Tata’s Loss, Mahindra’s Gain?

Rajiv Dubey All good things come to an end and currently Tata Motors must be consoling itself with a similar philosophy. The Indian car manufacturing company is undergoing a twinge of loss as the miracle, which it better knew as Rajiv Dube, called it quits a few days back.

But is that all? Apparently, no. Rajiv Dube, Head of passenger car business unit, gave 27 years of outstanding service to Tata Motors has resigned from the company and is considering none other but the archrival of his former employer, Mahindra and Mahindra. This news brought the shockwaves in the industry as he was being considered for bigger responsibilities. No one expected him to take a decision like this when he was doing so well in the company.

Rajiv Dube started his career by joining the manufacturing operations of Tata Motors at Jamshedpur back in 1983. Later in 1990, he joined the Tata Administrative Services. In 1998, he was reassigned to the Tata Motors when the passenger car division was formed. In 2005, he became the senior vice-president of the passenger car business. And since 2006, he served as the Vice President of Passenger Car Business of Tata Motors Ltd till 17th May 2010, when his resignation was officially accepted. Mr. Dube also serves as the Vice Chairman of the Board of Governors at Advertising Standards Council of India.

“It is always tough to leave a company after 27 years. But after running the business for five years, I wanted to do something different on a wider canvas” Dube said. “I have 3-4 options and would firm up one in the next four to six weeks,” he added.

There are rumours that Dube will join Mahindra and Mahindra to help it re-enter the passenger car market after it failed to make a mark with the Logan. And considering that he was the man behind the success of Tata Indica and Tata Indigo Manza, he would be expected to turn things upside down in the favour of M&M. “I would not like to comment on this,” said Dube.

But is this the first time when a corporate biggie has ditched Tata Motors to move on to greener pastures. The answer is no. Five years back, Dr V. Sumantran quit the company as Executive Director due to some internal conflicts and joined Nissan.

Dube had been very instrumental in the growth of the company in the passenger car segment and the successful launch of Indica, Indigo, Nano and the Manza can be credited to him. He was a part of the core team in Tata Nano project and was actively involved in the operations of JLR and Fiat.

Currently the reigns of the premier car division has been handed over to Mr S. Krishnan, Senior Vice-President (Commercial). The other part of Mr Dube’s responsibilities have been passed on to Mr Girish Wagh, the head of the small car project, who will take on the additional responsibility for manufacturing and product development of the entire passenger car segment, including the hatchback Indica and the Indigo and Manza. Both of them will report to PM Telang, the managing director (India operations) of Tata Motors.

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Maruti Suzuki’s New Motto: Beyond A Million

maruthi-logo1 We discussed about the car ads on TV yesterday. And, just yesterday, one of the leading Indian newspapers carried a colored full-page car ad with the headline: “I’m Young. But when it’s about Spending Money, I’m No Kid”. Below, there were a few promises – unmatched value, most fuel-efficient cars, lowest maintenance costs, lowest cost of operations, unmatched resale value, and the most recommended cars by the owners. These cars are special; you don’t just buy them, you make an investment.

No prizes for guessing the car maker. It had to be Maruti Suzuki getting forceful in the highly competitive market. Maruti is very enthusiastic about retaining its over 50 per cent market shares and has a new motto now. It is: ‘Beyond A Million’. There was a meeting last week aimed at developing growth strategies and to make sure suppliers were prepared to double their output. Over 60 key Maruti Suzuki vendors were present where the single motto across the board was to seek enhancement of production capacities.

In spite of the financial downturn, the Indian and Chinese auto markets have remained stable and Maruti Suzuki successfully maintained its market share. In times gone by, MSIL vendors expanded capacity only after receiving confirmed orders and product delivery took time. MSIL looks at filling this gap. It wants to get these vendors commit expansions before the actual order so as to avoid the lag. Top company officials analyzed the vendors’ balance sheets ranging from EBITDA margins to their debt:equity ratios.

If required, Maruti Suzuki will even proactively step in and help vendors identify their fund-raising problems, chalk out their investment plans and plan capacity schedules. It was the first time the car maker was working together with its vendors on capacity and investment issues. Having reached an annual capacity of one million cars last year, MSIL is now investing an additional Rs. 42 billion to build a new assembly line and to expand its R&D operations. The new assembly line will raise Maruti’s yearly car output by 25 per cent to 1.25 million units by April 2012. The car maker is also upgrading one of its factories in Haryana to produce more new cars with the existing capacity.

But, we have heard that a few reports Maruti Suzuki has asked over 200 vendors to cut their component costs by 3 per cent this year to save around Rs 700 Crore. Will that be possible? Also, a new assembly line would take 18-24 months to start. So, it does look like MSIL has to do something more. If it wants to double its capacity to 2 million by 2015-16, when the car market size would be around 4 million units and new players enter, it needs to make serious investments to enhance production. It will have to bring in additional efficiencies and also watch market trends very carefully.

Even if vendors cut costs by 3 per cent as MSIL has asked them to do, the cost reduction gets negated as raw material costs rise and there are fluctuations in the foreign exchange regime. But, the cost reduction by vendors is very important to keep the cost of the car from going high. Maruti is also working on more fuel-efficient engines and is looking at reducing carbon dioxide emissions below 100 kg to a km.

However, MSIL confirmed that it does not seek to contract manufacture some of its vehicles at the Volkswagen plant in Chakan given that VW had huge capacities and VW was an investor in Suzuki Japan.

Though the two car makers will continue collating synergy possibilities in product development, project implementation and manufacturing, they would still remain as competitors in the market.

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Tata Motors Launches the All-new Tata Indigo e-CS

New Indigocs e-series1 Recently Tata Motors launched the all-new Indica Vista range, the Indica Vista Drivetech4. And now, the Indian car maker has brought another delight for the Indian car buyers. We are talking about the new Tata Indigo e-CS sedan which was launched yesterday with a series of new features.

Tata Motors has brought the new Indigo e-CS in both petrol and diesel engine variants. While the diesel variant is equipped with 1.4 Liter CRDI engine, the petrol variant boasts of a 1.2 Liter MPFI petrol heart. Both the engine variants comply to the new BS IV emission norms applicable in the 13 cities in India.

The new Tata Indigo e-CS offers an unprecedented fuel efficiency of 23.03 Kmpl. This is the highest fuel efficiency offered by any sedan currently available in the country. The outstanding fuel efficiency of the new Tata sedan has been approved by the ARAI.

The new Indigo e-CS gets attractive new looks on the interior as well as the exteriors. It has got a new satin finish front grill, new headlamps, and ORVM with blinkers. Adding style to the new sedan body coloured bumpers and chrome inserts on the rub rails.

The interior of the new sedan has been done in dual tone beige fabric. Instrumentation for the new Indigo e-CS include with a Bluetooth enabled music system and electrical controls for ORVMs. Other features include the AC, power steering and power windows which were available in the earlier Indigo CS as well.

Tata Motors has left no stones unturned to woo the customers with attractive features and a host of other offerings. The new sedan comes with a warranty of 18 months for an unlimited no. of kilometres, amongst the best in the industry. The Indigo e-CS will be offered in a range of four attractive colours and will be distributed through 239 dealerships across 412 towns and cities in India.

Tata Motors has kept the price of the new sedan lower than that of many hatchbacks currently being offered in India. And this would most likely forge a connection with the youngsters in India. The Indigo e-CS is priced at Rs 4.07 lakh ex-showroom Delhi for the MPFI petrol base eGLS version going up to Rs 5.13 lakh ex-showroom Delhi for the top-end eLX version of the CR4 diesel.

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Jaguar XJ and XF Hybrids on Their Way

2011_Jaguar-XJ It’s been long now since we’ve started discussing about green technology in cars. All prominent auto shows had green cars decking up the space. Even luxury car makers have realized this and are moving towards the creation of greener cars. Recently we heard about Land Rover’s big hybrid plans for its inventory of clean and green SUVs. Now, friends at Indian Car Bikes say that Jaguar is also all set create diesel hybrid variants of both the Jaguar XF and XJ sedans.

The diesel motors that currently power the two vehicles already display their tremendous command on the roads. The low CO2 emission levels are the best in class and the mileage that the diesel engines deliver is also mind blowing. Now just imagine a hybrid created out of these road leaders. The electric motors are sure to take both efficiency and economy figures to a different level altogether.

We heard that lithium ion battery technology may be utilized in the plug in hybrids. So, that’s enough proof for prospective buyers that the vehicles will be strong enough to run a standalone range of about 20 Kms without any problems. Trust the advanced technology. It would be particularly display its efficacy in stop go, traffic infested conditions.

2011-Jaguar-XJ-Sedan So, are you all geared up to embrace the new hybrids? Get set, for the new cars may appear in another 3 years. Meanwhile Land Rover’s diesel hybrid technology will be put into action. It will be implemented as early as early 2012. The future Jaguar XJ and XF will share hybrid systems developed for Land Rover and will be launched soon after the Land Rover hybrid gets launched. Now we know you are desperately waiting to experience the power of the diesel hybrid Jaguar XF and XJ sedans in India. We’ll give you the news as soon as we hear anything about it.

Land Rover’s diesel hybrid has been christened “range_e” at the moment and is lined up to begin testing late this year. It will probably be strapped with the company’s 3.0-liter V6 turbodiesel and a ZF eight-speed automatic transmission. Isn’t that great? Advancement targets include a top speed of 193 km/h, a range of 32 km on battery power and CO2 emissions of less than 100 g/km. Sources say that Jaguar’s hybrid system will also employ the ZF hybrid transmission.

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The Jaguar Land Rover (JLR) engineering center in the British Midlands is developing both diesel- and gasoline-electric hybrid powertrains for use across both model ranges. Initially, JLR’s hybrid engineering group is working to incorporate the ZF eight-speed box with the 3.0 TDI V6 and a 46 bhp electric motor. The system will quickly spread across the XJ, XF, XK Jaguars and the Discovery, Range Rover and Range Rover Sport and 5 years down the line, it may be upgraded with plug-in capability.

The JLR hybrid system is an exclusive one, designed chiefly for the bulky, luxury vehicles, but sooner or later some of that technology may sieve down into every automobile in the range.

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Volkswagen Starts Production of Its New Sedan Vento

Volkswagen-Vento-Sketch Lot of speculations regarding the Volkswagen’s new sedan were doing the rounds and finally the company has silenced everyone and released the first sketches of the car. Yes, the German car manufacturer has uncovered the sketches of its upcoming sedan, Vento, for the Indian market.

Keeping in line with the comfort needs of the Indian car buyers, VW will offer the Vento with a longer wheelbase of about 50mm which will increase the rear legroom. Even the height of the sedan has been increased to make it more comfortable. Volkswagen aims to manufacture this car with tailored specifications to meet the needs of Indians who want safety, comfort, innovative technology and stability. The company is hoping to hit a homerun with its new sedan because of its stylish and attractive designs.

What’s more, you won’ have to wait long for the new VW sedan because the production has already kicked off at its Chakan plant near Pune. The new sedan has been positioned between Polo and Jettaand will be launched by August-September this year. Volkswagen believes that the driving dynamics and innovative features of the new sedan will act as a main brand pillar for its success in India.

“We have already started producing the new sedan which would be bigger than Polo but smaller than Jetta. We are currently producing it in small numbers and would commercially launch it by August this year,” Kurt Rippholz, head, communications India Volkswagen group and brand, said. He, however, refused to reveal details on the car, while clarifying that the proposed car is not the Polo sedan.

Meanwhile, Volkswagen India has also announced that it would ramp up the production of Polo at its Chakan plant in order to meet with the demand. “We are very happy with the way Polo has been doing; our production is on track and in line with the quality of our other cars built in Germany, Mexico and South Africa. We now plan to increase its production step by step,” Rippholz said.

Volkswagen started the production of Polo in December 2009 at its Chakan plant, which has an annual capacity of 1.1 lakh per year. “We expect to reach full capacity in the next one-and-a-half or two years,” he said.

Vento will join the existing Volkswagen product line which includes, Touareg, Phaeton, New Beetle, New Polo and Passat.

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The Creative Volkswagen Ads

Let’s talk about car advertisements today. There’s always something missing in these ads or there is too much of nothing in them. More often than not, viewers are stuck with those predictable shots of cars zooming across the city streets at unimaginable speeds or beautiful women falling for those muscular car men. If these scenes aren’t there, then it is a whole list of the car technical features in a 30-second ad that just go over the head. Have you ever decided to buy a car after viewing the ad? Has an ad ever compelled you to buy a car?

Now, at last, we have an ad campaign that makes road sense. The ad that proves that German engineering is just perfect for the sad Indian roads. This is all that Volkswagen promises for its hatchback, Polo. Isn’t that enough to allure prospective buyers? The ad has been executed very well. No other automotive major, till date, has promised such a thing to the Indians.

Everybody knows that the cars are great. The brand name itself speaks for the features. But what is that special extra in your car? All is well, but will your car run on our pathetic roads? That is what viewers would want to know. Project your ad in a watch-worthy fashion and there’s going to be no stop. The Polo ad has done exactly this. There is a series of Volkswagen Polo ads, each highlighting the car’s road-worthiness. By now, everybody knows what’s special in the hatchback. The way VW has tried to instill humour in each commercial to chuck out the boring road stories only adds to the effect.

Commercial 1: We have a plump owner checking out the Polo’s ground clearance level. He places an ostrich egg below the car and drives over it. The egg is left safe and sound, proving the car’s high ground clearance. But the annoyed Mama Ostrich isn’t too pleased with man’s performance and you find the man running for his life.

Commercial 2: Our chubby gentleman tests the Polo’s ruggedness, by engaging a rhinoceros. Oh yes! The car is safe, but the man runs for his life yet another time. The series continues.

Volkswagen Polo Ad

Commercial 3: Our chap now tries the road handling test. He finds a road blocked with cattle and the Polo easily squeezes in between the herd and gets past it. But, finally the man has to hide beneath the car to get rid of the herd’s rage.

Commercial 4: The skeptic test driver goes ahead testing the Polo’s fuel efficiency. Filling exactly 1 litre fuel he tests if he can drive for 22 km. The car runs the entire distance without a re-fill. Unfortunately, at the end of the mission, the man finds himself in a jungle surrounded by tribals. The moral of these commercials is that the proficient Volkswagen engineers have already tested the Polo in Indian conditions and there is no need for the consumers to carry out their own tests.

A very good marketing tactic and it sure makes sense too. There may be a few minor production flaws here and there. The rhino commercial, for example, is a little sloppily made and could have been made finer. But, such things can be overlooked and Indian consumers will surely buy into this. We hope other carmakers too take the hint and tell stories that everyone would want to listen to instead of the cold brochures and sizzling girls.

Not just Polo. VW has come up with some very good ads for its Beetle too. A couple comes in a Beetle and stop in front of the valet. Just as the man is about to hand over the money to the valet for parking the Beetle, the valet gives the man money for having the privilege of parking the Beetle. Next, the valet sits in the car, wears his shades and takes the Beetle away in style, to park. A brilliant ad for a brilliant car!

Volkwagen Ad India

Then we also have the other VW ad where a little lad discusses with the salesman the car that he would have for his eighteenth birthday, another one when he becomes the vice president and yet another Volkswagen when he becomes the CEO. Great thoughts and wonderfully executed!

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Traffic Rules Get Tougher in Bangalore

bangalore_traffic Talk about traffic and the unanimous response from most people would be, “God, I hate the traffic”. People respond in a similar way when traffic related laws and the lawmakers are concerned. So, the Bangalore Traffic Department has brought in a host of new rules and technologies to help the traffic conditions in the city.

On the worse (or better) side, now the penalties for breaking traffic rules are severe. If you are caught in drunken driving for the second time, you might land yourself in jail. Additionally if you are caught committing the same offence twice, the penalty would be three times the fine. But then, people always find loopholes, and the more than obliging traffic police are mostly kind and let you go with half the fine as long as you don’t demand a receipt.

Now, the Bangalore Traffic Department has equipped 400 sub-inspectors with Black Berry which would automatically put the person in the “habitual offender” class if one is caught for the second time for a traffic offence, Bangalore Additional Commissioner of Police (Traffic and Administration) Praveen Sood said. “Caught for drunken driving for the second time will result in compulsory imprisonment,” he added.

law-traffic

Bangalore Traffic Department has brought a few more technologies to counter the traffic chaos in Bangalore, including automated video surveillance cameras and variable message digital sign boards, and linked them all to a state-of-the-art traffic management centre.

Sood also mentioned that the parking areas of popular shopping malls in the city will be connected to the traffic department’s website. This will help the shoppers inquire about the availability of parking space in advance. Besides, there is also a provision of sending SMS alerts on real time basis on the traffic situations in the city.

To help solve Bangalore’s commuting problems, the Bangalore traffic police has positioned automated video surveillance cameras, Blackberry handsets and variable message digital sign boards, and linked them all to a state-of-the-art traffic management center. It is modern state-of-the-art system that could easily compete with any rivals in the Western countries. And what’s more, Chennai and New Delhi, which face problems similar to that of Bangalore, are looking to copy this system.

TrafficJamOnNewFlyover2

With a vehicle population of 35 lakh, which is growing by seven per cent to ten per cent annually, it is not an easy task to manage the traffic situations. On a daily basis, 1,100 cars and bikes get registered in the city but the parking space remains almost non-existent, Sood said.

bangalore_blackberry248

Currently, Bangalore has 330 traffic signals and all of them are powered by solar energy. But in a couple of years, the number of traffic signals will come down as more grade separators (under passes and flyovers) are slated to be opened soon.

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Mercedes-Benz to Improve Safety Testing With Autopilot Technology

Mercedes-Benz's Improved Safety Testing With Autopilot Technology Automobile safety technologies are becoming more and more advanced everyday and it only seems logical to expect the unexpected. And the latest to catch the fancy of the auto manufacturers are the autonomous vehicle systems. Mercedes has come up with one such safety technology in its test driving portfolio.

Yes, you heard it right. Cars can now be equipped with an autopilot system and Mercedes is leading the way. But, fortunately or unfortunately, this technology will be not be used in production cars. The German luxury car manufacturing company will use this technology for testing, and will be limited to their test cars isolated on secure proving grounds.

Safety-critical driving manoeuvres which were earlier difficult to reproduce precisely can now be easily handles by autopilot on closed test tracks. With this technology, testing can be carried out without posing any kind of health risks or dangers to test engineers. The autopilot also supports the development, testing and validation of assistance systems and other safety features, thereby improving the quality standards of Mercedes cars.

The vehicles used in the test routine are regular production cars equipped with “robots” for steering, acceleration and braking. The autopilot controls are placed in the hands of an on-board computer which follows a pre-programmed course, even though a number of vehicles are involved.

Test engineers can monitor all the actions and stop the vehicles at any time. Additionally, parallel machines make their own checks and brake automatically in case of any deviation.

Mercedes has always been at the forefront of bringing in new active and passive safety technologies in automobiles. Innovations in passive safety technologies like the rigid-form passenger cell, crumple zone, airbag and three-point safety belt, plus active safety like ABS, ESP® and braking assistant all can be credited to Mercedes-Benz.

“With future assistance systems, we will be able to address even more complex traffic situations and therefore to ease the dangers of further accident hot spots – like intersections,” says Prof. Bharat Balasubramanian, Head of Product Innovations & Process Technologies at Corporate Research and Advanced Engineering Daimler AG. “The new automateddriving test methods help us to fulfil the extremely high quality and operational safety demands placed on our safety systems even more efficiently.”

Balasubramanian sums up: “In order to be able to set trends in the field of safety in future, too, our test procedures must be able to keep pace with the wealth of ideas generated by our engineers. With automated driving, we feel we are well equipped for the development of the next generation of assistance systems.”

But this is not the first time that a car manufacturer has come up with an idea of using automated system for testing purposes. Chrysler built an Automated Durability Road (ADR) at its Chelsea Proving Ground during the 1990’s. This system used robotic drivers for longer durability testing over extremely difficult surfaces.

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The Next-Gen Volkswagen Beetle

2012-VW-Beetle These days, car makers have been in the headlines for both good and bad reasons. The news spreads faster when it’s something bad. But, there’s at least one car maker that’s in the news for only for good reasons time and again.

Just the other day, we spoke about the Volkswagen Beetle’s sales performance in India. 284 units of the New Beetle were sold in India in less than five months since its launch. 92 cars were sold in April alone and the iconic Beetle has a waiting period of two-three months. Do you believe that? Today, Beetle is in the news yet again for another good reason. The masterpiece has been placed in independent Belgian designer David Cordoso’s hands for a makeover.

Yes, we are talking about the 2012 Volkswagen Beetle concept. The new Volkswagen Beetle will probably show off a more macho look and will have a bit more aggression injected into the design. Designed for the year 2012, the concept is born as a next-gen Beetle to attract more buyers. There may be more males falling for the Beetle’s looks than now.

Apart from the more masculine and sportier styling, the vehicle also gets a zero-emission engine. The heir of the second generation VW Beetle, David’s VW concept will fully run on an all-electric drivetrain. Meanwhile, the second generation oldie may go out of production. The all-new New Beetle will be free of emissions. The fully-electric car makes it an ideal choice for the future.

2012-VW-Beetle 1

The current New Beetle is itself a wonderful machine. It certainly looks like there will be pure magic on the roads if an enhanced version of this model gets launched. We consider the present car to be a classic in the true sense that drives like a state-of-the-art car. Its 2-litre 4-cylinder in-line petrol engine delivers 115 bhp. The grand spacious interiors add the required touch of sophistication. The current model comes with functional features like electrically adjustable and heated door mirrors, power-assisted steering, MP3 compatible Gamma CD radio and height-adjustable front seats.

Now, VW wants something more. The new car designer states that by judging the latest developments at the Volkswagen Group, a gasoline-electric hybrid or even an all-electric version of the car is really workable. There’s room even for some fine tuning in the design details like the headlight and tail-light styling and more. There’s one thing for sure. The Bug is in the right hands and David Cordoso will do full justice to the task at his disposal. We are sure that the new model will give a very interesting shift and away from the present one which is now getting too old.

2012-VW-Beetle-1

VW Beetle has been the longest running and the most-produced automobile of a single design. It is a different thing that the Indian roads saw the Love Bug very recently. VW felt it was high time that the conventional design saw a change and has commissioned David Cordoso to do the needful. Our friends at carscoop say that the concept car will soon see production and it may be come on to the roads next year.

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Troubled Times Ahead for Indian Electric Car Manufacturer

Maini Reva This is indeed sad for a company which boasts of being the only electric car manufacturer in India. We are talking about the Reva Electric Car Company. It has been reported that the Bangalore based electric car manufacturing company may witness a change of ownership. Apparently, the current promoters of the RECC are holding talks with an international automotive investor for a sell-out.

Reva is sold or test- marketed in more than 20 countries and also boasts of having the largest deployed fleet on electric cars in the market, with over 3,000 vehicles on the road. The business model consists of vehicle design, development and manufacture, technology licensing and vehicle manufacturing.

RECC recently entered into a collaboration agreement with General Motors India (GMI) to develop electric cars for the Indian buyers. GMI is all set to bring in the electric version of the Chevrolet Spark by the end of this year, which is being developed jointly by the two companies.

REVA-NXR

Meanwhile Mahindra & Mahindra has been showing quite some interest in RECC, but the company spokesperson refused to comment on the topic.

Deputy Chairman of RECC, Chetan Maini, said, “As any growing company in the midst of a very exciting business landscape we are constantly evaluating opportunities that will allow us to scale, innovate and provide the best offerings to the customers. We will, however, not speculate on market rumours”.

In November 2009, RECC entered into an agreement with the Northern Lights Energy, a provider of infrastructure and services for electric vehicles, for the electric vehicle market in Iceland. RECC was also considering Iceland for setting up an assembly plant.

REVA has failed to attract the Indian audience due to its high impracticality under modern day usage. The two-seater electric vehicle has also suffered due to its high pricing and low mileage.

No wonder then that RECC is focusing big time at the licensing segment, similar to the one with General Motors. The electric car making company will look to manufacture kit and technology to put into other platforms that General Motors makes in other parts of the world.

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Licensed technology and licensed manufacturing will create up to 50 per cent of the business for the promoters. RECC is currently working on the Reva NXR, which was unveiled at Frankfurt Motor Show. Follow up models, like the sports coupe NXG, are also on the current list of the company.

The NXR will likely be launched during the first quarter of 2011, while the NXG will be launched during the middle of 2012. The REVA NXR will be firu-seat, 3-door hatchback that will focus on the urban Indian crowd. With a top speed of 104 kmph, this car will offer a range of 160 km per charge. A 30,000-unit per year plant is already under construction in south India.

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