Swedish car major Volvo on Monday said it planned to introduce two new models every year, while it sets eyes on gradually expanding its dealer network in the country. Volvo plans to have 7-9 dealerships by next year and has appointed three new dealers in Delhi,Mumbai and Chandigarh. Volvo plans to roll out its sedan S80 and SUV XC90 this year. S80 and XC90 have been undergoing homologation in India and almost all the tests are coming to an end,” said Volvo Car India Managing Director Paul de Voijs . The S80 will be pitched against BMW’s 5-series (priced around Rs 37-42 lakh), the SUV XC90 will compete with the likes of Audi Q7, BMW X5 and Mercedes M Class (in the Rs 60 lakh plus category). Both the S80 and XC90 will be offered in petrol as well as diesel variants.
* Malaysia’s Proton Holdings Bhd is closer to a partnership deal with Germany’s Volkswagen after two rounds of talks between the two carmakers, Malaysian newspapers reported. State-controlled Proton, which is 43 per cent owned by state investment arm Khazanah Nasional Bhd, is in talks with Volkswagen as also General Motors of the US to sell part stake in the loss-making company.
Proton has been struggling with a steadily declining market share at home due to fierce competition, and has been unable to make up the shortfall through exports. Proton’s cars, however, have been big hits with the customers. Customers taking part in the UK’s largest car survey conducted by Which? magazine placed Proton dealers in second position when rating the overall dealership sales experience. Proton also did well in the overall reliability rating, finishing joint twelfth out of more than 30 manufacturers.
Malaysian car giant Proton announced that it will set up a wholly-owned subsidiary in India to market its cars. Proton and Hindustan Motors of India also signed a memorandum of understanding (MoU) for assembling Proton cars in Chennai. But Proton never made it but proton’s local competetior NAZA has been conducting a feasibility study to roll out its car in india. Naza plans to set up a car assembly unit in Tamilnadu.Naza had unveiled its first locally built compact car, called the Sutera in 2006 and at the time of the launch, indicated that it will target overseas markets such as India, Britain and South Africa. The l.1 litre Sutera sells in Malaysia for the equivalent of Rs 4.5 lakh.
* Japanese auto giant Toyota is looking to make India as its global manufacturing hub for small cars. Toyota is also planning to make India an export base for mid-size cars. Toyota is likely to announce plans of its much awaited small car within a couple of months. Toyota’s small car, which will be built on a new platform , will be developed in a new plant that might come up near their existing unit in Bidadi.Toyota may partner with Daihatsu for its small car project in india.
*Honda Siel Cars India 22th july said it is calling back more than 2,000 units of its premium sedan Accord to replace faulty relay fuel-pump as part of a global campaign by its parent company in Japan. Honda has asked 2,310 Accord customers in India, who purchased their cars in 2005 and 2006 to bring their cars to its service centres for the replacement of relay fuel-pump. Earlier this month Honda recalled 4459 units of its premium SUV model for the fuel tank replacement.
* As a reaction to the falling sales of 100cc motorbikes, two wheeler maker TVS Motor Company India is planning a replacement for Victor – its popular offering in the segment. The substitute for victor is likely to enter the market by the third quarter of the current fiscal. TVS has also launched kits to allow customers to enhance their performance bikes. These kits will be available from October, in 10-12 cities across the country. According to TVS, approximately 20% of buyers went in for enhancements, which they got done in the grey market, leading to a loss of the manufacturer’s warranty. These kits will be manufactured by TVS Motor, based on the research of its racing team, ensuring the manufacturer’s warranty remains intact.
* Kinetic Motor Company has signed on actor-model Bipasha Basu as the brand ambassador for its upcoming Kinetic SYM scooter. The actor would be promoting the new scooter that will be launched next month. The new 125 cc scooter is primarily targeted at female customers. Hence the company conducted a study for the right celebrity (actress) to endorse the product. Bipasha Basu was the unanimous choice. A unique audio visual with the brand ambassador has been created that would talk about Kinetic, SYM and the product. It would be streamed across all dealer outlets in the country.
* Bajaj might soon be doing a Harley-Davidson, yes, Bajaj Auto is planning to foray into biking merchandise. Bajaj’s premier Probiking showrooms have started stocking hi-quality branded accessories such as, riding jackets, gloves and helmets. Abroad, the merchandising concept by bike manufacturers already exists with major motorcycle manufacturers such as, Harley-Davidson, Kawasaki, Yamaha, Ducati and Suzuki among others, having their own range of biking accessories. Motorcycle merchandising is serious business for bike manufacturers because it not only ensures brand loyalty and but it also cultivates a devoted fan following for the manufacturer. Cult brands like Harley-Davidson even have phone covers, dartboards and jewellery sold under their banner.
* India is all set to get its first high mobility multipurpose-wheeled vehicle or the Humvee, christened Mahindra Axe. Mahindra & Mahindra (M&M) is the key driver of the homegrown Humvee project, which will dot India’s armyscape shortly, and civilian space down the line. The Humvee was first built in the 80s by American Motors for defence purposes and a civilian variant, the Hummer, came into being in the 90s. In 1998, the Hummer brand name was sold to General Motors, and while the US auto major markets and sells the brand, the Humvee is still manufactured by American Motors. There are variants the world over for Humvee like the Greek and Russian Kornet or the Toyota-crafted Megacruiser, but none so far from the subcontinent. The commercial Hummer vends in American showrooms from $30,000 to $55,000, depending on the variant — roughly between Rs 12 lakh and Rs 22 lakh. Mahindra’s commercial Axe is expected to be priced on similar lines if launched.
* Tata Motors will invest Rs 12,000 crore in the next three years to roll out a slew of models in cars and commercial vehicles segments. New models that were in the offing included new generation Indica and Indigo, the one-lakh car, Tata Xover (Crossover Concept vehicle – displayed at the 2005 Geneva Motor Show), new pick-up trucks to be developed in Thailand, improved Sumo and a new range of trucks.
* Hyundai Motor India Ltd (HMIL) has increased the price of the diesel variant of its sedan Verna by up to Rs 8,350. As per the new price, the base model would now cost Rs 7.54 lakh and the top-end model would be pegged at Rs 8.26 lakh. Bajaj and TVS have also increased prices on their models. Bajaj’s Discover DTSi and Platina are now costlier by Rs 500. BAL’s managing director Rajiv Bajaj said that the price increase would be on both the 125 cc and 135 cc variants of the Discover.
* Mahindra Renault on july 5th announced the launch of two new variants of its Logan models, one each in petrol and diesel.The new logan models, 1.6 GLX, petrol vehicle would be priced at Rs 5.35 lakh and 1.5 dCi DLX diesel model would cost Rs 6.11 lakh. The new logan variants were introduced on customer demand, Mahindra said adding adjustable rear-head restraint, truck-room light, outside mirrors with manual adjustment, front and rear power windows and central locking systems were the additional features of the new variants. Mahindra said the new variants were being launched in Tamil Nadu first because of huge demand for the vehicle and added the company would appoint more dealers all over the country soon.
* Kimi Raikkonen of Ferrari win the French Grand Prix. Raikkonen’s team mate Felipe massa finished second and Mclaren’s Lewis Hamilton finished third. Defending world champion Fernando alonso finished seventh.
* Honda Siel Motors india is recalling 4459 units of its premium SUV model for a free fuel tank replacement. After recently running into recall trouble globally, the Japanese auto major seems eager to plug any loopholes that might hamper its goodwill in India. The Honda CR-Vs manufactured between 2003 to 2005 have run into trouble abroad in countries such as Malaysia, Thailand, Singapore, the Middle East and Central America with customers complaining about fuel smell in the passenger cabin. Although there was no complaint from India, Honda has decided to extend this recalling exercise to CR-Vs sold in inida too, as this is part of a Honda Motor exercise spread across many countries. In 2004, Honda Siel had recalled 2,200 units of its Accord sedan to replace certain faulty parts such as the fuel pump, transmission and hood-stay. Honda’s rival Toyota also had recalled a batch of Corollas because the leather door-pads on the top-end version were apparently not suited to the indian climate conditions.