Monthly Archives: March 2010

Tata Hikes Nano Prices

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Remember the day when the Tata Nano was unveiled? The pomp and show was great when the world’s cheapest car was launched in India. But, will the Nano carry the Rs 1,00,000 tag through its lifespan, or, will it hike its price? Times are getting tougher for the creators of the wonderful car, and so, the price too may have to get a little tough.

The Nano’s parent group, Tata and its chairman Ratan Tata have been struggling to cope up with the current Indian economy. With the increase in costs of raw materials and labour, and the new higher taxes, the manufacturing costs too are rising. Post budget, steel has seen an average rise in price of 25 per cent. The prices of copper, aluminum, plastics and rubber are increasing by the day and Tata finds it difficult to maintain the low price of the Nano.

Will the People’s Car remain as such in the coming years? Working middle-class Indians just switched over from two to four wheels. Blame the slight sophistication in the lifestyle on the Nano. The price did it all. But, what do you think will happen now? What if the Nano comes with a slightly hefty price? Will Ratan Tata’s dream project still be a success? Many car makers have already increased their prices. Will Tata be able to manage the heavier price?

Over 26,500 Nanos have already been sold, and as promised, the first 1,00,000 cars will be sold at Rs 1,00,000 regardless of the high manufacturing costs. Now that’s a gentleman’s promise from Tata. Wondering what is going to happen later? Well, the basic model of the small car may see a Rs 30,000 hike and the high-end version, the price of the Nano LX may increase to Rs 2,00,000. Currently, the Nano LX is priced at Rs 1,72,360-1,85,375. The increase in prices will probably be seen towards the end of this year, once the second round of bookings begins.

Tata, however, has remained tight-lipped about the prices. It was unsure of the future price. It confessed, though, that the rising manufacturing costs were making it difficult to sell the car at a low cost. The Nano has already sparked the fire and many other car makers are coming up with ultra-low-cost cars. The competition is getting tenser. Ford, Honda, Toyota, and Renault and Nissan along with Bajaj Auto all plan to make small cars in the next two years.

India’s population is huge. But, only 8 per 1,000 people in India own cars as compared to Germany and France with 550 and 495 per 1,000 people respectively. Even after the increase in prices, the Nano is likely to remain cheaper than its rivals. The Nano stands a better chance of increasing the number of Indian car buyers. Demand for cars in rural parts of India is increasing because of Nano’s low price.

The eco-friendly Nano looks great. The toy-like cuddly car delivers a safe feeling. Tata has bigger plans. It wants to sell the Nano in the U.S. However, that would happen only after the car is redesigned with a larger engine and greater safety features. So, that is going to take some time. Last year, a European version of the Nano with airbags and leather trim, with more stringent safety and emissions standards was unveiled by Tata. Way to go Nano!
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Renault Nissan car plant inaugurated by Tamil Nadu CM

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Tamil Nadu already boasts of being home to major automobile manufacturers that include BMW, Daimler, Ford, Hyundai, Mitsubishi, and now it has one more plant added to its ever increasing list. Yes, I am talking about the Renault Nissan car manufacturing plant that was inaugurated yesterday by the Tamil Nadu CM, M Karunanidhi.

Mr. M Karunanidhi, speaking on the occasion said, “I have a dream to make Chennai as one of top 10 centres for automobile manufacturing in the world,” and added, “With the establishment of Renault- Nissan car project, Chennai has become the home for seven auto majors out of top 20 global automobile manufacturers.”

Tamil Nadu has always been a fore-runner in investor friendly policies and no wonder Chennai appears as one of the most favourite among the car manufacturers for setting plants. But there is a glitch; Chennai does not have advance facilities for vehicle testing and this becomes an inconvenient factor as the manufacturers have to take the vehicles to Pune for testing and certification.

Excited by the State government’s initiatives, the Union government is implementing the National Automotive Testing Research and Development Infrastructure Project (NATRIP) in Oragadam at a cost of about Rs. 450 crore. The State government has already granted 304 acres of land to this project. This project is aimed at facilitating the introduction of world class automotive safety, emission and performance standards in India and ensuring seamless integration of the Indian automotive industry with the global industry.

Nissan’s first made-in-India car-Micra or March will roll off the production line from the Nissan Renault plant at Oragadam. This plant will also serve as the sourcing hub for the global compact car for over 100 countries, including Europe and Middle East.
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Punto 1.2L Fire Dynamic and Emotion launched, Sports to follow soon

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After having a grandly successful year with Linea and Grande Punto, Fiat is trying to push its luck further. Fiat has launched two brand new variants of Punto in the petrol hatchback segment -1.2 litre Fire Dynamic and Emotion.

And the most interesting things about these new launches are the very competitive pricing and the new features that come packed in the new variants of the oh-so-admirable Punto.

The Punto Fire comes with an impressive range of features that include tilt steering, front power windows, fire prevention system and programmed service reminder in its entry level 1.2 Active variant. The 1.2 Dynamic will offer rear power windows and central locking system.

And as if these things were not enough to pull the crowd to the showrooms, Fiat, as an introductory offer, is giving away music system in the 1.2 Dynamic. Punto 1.2 Emotion variant will come with an integrated music system, fog lamps, electric mirrors, dual tone dashboard and split seats.

As an introductory offer, Fiat is also giving away music system in the 1.2 Dynamic. Meanwhile, the 1.2 Emotion variant will come an integrated music system, fog lamps, electric mirrors, dual tone dashboard and split seats.

The exterior styling and looks of Punto has been so different, in a way that we like, from the other cars in the segment. While the others look rather like oversized women who would not go to the gym, Punto oozes raw beauty and appeal.

It is a common knowledge that automobile industry in India is growing at a tremendous pace and the small car segment, with 60% of car sales, is fuelling the growth. Fiat, so far, has had about 5.5 per cent of the market share and it is looking to double the sales figure with more variant launches in the coming months. Punto Sports is another variant which will be launched during the second half of this year.

When talking about Fiat’s efforts to raise the standard of sales figure, we cannot ignore the new Linea 1.4 T-Jet, which is set to make its debut during August – September 2010. When launched, Linea T-Jet will be the only one its segment to have turbocharged petrol engine.
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Luxury Resides in the Mulsanne’s Muscles

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2010 Bentley MulsanneJust the other day Bentley revealed its new flagship model, Mulsanne. Whoa! What a beauty the car is. You may not believe this. But, the truth remains that each Mulsanne is going to be handcrafted at Bentley’s UK plant, Crewe. Doing this is going to take a gigantic 660 man hours. There’s something more to it. Bentley will personalize the super luxury sedan based on each individual’s needs. Isn’t that super cool?

The British High Commissioner, Sir Richard Stagg, and the Bentley regional director, Chris Buxtonm unveiled the Mulsanne on Saturday at the British High Commissioner’s residence in New Delhi. The car, designed and engineered by the adept craftsmen and engineers, displays the perfect blend of supreme performance and luxury with the coach building elegance for which Bentley has long been known. The car maker has a lot of expectations from this new luxury sedan.

Will we see the car on the road in a short while? Well, Bentley does not think so. It will begin the global production of the Mulsanne only during the second half of the year at its headquarters in England. Also, Indians would love to have custom-made luxury. So, that’s surely going to take some time. Bentley will wait for the demand to rise in the Indian market and the moment the car maker feels is the right time, the car may possibly be sold out. Bentley believes it will see this phase by the end of 2011.

For the global market, Bentley plans to make 600 units of the Mulsanne in a year. For the Indian car market, we need to wait. The allocation for India hasn’t been decided yet. You will be surprised to know that Bentley has received global bookings for the super luxury car even for the year 2011. The Mulsanne used to be produced earlier between 1980 and 1992 and this may be the reason for the great demand. The new Mulsanne, however, is going to be completely different from the earlier version.

The new car carries a 6.7-litre V8 twin-turbo charged petrol engine. If you were to buy a Mulsanne, how would you get it personalized? The luxury car offers a choice of 114 paint colours, 21 carpet colours, nine wood veneers and 24 interior leather hide, all of which would be tanned using an age-old process to ensure that this future classic is retained. Put on your creativity cap and dream to glory about the different combinations one could have. The Rs 2.90-crore worth of the car should just be revealed by the uniqueness in its looks itself.

The homework, however, has promptly been completed. Bentley has already shown the car to a few prospective Indian buyers long ago, in 2009. Bentley’s cars hit the Indian roads for the first time in 1911 and the company still feels that the Indian car market is very strong. Today, India is the home of around 700 big car drivers.
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2010 F1 Rules draw criticism from drivers

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The 2010 season of the much-coveted Formula One started this weekend at the Bahrain International racing circuit. And it opened on a dull note and could not live up to the hype that was created before the racing. The refuelling ban that last appeared during the 1993 championship has made its presence known this year again. And the general consensus is that no one is happy about it.

New rules in the 2010 F1 season have banned refuelling during pit stops and reduced the front tyre size.

Most of the teams have made it obvious that they do not like the new rules which make it near-impossible to overtake on the track and without any pit-stops the outcome is more or less decided on the opening lap of the race.

Defending champion Jenson Button said: “It’s not like the old days when they had more fuel. We have so much more down-force now. You could follow cars then, slide up the inside. You could race! It’s very different now.”

Seven times champion Michael Schumacher was of the view that overtaking was almost impossible unless someone made a mistake.

And you may find it hard to believe that Mark Webber, from Red Bull, was totally bored during the races. He said, “I spent 48 laps staring at the gearboxes of first Schumacher and then Button and there was nothing I could do to pass them”. “I tried everything — different lines, pressure, everything. But they’re both good drivers and neither of them made a mistake.”

But Bernie Ecclestone, FIA commercial manager, begs to differ. He said all that the teams need are a few races to get used to the new rules including the ban on refuelling. He said that a re-assessment of the F1 rules may become necessary if the situation does not improve even after the fourth season race, before F1 moves to Europe.

But even if the re-assessment of the F1 rules happen, a set of outside engineers will be hired to draw up the regulations and the teams will be given a two months notice.
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Who Will Walk Down the Aisle with Nissan?

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Nissan has already tied the knot thrice. Who wants to be its fourth partner? Well, please don’t misunderstand. We are talking about Nissan’s partners to develop cars. The Japanese auto makers are looking for a partner in India yet another time.

Nissan’s fourth-generation Micra will go on sale in May. Now, Nissan wants to develop a car positioned between this Micra and the ultra low cost car (ULC) which it is jointly producing with Bajaj Auto. Nissan is hunting for a partner to develop this car. In addition to the already existing Renault-Nissan alliance’s three partners in India, Bajaj, Mahindra and Mahindra and Ashok Leyland, the company is looking for a fourth one. Are you surprised as to why Nissan cannot work with its current partners? Well, it has its reasons.

Bajaj Auto is too busy and does not seem too interested in making an extra effort in addition to the already existing work it has in hand. The ultra low cost car will have to make it to the Indian roads by 2012. As for Mahindra and Mahindra, the company sells the Renault Logan. Nissan is not too happy with the Logan’s performance. M and 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.

Coming to the Ashok Leyland-Nissan partnership, the two companies have come together to make a car that will compete with Maruti Suzuki’s Alto. This light commercial vehicle manufacturing project seems to be moving real well. The car will initially be manufactured in Nissan’s proposed manufacturing facility in Oragadam and also in Ashok Leyland’s facilities. So, this rules out possibilities of making more cars with Ashok Leyland too.

Nissan wants to launch two cars; one for mid-2011 followed by the idea of the Greenfield facility. Will Nissan’s tie up with so many different partners cause an overlap? Well, Nissan does not fear that. The car maker is very optimistic. Nissan, instead, is looking at the brighter side where it can gain knowledge on economical engineering and cost-effective products coming out of the tie ups. The Japanese company has felt the need to learn more from the Indian car market.

Nissan wants to focus more on the study of frugal engineering from the Indian market. It believes each tie up is for a different product to be marketed domestically and also to be exported outside. The launch of a cost-effective entry level offering in India being the fundamental reason, Nissan feels an import would not be the ideal way to go about. It wants a local partner. With successful partnerships with Ashok Leyland and Bajaj, Nissan sees no reason for not looking at another partner. The question remains, ‘Who will walk the aisle’?
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Audi Plans to make it Large By 2012

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The 2010 Geneva Motor Show is just over and the car makers now know what the buyers are eyeing. Yes, you’re right. The green and hybrid cars at the Geneva auto show made it a big hit. With the pollution levels just hitting the ozone layer and endangering everybody’s lives on earth, it is high time we realized the danger in India too. Audi has realized this, hasn’t it?

For car manufacturers, it is not really the green mantra. It is just that the electric and hybrid vehicles are becoming more and more popular, and the makers want to mint money. In another two years, Volkswagen Group’s Audi line will give car buyers a huge inventory of hybrid and electric vehicles. Yes, the car makers are hurrying before the green light for the eco-friendly automobiles switches.

Audi is targeting a 30 per cent increase in internal combustion engine efficiency and is also planning for five per cent of Audi vehicles to be electric. A highly competent Audi plans to have a new array of cars that includes a highly efficientA8 Hybrid sedan strapped with a powerful 2.0 Litre, 211 bhp engine and houses the 45 bhp motor. The hybrid will be quick. Wondering about the efficiency scale? Well, it is going to be a flattering 16.4 km/l.

The new Audi Hybrid was showcased as a concept car at the Geneva Motor Show. But, no worries. The launch is likely to happen very soon. Yes, the market release will happen sooner than expected. Oh yes! We just mentioned that Audi will have a full inventory of electric and hybrid vehicles. There are other cars joining the A8 Hybrid.

The new Q5 crossover variant too will be out in no time. By 2012, car enthusiasts and buyers will be pleased to see the hybrid version of the Q5 crossover. There’s no stop. After this, Audi wants the A6 hybrid on the roads. If you know of the A6 sedan design, this new A6 hybrid will be a fuel or electric version of that well-accepted vehicle design. Audi has big dreams now.

Remember how Audi was successful in making Quattro synonymous with its all-wheel-drive vehicle designs? Now it plans to do the same with the e-Tron brand. The main intention behind making the news of the hybrid vehicles public, is the laying of the foundation for the Audi e-Tron concept.

Audi’s smallest e-Tron features a 16 bhp an hour lithium ion battery pack that pours out a balanced stream of electrons to a front-mounted electric motor with 102 bhp. The Wankel rotary engine is characteristic of one lone rotor that transfers 254cc and sits just at the rear of the battery bundle under the rear seat. The complete package of the Audi e-Tron weighs just 70 kilogram and puts out a pleasant and solid stream of power at a constant 5,000 RPM.

So now, we all know Audi plans to make it large. It is going to climb new heights in another two years. Yes Audi, we are listening. For those who don’t know, Audi is the Latinized version of the word ‘listen’.
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Toyota on target with car recall

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Last month was ruled by the recall trend and Toyota was one amongst the many other car makers that buckled under the pressure. Toyota cars owners across the world complained about brake pedals, accelerator pedals and the floor mat entrapment issues which occurred across various models. And Toyota announced the recall of a huge number of its cars.

During the recall, Toyota’s President, Akio Toyoda, had admitted that they were not immune to fallibility and that the company would double its effort to remind everyone that its lifeline is “quality.” And that is exactly what the company is busy doing these days.

You must be wondering as to why we are talking about a subject that is so stale. Let me tell you that the latest on the issue is that Toyota has, so far, completed the repair work on about 90,000 cars, almost half of the total number of vehicles that required the repairs.

Toyota has said that the models, which needed the remedial work on the accelerator pedal and ABS software upgrade in the Prius hybrid models, take around half an hour to complete the process. Toyota workers, at more than 200 centres, are putting in extra efforts to bridge the quality gap and make the recall programme successful.

Toyota has also claimed that about 96 per cent of the owners have said that they are quite satisfied with the recall process and the work.

All things considered, the question still arises: Will the low quality standard affect Toyota sales? The answer is yes. The production of Toyota Prius has already been reduced by 10 per cent. No prizes for guessing that it has been done in the wake of the slow demands which can be blamed on the quality issues that has affected the age-old reputation of Prius. Toyota has seen a fall in the demand of Prius hybrid in the US by up to 40 per cent.
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A Storm in the Desert – Maruti Suzuki Desert Storm

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The Maruti Suzuki Desert Storm saw a real storm in the desert. The sand banks were missing. This unique race does not permit exploration of routes by participants, except during the very first stage. This only meant that tremendous pressure lay on the co-driver who couldn’t take a chance at his navigational skills

107 participants made it to this year’s Desert Storm. 44 cars in the Xtreme category had their eyes on the most desired trophy. The Moto Quads, Xplore and Ndure categories had 21 participants each. All, except the Xplore category, had a rough way ahead. The Xplore category was meant for the newcomers with their first mild storm being just an ice breaker. The night halts, however, seemed to be equally harsh on all the 107 participants.

All participants had fallen in line at The Great India Place in Noida on the 14th of February for the ceremonial start. The storm started during their next reunion on the Delhi-Jaipur Highway where men were separated from boys and girls from ladies. Next, the Wild Cat stage saw everybody wandering through the Aravali foothills along a river bed. The total run of the first Leg 1A was 434.42 kms and the rough and tough drivers and riders managed to survive the great storm.

The next day, 15 February saw participants working their way through twists and turns. This was called the Twister stage followed by the Never Ending Saga. As the name suggests, this stage seemed never ending with navigational handiness remaining very critical. The tracks went all over with competitors wandering along a crease of sand dunes. The total run for day 2, Leg 1B was 254.41 km.

On the 16th, the Airport Express or Dust to Glory and Nuke Zone or Ground Zero stages saw participants zoom through hard gravel, shifting sand banks and three dry lake beds with mining territory running alongside the Indian Nuclear Test site at Pokhran. Flat territories with a few sprinkles of jumps brought an early end to the day.

The next day, however, was the longest with two exciting stages ‘Bad Max’ and ‘The Twilight Zone’. However, the GPS which was introduced only this year helped a lot. There was tar in the beginning followed by sand and then more sand. The first competitor managed to finish the stage only at 8.30pm. With each passing stage of the race, the days got longer and tougher. On the last two days there were The Beach, Tropic of Cancer, The Thrill and The Quake Zone stages. The Quake Zone was a reverse run of the second stage from the previous day.

The entire rally had 2138 km of linked distance, totaling about 2800 km of exhausting sand and storm. Only 16 cars in the Xtreme category, 7 bikes in the Xtreme Motoquads, 11 daredevils in the Ndure class and the rest from the Xplore category made it to the finish line. 57 vehicles out the 107 starters completed the rally. Only the toughest did it. There was plenty of sand and plenty of sun. The days boiled and the nights froze. The Desert Storm was indeed a mind blowing storm.
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What’s in Store for the Pixo?

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Nissan’s contract for the sourcing of Maruti Suzuki’s Pixo will expire in 2013. Right now, Nissan Motor Company has confirmed that the sourcing of the vehicle to overseas markets will continue till the expiry date. Why do you think all this has suddenly come up? Well, it’s just the after effects of the gossip that a reconsideration of the Maruti Suzuki-Nissan deal may happen after Volkswagen decided to buy a stake in Suzuki Motor Corporation in December 2009. The objective behind Volkswagen’s stake purchase was to source industrial efforts and gain knowledge on how Nissan rolls out the small and fuel-efficient car plans for high-growth markets like China and India.

Did you know that Nissan has already placed orders for 35,000 Pixo units for 2010-11? Wondering what it plans to do with so many units? Well, all these cars will be heading to Europe. Three years of the contract is still at Nissan’s disposal and it buys 35,000 units a year from Maruti Suzuki. However, the number will not stay there. If the demand increases the Pixo units too would increase. It seems like the number has already been revised to 54,000 units.

Will the Maruti Suzuki-Nissan deal not be affected at all? Will it manage to stay out of trouble? Maruti Suzuki does not have a replacement for Pixo and this economic car competes in the competitive European car market with the Lupo from Volkswagen. The Lupo is another compact car. So, will the deal still survive for another three years remains a big question.

The accessible city car, Pixo is low on carbon emission and is fuel efficient too. The price of the green car being very competitive, it stands a very good chance of surviving in the European car industry. The theme of compact motoring in the town and city with exceptional friendliness towards nature just reveals itself in the Pixo. The five-door car can easily accommodate four adults. The interiors have enough space for you and your luggage. All thanks for the luxurious inner space goes to the car’s design and packaging.

Going to the construction of the Pixo, it is very light and this shows up in the performance as well. The low fuel consumption and low carbon emission levels are among the best in the small city car category for Nissan in Europe. The depletion of the ozone layer is becoming a major concern all round the world. Germany and UK too are trying their best to bring down the pollution levels. The governments in Germany and UK are offering special incentives. You can take your old generation emission vehicle and bring back a new generation one. Great exchange right? Wish we have similar incentives in India.

In UK and Germany, the A-Star, which is sold as Alto by Maruti has received a good response and orders are showing a steep increase. A similar response is being hoped for Pixo. Will it be the same? Well, we need to wait a little. The 3,565 mm-long, 1,470 mm-tall and 1,600 mm-wide car has a wheelbase of 2360 mm. It is competing in the fast growing A-segment. However, though small, the Pixo is far from a micro car. Five doors stand proof to this and we already know that this compact car with enough roominess can be considered ideal for city driving.
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