Monthly Archives: September 2010

Mahindra Says “No” to Global Vehicle’s $35Million Order for Pickups

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Mahindra_truck_580 About a week back, Global Vehicles ordered US$ 35 million worth pickups from Mahindra & Mahindra. And finally M&M has replied to the request with a big as ever “no”. The Indian SUV maker has accused the Atlanta based dealer of “engaging in PR theatrics while pursuing an unnecessary lawsuit.”

In June 2010, Global Vehicles, which is Mahindra’s exclusive distributor for its pick-up trucks in the American market, had filed a lawsuit against Mahindra accusing the company of causing unnecessary delays in the launch of the Mahindra pick-ups. M&M had missed two deadlines since 2009 to launch its pick-up truck.

M&M has definitely sent a strong message when it said that the company would break all relationships with Global Vehicles and would find another means to markets its products in the USA. Mahindra further claims that Global Vehicles is working hard to damage its reputation while disrupting its attempts to launch their vehicles in USA.

Mahindra announced that it has decided to reject the order for pick-up trucks from former distributor Global Vehicles USA, Inc. The Indian car maker sees this order as another example of PR drama. M&M obviously see this as Global Vehicle’s attempt to manipulate the press to damage Mahindra’s reputation.

M&M also thinks that this is an attempt by Global Vehicles to distract Mahindra from pursuing other plans to bring its vehicle to the US market. As earlier stated in Mahindra’s September 24 statement, the contract with Global Vehicles has expired.

In light of this fact, Mahindra will be contacting U.S. dealers to make other arrangements for distribution. Mr. P N Shah, Chief Executive, International division, Automotive & Farm Equipment sector said, “Mahindra’s goal remains to bring its vehicles to the US market, satisfying the desires of US consumers and dealers alike.”

At this juncture, it is still not clear as when Mahindra would actually launch the pick-ups and when exactly would the pick-ups land in customers’ hands in USA. Let’s hope for the best.

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New Engines Launched for the Mercedes Benz S-Class

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Mercedes-Benz-S-class-4-cylinder-diesel-engine Mercedes-Benz is all set to define new efficiency standards in its class with the introduction of four new diesel and petrol engines. The compliment of being the world’s most economical luxury saloon certainly goes to the new S 250 CDI BlueEFFICIENCY. The futuristic turbo-diesel motor is apparently the first four-cylinder motor in S-Class’ nearly 60-year success story.

Churning out 204 bhp, the S 250 CDI BlueEFFICIENCY offers an impressive mileage of 17.5 kmpl and emits just 149 grams per kilometre. Similarly, the new V6 diesel motor in the S 350 BlueTEC churns out 258 bhp while delivering a mileage of 14.7 kmpl. It emits just 177 g of carbon dioxide per kilometre. Thanks to the AdBlue emission control, it is one of the world’s cleanest diesel motors. With 306 bhp delivered by the S 350 BlueEFFICIENCY and 435 bhp delivered by the S 500 BlueEFFICIENCY, the new BlueDIRECT engine generation is now entering the lists in the form of V6 and V8 petrol variants.

“The new highly efficient petrol and diesel engines in the S-Class demonstrate that our customers are also able to drive a luxury class car with a clear conscience,” says Dr. Thomas Weber, the member of the Daimler AG Executive Board responsible for corporate research and development at Mercedes-Benz Cars. “More than ever before, the luxury saloon combines the leadership claim of Mercedes-Benz with respect to efficient drive systems with the classic brand strengths in the realms of design, safety, comfort and effortlessly superior performance”.

All of the new diesel and petrol engines have direct injection. The extremely efficient S-Class, which was until now meant just for the rich and famous, can now be associated with eco-conscious buyers too. The excellent consumption and emission figures are also due to the new ECO start/stop function.

To ensure hallmark S-Class comfort, dynamically controlled engine mounts feature as an innovation in the new S 250 CDI BlueEFFICIENCY. The firmness and damping of these mounts alter based on engine speed, load and car speed, thus putting a stop to the transmission of unwanted vibrations and noise from the engine to the body.

The prices of the newly launched variants are as follows. The S 250 CDI BlueEFFICIENCY costs Euro 71,876, while the S 350 BlueTEC carries a tag of Euro 76,279. The S 350 BlueEFFICIENCY has been priced at Euro 78,718, the S 500 BlueEFFICIENCY at Euro 99,186 and the S 600 at Euro 156,961.

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Volkswagen A-Star and Skoda WagonR ?

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volkswagen_suzuki_badges Have you heard about the Volkswagen A-Star or the Skoda WagonR? No? Neither have we, but soon it may become a common sight. Leading Indian automotive magazine Autocar has reported that Maruti’s A-Star would flaunt a Volkswagen badge and the Wagon-R would come attached with a Skoda badge.

It has been some time now since Volkswagen bought 20% in Suzuki and it is high time it capitalized on it. India would be the first market to see the real collaboration between the two. It was not a long time ago when Maruti Suzuki India enjoyed an almost monopoly like situation in India, although, recent times have been somewhat difficult with MSI. Recent competition from manufacturers like Hyundai has made a severe dent in MSI’s market share.

The German auto major is keen on reaping the benefits of Maruti’s success and we can expect a lot of surprises in the coming years in the form of rebadged vehicles and common engines.

Volkswagen was planning to launch its ‘Up’ small car below the Polo, and now that the project has gone down the drain, VW is left with little choice but to borrow Suzuki’s cars in India. Additionally, VW also wants to take advantage of Maruti’s low cost manufacturing strategies, since its own are very high and practically not feasible to sell its cars at competitive prices as Maruti does in India.

Coming back to our rebadging issue; Autocar says that Maruti, VW and Skoda officials have researched the possibility of using two Suzuki models, A-Star and the Wagon R. Volkswagen is hoping to sell the rebadged cars by 2012, yes, it is hardly 15 months from now on. So we cannot expect the rebadged cars to get any significant changes, as it will not be very feasible to do so within this short notice.

Next step between the two companies seems almost obvious: sharing platforms and engines. While VW would extend a helping hand with its diesel engines, Suzuki might provide VW state of the art K-series engines, which the German engineers are mighty impressed with.

As we all know Volkswagen India’s Chakan plant is underutilized, and can make some room for producing some of the Suzuki cars in case the ‘rebadging’ job starts. That might come as a boon for MSI, as it is facing production capacity constraints that are taking too long to solve. The two car makers are tight-lipped about the model sharing endeavor, the German invasion in the Indian small car market is almost inevitable.

But the big question is: Why bother rebadging great Maruti Suzuki cars with German logos. And who, by the way, would be ready to shell out more for a car which is essentially a Maruti car even if it sports a VW or Skoda logo? Another thing we wonder is: Will MSI stop selling these car once the rebadging is finalized?

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Toyota to Hike Car Prices By Up to Rs 29,000

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The-toyota-logo-is-seen-on-a-car-displayed-at-the-exhibition Maruti did it first, followed by Hyundai. Mahindra & Mahindra announced that it would do it effective October 1, 2010. What are all car makers doing? Any guesses? Well, nothing positively exciting. it’s the same old price hike drama. Wonder who is next? Toyota Kirloskar Motor!

Toyota has just announced that it would raise prices of its new cars by up to Rs 29,000 from October 1. The excuse given is apparently the same one that other car makers have given; to make up for the rising input costs. The increasing prices of raw materials are becoming a burden for most car makers and they are looking to pass on some of it to customers. Toyota also blames foreign exchange fluctuation for its price hike.

A company official said, “The price increase of the Innova, Corolla Altis and Fortuner will be up to 1.50 per cent.” Effective tomorrow, consumers wanting to buy Toyota’s MUV, the Innova, would have to pay an additional amount in the range Rs 10,000-Rs 17,000. Meanwhile, the company’s sedan, the Toyota Corolla Altis, would be available for Rs 10,000-Rs 14,000 more than the current price.

The SUV Toyota Fortuner will see a price hike of around Rs 29,000, the official said, adding that the move had been undertaken to offset rising input costs and also foreign exchange fluctuations. A price hike starting from Rs 10,000 seems to be way more than what other car makers have implemented. Mahindra & Mahindra will be increasing prices in the range of Rs 3,000 to Rs 8,000 depending on the model.

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Maruti Suzuki had raised new car prices in August by up to Rs 7,500 except for the Alto. Hyundai Motor India had increased prices of its new cars earlier this month. Prices of all its models were increased by up to 1.2 per cent.

Meanwhile, we also hear that Tata Motors is thinking of hiking prices of its new cars. Auto makers are forced to take this step to reduce the impact of rising input costs. Tata Motors is mostly thinking of the tyre costs that it is finding difficult to bear.

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Audi India Introduces Petrol Q7 at Rs 59.29 Lakh

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Audi-Q7-3.0-TFSI The festive season in India has begun, and knowing that buying spirit among the Indians runs very high during this season, car makers are coming up with new offerings. After much hyped launch of the facelifted BMW X5, Indian car market has got another luxury SUV. German luxury carmaker Audi today launched a petrol variant of its sports utility vehicle Q7 in India.

“The Audi Q7, the high performance luxury SUV, has been one of the main contributors to our success in the Indian market… We are confident that it will further help us consolidate our leadership position in the luxury space,” Head Michael Perschke said in a statement.

The luxury SUV is priced at Rs 59.29 lakh (ex-showroom, Delhi). Deliveries of the SUV would begin in January 2011, the company said in a statement. The German car maker claims that the new Q7 paired with an 8-Speed will reach a top speed of 100 km per hour in just 6.9 seconds and can attain a top speed of 245 km per hour.

Audi India currently offers the Q7 in two diesel variants: 4.2 litre and 3.0 litre engine options. Audi will not stop there. The company has said that it is also planning to introduce the luxury sedan A7 and would soon start a market study for the same.

The company also mentioned that it would enhance its output by 50 per cent at its Aurangabad facility to about 3,000 units next year. The facility currently assembles luxury sedans A4, A6 and sports utility vehicle Q5 in India and is expecting to produce about 2,000 units this year.

Audi India expects to sell about 2,700 units this year compared to the 1,658 units sold in 2009.

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India’s Blind Love with Fuel-Efficient Cars

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So many limited edition models have been launched in the recent months. Did you know that? Hardly anyone must have noticed the new cars, because they came with very minor changes in the appearance. By now every other car maker must have realized, as Maruti Suzuki conveys in its ads, India is a country obsessed with mileage. In the present scenario where fuel prices are never missing an opportunity to climb higher, car makers have to be extremely careful while introducing their offerings to the Indian roads.

Every drop of fuel does count in India, and the success of every new car in the market is gauged by the definitive fuel efficiency rating. Cars like the Hyundai i10 and Ford Figo are selling like hot cakes, thanks to the phenomenal mileage numbers they offer. The newly launched Volkswagen Polo and Nissan Micra too deliver over 18 kmpl of fuel compared to rivals Maruti Ritz that offers 17.7 kmpl and Tata Indica Xeta that delivers 16.8 kmpl. The fuel-efficient models sell much better than the fuel guzzling ones.

The Maruti Alto is India’s best seller. Why? It is priced low, made for the Indian roads, and last but not the least, the Alto offers 19.7 kmpl. Maruti knew what exactly had to be done to lure more Indian buyers, and it launched the Alto K10; an Alto with new looks and the advanced fuel-efficient K-Series engine. The new Alto K10 offers 20.2 kmpl.

Meanwhile, Hyundai refreshed its i10 by planting a 1.2 litre motor delivering 20.36 kmpl. India’s most fuel-efficient petrol hatch, the Hyundai i10, became even better. The best got better with the launch of the Hyundai Next Gen i10.

“The new engine is extremely frugal in fuel consumption and has been tweaked to maintain a fine-balance of economy, power and performance,” Hyundai Motor’s director (marketing & sales) Arvind Saxena had said.

China, Japan and Australia already have a mileage requirement of over 15 kmpl for every car sold, with Japan and Australia planning to raise the figures to 18.5 kmpl by 2012. It now seems like India too has discovered what needed to know, with the country making it mandatory for new cars to wear fuel efficiency labels.

Better the fuel efficiency, lower will be the cost of operation. So, we now see new cars being loaded with smaller engines that drink lesser petrol or diesel without compromising on power. “We had the fuel tag consumption in mind when we were testing the Polo in India. So we chose one of the most fuel efficient engines from Volkswagen stable that we tweaked to minimize fuel consumption,” a senior executive of Volkswagen said preferring anonymity.

Tata Motor’s has been banking on the success of the Nano that delivers 23.7 kmpl. It looks like people are not even bothered about the fire incidents related to the world’s cheapest car, or, everyone must be thinking ‘it’s gonna be somebody else’s Nano catching fire, not mine’.

Tata Motors has to its credit even the Indigo CS which apparently is India’s most fuel efficient sedan. The Indigo CS delivers fuel economy of 23 kmpl. Its punch line of 23km to a litre of fuel and “most fuel efficient sedan in the country” was enough to grab maximum customer eyeballs as its sedan sales doubled to 34,988 cars in April-August this year from 15,078 cars sold last year.

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Lamborghini Sixth Element Concept Images Leaked

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Lamborghini-Sesto-Elemento-Concept One of the most anticipated cars of recent times, the Lamborghini Concept car has been leaked ahead of its official launch at the Paris Motor Show on Thursday. This car is considered to be the most advanced Lamborghini till date, and is supposedly called Lamborghini Sesto Elemento, which in plain English means Lamborghini Sixth Element. The name has been given because of the excessive use of carbon fiber.

Secondly, there is another picture showing the Lamborghini concept car standing next to the Audi A7, Porsche 911 Speedster and two other vehicles. The new Lamborghini concept car is made entirely of carbon fiber, so it weighs just about 999kg. Add to that a highly powered V10 engine. No wonder then that the car can do a sprint from zero 0 to 100km/h (62mph) in just about 2.5 seconds. The new concept has a top speed of 350km/h (217,5mph).

With a car that has such low weight, we would not expect any kind of hybrid powertrain, but you can never be so sure. Saying anything about the looks of the car based on the pictures would be an injustice. But the Italian company definitely has got everyone listening closely.

The concept car showcases the entire world the future of lightweight Lamborghini supersports cars. If you look closely at the pictures, you would notice that Lamborghini has used a very familiar yet a very distinct look for the concept cars.

All five teasers released by the company over the past two weeks seem to fit the small picture in the corner. All in all, the concept looks superb and follows a strong line.

Lamborghini is expected to release the last and the final teaser images of the car tomorrow ahead of its debut. Until then, stay tunes as we will be bringing more news on the Lamborghini concept car as the reputed motor show begins.

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After Multiple Fire Incidents, Nano’s safety goes up in Smoke

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Tata-Nanp-Fiery-0 When Ratan Tata dreamt of manufacturing an affordable car for fellow Indians, it came true alright. Almost everything about the tiny Nano seems perfect: looks are pleasing, enough space for four adults and most importantly almost totally affordable for most people. But like every too-good-to-be-true offer, there is a catch: flames often find an excuse to wreck the car, and its reputation.

Yet another parked Nano car almost caught a fire in Ahmedabad. This surges the total number of Nanos on fire to seven. Blame it on faulty cabling or anything else, but it is high time Tata Motors took the matters in hand and gave some serious thoughts to the burning issue.

Right from the time the Nano was launched, there have been various cases of the Nano catching fire, and time and again Tata Motors has brushed aside the case as a simple wiring defect. The Indian company recently undertook a Tata Nano Superdrive to establish the car’s reliability.

Ahmedabad-based Rakesh Shah bought his Nano on April 21 this year. And this Monday, he was shocked out his wits when he detected smoke soon after he parked his vehicle. The smoke was accompanied by a strange hum from the rear end where the engine is fitted. His colleagues rushed and poured water to prevent further damage. The incident left Shah shell-shocked. “Despite apprehensions, I trusted the product owing to the goodwill of the company. Now that I have been saved, how can I trust this car? Thankfully, my family wasn’t travelling with me,” he said.

Referring to the Monday’s incident, a company spokesperson said, “The incident in Ahmedabad is being investigated and necessary steps will be taken. The company officials could start the car and drive it to our dealership.” He also added that there was no major issue in the car, and that the preliminary checks found that there was only smoke but no fire.

So far, we have had six cases of Nanos catching fire or reported short-circuit and smoke from various cities: Ahmedabad (September 13, 2009), Lucknow (October 20, 2009), New Delhi (October 22, 2009), Mumbai (March 21, 2010), Anand (April 7, 2010) and New Delhi (Aug 27, 2010). Five cars out of these went up completely in flames, while others reported smoke caused by a short circuit after a drive.

The company spokesperson added, “As for the earlier incidents, we have already said a 20-member internal team and an independent forensic expert undertook a comprehensive investigation related to the cause of fire and the conclusion of the investigation is that the Tata Nano is a safe car.”

The company says that it has decided to allay concerns by inspecting all cars with customers. But we don’t get any hints at an immediate recall. Tata Motors, in May, had asked its dealers to contact owners to fix appointments for inspections.

The spokesperson added, “While these incidents have taken place, there are thousands of Nanos (till the end of August over 62,000 cars have been delivered) running normally with some having been taken by their owners on countrywide trips or to altitudes like Khardungla, the world’s highest motorable road.”

Now, it is left to the Indian car buyers to decide whether they would want to risk their lives for the Tata Nano. And as far as Tata Motors is concerned, it can try to redeem its dream by launching a massive recall of all the Nanos sold till date.

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Maruti Hands Over Hybrid and Electric Cars for Commonwealth Games

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SX4 Hybrid for Commonwealth Games Hyundai supported the 2010 FIFA World Cup by being its official sponsor for ground transportation. Every inch of the Hyundai i10 cars carried the FIFA theme. Every component of the FIFA cars represented one component or the other of the football field. Maruti Suzuki has now got an opportunity to promote its cars. India’s largest selling car maker has just handed over the first lot of its hybrid cars to the Delhi Transport Minister Arvinder Singh Lovely for the Commonwealth Games.

Maruti Suzuki has given two SX4 Hybrid cars and one Eeco Charge car for the Commonwealth Games. We hear that yet another lot of eco-friendly cars will be handed over to the Delhi Government in a short while. The balance vehicles will be handed over to the Commonwealth Games Organising Committee for use by the Officials during the Commonwealth Games.

Maruti is all geared up for the CWG and has prepared a lot of 14 future technology cars as demonstration fleet for use at the games. The car maker has prepared 10 Maruti Suzuki SX4 Hybrid and 4 Maruti Suzuki Eeco Charge cars for the upcoming Commonwealth Games.

Maruti Suzuki India Limited Managing Director and CEO Shinzo Nakanishi said, “I am happy that engineers at Maruti Suzuki have developed these future technology vehicles. This project has helped our engineers to increase their knowledge and enhance their research and design capability. We are grateful to the government for their leadership to promote green technology in automobiles. We are happy to be associated with the Commonwealth Games national initiative, through these vehicles.”

Maruti Suzuki says that the development of the cars for the Commonwealth Games has been taken up as a part of the government’s and Society of Indian Automobile Manufacturers’ (SIAM) coordinated National Hybrid Propulsion Programme (NHPP) and High Energy Density Battery Development Programme. The development of the hybrid and electric cars happens to be an extremely exciting initiative taken on by Maruti Suzuki to boost its R&D competencies and gear itself for greener technologies.

The hybrid system in the Maruti Suzuki SX4 makes use of an electric motor and twin clutch arrangement with advance Lithium-ion battery technology. This concept employs the unification of a 1.2 litre K-series petrol engine and a 67 bhp electric motor which is again mated with a 5-speed automated manual slush box.

The SX4 hybrid also offers better fuel economy. It offers 25 per cent more fuel efficiency than the usual gasoline cars. Meanwhile, the Eeco Charge too is an emission-free, pure electric car. It draws power from a 67 bhp motor and a 24 kWh Lithium-ion battery. Travelling a hundred kilometres on a single charge is no problem, and the Eeco Charge is capable of hitting top speed of 100 km per hour.

Tata Motors and Mercedes-Benz too are expected to offer their cars for the Commonwealth Games. Tata Motors will be supplying 1,600 cars (Indica and Indigo), along with 100 Sumo Grandes and 50 Safaris from its SUV range. Furthermore, it will offer 20 Wingers and 30 trucks for the movement of players and organisers.

We had also heard earlier that German luxury car maker, Mercedes Benz, was expected to hand over around 50 vehicles, including sedans and SUVs for the games. The deal hadn’t been finalised at the time and a senior Mercedes-Benz India executive had said, “The exact quantum of the deal would be determined by the class of vehicles that would be taken by the organisers. A final decision on the deal has not been taken yet.”

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Mitsubishi Launches New BS IV Compliant Montero

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2010-Mitsubishi-Montero-BS4 Japanese car maker Mitsubishi Motors has launched the upgraded Montero in the Indian market. Before we open our big mouth about the pathetic presence of Mitsubishi in India, let’s talk about the new things that the upgraded Montero has got.

The new Montero now sports a new BS IV compliant 3.2L engine, which has been made possible with the addition of a new catalytic converter and swirl control bulb addition. While doing so, the power has gone up by 25.9bhp, taking it right up to a grand total of 144.9bhp. Apart from that, if you really squint your eyes, you can see some minor changes in the front and the rear bumper. But that’s that. The list of new things in the upgraded Montero ends there.

The Mitsubishi Montero has never been the one to set the sales chart soaring, they are so rare indeed that you would spot one on exceptionally exceptional days. To be more specific, Mitsubishi has sold 22 units of the Montero in the past eight months. The Montero SUV comes from the house of Mitsubishi, so we dare not raise a question about the capability of the vehicle, but the commitment of the manufacturer towards the Indian market raises a lot of doubts.

The Montero features the Super Select 4 wheel drive system, 5 speed manual or 5 speed automatic with sports mode transmission. All the 4 wheels have ventilated disc brakes that offer superior braking. Coupled with ABS, EBD and hydraulic booster, the Montero will be a safe handler across all kinds of terrain.

The new Mitsubishi Montero is unlikely to help the sales cause of Mitsubishi or Hindustan Motors for that matter. There are absolutely no marketing strategies involved for the promotion of the SUV. Add to that the sky-high price tag of the SUV. Yes, brace yourself for the shocker; Mitsubishi has priced the new Montero at Rs 38 lakh, ex-showroom, Delhi.

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