparison to the petrol models in the market. Meanwhile, TVS Motor will also launch a four-stroke three-wheeler by March 2008. This vehicle will be exported to 47 countries where TVS Motor has a presence.
August 31, 2007
Source: Hindustan Times

India's first digital car project launched

Satyam Computers has launched India’s first digital car project called Hera FxV at a conference titled ‘e-Automotive R and D 2007: The Opportunities Ahead’ in Chennai. The digital car model will be a mathematical one, with the provision to be replicated into a physical unit. Satyam will amalgamate the efforts of educational institutions and automotive components manufacturers on this project. According to Satyam, the effort is aimed at attracting research and development to the automobile industry of the country. Further, the company also intends to showcase the country’s technical capabilities through this project.
August 31, 2007
Source: Hindustan Times

ALL, Nissan plan JVs to make LCVs

Ashok Leyland (ALL) and Nissan Motor have signed a head of agreement to form three joint venture companies in the light commercial vehicle (LCV) segment. The companies will form the ventures following a feasibility study until October 2007 on the proposed areas of partnership, which will initially include the development, manufacture and cooperation for distribution of LCV products under both ALL and Nissan brands. The proposed joint ventures will cover manufacture of vehicles, powertrains and technology development. The vehicle manufacture venture will be largely owned by ALL and will have facilities in India. The powertrain manufacturing venture will encompass the manufacture and assembly of engines and other drivertrain components for LCV products and exports. In this venture, whose facility will be situated in India, Nissan will have a majority stake. Under the third venture, where ALL and Nissan will hold equal stakes, LCV products and related powertrains will be developed for the Indian and identified emerging markets.
August 30, 2007
Source: Economic Times

Royal Enfield opens brand store in Kochi

Royal Enfield has opened its tenth brand store in India at Kochi. The new store will serve as a sales and service outlet, besides offering all Royal Enfield products and accessories. The company also envisions the new store to develop as a concept shop, enriching the brand value of its products and allowing for pre-purchase product intimacy and understanding.
August 30, 2007
Source: Economic Times

TVS Motors launches seven products in one go

TVS Motors has created history in the country through multiple rollouts on a single day. The company has launched 7 new products, which include the new 125 cc FLAME motorcycle, the new 110 cc StaR City, the fuel injection technology version of Apache, the electric variant of Scooty, and the petrol, CNG and LPG versions of a three-wheeler passenger vehicle. The company has attributed the achievement to the engineering skills of its research and development team. The new products will go into production in October 2007 and will be available for buyers from November 2007.
August 30, 2007
Source: Economic Times

eBay to focus on heavy commercial vehicles in Punjab & Haryana

eBay Motors India, the online business-to-business (B2B) marketplace, will focus on trading in used heavy commercial vehicles (HCV) like trucks and trailers in Punjab and Haryana. The two states presently contribute the largest to eBay’s HCV trading in India. Further, the two states are also becoming chief hubs for trading in used trucks and trailers in the northern region. Several dealers in Punjab and Haryana have come forward to participate in the trading of HCVs in the northern region through eBay.
August 29, 2007
Source: Economic Times

Volvo to launch S80 sedan in September

Volvo Car Corporation will set foot into the Indian automobile market with its S80 sedan and XC90 sports utility vehicle in September 2007. Both vehicles will be offered in 3.2-litre and 4.4-litre petrol and 2.5-litre diesel versions. The vehicles will be imported as completely built units from Volvo’s Sweden plant. While the S80 sedan will be priced at Rs 38 lakh, the XC90 SUV will be priced at Rs 45 lakh. Their launch will happen at Volvo dealerships in Delhi, Mumbai and Chandigarh.
August 29, 2007
Source: Financial Express