Monthly Archives: June 2009

Mitsubishi Outlander is Cleaner Than Before

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New Mitsubishi Outlander Cars In India

Mitsubishi Outlander has just become the first ever premium SUV in India to pass Bharat Stage IV emission norms with BS III fuel. It has been awarded the certificate by Automotive Research Association of India (ARAI) declaring it fit to pass the emission norms which come into effect from April 2010.

Outlander demonstrates its superior technology by becoming the first SUV to have gained this certificate. As per the guidelines BSIV emission norms require vehicles to limit carbon-di-oxide levels to 1 gm/km while the other toxic gases should be a few milligrams. The carbon levels in the Outlander is at a mere 0.49 gm/km and others are lower than the specified limit. Since Outlander is equipped engines that have Mivec technology which helps keep all the harmful gases within limits even while it uses BSIII specification fuels.

Mitsubishi Outlander can now hit the dirt trail without ever puffing out those harmful gases. Outlander joins the small cars like Maruti Suzuki Ritz and Honda Jazz which were launched with engines that comply with BS IV emission norms.

As more and more vehicles get engines which adhere to stringent emission levels, our cities will just get cleaner. Better air quality is the need of the hour in big cities in India. Our children have a right to clean air and clean water. May be car manufacturers can contribute their bit by introducing engine which harder for the environment cause.

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Tata Plans to Bring a Crossover SUV

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Tata Motors always seizes to amaze the automotive fraternity. Basking in the glory of its wonder car Tata Nano that will be delivered to buyers sometime soon in July, they already have charted detailed plans to introduce the Nano to Europe and United States (The next Model T in the making?), with of course, (hold on to your seats) hybrid and electric Versions. Tata Motors also plans to launch a crossover sport utility vehicle (SUV) codenamed ‘Tata Xover’.

Tata Xover was showcased at the 75th Geneva Motor Show in 2005. The Xover could be a replacement to the aging Tata Safari. It is learnt that a team of 150 engineers are working on the product for the past three years. The team includes people who had worked on the Nano project bringing in their expertise in creating the world’s cheapest car while creating the SUV as well.

Speculations are rife about the Tata Xover which would measure 4.85 meters long, will accommodate five to seven passengers based on the seating arrangements chosen by the buyer. Tata Xover will be equipped with Euro-IV engines and the rugged looking SUV is likely to be get traction control, climate control and navigation system among others.

As Xover will come with all the latest technologies, we can assume that it will feature refined driving dynamics like the luxury cars. It will be the second such car aimed at the lifestyle utility vehicle segment after the pick-up Xenon XT.

The other utility vehicles from Tata Motors include the Sumo Grande, Safari Dicor, and Sumo. Tata Motors is betting huge on the Xover to help push up sales as its utility vehicle and SUV sales dropped by half compared to last year.

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Tata Nano in America by 2012

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The commoner’s dream car Tata Nano, which was primarily intended for the Indian car market, is now getting ready to go to places. The tiny four-wheeler has already made a huge impact on Indians and foreigners and this is evident from its immense worldwide popularity. Christened ‘Nano Europa’, the European face of Nano is expected to be seen on European roads within two years. With modifications and new features that will match European standards, the Nano Europa will have very little resemblance to the Indian version.
New Tata Nano Cars in India
It will also travel to America and Tata is expected to launch the world’s cheapest car Nano there by 2012. Similar to the launch plans for Europe, Tata will have to adorn the Nano with a completely new look and even call it by a new name before unveiling it in the U.S. car market. Like Europe, the United States too poses plenty of barriers to the Nano in terms of standards. Tata understands these challenges and is working to make the American launch happen. The toughest challengers are stringent emission norms and car safety standards. In India, the car is available only with a 623cc two-cylinder petrol engine. Tata is working on future versions of Nano which will include diesel, bio fuel, and electric technologies on the car.

Nano is the cheapest car in the world and will be available for a similarly low price in the U.S market, but the acceptance of the car depends on what additions Tata makes to the car before launching it there. To make it the cheapest car, Tata has cut down on many basic features. To mention a few, Nano has no power steering, single side-view mirror, and single windscreen wiper instead of two. This is a no go for the U.S. market as these are extremely basic requirements there. Re-designing and re-engineering the Tata Nano poses a new challenge.

One thing that surely favours the Nano in the U.S. is the increasing popularity of cars with good fuel economy due to the gloomy economic scenario.
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GM Instills Confidence in Indian Car Buyers

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For all those who feared that General Motors India was in trouble, just the opposite is true. The car manufacturer in India is doing business as usual. They continue to get bookings and inquiries in the same number as they did before the parent company filed for bankruptcy in the United States. Dedicated efforts from senior officials at GM India have paid off well.

The senior officials at General Motors informed the Indian car dealerships in advance about how the bankruptcy filed by GM in the U.S. would not affect Indian car sales. When there was a barrage of questions from car buyers about the future of the GM India, the staff was able to explain things well and instill confidence in them. Also GM India has also worked tirelessly to convince consumers that no services will be withdrawn and warranties will continue as earlier. They also went ahead with new car launches such as the LPG variant of Spark and Chevrolet Aveo U-VA Techno variant. Two more models – Chevrolet Cruze and a new small car – are yet to be launched this year.

All senior officials visited dealerships personally and conveyed directly to consumers that all was well with Chevrolet in India. They also highlighted the fact that supply of spare parts would not be affected for existing consumers thereby ensuring that older cars were well cared for.

It was no easy task but the company took pains to make Indian car buyers understand that they were not quitting India at all. The new GM India campaign, which it promoted aggressively, has turned out results. Sales have been picking up since last week and GM India claims that the fall in sales was not entirely due to the bankruptcy issue and economic recession played a part too. The staff continues to wear badges that boldly highlight their theme for the campaign – “There for you, There for India”.
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Monsoon is Better than Winter for Car Sales

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If winter in December was a golden period of discounts on luxury cars, monsoon in June is better. The stimulus package from the government for the car industry helped cut down on car prices in India drastically in the new year. Now June brings in exciting new promises with car manufacturers offering discounts between Rs 5,000 and Rs 1 Lakh to counter a common notion that new cars will suffer in rain and slushy roads.

The entire range of Maruti cars excluding the recently rolled out Maruti Suzuki Ritz and Swift DZire attract discounts. Also, the fast-selling Swift hatchback gets only Rs 5,000 off. This is part of Maruti’s monsoon strategy which is introduced every year to push sales. Maruti Suzuki is not the only car manufacturer to blah as General Motors, Ford, and Tata too are offering monsoon discounts. Interestingly, Hyundai has launched a programme in which used cars can be exchanged for new ones for special benefits.

Car manufacturers are also offering other benefits such free car insurance, exchange programmes, loyalty bonuses, free accessories, warranty extension, and gift schemes.

Auto analysts speculate that car manufacturers are offering heavy discounts on cars this year fearing rise in excise duty in the new budget. They are also eager to forget the bad days of recession and get on with good sales.
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New Fiat Grande Punto All Set to Launch Tomorrow

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After huge success in the European market, Fiat and Tata have plans to launch the Fiat Grande Punto in India tomorrow. The new small car is set to spruce up the hatchback scenario with its elegance, safety standards, and spacious interior. Moreover, the 4-metre long Grande Punto is the biggest car in its class and that’s why “Punto” is preceded with “Grande” to indicate its size.

Designed by the famous Giorgetto Guigiaro, the Fiat Grande Punto flaunts a stunning sporty look with elegant exterior lines. The interior has been stylised to speak of three basic qualities: beauty, solidity and brilliance. The car is generously spacious, with excellent front visibility, easy access and a large luggage compartment. The seats are made of high quality fabric and the driver’s seat is crafted with comfortable height adjustment for better sitting posture. The dashboard and instrument panel come in attractive design and colour, while the leather steering wheel is a joy to hold even in long and tiring rides.

The Fiat Grande Punto will be available in 4 variants – 1.4 Petrol Dynamic, 1.3 JTD Diesel Dynamic, 1.9 JTD Diesel Emotion and 1.9 JTD Diesel Sport.

The model is secured by active safety features like Anti-lock Braking, Electronic Brakeforce Distribution technology, and Electronic Stability Program incorporating Anti-Slip Regulation system. The car has dual front air bags to lessen the impact of a collision.

The Fiat Grande Punto price in India is expected to be between Rs 4.5 and 6.5 Lakh.
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Safety for Pedestrians with BMW AMULETT

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When it comes to innovation, BMW has always thought and exhibited that little extra, which has left the populace wonderstruck. It is with the performance of the vehicle and safety of the passengers that more innovations are being conducted and implemented. But with changing times, the car manufacturer is also concerned with the safety of pedestrians with as much importance to the safety of passengers. BMW wants to manufacture and sell the safest cars in India and the world.

BMW is citing a commonplace condition, where a playing child, a walking pedestrian, or a motorcyclist could suddenly jump onto the road from between two parked vehicles. These are situations which cannot be perceived or “sensed” beforehand. For such situations, BMW has invented a system that will help moving cars communicate with an electronic device carried by pedestrians or cyclists. In case the system senses a dangerous situation where a pedestrian or cyclist is at risk, it warns the driver with the help of indicators and signals. An eminent plus of this system is that if the driver takes time to respond to the warning, the system automatically activates the braking procedure.

A part of BMW’s AMULETT (Active mobile accident avoidance and mitigation of accident effects through cooperative data acquisition and tracking technology) research project is aimed at prevention of accidents with the help of sensors and tracking technology. The tracking device can be worn on self or kept in a bag and it will help the car to actually “see” using transmitted radio waves. It will help the driver to a greater extent at night as it amplifies night vision using a thermal-imaging camera to actually detect pedestrians out of its “line of sight”.

This innovation will surely be of great help in reducing road accident deaths as no one is invisible to the BMW AMULETT. There will be safety in place for everyone on the road with BMW car technologies.
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Older Car Brands Rule the Roost

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The saying “Old is Gold” is so true when it comes to the Indian Car market. With the car market witnessing so many new cars launched in India almost every fortnight, car buyers seem to be charmed with the old tried and tested models.

The statistics from the last fiscal show that six brands constituted over 63% of the Indian car market, of which five brands are 2007-prior makes. This surprising fact comes at a time when the market has welcomed 50 odd debutants this year. Among the “young Turks”, only the Hyundai i10 has succeeded in striking a chord with Indian customers.

Of the 400 models produced by 20 companies, Maruti Suzuki’s Alto tops the most-sold list, with Maruti Suzuki WagonR, Tata Indica, Maruti Suzuki Swift, Hyundai i10, and Hyundai Santro queuing behind it. Together they have sold 7.6 Lakh units in the last fiscal.

Higher frequency of new launches must have taken a toll on the new brands, for they get very little time to establish their worth. Before they can create a base in the market, new models pound the market with alluring advertisements. Finding himself in a complex situation of too many choices, the Indian car buyer goes for the reliable and consistent older models and these are high resale value cars in India as well. This could be the reason that the Maruti Suzuki Alto still remains the bread winner in the Maruti stable even after the car manufacturer launched half a dozen new cars after the advent of Alto about almost a decade back.

We can also attribute the success of these oldies to the brand-addiction of the buyers. It will be a tough task for the new comers to ride into the hearts of the staunch supporters of these older generation cars. Newer cars have not been able to adjust with the customer’s tastes and preferences.
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Indian Used Car Sales Close to that of Developed Countries

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Cars have become a necessity and new as well as used car sales in India are soaring by the day. Many of them are first time car buyers and a few families are also adding a second or a third car to their garage.

According to an estimate, over 10 Lakh cars are added to Indian roads every year. Soon there will be more cars than the roads can handle. The number of vehicles on roads has grown at an average rate of 10.2 percent annually and this average has been constant over the last five years when most global car manufacturers entered India. Even the World Bank, in its report on the traffic situation in India, has commented that the growth in car ownership has reduced rush hour speeds to 5-10 km/h in central business districts.

Till a decade ago, the pre-owned car segment in India was dominated by neighbourhood pre-owned car dealers and car mechanics. But now it is certified used car dealers who have taken control of the used car market. Several global car manufacturers such as Hyundai, Ford, General Motors and others are running their own certified used car outlets. Homegrown car manufacturers like Maruti Suzuki, Tata Motors, and Mahindra & Mahindra were the first to start such programmes. And today these used car programmes contribute vastly to the revenues of these companies. The global economic meltdown helped push used car sales over that of new cars.

The used car market has grown to enormous sizes so much so that India is very close to replicating the trends in United States and Europe. Unfortunately, the development of Indian roads has not kept pace with this growth in used car sales and sooner or later they are bound to be with new and used cars.
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Falling Luxury Cars Sales Pose Challenge to Manufacturers

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Luxury car sales in India have been very encouraging for foreign car manufacturers in India over the months before April and May when a sudden dip in sales has occurred. A decline in sales of 7.59 percent has been reported in May alone compared to the same period last year.

The luxury car market in India was expected to be hit really hard after the global economic meltdown started in October 2008 but became more visible only in the new fiscal year. It is surprising to note that there were not as many takers as expected for luxury cars even after car manufacturers had cut down prices by nearly Rs 50,000 in December. This was after the government announced special excise duty cuts to boost sales.

The hardest hit among all luxury car manufacturers was Mercedes-Benz which is currently the leader in the Indian car market. Mercedes-Benz car sales in India have shrunk by an astonishing 34.18 percent last month. It is a testament to the frugal spending habits of Indian car buyers when the economy gets leaner. People are unwilling to incur high expenses on car buying.

At the same time, though other new car sales are picking up gradually, they too have been through a dim period in between as sales continuously fell below expectations. Indian car buyers are wary of the reeling global economic scenario and have held back most of their spending. Car manufacturers will now have to use more than just their products to lure people. They will have to take up aggressive marketing and courageously foray into tier B and C cities with sales potential. They will have to look for newer avenues to generate sales and will need all their ingenuity to get their businesses back in shape again.
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