Nano on Fire

Tata Nano up in flamesTata Nano has always been in news for both right and wrong reasons. This small car which incidentally is the cheapest car of the world is celebrating its first birthday tomorrow.

But this memorable event has been dampened with a fiery incident just a day before its birthday. In a fourth of its kind, a brand new Tata Nano burst out in flames just after 45 minutes after the car was delivered from the dealership.

Tata Nano is the world’s cheapest car but wish we could say something nice (on the first year anniversary) about the safety features of the car. Last year, there were three incidents which reported Nano catching fire due to possible electrical fire. And now there is a fourth report of a Nano catching fire on its debut tour to home. Just after travelling, from the dealership, for about 45 minutes the vehicle burst into flames.

As of October 2009, Tata suffered bad publicity because of three incidents of the Nano vehicles bursting into flames. These three fires were, supposedly, caused by electrical short under the vehicle’s steering column. But in the latest incident, the fire started with the engine and not the steering column.

During these incidents Tata Motors shirked from its responsibility of recalling the Nano cars, saying that it would conduct the pre-emptive checks on cars that were to be handed over or those that were with customers. Tata Motors satisfied themselves with this low key inspection and believed that Nanos won’t catch fire anymore. But this ignorance of Tata Motors did not prove to be very blissful.

According to reports, Satish Sawant took delivery of the car and, since he cannot drive, the company organized a chauffeur to deliver the car home. On his way back, a motorcyclist on the signalled something was wrong to the rear of his car. Sawant turned and noticed fire. He and the driver immediately jumped out of the car to safety. So much for the car being the cheapest.

Sooner or later, this had to happen. In order to make the cheapest car in the world, Tata Motors sacrificed on various safety aspects, the horrible results of which would not be tolerated even by the lower middle class car buyers.
Charred remains of the NanoTata Motors is planning to launch its ultra cheap, though very risqué, car in Europe and the US very soon. But with a history like this, we would suggest that Tata rather chose to keep its baby to itself than getting sued over matters of fire.

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The Queen’s Car Invites Bids


Jaguar Daimler Majestic Ever dreamed of travelling like a king or queen? Here’s your chance. Grab the opportunity before it is too late. There is one thing for sure; this is no ordinary deal. One of the rarest cars, Her Royal Highness Queen Elizabeth II’s personal Jaguar Daimler Majestic is up for sale this year. Yes, you’ve heard it right. It is up for grabs for the bargain price of $120,000 or Rs 54,61,200.

The lucky one will have the car that was driven by the Queen herself. A visit to a friend’s home or a low-profile official event, the car stood by her. The beautiful royal car accompanied the royal beauty to social events where she could drive the car herself.

Are you a Jaguar fan? Or, are you crazy about having a rare collector car? Are you looking for a car driven by one very special and careful lady driver? There cannot be something better. This auction is what you’ve been looking for. The Queen’s Jaguar is still as it was when she first bought it. It has travelled just 22,582 km in three years. The Queen had an identical car from 1998 to 2001. She liked it so much, that she wanted the same car again with just a few changes.

The Queen sat inside the car. She now wanted some fresh air, but did not like the wind blowing directly on her face. There it was; an extra switch on each of the rear doors to control windows on the opposite side. This creation was creative and unique. Now, if the Queen was not alone in the car, where would she keep her handbag? She was a little worried. Jaguar solved the problem by replacing the normal armrest with one that had a sliding tray. The Queen could keep her handbag on top and push back the tray to hold it just right while the car moved. This is a secret! The car had a hidden panel of security lighting. Shhh, do not tell anyone.

Are you really interested in the royal car? Here’s some info you would like to have. The Majestic was finished in a special shade of British Racing Green. The car featured a secure telephone line linked to Number 10, Downing Street and the Home Office though not operational any longer. Right now, a specialist memorabilia dealer owns the car. How we wish the car is not overused or misused after the auction. It would be really nice to see the car as part of a collection and not used on a daily basis. We just hope the royal beauty finds a fitting home.

However, it all depends on the one who buys it. The person can use the car as he wishes. We wish the car a long life. Let it live to be a classic. The Queen has handled it well. She is and has always been a careful driver since her time as a motor mechanic in the Women’s Auxiliary Territorial Service during World War II.
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McLaren’s New Supercar


McLaren MP4-12CFormula One automaker McLaren has launched an ultra-high-end exotic automobile, whose performance is superior to that of its contemporaries. The very expensive, very fast and very powerful car with sporting handling to match is all set to capture the high-performance commercial sports car market. Will the sleek, eye-catching car succeed? We hope so.

The new supercar will go into production in 2011. 1,000 cars are expected to leave the production facility next year. The MP4-12C will be modeled on technology used by McLaren’s Formula One team. What will the very expensive price of the pricey car be? Well, it is a 150,000 pounds or 1,02,05,328 Indian Rupees so to say. That’s not too much for a supercar, right? The production of the car is creating 300 new jobs and that’s something nice.

1,000 units in 2011 and 4,000 by 2015. This is what McLaren has planned. You will see not just one, but a series of such cars. Isn’t that amazing? Yes, we will hopefully see a series of top-end sports cars in a few years from now. McLaren says that it had always dreamt of producing a range of high-performance sports cars that took raw elements of Formula 1 principles. It now sees the dream slowly turning into reality.

The company has made limited numbers of more expensive supercars in the past, but never this many. McLaren‘s achievements in F1 have made it the sport’s second most successful team after Ferrari. With the launch of the new car, it is scaling new heights. There have been other iconic British sports car makers that pushed their sales into large-scale manufacturing. Many of them tasted failure. Does McLaren fear that? Not a bit. At the moment, the company seems to be highly optimistic and does not want to be, in any way, offending any other small car manufacturer that hasn’t succeeded in any motor sport. That’s quite a point there.

A series of cars inspired by Formula One, built on the pride and passion to the highest quality and rich in McLaren DNA is what McLaren is looking at. McLaren Automotive chairman Ron Dennis said that the plans confirmed their intentions of challenging convention at the highest levels of automotive design, from a hi-tech facility; a home that will deliver expertise and innovation in manufacturing and engineering and not to forget, jobs too.

The 12C will be built at a specially designed plant south of London which will start production by 2011. McLaren has high hopes about the North American car market. The new supercar will be sold through retailers in 19 countries and it expects 40 per cent of the sale to come from North America alone.
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Interest Rates on Auto Loans to Increase


Be prepared to shell out more on your auto loans now. Banks, these days, are busy revising their auto loan rates and set to increase the interest rates. This comes soon after the Reserve Bank of India hiked the repo and reverses repo rates.

This comes soon after two consecutive hikes in car prices and a 50-75 basis point hike in interest rates by banks like HDFC Bank and Kotak Mahindra Prime with effect from March 1 this year. The combined effect of these hikes on car prices would vary from Rs 5,000 and Rs 50,000, depending on the models you decide to purchase.

While rising costs of inputs prompted the first hike in car prices, the second increase came as an immediate reaction to the Union Budget. The increased excise duty on cars by 2 per cent as part of an initiative for a partial rollback of the stimulus and an increase in fuel prices has prompted the move.

First came the increase in excise duties which increased the car prices and now the increased interest rates. But this is not exactly the worst situation because it has the potential to worsen further if the new emission laws come in effect from April 1, 2010.

The interest rates on auto loans had been kept low for the entire current fiscal and the first hike took place in March. Despite that the current interest rates on cars are lower than that in April last year. While the current rates vary between 10.5 per cent and 11.5 per cent, it was around 12.5 per cent in April 2009.

But industry experts are of the view that the growth momentum will continue in March, which as seen a few new launches in the compact car segment.

“The low base of last year as well as a slew of new launches and an enhanced focus on rural sales will ensure that growth will continue to be robust in March at around 25 per cent vis-à-vis last year,” Abdul Majeed, analyst and partner, Price Waterhouse said.
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Hyundai all set to counter Nano


Green cars. Yes, these days, green cars are making a lot of noise. Everybody is talking about them. Car makers are busy creating some. Environmental pollution and its fatal consequences have finally got into our heads. The Nano talk is in full swing. Now, Hyundai says, “It’s my turn”.

Hyundai has plans of coming out with a car smaller than its Santro. When? Well, in a couple of years. Will it be something like the Nano? No, the new model is definitely not going to be as small as the Nano. Why? Hyundai Motor India Limited has a set of standard norms and these norms of standard do not allow the company to manufacture a small car like the Nano.

Did you know the Nano will roll out from Bangladesh too by the end of 2010? Tata Motors recently said that it would launch the Nano in new markets like Sri Lanka, Bhutan and Bangladesh by this year or early next year. In February, the company displayed the Nano in Bangladesh at the India Trade Fair. Doesn’t it seem like Tata’s small wonder will work big wonders in our neighboring countries?

Hyundai, however, has said “No” to something like the little Nano. Hyundai has opened a new dealership in Thrissur district of Kerala with an area of 44,000 sq. ft for sales, service and spares and will have the entire range of Hyundai cars. Well, may be two years from now, and we will see the new tini-mini Hyundai car as well in the showroom.

The new Hyundai facility is the second one in Thrissur district and the 19th dealership in the state. Hyundai is on the verge of scaling new heights yet again. The dealership takes the total number to 46 just in the Southern region.

As of now, Hyundai is very delighted. It enjoys a market share of 20.6 per cent in Southern India and 16 per cent in Kerala. By the end of 2010, Hyundai plans to increase this percentage to 22 and 20 per cent for southern India and Kerala respectively. In Kerala alone, Hyundai managed to sell 19,603 units last year. Great number, right? Well done Hyundai!

Last year, Hyundai Motor India Limited registered a 14.4 per cent increase in sales compared to the year 2008. It sold 5,59,880 cars in 2009. Hyundai is growing and all of us can see it. In the domestic market, it showed an 18.1 per cent growth as compared to 2008 with 2,89,863 units. In the overseas market too, the company’s sales grew by 10.7 per cent with export of 2,70,017 units. With the commissioning of its second plant in February 2008, the total production capacity of HMIL has gone up to 6,00,000 units a year now.
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GM to Recall Cruze and Captiva models

Victory sounds like a nice word to everyone’s ears and to emerge victorious you have to be in league with your counterparts. And competition is a major aspect of that. One of the most important kinds of competition that can be seen in the auto industry these days is the ‘recall’.

Yes, you heard me right. Car recalls have become so common these days that they feel more like a part of the procedure rather than an anomaly. The memories of the latest recalls from Honda, Maruti Suzuki and Toyota are still so fresh in our mind and now we have to make some place for the latest recall venture from American auto manufacturers General Motors.

The South Korean subsidy of General Motors is recalling about 60,000 units of its popular models, Cruze and SUV Captiva. About 45,957 units of Sports Utility Vehicle Captiva, which is sold as Winstorm in South Korea, will be recalled due to problems in the steering system. These SUV’s were made between April 1, 2006 and December 31, 2007, the Ministry of Land, Transport and Maritime Affairs said in a statement.

Along with Captiva, GM will also be recalling about 12,604 of the Chevy Cruze sedan, which were manufactured between Sept. 25, 2009 and March 2, 2010. This time the problem pertains to fuel supply pipes. Chevy Cruze sedan is sold as Lacetti Premiere in South Korea.

“GM plans to recall the models with the problems in other countries. But every country has different rules and standards and each GM operation will decide the size and timing of recalls of those cars depending on their own situations,” a GM Daewoo official told Reuters by telephone, asking not to be identified.

GM Daewoo, which had earlier said that it intends return to profit this year, suffered net losses in 2008 and 2009 amid falling demand in the global downturn.

GM Daewoo aims to increase its exports 13 percent year-on-year to 1.6 million vehicles this year, and targets a domestic market share of more than 9.9 percent. Now the recall of its popular Captiva and Cruze models is sure to jeopardize this lofty dream.
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The Logan in the Palms of Destiny

Mahindra Renault Logan

Nissan is busy looking for partners to produce a car to be positioned below its Micra. Now, Nissan says, anybody but Mahindra & Mahindra. Why? Well, Nissan sells the Renault Logan but is not too happy with the car’s performance. M&M and Nissan are actually too busy with this existing car. They are thinking of repositioning the Logan and simplifying it. The Logan would not be withdrawn from the Indian market though.

Mahindra-Renault confirmed that both the Logan and the joint venture would stay. Will a revamped version of the entry level sedan be rolled out? There are rumours on bringing in a shortened version and now you know why the company is currently offering discounted Logan cars.

We just heard that the long body may be reduced a little in length. It is believed to decrease from 4.2 to 4 metres and will also upgrade its local content. With these changes, the car will fall in the small cars category and will be able to enjoy the 10 per cent excise benefit. The car has failed to create an impression on the minds of Indians. Only around 5,000 units have been sold since April last year, 60 per cent lesser than the previous year.

What is going to be the destiny of the joint venture? We do not have a say as Mahindra and Renault have been discussing the matter. It does look like the venture will survive long. However, with mutual understanding, the business model or products might be squeezed a little. There’s one thing for sure; the Logan will remain on the Indian road.

The market response to the Logan has been very saddening for both Mahindra and Renault. The car may soon be simplified and we may hear some news from the company very soon. Logan customers, however, will enjoy the services of the company. The car will have a completely normal lifecycle. If not for all this drama, don’t you think it is strange to see the rates of the Logan climb down when rates of other cars are climbing up?

All car makers are looking for excuses to increase prices. They say, the manufacturing costs have risen, the BS-IV norms are stringent and the prices will have to go up. Mahindra-Renault has decided to take a deviation from this trend. It is offering huge discounts to perk up the Logan’s sales. Currently Mahindra-Renault JV is trying hard to cope with the major decline in sales of its entry-level sedan. A mere 500 units per month is a sad figure. To add to this, the dealers too are burdened with Logan’s huge inventory pile-up.

When there are so many cheaper alternatives these days, nobody wants to even sniff the Logan. Do you believe this? A discount of Rs. 50,000 is offered on the petrol version, while its diesel variant is available at a discount of Rs. 18,000. If you are already eligible for a corporate discount on the Logan, you are luckier. The current discounts are available in addition to that corporate offer. Now, if you have a soft corner for the car, you may have to hurry. The offer is valid only till the end of this month.
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Mercedes launches the new GL Class


Mercedes 350 GLCDIThe fight for the top position among the auto manufacturers just gets better, and fiercer, by each passing day. As they put it, it is a number game after all. The latest to add competition in the luxury SUV segment is the New GL 350 CDI Blue Efficiency from Mercedes. With amazing sales in both January and February, Mercedes Benz India seems upbeat and unstoppable.

The GL 350CDI BlueEfficiency is equipped with complete off-road package, 7 G-TRONIC gearbox, 4Matic Permanent all-wheel drive, Electrically folding third row seats, panoramic sunroof and a many other features that are bound to pull the customers to the showrooms.
Mercedes always goes extra miles when it comes to adding features to its cars and it does not surprise us to see special features in the new GL Class, like Downhill Speed Regulation (DSR), hill-start assist, off-road ABS assist, standard-fit AIRMATIC air suspension, speed-sensitive power steering, ADS Adaptive Damper System, COMAND system with integrated 6–disc DVD changer and reversing camera, and 19-inch alloy wheels.

The seven seater luxury SUV comes with a 3litre V6 diesel and has the Mercedes-Benz’s BlueEfficiency technology. Now this technology which makes the SUV fuel efficient, also goes on to confirm Mercedes’ environmental commitment.

Dr Wilfried Aulbur, managing director and CEO, Mercedes-Benz India said, “The luxury SUV segment is hotting up in India and so introducing this vehicle comes at the right time. The size of the luxury SUV segment in India is currently around 1600units and has the potential of 9000-10,000 units. We are hopeful that the GL would do good numbers for us. The luxury SUV market is doubling at fast pace.”

As of now, the new GL 350 will be imported as completely built unit and later when the sales have reached to at least 100 units, Mercedes will consider building it in India.

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How Dependable Is Your Car?


Porsche LogoHow dependable will your new car be 3 years from now? J.D. Power and Associates released the U.S. Vehicle Dependability Study rankings. Guess who sits on the throne this year. Yes, it’s Porsche. It overtook last year’s 3-year old vehicle winners Buick and Jaguar. Lincoln grabbed the silver medal and the bronze was taken by Lexus and Buick. For 14 years until last year, Lexus had reigned the vehicle-dependability car kingdom.

Wondering what happened to Lexus? It isn’t exactly what you’re thinking. Lexus is not getting less dependable. It’s just that the competition is getting tougher and other automobiles are climbing higher. All car brands try their best to stand out. There are many dependable cars which are not really respected by the general public. Why? 36 brands were surveyed by J.D. Power and almost all of them had lesser problems compared to last year’s study. The brands with the biggest awareness gaps, according to the survey, were Cadillac, Ford, Hyundai, Lincoln and Mercury.

This year, each of Ford Motor Co.’s U.S. brands, Ford, Mercury and Lincoln were in the top 10 while Hyundai was No. 11 and Cadillac No. 12. The average score of the auto industry was 155 problems which was a lot better than last year’s average of 167. 14 brands beat the average score this year.

Car makers feel it is easier to make more dependable vehicles than convincing doubtful customers of the improvement they have made. They continually design and build quality automobiles and tell buyers about the same. But, the convincing takes a lot of time.

This year’s survey calculated the number of problems reported by original owners of 2007 model year vehicles, covering 198 different problem symptoms. The score reflected the number of problems reported per 100 vehicles. The lower the score, the better is the vehicle dependability. All but seven brands scored below 200, meaning less than two reported problems per vehicle over the last three years.

Lincoln, which finished eighth in 2009, rose to the second position this year and No. 9 Mercedes-Benz climbed 10 spots. The biggest bombshell, however, was Jaguar’s spot. It fell from last year’s first-place tie to No. 23 this year. Its new model, Sargent may have contributed majorly to the downfall. The 2007 Jaguars were built by Ford Motor Co., as were Land Rovers. Currently, the brands are owned by India’s Tata Motors. Germany’s Audi also showed a steep descent, sliding to No. 26 from No.12 a year earlier.

Land Rover, Suzuki and Volkswagen showed consistency. The same three brands finished at the bottom both years, but in a different order. This year, the lowest scores were Land Rover’s 255, below Suzuki’s 253 and Volkswagen’s 225.

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BMW India to launch new 5 Series


New BMW 5 SeriesAfter losing the battle to Mercedes during January 2010 in the luxury car segment, BMW has pulled up its socks and ready to roll out new 5 Series. BMW India has said it is quite happy with its Indian operations and is looking to regain its top spot with the launch of new 5 Series Sedan.

The new 5 Series will have an assortment of new technologies, new engine and an optional 8 speed automatic gearbox. The new 5 Series is likely to hit the Indian roads by July 2010 and will have a price tag, in all probability, of Rs 44 – 55 Lakh. The new 5 Series will be assembled at its Chennai plant.

BMW 5 Series features the same vehicle architecture that you can see in the BMW 7 Series luxury sedans. The new 5 Series has the longest wheelbase (2,968mm), a sleek engine compartment lid, and a very graceful coupe-like roofline. It also has an optional 40:20:40 split folding rear seats and 520 litres of boot space.

The new BMW 5 Series Sedan has an Adaptive Drive encompassing Dynamic Damper Control and Dynamic Drive stability control and BMW’s Integral Active Steering.

The new BMW 5 Series Sedan is coming to India in eight-cylinder and three six-cylinder petrol engines as well as two six-cylinder diesels. The range will also include a four-cylinder turbo-diesel with an aluminium crankcase and common-rail direct injection.

The driver assist systems featured in the new 5 Series include Parking Assistant, Surround View, collision warning with application of the brakes in conjunction with Active Cruise Control plus Stop & Go, and a new Speed Limit Device. Other features that further enhance its appeal are Lane Change Warning, Lane Departure Warning, Night Vision with detection of individual persons, and a back-up camera.

All that we want to say is Audi and Mercedes are going to have a tough time figuring out a strategy to counter the frenzy that the new BMW 5 Series will create.
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