Yamaha YZF R15 to be launched in India on the 11th of June

Yes, the Yamaha YZF R15 is coming next month!

The long-awaited Yamaha YZF R15 is due to be launched on the 11th of June. For ages, Yamaha have been promising that they will move away from low-cost, low-capacity, utilitarian commuter bikes in India, and move on to bigger, sportier and more stylish machinery. Now, the bike is ready and will be shown to the Indian automotive press on the 11th of June. Track riding/testing sessions with the bike have also been scheduled for some sections of the media.

While the Rs 12 lakh Yamaha R1 (which is imported in India as a CBU, hence the stratospheric price tag!) may not be for everyone, the YZF R15, which borrows styling cues from its elder brother, may well be within the reach of the Indian middle-class.

The R15 will be powered by a SOHC, four-valve, liquid-cooled, single-cylinder 150cc engine, that makes 20 horsepower. The Bajaj Pulsar 220 DTS-Fi makes a bit more, but the Yamaha will pack in more technology and almost certainly much better, more consistent build quality.

The bike’s engine will have a cylinder made of die-cast aluminium-silicon alloy, which means advantages of light weight and efficient heat dissipation. The R15 will also get forged pistons, six-speed gearbox, disc brakes front and rear, 17-inch alloy wheels with tubeless tyres, and aluminium beam frame. Those who’ve worked on Yamaha’s India project for the R15 say this will be the first real high-performance sports 150 to be launched in the Indian market. At approximately Rs 80,000 the bike will be affordable too.

More on the Yamaha YZF R15 when it’s launched on the 11th of June.

Car manufacturers, auto component makers struggling with rising steel prices

Vehicle manufacturers in India are currently under pressure from vendors, who want to raise component prices to offset the relentless increase in steel prices. If component vendors do increase prices, vehicle manufacturers may also be forced to increase prices, with the consumer having to end up bearing the brunt of it all.

Steel producers did announce a price cut last week, but it wasn’t for the alloys of steel used by automotive components manufacturers. ‘The alloy steel has not been impacted by the price cuts at all, leaving the industry sandwiched between fixed-price supply contracts on one hand and the rising prices of steel on the other, which has severely impacted on the profitability of the industry,’ says Sanjay Labroo, president, ACMA.

Chrysler to source Jeep Wrangler seats from Delhi-based Krishna Maruti

The all-American Jeep Wranger will have Indian-made seats by mid-2009!

In a bid to source more parts from lower-cost countries like India and China, US-based carmaker Chrysler will soon start sourcing seats for its famous Jeep Wrangler, from Delhi-based Krishna Maruti Ltd (KML). Chrysler will order seats worth about Rs 400 crore, and the seats would be fitted on 120,000 vehicles per annum.

KML, a JV between Maruti Udyog and Ashok Kapur & Associates, is one of South Asia’s largest seating systems manufacturer. The company will ship seating sub-assemblies to Ohio, in the US, where the Jeep Wrangler is manufactured. The Indian-made seats should find their way into American Jeep Wranglers by June 2009.

While Chrysler’s order may lead to even bigger and better things for KML, in the US market, Chrysler is also talking to various auto manufacturers in India. The American company wants to explore the possibility of setting up JVs with Indian companies, for making low-cost cars for emerging markets. The company wants to expand its traditional user base in America and also establishing a presence in new and growing markets like India, China, South America and Eastern Europe.

Former parent Daimler sold its 80% stake in Chrysler last year to Cerberus Capital Management, a private equity investment firm that paid US$7.4 billion to buy Chrysler ownership. The DaimlerChrysler merger lasted for nine years, but was never very successful.

GM India to enter used car business

You should soon be able to buy certified, pre-owned cars from General Motors dealerships in the country. These cars are likely to come with a limited warranty

Everybody from Maruti to Mercedes-Benz has already gotten into the used car business, so why not General Motors. Indeed, General Motors India (GMI) is now in the process of figuring out how it can take a slice of the lucrative used car business in the country.

Ankush Arora, GMI vice-president - sales and marketing, says the company will roll out its user car business strategy in the next few months. This, apparently, would be to make sure there’s no slowdown in the company’s sales growth. At 71%, GMI posted the highest growth in the Indian car industry in FY08.

In all likelihood, GMI’s used car model will involve its dealerships evaluating and buying used cars, which would then be refurbished and sold to customers looking for certified pre-owned cars that come with a limited warranty. Buyers should also be able to trade in older/smaller GMI cars for newer/bigger cars from the GMI lineup.

With new cars in its lineup – the U-VA and Spark small cars, the diesel Optra and the Captiva SUV – GMI has been on an aggressive growth path, and the company is now also looking at expanding its dealership network in smaller towns and cities.

Volvo stake in Eicher approved by the FIPB, FM

Volvo wants 8.1% of Eicher

The finance minister, Mr Chidambaram and the Foreign Investment Promotion Board (FIPB) have approved Volvo’s proposal to acquire 8.1% of Eicher Motors Ltd. Volvo, the world’s second-largest manufacturer of trucks, had announced last year that it wanted to buy a stake in Eicher Motors, India’s third-biggest truck maker.

India is the world’s fifth-largest market in the world for trucks, and Volvo, by forming a JV with Eicher, wants to strengthen its presence in the country and increase its market share.

Since it involves more than Rupees six billion, the Swedish company’s proposal will now be referred to a cabinet panel on economic affairs.

Tata Motors introduces the new Indica V2 Xeta LPG

The Indica V2 Xeta LPG - prices start at Rs 3.27 lakh, ex-showroom Delhi

In a bid to provide some relief to car buyers who’re scared of rising petrol prices, Tata Motors has announced the launch of the Indica V2 Xeta LPG. The new Indica runs on LPG, but can also be run on petrol in case a user runs out of gas and/or if LPG is not available.

Tata Motors claim excellent fuel efficiency for the new Indica variant, and also says that running the car on LPG reduces its CO2 emissions by 10 percent. The engine is Tata’s proven 1.2-litre MPFI unit, but with two ECUs instead of the usual one. This, of course, is to allow the car to run on both petrol and LPG.

In LPG mode, the engine makes 62bhp at 5000rpm, while in petrol mode, power is a bit higher at 65bhp@5000rpm. A torque figure of 102Nm@2600rpm means excellent tractability and pulling power at low speeds, with a full load and with the AC switched on.

The LPG Indica’s engine meets BSIII emission norms, and it can be upgraded to meet Euro IV norms. The car will be available in GLE and GLS versions, with prices ranging between Rs 3.27 lakh to Rs 3.42 lakh, ex-showroom Delhi.

Sona Koyo: Growth slowdown in FY09

Sona Koyo Steering Systems expects slower sales growth in FY09, as a result of a tight monetary policy hurting car demand. However, the company is hopeful of better margins on increasing local sourcing.

‘We expect a 10-12 percent growth in sales in 2008-09,’ said Surinder Kapur, chairman and MD, Sona Koyo. For FY 2007-08, Sona Koyo's net sales rose 17.7 percent on year to Rs 684 crore. The company expects better margins in the current fiscal, due to increased local sourcing for its column type electric power steering system, which makes up about 30 percent of its annual sales.

Rane NSK Steering Systems Ltd inaugurates steering column plant at Bawal, Haryana

Rane NSK Steering Systems Ltd (RNSSL), one of India's leading Steering System makers, today inaugurated a new, state-of-the-art production plant at Bawal, Haryana, 80km southwest of Delhi. The ceremony was led by L Ganesh, chairman, Rane Group, and M Degawa, director and executive vice president, NSK Limited, Japan.

RNSSL has invested Rs 377 million in the new facility, with initial annual capacity to produce 200,000 electric power steering systems for vehicle assembly plants in the region. ‘We have decided to invest in this plant keeping in line with our overall strategic growth plans. RNSSL will grow in its chosen segments through expansion, upgraded technology and synergetic diversification. We are also expecting sales revenue of over Rs two billion targeted by the year 2010-11,’ said L Ganesh.

‘The key is close service to our customers in each of India's manufacturing regions. To overcome logistics challenges and offer minute-by-minute technical support, our plants must be close to the final assembly line. So this new Bawal plant will offer the kind of support our Chennai plants provide in South India,’ said M Degawa.

Completed in just eight months, the 3600sq.m plant offers a vast production area unobstructed by support pillars. Electricity needs have been reduced by maximizing the use of natural light and utilizing high efficiency air-conditioning throughout the building. The plant's state-of-the-art equipment has been built in Japan by NSK Limited.

The five-acre site in the Bawal Industrial Area also offers ample space for the company’s ambitious expansion plans. With contracts for new business already in hand, RNSSL plans several phases of additional investment.

Toyota Prius: Sales top 1 million mark

More than a million Prius cars have been sold worldwide, over the last 11 years!

Even as other carmakers are trying to hurry up and follow Toyota’s example, sales of the Toyota Prius – the world’s first mass-produced petrol-electric hybrid vehicle – have passed the one million mark. At the end of April this year, Toyota had sold approximately 1,028,000 units of the Prius.

While Toyota has no immediate plans of bringing the Prius to India (though Honda says it will get the Civic Hybrid here very soon!), the Prius is sold in more than 40 countries already. Toyota claims the Prius has significantly reduced vehicle CO2 emissions worldwide.

The Prius was launched in Japan in 1997, and was introduced in Europe, North America and other markets in 2000. In 2005, Toyota began the first overseas production of the Prius in Changchun, China. Sales of the Prius are also expected to start in South Korea, in the latter half of 2009.

The second-generation Prius, equipped with the Toyota Hybrid System II, was introduced in 2003. As part of its high-priority environment-management policy, Toyota has made a concerted effort to promote and popularise hybrid technology, chiefly through the Prius. Toyota aims to sell one million or more hybrid vehicles annually, as early as possible, in the 2010s.

Tata Motors to compete for US$10 million Progressive Automotive X PRIZE

After the Nano, Tata Motors is now going for EVs and hybrids...

Tata Motors, along with 70 other automotive companies from around the world, will be competing for the Progressive Insurance Automotive X PRIZE in a competition to create viable, safe and super fuel-efficient vehicles. Tata Motors’ British arm has signed an official Letter of Intent to compete for the X PRIZE, where the total prize money is US$10 million.

The Progressive Insurance Automotive X PRIZE is an independent and technology-neutral competition that’s open to teams that can design and build production-capable, 100mpg vehicles that people will want to buy and that meet market needs for price, size, capability, safety and performance in one of two classes: Mainstream and Alternative.

Mainstream vehicles will be required to carry four or more passengers, have four or more wheels, and allow for a 320km range. Alternative class vehicles will be required to carry two or more passengers, have no constraints on the number of wheels, and allow for a 160km range.

Jonathan Etherington, Principal Engineer at Tata Motors European Technical Centre (TMETC), will lead the Tata Motors team. Under Etherington's direction, the team intends to enter a pure e-drive micro car in the Alternative class and an electric hybrid vehicle in the Mainstream class.

‘We are so pleased that a diverse group of competitors intends to compete for the Progressive Automotive X PRIZE,’ said Don Foley, executive director of the Progressive Automotive X PRIZE. ‘With the first stage race only 17 months away and the price of crude oil now hovering around US$120 a barrel, consumer interest in the need for such a competition and a long term solution to fuel prices is rapidly growing,’ he added.

Beginning in September 2009, the Progressive Automotive X PRIZE will kick off a cross-country stage race in New York City, followed by nine other major markets throughout the US, in which competing vehicles will be tested and showcased in real world conditions. Organizers are now seeking cities to host the remaining stages of the competition.

Winners will be the vehicles that exceed 100mpg equivalent, fall under strict emissions caps and finish in the fastest time. The competition is scheduled to conclude in 2010. For more details, visit the X PRIZE official website here.