Mumbai: Tata Motors is planning to launch a Nano model that will run 40 kilometres on a litre of diesel, matching the mileage of a typical 180cc motorcycle. It will be the most fuel-efficient car in India.

The launch is expected this financial year.
A senior executive of Bosch India, which is helping Tata Motors develop the engine for the model, said, “We have worked with Tata Motors for Nano’s petrol version and we are working with it for the diesel version too. The car has a two-cylinder, 700cc engine which develops healthy power without compromising on fuel economy. Although official test figures have not been revealed, we expect it to run 40 km on one litre of diesel.”

A Tata Motors spokesperson said: “You are aware that Tata Motors continuously improves its products. But we do not provide guidance on our innovations.”

At 40km/litre, the running cost of the new Nano will be Rs 1/km. The capacity of the fuel tank is expected to be 15 litres.

For Tata Motors, the diesel version could finally attract customers opting for two-wheelers – the original idea behind the Tatas’ Rs 1 lakh car project. For instance, Bajaj Pulsar 180, which costs Rs 78,000 (ex-showroom, Mumbai), runs 40 km on a litre of petrol.

However, Bajaj Auto, too, is working on a petrol car with Renault and Nissan and aims to offer 40km/litre. The car is slated for launch in 2012.

Nano is the largest-selling Tata model in India with monthly sales of around 8,500. The country’s largest selling car, Maruti Alto, records monthly sales of 25,000 a month.

With increased fuel economy, Tata Motors is aiming to target Maruti Suzuki, the country’s largest car maker, whose unique selling proposition is mileage. It markets Tata Indica on the basis of its mileage of 20-25 km/litre, claimed to be the best in the industry.

Although the price of the diesel Nano is yet to be finalised, market experts say it will be 15-20 per cent more than the petrol version. The base version of Nano costs Rs 1.5 lakh in Mumbai (ex-showroom).

The model is expected to do well as diesel is subsidised in India, unlike petrol. In Mumbai, unbranded diesel is 33 per cent cheaper than petrol.

From the low of 509 units in November last year, Tata Motors has been able to increase Nano sales through network expansion and easier availability of finance. The company recorded sales of 8,707 units last month. The petrol version of Nano, which gives 20-25 km/litre, and Tata Indica are the most fuel-efficient cars in India at present.

The carmaker recently announced its plans for the introduction of second-shift production in April, reduction in production time per vehicle, production enhancement and postponement of the launch of hatchback Etios Liva from April to June, all reflecting the active measures taken to reduce the waiting period for Etios.

The annual production capacity of the first plant currently manufacturing Innova, Corolla Altis and Fortuner, will be increased from 80,000 units to 90,000 units in the third quarter of 2011, while the capacity of the second plant that currently manufactures Etios will be raised from 70,000 to 1.2-lakh units. The expansion will be carried out in a phased manner starting in July, extending into the second quarter of 2012. The 1.2-lakh units will also include 20,000 units of Corolla Altis, shifted from the first plant to the second plant in the first-half of 2012.

“The demand for Innova and Fortuner has persistently grown in the recent months and consequently the waiting period.

The huge demand for Etios has further provided momentum to expand our production capacity. We will enhance our production capacity to cater to our customers’ growing demand,” Toyota Kirloskar Motor (TKM) Managing Director Hiroshi Nakagawa said in a statement.

According to TKM Deputy Managing Director (Marketing) Sandeep Singh, “We recently announced our plans to bring down the waiting period for Etios, which included enhancing production and deferring the launch of the hatchback Etios Liva. This production expansion will further our aim to bring down the waiting period.”

The car, powered by a 2.4 litre petrol engine, will be imported from parent Suzuki’s Japan facility. It is capable of churning out a solid 178PS at 6,500 rpm and generates 230Nm of torque at 4,000 rpm.

“The Kizashi is a major step forward for Maruti Suzuki. With the launch of this luxurious sporty sedan, the company is able to offer an international car to top-end customers in India,” Maruti Suzuki India Managing Director and CEO Shinzo Nakanishi told reporters here.

The car would be available in two variants, manual transmission priced at Rs 16.5 lakh and automatic transmission at Rs 17.5 lakh.

Mayank Pareek , Managing Executive Officer-Marketing, Maruti Suzuki, says, “This is our latest offering in the upper segment. This is a A4 segment car with A5 features. There are features which are not even there in A5 cars. We are positioning it as a sports luxury car. It has got best in class engine, highest power. It has got features like cruise control, electronic stability programme, ABS, EBD and 10-way seat adjustment.”

If one opts for the manual version the Kizashi is capable of accelerating from 0-100 km/h in just 7.8 seconds flat. Should one opt for the CVT, then the timing increases by a second to 8.8 seconds to do the dash. Top speeds are 215km/h and 205km/h for the manual and CVT versions respectively.

Pareek said that Kizashi customers will be different and hence the whole offering, sales process, sales delivery method, everything will be tuned to these type of customers.

Fuel efficiency as claimed by the manufacturer is 12.53 kmpl for the CVT and 12.45 kmpl for the manual transmission.

The company has already started bookings for the car, deliveries for which will begin in March this year.

Coming in as a CBU, the Kizashi is set to take on established brands such as the VW Jetta, Honda Accord and Skoda Laura.

Maruti plans to launch New Swift and SX4 Diesel this year. Pareek said that the company is committed to launch at least 1 new car every year.

Asked what if the government hikes excise duty of cars, Pareek said, “2008 essentially what the government did was correction of excise duty, interest rates reduced and fuel prices came down. So we will be back to that level which will be a concern for the industry.”

On long wait list of Maruti cars, Pareek said: “We are very sorry to customers that they have to wait. We have done lot of things. For example Swift which we were making 5000 per month, now we have increased to 12000 per month. Dzire which was early 2000 per month, we have increased to almost 8000 per month. Eeco from 2000 to 7000 per month, but customers love these cars so much that demand keeps on increasing. We are setting up a new plant which will be ready in this year. So that will give us a lot of cushion actually.”

http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/maruti-kizashi-launched-at-rs-165—175-lakhs/articleshow/7410713.cms

MARUTI LAUNCHES NEW LUXURY MODEL ”KIZASHI”

PTI
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New Delhi: The country”s largest car maker Maruti Suzuki India has launched its luxury sedan Kizashi, with an introductory price of upto Rs 17.5 lakh.

The car, powered by a 2.4 litre petrol engine, will be imported from parent Suzuki”s Japan facility.

“The Kizashi is a major step forward for Maruti Suzuki. With the launch of this luxurious sporty sedan, the company is able to offer an international car to top-end customers in India,” Maruti Suzuki India Managing Director and CEO Shinzo Nakanishi told reporters here.

The car would be available in two variants, manual transmission priced at Rs 16.5 lakh and automatic transmission at Rs 17.5 lakh.

The company has already started bookings for the car, deliveries for which will begin in March this year.

In the four-odd weeks since this year began, the sector has already seen two major VC investments, in a radio taxi service firm and a portal that tracks the used car business. The lack of good public transportation and the increased sales in the auto sector are said to be why VC funding has been attracted.

In a recent development, car rental company Carzonrent India Pvt Ltd, which operates under the name Easy Cabs, raised Rs 36 crore last week from BTS India Advisors, a private equity (PE) firm.

Earlier, it had received investments from SIDBI Ventures and Sequoia Capital. Carzonrent offers operating lease, car rental and limousine services, with a fleet of more than 4,000 cars.

Minuses produce potential
K Srinivas, managing partner, BTS Investment Advisors Ltd, said, “Different from the western countries, Indian public transportation is highly fragmented and unorganised. Abroad, there are organised radio taxi services available; in India, it is in a nascent stage and a handful of players are established. As the radio taxi and cars-on-rent businesses are nascent, we expect about 30-40 per cent growth annually.”

According to experts, radio taxi services in India have a potential to grow about 10-fold in the next 10 years.

Rajesh Puri, CEO, Meru Cabs, the leading radio taxi service player in India, said, “As local intra-city commutation is yet to improve, there is huge potential for radio taxis in India. In metros, where parking and fuel costs remain a concern, more people prefer radio taxis, which boosts its growth potential. Also, tier-II cities like Jaipur, Pune and Ahmedabad, which see lack of adequate public transport facilities, are seeing the entry of radio taxi services. Hence, more VC/PEs are keen in this area.”

Though this is a high-depreciation industry, returns are expected after three-four years of investments, he added.

India Value Fund Advisors Pvt. Ltd, with $1.4 billion under management, invested an undisclosed amount in V-Link Travel Solutions Pvt Ltd for a majority stake in 2006. V-Link launched Meru Services in 2007 and this is set to add 600 cabs to its fleet in the January-March quarter. Meru is expecting a 50 per cent growth in top line this year. “After we reach 10,000 cabs, we may consider an Initial Public Offer,” Puri said.

The radio taxi services segment in India is highly fragmented and the major names are Meru Cabs (5,000 Cabs), Easy Cabs (2,200 cabs) and Mega Cabs (1,000 cabs).

Ambit Pragma, the PE arm of Ambit, invested in Prasanna Bus Links, a Pune-headquartered city bus operator which operates services for the Delhi Metro Rail Corporation and the cities of Indore, Pune, Ujjain and Jalgaon.

Growth pull
Mayank Rastogi, partner-PE, Ernst and Young, attributes the VC interest to the high growth in domestic consumption, especially in services. He said, “The used car market is growing tremendously in India, where major players like Mahindra and Maruti are established already. The platforms which help the used car business see huge potential as far as the VC fundings are concerned. The increased sale in the four-wheeler segment also drives the services business ahead.”

This month, MotorExchange.in has raised a second round of funding of $5 million (Rs 23 crore) from Epiphany Ventures and existing investor Canaan Partners. Launched in December 2009, MotorExchange is in the used vehicles business.

Its promoters are Vinay Sanghi, former CEO of Mahindra First Choice, and Rajan Mehra, venture partner at Clearstone Venture Advisors. Mehra, former country head for eBay in India, had started eBay’s b2b auto business in India.

In last November, Axel Springer AG, one of the largest multimedia companies in Europe, took a 52 per cent stake in Automotive Exchange Pvt Ltd, the owner of automotive classified ads portal Carwale.com, marking an exit for early investor Seedfund and Sierra Ventures.

The India Group has also acquired 18.3 per cent in Carwale.

In 2008, Carnation Auto, a multi-brand car sales and service network initiative by former Maruti Suzuki managing director Jagdish Khattar, received about Rs 28 crore from IFCI Venture Capital Funds and Rs 80 crore from PremjiInvest, investment arm of Azim Premji.

Bettering its previous warranty of 18-month or 24,000 km, whichever earlier, announced in March last year, the company said the new offer will come at no extra cost.

“The Tata Nano will now come with a 4-year/60,000 km (whichever is earlier) manufacturer’s warranty, at no extra cost. Besides being applicable on new deliveries, the warranty is also being extended to all existing owners of the car,” the company said in a statement.

The company said all new Nano customers will have an option to avail a “comprehensive maintenance contract” at Rs 99 per month.

From a sale of 9,000 units in July, Nano deliveries fell in every following month and touched a low of 509 units in November. Sporadic incidents of the small car catching fire has made it difficult for the company to push Nanos sales, despite a number of assurances through various campaign initiatives.

Tata Motors earlier this month had asked Nano buyers to bring back their cars to add safety devices free of cost to prevent the vehicles from catching fire but insisted it was not a recall.

Even after registering 85 per cent fall in sales at just 509 units in November this year, Tata Motors claimed that deliveries have “substantially increased in the first five states of open sales”.

“Customer satisfaction studies with current Tata Nano owners indicate that over 80 per cent are satisfied or very satisfied with the car, because of it being small yet spacious, its performance, manoeuvrability, durability, mileage and safety,” Tata Motors claimed.

In August, the sixth incident of a Nano catching fire since its launch was reported from the National Capital, three months after a company probe declared the car was “absolutely safe”. Five previous such incidents were reported from across the country, including Mumbai, Lucknow, Delhi and near Vadodara in Gujarat.

After ramping up production at its Sanand facility, the firm started open bookings at many places such as Kerala, Karnataka, Maharashtra, Uttar Pradesh and West Bengal. However, due to rising input costs it raised the Nano prices twice for the off-the-shelf customers. It has so far delivered over 71,000 units.

After the Santa Fe’s first official showing at the Autocar Performance Show in 2009, there’s been a fair amount of interest in this SUV which was further strengthened after Auto Expo 2010. Hyundai has taken its time to launch this Santa Fe largely because it was struggling to price it realistically. Just like the CR-V, Captiva, Outlander and the X-Trail, the Santa Fe is an import and not locally assembled, which immediately puts it at a disadvantage as far as costs go.

The Santa Fe looks like a different breed of SUV compared to its Indian forerunners and even the first-generation Santa Fe. It’s not loaded with style but the Santa Fe’s fluid and smooth shape still looks quite contemporary. The rectangular headlamps are quite slim for an SUV and sweep upwards into the flanks. Two independent lamps are ensconced in chrome and smartly aggressively offset with a black surround. The small and squarish grille, typical of Hyundais of this generation (e.g., Sonata), is built into the one-piece bumper which has been upgraded for 2010 with a more aggressive, chiselled look and a raked housing for the fog lamps. The bonnet too has been redesigned for 2010 and features two ridges that swoop from the base of the A-pillar to the grille.

In side profile, the Santa Fe looks big and hints at the space inside. The shoulder line and rear overhang emphasises its 4660mm length and you can see that this Hyundai feels a class bigger than other soft-roaders. The rounded styling theme continues down the side and to the rear as well. The rear glass section also sports a very rounded look and the rear lights that jut out of the body work add stylistic detail. A practical touch is the boot release integrated into a neat grab-handle.

The Santa Fe is very easy on the eyes and overall, you definitely won’t be disappointed with its looks. It’s just that the advent of Hyundai’s new crop of cars such as the ix35 keeps you from getting blown away either.

Inside the Santa Fe the dashboard shape, the layout and design of switches feel a bit old-school. . The quality of materials didn’t live up to Hyundai’s new standards. On the upside, there is no skimping on the equipment list.

Centre console
The simple and smart-looking centre console angled towards the driver shows off the six-CD in-dash music system with a blue-backlit screen. It also boasts of a USB socket and an Aux-in port. The air-conditioning controls sit at the bottom, with separate controls for driver and passenger. The knobs here feel well damped and smooth to operate. The steering wheel comes with controls for the audio system on the left and cruise control on the right. Blue back light is used on switches and the instrument console. The three chrome rings house the rev counter, speedometer and fuel and water gauges. A multi-functional digital display provides a variety of information such as trip and distance-to-empty. Front, side and curtain airbags combined with active headrests, rollover sensor, ESP and ABS with EBD explain the Santa Fe’s four-star NCAP rating. A reversing camera helps keep the bodywork in check when reversing out of tight spots. There are plenty of storage bins, an armrest for the driver and, apart from the cigarette lighter, there is a 12v power socket as well. Both front seats come with six-way power controls and even lumbar adjust for the driver.

The seats themselves are quite comfortable for average-sized adults. The middle seat, where many owners will spend time (being chauffeured), has a nice and tall seating position but it could do with better under-thigh support. The seat has a 60:40 split and both backrests can be individually adjusted for incline. The third row can only be accessed by flipping the smaller split of the middle seat. What’s good is the ease with which the rear seats spring out of the floor with a simple tug of the handle. Here, passengers will find the seating position to be very knees up. Things could have been much better if the second row of seats could slide forward to liberate more knee room. Headroom too is at a premium which means anyone tall had better avoid the third row.

Space-wise
Hyundai has thoughtfully provided air-conditioning vents for all three rows with the last row even getting an individual blower speed control switch. Compared to other seven-seaters, the Hyundai feels significantly more spacious. With the seats flipped up, the boot space available reduces considerably from the normally generous 969 litres.

The engine is the Santa Fe’s biggest surprise and the punch delivered by the 2.2-litre CRDi motor is truly astounding. Hyundai offers this motor in three states of tune, from 150bhp all the way to 194bhp on the top-of-the-line R-engine. Incredibly, it’s the latter that Hyundai is bringing and what we experienced.

The in-line four-cylinder engine comes with a four-valve head and variable geometry turbo for maximum bang. Driveability is good too. The Santa Fe claims to make its peak torque of 44.4kgm right from 1800rpm. There is some amount of turbo lag below the 1800rpm mark but this doesn’t make the 1987kg SUV lethargic. Diesel clatter is suppressed very well, getting just a touch obtrusive at higher revs. Overall, this engine is remarkably refined and possibly the Santa Fe’s strongest asset.

The MacPherson struts at the front and a multi-link with anti-roll bars at the rear do a good job of ironing out bumps and the ride is quite pliant. However, it feels a touch restless on uneven surfaces and the ride isn’t as settled as we would have liked. The Santa Fe too uses an on-demand or part-time four-wheel-drive system. The idea is to offer safer and more dynamic driving ability for the SUV. The Santa Fe falls short on the high-roller/celeb image that many Indians expect from their SUV. Its dashboard and interior fittings take some of the fun out of a Rs. 23 lakh vehicle. However, in terms of practicality, the seven-seater Santa Fe is very user-friendly and hard to fault. Owners will find it quite effortless to drive while being pampered by the list of equipment it offers. The Santa Fe may not be the cheapest SUV in its category but after looking at everything it has to offer, it’s decent value for money.

It is one detail that you may have missed out in a booming market where every carmaker seems to be reaching a new milestone every month, but clearly our big carmakers are alert even when they party. They can cross over in no time.

Tata Motors will roll out its Tata Aria, developed from the Xover concept, in the last quarter of 2010, while Maruti’s first crossover based on its R3 concept and Skoda Roomster will hit the Indian road next year, according to industry executives familiar with company plans.

Crossovers, or multi-utility vehicles, are positioned between larger sports utility vehicles and smaller hatchbacks, mixing the silky comforts of a car with the rough and tough built of an offroader.

“As the market shifts towards compact cars, MUVs are gaining ground with their higher utility and lower cost of operations,” says Sundeep Singh, deputy MD (marketing) at Toyota Kirloskar Motors, maker of Innova crossover.

The segment, dominated by Innova and Mahidra & Mahindra’s Xylo, grew 41% to 1.5 lakh vehicles, or close to 10% of the country’s passenger vehicle market, last financial year.

Industry analysts point to increased incomes, higher aspiration levels, more young buyers and multi-purpose utility as factors boosting crossovers. Also, crossovers are priced lower, Rs 6-11 lakh, than SUVs coming at Rs 8-25 lakh and more.

“There is a complete transformation with MUVs generating a huge demand off late with changes in urban demography and the emergence of rural markets,” says Anjali Jajoo, auto analyst at Mumbai-based Angel Broking. “Its growth is also helped by the buoyant economy as a high number of these vehicles are used for commercial operations.”

Automakers expect the demand to soar, driven by nucleus facilities looking at bigger crossover vehicles that can change into outstation wagons.

All three new vehicles — Maruti’s R3 concept, Tata Aria, built on the new Xover platform, and Skoda’s Roomster MUV, based on its Fabia hatchback platform — were showcased at the Delhi Auto Expo earlier this year.

Tata Aria, which will take off later this year, may have a ready market as both Toyota and M&M are struggling to meet the demand for Innova and Xylo.

“We are facing huge customers discontent as waiting for the Innova go up to three months in many regions now,” says Toyota’s Sundeep Singh. The company plans to increase Innova production to meet rising demand, he adds. Mahindra Xylo, priced at the entry level, also enjoys a two-month waiting for delivery. Tata Aria will be bigger and roomier than both. It is 4.85-meter long and will have flexible seating that can comfortably accommodate seven adults and offer ample cargo area.

Sources in the component industry say that Volkswagen also may enter the crossover segment in the country with a vehicle built on the Suzuki SX4 platform and that the unnamed vehicle could hit the market next year.
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Global Vehicles had filed a lawsuit against M&M in June in a US district court in Atlanta for delaying the launch of its trucks, while also accusing M&M of holding back information about the launch and keeping it in the dark.

M&M said in a statement that, “Mahindra’s relationship with Global Vehicles Inc has ended, the agreement dated September 26, 2006, between Mahindra and GV having terminated.”

Global Vehicles, which has so far signed up more than 350 dealers and spent more than $35 million (Rs162 crore) preparing for the launch, stated that any attempt by M&M to terminate their contract would be invalid under US law.

M&M’s president for automotive and farm equipment, Pawan Goenka, remained out of reach when contacted for this story. However, a company spokesperson said, “As the matter is sub-judice, we cannot comment.”

An out-of-court settlement between the two companies was seen as a viable option, since many of Global Vehicle’s outlets were ready to start selling M&M’s vehicles and that setting up an alternative dealership chain would take several months. Further, Global Vehicle had also asked the court to restrain M&M from engaging with any other dealer or distributor to retail its range of vehicles.

In May, M&M reiterated its plans of launching the TR20 and TR40 pick-ups (based on the Scorpio platform) in the US market by December, with production scheduled to start next month at the Chakan, Pune, facility.

M&M had first planned to launch a range of vehicles in the US in December 2008. However, due to repeated delays in procuring the required clearanhces from safety and emission authorities, the launch was postponed at least twice.

In its suit, Global Vehicles also stated that dealers had spent more than $60 million (Rs278 crore) towards franchisee fees for the right to sell M&M vehicles.

At the time the lawsuit was filed, a Mahindra spokesperson said, “Mahindra firmly believes these legal actions to be without merit and will vigorously contest these actions.”

Less than two weeks ago, M&M had declared that it had become the first Indian automobile manufacturer to receive a Light Duty Diesel Federal Tier-2 BIN-5 and OBD-II compliance certification from the EPA.

M&M planned to launching the pick-up line first, followed by a sports utility version of the Scorpio by December next year. Its new SUV, currently undergoing tests, will also be launch in the US in 2012.

M&M’s plans include the launch of a four-door pick-up version of the Xylo multi-utility vehicle, expected in 2012. It is also working on a gas-electric hybrid vehicle for the US market, which could be launched in 2013.

The US is the world’s largest pick-up market, with annual sales of more than 13 million units. The compact truck market, where M&M will position its products, is currently about 240,000 units, and is expected to grow to 300,000 units by next year, according to M&M estimates.