NANO DIESEL TO ROLL OUT BY ’12

New Delhi: Tata Motors will roll out the diesel version of the Nano with an extra-powerful micro turbo engine next year or early 2012, a top engine parts vendor said.


“The diesel Nano will sport a sub-1,000 cc engine, but the output and performance will be 20-30% better than is usual for that engine size,” said Shane Tedjarati, president & CEO, China & India, of Honeywell, which has developed turbo systems for the world’s cheapest car. The micro turbo engine of the diesel Nano has already been developed and its production is being scaled up to make India the hub for micro turbo diesel technology, he said.

The improved performance of the micro turbo has allowed the Nano to sport an engine 30% smaller. The Nano will sport one of the smallest turbo systems in the world, said Mr Tedjarati.

The diesel Nano, he said, would have been launched earlier but got pushed back due the delay on account of moving its mother plant from Singur to Sanand.

The diesel Nano will be a crucial part of Tata Motors’ engine strategy for its next generation of products.

The company has invested heavily in its engine development programmes, partnering with global engine solution providers such as AVL, FEV and Ricardo.

“The engine strategy includes both incremental improvement to the existing range as well as new platforms which are on the anvil,” said PM Telang, managing director, India operations, Tata Motors.

The engine strategy spans from very small platforms to the 6,000 cc engine used in the truck range. “The larger engines come from our joint venture with Cummins but for smaller vehicles we look at sourced families,” Mr Telang said.

Apart from the diesel Nano, Tata Motors has announced that it is working on a hybrid version of the car.

Tata dealers will open fresh Nano bookings for the festival season by the end of this month. Nano bookings were frozen last April after the company received more than 2 lakh orders.

Honeywell’s Pune factory, which exports 80% of what it produces, focuses on engine capacities ranging from 700 cc to 1,700 cc. These micro turbo systems are exported to small car markets globally including continental Europe and emerging markets like China and Vietnam.
“Copyright © 2010, Bennett, Coleman & Co. Ltd. All Rights Reserved”

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BUYING A CAR? GET A GARAGE FIRST

Guwahati: Cars, cars everywhere, but not a place to park. With more than 600 new cars added to its roads every day, Delhi desperately needs an answer to its parking woes. Could Mizoram’s example provide a solution? The northeastern state has taken an unusual decision to tame traffic snarls, especially in its capital Aizawl, a hill town with narrow roads, which has one of the highest car-to-people ratios in the country.


The Mizoram Motor Vehicles Rules have been amended and a notification issued to the effect that, from August 31, any vehicle bought without providing proof of parking space shall not be registered. The diktat applies to vehicles bought by government departments too.

“Aizawl has too many vehicles for comfort, and we have found that cars parked along the roads are largely responsible for the frequent traffic snarls,” said Mizoram transport secretary P. Lalthlengliana.

“The notification is aimed at easing vehicular congestion,” he added. Lalthlengliana said the new rule would apply to all vehicles and, starting with Aizawl, would gradually be enforced across the state.

Rahul Karmakar
Hindustan Times

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MARUTI TO LAUNCH LIMITED EDITION OF RITZ TOMORROW

New Delhi: The country’s largest car maker Maruti Suzuki India said it will launch a limited edition of its compact car Ritz tomorrow, which will cost about Rs 16,000 more from the existing version.


The firm will introduce about 5,000 units of the limited edition, which is based on the current Vxi and Vdi versions, over the next three months in both petrol and diesel options.

The new variants of Ritz will be priced at Rs 4.52 lakh and Rs 5.31 lakh (ex-showroom, Delhi), as against the existing Rs 4.36 lakh and Rs 5.15 lakh for Vxi and Vdi versions, respectively.

“Ritz has received very good demand from customers. I am confident that the new edition — Ritz Genus — will find great appreciation with customers,” Maruti Suzuki India Chief General Manager (Marketing) Shashank Srivastava told PTI.

‘Ritz Genus’ will offer various new features such as key less entry, tilt steering and integrated music system.

Launched in May 2009, Ritz has clocked a total sales of over 86,400 units so far. The car is available in 1.2 litre petrol and 1.3 litre diesel options.

MSI has been introducing new options, including five CNG variants of its different models such as Alto and SX4, in order to strengthen its position in the Indian car market after its share dropped below 50 per cent this fiscal.

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VOLKSWAGEN’S POLO DRIVE HIT BY PARTS SHORTAGE

Mumbai: Volkswagen’s Polo is struggling to pick up pace. Reason: higher-than-expected demand. Component shortages and quality issues with some vendors have forced the German carmaker to run up three-to-four month waiting period for its compact car, prompting some potential customers to drive away in rival products such as Ford Figo, Hyundai i10, GM Beat and Maruti Swift, people familiar with the development say.


Blame it on Volkswagen’s inability to anticipate demand. High demand for Polo has put the vendors under pressure to ramp up production, leading to quality concerns over parts, a person close to the development said on condition of anonymity. Volkswagen India spokesperson was not available for comment.

One company official, speaking on condition of anonymity, confirmed that there is a shortage of major components. “For instance, we are unable to get enough supply of tyres, which we source from local manufacturers,” the person said. “The worry is that by putting pressure on vendors, there could be huge quality issues.”

Dealers say this is helping rival products. “We have seen a lot of enquiries by customers who have opted for other brands in the segment,” said a Mumbai-based General Motors dealer.

Polo is Volkswagen’s most ambitious launch in India so far, priced aggressively to gain a foothold in the compact car segment that accounts for more than 70% of the overall passenger market in the country.

But the company did not anticipate monthly demand of about 2,500 vehicles and its vendors were slow to ramp up capacity.

Higher demand for the top-end variant also surprised the company, the Volkswagen official said. It was expecting bigger demand for the comfort line, or mid-segment variant. This forced Volkswagen to change its production accordingly and put pressure on vendors supplying parts for the top-end version. “Interior components and door sides are the ones facing some quality issues,” said the official.

Polo, launched in March 2010, has local content of 55%. During April-June, Volkswagen India sold 3,742 Polos. Maruti-Suzuki sold 1.7 lakh small cars, including Alto,Wagon R, Zen Estilo, Swift, Ritz and A Star, during the same period units. Hyundai sold 74,059 units of Santro, Getz, i10 and i20, while Ford sold 18,495 units of Fusion and Figo. And Tata Motors sold 26,507 Indicas.

Meanwhile, despite the four-month long waiting, Volkswagen is set to introduce a 1.6 litre petrol Polo next month along with a petrol and diesel Vento, its larger sedan.

“Copyright © 2010, Bennett, Coleman & Co. Ltd. All Rights Reserved”

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ALTO-K10 is scheduled for Launch on 4th August 2010

Maruti is schedule to launch its all new ALTO-K10 on 4th August 2010, 12pm in Delhi, Mumbai and Bangalore.

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MARUTI TO LAUNCH FIVE CNG CARS IN A SINGLE DAY NEXT MONTH

New Delhi: In an unprecedented move to defend market share, the country’s largest carmaker Maruti Suzuki India will launch five cars in CNG version in a single day in the second week of next month.

The company, whose market share has come down below 50 per cent in the quarter ended June for the first time in its history, will unleash factory-fitted CNG options of its best selling Alto, compact cars Estilo and WagonR, multi-purpose vehicle Eeco and mid-sized sedan SX4.


“The CNG models will be very important in our portfolio. We are the first company to come out with factory-fitted CNG cars and we will have the first mover’s advantage in the market,” MSI Chief General Manager (Marketing) Shashank Srivastava told reporters here.

In the April-June quarter, MSI’s market share fell to 47.59 per cent from earlier over 55 per cent in the 15 lakh units per year domestic car segment. It had sold 2,06,377 units during the quarter in a total market of 4,33,641 units.

The company has decided to launch all the five versions on a single day in the second week of August because there is no particular segment for CNG cars unlike other models, which can be specified into different strata, Srivastava said.

“It is the launch of a technology, not the cars. It is the concept of factory-fitted CNG models,” he added.

Besides, MSI will launch a two new versions of its small car Alto on August 4 with a 1.0 litre K-series engine.

The Alto is the best selling car model in India averaging over 20,000 units per month. The company has sold nearly 14 lakh units since its launch in September 2000.

“We are expecting about 25 per cent increase in Alto’s sales after the launch of the new variant — AltoK10,” Srivastava said, adding the first time buyers are gradually going for more sophisticated and feature-oriented models.

In April, MSI had introduced BS IV compliant Alto on the existing 800cc F Series engine and this model will continue.

When asked about the possible price of the new Alto, he said: “There is a huge gap between the top model of existing Alto and the base version of Estilo. The base variant of AltoK10 may be priced between this range.”

The existing Alto is priced between Rs 2.29 lakh and Rs 2.81 lakh (ex-showroom Delhi), while the Estilo starts at Rs 3.20 lakh and goes up to Rs 4.10 lakh.

AltoK10 will have a mileage of 20.2 kilometer per litre as per Automotive Research Association of India standards.

The company currently offers retro-fitted CNG versions in Alto. Besides, it also offers dual fuel mode in M800 and Omni, which are available in LPG-cum-petrol variants also. Earlier WagonR was also coming with a LPG variant, but MSI stopped producing it after launching the new WagonR.

PTI
See this story in: The Economic Times (Web Edition)

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M&M PLANS TO LAUNCH EIGHT NEW MODELS IN 12 MONTHS

Mahindra and Mahindra Ltd (M&M), India’s largest maker of utility vehicles, plans to launch at least eight models in the next 12 months, including variants of existing models.

The company intends to unveil a new sports utility vehicle (SUV) as well as variants of the utility vehicle Xylo and the small truck Maxximo, president of automotive and farm equipment Pawan Goenka said in a conference call with analysts.


All the models will roll out from M&M’s factories at Nashik and Chakan in Maharashtra. “It’s going to be one of the busiest years for us in terms of new product launches,” said Goenka.

The announcement follows the utility vehicle maker reporting a 40% jump in quarterly profits on 28 July, beating analyst estimates.

Ajay Sethia, analyst at Centrum Broking Pvt. Ltd, said the launches may not boost sales significantly unless they include a compact SUV. M&has M been planning such a launch, but did not speak about it on Thursday.

“The SUV, expected to be priced at Rs5.5 lakh, can lead to incremental volumes,” said Sethia.

Goenka said the demand for its models was robust, but the company was facing production worries as three key inputs—tyres, casting components and fuel injection systems used in diesel vehicles—were in short supply.

As a result, M&M had suffered a production loss of 7-8% in the June quarter. This included tractors, utility vehicles and smaller vehicles, whose combined sales rose 12% to 101,864 units.

The firm is now considering importing some of these parts, said Goenka, but the impact will only be visible by the third quarter of the fiscal.

M&M is also considering setting up a tractor manufacturing unit in Tamil Nadu. This will help the company compete with India’s second largest tractor maker, Tractors and Farm Equipment Ltd, or Tafe, which has a strong presence in the southern states.

Another analyst with a foreign brokerage said his firm is positive about M&M’s performance in the coming quarters, but he is sceptical if it can sustain the margins. “The margins can play a spoilsport for any auto company,” he said, requesting anonymity.

Shally seth
mint (Web & Print Edition)

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Alto K10 teasers are out…

Check out the exciting teasers for Alto K10 as they are about to splashed all over the television…


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BAJAJ TO INVEST RS 500 CRORE IN WALUJ 4-WHEELER PLANT

Pune: Bajaj Auto will come up with its 4-wheeler plant at Waluj near Aurangabad instead of the present proposed location at Chakan.


Addressing shareholders at the annual general meeting on Thursday, Rajiv Bajaj, managing director Bajaj Auto, said, “In all probability we will shift the 4-wheeler plant to Waluj since we have enough land available there and have also reconstructed few of the existing buildings.”

Bajaj had earlier said the company may look at an alternative location for its small car project since it has not been able to get the adequate land at Chakan.

Kevin D’sa, president (finance), at an analyst conference call, said the new 4-wheeler platform, which can also build 3-wheelers and the ultra-low-cost car, will come up with an investment of Rs500 crore.

“The manufacturing cost will be over and above the Rs500 crore and at a later stage the production can be shifted out of Waluj,” D’sa said.

Refusing to divulge much details on the project, Bajaj said, “It is a confidential agreement between the 3 companies, however, we want to make a money making car. Capex would be under Rs500 crore and hopefully we will be able to launch it by 2012.”

The Waluj plant is supposed to be a dedicated site for manufacture of 3-wheelers and the small car. Bajaj already has a plant at Chakan manufacturing motorcycles. D’sa said due to intense competition from TVS in the 3-wheeler passenger carrier segment, there has been some loss of its 90% market share.

“The removal of permit in Tamil Nadu has opened up the market for us where the pent-up demand is around 35,000 units. In the next 3-4 months we will see significant sales happening in this region,” he said.

Nilanjana Ghosh Choudhury
Daily News & Analysis (Web Edition)

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TOYOTA TO ROLL OUT SMALL CAR ‘ETIOS’ IN DECEMBER

Mumbai: Japanese automobile major Toyota will launch its new small car ‘Etios’ in December this year and sales will begin in January next year, a top company official said.


“We are setting up a new facility for our new car, ‘Etios’, which will be completed soon and the production will start a little ahead of December. We will launch the car in December and the sales will start in January next year,” Toyota Kirloskar Motor Private Ltd Deputy Managing Director Sandeep Singh told reporters here on the sidelines of a boot camp conducted for owners of its Fortuner SUV on the outskirts of Mumbai.

The company has invested Rs 3,200 crore to set up a new facility for production of the small car, with an initial capacity of 70,000 cars per annum, he said, adding that the company has utilised internal accruals for the investment.

The capacity of the new facility can be extended up to 2,00,000 cars per annum in two years. The company will produce 65,000-70,000 cars in the first year, he said.

The price of the new car will be above Rs 5 lakh. The company is looking for local components suppliers for the new car, he said.

Toyota is looking at exporting the small car from India to various overseas markets, which is likely to start within the next two years, Singh said.

The company is, at present, using the full capacity of its existing plant, with an output of 73,000 vehicles per annum. Next year, it will go up to 80,000, he said.

Innova is Toyota’s best selling vehicle, with 48,000 units sold every annum, followed by Altis with 13,000 and Fortuner with 9,000, he said.

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