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Hot scoops on Getz diesel,Honda’s small car and more

Hyundai:

Getz diesel:

Hyundai Getz diesel will be rolled out in the first quarter of 2008(january to April). Getz diesel may be powered by a much powerful 1.4L diesel engine since the Hyundai arch rival Maruti swift is currently powered by 1.3L engine. The Swift’s 1.3L engine is going to power the next generation indica – Indica V3 and Fiat’s Punto. Hence a 1.4L engine for Getz may give Hyundai an edge over others. Because of this engine Getz diesel will be priced at a premium over the swift diesel and will compete with upcoming skoda’s Fabia i.e. getz diesel may be priced around Rs6 lakhs.

LPG Santro:

Hyundai may roll out LPG variant of Santro soon. Recently, Hyundai Motor India launched a CNG variant of Santro in Delhi. Since CNG availability in southern states are limited Hyundai is mulling a LPG variant for its Santro.

Santa-Fe SUV:

Hyundai is planning to bring the santa -Fe SUVto india, Hyudai will replace the ageing Hyundai’s Tucson with the new santa Fe since all key players in this segment have launched new variants of their cars Maruti-Suzuki grand vitara, Ford Endeavour and Honda CR-V and new players like chevrolet will enter this market through its captiva. Hyundai will bring the next-generation 2007 Santa Fe debuted at the 2006 North American auto show. A 2.2L 150hp CRDi will power the new santa Fe.

Maruti:

Maruti is working on small car possibly the new WagonR what we already reported. The new Wagon-R named the ’splash’ is based on an all-new platform, the new wagon-R has some hints from both the Swift and SX4. Splash will get Suzuki’s newly developed gasoline engine – a 1000cc, 65 bhp 3-cylinder and a 1200cc, 86 bhp 4-cylinder engine will power the splash.

TVS Motors:

TVS has recently announced it plans to roll out 11 new models before April 2008. The new product line includes motorcycles in both the entry level and the high-volume executive segment, a scooterette and an electric scooter, besides two-stroke and four-stroke three-wheelers. But what TVS secretly planning is a four wheeler which might take on tata’s one lakh car

* It is already reported that Two wheeler giants Hero group, Bajaj and TVS are taking steps to foray into four wheeler market. While Bajaj tie up with Renault is almost done, sources said TVS is developing a powerful two stroke engine which may be used for its four wheeler foray. Though it is not clear that whether TVS will use this engine for a cargo carrier or small car. If this is true, TVS might challenge Tata’s one lakh car in the future.

More two-wheelers:

* TVS Motor has almost firmed up plans for launching a 100cc plus four-stroke scooter during the next fiscal. TVS scooty pep is the market leader in its segment as TVS want to increase its share in the robust scooter segment. As the 90cc TVS Scooty has always been associated with women and TVS hopes the new 100cc plus scooter could bring in male customers into the fold.

* TVS Motor Company plans to launch an electric bike at the end of this year and introduce two to three variants of the bike next year.

* TVS Motor will launch an upgraded Star motorcycle, two new motorcycles in the executive category, two high-end Apache models. The launch of new star variant is expected during the coming festival season.

Tata Motors:

We have already reported Tata’s next generation Indica – indica v3, new sumo and new safari 2.2L. Here’s more scoops on Tata’s Line-up.

Panel van:

* Tata is working on an 18-20 seater called the Panel V. Based on the 207 platform, it is tipped to be along the lines of the recently launched Winger Maxi-van. The Panel V will be fitted with the 2.2 litre engine that Tata acquired some time back from Renault.

Sprint pick-up:

* Tata Motor’s new one-tonne pickup, popularly referred to as the Sprint, will be launched in India soon. The vehicle will be christened the Xenon and sport Tata’s 2.2 litre Dicor engine. Tata aptly named this project Sprint since the entire process from conception and design to development took only 18 months.Tata has developed the vehicle completely inhouse. It is yet to decide on the exact variant of Xenon – be it single, double or space cab – in India, but industry experts believe it will be to Tata’s advantage to have more than one variant in the market. After the India launch, the pickup will debut in Thailand possibly in the first quarter of 2008 through its joint venture with Thonburi Automotive Assembly. Tata has developed both the 2.2 litre and 3.0 litre engines for the Thai market. At present, it is conducting customer research to help it decide on the engine. The company will stick to the utility function of the pickup and promote the Sprint as a workhorse as opposed to the luxury/lifestyle image of many Japanese pickups in Thailand. However, it cannot be ascertained if this is going to be the same strategy for the India market too since Mahindra has introduced the lifestyle segment in India through it scorpio getaway.The sprint pick-up will be subsequently launched in Argentina, where Tata has an agreement with Fiat to use its Cordoba facility from 2008 onwards. It is likely that this sprint will be a little different from the models to be introduced in India and Thailand. Although the company has the option to badge the Sprint as either a Tata or Fiat vehicle, it will most likely be branded a Fiat product in Argentina. South Africa is also another potential market.

Nissan – Renault:

new Logan variants:

Renault – Mahindra would roll out new Logan variants including the Logan 7 seater logan MCV(Multi Connival Vehicle), which could be launched sometime next year.

Serena and Vanette:

* Nissan and Renault is said to be looking at opportunities in the utility vehicles (UV) segment, the company is conducting a market feedback on the possible introduction of the Serena and the Vanette in the Indian market. While the Serena is a multi utility vehicle on the lines of the Toyota Innova, the Vanette is a more van-like multi purpose vehicle that can also seat eight people.In the short-term – before production begins at Chennai – Renault-Nissan could use the serenna,vanette, X-Trail and Teana, to showcase its prowess in terms of quality and reliability. In that sense, these models would a curtain-raiser to potential consumers.

Renault – Nissan two new small cars:

* Nissan – Reanualt is working on two models codenamed XO2A and X02B to be produced in Chennai. The X02A is a compact hatchback, which is slated to debut in 2012. Renault has targeted sales of nearly two lakh units. The X02B is a roomy hatchback, whose projected sales for 2012 is in the region of 130,000 units. The engines options for the cars will be 1.2 and 1.5 litre (petrol) and a 1.5 litre diesel. These hatchbacks and Ghosn’s $3000 car will make renault a serious player in india

Honda Siel:

Small car Jazz:

* Honda’s upcoming small car -jazz will be powered by a 1.2 litre engine specifically for the Indian market – it uses a 1.3 and 1.5 litre internationally. With a price expected to be around Rs 6 lakh, the Jazz hatchback is likely to be positioned against skoda’s Fabia.

Honda’s another small car:

Honda Siel Cars India plans to have at least two small cars in its portfolio. Other than the premium hatch Jazz, the additional, India-specific small car will be in the B-segment, in the Rs 3 lakh-plus price category.

Honda’s MPV to take on Toyota Innova:

* Honda Siel Cars India (HSCI) is eyeing diesel options for its MPV debut in India.MPV – Multi Purpose Vehicle is currently dominated by diesel models such as Tata Safari,Mahindra Scorpio, Toyota Innova and Chevrolet Tavera. Hence diesel has to be the natural choice for Honda but since has just only one 2.2-litre diesel engine available in the Accord and CR-V models for the European market, Honda plans to develop new generation diesel engines that will have very low emissions and modern technology. This new diesel is not just for developing markets but also for Europe too. It is important to recall that Honda has tested two multi-purpose vehicles (MPV) – Steam and Odyssey two years ago.

Civic Hybrid:

* Honda is planning to launch a hybrid version of the Civic in India next year. Hybrid cars, which use both a petrol engine and an electric motor, are usually more fuel-efficient and produce lower levels of emissions, making them more environmentally-friendly than the regular petrol or diesel vehicles. The Civic Hybrid will be priced at a substantial 60% premium to the conventional model(because of High import dutie of 105% on the completely-built-up units ), with a selling price of around Rs 20 lakh, compared to the Rs 12-13 lakh on road price for the petrol model. Honda Siel believes that there will be a demand for these cars due to their superior technology, low emissions and fuel efficiency, the volumes will be low, making local manufacture of this model unviable.

Bajaj:

It is already reported on Bajaj new small car, venture with Renault and its Triumph acquisition.

* Bajaj has finally hinted on its acquistion plan “Rajiv and team are looking not necessarily an ACQ, partial ACQ, could be initial collaboration, technical marketing production leading to equity major players in small 2 wheeler fields” said Rahul Bajaj, chairman, Bajaj Auto. Bajaj has enough resources to fund any such acquistion – Bajaj has access to almost Rs 6000 crore and currently it has zero debt. Even if raises Rs 10-15, 000 crore it can bear its impact on equity-debt ratio.

*Bajaj says the company hopes to be among the top 4 two wheeler companies in the world and attain the number one position in India by 2010. Bajaj now has 36% market share in the motorcycle category and is just 30,000 units shy of market leader Hero Honda’s sales for July.

* Final contours of the Bajaj- Renault alliance is expected to be announced in early 2008. A buzz about the venture is that Renault won’t use its brand name for the $3,000 car.

Bajaj’s new commuter bike the eXceed

For the price consciuos:

Bajaj has been trying to grab the No 1 slot from Hero Honda but absence of any pulsar like motorcycle in the commuter segment hinders the company for a long time. Infact Bajaj itself on the record said that it wants to exit the 100cc segment. It cited the low margin in 100cc forced it consider exiting the segment(in 125cc and above segment the margins are 15-20 per cent). Bajaj enjoys a market share of 47 per cent in the growing and profitable 125 cc and 150 cc segments against a smaller share of 24 per cent in the declining but larger 100 cc segment(The 100 cc segment has shrunk to 61% of the overall motorcycle market in July, from 73% a year ago. T). Bajaj knows that it cannot ignore 100cc customer if it wants to topple Hero Honda from the first position. Finally Bajaj has find a solution to meet both the conditions (atleast according to Bajaj). Bajaj has unveiled a new engine platform on August 10th, Bajaj bets the new engine (DTS-Si)is far superior to the widely used 4-stroke, 100cc engines. Bajaj will roll out a new 125 cc bike called ‘eXceed’ with this new engine in september. It will price the new bike ‘eXceed’ around Rs42000. With this aggresive price tag and new engine Bajaj is aiming to wean customers from the lower-margin 100 cc bikes, which is an extremely price-sensitive and crowded market dominated by market leader Hero Honda Motors Ltd. Bajaj will target the 100cc customer with the words eXceed – a bike with 100 cc mileage and 125 cc performance.

Bajaj claims the DTS-Si(Digital Twin Spark-Swirl induction) engine is returning mileage/fuel efficiency of 109 kilometres per litre under the ideal test conditions.Let’s see about Bajaj’s new DTS-SI.

Bajaj’s new DTS-SI:

Bajaj’s much popular Digital Twin Spark – ignition(DTS- i) is the mother technology for the latest Digital Twin Spark – Swirl induction or DTS-Si technology. At light loads on DTS-i engine Bajaj finds an opprtunity to improve the combustion even further. When burning lean Air-Fuel mixtures through the two spark plugs, the combustion conditions could be further improved by generating high turbulence in the combustion chamber. The DTSSi technology gives better fuel efficiency by introducing swirl induction to the DTSi engine to create turbulence in order to achieve efficient combustion. The technology has been in existence for a few decades, but is used on larger capacity diesel engines. Bajaj has applied for a patent for this new engine. Bajaj’s ‘eXceed’ would be priced close to Rs 42,000 (ex-factory).

Bajaj’s strategy:

Though Bajaj palns to position the new exceed placed between platina and 112cc Discover (currently bajaj sells the Platina for Rs33000 and Discover for Rs45000) , chances are heavy that exceed will eat into the sales of platina. Bajaj itself acknoweldges, it said “We expect cannibalisation of about 25,000-30,000 (of the expected 50,000) units. We are not so sensitive to the loss of Platina (Bajaj’s existing premium 100 cc bike) in favour of Exceed since Exceed would bring us better margins”. Bajaj expects to make about Rs 4,000 in additional operating profit on each Platina customer shifting to Exceed.

Bajaj plans to make 5000 units in August, 20,000 units in September at its Aurangabad plant in western Maharashtra state, which would be ramped up to 50,000 units. Production would be further raised when the company starts making the new bike at its plant in northern state of Uttarakhand some time in December or January. Bajaj indicated that the DTS-Si platform was flexible and could be expanded both to smaller and larger motorcycles as well adding that the bike would be offered for export in the next fiscal.

Triumph acquistion and Renault tie-up:

Bajaj declined to answer any queries on the company’s small car project or the plans to tie-up with UK-based Triumph for high end motorcycles. Bajaj informed that the company’s relationship with Japanese two-wheeler maker Kawasaki continues to be strong.

Here’s the specification of eXceed 125cc engine:

Type: Four stroke Natural Air-cooled
No. of cylinders : One
Bore: 54 mm
Stroke: 54.4 mm
Engine displacement : 124.58 cc
Compression ratio: 9.5+/- 0.5 : 1
Maximum Net Power: 9.53 PS( 7.01 kW) at 7000 rpm
Maximum Net Torque: 10.85 Nm at 5000rpm
Ignition system: Microprocessor controlled Digital CDI, with TRICS incorporated in Carburettor
Ignition Timing: Variable Timing with Multiple maps
Fuel: Unleaded Petrol, 87 RON minimum
Carburetor: Side draught type,
Ucal – Mikuni VM16 with Auto choke/ Keihin FIE PTE16, with Auto choke
Lubrication: Wet sump, forced
Clutch: Wet, mulit disc type.

Bajaj wins the credit for making an advertisement for a engine(first in india!) Here’s the DTS-SI engine ad

Hot Photos – August 2007

1) a) Tata’s new safari which will be powered by a 2.2L DICOR engine producing 140bhp.

b) Tata’s new sumo which will be powered by a 2.2L or 3L DICOR engine.The new sumo will shed boxy look instead new sumo will get more curves and lines for contemporary look. Both the new safari and sumo is expected in the end of 2007.

source:autocar india

Raining small cars:

We have already reported about tata’s one lakh car, Hyundai PA, Maruti Suzuki splash, Chevrolet Beat, skoda fabia, Fiat punto and Honda Jazz. With these Ford’s KA/Mazda 2, Toyota yaris, Mitsubishi ‘i’ and Volkswagen Polo based small cars are going to hit the Indian markets. Yes! Our Finance Minister’s dream of making India a small car hub is going to be happen very soon. But as Ford fears uncertainity over policies may result in one sided advantage.(It is believed that in the 2008 budget, a new small car regulation is likely to be stated. According to the new regulation, a car will be estimated as small car if it satisfies four metre length i.e the current restricition on cubic capacity(1.2L for petrol and 1.5L for diesel may be abolished.

Here’s a preview of cars you may see in indian roads soon. These photos may be speculative and some of these cars may hit our shores only by 2009, however we will bring you more information about these small cars as we passby.

3) Ford’s new small car for india may build on its popular hatches ‘KA ‘ or ‘Mazda 2’. Mazda2 powered by a DOHC 1.3-liter engine and a peppy 1.4-liter diesel engine may be the Ford’s indian small car..

4) Another option for Ford is introducing its european hatch ‘KA’. Ford’s KA has an interesting connection with Fiat’s 500 – the disney car. Ford co-develops the new ‘KA’ with Fiat infact the new KA is being produced in poland along with the new 500. Expected to be rolled out early 2008 in Europe may be available in India in 2009. A artist of carmagazine impression of Ford’s KA suits best for indian market.

5) MItsubishi is seriously mulling for its debut in small car segment. It may choose ‘i’ for its entry in volume segment.

Mitsubishi’s ‘i’ mall is less than 3.4 metres long and1.48 metres wide but because of clever engineering it has ample space to seat four and is loaded with abundance of equipment(auto transmission, climate control, electric windows and folding door mirrors). For Indian version Mitsubishi may use this ‘i’ platform or just shed this expensive features to suit indian market

6) Toyota’s is seriously mulling on developing a small car for emerging markets like India, Russia, China and Brazil. Toyota’s small car may be built on the ‘Yaris’ platform.

7) Volkswagen will join the small car party through its small car to be unveiled in 2007 Frankfurt Motor show. Volkswagen small car will get its cues from its VW popular hatchback polo.

8) Chevrolet’s refurbished Aveo priced between 5.9 lakh and Rs 6.8 lakh. General Motors also introduced a maintenance programme called ‘Chevrolet Promise’ for all its models that would allow the customers to reclaim or get a refund from the company if the cost exceeds or is less than the amount spent by the customer on the package. The package is valid for three years or 45,000 km and would range between Rs 13,000 and Rs 27,000. (For Chevrolet Spark, the fixed maintenance cost set by GM is Rs 13,000. For Chevy UVA, it is Rs 15,000r, Optra Petrol and SRV its Rs 18,000 and Optra Magnum Diesel Rs 27,000. So much so, even the erstwhile Daewoo’s Matiz owners can get some benefits in coming days). General Motors India plans to source components worth of $250million from india but denied any plan of producing a small car below spark

9) Volkswagen Touareg SUV V6 will be available soon in India. With the Touareg SUV and passat sedan Volkswagen will build its brand in India. Till its 530 million dollar pune platn starts production.

10) Volvo XC90 will be available in india to take on Porsche cayenne

11) Volvo another offering for India -S80 sedan – expected to be priced around Rs40lakhs

12) BMW will add the X5 SUV to its Indian line-up soon

13) Honda civic hybrid may rule Indian roads soon. Civic hybrid will be priced around Rs20lakhs about 8lakhs more than the petrol Civic. For the premium you pay you will get more mileage and you will make our india greener.

14) Honda civic hybrid comes with the Honda hybrid technology Integrated Motor Assist system1.3-liter, 8-valve, i-VTEC 4-cylinder gasoline engine paired with a lightweight, high-output electric motor consists of a super-efficient. This combo power is mated with a CVT – continuously variable transmission.

For more visit Honda Civic hybrid Webpage

15) Volvo’s S80 reigns supreme in IIHS large luxury sedan side-impact crash tests, while the Mercedes E class got a fair rank in the test. What’s shocking is? BMW’s 5 series(world’s first carmaker to introduce head-protecting side-impact air bags) recently launched in India was ranked last in the test .

16) Suzuki officially released pictures of its next small car ‘splash’. Suzuki showcased splash concept in 2006 paris motor show and already spy pictures were taken by western media. Following Swift, Grand Vitara and SX4, Splash is the fourth all new Suzuki model within just three years, and it epitomises Suzuki’s ‘Way of Life!’ philosophy, underpinning its strategy of building cars that excite customers all over the world.

17) Thank you vikram rao(vicky.in reader) for sending us mail on suzuki’s new car. Yes vikram we are following the developements and waiting for more details at the frankfurt motor show

Suzuki plans to unveil a concept version of a new midsize sedan at the 2007 Frankfurt Auto Show in September. Suzuki plans to begin building the sedan in early 2009 for global markets. The concept is called Kizashi, said to be Japanese for “prelude.” Suzuki kizashi will take on Honda civic and Toyota corolla in india.The first phase of the new world strategy was implemented with the focus on ‘Sporty’, a philosophy that resulted in great success with the launch of Swift, Grand Vitara and SX4. The new Splash represents the second phase for Suzuki. the Kizashi represents the third phase of Suzuki’s world strategy. The theme for this third phase is ‘Status’, with the Kizashi guiding the way to a new direction for Suzuki, representing the continued upward breakthrough of Suzuki and its ability to offer a wider range of vehicles to customers. Suzuki plans to develop the Kizashi platform with a hatchback, a stationwagon and the sedan. Engine options might include a base 1.6-litre variable valve variant of the one found on the SX4, with close to 110 bhp and the 2.0-litre engine found on the Vitara, producing about 138 bhp. Suzuki might even offer the car with its 1900cc diesel engine obtained from Fiat, with over 128 bhp.

18) Yamaha has added another variant of gladiator – the gladiator grafity

source: Yamaha India

BMW 320d and Indian luxury car market

1) BMW 320d front view Indian luxury car market accounts for only 2-3% of total car sales and Indian luxury market is at very nascent stage when compared to china but what lures International majors is the luxury market is growing at 28% higher than 17% growth of small car. More than 5,000 luxury cars were sold in 2006, up from 3,000 in 2005 and just 1,000 in 2004.

2) BMW 320d side view Mercedes, BMW, Porche, Audi, Lamborghini and Rolls Royce are prominent players in this segment Aston Martin and Ferrari are in the process of following suit. Luxury car makers are lining up more models and revising their sales target for india. Volvo plans to bring XC90 SUV and S80 luxury sedan and it plans to launch two additional models every year in order to expand its offering in the Indian market. BMW , Mercs and Audi are finding difficult to meet the growing demand. Most of their models have more than 3 months of waiting period for delivery.

3) BMW 320d rear view: BMW’s 3 series has three variants- the 320d diesel variant, entry level 320i and top end 325i petrol versions. The 3 series is priced between Rs 26.7 lakh and Rs 32.2 lakh outsold Mercs C class since its debut. Mercedes seems to be losing its battle with BMW in India. While Mercedes will counter BMW’s threat with its next generation C class which plans to bring india by 2008, BMW plans upgrade its existing 3-series model by introducing the 330i in the near future.

4) BMW 3 series 320d tail lamp and alloy wheels: A liberal economic regime during the past 15 years has seen the rich becoming richer and the richer even wealthier. For India’s growing club of millionaires fuel efficiency and price tags are no longer the deciding factors, its design and Brand counts more. Because of this luxury and super luxury segments are expanding exponentially. Now Indians want to wait for new generation cars as they want to be treated similar to an European or an American.

5) BMW 3 series 320d – stylish headlamp and BMW’s characteristic snout: BMW has revised its sales target for india from 1000 to 1200 units a year considering the good response. Till June-end we have sold a combined of 424 units of our 3 and 7 series sedans. While the 3 series has been BMW’s growth driver its super luxury sedan 7 Series, which is priced at Rs 74 lakh upto Rs 1.25 crore, is expected to sell about 170 units this year. BMW has announced the market launch of its premium luxury sedan 5 Series with prices starting at Rs 37 lakh and going up to Rs 45 lakh (ex-showroom) in July. BMW’s new look 7-series is most likely to be introduced in India by the 2008-end. BMW also plans to launch its sports coupe car M Series M3 and M5 by next year. BMW already has eight dealers and by the end of the 2009, it plans to have 12 dealers.

catch up the interiors and exteriors of newly launched BMW 5 series soon in our pictorial review of BMW 523i

Suzuki Hayabusa GSX1300R Pictorial Review 1

Suzuki plans to roll out its high end bikes in India as government eases the norms for bikes having more than 800cc. Which are the bikes suzuki will bring to india? Suzuki’s natural choice will be the Hayabusa as Hayabusa is already a popular motorcycle icon in India. Infact Suzuki have gone on record saying the Hayabusa and the GSX-R1000 are being considered for direct import launches in India and the programme could bear fruit as early as March 2008. The 2006 model of Hayubusa is popularly known as GSX 1300RK6 and the 2007 variant of Hayabusa is called as GSX 1300RZK7. Suzuki has announced the details of 2008 hayabusa recently. Suzuki is expected to price its Hayabusa around the Rs 11 lakh mark in India.

1) Suzuki Hayabusa GSX1300R – world’s fastest bike (Claimed top speed of about 321KPH for 1999 models)

2) Suzuki Hayabusa GSX 1300R is challenged by BMW K1200S, Kawasaki ZX-12R and Kawasaki ZX-14R

3) Suzuki Hayabusa GSX 1300R side view – Hayabusa’s 1300cc engine produces 178bhp at 9800rpm and 138Nm at 10200rpm(claimed figures). The 2008 model is expected to powered by an engine which produces 200bhp and 150Nm(believe me its a motorcyle)

4) Suzuki Hayabusa GSX 1300R rear view – not so exciting as front but twin diff and fatter rear tyre makes it attractive

5) Suzuki Hayabusa GSX 1300R voluminous front fairing which extends upto gear lever and covers the engine and the radiator

6) Suzuki Hayabusa GSX 1300R features a wet multi-plate hydraulic clutch and a six speed gearbox.Transmission is through conventional chain mechanism. You can reach 135kph in first gear itself

7) Suzuki Hayabusa GSX 1300R front scoop: twin headlight (65KW and 55KW) and 21W turn light

8) Suzuki Hayabusa GSX 1300R sun visor and sporty rear view mirrors

9) Suzuki Hayabusa GSX 1300R stylish sporty tank with good knee recess

more pictures of Hayabusa in following reviews

Hot news – August 2007

* Chennai-based Tractors and Farm Equipment (TAFE), India’s second-largest tractor manufacturer, is eyeing a big-ticket acquisition in Europe.TAFE is eyeing Yugoslavian tractor majors Industrija Masina Traktora and Industrija Motora Rakovica, one of the largest tractor makers in Serbia. TAFE is aiming at acquiring majority stake in both the firms, and could also go in for a 100% buyout, as both enjoy major marketshare in East Europe. If it goes through the deal, TAFE would have to fork out around Rs 1,000 crore. Both companies have a production capacity of around 25,000 units each. The last acquisition by TAFE was of Delhi-based Eicher tractors in 2005 for Rs 310 crore. TAFE holds around 23% marketshare in the domestic tractor market.

* Maruti Suzuki has announced a special offer to increase its sales and to counter impact of high interest on sales. The offer named “Smile India Smile” offer, which runs from Aug 1-15, offers discounts ranging from 7,000-30,000 rupees on several models, including its best-selling Alto and the Esteem sedan.

* Tata Motors is setting up the largest fully-built bus plant in the world, which will make it one of the leading global bus manufacturers. Tata Motors has identified Karnataka and Goa as possible locations for the proposed facility, but is yet to finalise the location. The proposed plant is likely to come up in 2008. Tata is chasing a sales target of 50,000-60,000 passenger carriers in the next few years to emerge the largest player in terms of units, ahead of leading bus manufacturers like DailmerChrysler and Volvo

* NDTV profit reported Tata and Mahindra may enter a swap deal under which Mahindra which has been on a buying spree for scaling up his auto components business is believed to have turned his attention to Tata group’s auto components arm, Tata Auto Component Systems or TACO. It is learned that Mahindras are said to be in negotiations with the Tata group’s top brass to take control of TACO. Mahindra & Mahindra’s (M&M) auto component business is pegged at close to Rs 3,000 crore and TACO with revenues of close to Rs 2,800 crore will almost double M&M’s ancillary business.

The interesting twist in the deal is Tatas could take charge of the Mahindra group’s IT flagship Tech Mahindra in lieu of giving up control over the auto components company. While Anand Mahindra denies any plans to let go of Tech Mahindra, merchant banking sources claim that the negotiations are currently on over valuations and the deal could be routed through Tata Consultancy Services (TCS). Tech Mahindra has a market cap of around Rs 16,000 crore with M&M’s stake valued at over Rs 6,000 crore. Valuation of the closely held TACO, on the other hand, is pegged at around Rs 3,000 crore, if a deal finally materialises, Tatas will pay up for the difference. For More

* Mahindra is planing to invest around Rs 60 crore to set up six ‘FirstChoice’ stores, the company’s first multi-brand used car superstores, in the next 15-18 months. FirstChoice is a three-way joint venture between Mahindra Group, HDFC and Sah and Sanghi. Mahindra group will hold a 75 per cent stake in the venture. Mahindra’s existing used car subsidiary Automartindia Ltd has been renamed ‘FirstChoice’ and Mahindra palns to expand this new initiative to more than 200 stores in next 2-3 years. Maruti similar intitative “true value intitiative” sells around 75000 cars a year and Tata motors is also planning to enter this robust used car market.

* TVS Motor Company has decided to launch 11 new models by April 2008. The new product line includes motorcycles in both the entry level and the high-volume executive segment, a scooterette and an electric scooter, besides two-stroke and four-stroke three-wheelers. Of the 11 new products TVS announced seven two wheelers, a two-stroke and four-stroke three-wheelers is for the Indian market and two for Indonesia. With the proposed launch of 11 products, TVS wishes to flex its muscles as it said “The investments we made in quality and technology will be put on actual display from now on”.

* Founders of truck maker Eicher Motors Ltd are exploring selling their majority holding to a global commercial vehicle maker. Though international truck makers Daimler and Hyundai Motor were eyeing a stake in Eicher, Daimler which already holds a 3.56 per cent indirect stake in the company, is tipped to be the front runner. The very important isssue is Royal Enfield India’s only cult bike maker is a subsidiary of Eicher. Is Royal Enfield will change hands? we have to wait!

Maruti Suzuki Grand Vitara Pictorial Review 2

1) Maruti Suzuki Grand Vitara muscular front with prominent grille, rectangular headlamps and spruced up fenders.

2) The four wheel drive(4WD) Maruti Suzuki Grand Vitara’s is assisted by powerful headlamps which can illuminate even the hard terrain.

3) Maruti Suzuki Grand Vitara rear – hard muscular cover and three dimensional tail lamp enhances the SUV look

4) Maruti Suzuki Grand Vitara SUV in the front & rear becomes a soft roader from the side. Absence of definite shoulder lines, body cladding and footsteps is the cause.

5) Maruti Suzuki Grand Vitara projected dials in day and night

6) Maruti Suzuki Grand Vitara center console in day and night. Neatly placed controls but only has a single CD player also no great gizmos

P.S:Our sincere thanks to M.Jayakumar, ABT Maruti (massales@abtlimited.com), Guindy, Chennai (9994475222).

Maruti Suzuki Grand Vitara Pictorial Review 1

1) Maruti Suzuki Grand Vitara front view

2) Maruti Suzuki Grand Vitara side view – comes in two variants manual and automatic priced Rs14.05-15.05lakh

3) Maruti Suzuki Grand Vitara rear view – ~~2.3l engine which produces 161bhp at 5800rpm and 223Nm at 4200rpm powers vitara~~ 2.0L engine which produces 120 bhp @ 5500 rpm of peak power and a peak torque of 170 Nm @ 3500 rpm. powers vitara

4) Maruti Suzuki Grand Vitara with driver and passenger door open – safety features of new vitara includes ABS with EBD, two airbags and Brake assist.

5) Maruti Suzuki Grand Vitara with rear door open show its 60:40 split seats a tool kit with a small light embed in the boot

6) Maruti Suzuki Grand Vitara comes with ample door space for driver , enough trunk volume which can be varied from 556-955l but poor door pockets in rear

7) Maruti Suzuki Grand Vitara – lots of storage spaces, not so impressive gear knob and has only one sun glass holder . Vitara features steering mounted controls (no leather wrap).

Grand Vitara’s night shoot out Maruti Suzuki Grand Vitara Pictorial Review 2

P.S:Our sincere thanks to M.Jayakumar, ABT Maruti (massales@abtlimited.com), Guindy, Chennai (9994475222).

Tata Motors quarter(Q1) result

record profit from Tata..

While other manufacturers are reporting record loss, Tata Motors reported a 22 percent rise in quarterly standalone net profit, increased by 22% to Rs.466.76 crores, compared to Rs.381.85 crores in the corresponding quarter last year.Tata Motors standalone revenues (net of excise) was Rs.6056.82 crores, an increase of 5% compared to Rs.5749.56 crores in the corresponding quarter last year. Tata Motors profit grew faster than sales, because of a foreign exchange gain of about Rs 2 billion. Tata has able to offset high input costs and high interest rate through foreign exchange gains, cost-cutting and strong sales of light trucks and passenger vehicles. However tata motors operating margins fell to 9.0 percent from 11.5 a year ago, excluding a foreign exchange gain in the quarter.

Tata Motors sold 127,361 units during the quarter, a 1.4 percent rise from a year earlier. On domestic front sales of commercial vehicles decreased by 2% to 61,633 units, while domestic sales of passenger vehicles at 52,573 units grew by 5%.

Also while other manufacturers suffered because of strengthening of rupee against US dollar Tata motors benefitted from it, the company gained from the weakening of the US dollar against currencies in markets that buy Tata products. Tata sells cars, buses, trucks and utility vehicles in Africa, the Middle East, and in Asia and Australia. Tata Motors exported 13,889 vehicles during the first quarter, a growth of 6% over 13,161 units in the corresponding quarter last year.

Street expectation:

Tata Motors result beat a Reuters poll forecast for a net profit of 357 crore rupees on sales of 5964 crores.As a result of this incredible result, Tata Motors full-year net profit is forecast to rise 10 percent to Rs2061 crores according to Reuters Estimates.

Tata’s word on high interest rate:

Till the time that interest rates soften substantially, sentiment for commercial vehicles won’t improve,” Kant said. Meanwhile Reserve Bank of India(RBI) held official rates steady at a policy review on Tuesday but raised reserve requirements for banks(CRR – Cash Reserve Ratio by 50bps), which will reduce funds available for lending.

Share movement:

Tata motors shares fell 8 per cent in the June quarter, trailing a 2.7 percent fall for the sector index and a 12 per cent gain for the main index. Tata Motors shares, valued at more than $7 billion, trade at 14.2 times forecast earnings, compared to 19.5 times for Mahindra.Shares of the company lost Rs 7.90, or 1.12%, to settle at Rs 699.30, at the BSE. The total volume of shares traded was 1,367,036.

Happenings in June quarter(Q1):

During the quarter, Tata Motors launched several new vehicles. In passenger vehicles, the company has introduced the Indigo LS, an entry level common rail diesel (DICOR) offering in the sedan range, expanded the long wheel base Indigo XL’s range with the Indigo XL Classic, and launched an upgraded range of Tata Spacio, its entry level utility vehicle. Tata Motors also introduced a new range of commercial vehicles for passenger transportation, the Magic and the Winger, which are expected to create new segments. The mini-truck, Ace, has been introduced in Nepal. Tata Motors has also received an order from the Delhi Transport Corporation to supply 500 state-of-the-art low-floor CNG-propelled buses, which will begin to be delivered from the second half of the financial year. In May Tata Motors recommended a dividend of 150%, or Rs 15 a share, on 385,381,536 ordinary shares.

Tata’s investment plans and products:

Tata Motors will roll out a 2.2L Safari SUV and a refurbished Sumo this quarter.

Tata Motors has drawn up a capital spending programme of Rs 12,000 crore over the next three years. To part-finance the expansion, it has already raised $490 million through foreign currency convertible bonds (FCCBs). The new models to be launched by the company will be inclusive of; the one lakh car, the new generation Indica and Indigo, cross-over models that the company had launched at the Geneva Auto show, new pick-up trucks to be developed in Thailand and a new range of trucks. Tata has decided to invest USD 38 million to launch its first production base in Thailand(world’s largest light pick-up market). Tata Motors is also planning to erect an assembly plant for its vehicles in South Africa. Currently Tata Motors is bidding to buy luxury British car brands Jaguar and Land Rover from US car maker Ford.

is auto majors betting on film stars?

Monsoon rains will make demand for motors more sluggish so auto companies are set to step on the marketing gas by roping in film stars as their brand ambassadors. Traditionally starting july this quarter is believed to be lean period for both two and four wheelers so a dash of filmy spice isn’t at all unwelcome. Particularly in two-wheeler sector where largest seller motorcycles are already clocking a negative growth. Things aren’t expected to improve till September kicks in depreciation driven demand therefore auto majors are opting for film stars to counter the drop in sales. And with our “men in blue” battling billion battles ranging from form, fortune and future(yet to return sucessful from england), film stars has become the only destination for auto manufacturers. Particularly in the ungeared scooter/scooterette segment. The latest to join the brandwagon is TVS which has just announced that it has signed on popular southern actress Trisha Krishnan as its brand ambassador for the Scooty PEP. According to the TVS motors, Trisha, who is currently one of the most popular actresses in South, represents “confidence, style and contemporariness” which is what she will stand for as the brand ambassador for Scooty PEP. Like Hero Honda’s Pleasure, the Scooty PEP is also targetted at young college girls and working women. A four stroke, sub-100 CC scooterette, it’s positioned as a convenient and contemporary transport option for women.

TVS of course isn’t the only company to be courting celluloid damsels. Hero Honda has roped in Priyanka Chopra to be brand ambassador for Pleasure.TVS’s earlier brand ambassador for PEP was the zippy Priety Zinta while other bike-makers like Yamaha have John Abraham as their style icons. Roping in cine stars as brand ambassadors isn’t new in the auto industry, particularly in two wheelers. But so far, it was only Hero Honda (Hrithik Roshan) and occasionally Bajaj Auto (remember Jackie Chan) that went for the starstudded strategy. Now, though, everyone is jumping on to the brandwagon. General Motors has Saif Ali Khan and Rani Mukherjee, Toyota had Aamir Khan and Hyundai has Sania mirza, Shah Rukh Khan and Priety Zinta. The preponderance of cine stars is understandable given that many saleable cricketers are now out of marketer favour. TVS for instance used Sachin Tendulkar for the Victor. And Hero Honda has a whole bunch of cricketers signed on for specific commercials.

source: Economictimes