Indian Automotive Sector

[Kshatriya87]

Saar aapki gaddi finally India mein launch ho gayi hai. Mithai bhejna mat bhoolna, plis. :cool2:
Ford Mustang launched in India for Rs 65 lakh

Thanks for the Tag sir. Time to earn tons of money to buy now.

 

[Indx TechStyle]

Maruti Suzuki Ignis India Launch On Schedule; Company To Showcase It At The Paris Motor Show

Story Highlights

• 
  
  
  • Maruti Suzuki India will launch the Ignis as per schedule this year
  • The car will go on sale in India during the festive season
  • The company will showcase the car at the 2016 Paris Motor Show as well

Maruti Suzuki Ignis, the long awaited sub-compact crossover from the Indo-Japanese carmaker is set to be launched in India. While there are several reports suggesting that the launch of the car has been postponed to 2017, we have official confirmation from the company saying that the launch will happen as per schedule. Expected to go on sale during this festive season, the Ignis will be retailed in India via Maruti's premium dealership network - Nexa. In fact, right around its launch in India, the company will also showcase the Suzuki Ignis at the upcoming 2016 Paris Motor Show, marking its debut in the European market as well.

The Maruti Suzuki Ignis crossover was first showcased as the Suzuki iM-4 concept at the 2015 Geneva Motor Show, followed by the first official appearance of the production car at the 2015 Tokyo Motor Show. Later in 2016, the car made its first appearance in India at this year's Auto Expo, where Maruti Suzuki announced its plans to launch the car in the second half 2016.

Maruti Suzuki Ignis at 2016 Auto Expo

The Maruti Suzuki Ignis features certain attributes of an SUV, like high ground clearance and a good field of view from within the cabin. In terms of design, the crossover comes with a smartly designed grille with integrated headlamps with projector lights within it chrome border that makes it look like one single unit. The car also comes with flared wheel arches and a bold shoulder line. In terms of dimensions, the Ignis is 3679mm long, 1579mm high and 1478mm wide.

In terms of feature offerings, the Japan-spec model gets 4-Wheel-Drive (4WD) system, hill descent control, Suzuki's adaptive Dual Camera Breaking system (DCBS), lane management system, along with front, a rear and side camera for parking assist. While we will get all or most of these features in India, but we can only confirm that once we get to drive the car. As for other standard features, the Ignis is likely to come with ABS and EBD as standard along with the driver and co-passenger airbag as an option on the base variants and standard on higher variants.

Under the hood, Maruti Suzuki Ignis will come only with the 1.0-litre BoosterJet petrol engine, whereas the diesel could be added to the variant line up later in the timeline. Transmission options will comprise a 5-speed manual and an automatic unit.

Maruti Suzuki Ignis
Exp. Price ₹ 5 to 7 L
Exp. Launch Feb 2017
Courtesy: CarandBike.com

 

[Indx TechStyle]

Tork Motorcycle To Launch India's First Electric Motorcycle This Year

Highlights

• The T6X will have a range over 100 km on a single charge.
• Tork has incorporated motorsport experience in the development of T6Xm
• Production for T6X could commence by the end of 2016.

If you know about the world of electric motorcycle racing and follow the different races like Isle of Man TTX-GP or the TTX-GP Championship, then there is a good chance you might have heard about Tork Motorcycles. After being in the racing circuit for nearly six years, the Indian start-up has now decided to venture in making the country's first electric motorcycle. Christened T6X, the bike is already nearing production stage and is likely to be launched in India in next couple of months.

The ambitious electric motorcycle company was founded by Kapil Shelke, a mechanical engineer from Pune University who started the firm back in 2009. The initial focus of the company was to race their self-developed electric bikes in various esteemed races across the world. In fact, some of their feats include - podium finishes at the 2009 Isle of Man TTX-GP and 2010 TTX-GP Championship. Also in 2012, the company entered the 400-metre drag race - demo run at Valley Run, where their first small capacity electric motorcycle built on the Yamaha FZ recorded 0-100 km/h sprint in 8.7 seconds.

Now, Tork Motorcycles has directed its focus towards building the first electric motorcycle in the country and hopes to have it on the roads by early next year. According to the company, the T6X will be comparable to any 125cc bikes in the market. While they haven't given us the power figures to compare the number, we have been told that the bike will have a range of over 100km, which is way more than any other electric two-wheeler in the Indian market. In addition to that, the bike will have a top speed of up to 95 km/h which is more or less in the vicinity of an average 125cc bike.

The electric powertrain of the bike has been built in-house by Tork Motorcycles along with the design, chassis and body parts. That said, Tork will be sourcing the cycle parts from other component manufacturers for the production bike. They have informed us that CEAT Tyres is building special tyres for the motorcycles. The bike will be a chain-driven motorcycle, which is the only source of noise that comes out if this bike. Additionally, the bike will come with a host of features like - onboard navigation, cloud connectivity, full digital display, and quick charge.

All that said when it comes to an electric vehicle, there is huge range anxiety among Indian consumer and the company has found a solution to address this issue as well. Tork Motorcycles has claimed that ahead of launching the bike in the market the company with setting up charging station in several key locations in the around the city. Initially, the company plans to come out with at least 100 charging station per city, which if you ask us is quite ambitious. The company plans to launch the bike in 5 major cities across India like - Pune, Bengaluru, Delhi, Mumbai and Hyderabad. Initially, the bike will be launched in the former three cities followed by the other two.

The company has already raised the first round of angel funding from a host of investors including the founders of Ola cabs - Bhavish Agarwal and Anki Bhati. The company has claimed that it has sufficient funding to finish R&D and start production, which will take place in an upcoming plant at Chakan, Maharashtra. In terms of sales target, the company is aiming to sell 10,000 units in the first year.

 

[anoop_mig25]

Tork Motorcycle To Launch India's First Electric Motorcycle This Year

Does such type of electric vechiles do get market launched in Indian market or just prototype is launched???

There was another scooter Ather S340 Electric Scooter which was going to launched in market?? has it hit market.I donot even see their adds

donot know about Indian but when surf on web for such vechiles running in china , lost of vechile of unknow brands ruining on Chinese roads


Even in e-auto rishwaks are there but they are launched/marketed properly

Most of i see are running in between but-stands and railway stations in any major city

 

[Indx TechStyle]

Does such type of electric vechiles do get market launched in Indian market or just prototype is launched???

There was another scooter Ather S340 Electric Scooter which was going to launched in market?? has it hit market.I donot even see their adds

donot know about Indian but when surf on web for such vechiles running in china , lost of vechile of unknow brands ruining on Chinese roads


Even in e-auto rishwaks are there but they are launched/marketed properly

Most of i see are running in between but-stands and railway stations in any major city

Replacing conventional thing which has been used in market isn't easy takes time.
Though,
India wants its cars to go all-electric by 2030
Too ambitious but nearly impossible but we can achieve a slice of it.
India has recently developed electric buses which use Li batteries.
I think we must start first doing this with public transport first.

Off Topic:
Rajya Sabha passed a long duration maternity leave bill. Similar to many rich countries.
I've been covering energy related threads that government is not only aiming to increase electricity production by 10s of folds out of which half would be from non conventional sources.

A New Traffic bill, which will halve the traffic related death rate and will put it equal to United States.

If succeeded, India may still need 4-5 decades match US or Western Europe, but would be matching the OECD at least in Law and Order.


I hope it doesn't remain my wishful thinking mere.

 

[Blackwater]

Tork Motorcycle To Launch India's First Electric Motorcycle This Year

bizaleee kithe ha charge karan nu??? invertor te karna ha charge???

:biggrin2::biggrin2::biggrin2::biggrin2::biggrin2::biggrin2:

 

[Indx TechStyle]

bizaleee kithe ha charge karan nu??? invertor te karna ha charge???

:biggrin2::biggrin2::biggrin2::biggrin2::biggrin2::biggrin2:

India is going to ramp up electrical output by tens of folds by 2031 and well on schedule.

 

[bengalraider]

bizaleee kithe ha charge karan nu??? invertor te karna ha charge???

:biggrin2::biggrin2::biggrin2::biggrin2::biggrin2::biggrin2:

6376MW extra power in exchange as of now!

 

[Indx TechStyle]

Bajaj Auto likely to launch its fastest Pulsar by August-end

Bajaj Auto to launch its fastest Pulsar by August-end

Bajaj Auto is expected to launch its fastest Pulsar CS 400 by the end of this month. According to media reports, company 's CEO Rajiv Bajaj recently announced the bike would be launched by the end of August 2016.

The firm unveiled the sports bike along with Pulsar SS 400 in Auto Expo 2014 in February. The CS 400 will sport a 373.2 CC four-valve, single cylinder liquid cooled engine which promises a maximum power of 40 bhp.

The maximum torque would be around 32 NM.

The bike is expected to reach a maximum speed of 175 kmph.

The fastest Pulsar will have a tank mounted fuel indicator, similar to the Ducati Diavel.

Currently, Bajaj Pulsar has the RS 200, Pulsar FOS, Pulsar AS 200/150, Pulsar 200 NS Pulsar 220, Pulsar 180, Pulsar 150 and Pulsar 135 LS models in its lineup.

 

[Indx TechStyle]

India made vehicles remain at top in Sri Lanka even as overall registration figures fall

COLOMBO: India-made vehicles have managed to remain at the top in new motor vehicle registration in Sri Lanka even as registrations as a whole hit a new low, data collected by JB Securities for the month of July show.

In the Brand New Segment, 1331 vehicles were registered in July, down from 1490 units in the previous month and from 6773 units 12 months ago. But 663 of the 1331 units registered in July were from the Maruti stable. And this has been an improvement since June, when 633 Mautis were registered. The India-made Hyundai Eon was a poor second with 88 units being registered, but still higher that Renault’s Kwid which managed 72.

There has been a precipitous fall in the Three Wheeler Category, from 6995 units registered in June to 3678 in July. There has also been a steep fall from last year. Three Wheeler registrations had come down from 12,248 a year ago to 3678 in July. Even so, Bajaj maintains its lead in this segment. It accounts for 87 percent of the market. It is followed by TVS (9 .2 percent) and Piaggio (3.6 percent).

As regards Two Wheelers, the number of units registered has come down from 29,264 in June to 24,994 in July. A year ago, 33,722 units were registered. As in the Three Wheeler Category, Bajaj is the dominant player in the Two-Wheeler category also. It has 30.7 percent of the market share. Hero accounts for 29 percent, and TVS 14 percent, all three all Indian.

In the Pick Up Truck Category too, Indian makes dominate. Currently, Tata has 53 percent of the market, followed by Mahindra, which accounts for 14 percent. Of course, as in other categories, there has been a fall in registrations in this category too. There were 280 registrations in July, while in June, it was 348 and a year ago, it was 374.

The Tatas and Mahindras continue to dominate the Mini Truck Category despite the fact there has been a decline in new registrations. The Tatas still account for 59.5 percent of the Mini Truck market, followed by the Manindras who account for 3.3 percent .In July, 1148 units were registered while in June it had been 1425 units. A year ago it was 1569.

The Lite Truck category also saw a decline in new registrations, but the dominance of Indian companies has not been challenged. The Mahindras are the market leaders accounting for 68 percent of it. But the number of units registered in July came down to 533 units from 648 in June and from 696 a year ago.

The Heavy Truck category continues to be in the hands of Indian companies with Lanka Ashok Leyland dominating the market with a share of 47.4 percent. The Tatas are number two with a share of 33.1 percent and Eicher, number three, with 9.8 percent. But Heavy Truck registration had increased marginally from 126 registrations in June to 134 in July.

In the Passenger Bus Sector, the dominance of the Indo-Sri Lankan joint venture, Lanka Ashok Leyland, remains unchallenged. It’s the market leader cornering 54.8 percent of it. And as in the case of Heavy Truck, bus registration had gone up from 176 in June to 179.

 

[Indx TechStyle]

Need for Speed: Ather Energy's S340 may be India's fastest e-scooter

While the buzz has been around Ather Energy creating India's first 'smart' two-wheeler, what has gone unnoticed is the S340's speed. Tesla broke the speed barrier with its P90D and Ather has the potential to do with its e-scooter.

When Marty McFly scooted off on a hoverboard in the second instalment of the now iconic Back to the Future series, who would have thought that technology would indeed charge the auto industry in the future? Though we may still be a few years short of seeing skateboards levitating flawlessly in the skies, electricity-driven cars have traversed miles down the road of innovation with most big companies launching their own versions over the last few years. It is in this scenario that domestic hardware startup Ather Energy is motoring on to build India's first 'smart' two-wheeler, taking the fervour around e-vehicles in the country a notch up.

Convinced that this is the direction the world will eventually head to, Chief Business Officer at Ather and former Flipkart VP Ravneet Singh Phokela says, "We firmly believe that every vehicle is going to be electric in the future - not because we are investing in it - but because as a technology, it is faster than anything else out there today. Optimizing cost structures takes time in any new industry and more people are certain to ride this wave once its financial viability is established," he adds.

Charged up

While mainstream brands are simply rolling out battery-operated two-wheelers, Ather is channelling its energy into building a whole ecosystem around e-vehicles. Says Chief Product Officer at Ather, Arun Vinayak, "Auto designs, up until now, have largely been optimized for petrol/diesel vehicles and hence these cannot be used as reference models for electric vehicles of the future. We did not study existing e-vehicles either since most are designed to simply be urban mobility solutions - their maximum speeds may go up in the range of 25-30 km/hr and they are also missing basic safety requirements," he says. "We on the other hand, are aiming to build a product that will be faster than even petrol vehicles," he adds. Ather claims at the moment the scooter can achieve a top speed in excess of 70 kmph.

Consequently to make their product more inclusive, the startup strongly felt that it cannot take existing auto systems and simply strap a motor and battery pack on to create the e-vehicle.

"To achieve what we set out to do, we realized early on the importance of building the vehicle from scratch," says Vinayak. "And when we took ownership of every minute detail, it gave us the liberty to question everything that had existed around building a vehicle," he adds.

Clean sweep

For these reasons, the startup is careful about differentiating itself in the market as a product firm rather than just a vehicle company. "A product company builds everything from the ground up and this is where our company stands out in the mix out there. We are exploring something called 'clean design' which seeks to give an all round personality to the vehicle including from an environment perspective as well as using design considerations," he says.

Weight reduction automatically follows this concept - the construction utilises aluminium so it stands light at just 90 kg. The S340 is significantly lighter when compared to petrol vehicles that ply on roads today. The other component is low lubrication for a clean, hassle-free ride. "Extra mass is not desirable on rides so we wanted to clean that out. It also enhances the overall performance of the vehicle because lesser metal means lesser energy is required to propel the vehicle forward," says Vinayak. "Our transmission system also does not require oil and the brakes also do not need regular maintenance unlike most vehicles today," he adds.

Production in progress

Slated for production later this year, Phokela identifies three factors that are driving the company's timelines. "The first is the vehicle itself, followed by its production and lastly the creation of the charging infrastructure. Even if the first is totally under our control, the actual go-to market depends on the latter two," he says. "These are heavily dependent on vendors in the ecosystem, who are not easy to bring on board because such a product has not been explored before and so they do not have any reference point to fall back on. We also expect our vendors to work with us going forward as well, so we want to be absolutely sure that these relationships will stand the test of time. So all these factors will ultimately decide on when we can see the first vehicle on the road," he says.

It is Telsa-ish in another way. While it will set up a charging point at your home on purchase of the S340, it is additionally setting up charging infrastructure across the cities it plans to launch in.

"We never set out to build something like this when we first started off three years ago," says Vinayak. "The specifications started evolving organically and it took us nearly a year just to come out with the blueprint," he adds.

Probed on how much the S340s could be priced at, Phokela adds," It is difficult to arrive at a number today since that would be a function of many variables. However we see it, we are not expecting to make money out of the first unit we roll out". "This is simply because there is no way you can make money with the volumes that we capped it at, which is 10,000 units for three markets - Bengaluru, Chennai and Pune. So, we are seeing this more as a test run than anything else," he adds.

Motoring on

And as with any business that is starting a trend rather than following one, there are hardships aplenty. "The challenges have been evolving over time," says Vinayak. "Initially design by itself was a hard nut to crack. Today, ensuring reliability and product quality is the main challenge," he adds.

Another crucial issue is creating a product for an ecosystem that is yet to be built in India. Expounds Vinayak, "Overall, you will see a technology difference of at least 5-6 years when compared to the international market. Since we are the only players designing a smart electric vehicle here, we need to take initiative to develop the ecosystem and that is not easy," he says.

Another potential problem could be patchy networks that could come in the way of fully experiencing the smart vehicle for what it was designed for. The scooter will have a connected touchscreen dashboard that will integrate the vehicle firmware and sync it with the startups cloud database and layer with predictive analytics.

But the makers of S340 seem to have worked out this hurdle too. "Connectivity is just one layer in the entire value proposition of this smart scooter," says Phokela. "It is a USP for sure, but not something that will interfere with the overall performance of the vehicle. If you have to evaluate it on the parameters of a traditional scooter, it will still be the best out there." "Unfortunately there are some things we have no control over. But having said that, patchy network is a problem that is not unique to us - it is universal. It will certainly become more efficient with time. Airtel has been setting up new towers and with the entry of Reliance Jio, there is going to be a clear impact in the industry," he adds.

Driving tomorrow's technology

However, the main issue may still be around product adoption. But the startup is under no delusions when it comes to that. "This is a high tech product and consumers will most likely have to pay a premium - perhaps somewhere between a Honda Activa and a Vespa. But it is important to note here that it is a premium product not because it has a diamond-encrusted exterior but because it is a tech-driven product and that will excite only a certain kind of consumer. That typically would be early adopters in any tech-driven curve, which is what we are going after," says Phokela..

"To give you some perspective, it is like smartphones 7-8 years back. Only certain kind of people wanted it back then, but with consumer acceptability and with prices coming down, it became mainstream. We are looking at two fundamentally large trends - one is within the auto industry itself by going electric, and the larger trend is that of being connected. So there is no question that it is only going to grow from here on," he adds.

READ MORE:
Transport|technology|S340|Ravneet Singh Phokela|Marty McFly|Innovation

 

[AbRaj]

Need for Speed: Ather Energy's S340 may be India's fastest e-scooter

While the buzz has been around Ather Energy creating India's first 'smart' two-wheeler, what has gone unnoticed is the S340's speed. Tesla broke the speed barrier with its P90D and Ather has the potential to do with its e-scooter.


Charged up



Clean sweep


Production in progress




Motoring on




Driving tomorrow's technology


READ MORE:
Transport|technology|S340|Ravneet Singh Phokela|Marty McFly|Innovation

It looks very promising start for AE, hope they they find enough customers to keep it up

 

[Indx TechStyle]

India’s Tata Motors Aims to Turn Around Domestic Business by 2019

 

[bose]

I am planning to buy Honda BRV ... I have a 6 member family ... I will prefer a 7 seater ...

Is it worthwhile to spend on Honda BTV ?

 

[aditya10r]

I am planning to buy Honda BRV ... I have a 6 member family ... I will prefer a 7 seater ...

Is it worthwhile to spend on Honda BTV ?

abso fucking lutely mate
its possibly the best car i have driven under 11 lakhs

 

[Indx TechStyle]

India’s Mahindra enters ride-hailing battle
Discount car sales partnership with Ola pits group against Tata-Uber tie-up.
© Bloomberg

The fight for dominance in India’s ride-hailing market has heated up after carmaker Mahindra & Mahindra announced a partnership with local app Ola — pitting them against a similar tie-up between Tata Motors and Uber.

Yesterday, Mahindra said it aimed to sell 40,000 vehicles in the next two years under the scheme, which allows Ola drivers to buy cars at reduced prices and on preferential financing terms, with no deposit.

Anand Mahindra, the group’s chairman, said the move targeted younger Indian consumers “who prefer shared mobility solutions”, giving Mahindra “first-mover advantage in the fast-growing sharing economy”.

Chirag Shah, an analyst at Edelweiss Securities, said the Ola tie-up could give a boost to weak sales of Mahindra’s Verito passenger car.

“Consumers haven’t liked the Verito because of its looks, which are slightly dated. But the guy driving that car for commercial purposes won’t care about its looks,” he said.

Mahindra is one of several global automakers to have partnered with a ride-hailing app, anticipating a change in the pattern of vehicle sales from a sector that has only taken off in the past five years.

In May, Toyota invested an undisclosed sum in Uber and announced a leasing scheme for its drivers, while General Motorsin January invested $500m in Lyft, and Volkswagen has invested $300m in Israel’s Gett.

The trend spread to India in June when the Tata Group — India’s biggest conglomerate by sales — announced a tie-up with Uber, offering preferential financing and insurance options on Tata Motors cars for its drivers.

However, neither Mahindra nor Tata has taken an equity stake in its ride-sharing partner.

Uber entered India in 2013 and is now expected to redouble its efforts in the country. Ola claims to have a lead in market share, operating in 102 Indian cities — nearly four times Uber’s tally.

 

[Indx TechStyle]

India enhances its repute in auto exports

With Indians increasingly opting for bigger cars and local quality standards similar to those abroad, it has become easier for manufacturers to pick models for exports from India.

MUMBAI: India is emerging as an export base for mid-size cars, SUVs and engines as it builds on the image as a key supplier of small cars. India-made Vento sedan is one of Volkswagen's top selling models in Mexico. According to people in the know, Hyundai Motor, the biggest auto exporter from India, is considering exporting its new generation mid-size Verna, codenamed HCI, from next year. Creta SUV from Hyundai's Chennai factory has also got acceptance abroad.

Premium brands like Chrysler and Land Rover, too, are considering exporting vehicles made in India to right-hand-drivemarkets, said people with knowledge of plans. Ford Motor will start exports of EcoSport SUV to North America from here next year, while the Suzuki Baleno hatchback is supplied to Japan by the company's Indian unit, Maruti Suzuki.

With Indians increasingly opting for bigger cars and local quality standards similar to those abroad, it has become easier for manufacturers to pick models for exports from India, said Gaurav Vangaal, senior analyst for forecasting at IHS Automotive. Exports allow them to post "better operational performance domestically due to combined volumes of domestic (sales) and exports," he said.

India is already a key exporter of the likes of Hyundai's Grand i10, Ford Ka and Chevy Beat. For some global automakers, such as General Motors and Nissan Motor, exports have helped offset weak demand in the Indian market. Hyundai is looking to ship about 11,000 units of the next gen Verna from India in 2017 and take it to 70,000 by 2019-2020, said three component suppliers to the local unit of the South Korean carmaker. Indian manufacturing will ease production load on its Korean operations, allowing it to use the factories there to increase the production of Elantra and Sonata which are in demand in its home market.

"We are planning to make a new version of the Verna next year in the second half. India is one of the countries which will see increase exports of Verna," Hyundai Motor India managing director YK Koo told ET. "Volume for Verna exports is yet to be finalised, but it will be significant," he added.

The Hyundai Creta has a one- to two-month waiting period in overseas markets, Koo said. "We are exporting 5,000-6,000 units a month,the numbers of mid-size cars will go up with new model."

Apart from fully built cars, vehicle makers plan to source engines from India. Ford India is set to begin exports of 2- and 2.2-litre Panther engines from its factory at Sanand in Gujrat from 2017-18. Its plan is to produce 2 lakh engines at Sanand and export to all over the world. Panther engines will be supplementing a new range of smaller petrol engines, internally named Dragon, which will power the next gen Figo and Aspire cars. A Ford India spokesperson said as a policy, the company does not comment on speculations on products or manufacturing plans.

Exports of cars longer than 4 metres accounted for 20% of total exports of 6.5 lakh vehicles in fiscal 2016 — the share has more than doubled in three to four years. If vehicles like Toyota Etios and EcoSport are included — these are slightly smaller — mid-size segment will account for almost 30% of India's total car exports.

Experts say though the domestic market share for many MNCs has remained modest, it is the export strategy which has help them justify big capital investments and break even in India with economies of scale.

ET View: Proactive Policy Needed
Prepare for the long-haul. Zooming exports of midsized cars calls for proactive policy to boost efficiency in transport and logistics. We do need modern multimodal transport systems to quickly and smoothly move the cars and SUVs from the factory to ports, and beyond. The car makers need to tie-up with the Railways for efficient, cost-effective haulage. The Railways need to ramp up supply of specially designed car-carrying wagons that traverse crosscountry. Further, a welldesigned goods and services tax, GST, would speed up car production, transport and shipment.

READ MORE:
World|Toyota Etios|Suzuki|people|Nissan Motor|Nissan|New
For more information, India has alralready overtaken PRC in automobile exports.

 

[Indx TechStyle]

Why made in India cars will soon be safer, cleaner — and costlier

Aware of the global settlement, Chandra demanded global parity and extended warranty in India. Complaints to the company followed. He reached out to the India boss Roland Folger, and even the Germany headquarters.

For 16 months now, Manish Chandra, 48, has been grappling with a flaw in the Mercedes E-Class (2006 model) he had purchased in 2014 in the used car market. The Delhi-based entrepreneur first discovered the defect in May 2015 when a strong smell of fuel overwhelmed the car cabin. Multiple garage trips and technical examinations followed. The diagnosis? Leaks in the fuel system. Chandra eventually realised that the E-Class models manufactured between 2003 and 2009 have a manufacturing defect in their gas tanks. In 2014, the luxury carmaker, facing class action lawsuits and a federal investigation in the US, had extended its original warranty of two years on gas tank components of E-Class vehicles made in the 2003-09 period to 15 years.

In India, however, it seems a different story. This January, Chandra was handed a bill of roughly Rs 5 lakh to fix the problem, with the company offering to bear 25% of it. Aware of the global settlement, Chandra demanded global parity and extended warranty in India. Complaints to the company followed. He reached out to the India boss Roland Folger, and even the Germany headquarters. In May, he sent the company a legal notice. Last month he reached out to the Government of India, drawing attention to his problem and the broader issue of how global MNCs short-change Indians on issues like recalls. The government responded promptly, directing the company to address the issue within 15 days.

As of going to the press, Chandra hasn't heard from the company. The problem persists. His car languishes in the garage. "Now, it is not so much about my problems getting addressed. It is about making carmakers in India accountable to the same standards they are held to globally," says Chandra. When ET Magazine contracted Mercedes-Benz India, the company maintained that it follows a global recall policy and the car in question did not have any recall on the fuel tank.

"For the recall of a particular vehicle series, globally the company provides the relevant authorities with information about the recall and simultaneously informs the customers in writing through its authorised service partners. The objective is to present the exact nature of the recall that affects the vehicles and to immediately ensure varied service measures, to rectify any technical issue at the earliest. The necessary work to rectify the issue is carried out by Mercedes-Benz in line with the measure free of charge," the company said. It maintained that the Indian operation practises stringent global recall procedures and has an automated dealer management system which is online and brings in complete transparency in this regards, and the customer is duly informed in case of any recall.

According to the company, in this particular case, the Mercedes-Benz E-200 Compressor (W211, 2006 model) is "presently in its 11th year of operation and did not have any recall on fuel tank".

Even if Mercedes-Benz India has a watertight case, the fact is carmakers are able to get away in India with what they can't in the developed world. And that may be because of the regulatory vacuum back home as far as car recalls are concerned. Unlike most other countries, there is no mandatory recall policy here.

In 2012, the Society of Indian Automobile Manufacturers (SIAM) came up with a voluntary recall code, which has resulted in over 2.3 million recalls so far. But all this is set to change with the Cabinet approving the new Motor Vehicle Act 2016 last month. Besides many other changes, it is now mandatory for carmakers to recall faulty vehicles. Also, the government may appoint a nodal agency to launch its own investigations and order recalls in future. Vehicle recall isn't the only area that is getting a look-in. Standards for virtually every aspect of the industry — from safety (crash tests) to fuel emission norms (BS-VI), tax laws (GST) to fuel efficiency standards (CAFE), hybrids & e-vehicles (FAME) to end-of-life scrappage policy — are being reset or newly framed. "We are at the cusp of a significant change. The industry has really grown in the last two decades. Maturity of the regulatory environment is critical. If we have to compete in the world economy, we have to adopt global standards," says Shekar Viswanathan, vicechairman, Toyota Kirloskar Motor.

Call it the coming of age. Or, simply an inflection point for India's Rs 4.5 lakh crore automobile industry. Two decades back, it was a fledgling industry, selling just 4.4 lakh cars (often dated models), with around five players jostling for space. Today, it is among the world's fastest growing markets with annual sales nudging 3 million units and virtually every global carmaker vying for Indian buyers. By 2020, India is expected to touch 5 million units to become the fourth largest car market. Alas, amid the brisk pace of sales growth, India's regulatory framework for Motown lagged far behind.

Belatedly, the gears have begun to shift as old policies are overhauled and new ones rolled out. "Many of these policies have been in the works for a long time. The only difference is that this government is keen to implement and put them to play," says Rakesh Batra, partner (automotive), Ernst & Young India. The impact will be significant — both for the consumers and the industry. A reason why Rakesh Srivastava, senior vice-president, Hyundai Motor India Ltd, says: "By 2020, we will see a new dawn, a new order for India's auto industry." These new policies and norms will bring the regulatory framework in India almost at par with the best in the world, making vehicles sold in India cleaner, safer and better on all counts.

Shifting Gears

Here's a quick lowdown on the range of policies that have been rolled out or are in the works.

The biggest perhaps is the BS-VI norms (BS stands for Bharat Stage) that comes into effect in 2020, which entail enormous planning and an estimated Rs 70,000 crore of investment if they have to be complied with. As worsening pollution made headlines and pressure from the judiciary and environmentalists built up, the NDA government took an unprecedented step to bring in BS-VI norms by 2020, bypassing the fifth stage and advancing the earlier deadline of 2022. This will bring India's vehicular emission standards closer to those in Japan, the EU and the US.

By April 2017, the Goods and Services Tax (GST) is scheduled to replace over 17 indirect central and state taxes, turning India into one market. While GST affects the entire economy and is not specifically for the auto industry, the impact on Motown will be significant. So far, thanks to tax barriers, interstate movement of components and vehicles is costly, logistically difficult and time-consuming. GST will help smoothen movements and simplify (and lower) taxation. By some estimates, it will cut logistics and supply chain costs by up to 40% and make cars cheaper across the board.

To boost sales of eco-friendly hybrid or electric vehicles, last year the government rolled out the FAME policy (faster adoption and manufacturing of electric vehicles), as part of the National Electric Mobility Mission Plan. It offers incentives of up to Rs 29,000 for two-wheelers and Rs 1.38 lakh for electric and hybrid vehicles. The result is beginning to show. Over 80,000 electric and hybrid vehicles have been sold till now. The uptake of Maruti's mild hybrids cars like Ciaz and Ertiga has been encouraging. Spurred by incentives, the segment is suddenly seeing a lot of action. MNCs like Hyundai, Nissan, Toyota and the homegrown M&M are readying over a dozen new models to launch in the next three years.

Effective October 2018, the government is readying a policy to beef up safety features that will bring in stringent crash test norms. It will be applicable for all new models launched from October 2017 and for existing models by October 2018, bringing India at par with global testing norms. According to media reports, this will make it mandatory for cars to have the manual override device that enables a person to open the door with or without electrical power. Besides vehicle reverse gear sensor system in new cars, all cars will be mandated to have a seat belt and a speedometer alert when the vehicle crosses 80 kmph.

To push off the road old polluting vehicles offering low mileage, the government is readying an end-of-life scrappage policy. Under consideration is a plan to offer financial sops to owners of old vehicles (over 15 years) to replace their cars. It also plans to set up bodies that will issue fitness certificates and dismantling centres to handle scrapping in a more organised manner.

Then there are CAFE (corporate average fuel efficiency) norms. They mandate, besides other things, that fuel efficiency of cars (calculated on the basis of weighted average of a carmaker's fleet) must improve by 10% and 15% by 2017 and 2022 respectively, with 2009-10 as the base year. While keeping emissions under control, it will also mandate manufacturers to do star ratings for their cars, just like in electrical appliances. Finally, there is the Motor Vehicle Act 2016, amended last month, which mandates stiffer penalties for traffic offences like drunk driving. Safety norms too are being tightened — like mandatory helmets for two-wheelers and safety belts in cars. Besides, it also spells out a vehicle recall policy for the industry. "We were stuck in a time capsule. With so many regulatory changes, we are now trying to make up for lost time," says Vishnu Mathur, director-general, SIAM.

Most of the above regulatory changes will kick in between 2015 and 2020. To be fair, all these policies have been long overdue in India. "It is not so much the nature of the regulation as much as the timing and proximity of so many changes that makes it more challenging," says Timothy Leverton, president and head of advanced product engineering at Tata Motors. For example, it took Europe nine years to move from Euro IV to Euro VI emission norms. India will be doing it in almost one-third the time. "It hasn't happened anywhere in the world. It is not so much about technology. That is available. It's the time and the costs involved to test and roll out all our models that make it so challenging," adds CV Raman, executive director, Maruti Suzuki.

Challenges apart, what is beyond doubt is that this flurry of policy-level changes will have a major impact in the way cars are made, sold and bought in India by 2020.

Reset for Motown

For the manufacturers, compliance standards across the board in India — from safety to emissions and recalls — will become stringent and almost at par with the best in the world. This will demand that the companies bring in their latest technologies and models to India and do frequent refreshes to keep up with the norms, like other markets.

While specifics are yet to be spelt out, one of the biggest fallouts of GST will be that the segmentation in the industry might get rejigged. Currently, there are four slabs of excise duties for cars — 12%, 24%, 30% and 40%, depending on the length of the car (sub 4 metre gets 12%), engine capacity and also ground clearance. Companies worked hard to optimally exploit this differential taxation, a reason why many models were launched in the sub 4 metre segment. GST means one tax slab. "For the auto industry it might at best be two tax slabs. Segmentation and sales push based on tax will change and so will the buying behaviour," says Rajeev Singh, partner, KPMG India. For instance, fuel type — diesel or petrol, or hybrid, or electric — may play a bigger role in buyers' decision-making. With BS-VI emission norms, diesel variants will become pricier and less attractive than petrol even as government incentives will spur demand for eco-friendly vehicles.

By 2020, India will have a globally harmonised regulatory mechanism. For Indian carmakers like M&M, "it will help us in catering to global demands better and create a bigger opportunity for us," says Pravin Shah, CEO, M&M Automotive. For MNCs, it might lead to a rejigging of their manufacturing strategy. Says Srivastava of Hyundai: "It will be a lot easier for MNCs to manufacture and cater to global needs from India." This will boost exports.

All this will impact the dynamics in the used car market. Here's how. So far, the used car market has been largely local (because of state registrations) and unorganised (88% of the total). With differential emission norms, there is also a big city/small city divide. Therefore dated cars from big cities can ply and fetch decent price in smaller cities. With GST, India will become one market with seamless inter-state movements. "Residual value of used cars will drop dramatically," says Nagendra Palle, CEO, Mahindra First Choice, a pre-used car mart. Experts see car prices undergoing a reset. While GST will mean cheaper cars in 2017, new safety features and BS-VI norms will make them costlier. Diesel cars could get pricier by almost 20%.

Frugal Solutions Needed

As India evolves its regulatory framework to close the gap with other big markets, Wilfried Aulbur, managing partner, Roland Berger India, would like it to move cautiously. "Simply bringing European safety-emission norms to India may not work. India is a very different market. It must find its own solutions," he says. India is a price-sensitive, small car market with thin margins and very different driving conditions. For example, the average speed in Indian cities is around 25 km/hour as against 200 km/hour in Germany. Studies in Delhi suggest that over half of the pollution is caused by road dust, with vehicular pollution contributing just about a fifth. "India cannot afford a major demand contraction in the industry, which creates jobs. It must explore ways to find its own frugal solutions," warns Aulbur.

Further, setting norms is the easier part, the tougher task is to do what's required to make them work. For example, oil companies must meet the deadline to produce BSVI-compliant fuel. "Our past experience makes us a little apprehensive," says Viswanathan of Toyota. Even for the scrappage policy to work, the government must set up inspection and certification centres and also scrapping facilities, says Deepesh Rathore, director of auto consultancy firm EMAAA. Similarly, new safety norms will make cars safer, but will it dramatically improve road safety? India will need to overhaul its road engineering, traffic management and pedestrian mobility to make roads safer, says VG Ramakrishnan, MD of automotive consultancy firm Avanteum Advisors.

The industry's biggest hope is for a sustained policy without flip-flops in between. "This is an industry with huge investments and lead time. What we need is a clear, longterm roadmap, much beyond 2020," says Jnaneswar Sen, senior VP (sales & marketing), Honda Cars India Ltd.

READ MORE: Wilfried Aulbur|Mahindra|India|Goods and Services Tax|Germany

 

[Indx TechStyle]

Upcoming Subcompact SUVs In India

Highlights

• Maruti, Tata, Hyundai will introduce sub-compact SUVs in the next 2 years.
• Jeep will introduce a made-in-India compact SUV in 2017.
• Mahindra's upcoming C-SUV will be based on the Tivoli's X100 platform.

Boasting of practicality, presence and efficiency, subcompact SUVs are all the rage in the country at present and clearly the perfect upgrade for most buyers. No wonder then, the segment commands profitable numbers for auto manufacturers with offerings like the Hyundai Creta, Maruti Suzuki Vitara Brezza and Renault Duster, the latter being the SUV to have kickstarted the segment in India. With more automakers wanting a piece of this growing pie, we list down the upcoming compact and subcompact SUVs that will be launched in the country.

Maruti Suzuki Ignis at the 2016 Auto Expo
1. Maruti Suzuki Ignis

Maruti Suzuki has managed to claim a significant lead with the Vitara Brezza, but the automaker is not stopping at that. The company's next launch in the sub-compact SUV space will be theIgnis that was showcased at the 2016 Auto Expo. Already on sale in Japan, the Ignis is compact in dimensions similar to a hatchback but is styled like an SUV, replete with flat front, high ground clearance, pronounced wheel arches and stubby rear. Power is expected to come from the new 1.0-litre BoosterJet petrol engine, while the 1.2-litre could also be a possibility, whilst paired to manual and automatic transmissions. After a host of speculations, it has been reported that the Ignis launch is on schedule and will be hitting the dealerships this festive season. Prices are expected to commence at Rs. 5 lakh (ex-showroom). It will also be the next model from Maruti to be sold via Nexa dealerships.

2. Tata Nexon

Tata Nexon at the 2016 Auto Expo

Tata Motors is finally getting things right in the passenger vehicle space with the Tiago. The Indian automaker will now be finding its niche in the sub-compact SUV space with the Nexonthat is likely to make it to dealerships by the end of this year or in 2017. The Nexon is a sub-4 metre offering and we did see the close-to-production ready version at the Auto Expo this year. The production spec model will closely resemble the prototype complete with the beefy and curved styling. Engine options are likely to include the 1.2-litre Revotron petrol and an all-new 1.5-litre diesel, paired to manual and AMT units. Prices are expected to start around Rs. 7 lakh (ex-showroom).

Jeep's upcoming C-SUV will be based on the Renegade's platform
3. Jeep C-SUV

This is by far one of the most awaited compact SUVs and will really bring the iconic Jeep brand in the hands of many. While Jeep has just started its operations in India with 3 models, the company has also announced that it is developing a compact SUV (C-SUV) for emerging markets, which will be manufactured at the automaker's Ranjangaon facility and exported globally. What's also interesting is that the model will be based on the Renegade platform, retaining the brand's trademark attributes. The upcoming Jeep C-SUV will be hitting the Indian shores in 2017, but an official global unveil is expected later this month. The Jeep SUV will first go on sale in Brazil, while the model will lock horns against the Hyundai Creta, Renault Duster and others in India.

Mahindra's compact SUV will be based on the Tivoli's X100 platform
4. Mahindra's Tivoli Based C-SUV

More recently, Mahindra made it clear that the SsangYong Tivoli won't be making it to India and instead, the country will be getting an all-new compact SUV based on the Tivoli. The SsangYong SUV has been appreciated overseas and we can expect a lot of those attributes to be incorporated into the model developed for India. The Mahindra compact SUV will be based on the Tivoli's X100 platform and will draw power from a 1.5-litre diesel and an all-new 1.5-litre petrol engine. The model is likely to be more urban-driven as a product and will come loaded with a host of active and passive convenience features, apart from the tech and safety equipment. Mahindra's upcoming Tivoli based SUV will hit the Indian market in 2017 and will take on the Hyundai Creta and Renault Duster among other offerings.

Hyundai Carlino at the 2016 Auto Expo
5. Hyundai Carlino

Hyundai India showcased its iteration of a sub-compact SUV this year at this year's Auto Expo called the 'Carlino Concept' and the model will be the Korean car maker's answer to the Vitara Brezza, Ford EcoSport among others. Now, from what we have learnt, Hyundai's upcoming sub-compact SUV will be modeled after the Creta, sharing a host of features and equipment with the latter as well as the i20. A stretched version of the Grand i10 platform is likely to underpin the model codenamed 'HND-14'. While the car maker has not divulged too many details, the HND-14 is confirmed to be under four metres in length and will be arriving to the showrooms by 2018.

Dying for Mahindra's Tivoli.

 

[Indx TechStyle]

Maruti network to handhold Suzuki Motorcycle in India

Having conquered almost half the Indian car market, Japanese automobile major Suzuki plans to harness the strengths of Maruti Suzuki to grow its two-wheeler business in the world’s largest market. The key initiatives include appointment of several Maruti Suzuki dealers as sellers of Suzuki two-wheelers and increasing the base of common component suppliers between the two companies.

About two dozen Maruti Suzuki dealers have been roped in as Suzuki Motorcycle dealers. “As a conscious effort, we are trying to get good Maruti Suzuki car dealers on board to sell our two-wheelers. Many of them are excited to sell our superbikes like Hayabusa,” said Satoshi Uchida, managing director, Suzuki Motorcycle India.

There is also a thrust on expanding the base of common component suppliers. “Same set of vendors (who supply to Maruti Suzuki) can be used for many components to bring costs down,” Uchida added.

Suzuki entered the Indian two-wheeler business directly, about a decade ago after an earlier tie-up with TVS came to an end. However, it remains a marginal player. In the year ended March 31, 2016, it sold 313,300 two-wheelers, 8 per cent less than the previous year and had a market share of 1.9 per cent. The overall industry’s domestic sales grew 3 per cent to 16.45 million units. Suzuki competes with strong local players like Hero, TVS Motor, Bajaj Auto and another Japanese company Honda in the Indian market. Maruti Suzuki, another Indian subsidiary of Suzuki, holds a 47 per cent share in the Indian passenger vehicle market.

R C Bhargava, chairman at Maruti Suzuki said, “Both the companies are promoted by Suzuki. We have a much longer experience of the Indian market. We can help them (two-wheeler business) to the extent it does not impact the interests of our company and its shareholders. They can get advantage of our bargaining strength for raw materials.”

Uchida said some executives are also on deputation from Maruti Suzuki in key roles like plant production and purchase. In recent years, Suzuki Motorcycle’s corporate office has also shifted to the same building in Delhi’s Vasant Kunj where Maruti Suzuki is headquartered.

“They (Suzuki Motor Corporation and its management) recognise the success of Maruti Suzuki. They hope we will also reach a large scale in future. We wish to make a strong foundation in India,” said Uchida who took charge of the Indian two-wheeler business early this year.

Suzuki has invested about Rs 3,000 crore in the Indian two-wheeler business since inception and has a capacity to produce 0.7 million units a year. It was only in the last financial year that it managed to report a small profit. Uchida said the company aims to sell half a million two-wheelers in 2017 and reach one million sales by 2019. It will have to expand capacity in next couple of years to reach the one million mark.