Mazda plans to enter Indian car market

mazda_logo If the news that is doing its round in the blogosphere were to be believed, we would certainly have another Japanese car maker entering India in a few years from now. Yes, we are speaking of Mazda Motor Corporation, the fifth largest Japanese car maker.

In a recent press conference held in Tokyo, Mazda CEO Mr. Takashi Yamanouchi stated that Mazda had plans to expand its business in emerging countries such as India, Brazil, and Russia. He was also quoted saying Mazda wanted to become a car maker with a scale of about 2 million vehicles and raise its presence globally. Mazda already has set a target of increasing its global sales to 1.7 million cars by March 2016. It should be noted that Mazda already has sold 1.19 million cars in 2009 alone.

Mr, Yamanouchi plans to sell roughly 3,00,000 cars in emerging countries like India, Brazil, and Russia as earlier mentioned in the blog. But Mazda itself is facing fierce competition and had to survive by relying on its new series of fuel-efficient engines and transmissions to be used in 80% of Mazda cars by 2015/16.

Now what needs to be seen is whether Mazda will make it into the emerging markets of new markets with Ford’s aid or would it go to the battlefield independently. It must be noted that Ford Motor Corporation now owns 3.5% stake in Mazda as opposed to 11 % stake Ford held in Mazda just before November 2010. This move doesn’t mean Ford-Mazda break up because both the companies has stated that they will continue to cooperate in areas such as joint ventures and technology exchange. It is a known fact that Mazda and Ford cars share platforms as well as joint production plants.

Now, going by not so intricate matters that we see around, Ford India already is an established auto major to reckon in India. The success rate of Ford got a boost with the recent success of Figo and now plans to export the Figo to other emerging markets. Th icing on the cake comes in the form of Ford wanting to make India its global hub. Looking at all these matters, it would be wise for Mazda to induct its products in India through Ford. But this has to be seen if Mazda would actually do it.

Lets just hope that Mazda’s Indian plans become a reality soon so that we can also watch those gorgeous Mazda Miatas zooming around in India.

About Mazda

Mazda Motor Corporation was founded in 1920 as Toyo Kogyo Corporation Limited., the name ‘Mazda’ was formally adopted in 1984 only but even before that, all the vehicles had Mazda badge. According to the company’s website, ‘Mazda’ was derived from Ahura Mazda, god of knowledge, wisdom, intelligence and harmony worshiped by early civilizations. Also, Mazda refers to the company’s founder Jujiro Matsuda.

During the 1960s, Mazda developed the Wankel rotary engine as a way of differentiating themselves from other American auto companies. Mazda gained strength with its rotary engines which had the combination of good power and light weight when compared to piston-engines sold by competitors that required heavier V6 or V8 engines to produce the same power. Mazda started exporting its cars to America and established Mazda Canada and Mazda North American Operations. Mazda became a successful brand by 1973 when oil crisis hit US market.

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American buyers sought fuel efficient cars and hence, Mazda focused on selling small cars with piston engines. Mazda refocused on rotary engines and produced the RX-7 in 1978 and continues to sell the RX-8 today based on rotary engines. Mazda also developed a light weight roadster MX-5 or Miata and introduced it to the world in 1989 that has now become a modern classic.

Ford bought 7% stake in Mazda in 1979 after the Japanese car maker was hit badly by financial crisis. Ford increased its stake by 20% in the 1980s and both the companies dished out cars based on each others’ platforms. Ford Courier was designed based on Mazda B-Series pick-up truck. Mazda Familia platform was used by Ford to make Escort and Laser. Mazda Capella transformed as Ford Telstar and Probe. In 2002, Ford increased its Mazda stakes by another 5%. The Flat Rock assembly plant in Michigan is the joint venture plant owned by Ford-Mazda.

Currently in the US market, Mazda sells Mazda 2, Mazda 3 / Mazdaspeed3, Mazda 5, Mazda 6, Mazda B-Series Truck, Mazda CX-7, Mazda CX-9, Mazda MX-5 Miata, Mazda RX-8 and Mazda Tribute.

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BMW 520d starts at Rs 36 lakh

BMW 520d BMW India has just launched another model of its 5-Series, the 520d is here in India with a price tag of Rs 36,90,000 (ex-showroom, Delhi). Yes, you read it right, almost 3 lakh less when compared to the next in line diesel 525d variant. With a killer price tag like this BMW hopes to take the competition in the luxury car category to the next level. The 520d is the 5th engine variant to be inducted in the F10 5-series lineup for India.

The BMW 520d is equipped with 1995cc 4-cylinder diesel engine, which pumps out 184bhp @4,000rpm mated to an 8-speed automatic transmission. Make no mistake; it is the very same engine that powers the BMW 3-Series. Talk about innovative marketing tactics.

Of course, there are some changes in the standard equipment for the new 520d (read cost-cutting) such as single MP3 CD audio unit with USB and aux-in as well as Bluetooth interface as standard in the place of in-dash 6-CD changer and the auto tranny minus the paddle shift mechanism unlike the other 5-Series. The 520d has been shod with 255/55 R17 tyres.

Well, BMW India has retained some features such as sunroof etc on the 520d. With this product out in the Indian market, BMW India will woo a new breed of customers for the product and has created a new segment altogether (think Corporate Edition).

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Proton to enter India with three variants

proton-logo We have hit on a scoop of news recently. The Malaysian auto giant, Proton, is all set to enter India. Finally. Yep finally, we say, as the auto major has had its radar on the Indian auto market since quite some time. But all its efforts just went in vain.

But now we have some strong source that Proton will be entering India on its own and indulge in contract manufacturing for its small car Savvy, Sedan Saga and MUV Exora.

Proton might use the Argentum Motors facility in Surajpur, Noida initially to manufacture its cars here in India.

Now that we have spoken of the big auto major entering the competitive Indian auto market, Proton is currently re-engineering its models to take on the harsh Indian road conditions. We also hear that Proton is already in talks with original equipment manufacturers (OEMs) to source diesel engines for its cars. This is quite understandable given the diesel craziness that is in charge here.

Sources also say that former Hyundai India president may lead Proton’s India operation.

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Toyota Etios Gets 3,077 Bookings in the First Week of its Launch

Toyota-etios- The recently launched Toyota Etios sedan has been creating quite a stir in the Indian automobile market. The response to the entry-level sedan from the Japanese car maker has been overwhelming and you would not hear Toyota complain even a little bit.

Just within a week from its launch, the Etios sedan has registered bookings for more than 3,077 units. The car, launched at the amazingly competitive prices, has already become one of the most sought after cars among the Indian car buyers. Toyota is charging an amount of just Rs 50,000 for the booking of the car. The delivery of the Etios would begin from January 2011.

A company official has revealed that Toyota would launch the diesel variant of the Etios sedan in India by December 2011. The Japanese company, which is present in India through a joint venture with Kirloskar Group, also plans to increase the localization level of the Etios to 90 per cent by 2012.

“Right now we are studying on that… Hopefully, by next December (it will be launched),” Toyota Kirloskar Motor Director (Marketing) and Executive Managing Coordinator Koji Nagata said. “Currently, it is 70 per cent… When we commence our production at our engine plant it will be around 90 per cent…but that will be after 2012,” he said after unveiling the entry-level sedan Etios in Tamil Nadu market.

Currently Toyota is importing the engine and gear transmission for the Etios range of models from its parent company in Tokyo, he said. Earlier this year, Toyota had announced its plans to start the production of engines in the third quarter of 2012 that would help increase the localisation content of the Etios range of models. Toyota has invested Rs 3,200 crore to set up its second manufacturing facility at Bidadi near Bangalore mainly to produce Etios range, including its hatchback Etios Liva.

The Etios sedan features a 1.5L DOHC engine that generates 89bhp along with a maximum torque of 132 Nm. The Toyota Etios boasts of giving an unmatched mileage of 17.6 km/l. The car has been launched in five variants and offer excellent convenience and safety features.

The Etios sedan is competing with some of the very established and popular cars in the segment such as Maruti Swift Dzire, Tata Indigo CS and Manza, Ford Fiesta and recently launched Volkswagen Vento.

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Nissan Launches Electric Vehicle Leaf in Japan

nissan-leaf-launchNissan has formally launched its zero emissions Leaf vehicle in the Japanese market. The Nissan Leaf is an electric car that boasts of having a range 200 kms (124 miles) and is being touted as the first of its type to be sold on a grand scale. With the Leaf, Nissan and Renault are trying to build their brand image in the electric car market, much like the Prius hybrid worked for Toyota.

Electric Vehicle are expected to come across as a blessed alternative to internal combustion engine cars, as governments seek to cut the world’s dependency on fossil fuels. But the short range offered by the EVs and their high price have restricted the growth of the industry so far.

Nissan has said that its five-seater Leaf was rated with a range of 200 km (124 miles) on a full charge under Japanese test standards, although Californian authorities have rated it at 160 km (100 miles) and another U.S. agency at just 73 miles (around 130 kms). The Nissan Leaf will be sold in the US with a price tag of $25,000 after a federal tax credit and in Europe about 30,000 euros before subsidies.

“With today’s launch … we mark the start of a new era for the global auto industry as well as for a sustainable, low-carbon society,” Nissan Chief Operating Officer Toshiyuki Shiga, standing next to a sky-blue Leaf at Nissan’s headquarters in the port city of Yokohama, told.

The company would start the delivery of the car in Japan and select U.S. states this month, followed by the first European markets in January. Nissan has already got a maximum initial order for 6,000 Leafs in Japan and 20,000 units in the United States, set to reach customers over the next year or so.

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BMW to Launch Fuel Efficient 5 Series in India Next Week

We all know about the three German rivals, Audi, BMW and Mercedes Benz, and the tricks they try to outdo the others in the Indian market. Now, BMW has been enjoying a fairly bright and sunny weather in the market this year and looks forward to further expand its Chennai facility as it is projecting healthy sales next year also. The Indian automobile market which experiencing an all time high has made many global car makers to re-think their market strategy.

2010_bmw_5_series According to a popular Indian business daily, BMW is expecting the buoyancy in sales to continue next year with more vehicle launches beginning next week. According to the report, BMW is hoping to sell around 6,000 units this year, as compared to the 3,600 units sold last year. As of October 2010, BMW India has sold 4,741 vehicles.

Dr. Andreas Schaaf, President of BMW India, said “We have made quick strides in India in a short time. For BMW, India has become a strategic market delivering many things much ahead of what we had thought initially. Therefore, the company will consider taking up expansion of its manufacturing facility at Chennai as it begins to produce a few more models next year. India is in such a position China was a few years ago. But going forward, this is a market no one can ignore to invest and grow. I believe BMW has made the right moves since 2007, both in terms of marketing and manufacturing, which is paying off. All expectations from India need to be reviewed as they no longer hold good. In fact, most companies are forced to revise their expectations upwards given the growth. Though the luxury car market is relatively small at 15,000 cars an year, it will get big very soon.’’

BMW India currently has 18 dealers across the country and it plans to have four more by mid 2011. The German luxury car maker is planning to have its facilities in all major Indian cities. BMW is also planning to launch a fuel efficient car in the diesel 5 Series in India next week. But here is the exciting part: BMW is also going to launch Sports Utility Vehicle X1, which will be priced in the Rs 20-25 lakh range and will challenge some of the existing players.

The new 5 Series sedan, priced at Rs 36.9 lakh, is expect to give a fuel mileage of 18.5 km/litre without compromising on power, torque and driveability.

“BMW is betting big on X1, as a volume driver. BMW never offered cars at this price before. This will attract a lot of buyers to the BMW fold. In fact, we are set to launch few more models next year, which will sustain the excitement,’ Schaaf said, added report.

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Tata Nano Sales Go Down the Drain in November

Tata_Nano When Tata Motors announced its plans to launch the Rs one-lakh Nano in the Indian market, it was speculated that the car would become an instant hit with the consumers. Tata Nano, aimed at prospective two-wheeler owners wanting to upgrade to a car, did enhance the carmaker’s global reputation.

After the opening of the Sanand plant, Tata Motors expected the sales of the Nano to happen in a fast-forward mode, but that did not happen. In fact, Tata Motors reported sales of just 509 units in November 2010, a dramatic fall from 9,000 units in sold in July 2010. This comes as quite a surprise because most carmakers have reported sales growth in the month of November, even Mercedes Benz India, which is one of the costliest carmakers in the world, has sold more than 500 units in the Indian market.

The surprising bit is Tata Motors’ second-quarter profit has surged up more than 100-fold as a global economic recovery revitalised demand for luxury sedans and sports utility vehicles. Tata Motors had planned a production of 20,000 units a month by December 2010. But considering the falling sales of the car, manufacturing so many units of the car may not be so necessary.

The reasons of the falling sales of the Tata Nano could be many, but the one that has totally marred the reputation of the car are the multiple reports of it catching fire. Despite many instances of the car catching fire, Tata Motors’ apathy towards the incidents added fuel to the fire, and people started to have concerns about the safety of the car. According to people familiar with the company’s management, sales of the Nano dipped after the initial euphoria because the car was not reaching the target audience.

Production constraints played another spoilsport. Earlier the production constraints had reduced the number of sales but after the opening of the Sanand plant in Gujarat, the Nano has failed to attract prospective buyers. Even the announcement that in several states, the car was available off-the-shelf, failed to connect with the audience. Let’s watch out for Nano’s performance in the upcoming months.

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Mahindra Revives the Logan with a New CNG Variant

mahindra-renault-logan The Mahindra Renault Logan has always been known for being a no-nonsense and spacious car. But somewhere, it failed to make a connection with the Indian consumers. The Mahindra-Renault joint venture came to an end at a time when the Logan’s sales were at an all time low and the timing could not have been worse; nevertheless, it opened a fresh new chapter for the slogging sales of the car.

After gaining rights for selling the Logan in India, the Indian carmaker immediately shuffled its marketing strategies and the results, though not extraordinary but commendable, showed in the sales of the car. In the month of October 2010, Mahindra sold 1000 units of the Logan. And now the super practical Mahindra Logan gets another shot in the arm as Mahindra & Mahindra has launched a CNG kit for the Mahindra Logan 1.4.

“With issues such as climate change and carbon footprint taking centre stage globally, eco-friendly transportation has become the need of the hour and hence the launch of a company approved CNG kit. It also reduces the running cost effectively. The Logan has witnessed a spurt in sales in the recent months, reflecting customer satisfaction with the product, especially the space offered & fuel efficiency,” said Arun Malhotra, Senior Vice President, Sales & Customer Care, Automotive Sector, Mahindra & Mahindra Ltd.

The CNG kit for the Mahindra Logan is designed by Italian gas injection kit maker Landi Renzo. The CNG kitted Logan will come at an additional premium of Rs 56,000. Now, we all know that CNG or LPG cause extra heat, which can actually be taken care of by hardened valve seats and a few more modifications to the engine. But Mahindra seems to have taken the short cut with the CNG kit, which might affect the longevity of the engine. But the 2 year, 50,000 km warranty that Mahindra offers with the Logan CNG might just be enough to silence the doubts you might have.

The new CNG fitted Logan is targeted at the cabbie market and chances are high that it will work out perfectly fine for the company. The CNG Mahindra Logan would give a mileage of 15-20 kms per kg of CNG and would cost the customer only Rs. 1.62-2.26 per km compared to Rs. 3.93 – 6.11/km on petrol.

Mahindra seems to have taken this step in preparation for the competition it might face from the Toyota Etios, which undoubtedly, would come with aftermarket LPG kits.

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November Brings Chartbuster Sales for Auto Companies

The excellent sales spell continues to favour the Indian automobile industry in the month of November. Except Tata Motors, all the leading auto makers have posted double digit growth in November, although they could not manage to break the record levels of the previous month. While Tata Motors had to be satisfied with one percent jump over the same month last year, others like Maruti Suzuki, Hyundai and Mahindra & Mahindra posted double digit increase in sales.

MSI crossed the one lakh units sales mark for the second consecutive month by selling 1,02,503 vehicles in the domestic market in November, up 34.2 per cent from the year ago period. In November 2010, the country’s largest car maker Maruti Suzuki had sold 76,359 units.

Though on a small scale, Ford has seen about three-fold increase in sales at 7,504, thanks to the overwhelming response to its small car Figo.

“The sales numbers released by auto companies today are in line with our expectations, although they were below record levels seen in October,” Angel Broking Auto Analyst Vaishali Jajoo said.

Tata Motors witnessed 85 per cent dip in sales of its people’s car Nano to 509 units.”There were some supply chain issues in case of Nano which could be one of the reasons for dip in the sales of the car,” she added. Tata Motors total passenger and commercial vehicle sales in the domestic market stood at 50,419 units in November, which is a one per cent jump compared to sale of 50,114 units in the same month last year.

The country’s second largest carmaker Hyundai Motor India also registered a good sales jump. Hyundai posted a 12 per cent jump in domestic sales for the month at 31,540 units as compared to 28,162 units in November 2009.

“Spurred by the festive season demand in November, HMIL continued to maintain steady growth in the domestic market although we were constrained because of the maintenance shutdown of both our plants,” HMIL Director (Marketing and Sales) Arvind Saxena said in a statement.

General Motors registered a sales upgrade of 17.67 per cent to 8,376 units in November this year compared to 7,118 units in the same month last year. The credit of this goes to Beat, Spark and Cruze, for obvious reasons.

Mahindra & Mahindra reported 18 per cent jump in total sales in November at 26,666 units.

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Toyota Etios sedan launched

DSC_0354 copy The much-hyped Toyota Etios sedan was finally launched on first of December in Bangalore. The first thing that strikes a chord with every car buyer is the very aggressive price at which the car was launched. The Toyota Etios sedan starts at Rs 4.96 Lakh for the base J variant, Rs 5.46 Lakh on the G, Rs 5.96 Lakh on the G optional, Rs 6.41 Lakh on the V and Rs 6.86 Lakh for the top end VX variant (Ex-showroom Delhi).

The Etios sedan will boast of a 1.5-litre, 16-valve DOHC engine that will pump out 89 bhp of raw power and 132 NM of torque. Currently, a 5-speed manual tranny is pushed into service of the car but Toyota could well bring in an automatic transmission soon. The car is well built to accommodate five Indian adults comfortably. The striking feature of the car is that the car is the lightest in its class at 930 kgs and has the biggest boot in its class (595 liters) as well. And for the frequently popped out question of “Average Kitna Deta Hai ?”, the answer is 17.6 kmpl (ARAI tested). How cool can that be for the cost conscious Indian.

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The people at Toyota can heave a sigh of relief as none of the direct competitors of the Etios i.e, Maruti Suzuki Swift Dzire, Mahindra Renault Logan or Tata Indigo Manza can boast of a 1.5-litre engine. But yes, Toyota should still consider a diesel option for its Etios to take the market by storm.

If these above mentioned facts would not interest you, you have some other special features in the offering such as under body protection to prevent damage to fuel and brake lines, Anti-corrosion steel sheets at areas prone to rusting and stone hits and chipping resistant paint on rocker mould and fender. There is a class-first ‘Clean air filter’ which is standard across all variants for purified air in the cabin, a spacious 13 L cooled glove box and seven one litre bottle holders to name a few.

The safety of the car is un-compromised and matches the European safety standards. Some of the various safety features present in the car are Energy absorbing body shell, Driver and passenger air bags and ABS with EBD.

Toyota now with the launch of the Etios, enters the mass volume segment as it aims to sell 70,000 units of Etios in India per annum. The dealer network would also be drastically increased to 150 by the end of 2010 to cater to the mass market.

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Touted as a World First, India First and My First, the Etios sedan exclusively made for developing economies like India, was launched by none other than Akio Toyoda, President of Toyota Motor Corporation and scion of the Toyota’s founding family. Also present at the launch ceremony were Mr. Akira Okabe (senior Managing Director, TMC), Mr. Soichiro Okudaira (Managing Officer, TMC), Mr. Osamu Nagata (Managing Officer, TMC), Mr. Yoshinori Noritake (Chief-Engineer- Etios, TMC), Mr. Vikram Kirloskar (Vice Chairman, TKM),Mr. Hiroshi Nakagawa(Managing Director, TKM) and Mr. Sandeep Singh (Deputy Managing Director-Marketing , TKM).

Speaking at the gala launch at Bangalore Palace, Akio Toyoda, President TMC said, “The all-new Etios reflects our determination to serve an even-broader range of customers here with genuine Toyota quality. We spent five years developing the Etios.” He also added, “We at Toyota sat that “the road makes the car”. And the Etios is the product of real-world testing on roads throughout India.”

Toyota further stated, “We have driven the Etios across more than two hundred thousand kilometers of Indian roads from Kolkata in the east to Mumbai in the west, from Himalayan foothills in the north to the southern tip of the Indian peninsula… That extensive testing has enabled us to provide the Etios with a distinctive flavour of driving”.

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Speaking on the sales and service of Toyota Kirloskar Motors, Mr. Akio said, “And our sales and service team will accompany the high quality of the Etios with conscientious and dedicated customer support at dealerships throughout India.”

The newly christened Etios Liva hatchback also was showcased along with the Etios in today’s function. You can book your own Etios with a booking amount of Rs 50,000. Toyota has brought out 6 new colours, Symphony Silver, Harmony Beige, Serene Bluish Silver, Vermilion Red, Celestial Black and White that could go well with the Indian summer.

Toyota Etios Launch copy

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