Two becomes too raceal for M&M

The exit of Bajaj from the scooters production reflected the new horizon for M&M to launch two scooters in September 2009. The logic behind Bajaj’s move is quite surprising that if the bike market does not feed, the company’s venture with cars too can be in alarming mode. The scooter segment of M&M at $6.3 billion found the launch of Mahindra Rodeo and Mahindra Duro, both depicting salient and novel features suiting the likes of new and LCV riders. The price of these scooters- Rodeo Rs41299 and Duro at Rs38299 both ex-showroom Pune.

M&M has thus fulfilled its commitment made a year ago about the launch of classy scooters hitting the global standards and the concept of rugged and tough. Analysts feel that scooters do not deserve tough and rugged feature, which are expected of bikes. The launch of these two scooters build a new customer segment by offering style, power and thrill found in bikes.

The trend is moving towards the electric scooters for which there is no need for license. M&M boasts these scooters with its R&D efficiency and quality control, Taiwan’s Sanyang Industry’s techinology and Italy’s Engines Engineering’s design expertise.

Honda to replace Power Window Switch of City

Honda Siel Cars India today announced that it would call back 8532 units of 2nd Generation City , manufactured in 2007, for a preventive part replacement of Power Window Switch.

HSCI is proactively replacing the part in these vehicles related to the potential problem of smoke coming out from the Power Window Switch if water enters the driver window when window is left open during heavy rain or is exposed to any other liquid due to spillage.

The replacement would be carried out free of cost and the company will communicate directly with the owners of the cars which are covered under this part replacement.

HSCI is carrying out the part replacement as part of a global exercise by Honda Motor Company to ensure stringent quality standards for its products. The 3rd Generation City , currently sold in India , is not affected and does not require any part replacement. Honda further clarified that the global recall does not impact the Honda Jazz sold in India . The recall announced by Honda applies to 1st Generation Jazz and does not apply to the 2nd Generation Honda Jazz, which has been sold in India since June 2009.

Mahindra Scorpio set to enter US market

This quarter will see the entry of M&M into the US market with its Scorpio. The President of Auto Sector said that the company is fully geared to meet the US demands and the process of regulatory approvals are getting into the picture. Navistar, with whom M&M has made a JV for making commercial vehicles in India will assist the US deal for M&M. Scorpio will be exported as fully built to the US till the production operations begin in the US.

The marketing will be through a distributor who has got a chunk of 300 dealers. The sale will begin in April-May this year and will vie against Ford and GM in terms of fuel efficiency and cost. The sale in the domestic market for utility vehicles was 1.5 lakhs with a 46% growth but is handicapped by insufficient supply of components to meet the demand.

This resulted with a loss of production to 5% during October-December and this downfall is likely to continue till March. The position may become feasible in April. Two more vehicles- Maxximo the truck and another heavy truck will be available in the Q4 of 2009-10 to expand the domestic market of commercial vehicles.

Ford on small car spree

The launch of Figo by Ford has nothing to do with the intensive launches of small cars. The company proposes to introduce compact cars in a phase of every 12-18 months till 2015, to become a prominent volume player in the small car segment, said its President and MD for India. Ford realizes that 80% of the car segment is constituted by small cars in India and Ford could not afford to slip its identity in this sector, he said.

As a result, Figo would compete with Maruti, Hyundai and Tata in this segment with an anticipated 1-% growth would be good for the small car market. He said that Figo is certain to appeal the customers with its interior space, technology, safety and entertainment. The car will have 1.9lit petrol engine and a 1.4lit diesel engine in a row of four variants. The sale volume of sub-B was 950000 units at the growth of 18% in the last year which is expected to reach the million mark this year. Ford likes to share a reasonable amount in this year’s volume, with Figo offering the not-seen before features in this segment.

Figo was started on trial production in September last and test drive has already started and the formal launch may be in March this year. This premium hatchback segment is to have more funs from VW(Polo) and Nissan. Only thing that would be a bone of contention with Figo would be its cost and the PMD is confident that it will fit the class for its brand. The engine facility of the company started production and the target is 2.5 lakhs per year. The export market is to be identified for engines probably ASEAN regions. Figo too would be exported once it is fully established in India, he said.

GM makes a bid with Spyker

General Motors is on the verge of disposing its Saab unit to Spyker Cars NV of Dutch to thwart the decay in the damage to the Swedish car maker. The deal will involve $74 million in cash and $326 million as shares, subject to the guarantee of 400 million euro European Investment Bank Loan(on expiry in February). The move resulted with the bankruptcy of GM which is noted for its brands- Pontiac, Saturn and Hummer- being branded as extinct giving way for Chevrolet, Buick, GMC and Cadillac.

The deal would make 3500 jobs survive at the production unit Trollhaettan. Saab got the bidding from Genii Capital(a tie-up of Formula One tycoon Bernie Ecclestone); another one from the group led by the former Swedish PM Jan Nygren and one more group of Merbanco Inc. the earlier bid was from Swedish Koenigsegg Group AB with the back up of Beijing Automotive Industry Holding Co but it shelled out $200 million for purchase of technology from Saab.

The company was having its historical trace in 1937 with the aircraft concern Svenska Aeroplan AB. In 1947 the first car was rolled down till GM secured 50% of Saab in 1990 and the subsequent complete take up in 2000.

Tata to ride safe on LCVs

To revive its vigor in the auto industry, Tata Motors has chalked out its plan to focus on new range of commercial vehicles especially trucks and buses. By possessing 60% of market share in the LCV segment, the company is intending to create new platforms in India for pleasing the domestic and new markets. The vehicles that the company will concentrate may be 3.5-9 tonnes.

All these vehicles will replace the existing 15 years old Tata-407, Tata 609, Tata 709. The new ranges will be designed with the technical assistance from the Korean Daewoo. One such model- Prima in the 25-49 tonne- has come off recently. Similar range with airconditioned cabs, common rail diesel injection engine meeting BS –IV norms will roll down in April.

The new ranges will take the customers to the next level of technology. Tata has tasted sale volume of 27% increase(2.18 lakhs) during April-December 2009, backed by the government’s relief measures. 2008 was a bad phase in LCV segment- a fall of 50%- till the recovery phase in the said period of 2009. (sale of 3.52 lakh units). Tata can now easily take on its competitor Ashok Leyland (known for its U-Truck) and other new ranges and another truck maker Eicher Motors.

Toyota sets the parade of its portfolio in Indian cities

Toyota’s Etios is slated for roll out in December 2010 and in the period interfering, there will be much focus of Toyota’s range in 10 select cities in the country. Toyota Q world(representing Quality), as it is termed, will showcase all the models of Toyota in Chandigarh, Lucknow, Pune, Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata and Kochi. The move is the replicate of the one mooted in the recently conducted Auto Expo in New Delhi, said the company’s DyMD. The entire range of its products will be paraded in a space of 3000 sq.metre in each city for the benefit of those who missed the Expo in Delhi.

The effort may involve a lot of logistics measures, but Toyota is keen on focusing the Etios to be refined on the basis of customer feedback on the existing models. The company may get the pulse of the customers’ needs from the display of Innova, Fortuner, Land Cruiser Prado, Camry, Corolla Altis and Prius. 800-L coded as the Etios event, will be represented by top brass officials and engineers from the company (Japan and Thailand). These personnel will have an air of what the customers really need from their units.

Etios is to be crafted to match the market potential of Maruti, Hyundai and Tata. The further climate is from GM(Beat at Rs3.4lakhs) and Ford (Figo), Volkswagen(Polo). Though might be a latecomer, Toyota feels that its entry in this segment with Etios will yield the desired result. The car will come from Bangalore unit in December 2010 and be marketed in January 2011. Coming under sedan version the car will have 1.5 lit petrol engine with the normal version to have 1.2 lit petrol engine.

Ritz gets export status to SE Asia

Maruti’s winning streak with its models continue as its Ritz is slated for export to South East Asia. This follows the success sprint of A-Star in Europe and by now 500 units of Ritz have been shipped to Indonesia. The car, with its 1.2lit petrol engine, will now be targeted in the potential market of Indonesia.

The idea is mooted after reviewing the success story of A-Star- one lakh units exported in December- being sent over to Europe, Phillipines, Taiwan and Hong Kong. Both these models will focus the significance of Maruti’s stature to overseas market and will transform India as Suzuki’s overseas hub for compact cars. In Indonesia alone, Maruti has got a good stint with 11145 cars of several of its portfolio.

A stupendous feat from Maruti

Maruti Udyog Ltd could achieve a tremendous performance in production, that even its parent Suzuki is made to lag behind it. In 2009, the net production volume was 9,66,399 units whereas Suzuki could muster 908302 units. This made the net sale volume of Maruti to 967581 units – 836893 units in domestic market and the remaining being exported- which surpasses Suzuki’s. the major boost came from the flagship brand A-Star and in the domestic market Alto lists top with 2.4lakhs, WagonR with 1.4lakhs.

Maruti is leading the market with its portfolio of M-800, Omni, WagonR, Swift, Dzire, A-Star, Ritz, SX4, Gypsy, Grand Vitara and Eeco. To increase its sale volume for the future, Maruti has shelled Rs1700 crore at Mansar plant which will produce 2.5lakhs units per annum by 2012.