Tata puts the fourth wheel of its dealership in Hyderabad

Tata Motors has put in the fourth dealer at Hyderabad in the form of Inline4 Motor, which will add the elite group with remaining already in Mumbai (two numbers) and one in New Delhi. The luxury market is expected to peak from its yearly volume of 12000. With this dealer appointment, Tata is all set to penetrate the Hyderabad market for its SUVs and premium vehicles, according to the company’s VP-commercial. Tata’s search for potential market is entering into this Hyderabad region which has the capacity of securing 500 numbers of cars per year, he added. In 2009 Tata sold about 220 Land Rovers and 80 Jaguars and the target is more ideal for this year.

The newly appointed dealer, inaugurated by the Vice-chairman of Deccan Chronicle Holdings, will involve in promoting all the product ranges of JLR. Tata’s head for premier vehicles segment expressed the hope that there is an anticipated growth in the luxury car segment, both imported and assembled, in India. Tata’s next leap will be to counter BMW and Mercedes Benz, by appointing dealers in crucial metro cities. Tata alone has this limited number of dealers in the country, whereas other luxury car makers have at least 12 dealer outlets.

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M&M

India’s top most automobile company, Mahindra&Mahindra is to enter a liaison with the UAE concerns, Arabia Holdings and Ras Al-Khaimah Transport Investments. Of these, Arabia Holdings is engaged in real estate, logistics and transportation, while Ras Al-Khaimah is a new enterprise started for this JV.

The business will go along in the Emirates of Al-Khaimah, to deliver Mahindra’s Defense Systems based armoured vehicles like Marksman, up-armored Scorpio, cashi-in-transit van. Mahindra has the efficient line up in this Defense System service, with expertise on ballistic ligaments in vehicle operation and protection.

The JV is positioned in the UAE lands for the sake of cheaper manufacturing and executing genuineness to Gulf countries, Central Asia and Africa.

Tata Motors colors its JLR with green value

To have an identity of its own, Tata Motors is entering into green fuel mission for its JLR models. The move will envisage a reduction of CO2 by 25% and will cover up factors like changing norms of emission, taxation and expanding fuel price. The mission will be targeted for 2014 , backed by technology and proper strategy, said the communiqué from Tata Motors. The proposal might be trialed for its two ongoing projects- Limo Green and Range-e of which the earlier is a hybrid XJ coming with a 145kW, and a motor torque of 295. The vehicle is fitted with a 1.2 lit petrol engine and the assurance is there for a fuel efficiency upto 57 miles /gallon which equals 10km per litre. There will be emission of carbon dioxide to 120g/km even at the top speed of 110kms/hour. The other one , Range –e is a diesel version coming in the shadow of an SUV but would run on whole electric fuel to reduce emission rate.

These are a part of Tata’s emission reduction mission for JLR range of vehicles, after availing a loan of 340-million pound from the European Investment Bank. The loan, on amortising basis, will be for a period of 8 years which can be utilized for R&D of JLR projects, mainly emission reduction. Tata believes that green technologies make it get rid of rise in fuel and emission regulations. In addition, the premium vehicles are tend to be projected as enviro-friendly and eco-protection. This is why most premium vehicles and SUVs are adorned with a downsized and electrified engines. The similar situation prevails in the sector of conventional SUVs too. Commercially, Tata is aiming to increase the dealer number in the country to push more JLR ranges. Tata is spreading its wings to China later this year in addition to an existing purchase office , amidst its plans to retain the low cost domestic sourcing. JLR is on the roads of major markets under Jaguar XJ brand and by next year there will be a launch of Range Rover. Tata has drafted the future map for JLR with new models in another three years.

Bajaj inches close to Hero in 100cc segment

There is a top gear race in the two wheeler market between Hero Honda and Bajaj. The track is 100 cc segment wherein Hero Honda has been the stalwart for years. But the track is assisting well for Bajaj now that whatever share that Hero Honda slipped down(around 6%) has been wrapped by Bajaj. Hero Honda rules the rooster with its premium brands in 100 cc, Splendor [images] and Passion [images] but Bajaj had the gunshot in the form of its Discover 100cc [images]. the sale volume for the 100 cc bikes during the second half of the 2009-10 was an addition of 33264 units a month, than those of the first half. In the period when Hero Honda faced a fall, Bajaj’s sale grew with a volume of 34867 monthly units, much prior to the launch of its Discover.

While there was no instant reply from the Hero Honda sources, the CEO for Bajaj two wheelers said the company has witnessed a growth of 6% in 100 cc segment making the point to 23% in the phase of October 2009 to May 2010. Whereas Hero Honda’s sale tune was down from 69% to 64% during the said period. Bajaj admits that it has tasted the difference in the matter of profit too. The company plans to reduce the entry level share from the 42% found in 2009-09 to 16% currently for more profitability. Hero Honda’s shake is not only to the aggressive drive of Discover, but also due to the strengthening strategy of its sibling Hero Motorcycles and Scooters India. The industry experts anticipate a growth of 13% in the industry of which Hero Honda is expected to snatch 10% CAGR for the ensuing three financial years from 2010.

Hero Honda’s splendid run during 2008 and 2009 was merely due to the negligence of 100cc segment by Bajaj and TVS, making Hero Honda stablilize its share(from 48% to 64%). Came Bajaj’s Discover and the trend changed by becoming the third largest selling bike in the country. The Discover unearthed the hallow surrounded in Hero Honda 100cc products. The notion prevailing in the market, Hero Honda dominates in the rural sector, too would be broken since there is a smiling over Discover, for a change of fashion and style from this segment. The irony is Discover costs Rs4000 more than Hero Honda Splendor. But money does not matter for the playful customers.

Bajaj is no exception for price rise

India’s second largest two wheeler company Bajaj is greasing its exchequer with a price rise for its products. The company cites the rise of price in raw materials and the rise in the products may be from Rs800- Rs1000. Bajaj is sending communication to its dealers in this regard. Already Hero Honda has increased price for its bikes by Rs1000. Bajaj would benefit out of this price rise in terms of operating margin, which had been deprived as a result of severe competition in the market. The rise is applicable for all models, including Platina, said the company sources.

Backed by its two star packed models Pulsar [images] and Discover [images], Bajaj secured a sale of 2,69,488 units in last month, making a growth of 63%. This rise in sale was a common factor for all two wheeler makers in the country in the initial months of this year. The reasons cited are the purchase power of the rural sector which contributed much. There is a talk of continued growth in the market again with the back up of rural contribution. The companies are worried about their margin range because of the commodity prices. This inspite of the companies passing over the rise to the customers directly. SIAM report indicates a growth of 25.43% in two wheeler market(17.92 lakh units) during April and May which was 14.28 lakhs in January and February this year. The same period witnessed the increase in the production by 31%.

GM Chevrolet reaches a new mile stone

The US car maker General Motors is too pleased to see the new landmark in its Indian operations, as its Chevrolet brand cars reached the 3 lakh mark. The company attained this mark in all these 7 years of operations, amidst the fall and rise of the market. There are 8 models under Chevrolet brand- Spark and Beat hatchbacks, Aveo [images] and Cruze [images] sedans, Tavera [images] muv and Captiva [images] suv. The earlier models to Chevrolet were Corsa, Swing, Vectra and Astra all coming under Opel brand and now they are all extinct. The VP of GM India expressed his pleasure on this occasion mentioning the consistent growth track of Chevrolet brands in India. The highest sale of its Chevrolet was in March 2010 with a volume of 11330 units, a 200% rise from the one seen in the corresponding period of previous year.

The feat was set by the Beat [images] and Spark [images]. GM has been in India since 1994 came under a JV with HM on 50:50 share and in 1999 it became the whole subsidiary for the US apex. Last December it made a JV with the Chinese Shanghai Automotive Industries Corpn on 50:50 share. Based on this SAIC platform GM is sharpening its tools to reach the millions of dollars mission from its Halol plant in India for its LCVs. Two years ago, GM set up an engine plant at Talegaon at an initial investment of $200 million, an additional investment to the $300 million for the car manufacturing facility in the same plant. The Talegaon facility has the capacity of 1.4 lakh annual units.

Tata clears the deck for the waiting Nano customers

The world’s cheapest car Nano [images] will be handed over to the buyers on the spot, once the pending bookings are cleared by Tata. The company had to resort to the lot system for 1 lakh bookings, since there had been production constraint at that time. As the Sanand plant, with 2.5 lakh annual units capacity, in Gujarat is set to roll down more cars from this August, the situation might ease the delivery of the car at once payment is made. The dealer from New Delhi made a surprise remark that the base model is available for any time delivery while the mid and top end versions will be delayed for delivery, may be 15-20 days. These instant deliveries are made through management quota without prejudice to the pending bookings. The early bookings are now being cleared at the launch price. Tata had to undergo a tough phase in manufacturing Nano, due to the exit from West Bengal’s Singur which made Pantnagar facility to feed only limited number of productions. With bookings started in April 2009, Tata has so far delivered 35000 units to the bookings. Of the 1.55 lakh aspirants for this cheapest car, only 1 lakh lucky winners were assured of Rs1 lakh price.

Proton to revive talks with M&M

Even Ghajini would not be envious of Malaysia’s Proton, who tries to enter the Indian auto industry. After undergoing so many failed round of talks with Indian players, the company is likely to revive its talks with M&M. the earlier talks with both parties in 2007 failed to materialize making Proton to flirt with Argentium Motors, which had the opportunity to take over Daewoo Motors India. Proton is not only eyeing on India but the ASEAN regions, for its CBU and India, China and Iran for its CKD market.

M&M has not come out with any assertive remarks, quoting the information as speculation. Proton, which too is tight lipped, is badly in need of an Indian partner. Meanwhile, M&M is facing a legal petition for the delayed introduction of pick-up trucks in the US market. Even if M&M enters into a tieup with Proton, there will be assistance for assembling. Proton is keen on the Indian market, which has easily overcome the recession, making the big players to land in largely. Proton is in the field with its Exora, muv, Savvy compact and Saga sedan.

Volkswagen targets 1.1 lakh cars by 2011-end

VW to increase its production target by the end of next year

Polo has driven Volkswagen to a new pole, the increased production in India. Currently, the waiting period for Polo [images] is 3-4 months. The company’s Pune plant will be upgraded to deliver 1.1 lakh units, before the end of 2011, said the Chief Representative of the VW Group India and MD.

The plant, set up at an investment of Rs3800 crore had delivered its 10000th unit recently. It took just six months after the launch of commercial production. For attaining the proposed target, the plant will undertake the second shift in another three months, he added. The company has its motto of providing quality products to make the customers happy. The company is fully aware of the potential Indian market, which has a stunning growth rate – 1.6million in 2009 to 3 million by 2015. This figure makes India make other countries lag and VW likes to capitalize on this growth aspect. VW entered the Indian market in 2001 with its Skoda and introduced its Audi in 2007 and by now there are 17 varied models in the VW platform. Soon there will be a sedan Vento, a partial Polo range in addition to a probable entry into the below Polo range.