Monthly Archives: June 2010

PSA Peugeot-Citroen To Target The BRIC Markets

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Way back in 1990’s when other car manufacturers did not think much of the Indian automobile market, there was one car maker that forayed into the Indian market. We are talking about PSA Peugeot, which brought its 309 in India during the 90’s. This car, however, failed to catch the fancy of the Indians and, in 1997, the car maker pulled out of India completely. But now after almost 13 years, the car manufacturer wants to retry its luck in the Indian market.

citroen-c1-625x415 The French car manufacturing giant PSA Peugeot-Citroen has plans to introduce two all-new low-cost vehicles that will be targeted primarily for the developing countries like China and India. According to French newspaper Les Echos, the company is developing the car jointly with Japanese car maker Mitsubishi. These two cut-price vehicles, the first one has been codenamed “global small”, and the second one, which is a mid-size sedan, is known as “M3-M4”.

As we said earlier Mitsubishi would be working with the PSA Peugeot on the small car and the platform of this global vehicle could possibly form the basic underpinnings of the Peugeot- and Citroen global small car.

According to PSA, the two new cars fall outside its short-term product line-up which starts from 2010 and concludes in 2021. Last year, however, the company announced the period of 2010 to 2013 as a phase when the company would focus on increasing profitability by expanding sales beyond its current established markets. In China, the company had a market share of 3.5 percent in 2009, and it now wants to increase it to eight percent.

Peugeot is counting big on its upcoming global small car and would target the BRIC (Brazil, Russia, India and China) markets. But, we can also expect the Peugeot small car to make its appearance into Thailand and some other countries in the Asia-Pacific region too. The production of the aforesaid global small car would take place in Russia, China and areas of Latin America.

Peugeot has had a very eventful past in India that also saw a joint venture with Tata Motors for the 307 project. This project, however, never took off. Industry experts are saying that the Peugeot-Mitsubishi matrimony could be something to watch out for as both these companies were contemplating a cross-holding of equity which eventually got cancelled.

It is said that Citroen and PSA Peugeot are expected to keep their signature styling consistent for the developing market and it is also believed that the global small car would take design cues from Citroen C3 and Peugeot 207 hatchbacks.

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Clash between Tyre Makers and Car Manufactures

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cartyreRecently, we had carried a post on how parts companies were pressurized when Tata Motors decided to produce 1200 Nanos in a day. We have more of such complaints popping up due to other reasons. Slow ramp-up and discrepancies in tyre prices have begun affecting output. There were clashes between key car component suppliers and the car makers. But, the issues were believed to be sorted out a month ago. Unfortunately, there have been no changes as yet and production of cars is likely to be hit at least for the next two quarters due to slow ramp-up and discrepancies in tyre prices.

Commercial vehicle manufacturers like M&M, Tata Motors and Ashok Leyland are the ones suffering the most due to inadequate component supplies. As of now, it looks like production has not been affected at the stables of automotive majors, Maruti Suzuki and Hyundai Motor. But yes, industry analysts have already made a note that if vendors do not ramp up production, there would be longer waiting periods for the cars.

M&M complains that the recent hitches ranging from power outages to slow production ramp-up by vendors for the short supply have resulted in loss of production of nearly 3,000 units of utility vehicles. Tata Motors Commercial Vehicle Unit President Ravi Pisharody said, “We are working with our suppliers, we keep updating our projections so they are mainly successful but there are shortages.” Meanwhile, Tata Motors has been working on seven-day shifts for the past three months. Tata admits that component capacities are stretched, but the car maker is trying to resolve the problems. Taco is the component making arm of Tata Motors.

However, tyre makers maintain that there is no shortage of car tyre supplies. They say that the matter is related to differences over tyre prices between the tyre manufacturers and OEMs. Arnab Banerjee, executive director – sales, marketing and outsourcing, Ceat, said, “We do not believe there is any loss in supply of tyres in the local market. Since OEMs were not able to procure the tyres at a price which they were asking for, we could not sell it to them. Prices of rubber have skyrocketed, leading to a corresponding surge in tyre prices, which OEMs do not agree to.”

Ashok Leyland has remained tight-lipped about the production loss it faced due to tyre shortages. The limited supply of radial tyres in the country, however, has forced companies like Ashok Leyland to approach the government and seek a tyre import licence. Chinese truck tyres, which recently had quality issues, cost 20-30 per cent lesser than Indian tyres. Currently, imports from China constitute over 70 per cent of total tyre imports into India. Today, a kilogram of RSS-4 grade rubber costs Rs 180, while the same was priced at Rs 99 a kg the same period last year. RSS-4 is the chief raw material used for making tyres in India.

cartyre_trivia Also, the issue is more of a commercial problem but is projected as a capacity issue. OEMs are demanding 25-30 per cent lower rates than the current prices and are not ready to pay the revised prices, although the rates of rubber have touched an all-time high.

Meanwhile, tyre companies like Ceat feel, when they can get better prices through exports, why should they sell them at lower rates to Indian OEMs? The price realisation overseas is significantly higher than in the domestic market.

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Facelifted Honda Accord 2011 Coming To India?

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Accord-Facelift-1The loss of important market share in the Indian market has finally prompted Honda to pull up its socks. And we are finally seeing some action from the Japanese car manufacturer. Speculations are at their peak and suggest that Honda is all set to attack its competitors in India with the launch of a few diesel engines. And, the latest that we heard definitely pleases our ears. Yes, Honda will bring the facelifted version of its flagship model Accord to India.

The existing Honda Accord is about three years old in India now, and it can certainly do well with a facelift. Honda has felt the need to bring in the change just at the right moment. But before you go all gaga over the upcoming facelift, here is a gentle reminder. The facelift apparently is not all that significant and the changes are very minor. The 2011 Honda Accord will have a few new equipment and some new styling details.

The new 2011 Accord will flaunt a new front grille, a redesigned bumper, a rear deck lid and a new wheel design. The wheels would have a customisation option between 16 and 17 inchers. The Japanese car manufacturer claims that the fuel efficiency of the new Accord will be marginally better than the current one. How that happens is a mystery that Honda has not unfolded to the media yet.

Erik Berkman, VP (Corporate Planning and Logistics), Honda Motor Co., “For 2011, the Honda Accord evolves again with sharpened styling inside and out, fuel economy gains and a broader application of popular features. The Honda Accord is designed to deliver a consistently rewarding ownership experience in the areas that matter most to sedan and coupe drivers.”

Similar to the lines of the exterior modifications, the interior gets a few miniscule changes that can go unnoticed. There is a new layout for the climate control’s buttons in which the most frequently used buttons are placed towards the driver. Also featured are new clock adjust buttons. The instrument panel also gets a slight enhancement.

Accord 2 But what the Indian car buyers are really expecting from Honda are cars that are available in diesel variants. We wonder if Honda would heed to the expectations of the Indians and bring the Accord in a diesel guise. Honda is closely guarding this secret at present.

The Honda Accord facelift does remind us of the treatment that Toyota Camry got last year. Honda is trying to keep the excitement level up after Skoda, much to the customers’ delight and Honda’s distress, launched the best selling Superb in India.

The facelifted Honda Accord 2011 reaches the showrooms in the US in August 2010. The Indian launch would follow soon.

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Fiat India Small Car to Take on Alto

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fiat-logoAsk any Indian to name a car that has proved to be just perfect for India. With a smile, you may get answers like the Maruti 800 and the Ambassador. Iconic cars like these are slowly vanishing. Not to worry, we have new cars coming in. It’s time for a change and many car makers are now bringing in made-for-India cars. Interestingly, even Fiat India is gearing up to make a splash of its own in the country’s promising small car market by launching an India-specific car. Hyundai did it two years ago with the i10, and Ford followed by introducing the Figo exclusively for India, and now, Fiat will follow.

Fiat’s new car will make an entry in 2012. If you’re thinking the car is going to look like the Uno, let’s clarify that the new small car will not bear any resemblance to the company’s Uno model. Fiat India says that it will be an all-new car, nothing to do with any of its other models. It will be an entry-level model, priced aggressively, much below Fiat’s premium hatchback, Punto.

The Fiat small car will be pitted against the Alto and will come strapped with a one-litre engine. It will be an India-specific car, made in India, made for India, keeping in mind India’s unique terrain and temperatures. Fiat India’s R&D team has been working extremely hard to carve a car that will meet consumer needs in the best manner.

The new car will hopefully increase Fiat India’s market share from the current 1.5 per cent. The company hopes to roll out 40,000 cars in India this year. The car maker is aware of the tough competition and knows that the small car market in India is blazing. It is this competition that has led car makers to Indianize their offerings. As for Fiat, it currently offers the 500, Grande Punto, Linea and Palio Stile in India. But right now, India’s entry level car space is what excites the car maker the most.

The new car launch will certainly help the auto maker increase sales. However, auto experts feel it’s time for Fiat India to expand its service network too. Fiat will have to make sure that low-cost spares are readily available anywhere in the nation. The company has already sorted out the distribution problem with the tie up with Tata Motors, but will have to spread its authorized workshops to enhance efficient after sales service, a critical aspect in India. Experts also feel that the company will have to localize the product better than its competition.

The gossip about Fiat re-launching its Uno model sometime later this year was in the air some time back. However, due to declining sales, Fiat will have to put the car’s production on hold. Fiat also feels that the Uno brand has become rather generic in nature and the car maker is figuring out a new brand name for the car.

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Gordon Murray’s T. 25 Unveiled in Oxford, England

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Gordon-Murray-T.25 Gordon Murray’s path breaking T.25 City Car has made its first official public appearance at the Smith School’s World Forum on Enterprise and the Environment in Oxford, England. The T.25 has all the ingredients to revolutionise the global automobile industry and it also shows that small cars can not only help reduce carbon footprint, but can also be to drive around. Murray has taken inspiration from the Mclaren F1 supercar and the seating layout (1+) can accommodate two passengers.

The tiny T.25, just eight feet long and four feet wide, signifies a major breakthrough in city car design with respect to weight, footprint, safety, usability and fuel efficiency. The car does not have any conventional doors, instead it features a front hinged door. Power comes to the T.25 from a tiny 51bhp three cylinder engine that allows the car to run from 0-100 kmph in less than 17 seconds. The engine has been mated to a clutchless transmission. And fuel mileage is another big advantage with this city car, yes it gives you about 22km/l.

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The T.25 has the capability to take u-turns over a circle of 3m radius and eases the congestion problem with its tiny dimensions. The car is likely to be launched in 2012 and it seems like the manufacturing centres would be situated near areas that are densely populated, like India and China. And you don’t have to worry about the car’s strength, because it has got a tubular space frame steel chassis which will allow it to withstand in-city impacts with dignity.

The T.25 carries a few similarities with our very own Tata Nano. The pricing, for one, is quite similar. The T.25 will cost Rs 1 Lakh or 1212 Pound Sterling. Apart from that, both the cars have their entire powertrain mounted at the rear of the car.

Sir David King, Founding Director of the Smith School of Enterprise and the Environment said, “Our transport sector is hugely dependent on fossil fuels and we need to de-fossilise our economy as quickly as possible. We know most of the technologies already exist in delivering low carbon transportation and the T.25 and iStream® manufacturing processes are clear examples of how the transition can bring new and exciting developments”.

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Gordon Murray Design was established in 2007, with the main focus on developing innovative and disruptive automotive manufacturing technology trademarked iStream and the design and prototyping of the T.25 city car was of prime importance to both the development and validation of iStream.

Professor Gordon Murray, CEO & Technical Director of Gordon Murray Design said, “We are very privileged to have been asked to show T.25 publicly for the first time at the World Forum as the aims of our Company are very much aligned with those of the Smith School and therefore this global event.”

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60 Year Old Tajima Wins the 2010 Pikes Peak Hill Climb

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Nobuhiro "Monster" Tajima wins the 2010 Pikes Peak International Hill Climb Rod Millen had held the record for 13 years before Tajima broke it by three seconds in 2007. Yes, we are talking about the Pikes Peak International Hill Climb. Nobuhiro “Monster” Tajima‘s record stands at 10:01.41. This year, Rod Millen’s son, Rhys Millen who had competed earlier in the race came out with a new mission for the year. He looked very determined to bring the overall title back to the Millen family. Rhys Millen launched ‘Operation: Record Retrieval’ earlier this year for the purpose.

The younger Millen set out building a unique race car from scratch just for this race. But little did he know that 4 months was no big time at all. Tajima’s record remains intact and despite fresh updates to his Monster Suzuki Hill Climb Special, even Tajima himself couldn’t break it. Tajima raced in a heavily modified Maruti Suzuki SX4 up Pikes Peak.

While here in India we have 60 year olds sitting in a corner of the house with very less movement, this 60-year old racer took the crown yet again at the 2010 Pikes Peak International Hill Climb in his Suzuki SX4. Tajima reached the top and the next second, he asked the waiting reporters if he made it. Nobuhiro Tajima won the title yet another time, but unfortunately, it wasn’t better than the best this time. There were a few slippery turns near the peak resulting in Tajima returning an official time of 10:11.491. He is till the king of the hill, but couldn’t beat his earlier 10:01.41 record. Rhys Millen returned a time of 11 minutes and 6 seconds.

Rhys Millen’s PM 580, named after his wife, Presley Millen, and her birthday, was only ready for testing a few days before shipping out to Colorado for the race. The issues that plagued the Rhys Millen Racing team and the new car were therefore no surprise. Road grip was the most complex problem. The cars had to handle two extremely different surfaces with half of the Pikes Peak Highway still unpaved.

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Despite days of fine-tuning spring and shock settings, the PM 580 suffered from traction issues when turning in the dirt. Last-minute testing also determined that an elaborate active rear-wing system wasn’t making a difference due to the limited top speeds attainable on the mountain and that the massive rear wing worked better at streamlining airflow when mounted low than providing excessive downforce when mounted high. The PM 580 had a lot of other problems. A lack of front-end bite angered Millen with a spin, as did overheated front brakes, starting line delays, snow and rain on the course near the summit and a shifting issue that forced him to stop on track and start over in first gear.

In the 2WD class, Jeff Zwark grabbed the title after breaking Rhys’ record by 38 seconds by setting a time of 11 min 38 seconds in his Porsche 911 GT3 RS. In the electric vehicle class, Ikuo Hanawa smashed his own electric vehicle record by over 45 seconds, climbing silently to the top of the mountain in 14 min 7 seconds.

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Mercedes has Planned out its Future in India

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Merc Proven Exclu-Pic 1 We recently had many car makers entering the pre-owned car business in India. But, little did anyone think that the luxury car maker Mercedes-Benz would step into this business in our country. Well, the car maker has just announced its foray into the used car business in India. So, going forward, owning a Mercedes is not going to be as expensive as we thought it to be. A second hand Mercedes may come for as low as Rs 15 Lakh.

Mercedes-Benz is doing all it can to win against its tough competitor BMW. Last year, BMW had become the top luxury car maker in India, selling 3,619 units against 3,247 Mercedes-Benz cars. ‘Proven Exclusivity’, Mercedes’ used auto business has been globally operating in 35 countries since last year and has now come to India. To push sales in India, the company is also gearing up to enter the car finance business as it is aware that 70 per cent of car sales in India are financed. The auto maker says, “Now we are bringing this to India to make the dream of many customers to own a Mercedes-Benz even more achievable.”

A new C-Class costs Rs 26-28 Lakh while other models like the E-Class, M-Class and S-Class are priced at Rs 40-96 Lakh. Through the pre-owned programme, customers can own a Mercedes-Benz for as low Rs 15-18 Lakh. The company’s other models such as the E-Class, M-Class and S-Class are priced at Rs 40-96 Lakh. So, why not get the brand for a much lesser price? Customers can also enjoy the chance of driving in in their existing vehicles and driving out in their new Mercedes-Benz cars by utilizing the trade-in route under ‘Proven Exclusivity’.

The used car buyer, however, is sure going to get a great deal. Only cars not older than six years will be available and this program utilizes specific global benchmarks for vehicle evaluation, quality and warranty to offer only certified pre-owned Mercedes-Benz cars to customers. A manufacturer-backed warranty would also go into the making of a certified ‘Proven Exclusivity’ vehicle.

For those interested, this facility is available in six dealer outlets in Delhi, Mumbai, Ahmedabad and Chandigarh. Mercedes-Benz has plans of setting up another 6-8 outlets by end of 2010. The car maker is looking at having around 10-15 per cent of its total car business in India coming from used car sales by 2011. What new car sales target does the luxury car maker have in mind for the next year? Well, there’s no news on that yet.

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The luxury car maker is also looking at sourcing key components from India and making the nation an important R&D hub in the next few years. India and China being identified as Mercedes’ focal points, the new step would be part of the auto maker’s efforts to source from any place where there is good quality, best delivery capability and best price.

Components currently being sourced form a very small part of Mercedes-Benz products globally. However, Mercedes says that as the Indian auto market grows, the exports would also grow. But, it would take some time and investment.

The luxury car maker may also set up its R&D centres in Bangalore and Pune to develop and engineer important motors for its cars. India is the biggest R&D centre outside Germany. So, motor development would soon begin and if all goes well, variant development out of Bangalore would also begin. Mercedes also believes that at some time India would be ready for the A-Class too. No decision has been made so far though. The A-class may be positioned as an entry-level car in the country.

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Tata Intends To Replace Hyundai as India’s Second Largest Car Maker

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Tata-Logo Just a few days back, the Indian government increased the fuel prices, and also decided to free the fuel prices in India. But guess what, it may actually come as a good news to a few car manufacturers. But when you think of one car manufacturer that stands to gain the most from this move is our very Tata Motors.

Thanks to the Indian government’s decision to end state controls on gasoline prices, Tata Motors now stands a chance to push Hyundai Motors off its proud perch as the No. 2 automaker in India. Tata will have an easy task luring the loyal customers of Hyundai and Maruti Suzuki, as it has a wide range of diesel engine cars.

Almost 80 per cent of Tata’s total sales come from the diesel engine models. Tata boasts of having not only diesel Indica hatchbacks and Indigo sedans, the company also plans to develop diesel engine variant of the world’s cheapest car, Nano. Diesel engine models account for about 20 percent of sales at Maruti, and the numbers are much dismal for Hyundai. But what do we say about a few car manufacturers, like Honda, that don’t even consider launching diesel cars in India? Currently, Hyundai does not have any diesel engine options in its small car portfolio.

Diesel is almost 20 percent cheaper than petrol in India. According to industry experts, the end of gasoline subsidies may increase the nationwide sales of diesel cars, which currently accounts for less than 25 percent, to as much as 30 percent in the next two years.

Prakash M. Telang, the head of Tata’s India operations, said, “The decision to free fuel prices is a good concept that the country needs in the long run.” With the inauguration of the Sanand plant, which will make as many as 250,000 Nanos annually, the Indian car maker intends to pass Hyundai Motors as India’s second-biggest carmaker.

But the sales of the diesel models may get negatively affected by a few factors. First is the buying cost, diesel cars are more expensive than their petrol counterparts. Besides, the Indian government plans to end the subsidies on diesel eventually, and when that final blow comes, diesel engine cars would lose out their charms to the Indian car buyers.

Additionally, the government-appointed panel that recommended the free fuel pricing policy in India has also recommended that the government levy additional duties on diesel engine vehicles.

In an other news of a sort, Tata Motors is also planning to bring in a vehicle in the price category of Rs 20-30 lakh. The concept car that is being jointly developed by Tata Motors and Jaguar Land Rover is at DR0 stage. This would be the first project that would bring Tata and JLR teams together, and supposedly, the car’s platform would be developed in India.

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The Jaguar XKR 75 Revealed

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Jaguar-XKR-75-image It’s Jaguar’s Platinum Jubilee and the car maker wants to celebrate the birthday in a rather tough fashion. Jaguar Land Rover’s new CEO, Dr. Ralf Speth, initiated the challenge to the Jaguar engineering team to construct an XKR to celebrate Jaguar’s 75th anniversary. The new car will have to deliver the ideal combination of superb performance, fabulous chassis and steering control and grip levels that will exhilarate the spirits of a driving enthusiast to discover the hidden potential of the XKR.

There will be just 75 of these out-of-this-world vehicles produced. Yes, the production of the XKR 75 is limited to just 75 and they will be available to order from July 2010 in the UK priced from £85,500 OTR. Shipment will commence in October, 2010. The Platinum Jubilee limited edition XKR 75 is sure going to let its owners enjoy the attributes of exclusivity, superiority and thrill with a splash of Jaguar’s great heritage. The making of this XKR 75 seems like the most appropriate way of celebrating the sporting credentials of the XK marquee in the 75th year of the Jaguar name.

Jaguar engineers took up the challenge. They amplified the power and torque of the commended 5.0-litre supercharged engine to 522 bhp and 655 Nm respectively for the XKR 75. The resultant vehicle is sure going to deliver truly exceptional performance. The limited edition model’s top speed has been controlled electronically to be 280km/h. The high performer can accelerate from 0-100km/h in 4.4 seconds. The acceleration time has been reduced by 0.2 seconds from the prior 4.6 seconds of the 503 bhp XKR.

The unyielding lightweight aluminium architecture of the XK was taken as base, and then, the increased power of the XKR 75 was matched by a responsive and energetic chassis that handles utterly well, rides remarkably well and stops with surefooted comfort and assurance every time.

The Jaguar XKR 75 flaunts reworked suspension and handling for better accuracy and quickness in addition to the performance developments. The reworked aerodynamic body pack with a front splitter, side-sill extensions, the rear diffuser and larger rear spoiler offer better balance and a reduction in lift while making sure that the XKR 75 remains stable at high speeds. The XKR’s computerised Active Differential Control also adjusts to reduce steering sensitivity at very high speeds, further enhancing stability and driver control.

The acoustics package for the semi-active sports exhaust has not been left as is. It has been improved too and the XKR 75 produces a pulse-racing growl to match its performance. The XKR 75 is one extraordinary car where the car’s driver-focussed features have not been sacrificed to highlight Jaguar’s traditional values of refinement and comfort. Justice has been done to both characters.

“We conceived the XR 75 as a sports car with a duality of character that makes it perfectly suited to driving across Europe to the Nurburgring, completing some very fast laps, and then driving home again,” said Mike Cross, Chief Engineer Vehicle Integrity.

The XKR 75 has been adorned with a new Stratus Grey finish. Red brake callipers complement the striking 20-inch gloss Vortex forged lightweight alloys with a dark technical finish and diamond turn. The new car also offers customers the option to apply exclusive body graphics that run from the front bumper to the rear haunches. The interiors have been finished in Charcoal with ivory stitch, piano black finish to fascia and centre console and a Jet suede cloth headlining.

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Volkswagen Vento To Be Launched on July 6

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Volkswagen Vento Well, July certainly seems to be the preferred month of new car launches for a number of car manufacturers in India. The third week of July would bring us the much awaited hatchback Nissan Micra. While Mitsubishi will launch the Evo X, Fiat is all set to roll out the 90bhp Grande Punto Sport. But the month would kick-start with the launch of the Polo based sedan, well known as Vento, which Volkswagen had promised to the Indians quite some time back.

Yes readers, it is less than a week now, VW Vento would be launched on the 6th of July 2010. And with this, the VW Vento would herald a whole new competition dynamics in a segment that saw the recently launched Hyundai Verna Transform, Honda City and Maruti Suzuki SX4.

The Volkswagen Vento would be launched in both petrol and diesel engine variants. This would give the Vento an upper hand with the Maruti Suzuki SX4 and Honda City, because both these cars are available in only petrol engine options. While the petrol variant of Vento would gets its power from 1.6-litre engine that produces 105 bhp (the same as the one on the BSIII Jetta), the diesel engine might be 1.6-litre, common rail four-cylinder engine with 105 bhp.

And you would find it interesting to know that this engine is also found in the Polo Cup Racers in India, which are tuned to produce 130 bhp. We are not very sure as of now, but it is expected that Volkswagen would offer the Vento in both manual and automatic options, the latter being a six-speed DSG gearbox.

Interiors of the VW Vento can boast of added space, better seats and more shoulder and headroom. When it comes to the features of the new car, there are more new controls on the dashboard and a new design steering wheel with more chrome inserts than we saw on the Polo.

The new car will be assembled at the company’s plant in Chakan, Pune. The VW Vento will be built alongside the VW Polo and Skoda Fabia hatchbacks. With the launch of the new Vento, the German car maker would have seven models on offer in India, ranging from the Polo, Vento, New Beetle, Jetta, Passat, Touareg and Phaeton.

Competitive pricing is the key to survival in the Indian automobile industry, and Volkswagen seems to be complying with the T&Cs of the Indian market. The VW Vento price is likely to start above Rs 7 lakh, and the top end version will likely reach the tag of Rs 9 lakh and above.

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