Hot news – August 2007

*  Chennai-based Tractors and Farm Equipment (TAFE), India’s second-largest tractor manufacturer, is eyeing a big-ticket acquisition in Europe.TAFE is eyeing Yugoslavian tractor majors Industrija Masina Traktora and Industrija Motora Rakovica, one of the largest tractor makers in Serbia. TAFE is aiming at acquiring majority stake in both the firms, and could also go in for a 100% buyout, as both enjoy major marketshare in East Europe. If it goes through the deal, TAFE would have to fork out around Rs 1,000 crore. Both companies have a production capacity of around 25,000 units each.  The last acquisition by TAFE was of Delhi-based Eicher tractors in 2005 for Rs 310 crore. TAFE holds around 23% marketshare in the domestic tractor market.

* Maruti Suzuki has announced a special offer to increase its sales and to counter impact of high interest on sales. The offer named “Smile India Smile” offer, which runs from Aug 1-15, offers discounts ranging from 7,000-30,000 rupees on several models, including its best-selling Alto and the Esteem sedan.

* Tata Motors is setting up the largest fully-built bus plant in the world, which will make it one of the leading global bus manufacturers. Tata Motors has identified Karnataka and Goa as possible locations for the proposed facility, but is yet to finalise the location. The proposed plant is likely to come up in 2008. Tata is chasing a sales target of 50,000-60,000 passenger carriers in the next few years to emerge the largest player in terms of units, ahead of leading bus manufacturers like DailmerChrysler and Volvo

* NDTV profit reported Tata and Mahindra may enter a swap deal under which Mahindra which has been on a buying spree for scaling up his auto components business is believed to have turned his attention to Tata group’s auto components arm, Tata Auto Component Systems or TACO. It is learned that Mahindras are said to be in negotiations with the Tata group’s top brass to take control of TACO. Mahindra & Mahindra’s (M&M) auto component business is pegged at close to Rs 3,000 crore and TACO with revenues of close to Rs 2,800 crore will almost double M&M’s ancillary business.

The interesting twist in the deal is Tatas could take charge of the Mahindra group’s IT flagship Tech Mahindra in lieu of giving up control over the auto components company. While Anand Mahindra denies any plans to let go of Tech Mahindra, merchant banking sources claim that the negotiations are currently on over valuations and the deal could be routed through Tata Consultancy Services (TCS). Tech Mahindra has a market cap of around Rs 16,000 crore with M&M’s stake valued at over Rs 6,000 crore. Valuation of the closely held TACO, on the other hand, is pegged at around Rs 3,000 crore, if a deal finally materialises, Tatas will pay up for the difference. For More

* Mahindra is planing to invest around Rs 60 crore to set up six ‘FirstChoice’ stores, the company’s first multi-brand used car superstores, in the next 15-18 months. FirstChoice is a three-way joint venture between Mahindra Group, HDFC and Sah and Sanghi. Mahindra group will hold a 75 per cent stake in the venture. Mahindra’s existing used car subsidiary Automartindia Ltd has been renamed ‘FirstChoice’ and Mahindra palns to expand this new initiative to more than 200 stores in next 2-3 years. Maruti similar intitative “true value intitiative” sells around 75000 cars a year and Tata motors is also planning to enter this robust used car market.

* TVS Motor Company has decided to launch 11 new models by April 2008. The new product line includes motorcycles in both the entry level and the high-volume executive segment, a scooterette and an electric scooter, besides two-stroke and four-stroke three-wheelers. Of the 11 new products TVS announced seven two wheelers, a two-stroke and four-stroke three-wheelers is for the Indian market and two for Indonesia. With the proposed launch of 11 products, TVS wishes to flex its muscles as it said “The investments we made in quality and technology will be put on actual display from now on”.

* Founders of truck maker Eicher Motors Ltd are exploring selling their majority holding to a global commercial vehicle maker. Though international truck makers Daimler and Hyundai Motor were eyeing a stake in Eicher, Daimler which already holds a 3.56 per cent indirect stake in the company, is tipped to be the front runner. The very important isssue is Royal Enfield India’s only cult bike maker is a subsidiary of Eicher. Is Royal Enfield will change hands? we have to wait!

Revai – Reva’s new electric car

Reva Electric Car Company has launched an advanced version of its electric car, Reva-I which uses AC drive train to give better speed, range and acceleration.The technologically advanced car is also equipped with a `boost’ mode for short-term acceleration and power. Revai also has a “hill restraint” feature which allows enhanced negotiation on slopes. Revai costs Rs 3.49 lakh. As an eco-friendly and economical car, it offers ease of driving without clutch and gears. Its small size makes parking hassle-free and manoeuvrable for safe driving on city roads. Revai – the new model can drive at 80 km per hour as compared to 65 km per hour by its earlier models, with acceleration from 0-40 km in seven seconds as against 10 seconds earlier. The capacity of its torque has been increased by 40 percent for quicker acceleration, climbing and negotiating slopes. With trip odometer and automatic computer controlled indicator for power consumption and regeneration and electronic control panels, Revai will have more battery life to cover about 200 km without recharging as against 80-100 km by its earlier models.

Reva has so far sold around 2,000 units of Reva, of which 70 per cent have been exported. Over 1,000 units of Reva car have been sold in the UK market. Reva said part of the $20 million funding it received from Global Environment Fund (GEF) and Draper Fisher Jurveston (DFJ) would be utilised for increasing the capacity of the plant. Reva has a production capacity of 6,000 vehicles a year, which would be expanded to manufacture 30,000 vehicles. During 2006, Reva sold around 600 cars and with the launch of the new model RevaI, it plans to sell about 3,000 cars this year. Reva is foraying into Norway and Spain to spread our footprints in the European markets. Set up as a joint venture with the US-based AEV LLC in 1994, Reva has 10 patents to its credit in the manufacture of eco-friendly and cost-effective electric cars. Its plant on the city’s outskirts has an installed capacity of 6,000 units per annum.

source: Reva India

Mitsubishi’s cedia select LPG

Hindustan Motors (HM) – Mitsubishi has launched a factory fitted dual fuel Cedia under the name’cedia select’. Cedia Select incorporates ‘Sequent’ type technology for effective performance on LPG. This technology from BRC Italy uses32 bit microprocessor that synchronizes on real time with engine ECU. The controls are precise and automatic, delivering great performance, be it on petrol or on auto LPG. The driver enjoys the performance while the microprocessor & ECU take care of fuel efficiency. With a “full tank”, 50 Lt petrol and 48-63 litreLPG, the Cedia Select is capable of cruising well over 1000km at a stretch! This Cedia variant, with all premium features (air bags, ABS with EBD, MP3 CD player, wood and titanium finish, chrome door handles, windshield antennae, alloy wheels) ,is priced at Rs 8.60 lakh (ex showroom Delhi). Cedia Select is the first amongst premium cars to offer a dual fuel product that is environment friendly on both fuels. Over the next few days , Cedia Selcect – with the factory fitted Dual Fuel Option- will become available for test drive at all major dealerships all across the country.According to the Mitsubishi, the dual fuel model will be just as powerful and fuel efficient on both petrol & LPG and is emission happy to boot. Advanced microprocessor controlled technology makes it possible for the Cedia Select to deliver good fuel efficiency on two different fuels without any compromise on performance. Mitsubishi says that the cedia select will offer a fuel economy/mileage of Rs 3/ km in city driving on ALPG. The fuel economy on highways will be even better. According to Hindustan Motors’ MD R Santhanam: “The new duel fuel Cedia variant is targeted at the premium car buyers, who seek both the driving pleasure and operating economy at the same time and are also environment conscious.”

source: Hindustan motors

Tata’s Jaguar acquisition and Ferrari ride

in depth analysis on TATA acquistion of Ford’s Jaguar and Land Rover

Tata group which is responsible for India’s biggest foreign takeover, by acquiring the British steel company Corus through his Tata Steel business for £6.7bn earlier this year, is now reckoning for another big acquisition, this time for its automotive division. Tata Motors is in the early stages of evaluating a bid for the Jaguar and Land Rover reported British daily The Telegraph.. Ratan Tata is understood to have instructed advisers in the past fortnight to begin evaluating the merits of a joint offer for Jaguar and Land Rover, which have been earmarked for disposal by struggling American car giant Ford. People close to the situation last night said that Tata Motors’ evaluation of a bid was at an “exploratory” stage and may not lead to a formal bid for the two brands. One person familiar with the position said that Tata Motors had signed a confidentiality agreement with Ford in recent days. .Besides Tata, other car makers from middle east and eastern car manufacturers may be interested in bidding, while a formal auction would also be likely to attract private equity firms such as Apollo, Blackstone and Cerberus ( theUS buyout firm which acquired Chrysler earlier this year for $7.5bn).

Price of the luxury brands:

Analyst believe anything between $2.5bn to $3bn for jaguar and Land Rover. Here is their words

A Meryll Lynch analysts suggest that Jaguar and Land Rover may fetch about $1.5bn (£735m). Earlier a private equity firm called Alchemy Partners was said to be lining up a £3bn offer for the two luxury brands. “If you look at the financial position, [Jaguar and Land Rover] are worth some $1bn to $1.5bn,” Mr Dorris an analyst said. “Add a control premium, and the final sales price could come in at about $2.5bn.”

Ford bought Jaguar for £1.6bn in 1989 and it is believed that Ford have invested about $10bn in Jaguar since it bought, Ford bought the Land Rover from BMW for £1.7bn in 2000.

What may hamper Tata’s?

  • Union leaders of both Jaguar and Land Rover have already raised concerns about their job security because of the sale.
  • Jaguar’s sales were down nearly 32 percent for 2006 in the United States, the company’s largest market.
  • Jaguar lost more than $715 million last year and is expected to lose $550 million in 2007. According to the analysis, Jaguar is projected to lose more than $300 million in 2008 and is not expecting a profit for several years. These losses are mainly because of extremely high manufacturing costs in Britain and Ford has not earn a profit from jaguar since it bought.
  • Land Rover sold a record 192,500 vehicles in 2006 and is said to be profitable. Unlike the jaguar, Land Rover is a much stronger and more profitable business but Tata’s has to buy both the units since the products and manufacturing of vehicles for Land Rover and Jaguar is so intertwined..
  • The worried jaguar ‘s workers, they told “if the two companies are sold together, then there was no guarantee “that a new owner would not shut down most of Jag’s manufacturing capacity”.

Official Words from Tata and Ford…

A spokesman for Tata Motors said the group did “not comment on speculation about mergers and acquisitions”. Though Ford denied it, Ford had told that it was still some way from doing a deal, it also added hat it had been looking at its options for a year, and that it was neither setting a timeframe for any decision, nor ruling out any options.

is Mahindra in the race?

Mahindra & Mahindra (M&M) might also show interest in these brand. 

M&M which wants to be global SUV maker should have an interest, at least, in Land Rover, says the brand is attractive. Even so, it will not help Mahindra become an independent global sports utility vehicle, or SUV, brand. Moreover, Land Rover, which is about six times as big as M&M, might simply be unaffordable.  

I do not know what is on offer, whether it is the whole brand, or some products or what plants are being offered. I cannot say if it is a strategic fit or not. Mahindra is a SUV brand and Land Rover is an SUV brand. So, the two brands have something where synergy is possible. But having said that, its a big company,” said Pawan Goenka, President-Automotive Sector, Mahindra & Mahindra.

European car manufacturers Renault and Fiat have recently ruled out of the possibility of bidding for Jaguar and Land Rover.Ford – the struggling auto giant:

Ford which has become struggling automaker in recent years posted a full-year 2006 net loss of $12.7 billion, the largest single-year loss in the company’s history. Also Ford lost its No. 2 ranking worldwide to Japan’s Toyota. Ford Chief Executive Officer Alan Mulally, who took over the top post in September 2006 from Bill Ford has been restructuring Ford to counter losses. As a part of restructuring Ford has been selling assets in a bid to offset falling sales and profits. Premier Group, which includes Aston Martin, Volvo,Land Rover and Jaguar is the main cause for Ford continuing losses. Earlier this year Ford sold its UK based sports car division Aston Martin(popularly known as james bond car) for $848 million to investors led by U.K. auto-racing champion David Richards. Many believed that Ford was in talks with Germany’s BMW to divest the Volvo brand but Ford denied any such sale of Volvo. Ford reported a loss of $282m for the first three months of 2007.

Tata’s Ferrari ride:

Soon we can see the Ferraris cruising in India roads, as an extension of the existing Tata-Fiat(parent company of Ferrari) partnership, Fiat is planning to drive Ferrari into India and its navigator will be the Tata Motors. The world’s favourite sports car – Ferrari will zoom into India’s exclusive sports car market currently dominated by porsche. The two new Ferraris to be launched in India would be a 612 Grand Tourer, a big four seater and F430, an absolute sports car which is performance oriented. Tata Motors will market and set up engineering centers as a post sale services for these cars.

After some bad experiences in China and Russia, Ferrari did not want to take chances by going it alone. With Tatas in fold, the Italian major is expecting a solid infrastructure back up in India. Ferrari and Tata are natural partners because Ferrari already gets lot of its software done from TCS.

source: NDTV profit

Tata’s to setup production base in Thailand:

Tata Motors, India’s top commercial vehicle maker, will invest 1.3 billion baht (38 million dollars) to launch its first production base in Thailand, the Thai Board of Investment said on July 18th. Tata Motors plans to roll out one-tonne pick-up trucks by the end of this year with initial output capacity of 7,000 units per year, the state-run investment promotion agency said. Tata Motors aims to boost annual production capacity to 30,000-35,000 units over the next five years, with 80 percent of light pick-up trucks to be sold in Thailand and the rest for export, the agency said.

Ford’s small car for India

Ford officials have given some hint about their small car entry in india

When asked about Ford India’s small car plan

`It’s(small car) a segment we can’t ignore,” said McCormack – Ford india’s vice president for marketing and sales. “At some point we’ve got to be in that segment.”he added

When asked about Tata’s 1 lakh car plan

“We are always focused on what our consumers want… if our consumer comes back and says here are the trade-offs, I am willing to make ($3,000 car) and this is what I will accept and live with,” Ford India managing director and president Arvind Mathew said.

It’s Ford KA or Mazda2  for India

Unusually very tight lipped ford officials have given few indications on Ford small car entry in india. With this hint, Ford is joining with Honda,Toyota,Volkswagen in planning to sell small cars in India. It is believed that Ford will either use the existing Ikon or Fiesta platforms for a hatchback or it will tweak the new KA that Ford is developing jointly with Fiat in Europe. The new KA is expected to roll out in Europe next year. Fiat has already formally launched its euro small car Fiat 500 which is on the same platform as the new KA. But now many believe Ford may opt for Mazda2 which was formally previewed at the Geneva motor show earlier this year. The Mazda 2, when it debuted, got more wows than the fit/Jazz(Honda’s proposed small car for india). Also The Mazda2 can be a fairly decent India option and may even be cheaper to develop in India compared to the new KA. Ford already has both petrol and diesel engines that can be tweaked to enable the hatch to qualify for excise benefits. There’s a 1.4 litre duratorq (CRDi) diesel engine in the Fiesta and a1.3 litre petrol in the Ikon. Both may be likely probable if Ford decides to build an India-specific car on an existing platform. KA or Mazda2 whatever Ford opts for india surely it will have more impact on other manufacturers proposed small car.
source: bloomberg,livemint,overdrive and economictimes

Ford’s Fusion Diesel

Take the no-nonsense Ford Fusion, add a Fiesta’s 1.4L Duratorq Diesel engine, Fusion diesel is ready. Ford India on july 17th introduced its multi-utility vehicle Fusion with a diesel engine in a single variant that has been priced at Rs 6.59 lakh ex showroom Delhi. Ford launched its petrol fusion in 2005 and diesel for the Fusion is anticipated for a long time, as fiesta diesel is a grand success for Ford. The petrol fusion is little bit underpowered also the no-nonsense fusion has been criticized for its poor fuel efficiency. Ford tries to check both the shortcomings through the diesel fusion. Fiesta – ford india’s flagship product lure customers through its performance and its fuel efficiency(70% of Ford Fiesta’s sales is in the diesel category).

New Engine and reduced length:

Fusion is now powered by the 1.4 L Duratorq(Ford’s CRDi) diesel engine with Ford’s proprietary TDCi technology for great refinement and fuel efficiency. Fusion duratorq engine develops 160 Nm torque at 2000 rpm and generates a maximum power of 68PS at 4000rpm. Fiesta diesel which is powered by this engine delivers an excellent fuel efficiency/mileage figure of 16kpl in city and highway combined drive. Ford says “the fuel economy in the new diesel Fusion will be as same as in Fiesta”. But before accepting Ford’s word we have to note that fusion weighs 30kg more than fiesta sedan. Ford has also trimmed the fusion to 3989mm to avail the small car tax benefit but thankfully ford has retained all other dimensions including fusion’s 198mm ground clearance.

Nothing else about the car has been changed.

Bajaj’s new car and ducati acquisition

Bajaj’s Ducati or Bajaj Triumph:

Bajaj Auto ltd is looking for a big-ticket acquisition in the European motorcycle market to increase its product line-up of high-end bikes. Bajaj is targeting two cult bike companies, Italy-based Ducati Motor Holding SpA and Triumph Motorcycles Ltd of the UK. Bajaj Auto has been looking for an appropriate acquisition or an alliance to boost its engineering and product development to expand a product range currently limited to 220cc. A big-ticket European brand like Ducati or Triumph will not only give Bajaj products in the premium lifestyle range in India but also a vehicle to drive export growth in the developed markets. Bajaj Auto has been getting increasingly aggressive with its bike retail channel Probiking and Bajaj has been saying that it will crank out more products to stock its Probiking shelves. Bajaj’s reported talks earlier with Japanese major Yamaha were also focused on technology-sharing and expertise for bigger bikes while offering engineering and manufacturing expertise for smaller motorcycles. Japanese bike maker Yamaha had first initiated talks with Bajaj in November last year. Yamaha’s global team led by Yamaha Japan president Takashi Kajikawa had visited Bajaj’s facilities and had talks with the companies. The two bike majors might join hands for making co-badged bikes for the higher segments both for the domestic and export markets. Bajaj is also considering entering the segment under its existing collaboration with Kawasaki. 

Ducati is a 95.4 mln euro company and all its products are in the 700cc-plus range with the brand having a formidable reputation in the MotoGP series. Triumph is a 165.0 mln stg ($336 million) company and has cruisers, urban sports bikes and other lifestyle products in its range including apparel and accessories. 

Bajaj – Renault $3000 car:

The Tata Rs 1 lakh car project has triggered off a lot of excitement both among local auto majors as well as global biggies. Carlos Ghoshn is very keen on building a rival to proposed Tata’s 1 lakh car. Last month, he announced that the Nissan-Renault combine would develop a $3000 car using India’s “frugal engineering expertise”. If produced the car will be the Renault’s big pitch for global volumes after the Logan. But contrary to Renault – Nissan its Indian partner M&M is not interested in the $3000 car project as its long-term strategy is to be a global player in the SUV market. Hence Renault – Nissan has to find an Indian partner for its planned small car. Bajaj Auto is planning superior technology and multiple options to foray into the passenger car segment. So, is that what Renault-Nissan is looking for in its partner for its budget car.

Already India’s robust two and three wheeler manufacturer Bajaj is experimenting with the concept of a small car. Bajaj is also developing a six or eight seater vehicle that could compete with Maruti’s Omni van or even the more recently launched Tata’s Ace Magic. Unlike the Ace Magic or Maruti Omni, Bajaj is planning to offer both petrol and diesel engine options for its new vehicle. Interestingly, this month Bajaj created five strategic units including engineering and R&D. All these may make these two giants to produce the low cost car which will rival Tata’s 1 lakh car.

Bajaj auto Q1 results

Bajaj auto tumbles: 

Bajaj Auto sales for the first quarter ended June 2007 were down 4.2 per cent at Rs 2,109 crore as against Rs 2,203 crore and its net profit was down 15 per cent at Rs 226 crore versus Rs 266 crore (YoY). Bajaj’s auto total income dropped from Rs 2,297.22 crore for the quarter ended June 30, 2006 to Rs 2,211.80 crore for the quarter ended June 30, 2007.On consolidated basis, the group posted profit of Rs 201.15 crore for the quarter ended June 30, 2007 compared with Rs 255.77 crore for the same quarter last year. Net sales decreased to Rs 2,206.43 crore from Rs2294.28 crore year ago. During the quarter, motorycle sales declined by 13 per cent at 4,94,042 units as against 5,68,187 units a year ago. Bajaj Auto had initiated major structural changes in its distribution and logistics channel during this quarter. The channel change resulted in reduction of inventory at dealerships by around 45,000 motorcycles. Surprisingly, Bajaj auto’s share rose by closes Rs2194 up by 3%(Rs66). The reason for the rise of the Bajaj’s auto share despite the poor earnings are since the stock has already bottomed out very little room for further correction (the stock has fallen 18 per cent this year compared with a 9 per cent gain for the benchmark Sensex index) and its guidance is good. ” The company anticipates improvement in its market share and profitability in the second half,” Bajaj said in a statement.

Bajaj Auto exports:

Exports of motorcycles during the first quarter zoomed 62% to 1,14,551 units from 70,771 units. Bajaj is the largest exporter of motorcycles in the country with a market share of 63.55%. Domestic sales of motorcycles for the three months stood at 3,79,491 units – down 23.70% from 4,97,416 units sold in Q1FY07. The company is  increasing its exports to Indonesia, Latin America to cut its dependence on India.

Bajaj Auto Finance:

Bajaj Auto Finance on Wednesday reported a “modest” rise of 19.47 per cent in profit after tax at Rs 4.11 crore during the first quarter of the current fiscal against Rs 3.44 crore during the same period previous year. The auto finance company’s total income grew by 55 per cent to Rs 105.90 crore against Rs 67.83 crore during the period. 

Maharashtra Scooters:

Maharashtra Scooters Ltd (MSL) the scooter maker jointly promoted by Western Maharashtra Development Corporation (WMDC) and Bajaj Auto Ltd (BAL) is exploring alternatives to revive manufacturing activity. The company has ceased production of geared scooters from April 2006 and now produces pressure die castings for vendors of Bajaj Auto. Maharashtra Scooter has been making news today after Rahul Bajaj said that Bajaj Auto will not liquidate its investment Bajaj Auto (holds 24% stake) wants to buy out Western Mah Dev Corp’s (WSDC) 27% stake. The two promoters – BAL and WMDC have differences over the valuation and the price to be offered. WMDC has earlier rejected offer made at Rs 151.56/share in Jan 2006. Its current market price is Rs 277.

Maharashtra Scooters has not being doing well for itself and had reported net loss of Rs 3.89 crore in the quarter ended March 2007 as against net profit of Rs 4.11 crore during the previous quarter ended March 2006. Sales declined 86.18% to Rs 0.89 crore in the quarter ended March 2007 as against Rs 6.44 crore during the previous quarter ended

March 2006. Looking at the balance sheet of Maharashtra Scooter, the company has an investment of Rs 802.93 crore, as on 11th July, 2007.  Maharashtra Scooters market capitalization is around Rs 317 crore. Maharashtra Scooters has outstanding equity shares of 1,14,28,568. Maharashtra Scooters investment in Bajaj Auto Finance stands at Rs 61.39 crore, Rs 721 crore in Bajaj Auto and Rs 20.54 crore in Bajaj Hindustan. Maharashtra Scooter is a zero debt company with unquoted debentures/bonds of Rs 69.34 crore. Maharashtra Scooters has a net block of Rs 11.82 crore of which buildings is worth Rs 2.67 crore and plant & machinery worth Rs 8.79 crore. However, for the first quarter of the current fiscal, MSL’s net profit was Rs 4 lakh on gross sales of Rs 75 lakh. It’s peers such as LML has already closed production and Kinetic has been reporting a negative bottomline.

Ford Fiesta Limited Edition

Ford celebrates the 50000 Fiesta cars on the road with a new limited edition. The limited edition of Fiesta is available on both petrol and diesel variants (Exi and Zxi only). Fiesta Limited Edition Prices start at Rs.6,25,499 (ex-showroom New Delhi). The Ford Fiesta Limited Edition brings an intense dose of style and comfort to the performance of the Fiesta. According to Ford, the Ford Fiesta Limited edition comes with an array of features that gives you a truly unique identity on the road. The Ford Fiesta Limited Edition gets sporty new five spoke Alloy Wheels. The limited edition Fiesta features gizmotronic Reverse Parking Sensors mounted on the rear bumper which alerts you about any obstacles behind the car while reversing. The Limited Edition adds a new dimension to the performance of the Ford Fiesta with a rear spoiler that gives the car aerodynamic stability. What’s more, it also adds that sporty look as you race by in your Ford Fiesta.

The Ford Fiesta Limited Edition comes with brand new, dynamic side graphics. These enhance the flow lines and add to the aesthetics of the car. Ford Fiesta limited edition also gets leather vinyl seats. Now you can feel the wind in your face and hear your engine roar in the fiesta since limited edition Fiesta features an electric sunroof. The Electric Sun-Moon Roof is optional and will be available at an additional cost of Rs 30,000. The launch of the limited edition Fiesta will see two brand new colours added to the Fiesta range – Brush Steel and Jeans Blue.

Hyundai’s santro CNG

CNG for santro..

Hyundai Motor India launched an alternative fuel variant of Santro on Wednesday. The dual fuel Santro will use Compressed Natural Gas (CNG) as an alternate fuel. The Santro comes with a 1.1 litre petrol engine and will be CNG compatible without any modification. Hyundai has tied up with CNG kit supplier Minda Auto Gas Ltd to supply the CNG kits. The advanced kit with Lambda control system ensures that it meets Euro III emission norms. Also, Hyundai has an arrangement fitment specialist NGVI of Korea to retro fit the kits on the Santro model. Initially, the CNG Santro will be available in Delhi and all Hyundai dealers in collaboration are equipped to sell and service the CNG Santro. Similar to the petrol santro the CNG Santro would also come with a 2 year, unlimited mileage warranty and Hyundai also offers an additional warranty for the same period on the CNG kit and fitment. The CNG Santro would have a manual selector switch, which would enable the driver to easily switch from gasoline to CNG and vice versa. The on-board CNG cylinder has a capacity of approximately 12 kg and the running cost on CNG for the Santro is estimated to be in the region of Rs 1/km or even less depending on the driving cycle. This leads to a savings of almost 60 – 70 per cent for the consumer. Hyundai has introduced four variants of CNG Santro — XK (non A/c), XL, XO and AT (automatic transmission).The cost of the CNG Santro (XK, non-AC) is Rs 325,361 (Rs59,631 more than petrol Santro. The CNG powered Santro will compete against Maruti’s Wagon R LPG duo, which comes at a base price of Rs 3.49 lakh. All the prices indicated here are ex-showroom Delhi.