Monthly Archives: March 2010

Carmakers want vehicle taxes to be uniform across states

16


TaxWell, we all understand the meaning and implications of hikes in excise duties of cars, but what is very difficult to understand is the constant hodgepodge of various taxes that the individual states levy on different cars. In recent years, this has marred the benefits of excise duty cuts that would otherwise be conveniently utilised by the Indian car buyers.

Since 2006, the Union government has brought down the excise duty on small cars from 16 per cent to 10 per cent, though it was raised by 2 per cent in the budget 2010. But various charges including sales tax, road tax, entry tax, registration charges and hypothecation fees by state governments have countered the benefits of excise relaxation and increased the prices of small cars by up to 20,000.

So much so that every time the government cuts excise duties, state governments hike road tax or registration tax. Also, some of the states demand that the buyer pay the registration fee as a lifetime tax upfront.

Carmakers are expecting that the goods and service tax proposed by the government will put an end to tax anomalies across states. . “Industry prefers uniformity in state taxes,” said Society of Indian Automobile Manufacturers (SIAM) president Pawan Goenka.
“There is a huge difference in the local taxes charged by various states on automobiles,” he said, adding that some states charge a lifetime fee while others ask for an annual fee.

In some of the states, while sales tax has risen to 15% from 12.5%, registration fees have gone up to nearly 7-8% from 4%. Car manufacturers and buyers are totally against charges such as entry tax and hypothecation fees. Even the road tax varies across different states and Tamil Nadu, at around 17 per cent, is well ahead of all the other states.

The goods and service tax was likely to be rolled out from this April but differences between the government and states have delayed its rollout. Carmakers, however, are keeping their fingers crossed in the hopes of getting rid of the disastrous effects of variable local taxes.

Uttar Pradesh charges registration fees depending on the curb weight of vehicles, which is spread across three slabs including less than 1,000 kg, 1,000-5,000 kg and over 5,000 kg, attracting fees of 5%, 6% and 7%, respectively.

SIAM has been persuading the government to remove the arbitrary tax slabs introduced by the state governments. But the Union government is reluctant to do so, fearing that the state governments would raise a huge hue and cry about their autonomy.
    SocialTwist Tell-a-Friend     Add to Technorati Favorites                 Add New Post

Maruti Bats for a Greener Tomorrow

Reply


Maruti Suzuki AltoMaruti Suzuki is phasing out its iconic model Maruti 800 in thirteen Indian cities, due to the new emission norms but that has not dampened the moods in the Maruti camp. The company could not have asked for better results from its latest launches including the A-Star, Ritz and the Eeco.

Now the latest news from Maruti Suzuki India is that it is planning to launch factory-fitted CNG vehicles in the next fiscal year. As CNG driven cars gain popularity in India, Maruti Suzuki is quick to take the lead and direct its focus towards manufacturing CNG cars.

Maruti has been in talks with Reliance India Limited (RIL) and the Gas Authority India Limited (GAIL) on the availability of natural gas and the possibilities of more fuel stations. And not just one or two cars, Maruti wants to have a BS-IV compliant CNG model in every segment it operates. Maruti is quick to add that though the CNG models will be costlier than their petrol or diesel counterparts, the running costs would be considerably lower.

“Our R&D people are working on developing a CNG vehicle which will have factory fitted kits. We are going ahead with the development but lot will depend on availability of the fuel across the country,” Maruti Suzuki Chairman R C Bhargava said.

The company’s Manesar plant has started receiving natural gas from the Gas Authority of India Ltd (GAIL). As per the agreement between Maruti Suzuki and GAIL, GAIL will provide 0.33 MMSCMD of R-LNG at the rate of $5.8 per mmBtu for a period of 10 years.

GAIL’s new Chainsa-Jhajjar-Hissar pipeline swallowed a mighty investment of Rs 450 crore and Maruti Suzuki has become its very first customer.

Now, this deal with GAIL will bring down Maruti Suzuki’s production costs by about 0.4 per cent per vehicle, since the cost of power generation by gas is much lesser when compared to that of diesel. And Maruti will be passing on this cost cut to the consumers. No wonder Maruti is always on the top of the favourite list of Indians.

“No, it will not happen. Earlier we were producing at higher cost by absorbing the higher production cost of power generation by diesel. The gas supplied by GAIL will be mainly be used for paint shop and power plant,” Bhargava said. The captive power generation at Maruti Suzuki India’s Manesar plant is 68.5 megawatt.
    SocialTwist Tell-a-Friend     Add to Technorati Favorites                 Add New Post

Chinese BYD interested in buying Maybach from Mercedes?

1


Maybach ZepplainWe have seen and heard of the most unusual things that have happened in the auto industry. We have seen Tata Motors buying loss maker Jaguar Land Rover unit from Ford Motors to spin out some quality products to find a place in the hearts of car connoisseur and churning out huge profits in the process as well. We have also seen GM crumble from top spot in the U.S automobile market during recession that made it sell three of its top brands and phasing out a couple of brands altogether.

We have come across the mighty Japanese known for their technological prowess come to their knees when they recalled their cars citing life-threatening technical problems (Read Toyota, Honda and Nissan). Then we have also seen lesser known car companies like that of Spykar and Geely buying more prominent car brands like Saab and Volvo paying exorbitant sum of money to the amazement of other global car companies hit by global recession.

But this story below can put every other unusual car related topics to shame. Imagine a newly cropped up Chinese electric car company called BYD showing interest in buying the legendary Maybach brand itself from the mighty German owners Daimler who also own Mercedes-Benz. Cannot believe your eyes? Believe it.

In a so called rumor that’s doing rounds in the internet circles which was originally started by China’s largest auto-related websites called auto.sina.com, BYD, the electric car maker from China is interested in acquiring the Maybach brand from Mercedes-Benz within the next few years.

The site reported that an undisclosed official from BYD confirmed the company’s interest in Maybach. The source stated that BYD would “launch the acquisition” when Mercedes finalizes its decision to end the Maybach nameplate.

Mercedes and BYD have already joined forces in an effort to market electric vehicles in China, so the companies have a working relationship, but whether or not this relationship translates into the acquisition of Maybach is unknown. It seems unlikely that Mercedes would hand over the Maybach nameplate to another company, but it just might happen. BYD’s expansion efforts have been strong and luxury cars such as the Zeppelin, pictured above, tend to sell well in foreign markets so it could be a fit for BYD. For now, we will just have to wait it out and see what develops.

Daimler which heads the luxury German brands such as Mercedes-Benz and Maybach, in a bid to save its face, desperately pleaded that the rumors were false.

Daimler states that Maybach is slow-selling as they could sell just 200 cars last year. They also admitted that the Maybach brand had failed to reach and achieve the appeal of the established classic ultra-luxury brands like Bentley and Rolls Royce, but it’s still important to Daimler and stressed the point that the brand was not for sale.

A Daimler spokesman told Reuters that there is no truth to the recent speculation that Maybach could be sold to Chinese automotive firm BYD. In the meanwhile, BYD also denied the claims, according to the report; with a spokesman conferring with company chairman Wang Chuanfu to reach the conclusion the whole thing is merely speculation. BYD and Daimler are, however, cooperating on electric cars for the Chinese market.

Maybach Zepplain
Maybach’s sale is speculation that may eventually bear fruit, however, as the brand’s product lineup is stale–though due for an update soon, according to leaked patent images–and its tiny sales figures haven’t shown any signs of growing even as Rolls-Royce is nearly doubling production plans thanks to the new, smaller Ghost sedan. Bentley is also bustling with product news, primarily its somewhat controversial plans to go green with the addition of flex-fuel capability to its entire Continental range by 2012.

    SocialTwist Tell-a-Friend     Add to Technorati Favorites                 Add New Post

The Jatropha Weed – A Biodiesel Source

4


Jatropha PlantsRecently, we heard about the Carpuccino, where coffee beans were used as an alternative fuel to power the car. Now, GM will be partnering with the U.S. Department of Energy (DOE) to develop biofuel using the jatropha plant. The five-year partnership will hopefully convert the weed into a continual biofuel energy crop. This weed produces oil which can be refined into biodiesel. Isn’t that something nice?

What does the project target? Well, the jatropha plant will completely be explored. General Motors and the DOE want to prove that remarkable quantities of the oil can be produced for conversion to biodiesel. Also, new varieties of the plant that can give better yield, withstand frost and can grow in temperate climates like the U.S. will be developed. The plant can be grown commercially with minimal care on marginal land.

Two jatropha farms in Bhavngar and Kalol near GM’s car manufacturing plant will be set up in India. The existing 74.1-acre jatropha farm in Bhavnagar will also be managed. Lab-optimized strains of jatropha, produced through selective and marker-assisted breeding, will be cultivated. The joint DOE-GM funding will enable the Central Salt & Marine Chemicals Research Institute in India to manage the cultivation. The environmental impacts, starting with fertilizer production from raw materials and ending with the harvesting of jatropha fruits will be analyzed.

How is everyone going to benefit from the project? If jatropha becomes commercially feasible, we will no longer have to be completely dependent on petroleum. It will also reduce greenhouse gas emissions. GM India sales, with biodiesel-capable products, will automatically grow and re-state GM India’s commitment to green technology.

India and Europe mainly rely on diesel as fuel. The jatropha-based biodiesel has great potential as an alternative fuel. It would serve great in regions where national security concerns are sensitive by dependence on imported oil. India, China, the Philippines, several African countries, and the U.S. are conducting research programs in jatropha cultivation and oil extraction on insignificant and weather-beaten land.

Jatropha is a tough plant, resistant to drought and pests, and produces seeds containing 27-40% oil. The jatropha seeds, after oil extraction, could also be considered for producing energy. As per Goldman Sachs, Jatropha curcas can be one of the best sources of future biodiesel production. Till date, none of the Jatropha species have been domesticated. Therefore, its productivity may vary and the long-term impact of its large-scale use on soil quality and the environment is indefinite.

In Brazil, the Philippines and few other surrounding nations, the oil from Jatropha curcas seeds is already used for biodiesel fuel production. The plant grows naturally in these regions. Several projects in India and other developing countries are also working hard on the jatropha oil for biofuel. The railway line between Mumbai and Delhi is planted with Jatropha and the train itself runs on 15-20% biodiesel.

Cultivation is easy. Jatropha curcas grows in tropical and subtropical regions. The plant can grow on almost any territory, even on gravelly, sandy and saline soils. Poor and stony soils do not affect its growth. However, new research suggests that the plant’s ability to adapt to these poor soils is not as extensive as before. Complete germination is completed in 9 days. It can also be grown with other crops like coffee, sugar, fruits and vegetables.

In Dec 2008, Air New Zealand successfully completed a test flight using a 50/50 mixture of jatropha oil -derived biofuel and Jet A1 in one of the four Rolls-Royce RB211 engines of a 747 jumbo jet. Jatropha oil is much cheaper than crude oil. In Jan last year, Continental Airlines successfully completed a test flight from Houston, Texas using a 50/50 mixture of algae/jatropha oil-derived biofuel and Jet A in one of the two CFM56 engines of a Boeing 737-800 New Generation jet. The test flight marks another hopeful step for the airline industry to discover cheaper and eco-friendly alternatives to fossil fuel.

    SocialTwist Tell-a-Friend     Add to Technorati Favorites                 Add New Post

The All-New 350-BHP Ford Focus RS500

1


The All-New 350-BHP Ford Focus RS500Ford is all set to launch its Focus RS500. Yes, the sport-tuned hatchback will be unveiled today. The Ford Focus RS500 is being launched the same day when the 2010 New York International Auto Show kicks off. Well the good news is the car will be available in Europe at the moment and the bad news is we in India might have to wait for a while before the car unleashes its raw power in the Indian shores if the good guys in Ford decide to bring it in.

Have you watched the teaser video of the car running around the Lommel Proving Ground in Belgium? Now, we have more details about the stunning car. The upcoming hot hatch is simply amazing. Looks like the car will run real well, thanks to the many performance and handling upgrades including shocks and brakes. If you’ve driven a Ford Focus RS, you’ll know what 300 bhp is. It is 80 bhp more than what physics says the front axles of a hatch can handle. The Focus RS did it, and now, the Focus RS500 comes with something more.

The Focus RS500 has a 2.5-litre inline-5 engine that can churn out a power of 350 bhp and 460 Nm of torque. This engine is very powerful, 15 per cent more power compared to the Focus RS. Wondering how the vehicle managed to get so much power? The controller software was upgraded adding a larger intercooler and giving the hatch a bigger and free-flowing exhaust system. Did you know that the car can zoom from 0 to 100 km per hour in less than 5.6 seconds with a maximum speed of 263 kmph.

Is the RS500 similar to the earlier cars from Ford? The three-door hatchback is sporty. It is better than the already proven RS. The car’s matte black paint and blacked-out 19-inch wheels make it stand out of the crowd. The chic car’s looks are further enhanced by the performance-tuned brake calipers behind the large wheels. The interiors are different, something special. The Focus RS500 has bright red leather seats with Recaro buckets up front.

What do you think the 500 in RS500 indicate? Only 500 units of the car will be produced. That’s unfortunate, but true. Who will the lucky 500 customers be? We heard that each model is going to get a metal plaque mounted on the center console with its unique identification number from 001 through 500 engraved on it. Isn’t that something cool for the fortunate customers?

Ford believes the combination of the looks and performance of the Focus RS500 is going to drive car enthusiasts crazy. They are going to highly appreciate it. As of now, we have info about the RS500’s trips to Great Britain, Denmark and Czech Republic only. Great Britain will have the luck of running 101 units of the tuned hatchback on its roads. Smaller countries such as Denmark and the Czech Republic will get only five.

By end of today, we may have more info on the all-new Ford Focus RS500. The Focus RS is still on the roads. The car is doing real well. That goes to say that the RS500 will do better. A redesigned version of the Ford Focus may go on sale next year. Finally Ford will get a modern C-segment car to compete with other leaders like the Toyota Corolla and Honda Civic.
    SocialTwist Tell-a-Friend     Add to Technorati Favorites                 Add New Post

End of Road for Some Fantastic Cars

9


Maruti 800The good news is that India is catching up with the European automobile emission norms and bringing in the most stringent Bharat Stage IV norms. The bad news is that the new norms will make it necessary for some very good cars to be phased out from the thirteen big cities where the BS IV norms come into effect.

Come April 1st and new units of some very popular models including Maruti 800, Ford Ikon (1.3 petrol), Fiat Palio, Skoda Fabia (1.2 petrol) and Octavia (1.9 TDI engine), and Chevrolet Tavera (2.5 DI) will no longer be sold in the 13 cities where the new norms would be effective from the aforesaid date.
Ford Ikon
All these models, however, will continue to be sold in cities where BS III norms will be implemented.

Of all the cars, the absence of new Maruti 800’s in these cities will bring an ache to many of its fans (me being one of them). The car brought a revolution of sorts when it was launched during the 80’s. Company’s engineers tried their best to re-engineer the car to make it BS IV compliant but gave up because the price would have shot up to a great extent, making it uncompetitive. Another reason for the Maruti 800 phasing out is that Maruti Suzuki has launched a number of small cars, which are doing extremely well for the company.
Fiat Palio
Skoda took a cue from Maruti and decide to phase out its Fabia (1.2 petrol) and Octavia (1.9 TDI engine) models rather than upgrading them to meet the new emission norms.

The Ikon has been a lifesaver for Ford for a very long time, but its 1.3 litre petrol variant, which does not comply with the BS IV norms, would be phased out.
Skoda Fabia
All the models of Chevrolet, except the Tavera, have been calibrated to be BS IV complaint. So Tavera would put an end to its big city life and make a detour to the BS III complaint cities of India.

Fiat was in bad shape in India until it launched the Linea and the Punto. Palio, which was already counting its days, got the final blow when Punto became the hot favourite of Fiat. Palio will finally rest in peace, at least in the thirteen BS IV compliant cities.
Skoda Octavia
The thirteen cities where BS IV norms will come in effect from April1include Delhi & NCR, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Pune, Surat, Ahmedabad, Agra. The new norm will bring a major blow to these car companies as these thirteen cities constitute about 40-50 per cent of total car sales in the country.

Car manufacturers have already hinted at increasing their car prices post the implementation of the new emission norms. Since the internals of the cars including the engine and transmission have to be upgraded so as to comply with the new norms, the cost per vehicle would rise up Rs 10,000 to Rs 20,000. Now, in the light of the BS IV norms, the automakers have two choices – either to phase out the vehicles or to upgrade them (in which case the price hike is justified). But since these models have been in India for about a decade or more, it makes less sense to upgrade them and phasing them out from these cities seems like a more viable option.Chevrolet Tavera

    SocialTwist Tell-a-Friend     Add to Technorati Favorites                 Add New Post

M F Husain’s Carname

Reply


MF Husein with his Bugatti Veyron and Shobaaa DeThe Picasso of India just bought himself a Bentley. Yes, M F Husain, the Qatari artist of Indian origin walked into a Bentley showroom, chose a car and wanted to take it home right away. What about the payment? He just swiped his credit card.

M F Husain, the man who dares to walk barefoot has bought the car. He already has an extensive and expensive lineup of cars. He has a Bentley, two Jaguars, a Mercedes, a Ferrari and Rolls Royce. If you’re thinking the most important car has been missed out, hold on. We just want to emphasize a little more on that special car. Yes, the Bugatti Veyron, which is very much a part of the artist’s garage, hasn’t been forgotten. Only five rich and famous people in the Middle East own a Bugatti Veyron and M F Husain is one among them.

The artist had bought the spanking Bugatti Veyron in Dubai. He has been on exile and is constantly travelling between London and Dubai. This car, however, seems to have been purchased for his son. The million dollar Bugatti Veyron EB 16.4 is the fastest production car in the world. It features an 8.0 litre W16 engine. It has sixteen cylinders in two banks of eight cylinders, or something like two narrow angle V8 engines mated in a W configuration. Each cylinder has four valves for a total of sixty four, but the narrowly spread out eight configuration allows two overhead camshafts to drive two banks of cylinders. So, only four camshafts are needed. The engine is fed by four turbochargers.

The Bugatti Veyron is strapped with a dual clutch Direct-Shift Gearbox that is computer controlled and automatic with seven gear ratios and a shift time of less than 150 milliseconds. The Veyron can be driven in either semi-automatic or fully automatic mode. The car also has a permanent four-wheel-drive feature. It uses special Michelin PAX run flat tyres, designed specifically for the Veyron to accommodate its top speed. The tyres can only be removed from the rims in France. Kerb weight of the car is 2,034.8 kilograms. The final production Veyron engine produces 987 bhp and generates 1,250 Nm of torque.

On the whole, buying a Bugatti Veyron is a very luxurious and unimaginably expensive affair. M F Husain had bought the car for his son. He got it personalized too. The headrests on the seats of the car carry Maqbool Fida Hussain’s initials, MFH. Till date 220 Veyrons have been built and delivered. Ralph Lauren, Simon Cowell, Tom Cruise, Tom Brady, Scott Storch and Tim Cahill all own a Bugatti Veyron.

Coming back to the Bentley that M F Husain just bought, the managers at the showroom were awe-struck. They rushed out of their cabins to see who was buying the car. Even the rich sheikhs of Arabia pay for such cars only in installments. How did this man manage the task? The artist is wealthy. He also owns forty horses. A single painting of India’s highest paid artist brings him a couple of million dollars. If this man can’t afford the car this way, who can?
    SocialTwist Tell-a-Friend     Add to Technorati Favorites                 Add New Post

The Top 10 Models on the Indian Road

2


Car Sales in IndiaIt’s time to evaluate the best selling cars for the month of February. There was a big demand for the newly launched models. The fear of bearing the burden of a higher price after the budget was the second factor that drove sales like never before. Many car makers reported record-high sales. Let’s have a look at the top 10.

Maruti Alto, India’s largest selling car since 2006 has been February’s largest selling model too with sales of 20,844 units. The city car Hyundai i10 comes second with sales of 13,833 cars followed by Maruti Wagon-R selling 12,827 units. Maruti does not stop with these two cars. There are other cars from the family and the Maruti Swift occupies the 4th spot after selling 12,341 units. Next in line is Tata Motors’ first passenger car, the Tata Indica with a sales figure of 11,502 units. It seems that Hyundai customers have replaced the Hyundai Santro in favour of the i10, but the car is still in demand occupying the 6th position after selling 8,783 in the month of February.

Maruti Suzuki Swift DZire has been sold to 8,706 customers. This entry level sedan from the Indian automaker Maruti Suzuki occupies position 7 in the top 10 models of February. Even after over two decades of its launch, the Omni still sells in the Indian market without much face-lift or change in mechanical aspects. In February, it sold 8,011 units. Tata Indigo and the comfortable and spacious off-road MUV Mahindra Bolero occupy the ninth and ten positions respectively. While 7,373 units of the Indigo were sold in the month of February 2010, Mahindra saw the sales of 5,761 units of its Bolero.

New cars too have diligently contributed towards the rise in sales. The funky Chevy Beat sold 4,431 units and helped GM cross the five-digit monthly sales mark for the first time ever. Its competitive price tag has worked the magic on hatchback buyers. The other model that has amazed everyone is the Mercedes E-Class which sold 161 units in the month of February. Doesn’t this go to prove that if the same car comes with a lighter price tag it will see much higher sales?

The Toyota Fortuner continued its crushing dominance of the SUV segment with sales of 972 units compared to 348 units for the Ford Endeavour. The newly-launched, competitively priced Maruti Eeco minivan has seen a very good start. In February, 2657 units of the Eeco were sold. This is a very good figure compared to its forerunner, the Versa. As for Skoda, the Superb continues selling superbly. 373 units of the Skoda Superb have been sold in the month of February.
    SocialTwist Tell-a-Friend     Add to Technorati Favorites                 Add New Post

Passat and Jetta to get BS IV compliant engines

20


Volkswagen Jetta In IndiaWell, the new Euro IV emission norms will come in effect from April 1st and while most of the car manufacturers are busy hiking their car prices, Volkswagen is a planning to do something different. In order to comply with the new emission norms, is ready with Passat and Jetta flaunting all new BS IV compliant engines

Along with the new 16-valve 2.0 liter common rail turbo diesel engine, the new Jetta will also feature some new cosmetic changes including new grille and bumpers. The new engine will have a power of139bhp, as compared to the 105bhp produced by the previous 1.9 Pump Duse engine.

The new engine, which is compatible to the new Bharat Stage IV emission norms, is claimed to provide better fuel efficiency and at the same less noisy compared to the previous one. However, in order to keep the price tag of Jetta competitive, VW will not pair it with DSG twin-clutch transmission and will be available with manual transmission only.

On the other hand, the VW Passat will continue with the 2-litre common-rail diesel. But, here is the news, it will, for the first time since its launch in 2007, also get a petrol engine. Volkswagen Passat will get the same turbocharged direct injection 1.8-litre petrol, which currently powers the Skoda Laura.

With the new petrol engine Passat, VW is planning to give a tough competition to Honda Accord. While the Passat’s 160bhp is not much compared to Accord’s 177bhp, its direct injection powerplant has a massive 25.5kgm of torque from a low 1500rpm. This will enhance the performance of Passat and the 0-100kph could be achieved in less than nine seconds.
Volkswagen Passat in India
In an effort to outdo the Honda Accord, Volkswagen will price the Passat very aggressively. It is, indeed, talking about a Rs 20 lakh price tag for this car.

And this comes at a time when major car manufacturers are grabbing the opportunity to hike their car prices, all in the disguise of the new emission norms. Volkswagen is definitely setting an example to all the other car manufacturers.


    SocialTwist Tell-a-Friend     Add to Technorati Favorites                 Add New Post

Toyota Kirloskar Motors may export Etios

8
Toyota EtiosToyota has taken a hint from its compatriot Nissan Motors and is now contemplating to ink an MoU, through its Indian subsidiary Toyota Kirloskar Motors, with Ennore Port Limited to export its ‘Etios’ to global markets through Ennore port in Tamil Nadu in the upcoming years.

Toyota Kirloskar Motors (TKM) is a joint venture between Toyota of Japan, holding 89 per cent of the total equity, and India’s Kirloskar Group. TKM is planning to ship its cars from its upcoming small car manufacturing plant at Bidadi, near Bangalore in Karnataka, which is likely to start production by the end of this year. As per the company’s earlier announcement, the small car is meant primarily for the Indian market, but its planning to export it to the other parts of the world too. TKM is also looking at sharing the infrastructure with Japanese competitor Nissan.

TKM is quite reluctant to divulge the export plans, but it said that discussions are on with the Ennore Port on identifying land. You will find it quite interesting to know that Etios was developed jointly by Indian and Japanese engineers. Yoshinori Noritake is the chief engineer of the Toyota Etios project.

“With the concept of ‘World first–India first’, we will sell Etios first in India (in the first year) and then we look at for export markets. We hope to start exports of Etios from 2012 onwards to neighbouring countries, ASEAN and African regions. The new plant will have a production capacity of 70,000 vehicles in the first phase and this can be increased to 200,000 in the next phase,” said Toyota Kirloskar Managing Director Hiroshi Nakagawa was quoted as saying to reporters recently. He added, “The production of Etios sedan and hatchback cars will start from this year-end mainly for the domestic market,” he said.

“Etios will be pitched against Swift and Swift Dzire. While the car’s exact price will be made known only at the time of launch, we expect it to be in the range of Swift and Dzire cars. Despite lot of features and high quality, Etios will have a localisation level of around 75 per cent initially and then will be increased to 100 per cent in the near future. “The car features a new platform engine and is 10% more fuel efficient than its nearest competitor. Given the advantage, we will price the car at a most competitive price point,” he said.

The new plant will accommodate six vendors including component giants like Jai Bharat Maruti (JBM), Stanzen Toyotetsu India Pvt Ltd, Wheels India Ltd of TVS Group, Asahi Glass, Bundy India, Tata Johnson Controls Automotive Ltd and Supreme Greaves.

Toyota will invest about Rs. 3,200 crore in this project. Toyota is aiming to expand its sales and service network to about 150 dealers by 2010. Five more dealership would be added in Tamil Nadu alone.

    SocialTwist Tell-a-Friend     Add to Technorati Favorites                 Add New Post