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

TVS to roll out Apache RTR 160 cc in Indonesia
TVS Motor Company rolled out all new Apache RTR (Racing Throttle Response) 160 cc bikes with slew of new features. The company plans to manufacture the new bike in Indonesia.

Apache RTR 160 is the latest bike developed by the in-house Research and Development wing of TVS.
Jul 6, 2007
Source: ANI via Economic Times

Bajaj, Hyundai, TVS hike prices
Bajaj, TVS and Hyundai have all increased prices on some of their models. Other auto makers are also reviewing prices.

Hyundai Motor has increased prices of the diesel variant of the Verna by nearly Rs 8,350. The base model would now cost Rs 7.54 lakh and the top-end model would be pegged at Rs 8.26 lakh. Bajaj’s Discover DTSi and Platina are now costlier by Rs 500.
Jul 6, 2007
Source: Economic Times

Toyota to up capacity 10 times by 2015
Toyota Motor Corp., the world’s biggest auto maker by market value, plans to increase its capacity in India tenfold to 600,000 units by 2015.

The local unit, Toyota Kirloskar Motor Pvt. Ltd, produces the Corolla sedan and Innova MPV at a factory near Bangalore in Karnataka. The company imports the Camry sedan and Land Cruiser Prado SUV.

Toyota had 3.7% of India’s passenger vehicle market in the fiscal year ended 31 March.
July 6, 2007
Source: Livemint.com

Japanese body to boost Indian manufacturing
The 8th JMA Group Global Seminar 2007 was organized by Japan Management Association and Confederation of Indian Industry. The seminars enable Indian manufacturing companies learn from the Japanese way of quality control, production and management technologies.

Under the aegis of the CII, Japan Management Association plans to work with the Indian automotives manufacturing sector to increase productivity and enhance skill of workers. CII and JMA would launch the Lean Club of India to provide services in excellence and competitiveness to Indian industry
Jul 5, 2007
Source: PTI via Economic Times

Apollo gets World Economic Forum membership
Tyre manufacturer, Apollo International Ltd (AIL) has been inducted into the World Economic Forum's Community of Global Growth Companies.

The Community of Global Growth Companies was created by the WEF to support the next generation of businesses as they navigate the challenges of new geographies, markets, cultures and regulatory systems on their way to becoming the industry leaders of tomorrow.
July 5, 2007
Source: IANS via Economic Times

Ashok Leyland too hits the JV lane
Ashok Leyland (ALL) has entered a 50:50 JV with Alteams Group, Finland, to manufacture High Pressure Die Casting (HPDC) aluminium products predominantly for the automotive and telecommunications sectors. The new JV will broaden the ALLs product portfolio, improve deployment of its reserves and retained cash profits. Aluminium and its various alloys are finding newer uses in cars and trucks from engine blocks to transmission components to wheels.

The phase I of the JV is expected to be completed by 2008 at an investment of over Rs 175 crore. By 2013, the JV is estimated to achieve sales turnover of Rs 65,000 crore with a total investment of Rs 335 crore and is expected to generate employment, directly and indirectly, in excess of 1,000.
Jul 4, 2007
Source: Economic Times

Suzuki plans 125cc scooter to take on Activa
Suzuki Motorcycle India Private Ltd (SMIL) is coming out with a 125cc scooter to take the Honda Activa and the Hero Honda Pleasure.

A powerful 125cc engine, fuel-efficient scooter, with India specific features is targeted at small Indian families and the youth.
Jul 4, 2007
Source: Economic Times

Volvo joins global drive for Indian components
India is fast emerging as a global sourcing hub for auto components.

Volvo has recently placed orders worth e80 million with Indian auto-component firms. auto components sourced from India are supplied to all three truck brands within the Volvo Group — Volvo, Renault and Mack — as well as Volvo Bus, Volvo Construction Equipment and Volvo Penta. Components are directly sourced from numerous OEMs in India. Some typical components being sourced from Indian suppliers include drive axles, chassis parts (read: castings, sheet metal, rubber parts) and engine/transmission components.

Other companies sourcing auto components include Toyota, Renault and DaimlerChrysler.
Jul 3, 2007
Source: Economic Times

India slips to 14th in passenger car growth rankings

India has slipped three places to the 14th position in the 2006 world rankings for growth in passenger car production. India manufactured 14.73 lakh cars growing at 16.5 per cent, compared to 7% in 2005.

The fall in ranking is because countries such as Finland and Nigeria, whose annual production is in just thousands, posted growth of over 50 per cent.

Japan ranks first with a production of 97.56 lakh cars followed by Germany with about 54 lakh and China with 52.33 lakh cars. The total number of passenger cars produced in the world, however, grew 6.3 per cent to nearly five crore in 2006 compared with 3.3 per cent in 2005. Passenger cars markets in US, France and Germany showed negative or flat growth.
Jul 3, 2007
Source: HinduBusiness Line via moneycontrol.com

Honda Won't Go Low In India
Honda is planning to launch its small car in the Indian market by 2009. The Indian small cars will contain 90% local parts. The company has no plans to sell its car at cut-rate prices like Tata or Renault.

Honda is spending $491 million on its latest plant, which will have an annual capacity of 200,000 units. Honda is also expanding capacity at its plant in New Delhi and plans to manufacture 150,000 vehicles annually by the end of 2010.
Jul 3, 2007
Source: Forbes.com