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.

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Airbus also gets on the alternative fuel/biofuel bandwagon!

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.

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Used cars, better than hybrids?

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.

Chevrolet Volt: Out in 2010, will change the EVs game

This is a test hack, but you can expect the real thing by end-2010
Pic: GM-Volt

The ability to travel a sufficiently long distance on one charge – range – has been a stumbling block for electric vehicles (EVs) for a long time. Now, General Motors just might have cracked it with the Volt, its experimental, lithium-ion battery-powered EV.

Unlike some hybrids like the Toyota Prius, the GM Volt doesn’t use its petrol engine to drive the car’s wheels – it only uses the engine to charge the batteries. There are still a lot of unanswered questions – regarding the integration of the petrol engine and the electric motors, and the software that’s going to handle it – at GM, but the company’s engineers are confident they can do it.

The goal for GM, with the Volt, is to have an EV that runs on electric power alone and that has a range of more than 1,000km. So when can you expect to walk into a GM showroom and buy the Volt? ‘November 2010 looks good,’ says Bob Lutz, vice chairman, General Motors. And if its November 2010 for the US, can India be very far away on GM’s EV map…?

Rane NSK Steering System to invest Rs 20 crore in Singur

Automotive components manufacturer, Rane NSK Steering System will soon be investing Rs 20 crore for setting up a new plant in Singur. This would enable the company to supply parts to Tata Motors for its Rs one lakh car, the Nano. Apart from Tata Motors, Rane NSK already supplies parts to Maruti Suzuki, and the Indian operations of Honda, Ford and Toyota.

The company plans to supply manual steering gear, engine valves and seat belts for the Nano, from the proposed plant. It has already acquired five acres of land for setting up the unit, said R Narayanan, president, Rane NSK Steering System.

Apparently on a growth spree, Rane NSK is alsp starting a new manufacturing facility in Bawal, Haryana, from where the company will make electric power steering systems for North-based auto manufacturers. The plant will have an initial capacity of 200,000 steering systems per annum.

In three to five years, Rane NSK expects 25% of its revenues to come from exports. Set up 10 years ago, the company is a 50:50 JV between the Rane Group and NSK of Japan.

Biofuel could wreck your car’s engine!

Some time ago, we reported that the Jatropha plant – from which biodiesel is extracted – can be extremely harmful for human beings. Now, according to some reports from the UK (where the law says all diesel sold in the country must be blended with eco-friendly fuel), biofuel could also wreck your car’s engine.

If not cleaned properly and regularly, vegetable- or wheat-based biofuel reservoirs are said to be breeding grounds for bacteria, due to which the fuel is easily contaminated. And when this contaminated fuel is used in cars, it ends up clogging engines, blocking fuel filters and damaging fuel injectors. All of this can cause a car to break down without warning.

In the UK at least, the problem is set to get worse – while current legal requirements mandate that diesel must contain 2.5% biofuel, this will be upped to 5% in the year 2010. Looks like fuel pump operators will just have to get used to more frequent and rigourous cleaning sessions…

Kinetic to raise Rs 125 crore to add capacity, launch new two-wheelers

Kinetic has not been afraid of experimenting with its product line-up, but success has still been largely elusive for the company

Amidst reports of a buyout by Mahindra, it is business as usual at Kinetic Motors, which is now actually looking to raise up to Rs 125 crore to fund its expansion plans. Sulajja Firodia Motwani, MD, Kinetic Motors, says the company is looking at raising these funds within the next three months, and that the money would be used to launch new two-wheelers and to add capacity.

Kinetic has tie-ups with SYM of Taiwan, Italjet of Italy and Hyosung of Korea. The company may look at introducing new scooters with the first two, and might possibly decide to import the Hyosung GT250 and/or GT650 motorcycles from Korea. Kinetic also makes the two-stroke Mito 125 for Italian manufacturer, Cagiva, and may explore possibilities of selling that bike in India in limited numbers.

Honda’s small car for India to be manufactured in Rajasthan

Honda Siel, which is looking at launching its all-new small car for India by 2010, will be manufacturing the car at its upcoming facility in Rajasthan. ‘We plan to enter the small car market [and the small car] will be manufactured at our new unit coming up in Rajasthan in two years time,’ said Masahiro Takedagawa, President and CEO, Honda Siel.

Honda has a dominating presence in India in almost each and every segment, except small cars, which is still the largest segment in India. Honda will be looking at getting into the Swift/Getz/U-VA ‘bigger hatchback’ segment, which is likely to be the fastest growing car segment in India in the years to come.

Honda’s upcoming manufacturing facility in Rajasthan will be spread over 600 acres of land, and initially, it will have a manufacturing capacity of 60,000 units. Honda would have the option of ramping up the plant’s capacity to up to 200,000 units per annum, as and when needed. Honda Siel will be spending about Rs 1,000 crore on setting up this new plant.

Honda Siel’s dealership network, which was expanded from 55 to 80 dealerships last year, will see another 20 dealerships added by the end of FY 2008-09.

Audi posts 123pc increase in sales, expects new A4 to do well

The new Audi A4 will be available in India by July this year

Audi says its immediate aim is to sell at least 1,000 – 1,200 cars in India in 2008. The company, which will be introducing the new A4 sedan in India in July this year, says it has posted a 123% increase in sales in the first four months of 2008. Audi has sold 321 cars in January-April 2008, compared with only 144 units in the same period last year.

Audi expects the new A4 to play a major role in helping the company achieve its sales target for the year. With a whole lineup of cars – A4, A6, A8 sedans and the Q7 SUV – the German car company seems to be in a good position to take on the might of Mercedes-Benz and BMW, despite the Audi name not having the same cachet in India.

In India, Audis are currently available in Delhi, Gurgaon, Chandigarh, Mumbai, Pune, Bangalore and Hyderabad. New Audi dealerships are likely to be opened at Ludhiana, Chennai, Kolkata, Cochin and Ahemdabad.

Volvo’s City Safety system wins Fleet World award

The Volvo XC60 will come equipped with the company's City Safety technology. Can we also expect to see this car in India next year? We hope so!

Volvo’s new ‘City Safety’ system, which helps avoid or reduce the severity of low-speed collisions, won the Technology category at the 2008 Fleet World Honours Awards in London today. The City Safety technology will be introduced as a world-first standard feature in the new Volvo XC60, which should hopefully also be on sale in India next year.

At speeds of under 30km/h, City Safety uses laser sensor technology to detect vehicles up to 10 metres in front of the car’s front bumper, and reacts to vehicles in front that are either at a standstill or are moving slowly in the same direction as the car itself. If the gap between the cars continues to close and the driver remains inactive, the car applies the brakes automatically.

City Safety’s potential for reducing the risk of both personal injuries and car bodywork damage is significant, and in Europe at least, it may also help cut down on insurance costs. Volvo is currently involved in a dialogue with some insurance companies regarding lower insurance premiums for cars equipped with City Safety. Perhaps this kind of thing should be replicated in India as well – lower insurance premiums for cars that feature high-tech safety technologies?

Commenting on the award, Chairman of Judges George Emmerson said, ‘Volvo’s commitment to researching and developing groundbreaking technologies has led to a number of safety milestones. City Safety is among the cleverest so far, predicting when low-speed accidents will happen and preventing them from occurring. City Safety will offer fleets financial, operational and social benefits that deserve recognition.’

John Wallace, of Volvo, says, ‘With surveys indicating that 75% of all reported collisions take place at speeds of under 18 mph, and in 50% of these cases the driver has not braked at all before the collision, it’s easy to see the potential City Safety has in reducing incidents of this kind.’

Hero Electric plans acquisitions, to double capacity at Ludhiana plant

In a bid to expand its electric two-wheeler operations, Hero Electric, a wholly owned subsidiary of the Hero Group, is in considering acquiring two Indian companies that make electric motors and controllers. According to Naveen Munjal, MD, Hero Electric, this move is a part of the company’s expansion strategy, for which the company is ready to spend up to Rs 20 crore.

Hero Electric currently imports controllers, motors and batteries from various manufacturers abroad, but the company wants to take full control of its operations by manufacturing these components in-house. At a later stage, Hero Electric also wants to get into making hybrid two-wheelers, which will be fitted with an electric motor as well as a small petrol-powered engine, allowing the rider to switch between the two at will.

The electric two-wheeler market in India – as elsewhere – is still very much at a nascent stage. But with the introduction of better, more powerful batteries and electric motors, these EVs should be able to start competing with conventional 100cc and 125cc scooters and motorcycles.

Hero Electric, one of the major players in India in the field of EVs, plan on investing Rs 80 crore towards increasing its production capacity at its plant in Ludhiana, to over 125,000 units per annum.

K K Swamy leaves TKM, Toyota may split India operations into two units

Will the Toyota small car for India look something like this? We don't know, but we expect the new car to hit the market by 2010

Toyota Motor Corp is said to be considering splitting its Indian arm into two units. One unit will handle only manufacturing, and the other, marketing, sales and distribution.

This development follows the resignation of K K Swamy, Toyota Kirloskar Motor’s deputy managing director. Swamy, who put in his papers on Monday, had been with TKM since 1996, when Toyota first came to India in a JV with Kirloskar. It’s being said that Swamy, who handled finance, marketing and corporate planning functions at a very senior level in TKM, was not happy with his role being curtailed in the recent past. He is expected to make an announcement regarding his next assignment soon.

Toyota has separate units for handling manufacturing and marketing-related activities in Indonesia, and may attempt to replicate that model in India. According to some reports, Toyota will form a new unit, likely to be based in or around Delhi, for its marketing, sales and distribution functions. Meanwhile, the company’s existing facility near Bangalore will be developed solely as its manufacturing hub. This may also be centre of research and development for Toyota’s small car for India and other emerging markets.

M&M may buy Kinetic's two-wheeler manufacturing division

Mahindra & Mahindra (M&M) is, reportedly, in talks with Kinetic, with a view to acquiring the Pune-based two-wheeler manufacturing company. M&M has been interested in getting into the two-wheeler segment for the last five years, and now, rather than getting into the segment on its own, the company is exploring this acquisition route.

After it split from Honda, Kinetic has not been doing very well, despite getting into international tie-ups with SYM of Taiwan, Hyosung of Korea and Italjet of Italy. Kinetic’s pathbreaking initiatives in the Indian two-wheeler market – in the context of being the first company to explore the CBU segment with its Comet and Aquila bikes, and getting in bigger scooters like the Blaze – have not been very successful.

Things may change at Kinetic if the company is bought over by Mahindra, since the latter are certain to bring in better management skills (Kinetic remains a family-owned and managed company today.) Though both companies deny it completely, both are said to be in the final stages of due diligence. If things go through, M&M is expected to pick up a majority stake in Kinetic, for anything between Rs 80 crore to Rs 100 crore.

Nissan aims to sell two lakh cars in India by 2012

With its ambitious sales targets for the country, and the growing SUV market here, expect Nissan to bring the Murano softroader to India soon...

Nissan has said it wants to sell more than two lakh cars and SUVs in India over the next four years. ‘In India, we have made a strategic decision to work with partners to speed our entry into the market and to leverage local expertise, building on Nissan's proven track record of success with collaborative relationships,’ said Carlos Ghosn, CEO, Nissan Motor Co Ltd.

‘Our volume is expected to increase to more than 200,000 units in the fiscal year 2012,’ said Ghosn, speaking about Nissan’s projected sales in the Indian market. Along with Renault, Nissan is setting up a new manufacturing facility in Chennai which will have an annual capacity of 400,000 cars per annum.

Nissan’s other interests in India include an JV with Ashok Leyland for building LCVs, and a JV with Bajaj for making a very low cost small car, codenamed the ULC. This small car, to be built at a brand-new plant in Chakan, near Pune, is expected to be out in the market by 2011. Also, the Japanese company is expected to launch the Murano SUV in India by mid-2009.

Honda to re-examine India sales target, will launch Civic Hybrid next month

Expect to see the very high-tech Civic Hybrid in India next month!

Honda, which today launched the 8th generation Accord in India, is all set to review – and perhaps revise – its sales target (90,000 units in FY 2008-09) for the country. This, according to Masahiro Takedagawa, CEO – Honda Siel, is because current market conditions in India are a bit unpredictable.

Speaking about Honda Siel’s new manufacturing facility in Rajasthan, Takedagawa said that it would be ready to make some engine components by September this year, and will start making cars by the end of 2009. The plant, which is being set up at an investment of US$230 million, will be extremely important for fueling Honda’s expansion plans for India.

On the new cars front, Honda will start importing – in very limited numbers, we suppose – the Civic Hybrid by the middle of next month. And by the end of 2009, the company will also be ready to launch its first small car in India.

Yamaha G5 now available with electric start

The Yamaha G5 has been launched with electric start

After the Alba 106, it’s now the Yamaha G5’s turn to get electric start – the G5 is now available with ES and is priced at Rs 39,380 ex-showroom (all over India).

‘We plan to continue gearing up our existing product line and marketing initiatives. We are paying attention at the customer who always looks for more. The new G5 is equipped with electric start as a convenient feature,’ said Takahiro Maeda, Yamaha India’s executive vice president and chief sales and marketing officer.

Old, small capacity commuter bikes with electric start notwithstanding, motorcycle enthusiasts all over the country still wait for Yamaha’s FZ150 and YZF-R15, both of which are due for launch later this year.

Ford’s new engine plant in Chennai is now operational, will make 60,000 engines per annum

The new Ford facility in Chennai will initially make 1.4-litre diesel engines for the Fusion and the Fiesta

Ford India has started operations at its engine assembly plant near Chennai. The new plant will initially make 60,000 engines per annum, for the Ford Fiesta and Fusion models. Production will start with the Ford 1.4-litre Duratorq diesel engine.

‘This facility will help position Ford India as a strategic manufacturing hub for low displacement powertrain engines within our Asia Pacific and Africa region. The domestic assembly of these engines will facilitate quicker time-to-market response, and greatly enhance the efficiencies of our operations,’ said Michael Boneham, president and managing director of Ford India.

Ford makes no secret of the fact that it wants a much larger share of the Indian car market than it currently has. The new engine assembly plant will allow Ford to increase the local content in its diesel engines to nearly 50 percent, as a result of which the company will be able to compete more effectively in the fast growing diesel car market in India.

Ford, which started its India operations back in 1995, will invest US$500 million towards doubling its manufacturing capacity to 200,000 units by 2010, and also launch a small car to compete with Indian, Japanese, Italian and Korean car manufacturers.

New Ferrari California: First official pictures released

The all-new 460bhp V8-powered Ferrari California

The pictures you see here are the first official photographs of the new Ferrari California. A sporting GT, the California will only be available as a convertible with a folding hard top. The car’s chassis and bodywork are crafted in aluminium, in line with the rest of Ferrari’s current range.

The Ferrari California is powered by a new 4300cc V8, which is mounted in the mid-front position – a first for Ferrari. The engine makes 460 horsepower at 7500rpm, and is mated to an all-new seven-speed, dual-clutch transmission. The California accelerates from zero to 100km/h in just four seconds, which means performance is very much in line with the Ferrari supercar tradition.

New high-tech bits on the California include multilink rear suspension, F1-Trac traction control system (which made its debut on the 599 GTB Fiorano), and Brembo brakes featuring carbon-ceramic material discs as standard, which guarantee superbly efficient braking in all conditions.

The Ferrari California will be officially unveiled to the public at the upcoming Paris International Car Show. And now that Ferrari is expected to enter the Indian market - perhaps by the year 2010 - we can probably expect the California to also make its way to our shores sometime over the next one or two years...

Honda launches all-new Accord in India, prices start at only Rs 16.49 lakh!

The 8th generation Honda Accord - once again the most reasonably priced and the most well equipped car in its class in India!

Honda Siel has announced the launch of its 8th generation Accord in India. Powered by Honda’s 2.4-litre, 180bhp i-VTEC engine, the new Accord will be available in basic, Elegance and Inspire trim levels. Prices will start at Rs 16.49 lakh and go up to Rs 18.14 lakh, ex-showroom Delhi.

Longer and wider than the outgoing model, the new Accord is Euro IV compliant, and can be run on E10, which is a mixture of 10 percent ethanol and 90 percent unleaded petrol. The car comes with five-speed automatic transmission, with the option to shift gears manually, using shift paddles situated behind the steering wheel. The car also has variable gear ratio (VGR) steering system, which means the car is very easy to steer at low speeds and yet remains stable and responsive at higher speeds.

The new Accord is also safer than ever before – the car comes with six airbags, the latest generation anti-lock brakes (ABS) and electronic brake force distribution (EBD). Suspension is double wishbone with upper and lower control links at the front, and multi-link with double wishbones at the back. Inside, there’s eight-way adjustable power seats, tilt-and-telescope steering wheel and high-tech audio system.

With its mix of smart and contemporary styling, powerful and fuel efficient engine, safety features, and very reasonable pricing, the new Honda Accord once again looks set to dominate its segment. Watch out, Toyota Camry and the others...!

Here's a promo video of the 2008 Honda Accord

Xenitis’ Global Automobiles may post a turnover of Rs five billion in 2008-09

Can't get off...?! Er, well, the company hopes to post a turnover of Rs 5 billion in any case

Kolkata-based Xenitis Group, whose motorcycle manufacturing division, Global Automobiles manufactures the Xpression, Xpression Plus and Rock 100 bikes, has said its motorcycle division may post a turnover of Rs five billion in 2008-09.

The company makes about 30,000 bikes a month, in technical collaboration with Guangzhou Motors of China. The company’s first bike – the Xpression – was launched in April last year, followed by the Xpression Plus and the Rock 100 shortly thereafter. These inexpensive bikes cater to the lowest end of the Indian two-wheeler market.

While the Xpression is available in 100cc, 125cc and 150cc variants, the Rock is only available with a 100cc engine, for which claimed fuel efficiency is 115km/l. Recently, Global Automobiles also launched their first scooter – the 150cc UFO, which is a gearless scooter priced at Rs 35,000.

According to Xenitis, the company is already exporting its bikes to Bangladesh, Nepal, Sri Lanka, Chile, Nigeria, Iran and Argentina. And apart from this, there are plans to launch a bicycle brand next month, and perhaps a very low-cost car in the future, if the company can find the right technology inputs from a foreign collaborator.

Mahindra launches Pik Up Double Cab in Paraguay

The Mahindra Pik Up Double Cab is going places...

Mahindra & Mahindra Ltd. (M&M) has announced the launch of its Pik Up Double Cab in Paraguay, in partnership with the Rieder Group.

‘The Mahindra Pik Up Double Cab is part of our global range of vehicles and has been successfully launched in several markets in South America, including Peru, Chile and Brazil. With its stylish looks and rugged nature, the Pik Up is well suited for the international market and I am sure that the vehicle’s unique value proposition will also appeal to customers in Paraguay.

We are also pleased to partner with Motomarket of Rieder & CIA.S.A.C.I., one of the country’s most respected business groups and we are sure that their keen understanding of the market and extensive dealer network will contribute to the success of the Mahindra Pik Up in Paraguay,’ said P N Shah, executive vice president , International Operations, Mahindra & Mahindra Ltd.

‘We are delighted to be associated with Mahindra & Mahindra which is recognized as a prestigious auto brand across the world. Over the past few months, M&M has established a significant presence in South America and we are sure that the Mahindra Pik Up will emerge as the diesel offroader of choice in Paraguay as well,’ said Jose Rieder, Director of the Rieder Group

The Mahindra Pik-Up is a tough, workhorse of an MUV, which is available in 4x2 and 4x4 variants. The vehicle is ideal for farm, commercial and recreational use.

Mahindra Pik-Up Double Cab – Technical details:

2498cc, four-cylinder, turbocharged, intercooled, Euro II-compliant engine

100bhp@3800rpm, 24.5kgm of torque at 1800rpm

Five-speed manual transmission

AC, power steering, power windows, central locking and audio System

ABS and alloy wheels are optional

The Rieder Group, established 73 years ago, has interests in cattle farming, timber and telecommunications. Besides Mahindra, the company is also the distributor for Volvo, Renault and Valtra. It has 35 sales agencies and authorized workshops across Paraguay.

Mercedes-Benz confident of taking on competition in India

BMW, Audi and Volkswagen notwithstanding, Mercedes-Benz is confident of continuing to do very well in India, taking on all newcomers on its own turf

Mercedes-Benz India is confident that despite increased competition from newcomers like BMW, Audi, Volkswagen, Volvo and other, its sales will continue to climb, and even hit an all-time high this year.

Between January and April 2008, Mercedes-Benz has sold 1,330 units in the country, against 2,491 units sold in all of 2007. That may partly be because of the all-new C-class, which is doing very well, selling 681 units in just four months this year, while a total of 779 units were sold in all of 2007. Plus, Mercedes-Benz has also sold 221 units of the S-class, 371 units of the E-class, 57 CBUs (various models) in January-April 2008.

Mercedes-Benz’s current annual sales target is 3,000 cars, which they are confident of achieving easily. The company has started offering attractive finance schemes, which will probably make it relatively easier for some people to fulfill their dream of owning a Mercedes.

In addition to its existing manufacturing facility at Chikhali, near Pune, Mercedes-Benz is also setting up a new plant in Chakan (also near Pune), which will have an annual production capacity of 5,000 units per annum. Once the new plant is operational by mid-2009, Mercedes-Benz will have a combined production capacity of 9,000 cars per annum in India.

HM posts 79.37% fall in Q4 net profit

HM has to be the bravest car manufacturer in the whole world!

Hindustan Motors has reported a decline of 79.37 percent in its standalone net profit for the quarter ended 31st March 2008, at Rs 10.95 crore, compared to Rs 53.07 crore in the same period in 2007. (Of course, with its terribly outdated cars and near-defunct dealer network, it’s a wonder the company is making any profit at all. But wait, that’s not all – read on…)

HM’s total income during the quarter actually increased by 23.06 percent, at Rs 194.22 crore, against Rs 157.82 crore in the year ago period. The audited standalone net profit for the year ended 31st March 2008 was at Rs 30.84 crore, compared to Rs 13.30 crore last fiscal, an over two-fold jump.

HM's total income for 2007-08 also increased by 6.70 percent, at Rs 677.89 crore, against Rs 635.34 crore during previous financial year.

The company says on its website, 'The leader in the Indian Automobile Industry, creating Customer Delight and Satisfaction through product and services. Enhancement and Respect of Human Resources. A pride of India.' Indeed, HM is not giving up anytime soon...!

Renault-Nissan-Bajaj ULC small car to go on sale in India by 2011

Ok, nobody really knows what the Nissan-Renault-Bajaj ULC car will look like, but we'll bet it won't be dowdy...

After the Tata Nano created the Rs one lakh car segment, other companies also want a slice of the action. And quickly moving ahead in the race to offer ultra low cost cars in India is Renault-Nissan, who’ve tied up with Bajaj for the same.

The Renault-Nissan-Bajaj small car, codenamed the ULC, will be built at an all-new manufacturing facility in Chakan, near Pune, and initial capacity will be four lakh units per annum. Apart from selling the car in India, the company will also look at exporting the car to other emerging markets.

Bajaj will hold a 50 percent stake in the small car JV, while Nissan and Renault will hold 25 percent each.

Bosch bets big on parallel hybrid systems which cut CO2

Hybrid drives for automotive applications, combining the internal combustion engine with an electric motor, offer significant potential for reducing both fuel consumption and CO2 emissions. Bosch is currently working on the development of a parallel hybrid system, with modular components which can be customized to meet individual OEM requirements and, due to the make-up of the system can also be combined with different transmission types. Bosch already has its first orders for both gasoline and diesel hybrids.

Diesel hybrids produce 20 percent less CO2 than conventional diesel engines, while the emissions for petrol hybrids are up to 25 percent less than their conventional counterparts. Coupled with technologies such as gasoline direct injection and optimised transmission systems, hybrid systems can offer further improvements to fuel consumption and emissions.

The electric drive of the Bosch parallel hybrid system generates enough power to allow a vehicle to cover short distances using solely electrical power, therefore reducing CO2 emissions completely. It also acts as a powerful boost for the internal combustion engine – a significant benefit for urban driving.

Alongside this parallel system, Bosch is also developing several further hybrid concepts as well as a number of simpler methods to allow notable CO2 reductions such as innovative start-stop techniques and the recovery of braking energy via the alternator.

Bosch predicts that by 2015, the hybrid market will be split 50:50 between parallel hybrid systems, the main focus of Bosch hybrid development, and distributed hybrids. The potential growth markets for hybrid drives include the NAFTA countries – Canada, the United States and Mexico – and Japan, as efforts are made by these countries to further reduce emission levels. Bosch believes that, by 2015, hybrid vehicles will account for nine per cent in Japan and four per cent of production in the NAFTA countries. Forecasts for Europe are comparatively low, with hybrid production accounting for only one per cent.

Over 30 years of expertise in electric drives
Bosch has been working on hybrid technologies for over 30 years and has a wealth of experience at its disposal – including extensive knowledge in battery, electric drive, and brake management as well as engine management and transmission control. In addition, the company already has a wide range of components that can be used in both parallel and distributed hybrid systems, including powerful electric motors, the necessary power electronics, and DC/DC converters.

The introduction of hybrid drives will also result in the use of electric auxiliary systems where, again, Bosch already has the appropriate products available, such as electric water pumps. A cooperation agreement with transmission manufacturer Getrag for the development and marketing of parallel hybrid systems in conjunction with dual clutch transmissions and electric final-drive units rounds off the portfolio.

"Our broad-based footing gives us the expertise required for complete system integration of hybrid drives," says Dr. Matthias Küsell, head of the hybrid project program in Bosch's Gasoline Systems division. The "Bosch Hybrid Systems Project Unit" has assumed this task. Midway through 2007, it employed over 250 people involved in hybrid drive development and sales.

Volvo to invest in Seeing Machines technology

New developments in technology allow in-car or in-CV computers to track a driver's facial and eye movements to determine whether he or she is getting tired, and warning beeps are emitted if the machine detects the driver is getting drowsy...

Studies show that lack of attention is the single largest cause of traffic accidents. As a consequence – and part of the Volvo Group’s comprehensive safety efforts – Volvo Technology Transfer is now investing in Seeing Machines, which is technology developed by an Australian company that detects and warns vehicle drivers in the event of tiredness

Experiences from the Volvo Group’s accident investigations and general traffic safety research, findings from which could also be very useful for India, show that accidents are a combination of the human factor, vehicle problems and/or the traffic environment, in which the human factor accounts for 90% of accidents.

This was confirmed by new research conducted at the Virginia Tech Transport Institute that demonstrates even more distinctly that inattentiveness, due to tiredness or distraction, is the single largest and most significant cause of accidents.

Seeing Machines is a company that arose from the research results from a number of research projects at the Australian National University (ANU) between 1997 and 2000. The company specializes in computerised technology that is able to track and follow head and eye movements and facial expressions. The technology is applicable for products within areas including vehicle safety, medical diagnosing, simulation, marketing and games.

Within the vehicle safety area, Seeing Machines’ offers include a small camera that automatically detects signs of driver tiredness and distraction. A specific calculation program processes the information from images and measures the position of the head and rotation, eye movements and eyelid behaviour. The degree of tiredness in the driver is measured by registering how the eyes open and close and, should the driver close his/her eyes, this is registered directly. Distraction and work load is measured using head and eye movements.

“We hope that this technology will reduce the number of accidents on our roads and become an important feature in safety efforts at vehicle manufacturers,” says Stig Fagerståhl at Volvo Technology Transfer and responsible for investing in Seeing Machines.

Indian Railways to sign MoU with French counterpart for high-speed rail network in India