A good show by Indian market in car sales

The Indian car market has brought some laurels to its credit with the sale increasing by 12-13% in the FY ending March 2011, said Society of Indian
Automobile Manufacturers (SIAM ). Further growth is anticipated due to increased income sources and banking facilitations. In addition the car makers are coming out with new launches in another six months. The sale of passenger cars shot up by 33% (55.4 lakh) during the Q1 this FY against the significantly low show in the same period last year. In this level, it is expected that the mark might be 3 million in another six years, thanks to Indian government’s 10 year Automotive Mission plan. The growth and benefit in the auto industry are backed by improvement in economy of late, said the president of SIAM. He expressed the hope that the coming months too will bring more growth. The growth is good in two wheeler segment too, he said, that it got 30% (35.34 lakhs) during the same period . yet, there is an alert that the growth of passenger car might see a dip in near future due to price hike, said SIAM.

Two wheelers to be sold with life shield

The auto dealers country wide, and the manufacturers in the capital city,will abide by the Supreme Court’s directive on compulsory helmet. Hereinafter,
registration of new vehicles will be made only after the buyers buy a new original helmet from the dealers. This directive is a result of a judgment made by the apex court to a petition filed by the auto industry association in Delhi. The apex court took top priority of safety measures, quoting the similar norms in force in West Bengal. The Society of Indian Automobile Manufacturers (SIAM) earlier filed a petition in High Court seeking to quash the norm since it violated the business norms.

SIAM contended that the norm would invoke extra financial burden to the buyers and would monopolize. The norm restricts the sale from the open
market and also imposes for the BSI token. The apex court bench dismissed the petition mentioning that for the buyers of Rs40000 worth bike it would be no burden to spend Rs300. The judge reminded that majority accidents happen due to head injuries which can be prevented by helmet wearing. Further, the bench gave the time till this month end to finalize the ISI marked helmets to desist customers from buying t he inferior ones.

Fourth price rise for four wheelers

The global car makers GM, Ford and Toyota have fallen to the state of hiking the prices of their vehicles fourth time in a row. They seek to sustain the profitability transiting from cheap demand and the force behind the rise is the commodity prices. The proposed hike may be in the range of 0.5% – 3% at Rs1500- Rs20000 in the capital city. Another reason cited for the rise is fluctuation in currency particularly Yen and Dollar, said the deputy MD of Toyota Kirloskar. Toyota’s utility car Innova is to cost Rs10000 more and its Corolla Altis sedan may see the rise by 1.5% accounting Rs15000 and the new prices will come into force from next week, it is learnt. The sale has been agog since last year and the auto makers are capitalizing on this demand. However, the rise in price is shouldered on the customers. The sale increase is mainly due to the easy availability of finance from
banks and financial institutions.

The carmakers are firm sure that the demand will not slip down despite the hike in price. There has been a different story for the vehicles which make
the customers wait for a longer period – Maruti Swift for example. This has been happening since the first increase and the sale has increased by 33% and the net sale in 2010 fiscal is up by 25% making the volume to 19.5 lakhs which is deemed to be the fastest in the last six years. This growth rate of cars in the Indian market has prompted major global players like VW and Peugeot to invade India. M&M’s version too indicates that the rise in price will not deter the sale and demand of cars. M&M is yet to come out with its rise level. In the meantime, GM has announced a 3% hike to its cars by which its Cruze sedan will cost more by Rs14500.Tata Motors and Ashok Leyland have raised the price by 2% to their cars and trucks.

Mahindra to launch Xylo micro-hybrid

Mahindra and Mahindra has said it will launch micro-hybrid variant of its MPV – Xylo. Micro hybrids are not regular hybrids but uses electric power while idling thus increasing the fuel efficiency. Mahindra already sells Bolero micro-hybrid and Scorpio micro-hybrid. “We plan to launch the Xylo micro-hybrid before the end of the year,” M&M president–automotive and farm equipment Pawan Goenka said in New Delhi. He said already there are about 50,000 micro-hybrid vehicles from the M&M stable plying on the roads now.

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TVS launches Max-4R

TVS has launched the Max-4R motorcycle in Indore. TVS Max R has huge fan following but it was phased out in 2005 owing to the tighter emission norms. TVS decided to re-launch the cult brand to regain its ground in the mass commuter segment. TVS already sells star sport and auto-clutch Jive in the 110cc segment. TVS Max-4R is also powered by an 110cc engine developing 8.4PS of maximum power and 8.3Nm of maximum torque The unique feature of this bike is detachable rear seat to accommodate goods and four shock absorbers at the rear to carry large loads. Max-4R also comes with wheel and indicator guards to protect it from goods. Max-4R uses 130mm drum brakes at the front and the rear. TVs Max-4R is priced Rs37,590 (ex-showroom, Indore)

Pictures of TVS Max-4R

Picture source: Hindu

Audi to run on top gear in production in India

Audi, the world famous car maker, is intending to boost its production capacity to 6000 units per year in another 5 years. The units will be produced
from its Aurangabad plant, said its Head for India, at an investment of 30 million Euros from which 50% has already been invested. The same plant will assemble Q5 at 1500 units per year. The sale story of Audi during the last six months of 2010 has 1400 units making an increase of 71% from the numbers of last year.

Audi initiated its presence in India with assembling of Q5 and present models include A4 and A6. So far Audi has completed assembling of 2000 units
in the country during the last three years. Audi is expanding its dealer network by adding 8more in this year including at Lucknow, Jaipur, Kolkatta, West Andheri and Ludhiana. The existing dealerships at Chennai and Bangalore will be redefined followed by the launch of A8 luxury sedan which will cost Rs80 lakhs.

Supreme Court upholds the verdict

The legal tussle over the compulsory sale of helmets along with new two wheelers has come to an end with the Indian Supreme Court upholding the
verdict. The plea was initiated by SIAM to quash the law. While dismissing the petition, the bench read out the verdict that the manufacturers of two wheelers have to supply BSI certified helmets in its genuine status. The dispute started exactly a year ago, when the Delhi High Court pronounced its judgment favoring compulsory sale of helmets with the new motorcycles. It was even instructed that registration should not be made without this norm. SIAM countered that it would be a violation of buyer’s choice on helmets and it would recur additional expense when the buyers might have already got one.

The Supreme Court bench, unconvinced with the claim by SIAM, said that the buyers who may spend around Rs40000 for a new motorcycle need not bother about Rs300 for helmet. SIAM countered the validity that of the Motor Vehicles Act which states that helmet is for the person and not for the vehicle. Further, SIAM said the law would curtail the sale in open market and would boost the two wheeler dealers. However, the apex court put an end in the favor of the lower court.