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| Wednesday, January 31, 2007 |
| Hyundai launches Free Car Care Clinics in India |
After making a splash in the Indian auto mart with a bevy of beauties, Hyundai Motor India, the country's second largest automobile manufacturer and leading automobile exporter, has unveiled its second Nationwide Free Car Care Clinic campaign.
The campaign aims at extending the advantage of its services and free check-up to a larger number of its customers. The Free Car Care Clinic, which debuted in 2006, this year will be a two-week long campaign, running from January 29 to February 11tat over 310 Hyundai dealer workshops across the country.
According to the company, the Free Car Care Clinics will offer a comprehensive 80-point check-up and a thorough examination of the Engine Compartment, Under-body, AC, Body, Interior and Exterior. Hyundai customers can avail this Free Check-up at any of its 310 dealer workshops across India. Customers can also avail of free car wash and attractive discounts ranging between five percent and ten percent on various parts. Twenty percent discounts will also be given on labour and a special discount on the Emblem. Special discounts are offered on service merchandising like engine flush, anti-rust coating, engine de-carbonisation and car polish, it added.
During the campaign, Hyundai customers will also have the option to test drive any car from the Hyundai stable. The campaign also offers customers a chance to win attractive prizes through a Lucky Draw.
The initiative is aimed at reinforcing the bond with the customers by offering them a comprehensive service package at value-for-cost prices as a mark of our appreciation of our relationship.Labels: Auto Industry |
posted by a correspondent @ 10:26 AM   |
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| India's Automotive Mission Plan (AMP) 2006-2016 unveiled |
India's 10-year Automotive Mission Plan (AMP) 2006-2016 is out. Envisaging auto sector investments of $40 billion, the plan aims at enabling the country as a global automobile player in the next decade.
Accordingly, it would chart out a road map for the government and auto industry to achieve a turnover for the sector to increase to $145 billion by 2016, up from the current $35 billion, accounting for 10 per cent of GDP, said reports.
With India's auto sector exports seeking a raise of at least $35 billion if the nation is to be a substantial player in the global market, the auto sector needs around $40 billion investment. This would ensure employment to about 25 million people by 2016, it has been forecast.
The 25-point plan AMP aims at making India a global manufacturing and export hub for small cars, multi-utility vehicles, two and three-wheelers, tractors and components. Now with the plan being unveiled, the Indian automobile industry too has welcomed the status of a "mission" being accorded to the industry. However, the players have also pointed out the need for consistency in framing policies as the industry required time to follow any changes in norms.
Small car makers like Hyundai Motor have been seeking clarity over the definition of small car, which according to the auto mission plan policy is 3,800 mm in length. It may be recalled that the finance minister had accorded excise reductions to 'small cars' with a length 4,000 mm in his budget last year.
The plan has proposed the creation of a monitoring committee under the chairmanship of the secretary, ministry of heavy industries and public enterprises with representatives from representatives from various ministries, including finance, road transport, environment, commerce, shipping, railways, petroleum and natural gas and human resource development.Labels: Auto Industry |
| posted by a correspondent @ 10:21 AM |
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| Thursday, January 25, 2007 |
| India's Tata Motors on the road to Belarus auto scene |
India is seriously looking beyond the boundary in the automobile front. The latest buzz is that India and Belarus are negotiating the launch of joint automobile production in that country.
The initiative is being effected by the Tatas who have shown interest in implementing such a project, said reports quoting Belarus top officials. Tata representatives had visited Belarus several times and negotiated the project.
At a time when the Indo-Belarus trade ties are booming, the Belarus government is believed to have created a sufficient legal base to advance trade and economic, scientific and technical, and military and technical relations. Many bilateral agreements can be revised to embrace new avenues of cooperation, it has been reported.
The Indian embassy is son to have a permanent trade representative and a military attache is supposed to be accredited, too. In view of the expanding cultural ties, the post of cultural attache may be introduced, reports added.Labels: Auto Industry |
| posted by a correspondent @ 1:12 AM |
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| GM, Ford in race for Daewoo Romania |
Romania's troubled Daewoo Auto is up for grabs. Reports suggest that General Motors and Ford Motor, as well as Chery of China, apart from India's own Tata, have submitted letters of intent to buy the company. The Romanian authorities are expected to decide on the suitor this June.
The buyer is expected to guarantee a minimum annual output of 300,000 units to finally get the company. The Romanian Daewoo currently produces three models, which include a first-generation version of the Matiz city car, the Cielo small hatchback and a Nubira four-door saloon. The kits for al the models are supplied by GM, which took over some of Daewoo's manufacturing assets in 2002. The plant, located in Craiova, off Bucharest, employs 4,000 people and has capacity to build 200,000 cars and 300,000 engines a year.
GM, which has shown interest in the plant, might use it to produce the Chevrolet Spark and its Aveo or Kalos mid-sized car. The company may also produce compact models for Opel.
It may be recalled that the Romanian government had sold 51 per cent of the factory to Daewoo in 1994 but bought it back for $60m in order to save it from closure.
Meanwhile other reports said that GM is mulling over a joint venture with Ukraine's Ukravto also to produce Aveos at Poland's FSO plant, another former Daewoo plant that the US carmaker supplies with kits.Labels: Auto Industry |
| posted by a correspondent @ 1:09 AM |
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| Daimler Automotive Mechatronics Center in Pune, Maharashtra |
The state of the art facility designed to train engineers in automotive engineering has been set up in Pune, thanks to the efforts taken by auto major by DaimlerChrysler India. The institute, known as Automotive Mechatronics Center has been set up in collaboration with the Government Polythechnic in Pune.
This effort is seen as DaimlerChrysler playin the role of a responsible corporate. According to the company, it is committed to enriching the lives of communities it operates in and becoming partners in their development.
The Advanced Diploma in Automotive Mechatronics is expected tomake use of Daimler's expertise in the area and help institutes like the Government Polytechnic, Pune to groom talented youngsters. The course will nurture the engineers and technicians for the future, the company said.
With the demand for technical education on the rise in India, DaimlerChrysler believes that industry-institute partnerships are a must. The Advanced Diploma in Automotive Mechatronics course is a step to offer ready-to-market talent pool to support the growing needs of the Indian automotive market.
India today boasts of being the fourth largest car market in Asia. Over 1.4 million cars were added to the Indian roads in 2006, according to industry statistics.
Besides, on the job front, the auto mart is responsible for the direct employment of over 4,50,000 persons, while over 10 million are indirectly benefited. With growing number of cars on roads and increasing technologies in modern automobiles, there is an urgent need for automotive engineers with knowledge of technologically advanced, modern engines.
The setting up of the institute comes due to the fact that the need for specialized automotive technicians will escalate. An estimated 2,50,000 to 3,00,000 trained manpower will be required in the authorized network within next 5 years, it has been assessed.Labels: Auto Industry |
| posted by a correspondent @ 1:03 AM |
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| Friday, January 19, 2007 |
| Toyota to make a splash with small cars in India, Brazil |
Emerging car marts like India, Brasil, China and Russia will soon see an invasion of low-cost cars from Japan. Auto major Toyota Motor is the company which is planning a low-cost small car, specifically for the emerging markets including India.
The low cost car is expected to be launched by 2010. Reports from Japan's automotive industry said that the car would have a 1,000 cc petrol engine and would cost around $6,500. This would mean that it would be just under below Rs 3 lakh in India and would compete with the Maruti Alto, Hyundai Santro and the Tata Indica Xeta.
It has been a while since Toyota had been planning a small car for markets like India. With the revenues now more from the small car segment Toyota too doesn't want to be left behind. The Toyota vehicles on Indian roads are currently limited to the MPV and premium sedan segments.
Many a newspaper in Japan has reported that Toyota is also looking at an alliance with Ford Motor. The alliance between the two would be limited to development of technology and is unlikely to involve any financial investments.
The global trend is that auto manufacturers are seeking closer ties to bring down costs and stop the decline in margins. Ford is rumoured to be working towards an alliance with Nissan-Renault.Labels: Auto Industry, Toyota |
| posted by a correspondent @ 10:33 AM |
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| Wednesday, January 17, 2007 |
| The length of a small car under dispute - Hyundai wants SIAM to do more |
The length indeed is a problem, so thinks Hyundai Motor India. The car major has called upon the Society of Indian Automobile Manufacturers (SIAM) to urge the government for removal of confusion on the length of small cars eligible for excise duty incentives.
The Ministry of Finance has stipulated that the length of a small car should be at 4000 mm if it is to avail of excise duty benefits. However, the Auto Policy charted out by the Ministry of Heavy Industries says the length should be 3,800 mm. Hyundai in fact is okay with the stipulation of the Finance Ministry and wants that norm to prevail, said reports.
Significantly, Hyundai's small cars are based on the definition of 4,000 mm and stand to lose out on excise benefit if the length were to be altered to 3,800 mm. The Getz could fall out of the category, if the 3800 mm length is made the norm.
The car manufacturer is also rumoured to be irked that industry organization SIAM has made no mention about the issue in its pre-budget wish-list. Reports said that the matter was taken up by Hyundai . SIAM in the meanwhile says that the wish-list submitted to the finance ministry had sought a uniform excise rate of 16 per cent for all passenger vehicles irrespective of length.
The finance minister had in his last year's budget proposals said that the excise duty on small cars were reduced to 16 per cent from 24 per cent. Small cars were defined as petrol cars with an engine capacity not exceeding 1,200 cc and not exceeding 4,000 mm in length, and diesel cars of engine capacity not exceeding 1,500 cc and not exceeding 4,000 mm in length.Labels: Auto Industry |
| posted by a correspondent @ 10:28 AM |
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| Tuesday, January 16, 2007 |
| Tatas eye Daewoo Auto Romania |
The Tatas love making deals. After many a bid worldwide, the group is of late eyeing Daewoo Automobile Romania, say reports.
It has been reported that the Tata group may take on global automobile giants in an attempt to buy Daewoo Automobile Romania. This follows news that Romanian government has put privatisation plans of the company on the fast track.
Reports quoting sources said that the government of Romania had recently set up a panel to chart out an expeditious and transparent auction. Following this, the Tatas would soon begin examining the company, they added.
The group will go ahead with its plans with Tata Motors as its investment vehicle, it is learnt. Daewoo Automobile Romania boasts of a capacity to produce 100,000 cars, 150,000 engines and 200,000 trans-axles.
With such an ambitious base, Daewoo Automobile Romania is considered a good target by many, and the interest from global automobile giants would heat up. This could mean that the Tata group may have to put up an aggressive bid.
Daewoo Automobile Romania makes a range of Daewoo vehicles like the Matiz, Cielo, Nubira and Tacuma, and 1.5 litre petrol engines. It was established in 1994 as a joint venture between the Daewoo group (51 per cent equity) and the government of Romania (the rest). Daewoo was bought over by General Motors in 1999, but the US giant did not take over the Romanian venture. Recently, the Romanian government bought out Daewoo’s stake for $50 million and restructured the $10 million of the company’s debt.Labels: Auto Industry |
| posted by a correspondent @ 10:46 AM |
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| Monday, January 15, 2007 |
| Low-budget vehicles are on top of Nissan Motor Co’s priority list. |
The automaker is on the route to developing low-budget vehicles. The targeted market places are the fast-growing marts in ordemerging economies, according to reports.
Media reports that quoted the Nissan top brass aid that creating an affordable car through alliance with its French partner Renault SA is one possibility. It may be pointed out here that Renault had unveiled the no-frills Logan sedan in 2004 for emerging countries and ended up selling 400,000 units in 51 nations.
With such a track record existing in the name of its partner, Nissan has been studying to develop its own version of such vehicles for fast-growing consumers in India, Russia and other emerging economies.
Though no details of the soon to come vehicle are available, it is being said that Nissan's move comes as its competitors are also gearing to develop their own affordable models for the developing countries.
Signifcantly, Mitsubishi Motors Corp is considering an assembly plant in Russia as a business option in accordance with growing sales in the country. The Rusian media had reported that Mitsubishi is finalizing a plan to produce midsize sedan as early as 2010, possibly in St. Petersburg, through a joint venture with French carmaker PSA Peugeot-Citroen.
It may be noted here that the world's biggest automaker, General Motors Corp had in Octtober called off discussions with Nissan and Renault on a possible three-way alliance. Nissan’s alliance with Renault has a combined annual output of roughly 6 million vehicles, together making them the world's No. 4 automaker.Labels: Auto Industry |
| posted by a correspondent @ 9:56 PM |
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| Made-in-India Getz |
Get an Indian Getz. If reports are to be believed , South Korean auto major Hyundai is lining up plans to completely shift the manufacturing of their Getz car to its Indian plant.
Getz is currently being rolled out of its Korea and India. With the new decision soon to come, Getz production will completely move to India. It is expected that by March 2007, the Indian facility we will start exporting the Getz to Europe from India. The, company, however has no plans to stop the manufacturing of its Santro models in the country.
Besides this, the South Korean auto giant is also mulling over manufacturing its under-development compact car, codenamed project PA in India. The PA would feature new power train and new design.
With the plans expected to be given final shape soon, Hyundai would start exporting both Getz and PA from its Indian plant. It already exports Accent and Santro from the country. Reports quoting Hyundai Motor India managing director HS Lheem said that the car maker has taken a firm decision that the PA will be produced only in India and it will be exported as well as sold domestically.Labels: Auto Industry, Cars |
| posted by a correspondent @ 9:55 PM |
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| Honda goes to Rajasthan |
Honda is to wear the Rajasthan headgear. The Japanese car maker has announced that it will set up its second car plant in Rajasthan. The plant is estimated to cost about Rs 900 crore and will boast of an an initial capacity of 50,000 units.
The company, which operates in India through a joint venture Honda Siel Cars India (HSCI), has signed a letter of intent with the Rajasthan government in this regard. The new Honda plant is to come up on an area of 500-700 acres. According to analysts, the plant is expected to see an investment of $200 million and will be used for manufacturing small cars, currently under development.
Meanwhile, Rajsathan officials said that that total investment of Honda Motors, including investment by the company vendors in the ancillary units would be around Rs 2,000 crore. Apart from the manufacturing unit, the new plant will also have a suppliers park that will house Honda`s network of ancillary units.
Honda has come to Rajsthan for the first time and is expected to play a major role in better industrialization and job generation in the state. Investments are expected to go in the region as a result of Honda’s arrival in the state.
The car major which at the moment has a manufacturing location at Greater Noida in Uttar Pradesh makes sedans like City, Civic and Accord. The UP facility is set to set to see a capacity expansion to 1,00,000 units by end of this year.Labels: Auto Industry |
| posted by a correspondent @ 7:44 AM |
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| Tuesday, January 09, 2007 |
| GM plans Captiva SUV, Maruti to lower Grand Vitara price |
Automobile industry reports say that Maruti might as well localize the production of the Vitara, so that it can brig down the vehicle’s price.
The localization plan is also seen as originating from the need to bring down the total price of the Grant Vitara, which invites huge duties. The car maker could opt for a new product between the Grand Vitara and the Gypsy with high local content to make it competitive and allow it compete in the SUV space.
The attempt stems from the fact that Maruti has been losing its market share in the SUV mart after sales nosedived to around 25 per cent. It sold only 2,316 units in April-December 2006 as against 3,007 units in the corresponding period of 2005, said a report. At present, the Grand Vitara is imported as a completely built unit (CBU) and costs over Rs 19 lakh. On road, the price of the SUV is Rs 19.76 lakh while the Gypsy sells at Rs 5.2 lakh. Maruti wants to price the new variant at around Rs 10 lakh.
With General Motors planning the roll out of its Capitva SUV in India this year, Maruti is also gearing up for some challenge. Hence the plan, say experts. While GM has marked Capitva for the Indian market, Mahindra and Mahindra too will roll out a mild-hybrid technology version of its hugely successful Scorpio next year. Staying off would not be Ford, which has lined up a new improved Endeavour and Swedish auto maker Volvo which has plans to unveil an XC-90 model priced at Rs 50-60 lakh.
So there’s much competition on the cards. It is now left to be seen if Maryti Udyog has the ammunition needed for the SUV war.Labels: Auto Industry |
| posted by a correspondent @ 10:43 PM |
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| Monday, January 08, 2007 |
| Chevrolet Volt electric car concept - news and photo gallery |
GM finally embraces the plug-in hybrid with Chevrolet Volt.
Chevrolet Volt, the first electric car from the GM stable is at the concept stage. General Motors showcased its electric concept car Chevrolet Volt at the Detroit Auto Show on Sunday. GM, which abandoned its EV-I electric car project has shown to the world that it is capable of doing a one-up on Toyota in the green car department with the Chevrolet Volt.
GM lovingly calls its battery car as a plug-in hybrid, meaning the Volt's power pack can be charged from a wall socket. Also, the Chevrolet Volt sports an E-Flex onboard engine, which can run on hydrogen, petrol, ethanol and biodiesel. The lithium ion battery which will go into the Volt is still not perfect; GM says that it needs more work on the Chevrolet Volt before it can be put out for commercial production.
The GM Chevrolet Volt has enough battery power to go 40 miles without a recharge. According to GM, the average American drives about 20 miles to work every day. So, a 40-mile strong battery should make the Volt a hit with the commuting masses. GM claims that the Chevrolet Volt can be charged fully in 6.5 hours when plugged into a standard household outlet. GM says the Chevrolet Volt's battery can be charged on a 110-volt standard outlet.
What's more, the Chevrolet Volt's E-Flex engine can run up to 1000 kilometers, if it makes use of its other fuel options. The power plant of the Chevrolet Volt is a 53-kilowatt generator.The three-cyliner E-Flex engine powers the 160 hp motor Volt which moves the car’s front wheels.
“If you lived within 30 miles from work (60 miles round trip) and charged your vehicle every night when you came home or during the day at work, you would get 150 miles per gallon. “More than half of all Americans live within 20 miles of where they work (40 miles round trip). In that case, you might never burn a drop of gas during the life of the car,” said GM Vice Chairman Robert A. Lutz.
Unlike the runaway hit Toyota Prius, the Chevrolet Volt will be run almost entirely on battery power. Toyota Prius, on the other hand, uses an optimum mix of battery power and fuel to make the best of both energy sources.
The battery pack, placed in a tunnel between the passenger seats, is computer-controlled. The Chevrolet Volt's onboard computer determines when the battery should shut down and switch to alternate fuel. The Volt battery is desgined to operate within a temperature range of 30 degrees to 80 degrees. If the temperature crosses these limits, the computer shuts the battery and automatically switches to other fuel for optimum on-road performance.
Along with Toyota, GM was one of the first carmakers to pursue the hybrid car project. However, as Toyota powered ahead with its green car Prius, GM scrapped its eco-car project in 2000, after trying for four years. At that time, GM claimed that there was no market for such a hybrid car. However, Toyota showed there is a market, and a big one, and GM took note. The Chevrolet Volt shows that the company is this time serious about the new market.
GM is embarking on this project at a time when it is seriously pursuing a corporate restructuring which involves shutting down unprofitable units and retrenching workers. The funky-looking Chevrolet Volt is four-door and sporty as you can see from the accompanying photo gallery of Chevrolet Volt. Scroll down to see the full set of pictures.
In the prototype electric car which GM had put together before 2000, the battery power was poor, it could not run air-conditioning, and the car had problems running long distances and climbing.
GM has built the Chevrolet Volt concept car on the modified Delta small car architecture. This car architecture is similar to the one GM currently uses for the Chevrolet Cobalt and HHR.
Said Larry Burns, GM's vice president for research and development and strategic planning: "Instead of a big battery and a small engine generator used in the Volt, we would use a fuel cell propulsion system with a small battery to capture energy when the vehicle brakes," he said.
More than making a mark of its own, the Chevrolet Volt may force other automakers like Honda and Nissan to pump up their own hybrid and fuel-cell car strategies, analysts said.
Jon Lauckner, vice president and global program manager for Chevrolet Volt said: "This isn't a PR ploy or a science fair project, we're dead serious. We're working with battery-makers now on how fast the battery pack can be developed, but it's not going to be way out in the future. We plan a working Volt prototype this year." GM has described the Chevrolet Volt development as "something very important for the future of our company."
The Chevrolet Volt is built to support all-electric mode from 0 to its top speed of 100 mph. The Volt can speed to 60 mph from standstill in 8 to 8.5 seconds. The Volt fuel tank can hold 12 gallons of fuel. GM has also carried out substantial weight reduction in Chevrolet Volt by using advanced plastics.
GM's pioneering effort in building an electric car EV-I and then abandoning it in favour of gasoline-powered conventional automobiles made it the target of many environmentalists who have been pushing for green cars. It even led to a documentary called "Who killed the Electric Car?"
The plug-in hybrid car will be charged from a 110 volt wall socket. The combustion engine on board will be used for charging the battery and not for running the car.
Talking about Chevrolet Volt, an official who founded the non-profit group CalCars said: ""We commend GM for being the first out of the starting gate in the Great Plug-In Car Race of 2007. GM's announcements are the biggest victories yet for CalCars.org and other PHEV advocates. Now our campaign is in third gear. We'll work with the auto industry, government, fleet buyers and advocates to get to the day -- soon, not in a decade -- when customers can buy PHEVs as easily as any other car."
The Chevrolet Volt is the first car developed by General Motors under the E-Flex Engine System. According to GM, today's cars are built around a mechanical propulsion system, which relies on petroleum products as the primary source of fuel. GM believes that the way ahead will be in designing a viable alternate architecture.
Said Anne Asensio, executive director, GM Design who developed the Chevrolet Volt: “First and foremost, this is an advanced technology vehicle that uses little to no fuel at all. But we didn’t see any reason why that should compromise its design.” Designs for the Volt have been solicited from across the world.
The primary problem facing all electric car manufacturers is battery technology, which is still, to put it mildly, behind the times. Until technology grows up to accommodate much more power in much lighter batteries, battery-powered cars will have a long way to go.Labels: Auto Industry, chevrolet |
| posted by a correspondent @ 7:29 AM |
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| Sunday, January 07, 2007 |
| Daimler's India plant to roll out 5000 cars per shift |
One single shift at Daimler Chrysler’s India plant would roll outas many as 5000 cars, a ccording to a senior Daimler official. The car manufacturer’s India chief executive, Wilfried Aulbur, who was in Mumbai to sign a deal with the Maharashtra government to set up the plant said this/
The Gernam luxury car maker plans to set up the plant at Chakan, about 110 km east of Mumbai. However, the size of the investment has not been divulged. Analysts out the amount close to about Rs 2.5 billion.
Revealing that the first cars from the Chakan plant would roll out in January 2009, Daimler Chrysler’s senior officials added that in terms of growth perspective, India is one of the most impressive for the luxury car maker.
Further, the plant would also be used to make other brands like Chrysler and truck models. However no final decision has been taken on that yet. The auto giant is also said to be exploring the option of expanding its 160-strong research unit in Bangalore.
Daimler’s current cars numbering about 2,000 cars every year, come out of a leased facility owned by Tata Motors in Maharashtra. The performance of the auto major in India has been fairly good, with it selling 2,121 units in India in 2005. This was nearly double the sales as compared to the previous year. It sells its Mercedes-Benz S-Class, E-Class and C-Class sedans in India.Labels: Auto Industry |
| posted by a correspondent @ 10:01 AM |
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| Toyota climbs to US Top 3 in auto sales charts |
Japanese car maker Toyota third in US sales charts in 2006.
Auto giant Toyota has climbed to the top three in US auto sales during 2006. With this, Toyota has accelerated past the Chrysler Group, by signing off year 2006 with a 12.5 percent annual sales gain.
Toyota's feat has ended American dominance in the Big Three list. The Japanese giant has posted boasts of exemplary sales of fuel-efficient cars and small trucks. It is expected to overtake Ford in he US sales this year.
Buyers in the US purchased around 16.6 million new cars in 2006. And of these, a big 53 percent constituted light trucks, minivans, sport-utility vehicles, crossovers and pickups.
Truck sales remained strong despite high fuel prices due to crossovers. The current strategy is to build SUV-styled vehicles on passenger-car platforms for reduced weight and improved handling and fuel economy.
Year 2007 also was marked by a surge in small-car sales and a growing realization by U.S. automakers that the future lies in the development of alternative fuels and power plants to reduce dependence on crude oil.
Another giant General Motors, buoyed by a line of redesigned large SUVs and the stepped-up introduction of several car models, remained in first place with sales of 4.03 million vehicles, 60 percent of them trucks. That was almost 400,000 fewer vehicles than GM sold in 2005, an 8.8 percent decline for the year.
Ford ended 2006 in second place with sales of 2.72 million cars and light trucks, down 8 percent from a year earlier. Chrysler ended in fourth, with sales of 2.14 million vehicles, a 7 percent drop.
Both companies were hit by sagging truck sales. Ford sales analyst George Pipas attributed a 21 percent December drop in sales of its flagship F-150 pickup largely to customer wariness over a soft housing market.
Meanwhile, GM, Ford and Chrysler, a unit of DaimlerChrysler of Germany, all suffered from a surplus of large vehicles that don't compete well in fuel economy with their Asian and European competition. Other woes, including soaring health-care and retiree-benefit costs and expensive excess plant capacity, have prompted all three to re-examine their game plans.
GM and Ford have announced major reductions of their US employees and facilities. Chrysler is undergoing an internal review expected to result in a significant restructuring to be announced this year.Labels: Auto Industry |
| posted by a correspondent @ 9:59 AM |
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| Tuesday, December 26, 2006 |
| Fuel prices reduced in India |
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Good news for the ones on the road! Pressure from the Left allies has forced the United Progressive Alliance government at the Centre to cut retail prices of petrol and diesel by 4.25 per cent and 3 per cent respectively.
The cut, attributed to lower prices of crude, is likely to hit oil companies who are still reeling under the losses sustained due to the earlier global crude price gains.
Announcing the price cuts, Union Oil Minister Murli Deora said that the government, keeping the totality of circumstances in mind, has decided to reduce the retail price of petrol by 2 per litre and diesel by 1 per litre from midnight on Wednesday. It may be recalled that the government had effected a price rise in June to reduce losses at state-run fuel retailers after global crude prices soared.
With the fall in oil prices, the UPA government had been under attck from the Left party allies to push down fuel rates. Congress president Sonia Gandhi had also given the nod to roll back the prices increased in June.
The country imports 70 per cent of its oil and the June rise helped push wholesale price inflation above 5 percent annually, prompting the central bank to raise interest rates.Labels: Auto Industry |
| posted by a correspondent @ 2:36 AM |
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| Toyota to enter small car business in India |
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Many an auto maker is mulling over making their presence felt in the small car segment in India. The latest bid has come from Toyota Kirloskar Motor, which has hinted at entering small car business. The move may be seen as an attempt to boost sales to two lakh units by year 2010.
An announcement t this effect is expected from Toyota Kirloskar Motor soon. The company is in fact studying how to grow in the Indian market, and a decision would be taken at the right time.
The company’s Bidadi plant in Bangalore boasts of a capacity of 60,000 units per annum. The mall car from Toyota might be designed by Toyota group firm Dahitsu, the a major in the mini-cars scene. However, the company has not taken a final decision on whether Daihatsu or Toyota would introduce a model from their stable in the Indian market.
The Kirloskar group has 11 per cent stake in Toyota Kirloskar Motor and has investments amounting to Rs 1500 crore. Four new models are in the offing, it has been reported.
Meanwhile, a related report said that the Toyota Motor Corp plans to produce more cars overseas than in Japan for the first time ever in 2007. The Japanese behemoth would expand overseas car production to around 4.4 vehicles, up from 4 million in 2006. It may be noted that Toyota had in 2003 overtaken Ford Motor Co as the world's No. 2 automaker in annual global vehicle sales.Labels: Auto Industry, Cars |
| posted by a correspondent @ 2:31 AM |
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| Friday, December 22, 2006 |
| Toyota charms consumers |
TNS study says Toyota is the most trusted car company.
Toyota can rest assured now that consumers have rated it the most trusted car company. A TNS study to understand consumer perceptions about the automotive industry revealed that Toyota’s strong global image is due to its high ratings for manufacturing safe products, promoting road safety, and using innovation.
The study saw as many as 18,000 consumers from 18 countries participating. They were asked to rate corporations from the passenger car, commercial vehicle, tyre and oil sectors, which in turn revealed that safety and environment are the most important issues facing the automotive industry today and corporations that rate highly on these two parameters are generally perceived to be the most trustworthy. Globally, Michelin and Goodyear were the most trusted tyre companies – Michelin leads in Europe and Goodyear led in Asia and the Americas.
Meanwhile, Shell bagged the highest ratings for the most trusted oil company globally. Consumers rate Shell high for promoting the development and use of alternative fuels and technologies.
In the Indian context, Maruti Udyog and Hero Honda finished on top for the most trusted company title. Bharat Petroleum scored top slot in oils, Tata Motors in commercial vehicles and MRF in tyres. Maruti and Hero Honda were rated best for creating jobs, improving lives and for product safety.
The rankings were based on a global corporate social responsibility, according to TNS.Labels: Auto Industry, Toyota |
| posted by a correspondent @ 10:41 AM |
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| India's Auto sector waits for Union Budget 2007 |
The Union Budget is round the corner. As always, the automobile sector players too are waiting with bated breath to know what the FM’s briefcase has in store for them.
The government is likely to pay heed to the demands of the automobile industry and reduce the excise tax on cars to 16%. This move will bring all automobiles under a uniform excise duty rate, something which the industry had been campaigning for. In the prevous budget the excise tax had been reduced from 24% to 16% only for small cars which measure less than 4 metres in length and with an under-1,200 cc (petrol) engine capacity or 1,500 cc (diesel). The excise cut is going to be a part of the government's long-term strategy to make India one of the largest carmakers in the world (India is currently 11th largest) and attract more foreign investment in the sector. Consumers can expect cars to get cheaper although how much of the savings are passed on to the buyer will depend on the manufacturer.
This excise cut will be a crucial factor for global auto majors like Suzuki, GM, Volkswagen etc who are in the process of setting up or upgrading manufacturing facilities in India to cater to future local demand and the export market. Last year’s Budget had also reduced the duty on raw material, which is now between 5 per cent and 7.5 per cent compared with 10 per cent earlier. The Indian automotive industry is currently worth about $32 billion and is projected to grow to over $145 billion by 2016. It is expected to double its contribution to the GDP from the current 5 per cent to 10 per cent. The industry has so far attracted investments worth over $12 billion, with about $8 billion in the pipeline, according to government estimates.
Ever since the Indian Government reduced excise duty on small cars in the Union Budget 2006, most auto majors have been crying foul. Excise duty on small cars was reduced from 24% to 16% as a part of the broader auto policy and in a bid to make India the small car manufacturing hub of the world. Small cars have been defined by the Government as petrol cars with an engine capacity not exceeding 1,200 cc and not exceeding 4,000 mm in length, and diesel cars of engine capacity not exceeding 1,500 cc and not exceeding 4,000 mm in length.
Maruti seems to be the happiest with the excise cut on small cars since it's the leader in the segment and is planning to launch the New Zen -Estilo (1100 cc petrol) and the diesel Swift (1300cc diesel) both of which will benefit from the lower excise duty. The excise duty cut has already resulted in global auto firms — like Suzuki, Nissan and Hyundai — lining up over $6-billion investment plans to build small car bases in India. And some in the government feel removing this sop now might go against the FDI flow.
However most auto majors including Hyundai, Honda, Toyota and General Motors are piling on the pressure on the Government to cut cuty to 16% for all cars in the upcoming Union Budget 2007. This seems obvious since their priduct portfolio relies majorly on larger cars which are still taxed at 24%. Also it seem right to have a uniform duty structure for all cars and not to disriminate on the lines the Government has drawn.Labels: Auto Industry, Business |
| posted by a correspondent @ 10:39 AM |
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| India's auto sector sees a boost |
The auto mart in India seems to have evolved like never before. With vehicles carving a niche in the global market place, laurels have been pouring in from European and US automotive majors of the likes of BMW and Daimler Chrysler. The global auto manufacturers are fast recognizing and accepting the vehicles and components from India, said a report.
The government too has set its best foot forward to enable acceleration of the Indian automotive sector.
The government has emphasized that it would take all the necessary steps to make India world’s manufacturing workshop. The Centre has readied a mission plan for the automotive sector for 2006-2016 period to up turnover by four times. It is believed that the mission plan would take into consideration all the strata of the society, particularly the lower section in rural locales.
India today has the capacity to buy. With the level of disposable income on the uptrend, especially among young adults, coupled with and low EMIs, have made buying a vehicle the easiest task ever.
A recent RNCOS research report has said that the Indian automobile segment is currently one of the top auto industries in the whole of Asia, and that this sector would see a further growth with adequate support from the part of the government.Labels: Auto Industry, Cars |
| posted by a correspondent @ 10:35 AM |
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