Monthly Archives: July 2010

Toyota Will Not Bring Yaris and Vios in India

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Toyota Vios While the Indian car market is rejoicing the launch of the Toyota Corolla Altis Diesel, there is something that does not come as happy news. We folks were expecting the Toyota Yaris and Vios to make it to the Indian market some time soon, but it now looks like we were hoping for too much.

During the launch of the diesel version of Corolla Altis in the New Delhi, Toyota’s Indian arm-Toyota Kirloskar Motor revealed that the company does not have any plans to bring the Yaris hatchback and its sedan version ‘Vios’ in the Indian market. Toyota Yaris is a three and five door hatchback that is designed by Sotiris Kovos. Toyota Vios is a 4-door subcompact sedan that the company developed for the South East Asia and Chinese markets.

The Toyota Vios was launched in 2003 to replace the Soluna which bridged the gap in the Asian subcompact market for a 1.5 litre, and was placed below the Toyota Corolla and Toyota Camry. Some of the South East Asian countries have got both Toyota Yaris and Vios, then why this partiality with respect to the Indian market.

Here is what TKM managing director Hiroshi Nakagawa had to say, “Cars like the Yaris or Vios are not suitable for the Indian market. They cater to certain specific markets like Thailand. It’s not meant for India. However, for the Indian market, we have Etios. There is no hatchback planned below or above this. We are also employing the Kaizen methodology to improve our production process.”

We understand that the Etios hatch will reach the Indian market soon, and will serve the company’s cause of including a compact in their portfolio. But it does not hurt to have another compact added now, does it! Just look at Hyundai, General Motors, and Maruti Suzuki; their entire existence depends on small cars. So, why can’t Toyota bring the Yaris alongside Etios?

Anyhow, Toyota has confirmed that it is expecting half of the sales next fiscal to be concentrated around the upcoming small car Etios.

“Next year, we are confident that the total sales of the company will be 150,000 units, out of which we expect the Etios to be around 67,000-70,000 units,” Toyota Kirloskar Motor (TKM) deputy managing director (Marketing) Sandeep Singh said. Singh also said that the company expects to sell a total of 70,000 units this year, as compared to 55,497 units last year.

2010-Toyota-Yaris

Now curiosity got the better of us and we wanted to know whether the Etios was going to have a diesel engine. And this is what we dug out, “In the initial phase, it will be launched with the petrol engine only, but we are conducting a market study on the diesel option and we are seriously considering that option as well.”

Meanwhile, Toyota Fortuner continued to bring in the big number for the car maker, and Singh said that the company has got 2,500 more orders after the bookings were reopened this month. “The total delivery pending is 6,500 units. Once it reaches 7,000 units, we will stop taking orders again,” Singh said.

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Skoda Yeti Adds Glamour At The Hyderabad Auto Show

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(Left to Right) Mr.Yashwant Jhabakh, CEO Mahavir Motors, Mr. Ashutosh Dixit, Senior General Manager - Sales and Marketing, SkodaAuto India & Mr. Prasav Jhabakh, COO, Mahavir Motors at Hyderabad Auto Sho The Hyderabad International Auto Show is in full swing now, and making the best of the show was Skoda. Skoda showcased its much talked about crossover SUV Yeti for the first time in Hyderabad. And it definitely comes as a good sign for all the Skoda fans in India who have been waiting for a SUV from the car maker.

The highly agile Yeti looks compact and is stylishly designed with excellent handling characteristics. Even before its launch, Yeti has created quite a buzz in its segment. The four wheel drive Skoda Yeti will be available in India in petrol and diesel models with 1.6L to 2.0L petrol engines and a 1.9-litre turbo-diesel engine.

Skoda Yeti has also attracted quite a fan following with its off-road capabilities and superb emission values. Yeti gives an impressive top speed of 201 kmph and excellent traction.

Skoda has not revealed price or launch details of the SUV in India yet. Rumours have it that the Yeti will be priced between Rs 12-14 lakh, but we will have to wait till we hear something from the company itself.

Other stars at the Hyderabad Auto Show included the recently launched Rolls Royce Ghost, Toyota Corolla Altis Diesel, Fiat Punto 90 bhp and BMW 2010 model 5 series luxury sedan.

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Audi Q7 Already Meets Euro 6 Norms to Be Implemented in 2015?

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ABT_Q7_Facelift_Front_CR_kl The Audi Q7 flaunts comfort, diversity and the latest engine technology. So, don’t mistake the Q7 for just any SUV. The Clean Diesel technology utilized in the Q7 adds efficiency to the already efficient 3.0 TDI. Then there’s the eco-friendly factor which conveys the recently hyped green mantra.

Sporty and dynamic without losing its economical and ecological qualities; this is the ABT Sportsline engine for you. The engine received a power upgrade and thanks to ABT POWER, its performance has been boosted from the standard 240 bhp to 278 bhp. The torque too has increased from the standard 550 Nm to 580 Nm. The Q7 SUV confidently redefines SUV to be “Sporty Und Versatile”. With the ABT Q7 3.0 TDI Clean Diesel the “S” also stands for “saving”.

The 1st of January 2015 may be a sad day for many as all vehicles would have to comply with the Euro 6 emission norms. Surprisingly, it will not make any difference to ABT Sportsline; its Q7 already meet the stringent norms. “It is our task to meet the growing demands of ecologically sensible mobility so that the driving enjoyment still remains”, says Hans-Jürgen Abt, the General Manager of ABT Sportsline, the innovative company rich in tradition from Bavaria.

The innovative brains at ABT Sportsline plan well in advance. They are not just looking at alternative drive concepts, but also at the legal requirements of tomorrow. “The three litre turbo diesel in our ABT Q7 already meets some of the stricter regulations compared to European Standard 5, and further vehicles and engines are currently being planned and will be certified by TUV Rheinland”, explains Hans-Jürgen Abt.

The official tests if the economical luxury car meets the norms will be performed only after 1st September 2014 though. It will be tested if new cars meet the revised emission norms for carbon monoxide (CO), nitrogen dioxide (NO2), hydrocarbons (HC), nitrogen oxides (NOx) and fine dust particles.

European legislators seem to be demanding much lower limits with regards to nitrogen dioxide, hydrocarbon and nitrogen oxide. Around four and a half years from now just 80mg/km of nitrogen oxide would be allowed out of new cars compared to the current 180 mg/km. The ABT Q7 3.0 TDI Clean Diesel is the first vehicle from Bavaria product range to meet this standard. The message is clear: The future begins now at ABT Sportsline.

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It goes without saying that ABT Sportsline has used ABT Performance Springs and ABT Sports brake systems for its efficient and effective version of the Q7. The car tuning specialists have well-tuned their components for this amazing SUV increasing safety to deal well with the everyday traffic conditions.

The Q7 also comes with an extensive optical package that has side rails, rear aprons, fender extensions, 4-pipe exhaust units and exhaust tailpipe end caps. The Allgäu company suggests the dynamic BR alloys in 9×20 and 10×22 inch with it. ABT too offers full wheel sets with high performance tyres. Just name anything at all in the sporty and economical luxury car; each and every component or part in the Q7 confidently boasts that it meets the highest demands on processing quality, reliability and durability. If the Q7 is worth a dream, it’s surely not worth a compromise and anyone who drives an ABT Q7 will not have to make any comprise.

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The 2011 Porsche Cayenne Launched in India

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Mr.-James-Bourne-Regional-Manager-Porsche-Middle-East-and-Mr.-Ashish-Chordia-CEO-Precision-Motor-Cars-India The much awaited car has just been launched. Yes friends, the 2011 Porsche Cayenne has finally set foot in India. Precision Cars India, the official Porsche importer for India did the honours. The second-generation Cayenne has come with quite a heavy price tag. It comes in the range Rs 65.82 Lakh to Rs 1.27 Crore in India (ex-showroom).

5 variants of the all-new Cayenne have been launched by Porsche, and surprisingly, the car maker has received bookings for all these. The newcomers are: Cayenne (Rs 65,82,000), Cayenne S (Rs 78,62,000), Caynne Turbo (Rs 1,27,10,000), Cayenne Diesel (Rs 59,22,000) and Cayenne S Hybrid (Rs 75,46,000).

“We have already received bookings of at least 70 units. This model represents the perfect balance between elegant design and powerful driving dynamics. Efficiency has significantly improved making this model an outstanding trendsetter in its segment,” Porsche India’s Director, Ashish Chordia, told reporters during in Mumbai.

As of now Porsche has just two showrooms in the country. But, it looks like the car maker is too excited about the number of bookings it has received and is planning to open five more. They would be set up in Chandigarh, Channai, Kochi, Hyderabad and Ahmedabad.

The Cayenne S Hybrid seems to be the one arousing highest interest. A highly sophisticated parallel full hybrid drive ensures an impressive mileage of 12.2 kmpl with CO2 emissions of just 193 g/km. This variant offers the performance of an eight-cylinder, but comes gives the mileage of a six-cylinder running on much less fuel.

Not just the hybrid variant, all variants of the new car launched today obediently follow the manufacturer’s principle of “Porsche Intelligent Performance.” They offer more power on less fuel, better efficiency and lower CO2 emissions. Porsche claims the fuel intake to be lesser by up to 23 per cent. The new Tiptronic S eight-speed automatic transmission with Auto-Start-Stop and gear ratios, engine thermal management and transmission cooling circuit, on-board network recuperation, variable engine cut-off and intelligent lightweight construction helps achieve the phenomenal figures.

The new active and extra light all-wheel drive gives the Cayenne the optimum weight. The Cayenne S is down by 180 kilos. The wheelbase has increased by 48 mm enhancing interior space and variability. The striking cockpit-like interiors, drawing inspiration from the Panamera, have the centre console between the front seats. The rear seat can move back and forth by 160 millimetres with the backrest angle adjusting to three different settings for added comfort.

The 3.6-litre V6 Cayenne’s power has been increased to 300 bhp and with fuel consumption down by around 20 per cent to give a mileage of 10.1 kmpl. The Cayenne Diesel’s 240-bhp 3.0-litre V6 motor reduces fuel intake by 20 per cent, increasing mileage from 10.7 to 13.5 kmpl. The high-torque Cayenne S’ 4.8-litre V8 motor spews out 400 bhp compared to the 385 bhp expelled by the earlier Cayenne and consumes 23 per cent less fuel delivering 9.5 kmpl. The most powerful Cayenne Turbo, with its 500 bhp 4.8-litre V8 bi-turbo now runs 8.7 kmpl consuming 23 per cent lesser fuel.

The Cayenne S Hybrid has the 47 bhp electric motor in combination with the 333 bhp compressor engine delivering high torque at low speeds. Together, they deliver 380 bhp and peak torque of 580 Nm at just 1,000 rpm, with the same kind of performance as the Cayenne S with its V8 power unit. The two drive units are connected to one another by a separator clutch. The driver has the liberty of covering short distances on electric power alone at speeds of up to 60 km/h; emission-free and hardly any noise.

The electric motor also boosts acceleration. When no further power is required, the combustion engine may be fully detached from the drivetrain at speeds of up to 156 km/h. It’s called the sailing mode and the drag forces exerted by the combustion engine and their braking effect are eliminated delivering lower drive resistance and fuel consumption.

“The new Cayenne features a completely new exterior and newly defined luxury interior. Yet in today’s world, it’s clearly not enough to pour on more power; there must be a clear, simultaneous improvement in fuel consumption. We have optimized this objective to a maximum by reducing CO2 emissions of up to 26% and a reduction in fuel consumption of up to 23% less. This car clearly brings a new dimension to the SUV market”, said Deesch Papke, Managing Director of Porsche Middle East and Africa.

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Land Rovers Voted The Nation’s Most Unreliable Cars In UK

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Land Rover Don’t we all believe that the Land Rovers are the big king of the SUV segment? We do, but there is one organization in the UK which has a different story to tell. A consumer group in the UK, Which?, has named the Land Rover models as the nation’s most unreliable cars. We do not like the sound of the findings of the research conducted by this group called Which?. But let’s hear its story anyways.

As we all know Land Rovers are designed to tackle the worst off-road conditions known to man, but it seems that these models are struggling to cope up with the more everyday hazards of the school run and commuting. The research findings of Which? suggest that the Land Rover car owners are driven to distraction by the many faults in the cars and long periods in the garage.

Models from the once-proud British marque, now owned by Tata Motors of India, occupy three of the bottom four places in the reliability league for 4×4 vehicles.

The Land Rover Discovery 3, which is priced at £46,000, has been named the most unreliable car on the road. The Range Rover Sport, the price of which goes up to £70,000, also put a bad performance in the research. The much affordable Freelander could not salvage the prestigious history of the company either. Other royal British names, including the sister brand of Land Rover, Jaguar, and Mini which is now owned by BMW, also scored meagerly.

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Which? said: ‘All three of Land Rover‘s supposedly rugged 4x4s show they are not as tough as they make out, claiming three of the four lowest places in our table [of 4x4s]. Worst of all is the Discovery 3. In fact, it’s the worst scoring vehicle of all in this year’s new car reliability charts, and the only one to dip below 70 per cent.”

The Which? surveyed more than 66,000 cars up to eight years old and found that Skoda makes the the most reliable vehicles followed by Lexus and Mazda. The Kia Picanto raced ahead of all and was voted the most reliable of all cars.

Well, that’s from the survey conducted by Which?. Let’s see what Land Rover has to say in its defense. Land Rover said that while the Which? survey was disappointing, other research had been more positive. The Tata Motors owned company argued that the Which? survey used a small sample of its customers, and that many models had been updated.

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Mercedes Plans a New SUV, Second Shift and Finance Arm for India

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mercedes_logo Just yesterday we told you that Mercedes-Benz is currently the most successful premium brand in India. Today, Mercedes’ plans prove the point. The German luxury car maker is getting all set to start off a second shift at its Chakan plant. Mercedes had already invested around Rs 200 Crore on the plant and now it can relax that it was worth the investment. The demand for Mercedes cars has increased so much that a second shift has been thought of? That’s what Mercedes says.

The Chakan plant has an installed capacity of 5,000 units per shift a year. On Feb 24th last year, the plant had been set up on 100 acres of land. It does have a capacity for future expansion and is believed to be among the fastest green-field operations created in the country.

During the SLS AMG super sports car launch last Friday, the car maker claimed that 10 bookings had already been received for the Rs 2-2.5 Crore car and Mercedes plans deliver those cars by end of this year itself. The SLS AMG’s powerful 6.2-litre engine allows the car to hit a maximum of 317 km per hour!

With more cars being sold, there would be more used cars in the market. Over the past 15 years the company has sold around 30,000 vehicles. The Proven Exclusivity programme, Mercedes’ used auto business that had been globally operating in 35 countries since last year thus came to India recently. Since May, Mercedes claims to have sold 150 units in cities like Mumbai, Delhi and Aurangabad. It said that diesel cars contributed to 60 per cent of the sales while the remaining cars sold were petrol variants.

If 3,250 Mercedes cars were sold last year in India, the car maker managed to sell off an impressive 2,450 units during the first half of this year. Only 1,400 cars had been sold during the first half of last year. During the last seven months, 16 Mercedes models were introduced in India and the luxury car maker now has plans of launching a new SUV by this year end. As of now, it has the Rs 50-Lakh M-Class and the Rs 65-Lakh GL-Class in that category.

All-New-2010-Mercedes-Benz-E-Class-car-pics

Now that everything is working fine for the luxury auto maker, Mercedes is thinking if something more to add value to its sales numbers. It has realized that most purchases are driven by financing options and is thus thinking of having its own finance arm. “We will be soon launching our global vehicle financing arm Daimler Financial Servicing in India,” said Debashis Mitra, director (sales and marketing).

With its own financing arm and several new models, Mercedes-Benz plans to do all it can in the luxury car market that has been experiencing a 50 per cent growth. As the Daimler group too is putting up a truck plant near Chennai, Mercedes feels that it is just the right time to start off a financing arm. However, no details were shared regarding the time frame for launching the finance arm.

Mitra said that pre-owned cars would be sold through authorised dealers and purchasers would be provided additional support in areas like financing, documentation and delivery.

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Fiat To Bring CNG Punto By Early 2011, And A Small Car By 2012

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Fiat-Grande-Punto A couple days back we told you that some of the leading car manufacturers, like Maruti Suzuki, General Motors, Hyundai and Toyota, are all gearing up to bring in more of their cars in LPG and CNG options. And now we have another car manufacturer added to the list. We are talking about Fiat India.

Fiat India has decided to contribute to the makings of a healthier environment by announcing its plans of launching CNG variant of its current hot property, Grande Punto. And though we do not have an official word on when the launch might happen, we speculate it to happen by early 2011. Earlier also there were speculations that the company was planning to start in CNG cars categories as well. And the same rumour got a base when the company showcased a concept of the same at the auto expo 2010.

“Yes, we are going to launch the CNG versions of the Punto in the first quarter of 2011 in the Indian market more than ever. We will exclaim the word, ‘Make CNG’, but not before two more models of our super successful Punto gets rolled out.”Mr. Tarun Khanna, head of marketing, Fiat India was heard as saying on different set of plans that the company has.

The official unveiling of the technical specifications of CNG Punto would take some time, but we bring you a basic idea of the new car anyways. The CNG variant of the Punto is expected to have a 1.2 liter engine, and price will be kept competitive by placing it in between its active and dynamic variants.

Some of the company sources have revealed that initially the company will launch the CNG Punto in the active variant only. And if it gets a nod from the demanding Indian consumers, Fiat will bring on the same in the dynamic variant too.

Additionally, Fiat India is also focusing on increasing its market share by launching a car smaller than the Punto. The new car, equipped with a 1.0 liter engine, would make it to the Indian roads in 2012.

Rajeev Kapoor, President and CEO, Fiat India, “Our new small car, smaller than the Punto and powered by a 1.0-litre engine, would hit in 2012 and we expect it to be a volume product for the company.”

And this small car would be a treat to the eyes as it will borrow quite a few design cues from the beautiful Grande Punto. The development of this small car is likely to be a joint effort by the company’s Italian and Indian engineers.

Chances are that this small car could be the 2012 Fiat Palio that we have been talking about for quite some time now. The new small car could be based on the new Fiat Uno’s platform.

All this planning is good, now only if Fiat could do something about its ailing after-sales services.

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The New Alto K10 Exposed… Mileage of 20.2 Kmpl?

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Alto-K-Series-Front Just pull out details of India’s best selling models and you will see the Maruti Suzuki Alto on the top. Putting on show the highest sales figures month after month, it looks like the Alto has become the unbeatable. What more can the car maker do to further enhance sales? Launch an enhanced version of the #1 model. That’s exactly what Maruti Suzuki planned to do, and the new car with the new K-Series engine is getting all set to launch next month.

The all-new Alto K10 will come with a larger power-packed 1000-cc engine. The car’s appearance has changed inside and out. The spy pics reveal that everything has changed for the good. The new Alto is 125 mm longer than the older version giving it much more space than its kinfolks in the B segment like the Estilo, the old WagonR and A-Star. The car gets a new headlamp shape and a redesigned bumper with fog lamps. The grille has been made wider with a thin chrome strip on top to give it an upmarket look.

It did not take too long for the brochure to get leaked. The brochure contained a picture of the aggressive Alto K10 with the mileage it’s gonna deliver. Any guesses? 20.2 kmpl! That’s what the new car will deliver. Maruti Suzuki has officially declined to reveal details about the car, but a spokesman said, “It will be an affordable, but aspirational product.” The K10 is believed to be come in the Rs 2.8-3.4 Lakh range. We hear that only top-end variants Lxi and Vxi will be available.

Tata Motors and Hyundai too are getting ready with similar models for the premium entry-level segment. So, just wait a while and you’ll see how tough the competition is going to get. Hyundai is thinking of a model priced below the Santro while Tata Motors is trying hard to come with something in between the world’s cheapest car and the Tata Indica.

While Maruti Suzuki sold over a million units last year, nearly a quarter of them were Altos. Neither the Nano nor any of the recently launched cars like the Ford Figo, Nissan Micra or VW Polo could beat the Alto in sales. The high-end Alto Lxi that contributes to 70 per cent of Maruti’s sales is priced at Rs. 2.8 Lakh and competes with the Rs 2.7 Lakh Santro standard and the 3.23 Lakh Chevy Spark.

Maruti Suzuki’s B segment, which is swarmed with models like the Alto, WagonR, A-Star, Ritz, Estilo and Swift, together contribute to over 70 per cent of its total domestic sales. Now the new Alto has been aimed at adding value to the Alto’s market share rather than disturbing it. Analysts say that Maruti Suzuki is looking to sell around 2 Lakh Altos and up to 1.5 Lakh K10s a year, raising the combined count by 40 per cent.

The Alto has always been Maruti Suzuki’s lucky charm when it comes to sales. Thanks to Tata Motors and Hyundai, for the first time, this model too will face competition. However, Maruti may not find it too difficult to tackle the issue. Even before the Tata Indica, Hyundai Santro and Daewoo Matiz came to India, Maruti Suzuki was going great guns with it M800, which actually set the foundation for small car market in India. The M800 was much cheaper and it stood out against the competition posed by the new entrants. Maruti Suzuki then quickly rolled out many more cars like the Baleno in 1999, the WagonR in early 2000 and the Alto around six months later.

The new car has been aimed at luring first-time buyers who may have been looking for something more rewarding in the entry mid-size range. At least 60 per cent of Alto buyers are first-timers, so we believe the new K10 will certainly do well.

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Toyota Corolla Altis Diesel Launched in India

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Toyota Corolla Diesel Launch Launches, launches, and some more launches. Last week we saw the launch of two much awaited cars: the Nissan Micra and Mercedes Benz SLS AMG. While on is targeted as a volume generator for the company, the other has been brought for the elite rich Indians. And now we have another launch.

Toyota Kirloskar Motor Pvt. Ltd. (TKM) today announced the launch of the Corolla Altis Diesel in India, and in doing so had made India the first Asian country to get the BSIV Corolla Altis Diesel. The diesel Corolla Altis has been developed with the basic concept of ‘optimum balance of performance and economy’.

The new Corolla Altis diesel is equipped with a newly developed 1.4L in-line 4-cylinder D-4D Common Rail Diesel Engine that can produce a maximum output of 85.7 bhp and a peak torque of 205 Nm. The D-4D technology, also featured in the Innova, Fortuner, Prado and Land Cruiser 200, developed by Toyota has earned a global reputation for its high quality, durability and reliability. The D-4D engine is paired with a 6-Speed Manual Transmission, which is a first-in-segment offering.

And guess what’s the best thing about this new car. The new Toyota Corolla Altis diesel has an ARAI-certified best-in-class mileage of 21.43 km/l. Name a car which can boast of a mileage like that. The car also boasts of the best ground clearance in its segment. The Corolla Altis Diesel a very sporty mesh grille and better aerodynamic characteristics.

Mr. Nakagawa (MD, TKM) said, “The Corolla DNA that has been handed down for 40 years is now in its 10th Generation with over 35 million happy customers worldwide. The car made its debut in India in 2003, and now has more than 60,000 satisfied owners in the country. As part of our long-term commitment to bring the best of Toyota’s technology to India, we are very proud to introduce the Corolla Altis Diesel. The Corolla Altis Diesel has Toyota’s proven D-4D technology, and I am happy to say will have the best fuel efficiency in its segment.”

Mr. Sandeep Singh (Deputy Managing Director-Marketing, TKM) said, “Apart from the spacious interiors and luxury features of the Corolla Altis, the diesel variant has the best fuel efficiency, lowest NVH and the best ground clearance in its segment. Our target customers are individuals who are business professionals, in the 35 to 45 age group looking for a perfect balance of performance and economy. The launch of the Corolla Altis Diesel has enhanced Toyota’s line-up in India, and we are looking at consolidating our leadership position in the C-segment with a sales target of 10,500 units for the Corolla Altis in 2010.”

The Corolla Altis Diesel comes with a competitive price tag ranging between Rs 10.95 lakh and 13.75 lakh, ex-showroom Delhi.

Two thumbs-up to Toyota for launching the much needed diesel variant of Corolla Altis.

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Localisation Becomes The Key To Survival In India

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bowtie Competition has tricked car manufacturers into resorting to all kind of strategies. While offering more features for at competitive rates and manufacturing products locally are some of the strategies often adopted by the car makers, there is another one that is getting increased attention from them; increasing the intensity of local component sourcing. Let’s talk about GM India which has a similar plan for its upcoming commercial vehicle project in the Indian market.

General Motors India, the local subsidiary of the Detroit-based car manufacturing giant, is planning to strengthen its base in India, and intends to locally source more than 90% of its requirements for making commercial and passenger vehicles. The planning, which would be taken up in the upcoming two years, comes as a welcome news as it will benefit a number of current and potential Indian suppliers, auto component manufacturers, and various other allied companies.

General Motors India, at present, sources only 60% of auto parts and ancillary for its Chevrolet brand passenger cars from India. “When we launch commercial vehicles, localisation rate would be 90%. And that would mean purchasing and making everything in India,” says GM India president and managing director Karl Slym. “Within a couple of years, we would reach that mark in passenger cars. Some components are just not available in India and existing contracts (with international suppliers) need to expire before looking at local suppliers.”

General Motors has been trying to create capabilities on suppliers end such that they can quote for orders outside GM India. At the end of first quarter of the current financial year, Indian suppliers were able to get $500-million business allocation from GM outside India, and it would not be too long before we see a significant increase in the numbers.

“We still think that it can be double than what it is now. Of course, the activities outside India have meant that volumes are lower in Europe and North America. So, it will probably put a bit of time lag, but our plan would be to get to $1 billion by the end of the financial year,” adds Mr Slym.

“The company is also planning some MUV and SUV launches with the help of its new parent, SAIC, making India and China the sourcing hubs. So, with higher localisation, they can reduce the input cost, thereby bringing down prices of other car models as has happened in the case of Beat, which is priced very aggressively,” says IDFC SSKI Securities director research Ramnath Subramaniam.

All the planning from General Motors seems fine, but the only hitch (a big one, actually) is Tata Motors. Tata Motors practically rules the commercial vehicle segment in India, and a significant part of the market share is dominated by Ashok Leyland. Even an international major like Volvo has been able to make a small dent in their combined market share after many years of efforts.

But GM India is not the one to be intimidated. The company is strengthening its supplier base and manufacturing capacities. In November, GM will start production at its power train plant with a total capacity of three lakh petrol and diesel engines, with an investment of $200 million. “Our engine plant will start operating from November, and the Beat will have petrol and diesel engines from there,” adds Mr Slym.

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