Volkswagen in the steps of increased volume for Skoda

The Chakan plant of Volkswagn is to have tight schedule for Skoda drive, as the steps are on for increasing the volume of Fabia and the sedan, for the Indian market. There will be flexibility for the production in the Chakan unit and the one in Aurangabad, said the company’s Senior GM. The Fabia hatchback is designed from the Chakan plant and the company expects to sell over 10000 units by next year and plans are to clear the deck for the backlog of Laura and Superb ranges.

The new power of Chakan unit will do a lot for the Skoda Auto, as it has eased the pressure on the Aurangabad plant so that the waiting period from 6-8 weeks will see the decline. At present the pending orders for Superb is 400. The second fiscal of 2008-09 and the first fiscal of 2009-10 were a tough trough but the last three months gained momentum with an increase in the sale of 34% in August, 58% in September and 98% in October(compared to the same period last year).

The launch of Yeti is on and is expected to roll down next year while the evaluation spree is on for Octavia, which is doing well in India. The bridal collection of Skoda Superb, designed by Manish Malhotra was recently launched in the presence of its dealer Mahavir Auto Diagnostics. The event was made in a tie-up with the fashion designer on the occasion of Lakme Fashion Week.

The advertisement through mobiles drives faster for car market

The most popular car makers in India, Maruti, Hyundai, Tata Motors and others are increasing their ad campaigns through cell phones, which according to them, fetches more positive results. The ads through this mobile phones constitute some 31% of buying decisions than the global buyers, estimates Carsonline. Of late, there is an increase in the small car segment which offers fuel-efficiency.

Simultaneous is the increase in the buying decision from the customers who access through their mobile phones. But the reliable information on TV, Print continues to influence the customers at large. According to the estimates made by the industry analysts, the buyers initially browse their choice through the net – 75%- as pre-shopping which is crucial in the buying decision, said the official from Maruti-Suzuki. Customers involve in pre-shopping on the digital medium because of the bureaucratic means of the dealers.

The country has 30% of the car buyers who get influenced by TV and Print media whereas the global equivalent is 19%. The figures for website ads are 22% of the buyers in India compared to 10% globally. The digital medium enables the customers to have an analysis of the product. For Maruti-Suzuki, the sale for its Swift ranges has increased due to the digital presence through Facebook and YouTube. The company believes that the digital marketing is the most potential for dealing with the customer.

The customers too prefer this medium to have a free interaction with the dealers, before buying the product. The demand for the car industry will continue for another four months, according to the industry analysts, as the excise duty relaxations and the incentives offered by the dealers and makers too contribute. The car market is expected to triple in another ten years from the current 1.5 million units there will be fuel-efficient models in future.

The queue is longer for the car aspirants

The post-festive period has made the car makers in the country to run their heels to meet the demands. The surge in the production has compelled the car buyers to wait even for four months, as the wait phase has seen its come back. Invariably all the brands face this hiccup—Swift (for Dzire, diesel the waiting period is more than 6 months) , Honda City (four months), Ritz(two months waiting period) thus making an average waiting period of 6-8 weeks. This is quite strange even after the festive spirit.

M&M, India’s largest manufacturer in utility vehicle sector, has the unusual full running capacity, and foresees more demands for November and December. Xylo , Scorpio and the Bolero all have an average wait period of two-three weeks. Hyundai’s story with its i10 and i20 is successful as the recent periods fetched 20-25% additional demands than the previous year.The demand surge is a continuation of the earlier periods, and due to the attractive interest rates offered by the financial institutions aided by discounts and offers from the manufacturers and dealers.

However, the demand has evoked a kind of fear on the rise of price, as already mooted by Kotak Mahnidra Bank’s rise in the interest rate of 50 basis point. The company’s CEO said that the interest rate has been playing in the push over the vehicles and there need not be any panic over the demand.

The situation in the two wheelers too bear the same picture – Hero Honda and Bajaj Auto convincing the customers on the waiting period. The demand is in the offshoot in November too, that Hero Honda is able to cross its target -4million units- this year.

M&M

The proposed automobile plant initiated by M&M near Cheyyar, backed by the Tamilnadu government has got the green signal, as the cabinet has approved in toto. The Rs1800-crore project will be provided with 200 acres of land (out of 450 acres) with the capacity of 1.5lakh units. The initial production will be SUVs, tractors and commercial vehicles in addition to spare parts. If situation is feasible the unit may also roll down cars too and to have an integrated operation there will be a dedicated test track.M&M will also utilise its 100 acre facility near Maraimalainagar for its R&D purpose, which too under the cover of the Tamilnadu government and the official nod for this is expected in another two months.

The MoU and the projects will provide employment for about 2500 persons. Anticipating an additional investment of about Rs5000 crore, the project seems to be a coveted initiative, which should have gone to Maharastra, where M&M has its strongholds. But ,in reality, it is the Tamilnadu government which is the beneficiary out of this projects.

The State has got a sigh of success and relief from the labor unrest for the past two months. Under the MoU, M&M would be able to deliver some 13.5 lakh units a year and amidst the global downfall, the State government’s steps would take M&M to an unenviable position in the auto sector. For M&M too this deal is a relief in the wake of its sore tie-up with Renault for the failure model Logan and the JV among Renault-Nissan-Bajaj.

As the project starts running, M&M would be the second largest tractor maker after Tafe and Deutsche-Same to feed the state’s exchequer. M&M would refine its entry into the Detroit of India, as it had to pull out from its tie-up with Ford Motors, by which a green field project was in the offing.

After Nano, Renault-Nissan, Ajanta comes to the fore for Rs1 lakh car

The very old quartz clock manufacturer in India, Ajanta is in the news for its business of Rs 1 lakh car. The car will be derived under the dealing with the Chinese maker from Guangzhou. Ajanta which is a Rs1500 crore company, is in the Indian market as the reputed makers of quartz clocks and other home appliances along with electric bikes, vitrified tiles and CFL lamps.

The proposed car’s assembly unit is to be made at an investment of Rs100 crore and the deal is to be with an anonymous Chinese maker at the capacity of 5000 units a year. The deal may persist within this year, at the low valuations.The car is to be christened as “Oreva” ( marking the names of its founder OR Patel and his wife Revaben and is familiar in the tiles market)to be built in indigenous design targeting the urban crowd. The company’s top brass is, however, non-committal about the plan but disclosed that the deal would materialize provided the government extends its support for cheaper vehicles in terms of VAT and excise duty, which constitute the major share of the pricing.

The company is in a position to offer electric cars at Rs1 lakh given these relaxations by the government. The deal with the Chinese maker may bring in technology for moulding, designs and battery production, he said. This would also yield new markets for electric cars in India, he added further.In 2007 the company started its electric two-wheelers at the investment of Rs300 crore, as it is able to make 10000 bikes every year at its Kutch facility. Mr.Patel with his father and uncle Manubhai Patel (currently running the Samay group) initiated the Ajanta group in 1980s by introducing clocks @Rs100.Now they have devised a prototype for the car which is on a trial run at his own 400-acre facility near Morbi, Rajkot. It is designed to run at 120km/hr at one charge of 7 units of power which costs Rs35/charge. This is one among such 10 battery-charged cars with fourseats and six seats(Rs1.5lakh)

Benz to face slow down in its sales in 2009

The year 2009 proved to be a bad phase for Mercedes-Benz as its sale is pathetically low as on the date. The reasons cited for this sorry state are lower availability of credit and the global economic crisis. So far the company could sell just 2650 cars this year against 3625 cars in the same period last year.The sale in luxury sector is a relief, said the MD and CEO of Mercedes-Benz.

Of the last ten months, the first six months were crucial when the credit facility was struck a lot but the coming months seem to bring some solace, he said. The company’s R&D wing has some 300 people in Bangalore and Pune and the next year would bring in more people as the result of expansion scheme.Yet there were no official information about anything from him. The CEO was here on the occasion of the launch of E350 CDI Blue-Efficiency model, powered by diesel engine. This was preceded by the petrol variant which the company has sold 130 units in 45 days.

Nano resolves Shifting Stance

Due to the outbreak of shifting the unit for Nano production, Tata Motors has come forward to compensate its vendors who migrate to Sanand unit. The unit is to have an installed capacity of 3.5 lakh units a year and the production is likely to start from the Q1 2010. The vendors have expressed their outburst to have fresh investment once the unit was shifted to Sanand, as some of them had invested some amount in Singur West Bengal. But the Singur plant had to be dropped due to public protest.

Without revealing the nature of compensation , Tata Motors said the issue has been amicably resolved so that the vendors would start their business soon in Sanand. Yet some vendors like to continue with their current premises.Meanwhile the deserted land in Singur is likely to be converted for a1600MW power project, as suggested by a team of officials from the West Bengal government made an on-the –spot survey at Singur. The proposal is yet to be taken for consideration.

Bajaj to run with its Two Wheel(ers)- Discover and Pulsar

India’s popular two wheeler maker Bajaj Auto has ‘Discovered’ a strategy to ‘Pulsate’ its business. Indeed it is planning to increase the production capacity of bikes to 300000 in 2010-11, starting from next April. The production will focus on new versions of these bikes, which have yielded a stunning show to Bajaj, disclosed its MD Rajiv Bajaj.

The major chunk of these numbers will be from Discover and Pulsar – 200000 units- and the Platina will share about 40000 units, followed by Boxer(an exclusive export brand to Africa- to complete the schedule. Bajaj is concentrating on global markets as the export has stimulated in September (81000 units) and October (84000 units) with November promising some more returns, said Mr.Bajaj.

Bajaj had been on the trailing track in 2008 and the sale in 2009 has been a rousing comeback courtesy Discover and Pulsar. These two bikes combined the fun and biking sought by the customers. Pulsar maintains its slot as the topper in the sports category at 65000 units a month and Discover has its hit the headlines to combat Splendor and Passion from Hero Honda. The Discover, comprising 135cc version constitutes 95000 units every month.

Bajaj attributes the triumph of these brands to strategy over creativity and the company intends to carry over the torch of success without hurting it. Bajaj has discovered the brand position from these bikes akin to Sony for Walkman or Kawasaki for Ninja. The brand has yielded better leverages sans any large scale propaganda. The difference between these brands and the competitors, according to Mr.Rajiv, is the difference again, in product platform.

He recalled the ouster of its own Chetak, on the arrival of bikes from Bajaj itself. Thus, anything uniquely different – mileage, storage, style or comfort- pays rich dividends, he asserted. He believes that the success track has the value-drive, on which Bajaj likes to build on.

TVS launches Flame DS 125

TVS today launched re-launched its Flame motorcycle with twin spark plug. Earlier, TVS launched Flame with twin spark plug and three valves but has to withheld the sales following the patent issue raised by Bajaj Auto. Vicky.in is one few to test drive twin spark plug flame. Bajaj and TVS fought a court battle and finally TVS has emerged as a winner. But is it too late? tell us your opinion on the same.

TVS Flame DS 125 produces 10.5 bhp @ 7500 rpm, TVS Flame DS 125 has a top speed of 95 kmph.Flame DS 125 is priced at Rs. 49,200 ex-showroom and comes in dual tone colours of red and black.

Brief face lifting for Nano

The period after six months from now will see a changed outlook of Nano, as necessitated by the market feedback. Tata Motors is greasing its mind to enhance the efficiency of Nano by increasing the conventional 5000 rpm rev limit by 1000rpm for fast acceleration, particularly in the first and second gears. There will be a 5-speed gear box (for export units) which may be absent in India where top speed is not highly feasible (restricted to 105km/h) on safety grounds. The Indian road will not facilitate the drivers with gear change at this speed of 105km/h. A 5-speed gear will be ideal for the European roads.

The Indian units will have a modified outside rear view mirror (ORVM) assembly, which will be less cumbersome as the movement is done within and it will be introduced once approved by ARAI. The new mirror will facilitate electrically-powered mirrors in future. The current OVRM needs entire movement. There will be a ‘check-strap’ for sustaining the door opening.

Further, the refined Nano will have a tail-gate differing from the current sealed rear glass unit. The conventional way of getting into the luggage area is to fold the rear seats amidst much inconvenience and difficulty. To maintain the purity of Nano’s design, as directed by Ratan Tata, the engineers at Tata Motors have brought this tail-gate. The relatively low production at Uttaranchal plant has enabled to experiment with the current Nano and is finalizing the design before getting into the new plant in Sanand. Once this unit starts production by the end of 2010, the production will shoot up to 20000 units a month from the current 4000 units.