Category Archives: Auto Sector

Tata Motors Survive Amid Uncertain Monday Trade

Monday’s stock market was full of ups and downs and it would not be wrong to say that the whole day bent towards low trade.

Though there was instability, Tata Motors was announced as gainer for Monday’s trade. It rose by 4.9% which amounted to Rs 169. There is reason for it as on the same day, the company launched the novel model of Nano.

The new model promises to deliver better services and also has increased fuel efficiency and would also boast of complete new looks which were not present in old models, but it would be sold at the same price.

It is not that Tata did not witness loss in share market. It declined by 11.36% but despite that, it managed to register growth. As per reports by brokerage firm Kotak, there is no doubt that there has been growth and main credit of it should go to the novel model of Nano, but it should be noted that there are places where it needs improvement.

First of all, the company is too lenient on operating profit front and this is the main reason for decline in the sale of domestic business. In addition, various factors like high discounts, increased market investment and negligible presence in the passenger car segment are also some of the many reasons for the decline.

Jaguar Land Rover has shown great sales in market and it has made the company earn a fat amount. TO tell in details then its profit after tax is £1 billion. Profit could have increased if forex losses would not have been there.

Officials were of the view that it is a luxury drive and is doing exceptionally well in China and Russia but as said, it is a complete luxury drive so its sales have found to be declining in developing countries by 2%.

In Comes Revamped Nano

With the intent of improving its well below-estimate sales of Tata Nano, a product ballyhooed as the cheapest car in the world, Tata Motors has recently released an upgraded and updated model of Nano. The reports were by the company on Monday that it is not entirely pleased by the sales of Nano.

Tata has roughly sold 130,000 units of Nano since the car made its debut way back in April 2009. The four-seater Nano costs no more than 140,000 INR ($2,730), and was developed with a motive of triggering the price war in Indian automobile sector. However, sales of Nano have not been promising at all and the underperformance has been haunting Tata Motors ever since the lack of sales against expectations was reported.

On the other hand, quite a few controversies surrounded Nano during its preliminary phase. Some of the troubles faced by Tata Motors regarding the development of Nano include a rise in input costs which forced the company to spike the price of Nano and later, it was caught in a land dispute at the original manufacturing unit of Nano. Due to the land dispute, Tata was forced to move its production unit to an alternative location.

Earlier in November, Tata gave Nano owners the choice to installing safety protection in their car following reports that seven Nano cars had caught fire, though the carmaker denied the situation being a recall, claiming that the fires were particular to the units.

In its latest statement, the company revealed that the modified Nano will showcase more fuel efficiency, an ultra-powerful engine along with subtle changes in interiors. Tata Motors is the third-largest carmaker in India, in terms of domestic sales.

Skoda Unveils Sedan Rapid

Are you fond of cars? If yes, then you have a new model in the Indian car market, from Czech carmaker Skoda, to freak on.

Skoda on Wednesday launched its new mid-sized Sedan Rapid in India. The newest car model has been priced averagely between Rs. 6.75 lakh and Rs. 9.19 lakh (ex-showroom Delhi).

Skoda Auto AS is the Czech unit of car maker Volkswagen AG. Thus, the pricing strategy of the new Sedan Rapid aims to successfully live the toughest and the direct competition that the model will have with other good selling car models in the Indian market including Maruti Suzuki India’s Swift DZire, Hyundai Motor Corp.’s Verna and Volkswagen’s Vento.

Skoda Auto India has high hopes that the new model Rapid will efficiently survive the competition in the Indian market and will soon become the best-selling car in the country.

“India is a very important market for us. There was a gap between our compact car Fabia and the sedan Laura. To fill that gap, we have launched the Rapid in the C segment”, Skoda Auto India Marketing Head Mr. Tarun Jha said in his statement while highlighting details about the company’s newest model.

Rapid is available in both petrol and diesel variants. Also, the model has been powered with 1.6 litre engine with its base of group firm VW’s Vento platform.

While discussing about the company’s expectations from the sales of the new sedan Rapid, Skoda Auto India Associate Director (sales and after sales) Mr. Ashutosh Dixit said that the company has set a target to sell 2,000+ cars every month and they have crossed their fingers to grow the sale of the C segment cars by approximately 5% this year.

Mahindra Unveils XUV500 at Rs 10.8 lakh

Good news for car enthusiasts in India is coming straight from the horse’s mouth. The Indian car manufacturing prodigy, Mahindra and Mahindra has rolled out its first international edition of Sport Utility Vehicle (SUV).

The latest launch, dubbed XUV500, was launched at a sparkling ceremony in Pune, which is reportedly home to the company’s latest sensation.

As per company officials, two editions (W8 and W6) of the SUV will be offered in both four-wheel and two-wheel drive.

According to latest information, the Mahindra W8 has been pegged around Rs 11.95 lakh, ex-showroom price in Delhi. On the other hand, the Mahindra W6 will cost Rs 10.8 lakh, ex-showroom price in Delhi.

However, the said prices are applicable only for the two-wheel drive version of Mahindra W8/W6.

The XUV500 is accessible in both four-wheel (4×4) and two-wheel (4×2) drive edition, with an ultra-advance gearbox and 6-speed manual.

The powerful wagon is fueled by 2.2-litre, “Common-Rail Diesel Engine” (CDE) and the chunk is similar to the one available on Mahindra’s benchmark ‘Scorpio mHawk’.

In addition, the company claims efficient fuel efficiency, certified by ARAI, of 15.1 km/l, which will certainly mark the second best fuel-efficient product developed under Mahindra’s glittering passenger SUV inventory, just next to ‘Mahindra Bolero’.

Toyota Plans To Appoint 1,500 People In India By 2012

Japanese car manufacturer Toyota announced that it will hire approximately 1,500 individuals for its Indian operations by the coming year (2012) as it steadily strengthens its production capacitance in the Indian market.

The company, which is present in the country via a JV with the Kirloskar Group, is making an investment of Rs 1,650 crore to strengthen its production capacitance by one lakh units and for raising localization of components by the next three years.

On the sidelines of an Automotive Component Manufacturers Association (ACMA) summit, Toyota Kirloskar Motor (TKM) Deputy Managing Director (Commercial) Shekar Viswanathan said, “We will be hiring about 1,500 permanent employees by 2012 to meet our expansion demand. In addition to this, we will hire some contract workers also.”

The company will employ people crosswise different disciplines as the growth programme steadily unfolds.

Presently, the company is expanding the combined capacitance of its two plants in Bangalore to 2.1 lakh units as against 1.5 lakh units by the coming year.

Afterward, the capacitance at the first facility will be increased further to 1,00,000 units as compared to 90,000 units, whilst the production at the second facility will be augmented to 2,10,000 units as against 1,20,000 units.

The company has made an investment of Rs 3,200 crore to establish its second manufacturing plant, with an opening installed capacitance of 70,000 units yearly, which is now being elaborated to 1.2 lakh units each year.

Toyota had also declared plans to construct an engine facility, and swell its transmissions capacitance at a collective investment of Rs 500 crore to fulfill the demand of its Etios and Liva models.

In addition, the company will roll out the diesel versions of its small car Liva and sedan Etios in the Indian market on September 9.

The company had launched the petrol edition of the Etios in 2010, whilst the Liva model was introduced in June 2011.

At the present moment, Toyota has capacitances in position to make 6,000 units of the Etios and Liva on a monthly basis.

It will boost the production capacity to 6,800-7,000 units per month by October 2011, comprising the diesel versions.

Thus far, the company has sold around 30,000 units of the two models since their respective launches.

Peugeot To Set Up New Plant In Gujarat with Rs 4,000 Cr Investment

Making its re-entry in the Indian market, French automobile giant PSA Peugeot Citroen (PPC) entered into a memorandum of understanding (MoU) with the Gujarat administration with the aim to establish a unified manufacturing plant with a total investment of Rs 4,000 crore at Sanand.

Gujarat Principal Secretary Maheswar Sahu and PSA Peugeot Vice-President (Emerging Market and India) Fredic Fabre inked the MoU in the company of Chief Minister Narendra Modi.

As per an official report, “The fully integrated facility of PPC, the first one in India, will be set up on 584 acres with an investment of Rs 4,000 crore. It will have an initial capacity of 1,65,000 units annually and is expected to be commissioned by end of 2013.”

PPC Board Chairman Philippe Varin said that the state of Gujarat provides a practical biz atmosphere, admirable infrastructure and is purely well placed to fulfill the requirements of passenger car markets crosswise the country.

“We view India as one of the most important and dynamic markets in the world, with forecasts of it becoming the third largest automotive market by 2020,” Mr. Varin added.

The French car manufacturer was present in India via a JV with Premier Automobiles Ltd (PAL) nearly a decade ago.

The joint venture was later wound up and the company, PAL Peugeot Ltd (PPL), stopped operations.

With the novel contract, Peugeot will be a neighbor of Ford and Tata’s Nano facilities in Sanand, a forthcoming auto center some 40 kms from here.

The firm had been in search of land for its India foray for the last few months in the state of Tamil Nadu, Andhra Pradesh and Gujarat.

Mysore Monarch’s Car Open for Public Sale

As per reports, 100-year-old Rolls Royce owned by Krishna Raja Wodeyar IV, who was designated as the previous Mysore monarch’s precocious hammer car would shortly opened for public sale.

While the whole issue came into limelight when the Daily Mail reporters accounted that the man was supposed to be having one of the most expensive heritage car, as he was the richest person in the world.

Moreover, his planned hammer attack probably would fetch a huge amount of 400,000 pounds for the charity.

In the meantime, while sharing his views about the auction event, the event’s spokesperson, accounted that earlier the car was known as Silver Ghost and the model certainly have some improved technical machinery in it, which is supposed to be the most prized one in the market.

He added, “The Rolls-Royce Silver Ghost was the origin of the company’s claim of manufacturing the best car in the world”.

On the other hand, the reports further stated that a second Rolls-Royce Silver car’s 1908 model was also planned to be put for sale on the similar occasion.

Moreover, the other car too came under among the most valued list, as it was one of the only existing examples of that era.

Top Stories in Indian Automobile Sector this week

This week, BMW India said that the luxury car maker will be aggressive about Indian market and will bring out coupe version of 6 series. The company has also planned to launch BMW 3 series convertible by the end of this year in India.

BMW has been doing pretty well in India and owns mor than 40% market share in premium car segment. The company president Andreas Schaaf is confident that they will be able to sell over 10k cars this year. The company has already sold 5364 cars till July. With the new model launch and better marketing efforts, the company can reach around 50% market share in India.

BMW X3 launch was delayed in India due to technical reasons. The car has been recenly launched with starting range of Rs 42 lakh.

To compete with market leader BMW, Audi has reduced the price of 2.0 litre TDI engine Q5 price to 35 lakh. Audi has been trying hard to increase its market share in India. As other markets in Eurozone and US still face lower sales, the premium car segment has been growing in India.

BMW has also raised its Chennai plant capacity to meet rising demand in Indian market. The company has capacity of making 11k SUVs and cars at present.

Another car maker betting high on the Indian market is Renault Nissan. The company informed that its Chennai facility has reached 100k petrol engine milestone. The plant started petrol engine manufacturing May 2010.

The Chennai facility manufactures Renault Fluence and Micra at present and plans to shortly start Renault Koleos and Nissan Sunny. Companies are expecting mid size car markets to have better growth in coming quarters.

Volkswagen was not able to impress the Indian consumer with its Jetta. However, the company is trying hard to bring back customer interest with an updated version launch. The Jetta comes with diesel engine and offers better performance.

Jetta Trendline is priced at Rs 13.8 lakh while Jetta Highline DSG comes with a price tag of Rs 17.47 lakhs. Time will tell if Indian consumers will buy the car which offers good performance but seems expensive at current price tag. There are many other options in this price range and some cars which offer better value for money.

Hindustan Motors-Mitsubishi has launched limited edition Mitsubishi Outlander Chrome with a price tag of Rs 20.5 lakh. The car comes with side skirts, upgraded interiors, LED floor illumination lamps and many other features which add class. There are many more options for SUV lovers in India now.

BMW India to Intensify Its Luxury Car Segment

German automobile giant BMW has been aiming to expand its luxury car segment in India by 10 times over the next 10 years.

The company has recently launched its X3 vehicle priced between Rs 41.2 lakh and Rs 47.9 lakh.

BMW India President Dr. Andreas Schaaf during the launch of BMW X3 SUV in Pune stated that the luxury car sales in India have been witnessing growth and the company has been expecting a boost in the near future. He said that BMW India has been anticipating 60,000 units’ sale annually by 2021 and soon they will be investing Rs 70 crores to heighten its sales.

Dr. Schaaf announced that their annual production capacity has increased since June as BMW India’s only manufacturing and assembling unit in the country is located in Chennai where the production capacity has increased by
1,000 units.

“We have expanded our production facility by starting the second shift of production. The production has been expanded to 11,000 units annually from 10,000 units”, Dr .Schaaf said.

Also, in March, the company had increased its production capacity from 8, 000 to 10,000 units per year in single move.

Dr. Schaaf added that that if required the company will add another assembly line and will increase the output of the second shift by adding more production.

Maruti Suzuki Proposes Rs 6000 Cr Medium Term Investment

Maruti Suzuki has eyed a medium term investment of Rs 6,000 crore, portion of which will be used to fabricate vehicle stock yards in India by the next 1-2 years.
After introducing the novel edition of ‘Swift’, Maruti Suzuki Chief General Manager (Marketing) Shanshank Srivastava stated, “Maruti Suzuki has planned a medium term investment of Rs 6,000 crore for building of stock yards and manufacturing unit in the country.”
Country’s biggest car manufacturer launched its initial stock yard with a capacitance to park 2,000 units in Bangalore that recently turned functional.
The second yard would be introduced Nagpur, whilst the sites for some others are yet to be determined.
Mr. Srivastava added that one of the yards would also be set up in Madhya Pradesh.
Out of the said Rs 6,000 crore investment, about Rs 1,800 has been spent on the company’s second manufacturing facility at Manesar near the national capital, which would be ready shortly.
Around Rs 1,900 crore will be invested on the third division, which will also come up at Manesar.
Remaining finances would be used on a research and development plant at Rohtak, stock yards and brand centres.
Maruti Suzuki envisages establishing 14 brand centres in India to exhibit its products.
While talking after the introduction of the novel ‘Swift’, he said, Maruti Suzuki’s sale chart had grown sharply with around 12,000 units being sold on a monthly basis in the country.