Volkswagen Vento to launch on July 6th

Volkswagen India, an Indian subsidiary of Germany based auto giant, will launch its much awaited sedan Volkswagen Vento in the country on 6th of July. The company has already revealed the sketch of this car in the Indian market. The Vento is basically an entry level sedan which will be developed on the platform of company's recently launched hatchback Volkswagen Polo in India. The car is expected to carry a price tag of Rs 9 to 10 lakh.




Vento, has been designed, keeping into consideration, the expectations and requirements of the Indian buyers. It is being manufactured at company's Chakan plant near Pune. Volkswagen Vento is all set to give a hard competition to its contemporaries in the segment such as, the best selling Maruti Swift Dzire, recently launched Hyundai Verna Transform, Honda City and Fiat Linea.

In a recent statement Mr. Neeraj Garg, Volkswagen's Director, passenger cars said that the launch of Vento would be a milestone for the brand in India. He also added that the car has been designed keeping the Indian customers and their preferences in mind.

The company will launch this model in both diesel and petrol versions, which gives it an extra edge over cars like Honda City which are available only in petrol version in India. Keeping in line with other available cars of this segment, the company is expected to roll-out this car in both automatic and manual transmissions.

The company hasn't disclosed the exact price and specification details of this car in India till now. Currently, Volkswagen enjoys a decent portfolio in India that comprises of Passat, Jetta, Touareg, New Beetle, Phaeton and the latest Polo hatchback.

Source:- Volkswagen Vento to launch on July 6th - New Cars

Tata Motors ties-up with IndusInd Bank for dealer financing

IndusInd Bank Ltd. and Tata Motors have entered into an agreement, where IndusInd Bank will provide channel finance facilities to Tata Motors ’ dealers.

The dealers of Tata Motors will now have access to ready upstream finance from IndusInd Bank to meet their working capital requirements in addition to the existing retail finance arrangements. IndusInd ranks in the top retail financiers for Tata motors commercial vehicle segment today. This tie up is a part of the strategic focus of IndusInd Bank in developing the supply chain business.




Mr. R. Ramakrishnan Vice President (Sales & Marketing, Commercial Vehicle Business Unit, Tata Motors Limited) said, “Tata Motors Commercial vehicle has a good share of business in the retail asset funding through IndusInd Bank and going forward, we want to leverage this tie up to garner even more business in the retail loan segment. We would also like to provide our Channel partners with the inventory funding from IndusInd Bank at reasonable and competitive rates. We are sure that our growing network will drive the tie up to achieve the aspirational growth targets.”

Mr Suhail Chander, Head Corporate & Commercial Bank, IndusInd Bank said, “We, at IndusInd, are already amongst the largest Retail Financier of Commercial vehicles in the country. A Channel Finance facility to the dealers is a natural corollary to this business. By introducing technology, we aim to create value in this partnership between the Dealer, Tata Motors & IndusInd Bank.”

Mr. Ramesh Ganesan, Head Transaction Banking, IndusInd Bank said, “IndusInd Bank’s focus is to expand the scope of client relationships by adding value to partners of our clients. There is an increased need for financing in this fast growing sector. We propose to deliver this product through a technological platform enabling integration with the manufacturer and the dealers, thus speeding up credit delivery at a reduced cost supported by widespread branch network.”

Source:- Tata Motors ties-up with IndusInd Bank for dealer financing - New Cars

Sales of diesel-run cars to slowdown in coming months

The sales figures of diesel variants of popular cars in India, which have been showing an upward trend until recently, is expected to witness a decrease in coming month as the govt has decided to hike the price of fuel in the country. The major contributor to this expected decrease in the demand for diesel run cars is the narrowing down gap between petrol and diesel prices, due to which many prospective buyers of diesel variants are now moving towards petrol versions. While exactly four years back in June 2006, the gap between petrol and diesel price was around Rs 15 in national capital, the current difference between both of these fuels is only Rs 11.56.

According to Mr Ankush Arora, vice-president (sales & marketing), General Motors India, if the price of diesel moves up again and comes further closer to petrol, there would certainly be a shift in buying behavior as people would prefer to opt more for petrol vehicles. He was speaking to a leading business news daily in India, Mr Arora added that the shift could be immediate in small cars where monthly fuel bills is an important factor in purchasing decisions.




In the last few years, the demand for diesel run cars has been increased by a considerably good margin. At present, the diesel run cars accounts for the 30-35% of the total sales of the country, as against an estimated figure of 20-25% in the year 2007.

However, the diesel variants of popular cars in India like Maruti Swift, Skoda Fabia, Ford Fiesta and Maruti Swift Dzire are still attracting a higher number of buyers as compare to their petrol counterparts. While on the contrary, the petrol versions of recently rolled-out new cars in the Indian market like Ford Figo, Volkswagen Polo, Hyundai i20 and Maruti Ritz are giving a neck to neck fight to their diesel counterparts.

Source:- Sales of diesel-run cars to slowdown in coming months - New Cars

Maruti, GM, Bajaj gear-up for another car price hike in India

The auto biggies in India are gearing-up for another round of price hike in the country in a bid to level the mounting pressure from rising cost of input materials such as steel and tyres. The auto makers like General Motors, Maruti Suzuki, Tata Motors, Toyota Kirloskar, Ashok Leyland and Bajaj Auto are mulling over to increase the price of their respective vehicles in India.

We should mention here that this is the fourth time in the year 2010 when car prices are going to be increased in the Indian market. The industry, first witnessed the price hike in January due to the increasing raw material cost, following another increase in price in March and April due to an increase of 2% in the excise duty and implementation of new BS-IV emission norms, respectively.




The price of raw materials like steel and rubber has increased sharply in India in the last few months. As most of the car makers source steel from foreign markets, its price surges with the weakening currency. During the period of April-May 2010, the price of steel and rubber has increased by more than 20 to 25% due to whooping demand and increase in the rate of coking coal.

According to Mr Mayank Pareek, Maruti Suzuki India's Managing Executive Officer (Marketing and Sales), the raw material prices are increasing day-by-day and which is pressurizing the margins of the company, He added that the company is in the process of finalizing its contracts with its suppliers and any decision on the price increase will be taken after that.

General Motors India has already indicated that it is planning to increase the price of its cars in India by 2 to 3 percent from the 1st of July. The company will be increasing prices across all eight models, by 2-3 per cent to offset rising input costs, said company's vice-president Balendran.

Source:- Maruti, GM, Bajaj gear-up for another car price hike in India - New Cars

Fiat to launch a new small car in India by 2012

Italy based leading car-maker Fiat Motors is planning to launch a small car in India by the end of year 2012. The new small car has specially been developed for the emerging markets like India that is home to a large number of middle class buyers. The new India bound car will be placed in the small hatchback segment where it will compete with popular small cars in the country like Maruti Alto and Hyundai Santro Xing.




Mr Rajeev Kapor, MD, Fiat India, said in a interview, given to a leading news daily, that it will be an all-new car, nothing to do with any of company's other models and will be priced aggressively. The new car will compete with the Alto and will have a one-litre engine. He added that the Uno brand has become rather generic in nature and the company is still figuring out a new brand name for the car.

The new car will be manufactured in India, taking into consideration, the terrain and temperatures of the country. The company's R&D department is working hard to develop a small car that fulfills the requirements of the Indian buyers. The launch of this prospective small car can be seen as a part of company's plans to increase its customers base in India in the long run. With the launch of this car, the Italian auto giant looks to grab a significant market share in the small car segment which is currently dominated by country's top two car makers Maruti and Hyundai. Fiat India currently has a market share of 1.5 percent in the Indian market. The company aims to sell 40,000 units of its cars in year 2010.

In last few months, many major auto makers have launched their compact cars in India, that include Chevrolet Beat, Ford Figo and Volkswagen Polo.

Source:- Fiat to launch a new small car in India by 2012 - New Cars

Yamaha plans to make India premium motorcycles hub

India Yamaha Motors, the country's leading premium motorcycles manufacturer, is planning to make India as a global hub for the premium motorcycles. The Indian arm of Yamaha Motors has already two manufacturing plants in the country, which are in Noida and Surajpur. The company wants to utilize the facilities to the maximum output to get a level in order to manufacture bikes for the export markets.yamaha bikes launches new bikes in india recently.

Yamaha Motor is currently exporting their product line-up that includes Crux, G5, Alba, Enticer, Gladiator Type SS, FZ-16 and the YZF-R15. The all new India made motorcycles are exported to countries like Bangladesh, Indonesia, Colombia, Sri Lanka, Philippines and Kenya. India Yamaha Motor has supplied 66,904 bikes to Yamaha's global operation in the previous year (2009/10). In India, it has contributed of 38,639 units of motorcycles in the same year. The company had posted a 73 percent growth in exports market in the last fiscal year and can expect that the demand of bikes will increase in this current financial year. After the launching of its flagship YZF-R15 and FZ-16 motorcycles in the Indian auto market since 2008, the company's sales ratio have been continuously on the rise and is also getting an excellent response from the exports market. On the other hand, Yamaha Motor is also planning to increase the range of their productivity by the new launches in India that includes Yamaha SZ, Yamaha YZF R125 and Yamaha BWs (premium scooter).

Source:- Yamaha plans to make India premium motorcycles hub - Bikes in India

Bajaj-KTM 125cc bike may hit Indian roads by 2011

Bajaj Auto India Limited, India's second largest two-wheeler maker, may introduce the new world-class premium bike jointly with KTM Power Sports AG in India in the next financial year (2011-12). Besides, Bajaj-KTM has been jointly developing the new 125cc machines for India. According to some news sources, the new Bajaj-KTM 125cc motorcycle will first be launched in Europe and then available in the Indian auto market. It will be developed at the Bajaj's Chakan plant in Pune. S. Sridhar, CEO of Bajaj Auto said, "The new premium bike will be available in the market under the KTM brand and would be priced at more than 100,000 rupees.




The all new Bajaj-KTM 125cc will be represented as India's first premium motorcycle which comes loaded with impressive power and advanced technology like liquid cooling, dual discs, a monoshock suspension and power output of 15 bhp from its 125cc engine. The company is reported to develop a range of motorcycles displacing 125cc to 350cc engine capacity bikes in India. The bike will be introduced as CKD units for lowering the tax issues. Meanwhile, Suzuki Motorcycles has expanded its superbikes range by launching two new massive superbikes in India including Suzuk Gsx-R1000 and Suzuki Bandit 1250S. Apart from that launch, Indian scooters and bikes lovers will see more launches in India that includes Yamaha Sz, TVS Neo, TVS MAX , TVS Apache 220 and TVS Streak Hybrid.

Source:- Bajaj-KTM 125cc bike may hit Indian roads by 2011 - Bikes in India

Tata Motors to cut debt by raising Rs 4,700 crore

Tata Motors, one of the largest car maker in the Indian market, has decided to raise Rs 4,700 crore through the medium of equity, convertible bonds, debentures and warrants to reduce debt and fund expansion. For the process of fund raising the company will seek the approval from its shareholders.

At the Board Meeting of the Company held on Monday, the Board, inter alia, decided to seek Shareholders’ approval through a Postal Ballot for raising funds equivalent to about Rs.4,700 crores through a combination of issue of Ordinary Shares, ‘A’ Ordinary Shares, Convertible Bonds, Debentures, Warrants or other equity linked instruments in the domestic and/or international markets in one or more tranches.




The major chunk of this debt was utilized in financing the acquisition of brands Jaguar and Land Rover (JLR) in year 2008. At that time the company had taken a short term loan of $3-billion, which was used in financing the acquisition as well as in meeting the requirement of its working capital. The company had sold some of its GDRs and convertible notes to repay the debt taken at the time of purchase of JLR.

The company has reduced its debt to equity ration to 2.05 as against the ratio of 4 in March 2009, and it aims to further decrease this debt-equity ratio to 1 by year 2012. Tata Motors had a net debt of about Rs 18,800 crore by the end of the last fiscal. The company plans to meet its capital expenditure need of around 2,500 crore by cash flows.

Source:- Tata Motors to cut debt by raising Rs 4,700 crore - New Cars

Demand for petrol run cars surges-up

The Indian automobile industry, which has been going through a robust growth phase since the starting of year 2010, is struggling to meet-up with the sudden increase in the demand for petrol run cars. Interestingly, the news came at a time when auto-biggies in the country are mulling the option of launching the diesel versions of their popular cars so that they can pace-up with mounting demand backlog.

The sale of petrol variant is surging though the diesel run cars still sell more in sheer numbers, as per a statement given by Mr Shashank Srivastava, Maruti’s chief general manager (marketing), to a leading business news daily. Mr Srivastava added that petrol run variants forms around 37% percent of the total sales of the Maruti Swift models in the Indian market which has increase by 5% percent as compare to the last years sales.




However, the diesel variants of popular cars in India like Maruti Swift, Skoda Fabia, Ford Fiesta and Maruti Swift Dzire are still attracting a higher number of buyers as compare to their petrol counterparts. While conversely, the petrol versions of comparatively new cars in the Indian market like Ford Figo, Volkswagen Polo, Hyundai i20 and Maruti Ritz are providing a neck to neck fight to their diesel counterparts.

According to market analysts, as the gap between petrol and diesel prices has been narrowed-down in last few months, many prospective buyers of diesel variants are now moving towards petrol versions. While exactly four years back in June 2006, the gap between petrol and diesel price was around Rs 15 in national capital, the current difference between both of these fuels is only Rs 11.56. difference.

Source:- Demand for petrol run cars surges-up - New Cars

Car exports to jump by over 15% in FY10-11

The total vehicle exports from India is expected to jump by up to 15 percent in the fiscal year 2010-11, as announced by the government on Monday. Mr Ambuj Sharma, the Joint Secretary in the Department of Heavy Industry, told to a leading media agency that country may see a 10-15 per cent increase in auto exports over and above the last fiscal year's export.

The Society of Indian automobile manufacturers (SIAM) stated that total export form the country was 18,04,619 units in the FY 09-10 as against the 15,30,594 units sold the fiscal year 2008-09, accounted for a sales increase of 17.90 percent.




Mr Sharma added that as the most of the European nations are growing, and this will certainly increase the level of consumer spending which in turn will boost the demand for cars in the region.

In last financial year, while auto-biggies around the world struggling to register a single digit growth, the Indian automobile industry reported a sales growth of whooping 33.23 per cent over the same period of preceding year. The major contributor to this growth was the scrappage scheme launched in many of the European countries in which govt.'s offered an exciting incentive scheme to buyers who were planning to purchase new vehicles in exchange of their old car.

Source:- Car exports to jump by over 15% in FY10-11 - New Cars

Mercedes India forays into used car business

Mercedes Benz India, the largest car luxury car maker in the Indian market, has entered the used car business with the launch of its new company certified pre-owned car outlet in the country. The move of starting a used car business here can be seen as a part of company's long term expansion plans.

The company would sold these used-cars through its authorized dealerships in India. Comprehensive evaluation and refurbishment criteria, scientific tools for audit and inspection as well as manufacturer-backed warranty go into the making of a certified proven exclusivity vehicle. The dream of owning a Mercedes-Benz thus becomes even more achievable, said Mr Wilfried Aulbur, MD and CEO of Mercedes-Benz India. He added that Now the company is bringing this to India to make the dream of many customers to own a Mercedes Benz even more achievable.




Mr Aulbur further elaborated that through the launch of new pre-owned car outlet customers can now own a Mercedes Benz for as low as Rs 15-18 lakh as against Rs 26-28 lakh for a brand new, entry-level C Class model.

There is a significant potential for the Mercedes Used cars in the Indian market as the company has now been operating in the country for more then 15 years. Mercedes Benz India has sold more than 30,000 cars in the country's auto-market till now. With this, the company is also planning to foray in to the business of car finance, in a bid to boost-up its sales asit is looks to compete aggressively against is rivals in the Indian market including BMW and Audi.

Source:- Mercedes India forays into used car business - New Cars

Tata Nano Superdrive concludes its journey

The Tata Nano Superdrive caravan, which travelled a distance of 15,000 km, touching 36 cities across India, today concluded its 26-day voyage in Mumbai. The cars were flagged in by Mr. Ratan N. Tata, Chairman, Tata Sons & Tata Motors, in the presence of Tata Motors’ senior management.

The Tata Nano Superdrive, comprising 9 Tata Nanos, each festooned with a theme, had started from Sanand on June 2 to celebrate the inauguration of the plant. The cars travelled across India on three different routes. Each route was christened after our tri-coloured national flag namely ‘Saffron Route’, ‘White Route’ and ‘Green Route’, keeping with the theme of the country-wide drive.




Driving across the Saffron route, covering north India, the cars visited Udaipur, Jaipur, Hisar, Amritsar, Chandigarh, Delhi, Meerut, Agra, Lucknow, Kanpur, Gwalior, Kota. On the White route, the cars traveled from central to east India, visiting Indore, Bhopal, Nagpur, Raipur, Ranchi, Patna, Kolkata, Bhubneshwar, Vishakhapatnam,
Hyderabad, Aurangabad. The Green route saw cars cover west and south India, visiting cities like Surat, Mumbai, Pune, Goa, Mangalore, Kochi, Coimbatore, Chennai, Bangalore, Kolhapur, Solapur, Nashik and Ahmedabad.

The Superdrive branded Nanos were absolute traffic-stoppers as they visited prominent landmarks in every city. Citizens at these landmarks greeted the people’s car with immense excitement. Prospective customers were given an opportunity to drive them and enjoy the cars in the real world. At malls, shoppers were given an up-close
experience with the car and its unique features. To celebrate the car’s first year, Tata Motors also organised a celebration ceremony for Nano owners in every city.

Source:- Tata Nano Superdrive concludes its journey - New Cars

Mercedes-Benz launches Proven Exclusivity

Mercedes-Benz today launched its global pre-owned car business for India: “Proven Exclusivity”. This program utilizes specific global benchmarks for vehicle evaluation, quality and warranty to offer Mercedes-Benz certified pre-owned cars to Aulbur, Managing Director, and CEO of Mercedes-Benz India elaborated: “Comprehensive evaluation and refurbishment criteria, scientific tools for audit and inspection as well as manufacturer backed warranty go into the making of a certified ‘Proven Exclusivity’ vehicle. The dream of owning a Mercedes-Benz thus becomes even more achievable.




At the same time customers can also drive in their existing vehicles and drive out with their new Mercedes-Benz cars by utilizing the trade-in route under ‘Proven Exclusivity’”. The pre-owned cars will be offered for sale through the authorized Mercedes-Benz dealerships where the customer will receive additional support in areas such as financing, documentation and delivery. Mercedes-Benz Pre-owned cars program has been in existence since 2009 and operates across 35 countries presently. Mercedes-Benz as a brand and a company has enjoyed a very strong equity in the market.

Its legendary build, quality and reliability as well as engineering and craftsmanship guarantees a favourable residual value and strong demand in the pre-owned car market. At the same time, for over 15 years with its presence in India, the company sold approx 30,000 vehicles thereby creating a significant potential for the Mercedes-Benz pre-owned car market in India. The pre-owned car market in India is estimated at approx 10-15% of current new car sales in 2010 and estimated to substantially grow for the next couple of years.

Source:- Mercedes-Benz launches Proven Exclusivity - New Cars

Tata Motors to raise long term capital funds

The Board Meeting of the Company held today, the Board, inter alia, decided to seek Shareholders’ approval through a Postal Ballot for raising funds equivalent to about Rs.4,700 crores through a combination of issue of Ordinary Shares, ‘A’ Ordinary Shares, Convertible Bonds, Debentures, Warrants or other equity linked instruments in the domestic and/or international markets in one or more tranches.


The above fund raising proposals will be for meeting the Company’s growth plans as well as for reducing the debt on its balance sheet.




The timing and structure of the issues will be decided depending upon market conditions post Shareholders’ and other approvals.

The Board also considered appropriate to seek Shareholders’ approval for raising the limits for borrowings and for creation of security on the Company’s properties from Rs.20,000 crores to Rs.30,000 crores.

Source:- Tata Motors to raise long term capital funds - New Cars

Magneti Marelli aims high for Indian market

Magneti Marelli, a Fiat group owned auto-component maker is aiming to enhance its revenue to Rs 2,000 crore by year 2015, through its Indian operations. The company is expecting that the Indian auto market will grow faster as compared to its counterparts around the world.

India will continue to grow higher than the global markets. Company's target is to increase Indian sales to 5 per cent of the total expected global sales of 7 billion euro (about Rs 40,000 crore) by 2015, as per a statement given by company's Chief Executive Officer (After-market Parts & Services) Dino Maggioni to a leading news agency. He added that, by that time, India will be just behind the company's Chinese operations, which is expected to contribute 6-7 per cent of its total sales.




Mr Maggioni added that the Indian operations contributed about Rs 230 crore to the company's total revenue from the global market which stood at Rs 25,600 crore, last year. According to him, India is a very strategic market for the Italian firm and it expects to double its sales in the country by year 2010. He further elaborated that the company is very strong in Europe and Latin America, which is the reason why it has plants there. In India the company works in a joint venture model with other partners and it is good for the country. He added that the firm doesn't have any plan to set up its own unit here.

The Italian auto-component giant currently has seven production facilities in India which includes its joint venture facilities with major Indian auto makers like Maruti Suzuki, Tata Motors and Sumi Motherson Group. The company deals in both manufacturing specific and after-market auto components .

Source:- Magneti Marelli aims high for Indian market - New Cars

Hyundai likely to price its 800cc small car @ Rs 1.6 lakh

Hyundai Motors India Ltd., (HMIL), one of the largest car makers in the country which is developing a compact-car for the Indian market, is speculated to be priced at Rs 1.6 lakh, as revealed by some media reports on Friday. The new small car is currently under development at the company's R&D center at Hyderabad where it's engineers are working in tandem with their South Korean counterparts.

The new Hyundai baby is expected to come, powered with a 800 CC engine and will compete against India's best-selling car Maruti Alto after it is launched in the country. The company will showcase this car at the upcoming International Auto Expo in India in the year 2012 , where it is expected to attract a large number of car enthusiasts and visitors.




The car will be developed on a completely new platform though some designing cues could be borrowed from Hyundai's popular small hatchback Santro Xing. Besides this, the company is also reviewing the relaunch of the Elantra in the country which will be subject to the growth in the market size of the premium segment, as per a statement given by Mr Y K Koo, Senior Director of the company. However, the timeline of the launch of this vehicle in the Indian market is yet to be revealed by the the South Korean auto giant.

Hyundai India is aiming to achieve the sales mark of 600,000 units in the calender year 2010 as against the 5.6 lakh units sold in the same period, last year. HMIL's market share was 20.6 percent in the year 2009 and it will go up by 0.1 percent this year, said Mr Hyundai Motors India Limited managing director and chief executive H.W. Park. He said so at the launching ceremony of the new Hyundai Verna Transform in India.

Source:- Hyundai likely to price its 800cc small car @ Rs 1.6 lakh - New Cars

Fuel efficiency to play a major role in car sales in India

The Indian auto market, which is home to a large number of middle class buyers is also one of the most cost and mileage sensitive auto-markets in the world. The major auto makers around the world have been mulling over launching their low cost fuel efficient cars in the Indian market, so that they can capitalize on this high growth potential that exists here. Now, as the price of petrol has increased to a considerably high level in the last few years, the high mileage cars are definitely going to be among the first choices of the buyers.




The Tata Nano, which was launched in the Indian market in March 2009, has set a benchmark for major auto makers around the world to develop low-cost compact cars for the emerging markets like India and China with incredibly high fuel efficiency. The upcoming ultra low cost car in the country from the Nissan-Renault-BajaJ Joint Venture, which claims to offer a mileage of 30 km/l, can be seen as another trend setter in this direction.

Besides this, the diesel run cars, which are way more fuel efficient than their petrol counterparts, have been emerging as another preferred option for the buyers. Cars like Ford Figo and Volkswagen Polo, the new entrants in the compact car segment, have been launched in both diesel and petrol versions in the country so that no stone is left unturned in attracting the maximum possible buyers.

Source:- Fuel efficiency to play a major role in car sales in India - New Cars

Mahindra Logan to be launched in a new avatar by 2012

India's largest utility vehicle (UV) maker Mahindra & Mahindra is planning to launch its Logan sedan in a completely new avatar by the end of the year 2012. The new variant will have a length of less than four meters which will enable it to qualify for a lesser excise duty segment. Mr Rajesh Jejurikar, chief executive (automotive division) of the company said in a statement given to a leading news daily that company is planning to launch a restyled Logan within the next 18 months.




Mahindra Logan was launched in India in the year 2007 as a Joint Venture between Mahindra and Renault. But due to some differences related to the pricing and designing of this car, both the companies parted ways in April this year. Since its launch in 2007, the Logan Sedan has been struggling to make its mark in the segment following the drooping sales figures over the years.

With the sales dipping to mere 5332 units in the last fiscal, Mahindra has been planning to reduce the size of the car so that it could qualify in the small car segment and the company would be able to tape down on excise duties. The company has recently announced a discount of Rs 80,000 on the Mahindra Logan, in a bid to boost its continuously decreasing sales figures in India.

Source:- Mahindra Logan to be launched in a new avatar by 2012 - New Cars

Auto Industry hails the govt's move to decontrol petrol prices

The automobile industry of India, which has been witnessing the best ever growth momentum since the starting of this year, has welcomed the government's move of decontrolling petrol prices. The industry has termed it as a prudent way to strengthen the continuously growing economy and also stated that the ongoing high growth momentum will continue to boost the sector despite the recent hike in fuel prices.

Mr Pawan Goenka, the President of the Society of Indian Automobile Manufacturers (SIAM) told to reporters in a statement that the decision to link fuel prices to market prices is the only prudent approach for a rapidly growing economy like India. The SIAM also stated that it hopes that diesel pricing will also be made
market-driven in the coming months and the increase in the price of fuel will not harm the car sales in India.




The industry body further stated that the auto sector anticipates that this increase in fuel prices may not have any adverse impact on sale of vehicles due to the buoyant market demand for vehicles in the country.

The largest car maker Maruti Suzuki has hailed the government's move and stated that decontrolling petrol prices is a good and sound step taken by the government. Mr R C Bhargava who is the Chairman of the company said that in the short-term, sales of small cars may jump more, while big cars may witness a slowdown in sales. While at the same time, General Motors India's Vice-President P Balendran has stated that the industry will be affected in the short-term, but in the long run, it will be able to absorb.

Source:- Auto Industry hails the govt's move to decontrol petrol prices - New Cars

Hyundai reports a decrease in exports to Europe

Hyundai Motors has witnessed a decrease in its exports to the European market, mostly due to the economic downturn in the region, as per a statement given by Mr Arvind Saxena, Hyundai Motors India Limited Senior vice-president Marketing & Sales.

The decline in exports is primarily due to the economic turmoil in Europe. The company is trying to cover up its losses from Europe by exporting products to other geographies such as South America and South Africa, said Mr Saxena. The statement was given by him at the launching ceremony of the Hyundai Verna Transform in Andhra Pradesh.




At present, the manufacturing facilities of the company in Chennai manufacture more than 6,50,000 units in the country. While further elaborating the company's total sales in the country,Mr Saxena added that around 52 percent of the company's sales was in the domestic market and the remaining 48 percent was from exports made to the foreign markets. He further said that company's domestic sales will be increased to 57 percent this year.

Hyundai India, which is the second largest car maker in the Indian market following Maruti Suzuki, is aiming to sell 600,000 units of its cars in the calender year 2010 as against 5.6 lakh units sold in same period last year. According to Hyundai Motors India Limited managing director and chief executive H.W. Park, company's market share was 20.6 percent in the year 2009 and it will go up by 0.1 percent this year.

The company will enhance its dealership network to 320 from the existing 290 centers, by the end of the year 2010.

Source:- Hyundai reports a decrease in exports to Europe - New Cars

Volkswagen Vento ready to zoom on 6th July

Volkswagen India is all set to launch its much awaited entry level sedan Volkswagen Vento, on 6th of July 2010. Vento has been designed on the same platform used in Polo, the company's latest hatchback. Volkswagen had announced early this year, at the Delhi Auto Expo, that it would launch the sedan version of Polo in India, after it launches the hatchback. Polo, the hatchback from Volkwagen's stable, was recently launchd in March, and soon after, we hear the announcement of Volkswagen Vento being launched.




Vento, has been designed, keeping into consideration, the expectations and requirements of the Indian buyers. It is being manufactured at company's Chakan plant near Pune. Volkwagen Vento is all set to give a hard competition to its contemporaries in the segment like Maruti Swift Dzire, Hyundai Verna Transform, Honda City and Fiat Linea.

As of now, there is no offcial declarations being made, on the price and specifications of this new car. It is expected that the Vento will be available in both diesel and petrol versions in the Indian market and would be shelved in the price segment of Rs 9 to 10 lakh. Both the petrol and diesel would be powered by 1.6 L engines along with both automatic and manual transmission capabilities. Currently, Volkswagen enjoys a descent portfolio in India that comprises of Passat, Jetta, Touareg, New Beetle, Phaeton and the latest Polo hatchback.

Source:- Volkswagen Vento ready to zoom on 6th July - New Cars

Hyundai hopes to achieve 6 lakh unit mark in India

Hyundai Motor India Ltd. (HMIL), which is the second largest car maker in the Indian market following Maruti Suzuki, is targeting to achieve the sales mark of 600,000 units in the calender year 2010. The company sold 5.6 lakh units in same period, last year. HMIL's market share was 20.6 percent in the year 2009 and it will go up by 0.1 percent this year, said Mr Hyundai Motors India Limited managing director and chief executive H.W. Park. He was speaking at the launching ceremony of the new Hyundai Verna Transform in India.




Mr Hawk added that around 52 percent of the company's sales was in the domestic market and the remaining 48 percent was from exports made to the foreign markets. He further said that company's domestic sales will be increased to 57 percent this year.

The company is also planning to launch a 800cc compact-car in India at the Indian auto expo 2012. The car has been designed and developed keeping in mind the requirement of the Indian buyers. The next Auto Expo in 2012 will be the ideal platform to unveil the car, as per a statement given by a Hyundai official to a leading news daily in India. After its launch, the car will compete with India's best selling car Maruti Alto in the Indian market.

Source:- Hyundai hopes to achieve 6 lakh unit mark in India - New Cars

Govt. of India hikes fuel prices in India

Government of India has hiked fuel prices in India on Friday, now the middle class people will have to spend more unhappily on this necessity. The fuel prices have been increased by 3.73 per litre on Petrol and up to Rs. 3 per litre on diesel and all the increased prices have been applied from the last night. At this time, is not easy to thought about purchase a new bike in India. India's two-wheeler manufacturers have launched many two-wheelers in India and they are also worried about their performance in the auto market. Because the fuel price hike is really a big issue for the two-wheeler players in India.



On the other hand, Major two-wheeler players are planning to introduce their new hybrid vehicles like TVS Streak hybrid which is coming soon in the Indian auto market. Besides, the households will have to spend an advanced Rs. 35 per gas cylinder and kerosene will also be rose by Rs 3 a litre. The decision was taken by the EGoM oriented by Finance Minister Pranab Mukherejee. In a major decision to bring petroleum products in line with market rates, the government on Friday freed petrol from all pricing controls and hiked diesel prices by Rs two a litre, Oil Secretary S Sundareshan announced after the meeting of the Empowered Group of Ministers.


Source:- Govt. of India hikes fuel prices in India - Bikes in India

Nissan Micra to be priced below 4 lakh

Nissan Micra price has not been declared yet but speculations suggest that it's base variant is to be priced below Rs 4 lakh as it is loaded with a 1.2 litre petrol powertrain. However the exact information about Nissan Mircra price will be available on July 14, 2010-the launch date of the much-awaited compact car.

The Nissan Micra is to be positioned against Hyundai i10, Hyundai i20 and Maruti Swift. These competitors are already doing great for their respective manufacturers; however Nissan Micra comes with a lot of new and appealing features that might woo the car lovers in India. The initial bookings of the car have crossed the one thousand mark that shows how car lovers are passionate about this small wonder from Nissan.




Nissan Motor India Managing Director and CEO Kiminobu Tokuyama said in a event held a few days back, "We are delighted with this encouraging initial response. With the launch of the new Nissan Micra next month, Nissan will begin an exciting journey in India aiming to provide Indian customers with a full range of products and services." The new small car from Nissan-Nissan Micra-will be rolled out from Nissan's new plant at Oragadam near Chennai. 80,000 units of the Nissan Micra will be produced in its first year that will be used for both export and domestic market. The company has planned to export it over 100 countries which include the Middle-East, Africa and Europe.

Source:- Nissan Micra to be priced below 4 lakh - New Cars

Toyota Corolla Altis diesel to hit Indian roads in July 2010

Toyota Corolla Altis, the only premium sedan from the Toyota Kirloskar Motors, in the Indian market, is all set to be launched in a diesel version in the country in July 2010. It's been a year since the speculations and rumors of the prospective launch of Toyota Corolla Altis diesel are doing rounds in the Indian market.

Mr Sandeep Singh, who is the Deputy Managing Director of TKM, has said in a official statement that the company will launch the Corolla Altis diesel anytime between 20th and 23rd of July. He added that the company hasn't finalized the date, but it will be on one of these three days.




The Toyota Corolla Altis diesel will be equipped with company's 1.4L 90hp CRDi engine along with a 6-speed manual transmission. It is expected that the car will be around Rs 1 lakh costlier than the petrol version of the same model. To keep its price as low as possible, the company will import it as completely knocked-down (CKD)
unit, and will assemble it at TKM's plants in India. At present, the Corolla Altis model is competing against some of the most popular cars of this segment including Honda Civic and Skoda Laura.

The new Corolla Altis will offer a class leading fuel economy of more than 21 kmpl (as tested by ARAI). However, there is no change expected in the interiors or exterior of the car.


Source:- Toyota Corolla Altis diesel to hit Indian roads in July 2010 - New Cars

Maruti attempts to save its dwindling market share

Maruti Suzuki India Ltd. (MSIL), the country's largest car maker which accounts for the sales of every second car in the country, will be facing a tough year ahead as an array of new entrants have endangered its long standing dominance in the compact-car segment. Mr Osama Suzuki, the head of the Japan based leading car maker Suzuki Motors, had told the media at the Delhi auto Expo in January that, 2010 will be a tough year for the company in India owing to the slew of new car launches.

However, the company is working aggressively on its plans to defend its market share of more than 50%, in India. MSIL has recently launched new Maruti wagon R in the Indian market with its latest K-Series engine, to maintain its competitiveness against a number of new entrants like Chevrolet Beat, Ford Figo and Volkswagen polo.




Moreover, the company is planning to roll-out a new and upgraded Maruti Swift in the Indian market by the first quarter of 2011. The new Swift will be equipped with a basket full of additional features along with a fully-revamped interior. With this, the new Swift will be manufactured with high quality steel which will ensure the maximum safety of the passengers.

The company has also decided to set-up stock-yards for its cars in different parts of the country so that the waiting period for these cars can be brought down. Maruti's popular cars in India including premium hatchback Swift, entry level sedan Swift Dzire and recently rolled out MPV Eeco have a waiting period of as much as 4 months. The company has already started the land acquisition process and first such kind of stockyard will be established in Bangalore by the end of this year. The company has planned a heavy investment of Rs 200 crore for the establishment of these stockyards (model showrooms) in the Indian market.

Source:- Maruti attempts to save its dwindling market share - New Cars

Hyundai India eyes 16% growth in 2010

Hyundai Motor India Ltd (HMIL), one of the largest car makers in the Indian market, today indicated that it is aiming to achieve the volume growth of around 16 percent in the year 2010. The company will match the industry's growth rate of 15-16 percent. Last year its growth rate was 20.8 percent which was due to the lower comparable base of 2008, said Mr Arvind Saxena, HMIL Director of sales and marketing. The company sold around 600,000 units last year.

HMIL has recently launched the new Hyundai Verna Transform in India which was in line with its strategy of rolling-out a new and an upgraded model yearly. The new sedan is available with two engine variants including 1.6 litre petrol and 1.5 litre diesel. The Hyundai Verna Transform is priced between Rs 6.56 lakh and Rs 9.22 lakh (ex-showroom).




According to company's Managing Director H.W. Park, the company has sold about 82,000 Verna's since its launch in 2008. He added that the car's engine has been retained butthe exterior and interiors have been changed to give it a sporty as well as a luxurious look. At present, the company manages to sell about 2,000 units of Verna, monthly.

On the question related to the foray of Kia Motors in India Mr park said that it is a sister company run by independent management and he cannot comment on their plans.

Moreover, HMIL plans to launch a 800cc compact-car in India at the upcoming Indian auto expo 2012. The car has been designed and developed after taking into consideration the requirement of the Indian buyers. After its launch, the model will lock horns with Maruti Suzuki's best-selling small car Alto, in India.

Source:- Hyundai India eyes 16% growth in 2010 - New Cars

Carnation Auto forays into premium car servicing business

Carnation Auto, a brain child of ex-Maruti Suzuki chief Jagdish Khattar and a leading multi-brand car service provider, announced on Friday that it is starting a premium car servicing facility in Gurgaon in partnership with Magneti Marelli (a Fiat Group firm).

When the company started its operations in the field of multi-brand servicing in 2008 for entry-level cars, people with luxury cars kept telling him to start it for their products also, Mr Khattar told reporters on the occasion. The company didn't have the competence, so it tied up with Magneti Marelli last year and it is starting it today, he added.




Carnation Auto has a vast business network in the Indian market that comprises of 20 servicing workshops in 13 cities across India. Besides this, the company has initiated the premium car servicing facility named as 'Auto Premio Solutions' at its Gurgaon facility.

Moreover, the Italian firm Magneti Marelli announced its entry into the business of after-market spare parts, in which it will supply the co-branded auto components. The after market division of the company possesses more than 30,000 spare parts across 30 different products.

According to Mr Magneti Marelli chief executive officer of After Market Parts and Services, Dino Maggioni, the company will sell products that are imported from its own facilities as well as sourced from local manufacturers. He added that the company is planning to upgrade them, mainly to stop usage of spurious parts. For that, it will have to train the local people.

Source:- Carnation Auto forays into premium car servicing business - New Cars

Tata Nano Superdrive reaches Hyderabad

Tata Nano superdrive that started its campaign on June 22nd at the Sanand plant in Gujarat reached the I.T city Hyderabad today. The 15,000 km drive was initiated to celebrate the opening of Nano's new plant in Gujarat.

Tata Nano with its superdrive campaign garnered a lot of attention as a stream of Nanos made their way through various landmarks in the city including the Charminar, The Golconda Fort and the Charminar. The interesting part was where the people at the Hyderabad Central Mall were given a chance to explore the car and its features, up close and personal. Besides this, there were plenty of games organized related to the car that kept the participants and the audience entertained.



The Tata Nano superdrive will be heading towards its next destination, Aurangabad, Maharashtra tomorrow. The drive will conclude on June 28 in Mumbai.

Just to give you a quickie on why the whole superdrive began in the first place. The superdrive was initiated with the motive to assure the customers that Nano was a safe car. The assurance was needed after Tata Nano caught fire in different parts of the country where it was sold.The repeated accidents became a cause of worry and consequently, Tata Motors called a 20 member expert team from JLR that scrutinized the car and ultimately gave it a clean chit.


Source:- Tata Nano Superdrive reaches Hyderabad - New Cars

Hyundai Getz to call it quits in India

Hyundai Getz, the oldest premium hatchback of India which is currently struggling with continuously lowering sales in the country, is all set to be phased-out from company's portfolio in India. According to market watchers, the company now wants to fully concentrate on its other popular cars of this segment like Hyundai i20, which is receiving an overwhelming response from the Indian buyers.

The sales of Hyundai Getz have been witnessing a steep fall since last few months after the launch of Hyundai i20, as the Indian buyers prefer i20 over Getz since it has new generation features and a unique design.




The Getz model was launched in India in the year 2004 in the price segment of Rs 4.5 lakh, to target the buyers who are planning to upgrade to premium cars from the popular small cars of that time like Maruti 800, Maruti Alto, and Hyundai Santro. However, Since the launch of Maruti's most popular premium hatchback Maruti Swift in 2005, the sales of this Hyundai hatchback has been continuously falling. While in contrast, Maruti Swift is enjoying a golden phase in the Indian market with crossing the 5,00,000 lakh units sales mark in April 2010.

There were news reports earlier this year that Hyundai India may decide to upgrade Getz in compliance to the new BS-IV emission norms. However, due to its sluggish performance in the Indian market the company dropped the plan for the same.

Source:- Hyundai Getz to call it quits in India - New Cars

Chevrolet sold 3 lakh units of cars in India

Chevrolet, a brand name of General Motors India, has sold over 3 lakh cars in India since it's debut in the country in the year 2003. The Chevrolet brand vehicles include Beat, Spark, Cruze, Aveo, Tavera and Captiva. GM India recorded highest ever monthly sales of 11,330 units in March 2010, Chevrolet Beat and Chevrolet Spark (both small cars) contributed a major part of its sales, according to a statement released by the company.

GMI Vice-President P Balendran said,"It gives us immense pleasure to see such overwhelming response to the Chevrolet brand that continues to register record sales month after month consistently."



In 1994, General Motors allied with Hindustan Motors which was a 50:50 JV and it was completely taken over by the parent firm in 1999. Another joint venture took place in December 2009 between General Motors and Shanghai Automotive Industry Corporation (SAIC)- its Chinese partner. The company had invested aggressively on its Halol facility in Gujarat to produce light commercial vehicles from SAIC's stable.

Source:- Chevrolet sold 3 lakh units of cars in India - New Cars

Volvo hires VW's US head, Jacoby

Swedish car maker Volvo, a fully owned subsidiary of US based Ford Motors, has appointed Mr Stefan Jacoby as its chief executive, reported a German news daily. Mr Jacoby who was the head of Volkswagen's business in the North-American market, will replace Briton Stephen Odell in August, the report further added.

While the German auto giant stated that Jacoby has been replaced by the company as its US operations head on an interim basis until the company clarifies his contractual situation. Statement adds that the company is holding contract talks with Stefan Jacoby.




We should mention here that Volvo, which has been operating as Ford's brand for more than a decade, is currently being sold to China's Zhejiang Geely. The VW group further elaborated that the talks with Jacoby have by no means concluded yet and on an interim basis, Michael Lohscheller would take Jacoby's responsibilities on an intern basis, for VW Group of America.

Mr Stefan Jacoby, who was hired by the company in the year 2007, has been credited for establishing VW's brand under the punchline "Das Auto". He has also been responsible for improving profitability for the company's 600 dealers across the US market.

Source:- Volvo hires VW's US head, Jacoby - New Cars

Hyundai Santa Fe to be launched in India by Oct 2010

Hyundai India, the largest car exporter from the Indian market, said on Thursday that it may come-out with an upgraded version of its Elantra model in India. It should be mentioned here that Hyundai Elantra model was discontinued from the Indian market in the year 2007 due to the continuous slow down in its sales in the country at that time. The model was pitched in the highly competitive segment against some of the best selling cars of this segment like Toyota Corolla, Honda Civic, Skoda Octavia.

Besides this, the company is also planning to launch its premium SUV Hyundai Santa Fe in the Indian market with a price tag of Rs 20 to 22 lakh.

The company is reviewing the relaunch of the Elantra in the country which will be subject to the growth in the market size of the premium segment, as per a statement given by Mr Y K Koo, Senior Director of the company. However, the timeline of the launch of this vehicle in the Indian market is yet to be revealed by the company. The premium segment market in which Elantra fits in is just 3 per cent of total market size of cars in the country, but this market is growing, added Mr Koo.

Mr koo further added that the whole auto industry grew by 27 per cent in January-May but Hyundai India posted growth of 31 per cent.

Hyundai India has recently rolled-out its latest Verna Transform in the Indian market with an aim of taking its monthly sales to 2000 units from existing 1500 units a month. Hyundai Motors has infused about Rs 70 crore in the development of the new Verna Transform.

Source:- Hyundai Santa Fe to be launched in India by Oct 2010 - New Cars

Mitsubishi RVR to be launched soon

According to the recent reports, Mitsubishi India is working on its plans to launch the RVR urban crossover in India. However, there are no exact details on the launch date of the car. However, it is expected that the Crossover would hit the Indian turf by the second half of 2011. The RVR would share a similar platform and wheelbase as in Outlander, but would be placed in a segment lower than Outlander.



In terms of design, RVR is going to follow the trail set by its siblings in the company. The ‘shark nosed’ front end and wedge-shaped lights which were seen in the Evo X and the Outlander are some of the basic and the most popular features in Mitsubishi cars and the same are going to be reflected in RVR as well. This compact crossover will be powered by a 147bhp 1.8-litre turbocharged direct-injection diesel engine and would measure 4.3 metres in length.

RVR would be a compact 5 seater crossover with front wheel drive and six speed manual transmission. As the car comes from the Mitsubishi stable, there would be a number of features that would attract the buyers in the segment. Some of the prominent features include electronic stop-start technology, ABS, airbags, audio system with 6 speakers etc. The company officials decline to comment on the expected price range, but it is widely speculated that the car would come with a price tag of Rs. 15 Lakh.

Source:- Mitsubishi RVR to be launched soon - New Cars

New Hyundai 800cc car on its way to India

Hyundai Motors India limited, the largest car exporter and second largest car maker in the country, plans to launch a 800cc compact-car in India at the Indian auto expo 2012. Considering the fact that the car has been designed and developed keeping in mind the Indian market, the next Auto Expo in 2012 will be the ideal platform to unveil the car, as per a statement given by a Hyundai official to a leading news daily in India.

The new small car is under development at company's R&D center in its domestic market. After its launch in the Indian market, the new Hyundai 800 CC car will compete with country's best selling car Maruti Alto. A few months back, the company had indicated that it has plans of launching a small car in India which will be priced between the Tata Nano and Maruti Alto.

Recently, an official of the Hyundai India was reported as saying that there is minimal contribution in terms of engineering from India, but there has been a lot of input like component development, market research and customer feedback from the country.

On the other hand, Mr HW Park, the CEO and MD of the Hyundai India has said that the company is on course and the development is on its way. However, he refused to give the time frame of the launch.

Source:- New Hyundai 800cc car on its way to India - New Cars