Union Budget 2011 highlights – Cheers for Auto Industry

We bring some 2011 Union Budget highlights on the Automobile sector.

Fist and foremost, the Union budget did bring in cheers for auto buyers as the Government has not changed or hiked the excise duties, which comes as a relief to the auto sector. This means, while the excise duty on the small cars will remain at 10 per cent, large cars and SUVs will continue to attract 22 per cent of excise duty.

The government seems to be considering going green all the way and in an eco-friendly step, the finance minister proposed the setting up of a national mission on hybrid vehicles and electric vehicle (EV) as well as special incentives for hybrids if made in India. Yes, this decision though was taken last year itself, it will become a reality this year.

The Indian Government still taking its green yatra further proposed full exemption from basic customs duty and a concessional rate of Central Excise Duty would be extended to batteries imported by Electric Vehicle manufacturers. The excise duty on LEDs is reduced to 5 per cent, which should encourage automakers to adopt this technology and concessional excise duty of 10 per cent to vehicles based on fuel cell technology.

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New BS IV version of Tata Indica soon as India’s most fuel efficient car

the new Tata-Indica-DICOR Tata Motors on Saturday announced that the Tata Indica will soon become India’s most fuel efficient car with an all new, BS4 compliant, CR4 diesel engine. The company states that the car would have a host of exciting features, which is yet not known to us.

The car’s new engine packs in 32 per cent increase in power, 65 per cent increase in torque along with a 46 per cent improvement on fuel efficiency. It revs up to 70 bhp power @ 4000 RPM and delivers 140 Nm torque at 1800-3000 RPM. The car is now far more peppy, light, responsive and smart.

Besides, improved drivability, the new Tata Indica will offer fresh exterior and interior looks and class defining features.

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Maruti Suzuki A-Star to sport VW badge

maruti-a-star Maruti Suzuki A-Star, which has been in the lime light for quite some time now, will be the centre of attraction for some more time as Volkswagen AG seems to be very interested in the car and wants to market the car under the Volkswagen logo in unexplored markets to gain a foothold of those markets.

We all know that Maruti A-Star is exported to the European markets under the Alto monicker and is also market in the European markets by Nissan as Pixo. Now, Volkswagen has trained its eyes on the A-Star as the car is quite popular in the European countries. And the fact that the car meets stringent crash safety tests, emission norms and environment regulations translates that VW can sell the car in any market it wants.

Volkswagen, wants to capture the bulk of customers from emerging markets such as Asian and Indian markets with the A-STAR. We understand that Volkswagen might alter the design of the A-Star a little bit to make it look like a proper Volkswagen while retaining the same engine which now does its duty in the Maruti A-Star.

If Volkswagen tries to market the re-badged A-Star in India, it is hard to say that the Indians will bite the bullet and buy it. No doubt, the A-Star is a fuel-efficient and easy to maintain car with sharp handling and value for money, but passing the A-Star as Volkswagen car in India would probably be a disaster for Volkswagen. It is better for the Germans to create a new brand for the A-Star and market it in other Asian markets apart from India.

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Indian Women Love Audi

new-Audi-TT-1 It is a known fact that car makers in the Indian automobile space are fighting for market shares and supremacy. But there’s one car maker which has conquered the hearts of the women folk in India. Yes, Audi India has landed on the rare distinction of being the most loved car brand in India beating other car makers vying for the space with a considerable margin.

A leading Indian daily recently disclosed the above-mentioned piece of news. About 65 per cent of the women folk have already chosen Audi TT as their rides in the past.

“What is surprising is that a good number of sports cars — R8 and Audi TT (the latter with over 60-70 bookings) – are being purchased by women in India. That shows women too love to drive luxury cars, particularly sporty ones,” Michael Perschke, Audi India Head, was quoted as saying by the aforementioned source. And of course, Audi sees the news as a way to promise greater sales in the future, hinting that 2011 is expected to bring increased revenues for the German brand. Audi is the third in the top foreign car brands in India, after Mercedes Benz and BMW.

“The Indian automotive business is showing some signs of correction due to various factors, including higher interest rates. But this does not deter us, as we feel that we will be able to replicate last year’s record growth this year too as we launch some more models in to the country,” Mr. Perschke added in a statement.

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Maruti Suzuki Diesel SX4 lauched at Rs. 7.74 lakh

Maruti-Suzuki-SX4-Grill-Logo We all had been waiting for the moment. Yes, the Diesel avatar of the SX4 is out. Maruti Suzuki India has launched the diesel version of the SX4 in three variants with a price tag of Rs 7.74 lakh – 8.62 lakh (ex-showroom, Delhi). As we had mentioned earlier, the Maruti Suzuki SX4 will be available in Vdi, Zdi and ZDi (with leather upholstery). The SX4 Diesel is cleaner and more fuel efficient than all comparable cars in its class.

The Diesel SX4 features a 1.3-liter engine that delivers 90 bhp of peak power at 4,000rpm and a maximum torque of 200Nm at 1,750rpm, which is comparable to higher capacity engines in competing cars. To the customer this implies excellent response and acceleration. The high torque at lower rpm levels makes SX4 Diesel highly suited for city driving conditions as well. At the same time, the Super Turbo engine, with a linear acceleration curve, provides a consistent and smooth drive.

The eye-popping feature of the car is its fuel efficiency which is also an answer for the frequently asked question in India – 21.5 kmpl (certified as per CMVR rules). Now the car itself being a Maruti would give a run to any other car maker’s money with a efficiency like that. Folks at Maruti Suzuki claim that the mileage of the diesel SX4 is 8 per cent more than the comparable cars. Now what makes the diesel SX4 most fuel-efficient in its class? The answer is Variable Geometry Turbocharger delivers higher efficiency and reduced emissions, besides instant power. Depending on requirement, the vanes in the turbocharger change their angle to provide optimum air flow. This optimizes efficiency across the engine rpm range.

The high pressure fuel injection system delivers fuel at upto 1600bars and the high pressure pump has an in-built flow control mechanism to improve efficiency, while adding power. The high pressure pump, fitted on the engine, is equipped with an in-built ‘flow control mechanism’, further improving fuel utilisation. The Super Turbo DDiS engine uses lower viscosity engine oil (SAE 5W40), which enhances lubrication for smoother running and is controlled through a remapped ECU which continuously communicates between the engine and the user.

The diesel SX4 is the first car to be OBD-2 compliant. OBD refers to On Board Diagnostics. OBD-2 informs the customer of any malfunction in the emission control system which may be leading to undue increase in exhaust emissions. Maruti Suzuki SX4 is the first popular sedan to sport a Petrol, Diesel and CNG variant.

At the launch, Mr. Shinzo Nakanishi, Managing Director & CEO, Maruti Suzuki said, “SX4 with a Diesel engine is one of the most attractive cars in the upper A3 segment. With the changed urban landscape, suburbs have become an integral part of cities and people travel long distances. The new age diesel technology as offered by the SX4 Super Turbo Diesel is high on power and performance while being low on emissions. SX4 Diesel offers an economical and punchier ride.” Expressing confidence in the SX4 Diesel he added, “We expect the SX4 diesel to repeat the success of our other diesel offerings and strengthen the Maruti Suzuki portfolio”.

He has every reason to say that as in past, Maruti Suzuki vehicles mounted with diesel engines have been ry=unaway successes. In the last four years, Maruti Suzuki has mounted diesel engines on Swift, Dzire and Ritz.

sx4diesel_04

Maruti Suzuki has addressed noise issues common with diesel engines this time around for the Diesel SX4. Adequate noise suppressants improve the NVH performance and make the cabin silent and comforting. The suspension and brakes of the SX4 Diesel Super Turbo have been suitably modified to account for the heavier engine and the changed weight distribution of the car. The engine has been calibrated for driving pleasure and offers excellent acceleration of 0-100 km in just 14.5 seconds.

The Super Turbo DDiS engine will be manufactured at Suzuki Powertrain India Limited, the Manesar-based joint venture of Suzuki Motor Corporation, Japan and Maruti Suzuki India Limited. This joint venture manufactures diesel engines for Swift, DZire & Ritz and has an annual capacity of 300,000 units.

Lets wait until next month to see how the Diesel SX4 takes the sales graph at Maruti Suzuki India HQ to a new level.

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Ford India to bring its All-new, Global Award-winning Fiesta in India in 2011

New Ford Fiesta logo Yes, it is official. The new Ford Fiesta will be landing in India anytime in 2011 as we had reported earlier. Ford India, in its press release has gone ga-ga over the new Ford Fiesta.

It states that the all new, award-winning Fiesta is coming to India this year. The good news is not just the car, which will make its presence felt in India this year, but it also marks the first in a series of eight new global products that Ford plans to introduce in India by the middle of this decade.

Announcing the new Fiesta’s eagerly awaited arrival, Michael Boneham, president and managing director, Ford India said, “We are delighted the new Fiesta is coming to India. It will provide Indian customers a premium sedan that reflects their personality in terms of style, technology and performance, and will add a new level of diversity and dynamism to our showrooms.”

The new Ford Fiesta will be built at Ford’s state-of-the-art manufacturing plant in Chennai and the Indian consumers can look forward to a hi-end sedan that will provide sporty design, great ride, dynamic performance and array of smart technologies.

Ford-Fiesta-Sedan

“The new Fiesta will augment the current range of Fiesta vehicles in India, which remain an integral part of our product line-up,” Boneham added. “Our stepped-up launch plan builds on the incredible consumer response to the Ford Figo, which in 12 months has transformed our presence in India and attracted many new customers to the Ford brand.”

The new, global Fiesta, which is available in more than 100 markets throughout the world, has sold more than one million units worldwide.

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Small Towns Become Big Deals for Luxury Car Makers

There was a time when people in small towns had to make do with the not-so-fancy cars as luxury car makers were too busy satisfying the needs of the well-heeled in the metros. But not anymore! Ever since they realized the potential, the luxury carmakers are now seen running towards these towns with all they have got. Luxury car dealers, who have already made it big in Ahmedabad, are spreading out to districts like Surat, Rajkot among others.

In the meantime, dealers are also upgrading their Ahmedabad dealerships to sell pre-owned luxury cars. Each showroom expansion investment would come up to Rs 25-30 crore, so you can expect a total investment of up to Rs 100 crore by the three major premium car dealers in the city, Parsoli’s BMW, Benchmark Cars’ Mercedes and Audi Ahmedabad.

Ahmedabad based BMW car dealer Parsoli Motors opened its new sales and service showroom at Surat earlier this month, and is also in the process of assessing the feasibility of setting up showrooms in other towns too.

“We plan to come up with one showroom each in the north, south, east and west corners of the state. Surat is very vibrant now, and is a booming market for luxury cars. So, we started off with Surat, other showrooms can come in at places like Rajkot among others”, said Talha Sareshwala, managing director of Parsoli Motors. He also mentioned that the scope for luxury cars is surprisingly huge in places like Vapi, Bharuch, Rajkot, Jamnagar and Bhavnagar in Gujarat.

You may find it surprising that around 90-95 premium cars sell per month in the city, and BMW has a market share of around 40 per cent. Sareshwala also plans to come up with a BMW pre-owned cars showroom here in the city. “We are planning to have a BMW Premium Selection showroom here in the city. It will come up within this year”, Sareshwala said. BMW Ahmedabad is experiencing a 40-45 per cent annual growth rate. The dealership has sold over 300 BMWs in 2010.

Mercedes Benz India has already opened its pre-owned cars service, ‘Proven Exclusivity Program’ in the city recently. Mercedes Benz has been in the Indian market for more than 10 years now and has around 30,000 cars plying on the road. It has planned to get cars that are not more than six years old, refurbish them and sell through their outlets.

Audi is planning similar things too. Audi, which recently launched its premium sedan A8L in the Indian market, is also looking at expanding its network in Surat, along with opening a pre-owned cars service here in Ahmedabad.

Samir Mistry, managing director, of Audi Ahmedabad said, “We are coming up with a new showroom at Surat by end of April, while we are also upgrading our current showroom in Ahmedabad to a 20,000 square feet one by February 2012. We plan to start a pre-owned cars service in Ahmedabad soon.” Audi sold 285 cars in Ahmedabad in 2010, up 60 per cent from 2009.

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Honda introduces Accord facelift in India @ 19.6 lakh

New-Honda-Accord launched Honda Siel Cars India Ltd., leading manufacturer of premium cars in India, on Monday, launched the new Honda Accord with striking new looks and new features to give a breathtaking driving experience.

The new Accord has more style, more comfort and more sophistication than ever before. A bold and aggressive look and striking interiors will make it the most commanding premium sedan on Indian roads.

On the exterior, the new Chrome accentuated front grille, rear chrome garnish and new front bumper adds to the charm of the Accord. The Sunroof now comes as standard across the Accord range, which gives the car an impressive panoramic feeling making it look brighter and larger.

Addition of Steering mounted cruise control system helps one to cruise at the desired speed to ensure comfort and convenience for the customer with one-touch operation and ORVM with turn indicators makes it more stylish and enhances the looks of the car. The inside wooden panel makes it look even more exquisite. The Accord now comes with an advanced improved audio system for improved usability & readability and Jackknife key have also been added to the Accord.

Honda Accord is equipped with Vehicle Stability Assist (VSA) to assist the driver in maintaining control during cornering, acceleration and sudden maneuvers by applying braking to the right or left hand wheels as necessary and modulating the engine torque output as required.

Speaking on the occasion, Mr. Takashi Nagai, President & CEO, Honda Siel Cars India Ltd., said “Honda Accord has been one of the most successful premium sedans in its category with over 25,000 units sold since its launch in India setting new standards in exclusivity, comfort and safety. Our belief in constantly upgrading our products based on customer feedback prompted this launch of an upgraded version of the Accord with unique styling in combination with luxurious features.”

The 8th generation Honda Accord was introduced in May 2008. The Honda Accord is available in 2.4L and 3.5L V6 engine.

Engine wise, the 2.4L Accord comes with 5-speed Manual Transmission and 5-speed Automatic transmission with Paddle shift, to give the exhilarating experience of F-1 racing. The Automatic Transmission has Shift Holding System, which avoids unnecessary gear shifting on winding roads and helps in hassle free drive.

The 3.5L V6 engine features an advanced Variable Cylinder Management (VCM) system that switches between six-, four-, and three-cylinder combustion depending on the driving conditions and thereby delivering maximum power of 275 PS during six cylinder operation and impressive fuel economy in VCM mode while cruising. The new alloy wheels of the Accord V6 enhance the looks of the car even more.

The Honda Accord is equipped with the best of safety technologies, with intelligent six airbags, including side curtain air bags, Advanced Compatibility Engineering (ACE) body and G-Force Control Technology (G-CON) for enhanced safety of the vehicle occupants during a collision. The extensive use of high-tensile steel improves torsional rigidity and helps in achieving major weight savings. Honda Accord V6 3.5L and Honda Accord 2.4L also have a provision for Bluetooth connectivity and customers can buy it as a Honda Genuine Accessory.

The new facelifted Honda Accord has been priced at Rs. 19.60 lakh for Accord 2.4 MT, Rs. 20.36 lakh for Accord 2.4 AT and Rs. 25.41 lakh for Accord 3.5 V6 (ex-showroom Delhi).

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Maruti Suzuki SX4 diesel launch date postponed 22 Feb

maruti-SX-4-diesel Maruti Suzuki, which had earlier contemplated to launch the SX4 diesel sedan in India on the Feb 17th, has postponed the dates to Feb 22nd. The company has not offered any concrete reasons for this move. However, the launch venue has been zeroed in on Delhi.

Maruti Suzuki, has however, dispatched a few demo SX4 diesel cars to some of its dealers across teh country. As we had earlier reported, the diesel version of the SX4 is powered by Fiat’s 1.3-Liter multijet diesel engine coupled with the VGT ( Variable Geometry Turbocharger) enough to pump out 90 bhp.

Stick to these pages to know more on the diesel SX4 launch and many more …

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Volkswagen to launch new Passat on March 29

2011-VW-Passat-India 1 Esteemed Indian motoring magazine, Autocar India, reports that Volkswagen India will be launching its next gen Passat Sedan on March 29th.

The new Volkswagen Passat, which will be in India next month is the seventh generation Passat and is based very much on the same underpinnings of the outgoing car. Though it takes some bits and pieces of the outgoing car, most of the new Passat’s body panels are new. The New VW Passat is four mm longer than the old car and stands at 4769 mm, but the height and the width of the car remains the same.

On the styling front, the New Volkswagen Passat has been done with a new front grille, headlight treatment and new tail lamps and the car itself has been decked up with more chrome. The interior of the car is nothing more to write about save the better-built interiors, which is very upmarket.

The car might be offered in 2.0 TDI diesel and 1.8 TSI petrol options. These engines are doing their duties in a series of cars from the Volkswagen group sold in India. The 2.0 TDI is slated to pump out 170bhp, 32 bhp more than the current engine and the car will be mated to manual or DSG gearboxes.

Expect loads of new features to be loaded in the Indian version of the car as in the European markets. Lets wait and watch how the folks at Volkswagen India would price the car in the days to come.

2011-VW-Passat-India-2
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