Car makers see government

With the government of India increasing the price of petrol and mooting the idea of deregulating the diesel price there are fears among the car makers about the decline in diesel versions. The government’s move will shrink the gap between the prices of these two fuels. Of late there has been a great demand for diesel cars, especially of Maruti Swift [images], Tata Indica [images], and the companies are gaining much on their sale volume due to diesel vehicles. This is echoed by the DGM of Indian Oil Corporation.

The ratio of diesel to petrol which was 5:1 has come down to 4:1 and in Europe it is on rational level with gasoline (2 -2.5 times). In the time span of 8 years the cost of petrol and diesel has seen a big variation. Petrol was Rs29/lit in 2002 and its current price is Rs51.40 while diesel was Rs18 in 2002 and now it is Rs40.10 making a 22% difference. If the government implements the deregulation, the cost of diesel will be Rs45/lit which will still reduce the difference to 12.5%. The car makers are assessing the trend and see a smile over petrol, said the CGM of Maruti Suzuki.

India’s auto export may grow 15 pc this fiscal: Govt

The Indian government forecasts an increase of 15% in auto export
Quoting the ongoing demand for Indian auto makes in Europe, the Indian government said there might be 15% in the export segment from the last fiscal’s, said the Joint secretary in the department of Heavy Industries. He further said that the scope in the growing European nations is promising and the continent proves to be the ideal dearth for the Indian auto sectors, especially passenger cars.

In the meantime, the SIAM revealed the export figures of 2009-10 which stood at 18,04,619 units at an increase of 15% from 15,30,594 units in the previous year. The net export volume of 2009-10 was an increased 33.23% despite the global recession. This was throttled by the scrappage incentive scheme announced in the European spread. The small car buyers were offered attractive incentives for buying a new one at the disposal of the old one. The most fortunate beneficiaries under this scheme were Maruti Suzuki and Hyundai. With the withdrawal of the said scheme there is a soft pedaling in the European market but the companies are tapping other potential markets. The auto industry’s another important wing, two wheeler sale too witnessed good show @13.54%, with the top leaders Hero Honda and Bajaj taking the lead. SIAM had earlier made a representation to the Indian government for boosting the export market with useful measures.

TVS to grease its scooter business doubly

The two wheeler company in the Indian scene, TVS is aiming to shoot its arrow of double score in the scooter segment during the period of 2010-11. The reasons cited for this venture is the devastating market growth and the penance for its new launch Wego. Its latest sensation Wego is a 110cc and built with body balance technology costing Rs41762/. The company’s CGM for sales&mktg said that the expected revenue to be Rs1500-Rs1600 crore by selling 4.8 lakh @40000 monthly net units. The sale volume for the period 2009-10 was Rs800 crore fetched from the top brands Teenz, Pep [images] and Streak [images], with the consolidated net 3 lakh units @ 25000 monthly units.

The company has taken into account the increasing stability in women power for scooter purchase and the added advantage of urban promotion. These factors brought about a growth of 40-50% in this segment. In all the scooter market itself has witnessed the growth from 1.25 lakhs of 2009 to 1.70 lakhs in this year. TVS, the Chennai based company, is doing the best deal in Tamilnadu, Gujarat, Maharastra and Karnataka.

Mercedes Benz to drive into used car deals

The fast moving business of pre-owned cars has not spared Mercedes Benz from driving its force in India. Currently the company is taking up this business Proven Exclusivity, since last year in 35 nations. Now the time is for the Indian customers to enjoy the luxury offered at affordable price from Mercedes said its MD and CEO for India. In the event, customers can avail the old cars at the price even at the lowest price of Rs15lakhs from the normal price of Rs26-28 lakhs for the new entry level C-class [images] vehicles.

Mercedes’ other range includes M-class [images], E-class [images], and S-class [images] which are in the price range of Rs40-Rs96 lakhs for new cars. The age of the cars in this scheme will be 6+ and will be available in six dealership firms in Mumbai, Chandigarh, Delhi and Ahmedabad. By this December, there will be 8 more such outlets for easy feasibility of these vehicles. The MD said the company forecasts a business account of 10-15% in this segment by 2011; however he could not estimate the volume of cars. The five month period covering January – May in 2010 had fetched the sale of 2014 units which was a rise of 59% from the previous year.

The business will be duly aided by Mercedes’ easy finance services offered to its customers. Mercedes likes to take advantage in this regard to promote its business index to a hike against its top rival BMW. The MD further said that the company is keen on inking its presence in this potential area since the country’s 70% of cars run on finance. BMW had a good niche in 2009 with sale of 3619 units whereas Mercedes could sell 3247 units.

Hyundai is exploring the small car at its Hyderabad R&D unit

The running success of Santro made its maker Hyundai to search the possibilities for another small car and the efforts are on at the company’s R&D wing in Hyderabad. Slated for launch next year, the research project is carried out under the intelligence of 400 engineers who are spread into 180 parts. The wing, set up in 2009, is expected to come out with a proposal to be derived by CAD/ CAM, by next year. The centre is looking after localized means for new cars on the lines of Maruti which leads the race in small cars with its Alto. Hyundai has got few plans for this year as its SUV Santa Fe is getting ready for the launch, re-launch of Elantra sedan and phasing out of Getz in place of i20.

Tata to install an assembling unit in SA

A truck assembling unit may be erected by Tata in South Africa this year end, said a company official. The Head for India said the assembling unit, in addition to the ones in Thailand and Bangladesh, will be for medium and small end trucks with an initial capacity to be 3000-4000 units per year. South Africa imports 2000-3000 units from Tata every year. Tata’s net export of trucks in 2009 was 30000 units and this year’s export seems prospective for the company.Tata holds the largest share in truck market in India with 60% and is looking for an increase of 10-15% in domestic market during next year. The sale in 2009/10 was 373 615 units of trucks an increase of 41% from the previous year’s sale. Tata’s performance in the share index too is good as its net value stood at $9.1 billion with Rs769.45 and the main index ending down with 0.9%.

Tata is too happy with its five year stint in truck market with its Ace and likes to hold its position by launching new products. Tata is conscious about the India’s position as the fourth largest truck market wherein the presence of global and local makers is prominent. Among the Indian makers, M&M launched its truck Maxximo last year to counter Ace and soon GM, in association with the Chinese SAIC, will deliver a truck in the next year; Nissan under a JV with Ashok Leyland, is to enter this sector in 2011 and Germany’s Daimler too join in 2012.

Fall in economy costed Hyundai

The Korean car company Hyundai Motors India is not spared from the economy wave that swept the world in 2008. The company’s export potential to Europe has fallen sharply and search is on for alternative markets from South Africa and South America, said the company’s senior president for sales and marketing. The export market constitutes 48% of the net production, out of 650000 units manufactured annually while the domestic market has got 52%, which is expected to increase to 57%, he said. There has been a reduction of 25% in export to Europe due to the socalled economic recession. To compensate this cut there should be a boost of 10-15% this year in export market he added. The company’s R&D wing at Hyderabad is making efforts to analyse data, component development and domesticated components for various new products. While the company wants to increase the dealer network, the current capacity from two plants will be enough for facing the supply demand, he said.

GM

General Motors of the US has chalked out its strategies for the Indian show that for LCV manufacturing it is investing $100 million for setting up sales and distribution wing, said the company’s President for India. The company, it is known, is in a JV with China’s SAIC on 50:50 basis, but the Indian marketing of LCV will be done through a separate platform he added. Without sharing the existing facilities for passenger cars, the company will go in for an exclusive set up with this investment. There will be two LCVs of sub-one tonne and one tonne categories which may be delivered from the Halol facility before 2011 end. Once this facility becomes equipped for LCVs the production of other passenger cars will be migrated to Talegaon plant.

The President said that there is a much difference between LCV buyers and on lookers; in the process, the existing dealers may lose their chance to deal with LCVs. Since the LCV will not come under Chevrolet banner, it will have a separate identity with different dealership network, he said. GM is fully aware of the competitive product from Tata Ace under one tonne category. GM has another JV with the Chinese firm FAW for medium and heavy commercial vehicle, but the segment is not under consideration now from Tata. Prior to the JV with SAIC, GM India was in a pact with Korean and Australian firms. The company resident hoped that the sale of the company would tripled in 2012 with a sale of 1 lakh units in 2010 from 69000 in 2009.

Nano

Nano’s [images] successful drive in the last one year as the world’s cheapest car is now moving towards the roads of Nepal for a test drive. The dealer in Kathmandu, Sipradi Trading Pvt Ltd Tata’ dealer for three decades, said that there will be five Nanos for the test drive to be made along different roads of Nepal. The roads on test drive will include hilly terrains and downhills which are the hallmarks of Nepal. The initial commercial launch will be in Q1 of 2011, said the dealer, quoting the proposed production unit in Sanand in Gujarat.

The Nepal customers are enthusiastically keen on driving the cheapest car though it may cost around Rs5 lakhs in Nepal, due to heavy taxation (205%).Nepal will be the first ever overseas market for Nepal though it had visited other countries on shows. Nepalese customers are too attached to Tata vehicles which has 22% share in the country’s market. Other cars most preferred by Nepal are from Maruti and Hyundai. Among the Tata brands Tata Vista stays top on the fame among Nepal customers, which sold about 700 units last year.