Customers face

The wait with the cars, at the snail’s traffic, starts at the delivery itself as companies are facing an uphill task of reducing the wait period. The price too is on the increase, as the demand for cars and bikes is facing a new coloring. Customers have the easy accessibility to buy a car or bike of their passionate choice thanks to easy financing.

This has made the makers to think about increasing the prices by 3-4%- especially by the international companies like Toyota, GM and Ford, followed by the Indian makers. The price rise is due, mainly, to in put cost, price of rubber, steel, metals etc and the appreciation in Yen.

To compensate the margin means, there will be an increase of price in January and in April, when the switch over to BS III to BS IV norms (making much investments). This sort of rise is normal according to the industry people, but this two-fold is rather strange and the rise may be more if there would be any roll down on excise duty.

GM forges alliance with SAIC for Indian business

General Motors has finalized its decision to go ahead with the JV for Indian market and the Chinese SAIC Motor Corp is too willing. The move is for small car projects and will be the next step, after their business in China, for manufacturing minivans and minitrucks for the domestic markets, which is dominated by Tata Motors.

GM is making good show in India with the growth of 65% in November against the last year’s sale by 7118 units. The pact will be a boost for SAIC, which is seeking a foothold in the Indian market and will be an increase for GM’s portfolio. SAIC has since withdrawn its trading of shares in Shanghai for the sake of major asset restructuring and a board meeting on December 9.

The step is viewed as a move by SAIC to stake 50:50 claim with GM (GM has gained a lot in Chinese market this year) which is under the clouds. GM’s sale in China is 1.6million, of course with the JVs, which is an increase of 64% against the previous year and the sale in November alone increased to 109% against the sale in the last year same period.

GM-SAIC pact is a prolonged one, since the latter had a little hesitation for market expansion. SAIC had been facing a good niche in Korean market, which has come to a grinding halt. Now the Indian car market has come to the rescue with the domestic growth of 7.9% in three months upto September. Tata’s September sale grew to 81% in commercial vehicles and 48% in domestic cars. Indian auto market proves to be a gaining fold for car makers, especially small cars and the maker are now in a mood to release low priced cars and trucks. The SAIC pact is yet to be confirmed by GM.

Maruti Suzuki giving shape to small car

Maruti’s eighth hatchback, slated for the Auto Expo in January 2010, is getting final touches. The new small car will roll on for a display for the feedback from the customers said its MD. The car, developed in the existing platform, is likely to consolidate its platforms- from 8 to three , Wagon R, Alto and Estilo, in the coming years. In addition there are two small car projects- YR9 and YE3, under perusal by the company.

YR9 may be the next generation Wagon R to be ready by next year while YE3 will be a new model in place of the outgoing M800(due to the emission norms). M800, on the roads since 1982, will be withdrawn in 11 cities from April in compliance with the Bharat II norms. Though the upgrading of M800 is possible, it will be too expensive and time consuming, said the engineers in Maruti. Both YR9 and YE3 will be fitted with new mileage prone KB series engine.

The 8th hatchback will add Maruti’s stint in retaining 50% share in the market. Hyundai has got only three versons along with i20. Maruti will gradually withdraw some of its cars from its platforms and such cars will be those who do not comply with the emission norms. New models will be replacement for them with fresh design and performance. With Wagon R, Estilo, Alto, Swift, Dzire, A-Star, Ritz, SX4 , M800, Omni and Gypsy, Maruti consolidated its net sale of 429291 small cars during April- November against 356320 units last year (an increase by 20.5%). Maruti has a chunk of 65% small cars in its category.

Discount manure by the car companies to woo the customers

The car buyers can feel happy to carry home the huge discounts offered by certain car companies. The move is to rise or regain the momentum pricked up by the sale volumes. Big shots like Maruti, Tata Motors, Hyundai, Ford and GM are in the list offering the discount in the range of Rs10000 – Rs1.5lakh. in association with the dealers, the companies offer other schemes including incentives, loyalty bonus, cash rebates in order to exhaust the year end promotions.

Some companies are in finishing touch of the schemes for the ensuing New Year sale. The incentives are on the higher side for the smaller models, which move faster. Maruti offers Rs16000 – Rs30000 to A-Star, Alto, Wagon R and Omni. The strange thing is there is no offer for the higher end range like Swift, Dzire, SX4 and Zen Estilo, which have a long wait period. Ford and Fiesta carry a discount of Rs50000 – Rs60000 but there is no discount for Endeavour.

Hyundai’s offer for its popular models like Santro and i10 have Rs25000 – Rs30000 while the scheme is being finalized for Verna, Accent and Getz. Hyundai’s senior VP for marketing said the customers are in a mood to advance their purchase due to these offers.Tata announced the discounts for all its models except Manza and Nano and the range is somewhere between Rs10000 – Rs60000. GM to offer Rs47000 for Spark, Rs70000 for Tavera and Rs1.5 lakh for Captiva. The huge discounts are for slow moving models.

The dealers are fully aware that the companies will increase the price twice – January and April, hence the customers may book now to get the delivery in January for new year registration. The inventory aspect is the highlight of this month as both the dealers and the manufacturers are brushing up it with plant shut downs.

For the car industry 2009 proved to be a most successful year- 10.5 lakh passenger cars in April –October with the growth of 16% with the compact segment like Zen, Alto, Wagon R, Palio, Indica and Santro witnessing higher growth. The momentum proves that the sting will continue for 2009-10 with a growth of 15% and a sale of 2 million cars.

GM to launch Beat diesel, new Aveo diesel, Aveo CNG and facelifted Tavera

Vicky.in Exclusive

Not everytime you see a CEO of carmaker walking down to you,shake hands and dance with you. But Mr. Karl Slym, President and Managing Director of GM India did. But it was not just about dancing, we had a longgggg interview with him on GM India product.. We got exclusive information’s on GM India’s strategies and upcoming products. Mr. Karl Slym also sent an exclusive message to vicky.in readers. The video interview will posted in series soon.. stay tuned to catch Karl’s message.

* Mr. Karl Slym, President and Managing Director of GM India confirmed vicky.in scoop on Tavera faceift. He said that “GM plans a major facelift for Tavera and it will hit the market in 2010”.

* All future GM models (including Cruze and soon to be launched Beat) will have engines running on petrol,diesel,CNG and LPG

* Cruze,Beat and New Aveo will have petrol,diesel,LPG and CNG variants

* GM Beat to have diesel engine by end 2010 – Beat diesel

* GM Beat will have three cylinder version of popular 1.3L Multijet diesel

* GM plans a interim facelift for Aveo in early 2010

* GM all new Aveo might come to India in end 2010 or 2011

* GM’s new Aveo will come with 1.3L multijet diesel engine

* GM has no plans to install diesel engine for spark, Aveo and Aveo U-VA

* GM India to export 20% of total production to other markets

* GM to showcase electric car on spark platform and Aveo CNG at 2010 Auto Expo in Delhi

* All passenger vehicles of GM will come through Chevrolet Brand. Even if, GM-SAIC (Chinese auto major) makes cars in India

* GM might look at co-branding for GM-SAIC commercial vehicles

* GM has no imminent plans to introduce luxury brands like cadillac or Hummer in India

* Mr.Karl Slym denies to comment on 800cc and vicky.in scoop of GM studying the feasability of volt based car for India.

Click here for Chevrolet Beat diesel specifications

Volkswagen launches Beetle and Touareg

The much awaited people’s car beetle and Touareg SUV finally hit the Indian shores.  The New Beetle will be priced at Rs 20.45 Lakhs and the Touareg at Rs. 51.85 Lakhs (all prices ex-Showroom Delhi). Speaking at the launch, Mr. Neeraj Garg, Member of Board and Director, Volkswagen Passenger Cars said, “We are excited to bring this iconic Beetle, to India after its success across the world for decades.” 

“The Beetle is the very first Volkswagen car people remember about; with its unique shape and reliability, it wrote motoring history. People’s fascination for this lovable bug shaped car has made the Beetle one of the world’s most popular cars across decades and Volkswagen is proud to bring its legend into India,” he said.  He further added, “The launch of the Touareg is our marketing debut in the SUV segment. India has a great demand for SUV. The Touareg has been successful across countries and the entry will further enhance our presence in the market.”

Live Pictures from the launch ceremony

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The reversal of fortune for Nano aspirants

The waiting for Goddot is no more. The financial institutions, once vied with each other in distributing the loan for Nano, has reversed its job now- to cancel the loans. The reason cited- long wait! Not willing to pay interest for the unavailed loan, the customers are in the beeline cancelling their loan proposal. This resulted cancellation of almost one tenth of Nano bookings.
The mood in the Tata Dealers too grimed with 10-15% cancellation in recent months. The customers who got the tentative delivery dates of 2010-end and early 2011 are the most irritated. Tata sees no surprise in this regard, as it happens often, as in the case of initial booking for Indica in 1999. They say the cancellation comes from those who are at the tail end of the booking queue.
Another reason cited is malfunction of the car, after a recent incident of fire in three Nanos. The loan scheme for Nano is unique that the interest is levied before the physical delivery of the car, including the booking amount. The finance is released for booking of Nano on 10.50% till cancellation or repayment of the buyer, or till it become the routine car loan. Unless the car goes for hypothecation, the bridge loan will be in effect, which will be the safe mode for the bankers and financial institutions.
For bridge loan, the customer need not pay any interest or repayment till the delivery of the car. The loan may be converted to routine car loan or at the instance of the borrower, it may be taken over by the bank. Industry analysts view this cancellation, arising out of long wait, as a threat to the sales of Nano.
They observe that the customer frame of mind is unstable when the delay is thrust on them and quite naturally would shift to some other car by paying some more amount. Customers opt the top-end Nano(Rs180447) for the price variation with Maruti Suzuki’s cheapest car M 800-Rs1,92,693

The waiting for Goddot is no more. The financial institutions, once vied with each other in distributing the loan for Nano, has reversed its job now- to cancel the loans. The reason cited- long wait! Not willing to pay interest for the unavailed loan, the customers are in the beeline cancelling their loan proposal. This resulted cancellation of almost one tenth of Nano bookings.

The mood in the Tata Dealers too grimed with 10-15% cancellation in recent months. The customers who got the tentative delivery dates of 2010-end and early 2011 are the most irritated. Tata sees no surprise in this regard, as it happens often, as in the case of initial booking for Indica in 1999. They say the cancellation comes from those who are at the tail end of the booking queue.

Another reason cited is malfunction of the car, after a recent incident of fire in three Nanos. The loan scheme for Nano is unique that the interest is levied before the physical delivery of the car, including the booking amount. The finance is released for booking of Nano on 10.50% till cancellation or repayment of the buyer, or till it become the routine car loan. Unless the car goes for hypothecation, the bridge loan will be in effect, which will be the safe mode for the bankers and financial institutions.

For bridge loan, the customer need not pay any interest or repayment till the delivery of the car. The loan may be converted to routine car loan or at the instance of the borrower, it may be taken over by the bank. Industry analysts view this cancellation, arising out of long wait, as a threat to the sales of Nano.

They observe that the customer frame of mind is unstable when the delay is thrust on them and quite naturally would shift to some other car by paying some more amount. Customers opt the top-end Nano(Rs180447) for the price variation with Maruti Suzuki’s cheapest car M 800-Rs1,92,693

Rediscovery of 135 Pulsar- Bajaj gears up

An alarming model from Bajaj- Pulsar 135 @Rs54000- may roar the roads soon and the platform will have the series of 150cc, 180cc and 220cc. this is similar to the (re) Discover of 100cc segment in last July, in a bid to leverage the brand value. For this, the sacrifice was made with the upgrading Platina also in the 100cc segment.
Bajaj is too rejoiced with the penetration of Pulsar ranges in  the Indian roads and this mooted the extension of the product, said its senior director. The executive segment is already showing good moments with XCD and Discover 135. The GM of the company’s marketing section disclosed that the customers prefer brand value to the cc and Pulsar catches them for its sporty outlook.
The company likes to grab some non-sports customer to this segment he said. The distribution of bike market is 65% of executive segment, sports with 17% on which Bajaj intends to capitalize. The trend is moving towards the sports segment and Bajaj does not want to lose time. To meet the demand of the customers Bajaj would like to concentrate on Pulsar and Discover to gain the market share.
Bajaj is fully aware the market trend – the executive segment is dominated by Hero Honda Glamour, Splendor and Achiever; Honda’s Stunner CBF, Shine; TVS Flame and Bajaj’s own Discover 135 (10000 units a month) XCD 135 (5000 units a month). Not withstanding the cannibalization of its own products, Bajaj diverted its focus on the sports segment.
Discover is targeted to the elders while Pulsar is intended for the youth segment, feels the company. Industry analysts have a different view that Bajaj is unlikely to gain out of this strategy. The net left over, out of the cannibalization, would be 15000 units. Pulsar may increase the volume but not the game. The only advantage is the lead in the margin than Discover and XCD.
Bajaj accrues a sale of 5000 units of XCD 135 and won’t affect even it is withdrawn, as in the case of XCD 125. Hence there is a plan to depromote Discover to 100cc and to project Pulsar as its prime brand. The sale of Pulsar ranges in last 6 months has been up by 80% and Q2 average sale was about 45000 units / month against 25000 units/month in the Second half of 2008-09. In sports segment too Bajaj has seen an increase of 50% share.

An alarming model from Bajaj- Pulsar 135 @Rs54000- may roar the roads soon and the platform will have the series of 150cc, 180cc and 220cc. this is similar to the (re) Discover of 100cc segment in last July, in a bid to leverage the brand value. For this, the sacrifice was made with the upgrading Platina also in the 100cc segment.

Bajaj is too rejoiced with the penetration of Pulsar ranges in  the Indian roads and this mooted the extension of the product, said its senior director. The executive segment is already showing good moments with XCD and Discover 135. The GM of the company’s marketing section disclosed that the customers prefer brand value to the cc and Pulsar catches them for its sporty outlook.

The company likes to grab some non-sports customer to this segment he said. The distribution of bike market is 65% of executive segment, sports with 17% on which Bajaj intends to capitalize. The trend is moving towards the sports segment and Bajaj does not want to lose time. To meet the demand of the customers Bajaj would like to concentrate on Pulsar and Discover to gain the market share.

Bajaj is fully aware the market trend – the executive segment is dominated by Hero Honda Glamour, Splendor and Achiever; Honda’s Stunner CBF, Shine; TVS Flame and Bajaj’s own Discover 135 (10000 units a month) XCD 135 (5000 units a month). Not withstanding the cannibalization of its own products, Bajaj diverted its focus on the sports segment.

Discover is targeted to the elders while Pulsar is intended for the youth segment, feels the company. Industry analysts have a different view that Bajaj is unlikely to gain out of this strategy. The net left over, out of the cannibalization, would be 15000 units. Pulsar may increase the volume but not the game. The only advantage is the lead in the margin than Discover and XCD.

Bajaj accrues a sale of 5000 units of XCD 135 and won’t affect even it is withdrawn, as in the case of XCD 125. Hence there is a plan to depromote Discover to 100cc and to project Pulsar as its prime brand. The sale of Pulsar ranges in last 6 months has been up by 80% and Q2 average sale was about 45000 units / month against 25000 units/month in the Second half of 2008-09. In sports segment too Bajaj has seen an increase of 50% share.

Maruti on the defensive strategy

Maruti Suzuki does not want to take any chances to slid its stronghold of 50% share in the market. For this the company has strategically increased its production capacity by 75% in the next five years. This means, responding to the market demand, the increase of production would be 1.5- 1.75 million passenger cars, by 2015 said the company’s MD.
The strategy would enable the company to retain its supremacy of 50% share in the entire market fold of around three million by then. By the end of this fiscal year, the capacity would be increased to one million cars by the time the Manesar unit will be ready. The investment of Rs3000 – 4000 crore, will be ratified by the apex board in Japan in January. This will enhance the production capacity to 5-7lakh units. If materialized, this will be the next high amount after the 2006 investment of Rs9000 crore.
Though the proposal is getting finalized, the increase in production will be on the phases. Manesar plant has an area of 600 acre of which two-thirds are idle, in which the company plans to erect two units to produce 600000 cars. Maruti Suzuki thrives to remain in the forefront by shielding its 50% share amidst the tough competition in the small car industry.
The industry has a net 80% market in which Maruti dominates respite the grave threat from Nano, and the promising potential of Toyota, Honda, Volkswagen and Ford. Maruti, an offspring of Suzuki, is promoted by the Indian government and has been on the rise with the entry to every nook and corner – rural and urban markets- with its all around ranges.
Maruti’s stint in April-November period witnessed a whooping 30% hike (6,46,139 cars including exports). Currently, Maruti has been striving to penetrate the export market – 140000 cars by this year, including 1lakh A-Star hatchbacks. The boost came in the form of scrappage scheme in the European market- exchange of cars- and the scheme is nearing the end. On the other side, Suzuki is fishing outside the European shore- Australia, South America, Middle East and South East Asia (Thailand and Malaysia).
The company seeks to shell out 150000-200000 units of export which includes Nissan, by 2010. Nissan and Suzuki are in an agreement to build 50000 A-Star for Nissan entirely for the European market on the lines of Nissan Pixo. The company is fully aware of the risk involved in the agreement despite the business volume , said the MD. That is why the company is restricting its OEM to Nissan with 100000-150000 units a year.
Apart from the existing two plants- Gurgaon and Manesar- the company plans to erect another one in Manesar with a production capacity of 300000 units per year. An investment of Rs130 crore has been made for additional production capacity in Gurgaon – from 80000-90000 units to 8 lakh cars a year. Gurgaon designs Alto, M800, Ritz and Swift petrol while Manesar takes care of Dzire, A-Star, SX4 and other models.
A proposal to shuffle the models between the plants is also under consideration, said MD. Manesar may get the production of Ritz diesel, as the unit has the powertrain for diesel, so is the case with Wagon R.

Maruti Suzuki does not want to take any chances to slid its stronghold of 50% share in the market. For this the company has strategically increased its production capacity by 75% in the next five years. This means, responding to the market demand, the increase of production would be 1.5- 1.75 million passenger cars, by 2015 said the company’s MD.

The strategy would enable the company to retain its supremacy of 50% share in the entire market fold of around three million by then. By the end of this fiscal year, the capacity would be increased to one million cars by the time the Manesar unit will be ready. The investment of Rs3000 – 4000 crore, will be ratified by the apex board in Japan in January. This will enhance the production capacity to 5-7lakh units. If materialized, this will be the next high amount after the 2006 investment of Rs9000 crore.

Though the proposal is getting finalized, the increase in production will be on the phases. Manesar plant has an area of 600 acre of which two-thirds are idle, in which the company plans to erect two units to produce 600000 cars. Maruti Suzuki thrives to remain in the forefront by shielding its 50% share amidst the tough competition in the small car industry.

The industry has a net 80% market in which Maruti dominates respite the grave threat from Nano, and the promising potential of Toyota, Honda, Volkswagen and Ford. Maruti, an offspring of Suzuki, is promoted by the Indian government and has been on the rise with the entry to every nook and corner – rural and urban markets- with its all around ranges.

Maruti’s stint in April-November period witnessed a whooping 30% hike (6,46,139 cars including exports). Currently, Maruti has been striving to penetrate the export market – 140000 cars by this year, including 1lakh A-Star hatchbacks. The boost came in the form of scrappage scheme in the European market- exchange of cars- and the scheme is nearing the end. On the other side, Suzuki is fishing outside the European shore- Australia, South America, Middle East and South East Asia (Thailand and Malaysia).

The company seeks to shell out 150000-200000 units of export which includes Nissan, by 2010. Nissan and Suzuki are in an agreement to build 50000 A-Star for Nissan entirely for the European market on the lines of Nissan Pixo. The company is fully aware of the risk involved in the agreement despite the business volume , said the MD. That is why the company is restricting its OEM to Nissan with 100000-150000 units a year.

Apart from the existing two plants- Gurgaon and Manesar- the company plans to erect another one in Manesar with a production capacity of 300000 units per year. An investment of Rs130 crore has been made for additional production capacity in Gurgaon – from 80000-90000 units to 8 lakh cars a year. Gurgaon designs Alto, M800, Ritz and Swift petrol while Manesar takes care of Dzire, A-Star, SX4 and other models.

A proposal to shuffle the models between the plants is also under consideration, said MD. Manesar may get the production of Ritz diesel, as the unit has the powertrain for diesel, so is the case with Wagon R.

Car and Bike Magazines in India

Though we have a plethora of Online Automobile magazines and portals in India, Offline magazines with the usual magazine layout come with exciting pictures, variety of information and ‘next-month-what’ expectations! [more informations….]

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