Hero Honda has raised the prices of most its popular models including Hunk, Passion Plus, CBZ,Super Splendour and Glamour. “We have not taken any price hike due to commodity costs since August, 2008, but the burden has increased very much recently and we are passing it partially to the consumers,” Hero Honda Senior Vice-President (Marketing and Sales) Anil Dua said. The Hunk and CBZ Xtreme gets pricier by Rs1000 and other models is costlier by Rs500. However, there will be no hike in the prices of its flagship model, Splendor, and premium bike Karizma. “Steel prices have risen very much in the last couple of months and tyre prices are also moving upwards. Rubber prices are really hardening,” Dua said.
Tata rolls out Nano from Sanand plant
Tata Motors today inaugurated its much awaited Sanand plant. The plant’s inauguration marks the culmination of the company’s goal of making the Tata Nano freely available to hundreds of thousands of families, desirous of the car. The capacity of the plant, to begin with, will be 250,000 cars per year to be achieved in phases, and with some balancing is expandable up to 350,000 cars per year. Further capacity expansion has also been provided for in this location. Speaking on the occasion, Mr. Tata said, “We are happy that the Tata Nano has found its home at Sanand in Gujarat. We would like to thank everyone who has made this possible, particularly the Honourable Chief Minister, Mr. Narendra Modi. We would also like to thank the people of Gujarat on this occasion. I am glad that we will now be able to manufacture the Tata Nano at a plant, set up in record time by the Tata Motors team who have and continue to receive full support from the Gujarat administration. This will now allow us to better meet the strong demand for the Tata Nano across the country.”
Deliveries from the plant, including BS4 Tata Nanos, will begin this month. The output, supplemented by the facility at Pantnagar (Uttarakhand), will in the immediate phase complete pending orders from the booking process of 2009. Built in a record time of 14 months starting November 2008, the integrated facility comprises Tata Motors’ own plant, spread over 725 acres, and an adjacent vendor park, spread over 375 acres, to house key component manufacturers for the Tata Nano.
Nissan woos Ashok Leyland for global small car
Japan’s premier car maker Nissan is depending much on the Indian counterpart Ashok Leyland for the smooth launch of small car. The company’s Senior VP said Nissan intends to compete the much potential segment of the small car in the country. Since the company is on the conceptual phase, search is on for potential partners, he added. He asserted that the company is looking for the very best partner in the competitive market. Still, there has been no policy made regarding the type of market nor the type of vehicle. During the last March, Nissan had negotiations with Ashok Leyland for launching a small car in India at the price range of $4500-5000.
However, in case of the pact arrived, Nissan would initiate in the China as the lead market and will later on enter into India, said the company’s VP. Nissan’s global small car may find way to Indonesia, Vietnam, Brazil, Colombia and more Latin American countries. The proposed small car will position between Nano and Swift and probably may counter Maruti’s Alto. Nissan is gaining time to set right its operations in South Korea, once the take over of Ssangyong Motor is over. Nissan is one among the consortium making the bid for SsangYong, while the others being Renault and Renault Samsung Motors. Nissan is keen on securing the bid because of the capacity of SsangYong and the booming market. In the meanwhile, India’s top most truck maker Mahindra & Mahindra is also on the bidding process to secure the stake of SsangYong. The bid is estimated at $500 millionRecently Nissan announced the launch of LCV in association with Ashok Leyland, which is to roll down in 2011.
GM-SAIC couple to have a unique honeymoon in India
The much sought link between General Motors and SAIC of China has kindled the hope of getting better yields in the Indian car market. For the JV, India is a unique country with lot of potential and it will not be on par BRIC nations, said the President of GM International Operations. BRIC (Brazil, Russia, India and China) may soon become the target markets for the car market. GM senses the Indian market resulted out of its launch of Chevrolet Beat [images]at Rs3.5 lakhs along with Spark [“>images] which too brings in fame for GM in India. GM is now on a JV with the Chinese SAIC and Wuling for promoting LCVs in India in which the Wuling pick ups will face the acid test during their launch in 2011. Also in the list is the stream of passenger vehicles. GM says for it the launching pad is more crucial than the overseas market and India proves to be a dearth for so many opportunities. SAIC’s Chinese experience will enhance the execution in India, as GM has the tradition of 4-tier structure in the country.
The Chinese market has an organized set up- luxury cars meet the demands of Shanghai and Beijing, Wuling trucks meet the expectations of other parts of the country suiting the less cost and less purchase power. GM has just revived from its recession and it will be best via media for North America, Europe and other new markets. GM conducted a leadership meet in Shanghai represented by Russia, India, China, Africa and West Asia for sorting out different business strategies for each area. GM China’s President disclosed that GM intends to expand its activities wherever possible in other regions making the ally with FAW group(First Auto Works) specializing on trucks.
The regions targeted thus are Europe, Latin America and West Asia. In all GM is eyeing on its long term goal of global base for CVs. The tie-up with SAIC will no way affect its prospects in Indian operations, said the official. GM plans to complete the production of 2million vehicles in China by this calendar year and this strategy may apply for India too. As for GM, India would finish in the Top 10 countries once the JV with SAIC goes on full swing.
Honda foresees reduction of wait time with the launch of second plant
Honda Motorcycles has a good niche in the Indian two wheeler market, with its sale proving to be potential. However, the company does not want to take risk on making the delivery too far or extending the wait time. So the company is launching its second plant so that the growth rate may be stable at 22% during 2010-11. Honda, currently the fourth largest company in two wheeler making, has laid its foundation stone for the second plant at Tapukara, wherein the production will commence from the second half of 2011.
Honda Activa [images] scooter has a long wait period amidst the overall sale of 12.7 lakh units in 2009-10 and the target for this year is 15.5 lakh units. Honda much depends on the upcoming second plant to boost its sales, said its CEO and President. From the overall sale, in 2009-10, of 5.2 lakhs, scooters comprised 7.5 lakh units, making it 60% sales. The company seeks to evenly distribute the sale of both scooters and motorcycles, probably more from the latter. The new plant will come off in the existing car plant at Honda Siel’s 1000 acre area, and will have the capacity of 6 lakh annual units at the initial phase. Depending upon the demand, this will be doubled –to 12 lakh units- making the total tally of production to 22 lakh units(of which 6 lakh units may be from the smaller plants).
According to the MD and COO of Honda Asia and Oceania, the first plant has already became packed for full capacity and there is an urgent need for the second plant for India. For Honda, India is one of the crucial market for its automotive operations. The new plant has incurred an investment of Rs500 crore allied with the involvement of 3000 employees.
Yamaha follows Gandhian philosophy- knock at the rural doors
Japan’s two wheeler major Yamaha is all set to penetrate the rural market in another five years by increasing the outlets numbering 1000 in sub-urban and hamlets in India along with sub-dealers. Presently there are 430 standard dealers which will be increased to 450 in another five years.
In 2009, Yamaha sold 2.2 lakh units thereby expecting to grow by 30% this year. This is amidst the overall growth of 25% in the Indian motorcycle market with the sale of 7341139 units.
The company’s presence in cities, urban areas is fantastic aided by the brand image and still likes to continue the stint as the premium bike maker in rural sectors too, said the company’s Business Head. He expressed that rural pockets have not been properly addressed by the two wheeler makers- current promise from rural market is 15% for Yamaha, which is likely to be increased to 30% in another four years. He ruled out the manufacture of low priced bikes in India for this rural markets. Rather the company would retain its same image for the market unlike certain motorcycle makers which offered inferior bikes for this segment. Yamaha’s range in the Indian market are – FZ16 [images], FZS [images], Fazer [images] and YZF-R15 [images] all at the price range of Rs65000 – 98000.
the results of Volkswagen
Polo Cup India 2010, the joint venture between the German car maker Volkswagen and JK Tyre, was flagged off recently in Pune. The event had a brigade of 20 drivers driving along 2.15km which was specially designed with street circuit. The lap had a mixture of 90degree corners and overturns were difficult making small cars unsuited for the rally. However, the drivers proved their might and secured qualifying stint. In the round 1 races, Sailesh Bolisetti won and he said he enjoyed the race gaining new experience. He felt that the cars got full safety features and saloon race cars helped a lot he added. Another winner of two podiums, Karthik Shankar, for whom it was the first race on a street circuit and in a saloon car, said he felt amazing at being in the rally. He said he had 100% concentration all through the races. He mentioned the importance of tyres in making the end smooth. The event had the portrayal of certain stunts from Hari Singh(the multiple National Rally Champion) and Ronny Wechselberger, the coach from VW. The event turned out to be a new era in the tradition of motorsport in India.
Race 1 Results
1. Sailesh Bolisetti
2. Saran Vikram
3. Karthik Shankar
4. Vishnu Prasad
5. Sahil Shelar
6. Mohd. Fahad Kutty
7. Oshan Kothadiya
8. Parth Ghorpade
9. Munjal Savla
10. Samyak Shah
Race 2 Results
1. Sailesh Bolisetti
2. Karthik Shankar
3. Mohd. Fahad Kutty
4. Sahil Shelar
5. Vishnu Prasad
6. Oshan Kothadiya
7. Munjal Savla
8. Imran Majid
9. Gurniaz Maan
10. Gokul Krishna
Honda Siel
Honda’s initiative to penetrate the Indian car market will see the launch of its small car by this October. Also in the foray are the sourcing of local components in large number, enhancing the business by pressing more dealers and service wings across the country. The company’s target is to double its sale to more than 1 lakh in the next one year(the current sale is 60000 units). Honda has unleashed its revival measure following the dip in its sale in March and April this year. Last year saw Honda secure a volume of 20% plus in the fiscal. The Q4 of 2009-10 proved to be a haunting phase for Honda – its sales plunged by 3% to a sale of 21764 units which was 22376 units in the corresponding period of last year. Hence its most needed SOS will be a small car for reaching more customers and attaining more sales.
The company’s CEO and President said that the company intends to make its car as the best brand in India so as to reach 1 million customers in the next five years. He foresees the growth by way of launching the small car. The small car is expected to roll on by October 2011 at the price range of Rs3.5-4 lakhs. The company is understood the debacle of Jazz due to the price factor and hence the small car would cost competitively. At the sametime there is no move to strip down the existing model of Jazz [images] because of its high cost, except that there will be a removal of air bags to reduce some substantial price. However, he said, the company will not compromise on safety aspects at the cost of price.
Strategies for JLR thrown open
The 100-day silence from the new incumbent of JLR broke with a detail about the major shake up in product line up. The shake up, possibly on a radical means, may segregate Land Rover and Range Rover brands, possible launch of a new mid-size Range Rover (between LRX and Range Rover Sport, a smack range to promote Tata products of petrol and diesel engines. In addition there will be a new plant in China for assembling around 20000 Freelander-based models before 2014. This comes in the wake of shake up in the company official hierarchy. Tata could, in the meantime, secure an increased profit of 40% including profit making move of Jaguar and Land Rover.
This made the officials to reveal the strategy to move ahead step-by-step process. The reaping of benefits will at no cost be sacrificed, they said. In all there will be freshened approach regarding the three models- Jaguar, Range Rover and Land Rover. The new chief is so pleased with the entrepreneurial spirit found in the Tata camp, which is set to create a new culture in Gaydon. In addition there will be exploration for a small Jaguar saloon and a fast track sub-XK Jaguar roadster. All models are on clay shape and soon to be converted into reality, he added.
Honda Motorcycle to implant Rs500 crore for its second 2-wheeler plant
The Indian unit of the Japanese automaker Honda, is investing Rs500 crore for expanding its activities in India. The move is to make a second plant for its two wheeler production at Alwar in Rajasthan and the products will roll out in the next financial year. The plant will have the annual capacity of 6 lakh units to meet the growing demand for the company’s products. In the meantime, the capacity at the company’s Manesar plant will be increased to reach 15 lakh units, by the end of this fiscal. The company foresees the increased sale of motorcycles from its platform than the scooters. The company’s performance in 2009-10 was a sale of 12.7 lakh two wheelers and the expectations for this year is 15 lakh units, in which 50% may be bikes. Soon, the company will roll out its VFR 1200 motorcycle in India, which will be imported and will cost more than its CB 1000RR(Rs12.5 lakhs). In India, the company has sold 100 units of high-end fun bikes and the export market romped 80000 units in last fiscal. The export target for this fiscal would be 1.10 lakh units, it is learnt.