News and Views About the Auto sector in India

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

Small cars, pre owned cars and armoured vehicles - emerging features of present day Indian automotive segment. Skoda is planning to launch Fabia and Toyota is contemplating launching its small car. GM and other foreign players are planning to enter the unorganised used car market. Volkswagen is on track to start production at its Pune facility by 2009.

- Chillibreeze Business Research Team

The shareholders authorized the board of M& M:

• to offer securities to raise up to USD 300 million from international markets, public offering or on private placement basis.
• raise Rs 900 crore through the issue of shares, debentures (convertible to equity) to Qualified Institutional Buyers (QIBs),
• to provide guarantees or securities up to an amount of Rs 1,500 crore as per the Companies Act

June 8, 2007
Economic Times

India-made Volkswagen by 2009
Volkswagen plans to start production at its Pune plant by 2009.

The company’s India procurement head recently met 250 suppliers from India and abroad. Volkswagen plans to source a significant share of material from local suppliers.

India's fast-expanding passenger vehicle market is estimated to nearly double to 2 million units in annual sales by 2010.

June 8, 2007
Economic Times

Daimler: No plans to manufacture trucks in India
DaimlerChrysler has no plans to manufacture trucks in India. DC makes Mercedes S-Class, E-Class and C-Class cars in India and imports other models.

The company has denied reports published by The Mint about the India based truck manufacturing plan.

DaimlerChrysler owns 6.8 percent in India's top bus and truck maker, Tata Motors Ltd., and 3.6 percent in Eicher Motors Ltd.

June 8, 2007
Economic Times via Reuters

Global used-car majors likely to drive into India
Japanese used car dealer Gulliver International, UK-based Manheim and a Dubai-based operator are expected to enter India’s used car market. All three are exploring possibilities of a local tie up.

The existing players include Maruti (True Value), Hyundai (Hyundai Advantage), Auto mart (Mahindra & Mahindra) and Honda Siel Cars India (Honda terrace).

According to the Society of Automobile Manufacturers in India (SIAM), the used car market stands at 1 million units. The organised players account for only 20-25% of the used car market compared to the 90% in developed markets.

June 8,2007
Economic Times

India to drive Toyota’s small car plans
Toyota is planning a small car to improve sales in the BRIC (Brazil, Russia, India, China) markets.

Toyota’s small car plant is likely to come up in Bangalore although no concrete plans have been unveiled so far. The Daihatsu-Toyota combine was planning to launch hot hatches like the Avanza, Xenia or the Passo/Boon but Daihatsu has concerns on the cost front.

Toyota is targeting 10% market share and feels it can achieve the figures only if it sells a small car in India.

June 8, 2007
Economic Times

Skoda to launch small car in India

Czech carmaker Skoda is launching its small car Fabia in India by end 2007. The car would be introduced in the Indian market after some technological changes in it to cope with the conditions.

June 5, 2007
Economic Times via PTI

Carful of armour: very important for protection

Private demand for armoured vehicles has doubled during the past two years in India. The current buyer list include Gujarat CM Narendra Modi, Jammu &Kashmir’s Ghulam Nabi Azad, Bihar’s Nitish Kumar and Andhra Pradesh’s YS Rajasekhara Reddy, Chief of the Army Staff and seven other in the top brass who have ordered nine ‘up-armoured vehicles’.

A fully armoured SUV costs Rs 40-80 lakhs, nealy 5 -10 times its showroom price.

The Ordinance Factory Board (OFB) is the only government-approved company to undertake such fabrication activities. The first right of way in terms of new contract is given to OFB and OEMs. Private players include Mahindra Defence Systems (MDS), Tata Motors, Hindustan Motors and small scale armoured body builders.

June 5,2007
Economic Times

GM may drive into used car mart in India
General Motors India is actively considering entering the pre-owned car business segment in the country

A car manufacturer should have a sizeable population of models to be traded for a new car. GM has number of its Cheverolet models to offer. However, since the used car market is dominantly unorganized it still has still some issues to be addressed.

June 6,2007
Economic Times