News and views about the Auto sector in India

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

A new study points to the infrastructure and R& D constraints that are inhibiting the growth of India’s automotive industry. While infrastructure continues to be an issue, companies are going ahead with launches of new and different automobile types. Small cars or super bikes, India is a hot destination for both low cost and high value vehicles.

- Chillibreeze Business Research Team

Bajaj may ride Ghosn dream

Nissan Renault boss Carlos Ghosn may partner with Bajaj Auto (BAL) for their small car project.

Renault already has a partnership with Mahindra & Mahindra for selling the Logan in India. The two partners, along Nissan, are also putting up a greenfield plant in Chennai which will be used by all three. Renault is also putting up a powertrain plant in India as a 100% subsidiary. M& M plans to focus on the SUV market.

For Bajaj Auto it makes business sense to diversify. It can foray into the small car segment and leverage the dealership, distribution and service networks already in place for its two wheeler market.
Jul 13, 2007
Source: Economic Times

Not a smooth ride for automobile

A study was jointly conducted by the Automotive Analysis Division at the University of Michigan Transportation Research Institute (UMTRIAAD) and IBM's Institute for Business Value (IBV), to highlight the rapid growth & challenges of the Indian automotive industry.

The report titled ‘Inside India - Indians view their automotive future’ is based on analysis of extensive research and interviews conducted with the Indian automotive executives and experts from the government, industry and academia.

The report clearly highlights the need for the government to focus on infrastructure and services to support the automotive industry to meet global standards. If India is to become a global automotive production and sales hub, the focus areas are:

• A better transportation infrastructure;
• Improved product quality;
• More skilled workers;
• Changes in labor and tax regulations;
• An increase in the scale of exports of automotive companies.
• Intellectual property protection
• Improve transportation infrastructure – hghways, ports and country's infrastructure, air quality, and oil supply are possible inhibitors to the growth of the domestic automotive market.
• Quality, scale and resources for support services for export - managing global supply chain logistics, resources to support potential global warranty claims.
• High quality research and development.
  Jul 12, 2007
  Source: CIOL

Car sales looking up at home, but limp abroad

The Indian passenger car industry saw a revival of sorts after a gap of four months, with sales rising fastest in June. New models (Maruti SX4, Mahindra Renault Logan and GM Spark) attracted new buyers. Sales in June helped car companies post a cumulative 13% growth at 275,147 units in the April-June quarter.

Overseas markets witnessed negative growth. The April-June quarter saw car sales exports down 8%.
July 11, 2007
Source: Economic Times

Mahindra-Renault to increase Logan capacity

Mahindra-Renault, a 51:49 partnership between Mahindra & Mahindra and Renault, will gradually increase the production capacity of Logan.

As of now, the company manufactures 90 units per day at its Nashik plant.

Logan sales were 2,786 units in May and 2,386 units in June.
July 10, 2007
Source: PTI via Economic Times

Bajaj Auto plans biking merchandise

Bajaj Auto is planning to foray into biking merchandise - hi-quality branded accessories such as, riding jackets, gloves and helmets.

Bajaj has taken the lesson from the global players. Harley-Davidson, Kawasaki, Yamaha, Ducati and Suzuki have their own range of biking accessories.
July 8, 2007
Source: Economic Times

Car to jostle for space with super bikes

Cars for Rs 1 lakh and high-speed super bikes for Rs 8-15 lakh, such is the paradox of India’s automobile market.

Estimating a good market of high network individuals, all Japanese bike makers are launching their mean machines in the Indian market. Yamaha, Suzuki and Honda are lining up their top bikes for the Indian market by 2007 end and 2008.
July 7, 2007
Source: Economic Times