Kia Set to Storm the Indian Market with Compact Cars, Hatchbacks and Sedans

2010-kia-picanto-i1 There is nothing that can fight the attraction trap that the Indian auto industry has set for the global car manufacturers. One by one, they are all giving in to the temptation of trying their luck in the Indian market. And the latest one to join the party is South Korea’s second-largest carmaker, Kia Motors.

Kia Motors is planning to enter the fast growing Indian car market, and in very aggressive way at that. The Korean company will also set up a manufacturing facility in India, a person close to the company has revealed. Kia Motors, which is partly owned by South Korea’s largest carmaker Hyundai Motors, plans to bring in a range of small cars, hatchbacks and entry-level sedans in the initial phase. Later, the company will expand its business and bring in some compact sports utility vehicles too.

Kia is renowned for its sleek yet aggressively priced vehicles. So far, the European car market had proved to be the goldmine for the Korean car maker, but since car demand is shrinking in the European market, Kia wants to shift its base to the Asian markets before it’s too late. “It is hunting for alternate markets after the 2008 financial meltdown,” the source said.

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When we got in touch with one of the Kia officials, he revealed that the company was in the early stages of conducting a feasibility study for a possible entry in the Indian market. “We are still a long way from making any decision,” he added.

However, we have some reliable information that Kia will launch the popular hatchback Picanto and Proceed first, before heading on to bringing its top-selling sedans Forte and Rio. While the Kia sedans will be competing with some the very well selling sedans in the country, including Honda City, the small cars would fight the battle with Maruti Ritz and Hyundai i10.

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Kia also plans to roll out the compact SUVs Soul and Sorento. Now, doesn’t that sound like some warning bells for SUVs like the Mahindra Scorpio and Maruti Suzuki’s Grand Vitara? Indian car sales zoomed up by 25% and touched the milestone of 15.26 lakh units for the financial year that ended this March. The Indian economy is booming and the car industry is the one leading the way.

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Kia Soul

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30 per cent Discount on Toyota Cars in 2013

toyota So much has already been done to please the fussy and the choosy Indian car buyer. He’s just not satisfied and wants more. Of late, the Indian car industry has been witnessing growth at a faster pace. Car makers are trying out new strategies every now and then. But, have you ever noticed anything grabbing more attention of an individual than the word four letter word FREE? Unfortunately, that’s the only entity that cannot be given most of the time. Now, Toyota must have thought over the whole scenario and has come up with a new solution, a new target.

Toyota has hit the bull’s eye. The car maker has now set a new target of slashing its car prices by 30 per cent by 2013. A new cost-cutting strategy will be employed to better compete against rivals like Hyundai. Till the other day, before the massive car recall fever started, Toyota was considered to be one of the world’s fastest-growing car makers. But now, the company is under intense pressure to become more competitive as other auto majors like Volkswagen and Hyundai Motor are trying their best and narrowing the sales gap with rapid growth in China, India and other emerging markets.

Toyota has finally realized that compared to Korean cars, its vehicles are approximately 30 per cent more expensive globally. The car maker now says, “So what we’ve said is, let’s work towards that goal.” There’s this new scheme called RR-CI. Wondering what it is? Well, the first R stands for “ryohin” meaning quality, the second R stands for “renka” meaning low price, and CI stands for cost innovation. That’s the new format for achieving the 30 per cent price slash goal.

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The RR-CI plan will make better use of cheaper and locally available material, even if it means coming up with several different blueprints for the same part. Way to go Toyota! The engineers have already been assigned new tasks and Toyota is purchasing staff to work together to collectively come up with the best way to design and manufacture 165 designated components, setting a unique cost-reduction target for each. Suppliers are also asked to contribute ideas.

Toyota had begun working on this new plan late last year. Toyota bids adieus to its earlier plans where project teams were set for each car model to decide the ideal component design for only that model. Earlier, a new car built and sold globally like the Toyota Corolla had one blueprint that drew up the same component designs across the world. That was certainly successful for some components, but it wasn’t for others.

The RR-CI plan will draw a lot of work from the staff and it’s going to be strenuous as 30 per cent cost reduction is a very tough goal. It’s not a joke. Toyota, however, is firm and we wish the car maker all the very best. Toyota hopes that by the end of this year it comes up with the best story for each of the 165 parts. The target is for those efforts to bear fruit from the next round of vehicle revamps, around 2013.

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Lotus May Come To India, Courtesy M&M

mahindra-logo Mahindra and Mahindra has transformed into one of the biggest sharks in the global automotive ocean. What else could explain the untamed hunger of the Indian car maker? M&M has been on an unrestrained acquisition outburst for quite some time now, but the thirst for more seems to be insatiable.

It all began with the acquisition of majority stakes in the Mahindra Renault Private Limited (MRPL) joint venture. Later came the Indian electric car maker REVA, which M&M swallowed nice and easy. And if everything goes alright, the ailing South Korean SUV manufacturer Ssangyong Motors would comfortably drop into the goody bag of M&M. But the most glamorous of them all is yet to happen.

Wondering what’s next! Here it is. M&M has been caught ogling at the iconic British sports car maker, Lotus Engineering. Adding credibility to the news is the fact that Mr. Anand Mahindra, Vice Chairman and Managing Director, M&M, met Lotus Cars management about two months ago and also paid a visit to the company’s manufacturing plant in Indonesia.

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Malaysian car manufacturer, Proton, and Mahindra & Mahindra are in talks for bringing the Lotus range of luxury high speed sports cars in India. Also, there are more than swell chances of M&M bringing the Proton small car range into the Indian market. If the JV thing between Proton and M&M works out, Mahindra may acquire the rights to make certain Lotus models or may bring the brand to India under the JV. At present, Lotus has a range of exotic sports cars including the T127, Elise, Exige Europa and Evora.

Mahindra is already in talks with the Malaysian car maker to bring its small cars to India. The two car makers had tried to strike a deal in 2007, but it turned out to be futile. But Mahindra seems keen on re-starting the affair that did not flourish previously. And this time around, it is planning to have two JVs with Proton and bring both premium cars like Lotus and volume cars like Proton Savvy to India. Mahindra primarily offers range of SUVs in the Indian market, and this deal will complete its range from small cars up to premium sports cars.

Proton manufactures the 1.2 L Renault engine equipped small car, Savvy, and this car may enter the Indian roads in the JV disguise. Savvy seems to be a miser little car that can run up to 24kmpl in standard condition, in other words, it can easily offer an on road mileage of 18-19 kmpl.

Proton bought the super car manufacturer, Lotus, from Bugatti when the latter went bankrupt in 1996.

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Mitsubishi RVR May Head to India

Mitsubishi-RVR-Front Mitsubishi in the news once again! We had the facelifted Outlander launch in India last month. To reflect the spirit of the Mitsubishi Outlander 2010, the launch ceremony was followed by the launch of Rohit Bal’s Outlander Signature Collection. A little after that launch, we heard of the launch of the Pajero Sport and Lancer Evolution. Last week, we presented in one of our blog posts the details and exclusive spy pictures of the Lancer Evo X. Mitsubishi still screams ‘want more attention’. The car maker hasn’t said anything yet. But, we know it.

We are almost certain that the Mitsubishi RVR is heading to India. Yes, the car that was launched at the Geneva Motor Show this year may come to India some time in latter half of next year. If the news turns out to be true, must say, Mitsubishi has taken the right move to fight the battle while so many small SUVs like the Yeti are getting in. This car is known as the ASX in the European market.

Everybody knows that car sales have been showing growth like never before. But, Mitsubishi’s sales figures for the recently launched Outlander haven’t been too positive. New model, and so, may take some time, or, it may be the high price. Who knows, the sales may have been higher had there been a diesel variant.

Just 40 Outlanders a month are rolling out of Mitsubishi dealerships in the country. The other reason for the slow sales could be the 5-seat layout. If that’s the reason, Mitsubishi is trying to rectify the problem by bringing a 7-seat version. Wow! The seven-seater will be pitted against the likes of the Chevy Captiva and Honda CR-V. Mitsubishi’s smaller car, the RVR can happily take over the space vacated by the 5-seat Outlander.

The RVR is based on the same platform and has the same wheelbase as the Outlander. Yes, the rear seat space remains the same. However, slotted below the Outlander, this lightweight vehicle measures approximately 4.3-meters in length. It is much shorter than the Honda CR-V and BMW X1. Compare it to the Yeti and you’ll know that this mini Outlander is a lot better. The RVR flaunts the same shark nose and wedge-shaped lights as the renowned Evo and Outlander GT. The RVR’s appearance is simply outstanding and commands more presence than the Yeti.

Mitsubishi is doing all it can to gain immunity in the competition. If the Skoda Yeti comes with a vigorous 140 bhp diesel motor, the Mitsubishi RVR will come with a hearty turbocharged 1.8L 147 bhp CRDi diesel engine. The RVR is expected to drive into the country in the front wheel drive variant. The model will also swank a 6-speed manual transmission with stop-start technology as standard. Considering the traffic in our cities, this fuel-saving feature will certainly allure the Indian crowd.

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Coming to the cost, what do you it’s gonna be? Based on the same platform as the Outlander and having shared parts with the vehicle too, Mitsubishi may push costs down for the RVR. When imported as a completely knocked down unit (CKD) and then assembled in India, the RVR could result in a Rs 15 lakh price tag. That’s worth it, right?

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Rural India Beacons Japanese Car Maker Toyota

Toyota-logo_1 Greener pastures attract everyone alike, and the recent one to be smitten by the promising rural Indian auto market is Toyota. Yes, the Japanese car maker, for so long, focused mostly on the metros and the urban India, but the time has come for the car maker to shift its attention towards the rural Indian market which is growing at a rapid pace.

Toyota Kirloskar Motors, which is a joint venture between Japan’s Toyota Motor Corp and India’s Kirloskar Group, is reworking on its marketing strategy so that it can spread its roots to the rural India. The company plans to sell 40% of its cars in the rural markets. For the current financial year, Toyota has set itself a target of selling 70,000 vehicles as compared to 55,000 vehicles sold in the previous year.

Another plan that has become the prime focus of the car maker is the upcoming car Etios, which is likely to be launched in the beginning of 2011. While Etios is still in the product basket, TKM plans to achieve a sales target of 150,000 units in 2011 and raise the volume bar to 300,000 – 350,000 cars by the end of 2015. Talk about dreaming big, eh!

As we all know, the conditions of the roads in rural India is at its worst and the SUV’s offered by the Japanese company can tackle the rural roads very well. Toyota is being very wise to focus on the demands of the rural India where sturdy SUVs rule the roost.

Mr Hiroshi Nakagawa, managing director of TKM said: “Japan, the US and the EU are facing difficulties while India is emerging as the most promising market in the world. India is a very attractive market for Toyota. Currently, India has only 16 cars per 1,000 people while Japan has 593 cars per 1,000 people.

The company believes the car market in India will grow in the range of 10% against the global growth rate of 5%. Our small car Etios will drive our sales volumes in India in the coming days. We are also looking at exporting Etios but nothing has firmed up yet.”

“To achieve this scale of volume, we have to enter India’s rural markets in a big way. We are aggressively expanding our dealership footprint in India and quite a significant portion of this will be in country’s heartland. By end of 2010, we plan to have 150 dealers across the country,” said Mr. Nakagawa. And, additionally, Toyota Kirloskar Motors would invest Rs 3,200 crore in a second plant in Bidadi. “This new plant will create jobs for 2,000 people,” the TKM MD said. The company currently employs 3,700 people.

Now, Toyota also wants to set up an engine manufacturing plant in India. Mr. Nakagawa said, “The proposal is under active consideration and we are now studying the market in India.” He also hinted about the company’s plans to establish a research and development unit in India. Toyota has a long way to go in India, and the company seems to be just on the right track.

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Mahindra in Combat Mode

Mahindra_Axe The strength of the Indian private sector companies in the defence manufacturing sector has been seeing growth. Slowly but surely, India is getting a larger chunk of the money spent in the defence industry. M&M has sensed the growth and has decided to give in its contribution. Don’t bother about the joint venture failures of the past. There’s something new today.

The other day, one of the leading tractor brands in the world announced a Gulf joint venture for armouring vehicles. Yes, we are talking about M&M. The rugged vehicles from this car maker have proved their worth on the Indian roads. Mahindra & Mahindra is best known for utility vehicles and tractors in India, but the company is also active in IT and financial services, steel processing, and infrastructure. Wondering what the car and tractor maker is up to now?

In February this year, we had Tata Motors foraying into combat vehicles for the defence sector. So, why can’t Mahindra do something similar? Two years ago, Brigadier Khutub Hai, CEO, Mahindra Defence Systems had said, “Soldiers look for vehicles that give them protection. Initially, we will be looking to supply these vehicles to the police and paramilitary forces. We will have a different version for the Army.” Looks like the words are taking shape now. M&M, along with its subsidiary Mahindra Overseas Investment Company Mauritius Ltd., Arabia Holdings and Ras Al-Khaimah Transport Investments LLC signed the agreement to create a joint venture company in the emirate of Ras Al Khaimah in the UAE.

Through its Mahindra Defence Systems (MDS) division, Mahindra & Mahindra, has, over the past six years, acquired a leadership position in India in the field of vehicle armouring. It now brings to the joint venture its considerable experience in the design and development of ballistic kits for vehicle protection. The car maker already has a strong foothold in India. The new joint venture will cater to the high potential markets of West and Central Asia as well as Africa. Through the joint venture, M&M will launch a number of MDS’ armoured vehicles such as the Marksman, the up-armoured Scorpio and cash-in-transit vans that have already brought good luck for the auto maker in India.

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But, why is the JV being set up in UAE? That’s probably because of the low cost of manufacturing in the free zone of Ras Al-Khaimah. Also, its proximity to the GCC countries and African and Central Asian countries ensures easy access to those markets. Arabia Holdings Ltd. has diverse business presence in the UAE in various fields like transportation, logistics and real estate. It is based out of Ras Al Khaimah and brings with it expertise in exporting armoured vehicles from the local markets, together with its existing relationship with various agencies.

Ras-Al-Khaimah Transport Investments LLC has been established by the Ras-Al-Khaimah Transport Authority for partnering with Mahindra and Arabia in the JV.

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The New-Generation Mercedes Benz R-Class in India?

Mercedes-Benz-R-Class-CAC00MBS091A0101-F A while ago in March, at this year’s New York International Auto Show, the Mercedes-Benz R-Class made its world debut. It more or less looked like the car maker was gauging the response of the audience. The positive feedback the great car received was well deserved, and Mercedes-Benz is now convinced that it is on the right track.

The new-generation R-Class flaunts a completely redesigned front fascia which boosts the model’s overall looks. The R-Class has taken styling tips from other Mercedes-Benz saloon and SUV models. So, with no excuses, the car had to look great. Right now, Mercedes-Benz says that it has lots of surprises packed for India. So, shall we assume that the R-Class is gonna come to India? If it comes, we know it’s going to come in the CBU format, but never mind. And, what price will the car carry? Oh, we are too excited at the moment! Let’s wait.

The R-Class has been completely re-worked upon. The enhanced premium qualities now add to the new car’s appeal. To add to the superb features is Mercedes Benz’s BlueEFFICIENCY strategy that makes the R-Class one of the most economical and eco-friendly MPV in the premium segment.

The interiors are fresh, the exteriors unsullied. We therefore have the perfect combination of optimum use of space found in the latest MPV models with the comfort, swanky appeal and esteem of classic Mercedes-Benz luxury-class saloons. The interiors, however, like the earlier R-Class are as versatile as ever. The sturdiness and all-wheel drive capabilities have also been maintained. The R-Class comes in the petrol variants as earlier with the customary unproblematic power delivery and high drive comfort. But, the appeal of the R-Class is now also enhanced by a range of enhanced diesel motors.

The same output but improved performance, that’s the new-generation R-Class. A little detailed comparison. The maximum performance displayed earlier was 224 bhp while the new R300’s V6 diesel boasts 265 bhp and 620 Nm torque. The new R 300 CDI BlueEFFICIENCY consumes approximately 7 per cent less fuel, at 7.6 litres per 100 km.

The new R 350 CDI 4MATIC delivers the performance of a V8 model with fuel efficiency of an easy-on-the-pocket V6 variant. The new car can run a hundred kilometre with just 8.5 litres of diesel, thus undercutting its predecessor by 0.8 litres, yet is able to offer significantly superior performance. Acceleration from 0 to 100 km/h takes merely 7.6 seconds and the peak speed is 235 km/h.

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The R 350 BlueTEC 4MATIC is considered to be one of the cleanest diesel models in the world. The V6 motor delivers 211 bhp and torque of 540 Nm. Even this model uses lesser fuel and gives out lesser emissions while offering better performance than its predecessor. Thanks to AdBlue© exhaust after-treatment, the compression-ignition engine consumes an average of 0.3 of a litre less, at 8.4 litres of diesel per one hundred kilometres, generating in the process the same level of emissions as a comparable petrol engine.

The BS IV norms came in and we saw some fantastic cars vanish into thin air. Now, let the EU6 emission norms too come into effect in 2014, this car is going to remain unharmed. It already meets the EU6 standard emission values. All other petrol and diesel versions of the R-Class meet the EU5 standard.

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Kolkata Gets a Touch and Feel Experience At The Toyota Q World Event

Etios-Hatchback Car manufacturers are always ready to try different strategies to impress and lure the customers. Recently, Toyota Kirloskar Motor held the Toyota ‘Q’ World in Kolkata and the customer response was more than amazing. During the event, which was held at Topsel Toyota, the Japanese car maker showcased a number of vehicles from its inventory and the absolute show stealer was the Etios, which is going to be launched in India very soon. Excited car enthusiasts flocked to the showroom to get a glimpse of the much-awaited concept model of the Toyota Etios.

With every other car manufacturer trying its luck in the small car segment in India, Toyota has taken the plunge too, and will launch its new compact car – Etios. With the Etios concept – ‘World First, India First’, Toyota will enter the mass volume car segment in India. And to meet the increasing demand and enhance maximum customer accessibility, Toyota will expand its sales/service network to about 150 dealers by the end of 2010. Toyota reinstated its position in Kolkata with the inauguration of its second Topsel Toyota dealership. Further plans are firmly in their places and the company will launch another dealership at Durgapur by October 2010. Toyota revealed that Innova, Corolla Altis and Fortuner are the top performers in the region, with a market share of 14%, 34% and 47% respectively.

The occasion was also attended by Mr. Sandeep Singh, Deputy Managing Director, Marketing, and Mr. Shekar Viswanathan, Deputy Managing Director, Commercial, Toyota Kirloskar Motor and Mr. Ashok Manaktala, Dealer Principal, Topsel Toyota.

Gracing the occasion were other big shots from the Toyota family including Mr. Sandeep Singh, Deputy Managing Director, Marketing, and Mr. Shekar Viswanathan, Deputy Managing Director, Commercial, Toyota Kirloskar Motor and Mr. Ashok Manaktala, Dealer Principal, Topsel Toyota. Commenting on the occasion, Mr. Hiroshi Nakagawa said, “We would like to engage car enthusiasts and customers from across India and not limit this experience to just one city.

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This is an opportunity for us to get a direct feedback from customers across the country, which will in turn help us to further improve our products and services and serve them better. Kolkata is a very important market for us and we look forward to expanding it further in the future. With the introduction of Etios concept, we hope to attain a sizeable market share in India in the shortest possible time.”

Other Toyota cars showcased at the event were Prado Diesel, Toyota Fortuner, Camry and Prius. Spanning across a period of 4 months, the Toyota Q would travel across 15 cities in the country including Calicut, Goa, Hyderabad, Vijaywada, Coimbatore, Bhubaneswar, Kolkata, Siliguri, Guwahati, Varanasi, Ludhiana, Jalandhar, Jaipur, Indore and Surat.

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The 2011 Corvette Stingray – Goes Topless for Transformers 3?

Corvette-Stingray This sure is one of the most opulent beauties on wheels. Yes, we got our hands on some of the spy pics of the Corvette Stingray. The 2011 Corvette Centennial Design Concept car was spotted in Beverly Hills months before its rumoured debut on the silver screen in Transformers 3: Revenge of the Fallen. What a beauty this car is! Well, all of us can see the captivating interplay of organic and angular lines. Such great design, one to die for!

There are a few that say this Chevy Corvette concept is a potential design for a next-generation C7 Corvette. It has also been rumoured that the car will have a starring role in the feature film as the autobot, Sideswipe. The car had characterized the spirit of Sideswipe in the last released version of the movie. Sideswipe is not nearly as much of a sociopath as his brother Sunstreaker, but he is every bit as skilful. He’s more into battle for the sport of it. A bit of an athletic supporter, Sideswipe most craves a glorious fight to the finish as a test of his determination. But the car that you see here is slightly different from the Stingray that featured in the earlier version.

This one is gorgeous and attractive. Take a closer look at this speedster and then compare it to the original 50th Anniversary Corvette Stingray Concept that was shown at the Chicago Auto Show in 2009 as well as in the movie Transformers 2: Revenge of the Fallen. You can notice significant changes like a different hood, a different awe-inspiring grille and different striking wheels. And yes, you don’t need an eagle’s eye to spot the missing vertical LED-strip lights on this one. There are no LED vertical headlights. Instead, a more conventional lighting system appears tucked into the front recesses.

The hood on this topless Corvette Stingray has dual openings in the front. The spy shot of the Transformers 3 car was allegedly taken in Beverly Hills. Also, as the original Stingray Concept featured doors the Lambo style, either this car’s door is partly open or there are gaps on the new door panels. What’s your take on this? This 50th Anniversary Corvette Stingray Concept was recently spotted parked on a street in Beverly Hills. Ah California! No wonder the new car is loaded with so much glamour!

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Chevrolet had got its first Corvette designed by Harley Earl and the car was introduced in 1953. Myron Scott is credited for naming the car after the Corvette, a small, manoeuvrable warship. It has been produced in six generations in coupe, convertible, t-top coupe, and targa coupe body styles. The latest one, the Corvette Stingray, however, has gone topless and we believe it’s going to be starring in Transformers 3.

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Volkswagen India to bring the new VW Jetta in March 2011

2011-Volkswagen-Jetta-1 Volkswagen is chasing lofty dreams. Last week, Volkswagen launched the new Jetta 2011 at the Times Square New York. And it would not be long till the German car maker launches the same in India. Yes, now as per sources, it is confirmed that the new Volkswagen Jetta 2011 will roar on the Indian roads by March 2011. Great, isn’t it!

Volkswagen sedans in India are not that fancy when compared to its competitors and the current generation Jetta can hardly be referred to as ‘exhilarating’. And finally, Volkswagen has heeded to the much needed facelift for the Jetta. Volkswagen has introduced numerous changes in the next-generation version of its mid-size saloon, the Jetta. The company claims that the new Jetta would deliver oodles of style, precision German engineering and freedom from maintenance worries. And trust us, Volkswagen is not exaggerating.

So, without further ado, let’s just delve into the details of the next generation Jetta. The new Jetta is definitely longer (by 2.75 inches) than the current one, and the overall length has been stretched too, by about 3.54 inches. That, inevitably, makes the new Jetta much roomier and more spacious. Not only that, even the interiors get a fresh look and nothing inside will bring back the memories of the old Jetta.

In the US, the next-gen Jetta has been launched in a number of diesel and petrol options. The Jetta 2011 gets new 1.6 litre TDI ‘clean diesel’ (BIN 5 emissions standard) engine which is also available in other VW cars in the European markets. Apart from that, USA will have the new Jetta in three other options, namely the entry level 85kW/115PS engine, a 2.5-litre engine and a 2.0 litre TSI. And when the new Jetta makes inroads to India, expect it in a 1.4 TSI petrol and 1.6 TDI diesel engine options.

The new 2011 Volkswagen Jetta will flaunt a manual transmission as standard with an automatic transmission which will be optional. The new TDI and TSI engines, however, will be paired with six speed twin clutch DSG automatic transmission which are renowned for their smooth shifts.

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The new Jetta still shares its platform with the Golf, but the outstretched dimension and the longer wheelbase of the new Jetta has the potential to impress the Indian new car buyers. But, Volkswagen will launch the car in India during the last quarter of 2010. For the time being the German car manufacturer is busy with the production and fast approaching launch of the Polo based sedan, Vento.

Tagged in the 16-18 lakh price category, the next generation Jetta would compete with sedans like the Honda Civic, Skoda Laura, Chevrolet Cruze and the Toyota Corolla Altis which is soon going to be launched in a diesel variant.

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