News and views about the Auto sector in India

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

In a new turn to the scuffle between Bajaj Auto and TVS Motors, TVS Motors has filed a patent claim on its 3-valve CC-VTi engine. Lots of new product launches this week….Volkswagen unveiled its Passat luxury car and M&M introduced its Axe army off-roader vehicle, while Hyundai is expected to launch its Santa Fe SUV in 2008. Also lined up for launch in 2008 are M&M’s Scorpio hybrid version and the Ingenio SUV.

- Chillibreeze Business Research Team

Federal-Mogul plans new plant in Chennai

Federal-Mogul Corporation (FMC) is seeking to set up a greenfield facility in Chennai through a wholly-owned subsidiary. The facility is intended to manufacture friction seals for brakes and clutches. FMC, along with its subsidiaries Federal-Mogul Luxembourg and Federal-Mogul Holdings, is awaiting the government’s approval for setting up the new facility. FMC, which is aspiring to grow organically and inorganically in India, is likely to invest Rs60 crore initially in the new facility.
September 10, 2007
Source: Economic Times

Godrej Aadhaar to sell Eicher CVs in rural market

Godrej Aadhaar, the agri services and retail arm of Godrej Agrovet, has entered into a tie up with Eicher Motors for the sale of Eicher’s light commercial vehicles through Godrej Aadhaar’s outlets. Initially, the vehicles will be available at Godrej Aadhaar’s outlets in nine locations in Maharashtra, Gujarat and Punjab. The service will be subsequently extended at other outlets of Godrej Aadhaar in the country. Besides sales of vehicles, the venture also aims to customize the product offerings to suit local requirements. Further, it also aims to provide advice on transport business to rural consumers through customer orientation sessions, vehicle demonstration and free inspection and servicing of trucks.
September 10, 2007
Source: Economic Times

Daimler Chrysler to build new India plant by 2009

DaimlerChrysler AG has bought 100 acres of land in Pune to set up a new plant with an investment of Euro 50 million. The new plant will have an annual production capacity of 5,000 passenger cars, and will be operational by 2009. The company, which has been encouraged by the growth in the luxury car segment in India, has stated that it will move operations from its existing rented plant to the new plant.
September 8, 2007
Source: Economic Times

Ashok Leyland August sales down 3.24%

Ashok Leyland has recorded a 3.24% year-on-year decrease in its August 2007 domestic sales at 5,512 units. On the exports side too the company’s sales plunged by over 30% year-on-year to 543 units in August 2007.
September 6, 2007
Source: Economic Times

Sintex to buy Bright Brothers' auto plastic business

Sintex Industries will acquire Bright Brothers’ automotive plastics division to gain access to manufacturing assets at important automotive centers in the country. The acquisition will take place through Bright Auto Plastic, a subsidiary of Sintex Industries. The new company will retain all 400 employees of Bright Brothers’ automotive plastic division.
September 6, 2007
Source: Economic Times

TVS Motor files for engine patent

In a bid to set apart its technology from Bajaj Auto’s DTSi technology, regarding which Bajaj Auto has filed a case of infringement, TVS Motor has filed a patent claim on its 3-valve Controlled Combustion Variable Timing Intelligent (CC-VTi) engine. The new technology engine is based on the dual-spark plugs technology and is claimed to reduce emissions. The patent, filed at the patent registration office at Chennai on August 23, 2007, names AVL of Australia as TVS’ technological partner. The patent also provides proof of TVS’ research and development on the new technology for 3 years.
September 6, 2007
Source: Economic Times

Volkswagen Passat for India launched

Volkswagen has introduced its Passat luxury car in the Indian market. The luxury car, priced at Rs22.35-24.35 lakh, will feature a 2000cc diesel engine and will be assembled at Skoda’s Aurangabad plant until Volkswagen’s own plant in Pune is ready. The car will be offered in two diesel versions and will be powered by 4-cylinder TDi 2.0 litre Highline engines. It will also include safety features such as 8 airbags, anti-brake locking system (ABS) and electronic stabilization program (ESP). Initially the Passat will be available through a dealership network of 3, which will subsequently increase to 10 by the close of 2007.
September 6, 2007
Source: Dance with Shadows

Hyundai to launch SUV Santa Fe in India by mid-2008

Hyundai is likely to launch its Santa Fe sports utility vehicle (SUV) in India by mid-2008. The decision has been prompted by the growth in premium SUV sales in India. As per market speculations, Santa Fe is expected to replace the existing Tucson SUV.
September 6, 2007
Source: Dance with Shadows

Mahindra AXE army vehicle

Mahindra and Mahindra (M&M) has launched its Axe army off-roader model, targeting sales to the Indian and Israeli armies. The Axe uses engines developed by an Israeli company. M&M, which is likely to invest around $7 million to develop the Axe, intends to commercially produce the vehicle once it receives orders from the army. Presently the vehicle is being tested by the Israeli army. The Indian army is also expected to start testing the Axe.
September 6, 2007
Source: Dance with Shadows

TVS Motor August sales down 24 pct

TVS Motor Company has registered a 24% decrease in its sales in August 2007 at 1,02,734 units. While its motorcycle sales were at 46,235 units, its scooterettes sales stood at 24,645 units. On the other hand, the company’s exports increased by 9% to 12,006 units during the month.
September 5, 2007
Source: Financial Express

M&M plans hybrid Scorpio, Ingenio in 2008

Mahindra and Mahindra (M&M) has stated that it will introduce the hybrid version of its Scorpio sports utility vehicle (SUV), as well as its indigenously developed Ingenio SUV in 2008. The prototype of the hybrid Scorpio, which will include both mild and full hybrid versions, will appear in January 2008. For Ingenio, the company plans to keep its focus on diesel engines.
September 5, 2007
Source: Financial Express