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The sales and production of cars in China crossed 12 million in all these 11 months of 2009, said the Association of Automobile Manufacturers of China. With three more weeks in December remaining, it is expected that the figure may cross 13 million. This is the first time that China crossing the 10 million number in a year(the record created only by the US and Japan earlier) and this feat is attributed to the state’s boosting incentives on economy lines.

This mark is attained amidst the global downfall and China had not become the victim of any such threat. The world needs more cars from the Chinese market, that November 2009 alone yielded a sale of 1.35 million cars. Shanghai Automotive Industry, China’s biggest carmaker, found a sale of 2.44 million cars in 12 months starting November 2008 (means an increase of 50%). The overall sale in the car segment is due to the flexible tax benefits mooted by the government, including the old cars. This made China to overtake the US in number of domestic cars.

The government is assuring its commitment to the economic relaxation, its macro economic policy. There will be measures to boost the trade and benefits to the customers. This comes amidst the fear of clamping down of prices on property and share prices. However, there is no instant threat as the prices stood at steady level with the Shanghai Composite Index rising to 15 points (0.5%) @3,331.9. the meeting of the government on economic policy has relieved the investors from any threat or danger.

GM is on the recovery zeal

The downfall in the market has not shattered the efforts of General Motors in recovering from the bankruptcy. The company now sees the Indian market as an ideal platform to regain its strength and is on full swing mood. The immediate point is to reach the target of 2 lakh units in another two or three years. The move comes in the wake of releasing new products like Beat, LCVs and mini cars with the tie-up from the Chinese Shanghai Automotive.

After a massive bail out from the US government, the company has not spared any moment to let lose and this is the time for it to restructure the movements. Already it has established a good show in China with a partnership from SAIC and the next step is to stabilize in the potential Indian market. According to the company’s GM for India, the end of 2009 would see the sale of around 70000 units which would be 1 lakh by the same period next year followed by 2lakh in 2012. By the time, the portfolio would be filled with varied products, he said.

To reach these marks, the company has designed new ranges – Cruze sedan (launched in October @Rs10.99 lakh which is lesser than Honda Civic, Toyota Altis, Skoda Laura and VW Jetta). The next giant step is with Chevrolet Beat small car making way to the Spark to be a tough competitor to Hyundai i10, Suzuki Ritz and Swift. Slated for the launch on January 5, the price is yet to be announced and this 1.2lit petrol engine unit may cost around Rs3.5- 4 lakh .

The company depends much on this Beat to upbeat the downfall in the small car segment (70% share in the domestic market).
The company is hopeful of getting a sale of 5000 units per month that would take the cumulative total to 5-digit monthly sales. Beat will be available in diesel version sometime next year. GM is to concentrate on small car segment as already the engine plant is expanded with another facility at Talegaon to produce 1.0lit diesel engines for pushing the Beat.

Hyundai reaches a new hallmark- 25lakh cars

Hyundai Motor India Ltd has a reason to celebrate its feat – the production of 25lakh cars- as the year comes to an end. This includes export as well as domestic market and the unit behind this hallmark is at Sriperumpudur near Chennai. Hyundai began its production back 1998 with Santro, which brought imminent popularity and success to the company, that it has numbered to 15 lakhs so far. In the following year, 1999, Accent came to the fore and followed the suit – on par with Santro, in popularity, to be the only car to have a common direct injection.

Currently portfolio of Hyundai has 7 models among them i10 and i20 being the most prominent. i10 carries over the mantle from Santro for its largest sales figures- 5 lakh- since its launch two years ago. Hyundai has the credit as the small car hub with its small cars being made in India in addition to export market consisting 100 countries. The estimate reveals that out of 25 lakh units made in the Indian unit, 16 lakh were sold in the domestic market with the remaining 9 lakh being exported. Santro, i10, i20, Accent and Getz are the most preferred models for export.

This milestone is one among many feats achieved by Hyundai in the Indian market- creation of the unit at Chennai within 17 months, attaining the status as the second largest car manufacturer (after Maruti) with 150000 cars in just 25 months. The erection of the second plant with a capacity of 300000 units which takes the total to 600000 units per year. According to the company’s Sr VP, this makes them to feel proud to be the second and the fastest manufacturer in the country. The achievement is a combination of both domestic and the export market, thereby bringing laurels to the country, he said.

The 25 lakh mark is the clear example of people’s trust on the quality and performance of the units which ultimately ends up with reliability. Hyundai’s share in the current market is 20.5% and the dealership is in 202 cities along with 275 outlets. Last month’s cumulative sale was a whooping 55265 units. Hyundai has some proposals to increase its base in 125 countries as a bid to divert the export market.

Global Auto Expo on Electrical mode in Bangalore

For the three days- December 11 to13- the brindhavan city will be fluorescent with the auto show from the electrical types. The show will display the vehicles of electric / battery modes, sports and hybrid vehicles. Manufacturers of cars and components belonging to India and abroad, are the main exposers. The show is a good avenue for the displayers – automotive industries, components, service sectors, garage equipments.

There will be an exchange of ideas and views for the development of this unique field – electric and battery means. The event is cosponsored by Automotive Research Association of India, Central Institute of Road Transport and National Automotive Testing and R&D Infrastructure Project. According to Eko vehicles official, the event will prove to be an ideal platform for sharing about the various aspects, especially the up growing need for electric and hybrid automotives.

Suzuki Swift to be redefined by the end of 2010

The role of Swift from Maruti Suzuki is on the trail, that the all new salon is likely to be on by the end of 2010. With the best model life (6years) this fascination first came to the fore in 2004 at the Paris Auto Salon followed by the formal launch in India is May 2005. There is a great need for this Swift to swift its change in a better pace. This is due to its fulfillment of all fantasies in a shorter period than any other similar model.

Termed as the flagship for Maruti in India (better than SX4 or Grand Vitara) there are lot of expectations from this car from all corers. The company just wants to capitalize on the feedback poured on this model and the all new model possesses longer wheelbase than the current one (for more space), resemblance of Nissan 370Z for tail lights, Kirashi-crafted front grille to inspire the look.

Powertrain will be on the lines of emission norms- the Indian built 1.3l G13B is to be replaced with 1.2l K series of the Ritz version, ensuring free drive (but it is not preferable since most people like to have a sporty drive). To meet the Bharat Stage IV norms, there will be a tweak of 1.3DDiS but there is an optional 1.6L VVT (125bhp) aiming for the sporty outlook(Japanese has the desire for 4WD). Suzuki has injected the hybrid system with a capacity of 12 miles on battery power enabling smooth drive even in peak-hours.

Royal Enfield gearing for trans national roads

Royal Enfield, which accrues nearly Rs350 crore out of Rs2000 crore turnover to Eicher Motors, is directing its track to the export zone- Latin American parts like Brazil, Columbia and Argentina. Russia and UAE too comes under the purview, in addition to the current deals in the US, Europe, Australia, Japan, and New Zealand. The proposed export market is earmarked for an increase of the market share by the current 10-15% to 25-30% by 2013, said the company’s GM for sales and marketing.

The company’s target growth for 2010 is 15%, as the growth of the past 3 years stood at 18%. The bikes are illuminated to the high-disposable income segment in India for an assured ‘lifestyle positioning’. The platform of Royal Enfield has 350cc to 500cc engines and there is a balanced 50:50 share in the rural and urban market, said the GM. The current production of 50000 units from the Chennai plant will be doubled in 2012-13 with an investment of Rs65 crore. For the first time in its designing, Eicher Motors has crafted the technique of combining the engine and gear box into a single unit (as in Thunderbird), which reduced 15% mutation of parts in the vehicle. Enhanced fuel efficiency and acceleration is also there.

The company is slating the increase in production –from the current 50000 units to 1lakh – by 2013. This will involve Rs65crore investment in the Chennai plant. The company is not bothered about the decline in the government deal -2%- and there is a scope in the concluding year- 50000 units- against 43298 units in the last year. There are two new models –Classic 350 and Classic 500- fitted with new engines, both costing @Rs 1 lakh. New arrivals with 800cc and 1000cc are in the offing in the future.

M&M

M&M entry into the two wheeler race is accelerated with one more strong build – SYM 125cc- to be ready for launch in 2010. This will be added to the queue of Mahindra Flyte, Mahindra Duro and Mahindra Rodeo in the Indian roads. The bike will be on display in the forthcoming Auto Show in Delhi. The bike will be offering 125cc and 15bhp power, 4 valve, air cooled and electronic fuel injection system. The posture will be unique and distinctive from the likes of Apache, Yamaha FZ 16, and Bajaj Pulsar 150. Other components – tail, doom and petrol tanks- will be in the form of sporty manner. M&M’s presence in the two wheeler market is not as much as penetrating – its scooters run well but not upto the level of Honda Activa or Honda Unicorn.

Shanghai Auto, GM venture will cart in LCVs first

The nexus between General Motors and Shanghai Auto of China on 50:50 basis is to concentrate more on the Asia-Pacific markets starting from India. GM India is identified for a subsidiary with two plants, Halol in Gujarat and Talegaon in Pune would seize to be disturbed from this JV. It is to remembered that Halol has the production capacity of 85000 units while the latter has 140000 units. In addition Chevy brand platform(GM-Reva’s electric version of Spark) is to share the technical support.

According to the president of GM India, there will be a shuffle in the Indian ownership operations , currently hold by GM Corp affiliates in Australia and Korea-under the banner of GM-DAT, would become the partners of the new venture. However, the president of international operations of the company said that the SAIC and GM would like to have an equally shared and owned investment with the Hong Kong base. With GM to shell out the Indian assets(worth $300-$350 million), SAIC is likely to contribute $300 million to $350million additionally for expansion to take the tally to $650 million.

Under the new JV the investment to made by each will be $50 million for the Hong Kong operations. SAIC is basically a Chinese government body and the JV intends to unveil the first product of LCV by 2011, but some analysts foresee the rolling of vans from Wuling. The vans would be 800 cc and is likely to be a tough competitor to Tata’s one tonner Ace and if it comes as a cargo carrier then the competition will be directed towards Maruti Versa /Omni cargo.

In China these vans are provided in petrol version but possibilities are there for diesel versions if the Indian market is initiated. SAIC is keen on introducing low priced cars and utility vehicles into Indian roads solely from its identity. In all, SAIC is planning for a wider range of vehicles, export possibilities and sourcing for funds. There will be LCV, passenger cars and utility cars in that order. GM, for its part, is contemplating on engineering margins and pan-Asian market potential out of this deal, feels the industry.

The Ghost appears with its full Spirit

No need to fear about the ghostly appeal of Rolls Royce that a new saloon the Ghost is on the roads. The model had its proto during the 2006 Paris show and Rolls Royce devised the vehicle at an affordable price! (Rs2,50,00,000). The figures as lengthy as the car- 5.5m and can neither fit into small nor medium-range since there is no firm affirmation for the term affordability. The car, despite its exorbitant cost factor, has several qualities to its worth – as a redefined version of BMW 7-series, the Ghost is built with aluminium spaceframe covering the Phantom for a steel monocoque skeleton.

The choice of aluminum body ensures extra space inside, says the company. The car is empowered to run with a direct injection 6.6lit twin-turbo V12 producing 563bhp @5250rpm and 575lb ft out of 1500rpm. These outputs remind of Phantom yet the car does not beg on any compromise for marketing strategies, said the designer. The wheels are run with an 8-speed automatic gearbox drawn from 0-60mph in 4.7sec. The Ghost has an appeal from all angles and fits in for an extraordinary classical piece and exclusive of Rolls Royce’s reputation. The designer claims that the car would grab customers for its formal look and with innovative door patterns are in store.