Reva to assist Mahindra

Reva Electric Car company is on the verge of entering the fora of many big shots. First it was General Motors and now Mahindra is getting a nod for its tie-up for technology. This will follow the exit of US based Global Environment Fund and Draper Fisher which gives its stake to M&M. the final outcome is to be confirmed by both companies. Another bidder Autocar India is on the wait to receive the feedback from Global Environment Fund and Draper Fisher. These companies have shelled out 10 million dollars in Reva car making. M&M likes to 51% stake in the event of deal materializing. The deal will further M&M’s strategy on alternate propulsion technology. Whereas Reva is readying for its next model and the trial production will commence in this year end.

Nano to be the ferry for Taj Hotel service

Nano is to get another identity by way of it becoming the official ferry for the guests accommodating in Taj Hotel. Thus it will also become the best choice for the biggest hospitality chain in Asia. Nano thus will join Jaguar in this regard. Tata has found way as the world’s cheapest car and has induced interest among the world’s best car makers to involve in this small car segment. The senior VP for IHCL stressed the long term affinity between the company and Tata Motors and the current insertion of Nano is one such.

However, the induction of Nano into the hospitality chain is in anticipation of the customer’s request. The demand may increase or arise once Nano becomes popular in overseas and it may take one more year to realize the demand. IHCL has the strong line up of Tata Indica, Mercedes-Benz S-Class, Toyota Camry, Honda Accord and Honda City. In addition there are Tata Indigo, Tata Sumo and Tata Safari. The hotel’s ferry service includes fetching of guests from airports, railway stations and meeting points. A year’s time from now will display a clear picture about Nano’s presence.

After motherland, it

The successful launch of Nano last year has prompted the company to seek its recognition in the US, Europe and Africa. It has become the talk of the town that the first buyer of this world’s cheapest car is full of pride. He is one among the 25000 probables picked out of 1 lakh bookers. To please the bookers, Tata is in the process of increasing the production by having two units – Uttarkhand and Gujarat. The net production will be 5 lakh units and the current production at Pantnagar is 70000 units per annum.

The car is believed to be cheaper than Maruti Alto, and has made a deep impact on the minds of world’s car makers to go in for their part. Hyundai is squeezing its brain to shell out small car with 800cc engine ,for Rs2lakhs. The tri-JV among Bajaj-Nissan- Renault is working out the small car to counter Nano. These two cars will be the main contenders to Nano during the second half of 2011. Also in the small car fray are Nissan, Fiat, General Motors, Hyundai, VW.

Tata is now facing the cost factor as its own rivalry. The material cost and manufacturing costs are no longer conducive to deliver Nano for the quoted price. This will make the company to hike the price for the next bookings. Further Tata has been in the dark ever since the fire incident to its cars came out and it retarded the electrical suppliers for this flaw. To add fuel for fire, 2 lakh bookers have withdrawn the booking for the delay in delivery.

However, some of the bookers have sold the booking at premium prices. Nano has seen a sort of ebb and low in its pricing and now the steady shot is on. This hicc up has not prevented Tata Motors to think of spreading its arms to overseas market. As its Chairman made it known, the European version of Nano will shortly roll down.

Nano from Sanand may roll out on the land

The mark is perfect. The occasion is ample. The launch of Nano from Sanand in Gujarat’s land will coincide the state’s birth – May 1 1960. The company is on the reciprocity to the nobility extended by the government at the time of crisis in Singur (West Bengal). Tata was fortunate to avail prime land, soft loan @0.1 percent interest repayable after 20 years.

With the official launch yet to be announced, it is proposed to make out a minimum of 250 cars a day. The project got delayed despite the announce made by the Gujarat CM Narendra Modi. It was Tata which made the delay due to the land acquisition for Jaguar and Land Rover. Tata’s Nano is manufactured in Pantnagar (Uttarkhand) at 4000 units capacity. The facility is also in charge of mini-trucks.

The migration to Sanand will involve Rs2000 crore of which Rs700 crore for re-location. To enhance the production here, Tata Motors has asked some 40 auto part suppliers to install their unit nearby Tata’s unit. This Sanand unit will be able to deliver 250000 units of Nano in the event of becoming fully geared up. Further capacity will increase to 500000 cars per year. Nano has been on the roads since July 2009 when 30000 units were launched by Tata Motors. This excludes the booking of 2.03 units in May 2009.

Maruti

India’s premier and the largest car maker Maruti Suzuki has announced the price hike for its vehicles of certain models. The hike, ranging upto Rs10000, is quoted as the consequence of the cost rise in input and the implementation of emission norms BS IV and BS III. The price category for the models are – Rs1000 for Ritz and A-Star, Rs2500 for Estilo and Rs3750 for Swift, Rs7000 for Dzire and Rs9000 + for the sedan SX4. The latest entrant to the MUV, Eeco too faces the hike by Rs10000, released the company sources. The BS III variant vehicles – Maruti 800 and Omni (LPG) too are not spared from the hike- Rs3000- while Gypsy had the rise by Rs10000.

Enlarged period of insurance on the cards for two wheelers

The General Insurance Company has come out with a scheme of long term policy – probably for 3-5 years- for two wheelers. This will thwart the non-renewal or lapse of insurance in the two wheeler segment, said the Secretary General of GIC. The disinterested agents are not in the routine process of renewing the insurance policies on the basis of amount involved –Rs600 to Rs800 per annum. The agents do not get much commission for these premiums. The insuring companies do not take much strain to remind the owners for these policies, but concentrate on cars and costlier vehicles.

The owners of the vehicles too are not serious nor honest to renew the policy. Hence the company has the proposal of long term policy to induce interest and relief for the owners. The statistics released by the Tariff Committee mentions that the number two wheelers insured in 2007-08 was about 2 crore. But the rough estimate of sale volume of two wheelers in the past 7 years amounts to 4.5crore, said Society of Indian Automobile manufacturers. It is estimated that every year 75 lakh two wheelers enter into the Indian roads and during this financial year 84 lakh vehicles have been added to the volume.

Electrotherm mulls India’s first electric motorcycle

The first electric motorcycle, YObyke, operated on battery power comes from the Gujarat based Electrotherm. The company hinted that it is well-equipped to provide drive-train or the battery for these motorcycles in an upgrade level. The electric motorcycle may roll out anytime and the company is relying on its technology rather than the economy. the company has delivered 75000 scooters from 2006, made from its Kutch plant which has the capacity of 28800 vehicles per year. The sale of scooter for the period of 2009-10 is 20000.

The electric scooters are powered by the alpha-weaver technology made indigenously. Previously, the company imported 1 lakh batteries from China. The proposal for the year 2010-11 is sale of 40000 vehicles. The alpha-weaver battery is noted for its increased travel range-70kms to 105kms- compared to the lead acid battery. The charging time too is reduced from 8 hours to 4 hours and weigh lesser by 6kgs than the traditional batteries. The company has 7 electric bike variants out of which two are high-speed variants. Two more scooters in the similar segment are to be introduced in 2010. The company feels that the high speed segment will constitute two-thirds of the sales in another couple of years.

KTM of Austria, known for its $13500 bike Freedie, has made the change in its engine with 30hp electric motor. This motor can yield 43Nm torque at the pick up speed of 43 miles/hr. KTM utilizes a rechargeable lithium-ion battery which will supply power to the motor, capable of recharging in 1.5 hours and run non-stop even for an hour. The market sources believes that there is potential for this electric motorcycles based on the price factor. The cost of these bikes are Rs21000-Rs47000. In 2008-09 the net sale of electric scooters was 95000 and there might be an increase of 10% in it this fiscal.

Customers are to shell out more money for buying cars

With the implementation of BS IV norms in the country, the car makers in the country and the world are at the helm of increasing the price. The hike will be in the range of 0.5- 3% this week in addition to the 2% made last month. The companies justify the hike on the ground of cost in modifying or going for the upgrading of the engines to meet the BS IV norms. The major change in the system is the electronic control unit which sets the motion for the new engine norms.

Hyundai has set the hike, effective 1 April 2010, to 1-1.5% for petrol versions and 3% for the diesel versions. General Motors is increasing by 0.5-1.5% in another two days(except for Tavera), said its VP for Corporate Affairs. Without any specified date or the range , Maruti and Tata Motors are also in the mood of hiking the prices. Maruti is on the anvil of exhausting its M800 in 13 cities coming under BS IV norms. Honda is to announce its hike on 2 April and Toyota is fixing the hike to 1-3 %.

Two wheelers do not undergo any hike as indicated by Hero Honda. The price hike comes in the wake of increase in the excise duty slashed by the government of India in its new budget. The next paradigm is on the shift to BS III from the current BS II, which will come into effect from April-October starting from Goa this month. Thus, the cities of India will be categorized as per the BS II, BSIII and BS IV norms. There should be mingling of these fuel norm which will end up with the decay of the engine, said the officials of Indian Automobile.