Hot News – October 2007 part 2

1 lakh mania is back

* Hyundai says it plans to bring an entry level car with a minimum price tag of $3000(Rs1,20,000) like the one Renault is planning. However Hyundai says it will not make 1 lakh car. Here are Hyundai’s comment on new low cost car, the small technology and proposed Tata 1 lakh car, “Considering the safety issues and norms and input costs from our point, making a Rs one lakh car is impossible,” Hyundai Motor India Managing (HMIL) Director and CEO H S Lheem said. “We have the technology for small car…already there is an 800 cc engine in Korea. We can develop technology for a 650 cc engine,” Lheem said, however, adding HMIL was not in a hurry to enter the segment. “There are no immediate plans to enter into the 800cc or 650 cc segment. This time around, we will give it a go by but in future, we may look at it,” Lheem said. On when Indian customers could have such a car from Hyundai, Lheem said: “Probably in five years’ time.” On what could be a feasible price range for the company to be a serious competitor in the small car market, he said: “USD 3000 (nearly Rs 120,000) could be a minimum range.”

* It seems that Bajaj Auto’s Joint Venture with French car maker Renault for producing a Rs1,20,000 car will be ready in two months. “Right now, it looks like the study will be done in six to eight weeks,” Executive Director Sanjiv Bajaj said. Renault and Bajaj said in July they were in initial talks on making “very competitive” vehicles in India.

* Yamaha which is working on 1000crore restructuring plan, plans to foray into the automatic scooter segment. Yamaha India is evaluating the right segment to which will suit the indian needs. Yamaha India has already commissioned a market survey regarding the same. Internationally Yamaha has several scooter models, ranging from 110 cc to 400 cc.Yamaha is likely to introduce its automatic range of scooters with dual disc brakes and twin-shock chassis with high-powered liquid cooled engines in the premium segment. Yamaha may also hit the entry-level segment with its fuel-injected 125 cc four-stroke engine and compact-sized scooters. While its high powered 150 cc to 250 cc scooters will hit the urban markets, the 100 cc to 125 cc scooters will target smaller cities and towns.Here are those official words

YMI managing director and CEO Tomotaka Ishikawa told ET, “We will enter the scooter market but are yet to finalise the segment and the products. Once we introduce our new range of bikes in early 2008, we will concentrate on the right kind of scooter for the Indian market. We plan to hit the premium segment first and target customers who prefer to go for style and power rather than use scooters for their commuting needs.” “We will have India-specific products, though our high-powered range in Europe and sub-150 cc Asian models could also be considered. We will bring new and better features in our scooters with comfortable suspension which will meet high safety standards,” Mr Ishikawa said.

* Yamaha which bifurcated its Indian operations into two subsidiaries – Yamaha Motor India for manufacturing and Yamaha Motor India Sales for marketing two years ago is now investing Rs 250 crore to set up a new subsidiary in India. Yamaha plans to use this subsidiaryfor importing its import its high-end super bikes, speciality vehicles like snow mobiles, golf carts and all terrain vehicles into India. The new subsidiary will make, market and export two-wheelers and parts, import two-wheelers and parts not made in India and import other products from its global portfolio like all terrain vehicles, outboard motors, snow mobiles, generators, multi-purpose vehicles, water pumps, electric hybrid bicycles, racing and golf carts. Yamaha also plans to find a new partner for this new subsidiary. The reported talks between Yamaha and Bajaj has not matured.

* Hero Honda plan to join hands with their Japanese partner Honda Motor Company (HMC), to tap the potential of different low-cost markets in Asia, Africa and Latin America. Hero Honda has been eyeing various emerging markets where Honda has been operating independently and has not been performing well. The new arrangement is expected to be along the lines of the current spare parts supply arrangement where Hero Honda supplies different low-cost spares to HMC for its worldwide operations. “We had mooted the proposal with HMC, but nothing concrete has emerged so far. There has been no development or positive indication from HMC on that front, though we want to exploit the potential of various emerging markets together.” Hero Honda managing director Pawan Munjal told.

* West Bengal government has decided to set up an auto components hub at Guptamoni in West Midnapore district. The auto components hub would come up on 500 acres of land at Guptamoni. Bengal Srei Infrastructure Development, a joint venture company between Srei Capital Markets and the West Bengal Industrial Development Corporation (WBIDC), will develop the infrastructure required for the auto components hub.

* Automotive lubricants maker Valvoline has appointed Australian cricket team’s captain Ricky Ponting as its brand ambassador.

* The European Court of Justice on Tuesday ruled illegal a German law established decades ago to shield carmaker Volkswagen AG from foreign takeovers, clearing the way for rival Porsche AG to increase its 31% stake.

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