Maruti to focus on domestic market

The demand for both export and local market is too good for Maruti to hear about. But the problem with manufacturing and dispatching for export as well as domestic market is on big discussion. The result is Maruti to focus more on domestic market. As such it likes to retain its market share of 52% in the Indian market and is not keen on concentrating on export venture. As a revamping step, the company is setting the ball roll towards increased production in the next two years. This will make the two plants – Gurgaon and Manesar- to be tight scheduled.

These units, according to the MD, (with the installed capacity of making one million units per year) will be expanded to go beyond the limit before this year end. If possible the Gurgaon plant will yield more units by – 70000 to 80000- per year. In all the company foresees the difficulty in meeting the demand for the two years – 2010 -11 and 2011-12. As of now, the plants are running to full capacity with the personnel at manufacturing trying their best. But the company is on the questioning phase of 2012. This will add to the already fallen export figures by 20-30% due to the wiping of the incentive scheme for the scrappage system. Till then, the company had been enjoying 80% net export from the Europe market.

The MD expressed his contented reply about the existing share -145000 to 150000 units-which is expected to be consistent. In FY 2009-10, the company exported 147000 units and what more could satisfy them at a time of production shortage. The actual target for the said period was 2 lakh cars ( 1 lakh for Europe and 1 lakh for other countries). The company has set the growth target -12% – for both this year and for the next year. The Gurgaon plant is upgraded at an investment of Rs130 crore to deliver an additional 70000-80000 units annually. Further, Maruti is investing Rs1700 crore to expand the Manesar plant for delivering 250000 units per year from 2012. The capacity of these two mega plants are – 7lakhs from Gurgaon and 3 lakhs from Manesar per year. In addition Maruti is in an agreement with Nissan for supplying 30000-50000 units of A-Star for Japan to be marketed by Nissan as Pixo. This will come into effect from 2012.

Toyota may export Etios to Europe

In a bid to increase the profit margin, Toyota company’s Indian subsidiary is looking for the export of Etios to Europe. On record there has been a proposal to export Etios to countries around India and South Africa. The car is manufactured in the plant near Bangalore. The feature was confirmed by the Deputy MD of Toyota Kirloskar Motor company. If it happens, Toyota will join the elite group of car makers – Maruti, Hyundai and Nissan – exporting small cars to Europe. Of late the export of small cars has come down due to the withdrawal of incentive offered for scrappage system in Europe.

Thus, Maruti has tolled its export to 110% (147575 units), Hyundai’s export rose by 12% (285658 units). Going by the scrapping of scrappage incentive in Europe, it is estimated that the export business to Europe may still fall during this fiscal. Toyota has been on the clouds of export market ever since it recalled its 8.4 million cars from Europe. However, Toyota has no such fears in the Indian market except a slight slid in the net sales, said the DyMD for sales and Marketing, Toyota Kirloskar. The company has got its own reservations on exporting Etios to Asia Pacific due to the exorbitant spare making facility. But in Europe the condition is different, with the labor cost reduced by 30-40%.

In order to streamline the distribution of Etios in India by this December, Toyota is on the verge of increasing the dealer network to 150 from the current 98. The move will be to enter the smaller towns and cities by doubling the manpower to 2500 for sales and making the service employees to 6000 from the current 2500. In the meantime, the company has got some cheering with orders coming for Prius in 82numbers. So far the company has delivered 10 units since the dispatch from April. Toyota is on a principle to import Prius against assured orders due to the huge import duties. Honda had to shell out Rs8 lakhs as discount for its Civic which it imported but now the company has withdrawn importing the car.

Tata Indica Vista Drivetech4

In an attempt to introduce new model, Tata Motors has launched Indica Vista Drivetech4. The car is a genre of second generation and promises finesse of driving experience, claims Tata Motors. It is a compliant of both petrol and diesel version meeting the Euro IV norms. There is a unique gearbox in both these variants to provide enhanced torque at lower rpm and to reduce vibration along with easy shifting. The gearbox provides cooled exhaust gas recirculation in case of lower emissions thereby ensuring a longer life.

The interiors too have undergone changes- there is a 4-spoke tilt-adjustable steering wheel and adjustable driver seat. The rear seat is able for folding at 60:40 to increase the free space for storage. New addition is an integrated 2-din stereo system coupled with Blue 5 and USB port support. In the front are the dual bags and ABS for safety assurance. The price range is Rs3.57 lakhs for the Safire petrol and Rs4.4 lakhs for the Quadrajet diesel mode

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Mercedes Launches C220 CDI EE

Mercedes introduces counterpart for BMW in the C-class [images] saloon C220 CDI Executive Edition. It would be the entry-level model at Rs27.75 lakhs. The major difference between Mercedes and BMW (3-series [images] Corporate Edition) is the availability. BMW is available for individual buyers but Merc is exclusive for fleet customers such as hotels and corporate companies. It has contrasting features with C220 CDI Elegance – there is no sliding sunroof, bi-Xenon headlamps, electrically foldable mirrors and CD changer. The vehicle has a single CD player and there is a burr-walnut wood trim instead of eucalyptus wood trim found in Elegance model. The pure leather is replaced with art leather; the car is sent without Parktronic; the Elegance has 12 spokes for its 16-inch alloy wheels but this C220 CDI EE has 7-spokes. The price difference is too is noticeable- Executive Edition is cheaper than the Elegance by Rs7 lakhs. It is time Mercedes follows the lines of BMW in making this vehicle available for the individual buyers.

Fortuner brakes raise fears, being replaced for free

Toyota has a tough time to halt the ongoing flaw in the brake system of Fortuner [images] SUV. The company is on the foray of replacing the brake kits and there is no talk of total recall. It is to be remembered that some months back, Toyota has to recall its premier brands for one flaw or other. The replacement is not a compulsory one but at the choice of the customers. Fortuner coming out of Toyota plant after Feb 2010 are trouble free but the ones preceding them are replaced at free of cost. It is estimated that some 180 customers have complained about this brake flaw. The company’s Indian Dy MD claimed that there is no panic that the cars are just replaced with the brakes unlike total recall. The company, he asserted, is more concerned about the safety of the customers.

Toyota does not see any infringement of fault, as these sort of problems are quite common and core to the business. The replacement will be covered under warranty coverage without any financial burden. Fortuner has brought some good fortune to Toyota as the sale, since the launch in August 2009, has been 8000 units in India. This has made the vehicle as the country’s best selling SUV. The company has pulsated this 2 tonne vehicle to the minds of customers. And the move to fix the brake fault and to replace it free of cost has brought in more credentials. Toyota has been in the blues as it had to recall its 8 million cars (which accounts more than five times of the net car sale in India). The premier brands among them are Corolla [images], Camry [images], hybrid Prius and SUV Lexus and the problems included accelerator pedals and brakes.

Fortune favours the brave Toyota

Toyota has understood its position well and in a bid to resist the overwhelming bookings it has to suspend the bookings for Fortuner [images] in India. The step coincides with Toyota Kirloskar already scheduling the suspension due to flaws in the brake kits of the car. Toyota no longer intends to make the customers wait – some times even for six months- and the process has begun to clear the backlogs, said its Deputy MD. The bookings will resume after July.

The car came to roll down last August and ever since then the response has been fantastic. The net sale as on the date is 6500 units and there has been an increase in the production to 950 units a month. With 6000 booking still pending for clearance, the company plans to resume the booking when the situation eases to make the wait period to three months. The service point of view to 220 customers having the problem in brake on individual basis is another reason. Some customers prefer switching to MUVs from sedans, since the brake for this 4-wheel drive car is somewhat different from the normal vehicles.

The company made it clear that the rectification is not a recall but improvising the existing brake system. Toyota has a good niche over its hybrid car Prius, and the target, amidst the current booking of 80, is 200 units in the country. Prius is Toyota’s best selling hybrid and proving to be an ideal car with alternative fuel. Prius is imported from Japan as CBU at a waiting period of 3-4 months and an order for 200 units have been made. These vehicles will be delivered on month wise dispatch with already 12 units being on the road. There are two variants of Prius – Rs26.55 lakhs and Rs27.86 lakhs.

The luxury Sedan BMW 5 Series launched in India

The astonishing high class stuff, new BMW 5 Series [images] made its debut in India. The highly fascinating giant brings the driving pleasure by two petrol variants – 535i and 523i and two diesel variants – 530d and 525d.

The afresh BMW 5 Series is splendidly crafted by incorporating innovative technology and it sparkles in Oyster / Black, Black / Black, Vento Beige / Vento Beige, Oyster / Oyster dark and Cinnamon Brown / Black color combinations.

The ex-showroom prices of BMW 523i, BMW 525d and BMW 530d across India are Rs 38,90,000,Rs 39,90,000, and Rs 45,90,000 respectively. The new Sedan provides supreme driving experience with dynamics and motoring comfort.

The new BMW 5 Series Sedan is entering the market with the world’s first straight-six petrol engine with Twin Power Turbo, High Precision Injection and Valvetronic (225kW/306hp) in the BMW 535i as well as straight-six petrol engine in the BMW 523i (150kW/204hp). The latest generation of straight-six diesels featuring an all-aluminium crankcase and common-rail direct injection develop 180kW/245hp in BMW 530d and 150kW/204hp in BMW 525d.

BMW 523i and the BMW 525d is outfitted with 8- speed automatic transmission while BMW 535i and the BMW 530d boasts 8-Speed Sports Automatic transmission with shift paddles on the steering wheel. The 523i, 525d and 530d will be produced at the BMW Plant Chennai. The 535i will be available as a CBU (completely built-up unit) and will have an ex-showroom price of INR 58,00,000.

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