CNG car sales may be hit with the hike in the price

The proposed increase for the price of CNG version cars may see a fall of sale by nearly 20% it is estimated. The move will force ahead the autorickshaws and bus. However, the demand for CNG may prosper in the coming years, the observers foresee. The reason cited for the increase in the price was the fitment and the running cost of CNG. This may have a direct impact on the sale of CNG variants of Aveo [images], Logan [images], Accent, Santro [images], Corolla Altis [images] and Innova [images]. These are the part of expansion spree from the respective companies.

In the car market this CNG version comprises 5-7% due to its insufficient infrastructure available in India. This is why GM was forced to constraint its Aveo to Ahmedaband, Delhi and Mumbai. The cost of CNG per kg is Rs21.9 in Delhi and the increase of 20% would take it to Rs26.28/kg which is still cheaper than petrol(Rs47.93/lit) or diesel(Rs38.10/lit). an official from Society of Indian Automobile Manufacturers(SIMA) the rise in the CNG mode will pave way for more autorickshaws and buses. The trend will see the reverse only on the slump in the operational cost of CNG. It all depends on the purchase power of the customer, he added.

There are 680000 CNG cars and autos, 12000 buses and 700 CNG trucks are plying in the Indian roads. In all means, the Chairman of Maruti Suzuki is hopeful that there is a future for CNG. This view is corroborated by the Vice-President of GM India.

Hyundai Motor to grease its new engine plant in India

India’s second largest car maker Hyundai is pinning on the hope of retaining its position by initiating its engine unit in India. The move comes after a 3-month feasibility study and a final word will come off soon, said an official from the company. The unit will involve an investment of $550 million in an annual capacity of 3lakh units, he added maintaining the anonymity. Hyundai’s move is not new in the already increasing potential market for diesel engine in the country. The company may employ localization for certain components in the unit to be followed by other components like cylinder block heads.

However there is no final word from the MD of its Indian wing except the information about the i10 diesel variant. So is the case with the official spokesman of the company about the diesel engine unit. The company is more concerned about the rise of Ford Figo [images] rather than Nissan’s proposed small car Micra [images]. Ford Figo is doing well in the Indian market along with its diesel version. The Indian wing of Hyundai successfully completed the figure of 270000 i10s in 2009 which includes both petrol and diesel versions. The company has reserved the diesel version only for the export market and the engines are derived from its apex plant in South Africa.

The petrol i10 numbering 149000 are sold in India and a demand is there for a small diesel engine unit in the country, said the company’s director for sales and marketing. The problem is that the diesel engine has specifications not feasible for the Indian operations. Further the capacity for sale of diesel version should be 150000 to 200000 annual units, he added. Hyundai still is the largest exporter of cars from India and the second largest passenger car maker after Maruti Suzuki. Hyundai is the largest exporter for the sixth consecutive year.

the company witnessed a growth of 20.8 % by selling 600588 cars last year. The Indian wing of the company exports 110 countries including European Union, Africa, Middle East, Latin America, Asia and Australia. Hyundai has two plants in Chennai which take car of producing Santro Xing [images], i20 [images], Accent, Verna [images] and Sonata Transform [images].

Maruti Alto to be upgraded to 1000cc with K-series engine

India’s top notch car maker Maruti Suzuki is on the verge of upgrading its high selling Alto [images] with 1000cc engine from K-series. The move is Maruti’s strategy to go along with the latest technology for its prime models. With this change, the compact Alto will get a refined version with a 1-lit petrol engine derived from K-series. The Chairman of the company told that the move has been in the air for quite some time since the Maruti-800 turned Alto needs some face lifting. He did not specify the period of the launch nor the exact engine from K-series.

Currently Maruti fits two variants of the K-series engine – 998cc three cylinder, K10B found in A-Star [images], Estilo [images], and the refined WagonR [images]. The other, 1.2 lit 4-cylinder K12M petrol engine is fit in Ritz [images], Swift [images] and Swift Dzire [images]. In abeyance to the BS IV norms, the company introduced the engine with 800cc F-series engine. The need has thus come for the company to go in for 1000cc engine for this Alto and quite naturally the cost will differ between these two variants- existing Alto costs Rs2.29 lakhs and Rs2.8 lakhs.

Alto sells like hot cakes and Maruti has done a tremendous job in introducing the car in the small car segment- 20000 average units a month taking the net total to 13.5 lakhs since September 2000. This is Martui’s another milestone in addition to rolling out of 3lakh K-series engine since it has the capacity of 10 lakh units a year. K-series engine comprises 2.5 lakh from the total engine output of Maruti.

Another Chinese invasion likely into India

The Indian car market is good enough to provide a huge volume of business to any outsider or even domestic player. Here’s one from China, Beiqi Foton Motor Co which is a truck maker and a Daimler AG ally which aims to set afoot in India with vehicles. The company proposes to build a manufacturing plant here for delivering 1 lakh vehicles per annum. For this purpose the company has formed a team to search for a Greenfield facility.

The proposal may materialize in 2011, if everything goes off well, to manufacture light and heavy trucks, and SUVs. The target of 1 lakh vehicles would come into effect after 3-4 years of installation. It is to be made clear whether Daimler would involve in this project though talks are already there for a global partnership between these two companies.

New Indigo from Tata Motors

Running with the success of its models in the Indian market, Tata has pleased the customers with its latest version Indigo e-CS available in both diesel(Rs5.13lakhs) and petrol version(Rs4.07 lakhs). The latest version comes from Indigo’s current platform and will be a follow up model for the existing sedan Indigo CS. The diesel version will have the 1.4 lit CR4 common rail engine and meeting the norms of BS IV and the Automotive Research Association of India, the mileage is 23.03km/lit. this is deemed to be the highest mileage in any sedans running in India, Tata claims. The petrol version is fitted with a 1.2 lit MPFI engine meeting the BS IV norm. Tata is proud that Indigo CS, being fittingly compact, has been predominant in the sedan segment for almost two years. The new Indigo e-CS, says Tata, will be the foremost among the sedans in terms of fuel efficiency.

Curtain raiser for Polo Cup by VW

The sport does not leave any body on the half way and when it is related to car sports many eye brows get raised on own. Volkswagen is curious to know about its presence in the Indian market as its Polo [images] is receiving thumping ovation from the car lovers. The Polo Cup will be the hot potatoes during the end of this month. The event will portray the might of 25 drivers and VW intends to bring the charm and the spirit of motorsport in India.

The Series was in reality, conceived two years ago and has come now after undergoing a long reel of planning. The launch of the series was formally announced by the company’s President and MD in Pune. The series will be whistled off with the first race at the Pune sports complex from May 28 – May 30. The event will involve touring car of single-make to select 20 probables for the final. This will be followed by rest of the series to be held in Chennai and Coimbatore.

VW’s initiative got overwhelming support from motor sportists as there are 1100 registrations have already poured since this February. 45 drivers have been selected from these registrations from which the final 20 were shortlisted on go-karting selection in Kolhapur in April. These 20 drivers have got their eligibility to undertake the debut at the Polo Cup India 2010. This event will be a part of JKTyre-FMSCI National Racing Championship 2010. The event, according to observers, would provide a good platform for the budding and struggling drivers to show their might. The event will drive out the real talent in the motorsport.

Scorpio- pick up may arrive late!

The Indian truck major Mahindra&Mahindra announced that it is rescheduling the launch of Scorpio-based pick up meant for the US roads. The launch will be not before this December, it said as the company is to get clearance from the US Environmental Protection Agency by this July. Only after that the production would commence, said the President(Automotive) of M&M.

Further factors attributed to the postponement are necessary changes made in the truck to meet the US norms and the US customers’ tastes. He asserted that the company does not want to take chances by leaving any parameter to displease the US customers. The delay in the launch will make the time gap of more than 18 months since the actual launch was slated for mid-2009. This is the second put off as the first one was due to the recession and failure to comply with the US regulations and norms.

M&M, for its part has come out with 175 prototypes of which 30 have been tested in the US. M&M is planning to make the truck as export after assembling here at its Chakan plant. This would invite a tax about 25% levied on imported pick-ups. In all probabilities M&M is sure to go upto next December for the truck, which is yet to get a name(some claim that it may be called TR20 and TR40 based on the model). Mahindra likes to gain a lot by launching the truck with its brand name.

M&M’s investment for this US product is somewhere around $70-80 million. The company is sketching an initial 5-7% market share in the US. M&M’s product line has got an SUV on the Scorpio version by December 2011 and another SUV (gas electric hybrid before 2013)

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VW to go ahead with the production of sedan

Volkswagen, the dominant German car company is sharpening its tool to launch the commercial variant of its new sedan in India this year. The company’s Chakan plant is busy making the primary production stages for a new sedan. VW claims that the car would be mid-lined between Polo hatchback and Jetta [images] to be ready for formal launch in August/September this year. Further details of the car are not immediately available with the Head, Communications for India VW. The unreliable sources hinted that the car will be christened as Vento.

In the meantime VW informed its willingness to increase the production of the fast selling Polo to feed the heavy demand. The Head disclosed that the company is too happy with the response showered to Polo which made VW to design the car on par with the quality of Germany, Mexico and South Africa. He added that the production of Polo will be on phases depending upon the demand. Polo [images] was initiated from the Chakan plant in December 2009 with an initial capacity of 1.1 lakh a year. The full capacity will be met in another 18 months, he said to another poser.

After VW’s stake in Suzuki Motor, steps are underway for coming out with joint products in India. It is steeped with the visit of officials from Suzuki to Chakan plant. VW made it clear that the talks are in process to arrive at the cooperation, launching new products and sharing of technical expertise. The JV is aiming to enter into the small car segment.