Monthly Archives: March 2010

The Mahindra Xylo 4×4 Is on Its Way

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Mahindra Xylo 4x4 during the Mahindra Great EscapeDid you know that the Mahindra Xylo MPV was made with a 4-wheel drive system in mind? During the vehicle’s launch itself in 2009, it was announced that it could sport a 4wd unit. All the required engineering had been done. Now, thanks to our friends at Business Standard Motoring, we have some info and even pictures of the car. This was the car that had joined the Mahindra Great Escape cast at the recent event at Khimsar in Rajastan. If you’re thinking the car must have suffered the last round of R&D tests, let’s make it clear that it easily crossed the finish line without a single sob.

The Xylo was actually created to be a part-time 4wd system using an advanced version of the Borg & Warner system. Now, can it be a real-time all-wheel drive system? Can it be something like the Honda CR-V, the focus being on road grip and dealing with messy roads and not really as a wholesome off-roader? Well, as of now, nothing can be told for sure. If it becomes one, the new Xylo would be the first MPV in India with a 4-wheel drive system. Another question. Will anybody in our country accept such a concept? Will anybody buy the Xylo 4×4? In additional to selling the car in India, Mahindra may export it to other markets like South Africa.

Mahindra & Mahindra has other tasks too. It is busy working on three SUV platforms. We all know that the new generation Scorpio is on its way. Mahindra plans to maintain the body-on-ladder design in the new Scorpio too. But, did you know that there will be two other SUVs also? There will be a sub 4-metre SUV with a sub 1500cc diesel engine. Mahindra will benefit from this construction. The excise will be the same as that of a small car. The new car will not have too much of a competition too. There is just one competitor to battle out, Premier’s Rio. But, who knows? Once Mahindra enters the battle field, there may be many others following.

So now, we know about the two new SUVs. Wondering which is the third one? It will be the world SUV that plans to leave Mahindra’s Chakan facility next year. This one is going to carry a tag of Rs 16-18 lakh. The SUV is going to be overpowered with plenty of features. A powerful diesel engine and an automatic gearbox will be standard. The SUV will also have automatic climate control, cruise control and ESP.

Will it be something like the Chevrolet Captiva or Toyota Fortuner? Well, it has been aimed at being so. The SUV will basically be made for export markets. Mahindra wants to expand its presence in developed nations too. By the end of this year, the company plans to begin selling its pickup trucks in a more developed market like the U.S. This world SUV and the new Scorpio may sport a new petrol engine under the bonnet.
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Toyota Loses Exclusivity for ‘Prius’ trademark in India

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Toyota PriusToyota may resort to several methods, including numerology, to improve its luck in the automobile industry, but at the moment nothing seems to be working out in Toyota’s favour. First it was the massive recalls of its various models which affected the sales and turned things upside down in the U.S. And now after the launch of its globally popular hybrid model, Prius, in India, it has been denied the rights to exclusive “Prius” trademark.

‘Prius’ is a Latin word which means “prior” or “before”. Toyota picked up this name for its hybrid concept, which was launched in the Tokyo Motor Show in 1995. The name was picked with an intention to indicate that the Toyota’s hybrid, Prius, was ahead of the other hybrid cars that would come. One thing that Toyota missed out on was registering the Prius trademark worldwide. Now that little folly of theirs is proving costly for them as an automotive company in India called Prius Auto Industries cropped up about half a decade ago and registered the prius name as its own trademark.

Toyota which had moved the Delhi High Court for the “Prius” name got a whack on the face when the Delhi High Court dismissed Toyota’s petition that sought exclusive rights over the “Prius” trademark in India. Toyota wanted the ‘Prius’ brand exclusively for its own purposes but the Delhi HC dismissed Toyota’s plea seeking an order that prevented Prius Auto Industries, a high-profile automotive supplier, from using their trademark.

Well, all that is fine, but why did Toyota, after the launch of Prius, want to get into this trademark tussle. Supposedly Toyota believes that the customers of its spare parts would get confused with the products of the Prius Auto Industries and would be deceived into believing that products of Prius Auto Industries, are from the Toyota group. This plea was also dismissed by the court, saying that the Toyota buyers in India are from high income group and well educated to understand that component manufacturer Prius Auto Industries cannot manufacture or be related to one the world’s most acclaimed automobile.

The politics of trademark is fierce in the auto industry and the latest one to suffer is Toyota. Prior to this there have been many cases where car manufacturers had to compromise on the preferred name for a model. Earlier when Ford wanted to launch its SUV with the name ‘Everest’, it could not do so, because that name was already patented by someone else in advance, and Ford had to settle down with ‘Endeavour’. Apart from that, Suzuki Splash is Ritz in India as Ford owns the rights for the ‘Splash’ tag.
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Narain Kartikeyan to Make Nascar debut

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Starbeast Motorsport founder Miguel Abaroa and driver Narain Karthikeyan.Padma Award nominee, the fastest Indian, First F1 Indian Driver, Indian racing legend… The list goes on. We are speaking about Narain Karthikeyan, he never seems to stop amazing us. The Fastest Indian Driver has tasted waters in almost all the reputed races of the world, be it National Rally Championship, Formula One or LeMans. Now Narain is all set to become the first Indian to participate as a driver in the reputed NASCAR Camping World Truck Series.

Narain Karthikeyan has teamed up with Starbeast Motorsports to make history in the Kroger 250 at Martinsville Speedway this weekend. The duo has partnered with Wyler Racing and JTG Daugherty Racing to run a partial schedule in the NASCAR Camping World Truck Series beginning March 27, 2010.

In this competitive environment, the JTG Daugherty Racing stables will also boast of a driver from Australia, Sprint Cup driver Marcus Ambrose, making this the only garage to have two eastern hemisphere drivers in their NASCAR lineup.

Starbeast Motorsports was founded in 2009 by former open-wheel driver Miguel Abaroa, a native of Mexico, as a racing team that seeks to develop foreign drivers with the intent of introducing NASCAR to markets around the world. Starbeast Motorsports works to position international drivers for opportunities to maximize NASCAR’s global growth efforts.

“We have always had a desire to work with drivers to help with their transition into NASCAR,” said Stacy Compton as quoted in a news release on wylerracing.com. Compton will serve as a driver/coach to help assist Karthikeyan as he makes the transition from Formula 1 and Le Mans racing to NASCAR.

Jon P. Diamond, president of SafeAuto Insurance said, “SafeAuto is excited to have such an accomplished Formula 1 driver behind the wheel of our race truck. Many of our customers are fans of NASCAR and we are looking forward to being part of taking this sport to an international level.”

SafeAuto will serve as the primary sponsor after signing a multi-year agreement with Wyler Racing in 2009. Karthikeyan will race the No. 60 SafeAuto Chevrolet Silverado in select races.

Wyler Racing has been fielding Toyota Tundras since 2005. The team has three wins with Toyota in the NASCAR Camping World Truck Series.

Starbeast Motorsports goal is to race in the Sprint Cup Series in two to three years. The plan is to develop Karthikeyan in the truck and Nationwide Series before making the jump into Sprint Cup.

Karthikeyan had previously tested an ARCA car at Daytona in December 2009. Today at Martinsville was his first test in the #60 Chevy Silverado.

The 31 year old Indian has 22 years of racing experience. Karthikeyan will be honored with the Padma Shri award this April. The Padma Shri is one of the highest awards a civilian can get from the India Government. It is given to Indian citizens to recognize their distinguished contribution in various fields.

A NASCAR Camping World Truck Series in progress

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End of Road For Chevy Aveo in India

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Chevrolet AveoGeneral Motors India has been on a roll in 2010. Sales have been at an all time high with the recently launched models, Cruze, Beat and Spark and the future has never looked any brighter for them. And now, amidst all these, GM India is planning to gradually phase out its under-performing sedan, Chevrolet Aveo.

GM India is planning to bring the next generation Aveo, the T type car of the 300 series platform, in the market next year and it will replace the existing Aveo. It has been confirmed by GM India that the current Aveo will not receive any facelift or new powertrains this year.

The American automaker had introduced a CNG variant of the Aveo during the Delhi Auto Expo this year. The electric powertrains, which are most suitable for application on small cars, will not be transplanted into the Aveo, but will be launched as electric Spark.

“We are set to launch our electric car, E-Spark, by the end of this year in India,” GM Motors’ Marketing Director, Gaurav Gupta said.

GM India is aiming to achieve double digit market-share in India in a few years and is doing everything in its capacity to do so.

General Motors is entering into the Light Commercial Vehicle (LCV) segment as well this year. To produce these vehicles, GM has formed a joint venture with a Chinese company, SAIC. GM is expecting to sell 1-lakh units in India this year. Unbelievable, isn’t it. GM is not ready to miss out on any opportunity to increase its market share, sales and total profits.

“We are on the growth path. Last year, we sold around 70,000 units. We hope, this year, we can improve this figure to 1-lakh, with a growth rate of about 50 per cent. We are upbeat on our ‘Beat‘ from which we see more than 40 per cent sales emanating,” he said.

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The Santa Fe Will Be Here in October

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Hyundai Santa FeWhile small, green and hybrid cars are in the spotlight, Hyundai wants to do something different. SUV is one term that we would never associate Hyundai with. But now, it has set out to proudly launch the Santa Fe, a powerful and high-performance SUV. You may expect it by October this year. Yes, we are all aware that Hyundai has been trying to bring in the newcomer since a couple of years. This time, it will hopefully launch it for real.

Some time back, it was Hyundai that first saw the potential of the SUV segment. It projected good growth in the segment and introduced the Hyundai Terracan. Unfortunately, the SUV did not impress buyers. People felt that the car was not worth the price. A little later, Hyundai too thought that the Terracan was not such a great car and phased it out. Next, the Korean giant came up with another SUV, the Tucson. The car was good, but failed to do too well as compared to other SUVs. It met with the same fate as that of Terracan. Will the Santa Fe work the magic for Hyundai?

Hyundai will set ablaze the whole car industry in India with the Santa Fe. Will it? We expect the car to come with a 2.2 CRDi engine that will churn out 151 bhp at 3800 rpm. It may also be a 2.4-litre petrol engine. Hyundai has again, very carefully, examined the growing SUV market. Toyota Fortuner has made Indian buyers crazy and Hyundai plans to do the same with Santa Fe. As of now, it is looking at pricing the new SUV at Rs 20 lakh. It may also bring the Santa Fe as a completely knocked down version to keep the costs low.

With the launch of Santa Fe, Hyundai will probably prove itself as a creator of efficient and sought-after SUVs. The use of advanced technologies, the curves and flowing design of this SUV, all prove that Hyundai has no scarcity of engineering capabilities. The car’s exterior has been decked up with slanting head and tail lamps, a flowing waistline, and flared wheel arches. One can discover quality materials and premium technologies in the interiors too.
Hyundai Santa Fe
The Santa Fe is real big. The giant has a magnificent grille giving you the message “I am bored”. This look is only going to make the car look even better. The waistline gradually rises. The flared wheel-arches accommodate gigantic wheels. The engine, as mentioned earlier, will be the best fit for the Indian fuel quality. Will the SUV make a difference on the Indian road? Will it be able to manage the stress caused by competitors like Honda and Ford? Or, will it beat the competition? Let’s wait till the end of this year for the answers.

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Hyundai cars to get costlier in April

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Hyundai LogoEveryone is on a spree. And we are talking about a particular spree that is not making anyone happier by any degree. Car manufacturers are, however, an exception to this. Anyway, the spree that we are talking about is the latest trend of increasing car prices for various reasons. New car buyers are getting the price hike blow almost every day.

First it was our very own Maruti Suzuki, which announced about the increased car prices even before the Union Budget 2010 was announced. Hyundai followed close on Maruti Suzuki’s heels and announced a price hike on its cars. The Union Budget did not do much to pacify the customers, but instead, it increased the excise duties on cars and fuel prices, not to mention the increased excise on steel prices.

While we were still recuperating from all these, Hyundai has brought another blow on the young and aspiring new car owners of India. Yes, deal with it. Hyundai has announced that it is raising the prices (once again!) of all its models in the first week of April, a company official said. Talk about repetition. Hyundai is the second largest car maker in India, after Maruti Suzuki.

“Hyundai will increase the prices in the first week of April,” Hyundai Motor regional sales manager Kumar Priyesh said. Guess what could be the reason about this latest price hike. The company officials are saying it is because of the shift from BS III to BS IV standards is the main reason for the price hike.

It is interesting to note that Hyundai has tried to contain the price hike within Rs 4500 – 5000, saying that the entire hike would not be passed on to the customers.

Meanwhile, Hyundai is also planning to bring an 800 cc small car in India, which is likely to be launched in the second half of 2011. The happy and surprising news about this car is that it is going to be priced close to the cheapest model from Maruti, the Maruti 800.

Hyundai is also planning to launch its Santa FE in the SUV segment by October, this year. The Santa FE SUV would be priced around Rs 20 lakh.
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BMW will Start Selling Used Cars Next Month

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BMW Premium SelectionTowards the end of last year, after economic recession hit the world badly, General Motors tasted the bitter pill called bankruptcy in the U.S. The company then decided to start off with a fresh approach and innovative strategy. It wanted to see a new dawn for a brighter future. Any guesses what the strategy was? Yes, General Motors planned to set up its used car business. Chevrolet OK was the name and it would sell used cars from General Motors alone as part of the project. Now what? BMW wants to follow.

BMW saw other leading market players rejoicing success with their used car wings. It wants to get a similar feel. We heard that the company will open its first used car showroom in Chennai. When? The inauguration will happen very soon, in April this year. That’s not all. It has plans of opening a second used car showroom in Gurgaon sometime during the second half of this year. Isn’t that a great step to move ahead? The car industry is already enjoying success with the increase in sales it has seen since January this year. February was the best month ever in the history of many car makers.

BMW’s used car business venture, BMW Premium Selection would soon spread the virus to all major cities in India. Who knows, you may soon see one in your city. Isn’t that great? It is indeed going to be a quality business. The proficient BMW engineers and technicians will select cars eligible for resale. The selection would be only after a thorough inspection. Also, the used BMW cars will be sold on warranty. It is probably going to be a comprehensive 2-year or 40,000-km warranty whichever is earlier, 24-hour roadside assistance, test driving, and also individual financing.

What do you think BMW has in mind about the business? BMW expects the used car business to contribute to 30 per cent of the total sales. The company, however, is not new to the used car industry. It sells used cars in the U.S., Europe and Russia under the BMW Premium Selection programme. With the care that the company takes during the selection of used cars, it sure seems like the new step is going to be a success.

The company will be focusing on the car’s health. The engineers will check for details like visible signs of accident damage, defects in paint and tyres, and complete examination of the brake system, shock absorbers, battery and electrical components. Even the mirrors, windows, sunroof, central locking and interior lights, seat belts, fluid levels, clutch, brakes and transmission, wiper blade and washing system will be taken care of. A test drive for performance and noise will be tested.

BMW set up shop in India in 2006. Till date it has successfully sold over 8,000 cars in the country. Its sales target for the year 2010 is over 4,000 units. In addition to the pre-owned car business that it plans to start next month, BMW India will also kick off its financial services. This programme is also expected to drastically reduce the financial burden on car buyers. It will certainly guarantee a well-maintained, first-class automobile with a comparatively low price tag.
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JK Tyre and Industries to invest Rs 1,600 crore in TN

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JK TyreThe demand for new cars is rising day-by-day and car manufacturers are increasing their production capacities to meet the growing demand. With this growing demand for cars, other car related peripherals demand is also increasing. One among them is leading Indian tyre manufacturer, JK Tyre. JK Tyre produce and sell tyres and tubes for trucks, buses, passenger cars, jeeps, light commercial vehicles, multi utility vehicles and tractors.

Now, many of the car manufacturers are setting up their production facilities in Chennai. And some company has to provide tyres and tubes for their cars and JK Tyres has been quick to grab the opportunity.

In order to achieve substantial expansion of its operations in the southern states of India, JK Tyres has decided to set up a new facility in Tamil Nadu, with an investment of outlay of Rs. 1,600 crore. According to the company officials, the plant will generate Rs 2000 crore in 2013-14. And this is in addition to the Rs. 150 crore earmarked for the Karnataka plant for expanding its production capacity in truck radials.

According to government sources, the state Cabinet, chaired by Chief Minister M Karunanidhi, cleared the proposal in a meeting on Monday. Company officials confirmed that the facility will be located at Sriperumbudur, near Chennai, where the government has allocated 100 acres of land. It has been projected that the plant will have an initial output of 2.5 million car tyre and 200,000 radial tyres for trucks and buses.

Construction work of the plant would start immediately and production by the second half of 2011. The plant will have an initial investment of Rs 800 crore in the first phase. But that’s not all for JK Tyre. It will be investing another Rs 750 to 800 crore on the second phase of the development of the plant, increasing the capacity of car tyres to 5 million and for trucks and buses to 700,000. This plant would predominantly be utilized for the Indian automobile market.

Vice-chairman & managing director, Dr. Raghupati Singhania said, “JK Tyres has recorded an impressive performance in the third quarter of the current year on account of cost reduction measures and better operating efficiencies. As a result, the operating profit margin has improved. Our expansions of OTR Tyre and Car radial shall be completed as per schedule by the end of March this year. The Green sight project for further increasing the TBR capacity from 8 lakh to 12 lakh and 25 lakh tyres for passenger car radials is progressing well.”
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German carmakers enhance production

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Cutting edge technology, world class luxury and comfort, that’s luxury cars for you, courtesy Germany. German auto giants, like Audi, BMW and Mercedes, have always had the upper hand when it came to the luxury car needs of the Indian. And as British marquees Jaguars and Land Rover arrive to India, German carmakers are bracing themselves for the fierce competition. After setting up their assembly operations in the country a number of them are now planning to enhance their total output.

Anticipating on the upcoming competition and growing demand, Mercedes has already taken necessary steps to beat the competition heat. Mercedes Benz India (MBIL), which is in its tenth year of running operations, is planning to ramp up production at its Chakan plant by moving into double shift operations to meet the growing demand for its luxury cars. Mercedes believes that the SUV segment is growing faster than the luxury car segment and that it plans to penetrate the segment at a much deeper level.

When the Mercedes spokesperson was contacted, he refused to comment. He said, “Right now, we are assembling variants of the C, E and S-Class here, and has an installed capacity to make 5,000 cars annually with single shift operations. At the moment, we have no plans to increase capacity. But if the market booms, we may think about it”.

Now, let’s talk about another German brand which is a hot favourite among the Indians. Yes, we are talking about BMW. BMW has resolved to reach a target of selling about 4000 units in 2010 and in order to achieve it, BMW is all set to enhance production capacity at its Chennai plant.

BMW India is planning to have a double digit growth in this year but its Chennai plant has a production capability of about 3000 cars a year. With its sales target being more than the production capacity, BMW is looking at investing more at their plant, however, the final figures have not been worked out yet. This brings good news for all the people in who are looking for jobs in Chennai. BMW is launching its SUV X1 next year and to cater to the needs of assembling the SUV X1, it is planning to increase the manpower by about 30 per cent.
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Hyundai Shifts Part of i20 Production Load to Turkey

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Hyundai Motors India's plant in Sriperumbudur, near ChennaiBe it any industry, the customer is the boss. It is the same with the automotive industry too. The demand for cars is increasing by the day and Hyundai Motors India Ltd wants to keep pace with the demand. The i20 is in great demand and Hyundai is looking to shift part of the production load.

The Korean auto maker is finding it difficult to manage the growing domestic demand and wants to reduce the waiting periods for its popular models. During the second half of this year, part of its export-related production will therefore be shifted to Turkey. The premium i20 hatchback is going to be the Turkey-produced product.

Hyundai will be gaining a lot from this shift. The three to four week waiting period looks to be decreasing and this would certainly lead to better customer satisfaction. The move will also result in a shift in the share of production capacity at its facilities. It is going to be more towards domestic production as compared to exports. Wait, there’s something more. Currently, the car maker’s export focus has been on the European market. Post June, Hyundai can shift its focus to other markets like New Zealand and Australia.

Must say that the step Hyundai plans to take is an intelligent one. The company’s domestic sales projection shows a growth of 9-11 per cent in 2011. Last year, as it sold 5.6 lakh units, it was close to exhausting its existing capacity of 6 lakh across the two facilities in Chennai. Whoa! Luckily, it didn’t. The Turkey shift is definitely going to help Hyundai ease out a little. On the other hand, it is going to enhance domestic sales and help the company balance its growth target.

A small amount of the i20 production is going to be shifted to Turkey. Only the three-door version will be produced in Turkey. The i20’s five-door variant will continue production here. Hyundai will send them out as completely knocked down kits. As of now, the company has maintained a 50:50 split between exports and domestic sales. Very soon, this ratio will be a little heavier on the domestic sales side. It is only with the perfect volumes of production that Hyundai will be able to maintain growth domestically.

Shifting a part of the premium hatchback production work to Turkey would clear up a space of 50,000 units a year in its facilities in India. Not just that. It may also enhance competence to add additional 30,000-35,000 units a year to the already existing 6 lakh capacity. This addition, however, is going to be made use of in domestic sales.

Right now, Hyundai’s production is around 50,000 a month at three shifts. During the second half of the year, this is going to go high. With the steadiness of the various shops and improvisation to make the systems more efficient, annual capacity can be expanded to around 6.30-6.35 lakh. Looks like there is enough room for Hyundai to add capacity.
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