Auto stocks down despite upbeat mood
It has been a bad beginning for the Auto Industry in stock market this fiscal. First it was hike in interest rates, followed by stringent measures adopted by financial institutions and now increases in prices of raw materials. The downward performance this fiscal follows the impressive performance in 2006 - 2007. The higher interest rates, hard financial options have resulted in negative sales figures of automobile companies resulting in poor performance of the auto stocks.
But, financial observers see downward trend in car sales figures only as a time phrase which could recover by the second quarter. The Indian auto Industry has been in the global news this week with the Tata Motors clinching the Jaguar and Land Rover deal from Ford Motor. But the stock markets have not been favorable for the Tata Motors yet. Soon after the announcement of the deal on Thursday Tata Motors shares plunged by 6.39 per cent at Rs 636 dragging the BSE Auto Index down 1.79 per cent. Tata Motors share had been on the downtrend ever since Ford announced that Tata Motors was the preferred bidder for its luxury brands in January.
Tata Motors on Friday opened at Rs 654 and closed at 645.85 a loss of Rs 9.50. Similarly, Maruti Suzuki which is heavily affected by increase in raw materials opened at 834.75 and closed at 829.25 a loss of Rs 9.05.
Labels: Auto market competition, auto share market in India, Car sales, JLR deal, Maruti, raw materials, scenario in India auto industry, Tata Motor
Ford suffered loss after selling JLR brands
Is any one know that how much
Ford spent initially to buy
luxury car brands-Jaguar and Land Rover?
Ford bought these two high end brands in 1989 at a whooping $10 billion. Ford has invested such a big amount in
Jaguar and Land Rover but failed to reap profits.
Ford suffered a huge loss by selling its luxury brands to Tata for merely $2.3 billion. As far as global players are concerned, they are firmly committed to make their vehicle more appealing and luxurious than their rivals. It is still not known as to why Ford failed to make these brands profitable. Big wigs of world’s auto industry are now thinking of revamping their brands to avoid selling of their brands to any other company after Ford’s failure in Jaguar brands.
Labels: Economical buy, Expansion in Indian auto industry, Ford, JLR deal, luxury cars, Tata Motor
Fiat will compete with BMW
Fiat is re-launching
Fiat 500 in India soon. It seems that Fiat is planning to give a tough competition to
BMW’s Mini. When Fiat will launch its 500 it is expected to take on the costliest
hatchback of India BMW Mini. Fiat priced at Rs 13 lakh onwards and BMW Mini priced at Rs 20 lakh. Both these cars carry the retro design, carrying with it the legacy of European history.
It will be interesting to see if these European cars carry their magic to India. These car manufacturers will most probably fight for a thin line of consumer segment, which have an option to buy luxury cars or SUV or 500 or Mini. Maybe the consumer will eventually decide on who is the boss of hatch back cars in India.
Labels: Car competition, Fiat, Fiat 500, Hatchbacks, Indian SUV, new car launch
Tata Motors hopes better rating
After getting downgraded by rating agencies,
Tata Motors is now hopping for a better rating after announcement of a new refinancing plan. But this may take a few months altogether. The refinance plan is expected as Tata Motors clinched a major acquisition deal with
Ford to own the
Jaguar and Land Rover. Tata Motors have paid 2.3 billion dollars for the deal. Eventually, the deal will be financed through a mixture of debt and equity.
Last week, Crisil, a rating agency, downgraded ratings on the auto major's cash credit facilities from 'AA+' to 'AA-/stable'. But the agency has removed Tata Motors from 'Rating Watch with Negative Implications' list. The auto major has taken a USD 3 billion bridge loan to take over the two iconic brands and meet the working capital requirements with a combination of debt, liquidation of existing investments. The company also plans to raise a fresh equity of USD 1 billion.
Labels: Auto market competition, Ford, Jaguar and Land Rover, Tata Motors
Maruti will not cut the price of Maruti 800 to beat Nano
Many who are expecting reduction in the price of Maruti-800 after Tata Nano’ appearance at Auto expo, will be disappoint to know the fact Maruti will not reduce any price of maruti-800 in future to compete with one lakh car Tata nano as Maruti does not want to compete with nano and is not even thinking to manufacture any new small car on the lines of ultra cheap car, Tata nano.
Before Tata nano’s appearance, Maruti-800 was considered as one of the cheapest small car available in the country for many middle class families. When Tata motors have confirmed its production of one lakh car, many had thought that maruti would cut the price of maruti-800 on par with one lakh car to compete with nano. But now that suspense is over as Maruti openly clarified its intention that it will not reduce or cut down the price of Maruti-800 to compete with nano. Such honesty statement by maruti will really create conducive atmosphere in auto market leaving no place for unhealthy competition.
Labels: Auto market competition, Car sales, Expansion in business, Maruti 800, Nano, One Lakh Car, small cars
DZire prices may go up
All those small car owners who thought that they could now get a DZire sedan by paying just Rs 75,000 more than Swift hatch back’s cost, take note of this. Maruti Suzuki has decided to increase the introductory price for DZire. Rise in input costs of aluminum and copper are forcing Maruti to increase the price of Dzire. The prices are likely to be revised in the next few weeks.
So all those who want the new DZire will have to rush to Maruti outlets soon and book your cars, otherwise you will end up paying more than you thought. What with the cost of interest, rising cost of accessory and rising fuel costs. Anything more will certainly burn your pockets.
Labels: Car sales, hike in car's price, Maruti, small cars, Swift Dzire
Lack of incentive will affect exporting of passenger cars
India’s dream of becoming a global small car hub may not become reality. Car manufacturers, who are till recently beaming over the reduction of excise duty on small cars, are now considering limiting their exports to maintain profitability as the government has not given incentive to encourage the exporting of passenger cars. Lack of incentive from the government is expected to affect the growth of export business of many car manufacturers.
Sale of small cars, sedan and luxury cars is increasing in domestic market but lack of incentive for export and continues depreciation of the dollar, is bound to affect the sale of many cars in overseas market. Discouraged by the government’s disinterest in encouraging export business, largest exporter of passenger cars from India like Hyundai motor, Maruti Suzuki are seriously considering to downscale their original target of exporting 50 productions from India. Government should join hands with car companies to make India a global hub for small cars by giving some impetus to small cars export business.
Labels: car incentive, Exporting cars, Hyundai, incentive for exporting, luxury cars, Maruti Suzuki, small cars
Mitsubishi plans new models every six months
There was a time when introduction of a new model took years in
India. Going down the memory lane, we could find that
Ambassador actually rolled out only one model till late 90’s and Fiat had only two models for
India for over twenty years. When
Maruti came in the early 80’s it revolutionized car industry, but new models were not forthcoming. But now the time seems to be changing so fast that if you blink you could miss a model.
Going a step ahead and breaking all records, one of the most successful sedan manufacturers, Mitsubishi has now decided to launch one new model in India every six months. They are even planning to introduce the sophisticated SUV Outlander in few months, which will be manufactured in India. It seems launching of new small cars, luxury cars, SUVs and sedans within span of short period may soon become a trend among car soon become car manufacturers.
Labels: Ambassador, Auto market competition, Indian small cars security, luxury cars, Maruti, new car launch
Another jewel in Tata’s crown
Tata Motors has taken the entire world by storm when it unveiled world’s cheapest car Nano at auto expo and earned the reputation of being mass car producer. By acquiring Ford’s luxury and premium brand Jaguar and Land Rover, Tata Motors has also proved its commitment towards producing high end class cars. It added one more jewel in the Tata’s crown.
Tata has taken very decisive and bold step by acquiring JLR brand from global player Ford. Tata has become a world-class car maker by clinching this deal for $2.3 billion. With this deal, Tata Motors has set the entire auto world on fire and also proved global players wrong who thought Tata can only make cheapest car than high end model as it will now produce cars ranging from Rs 1 lakh to 1 crore.
Labels: achievement, Auto market competition, Nano, One Lakh Car, Tata Motors, Ultra cheap cars
Car sales gear up in small cities
It seems that B and C cities are emerging as profitable markets for car companies in the last year. The rising income and easy accessibility to loans have been largely responsible for driving car sales upwards in these cities. As metros have been are soon going to become a stagnant market, it makes sense that car manufacturers look for cities other than metros. Most of these car buyers in these cities are first time car owners and obviously go for entry level cars.
It is believed that Hyundai accounts 40 per cent of its sales including small cars and luxury cars are in cities other than the metros and six big cities in India. And the most popular models have been Santro and i10.
Labels: Car competition, Car sales, Expansion in business, Hyundai, luxury cars, New i10 model, small cars
DZire has replaced Esteem
Maruti Suzuki India has always been on the forefront to beat competition by providing quality products. Launching its entry level sedan Swift DZire, maruti wanted to rock sedan segment in India. Maruti is very quick to study the minds of its customers and work accordingly as it has suddenly discontinued Maruti Esteem when people felt it was not up to their taste. Now, Maurti has launched DZire that replaced Esteem.
Maruti already has achieved a grand success in small car segment by releasing popular brands like Maruti 800 and Maruti Swift. The success of cute, stylish and powerful Dzire which has generated a lot of excitement and curiosity among the car lovers, will be very crucial for Maruti to cement its position in sedan segment.
Labels: Car competition, Maruti 800, Maruti Swift, New Car, Sedans, small cars, Swift Dzire
Maruti looks for new market, finds villages
Maruti Suzuki is fast expanding its business to the rural areas than ever before. The car major is now looking at more income segments apart from the traditional businessman and urban salary groups. Last year the company has targeted government employees including teachers and also shop floor workers. The campaign received overwhelming responses and was a great success as maruti sold a whopping number of 23,000 cars including small cars and sedans under the scheme, last year.
This year the company is targeting buyers in rural areas. The company has devised the panchayat scheme to increase the sale of small cars at grass root level. Under the scheme, Maruti's small cars will be available at discounted prices. Panchayat members, employers of regional rural banks, tahshildars and other government employees in rural areas are entitled to avail of this scheme.
Let’s hope the other car manufacturers like Honda, Tata Motors, Hyundai may take cue from Maruti to help rural people to own cars.
Labels: Auto market competition, Car sales, Maruti Suzuki, new schemes, samll cars
Nano may become further cheaper in India
Tata Nano may further become cheaper when it hit the Indian roads in next few months. The appearance of Tata Nano, world’s cheapest car at
auto expo has stirred up Indian auto industry and stunned many
car manufacturers who thought manufacturing of 1 lakh car was just impossible. It’s all history now. Tata Motor is again waiting to give one more surprise by further reducing the price of Nano.
If reports are to be believed, Tata has formed a team to find out ways to cut down the cost of its Rs 1 lakh car. If the price of nano come down further, buyers of this car will be doubled than present one as all most all families would own it by bidding good-bye to their two-wheeler. It’s time to cheer-up for small car buyers!
Labels: Auto market competition, Car sales, One Lakh Car, Prices, Small Car, tata nano
Indica is cheaper for Ugadi
Some car manufacturers make festivals more colourful than the rest. The Indian car giant Tata Motors is coming up with some interesting offers for this Ugadi. It has cut down the prices of its flagship models Indica and Indigo. The new Indica V2 Xeta will now cost you Rs 39,000 less and the price of Indigo CS has been brought down to Rs 3.60 lakh from the current Rs 4.5 lakh.
It would mean a lot of savings for the buyers. So guys! Who are waiting for the new Indigo CS can do so now. Or it will be never. The tradition of offering discounts and special offers during festival season will really encourage people to buy new cars and make the festivals a memorable event in their lives.
Labels: Car sales, Customer offer, festival discounts, Indigo CS, Tata, Tata Indica
Prices of cars may go up at any time
Many car manufacturers are generously offering good discounts and freebies to encourage people to buy their cars. They also reduced price of small cars after excise duty cut in union budget. But it is not sure how long it will be continued as the rise in the price of steels and other raw materials is forcing car manufacturers to withdraw offers and increase the price of cars including luxury cars and small cars.
The generosity and enthuse of car manufacturers would not last for a long time and it would always be a short lived. They can now withdraw all offers and increase the car’s price at any time depending on marketing conditions. People, who have kept their plans of buying new cars on hold in anticipation of further reduction in their prices, could loose more money if they wait for another few months. It’s right time to start buying their favorite car. Wait and watch may prove too costly as prices could be increased at any moment.
Labels: Auto market competition, Car sales, Customer offer, discounts, Prices
Green car contest
All the green car entrepreneurs take note of this. This may be your biggest chance to win a prize of 10 million dollar prize amount and also get your green car manufactured across the world.
This is all about a competition organized by the Progressive Automotive X Prize Foundation. It was unveiled by the New York mayor at the New York International Auto Show this month. The final competition will be held in September 2009 where the newly developed green cars will be tested across the country in US. Now, the tough part is that the car has to achieve at least 100 miles per gallon. It will add one more feather in India’s cap, if any Indian achieves this feat. The entries are still open for contestants.
Labels: Auto market competition, Auto Show, Environment friendly car, green cars
Audi’s new A4 at the price of locally assembled car
Audi has always been synonymous with luxury and comfort. It would never give any chance to its customers to blame it for quality as it keeps releasing new version of its
luxury cars very frequently to attract more customers. Now, Audi is releasing the new A4 luxury
sedan in July with certain modification and additional features. The A4 will be sold at the price of locally assembled car in India.
Though the new A4 will be imported initially, it will sport the price tag of a locally assembled car. The new version of A4 was already launched in Europe a few months ago and became a grand success there. Audi India will assemble the A4 at its plant at Shndra and expects to sell 500 units of the new A4 in the first year.
Labels: A4, Audi, Luxury car segment, Luxury sedan, new car launch
Khattar is a phoenix
It’s quite common that most top ranking officials engage themselves in writing books or memoirs after retirement. But Jagadish Khattar is exception to this. Even after his retirement, his enthuse and spirit to do something new in the auto industry never died away but is still fresh. Khattar, a former bureaucrat who has become an entrepreneur now wants to launch his own chain of multi-brand car service station.
The service stations starting from 2009 will offer service to all brands of cars under one roof. If you own several brands, you need not go or search any specific service station for each car. With this service station, all your vehicles get all the servicing required under one roof.
It is amazing to see him setting up an enterprise after retiring at the age of 65 from
