Superbikes ride into steep base

Gone are the days when only select range of motorcycle could ride into the top terrains of mountains. Now it is found that one out of ten superbikes sold has the capacity to reach the peaks. The bikes under this category are priced in the range of Rs10 lakh – Rs60 lakhs. These superbikes are mostly preferred by the lovers hailing from north east and north parts of the country who contribute 10% of the net sale, said an official from Suzuki Motorcycles, known for its super bike Hayabusa. The superbikes are characterized by engine capacity of 1000 and +, rugged performance and sporty designs. The major players in this segment are Ducati, Honda, Kawasaki, Yamaha, Suzuki and Davidson. Their target customers are placed mostly in metro cities in the country, but much demand arises from Bangalore, Pune, Mumbai and New Delhi. But the unexpected spree from the mountain belt customers is a big surprise for these companies.

The demand is faceted for two reasons, disposable revenue and installation of sales centers covering mountain regions, said the head for marketing and sale of Honda Motorcycle. The demand from these steep regions is not comprehensive but is crucial in the overall sale. Among the metro cities, Mumbai has the good fare with one third of the sold superbikes, whereas Bangalore and Delhi have less than Mumbai- 20%. The superbike motorcycle segment boosted its reputation once Yamaha introduced YZFR R1 and MT01 before 2 years. Then came Suzuki’s Intruder and Hayabusa. Of these, Hayabusa has set the record sale of 106 units since its launch. This makes the net sale volume for the companies as – Suzuki (210 units), Yamaha(158 units) and Honda (70 units). The market analysts foresee that the superbike segment has a potential to reach 1000 units per year from next year since in 2009 it was 600 units.

Increase in domestic car sale in India

The Indian auto industry has got some good news to share about. The sale of domestic cars in India shot up by 31% in the last month. The accurate figure 30.79% by way of 141184 units stands against the corresponding month of 2009 when it was 107948 units. The report, released by SIAM, indicated the sale figures of motorbikes which too increased by 29.98% with the difference of sale numbers 550830 units in June 2010 as against 715985 units in June 2009. With this, the net sale of two wheelers in the country stands 933101 units in June 2010 against 706934 units in the same period last year, accounting an increase of 31.99%. there is an increase in commercial vehicle sale also-44.14% with 52211 units last month whereas it was 36222 units in June 2009. However, the net sales of cars comprising all segments account an increase of 31.42% (1205990 units) last month which was 917645 units in June 2009.

Bajaj eyeing on export market spree to fetch 70% sales

Riding high with recent success formula of Pulsar and Discover, Bajaj auto has an ambition to reap nearly 70% sales from the overseas markets. This move is viewed as a counter against Honda Motor, particularly in Latin America, Asia and Africa. It is to be remembered that Bajaj secured 30% sale in overseas markets last year and the chairman Rajiv Bajaj is quite optimistic that, irrespective of the time factor, his company is sure to reap this level. The company is too willing to have local partner in this regard even to increase the sale to three times than 30%. The probable concerns are KTM Power Sports AG and Kawasaki Heavy Industries, in bid to wrest the market share from the giant Honda and Chinese players.

Bajaj, like the telecom provider Bharti Airtel, is aiming to penetrate the markets in Nigeria, Indonesia and Brazil where the potential is high for two
wheelers and mobile industries. Bajaj’s initiative against Chinese brands is taken as an intelligent move since it has the efficiency to thwart their growth. But Bajaj has to muscle out a lot against Honda which is known for its perfect network and prospective market strategies. In the domestic share index, Bajaj is facing a tussle, a dip by 1.2% thereby making it Rs2,409.65 in Mumbai. Bajaj has seen a good season in its sale, a thumping 2.8 million vehicles during the FY2009-10. With this sprint, it foresees a mark of 5 million during the next two years. Honda’s record in two wheelers is far fetched- a sale of 9.63 million motorcycles which comprises sale of the country’s top most brand Hero Honda, in which Honda’s share is 26%.

Volkswagen has no reservation to join Maruti

Inline with its global strategy, Volkswagen said it is ready to share the expertise of Maruti in making cars for domestic and international markets. VW has got 19.9% from Suzuki at $2.5 billion and there are personal projects undergoing in Germany and Japan. It foresees suitable market for India and in this regard it seeks the assistance of Maruti, said it Board Member for India. He refused to divulge in detail except releasing the possibilities for such projects. He said the Indian market is a keen one for VW and in the picture of Suzuki’s deal, and the partnership is to be treated on global perspective. The tie- up is exploring all sort of technical advantage and strength since Suzuki has been a major player in the Asian sub continent . Suzuki’s ventures in small cars reap a lot of profit and revenue, he acknowledged and there is a reciprocity about VW’s efficiency from Suzuki. There are hectic discussions and negotiations between the officials of both companies, he asserted.

Tata Motors on plans for shelling out Rs 10,000 cr

The Indian auto giant Tata Motors said it is allocating Rs10000 crore for the next three year projects which include redefining the plants with latest technologies and RD of product development. The move is circulated among the shareholders through snail mails and demand for more fund has also been made. The main purpose to release this much of fund is to stabilize its position in the Indian market and to penetrate more overseas markets. The source of this funding will be issue of securities in the country and global markets by which it is expected to raise Rs4700 crore.

Toyota on production spree of engines and gearboxes for Etios

Toyota’s second plant in Bangalore is getting ready to make engines and gearboxes for the dream car Etios, The proposed capacity is 70000 annual units from this facility. Etios, displayed at the Delhi Auto Expo this year beginning is slated for launch this year end. Toyota’s Indian partner , Kirloskar Auto Parts is already content with two plants at an investment of Rs500 crore of which one can yield 52000 engines per year in India. The other one, having the capacity of 170000 gearboxes from which a portion goes to Innova and the rest being exported to Thailand and Argentina.
A proposal has been devised to increase the investment by another Rs500 crore to increase the output of gearboxes to 240000 annually and a third plant which will have a capacity of 1 lakh engines. Toyota has allotted 70000 engines from the third plant for Etios and the remaining for exports.

The production at the third plant will commence in Q3 of 2012 and by 2013 the company expects to deliver 240000 transmission boxes from the third plant. The transmissions made in India are utilized for Fortuner and export to Argentina and Thailand. TKAP plant delivers axles and propeller shafts for Innova and the methodology behind engine and gearbox manufacturing for Etios is to initiate maximum localization. TKM has invested Rs1700 crore for the first plant and the second plant will involve Rs3200 crore which makes Etios. The net sale volume of Toyota Kirloskar in India stands at 55000 vehilces in 2009 and the estimated sale for this year is 70000 units an increase of 20%, said its MD. He anticipates that the major contribution in this regard will come from the sale of Etios.

Assembling of Q5 SUV started by Audi

Audi, the world famous luxury car manufacturer’s account in India gets another mark with the commencement of assembling Q5 at its Aurangabad facility. The plant will assemble Q5 at 1500 units a year and will mean the company’s long-term vision in Indian market, said its Board Member. The assembly of this car will involve 5 workcycles based on 2 assembly lines along with A4 and A6.

He pointed out that the car, Q5, is introduced as a right product at right time in India. Audi’s production volume since September 2007 has been 2000 and is expected to reach 6000 by next five years. Other models in Indian assembling are A4 and A6 thereby the net production in India this year will be 2400 units while it was 732 last year.

Bugatti Veyron clinches the coveted title

The car lovers may linger over the demonic speed of Bugatti Veyron which drove at 280miles per hour to secure the title as the world fastest car. In just 2.5 seconds the car pricks at 0-62mph but the wonder lies in the next stage at 0-124 mph in 7.3 seconds while in 15 seconds it reaches the target of 0-184 mph. The maximum speed ever tried for the Guinness World Record was 269.8mph. But much to the pleasance of the company Bugatti clicked 268mph. the features that this car boasts are: an output of 1106 pound-ft torque and 1200 hp delivered by 4 turbochargers and larger intercoolers. The ultimate 8.0 lit W-16 engine is behind the Veyron pulsating speed. The chassis too has undergone finer repulse for enabling utmost speed. There is a raise in main-spring travel, refined shock absorbers and tough stabilizers.

All these pose a typical race car and enhance the overall control. There is a transition in body with aerodynamic mechanism and fully erected fiber style for minimum weight. Provision is made for ultimate torsion rigidity and the body has the surface of laxy finish. The distinctions from the regular model are apparent and the air flow is made from the NAXA ducts roof unlike scoops fit in regular models. Both the front and the back forms are redesigned with complete new outlook. The production of this Veyron Super Sport may commence soon in France. Other models in the elite group for production are Veyron and the Grand Sport. The speedster models – five in number – are packed in a special black carbon and priced at $ 1.8 million.

Peugeot to invest $884 million in India

The French car maker Peugeot said it is investing $884 million for a plant in Andhra Pradesh. It is to tap the potential Indian car market and to strengthen the base. The investment expected to be 700 miiion euros for the estimated production of 1 lakh cars in the plant. Peugeot is one among those tough bidders from the global scene for promoting small cars in India, in which 70% are smallcars and Maruti is the leader. Peugeot’s official approval in this regard is awaited and the negotiations with the state government too is at disposal. But everything will be processed at time loose and not in a hurry, said a spokesman for Peugeot.