Discount on Mahindra Renault’s Logan

plummeting sales and the discount

To boost the sales of Logan sedan,  Mahindra Renault plans to offer extensive rebates in coming days. Though logan has been the best seller for Renault, it fails to take off in india. When SX4’s and City’s are selling 2500 – 3000 units per month, Mahindra-Renault sold Mahindra Renault has sold around18,000 Logans since its May launch (averaging 1500 units per month). Particularly, Logan sales is witnessing very poor sales in the last couple of months forcing the manufacturer to scale back production at its Nashik plant by around 30-40%. Mahindra Renault has cut the production at the Nashik plant from 125 units a day in the August–September period to between 70 and 80 units a day in December 2007 and that the company will keep this lowered schedule until February. This is contrary to what Mahindra Renault initial plan, the manufacturer planned to sell 50000 logan’s a year at the time of launch. Hence comes the limited period offer, an attractive entry invitation price of Rs.4.49 lakh per vehicle (ex showroom Delhi) on the fully loaded Logan 1.4 litre Petrol variant. This limited period offer will come into effect from January 7 and will be available for 45 days from this date. However Mahindra Renualt seems satisfied with the sales of logan, We are extremely delighted to receive prestigious industry accolades which are testimony to the Logan’s solid build, performance and superior mileage. The special invitation price on the petrol variant is our way of inviting potential customers to join in the celebrations at Mahindra Renault,” said Nalin Mehta, Vice President – Sales & Marketing, Mahindra Renault.”The Logan has been a huge success since its launch early last year, as reflected in the 12% market share it has carved out in the C Segment and with this attractive offer we hope to increase our customer base,” Mehta added.

Mahindra Renault raised the price of the Logan diesel variant by between Rs.10,000 and Rs12,000 per vehicle in December.

Indian’s perception on logan:

From its launch in 2004 to the end of October, some 700,000 units of the car—all its variants—have been sold across the world.  However in India the respons for the Logan has been lukewarm. Here are few reasons why Logan fails to make a mark in india.

The Logan is perceived as an over-priced product for its segment in India. Globally, it is sold for around €7,000 (Rs4.03 lakh) and has proved to be a volume grosser for the French car maker. But In India, however, the car begins with a price tag of Rs4.28 lakh for the petrol variant and goes up to Rs6 lakh for the diesel version, and has aggressive competitors such as Tata’s Indigo. Also the launch of Maruti Suzuki’s SX4 this year dented the sales of logan largely.

Accolades won by Logan:

Mahindra Renault Logan has received several prestigious industry accolades since its launch eight months ago. Logan has been named the ‘Car of the Year 2007’ by HT Cars & Bikes, a supplement of the Hindustan Times and also recently won the Business Standard Motoring Jury Award 2008. The J.D. Power Asia Pacific 2007 India Initial Quality Study ranked the Logan as the ‘Best Entry Midsize Car in Initial Quality’, which is the ultimate measure in quality. The Logan received the lowest score of 65 PP100, i.e. Problems Per 100 vehicles, ahead of other leading passenger cars, indicating a high level of satisfaction experienced by customers. The Logan has also been declared the leader in its segment in new vehicle design and performance in India, according to the J.D. Power Asia Pacific 2007 Indian Automotive Performance, Execution and Layout Study (APEAL). The 2007 four-wheeler total customer satisfaction study undertaken by leading market information provider, TNS, ranked the Mahindra Renault Logan Diesel at the top of the ‘Midsize Car – Diesel’ segment with an exceptional score of 96.

What Logan teach us: The word ‘good’ doesn’t means success

Tata Motors to produce one lakh car in Thailand

Yesterday, there were media reports indicating Tata Motors would unveil a high-end variant of people’s car or 1 lakh car (jeh) at the upcoming Geneva Motor show. It is very obvious that Tata Motors would launch the one lakh car across the globe and will customise it depending on the market demand.  For South East Asian Nation, it’s almost sure that Tata Motors will produce the one lakh car in Thailand plant. It recent years, Tata motors is very bullish on Thailand. Tata Motors is building an assembly plant  in alliance with Thonburi Automotive to sell the Sprint pickup in Thailand from March 2008. Tata Motors has also submitted a request to Business of Foreign Trade in Thailand to set up an assembly plant for eco cars with a capacity of 100,000 units at an investment of over $250 million (1000 crores) in Thailand. Connecting the dots, we come to know that Tata Motors will produce an environment friendly variant of one lakh car in Thailand. CNG and LPG is likely to be the option. In addition, Tata will produce a much powerful (engine with a capacity of 1000cc) one lakh car in Thailand to cater to the needs of the region which are currently dominated by Japanese majors like Honda and Toyota.  Safety features like airbags and ABS will be added to the one lakh car to comply the safety standards.

Suzuki plans 200cc and 500cc bikes in India

When Government Of India opened the gate for superbikes in 2007, everyone expect the Hayabusa and R1 to hit India market. Recently, Yamaha launched superbikes – R1 and MT-01 in India. Now its Suzuki’s turn but unlike Yamaha, Suzuki plans a CKD (Completely Knocked Down) route that means more affordable superbikes.Assembling the bikes in India will cut the cost of a superbike significantly, compared to importing it as a CBU(Completely Built Unit). Also,Suzuki is planning to assemble 400-600cc bikes in India that could see prices of power bikes come down to Rs 4-5 lakh.  Suzuki Motorcycle India V-P Atul Gupta told that the company would shortly be sending some of the bikes to Indian vehicle certification agency Automotive Research Association of India (ARAI), Pune, for homologation. “The homologation process is likely to take between three to six months and we can expect some of these bikes possibly by Diwali,” he said. “Indian Government move to relax certification process for 800-cc plus vehicles (by accepting certification from EU against existing policy of only from the country of origin) would also help in launch of these bikes in India”, he added. Suzuki may bring superbikes like GS500, GSR600 and RMZ-450 to indian market.

125cc,150cc and 200cc..

Suzuki will launch two new models in 2008. While one will be in the 150-cc segment, the other could be a premium offering in the 125-cc segment. Suzuki is also looking at launching a 200 cc bike, though Gupta said a final decision would be taken closer to the launch.

Expansion plan:

In line with the expansion of its product range, Suzuki will expand its dealer network to maximise its reach. Suzuki intends to set up a network of 400 outlets over the next three years, compared to 140 stores at present. And, during this period its investment could reach Rs 700 crore while the Gurgaon facility could be churning out 4 lakh two-wheelers by 2010, compared to 1.7 lakh at present.

Auto Stocks: buy or not to buy

Auto Index on the which trailed the benchmark index in 2007 is suffering from higher interest rates. Will the auto stock continue to suffer or will it revive its glory in 2008. Here’s guide to help you to pick the good and reject the bad.  Hindustan Times conducted a survey to find out stocks to avoid in 2008. 13 brokers registered their opinions in the survey. Here are their recommendations for Auto Stocks.

Hero Honda, Bajaj Auto and TVS:

Expected to be an underperformer in 2008.Referring to Hero Honda, Ashish Kapur, CEO, Invest Shoppe says: “Two-wheeler manufacturers are struggling to protect their margins. Bajaj Auto is trying to restructure to wriggle itself out of this situation. The sector may take some more time to get back its lost charm.” Another research head of a broking house said that Bajaj Auto was planning to counter the lull in the two-wheeler market by launching new products, even on the back of its phenomenal success in establishing itself in the bikes segment. TVS Motors was voted down by two brokerages.

Tata Motors,M&M and Ashok Leyland:

Among the heavy vehicle manufacturers, Ashok Leyland is also expected to under-perform according to a broking house. The reason: Lack of new products and clear direction of growth. However, Tata Motors is expected to perform well, the analyst added. Punjab Tractors, which was acquired by Mahindra & Mahindra recently, would take at least 18 months to expand its market across India from its focus on North India.Given the market is at its peak already, the investors seem to look for some exciting news or expectation from the companies.“The market is looking for opportunities that excite them, where value unlocking can happen through mergers and acquisitions, scalability, turnaround etc. The market is not interested in stocks that offer just 10-15 per cent growth,” Kapoor added.

Maruti Suzuki:

Suzuki’s indian chairman may say, it is ready to cut don profits to retain the market share. But india’s leading car maker seems to be investors choice for 2008.

On the back of a sound foundation of existing products (13 models priced between Rs 2 lakh and Rs 15 lakh), strong distribution, efficient service network and new product launches, Maruti Suzuki will maintain its dominant position. The company has 52 per cent market share by volume of the Indian car market and 62.5 per cent of the small car segment, which is commendable given the stiff competition from global majors. Maruti grew at a scorching 18 per cent, compared with the 13 per cent recorded by passenger car market in H1 FY08. For eight months ended November 2007, sales volume was up 19.7 per cent to 500,108 vehicles led by 49 per cent growth in exports. Notably, exports are expected to grow 40 per cent annually for the next two years; its share in total sales is likely to move up to 12 per cent in 2010 from 7 per cent in FY07. Maruti is already augmenting capacities by 3 lakh in a phased manner by FY10 to a million units. Besides, it has lined up Splash (A2 segment) and the concept car A-Star (A1 segment), while a Swift sedan (dezire) is on the cards. These will help earnings grow by 20 per cent annually in the next two years. Aggressive pricing, enhanced margins on the back of improved product mix, indigenisation and scale benefits, will help Maruti do well.

Tata plans $250m eco-car plant in Thailand

Few weeks back we reported you on Global auto makers plan to make Thailand an eco-car hub under the heading Is Thailand edging out India?

Tata Motors which will soon roll out the new generation sprint through its alliance with Thailand based Thonburi. Tata Motors will produce 35,000 pickups from 2008 in Thailand. Now, it plans to make 1lakh environment friendly cars in Thailand. Global Auto maker are making queue in Thailand to avail the tax breaks offered by the Government of Thailand to companies that produce hybrid vehicles. For more details read click the link specified above. Tata Motors has submitted an application to build a new eco-car assembly and parts plant, with annual output capacity of 1,00,000 to Thailand’s Board of investment. Tata Motors will invest around $250 million (1000crores) for the Thailand plant. Tata has already invested $43 million for the pick-up plant.

Ace pick-up:

Tata Motors may also produce a pick-up based on its small truck- Ace for the Thailand market. It has already launched the passenger version of Ace, called Magic, in the domestic market. Tata’s Magic could be re-engineered to a pickup and made available under different eco-friendly fuel forms like compressed natural gas (CNG) and liquefied petroleum gas (LPG) to meet the emission norms.

Tata’s one lakh car heads Geneva

The much expected Rs 1 lakh car (may be named as ‘jeh’) will be finally out at the 2008 Delhi auto expo. We hear this news atleast 100 times a day, but what’s more exciting is Tata is building a variant car that would meet U.S. or European specifications  Tata Motors plans to display the high end people’s car at the Geneva Motor Show in March. This will be a prelude to entering the competitive European market. Tata’s people car would be around $6,000 in europe or america.Tata Motors has already shown interest in launching the car in markets that resemble India. The Geneva Motor Show has been a happy hunting ground for several Tata vehicles including concept cars. Tata Motors had unveiled the pick-up Cliffrider (to be launched in India), the Elegante sedan, the TL Sprint among other models at the Swiss show. The recently launched 2.2 litre Safari Dicor was also displayed Geneva last year.

Note: Wanna test drive the Tata’s one lakh car? you have to wait till september or october of this year ( when car will be hit the showrooms). The one lakh car won’t be available for test drives at the Delhi Auto Show.

Audi to produce A4 in india

Following BMW and Mercedes, Audi has started production of its mid-size sedan A6 at its Aurangabad facility in Maharashtra which means the model will become cheaper by Rs 1.4-2.1 lakh. Currently A6 is brought to India through CBU(Completely Build Unit) route which attract more than 110% import duties and tax which pushes the price of A6 to Rs 45lakh. But as Audi starts assembling A6 in india these duties and taxes will be around 60% of the price. From now on Audi can comepete with BMW and Mercedes through aggresive pricing. More than 300 A6 sedans will be assembled in a single-shift operation in 2008 in Aurangabad, Audi’s second production unit in Asia after Changchun in China.

Audi also confirmed that it will begin assembly of its 2008 A4 model(yet to be launched) by the end of 2008. “Starting our own production is the best way to adequately serve such a promising growth market,” Rupert Stadler, chairman of Audi’s board of management, said. Audi which has already invested 10 million euros in india will invest another 20 million euros by 2015 to get a bigger share in the India’s fast-growing luxury car market. Audi hopes to sell 3,000 cars by 2010 in india. Apart from A6 and A4, Audi sells the A8, Q7 and TT models in India.

Mahindra scorpio and Bolero prices hiked

Following Maruti Suzuki,Hyundai and General Motors, Mahindra and Mahindra raised prices of its models including scorpio and Bolero in the range of Rs 1,000-10,000. However, Mahindra Renault Logan is left out of the purview of the price rise. “We have increased the prices across all models, except Logan, from January 1. The price hike has been necessitated due to increasing raw material prices,” Mahindra said.

Mahindra Bolero Limited Edition

mahindra-bolero-special-edition.jpgMahindra and Mahindra Ltd on Wednesday launched a special edition of its sports utility vehicle Bolero here. Mahindra and Mahindra will sell only 1,000 units of this edition in the country. Vivek Nayer, vice-president, marketing, Mahindra and Mahindra, launched the edition by presenting the keys of a special edition Bolero to cricketer Robin Uthappa. “2007 has been a spectacular year for India in terms of sporting achievements.  Robin Uthappa epitomizes this sporting success and the true spirit of Bolero, i.e. to ‘Take on Anything’.  Robin is a role model for the younger generation and one of Indian cricket’s leading stars today.  The new Bolero Special Edition, with its sporty looks and plush interiors is an apt choice for this dashing cricketer. The Special Edition is based on extensive customer feedback and is meant for the young, urban customer who likes to stand apart from the crowd, with his taste for elegance and style” Nayer said on the occasion. “The Bolero should be a great drive and I am looking forward to drive it both in the city as well as on long road trips,” said Uthappa. The limited / special edition variant of Bolero Multi-Utility Vehicle (MUV) is priced Rs 5.98 lakh (ex-showroom, Delhi)

newly added….

Bolero sleek and sophisticated appearance is enhanced with its dual tone exterior of Java Brown and Mist Silver, which is exclusive to the Special Edition. This combination is echoed in the new look spare wheel cover on the rear of the Bolero, along with Special Edition branding. The subtle body graphics on the sides and bonnet of the Bolero special / limited edition add to the designer effect, while the front fog lamps and aluminium mesh inside the front grille and bumper give the SUV a rugged appeal.

The smart exterior of the Bolero special edition is further complemented by its plush interiors. The rich, European leather upholstery in beige with premium black lining and Special Edition branding adds a touch of class, while the CD-MP3 player with four speakers and a USB port keeps you entertained through your journey. Bolero special edition also features a new centre-faceplate which sports a glossy wood finish.

India cuts duties on cars, bikes from South Asia

Goverment of India has cut customs duties on cars and bikes from South Asian countries to conform with a regional trade pact. The reductions on more than 120 items came into effect from Jan. 1, the Central Board of Excise and Customs said in a notification. The duty on cars and motorcycles imported as completely knocked down units from Pakistan and Sri Lanka has been reduced to 10 percent from 12.5 percent. Similar units from Bangladesh, Nepal, Maldives and Bhutan will have no duty, compared with 10 percent earlier. For cars and motorcycles in any other form, the duty has been slashed to 0-20 percent from 40-50 percent.