The DriveInside Blog

Honda Siel launches new version of CR-V

The Editor — Fri, 06 Nov 2009 11:45:17 +0000

Honda Siel Cars India (HSCI) launched a new version of its SUV, the Honda CR-V, this week. The new CR-V is priced between Rs 21.9 lakh and Rs 24.12 lakh (ex-showroon, Delhi), and comes in three variants with engine capacities ranging from 2.0-2.4 litres. It is 45mm longer than its previous version, and sports a redesigned bumper, a new front grille and alloy wheels. It also features six airbags, a cruise control system and a new music system with USB connectivity. Mr Tatsuya Natsume, Director – Marketing HSCI, told media persons that the CR-V caters to the needs of those who want SUV capabilities with car-like comfort. As earlier, it will continue to be sold as a CBU on confirmed-order basis.

Honda has sold 12,500 units of the CR-V since its launch in 2003. Over the past few months, however, sales of the model have been going down. While only 1 unit was sold in September 2009, 47 were sold in October.

Tata Motors launches 2010 Range Rover in Mumbai

The Editor — Fri, 06 Nov 2009 11:39:33 +0000

Tata Motors launched the ‘Range Rover Model Year 2010’ from the Land Rover stable this week. The SUV is available at a starting price of Rs 98.5 lakh (ex-showroom, Mumbai) and comes in both diesel and petrol variants. Tata Motors said in a statement that the 2010 Range Rover has been upgraded to deliver a more power-packed performance and greater comfort to passengers. It comes with a new engine, revolutionary interior technologies and enhanced driving dynamics, and is being called ‘Land Rover’s most complete luxury 4X4’.

Land Rover’s current portfolio in India includes the Freelander, the Range Rover, the Range Rover Sport and the Discovery 4. Tata Motors’ Annual Report for 2008-09 had said that several new JLR models, including hybrids, would be introduced in India in the coming years.

January 2010 Auto Expo fully booked

The Editor — Thu, 05 Nov 2009 10:05:03 +0000

In marked contrast to last month’s Tokyo Motor Show, the Delhi Auto Expo to be held in January 2010 is attracting automakers from all over the world. Media reports say that though there are still two months left for the Expo, the venue – Pragathi Maidan – is already fully booked. The Auto Expo will begin on January 5, and will go on for a week.

International auto companies that will be present at the show include Volkswagen, Skoda, Audi, Mercedes-Benz, BMW, Porsche, Renault, Ford, General Motors, Hyundai, Toyota and Honda. Among Indian companies, Tata Motors, Mahindra & Mahindra, Ashok Leyland and Maruti Suzuki will be closely observed. The two-wheeler segment will be represented by Honda, TVS, Honda Motorcycle and Scooter India, Bajaj Auto and Yamaha among others. Component manufacturers too will be participating in the show.

Auto-industry analysts say that the rush for the Delhi Auto Expo is significant in that it shows a shift towards India and China, which are currently the fastest growing auto markets in the world.

Tata Motors will be occupying 5,500 square metres at the Expo, while Maruti Suzuki will take up 4,700 square metres.

‘Hyundai Advantage’ to have 200 used car dealers by the end of 2010

The Editor — Thu, 05 Nov 2009 05:29:05 +0000

Hyundai Motor India Limited (HMIL) is sparing no effort to expand its used-car business, Hyundai Advantage, in the country. Launched in the year 2006, Hyundai Advantage today has 69 dealers in 49 locations across India. The company plans to increase the number of dealers to 108 by the end of 2009, and 200 by the end of 2010. Under the exchange scheme, Hyundai accepts old cars of all makes and models, which are then refurbished under the supervision of trained engineers. Each car comes with a warranty of 1 year and 20,000 kilometres. The company makes sure through a system of rigorous checks that each used car which is sold is of superior quality. Mr Arvind Saxena, Senior Vice President (Marketing and Sales), HMIL, said that the used car market in India is as large as 1.3 million cars per year, and this number will grow exponentially in the coming years. ‘Hyundai Advantage’ is not only an interesting and profitable business proposition given the size of the market, but will also help the company retain its old customers through exchange and upgrade schemes.

It is also very customer friendly, with all relevant information available on the Hyundai Advantage microsite. The website allows customers to shop for used cars, and also helps used-car sellers to calculate the approximate value of their cars.

Tata Motors may allow local assemblers to set up assembly sites for Nano

The Editor — Wed, 04 Nov 2009 05:31:55 +0000

Tata Motors Vice Chairman, Mr Ravi Kant, said last week that the company may allow enterprising assemblers across the country to set up ‘micro-assembly sites’ for the Tata Nano. Speaking at The Economist Innovation Conference in London, Mr Kant said that these assemblers would be allowed to re-brand the Nano, and call it whatever they liked. He also said that they would each produce approximately 10,000 cars a year.

The idea of distributed manufacturing was first put forward by Ratan Tata, when he talked about his desire to make a one-lakh rupee car. Auto industry experts, however, do not think that India is ready for such an idea. Customers make car-buying decisions based on several factors including brand value, safety concerns etc. In an arrangement where several independent assembly units operate in addition to the manufacturer’s main plant, there may be problems of branding, maintaining safety standards and also post-sales issues related to service and spare parts.

Tata Motors’ new plant in Sanand, Gujarat, will be operational in the first quarter of 2010, and will have an initial production capacity of 250,000 units an year.

JK Tyre expands Mysore unit

The Editor — Wed, 04 Nov 2009 05:24:36 +0000

JK Tyre completed the expansion of its manufacturing facility in Mysore last week, increasing its capacity to produce radial tyres to 8 lakh units per year. The company has so far invested Rs 315 crore in the plant’s expansion, and will put in another 200 crore to further scale up its production capacity by 2 lakh units over the next eighteen months. The Mysore plant will produce both radial tyres and tubeless radials meant for trucks and buses. JK Tyre Chairman Mr H S Singhania said that the company would invest Rs 1,200 crore in the next 3-4 years to meet growing demand, which would also include the setting up of a new plant in south India. Eighty per cent of India’s bus and truck radial tyres are produced by JK Tyre, which has four plants in Rajasthan, Haryana and Karnataka and another three around Mexico City.

The company bounced back this year after an unsatisfactory performance in 2008-09. It reported a profit of Rs 59.5 crore in the second quarter of 2009-10, compared to a loss of Rs 32.3 crore in the corresponding period last year. This is largely due to the astounding resurgence of the auto sector this year, with multiple new launches in the passenger car segment. JK Tyre has also benefited greatly from the increasing radialisation in the bus/truck segment.

Shanghai Auto may buy 50 per cent stake in GM India

The Editor — Tue, 03 Nov 2009 05:55:16 +0000

General Motors India is all set to enter a joint venture with Shanghai Automotive Industry Corporation (SAIC), to assemble the Chinese automaker’s light trucks in India. According to media reports, SAIC is likely to buy a 50 per cent stake in GM India, which may go up in the future. GM already has an alliance with SAIC in China, which also includes Wuling Auto. The Indian JV, if it comes through, will produce Wuling series mini-trucks at GM’s Talegaon plant near Pune.
The JV will benefit GM India by giving it easier access to cheap auto components from China, and also by helping it expand its product portfolio and market presence. For SAIC, it will be a quick and easy way to establish its presence in India, the world’s second fastest growing auto market. The Talegaon plant already has all automotive infrastructure in place, which the Chinese auto giant can capitalize on. After introducing the Wuling series trucks, SAIC is also expected to bring passenger cars from its Roewe range to India.

Ducati opens first showroom in India

The Editor — Tue, 03 Nov 2009 05:50:13 +0000

Italian luxury-bike manufacturer, Ducati, has opened its first showroom in India in the country’s financial capital, Mumbai. The company plans to begin operations in the National Capital Region by the end of the year, and in the rest of India thereafter. It is targeting a sales figure of 100 units in its first year in the country. Mr Cristiano Silei, sales Vice President of Ducati, said he was confident that there was a market for super-bikes in India in the medium and long term. Apart from Mumbai and Delhi, the company is also planning to enter cities like Hyderabad, Bangalore, Chennai and Kolkata. Silei said that Ducati’s entry into India would help develop a culture of motor sports in the country. The company will sell a wide range of bikes in India, including Superbike, Desmosedici RR, Monster, Multistrada, Sport Classic and Hypermotard, with prices ranging from Rs 9.6 lakh to Rs 43 lakh (ex-showroom, Mumbai).

Other companies already selling luxury bikes in India are Yamaha, Honda and Suzuki. US-based bike manufacturer Harley Davidson too announced recently that it would enter India by the middle of 2010.

Fiat may enter LCV segment in India

The Editor — Mon, 02 Nov 2009 05:30:55 +0000

Italian automaker Fiat is considering the option of manufacturing Light Commercial Vehicles (LCVs) in India. The Fiat Group’s Chief Operating Officer, Mr Silvirio Bonfiglioli, told media-persons that the company had sufficient capacity in India to build light commercial vehicles, and that there was a possibility that it would enter this segment. Mr Bonfiglioli was speaking on the sidelines of the inaugural ceremony of ‘Fiat Diesel Drives India’, a drive organized by the company to promote its diesel vehicles in India. He said that if and when the company started making LCVs, it would stick to vehicles with carrying capacities ranging from 0.8 tonnes to 1.8 tonnes. Meanwhile, Fiat is also developing a small car for the Indian market, expected to be in the price range of Rs 3-4 lakh.

Premier Auto launches RiO

The Editor — Sat, 31 Oct 2009 07:34:10 +0000

Automaker Premier Limited launched a compact Sport Utility Vehicle (SUV), the RiO, this week. Placed between mid-sized passenger cars and larger utility vehicles, the RiO is priced at Rs 5.25-5.95 lakh (ex-showroom, Pune). Chairman and Managing Director of Premier Ltd, Mr Maitreya Doshi, said at the launch ceremony that the vehicle was targeted at fun-loving, small families looking for multi-utility vehicles. The RiO will be assembled at Premier’s Pune plant, and its components and kits will be supplied by the Zotye Group, a Chinese carmaker. Mr Doshi said that an investment of Rs 100 crore had been made at the Pune plant to put up the necessary infrastructure for assembling the RiO.

Premier Automobiles, established in 1944 by Walchand Hirachand, is one of the first Indian auto companies. For a long time, however, it has limited itself to making LCVs. With the RiO, it hopes to make a successful comeback into the passenger vehicle segment.