Bajaj to launch Discover 150cc on May 10th

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Vicky.in exclusive! our spy team managed to get exclusive information on Bajaj’s new bike. Riding on the success of Discover 100cc and Pulsar 135LS, Bajaj will launch another variant of Discover family called Bajaj Discover 150cc. Bajaj currently sells Discover 100cc and Discover 135cc. The new Bajaj Discover 150cc will come with 4-valve engine similar to Pulsar 135LS and power output is between 13-14bhp. The discover 150cc will reach the different parts of India by June. Our sources are tight lipped to tell anything about the price of Discover 150cc. Going by the Bajaj strategy, we expect the price to be competitive. With the launch of Bajaj Discover 150cc, Bajaj might phase out the Discover 135cc from the market. Dealer sources are telling us that Bajaj has already stopped the supply of Discover 135cc for past many months which is clearly an indicator for the phase out. Share your thoughts on this vicky.in exclusive scoop on Bajaj Discover 150cc. Also let us know, will the Discover 150cc will impact the sales of Bajaj pulsar 150cc.

Picture of Bajaj Discover 150cc shown at 2008 Delhi Auto Expo

Ambassador greased to run on

Hindustan Motors of CK Birla Group is steering on a high spirit as the business has boomed tremendously. With a new CEO to be appointed to oversee the operations of the company, the production of Ambassador to be continued amidst huge profit share. In the meantime, Hindustan Motors is not in trouble to seek finance from the apex company. Already the net worth erosion has surpassed 50% in all these four years. This peak performance will be conveyed to BIFR to differentiate the substance of the case. (BIFR, a government agency looks after the revival or the closure of the sick companies).

There has been no thought of wiping out the good selling Ambassador, said the company’s Chairman. The net worth erosion has been reported to the National Stock Exchange(which has become mandatory disclosure). The Company Board has approved the resignation of the MD. Ever since Maruti came to the fore in the Indian car market, Hindustan Motors has been on the declining phase. Another factor that made the company slid from its supremacy was the invasion of foreign car makers offering variety and quality.

Bajaj afoot on delivering Rs1.1 lakh car

The real test has come for Tata with its Nano to offer at Rs1 lakh. But the current situation of price rise of raw materials has become a shot in the arm for Tata. This has not deprived Bajaj, a new entrant to the car market, to go ahead with its small car project (Rs1.1 lakh). The car is supposed to come from the tripartite JV among Bajaj – Nissan – Renault. The project has undergone so many hurdles to take on the road- misunderstanding among the partners on pricing and specifications. However, the tussle was solved last year and Renault-Nissan have agreed to form a consensus on the design and the price of the car.

The difficulties that Tata face presently do not seem to have made any second thought on the JV. The partners are firm in launching the car before 2012. Under the pact, the car will be known for its low cost, high mileage and low maintenance. The JV disclosed that the proposed low cost car will be designed smaller than Maruti’s Alto. The major drawback for the JV is the search for engineering solutions to draw a final product.
Bajaj is keen on countering Nano which is currently available in three variants at Rs1.23 lakh- Rs1.72 lakhs. Tata is facing hardships with regard to the suppliers and vendors who seek higher price for the materials. However, Tata is firm to deliver the first 1lakh Nanos at the initial price of Rs1lakh. There is no word about future hike in the car price nor about further bookings for the car. The same was echoed by the executive Vice-President of Nissan.

Volkswagen to pit Vento against Honda City

Honda can no longer make an alarming presence in the premium mid-sized sedan in India. Volkswagen is gearing up to present a new executive sedan during the second half of the year. Vento, as it is christened, will give a stiff fight for Honda City(which remains the best seller in this segment with average sale of 4000 monthly units). VW’s new sedan will come from the similar platform to that of Polo hatchback. Strategy too will be same as that of Polo to place it in the premium category to yield higher brand value. The unofficial pricing of the sedan would be Rs9-10lakhs as Honda City is sold at Rs8.59 lakh for base variant, automatic variant costing Rs11.04 lakhs.

The segment has little competitors that made Honda City dominate but it will be easier for VW to counter the dominance. The features with which Vento is designed and delivered are akin to that of City. VW has an edge over City on diesel engine choice which would be made available for Vento. This feature has been missing in City. Vento will come on both diesel and petrol variants and it will have the 1.6 petrol engine found in Polo. The company’s Director said that the competition against City will be the same as it was with the launch of Polo this February. The company sees no threat over the pricing factor as the products are all under premium sector.

VW is one of the world’s top car makers, and the sedan Vento will be made from the Chakan facility in India. The facility is at present making Polo and Skoda Fabia. Polo comes at Rs4.45 lakhs (highly priced than Maruti Swift and Ritz) and Vento too may be priced in the same range, taking into the cost of engine (constituting 35-40%of the total cost). Honda City will run as usual and there won’t be any modifications to the 1.5 V (manual and automatic transmission), 5-spoke alloy wheels, front fog lamps and beige fabric seats. This premium mid-sized sedan segment contains other cars such as Mitsubishi Lancer and Cedia, Chevrolet Optra Magnum and Toyota Corolla Altis.

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A lovely car becomes pro-expensive for Tata

The world may quiver, people may wonder and customers may cheer up with the world’s cheapest car Nano for Rs1 lakh. But the car is making a lot of drain in the exchequer of Tata Motors. Tata projected the Nano for Rs1 lakh based on the then existing prices of materials – the hot-rolled steel was available for $399 per ton- after seven years, now, Tata has made 30000 Nanos and the steel is selling double the cost- nearly $800 per ton. Possibilities are there for further increase in the price. This steel, used for the car’s body panel, constitutes 50% of the car’s weight and the suppliers are seeking revised prices. A component supplier sought for an increase in the range of 5-7% for the body panel components. The supplier seems to have quoted the increased price of steel by 18% from the last September. The increase in the price of steel is to be diverted to the original equipment manufacturers and they have to decide on diverting the net cost.

In any way, Ratan Tata is committed to deliver the first 1lakh Nanos at Rs1 lakh. But the Chairman and MD of Steering Systems mentioned that the price hike in terms of steel or any raw material would be passed over to the car manufacturers. Tata, on the otherhand, said there is no point in frequent price rise and the company is committed to deliver the first 1 lakh Nanos at the pre-revised price of Rs1lakh. The suppliers are fully aware that Tata is gaining a thin margin from Nano. The fluctuation in the price of sale – during the production at Singur plant and Pantnagar- decided the net margin. The present price structure reveals that the cost of production will certainly be on the higher end, than the entry-level dealer price. Tata is quite optimistic with Nano, in creating a competition with Maruti which dominates the country’s car market with nearly 50% share. Maruti has been facing price crisis due to the rise in raw materials. The sale figure and company information released last month indicated the profit for Q4 was reduced by 70basis points. The company has quoted the price rise in steel, copper and nickel. Nano has survived the price hike due to the categorized models- the customers have booked spreading into three categories. There are 50% bookings for the top-end version, 30% for mid-level CX model and 20% for the entry-level model. In keeping all these factors on record , the booking for the next phase of Nano is kept in abeyance. There is high possibility to increase the price, when the raw materials and commodities get price rise.

April boom for Mercedes Benz

The pre-summer heat sprout early in the camp of Mercedes-Benz India with the sale in April hitting the figure of 321. The number indicates the double fold growth against 178 units in the same period of 2009. The MD& CEO of the company revealed the factors which brought this feat- intensive customer engagements, aggressive product introductions allied with deep network penetration and focus on customer delight. All these put together made the sale steep possible and the number is easily tract with the market, he added. The split up figure of 321 units is – 127 units of E-Class, 147 units of the entry level C-Class cars and 22 units of the S-Class luxury. It is to be remembered that Mercedes-Benz initiated the focus on India for this year with the presentation of SLS AMG during the Delhi Auto Expo. Right from there, there has been no looking back in the aggressive product launches- 12 products as on date.

A flight of blackboxes musing the US cars

The US government has almost made it mandatory that the car makers instill the vehicles with blackboxes. The move is to provide the cars with record of performance data. The American Congress has authorized the Federal Safety sector to initiate severe action including recall of cars under the provision of auto-safety legislation. The Congress had to unleash this legislation on the wake of Toyota recalling its 8 million vehicles for acceleration flaw.

The collaboration on automobile safety legislation is mooted jointly by Henry Waxman, Chairman of the House Commerce Committee and Senator Jay Rockefeller, Chair of the Senate Commerce Committee. The Committee has made provision for so many elements in the draft. The legislation mandates the black boxes to contain event data records and brake override systems while the throttle is set on. The law would empower the National Highway Traffic Safety Administration to indict the defaulters. According to Gloria Bergguist, a Vice President of Auto Alliance, this (legislation) is a vehicle delivered by the Congress which is fully loaded with all the options.

Indian Auto companies receive alarming indicator from the government

The import tariff protection covered for the automobile and its ancillary units are to be stripped off, indicated the Commerce Secretary. The present structure of import tariff is 106% for Completely Built Units and 60% for Completely Knocked Down units. The import duty on auto components is in the range of 7.5-10%. The government’s move to reduce the import tariff would benefit Japanese and European Union car makers much. India is on the negotiation process with these two countries on Free Trade Agreements.

The secretary hinted that a time has come now for the Indian car makers to raise to the occasion. However, the government does not want to wash away the domestic auto industries under FTA. The next ten years, he added, will be a testing time for securing the good profit and the companies shall focus on it. The government, in the meantime, is fully aware and taking into consideration the rupee depreciation against the auto export sector, cost rise in steel and lack of fund for Technology Upgradation. According to a study revealed by Emst&Young, the export figure of Indian automotive needs to reach %35-42 billion in another six years.

Ford Figo goes strong

Ford India could not expect anything more than this – the sale in April trebling to make the toll to 7509. The torch bearer of this feat is the company’s small sensation Figo which has already packed bookings of 15000 on date. The sale in the corresponding period of 2009 was 2034 units. As a result, Ford is triggering its facility at Chennai to have the second shift from next month to feed the demand. The Chennai facility has the capacity of 1 lakh units which is to be doubly increased at an investment of $500 million.

In addition, the facility has the capacity to make 2.5 lakh units engine annually. Along with Figo, Ikon, Fiesta and Endeavour has been doing good for the company. The MD of the company was full of enthusiasm to declare that the customers’ confidence on the company will be viewed seriously to carry on the momentum.