Hyundai to counter Maruti 800 in 2011

The rise for the demand of domestic cars, Hyundai is set to counter Maruti 800 by releasing a new compact car. The car would cost as much as the range of Maruti 800. This car will be crafted in Korea with an800cc engine and will be a petrol variant at a cost around Rs2 lakhs.

Maruti 800 MPI BS-III with A/c costs Rs216475 lakhs, Santro costs R271331 lakhs. In between Santro and i10, the latter has become the highest selling and secured a mass for it. This will rise in the global range too, it is expected. Nissan too in the fray for the small car segment in association with Ashok Leyland. It is to be remembered that Renault-Nissan-Bajaj trio is also working on a small car at the low cost. Recently Ford has introduced its American style Figo at Rs3.66 lakhs.

Volkswagon to scale up production in next three years

Volkswagen has fixed a new scale for the next three years of production in its Chakan plant. The information from the Member of the Board of its Passenger car division said the domestic need will be taken care of fully by sidelining the export market. VW sees a good response to its new launch in India, Polo. Soon there will be 5 dealers for VW in the country- Vadodara, Surat, Rajkot, Ahmedabad and the new one Vapi. VW further sees a growth in its sale due to the policy norm of the Government’s budget. The sale of VW in India in 2008 was 1564 units and in 2009 it was 3039 units.

Eko Vehicles (India) and Lootah Group (UAE) ink a pact

In a view to promote better commercial market in auto industry, Eko vehicles of India and Lootah Group of UAE have signed a deal pact. Under this pact there will be movement of solar car and solar boats, which have much prospects in the Gulf, region said the CEO of Eko Vehicles. He expressed the belief that the tie-up with Lootah Technical Centre will pave way for effective knowledge, successful product range and services. The network of Lootah is viable and the association will make the logistic mastery in the Gulf region, said its Deputy CEO.

Hyundai to raise prices in April

Hyundai is certain to raise its price, by Rs5000, from April, said its regional sales manager, quoting the shifting from BSII to BS IV norm. the increase, second after the Central Budget, may be in the range of Rs4000-Rs5000 and the customers need not worry about the rise as they will not be wholly burdened this rise. Hyundai is also exploring the manufacture of small cars for India in Korea, at the capacity of 800cc.

series of cars is on the prospect from Hyundai- the first one will be Santa FE in the SUV @Rs20 lakhs. The Chennai facility is capable of delivering 6 lakhs cars annually out of which 3.2 lakhs are for the export segment. There is a proposal to shift the manufacturing unit of i20 from Chennai to Europe. As such there is no word about the launch of i30 in India while i10 remains the highest selling car among the Hyundai products.

Two wheeler makers on the high spirit

The Indian two wheeler is already jam packed with vehicles from the three Musketeers- Hero Honda, Bajaj and TVS. The trend now forces them to increase their production-a minimum of 1.5 million – to meet the demand in another two or three years. On the higher score Honda Motorcycle & Scooter is on the verge of Greenfield effect. Setting apart, Hero Honda’s tally of bikes is 5.4 million per annum delivered possibly by two shifts from its three facilities. Closely followed by Bajaj’s capacity of 3.9 million from its three facilities but the capacity that of TVS is barely two million units.

The global recession or slowdown had no impact on the two wheeler market. The industry saw the growth at 15% per year which clearly indicates the need of 1.5million annual units. Hence Hero Honda has already started its search for land to install more facilities by increasing the production by 0.75-1 million units. This is further confirmed by the MD of Hero Honda at the Auto Expo. The company seeks to set the go on 2000 units a day while Bajaj is gearing its Pantnagar facility to increase the production- from 80000 to 120000 units. Bajaj’s stint in the last fiscal was an increase of 85% (191036 units in addition to the export figure of 77642 units @53%). Bajaj is set to form a new brand manufacturing unit by 2012. TVS intends to increase the production mainly for the export market.

Bajaj Auto targets sale of 4 million bikes, 3-wheelers in 2010-11

Bajaj’s target for this FY will be 4 million two wheelers from 2.9million, a 40% hike in its growth. Of this, export may constitute one million which too may find the increase from 900000 units of the last year. This fiscal may see the EBITDA (earning before interest tax, depreciation, and amortization) to cross 20%. Bajaj was able to achieve this through the cost control measures and strategies at the time of increase of commodities.

The MD of Bajaj said that Pulsar and Discover bikes are to be continued in the next fiscal to carry over the sale of the last three quarters. From the paltry 55000 units up to the Q1 of 2009-10, the new sale was possible through Discover 100 DTS-Si and the Pulsar 135. The sale crossed a new mark of 200000 units as on date. Discover 100 DTS-Si took the market into surprise ever since its launch in June 2009 followed Pulsar in December.

Discover brands mustered sale of 100000 units comprising 135cc and 100cc while the Pulsar(135cc, 150cc, 180cc and 220cc) has brought the new mark in sale. Both these brands took Bajaj to have a double digit share in the two wheeler market- 35%- and it may reach 40% given the sale momentum. Platina and Boxer are in the race but without any profit for Bajaj. The company has been making a good stint in the export market too and the coming years seem to be promising. The tie-up for KTM Austria and Kawasaki will enable the overseas penetration to reach the lands of Europe, ASEAN and South America. Bajaj is launching a new model bike in the next fiscal and may be on the lines of Discover, it is learnt.

BMW clocks the hope of big targets in pre-owned car sales

The world reputed German car maker of luxury segment, BMW is setting its foot towards a more growth in the pre-owned car sales. It estimates to attain a growth of 30% in India through new dealerships for its BMW Premium Selection. Starting this April, the company wants to install its brand image thereby attaining this 30% growth, said its President for India. In 2009 BMW overtook Mercedes-Benz in the country’s luxury car segment by selling 3619 units against the latter’s 3247 units.

The target for this year is 4000 and the first dealership for Premium Selection will be launched in Chennai and the next will be in Gurgaon in Q3 of 2010. He further added that without anytime scale there will be increased dealerships for this pre-owned car business in India and there will be a new coloring for this venture. But the cars under this category should have been of post-2006 production. The engineers and technicians of BMW will certify the bona-fide of the cars so that the new buyers will get a sort of warranty.

In all these three years, BMW has sold out 8000 units in India and the current focus is on the new ownership through this old car deal. This means that the segment which cannot afford Rs20 lakhs will also have an access to luxury. Moreover, the time limit for a luxury car usage from 5-6 years shall also be reduced to 3-4 years, he said. This new venture will bring in new wisdom and new horizon among the customers over BMW, he remarked. The Premium Selection business is already in practice in Europe, Russia and the US. To enhance the business, BMW has started its finance wing, BMW Financial Services to come into effect in June-July 2010.

Once the clearance is received from the RBI there will be full throttle in this section. This will be headquartered in Gurgaon and take care of the entire insurance and finance solution for the buyers. The company’s investment in this Financial Services will be USD 50 million for a period of two years. This service will be available for other cars too and will have a separate identity from the European Bank.

Jetta, Passat To Get New Engines

Come April 1 there will be busy schedule among the car makers to meet the Bharat IV norms on emission. Volkswagen has devised to replace the engines in its Jetta and Passat. In addition to this brief modification in engine, Jetta will undergo in the shape of grille, bumper and the hood. The existing105bhp PumpDuse will be dispensed with due to the noisy performance. Instead, there will be a 2.0lit 140bhp PD to meet the Stage IV norms.

In the Jetta there will be a 16-valve 2.0 common rail turbo diesel engine. This 1968 cc common rail diesel engine will produce 139bhp to expand the VW stylish salon. Yet, Jetta will not be fit with DSG twin-clutch transmission due to its exorbitant cost. Instead there will be manual transmission only. Passat will go ahead with the 2.lit common rail diesel which Jetta will soon share.

Petrol version will also be there and turbocharged direct injection 1.8lit petrol found in Skoda Laura. Though not on par with 177bhp Accord, this direct injection powerplant is capable of yielding 25.5kg torque from 1500rpm. By this Passat will have the pick up of 0-100km within nine seconds. Hence the pricing will also be on par with Honda Accord(Rs20 lakhs).

Skoda to fit new versions of diesel for Laura and Superb

Skoda has finally decided to infuse the new models Laura and Superb with the diesel engines found in its Passat and Jetta. To facilitate the Bharat IV norms this engine will replace the Pump Duse which is ready for phase out gradually. The existing engine in Laura is from the two – 1.9 TDI and 2.0TDI-will be no more and there will be only diesel motor found in German Superb. This new diesel engine is capable of giving more fuel efficiency and performance. Skoda intends to take advantage in the luxury sedan segments. Price will be let known in due course.