The Curse of Capacity Constraint Stings M&M

Mahindra Bolero Of late, we have been hearing so much about capacity constraints that we don’t raise an eyebrow at a car having long waiting periods. Instead, it has become something that indicates the successful status of a particular model. Maruti Suzuki India and Volkswagen are badly affected by capacity constraints and both are facing a lot of trouble delivering their respective models on time.

And now we hear that we have a new addition to the club of car makers that are being affected by shortages in capacity. Surprising, but we are talking about Mahindra & Mahindra. The Indian SUV manufacturing company is celebrating its 10 years of grand success of the Bolero. Now when this SUV was launched way back in 2001, owing to its simple looks and super competitive pricing, it became an instant hit with the crowds in the tier II and tier III cities.

M&M decided to relaunch the popular SUV in 2007, and since then it has seen an increase in Bolero sales in big cities too. Consequently, the company, despite selling 70,000 units each year, has fallen victim to capacity constraints with the waiting list extending from 4 to 6 weeks. The company now plans re-launch the Bolero for the third time, as well as expand the production of the SUV at its Chakan plant, so the rising demand can be satisfied. The company had brought in the Bolero CRDe to the Bolero line-up back in 2008. This also happens to be the last addition in the Bolero family.

On the occasion, Vivek Nayer, senior vice-president of marketing, automotive sector said, “The Bolero’s re-launch done by the company in 2007 attached an aspirational imagery to the brand post which it has been showing consistent growth for the auto major in the country. It has out-performed the category and increased its market share from 19 to 29 per cent since 2006-07. About 75-80 per cent of the sales volumes are from smaller towns and the remaining 20-25 per cent from metros.”

Mahindra Bolero is manufactured at the Nashik plant, which has an annual production capacity of 1.50 lakh units. The plant also manufactures other popular Mahindra SUVs such as Xylo and the Scorpio.

“These are decisions taken by the company from time-to-time,” said Nayer. The SUV is named after slow-tempo Latin music, and is powered by the 2500 cc, 4-cylinder diesel engine that delivers maximum power of 72.5 bhp. The robust chassis and rugged look has made it a very distinguishable product on the Indian roads.

And now that Mahindra has closed the deal with Korean SUV manufacturer, Ssangyong Motors, we will see more SUVs in the portfolio of the Indian car manufacturer.

    SocialTwist Tell-a-Friend     Add to Technorati Favorites                 Add New Post

Mercedes Benz India to Launch New M-Class Grand edition

Mercedes-M-class-Grand-Edition Guess who is getting threatened by the upcoming launch of the BMW X1 and the Audi Q3! After a long row of launches in the past couple of months, Mercedes Benz India needs further more reassurances about its position in the Indian market. And to that end, Mercedes Benz India is planning to launch yet another car in the Indian market, and this time around it is the new variant of the M-class SUV.

The new variant of the M-Class will be christened as the Grand Edition and will be pricier by at least Rs 5 lakh compared to the current selling model. The M-Class Grand Edition will have a number of distinguishable features. These include 19-inch light-alloy wheels in a Y-spoke design with tyre size 255/50 R19, blue-tinted thermal insulation glass all-round, dark-tinted headlamps and LED technology for the daytime driving lights and sporty, darkened tail lights.

Also added are Aluminium roof rails and an extensive chrome package with an AMG radiator grille and under-guards at the front and rear round off the additional features. Standard equipment in the M-Class Grand edition includes PARKTRONIC and a metallic paint finish.

The interiors of the M-Class Grand Edition keeps up to the hallmark of the car maker with its high-grade poplar wood trim and a black roof lining. The German carmaker has also included ambient lighting to put the occupants of the car in an exclusive Grand Edition mood. Luxury of the car is enhanced with the excusive hard-wearing, breathable and pleasant-feeling ARTICO man-made leather upholstery with contrasting seams and raised piping.

The dashboard in a 3D-look is lined with ARTICO and the centre door panels are lined with real leather too. Enhancing the sportiness of the car are the AMG sports steering wheel in leather with shift paddles, sports pedals of brushed stainless steel with rubber studs and stainless steel door entry panels. The exclusivity of the SUV is further stressed with a Grand Edition emblem featured on the centre console.

Well the company has not revealed anything regarding the price of the vehicle. But our sources tell us that M-class prices will go below the Rs 50-lakh mark. Currently, Mercedes Benz does not have a compact SUV and as we mentioned before, Mercedes has to have something to tackle the soon-to-be-launched BMW X1 and Audi Q3. The new price structure would definitely attract the baby SUV buyers towards the M-class due to more features and space on offer.

    SocialTwist Tell-a-Friend     Add to Technorati Favorites                 Add New Post

Volkswagen Up! Spy Images

VW_Lupo The VW Up! city car was initially derived on a rear-wheel-drive platform which Volkswagen later dumped to accommodate a more conventional front engine front-wheel-drive layout. We had earlier heard that VW would build 3-door, 5-door and electric versions of the Up! Today, we’ve managed to get our hands on a few spy images of the upcoming Volkswagen Up! aka Volkswagen Lupo facing the heat in Death Valley, USA. Death Valley happens to be one of the lowest and hottest places in America, with temperature rising up to 56.7 degree C (134 F) in July and 52.7 degree C (127F) in August.

The first full body prototype of the VW Up! will probably be here in our country by the end of next year. But right now, the images that we have here is the new car caught while undergoing hot weather testing in the USA. We believe the sub-Polo hatchback will employ the VW Polo’s 1.2-litre diesel and petrol engine. Oh yes, earlier today, we did mention the new Fabia too featuring the Polo’s 1.2-litre diesel motor. The performance has been amazing, and so, more cars may carry the same engine. The entry-level variant of the VW Up!, however, may feature a sub 1-liter petrol motor.

VW-Up-Lupo-spied-Death-Valley-1

Volkswagen has tried its best to protect the Up!’s design from getting leaked. As you can see, the car has been camouflaged. We may also say that the car maker has succeeded to some extent. With fake spoilers on the new car, VW has tried to confuse everybody. The radiator grille too was masked. As of now, we have a feeling that the Up! will feature a design that’s a blend of the Hyundai i10 and Volkswagen Polo.

Now, it is not just the excitement of finding the first images of the camouflaged car. It is now almost certain that the new car will go into production. Lupo will be manufactured at VW’s plant in Chakan, Pune. There were two prototypes undergoing the tests. So, it can also mean that the electric version of the car is being tested alongside the conventional model.

    SocialTwist Tell-a-Friend     Add to Technorati Favorites                 Add New Post

New Facelifted Skoda Steals the VW Polo’s Heart

New facelifted skoda fabia The SUV Yeti will soon enter the Indian market followed by a stripped-down version of Skoda’s premium hatch, the Skoda Fabia, by end of this year, and next year will mark the entry of yet another Skoda sedan priced in the range Rs 6-10 Lakh is what we had told you earlier. Here’s more on the facelifted Skoda Fabia.

The new car was unveiled at this year’s Geneva Motor Show and we know not if it’s gonna excite many. We believe it all depends on the price tag. The current Fabia has failed to create the magical effect just because of its slightly hefty tag. Features are plenty, but not many are ready to pay the price. Let’s see what’s new and exciting about the new Fabia.

The car will be entering the Indian market in October. There will be a few changes in the appearance. However, what’s under the hood is what’s gonna transform the Fabia’s image. We hear that the new Skoda Fabia will feature a new engine. The 70 bhp 1.4-litre PD TDI Inline-3 diesel engine will be replaced with a splendid 1.2-litre diesel engine. It will carry the motor that the Volkswagen Polo flaunts.

With the new motor under its hood, the facelifted Fabia will hopefully deliver 74 bhp. The engine is more fuel efficient too and low on displacement with cleaner emissions. Featuring Volkswagen’s latest common rail technology, the VW Polo’s 1.2-litre common rail diesel engine ensures excellent overall performance. The diesel motor offers outstanding fuel economy and is incredibly quiet as well. The new Fabia will hopefully perform in a similar manner.

    SocialTwist Tell-a-Friend     Add to Technorati Favorites                 Add New Post

Bajaj-Renault-Nissan Ultra Low Cost Car Prototype to be Ready by 2011

Bajaj-Renault-Nissan-ULC-Small-Car The world’s cheapest car is in the headlines once again. After all the safety tests declaring the Nano an absolutely safe car, it caught fire. Nevertheless, the car is popular and continues to add charm on the Indian roads. It has not just set the roads ablaze, but the hearts and minds of car buyers too. That’s exactly what’s pushing other car makers to do something to deviate the minds of those obsessed with the Nano.

The Nano has dared to challenge the unchallenged run of Maruti Suzuki. We hear that India’s largest selling car maker is thinking of a small car pitted against the Tata Nano. Then, we also hear that the Bajaj-Renault-Nissan small car that had been planned to counter the Nano is finally taking shape. We finally get to hear something about the small car.

Last week, French car maker Renault said that the prototype of its ultra low cost car for the Indian market would be ready by early 2011. The car is being developed in partnership with Nissan and Bajaj. “All details related to the ultra low cost car and its prototype will be ready by the end of this year or early next year,” Renault India Country General Manager Marc Nassif told reporters on the sidelines of the Society of Indian Automobile Manufacturers (SIAM) summit here.

The car developed by the Franco-Japanese Renault-Nissan alliance in union with Indian two -wheeler maker Bajaj was earlier believed to be hitting the Indian car market by 2012 wearing a price tag of $2,500. A little later emerged the difference in opinions and lack of consensus among partners. It looked like it would take longer for the plan to turn into reality. And now, suddenly and finally have some word on the car’s development. When asked about the details of the project, Nassif said the partners will finalize the exact pricing, engine capacity and marketing strategy by next year.

As of now, the project happens to be moving at a smooth pace with the three companies coming to an agreement that Bajaj will be responsible for developing and manufacturing the car, while Renault-Nissan will manage branding and marketing. Let’s wait for the car to launch and then see if it is able to give a tough fight to the Tata Nano.

It was earlier said that the ultra low cost car would be priced lower than the Nano. Can a car so cheap be developed and sold for profit? We will have to wait till the prototype is ready, which will happen early next year. The ultra low cost car will be an extreme value-for-money car as hinted by Mr. Rajiv Bajaj MD of Bajaj Auto, which is famous for introducing bikes like the Pulsar which truly revolutionized the Indian two-wheeler space.

    SocialTwist Tell-a-Friend     Add to Technorati Favorites                 Add New Post

KNCAP Bestows Top Safety Ratings to Chevrolet Beat/Spark

Chevrolet_Beat_India Chevrolet Beat/Spark owners have a reason or two to be happy about. The Korean New Car Assessment Program (KNCAP) has certified the Chevrolet Beat/Spark with best ratings bestowed upon it nothing less than five stars. Chevrolet Beat was awarded four stars in last year’s Euro NCAP as well. The car showed immaculate mettle during the front crash and frontal offset crash tests.

“The outstanding performance of our new mini-car in stringent NCAP testing reflects our attention to safety as well as eye-catching styling and great packaging,” said Jack Keaton, vehicle line executive for General Motors’ Global Mini-Vehicle. “GM has made safety a focus as part of our ongoing commitment to design, build and sell the best vehicles in the world.”

The Spark scored a four-star rating in pedestrian protection, with the best scores ever (19.54 points out of a maximum 30 points) for any car category, and the whiplash test.

The Euro NCAP gave a maximum score of eight points in the side-impact crash test against a moving deformable barrier. The Chevrolet Spark also received a score of 7.35 points out of 8 points in the side pole test, indicating solid passenger protection in the event of a more severe side collision.

Chevrolet_Beat_India_Launch

The Spark also scored big in terms of child restraint system dynamic performance tests. The active and passive safety features of the car enhance its structural safety. More than 66 per cent of the car has been built using high-strength steel, with 16.5 percent comprised of ultra high-strength steel.

In addition to its strong results in KNCAP and Euro NCAP testing, the Spark received a Grade 1 rating from the Korea Insurance Development Institute (KIDI). General Motors has launched Spark/ Beat in Asian countries including India and some parts of Europe. Chevrolet Spark will be launched in the US by 2012.

    SocialTwist Tell-a-Friend     Add to Technorati Favorites                 Add New Post

Audi to More than Double its Diesel Models in the U.S.

audi-logo Recently we had carried a blog post “Diesel Cars Versus Petrol Cars – Are Diesel Cars Better?Diesel cars were, are and will continue to be the leaders, at least in the premium and luxury car segment. Diesel cars in the premium and luxury segments have been giving their petrol siblings a hard time on the Indian roads. This is not just the situation in India though. Let’s hear about the U.S. Green Car Advisor reports that Audi U.S.A. plans to dramatically boost the number of clean-diesel models it sells in the U.S.

It looks like Audi has completed its assessment and has come to a conclusion that it will have to increase the number of diesels in its line-up in the U.S. Audi’s sales figures prove that diesel cars are preferred to their petrol counterparts. They seem to be a popular fuel economy and performance choice among Audi buyers.

Last year, Audi introduced Turbo Diesel Injection versions of the Audi A3 and Q7 in the U.S. marketplace. The luxury car maker was rather surprised to note the better-than-expected success of the diesel models. Audi has now decided to more than double its existing diesel portfolio in the next year or so. That’s what Scott Keogh, chief marketing officer of Audi U.S.A., had to say in an interview with Green Car Advisor.

Scott Keogh, however, did not disclose which models would be added. But, Audi USA spokesman Brad Stertz noted that, in the past Audi had said it was “looking at the possibility of TDI for the A8, A6 and A4,” all contingent on “working through packaging of the TDI equipment in different models, emissions, and other regulatory testing.”

Mercedes-Benz, BMW and Audi have always been fighting each other in sales to reach the top spot. It is to be noted though, that out of the three German luxury brands, Audi is the most excited about boosting its diesel inventory in the USA. Audi’s diesel cars haven’t let it down. They have posted better sales than diesel cars from both BMW and Mercedes-Benz.

TDI is “definitely a part of the growth and success we’re having in the [U.S.] marketplace,” said Keogh. For the month of July, Audi posted a 22 per cent increase in sales in the U.S., and the Jan-Jun period happens to be the car maker’s best six months ever in the marketplace. It looks like Audi is heading in the right direction for a record annual performance.

As mentioned earlier, it was just last year that the diesel A3 was launched in the U.S. But, this variant now represents nearly 50 per cent of the model’s overall sales. “If you look at last year’s A3 sales number for the gasoline version, it has stayed essentially flat this year,” Keogh said. He said that the numbers were beyond their expectations. The luxury car maker had foreseen just 15-20 per cent of the overall sales of the A3 and Q7 coming from the diesel variants.

Audi TDI Engine

As for the A3, the diesel business growth has been 100 per cent incremental. The diesel variant offers growth without the substitution issues of losing sales in one category because of gains in another. As for the Audi Q7, the TDI version represents nearly 40 per cent of overall sales.

Consumers in the U.S. have begun favouring diesel powertrains possibly because of the fuel-economy gains of diesel motors over gasoline engines. Diesel prices are within a dime or two of gasoline per gallon. Diesel variants offer a 20-30 percent fuel economy advantage over gasoline versions. However, it is the younger and richer consumers that buy the diesel Audi cars. Audi charges a price premium of about $1,300 for the four-cylinder A3 TDI over the gasoline-powered four-cylinder A3.

    SocialTwist Tell-a-Friend     Add to Technorati Favorites                 Add New Post

Tata Motors to Solicit JLR’s Help for Smarter Cars

tata-logo Even though Tata Motors and Jaguar Land Rover brands belong to the same entity, we hardly see any resemblance between the two, which is quite understandable considering that the two car makers have different histories to boast of. While the JLR brand is at the pinnacle of all things luxury, the Tata cars have a reputation of being no-frills but highly fuel efficient. But, looks like we are finally going to witness some similarities between the two, as the two brands seek out each other’s co-operation.

Tata Motors is planning to seek help from British subsidiary Jaguar Land Rover’s engineers to build more refined passenger cars. And what’s more Tata Motors will use JLR’s expertise in design, noise and vibration and other aspects to churn out cars that will be more sophisticated than its current range of Indica hatchback, Indigo sedan and the Nano ultra low-cost car.

PM Telang, MD of Tata Motors India operations said: “We know we need to improve our car operations in terms of fits, finishes, noise, vibration and design elements. That’s where Jaguar Land Rover can help us.” Post numerous incidences of the Nano catching fire, Tata had invited some JLR engineers to have a look at the car.

“We invited a group of engineers from JLR to join 20 engineers from Tata Motors and forensic experts and examine the Nano closely. They did a thorough job and came to the conclusion that there’s no design problems or faulty components with the Nano and that the instances of the car catching fire are stray instances.”

The search of the synergies between the two companies comes right after Tata Motors steered the JLR brand into a profit making entity in the first quarter. “There are a lot of synergies with JLR. we can add value to their operations and they can add value to ours,” Mr. Telang said. JLR holds a crucial card to Tata Motors success as the latter plans to boost its passenger car portfolio for the domestic as well as international market.

Mr. Telang refused to talk about future models and platforms under development except to say “Tata Motors will examine each market segment and see if it has products to cater to them”. But company insiders say that Tata has already started working on another small car that will be placed between the Nano and the Indica. And this car will take on the Maruti Suzuki’s best-seller, Alto.

jaguar-and-land-rover

JLR has earlier expressed its interests in using some of the Tata Motors’ famed frugal engineering skills to build lighter and smaller engines for the future. Mr. Telang mentioned that the emission norms in Europe will force JLR to try smaller engines. This would definitely bring the two companies closer than ever to each other. Tata and JLR may eventually take up joint engine development that would benefit them both.

Currently JLR sources engine from Ford, and will continue to do so till 2015. Additionally, Tata Motors is planning to assemble Land Rovers in India to bring down the cost as well as push up volumes.

    SocialTwist Tell-a-Friend     Add to Technorati Favorites                 Add New Post

Hyundai Santa Fe to be Launched During the Early Festive Season

hyundai-santa-fe-2010-img_1 With the arrival of the festive season in the country, car makers are getting increasingly busy with their plans to bring in new cars in the market. While some, like Tata Motors’ Nano Special for Onam, have already started, some are announcing their promises for the season. Come this October and we will have another entrant in the SUV segment fighting for survival. Yes, Hyundai Motor India is launching its popular sports utility vehicle Santa Fe in India during October-November.

“We will launch Santa Fe in October-November, ahead of the festive season. If volumes pick up, then we will consider assembling the vehicle here,” said Arvind Saxena, director, (marketing & sales), Hyundai Motor India. The seven-seater SUV, as against the earlier five-seaters, will be powered by a 2.2-litre diesel engine, and initially the company plans to import it as completely-built units.

The Korean auto manufacturer had earlier launched its SUVs, Terracan and Tuscon, in the Indian market, but withdrew them after the two models went in for a ‘model change’ globally.

When it comes to small cars, Hyundai, with its Santro, i10, i20, is well placed in the Indian market. But when we talk about premium cars, it is a different story altogether. Hyundai premium products such as Sonata and Elantra did not get much attention from the Indian car buyers who chose to stick to other car makers. Hyundai eventually stopped retailing Elantra, but now it wants to bring in the new Sonata by the end of this year. “We intend to give significant focus to our premium product category with the launch of the Santa Fe, and then follow it up with other models”, said Mr. Saxena.

After the boom in the small car segment, the SUV segment is up for a makeover. The SUV segment has become one of the fastest-growing segment in the Indian luxury car market, with more than 18-20 % of sales coming from the premium segment.

Hyundai_Santa_Fe+rear_view

The recently launched Toyota Fortuner and Mitsubishi Outlander have created hysteria of a sorts in the SUV segment in India. Hyundai Santa Fe will have to be a real heavy duty to come close to competing with the likes of other SUVs in the market. Along with the existing competition, like Honda CR-V, Chevrolet Captiva, Ford Endeavour, Nissan X Trail, Mitsubishi Outlander, Hyundai Santa Fe will also have to share market space with upcoming SUVs such as the Skoda Yeti and Nissan Murano.

“There is a huge untapped market for premium SUVs and every car player is looking at launching models,” said Abdul Majeed, auto practice leader, Price Water House Coopers.

In the international market, premium SUV sales are facing a lot of trouble as people shift their preferences to fuel-efficient small cars. But in India, premium SUVs carry a high status symbol and Indians are getting increasingly attached to them.

    SocialTwist Tell-a-Friend     Add to Technorati Favorites                 Add New Post

Volkswagen Group Posts Record Sales in Jan-July Period

VW-Group It is celebration time for the Volkswagen Group in India. The group has broken its own record as its last year’s cumulative sales figures have been outdone by July this year. That’s quite a surprise, isn’t it? Three brands belong to VW Group in India, Audi, Skoda and Volkswagen, and they have together delivered new cars to 21,333 happy customers in the country from January to July 2010.

Last year, the group had managed to deliver just 9664 cars during the Jan-July period. The figures translate into a growth of 120.7 per cent. Sales have increased by 11,669 cars and it is the highest ever growth percentage witnessed by the VW Group in India.

Speaking to the media at the SIAM Annual Convention, Mr. Joerg Mueller, Volkswagen Group Chief Representative India and President & Managing Director Volkswagen India Private Limited said, “We are making great progress with our performance in India. Our current delivery figures are overwhelming and in-line with our plans. That proves we are present in the right market with the right products at the right time. The Volkswagen Polo has seen a great ongoing response from the market and the Volkswagen Vento is already witnessing much anticipation amongst the customers.”

Is the Vento the company’s lucky charm? The new car’s production has just begun and there’s good news at the Volkswagen camp. Volkswagen believes that the Vento will further enhance the company’s presence in the Indian car market. The VW Group has its headquarters in Pune, Maharashtra and is just completing ten successful years in the country. What a way to celebrate!

The group began its journey in India with the entry of the Skoda brand in 2001. Audi and Volkswagen brands joined hands with Skoda in the country in 2007. Each brand, however, stands on its own and is known and operates as an independent entity in the market.

Mueller further added, “We are certain about meeting our targets and expect to double our sales in 2010. Keeping in mind our growth strategy we have also significantly increased our dealer base in India. The Volkswagen Group’s three brands- Audi, Skoda and Volkswagen now have around 130 dealerships and many more will be added in the near future.”

vwGroup

Volkswagen India Group is a part of the global Volkswagen AG, which is represented by 9 brands; Audi, Bentley, Bugatti, Lamborghini, Scania, Seat, Skoda, Volkswagen Commercial Vehicles (Volkswagen Nutzfahrzeuge) and Volkswagen Passenger Cars.

However, in India, the Volkswagen Group has 3 brands and 18 models in its name. It has nearly 130 dealerships across the nation and the tremendous sales figures are further going to boost the group’s confidence. It certainly looks like the company is all set to capture the Indian market. Recently, another plant was inaugurated in Pune. An investment of Rs 3,800 Crore (580 million Euros) has gone into the plant’s setup and the surging sales prove that the investment will not go waste. The new facility has a production capacity of 1,10,000 cars a year.

    SocialTwist Tell-a-Friend     Add to Technorati Favorites                 Add New Post