Apr
30
2009
New Launches & Upcoming Cars in India

Volkswagen To Launch New Beetle In Nov

Volkswagens India arm plans to launch the two-door, four-seater New Beetle in India in November this eyar. The car, which is produced in Mexico, will be imported here, according to Kurt Rippholz, head of communications, Volkswagen Group India.

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Apr
30
2009
News & Events

Hyundai to Shift Part of I20 Production to Europe

Hyundai Motor India has decided to have one more production base for its i20 cars.


The new manufacturing base will be outside India. In the light of the changing environment, the company management sees a lot of economic sense in serving the i20 needs of Europe from a production location closer to the market. The company is still to finalise the second location. It has a few production bases in Europe.


In the first week of November last, the first consignment of the all-new i20, which was revealed at the Paris Motor Show in October last, rolled out from HMILs Sriperumpudur plant for shipment to the European market. The first consignment of Made in India i20 cars comprised 2,820 units. According to company officials, around 17,000 i20 cars were exported to Europe in the first quarter of 2009. The plan was to export 1.20 lakh units in 2009.


When it launched the production of i20, the company had said that the entire i20 needs of the European market would be met through production at the Sriperumpudur facility.


The change in thinking has come about due to a combination of factors ranging from volatility of the rupee, poor power availability, inadequate export incentive and labour problem. All these had made export of i20s from India a costlier exercise, sources said.
HMIL sources clarified that the Sriperumpudur facility would continue to make i20s for the domestic market. The company, sources said, was hoping to sell at least 45,000 units of i20s in the domestic market in 2009.


Company officials, however, asserted that India would continue to be the base for small car production. They pointed out that i20s were designed specifically for the European needs in terms of style and other things

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Apr
29
2009
New Launches & Upcoming Cars in India

MLR Motors Expects to Display Demo Car at Auto Expo

Admitting to a delay in project implementation, MLR Motors maintains it is making all out efforts to showcase a prototype of its small car at the New Delhi auto show next year. The company claimed that all the designs are ready and it has tied up for engines with European firms. They are in discussions with banks and financial institutions and private equity players to close funding for the first phase of the car project, which entails investment of about Rs 1,250 crore. Typically, development of a car takes five-six years and MLR has made significant progress.The designs have been firmed up after restyling; work on the engines is underway in Europe and a prototype will be ready soon. The company is simultaneously working on petrol and diesel variants of hatchback.

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Apr
29
2009
News & Events

Mahindra Group to Be India's Sixth Largest

The Mahindra Group's acquisition of Satyam Computer Services will propel it a notch higher in India Inc's big league, making it the country's sixth largest business conglomerate.
 
As of March 2008, the group reported a consolidated top line of Rs 32,080 crore. After the Satyam acquisition, it is likely to gain access to an annual top line of Rs 6,500 crore, which will take its total revenue to Rs 38,580 crore.
 
With this, it will pip the Anil Agarwal-led Sterlite Group, which generated Rs 35,319 crore in revenues in FY08. The analysis used the results for year ending March 2008, for want of the latest consolidated results.
 
The Mahindra group has a prominent presence in key sectors including financial services, retail, logistics, automotive components, information technology and infrastructure development.
 
Currently, its flagship auto company contributes 58% to the group top line and 53% to its total market cap. Tech Mahindra is at a distant second, making up for 9% of the top line and 18% of the market cap.
 
With the inclusion of Satyam's revenue, this contribution would be as high as 30% of the overall revenue. Also, the combined IT segment would now make up for almost one-third of the group market cap.
 
The Mahindra group is ranked in the Forbes Top 200 list of the World's Most Reputable Companies. It is among the few diversified business groups in India.
 
The group recently launched its flagship store 'Mom & Me' in South Delhi as a part of its retail initiative. The store spread over 10000 sq ft is a one-stop shop specializing in mother and childcare products. It has also made an entry in the two-wheeler segment.
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Apr
16
2009
New Launches & Upcoming Cars in India

Ford to roll out small cars in 2010

The Times of India (Print Edition)

Ford India said troubles with its parent in US will not affect its planned $500 million investments for India, and added that the company’s small car would hit the market by early 2010 with localization as high as 85% to keep the price competitive.
 
Michael Boneham, MD and president of Ford India, told TOI that the company's expansion plans were going ahead "as scheduled". The US auto major that posted a record $14.7 billion net loss in 2008 globally had announced the half-a-billion dollar investment for India last year to double annual production capacity to 2 lakh units and make 2.5 lakh petrol and diesel engines.
 
"The last six months have been tough for the auto industry... and we maintain a cautious outlook for the rest of 2009," Boneham said, adding that he expected a turnaround only by 2010. "And this will be the time when we bring in our small car. Thus, we are confident it will get a good response," he added.
 
The company is making efforts to ensure that its new small car, that is being designed and engineered for the Indian market, is attractively priced considering it faces tough competition from players like Maruti Suzuki, Hyundai and Tata. "It will the first offering from Ford in the mass-market segment and we are making efforts to keep it cost-competitive while making it a great value proposition," he said.
 
Ford currently sells sedans like Ikon and Fiesta in India apart from the SUV Endeavour and has seen sales shrinking 19% in April-February'09 period at 24849 units (year-on-year). Boneham said he expected numbers to turn positive once the small car hits the market.
 
Ford's car would come with petrol and diesel engines, both falling within the small car definition of the government to avail lower excise benefits i.e. petrol engine under 1200cc and diesel under 1500cc with overall length below four metres.
 
Asked whether the company had plans to export the model, Boneham said it would certainly be sold abroad, though the initial focus would be on the domestic market. "Yes, we would look at markets beyond India and these would be countries in the Asian region, South Africa as well as Asia-Pacific area," he said. And in the run-up to the car's launch, the company is beefing up sales and service network in Tier-2 and Tier-3 cities while also working on relationships with banks for broadening retail finance options.
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Apr
16
2009
New Launches & Upcoming Cars in India

GM's small car may sport Rs.4 lakh tag

The Economic Times (Print Edition)

General Motors India is looking at pegging its new small car, which will hit the street by the 2009 -end, in the sub-Rs 4 lakh band. The pricing of small car, first unveiled at the Geneva Motor Show earlier this year, will be just above Spark, which carries a tag of Rs 2.6 to Rs 3.4 lakh range.
 
While the parent company in the US is struggling to stave off bankruptcy by a government bailout, for GM India, "Its business as usual and all investments are on track," according to the company president and managing director Karl Slym. Last month, GM India sold 5,001 units, a 5% growth over its February sales. In fact, he says: "We are seeing a slight revival in the sector". There is no proposal to phase out the Spark as of now, he said, and it continues to be their entry-level car.
 
GM India said, the company will launch its high-end salon, Cruise, in the Rs 12-13 lakh price point. The small car, which Mr Slym refers to as the mini-car , will be launched in both petrol and diesel versions. The engine for this car will be made in India by middle of next year at its factory at Talegaon. Even before its engines are made in India, the mini car will have a localisation of around 65%.
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Apr
16
2009
New Launches & Upcoming Cars in India

Nissan to launch 4-5 models in next 4 years

The Pioneer (Print Edition)

Japanese auto major, Nissan, has ambitious plans for the Indian market and targets to launch 4-5 models over the next four years with the first one slated to hit the market before summer 2010, a top company official said.
 
"We propose to launch four to five models over the next four-five years in the Indian market. Our first car is scheduled for launch by summer 2010," Nissan Motor India Managing Director and CEO, Mr Kiminobu Tokuyama said.
 
Nissan's vehicles will be manufactured from its Rs 4,500 crore Chennai facility, set up as a joint venture with Renault. Nissan has a capacity to manufacture two lakh units initially while Renault, another two lakh. The latter has, however, postponed its launch from this facility. “Our plans are on track and our first car will be the Micra hatchback. The Micra is known as March in Japan and the Indian version will be christened either Micra or March,” Mr Tokuyama said.
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Apr
16
2009
News & Events

Mahindra Sells 1,788 Xylo Units in 2 Weeks

Mumbai
Mahindra & Mahindra said it sold 1,788 units of the recently launched multi-purpose vehicle Mahindra Xylo in the first two weeks. The first vehicle delivered on January 16 following its launch three days prior to it. The company said bookings for the Xylo have crossed the 4,000-mark since launch. However, its total vehicle sales for January were 21 per cent down at 17,611
 
   
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Apr
16
2009
News & Events

Auto's Jan Sales in Top Gear Despite Discount Withdrawal

Big auto companies posted positive car sales in January, reviving hopes of an upturn in demand, as increased customer interest drove higher footfalls at car dealerships.


Car market leader Maruti Suzuki India achieved its highest-ever domestic and total sales in January this year. Maruti’s dispatches to domestic dealers increased 5.6% to 67,005 units during the month. Its last biggest dispatch of 65,216 cars took place way back in November 2007. Maruti posted retail sales of 76,700 vehicles in December, its highest ever, clearing the stocks piled up at dealerships.
Most car companies reported positive sales despite the withdrawal of price rebate schemes.


Utility vehicle company Mahindra & Mahindra (M&M) made the most of new launches.


While its sales dropped to 17,320 vehicles in January this year from 20,884 vehicles in the same month last year, the decline was cushioned by the performance of recently launched multi-activity vehicle Xylo.


With sales of 1,788 vehicles within two weeks and bookings crossing the 4000-mark, M&M is ramping up its production. Including exports, M&M sold 17611 vehicles in January, down from 22309 units in the same month last year.


South Korean carmaker Hyundai Motor India reported a 13.5% decline in domestic sales to 21,016 vehicles in January, against 24,301 vehicles for the same month last year. But its exports were up 21% to 16,200 vehicles, against 13,399 units in the year-ago period.
Tata Motors continued its negative run, with its passenger vehicle portfolio declining by 9% to 18,331 vehicles in January from 20,119 vehicles sold in January last year. However, on a month-on-month sequential basis, the sales increased 68% in January. 

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Apr
16
2009
News & Events

IFC to part-finance Volkswagen India project in Maharashtra

The Financial Express (Print Edition)
The World Bank arm, International finance Corporation (IFC), has proposed a variety of options to part fund Volkswagen India Private Ltd's euro 580-million investment plan at Chakan in Pune district of Maharashtra.


The total project cost, including the construction of the fully integrated green-field car manufacturing plant with an initial capacity of 110,000 units and investment in tooling for the company's suppliers, is estimated at around euro 580 million.


IFC's proposed investment comprises a loan of up to euro 60 million equivalent for IFC's own account, and a syndicated loan of up to euro 75 million.


IFC may consider an equity or quasi-equity component within the proposed euro 60 million for its own account. The company's proposal submitted on March 12 will be taken by the IFC board for its approval on April 15.


According to an IFC report, "In light of the on-going liquidity crisis and the specific challenges faced by the automotive industry, IFC's expected role in the project includes provision and mobilisation of long-term financing necessary to complete the project, which is not available under the current financial market conditions, as well as the provision of local currency financing through swap intermediation, which may not be available under the current market conditions. In addition, IFC will explore the possibility of provision of advisory services to further develop the VW AG's local supplier base."


Besides, the IFC report says the project will generate employment and provide training. The project will benefit the local population by generating significant new employment of about 2,500 direct jobs as well as around 10,000 indirect jobs through the value chain from suppliers to distributors and dealers.


The company was incorporated in 2007 and project implementation started in the same year.


The plant will be operational on March 31. The company will target the small to compact car segments of the Indian market and expects to create a cost-competitive base for large-scale market expansion, which is expected to be achieved through a high degree of localisation of the supplier base.


The company is a wholly owned subsidiary of VW AG, held directly and indirectly, though other wholly-owned subsidiary of VW AG.

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Apr
16
2009
News & Events

TATA's JLR to scout Indian companies for sourcing components

mint (Print Edition)
British auto manufacturer Jaguar Land Rover (JLR), acquired by India’s Tata Motors Ltd plans to leverage its new parentage to source parts from Indian suppliers even as it struggles to cope with a sharp slump in demand for luxury cars and sport utility vehicles.
Tata Motors will share its vendor list with the loss-making British firm, executives of which will likely meet some of these suppliers over the next month, a person close to the development said, speaking on condition of anonymity.


A JLR team is expected to visit factories of suppliers over the next few weeks to initially conduct audits of the quality and production systems and processes. "Since the company is likely to eventually want to even develop a few components from India, given its reputation as a high quality, low-price destination for auto components, the JLR team will also inspect the vendors’ engineering and product development capabilities," this person added.


"Jaguar Land Rover is a subsidiary of Tata Motors. Should Jaguar Land Rover seek to expand its sourcing base from India, Tata Motors would provide it with necessary support," said Debasis Ray, head, corporate communications, Tata Motors, in an email. He added that JLR "has been historically sourcing some components from India."


As is the case with all global manufacturers, Jaguar Land Rover sources product from all over the world, including India, and are in constant discussion with all of those supplier partners. This process continues.


JLR’s move to source parts from India is an expected one. In an analyst presentation in June 2008, soon after the acquisition had been finalized for $2.3 billion, Tata Motors had listed long-term benefits from component sourcing and low-cost engineering and design services as one of the reasons for acquiring JLR.


Meanwhile, Tata Motors continues to try and raise funds to refinance the $2 billion portion of the bridge loan it took to fund the acquisition and which comes due 2 June. A 5 March report from Kotak Institutional Equities said "Tata Motors and Jaguar Land Rover have enough borrowing capacity to refinance most of its bridge loan."
    

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Apr
16
2009
News & Events

JLR workers keep their fingers crossed

Business Standard (Print Edition)
The Rs 2,500 crore infusion by the European Investment Bank may not be enough. The mood inside the Tata-owned Jaguar Land Rover (JLR) continues to remain somber despite the European Investment Bank (EIB) last week approving £340 million (Rs 2,500 crore) to support the company’s development of greener cars. This is understandable considering the company is constantly knocking at the doors of the UK government for money to run its business and not just for investing in cutting-edge technology.


Since the Tata Group took over the two iconic brands in March 2008 from Ford, it has reportedly pumped in several million pounds. But the company needs more. In short, the financial support from EIB will not help the car maker to manage its show and make sure 14,500 workers continue to remain employed.


Industry observers believe that saving JLR is crucial not just for these workers but also for the UK automotive industry as well as the UK government. David Bailey, Birmingham Business School professor and Chair of the Regional Studies Association, said: "JLR (at £400 million) invests half of all the R&D investments in the UK auto industry; now there is another £800 million it plans to invest in green technology. Apart from the 14,500 people in the company, 60,000 work for the suppliers. The company contributes £1.3 billion (to the government coffers) as value-added tax, national insurance and other taxes. It makes a lot of sense (to save the company)".


Despite the uncertainty that lingers, the 2,000 workers at Jaguar’s mother plant in Castle Bromwich can be seen going about their work at this 112-acre plant that dates back to World War II. This plant mass-produced the Spitfire and Avro Lancaster aircraft which contributed to the success of the allies.

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