News about the automobile industry in India

New launches include Bajaj Auto’s Avenger DTSi, Hero Honda’s Hunk in the premium bike segment, Kinetic Motors’ Flyte gearless automatic scooter and Tata Motors’ range of armoured vehicles. Meanwhile, Bentley India has allocated 30 units of its luxury car for the Indian market. M&M is consolidating six of its auto component companies to form a new company called Systech as part of its restructuring programme. Maruti, Suzuki and Magneti Marelli have entered into a tripartite venture to make ECUs for diesel engines.

- Chillibreeze Business Research Team

Nissan-Renault to straddle CV market

Nissan will form a joint venture with Bajaj Auto to develop low cost and robust commercial vehicle models for the Indian market. The joint venture will focus on the $3,000 car besides a whole range of light commercial vehicles in the sub-3 tonner segment. The new vehicles are intended to compete in the Tata Ace segment.

Meanwhile, Nissan’s sister company Renault will continue producing light commercial vehicles through its joint venture with Ashok Leyland. With two joint ventures in the light commercial vehicle segment, Nissan-Renault aims to get a strong foothold in the Indian commercial vehicle market.
October 16, 2007
Source: Economic Times

Kinetic Flyte gearless automatic scooter launched

Kinetic Motors has introduced its Kinetic Flyte gearless automatic scooter with an aim to make a comeback in the two wheeler segment in India. The Flyte, which has a 125cc engine, has been developed along with Sanyang Motors (SYM) of Taiwan. Priced at Rs 37,499, the Flyte is based on SYM’s popular XPro.

Kinetic Motors is targeting sales of around 60,000 units of the Flyte. With few more launches ready to take off from its stable, the company is aiming to reach the Rs 300 crore turnover level in 2007-2008.
October 15, 2007
Source: Dance With Shadows

M&M to restructure auto-component businesses

Mahindra and Mahindra (M&M) will restructure its auto components business. As per the restructure plan, M&M will consolidate its six auto component companies under an umbrella company called Mahindra President (Systems & Technologies Sector) or Systech.

The six companies to be consolidated include Mahindra Engineering, Mahindra Sourcing, Mahindra Forging, Mahindra Gears, Mahindra Composites and Mahindra Steel Products. Systech will go for an initial public offering at a later date.
October 14, 2007
Source: Economic Times

Tata Motors launches armoured vehicles

Tata Motors Limited has introduced a slew of armoured vehicles, regarding which an announcement was made at the Military Games 2007 being held in Hyderabad. The vehicles will be exhibited at Gachi Bowli Stadium. The range of these vehicles is targeted as defence and bulletproof vehicles for high net-worth individuals.

The range includes a troop carrier, an armoured bus and bulletproof Sumo and Safari. The troop carrier offer bulletproofing and can carry 10 persons. It provides hand-grenade protection for underbelly, six firing ports and weapons mount. Meanwhile, the bus can carry 29 persons and provides shatterproof glass, underbelly blast protection and side bomb protection.
October 14, 2007
Source: Hindustan Times

Hero Honda is all set to launch Hunk

Hero Honda Motors will be unveiling its Hunk premium motorcycle to compete with the new launch of Bajaj Auto’s 200cc Avenger in the same segment. The other reason for this launch is that Hero Honda wants to have a presence in the premium bike segment, where the growth has been steady. It aims to garner bigger market share in the segment and compete with the Bajaj Pulsar.

Further, the company has strategically priced the Hunk at the price of a 125cc bike, thereby offering a competition to its rivals. Coming to the features of the Hunk, it is powered by a 150cc engine, a torquier mill, the Honda CBR 125 type headlamps, twin discs, split seats and an analog yellow speedo. It is touted to have a fantastic design.
October 14, 2007
Source: Economic Times

Bentley India limit: 30 units

Bentley India, the super premium luxury carmaker, has increased the allocation of its vehicles for the Indian market from 25 units to 30 units. It plans to double the allocation to 60 units in the future. Bentley’s UK facility manufactures 10,000 units, which are distributed across the world.

In India, Bentley has recently launched the Azure and Continental GTC models. It plans to launch Broooklands also in the country, along with developing a used-car market to exploit the growth in the luxury car market in India.
October 13, 2007
Source: Economic Times

Exide Industries Q2 net profit rises 42%

Exide Industries has recorded 47% year-on-year rise in its total income during July-September 2007 to Rs 668.29 crore. Its total income during July-September 2006 was Rs 453.58 crore. In September 2007 the company’s net profit stood at Rs 62.24 crore, which was a 42% increase over Rs 43.74 crore recorded in September 2006. Presently Exide is concerned over lead price in the international markets.

While price fluctuation is also a cause of worry, the company is less concerned over it as most of its business is covered by the price fluctuation clause.
October 12, 2007
Source: Economic Times

Diwali bonanza: Bajaj launches new 200 cc Avenger DTS-i

Bajaj Auto Limited, the second largest two wheeler manufacturer in India, has introduced its new 200cc Avenger DTS-i motorcycle. Presently, the company has an 180cc version of the Avenger DTS-i. The new motorcycle is powered by an oil cooled engine that can offer a top speed of 115 kilometer per hour. It also offers an optional international standard windshield. Priced at Rs 64,830, the new Avenger will be sold through exclusive ‘Pro-booking’ showrooms. It is aimed at increasing the riding pleasure of customers on Indian roads, besides reinforcing Bajaj Auto’s position in the premium bikes segment.
October 11, 2007
Source: Economic Times

Maruti Suzuki, Fiat firm enter tripartite venture

Maruti Suzuki India (MSIL), Suzuki Motor Corporation (SMC) and Magneti Marelli have formed a joint venture for the manufacture of electronic control units (ECU) for diesel engines.

The tripartite venture will involve an initial investment of around Rs 75 crore, which will be financed through equity and debt. Magneti Marelli, a Fiat group company, will hold 51% in the venture, while SMC will hold 30% and MSIL will hold 19%. The joint venture will set up a manufacturing unit at MSIL’s Suppliers Park in Manesar. At the outset, the ECUs manufactured at the unit will be used to meet the internal demand for MSIL’s diesel cars. Subsequently, the ECUs will be supplied to other car manufacturers also.
October 11, 2007
Source: Hindustan Times

Kinetic to offer air tickets on every scooter

Kinetic Motor is participating in the festive celebrations by offering two roundtrip air tickets on every purchase of its scooter. The special promotional offer is on four of its scooter brands. They include Nova 135, Kinetic 4s, Kinetic Blaze and Kine. The offer is valid from October 12, 2007 to November 15, 2007. Under the offer, the customers can choose any destination in India for the two free roundtrip air tickets.
October 10, 2007
Source: Economic Times