Carazoo Indian Car Blog

Car Industry May face Obstacles

noreply@blogger.com (Carazoo) — Thu, 03 Jul 2008 09:51:00 +0000

Trust, there is a rough road ahead, a road with hurdles for the industry. The chairman of Tata Motors, Ratan Tata, has a strong belief that next year will be full of challenges for the Indian car industry. Don’t you also think the same?

The first challenge faced by the industry is the peak height in fuel prices. Car manufacturers are working with head and heart to resolve the issue with innovative technology and advanced engines. This month they have beaten the fuel prices but the increasing steel prices has blocked the road.

Increase in steel prices is definitely going to affect the overall estimated cost of production. None of the car manufacturers will be selling the cars cheaper than the production cost. No idea of how the major car players are planning to overcome this obstacle.

It is also expected that the next year will come with an unprecedented increase in material costs in steel, tyres, rubber, plastic and the like. Far apart, how can we forget the increasing rate of interest?

Couple of increases and hikes is definitely going to accompany the forthcoming year. So, be aware and prepare.

Import of Used Cars Opposed

noreply@blogger.com (Carazoo) — Thu, 03 Jul 2008 07:56:00 +0000

Why has the Society of Indian Automobile Manufacturers (SIAM) opposed the Government’s plan of importing used cars to India?

Nobody is sure of the reason but some resources state that the SIAM has a doubt that trading of cars will greatly hamper the growing car industry in India. Importing can be a great risk to the Indian industry.

SIAM even has a doubt that the used cars imported in the country are among those that are thrown out. These are simply a waste for them and that’s the reason they trade out these cars. Should our government encourage such kind of trading? Would we actually benefit something out of this? No.

Then why the Government is supporting import of used cars?

Fuel Shortage has Engulfed India

noreply@blogger.com (Carazoo) — Thu, 03 Jul 2008 07:37:00 +0000

Where has all the fuel gone? Nobody knows the answer to this question but the fact remains that major cities like Delhi and Bangalore are running short of fuel. The condition in Bangalore and rest of Karnataka is expected to worsen.

The scenario in Bangalore is expected to deteriorate in next few days. From the past two-three days, the most running fuel stations in the city are being shut down much before the closing time because of fuel shortage. Many customers are even forced to buy premium fuel, some are compelled to buy branded and costly fuel like Speed and some are left without fuel. Those who are left without fuel are travelling in public transport because they could not fill their car fuel tanks before fuel ran out of stock.

The petro-dealers are saying that there is almost 30 percent of fuel shortage but Oil Companies refute the fuel shortage. Whom should we believe? Is fuel being reserved for special categories? Are petro-dealers unwilling to give normal petrol? Or it is being traded for high income? After all the fuel prices are at the peak.

Think deeply and you’ll definitely get the answer to, “Where’s the Fuel?”

Nano will get components from Kinetic

noreply@blogger.com (Carazoo) — Thu, 03 Jul 2008 07:17:00 +0000

Kinetic Engineering is all set to start supplying component for Tata Motors small car project within the next two months. Good for the wonder car, the Nano, it will no more depend on other suppliers as the Kinetic Engineering is setting up assembly plant within the Singur plant and also at the Ahmednagar factory. And with the in house supply of the components the production work will speed up.

It is worth mentioning that with this, the Kinetic engineering will have a good comeback. Since last two years, the company has been undergoing an extensive restructuring and now it has diverted its two wheeler business towards auto components supply. Well, both the enterprise will be equally benefitted.

Maini Sees Power Shift for Cars

noreply@blogger.com (Carazoo) — Wed, 02 Jul 2008 10:44:00 +0000

Maini, the creator of Reva sees a complete power shift for cars very soon. Yes, that’s true. With the increasing fuel prices, it is expected that almost all the car manufacturers will soon shift their car model from gasoline engines to electric engines. Many believe that electric cars will takeover fuel powered cars in the next few years.

Since centuries there are issues attached on the oil crisis. In 1970s there was a severe oil crisis but unfortunately India was lacking technology, so nothing could be done. Later, 1980s and 1990s, good technology popped up in to the Indian market but fortunately sufficient oil was there. Far apart, even the environment was cleaner during those times, so nobody give a thought over replacing oil.

But now, the environment is also becoming more and more polluted with the increasing number of cars on Indian roads. Today we have good technologies and innovation that can effectively be used to shift gasoline powered engines to electric motors.

If this really happens, then it will be a great transformation of the face of car industry.

Car Industry Beats Fuel Price Hikes

noreply@blogger.com (Carazoo) — Wed, 02 Jul 2008 10:04:00 +0000

Wow! Car industry is constantly racing to win the battle. It wins!!

After the increase in fuel prices and cost of production, most of the car manufacturers were distressed with the belief that the car sale will go down. But they are smiling today because a complete union of leading car manufacturers is finally successful in beating the fuel price hikes and increasing their car sales.

Eventually, car industry is recovering with Hyundai and Maruti reporting jumps in their car sales during June. Is it really true? Even after such a drastic increase in fuel prices, are people still buying the gasoline cars?

Just don’t know. No guesses. But one thing is sure that the sale will definitely fall down when a good number of cost-effective hybrid cars or electric cars would come into picture. It’s a long way to go, till then reap the benefits and enjoy the gain.

Racing Partners Becomes Business Partners

noreply@blogger.com (Carazoo) — Wed, 02 Jul 2008 09:09:00 +0000

Amtek Auto and Frankfurt-based KSM Castings are believed to be competitors of auto supplies. Good to know that two competitors are now planning to join hands and get the largest acquisition in the automotive forging space.

Everyone in the auto industry is in dilemma thinking how these two global private equity players unite. But that’s true that they are planning to do so with a keen desire of consolidating their business through means of new strategies and policies.

Amtek has almost 40% share in the Western market and still desires to increase the share percentage. The company is sure that joining the big name KSM Castings will definitely help to change the complete scenario and increase the share in the market.

The proposed acquisition is still far away till then will the players continue the race or quit the race.

Why Should Hindustan Motors Stay Behind?

noreply@blogger.com (Carazoo) — Wed, 02 Jul 2008 08:47:00 +0000

With so many car manufacturers launching new car models, Hindustan Motors, maker of the Iconic Ambassador cars in India, also thought, why should they stay behind?

With a keen desire to keep its position in the industry, Hindustan Motors is also planning to launch a passenger car in India. The car is expected to launch in October in union with Mitsubishi Motors.

The company has witnessed a heavy setback after falling sale’s slop of the top surviving car, the Ambassador. This car has lived for centuries but now is restricted to certain cities like Kolkata. To overcome the slow down, the company has developed a completely new platform for producing cars with innovative features. Ambassador was a sturdy and powerful car. Just wondering, will Hindustan Motors be able to gain the same response and profit with the proposed passenger car.

Maruti Wipes Nano competition

noreply@blogger.com (Carazoo) — Tue, 01 Jul 2008 11:19:00 +0000

As Tata Motors is gearing up to roll out the Nano, the largest car manufacturer, Maruti Suzuki is gaining confidence that the Nano will fail to compete any of its car models.

If think wisely, it is much true because this 1 lakh car is of no value to people who are buying Santro, Indica, Indigo and other cars falling in a higher price category. Even people who can afford to buy a car like Alto that falls in the 2 lakh category will also rarely go for the Nano. Even the people belonging to lower middle class who cannot even buy a two-wheeler, how will they afford to spend Rs 1 lakh?

As it is, 1 lakh price tag is expected to be raised by some percentage during the final launch. Just wonder who will actually buy Tata Nano?

It’s is creating a new segment. The only percentage of people going for the Nano attributes to the category that can afford a two wheeler and are aiming to own a car. If given a second thought, only class would go for the Nano. This is because in cities like Bangalore and Mumbai, the roads are jammed with cars and bikes. In such cases it is really easy and more convenient to drive a bike rather than spending hours in a car and wait for the traffic to clear down.

What do you think? Will Maruti win its own confidence? Or the Nano will kill the confidence of Maruti?

Tata Motors Overrun the Estimated Cost

noreply@blogger.com (Carazoo) — Tue, 01 Jul 2008 10:40:00 +0000

With the increasing steel prices and fuel prices, all car manufacturers are increasing the price tag of their respective cars. Tata Motors expected a production cost of Rs.17 billion for the Nano but unfortunately this estimated cost was overrun by Rs 3 billion.

Don’t you worry, you are in safe hands. Inspite of the increased input costs, the company has planned to absorb some portion of the hike and has promised to sell the car with minimal increase in price tag.

The increased cost of production is also due to water logging at the Singur plant site during last year's monsoon and protests from a large group of peasants. Even then, the company is working at a breakneck speed to launch the Nano on the announced date. The company has also spent some amount in raising the level of land.

So many expenses, pulls our thought to the actual launch price tag. Will the company still be able to sell the car at the proposed price tag?

Passat’s Cousin is ready to Launch in India

noreply@blogger.com (Carazoo) — Tue, 01 Jul 2008 10:15:00 +0000

Get Set Go! Just wait on the end line, Jetta is ready to reach you. Volkswagen is all set to launch its new sedan VW Jetta in the month of August. Many are waiting for the launch of this car. For selling the car, the company is signing more contracts with car dealers and distributors. The car is likely to cost between Rs 13-16 lakh, this makes the Jetta much affordable than others in its class. Though the car display the Germanic looks, the styling is overall common.

So many cars are rolling out that it is becoming even tougher and tedious to select the best car. Considering the growth of the Indian market, various car manufacturers including Volkswagen are racing to get the maximum share percent in the industry.

Who is going to win the race? Will Jetta bring some shares to VW? A big question mark to what’s ahead.

Hyundai Plan to Roll out Hybrids in India

noreply@blogger.com (Carazoo) — Tue, 01 Jul 2008 08:48:00 +0000

Go Green with Hyundai! Hyundai is leading the industry today with its Indian made hatchbacks like Santro, Getz and i10. And now the company has high plans to drive hybrids in India.

Hyundai had launched the first hybrid in October 2004 for Korea. The hybrid version of Getz withstood all the storms and has created a benchmark for Hyundai. Now the company has plans to roll out hybrid versions of Avante and Sonata. Avante hybrid with propane powered engine is expected to launch next year and Sontata hybrid with the standard gasoline engine the following year. Hybrid technologies are also planned for small cars in India.

Do you think Hyundai will be get good consumers response for the greener versions? We doubt because India is still lacking in advancements that support green technology. But other end of the mind still pushes to go ahead, after all one has to make a start.

Palio will get CNG version

noreply@blogger.com (Carazoo) — Mon, 30 Jun 2008 13:43:00 +0000

When all car manufacturers are taking move towards making the environment greener, why should Fiat lack behind? The company is coming up with the CNG version of Palio model by 2009.

Both gas and diesel variant of the Palio hatchback are already present in the market. Increase fuel and raw material price is giving the industry a shock and to fight this crisis car manufacturers are taking different prop to maintain their market share. Many car makers like General Motors, Maruti, Mercedes-Benz and Hyundai has turned towards CNG version. Well, it’s a delightful news for all Fiat lovers as they can own the car without spending much on fuel.

Hybrid Cars needs Government’s Attention

noreply@blogger.com (Carazoo) — Mon, 30 Jun 2008 10:12:00 +0000

Global warning is at its peak and India is still far away to combat with the situation. Major air pollution is created by automobile exhausts which can be minimized by the use of green cars. Hybrid cars are good alternative for diesel or petrol vehicle. But these cars are seeking government’s attention.

The customs duty and the tax imposed on them are really high. It is the high time for the government to take necessary steps to encourage auto makers for the local production of hybrid cars.

India has only one hybrid car ‘Civic Hybrid’ recently launched by Honda Motors. The number will definitely increase if the government drives some policy in favour of these cars. It can cut down the customs duty on such cars which will encourage the car manufacturer to roll out these cars or permit imports at a lower duty for those auto companies who assure to manufacture hybrid cars for a specified period of time.

Eaton India Expands to Electrical Technology

noreply@blogger.com (Carazoo) — Mon, 30 Jun 2008 08:59:00 +0000

Everyone is moving towards green technology and so is Eaton India. Eaton India is a Pune-based subsidiary of the US-based automotive company, Eaton Corporation. The subsidiary is rolling fast to expand its operation in producing electrical vehicles.

The company has already produced many hybrid engines that are running on North American roads and now the diversification is towards Indian roads. The simple technology of electrical starters is used for running light vehicles.

The company is mainly into producing transmission components, only 14% is dedicated to its automotive sector. Bringing pride to the country, Eaton is now willing to explore the market and produce qualitative components for both IT sector and automotive sector. UPS with 94% power efficiency is planned for the IT sector in India and automated transmissions and digital prototypes of engines for the automotive sector.

In short, Eaton is planning to bring success to two major and leading industries of the country.

Magna Expanding in India

noreply@blogger.com (Carazoo) — Fri, 27 Jun 2008 10:11:00 +0000

Good to know that major car makers and auto suppliers are entering the Indian market and making the industry more competitive and winning.

Magna, North America's largest auto parts supplier, is now planning to open a new factory in India. This plan is implemented with a desire of boosting car sales in Asia. India being the cheapest resource for production and manufacturing is targeted by the company. The factory is expected to start next year in Pune and will produce powertrain parts for Indian car industry, cutting its dependence on North America.

Do you think the expansion plan of Magna will be successful? We definitely think so because so much efforts and investment can never go waste. This factory will definitely bring a win-win situation for the Indian car industry.

Power Chair Car for the Disabled

noreply@blogger.com (Carazoo) — Fri, 27 Jun 2008 09:33:00 +0000

A big hand of applause for those students who have developed a power chair car for the disabled. Everyone in the car industry is racing to produce a car with a blend of luxury, comfort and fuel economy. But have any car maker thought about those who don’t have legs to drive a car or are handicapped? No.

None of the car manufacturers thought about them but some engineering students from Durgapur has created a car for handicapped. They together have designed and developed a power chair car for those who can’t manage to start a car, press clutch or apply brake. Though a car can move only short distances within the campus, airports and hospitals, it is a big achievement for the developers and a big source of joy for the disabled who are otherwise dependent on others to drag their wheel chair.

We feel proud to know that we have so many intelligent and winning students in our country.

Ford Fiesta will be Costly

noreply@blogger.com (Carazoo) — Fri, 27 Jun 2008 08:13:00 +0000

Wake up folks! If you like the appeal, comfort and performance of Ford Fiesta, then go and grab one before the price lets you fall.

The rising input cost with the hike in steel prices has pushed Ford India to review the price tag of it’s recently launched car, the Ford Fiesta. The current price of the Fiesta is Rs 6.57 lakh for the petrol variant and Rs 7.44 lakh for the diesel.

Even the small car expected to launch in 2010 is proposed at a price higher than 1 lakh. Wondering how much price would the company raise for the Fiesta after raising the price of its SUV, Ford Endeavour by Rs 30,000.

Keep your fingers cross and wish that the increased price tag is affordable.

Old Conventional Cabs are in the verge of extinction

noreply@blogger.com (Carazoo) — Fri, 27 Jun 2008 07:43:00 +0000

The journey of the traditional black and yellow taxis is now coming to an end. The era is over and today people are switching over from normal taxis to high-end cabs.

People are now more willing to have comfort and luxury wherever they go, including the cabs they travel. Some of the cabs providers even have a tie-up with corporates and multinationals that requires high-end cabs for their employees.

Even the tourists in India don’t prefer normal taxis. They often ask for cab with an air condition, music system, power windows and other luxury amenities. All these features are not integrated in the tradition taxis and this is one of the main reasons why the blacks and yellows are moving off the Indian roads.

Not only the car features play a role but also the driver of the cab. All the companies into the cab business are now recruiting educated chauffeurs with good personality and enhanced communication skill.

Car Manufacturers Encountered by Input Costs

noreply@blogger.com (Carazoo) — Thu, 26 Jun 2008 10:26:00 +0000

How much do you think is the input costs of manufacturing a passenger car? Yes, the input costs of manufacturing a car has increased tremendously followed by the increase in steel and fuel prices. This rising costs is hurting the core of all car manufacturers.

Steel is believed to account 60% of a car’s weight and apart from that plastic, aluminum are also used in the manufacturing process. Followed to the increasing steel prices, plastic, aluminum and rubber are also facing inflationary pressures. All together increases the total input costs of car production and eventually becomes a leading cause of worry, dismay and distress for the manufacturers.

You’ll be glad to know that even under heavy pressures these manufacturers are trying to absorb the maximum increase and pass on affordable cost price to car consumers.

New variants added to Mercedes’s E-Class

noreply@blogger.com (Carazoo) — Thu, 26 Jun 2008 09:54:00 +0000

In India, Mercedes-Benz itself means ‘luxury’. No cars from Mercedes are devoid of luxuries and comfort.

Luxury car segment in India is growing upwards with more and more cars entering the segment. Mercedes-Benz has now introduced two new variants of E-Class, E220 CDI and E230, to add to the status and attractiveness of the E-Class luxury cars introduced in 1995. E220 CDI is loaded with a 2.2L four- cylinder diesel engine and a price tag of Rs 38.99 lakh, whereas E230 gets 2.5L V6 petrol engine and a price tag of Rs 41.14 lakh.

The company is expecting more growth potential with the introduction of these variants. Rest all is up to us how we deal with these cars and the loaded luxuries.

Delhi gets its Electric Car

noreply@blogger.com (Carazoo) — Thu, 26 Jun 2008 08:48:00 +0000

Join for a ride with Reva. Delhities will now have the opportunity to drive the wonderful, cute little Reva car. There are many people in India who wear a green conscience and attracted to the electric car model manufactured by Reva. Unfortunately, this model was launched only in Bangalore but now the cards of fortune have opened. Maini Revai has launched the advanced version of the Reva for Delhi roads.

Seven years ago when Reva was launched in Bangalore, the company was not sure of its performance and success. That time Reva was not able to make further launches because of the absence of subsidy but now Delhi is putting forward hands to support Reva in all aspects including subsidy, VAT exemption, refund of road tax, low registration charges and much more. This has eventually reduced the price tag of Reva from Rs 4 lakh to Rs 2.99 lakh in Delhi.

Such a low price tag will definitely make a stronger move towards Revai.

Toyota’s New Cars coming soon

noreply@blogger.com (Carazoo) — Thu, 26 Jun 2008 08:21:00 +0000

Six new cars are coming to lure the Indian consumers from Toyota’s portfolio. The expected models will belong to different car segments including compact sedan, hatchback, diesel and SUV. Toyota is willing to have its car battle with other car models in their respective segments. The first launch among the six models would be a compact sedan powered by a 1.3L engine has a desire to compete with Tata Indigo CS and Maruti Suzuki’s Swift Dzire. Other models would be hatchbacks and sedans in competition with Suzuki’s Swift and Hyundai’s Getz.

The next generation of Corolla is expected to roll in by September this year and diesel corolla in 2010. The company also has plans to drive Fortuner SUV, with a price tag of Rs 16 lakhs, to the Indian market in 2009.

So many cars! It would be really difficult to judge the best car in this portfolio.

Volvo Drives to India with RTI

noreply@blogger.com (Carazoo) — Wed, 25 Jun 2008 14:52:00 +0000

Wake up folks, its time for us to drive! There are many people who love driving but have a very poor road sense. Volvo Car India has come up with an innovative technology, Road Traffic Information (RTI), for helping such people to enjoy a hassle free drive.

The company has produced a navigation system, which helps in travelling to a predetermined destination through unfamiliar roads and traffic environments. The navigation information is stored in the hard disk of the car that further communicates with the satellite system and helps the driver to find the right path to the defined destination.

The company sells this RTI at an additional cost of Rs 1.5 lakh. It not only helps people with poor road sense but also those who often get lost on roads while driving. Buying a RTI at an additional cost is a good investment to save time, fuel and money.

Free Fuel with Santro and i10

noreply@blogger.com (Carazoo) — Wed, 25 Jun 2008 11:38:00 +0000

Go Hyundai Go Fuel!To increase the sales of cars, Hyundai Motor has come up with offers that provide fuel vouchers for every purchase of Hyundai cars, Santro and i10.

It’s good that the company gave a thought over the increasing fuel prices and made it easier for the consumers to drive a car home. This is a good deal for both the consumers and the sellers. For consumers, it is easy to cope up with the increasing price hike and for sellers it’s a good way to boost sales.

The company officials have calculated the fuel used for driving 50km. With an assumption that a car is driven approximately a distance of 50km every day, the company gifts a fuel voucher of Rs 2,700, just enough for six months.

The offer is valid between June 20 and June 30. So, rush and grab the offer, it’s a good deal!