Five new CVs from Bajaj

With the formal launch of two new commercial vehicles recently- RE145D and RE445M, Bajaj is set to roll down a net 5 new commercial vehicles. In all there will be 17 products in this platform with no time bound launches. RE 145 D has the option of CNG, LPG and petrol while RE445M is exclusive diesel version. Two vehicles are in the offing for this Quarter, with the increased capacity- 40000 units from 35000 units- in Waluj plant, said the company’s CEO for commercial vehicles.

The investment for expansion of these platforms is Rs15-20 crore. The current FY for Bajaj may romp home an increase of 15% with the export market to Srilanka, Egypt and Nigeria tolling to 168000 three wheelers. The installation of separate production facility for three wheelers overseas is highly depended on the feedback. However, the proposed increase in motorcycle production in April is 3lakh units –(3.6 lakh) and 4 lakh three wheeler units per year. The company has come out with an aggressive R&D unit at Akurdi in Pune with the expansion plan on the cards.

Export market for Indian cars to face downhill task

The attractive incentive offered to the new cars in Europe has been withdrawn indicating a slid in the export market for Indian cars. Additionally, the car makers in India have focused themselves in domestic market as a result of contented demand and expanded production facilities. Yet, some of the models, Hyundai’s i20 for example, are ideally fit for export markets. In 2009-10, the export of passenger cars was 446146 units an increase of 32.9%. Of these, Hyundai’s and Maruti’s cars comprised 433233 units which indicated a hike of 12.8% for Hyundai (285658 units) and double growth for Maruti (147575 units).

Of late, India has been given the status of a hub for small cars despite car makers finding it difficult to cope the demand in domestic market itself. These companies are keen on retaining their share in domestic market rather than on export market. Hyundai has come out with its proposal to migrate its i20 to Turkey, while Maruti Suzuki is contemplating such a proposal for it’s A-Star. All through the FY 2009-10, Maruti could secure its dominance in small car segment with 50.1% followed by Hundai’s 20.6%.

The European incentive scheme is likely to be withdrawn which will definitely hit the export market for Indian car makers. Hence the search is on for alternate markets to boost the net economy, said EO for Maruti Suzuki. Currentlly, the company is chalking out its strategy to feed the domestic market with the production capacity of 640000 units per year. This is expected to rise by 12-15% in FY 2010-11, said senior VP of Hyundai India.

Two wheeler sale reaches a new milestone in 2009-10

The sale of two wheelers in March was 1 million taking the net toll in the fiscal to 10 million (10.5 million units). The sale in 2009-10 increased by 24.52% than the previous fiscal(8.4 million). The motorcycles dominated the net figures with 77-78%, scooters forming 15-16% and the mopeds rest. All these sale figures have made India as the stiff competitor to China(largest twowheeler maker with 15-16 million bikes). China has an edge over India in terms of electric bike, that India is yet to step ahead. The momentum in coming years too will be high with economy too surviving the recession. TVS feels that India has been a grossly under penetrated market, with Indonesia having its penetration to 30/1000. Bajaj anticipates that the penetration of two wheeler would be around 30% in another ten years.

Tata moves to higher range Nano- Rs 3 lakh

Resisting the success rate of the world’s cheapest car Nano, Tata Motors is stepping next to the Rs3lakh bigger version of Nano. The car is targeted at the customers who can throw Rs3lakhs and the car is code named as Dolphin. It will lie between Nano and Indica Vista, powered by 800cc – 1.0 lit engine. Falling below Fiat’s new small car it may hit the roads by next two years. If it happens, then Tata will fill in the void created by it in the compact car segment. This segment constitutes 50% of the net share and Tata’s entry might not be too late, say experts.

Tata may achieve its desire in this segment with its winning capacities in terms of price and brand equity. Much depends on the response from the rural sector, for increasing the sale in the car industry. The expectations of the rural customers are – durable, long lasting and low cost cars- which Maruti and Tata alone are capable of fulfilling. In the event of this car getting shape, then it would be an exit gift for Ratan Tata. As there would be no hitches on the lines of Indica and Nano, the timing is the crucial issue, which would be the litmus test for Tata.

General Motors on the pact with two agencies for biofuel

General Motors has come into terms with the Indian agency Central Salt and Marine Chemicals and the US Department of Energy for developing iatropha as bio fuel. The spread of this fuel depends much on the commercial success. The concept is to transform the iatropha, a strong weed, as significant oil producer capable of becoming a biodiesel.

The pact will be valid for 5 years and meant for exploring other variants of fuel from any other plants. There will be two farms at Bhavnagar and Kalol in Gujarat at 33 hectare and 20 hectare area respectively. This includes 30hectare iatropha farm owned by CSMCRI at Bhavnagar. The cultivation of this drought-resistant, non-edible plant is easy and has harmless impact, compared to sugarcane and corn.

GM India’s President and MD declared that in case of this iatropha failing to yield the desired result, the company will think of adopting to biodiesel capable products. If the iatropha becomes commercially viable, then the India need not depend for imported oil. There will be enhanced greenhouse effects and economic growth. Iatropha has become a promising feedback and an alternative fuel in India. The tripartite JV will focus on lab-optimised promotion of iatropha. The usage of cellulosic ethnol is inferior compared to iatropha. GM is exploring the possibilities of bio-based diesel alternative fuels.

Tata faces red from the deceased customer

The pride of owning a Nano could not last long for the customer whose car faced fire. He was at some solace when he received a refund amount Rs2.25 lakh from Concorde Motors( the whole subsidy for Tata Motors) who sold the car. By settling the bank loan by this amount, now he feels that he seeks more compensation –Rs15 lakhs- as the gratia for his family’s and his mental agony. As Tata Motors is least bothered about the issue, he now plans to approach the legal forum for his redress. In the meantime, he was asking for a comprehensive report about what happened to his car. Tata Motors is yet to respond to him.

Yamaha clears the deck for entry-level bikes

With the instant triumph with the launch of FZ series bikes some two years ago, Yamaha Motor is polishing its mind to focus on entry-level bikes. This bike has the 50% market in India and is the stronghold of Hero Honda with 75cc-125cc engine. On April 14, the company is launching YBR, a 110cc bike followed by the SZ 125cc during the later part of 2010. With the current 3% share in the 9-million unit two wheeler Indian market, Yamaha is eyeing to increase its share to 10% by 2012.

The company is craving new models on phases to have steady growth . the present ranges are Alba, G5, Crux of entry levels. These are not good enough to romp home the credit as RX100(of the 1990s). the competitors, Hero Honda, Bajaj Auto could offer better bikes with fuel efficiency for the same price. Yamaha gets the due sale of its bikes from FZ series(by 50%)- FZ-16, FZ-S and Fazer. Its 125-250cc ranges do better( which comprise 23% of the net sales).

The high-end bikes are meant for metro cities only and the new entry-level bikes might help Yamaha reach the nook and corner of the nation. To avail this, the dealership volume would be increased to 1500 from the current 1100. The company has, by now, cleared the decks by redefining the flaws of the past- low volumes, sales and service. On the lines of Hero Honda, Yamaha too rides to the semi-urban and rural segments to boost the sale volume.

Yamaha can survive in this entry-level market, if the past flaws are totally wiped out, said an expert of the industry.

Ambassadors to get new ambassadors to brand them

The sale pinch of Hindustan Motors is immersing to its all time low – 800 units in April2009-February 2010. The sweet diligence of the company Ambassador is worrying a lot that the net share of the company in the car market is as low as 3%. Hence the company is eyeing on launch of Mitsubishi range of cars. Another jolt to the company is the exit of HM’s MD (who came from M&M some six years ago). The situation has not made any hue from the owners – GP Birla-CK Birla group.

There will be more models of Mitsubishi (Lancer Evolution X called as Evo X to quote one) along with new variants of Ambassador. Evo X deems to be a complete sports car, reminding its presence in the fast buster movie Fast & Furious. The company is not bothered about the volume of this fancy car but is more concerned with the contemporary recognition. There should be the brand recognition for Mitsubishi in India.

Evo X will come with 4 doors, 5 seats and a 2.0 lit, 280bhp, 16valve, 4 cylinder petrol engine – all these make it more powerful than the current engines. The salon is a CBU taking along 110% import duty. In addition there is an SUV Outlander and Pajero Sport slated for April and October respectively. The Outlander, to cost Rs20 lakhs, will be sportier with 2.4 lit engine, inspired by the Outlander GT. The company is too happy that all the 100 units sent for display at multiplexes and malls have been sold out.

Put together, the company aims to fetch the sale volume of 6000 units during this FY, an increase of 2000 units from the last year’s 4000 units. Mitsubishi is intended to import the global electric car MiEV in another 3-4 years. Before that infrastructure will be erected especially disposable battery, in place of charging units. Currently Ambassador is manufactured at Uttarpara plant in West Bengal while Mitsubishi ranges are crafted at a plant near Chennai. HM is now on the revival phase, as demand for taxis is increasing after the recession. The company is evolving a strategy to provide uninterrupted supply of cars. By selling 1075 units in March, the company is able to meet the demand by 90%.

While the demand exceed by 1000 units a month, the company is aiming to reach the figure of 1200 cars a month. HM has a niche of volume – 65% of Rs5 lakhs mid-sized sedan are sold as taxis; 20 % of the production goes to the government agencies and the domestic consumers constitute the rest. Similar to other car makers, HM too in the verge of undergoing the transition to BS IVnorms- LPG variant.

Though the car will pose the same old look the engine will be powerful and more efficient. This would mean an increase of price by 15%. Ambassador Grand, the CNG variant is slated for the next year and is expected to hit the roads in large numbers, to become the most sought after tourist car in India.