We often are prone to tiring flat tires on Indian terrains with almost all our roads feeling like off-road terrains. This condition is bound to improve only when our infrastructural parameters meet new heights and standards! [more info…]
Volkswagen-Suzuki to roll out Rs 2.5-lakh car in India
The glimpses of low-priced cars is bright in India with Volkswagen is bearing the torch to roll down Rs2.5 lakh car, ideally associating with Suzuki. This will materialize when the Alto is put under the shed by Suzuki in India. Suzuki is keen on finding a replacement for Alto, which was once an alternative for 800 and the price level is to be at the entry-level for the affordable Indian customers.Suzuki does not want to lose the dear and top selling model.
Under the new pact between Suzuki and VW, the latter will have 19.9% stake worth $2.5 billion and will involve in producing small cars and electric vehicles common to both brands. From the European market point of view, the new car will cost $4000-5000 and will be the cheapest car (still much below VW’s Up @ $8800). VW has been in the search for a car below than its Up in India and the timely tie-up with Suzuki is likely to yield this.
This will add charm to VW’s Polo slated for release in next year to vie Suzuki Swift and other premium hatchbacks like Hyundai i20. VW doesn’t bother about the rise of Nano but will keep in mind the rise of M800 which is to be withdrawn in 11 cities from April (in abeyance with emission norms). The pact will have much impact on Tata Motors in the rise of Indica Vista and Indigo.
The reason being the amalgamation of multi-technology, product architecture and product development between these two companies in adopting the diesel modes for the cars. The deal will pave way for both companies to share common platform by which VW will utilize the plants of Suzuki in Japan as well as India. VW wants to enjoy the privilege exhibited to Nissan in sharing the manufacturing plant of Maruti Suzuki in India.
VW will avail the major share in small car segment in India ($4000-5000 / 2000-2500 euro) while Suzuki will learn the diesel technology from the German maker. Presently, Suzuki employs the diesel technology derived from Fiat under the tri-partnership among Suzuki-GM and Fiat. Both companies, however, will have separate identity for marketing the vehicles, with VW only availing the technical know-how from Suzuki. VW will be the next big automaker to General Motors with 20% stake, to have this kind of deal with Suzuki. The total contribution from Suzuki’s profits comes from India (80%)during the first half of fiscal with an increase of 33%.
The net turnover for Suzuki has received a sum of 20% from India during this fiscal half. This sort of pact are not policy decisions. Suzuki’s stake in the Maruti Suzuki tie-up is 54% thereby the policies are framed by the management. If at all any change is to implemented, the apex body has the mandatory power. Hence there won’t be any damage to the functioning of Maruti either thro GM nor through VW.
Bajaj on division factor
With the downfall of its scooter segment, Bajaj has chalked out a strategy to run the show on different platform. It has divided its product range to four divisions and accordingly, the brand Bajaj will be with the Indian domestic and sports bikes; the brand Boxer will be for the European and export markets like Africa and Brazil (Boxer range is currently made in China); this Boxer brand will be no more in Indian operations.
In addition, all commercial vehicles will be under a new term ‘Re’ indicating the rear engine which has been popular in three wheelers. The premium brands will bear the KTM brand. The proposed practice is akin to Toyota which is brand for cars and Hino for trucks.
In India, Bajaj retains its position as the largest in three wheeler segment and with that brand value tries to capture the light CV vehicle segment. As already mentioned there will not be any more scooters and will be focus on Discover and Pulsar; the notable Platina and XCD are earmarked for the export market. In addition, there will be a new version of Pulsar with low engine capacity to vie against Hero Honda and TVS.
Bajaj to quit the scooter race
Bajaj’s withdrawal from the scooter segment won’t shatter the industry, feel the analysts. It is to be remembered that Bajaj has decided to see the way for the exit from the scooter industry, following the sale debacle with its Krystal. It is quite strange that the pioneer in the scooter with the popularity cult of Hamara Bajaj has to surrender to the situation meekly. The other makers are sitting pretty with their sale showing good prospects. Even the new entrant to the scooter sector, M&M has been showing good stint.
The figures available through SIAM adduce the fact. The sale proceeds in the period of April-November are available (the figures for the last year are in brackets) Honda Motorcycles has a good stint with the sale of 452641 units (447177 units at an increase of 1%), TVS has a selling total of 200164 units (166518 units with an increase of 20%), Hero Honda Motors with 127701 units (91957 units at an increase of 39%), Suzuki filed a remarkable growth even in less numbers 77663 units (55130 units at an increase of 41%), the new entrant M&M got the sale of 29778 units this year.
But the sad state of Bajaj with just 3356 units (7876units at a decrease of 57%) compelled the company to think over continuing in the scooter industry. Bajaj, on the otherhand, is to focus solely on motorbikes with its Discover and Pulsar producing enormous results taking the company to the second largest in India with the growth of 12.4% by selling 1085785 units. However, HMSI could muster only 1.2% in the last 8 months while retaining the 50% share in the motorcycle segment.
TVS the next largest maker, could get 23% of the market share. The reason that Bajaj is least bothered about the withdrawal of scooters is that the current trend points towards the scooters on feminine sector. It is no longer the domestic vehicle but the women’s vehicle.As Rajiv Bajaj took over Bajaj’s supremacy, he shifted the focus on the bikes especially the higher end.
This is because it has higher margin and higher value and has the prospective growth of 17-18%. The TVS CEO has somewhat different view that there is a growth for scooter segment and he informed the launch of a new 110cc Wego’. With the increased production at Manesar plant HMSI plans to concentrate on scooters and is on the verge of launching new models said its CEO.
Maruti to launch new WagonR in March 2010
Update: Checkout our Maruti New WagorR 2010 special Slideshow
Update – 2: Maruti 2010 Wagon-R specifications, features, variants and colours
You read it first at vicky.in
Maruti is preparing for a slew of launches in 2010. The new omni called Eco, Swift with 1.2L petrol engine, new WagonR and SX4 diesel. You read all about new Eco first at vicky.in months back, now we give you an exclusive scoop on new WagonR. The new WagonR will be based on the same platform as the current one but lot of changes would make it lookalike a new generation car. The new WagonR will get a Bharat IV compliant KB series engine. The new WagonR will be powered by Bharat IV compliant 998cc KB series engine developing 67PS(50KW) of maximum power at 6200rpm and 90Nm of maximum torque at 3500rpm (the current WagonR powered by 1061cc engine developing 64PS of max power and 84Nm of max torque). The new KB series is exactly the same engine which powers the Maruti A-star. Along with the launch, Maruti will roll out a CNG variant of the new WagonR. Apart from the new engine, the new WagonR will get styling changes both in exterior and interior. The exterior changes include an all new headlamp,new front fascia and new tail lamp styling. The new headlamp helps the WagonR to shed its boxy look and extend it life term. On the interiors, the new WagonR will get an all new instrument panel. The new dual tone interiors will help in boosting the sales of India’s 2nd largest selling car further. New WagonR will also come with ABS and airbags. The new WagonR will hit the showrooms by March 2010.
Pictures of new WagonR launched in Japan last year. Maruti will bring the new design to Indian market with the launch of new WagonR
Volkswagen grabbed 20% stake in Suzuki
Volkswagen sees every reason to be Number 1 in world car making. Hence the bid to sweep $2.5 billion from Suzuki is no humbug. VW’s vision is to dominate the Indian market first and for this a JV has become a must for every auto maker. The market is wide, technology is rich and offers are aplenty. Then why should VW not mend its wall?
This is not the first such case- PSA Peugeot Citroen (France) and Mitsubishi Motors are drawing the pinnacles for coming together. This created the trend for overseas companies to target the Japanese auto giants for reorganizing the segments. Under the proposed deal, Suzuki will shell out half the volume into VW shares to have a back up for the world no 3 maker thereby receiving shares of 3.5 in the least Japanese market.
The strong hold of Suzuki and the equally share of VW in Germany are making the honeymoon. VW runs its show in China as the number one and the world’s largest auto market like China will offer Suzuki, the technical know-how for electric and hybrid vehicles. The association between VW and Suzuki will see an emerging trend in compact cars in the Asia region.
VW has a large platform with its Audi, Skoda, Seat and Porsche and this induces the company to eye on the number one spot by 2018, provided Suzuki backs up every move. Till June 2009, VW sold 3265 million cars while Suzuki could muster 1.15 million; the combined figure, 4415 million units would supercede Toyota’s 3564 million, it is estimated. Suzuki’s earlier stint with GM @257 billion for 20% stake lost the due importance.
The nexus between PSA and Mitsubishi is seen as a failure but this one between VW and Suzuki will yield much prospects, it is expected given the current situation in India and China. The overseas companies look upon India and China as the compensatory regions for the downfall. The JV between GM and SAIC is a long one, for 12 years, and it is the longest and successful partnership in the world of automobiles.
Meanwhile Suzuki received some good news that the shares of Maruti Suzuki India rose to 3.8%.The alliance between Renault SA and Nissan is oxygenated after 10 years to yield some good results. The sale of Chrysler (out of bankruptcy) with the tie-up of Italy’s Fiat SPA has come to a frozen state, since the Chinese companies prefer brands from GM and Ford.
The recent JV between VW and Suzuki will certain to benefit the latter by providing cash-on and pure technology. A threat has started between Ford and the Japan’s Mazda, as the stake has dropped by 11%. However, Mazda could resist with a refined $1 billion share fund for developing hybrid technology. The futuristic fuel-efficiency and emission norms set for 2011 would add much to the Mazda’s stake.
Toyota to unveil small car at 2010 Auto Expo
Toyota Kirloskar Motor Pvt. Ltd. (TKM) announced today that it will display 14 production and concept vehicles at the 10th Auto Expo in Delhi to be held at Pragati Maidan from January 5 to 11, 2010. Emphasising Toyota’s commitment to the Indian market, and denoting its biggest strengths ? superior quality and advanced technology ? the theme of the Toyota booth is ‘Quality Revolution’. More than 2,200 square meters (Hall no. 6) will be used to display a diverse line-up of products, and more importantly the much awaited ‘world premiere of the compact car’.
Apart from the current product line-up, the Toyota booth will also display its futuristic technology in the form of concept vehicles, and hybrid vehicles to highlight environmentally-friendly technology that the company has pioneered. Mr. Sandeep Singh, DMD-Marketing, TKM said: “The Auto Expo in Delhi is the most ideal platform in India to highlight our new product range that will showcase Toyota’s technological advancement and innovation. We are very excited about unveiling the concept of our compact cars that have specially been developed for the Indian market. The Toyota brand display at the 2010 Auto Expo will reconfirm our commitment to the Indian automotive market.”
Honda’s global bikes may ride on Indian parts
Honda Motor Company has found out a source for sourcing its components, in the Indian sectors. This will cover the big, global and small bikes. For assembling the bikes in Japan, the components will be derived from the Indian players according to the company sources. The changing trend in big bikes especially price is the main factor for sourcing the components from low cost countries.
Further, newer factors like fuel efficiency by way of electric and hybrid modes also necessitated this. Honda is no exception to these hassles in the business and has to gear up for the future with light weight vehicles. India is chosen for its robust supply strategy in terms of quality and price. These component vendors fill in the slot quite genuinely in the domestic market, as seen in the rise of Splendor and Passion from Hero Honda.
Honda is currently assembling its bikes from its Kumamoto facility, from which fuel-injection components for bikes as Glamour and Stunner are delivered. There was a display for the journalists at the R&D centre, of VFR 1200 F dual clutch transmission motorcycle. The vehicle offers both manual and automatic transmission to the riders.
For Honda, Europe will be the first target for next year, followed by the US, Japan and China. Brazil will be added in 2011; Russia will continue to import from Europe. For VFR 1200F, China will be the potential market, said the company official, despite the copyright complication(China is quite known for copyright menace). Japan has reached the saturation point for bikes and hence the alternative areas shall be explored.
India has not come for appraisal for this VFR 1200F due to the price (may cost Rs20 lakh after whooping 100 %taxes). Honda Motorcycle is doing business in motorcycles by importing CB1000R and CBR1000RR (@Rs10 -13lakh). This will be added by VFR 1200F for brand building.
The world market seeks automatic transmission and hence Honda has immediately responded to it, said the company official. The features of these bikes shall resemble those of sports cars, he said.
Honda launches CB Twister
You read it first at vicky.in
The much touted Honda’s commuter bike is here. As you read it, Honda is launching the CB Twister in Delhi.CB Twister powered by a 110cc engine. The engine develops 9bhp of maximum power at 8000rpm and 9Nm of maximum torque at 6000rpm. CB Twister comes with 4-speed transmission (1-down and 3-up). Honda claims CB Twister returns a mileage of 70kmpl. CB Twister 110cc comes with tubeless tyres and the styling is based on CB1000RR. CB Twister will be available in three variants – CB Twister kick start,alloy wheels and drum brake, CB Twister Electric start,alloy wheels and drum brake, CB Twister Electric start,alloy wheels and disc brake.
Built on a diamond frame, CB Twister weighs 108kg. It is 1.9m long, .74m wide, 1.075m height and comes with a ground clearance of 180mm. CB Twister uses 240mm disc brake at the front. Suspension at the front is telescopic fork and at the rear is coil spring. Tyre at the front 70/100 -17 and at the rear is 100/80 -17. Like other Honda products, instrumentation is analogue. It also lacks tachometer, LED tail lamps and gas charged suspension. An analogue speedo and fuel gauge forms instrumentation. CB Twister base variant is priced very competitively Rs42,000 (ex-showroom Delhi). CB Twister will be available in five colours – pearl nightstar black,pearl fuji blue, pearl amber yellow,candy sonic green and pearly siena red. CB Twister 110cc will be available only from February 2010.
For more details and pictures visit http://www.vicky.in/slideshow/honda-cb-twister-pictures/
Car workshop on wheels
The car owners hereinafter need not panic for sparing their vehicles for servicing. Carnation comes to their premises for servicing with its ‘Workshop-on-Wheels”. There will be 150 mobile stations by 2010-11 said its CMD and will offer convenience and cost reduction. The service will taken care by 10 pilot vans in 6 cities; this will be increased to 50 by this fiscal end and to 150 by March 2011. For the company it is economical, relieved from infrastructure expenses, but will be more expensive by 10% than the auto hubs.
For the service, the tie-up is with 3M and Castrol for car care, preventive measures, car detailing, repairs in terms of electrical and mechanical.The company has proposed to have a multi-brand service outlets to be doubled by the end of this fiscal. The target group will be professionals, women and aged. For this service and multi-brand service outlets the company has sought the financial assistance from Punjab National Bank for Rs170crore.
The services offered in this Workstation on wheels will cover 60% of the service centers, said its CMD. Carnation is already in the automotive business with the sale of pre-owned cars from three units. One more is in the offing, said the CMD. In the last month, the company serviced 6500 cars which brought imminent success with the increase to 25-30% every month. Carnation is to expand its business to car insurance, and multi-brand dealership for new cars.