Honda CR-V and Maruti Vitara will have competition from GM’s Captiva

There is some good news from Tata Motors. It has launched the new Indica with anti-lock braking system. However, it has also been challenged by Hyundai Motor India that its proposed Rs 1 lakh car is impossible to make in terms of safety aspects. Plus, there is some competition ahead for Honda CR-V and Maruti Vitara from GM India, which is considering introducing its Captiva SUV at the forthcoming Auto Expo in 2008. On a low key is Bajaj Auto, which has announced replacements for its faulty electronic components in its new DTS-Si XCD 125 motorcycle.

- Chillibreeze Business Research Team

General Motors plans to set up powertrain plant

General Motor (GM) India is planning to set up a powertrain engine manufacturing plant in the country, although it is not sure of the timing. Presently, the company procures engines for its vehicles from other units worldwide. The proposed new plant is intended to cater to both domestic and export markets of the company. For the location of new plant, GM India is likely to close in on Talegaon, Maharashtra, although it is holding talks with several other state governments. This is because the company is parallely planning to set up its second vehicle manufacturing unit in India in Talegaon. Presently it is operating out of its sole manufacturing facility in the country, which is in Halol, Gujarat. Meanwhile, GM India is preparing itself to launch the Captiva sports utility vehicle (SUV) at the Auto Expo in India in 2008. The Captiva is likely to be introduced in the country as a completely built unit. However, the introduction of the SUV, which will compete against Honda CR-V and Maruti Vitara, will be preceded by a thorough study of the market.
October 23, 2007
Source: Economic Times

Hyundai plans to foray LCV market, in talks with Indian firm

Hyundai Motor is considering foraying into the light commercial vehicles (LCVs) segment in India through Hyundai Motor India (HMIL). The company, which sells a range of LCVs from 2.5-7 tons in Korea, is considering entering a similar segment in India. It is particularly looking at the segment below 1 ton, which is presently controlled by Tata Motors’ Ace. HMIL has reported that its parent company is in talks with an Indian firm for collaboration for the development of commercial vehicles in the country. As per industry speculation, Hyundai is believed to be negotiating with Eicher Motors for the cooperation. However, both Hyundai and Eicher Motors have rebuffed this speculation.
October 23, 2007
Source: Economic Times

Bajaj's XCD runs into rough weather

Bajaj Auto (BAL) is suspecting a fault in some of the components in its new DTS-Si XCD 125 motorcycle. Therefore, the company is contacting its customers and replacing these faulty components. The fault is likely to exist in the electronic components of the self start and head lamps besides a noisy centre-stand. The XCD, which was launched in September 2007 has been claimed to possess the features of a 150cc motorcycle with the ability to provide the mileage of a 100cc motorcycle. Priced at Rs 41,000, the XCD is BAL’s strategy to move out of the high-volume, low-margin 100cc segment.
October 22, 2007
Source: Hindustan Times

Yamaha to invest Rs 250 cr in arm

Yamaha will set up a new subsidiary in India with an investment of Rs 250 crore. The new subsidiary is intended to import the company’s high-end super bikes and specialty vehicles such as snow mobiles, multi-purpose vehicles, electric hybrid bicycles, racing vehicles, golf carts and all terrain vehicles into the country. The new subsidiary will also import outboard motors, generators, and water pumps. Besides this, the new subsidiary is also intended to manufacture, market and export two-wheelers and parts. Yamaha will invest Rs 500 crore in its new Indian subsidiary over a period of two years. Further, it is also on a lookout for a partner for the new subsidiary. According to its specifications, the partner may be an Indian or foreign entity, and may subscribe up to 30% of the equity share capital of the new subsidiary.
October 20, 2007
Source: Economic Times

Higher interest rates, input costs hit Hero Honda net

Hero Honda, the chief two-wheeler manufacturer in the country, has posted a 5.4% year-on-year drop in its net profit during July-September 2007 at Rs 204.3 crore. During the period, the company’s operating margins decreased by 1.3% year-on-year to 14.1% and its net profit margins declined by one percentage point year-on-year to 8.7%. During July-September 2007, Hero Honda’s total sales turnover rose by 5.5% year-on-year to Rs 2,352.1 crore, its total income went up by 4.5% to Rs 2,391.4 crore and its other income reduced to Rs 39.3 crore. The company has reasoned the decrease in its net profit to high interest rates, high promotional expenses and increasing input costs. During April-September 2007, Hero Honda’s net profit dipped by 13% year-on-year to Rs 394.2 crore, while its total income rose by 3.6% year-on-year to Rs 4,878.3 crore. Despite the dip in the net, market analysts are of the opinion that Hero Honda’s performance has exceeded expectations. The company has attributed this to its improved product mix and cost reduction efforts.
October 19, 2007
Source: Economic Times

Rs 1 lakh car not possible: Hyundai

Hyundai Motor India (HMIL) has termed Tata Motors’ proposed Rs 1 lakh car as “impossible” in terms of safety aspects. According to HMIL, it is not possible to make a Rs 1 lakh car, keeping in consideration the safety issues and regulations in addition to the input costs. The company has stated that it has the technology for a low-cost car, such as its 800cc engine car in Korea. However, it does not wish to make a hurried entry into the segment at the moment. HMIL intends to come out with a low-cost car for the Indian market by 2012. The low-cost car by HMIL would be priced around Rs 1,20,000 at the lower range.
October 19, 2007
Source: Financial Express

Bajaj Auto net up 28 pc at Rs 366.46 cr

Bajaj Auto, the two-wheeler manufacturer, has recorded a net profit of Rs 366.46 crore during July-September 2007. This accounts for a 27.79% increase over its net profit of Rs 286.77 crore during July-September 2006. During July-September 2007 the company’s net income rose to Rs 2,583.34 crore from Rs 2,538.86 crore during July-September 2006. Also, its standalone net profit increased to Rs 336.42 crore from Rs 317.59 crore during July-September 2006.
October 19, 2007
Source: Financial Express

Hyundai Motor hit by rupee appreciation

Hyundai Motor India (HMIL) has temporarily cut down its exports due to the increasing rupee against the dollar. The company has stated that it is presently not feasible for it to deal in dollars. HMIL exports to 65 countries and is also seeking new markets internationally. It is also targeting 1.15 lakh units of exports in 2007. However, the rising rupee is deterring the company’s plans to make India its centre for the export of small cars. Therefore, HMIL has appealed to the government to provide some relief on the grounds that its exports account for about 62% of the total cars exported from the country.
October 18, 2007
Source: Economic Times

Hero Honda, Bajaj Auto cut price of entry-level models

Hero Honda and Bajaj Auto have cut down the prices of their entry-level motorcycle models during the festival season. The discounts are expected to woo the customers to showrooms and thus boost sales amidst sluggish demand on account of high interest rates. Hero Honda has announced a price cut of Rs 2,020 on its CD Deluxe motorcycle. Without the discount the motorcycle costs Rs 35,000-36,000. Hero Honda’s price slash also coincides with its sales of 20 million motorcycles in India. Meanwhile, Bajaj Auto is offering a discount of Rs 4,000 on its Platina 100cc motorcycle. This brings down the price of the Platina from Rs 33,990 to Rs 29,990.
October 18, 2007
Source: Dance With Shadows

Tata introduces new Indica variant with anti-lock braking system

Tata Motors, the major carmaker of the country, has unveiled a new variant of its Indica hatchback. The existing model has standard safety features like anti-submarine seats, side impact beams, front crumple zone, collapsible steering column, energy absorbing bumpers and ELR type seat belts. The safety features will be available in the top-end variant of Indica V2 Turbo DLX. The new variant also offers dual front airbags and anti-lock braking system. It is powered by 1,405 cc turbo-charged inter-cooled diesel engine delivering 68 PS. According to the company, the new variant of Indica hatchback is priced at Rs 4.76 lakh.
October 17, 2007
Source: Economic Times