Monthly Archives: July 2008

Car Loan Interest Rates Climbs Higher

With inflation remaining double digits for consecutive six weeks, RBI plans to tighten its monetary policy. The policy has a direct impact on the interest rates. Oops! Another setback for the car manufacturers.

Car manufacturers are now really frightened with the continuous increase in fuel prices as well as the interest rates. Now all the heart goes down.

Are car manufacturers still strong and powerful to face this obstacle and win over the challenge? The Indian car industry is going down with low economic gains.

This is the third time in the calendar year 2008 and the second time in the current month that the interest rates have climbed up. The current repo rate, rate at which Central Government lends money to the banks, has been increased by half a percentage point and the cash reserve ratio, cash that bank puts aside, has been increased by 0.25 percentage point.

A car loan amount of Rs 3 lakh for a period of three years will have a higher EMI of Rs 73. Car loan for a period of five years, will have an EMI of extra Rs 79 and the loan taken for 7 years will have an additional amount of Rs 84 in the EMI.

The things are becoming worse day by day. When will this inflation end? Who will bring an end? What and when is the next hike in interest rates? Who knows?

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Fiat Develops Two-Cylinder Diesel Engine

The Fiat plans to develop a two-cylinder diesel engine for the global car market including India. This two-cylinder engine is mainly designed for small cars and is known as ‘Fiat’s twin wonder’.

The diesel engine is expected to be manufactured at Fiat’s Ranjangaon facility in India. The company also plans to sell the same cylinder to other companies across the global car industry. Fiat has an alliance with the Tata Motors and it was expected to be a confirm consumer for this engine. But Tata Motors is producing its own twin-cylinder for its ultra-cheap car, the Nano.

Maruti does not have any such kind of small diesel to fit in its small cars. But do you think will Maruti approach Fiat for its requirement? Maruti is considered to be Fiat’s best stake.

Through the production of this twin-cylinder diesel engine, the company is planning to strengthen its presence in India.

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Super Mileage Car Ready to Beat Inflation

Garuda, a super mileage car, is finally ready to be launched!

The launch of this super mileage, fuel-efficient car in this era of rising fuel prices and high interest rates is a big revolution in the Indian car industry. The launch of this car is also credited to the various issues including oil crisis, environmental pollution and aggressive search of alternative fuel sources.

The new electric car is manufactured by students of Mechanical Department of RV College of Engineering in Bangalore and is expected to be unveiled in August, 2008 at the college campus.

This super fuel efficient car is designed and manufactured with latest cutting edge technology. This will be the first Indian car that is completely ready to participate in the “SAE Supermileage International Competition” in USA and “Shell Eco-Marathon” in the UK.

Will the proposed launch of Garuda threaten the only electric car Reva Maini in India? Reason being that both the cars have a common start, from the Indian IT hub, Bangalore.

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What is the Faith of Mumbai Taxis – WagonR or Nano?

Earlier we had said that Wagon R is going to replace Mumbai Taxis. Mumbai taxi owners are in talks with Maruti Suzuki for the rights and permission to run the car as taxis on roads.

But don’t you think that Tata Nano will be a better option for taxi drivers in Mumbai. The Nano is soon going to launch and it can very well replace the taxicabs. Tata Motors has outfitted the car with safety features and a fuel efficient engine. Driving the Nano seems to be more cost effective for taxi owners.

The People’s Car, Tata Nano, is expected to be the next target for the daily city ride. The Mumbai Taximen Union is in a dilemma which car to choose, both are fuel efficient.

Don’t you think that Nano has the power to offer more profitable gains? Low cost of the car is attracting more number of taxi owners. Replacing Mumbai taxi with Wagon R will earn them the same but the initial investment would be more.

Moreover, if the Nano is outfitted with air conditioner, the price tag would be much cheaper than that of an air conditioner Wagon-R.

What do you think, who will replace Mumbai taxis, Wagon-R or Nano?

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BMW Launches 530d

BMW rejoices its success with the launch of 530d in India.

The five series of BMW is a big threat for the age old Mercedes-Benz in India. The BMW has created a competitive platform of luxury cars in a span of two years. The f\5 series of BMW is not as old as the existence of Mercedes-Benz in India. Yet, BMW is seen to be ahead in the race.

The new 530d is available with more efficient engine, enhanced horsepower, and advanced safety technologies coupled with BMW’s USP (Unique selling point), Night Vision. This premium segment sedan is powered by six common diesel rail engine (CRDi) that generates 235bhp.

The company has also introduced two other variants of the car, 520d and 530d Highline. All the car models launched have the highest standards of all-round quality, safety measures coupled with highest levels of comfort and luxury. These new car models are also available in a rainbow of vibrant and sophisticated colours.

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Mahindra-Renault Venture Sells Renault Cars

Mahindra & Mahindra and Renault currently hold a share of 51:49 in the partnership. This partnership was signed between both the companies for manufacturing and retailing their most leading car, the Logan.

But now, with the increasing pressures and challenges, the joint venture desires to extend their retailing partnership to sell Renault’s future cars.

Mahindra has no recent plans to introduce more cars to India. That’s the reason why the company is willing to extend the partnership with Renault to market the upcoming Renault’s car.

Mahindra is keen to make the Mahindra-Renault centre as the distribution network to sell Renault’s new cars. The new cars are expected to be launched from Chennai in the next two years. The negotiated partnership between the two companies will be used to sell those cars under the brand of Mahindra-Renault Ltd.

Will Renault agree to the partnership? Will Renault share its success of the proposed cars with Mahindra? Any guesses?

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Twins Residing in Different Countries

Maruti Suzuki SX4 and Fiat’s Sedici are twins from the same platform residing in different countries.

The Sedici is a sports utility vehicle designed and manufactured by the Joint Venture between Suzuki and Fiat mainly for the European market. The car was expected to launch in India as well but the success of SX4 in India has blocked the market for Sedici in the country.

Sedici was expected to replace the SX4 in India. Initially, the Maruti had plans to introduce almost 60,000 units of SX4 to the country, out of which two-thirds to be sold by Suzuki and the rest by Fiat.

But fortunately, SX4 has been a great hit in the mid-size sedan market. The company is also successful in attracting customers with a recent upgrade offer of Rs 25,000 exchange bonus.

The Sedici is doing great in the native Italian market. Fiat was also planning to launch Sedici in South Africa but then the company changed its intention because the South African market is already dominated with the SX4.

Eventually, the joint venture between the Fiat and Suzuki decided to launch the twins in different countries.

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India’s Most Reliable Cars

When buying a car, most of the time people get confused while making a choice among different brands.

Many questions start pondering and swinging in people’s minds. Which car is the best? Which car has enhanced safety? Which car has low cost of maintenance? Which is the most reliable car?

The answer to all these questions is given by J.D. Power Asia Vehicle Dependability Survey.

Earlier, it was difficult to judge the most reliable car but J.D. Power and Associates has resolved the issue with just one survey. In India, the first survey was held in January 2008 and results were declared in April 2008.

The survey was based on the number of problems faced by car owners of 30-42 months old vehicles. Ranking was given on the basis of number of problem symptoms per 100 vehicles. Problem categories include exteriors, driving comfort, entertainment system, controls, displays, car engine, heating, ventilation and transmission.

Based on the J.D. Power Asia Vehicle Dependability Survey, 8 Indian cars were considered to be the most dependable. The list of India’s most reliable cars include Maruti Suzuki Swift, Maruti Esteem, Toyota Corolla, Toyota Innova, Hyundai Santro, Honda City ZX, Ford Endeavour and Mercedes-Benz C Class.

Now the confusion of searching a good car gets over. You can select any reliable cars from the listing and drive safely along with your chosen car.

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Skoda Cars are now Costly

Skoda increases price tags of all its car models! This is nothing new in the car industry. Recently many car manufacturers including Tata Motors, Hyundai Motors, Maruti Suzuki, and Honda Seil India have increased the cost price of all their cars.

With so many car manufacturers raising the car prices due to high input costs, Skoda India, Czech auto manufacturer, also announces an increase in prices of all its car models in India.

The company announces a hike in the range of Rs 10,000 to Rs 25,000 and this hike will be effective from August 2008. Apart from high input costs, the company is also swayed by the surge in freight costs and high cost of raw materials.

Inspite of the high input costs, the company is putting in hard efforts to absorb maximum costs so that the price hike has minimized impact on prospective car buyers.

Will the efforts of Skoda be successful?

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Hyundai Opt India for Small Car Production

Many car manufacturers are invading India to make the country a hub for small cars production. The Hyundai Motors being a smart player also plans to make India its global centre for small cars.

The company will use India for manufacturing and exporting small cars and earn higher margins. Cars produced in India are comparatively low in price because of the easy availability of skilled talents as well as low-cost of labour and machinery.

Hyundai has rolled many small cars till date among which few were locally produced. The recognised Hyundai’s i10, launched last November, was manufactured exclusively in India. The upcoming Hyundai’s i20 model will also be solely manufactured in India.

Hyundai’s i10 belongs to the ‘A’ segment whereas the upcoming i20 will belong to the ‘B’ segment. The company wishes to line up a portfolio of small cars to offer a wider choice to Indian customers.

Hyundai has set a sales target of around 530,000 units for both the domestic and export market. But inflation and high fuel prices are taking a toll on car sales, thereby reducing the margin.

May be by the end of this year, things get sort out and Hyundai gets a brighter era to continue the launch of its innovative models.

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