Indian Automotive Sector

[RPK]

TVS Motor unveils automatic bike

Venu Srinivasan-driven TVS Motor Company on Wednesday announced its foray into the 110 cc segment by unveiling two brand new products — an auto-clutch motorcycle and an automatic scooter.

The two products were the outcome of a deep research into meticulously collected customer feedback. The vehicles were designed to provide a stress-free and also a joyous riding experience for customers, Mr. Srinivasan said.

TVS Jive, the 110 cc motorcycle, will be available at Rs. 41,000 across the country. TVS WEGO, the 110 cc scooter, is priced at Rs. 42,500.

The company had relied on the T-Matic technology while designing TVS Jive. This featured a rotary gear technology along with an automatic clutch. Mr. Srinivasan told presspersons here that the company had moved an application with the appropriate authority for getting the technology patented.

Production of TVS Jive had already commenced at the company’s Hosur facility. The market launch would happen next month. The gearbox for Jive would come from Indonesia.

The engine was designed indigenously, Mr. Srinivasan said. He expected WEGO to be launched in January after the Auto Expo. Mass production of WEGO would begin soon thereafter. The scooter was designed to be a multi-user vehicle across different age categories and gender, he said.

“We want to get a deeper customer insight and build joy into every aspect. We want to bring the stability of a motorcycle to a scooter,” Mr. Srinivasan said to a query on the WEGO. The development cost of Jive was around Rs. 25 crore and that of WEGO Rs. 50 crore.

“The break-even sales won’t be high,” he said. Much of the facilities for production of these two products were same and major investment had gone mainly into tooling, he added.

TVS Motor would launch two more models next year. It could be more in the nature of upgrades, he said.

Earlier Mr. Srinivasan said the launch of Jive and WEGO would make TVS Motor a complete player in the motorcycle and scooter segments. To a query, he said, ``market will not allow us to stay still and just consolidate.”

The executive bike segment, Mr. Srinivasan said, was in the vicinity of three lakh vehicles. TVS Motor would aim for a 10 per cent share of this pie. He was confident that the company could sell 20,000-25,000 Jive vehicles.

Though the company was selling a small volume Flame bikes, he said, “TVS is otherwise absent in this segment.” The Flame was selling 4,000 units a month. Mr. Srinivasan was confident that this number would go up to 10,000 units.

On the company’s project in Indonesia, he said, “the going there is little slower that what we have expected.” Besides a tough market, there were issues vis-a-vis tie up with a local finance company. At present , TVS Motor is selling three products in the Indonesian market.

On the three-wheeler sales, he said the company was hoping to end the current fiscal with sales of 20,000 autos.

Mr. Srinivasan was hoping that this number would double next year. The company had already been exporting three-wheelers to five countries.

 

[bengalraider]

TATA motors puts JLR back in the black

Jaguar Land Rover see sales rise
Jaguar Land Rover had seen its sales rise 23% in the second quarter after its new models were well-received.

Owner Tata Motors said new products such as the upgraded Range Rover, Range Rover Sport and Discovery 4 had had successful launches.

Although Jaguar Land Rover made a net loss of £60m in the July-September quarter, it was much less than the £240m loss it made a year earlier.

India's Tata Motors made a net profit of 217.8m rupees ($4.7m; £2.8m)

That compared with a loss of 9.4bn rupees a year earlier.

Tata said Jaguar Land Rover's performance was the highlight of the quarter.

Tata bought the British marques from Ford for £1.7bn in June 2008.

Sales volumes at Jaguar Land Rover rose to 44,300 vehicles from 35,900 in the previous quarter.

Aggressive cost reduction had also paid off, Tata said.

"The [Jaguar Land Rover] business is witnessing some stability in the external environment with certain key markets showing signs of recovery," Tata said in a statement.

Story from BBC NEWS:
BBC News - Jaguar Land Rover see sales rise, boosting Tata profits

Published: 2009/11/27 17: 04 : 05 GMT

© BBC MMIX

 

[RPK]

Tata Motors Planning For Nano Hybrid, Says Ratan Tata


According to Ratan Tata, the Chairman of the Tata Group, who was addressing the South Korean daily Maeil Business Newspaper, Tata Motors has plans for manufacturing the hybrid versions of Nano. Nano is termed as the cheapest car of the world.

According to Ratan Tata, India will respond to low-priced goods in a better manner than it responds to high-end products, which slowly will spread across the world.

Tata Motors, India's biggest vehicle maker, saw the car industry's future lying in economic-friendly models, the daily said.

But he has not disclosed more in the cost of the hybrid versions. The first Nano hit Indian market in July and was priced at $2,000.

He has also mentioned that Tata Motors has plans for exporting Ace, the light truck from the company, to South Korea. The firm also plans to explore chances for assembling or manufacturing the model in the plant located in South Korea.

The Indian conglomerate is also studying investments in automobiles, software and hotel businesses as well as bio fuel in South American markets such as Brazil and Argentina

 

[Jarnee]

I dont see Nano on roads yet.? If some one has money to spend 1.6 lac on road, he might buy my Hundai santro 5 year old ..very good condition ..with AC/ PSterring..why go for any other thing..you can still buy maruti 800 A/C 2002 Model for less than a Lac rs. in seconds market with EMI.

 

[RPK]

fullstory

Hyundai November sales up 28.46 pc

New Delhi, Dec 1 (PTI) The country's second largest car maker Hyundai Motor India Ltd (HMIL) today reported a 28.46 per cent growth in its total sales in November at 55,265 units, its highest ever since starting operations in India 12 years ago.

HMIL had sold a total of 43,020 units in the same month last year.

Domestic sales during November jumped by 92.82 per cent at 28,162 units against 14,605 units during the same month last year, it said.

The company, which is the country's largest car exporter, however, witnessed a dip of 4.61 per cent in its overseas shipments at 27,103 units compared with 28,414 units in November last year.

"The overall economic scenario has been positive and this has translated into more footfalls in showrooms and higher automobile sales as indicated by this month?s figures," HMIL Senior Vice-President Arvind Saxena said.

 

[RPK]

Toyota to unveil concept compact car in India next month

Japanese car maker Toyota Motor Corporation would unveil the concept model of its compact car for the Indian market next month.

Toyota’s Indian unit, Toyota Kirloskar Motor Pvt Ltd (TKM) plans to start production of its much awaited compact car in December next year at its second plant being built here.

The compact car project is Toyota’s most ambitious venture in India in its 11-year existence and the company is betting big on this initiative to become a volume player.

“Both hatchback and sedan version of concept vehicle of the compact car will be showcased at Auto Expo (to be held at Pragati Maidan in New Delhi from January 5 to 11)”, TKM Deputy Managing Director Sandeep Singh said. “It’s a concept vehicle coming from Japan“.

“Production will start by December of 2010. First year production plan is 70,000”, he said.

TKM is also showcasing its Toyota Prius hybrid car in the biennial event in the national capital and is looking for its launch in the Indian market.

“Prius we are going to display and you can say we are talking about launch of the Prius”, Singh said.

He said Prius is not a volume product and the company is just looking to sell just a few numbers.

“We just want to impress upon the government to give some special concession on duty (for Prius). Otherwise, it does not make sense to pay such a high duty and sell it. It could be very expensive”, Singh said.

He declined to talk about the price tag of Prius in India.

TKM expects to close the current calendar year with sales of 53,000 units, up from 51,800 in 2008, Singh said.

TKM, a joint venture owned 89 per cent by Toyota and 11 per cent by the Kirloskar Group, last month announced that it has crossed four lakh unit retails sales in India since inception.

The company also announced a 50 per cent jump in total sales at 5,650 units in October 2009, compared to the same period last year. The rise in sales figures can be attributed to the excellent response for the Corolla Altis and Innova and introduction of the Fortuner in August 2009, the company said.


Currently, Toyota has 93 dealerships and has firmed up plans to enhance its dealer network to 150 outlets before the launch of its much awaited compact car in early 2011.


Toyota’s products in India are Corolla Altis, Innova and Fortuner, manufactured in India, while Camry, Prado and Land Cruiser are imported as Completely Built Units.

 

[RPK]

fullstory

India Yamaha Motor sales up 2.12 pc in November

New Delhi, Dec 1 (PTI) Two-wheeler maker India Yamaha Motor today said its sales have grown by 2.12 per cent in November to 17,055 units, against 16,701 units in the same month last year.

"We are delighted that our sales have consistently grown throughout the year. Our Fazer, FZ series and R15 continue to receive good response from the customers," the company's Chief Executive Officer and Managing Director Yukimine Tsuji said in a statement.

He said the company expects the demand to continue at a similar level in the coming months on account of improving economic conditions and consumer sentiments.

The company will also demonstrate its next generation products during the upcoming Delhi Auto Expo in January, 2010, Tsuji added.

 

[RPK]

fullstory

Car prices set to increase by January

New Delhi, Dec 1 (PTI) Come New Year, cars will be costlier with automakers like Toyota and General Motors today saying that they will hike prices by up to three per cent due to rising input costs, while the country's largest car maker Maruti Suzuki India is still evaluating the situation.

"We will be increasing the prices of our models by 2-3 per cent from January first week to offset rising input costs," General Motors India (GMI) Vice-President P Balendran said.

GMI sells models, including hatchback Chevrolet Spark and Aveo UVA, sedans Aveo, Optra, Cruze and SUV Captiva.

Toyota Kirloskar Motor also said it will increase the prices of three of its models -- Innova, Corolla Altis and Fortuner -- by 1.5 to 2 per cent from January 1 next year.

 

[NSG_Blackcats]

Tata Nano to be featured at New York design museum

Tata's Nano small cars parked for distribution in Hosur.

The Tata Nano, designed to be the world’s most affordable car, will be on view at prestigious Smithsonian’s Cooper-Hewitt, National Design Museum in New York’s from Feb 18 through April 25 next year.

A bright, sunshine yellow Nano, built by Indian auto major Tata Motors, will be on display in Cooper-Hewitt’s Great Hall, along with diagrams and a short film describing its concept, development and production, the Smithsonian Institution announced Friday.

The name “Nano” connotes high technology, small size and low price, it said, noting Tata Motors is currently developing versions of the Nano for European and American markets.

 

[CS1.6]

Is nano a safe car?

it looks cute, but not safe;

dont know about their performance in any safty tests

 

[bengalraider]

Is nano a safe car?

it looks cute, but not safe;

dont know about their performance in any safty tests

Safety Features in the Tata Nano

Ever since the wonder car Tata Nano was commercially launched in March, speculations were rife about Tata Motors costs cuts on the product. A closer look at the Tata Nano by experts revealed that it was a much better car, than imagined. It’s cute exterior design, amazing driving dynamics and performance has left everybody's jaws hanging in suspended animation.

The final conclusion of these experts is that Tata Nano is a work of sheer genius. Tata does not seem to have compromised on any Tata Nano features for safety and comfort of the drivers and passengers even with its drastic cost-cutting. Car safety technologies in Nano have not been spoken much about since the car was launched. But to everybody's amazement, Nano's safety features is not the chink in the armour as Nano underwent severe safety testing to ensure passenger safety has passed in flying colors.

Unfortunately, in India car manufacturers never highlight the car safety features and always keep it under wraps until the car is delivered to the consumers. There is very little awareness in the country about the importance of safety for car passengers.

The biggest safety device is the body shell. Unlike conventional cars, Nano is not built on chassis structure. Nor does it have the monocoque shell on which most modern cars are built. Instead, the Tata has employed a mono-volume body in white - It is actually a shell minus the bonnet, door and bumper. The shell is much safer and stronger than the monocoque. But the technology is far simpler!

Tata Nano could have used the technology used in Smart Fortwo, where an extended aluminum bonded chassis extrudes on to the body to enhance safety. But Tata Motors officials reasoned that using this on Nano would increase costs, which they could never afford. After all the price tag had been decided even before the car was manufactured and the engineers had to work backwards to develop the car.

Engineers developed an intelligent technology to mitigate costs and enhance safety. The Nano was developed to meet all safety standards required for a passenger car. It is designed to meet the upcoming safety norms.

Though Indian safety standards are minimal and incomparable to the safety standards in U.S., Nano is developed to meet Indian standards and existing safety norms. The currents norms specify that the all cars should meet frontal crash tests, impact of head on steering wheel, body block on steering column, seat belt anchorage tensioning and others.

Nano has passed all these tests. In addition to the above mentioned safety norms, Nano was also subjected to ‘roof crush’ test. The car underwent the test to determine its strength during rollovers. The roof has been strengthened to prevent it from collapsing in a crash and thereby resulting in loss of lives of the occupants.

The structure has been cleverly designed to have front crumple zone, strong side bars to resist side intrusion. The spacious cabin has been designed to increase passenger survival possibility in the event of a collision. The passenger compartment has been strengthened to minimize deformation and protect passenger from bodily injury.

To achieve this feat, Tata Motors used the computer simulation based on finite element based methods to reinforce passenger compartment. The doors are engineered with side intrusion bars, so that they do not get jammed during a crash.

Tata Motors say that the tubeless tyres, apart from reducing friction, they provide better balance and stability.

Nano Europa will have even more stringent safety standards. Nano Europa is likely to be launched in Europe between 2011-12. As such Tata Motors is developing the car to meet the strict Euro NCAP norms. Tata Motors plans to install Electronic Stability Programme (ESP) system with anti-lock brakes. The same technology is likely to be offered in India as an option at some extra cost. Tata Motors is developing state-of- the-art ABS with Electronic Stability Programme. For this Tata will be seeking the expertise of the automotive software development division in Ferrari motor sports wing. Nano Europa will also feature airbags.

The extensive innovation that went into its processes and technology is what shaped the Tata Nano. It is a unique car with some world class technologies. Even three years from now, Tata Nano will still be the world’s cheapest car, as no rivals have the stomach to make an entry to this market space till than thanks to the “R” word which has hit the Automobile industry like Tsunami. It is highly important that Tata Nano gets all their technologies patented in all countries at the earliest. This will help safeguard the Indian ingenuity in creating the worlds’ cheapest car, cheaper than Suzuki’s M800.

Tata Nano transition from being a figment of imagination to a part of reality has been one of the best chronicled auto stories in India and the world.

Car Articles India | Safety Features in the Tata Nano
http://www.youtube.com/watch?v=3sZitve3SUw
drive test of tata nano by autocar.co.uk
http://www.youtube.com/watch?v=ahw7-KarkWw
autocar.co.uk crash tests the nano at MIRA

compare it to test of brillance bs6 by imotormag.co.uk below
http://www.youtube.com/watch?v=PHZqcKj7jNM

 

[Pintu]

Volkswagen starts production of first India car- Automobiles-Auto-News By Industry-News-The Economic Times

Volkswagen starts production of first India car
12 Dec 2009, 1625 hrs IST, AGENCIES

MUMBAI: Volkswagen AG started production of its first compact car in India on Saturday, hoping to capture up to 10 percent of the country's fast-growing automobile market within the next six years, the company said.

The Polo, a compact hatchback, rolled off the lines at Volkswagen's factory in Pune, an auto hub a few hours outside Mumbai, shortly before noon. The factory, opened earlier this year, is part of a 580 million euros ($846.8 million) investment, which the company says is a ``key element'' in its India strategy.

The factory can produce up to 110,000 cars a year, and will be used to manufacture the Skoda Fabia, Polo and a sedan to be launched in the second half of next year, the company said.

It did not reveal the price of the Polo, which has gotten 130,000 orders since its European launch in May.

``We aim to achieve a market share of 8 to 10 percent in the next four to six years with the three Volkswagen Group brands, Audi, Skoda, and Volkswagen,'' Volkswagen Group board member Jochem Heizmann said in a statement.

Global auto majors Volkswagen, General Motors, Ford and Nissan have been slow to awaken to the particularities of Indian consumers, who overwhelmingly prefer small, affordable cars rather than the more luxurious models that sell well in the US, Germany and China. Now, as developed world sales slow, they're racing to catch up.

To do so, they must make cars in India, which allows them to avoid hefty import taxes and keep production costs competitive. Volkswagen said it aims to boost localization to 80 per cent of total production from 50 per cent now.

Ford says its made-in-India compact, the Figo, will go on sale in the first quarter of 2010. Nissan says its first India-made car _ a new version of the hatchback
that now sells under the Micra brand in Europe and the March brand in Japan _ will roll out in May 2010. General Motors started India production of its pint-sized Chevrolet Spark in September 2008, and is reportedly planning to launch a new model, the Chevrolet Beat, in the first half of next year.

Volkswagen also bought a piece of India's rising prosperity with the purchase of a 20 percent stake in Japan's Suzuki Motor Corp. Suzuki's Indian subsidiary, Maruti Suzuki, sells one of every two cars in India.

JD Power forecasts car sales in India will grow from 1.7 million in 2008 to 3.2 million in 2015, while auto sales in China will surge from 8.8 million to 16.0 million over the same period.

 

[Pintu]

Volkswagen-Suzuki to roll out Rs 2.5-lakh car in India- Features-The Economic Times

Volkswagen-Suzuki to roll out Rs 2.5-lakh car in India
11 Dec 2009, 0530 hrs IST, Nandini Sen Gupta, ET Bureau

NEW DELHI: The Volkswagen-Suzuki alliance plans to develop a brand new small car for the Indian market in the Rs 2-2.5 lakh range, which could replace the Alto when the Indian arm of Suzuki decides to retire its top-selling model.

"We will need a car in the Rs 2.5-lakh apiece range. First we had the M800, then the Alto. At some point we will need a replacement for the Alto. That price range is the entry level for Indian customers today, so we can't leave that segment open," Maruti Suzuki chairman RC Bhargava told ET.

Volkswagen and Japan’s Suzuki Motor had, on Wednesday, announced a deal which will see the German carmaker picking up a 19.9% stake in Suzuki for $2.5 billion. The companies plan to develop small cars and electric vehicles under both brands. The new car that will be priced at $4000-5000 in the European market will be the cheapest car from the Volkswagen stable below the Up, which carries a price tag of around $8800.

“Volkswagen will be greatly interested in a car below the price segment of the Up, which we have already displayed in India, and that is something we will need to check in our future together with Suzuki,” Fabian Mannecke, the spokesman for Volkswagen, told ET.

Volkswagen is launching its Polo hatchback in India next year, which will be pitted against the Suzuki Swift and other premium hatchbacks such as the Hyundai I20. Mr Mannecke said VW was not targeting the Nano segment. Currently the cheapest product from Suzuki stable is the M800, which will get phased out in 11 large cities across India that will adopt Euro 4 emission standards in 2010.

The alliance will mean serious competition for Tata Motors diesel cars Indica Vista and Indigo, said Manish Mathur, principal at AT Kearney. "The cross-pollination of technology, product architecture and product development will mean both Suzuki and VW will now be able to bring in more diesel options, especially in small cars," he said.

Although the contours of the partnership are still being worked out, both partners are interested in developing common platforms. Sharing platforms will enable VW to use Suzuki for contract manufacturing both in Japan and India. Mr Mannecke said the option of using Maruti Suzuki's plants to manufacture VW cars for European markets-a strategy that Nissan is already employing-is something VW management is thinking about.

While VW is looking for a small car in the price range of euro 2000-2500 ($4000-5000) with which it can not only drive bigger sales in India and Europe, Suzuki is looking to source diesel engine technology from the German company.

"Suzuki does not have diesel technology and that is one of the main things that will interest them in the future," Mr Mannecke said. Suzuki's current diesel engine used in the diesel versions of Swift and Dzire, is sourced from Fiat through a three-way partnership with GM and Fiat.

However the global partnership will not result in the two companies sharing distribution and dealership networks in India. According to VW officials, the main focus of the synergy, particularly in India, will be on back-end areas like production and purchasing of parts.

"Volkswagen and Suzuki are getting into this cooperation with a strategic view but each brand will retain its own outlook for the customer. Nothing will be shared at the front-end including dealerships and distribution networks. The synergy will be at the back-end in production sharing and common purchasing of components," Mr Mannecke said.

GM too had a 20% stake in Suzuki Motor, but did not have any front-end partnership with Suzuki in the latter's most profitable market-india. India now contributes around 80% of Suzuki's profits in the first half of this fiscal year, up from 33% in 07-08. The Indian arm contributed 20% of Suzuki's consolidated turnover in the fiscal half.

Maruti Suzuki doesn't see the alliance impacting the company's policies. "Maruti Suzuki is 54% owned by Suzuki, which drives the management and policies. So unless there's a change policy in Japan, which seems to me unlikely, things wont change. If GM at 20% stake did not disturb Maruti, why should Volkswagen?" said Mr Bhargava.

 

[S.A.T.A]

India's Nano the star of Fukuoka Motor Show

India's Nano the star of Fukuoka Motor Show

FUKUOKA (Kyodo) The Nano, Indian automaker Tata Motors Ltd.'s ultralow-priced car, made its first public appearance in Japan on Friday, becoming the talk of the second Fukuoka Motor Show, organizers of the event said.

Numerous visitors on the show's opening day flocked around the car. The Nano hit the Indian market this summer carrying an unprecedented sticker price of just about ¥220,000. In comparison, the lowest-priced cars in Japan cost around ¥600,000.

Also on display at the Fukuoka Convention Center and two other venues were state-of-the-art environmentally friendly vehicles, a product category the world's carmakers are competing fiercely in because of its growth potential.

In total, 173 vehicles, including concept cars by Toyota Motor Corp. and three other Japanese companies as well as 15 European and non-Japanese brands, are being exhibited.

Japan times

 

[sob]

Egypt sends a Nano invitation to Tata

The Egyptian government has asked Tata Motors Ltd to set up a manufacturing facility in the country to make left-hand drive versions of the world’s cheapest car for sale in the local market and West Asia.

“Egypt is seeking consent of Tata for left-hand drive Nano to be produced in Egypt, where a huge market is expected not only internally, but in the left-hand drive market in the Middle East and in Europe,” said Mohamed Higazy, Egypt’s ambassador to India.
A Tata Motors spokesperson said it was premature to comment on this.

“While Tata Motors has said that the Tata Nano and its variants (such as the Tata Nano Europa) will also be introduced in other countries, the company has not decided on its manufacturing strategy (in other countries), let alone Egypt,” said the spokesperson in an email.

Tata Motors has a presence in Egypt where it sells trucks and buses. Higazy insisted that Tata Motors would definitely consider the government’s proposal after the initial phase of the launch of the Nano. “They are looking into it. We proposed it to them. It is a private proposal. Their dealers in Egypt would like to have an assembly line because of many reasons—its social implications for small and middle class consumers.”

In March, at the Geneva Motor Show, Tata Motors chairman Ratan Tata unveiled a version of the Nano that met European safety and emission standards. The firm plans to launch this version in Europe by 2011.

“If components are shipped from India, setting up an assembly unit in Egypt makes sense as it would help the company save on transport costs,” said Vaishali Jajoo, an analyst at Angel Broking Ltd.

Egypt has a population of around 84 million and recorded a gross domestic product (GDP) growth of around 6.9% last year; its per capita GDP is around $5,400 (Rs2.5 lakh).

Egypt’s location provides Indian companies an opportunity to cater to West Asia, Africa and Europe. Indian investments in Egypt are valued at $2 billion. Indian firms operating in Egypt include the Aditya Birla Group, Indian Farmers Fertiliser Cooperative Ltd, Essar Group and Kirloskar Brothers Ltd, among others.

 

[ppgj]

Eko Vehicles launches India’s first hybrid scooter ‘ET-120′
Posted on 21 December 2009

Eko Vehicles ET 120 Eko Vehicles launches Indias first hybrid scooter ET 120Bangalore-based maker of electric vehicles, Eko Vehicles Pvt. Ltd, has finally launched India’s first hybrid scooter ‘ET-120’ in the market.

It should be noted that ET-120 is the first hybrid two-wheeler to run on a combined fuel of a 70cc petrol engine and an electric motor. The top speed of ET-120 is 65km/hour.

The zero-debt company claims that its hybrid scooter will give a fuel average of 120 km/litre to its consumers. ET-120 is expected to price between INR 40,000 to INR 42,000 to Indian consumers.

Apart from latest development, Eko Vehicle has also announced the launch of another scooterette ‘Strike’. The vehicle is priced at INR 22,000.

Presently, Eko Vehicles is in talks with investors to raise INR 37 – 47 crore by the end of January. The company had a turnover of Rs12 crore in 2008-09.

Eko Vehicles launches India’s first hybrid scooter ‘ET-120′ | The First Reporter

 

[enlightened1]

Will Your Next Car be Made in India?​

http://www.time.com/time/world/article/0,8599,1949084,00.htmlhttp://www.time.com/time/world/article/0,8599,1949084,00.html

By Nandini Lakshman / Mumbai Tuesday, Dec. 22, 2009
TIME Magazine

India, home of the $2,500 Tata Motors Nano, is quickly becoming the capital of a new generation of tiny econo-cars as major auto manufacturers crowd into the fast-growing market. Over the next 18 to 24 months, Honda, Toyota, Ford, General Motors and Nissan-Renault are all launching compact vehicles for India, which is rising as a manufacturing and export hub for cheap, fuel-efficient transportation.

With auto sales in the West in a deep slump, 2009 saw carmakers increasingly focus on developing countries like China and India, which have largely shrugged off the global recession and where disposable incomes continue to grow rapidly. China this year will surpass the U.S as the world's largest car market, while India has become the largest market for small cars, according to Dilip Chenoy, director general of the Society for Indian Automobile Manufacturers. Four out of every five cars sold in India are small cars, defined as vehicles with engines displacing less than 1.2 liters.

Suzuki India leads the segment with a 46% share, followed by Hyundai at 16.5% and Tata Motors at 14%. But the rankings are set to change as others pile in. On Dec. 12, Volkswagen announced its first made-in-India compact, the Polo, which will be manufactured at Chakan, 110 miles (175 km.) from Mumbai. India will also be the lead country for Honda Motors' planned global small car — tentatively named the 2CV — which will begin selling by the end of 2011. Struggling General Motors began producing the pint-sized Chevrolet Spark in India last year and plans to roll out another compact, the Chevrolet Beat, in the first half of 2010, while Ford Motors CEO Alan Mulally unveiled a made-in-India four-door hatchback, the Figo, in New Delhi in September.

Meanwhile Nissan's Micra hatchback will debut in India in May. And Renault, which has a tie-up with India's Bajaj Auto, is taking on the 660 cc-engine Nano by developing its own low-priced city car that will be constructed partially of motorcycle parts to save costs.

In terms of overall market size, India remains relatively small with about 1.8 million vehicle sales a year compared with China's 6 million. But the economy of the world's second most-populous country is growing by about 7% a year, offering tremendous upside. There are just 11 cars on the road for every 1,000 Indians, according to a Deloitte report, compared with 511 in the U.K. and 22 in China.

India's government has been encouraging automakers to build cars in India to avoid high import levies of up to 120% and to minimize production costs. Volkswagen, for example, plans to increase sourcing parts locally from 50% currently to 80% in the next two years, according to Joerg Mueller, head of the German carmaker's India group. (Watch TIME's video "Owning a Nano, the World's Cheapest Car.")

As car buyers worldwide shift away from gas-guzzlers to smaller vehicles, India appears destined to become a hub for manufacturing small cars for export, says Shekhar Vishwanathan, deputy managing director for Toyota in India. Toyota has designed a new small car for India, which is slated to start rolling out of the Japanese giant's plant at Bidadi on the outskirts of Bangalore by the end of 2011. Toyota plans to eventually export the car to South Africa and other developing markets.

A total of 350,000 cars will be exported from India this year, 30% more than were exported in 2008. As factory output grows, India's economy as a whole will get a boost, says Abdul Majeed, who heads the auto practice at PricewaterhouseCoopers in Chennai. Currently, the auto sector accounts less than 1% of India's gross domestic product, says Majeed, compared with 3.5% in China and 4.5% for the world as a whole. Economists say the automaking could account for 10% of India's GDP by 2016.

But some are concerned about the impact on the environment as millions of new drivers try to merge with India's already overtaxed road networks. "There have been concerns," says Darius Lam, assistant editor at Autocar Professional, a Mumbai-based trade publication. But the latest generation of vehicles will meet the latest European emission standards, and India's "road infrastructure is being rapidly improved to accommodate the new fleet," Lam says. At the moment, nothing seems able to stall India's drive to become a player in the global auto industry.

 

[NSG_Blackcats]

India overtakes Japan in super-compact car market

Washington: India has emerged the leader in small cars, overtaking Japan, as declining sales in Western markets coupled with robust growth in Asia redraws the global map of the auto industry faster than many expected.

It’s well known that China will overtake the U.S. as the world’s largest car market this year. Less noticed is the fact that India will top Japan for the first time in sales of super-compact cars. It overtook Japan as the world’s number one producer of basic cars in 2007.

Automakers like Ford, Nissan, Volkswagen, General Motors, and China’s Shanghai Automotive Industries Corp. are pouring hundreds of millions of dollars into the country, hoping to capture a piece of the growing market for tiny, inexpensive passenger vehicles. As they do so, they are quietly transforming India into an export hub for small car manufacturing.

 

[nitesh]

well a 1 crore car
Nano gets ready for Rs 1-cr makeover- Automobiles-Auto-News By Industry-News-The Economic Times

 

[Pintu]

Delphi to showcase number of auto components in Delhi Expo- Auto Components-Auto-News By Industry-News-The Economic Times

Delphi to showcase number of auto components in Delhi Expo
28 Dec 2009, 1358 hrs IST, PTI

NEW DELHI: Global auto component maker Delphi on Monday said it will showcase a number of its automotive technologies during next month's Delhi
Auto Expo including SD card-based navigation and generic body control module designs.

The Troy (Michigan)-based firm will also display other products like advanced engine management systems for cars and two-wheelers, battery monitor for lower energy consumption, alternate refrigerant solutions, and enhanced vehicle security, consumer safety and accident prevention products.

"We are excited about the opportunities offered by the Indian market and we are committed to grow our businesses with both domestic and international original equipment manufacturers (OEMs). Our exhibit at Auto Expo will showcase comprehensive technology portfolio relevant for the India market," Delphi Asia Pacific President Majdi Abulaban said.

He said the displays are a precursor to the company's plans for expanding its product portfolio in the country.

The company's Electronics and Safety division will demonstrate SD Card-based Navigation which can support over one million searchable point of interests.

Its Powertrain Systems division will showcase Evaporative Emission Canisters, Gas EMS product portfolio and Fuel Handling Systems, while the company's Thermal division will feature an alternate refrigerant solution.

Delphi has more than One lakh employees at 270 locations in 32 countries. In India, its major customers include OEMs like Maruti Suzuki India, Tata Motors, Toyota Kisloskar and Honda Motorcycle and Scooter India.