Mercedes in a bid to offer complete range of E, C-class

2010 seems to be a busy year for Mercedes as it has chalked out to launch a whole range of E, and C class car before this year end. To vie against BMW for wrecking the top slot in Indian market, Mercedes likes to play its trump card with 350V6 and 350CDI, said the company’s Director in charge of sales and marketing. The beginning of 2010 marked the launch of 250V6 and E250 CDI BE. In a span of 20 days Mercedes launched 6 models of which 4 are instant, two showcase models and yet another range of models in the offing.

Mercedes had to succumb to BMW in the effort of retaining the top slot in the luxury car segment. In 2009, BMW could sell 3619 cars against Mercedes’ 3247 cars. The company justified its slippery on product cycle issue as requisite number of kits could not be provided for E-class- 686 against the demand for 1000kits of CKD. In C-class it could muster 1600 cars and the Pune unit looks after assembling the imported kits. The market share of Mercedes is 38% while BMW secured 40% with Audi completing the circle.

Sedans carry the torch of popularity

Close on the heels of triumphant passage of compact cars, the sedans are likely to bloom. The major players like Toyota, Skoda, Nissan and Honda are recharging their strategies towards sedans. The small car projects seem to bring in returns after 2-3 years and hence the parallel platform of sedans from these car makers. Thus, the volume will increase and their presence will be focused on growth.

The A3 sector witnessed a growth of 11% in April-December 2009 after selling 190000 cars. Of course, there is still a variation in the demand between compact cars and sedans. The sedan market is widened by the premium car makers like Maruti (Swift Dzire)and Tata(Indigo CS) with their entry-level sedans at Rs3.75-4.91lakhs. further, the segment has other brands like Ikon, Fiesta from Ford, Aveo from Chevrolet, Linea from Fiat, SX4 from Maruti and Logan from Mahindra Renault. Tata enhanced its identity with Indigo Menza as a semi-luxury sedan.
A concept based compact sedan from Toyota is in the air which might replicate Swift Dzire around Rs4.90-5.5lakhs. in a span of one year, Honda is likely to launch a sedan at Rs5 lakhs, to gulf the gap between the small car and City sedan. The company official revealed that sedan will be one among the new ranges of compact cars sharing the even platform.
Similar atmosphere prevails in Nissan(mid-size sedan) and Skoda (lower than Octavia but higher than Fabia). Skoda is on the process of introducing a small car lesser than Fabia’s cost. Skoda has identified two prominent segments in India, B and C class, but the company likes to stipulate with small car. Its sedan will be under C-segment and new small car will be lower to Octavia.

REVA on lease part

Reva electric of Bangalore has started doing franchisee business to yield growth in its volume. The receptacle for electric cars worldwide made Reva to concentrate on this strategy. The result is its association with Fiat’s plant at Sicily. According to the company’sofficial the company is on the look out for vulnerable partnership and exemplary funds thereby mooting regionalization. The confirmation is yet to be made on the proposed bid to acquire Fiat’s plant (making Fiat Panda and Lancia Musa) along with a Sicilian Financier.

However, there was an earlier move by Fiat to close the plant on cost saving as it brought a loss to the tune of 100 Euro per car. The initiative endangered the fate of 1400 laborers apart from 1100 indirect employees. The move will go ahead despite protest from the employees. Efforts are on from the Sicilian government to opt solar energy in place of oil.

A three-point charter mooted by the govt was- creation of manufacturing facility for electric cars, infrastructure for such cars(battery manufacturing, charging points, service and spares) and providing a back up company to offer uninterrupted power supply.

Harley to assemble bikes in India

Having failed to achieve the relief of import tax from the Indian government, Harley has now started to grease its move of assembling bikes locally. The bikes will be made in the US and dismantled to be imported to India as CKD kits. These kits will be assembled again in India. The bikes in this form may be rolled down in April this year if everything goes off well including dealer network.
There may be 12 models through 5 dealers across the country, said the company’s MD for India. The company is on the explorative mode for all possibilities in the Indian market. the price range of these models will be Rs695000-3495000 including 80%import tax and other taxes. The assembling of bikes would procure a saving of  50% tax. VW does this for its Audi A4 and A6 at Skoda’s factory.  The companies like to relieve the customers by assembling the vehicles in India.
Harley’s position is sorrowful in its homeland hence the strategy to migrate to India. Its entry got delayed to Indian government’s emission norms for 500 +cc bikes. The exchange of accepting emission norms for bikes with 800+cc was made as an offer to the US on lifting the patent on Indian mangoes. This made many giants like Honda and Suzuki to come out with high-end bikes at Rs12lakhs +.

More products from Fiat

The Italian car manufacturer Fiat has started fueling its market by launching more products in India. The move is to meet the changing atmosphere in  the Indian scenario, said the company’s official responsible for International Operations. The target segment is small car which has been on the rise in the Indian market and Fiat’s idea is to introduce car with 3.7-3.8m long at Rs3.5-4 lakh.

Cars less than 4 meters long with 1.2 liter petrol engine and 1.5lit diesel engines constitute the major segment in India by availing excise duty relief of 8%. Hence it is no wonder that major companies opting this small car for their main business. Fiat’s small car will be available in another 2 years to be delivered from it Ranjangaon plant in Pune in association with Tata Motors.

Currently the company is in the field with its Grande Punto and Linea as the small car is aimed at boosting the sale volume. With India as a base for cheaper mode of vehicles the products will be exported to major countries like South Africa and East Africa apart from  ASEAN segment.

The Fiat’s move will envisage new strategy for more business which has already started paying the dividends from its Kurla plant by Uno. This car had already received bookings of 3 lakhs and is in stiff competition with Maruti Zen. But the hiccup in production shattered the business much by which Palio could compensate.

Now Fiat is concentrating more on more dealers and providing an entirely new driving experience. Fiat is more comfortable with its association of Tata and having sensed the base of India, it is time now for revamping its foothold. The small car will be a blessing in disguise for Fiat, as the volume may surpass the expectations.

Skoda

Skoda, the constituent of Volkswagen, is devising a strategy to roll out the cheaper version of its Fabia with VW Polo preceding it. The same yardstick will be applied for SUV Yeti (2-lit diesel engine) to be followed by a small engine and petrol version. Skoda is modifying the Fabia with less features and reduced prices to meet the emission norms from April1. The company officials like to bear the brand torch of Skoda, acquired from VW.

There are possible stream of brands-Passat, Jetta and the Superb and Laura. Both Polo and Fabia to have major chunk of localization allowing the cost benefit to the customers. Skoda has no plans to involve in new small family cars, equivalent of A Zero Zero in Europe (similar to Maruti 800). Skoda has let VW to concentrate on this sector as a partner of Suzuki.

Two cars from Volvo this year

In a bid to capitalize on the growing luxury car market in India, the Swedish car maker Volvo is planning to introduce two cars this year-XC60 SUV and  S60 sedan in a gap of six months. The MD for India Volvo declared that the cars would push along the market irrespective of the sale volume. The imminent venture will be establishing more dealers in places like Ahmedabad, Bangalore, Goa and increasing the product range in the country.

In the Q2 of 2010, there will be a diesel variant of S80 sedan in  addition to the current petrol S80, XC90SUV. The sale volume of Volvo in 2009 was140 against 90 in 2008.  The operations in India will in no way be connected with procurement of Volvo vehicles by Zhejiang Geely of China (mooted by Ford)

Skoda

The Czech car company Skoda is getting its car for India in LPG version and Greenline engines, capable of low emissions and upgraded fuel efficiency. Aura will be the first to get the LPG which will be factory finish with an optional petrol version. With no time bound venture, Skoda’s Fabia will also be covered under LPG version. In view of this, the unit at Aurangabad will be facelifted with necessary technology.

By this, Skoda will be bracketed with Maruti Suzuki(WagonR and 800), Hyundai (Santro and Accent), GM(Spark) and Tata’ Indica Xeta. Skoda is fully geared to meet the Bharat Stage IV norms, to be implemented from April1. Its Greenline engines are set to emit less carbon dioxide than ones in practice. Skoda believes that its footage is a timely one. The company is capable of fitting the greenline engines for all its models as the feedback in Europe is promising. Further, the dealership network will be increased from 65 to 75 across the country.

GM looking at selling 5,000 units of Chevrolet Beat

General Motors targets to shell 5000 minimum units of Beat in the most potential Indian small car market. the  company’s VP revealed that the northern segment of the country would comprise 40% of the small car sector(which in turn accounts 80% of four wheeler segment ) accounting 1600-1700 units of Beat per month. The vehicle has successfully underwent all sort of test drives and will be delivered in a couple of weeks.

Beat will be available in three variants- Beat PS(Rs3.34lakhs), Beat LS(Rs3.54 lakhs) and Beat LT(Rs3.94 lakhs) and is Powered with 1.2lit petrol engine it comes in 7 shades. The car is slated for launvh in 170 countries of Europe, Asia and North America. Also in the offing is commercial vehicle under light vans and pick-up vans.