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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“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”

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.

“We will launch Sante Fe in October-November, ahead of the festive season. If volumes pick up, then we will consider assembling the vehicle here,” said Arvind Saxena, director, (marketing & sales), Hyundai Motor India. The seven-seater SUV, as against the earlier five-seaters, will be powered by a 2.2-litre diesel engine, and initially the company plans to import it as completely-built units.

The Korean auto major had earlier launched its SUVs—Terracan and Tuscon—but withdrew them from the Indian market after the SUVs went in for a `model change’ globally.

Hyundai Motor India is well entrenched in the budget segment with Santro, i10, i20. However, some of its premium products such as Sonata and Elantra have not met with much success. While the company has stopped retailing the Elantra, it plans to bring the new Sonata by the year-end. “We intend to give significant focus to our premium product category with the launch of the Santa Fe, and then follow it up with other models, said Mr Saxena.

The SUV segment is the fastest-growing segment in the Indian luxury car market, with a growth of more than 18-20% coming from the premium segment. The recently-launched Toyota Fortuner, which dominates the premium SUV market, will take on the Santa Fe. Some of the new challengers in the SUV space—Skoda Yeti and Nissan Murano—will compete with existing players like Honda CR-V, Chevrolet Captiva, Ford Endeavour, Nissan X Trail, Mitsubishi Outlander. “There is a huge untapped market for premium SUVs and every car player is looking at launching models,” said Abdul Majeed, auto practice leader, PwC.

Globally, premium SUV sales are under the weather as manufacturers are increasingly focusing on selling fuel-efficient small cars.
“Copyright © 2010, Bennett, Coleman & Co. Ltd. All Rights Reserved”

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

Owned by New Delhi-based Eicher Motors it aims to increase its production capacity to 12,000-15,000 units per month from 5,000 units per month.

Siddhartha Lal, managing director and chief executive officer of Eicher Motors, said, “We are evaluating various ways to increase our production capacity. Over the next 18-24 months, we should be able to bring the new capacity on stream.”

Lal declined to comment on the proposed investment for capacity addition, but industry experts said it would cost the company a minimum of Rs 200 crore.

Now, Royal Enfield produces five models at its Chennai facility. According to Lal, the company is witnessing good traction for its newest range, including Classic 350 and 500, which cost more than Rs 1,00,000.

“We had to adjust the bike capacity marginally to accommodate the Classic range and hence, the monthly capacity had dipped to 4,500 per month, which is now back to 5,000-levels. By next year, this capacity should reach 6,000 units per month,” said Lal.

VE Commercial Vehicles (VECV), a 50:50 joint venture between Volvo Group and Eicher Motors, will invest Rs 800 crore for capital expenditure and setting up an engine manufacturing facility over the next three years.

The company is setting up a facility at its existing plant at Pithampur, Madhya Pradesh, for manufacturing advanced truck and bus engines for Volvo. The facility would be operational by the start of 2013.

VECV aims to increase its market share to 15 per cent, from 2-3 per cent, by 2015 in the heavy commercial vehicle segment. For the time being, the company wants to focus on the 5-tonne and above segment, as there is more scope for expanding margins, compared to the volume generating small commercial vehicle segment.

However, Lal, who is also the managing director and chief executive officer of VECV, said the company could look at the sub-one tonne segment, where Tata’s Ace had a majority market share. “We could look at that segment once we have our plans through for the heavy and medium segment,” said Lal.

A senior company executive said Eicher branded products would be sold on a pilot basis by utilising Volvo’s distribution network in Indonesia.

Swaraj Baggonkar
Business Standard

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.

The Hindu Business Line (Web & Print Edition)

Maruti Suzuki today launched another version of Brand Alto, equipped with a K-series, 998 cc engine. This version, called ‘Alto-K10’, comes with improved suspension, new cable-type transmission, superior brake system and more knee-room for rear seat passengers.

The existing Alto clocks average sales of over 20,000 units every month. Maruti Suzuki expects the Alto-K10 to bring in additional customers.

Highlights of Alto-K10
• Fuel efficiency: 20.2 km per litre – the highest among petrol cars in A2 segment
• Performance: Alto-K10 can accelerate from 0 to 100 kmph in just 13.3 seconds
• New cable type transmission for easy gear shifting and enhanced driving pleasure

Changes in Dimensions, Exterior and interiors:
• Alto-K10 is longer by 125mm to accommodate the bigger K-series engine. It has a new aggressive front, with a differently styled combination of dynamic hood, bold eagle-eye headlamps with crystal-clear lens.
• The Alto-K10 comes with
o Tinted glasses
o Body coloured bumpers
o Precise and smart front grill
o Stylish tail gate o Large13-inch tubeless tyres
o Trendy wheel-covers
o Interesting body side mouldings
• Plush two-tone interiors and an all-new 3-spoke steering wheel. These are aided by
o Vibrant new colours for upholstery
o Colour coordinated door trim fabric
o Stylish gear knob
o Integrated headrests at front and rear
o All-new speedometer, tachometer and electronic tripmeter o Vanity mirror
o Accessory socket
o Rear parcel tray
o Ash tray and Cup holder
o Front power windows
• The designers imparted special attention to the rear exteriors of the Alto-K10 with a newly designed back door and a fresh set of rear combination lamps.

While the existing Alto will continue to serve customers across India, the new sibling, Alto-K10, is specifically targeted at those customers, who are looking for premium features and performance in an economical package. For the record, the existing Alto holds the singular achievement of selling the highest number of units by a single model in a month with a staggering 25,340 units in May 2010.

Superior power and fuel efficiency
o Alto-K10 is powered by a 998cc three-cylinder ‘K10B’ engine
o Fine balance of more power and high fuel efficiency o Remarkable peppy performance
o Peak power of 68ps@6200rpm
o High torque of 90Nm@3500 rpm Low emissions and Low NVH.
Alto-K10: High on Safety and Security
o Collapsible steering column
o Improved suspension system
o Improved brake system
o Side impact beams
o Front fog lamps
o Headlight leveling device o The child locks on the rear door
o Central locking
o i-CATS, to minimizes chances of a burglary
o High mounted rear stop lamp
Comfort
o Air-conditioner and a heater
o Power Steering
o 13-inch tubeless radial tyres
o 4.6 meters turning radius to take on traffic and parking challenges
o A high 160 mm ground clearance o Improved knee-room for rear seat passenger comfort
o Remote fuel tank lid opener
o Remote back door opener
o Key-off reminder
o Internally adjustable ORVM
Environment Friendly
o BS IV compliant o E-10 and ELV compliant

The new Alto-K10 is available in an array of six colours :
• Sunlight Copper • Fire Brick Red • Ecru Beige
• Midnight Black • Superior White • Silky Silver

Introductory Price
Model City Ex Showroom (Rs)
Alto-K10 LXi Delhi 3.03 lakh
Alto-K10 VXi Delhi 3.16 lakh