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

India to lead low-cost car revolution
India is expected to be the leader in production and sales of low cost cars.

A PwC study predicts that India will become the ‘single-largest test ground for all kinds of low-cost vehicles as almost all auto makers would plan to launch their low-cost offerings in India’.

Renault-Nissan combine, Tata Motors and Fiat are expected to be the key players in this Indian market.
Jun 29, 2007
Source: Economic Times

Changing paradigms in India’s automobile sector
India’s passenger car industry recorded a million sales last year. Car sales are increasing and two wheeler sales are down.

The middle and higher income groups drive the passenger car sales. India needs to improve the transportation infrastructure and services. There is talk of low cost cars, but it remains to be seen how the low cost car will come with sophistcated features like AC, music systems, power steering.

Consumers demand high performance, high speed vehicles with latest technology and high on brand value. The young and rich are willing to spend more for the comfort and brand.

The automobile industry needs to look at new technologies and new solutions for survival.
Jun 29, 2007
Source: Livemint.com

Maruti’s exports to Asean speed up
Maruti is expanding its export zone to Asean countries. It has recently bagged orders from Indonesia and Phillipines. Suzuki, which owns 54.2% in Maruti, already has a manufacturing facility in Indonesia.

Last year Maruti exported its cars to Algeria, Sri Lanka, Chile, Sudan, Morocco, Saudi Arabia, Egypt and Nepal. In 2006, European exports were nil compared to earlier years when the numbers were between 20,000-30,000.
Jun 28, 2007
Source: Economic Times

Skoda India reveals plan to launch small car
Skoda India will launch its small car Fabia by the 2007end.
The company has a plant in Aurangabad district in Maharashtra
Jun 27, 2007
Source: PTI via Livemint.com

Hyundai unveils diesel Sonata
Hyundai Motor India Ltd (HMIL) on Wednesday launched a new automatic variant of its diesel powered luxury sedan Sonata Embera CRDi, priced at Rs 15,71,656 (ex-showroom Delhi). Sonata Embera will now be available in four variants, including both petrol and diesel.
Jun 27, 2007
Source: PTI via Economic Times

"People's cars" spur green nightmare fear
Cheap cars may become an environment and traffic disaster in India.

The Indian middle class is set to expand to 583 million by 2025 from 50 million as of now and passenger car sales are expected to double (2 million units) by 2010.
Jun 27, 2007
Source: Reuters via ET

Robert Bosch ups MICO India offer price by 15 pc
Germany's Robert Bosch GmBH has raised its open offer price by 15 percent to buy an additional 20 percent in its India unit. Robert Bosch, the world's largest auto parts maker, holds 60.55 percent in MICO.

The German company has said it was buying the additional stake in MICO to realise greater operational synergies through closer cooperation and sharing of technology.
Jun 27, 2007
Source: Reuters via ET

Now tractor-owners want frills too!
India’s tractor market is now moving up the value chain as well with contract farming gaining momentum.

Tractors with power steering, higher horsepower machines and more sophisticated body work are beginning to catch on. John Deere, M&M and Escorts are the key players in the Indian market.
Jun 27, 2007
Source: PTI via Economic Times

Kenwood, Blaupunkt eye CV market
Kenwood and Blaupunkt are targeting the commercial vehicles segment in India.

The biggest challenge for both is to have a pan India service network and provide better after-sales service.
Jun 27, 2007
Source: Economic Times