Bajaj Auto – news update

bajaj.jpg* Hero Honda has widen the gap from Bajaj in the last six months — in stark contrast to the situation a year ago when it was at an all time low — Bajaj believes that its new platform will do the trick by getting it back in the game. Bajaj said “We are currently doing 165,000-170,000 bikes a month but we will launch a bike based on a new platform by September, which should do 50,000 units a month. This in turn will take us above 200,000 units a month. The new bike will be in the Rs 40,000 price range” . Hero Honda currently does about 230,000 units a month

* Bajaj stormed the Hero Honda by opening up a probiking showroom right next to Hero Honda’s corporate office. Delhi’s high profile Basant Lok area which is well known for Hero Honda’s corporate office where Bajaj opened it exclusive probiking showroom. The area which till yesterday was resplendent with Karizma and CBZ Xtreme posters all around will now get bajaj’s pulsar posters.

* On June 25 Bajaj revealed some information about its small car – Bajaj said it is experimenting with the concept of a small car but said it will not be a cheap car. Bajaj categorically ruled out its concept car being a competitor to the Tata’s Rs 1 lakh car saying: “We are striving to be a good two-wheeler manufacturer and we have no intention of getting into something which we are not capable of… that is manufacturing of cars”. He said the company’s concept small car would be a distinctive product and “it will be more like a Pulsar on four-wheels”. Bajaj small car will be a high technology car being, developed through in-house research and development and seeks to redefine small cars, bajaj added.

* Bajaj said the company was working on the commercial launch of a four-wheel goods carrier by 2009. Bajaj has earmarked Rs 750 crore for a four-wheeler production plant to manufacture 40,000 to 50,000 vehicles annually.The engine, transmission and platform that Bajaj build will be used for its passenger car. Bajaj’s concept car will be showcased in January 2008 at the annual Auto Expo and Bajaj will take three years to go in for commercial production. Bajaj plans to price its first car between Rs 2 lakh and Rs 5 lakh.

bajaj-pulsar-220cc.jpg* Bajaj Auto introduced its 220 cc motorcycle Pulsar DTS Fi model priced at Rs 81,280 (ex-showroom Delhi) and also opened its first ‘probiking’ showroom in Delhi. The dispatches of pulsar 220cc DTSi-FI have already started for all-India launch of the bike, after it was initially test marketed in Pune earlier this year.

* As global bike-makers will be seen competing in the niche 800cc and above segment. (Yamaha India on its own has plans to launch its MT01 and 998 cc YZF-R1. Honda Motorcycle & Scooter India is looking at importing models like CBR 1000 and GLX 1800. Suzuki Motorcycle & Scooter India might vroom in the 749-cc GSX-R750) Bajaj Auto is also looking at foraying in the big bike segment with an overseas partner. Bajaj Auto (BAL) MD Rajiv Bajaj told “Certainly, we wish to participate in the 800 cc and above segment. We are in talks with Yamaha. We are looking at other overseas partners but I can’t reveal my plans yet.” Bajaj is already in talks with Yamaha for a possible tie-up in this category. 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.

* Bajaj had exported 4.24 lakh units in 2006-07, which translated into revenues of Rs 1,700 crore. Bajaj expects to export six lakh units this fiscal, which should add about Rs 2,500 crore to its topline.

* Bajaj is also reworking its ‘Hamara Bajaj’ advertising campaign. It will soon unveil a new commercial with the tag line, “Alag andaaz, alag hai khoj, rakhe aage, hamari soch” that loosely translates as: “A different style, a different search will keep us ahead”.

Hot news on Yamaha’s and Suzuki’s 150cc bike

Yamaha’s new bike:

In yet another bid to capture market share in India’s two-wheeler market, Japanese bike maker Yamaha Motorcycles India Ltd plans to launch a 150cc motorcycle by mid-2008 after showcasing in the next Auto Expo to be held in Delhi in January next year. The proposed bike would use the four-valve engine of the company’s Viper range and resemble the Yamaha R1. Yamaha already plans to launch two superbikes — YZF-R1 (1000 cc and MT-01 (1670 cc) in 2007

Yamaha’s 150cc bike would offer about 14 bhp and would take Bajaj Auto’s flagship Pulsar and Hero Honda’s CBZ X-treme and Karizma head-on. The performance segment comprising Hero Honda Karizma, Bajaj Avenger and the Pulsar 200 is about 1 lakh units per annum. 150cc products available in the market are priced around Rs60000. Yamaha is likely to price the upcoming bike around Rs 80,000-90,000 to give it a distinct identity.

Yamaha’s word on 150cc bike:

“We are still giving final touches to the specifications such as styling and engine and hence feel that it would be premature to comment on the same at this point of time,” said a Yamaha India official. “In accordance with Yamaha’s image and expectations of customers, the company is planning to launch the new products for niche markets,” he added.

Yamaha India has constantly been losing sales on a monthly basis, registering a decline of 59.4% in May this year. During May, the company sold 13,649 bikes. During April-May, the company’s total sales plunged by 55.77% to 26,962 units. Also, In a dealer satisfaction survey carried by TNS in the end-2006, Yamaha ranked second from the bottom, next to Kinetic.

Kinetic – SYM:

The kinetic – SYM 125cc scooter may hit the showroom by the end of July and is expected to be priced around Rs45000. Kinetic seems to retain the SYM’s characteristic lifetime warranty.

Hero Honda:

Hero Honda will launch a new passion variant which will feature alloy wheels and new body graphics soon.


Suzuki to launch its 125cc scooter in September 2007 and Suzuki also plans to roll out a 150cc bike. Suzuki’s 150cc bike will hit the roads in the first quarter of 2008.

Ford’s new Endeavour hits the indian road

Ford’s powerful endeavour:

Though Ford India is reevaluating its growth projection based on sales figures in June and July, Ford India does not seem to be scared of slumping sales figure. Ford India has launched a much powerful Endeavour in three versions. Ford has priced its new Endeavour 4×4 wheel drive at Rs 15.62 lakh (ex-showroom Delhi), the  new Endeavour 4×2 wheel drive at Rs 14.72 (ex-showroom Delhi) and its limited edition new Endeavour 4×2 wheel drive at Rs 15.5 lakh (ex-showroom Delhi). Even though the premium SUV segment has been stagnant for some time, Ford expects the segment to grow by about 15-16%. Ford India witnessed a dip in sales to 5,660 units in April-May compared to 5,954 units in the same period last year. 70% of Ford’s sales are coming from the diesel variant of its popular sedan Fiesta. The existing Endeavour, which was launched in 2003, has recorded sales of about 7,000 units and enjoys 38 per cent market share in the premium SUVs segment. The new Endeavour has 30 per cent localisation content and the company is evaluating options to make it more competitive. Ford also plans to launch the diesel version of the Fusion by the third quarter of 2007. Click here to vie our detailed preview on new endeavour

Mahindra’s Scorpio Getaway

New Scorpio Getaway:

Mahindra and Mahindra launched its global lifestyle SUV Scorpio Getaway in India on June 21. Scorpio Getaway is slotted in the pick-up segment or the lifestyle SUV segment and Mahindra knows this segment is at nascent stage in India, it wants to be the leader in this niche segment. The Getaway is a new category creating offering from the Scorpio stable. The new lifestyle product is based on the Scorpio platform and sports a grand deck that can carry various equipment & gear as per your lifestyle needs. It exudes ruggedness and style and is an extension of the go-getting persona of young Indians who do not shy of flaunting their success & lifestyle. Scorpio Getaway was launched in South Africa a few months ago and mahindra has sold about 200 units of scorpio getaway. Mahindra recently introduced the scorpio getaway in Australia and it plans to launch it in the US in 2009.

scorpio-pick-up.jpg“The new Scorpio Getaway packs the DNA of the Scorpio into a lifestyle SUV. This vehicle complements the lifestyle of a growing breed of young adventurous Indians who work hard and play hard. They refuse to compromise on luxury and style, requiring a vehicle that can take them and their gear around in comfort as per their lifestyle needs.” said Rajesh Jejurikar, executive vice presudent, sales and marketing, while launching the new vehicle.


Mahindra has launched a range of premium lifestyle accessories branded “S – Nothing else will do” Mahindra claimed that it is the first Indian brand in the four-wheeler segment to enter this space. The merchandise range that Mahindra promises to create a style statement for its owners includes branded polo neck and round neck T-shirts, coffee tumblers, stylised key chains, caps, and miniature Scorpio model toy cars. Soon ” S – Nothing else will do ” would introduce a whole gamut of accessories


The Scorpio Getaway is available in 2WD and 4WD options and comes in 4 attractive colours. It pumps its power from its 2600cc common-rail diesel engine (CRDe). The Scorpio Getaway is priced at Rs 6.99 lakh for the two-wheel drive and Rs 7.99 lakh for the four-wheel drive at ex-showroom in Mumbai.

Tata Motors stock news

Tata Motors is expected to borrow $450 million from foreign markets to fund its plans in the fast-growing automobile segments in India, including its proposed small car. Tata Motors has not specified the instruments it would use to raise $450 million overseas, it has said the funds would be for capital and product development expenditures, especially in the commercial vehicle and passenger car business units. Tata Motors has said it is scheduled to expand capacity of almost all its products at its unit at Uttaranchal. The passenger car capacity will be raised to 3,00,000 units by March 2008, from the current 2,25,000 units. In medium and heavy trucks, Tata Motors will increase capacity by about 1,00,000 vehicles between Jamshedpur and Lucknow. In light of commercial vehicles and in utility vehicle segments, the capacity will be raised to 90,000 units from the present 60,000 units. Recently tata motors have rolled out two commercial vehicles – passenger version of ace called Magic and winger maxi van. Tata Motors have invested about Rs. 150-200 crore for each of these product lines. 

Earlier on June 19th Tata Motors has seek shareholder approval to raise borrowing limit by about 60% to Rs12000 crore, as India’s largest commercial vehicle manufacturer gears up to increase spending in new market segments, including the much-talked about small car, to boost slowing sales.

Tata’s magic and winger

tata-magic.jpgTata Motors on June 18th has launched two new products – the Magic and the Winger. The magic is the passenger variant developed on the platform of India’s first mini truck ‘ace’, Tata claims the new Winger range is the india’s first maxi-van which will offer a perfect blend of the comfort of a car with the spaciousness of a bus for intra-city and long-distance transportation needs. Tata motors says “the two vehicles will create new segments, and in a complementary manner help cover the entire spectrum of customer needs in mass transportation from the very rural interiors to cities as well as the top-end luxury mass transportation segment.”

Tata’s magic:

magic1.jpgWith an ergonomically designed all-steel cabin, Magic has a flexible seating capacity of 4 to 7 passengers, in pleasant and spacious interiors including comfortable seats and ample legroom for an enjoyable ride for the passengers. Powered by a 16 HP 700 cc water-cooled diesel engine, it will provide the Magic owner with high fuel efficiency and very low maintenance. The 12” tyres provide higher ground clearance, and the rigid front axle can weather tough road conditions. The turning radius of 4.3 metres is agile enough to navigate narrow bylanes and dense traffic. For the driver’s benefit, the Magic has a clearly visible instrument cluster, utility tray and a digital clock in the dashboard and also a radio fitment provision. The Magic meets BS-III emission norms and has been developed for use in any market — be it urban, semi-urban or rural. It is backed by a 36000 km/12-month warranty. The Magic range is at Rs.2.60 lakhs (ex-showroom Pune). Tata’s magic will compete with maruti’s omni.

Tata’s winger:


winger.jpgThe Winger seats 9 to13 passengers, with generous saloon space, spacious head and legroom and wide luggage space. Passenger comfort has been further enhanced with all front-facing seats, each with magazine pockets, bottle holders, spot lamps and grab handles, besides a music system. The fully enclosed body, uniquely placed fuel tank, seat belt for every seat, child lock, fog lamps and a demister (compartment ventilation fan) provide complete safety. The robust and rugged suspension ensures both ride comfort and load carrying capacity, while the monocoque design minimises NVH. The Winger is powered by a 2-litre turbo charged diesel engine. The Winger’s versatility allows it to be deployed for both long-distance transportation across different terrains in all weathers and also intra-city needs and adaptation for staff vehicles, hotel and airport transfers, tourist usage, ambulance, and school van among others. The Winger has 11 variants, in three levels of comfort — standard, deluxe and luxury — meeting BS-III emission norms and backed with a 1.5 lakh km/18-month warranty. The Winger range starts at Rs.4.70 lakhs (ex-showroom Pune). Tata’s Winger will take on the Tempo Traveller of Force motors.

Both the Magic and the Winger are being launched nation-wide, starting with Maharashtra and Gujarat, and will be extended to other parts of the country in due course.

photos: magic rear view/magic front/winger front

source:Tata Motors

update: The magic and winger will be delivered through Tata Motors commercial vehicle dealers although in areas where there is no commercial vehicle dealer, Tata will sell its magic and winger through passenger car dealerships.

Honda’s India plan

Motorcycle Industry is facing a downtrend in sales this year due to higher lending rates. Motorcycle makers are rationalising their production to face this down trend.Japanese major Honda has put off its plans to build a second plant, announced a few months ago, because it doesn’t anticipate to sell enough from the unit to warrant a new factory. But Honda will spend Rs100 crore on upgrading its factory and introduce two new products next year, in addition to a previously announced Rs300 crore expansion plan, as it seeks to improve market share. Honda currently holds 11% market share with products such as 150c unicorn, 125cc shine, eterno and dio scooters.

* Honda is planning a new scooter, 125cc motorcycle and a niche 100cc bike. Honda says it will shortly come up with another bike in the 125cc segment. “We already have a 125cc bike Shine but the product is not meeting younger people’s demands,” Honda says.

* Regarding the 100cc bike Honda is not expecting too much volumes from this bike and it only expects the new bike to target a niche audience such as off-road bikes. Honda’s new 100 cc model could be positioned slightly higher than the existing ones in the market and sport a premium price tag.

* The new scooter model will be on the same platform as the Honda’s flagship model — Honda Activa and will be rolled out by the end of this fiscal.

* Honda is currently conducting a feasibility study regarding the higher engine capacity bikes and might introduce our global brands — CBR 1000 and Gold Wing — into the Indian market soon with a price tag of Rs 10 lakh

Yamaha’s YZF R1 and MT 01 in india

powerful bikes soon in india..

Bike majors like Yamaha, Honda and Suzuki are all looking at some big muscle models for India. After the latest notification by the commerce ministry simplified importing of bikes in the 800 cc-plus category, MNC motorcycle companies are looking at imported big bikes by 2008. The government’s decision to allow the import of motorcycles above 800cc is the result of an agreement between India and the US whereby the US eased norms for the import of Indian mangoes and India-harmonised emission norms on bikes above 800cc with Euro 3 standard, paving way for the import of high-end motorcycles like the Harley-Davidson. Whether it benefits Harley or not, the three japans majors – Yamaha, Honda and Suzuki certainly will be the beneficiary. Yamaha has been charting plans for India and might use this opportunity to build its brand. Here’s the Yamaha plan!

YXF-R1 and MT-01:




yamaha_india_yzf-r1.jpg yamaha_india_mt-01.jpg





Yamaha Motor India (YMI) has decided to launch the 1000cc YZF-R1 and the 1670cc MT-01 in India by the end of this year. The company will import these ‘super bikes’ making it among first bike makers in the country to take advantage of the government’s recent announcement to allow the import of motorbikes over 800cc.

The R1 has already been homologated and approved by the Automotive Research Association of India (ARAI), and sales expected to commence once the company receives the first lot of imports from YMI’s parent. “Yamaha’s YZF-R1 and Yamaha’s MT-01 are not meant for business but to create an image” the company said. Yamaha plans to sell few dozens of YZF R1 and MT 01 initially.

Yamaha’s new MD and his plans:

Ishikawa took the helm at Yamaha Motors India in January 2006 and soon realised it was important to give what the market expects from Yamaha. Ishikawa is the one who had turned around a sluggish Thailand operation into a profitable one in just three years. Ishikawa’s plan is to find a niche that may suit the direction he had temporarily set for the Indian operations. Market studies and surveys were initiated. ‘It is then that Yamaha started conceptualising a new product and creating a strategy for the future. By September, Yamaha India had decided on two new products.

Ishikawa also does not dismiss the option of getting the RX100 brand back in India. He said this could be part of the larger brand building strategy for YMI. ‘We are looking for that kind of a motorcycle and that could be part of our larger strategy,’ he said. Our strategy is not Hero’s and there would be no room for negotiation on that,’ he added. Ishikawa has formulated a vision that looked at altering the business strategy, way of operations and quality levels. Externally, new marketing strategies, including that for dealerships is being worked on. The Yamaha Motors India management has asked for Rs 800 crore from its parent. The company might not get the entire amount, Ishikawa said, who expects around Rs 600 crore to come by June this year.

History of Yamaha India in Ishikawa words:

Yamaha, which made its foray into India 22 years ago in 1985, along with Escorts, the Indian experience has been somewhat mixed. In its 15-year partnership with the Indian tractor maker, Yamaha had made good inroads into motobike buyer’s psyche by offering them sporty, performance driven products. The RX100 was, and continues to be an iconic brand among bikers. However, the company had to discontinue the product after the government banned production and sales of two-stroke motorcycles. Up until the RX100 days, when the government allowed two stroke bikes, Yamaha had a decent market share. As the company moved into four-strokes, it moved beyond the niche segment, a perception which seems to have stayed in the customer’s perception. Like most other motorcycle manufacturers then, Yamaha went the majority way — targeting the commuter segment and offering them products that had low initial cost and good fuel consumption. Here’s Ishikawa view on Yamaha India. ‘We went Hero Honda’s way and so did others. However, the image for Yamaha was different from that of the majority. I believe there was a gap between what Indians wanted from us and, in turn, what we gave them,’ Ishikawa said. The company got caught in the volumes game and developed products that lacked Yamaha’s genes, Ishikawa explains. Yamaha’s performance in the market place dwindled, with market share falling to 3.6 percent in 2005-06 from 8.4 percent in 2000-01, when it parted ways with Escorts to go alone in the Indian market. In its 15-year partnership with Escorts, Yamaha had sold approximately 2.5 million motorcycles.

useful links:





click here for yamaha’s YZF R1 home page

click here for Yamaha’s MT 01 home page



update 04/12/07:Now you can book YZF R1 and MT-01 through Leave your details in the contact us form(below) so that we can get back to you.



More summer for auto majors!

Monsoon may have hit our shores as expected but for the two wheeler makers it is going to be more summer. The motorcycle market’s vrooming growth has hit a roadblock, forcing top players to rationalise production and reduce dealer inventory. This is clearly evident from the market index, both BSE and NSE have rebounded and scales new highs but auto stocks continues to be in the lower end.

  • Market leader Hero Honda has reported a 6% drop in dealer despatches in May compared to the same month last year and expects June sales to be 40,000 units below May sales.
  • Arch-rival Bajaj Auto, which has been clocking negative growth in bike sales since February, saw almost 15% fall in primary sales in May.
  • Total two-wheeler sales for TVS in May fell 13 percent from a year earlier to 108,151 units, with motorcycle sales falling 37 percent from a year earlier to 49,651 units.

The reason for the downfall is because of high interest rates and high inflation. Interest rates have increased by about 50% comparing last year. Indian two wheeler market is largely driven by financing i.e. almost 60-70% of two wheelers is through finance.

Motorcycle makers prepare has to cut down production because of lower sales figure. Here are their plans to beat the heat

* Bajaj’s production will be cut by 10% i.e from 200,000 bikes per month last year to 170,000 this year.

* TVS may trim the production by as much as 5,000 units a month and this production cut may be continued till September 2007.

* Hero Honda Motors Ltd. may cut production as it’s peers.

Four wheeler majors Tata and Mahindra are no exception. Both Mahindra and Tata posted drop in sales and expects the same in coming months too. For the past many months auto majors are facing margin pressure, this drop in sales might add insult to their injury. Also, rising global oil prices and heavy monsoon(similar to the last year one) is no good news for these auto manufacturers since it may bring the sales down even further. Really, auto majors are facing blistering heat and it’s RBI! which has to bring monsoon to them.

Auto News – June 2007

* On June 25 Bajaj revealed some information about its small car – Bajaj said it is experimenting with the concept of a small car but said it will not be a cheap car. Bajaj categorically ruled out its concept car being a competitor to the Tata’s Rs 1 lakh car saying: “We are striving to be a good two-wheeler manufacturer and we have no intention of getting into something which we are not capable of… that is manufacturing of cars”. He said the company’s concept small car would be a distinctive product and “it will be more like a Pulsar on four-wheels”. Bajaj small car will be a high technology car being, developed through in-house research and development and seeks to redefine small cars, bajaj added.

* Bajaj Auto introduced its 220 cc motorcycle Pulsar DTS Fi model priced at Rs 81,280 (ex-showroom Delhi) and also opened its first ‘probiking’ showroom in Delhi. The dispatches of  pulsar 220cc DTSi-FI have already started for all-India launch of the bike, after it was initially test marketed in Pune earlier this year.

* Mahindra and Mahindra launches scorpio gateway which is priced in the range of Rs6.99 – 8.1 lakh. Mahindra and Mahindra(M&M) says it will launch the 2.2L scorpio CRDe in october.

source: NDTV profit

* Lewis Hamilton produced yet another incredible performance to claim his second successive F1 win in a McLaren one-two at the United States Grand Prix.

* While the other car manufacturers are cutting their production to face the slowdown, Maruti has apologised to customers for the long delay in deliveries of the Swift and the newly launched SX4. Maruti now wishes to push its other products through aggressive discounts – it has increased discounts on Esteem to Rs 35,000 from Rs 25,000 last month, that on the Zen Estilo has been hiked from Rs 10,000 to Rs 15,000 this month. For the alto the discount is doubled to Rs10000.

* Finally India will host its first formula one in 2009. Soon IOA (Indian Olympic Association) will sign an agreement with formula one. Delhi may be the host for the Indian F1. Vijay Mallaya has been working for the deal for past many years. Formula One supremo Bernie Ecclestone has recently hinted about India hosting the F1. Recently Schumi and his brother Ralf Schumacher recently visited India. India’s Kingfisher Airlines owned by Vijay Mallya, inked a multi-year partnership deal with Toyota Motorsport to be an official partner of the Toyota F1 Racing team in January 2007

source: headlines today and times now

* Commercial vehicle maker Mahindra and Mahindra on 6th june launched its utility vehicle Mahindra Pik-Up in Australia. The 2.5 litre diesel engine powered Mahindra Pik-Up has been launched in partnership with Sydney-based (TMI) Pacific. TMI Pacific is an arm of Tynan Motor Group, which is associated with auto giants including Mercedes-Benz, Mitshubishi, Suzuki, Honda, Chrysler, Jeep, Dodge, Hyundai, Subaru and Kia. Australian driving system is similar to the indian one.

*Global auto a JV of Xentis Group and China’s Guangzhou Automobile Industry will launch its second motorcycle soon. Xenitis first offering is 125cc xpression.

* BMW India, the fully owned subsidiary of German luxury car maker BMW, plans to launch its mid-luxury sedan 5 Series in the country by June from its Chennai factory and its sport utility vehicles (SUV) X3 and X5 through the import route later this year. The company has hiked its sales target to 1,200 units from the earlier 1,000 units for the current calendar year. The company said its SUVs, which are currently undergoing homologation process at the Automotive Research Association of India (ARAI), Pune would be launched in next few months. The new 5 Series sedan is expected to be priced in the Rs37 to 42 lakh range while the company is yet to determine the prices of its SUVs. BMW India had sold 107 units in April and is expected to sell 300 units by end of this month, which would surpass its last year’s sales of 257 units. BMW India will also expand its sales network by appointing 12 dealers across the country. The company will also open its international purchasing office (IPO) in India to out-source its worldwide ancillaries requirement.

* Honda Siel Cars India will launch next week a new variant of its best-selling premium sedan — the Honda Civic. The new trim Honda Civic 1.8V will join the 1.8S, which is currently the only variant available with either a five-speed manual or automatic gearbox. The new Civic 1.8V will additionally sport features such as leather seats, front fog lamps and turn indicators integrated into outside rear-view mirrors. The new variant will also be offered with two new colours — Mystic Violet and Carbon Bronze Pearl. The new variant is expected to be offered with both the transmission options and is likely to cost about Rs 70,000 more than the respective 1.8S variants.