* ABS is soon to become mandatory for all vehicles in India soon. Installing ABS could become mandatory in the next few months since discussions between vehicle manufacturers, government and other stakeholders are already in an advanced stage. As part of the Natrip(National Automotive Testing and R&D Infrastructure Project) an ABS brake test pad is also coming up at the Vehicles Research and Development Establishment (VRDE), Ahmednagar, near Pune. This facility is expected to be operational by 2009.Currently seatbelts are mandatory for Indian cars.
* Indian Government is all set to make tough crash standards for Indian cars. Currently, the steering-impact test and the seat-belt anchorage test are mandatory. But as these are far lighter than the international norm where cars have to undergo frontal, frontal-off set and side-on impact crash safety tests before being launched. Hence the government is aligning itself with the standards of Economic Commission of Europe to conduct the crash tests. The ministry of road transport and highways has finalised the draft ‘automotive industry standards’ for the new crash tests (frontal crash and frontal off-set and side-on impact crash safety tests), is awaiting adequate testing facilities. The testing facilities are coming up at ARAI in Pune and the different centres of National Automotive Testing & R&D Infrastructure Project. These tough safety norms may come into effect by 2008-end or early 2009, will result in phasing out of popular models such as Maruti 800, Esteem, Versa, Omni, Ford Ikon, Tata Indica and Hindustan Ambassador
* Hindustan is investing over Rs 295 crore for upgrading its Uttarapara plant which makes Ambassador cars. It seems that Hindustan Motors does not want to phase out Ambassador “We want to make the car ready for 2009 safety norms as well as for new emission norms,” said Hindustan Motors. Sales of Ambassador has not seen a dip despite stiff competition, it has in fact seen some marginal increase every year. During 2006, it sold about 14,000 cars and is expected to sell 15,000 units this year. Hence Hindustan Motors is planning to launch new models of the car which can be sold even after 2009.
* Higher-end version of Tata’s 1 lakh car will have Manual transmission, air-conditioning, power windows and power steering.
* UK-based Ultra Motor has signed an exclusive agreement with Reliance Retail for distribution of its light electric vehicle (LEV) through the latter’s outlets in the country. Ultra Motors is jointly rolling out electric bikes and scooters in india with the Hero group. Ultra Motor, in collaboration with Hero Cycles, is also looking to set up after-sales services and marketing centres.
* Tata Motors plans to re-enter the UK market with the next generation models(indica v3, new safari,new sumo and next generation indigo) in 2008. Tata earlier sold its flagship compact car Indica under the ‘Rover City’ badge until 2005.The Indica, known to Europeans as City Rover, was rolled out in November 2003 but did not succeed in the market.City Rover was launched in a price band of 6,500-8,500 pounds.Unlike 2003 this time Tata will sell the indica’s on its own.
* Besides chasing Jaguar and Land Rover, Tata Motors is in discussions about opening an automotive research and development centre which would create more than 1,000 jobs in UK. Tata Motors is talking to Advantage West Midlands, the regional development agency which owns the former Marconi site at Ansty.
* Hyundai India has decided to phase out its elantra sedan on account of dipping sales. Hyundai also mulls to replace the Tucson SUV with the santa fe. Sales of the Elantra have dipped substantially over the last two years and Hyundai sold only 2 units of the vehicle in August.Elantra is currently available in India in two variants — 1.8 litre DOHC petrol engine and a 2 litre CRDI diesel engine at prices ranging between Rs 7.26 and Rs 9.82 lakh (ex-showroom Delhi).Tucson’s has been a similar story and the car has not been able to match up to rivals like Honda CR-V and Ford Endeavour. Hyundai has sold just 123 units of Tucson in this fiscal so far, as against 197 units last year.
* Hyundai has finally made a fullstop to the rumours on santro diesel. “We have no plans of a diesel version of the Santro” HMIL managing director H S Lheem said. Non-availability of a 1.1 litre diesel engine is said to be the prime reason for shelving the plans of a diesel Santro by the manufacturer. But as expected, after tasting the sucess of CNG Santro Hyundai plans LPG variant of santro. The LPG Santro is expected to be out by the first half of 2008.Similar to Wagon R Duo, Santro may also sport a similar 32 litre LPG toroidal.
* Renault plans to start assembling its low-cost sedan Logan in South Africa in early 2008. Renault will source components from Indian manufacturers currently supplying to the company’s joint venture Mahindra Renault Ltd in India that produces the car in India. Indian auto component makers have become key suppliers to global companies leveraging their high quality and low costs. Exports of auto components from India increased 33% to $2.8 billion (Rs12,880 crore then) in 2006-07 from $2.1 billion a year ago, according to the Automotive Component Manufacturers Association of India (Acma). The Logan will likely be assembled at Nissan’s plant in Rosslyn near Pretoria in South Africa and the first car will roll out of this plant in 2008.
* Renault and Nissan also announced plans on Thursday to open a new business centre or back office in Chennai that will employ more than 1,500 workers by 2010 and support the two companies’ global engineering, purchasing, design, cost management and information systems operations. Renault has opened a design centre in India in June 2007 as it seeks a bigger presence in emerging markets. Renault Design India will help design vehicles for the fast-growing local market as well other regional markets, from the initial project design to the final mock-up of a vehicle.The indian design centre has already worked on a couple of concept car designs and is researching the use of premium fabrics in India. It will also design and develop a range of automobile accessories. The Mumbai centre for Renault will be its fourth such facility globally. Apart from South Korea, France and Spain.
* Liquor baron Vijay Mallya has completed the 90 million euro deal to acquire 50 per cent stake in Spyker-Ferrari Formula One, thereby making him the co-owner of the team.
* Ford ruled out mazda for Indian market and said it has no plans to bring the Focus sedan to India in the near future. Ford India is considering a powertrain facility in India as opposed to import. Currently Ford imports engines from Thailand and Europe.
* Global market insight and information group TNS has found out that the best way to boost car sales is to bombard advertisements on the television.This was followed by newspaper advertisements, opinion or influence of family members, friends and colleagues, test drive and seeing product on road.Interestingly, the study found that in North India celebrity endorsements seemed to have a high influence on purchase decisions, while in the eastern region it was cricket sponsorships, kiosks and stand-up displays. Customers from southern part of the country were more influenced by magazine and web advertising,