Nissan, NEC bet big on EVs, to mass produce automotive lithium-ion batteries

Nissan and Renault will start selling EVs in Japan and the US by 2010

Nissan Motor Co and the NEC Corp have tied up for the production of lithium-ion batteries, for hybrid and electric vehicles. Convinced that electric vehicles (EVs) are the future, the two companies will be spending close to US$200 million towards a building a new manufacturing unit in the Kanagawa Prefecture, south of Tokyo. Production of the li-ion batteries will start in early 2009.

The Automotive Energy Supply Corp (ASEC), an equally owned JV between Nissan and NEC was established last year, and this company will handle the lithium-ion batteries business. These batteries are smaller, lighter and longer lasting than the nickel-metal hydride batteries currently used in hybrid and electric cars.

Initial capacity at the Kanagawa Prefecture plant will be enough to cater to 10,000 EVs per annum, though capacity will be increased to six-fold in the future. AESC will ship batteries to Nissan and Renault, both of which plan to start selling electric cars in Japan and the United States by 2010. And India...? Well, we're sure our country can't be too far behind. Maybe the ASEC will sell some batteries to Chetan Maini, for the Reva...?

Skoda India to expand capacity, starts work on new small-car platform

This is the Skoda Joyster concept. It would be wonderful if the new Skoda small car for India could look something like this!

Skoda India has, apparently, started work on a new small car that would be engineered specifically for India and other developing markets. This all-new small car, which is likely to come out by the end of 2010, would be distinct from its Volkswagen cousin. Priced between Rs 3 – 5 lakh, the Skoda small car will be in the Spark/Santro/Wagon R territory.

Skoda has ambitious expansion plans for India, and the Czech company could introduce up to eight new cars here, within the next five years. The Skoda Octavia has done very well in the past, its successor, the Laura is doing well now, and sales of the new Fabia hatchback are almost certain to pick up fast.

Skoda India currently has an annual capacity of 30,000 cars, which it wants to increase significantly. By 2012, the company hopes to have sales of 100,000 cars per annum in the country. And to back up its growth plans, Skoda is working on capacity expansion at its Aurangabad factory. The company has already applied for the allotment of more land near its existing facility, where the Laura, Superb, Octavia and the Fabia are current being made.

Immediate plans include moving Fabia production to Volkswagen’s facility in Chakan. This would allow Skoda to launch the Roomster MUV in India next year, and later, the Fabia Combi estate, the new Superb and the Yeti SUV.

E-Fuel MicroFueler: Fuel crisis no more...?

Your own fuel pump, in own garage...

With fuel prices climbing up relentlessly, the big question is, what’s next? Electric vehicles? Hydrogen fuel-cell powered vehicles? According to the California, US-based company, E-Fuel Corporation, not necessarily. The company is betting big on its technology, which allows people to covert sugar into ethanol that’ll cost about Rs 10 per litre. Sounds too good to be true? Read on…

E-Fuel Corporation recently unveiled a device called the E-Fuel 100 MicroFueler, which is about the size of two large washing machines, and which uses sugar, yeast and water to make 100% pure ethanol at the push of a button. The 90kg machine uses raw sugar, a proprietary time-release yeast mixture and leftover whiskey – if you have any lying around – as its basic ingredients, from which it churns out ethanol. The MicroFueler even comes with its own pump and hose, so you can easily fill up your car or bike at home. And yes, almost any vehicle than can run on petrol, can also run on ethanol.

Its makers claim the MicroFueler will bring about a paradigm shift in motoring as we know it today. They liken to it the personal computer, saying that like the PC brought computing to the average household desktop, the MicroFueler will bring the fuel pump to every household. In the US, the MicroFueler costs the equivalent of about Rs four lakh, and those who’ve done the math say that after you’ve factored in the cost of sugar, yeast, water and electricity to run the machine, you’ll still end up getting fuel that’s much cheaper than what you buy at your neighbourhood pump. Would something like this, work in India? We don’t see why not!

For more details on the MicroFueler, visist the E-Fuel website here.

Mahindra announces price revision

Mahindra & Mahindra Ltd. (M&M) has announced a 1.5%-2.5% (Rs 3,450 - 21,000) upward revision in prices of its vehicles. The company says this has been necessitated by a significant increase in input costs. The increase in M&M’s vehicle prices will be effective from the 19th of May, 2008.

Hover Automotive to develop Nissan’s sales network setup in India

Nissan expects to have more than 50 dealerships in India by 2012, selling more than 100,000 vehicles per annum

Japanese carmaker, Nissan Motor Co has announced that it has appointed Hover Automotive India Private Ltd to develop its sales network in India, with the aim of establishing more than 50 dealerships by the year 2012, which will sell a total of more than 100,000 vehicles in that year.

‘Hover is a strategic partner that offers the necessary sales, marketing and dealer development expertise to ensure our success in India,’ Nissan Motor Executive Vice President Carlos Tavares said. Hover is a subsidiary of the Westmont Group, a global consortium with a diverse portfolio in hotels, real estate, customer service, brand management and marketing.

Hover’s operations in India will be led by Mumbai-based GM Singh, who has experience in car retail and rental franchises. Kevin Whalen, an entrepreneur with experience in developing dealer networks in the United States, will also be a part of the team.

With French company Renault holding a 44% stake in Nissan, Japan's third-biggest auto manufacturer, currently has five sales outlets in India, from where it sells the X-Trail SUV and the Teana luxury sedans, both imported as CBUs from Japan. Nissan sold 533 vehicles in India last year.

Nissan is looking has aggressive expansion plans for India, and the company expects to launch eight new cars here, including the Murano crossover, over the next five years. Apart from selling CBU imports, Nissan will also manufacture various models in India, at its upcoming plant near Chennai, where production is slated to start by 2010.

Magneti Marelli in talks with Endurance, Unitech, for auto parts manufacturing JVs

A Fiat Group subsidiary, Magneti Marelli is in talks with Endurance Technologies and Unitech Technologies for setting up of joint venture companies to manufacture auto components for four-wheelers. Magneti Marelli is expected to hold a 49% stake in both the JVs.

Endurance Technologies is an Aurangabad-based company that manufactures casting, suspension, transmission and braking products, with annual sales of Rs 1,265 crore from domestic operations and around Rs 770 crore from overseas operations. Its JV with Magneti is likely to be located in Maharashtra, and will manufacture automotive shock absorbers.

Magneti’s JV with Unitech is likely to be located near Delhi, and the company will manufacture electric/electronic components like automotive instrument clusters, for four-wheelers.

Magneti Marelli had a turnover of 5 billion euros in 2007, and the Italian company is a leader in the automotive systems and components space, supplying parts to leading carmakers in Europe and America. For more details on Magneti operations, visit their official website here.

ATMA seeks rubber cess waiver or reduction

In counter rising prices of natural rubber, the Automotive Tyre Manufacturers Association (ATMA) has requested that the government should waive or reduce cess on rubber, which would help ease the financial burden on tyre companies in India.

ATMA also suggested that the government should allow manufacturers to take full CENVAT on the total cess amount paid, against R&D expenses. ‘In view of the high prices of natural rubber during the last few years, charging of cess only adds to the input costs for the tyre sector,’ said Raghupati Singhania, who heads JK Tyre and who’s also the chairperson at ATMA.

Rubber prices have risen by 33.64 percent over the last one year. Current prices stand at Rs 120 per kilo, against Rs 89.79 per kilo a year ago. Plus, a cess of Rs 1.50 per kilo is also paid by tyre manufacturing companies. No wonder then that according to ATMA, rubber accounts for up to 42 percent of raw material cost of the tyre industry.

‘At such high prices, there is no justification for natural rubber growing interests to be supported by any cess. An increase of Rs 1 per kg on rubber adds to an incremental burden of Rs 49 crore on the tyre sector, taking into account the natural rubber consumption of 4.91 lakh tons by the sector,’ said Singhania.

According to Rubber Board data, of India’s total rubber consumption of 8.6 lakh tons in 2007-08, the tyre sector accounted for about 4.9 lakh tons.

Indian engineer wins automotive design award in Europe

Amrit Sharma has won an automotive design award for his work on the Ecosse ES1, an experimental high-speed motorcycle

Amrit Sharma, a PhD student of Indian origin, from the Department of Electrical and Electronic Engineering at the Imperial College London, has won a gold medal for automotive design at the Young European Arena of Research Awards.

The awards were announced at the Transport Research Arena conference in Slovenia last month, and Sharma won the award for his work on the Ecosse ES1, an experimental high-speed motorcycle. ‘I am extremely flattered to have taken home a gold medal. There were a lot of good entrants from across Europe and coming first out of a very strong field is an achievement,’ said Sharma.

Sharma worked on various mathematical models which show how air flowing over a bike can exert pressures on the vehicle, thus slowing it down and making it less efficient. New designs tested by Sharma’s model include rearranging the motorcycle’s front and rear suspension, moving the chain drive, and altering where the rider’s feet and upper body are located.

This creates an entirely new shape for the bike, which, according to tests, dramatically reduces the dragging effects of air flowing over the vehicle by approximately 50 percent, and helps increase its speed by 30 percent.

Microsoft and Hyundai-Kia to develop next generation of in-car infotainment

Microsoft and Hyundai-Kia are now working on your next car's 'infotainment' system...

Microsoft Corp. and the Hyundai-Kia Automotive Group (HKAG) have entered into a long-term agreement to co-develop the next generation of in-car infotainment systems. Bill Gates, chairman of Microsoft, and Euisun Chung, president of HKAG, were present as Martin Thall, general manager of Microsoft’s Automotive Business Unit, and Hyun Soon Lee, president and chief technology officer of HKAG, signed the agreement in Seoul.

Together, Microsoft and HKAG will deliver new and innovative solutions based on the Microsoft Auto software platform, bringing the future of in-car technology to Hyundai-Kia drivers worldwide. ‘These new systems will redefine consumer experiences in the car,’ Gates said. ‘Since the spring of 2006, HKAG and Microsoft have been sharing their vision for the future of in-car technology. We’re now aligned to develop the next generation of in-car infotainment systems.’

‘HKAG’s strategic vision is to become a global leader in automotive and information technology convergence,’ Chung said. ‘The partnership with Microsoft will form the foundation for achieving that vision.

‘We are pleased to partner with Microsoft to deliver high-performance infotainment solutions to our customers,’ Lee said. ‘The advanced capabilities, flexibility and low price point make the Microsoft Auto software platform an attractive solution for us.’

The first product, a next-generation infotainment system that provides voice-controlled connectivity between mobile devices, will be introduced in the North American market in 2010. It will further apply to Asian and European markets, and expand into multimedia and navigation devices. These easy-to-use infotainment systems will allow consumers to enjoy music in various digital formats.

The next-generation infotainment systems are comparable to mini-PCs. Even after product launch, new functions can be added or upgraded in the form of software program updates, an innovation to existing in-car multimedia technology.

The Hyundai-Kia Automotive Group’s adoption of the Microsoft Auto software platform increases Microsoft’s presence in the Asian car market and enhances the global automotive business. The engineering and marketing teams of Microsoft’s Automotive Business Unit in Redmond, Wash., will be working directly with counterparts at HKAG in Seoul to support this goal. Systems powered by the current version of Microsoft Auto are currently available in Fiat Auto Group vehicles in Europe and South America and Ford Motor Co. vehicles in North America.

In a related announcement, Microsoft and Hyundai-Kia, along with the Institute for Information Technology Advancement (IITA), signed a memorandum of understanding (MOU) to co-establish an automotive IT innovation center with the goal of promoting innovation and opportunities for Korean software and device vendors in the global market. Hyundai-Kia will invest US$166 million over the next five years to bring IT technology advancements into the car and to develop new in-car services.

Indian automobile industry doing well, sales up by 9.83pc

The Indian automobile industry seems to be gathering momentum once again, with April's overall vehicle sales rising by 9.83 percent, partly because of reduced excise duty in the 2008-09 Budget. According to figures released by the Society of Indian Automobile Manufacturers (SIAM), the domestic passenger car sales managed a growth of 17.15 percent in April.

Total domestic vehicles sale in April stood at 806,238 units, against 734,103 units in the same month last year. The Union Budget 2008-09 proposed a reduction in excise duty on small cars from 16 percent to 12 percent, and a similar cut on two- and three-wheelers, and buses.

According to SIAM, the passenger car segment clocked a sale of 98,740 units during the month, against 84,283 units in the same month a year ago. Maruti Suzuki India registered an increase of 22.30 percent at 51,766 units, against 42,326 units in the same month in 2007.

Hyundai Motors sold 21,492 units during the month, against 15,697 units last year, up 36.92 percent. Tata Motors, however, recorded a decline of 17.10 percent at 11,193 units, against 13,502 units in the same month previous year.

General Motors India had a 21.65 percent jump in its sales with its hatchback Spark continuing a good run. The company's overall sales stood at 3,411 units, compared to 2,804 units last year.
On the motorcycles front, the industry witnessed a reasonably good growth in April, with the segment registering a jump of 8.31 percent at 501,592 units, against 463,091 units during the year-ago month.

Ashok Leyland to double capacity, declares 150pc dividend

The Hinduja Group’s flagship company, Ashok Leyland has announced a net profit of Rs 180.57 crore for the quarter ended March 31, 2008. This is a 5.28 percent growth over the corresponding period a year ago. The company had a net profit of Rs 171.52 crore in the fourth quarter of the financial year ended March 31, 2007.

Ashok Leyland’s total income rose to Rs 2,573.61 crore for the last quarter, up from Rs 2,307.9 crore in the year-ago period. The company’s board of directors has declared a dividend of 150 percent, at the rate of Rs 1.50 on every share of face value of Re 1 held, for the year ended 2007-08.

For the year-ended March 31, 2008, the company announced a net profit of Rs 469.31 crore, a 6.35 percent growth over the year-ago period. The company had a net profit of Rs 441.29 crore in the financial year ended March 31, 2007. The total income rose to Rs 7,803.12 crore for the year ended March 31, 2007, up from Rs 7,238.98 crore last year.

‘In terms of topline, we compensated for the slowdown in the truck market by significantly improving our share of the bus market, international operations, as also the engines and spares businesses,’ said AL’s managing director, R Seshasayee. ‘Our bottomline benefited from some aggressive value engineering, sourcing initiatives and higher productivity,’ he added.

The board has approved the appointment of Vinod K Dasari as an Additional Director on the company's board. Further, R Seshasayee would be re-appointed as Managing Director for three years, effective April 1, 2008.

Ashok Leyland will also spend Rs 3,000 crore in capex over the next three years to more than double its annual capacity, which is currently 84,000 vehicles. The company will launch its iBus this year and also extend its range of tractors. Further, Ashok Leyland's bus assembly unit in the UAE will commence operations this year, with capacity being doubled to 2,000 units.

‘Margins continue to be under pressure, but if the revival comes, capacity won't be a constraint for us,’ said Seshasayee. He added that Ashok Leyland is also looking for acquisitions abroad, and that the company would continue to focus on 'second hemisphere' markets. 'We are expanding our presence in foreign countries and we are also looking for some acquisitions. Some strategic markets include Indonesia, Syria, Vietnam, Thailand, Honduras, Venezuela and Russia,' said Seshasayee.

On the domestic front, Ashok Leyland's upcoming plant in Uttarakhand is likely to be commissioned by March 2009. And by the 2010, the company will roll out its first products in partnership with Nissan.

Volkswagen appoints dealers in Chandigarh, Ludhiana

Volkswagen cars will now also be available in Chandigarh and Ludhiana

Volkswagen India has announced the appointment of two new dealers – Genuss Motors in Chandigarh, and Prestige Motors in Ludhiana. Both showrooms are spread over 5,000 square feet, and both will be well equipped with high-tech service facilities, enabling them to service up to eight cars per day.

With the opening of these two new dealerships, VW now has franchises in Delhi, Gurgaon, Mumbai, Bangalore, Chandigarh, Ludhiana and Hyderabad. The German car manufacturer aims to have 30 outlets in India by the end of 2009.

Bharat Forge’s overseas subsidiaries underperform

Back in 2004 and 05, Bharat Forge had been on an acquisitions spree, and the company’s stock prices had shot up accordingly. Today however, not all seems to be well on the company’s overseas operations front.

Turnarounds don’t come easy, and given problems like soaring input prices (especially that of steel), and issues with moving labour-intensive operations from the company’s expensive overseas facilities to lower-cost units in India, Bharat Forge’s overseas operations’ profitability may be on the decline.

According to some reports, Bharat Forge had earlier planned to take overseas profit margins to double-digit levels within three to four years of acquisition, but those targets have not been met. Of course, apart from the rise in input costs, a relative slowdown in the auto components business in many Western markets is also partially responsible for the company’s sluggish performance.

According to sources, Bharat Forge still hopes to be able to achieve a double-digit EBITDA (earnings before interest, taxes, depreciation and amortization) margin over the next two to three years. EBITDA is often a significant measure of operating efficiency, and this number, for Bharat Forge’s overseas subsidiaries, has been falling from 12.5% in FY 2004-05 to 9.2% in FY 2005-06 to 7.7% in FY2006-07. Whether the company will actually be able to pull out all the stops, resolve the various issues its overseas operations face, and return to its earlier highs is anybody’s guess...

Ducati plans to get racy in India

Can Ducati really convince Dorna to get the MotoGP series to India...?

After tying up with Precision Motor India to sell its bikes in India, Ducati also wants to promote motorcycle road racing in the country. The Italian company wants to get MotoGP – the highest level of professional closed-circuit motorcycle racing – to India.

Gabriele Del Torchio, Ducati’s CEO has apparently spoken to Dorna’s (Dorna is the group which controls MotoGP) CEO Carmelo Ezpeleta about bringing MotoGP to India. ‘If this event can happen in Qatar, China, Malaysia and Australia, I think India also has a great chance, with vast improvements in infrastructure and F1 circuit plans firming up. If all goes well, we shall have a full-fledged motorcycle racing season in India soon,’ said Del Torchio.

The Delhi-based JP Associates has announced plans to develop an F1 race track near Greater Noida, which can used for motorcycle racing as well. Currently, India only has two full-fledged race tracks – the Kari Motor Speedway, near Coimbatore, and the Sriperembudur track near Chennai.

Hyundai launches new marketing intiative for rural India

With the 'ghar ghar ki pehchan' scheme, rural India can now get a taste of the Santro

Hyundai Motor India (HMIL) has launched a new marketing initiative – ghar ghar ki pehchaan – for promoting the Santro hatchback in rural India. Under this new initiative, HMIL is rolling out special schemes for government employees and members of gram panchayats, who can now buy a Santro at discounted prices.

Through this scheme, which will continue till the end of July this year, Hyundai wants to connect with people in villages that have a population of 500 or more people. ‘Nearly 70% of India resides in rural areas, which presents an enormous demand base and a market too huge to overlook,’ said Arvind Saxena, senior vice president, sales & marketing, HMIL.

Hyundai dealers will conduct road shows, and give out pamphlets and posters to promote the scheme and to make people aware of this initiative. HMIL is also trying to arrange easy financing solutions for those who want to buy a Santro in rural India.

If Hyundai can get even a fraction of the estimated 220 million households in rural India to buy a Santro, the Korean company should be laughing all the way to the bank!

Ferrari Magic India Discovery Drive returns to Mumbai

The two Ferrari 612 Scagliettis at the flag-off (left) and back at the starting point today (right), after covering more than 13,000km in over 70 days

After covering over 13,000km in over 70 days, the Ferrari Magic India Discovery Drive returned to Mumbai today as scheduled. The cars were received at the Gateway of India, close to the starting point of the drive, in a ceremonial flag-in event.

More than 50 journalists took turns behind the wheels of two Ferrari 612 Scaglietti cars, along 13 difficult stages spread across India, taking in 57 cities in the over 70-day tour. The test proved that modern Ferrari cars can be run on normal roads in India.

The two cars used for the drive had very few modifications done to them – a protective underbody made of 4mm thick duralluminium (rather than the usual plastic) was added, and the suspension was slightly raised, to cope with bad roads. Apart from this, the two 540bhp, V12-engined cars were ‘normal’ Ferraris, and you’ve got to applaud the fact that they came back from the arduous journey unscathed. Vive la Ferrari!

The drive was sponsored by Shell, Tata, Taj Hotels, TCS, Fiat India, Pirelli, Alcoa, and OMR.

BMW twin-turbo engine wins 2008 International Engine of the Year award

The BMW X6 is fitted with BMW's 3.0-litre twin-turbo engine, which is supposedly the best engine in the world!

A BMW 3.0-litre twin-turbo engine has won the International Engine of the Year title for the second year running. The powerful BMW mill uses turbocharging to achieve high power output from smaller displacement, uses less fuel and produces less CO2.

Another class-winner from BMW was its 2.0-litre twin-turbo diesel unit, which makes 204 horsepower, and only sips 5.2 litres of fuel per 100km. This engine picked up the ‘Best New Engine of the Year’ award.

‘BMW rightly views these awards as the highest industry recognition of its outstanding achievements in engine technology and manufacturing. It is an honour for our 3.0-litre twin-turbo engine to have secured the highest accolade for the second year running, and we are truly delighted that so many of our other engines have been judged as class-leading,’ said Peter Langen, BMW’s director of powertrain.

The Tenth Annual International Engine of the Year Awards ceremony took place at the Engine Expo 2008 in Stuttgart, Germany, today. The event, one of the annual highlights of the worldwide automotive industry calendar, saw a total of 12 Awards given to manufacturers who have been judged to have achieved excellence in their powertrain engineering.

One of the judges for the awards, which are judged by 65 motoring journalists from 32 countries from four continents, includes Hormazd Sorabjee, editor of Autocar India magazine.

International Engine of the Year Awards 2008: Winners

Best New Engine of 2008
BMW 2.0-litre Diesel Twin-Turbo (123d)

Green Engine of the Year
Toyota 1.5-litre Hybrid Synergy Drive (Prius)

Best Performance Engine
Porsche 3.6-litre Turbo (911 Turbo, 911 GT2)

Sub 1.0-litre
Toyota 1.0-litre (Aygo, Yaris, Peugeot 107, Citroën C1, Subaru Justy)

1.0-litre to 1.4-litre
Volkswagen 1.4-litre TSI Twincharger (Golf, Touran, Tiguan, Jetta)

1.4-litre to 1.8-litre
BMW-PSA 1.6-litre Turbo (MINI Cooper S, Clubman, Peugeot 207, 308)

1.8-litre to 2.0-litre
Volkswagen/Audi 2.0-litre Turbo (A3, A4 Cabrio, A6, TT, Eos, Jetta, Golf GTi, Seat Altea, Leon, Skoda Octavia)

2.0-litre to 2.5-litre
Subaru 2.5-litre Turbo (Forester, Impreza, Outback, Legacy)

2.5-litre to 3.0-litre
BMW 3.0-litre Twin-Turbo (135, 335, X6)

3.0-litre to 4.0-litre
BMW 4.0-litre V8 (M3)

Above 4.0-litre
BMW 5.0-litre V10 (M5, M6)

International Engine of the Year 2008
BMW 3.0-litre Twin-Turbo (135, 335, X6)

Fiat to source components worth 250mn euros from India by 2010

Fiat's global expenditure on buying auto components, by the year 2010, is expected to be around nine billion euros. Of this, 250 million euros will be spent on buying parts from India

By 2010, Fiat will be sourcing automotive components from India to the tune of 250 million euros, up from the 30 million euros’ worth of components which they currently source from the country.

Fiat will use components sourced from India for its car plants in Europe, South America and North America. The Italian company will benefit from 10% to 15% lower component costs by sourcing from India, and it’s already in talks with vendors who’ll need to upscale their operations to meet Fiat’s demand for parts.

However, buying from India will still be a very small part of Fiat’s worldwide operations – the company will be spending more than nine billion euros on buying auto parts from Eastern Europe, Africa, South America and China.

Ahmedabad to get diesel buses for it BRT system

Ahmedabad’s Bus Rapid Transport (BRT) system will now use diesel powered buses in addition to CNG powered ones. The Ahmedabad Municipal Corporation (AMC) has taken this decision in order to keep costs in check, hence keeping public transport in the city affordable for everyone.

While the AMC had earlier said it would only use CNG powered buses on its BRT system, it’s now agreed to use Euro III compliant diesel buses because the latter are significantly cheaper than the former. A CNG bus currently costs about Rs 75 lakh, which is about 80% more than what these buses used to cost some time ago.

Tata Motors will be the likely source of supply for the new diesel buses for Ahmedabad.

Fiat Palio: CNG variant planned for 2009

With petrol and diesel variants already available, Fiat will now do a CNG version of the Palio, which might possibly cater to the taxi market in Maharashtra?

In the face of ever-rising petrol prices, some hapless consumers, and of course taxi drivers, are left with no option but to fit LPG or CNG kits in their car, which reduces running costs by a big margin. Keeping this in mind, Fiat India is planning to launch a CNG variant of the Palio hatchback by early 2009.

Fiat India, which has not been doing too well in the country despite its best efforts, hasn’t given up on this market yet. The Italian company has many new car launches lined up for the next few months, including the very stylish 500 hatchback, the Linea and the Grande Punto.

While the 500 would be imported as a CBU in limited numbers, the Linea sedan and Grande Punto hatchback will be made at Fiat’s plant in Ranjangaon, near Pune. It remains to be seen whether Fiat India can indeed make a comeback to profitability with its new range of cars.

Nissan to make small hatchback for India by 2010

The Micra has been one of Nissan's most successful small cars, though the Japanese company is likely to engineer an all-new small hatchback for the Indian market

Japanese carmaker Nissan, already present in India with its X-Trail SUV and Teana luxury sedan, is planning to also get into the small car segment in the country. Given that small cars is where the largest amount of growth is expected in the Indian autoscape, Nissan will start making a small car in India by the year 2010.

While the small car will be built at Nissan’s upcoming factory near Chennai, the Japanese company has other plans too – in addition to the new small car, it hopes to launch another five models in India, one or two of which might even be in the small commercial vehicles space.

Nissan’s small car is likely to be priced at around Rs 3.5 lakh, so it’ll be competing against cars like the Maruti Wagon R and Zen Estilo, Hyundai Santro and Chevy Spark.

Interestingly enough, Nissan is also exploring the possibility of getting into the Tata Nano segment, for which it may work in collaboration with its French parent, Renault, and Indian bikemaker, Bajaj Auto. Nissan may export both cars – its own small hatchback, as well as its Tata Nano competitor – to African and South American countries. And as reported earlier, Nissan will also buy about 50,000 units of the upcoming Maruti Suzuki A-Star compact car, and export those to Europe.

Ducati motorcycles to be available in India at Rs 20 lakh and above

Ducati builds some of the most beautiful bikes in the world, but at Rs 20 lakh and above, is there a significant market in India for these bikes?

Italian sportsbike manufacturer, Ducati is now setting up shop in India. Ducati Motor Holding will be operating in India via Precision Motor India Pvt Ltd, which will be the sole importer of Ducati motorcycles in the country.

‘We will be launching four different models in multiple variants. These bikes will be available starting at Rs 20 lakh to Rs 50 lakh in the Indian market,’ said Ashish Chordia, CEO, Precision Motor. He added that his company would import fifty Ducati bikes from Italy this year, increasing the number next year depending on demand.

'We strongly believe the fast growing Indian market is of a strategic importance to Ducati and we will do our best to consolidate our presence and capitalise on the huge opportunity this country has to offer,' said Ducati CEO Gabriele Del Torchio. The Italian company is expected to spend up to US$4 million towards setting up its dealer network in India. The first two showrooms will be opened in Delhi and Mumbai, with other major cities to follow in 2009.

Ducati manufactures high-performance sportsbikes and superbikes which are famous for their V-twin engines. The Italian company has been extremely successful in World Superbikes and MotoGP, the two top professional motorcycle roadracing series in the world.

In India, 114% import duties will be levied on Ducati bikes, making them extremely expensive by world standards. From Rs 21.75 lakh for the Ducati 848 to Rs 48 lakh for the Ducati 1098R, these bikes will only be for the super-rich.

In the recent past, Pune-based Kinetic had imported some units of the Hyosung GT250, a Korean-built sportsbike that sold for Rs 1.80 lakh. And Yamaha is also selling the R1 superbike and MT01 musclebike, both of which are priced upwards of Rs 12 lakh, in the Indian market.

Other Japanese bike makers as well as Bajaj-KTM are also expected to bring in bigger, sportier bikes to India this year, while Tata is said to be considering buying a stake in MV Agusta, another Italian company that makes some of the best superbikes in the world.

Ultra Motor not restrained from selling high powered, high range and high speed e-scooters

After the disengagement of Hero Cycles and Hero Exports from Ultra Motor India, the Delhi High Court has upheld the exclusivity clause between Hero Cycles and Ultra Motors in relation to sourcing electric vehicle kits (battery, motor and controller) from anyone but Ultra Motor for a period of 180 days starting April 23, 2008.

Ultra Motor Company can be the only electric vehicle kit Supplier to Hero Cycles or any of its affiliates. As per the exclusivity clause, Hero is required to procure similar products only from Ultra Motor. Both Hero Cycles Limited & Ultra Motor India would be bound by the stipulations in Clauses 7.1, 7.2, and 7.4 of the Agreement for Technical Collaboration and Joint Marketing dated September 29, 2006.

While the High Court judgment restrains Ultra Motor from selling specified low speed e-bikes (or products of equivalent specification, as mentioned in the original agreement) the High Court’s judgment does not include any high powered, high range and high speed e-scooters which have a battery configuration of 48V/20 AH and above, which are outside the arrangement between the parties.

Vehicles running on this power pack specification are commonly known as e-scooter and e-scooter plus. Prior to disengagement these vehicles were available under the model name Maxi (48V/20AH) and Velociti (48V/24AH). The latest trend in Electric two wheeler industry is skewed towards high powered, high range and high speed electric scooter. Equivalent models of the above configuration constitute approximately 95% of the electric two wheeler industry in India.

Close on the heels of a successful FY 08 and buoyed by the ready acceptance of electric two-wheelers in India, the UK-based Ultra Motor Company (UMC) has decided to rapidly scale up its operations, expand outreach and enhance its product portfolio. As a result of aggressive dealer expansion and marketing efforts in the last financial year, Ultra Motor (in partnership with Hero Exports) had sold 22,000 electric two wheelers across the country in FY 2008.

Ultra Motor has set itself a target of 60,000 units by for the FY 09 and in order to achieve this, the company has already committed an investment of Rs 140 crore in product development, marketing and distribution. The company will launch a range of five electric two wheelers in FY09, and is also looking at vertical integration in the supply chain in India, in the form of acquisition.

Supercharged smaller engines: The future of motoring?

Small, supercharged engines may provide the best balance between performance, emissions compatibility and fuel efficiency

When it comes to downsizing engines for reduced fuel consumption and CO2 emissions, the automotive research and development engineers at Antonov reckon a simple dual-speed mechanical approach is the optimum solution when considering supercharging.

‘Two speeds are better than one,’ says Chris Baylis, operations director at Antonov Automotive Technologies based at Warwick in the UK. ‘And two speeds are enough – particularly when considering the cost, weight, packaging and vehicle refinement implications for high volume car production.’

‘Motorists have come to expect a certain level of performance from their vehicles, and while as an industry we strive for ever lower fuel consumption and CO2 emissions we have to keep driver expectations and vehicle performance in mind when making engines smaller,’ said Baylis.

‘Car makers are increasingly looking at superchargers to enhance the performance of small engines. Unlike turbochargers, there are no heat issues to manage, and the study of exhaust gases can then be assigned to energy recovery systems,’ he added. Using the dual-speed approach, Antonov reckons that car makers could halve the size of the engine for any particular application with a dramatic reduction in fuel consumption and carbon emissions.

‘A 25 to 50 per cent reduction in engine size seems feasible for road vehicles,’ says Baylis. ‘The dual-speed supercharging solution certainly delivers the performance and, importantly for road cars, maintains excellent driveability. Improved fuel economy is fundamentally achieved through using a small displacement engine, with a dual-speed supercharger allowing it to run more often at low rpm. The two speeds allow us to spread the charge of air from the supercharger to the engine over a wide engine speed range,’ he adds.

‘Essentially, we’re able to create a better match between the supercharger and its host engine – by running the supercharger faster at low engine speeds and slower at high engine speeds. The benefit is predictable low speed engine torque that is always available for enhanced drivability and performance. The change between drive ratios is smooth and virtually imperceptible to the driver,’ says Baylis.

‘The ability of a dual-speed supercharger to operate as a passive device, without the need for sophisticated and expensive electronic control systems or hydraulic actuators, means low cost, high efficiency and simplicity of application. In addition, a supercharger with a simple dual-speed mechanical drive provides most of the benefit of a fully variable drive unit, or various complex combinations of supercharger and turbocharger, at a fraction of the cost,’ he adds.

Three dual-speed supercharger studies are currently being pursued by Antonov. This includes an engine downsizing application for a typical family car, an aftermarket application already in production for high performance vehicles and a performance enhancement application for off-road vehicles. So does this mean that in another five years, we’ll all be driving supercharged Santros, Zens and Sparks? Stay tuned…!

Hero Electric to invest Rs 80 crore on expansion

Electric scooters are a growing segment, and Hero Electric wants a big slice of the action

The Ludhiana-based electric two-wheeler maker, Hero Electric plans to invest Rs 80 crore towards the expansion of its manufacturing facility, and for marketing and brand promotion. The company earlier had a technology partner in Ultra Motors, but has now decided to go it alone.

Hero Electric already has a fairly wide range of electric two-wheelers on sale, and plans to launch up to four new models, the aim being to sell about 70,000 units in FY 2009. The company will also launch bigger, more powerful electric scooters, which might enable them to compete with petrol-powered 100cc scooters.

By next year, Hero Electric hopes to have as many as 160 dealer outlets across the country. The company will be concentrating more on the western and southern regions in the country, where it has identified high-potential areas – especially in smaller towns – for the sales of electric vehicles.

Electric scooters have an extremely low running cost of about 10 paise per kilometer, and EVs are completely non-polluting, so Hero Electric sees much potential for growth in this segment in the years to come. About 1.2 lakh electric scooters were sold in FY 2008, and with the Indian government recently cutting excise duty on EVs, demand is likely to be on an upswing.

Apart from the expanding operations in the Indian market, Hero Electric will also look at exporting its scooters to various parts of South America and the Middle East.

Yamaha introduces Alba 106 with electric start

Yet another 'new bike' from Yamaha, in the dying 100cc segment. When will this company learn?

Yamaha India, it seems, is not prepared to change . While all other manufacturers are going ahead with bigger, sportier and more stylish machines, the company has gone ahead and launched yet another rehashed 106cc machine – the Alba – which now comes with electric start.

Even as the Indian motorcycle market is ready to graduate to bikes with bigger engine capacities, and despite Yamaha promising to launch sportier bikes for ages, all we have from the company is another motorcycle in the 100cc segment. Can it really be that Yamaha has still not understood that it can’t beat Hero Honda in the 100cc game?!

‘The unique design of Yamaha Alba 106 blends youthful style and modernism with thoughtful decency. Giving it a sturdy, macho image are the new aerodynamic cowl, well sculptured tank, well-built side and rear panel. While the exciting graphics with the smooth flowing design give the bike its stylish, super cool looks,’ says a company press release. Ahem. But wait, there's more...

‘The launch of new Alba with electric start is in line with Yamaha’s true commitment to provide world class products to its customers. A lot of emphasis has been laid on shaping Alba for maximum comfort of the rider and its premium features will give consumers a new thrill in biking pleasure. Alba delivers comfort, style and solidity, which will make it the right choice for the discerning customers,’ says Takahiro Maeda, who heads Yamaha India.

What can we say Maeda san. We’re speechless. Just hurry up with the YZF-R15 and the FZ150, please.

Pakistan wants to import Euro-II compliant auto parts from India

Pakistan's leading car assembler, Pak Suzuki Motor Company is said to be lobbying for permission to import Euro-II compliant auto parts from India. Currently, Pakistan does not allow trade with India in the automotive sector, and as you would expect, auto parts vendors in Pakistan are in strong opposition to this being changed.

Pak Suzuki wants to import automotive components from India because the company sells car models which are somewhat similar to those sold by Maruti Suzuki in India. Car engines assembled in Pakistan still use older technology, while India has moved on to much more strict emission norms. Now with Pakistan wanting to follow India’s example and move to more stringent emissions norms, it remains to be seen whether the Pakistan government will allow Pak Suzuki to import parts from India.

Multi-brand car mall being planned for Bangalore

In accordance with the growing trend of multi-brand car showrooms in the country, there’s now one in Bangalore too. Some prominent car dealers in Bangalore are setting up this ‘car mall,’ which will be spread over 50 acres, near the new Bengaluru International Airport.

The new car buying facility will have all brands – from Maruti to Mercedes-Benz – under one roof, and buyers will be able to test-drive cars on the adjoining circuit before making up their minds about which car to buy. Instead of going to multiple dealers in various locations, buyers will be able to get details and compare prices etc., all in one place.

Reliance Industries: Exporting diesel, while India imports

Here’s a conundrum – to meet the rising demand for diesel in the country, Indian PSU oil refiners have to import diesel. In the meanwhile, Reliance Industries Ltd (RIL), with its export-oriented unit (EOU) status, has been exporting diesel from its Jamnagar refinery.

In FY 2007-08, 2.93 million tonnes (mt) of diesel was imported into the country. This figure is more than double of what it was in FY 2006-07. In India, apart from PSU refiners, diesel is also produced by Essar Oil, with the IOC buying over 1mt per annum from the company’s refinery in Vadinar.

In FY 2008, RIL exported 22.1mt of diesel, so surely they can spare some for India? Why aren’t the PSU oil companies buying diesel from Reliance? Simply because it will be too expensive for them. If Reliance wants to sell diesel in India, the company will have to pay certain taxes and local levies, which in turn will mean more expensive diesel, and that cannot be viable for local marketing companies.

All concerned are trying to find a solution to this problem – PSU oil marketing companies are reportedly in talks with RIL for sourcing diesel. If the government agrees to waive certain taxes and levies on Reliance-produced diesel, things should be smoothened out and India may have to import a lesser amount of diesel in the future. This, however, is not as simply as it may sound, since such a waiver of taxes etc will mean changes in EOU policy.

India to be one of the world’s biggest markets for small cars in the next seven years

Small cars like the Nano and the Maruti 800 will lead growth in the Indian autoscape

According to some analysts, India may be the fourth-largest market in the world for light vehicles, in the next 6 – 7 years. The demand for small, low-cost cars in the country will be more than that in Eastern Europe, Russia and South America.

It’s expected that sales of small cars – like the Tata Nano, Maruti 800 and the upcoming Bajaj-Renault small car – will grow by up to 16 percent every year till 2014, by which time the segment will account for around 4.5 million cars. (And no, the analysts don’t say anything about whether there will still be any space left on our already very congested roads to actually drive all those cars!)

Last year, India was ranked 10th in terms of light vehicle sales, which stood at 1.7 million units. With 16 million units sold, the United States was on top of the list. In the next 6 – 7 years, the US is expected to continue being on top, while China and Japan will also be ahead of India in terms of the number of light vehicles sold in those countries every year.

Whiplash injuries: Small cars offer less protection

If hit from behind, small cars may not offer much protection from whiplash injuries

New research has shown that most popular small cars are not very effective in saving the occupant from whiplash injury in the event of low speed rear end collisions. The latest vehicle head restraint ratings reveal that in an increasingly popular sector (that of small city cars), consumers looking to reduce their environmental impact are being short changed when it comes to safety.

According to this research, motorists in pursuit of economical, low emissions and easy to park small cars may be more susceptible to sustaining whiplash injuries. With most rear end collisions occurring during low speed city driving, and with smaller, lighter cars being at intrinsically higher risk, the new finding are of concern.

Small city cars are not equipped to protect their occupants’ necks when they have to absorb the crash energy from larger, heavier vehicles, which combined with poor seat design makes whiplash injury far more likely. Good seat design is not something that should be inherently linked to higher value cars and this latest set of results will hopefully act as a catalyst for vehicle manufacturers to look at improving seat and head restraints design within this important and growing sector.

2/4SIGHT engine may make for up to 27% savings on fuel costs

An engine that can operate in 2-stroke and 4-stroke mode!

We are always on the lookout for new automotive technologies that may be useful in the Indian automotive scenario. And one such tech development seems to be the 2/4SIGHT engine concept. Ricardo and a consortium of its automotive partners recently announced the completion of an advanced prototype research programme based on the 2/4SIGHT engine concept. This petrol engine concept uses new combustion, boosting, control and valve actuation technologies to enable automatic and seamless switching between two- and four-stroke operation, with the aim of delivering significant performance and fuel economy improvements through aggressive downsizing.

The 2/4SIGHT engine concept uses a direct injection petrol combustion system in which the design of intake and exhaust ports, combined with appropriate changes in boost supply, fuel injection, ignition and valve timing, enable operation both in two-stroke and four-stroke modes. An advanced control system coupled with flexible valve actuation manages driver demands and coordinates operation of the boost system, valves and fuel injection equipment at an individual cylinder level. This enables smooth transitions between two- and four-stroke operation, without torque interruption in both transient and constant torque conditions.

Prototype engine configuration

The research prototype engine is based on a single bank of a 2.1-litre V6, which in six cylinder 2/4SIGHT configuration is intended to deliver levels of performance and drivability usually associated with a 3.0 - 4.0-litre V8 petrol engine. In order to enable the project team to assess control strategies in a completely unrestricted manner, an electro-hydraulic valve (EHV) actuation system was used for the prototype development rig. The air handling system of the 2/4SIGHT concept is based on two-stage boosting and intercooling using a Rotrex supercharger and Honeywell turbocharger.

For simplicity in the initial test bed prototype configuration however, boosting is provided by an external compressed air supply. The engine control system of the prototype is a DENSO rapid prototyping system working with DENSO petrol direct injection and ignition components. The prototype engine was built at the Ricardo Shoreham Technical Centre and installed for testing at the Sir Harry Ricardo Laboratories of the University of Brighton.

Development test results

Testing of the prototype 2/4SIGHT engine has enabled development and validation of the combustion system which has been optimised for operation in both two and four-stroke modes. The flexibility of the advanced control system – developed jointly by DENSO and Ricardo – allows rapid changes to high level code which, coupled with the flexibility of the EHV valvetrain, has enabled the project team to develop and optimise a new control strategy for the 2/4SIGHT engine, including the management of two-four-stroke switching.

Highlights of the development test results included the smooth and reliable switching between two- and four-stroke modes under both constant torque conditions and transient operation. And the most important bit, at least in the Indian context, is that significant improvements in fuel economy were noted - up to 27% better fuel economy compared with conventional engines of similar capacity! Having completed development of the prototype 2/4SIGHT engine, the partners are currently negotiating potential sources of funding and support for a vehicle demonstration programme.

Let's see if this engine finds actual use in the real world, and if so, if it also makes its way to India in due course of time...

Work restarts at Hero Honda's Daruhera plant

Hero Honda has announced that work has resumed at the company’s plant in Daruhera, in Haryana. An agreement has been made with the workers, and the strike has been called off. ‘Normalcy has been restored at our Daruhera plant following a mutually amicable resolution of certain concerns raised by some contract labourers due to instigation by external elements,’ a press release from Hero Honda.

Hero Honda management had earlier moved some contract labourers from one work area to another, within the Daruhera plant, which had not gone down too well with the workers. Matters had been compounded given the fact that some workers feared losing their jobs because of Hero Honda’s plans of shifting a large chunk of production to its new plant near Haridwar, in Uttarakhand.