News and views about the Auto Sector in India

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

- Chillibreeze Business Research Team

Parts makers in a tizzy as Tata Motors cuts orders

Vendors and suppliers for the small car project of Tata Motors are voicing concerns due to sudden reduction in orders from the company. The suppliers are asking for a minimum volume of supplies or price increase in case of a reduced offtake.

Tata Motors has finalised its vendor-chain for the Rs 1-lakh car. The major ones include Lumax for lighting, Sona Koyo for steering assembly and Bosch for engine kit, both petrol and diesel. Delhi-based Shriram Pistons has been selected to supply engine pistons, while Rico Auto will supply the clutch assembly. Tatas’ own component making subsidiaries — Tata Ryerson, Tata Bearings and Tata Johnson Controls are also a part of the suppliers group.

The multi-variant car is expected to hit the market sometime during October-November 2008.
July 20, 2007
Source: Economic Times

Tata Motors invests in Thailand automobile plant

Tata Motors has invested in a joint venture with Thonburi Automotive Assembly Plant to manufacture and assemble one-ton pickup trucks in Thailand.

India's Tata Motor has 70% stake in Tata Motors (Thailand) Company. Thailand is currently the world's second largest manufacturer of one-ton pickup trucks, an all-purpose utility vehicle popular among farmers and provincial businesses that claims about 60 percent of the country's automotive market and is a major export item for the kingdom.

Tata brand pickups will be sold in Thailand for a lesser price compared to other pickups.
July 19, 2007
Source: Economic Times

Tata may market Fiat brands in India

Tata Motors may market Fiat's luxury brands like Alfa Romeo, Lancia and sports cars Ferrari and Maserati in India.

Discussions are currently on between the companies.

Opinions are divided on whether it is the right strategy by Tata to sell a car like Ferrari when it is a brand identified with cars for the masses.
July 19, 2007
Source: Times of India

India's Tata Motors, Mahindra may bid for Jaguar, Land Rover

Indian automobile manufacturers Tata Motors and Mahindra & Mahindra are exploring the possibility of bidding for British auto brands Jaguar and Land Rover, both owned by Ford Motor Company.

Tata Motors is India's largest automobile company. Mahindra & Mahindra manufactures SUVs and tractors. Mahindra & Mahindra was said to be primarily interested in the Land Rover brand. Tata may bid in conjunction with Italy's Fiat.
July 19, 2007
Source: Earthtimes.org

Renault launches design centre in India

Renault opened its design centre at Mumbai.
Renault Design India will help design vehicles for the fast-growing local market as well other regional markets. The centre has already worked on a couple of concept car designs and is researching the use of premium fabrics in India, it said. It will also design and develop a range of automobile accessories.
Jul 18, 2007
Source: Reuters

Ford to scale up production in India

American automobile giant Ford Motor Company wants to increase its production capacity in India from 42,000 vehicles /annum to 65,000 vehiclesannum, from its plant in Chennai.
Jul 18, 2007
Source: Hindustan Times

Japan's Honda announces output expansion plans for India, Thailand

Honda Motor Co Ltd plans to boost its production capacity around the world to 4.7 million vehicles by 2010 from 3.9 million at present.

Honda will build second car assembly plants in Thailand and India.

In India, Honda will spend 230 million US dollars to build a second assembly plant by the end of 2009. The new plant will double its existing output capacity to 150,000 vehicles annually by 2010.
Jul 18, 2007
Source: Forbes

Ford May Sell Small Cars in India to Broaden Lineup

Ford Motor Co may sell a small car model in India.

Ford will join Honda Motor Co. and Volkswagen AG in planning to sell small cars in India.

Ford's Indian car sales grew 47 percent to 39,822 in the year ended March 31, according to the industry grouping. The company had 3.7 percent of the market, lagging behind carmakers including Suzuki Motor Corp. and Hyundai Motor Co.
July 17, 2007
Source: Bloomberg

Bajaj chasing Ducati, Triumph

Bajaj Auto is looking for a big-ticket acquisition of cult bike companies Ducati Motor Holding of Italy and Triumph Motorcycles of the UK. It has been in talks with Yamaha.

An acquisition of this kind will give Bajaj the edge in premium range and drive exports in developed markets.
July 16, 2007
Source: Economic Times

Tyre Corp may get a joint venture partner

Ailing Tyre Corporation of India (TCI) may get a fresh lease of life with the government planning to rope in a joint venture partner for the tyre company.
July 16, 2007
Source: Economic Times