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MRF switches to Skoda Fabia for APRC

MRF will now participate in the FIA Asia Pacific Rally Championship 2012 with two Skoda Fabia S-2000 cars, instead of the Mitsubishi four-wheel-drive that has been the vehicle of choice for the last 10 years.

The switch will make Team MRF more competitive against the reigning champion Proton S-2000 cars, which were competing with an advantage over the unmodified Mitsubishi Evo X cars over the last few years.

Immense pressure

Skoda won the SWRC and the International Rally Challenge Championships last year and is likely to put the Proton development team under immense pressure.

The change in car would give Gaurav Gill another chance to win the APRC title which he narrowly lost to his teammate Taguchi in 2010. No Indian has ever won an FIA international rally title before.

Source : http://www.thehindu.com/sport/motorsport/article2876030.ece

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Maruti launches the 2012 A-Star

Maruti’s small car offering, the A-Star gets a refresh for the New Year. The company now offers the A-Star with new alloy wheels and an integrated rear spoiler.

On the interiors front, the 2012 A-Star gets dual tone beige and black upholstery. Maruti has also put in 50:50 split rear seats and more cubby holes in the cabin.

Airbags and ABS are now optional on the A-Star with two new colour options, Glistening Grey and Pearl Caffeine Brown.

Maruti hasn’t tinkered with the engine and the new A-Star retains the 998cc K10B petrol engine with 67PS of power and 90NM of torque, mated to a 5-speed manual or 4-speed automatic transmission.

The new A-star is available in five variants – LXI, VXI, VXI AT, ZXI and ZXI (with ABS and airbags). Prices start from Rs 3.66 – Rs 4.40 lakh, ex-showroom Delhi.

Speaking at the launch, Shashank Srivastava, chief general manager, marketing said, “A-star is one of the most vibrant brands in our portfolio. Some of its high points such as contemporary styling, dynamic handling and ride quality, best in class turning radius, power, flat torque and superior performance has made A-star a popular choice especially amidst the youth. The smart modifications in the spiced-up A-star are in line with customer feedback and seek to enhance the overall look, feel and comfort of the buyers.”

Source : http://ibnlive.in.com/news/maruti-launches-the-2012-astar/224744-25-166.html

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M&M to raise XUV 500 manufacturing capacity at Chakan

Utility major Mahindra & Mahindra Ltd has firmed up plans to expand the manufacturing capacity of its newest Sports Utility Vehicle (SUV) XUV 500 at its Chakan manufacturing base located near Pune in Maharashtra.

The automotive company, which has a capacity to produce up to 2,500 XUV 500 vehicles per month, is initially looking at increasing the capacity to 3,000 vehicles per month to meet the growing demand in the domestic market.

“Due to increasing demand, we are also going slow on exports, particularly to South Africa,” Mr Arun Malhotra, Senior Vice-President, Sales and Customer Care, Mahindra & Mahindra, said.

Speaking to newspersons after the launch of Mahindra XUV 500 in Andhra Pradesh, Mr Malhotra said that the company received an overwhelming response for the SUVs in October 2011 in the five cities it launched with over 8,000 bookings. This necessitated the company to close the bookings.

“After we meet this demand, we have decided to cover 19 cities in the second round of bookings to be open later this month. Even if were to expand capacity, it would not be easy to ramp up as suppliers would have to meet the demand. The company has enlisted the services of consultant Deloitte to guide it through the booking process, which would provide the right approach for allotments,” he said.

“Priced at Rs 11.2 lakh and Rs. 12.57 lakh ex-showroom, respectively in Hyderabad, we have managed to woo buyers from different categories,” he said.

Referring to the company business, Mr Malhotra said during the first nine months of April-December 2011, M&M auto division has grown by about 26 per cent and the SUV segment by about 16-17 per cent in spite of relative tough business environment.

Source : http://www.thehindubusinessline.com/companies/article2808340.ece

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Nissan unveils Evalia at Delhi Auto Expo

Nissan has launched India’s newest family vehicle – the seven-seater urban utility Nissan EVALIA at the Delhi Auto Expo. To be built at Nissan’s Chennai plant, EVALIA’s combination of space, style and practicality makes it an ideal vehicle for larger families.

EVALIA is 4.4m long, 1.88m tall and 1.69m wide, offering good interior space. It design adopts many styling cues from Nissan passenger cars but adds a few unique features of its own.

At the front, EVALIA has a new interpretation of the Nissan grille which flows into the slim wrap-around headlights and at the rear it has a wide-opening top hinged tailgate.

Practicality is ensured by the twin sliding side doors, designed to make ingress and egress as easy as possible, especially in tight parking zones.

Visibility out is exceptional, thanks to side windows that are unencumbered by doorframes or body pillars. As a result of innovative design thinking and clever packaging, the interior space has been maximised.

A high driving position not only gives a clear view of the road ahead, but also allows the fuel tank to be placed beneath the floor under the front seats.

Strut-type front suspension is mounted on a rubber-insulated subframe to isolate road noise and vibrations. An anti-roll bar is attached directly to the strut assembly for better body roll control while cornering and ripple control shock absorbers enhance ride comfort.

The compact rear suspension, which is also mounted on a rubber insulated sub frame, uses wide single leaf springs to provide the strength needed for a full load of seven passengers but without compromising ride comfort.

Safety features include a high intensity cabin structure and extensive door impact absorption material to provide a safety shield around the occupants. Pedestrian safety considerations include shock absorbing materials in the bumper, bonnet and cowl.

Production will start at Nissan’s Oragadam plant in the middle of 2012. Sales are due to start in the second half of the year.

Source: Yahoo News

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Diesel car boom in India puts automakers in a fix

New Delhi: Carmakers in India face a quandary: diesel or petrol? In a market where once-rampant growth has been stalled since mid-2011, demand for diesel-powered cars continues to surge, with buyers willing to wait months to take delivery because of a widening gap between prices of petrol and diesel.

Even so, Maruti Suzuki and South Korea’s Hyundai Motor Co, which together sell 70 percent of the passenger cars in Asia’s No. 3 economy, are reluctant to invest to make more diesel cars, even if it means losing customers.

“We are still contemplating,” Arvind Saxena, director for sales and marketing at Hyundai’s Indian unit.

As with many industries in India, the plans of carmakers hinge on uncertain government policy.

“If we invest, and in months, or years, the (diesel) price rises, we are left high and dry,” Saxena said on the sidelines of the biennial India Auto Expo.

India deregulated the price of petrol in June 2010, and prices have shot up 30 percent since then. Diesel, widely used by farmers and manufacturers, remains subsidised.

Petrol, viewed as the rich person’s fuel in India, now costs 56 percent more than diesel.

However, the government is contemplating new taxes on diesel vehicles, according to news reports, and this could disrupt the demand pattern. The taxes could be announced in the 2012/13 budget that is expected to be handed down in mid-March.

“In the absence of any clear policy, we are at a dilemma,” said Mayank Pareek, head of sales and marketing of Maruti Suzuki, controlled by Japan’s Suzuki Motor Corp.

“Our engineering people tell us that if you set up a plant (for engines) with a capacity of 100,000 vehicles, it costs 1,000 crores (10 billion rupees, or $189 million). Now the call of this decision is 1,000 crores — to do or not to do?”

DIESEL-POWERED SALES

Diesel cars now account for about 40 percent of total sales in India, compared with less than 20 percent few years ago.

Sales at market-leading Maruti Suzuki, predominantly a maker of petrol-fired cars, fell more than 16 percent in the nine months to December as a series of interest rate increases and rise in gasoline prices hit demand.

The company was also hobbled by labour disputes.

The demand slump forced Maruti to cut production of several petrol models in August, while some of its diesel models have a waiting period that runs to months.

Maruti could have sold more cars in 2011 only if it had larger capacity to make diesel cars, Chairman R.C. Bhargava told media in November, lamenting how competitors like utility-vehicle maker Mahindra & Mahindra, which only makes diesel vehicles, were enjoying strong growth.

Nissan Motor Co, which started making cars in India only in 2010, is better positioned. Its plant in Chennai can switch between diesel and petrol engines.

“We’re agnostic,” Andy Palmer, an executive vice president at Nissan, said in an interview at the auto show.

“If the government dictates that the diesel price is X, we give you diesel. If it’s Y, we say: here’s petrol.”

Source : http://zeenews.india.com/business/economy/diesel-car-boom-in-india-puts-automakers-in-a-fix_36783.html

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Made marketing mistake with Nano, says Tata

Can sales of 150,000 cars be called a flop?

Ratan Tata says there’s no case — referring to the pejorative frequently used to describe the Nano’s sales at various fora.

“Yes, we made a mistake after we clocked sales of 100,000. We did not get our marketing act together after reaching that number,” Tata told editors at a breakfast meeting in New Delhi on Thursday.

“There is effort to discredit the vehicle. We never promoted it as a poor man’s car, but as an affordable car. But whatever stigma is there, we’ll work to overcome that. It’s not a flop, but sure we wasted opportunities,” said the 74-year-old maven.

“We had a role in emphasising the need for a frugal car. And I see resurrection of this car over the next couple of months,” Tata said.

On Jaguar Land-Rover, he said it would be “stupid” to merge it with Tata Motors. Both are great assets that need to be restored to their old glories, according to Tata.

But no, there will be no diesel version of the Nano “anytime soon.”

Ravi Kant, vice-chairman of Tata Motors, added: “It’s unlikely at least for a year, though we are looking at it.”

What about the criticism of Tata Motors cars? Tata was candid: “In the early days, the criticism was justified.” He alluded the company’s learning curve has been steep and it will get there in the course of time. The point to note, he said, is that it was all about indigenous efforts of a truck maker.

“Tata Motors has come a long way. When I took over, it was a commercial vehicle maker. We successfully added passenger cars. When we built the Indica, people said India couldn’t design a car. We proved that wrong,” Tata said.

Despite the additional expenditure of having had to shift the Nano factory from Singur in West Bengal to Sanand in Gujarat, Ravi Kant said there is no change in the breakeven timeline of the small car.

The call for Tata Motors is to establish presence in various markets in Asia and Africa, rather than the developed ones such as those in Europe, said the Tata Sons chairman.

What about a Nano for the developed markets? It’s in the works, but will take time.

Tata Motors is also not looking for a successor to former group chief executive Carl Peter-Forster, Tata said.

He praised West Bengal Chief Minister Mamata Banerjee for the way in which she handled the fire tragedy at Amri Hospital. Will he go back? “We’re keen – if an amicable reception is given,” he said.

In 12 months, Tata will be hanging up his boots. Will he continue with positions in the Fiat SpA board and on Tata Sons?

“That call will be Fiat’s, while I would continue on the board of Tata Sons’ overseas companies. That’s to maintain our international perspective,” he said.

On his successor Cyrus Mistry, Tata said he wants to give him a free hand. “When I took over, I was given that – it’ll be up to him to run the business the way he wants to.”

Source : http://www.dnaindia.com/money/report_made-marketing-mistake-with-nano-says-tata_1634045

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Indian Car Makers End 2011 With Sales Growth

MUMBAI — India’s top auto makers Tata Motors Ltd. and Mahindra & Mahindra Ltd. ended 2011 with growth in vehicle sales for December, as diesel-powered vehicles remained insulated from the demand slowdown in the local auto industry.

Tata Motors, India’s biggest car maker by sales, sold 82,278 units in December, up 22% on year, the company said in a press release. Mahindra, the market leader in sport utility vehicles, sold 42,761 vehicles, up 26%.

India’s auto industry has been persistently troubled by high interest rates and fuel costs, hurting consumer demand. However, preferences are shifting to diesel vehicles due to their higher efficiency, and as the fuel is cheaper than gasoline.

Tata Motors sells some of India’s cheapest diesel-powered passenger cars such as the Indica. Mahindra has mostly diesel-powered vehicles in its portfolio.

A recent report from Deloitte said overall demand in the country’s auto sector, until 2010 one of the fastest growing in the world, is slated to improve in 2012 as inflation concerns ease and fuel prices likely stabilize.

Tata Motors sold 29,417 passenger vehicles such as the Indica, Vista, Indigo and Aria in December, up 27% from a year earlier. Sales of the Nano minicar, sold as the cheapest car in the world, rose 29% to 7,466 units.

India’s biggest maker of commercial vehicles sold 47,747 trucks and buses in the month, up 14%. However, exports in December fell 3% to 5,615 units.

Mahindra & Mahindra’s sales growth was led by higher volumes in passenger vehicles, which includes utility vehicles and the Verito. Sales in the segment grew 24% to 19,341 units in December. Mahindra, which stopped booking the XUV5OO, after being flooded with orders following a September launch, said it will re-open bookings this month.

The company also sells the Scorpio, Xylo, Bolero and Thar utility vehicles and the Gio, Maxximo and Genio light trucks.

It exported 2870 vehicles during the month, up 89% on year.

Sales of Toyota Kirloskar Motor, the Indian unit of Toyota Motor Corp. more than doubled in December to 15,948 units, compared with 6,362 units a year ago.

Sales of its Etios series topped yearly volume, with 43,313 units of Etios sedans and 20,262 units of Liva hatchbacks sold in 2011, a press release said.

Source : http://online.wsj.com/article/SB10001424052970203462304577135633769155556.html?mod=googlenews_wsj

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Ford EcoSport on display at Delhi Auto Show 2012

Visitors who head to the Delhi Auto Expo 2011 FordHall will feast their eyes on the new EcoSport on display. Ford will be bringing forth a number of vehicles which are either concept or in production, and the EcoSport CUV is among those on display which is most likely to attract the attention of eager sports car enthusiasts.

Based on the Fusion Crossover, EcoSport will be meant for European buyers for the moment, and it will be some time before it makes an appearance on Indian roads. Besides EcoSport, Ford will also be showcasing Figo, Fiesta, Ford Classic and Endeavour at the Delhi Auto Show from January 7 to 11, 2011.

The Ford stand at the show will cover 1400 square meters and will be an ideal location for visitors to view Ford classics. It is estimated that over 1.4 million visitors will visit the Auto Show and a number of activities are planned by Ford which would also include allowing the audience to take virtual control of a vehicle on an LED screen, while a video will explain Figo Smart technologies.

Source : http://www.rushlane.com/ford-ecosport-on-display-at-delhi-auto-show-2012-1226119.html

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