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Thursday, 17 July 2008

The Indian car industry is caught in the middle of high inflation and interest rates, soaring fuel prices, and a steep decline in car demand and sales. The steep deviation has caught the industry by surprise. The Bajaj-Renault-Nissan alliance now plans to roll out a portfolio of electric cars with a keen desire to boost the sluggish car demand.

The alliance desires to go beyond the ‘ultra low-cost car’ to introduce a range of electric vehicles in India. The company accepts this as a new marketing strategy and has a confirmed belief that car sales will boost as a result of this new marketing strategy.

The Bajaj, Nissan, and Renault alliance is not restricted to the production of one single vehicle. The alliance is negotiating to extend their ULC partnership and produce a portfolio of electric vehicles in different segments with varying price tags. The alliance lays its focus on India because it is one of the most cost-effective production centres in the world even after inflation.

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Wednesday, 16 July 2008

Hybrids and electric cars are making big news in India as fuel prices and loan interest rates go sky high. People are now looking for fuel efficient cars that are less dependent on fossil fuels. Sensing the pulse of buyers, the government has rolled out sops for hybrid cars sold in India.

The Honda Civic Hybrid recently entered India while E10 cars (10 percent ethanol) cars like the Accord are already present on Indian roads. Hyundai is planning to bring its own version of Hybrid technology to India. It plans to bring in hybrid variants of the Accent, Sonata and Avante. The domestic auto giant Mahindra and Mahindra has already introduced the Scorpio Hybrid for its market abroad.

Most of these hybrids are sold because of their low running costs, but there is a huge difference in the cost of hybrid and original petrol versions of these cars. However, it is electric cars that provide the best answer to saving fuel costs and recovering investment. Interestingly, it is India’s own Electric Car manufacturer Reva Electric Car Company which beats the best in the business and proves to be the most cost effective car.

According to experts, the electrically charged REVAi car can save up to Rs 4,500 in fuel costs every month for a travel distance of 45 km everyday. This amount will help recover the cost of the Reva car within a few years time. On the other hand, recovery of the difference in price between a Hybrid and its petrol counterpart can take years if calculated in cost saving due to fuel-efficiency. However, hybrids do offer better power and comfort compared to the electric cars available in India today.

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Electric cars have received poor response from Indians. India’s own Reva has been the most successful venture among electric cars in the world. Bangalore-based Reva Electric Car Company is seen to vroom only in a few cities in India. It was only recently that the decks were cleared for Reva cars to hit the national capital Delhi. For a country like India, this is too little. Electric cars continue to post poor sales and receive very little encouragement from the Government.

But UK has already taken a liking to this car. There are over 1000 cars running only in London. The British authorities have already granted special rights to the Reva car and cut down taxes. They also provide concessions like free parking with free electricity supply for re-charging.

These proactive steps from the UK government encourage fuel efficient cars like the Reva to become popular among lawyers, doctors, architects, corporate executives, and various others. One peek at India reveals that the government is spending several crores on promoting and encouraging highly polluting cars and added to this, we have no stringent norms on emission levels. Makes me wonder if there is some high level of politics going on in the Government that we as people of India are not aware of!

Article Submitted by a.k.a Jostler

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Wednesday, 11 June 2008

India’s lone electric car, the Maini REVAi, has won its manufacturer a coveted European award. The Reva Electric Car Company has bagged the prestigious ‘2008 Frost & Sullivan European Automotive Powertrain Company of the Year’ award after being recognized for excellence in customer satisfaction, superior penetration of the market and high sales volume. Costing just 9000 pounds in the UK, when most electric cars are priced 17,000 pounds and above, the REVA is rated the world’s cheapest electric car.

While the tiny Reva has not been very popular with the Indian public, it sees impressive sales in the European market. The Reva sells one electric car every day in the UK.

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Monday, 26 May 2008

When new and established car companies are hesitant to come up with eco-cars, a new Indian venture is planning to showcase an electric hybrid car at the Paris Motors Show scheduled to be held in October.

Argentum Motors, India’s largest automobile contract manufacturer has asked a French automotive design company to develop an electric car. The French company Heuliez is a leading design company but is reeling under bankruptcy from the past six months. With this agreement, Argentum Motors will not only bail the French company but also gain access to the European market with an eco-car. Argentum, set up in 2007 has stepped up promotion as a contract car manufacturer for luxury and super luxury cars in India.

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It seems like most car manufacturers are finding it difficult to develop a workable electric car. They are trying to develop electric cars that will be more powerful and cost effective. As the car makers are struggling with the new technologies, the electric cars themselves are getting upgraded everyday.

Bangalore based Maini Reva has already proved that electric cars are workable. They can be easily motorable in urban cities. Now more and more car companies are joining the race to develop electric cars as it is the cheapest option. General Motors is likely to launch the high profile electric car Volt in a year’s time. With increasing green house effect and air pollution, car manufacturers profess emission free cars may become a reality in near future.

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Tuesday, 6 May 2008

Electric cars have become the new research area in auto sector. It could be the answer to the fuel problem and increasing pollution witnessed today. Fossil fuel is drying up fast, but car consumerism is increasing like never before. Almost all Asian countries have big car market. If this trend continues, one day we may have several cars but no fuel to run.

In order to search an alternative to avoid this possibility, several car manufacturers are opting for electric cars. Audi is now contemplating on developing electric cars too. The company plans to launch it in 5-10 years. It will have zero emission. Audi is a late entrant in the alternative fuel research field. Although, it has a larger research department than that of Mercedes Benz, Audi has now turned its attention to develop electric cars.

Audi has been in the forefront of car engineering and the same can be easily repeated with the electric cars. However, Audi may not wish to compromise on the key factors like speed and performance, which has brought in several laurels.

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Friday, 25 April 2008

After asking the 15-year old cars to undergo a thorough health check–up and asking those who fail the test to retire, The Delhi government has now gone soft on battery operated vehicles.

In India the only commercial battery operated car is Bangalore based Reva Maini’s electric cars. The car cost Rs 3.5 lakh in the rest of the country, but will cost merely Rs 2.5 lakh. As much as Rs 1 lakh will be reduced in the total take home price. The state government is giving subsidies of 30 percent. This will really help Delhi to become one of the cleanest cities and also a good news for buyers who want to buy these cars. The thick emission fog will give way for sunlight and birds may chirp on trees.

The cost of this bright future will be Rs 35 crore per year for the government. And now don’t think that God’s divine message was received by all the government officials. The proposal was placed in front of Delhi government, by the environment ministry, ahead of the 2010 Commonwealth games.

Delhi government is waiving of VAT, road and registration charges to make battery operated cars more attractive than its petrol and diesel run cousins. Well with this price reduction on green cars, people will opt for electric cars rather than going for diesel or petrol small cars.

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