Tata Motors shows electric Indica at the Bologna Motorshow

The Indica EV is powered by polymer lithium-ion batteries
Pic: Auto Express

While it may be still some way off becoming a production reality, the electric Indica has started doing the motorshow circuit. The Indica EV, powered by polymer lithium-ion batteries, is currently being exhibited at the Bologna Motorshow in Italy.

With a range of 200km, charging time of eight hours and zero to 100km/h acceleration time of under 10 seconds, the Tata Indica EV could be a capable and practical four-seater city car. The vehicle is currently undergoing rigourous testing and will be launched in Europe next year. We expect Tata Motors to launch this battery-powered electric Indica in the Indian market in 2010.

Carlos Ghosn elected 2009 ACEA President

Carlos Ghosn will be President - ACEA, from 1st January 2009

The Board of Directors of ACEA, the European Automobile Manufacturers' Association, has elected Carlos Ghosn as its new President. Carlos Ghosn, than man responsible for the Nissan turnaround of a few years ago, and currently the CEO of Renault and Nissan, will take over as ACEA President from Christian Streiff, CEO of PSA Peugeot Citroën, on the 1st of January 2009.

‘The global automotive industry is facing two significant challenges, with a severe financial meltdown twinned with an economic recession, and a major transition to low-emission vehicles. In this context, an effective dialogue with EU institutions and governments is more important than ever,’ said Ghosn, reflecting on the expected priorities of his term as ACEA President.

‘It has been a dynamic year for ACEA with the CO2-emission regulation for passenger cars on the top of the agenda as part of Europe's ambitious commitment to energy and climate-change management,’ said Streiff. ‘It is essential that ACEA continues to express a shared, clear and strong vision on the many issues affecting the automobile industry, especially at a time when it faces an unprecedented crisis.’

Iveco delivers special 4x4 fleet for Arctic expedition

The Iveco vehicles that will participate in the 'Beyond the Edge' Arctic expedition

Commercial vehicles manufacturer, Iveco has delivered six special vehicles for the Oltre – Beyond The Edge 2008 expedition to the Arctic. The expedition will be travelling from North Cape to the Bering Strait, to celebrate the 90th anniversary of the North-East passage completed by Norwegian explorer Roald Amundsen.

The presentation of the vehicles took place at Iveco’s headquarters in Turin, in the presence of Petter Johannesen, expedition head and descendent of Roald Amundsen. Johannesen will use a fleet of four Massif five-door vehicles and two Iveco Daily 4x4s that have been specially equipped to tackle the challenging climatic conditions of the freezing Nordic winter.

The expedition’s route will take it into some of the most difficult conditions in the world for motor vehicles, where temperatures routinely drop to below -50°C. Indeed, -20°C is already cold enough to cause critical static stress on materials and components. Plastics, for example, become hard and fragile; physical transformations cause oils and fluids to lose their effectiveness; rubber parts and electrical cables crack and break far more easily. Whilst moving, the vehicles will have to face up to extreme dynamic stress caused by the hardening of shock absorbers and the freezing of hydraulic components.

According to Iveco, the company was happy to accept the challenge posed by these conditions and to supply the expedition with the extremely reliable vehicles it requires. Both the Dailys and Massifs have been specially prepared to guarantee maximum performance under even the toughest conditions. In particular, special guards have been fitted to protect mechanical parts against impacts and the fuel systems have been adapted to ensure an adequate supply to the main systems whatever the conditions.

The ‘Oltre – Beyond The Edge 2008’ expedition will set off on Sunday 7th December from Milan’s main commercial street, Corso Buenos Aires. For more details, visit the official website here

UMTC, InDevelop join hands to bring radio autorickshaw facility to Pune

With the radio autorickshaw service, calling an auto in Pune will be completely hassle-free

Under a project jointly promoted by the Urban Mass Transit Company (UMTC) and the Delhi-based InDevelop, the city of Pune will soon be getting radio autorickshaws, a service which is expected to boost convenience for the residents of Pune. Among others, the project is also supported by the Pune Regional Transport Authority (RTA).

Under the project, a central control room for autorickshaws will be set up in Pune, and autorickshaw drivers will be given mobile phones. People who want to call an auto will be able to call the control room, which will then direct the nearest available autorickshaw to the caller’s location.

While there are more than 50,000 licensed autorickshaws plying the streets of Pune, only around 2,000 have currently enrolled for the radio autorickshaw scheme. Drivers of these vehicles are being provided with specials uniforms, personal accident insurance, ID cards and badges, as well as various other benefits that are being provided by UMTC and InDevelop.

An investment of around Rs 10 crore has been planned for this project, of which Rs 40 lakh has already been invested. The promoters plan to brand the auto rickshaw service at a later stage, and will also use the autos as mobile advertising billboards, to earn extra revenue. InDevelop plans to start similar services in Nashik, Thane, Surat and Ahmedabad over the next few months.

M&M plants to remain shut for six days this month

In a bid to deal with slow demans, Mahindra & Mahindra Ltd. will keep most of its manufacturing facilities shut for six days, this month. ‘Taking into account the slowdown in demand for the company's products, it has been decided to align the company's production plan with the expected demand for the month of December,’ says a press release from Mahindra.

Last month, M&M saw a decline in sales of around 40% for its utility vehicles, while there was an 80% decline in the sales of the Mahindra-Renault Logan.

Mercedes-Benz may launch financial services subsidiary in India

In an attempt to deal with the current liquidity crunch in the Indian automotive scenario, Mercedes-Benz is said to be considering the possibility of bringing its financial services arm – Daimler Financial Services – to India. Mercedes, which has faced declining sales over the last three months, thinks the lack of available funding is the main reason for the slowdown in the sales of its cars.

On the other hand, Mercedes-Benz also believes the slowdown is only a temporary phenomenon, and sales will bounce back in due course of time. The company believes the current financial crisis will pass in a few months, and remains committed to its investment plans for India.

Indian Government cuts petrol, diesel prices

Given the significant decline in international crude prices, the Indian government has reduced prices of petrol and diesel, by Rs 5 per litre and Rs 2 per litre respectively. LPG and kerosene prices, however, have not been changed.

‘To protect the interests of the common man and to pass on the benefit of the fall in international oil prices, the Government has decided, as an interim measure, to reduce the price of petrol by Rs 5 a litre and diesel by Rs 2 a litre, with effect from December 6,’ said Petroleum Minister, Murli Deora.

At these revised prices for petrol and diesel, oil PSUs in India – Indian Oil Corporation Ltd., Bharat Petroleum Corporation Ltd. and Hindustan Petroleum Corporation Ltd. – will incur under recoveries of about Rs 110,000 crore for the current fiscal.

Fiat 500byDIESEL goes on sale, but only online

The new, limited edition Fiat 500byDIESEL

Fiat is doing a limited edition version of the popular 500 – the Fiat 500byDIESEL – which will only be available online. Only 10,000 units of this car, which is the result of a collaboration between Fiat’s Style Centre in Turin and fashion label DIESEL, will be built.

The Fiat 500byDiesel represents the company’s first venture into selling vehicles via the Web, where a fully automated process allows customers to configure a 500byDIESEL, pay a deposit, order it direct from the factory, track the car’s progress, make a final payment and liaise with a geographically appropriate dealer about collecting the new vehicle.

For more details, visit the Fiat website here

Ford gets 2,000 bookings for updated Ikon in under a month

Proving that the age-old Ikon still has an appreciative audience left in the country, Ford India has managed to garner more than 2,000 bookings for the updated version of the car, which was launched less than a month ago.

With a mild facelift, a new 1.4-litre ‘DuraTorq’ diesel engine and a very reasonable price tag, the Ikon does indeed seem to have got a fresh lease of life. Both, the TDCi diesel and the earlier 1.3-litre petrol engine are, according to Ford, tailor-made for ‘Indian driving conditions.’ We don’t really know what that means, and the Ikon is still a decade old car with a not-very-strong safety record, but at least it’s one bright spot in an another glum Indian automotive scenario…

Bridgestone Corp., Sundaram Industries in JV for manufacturing automotive rubber components

Bridgestone Corp. and Sundaram Industries Ltd. have agreed to set up a joint venture for making rubber components for automotive OEMs in India. The two companies have anyway been working together for the last 12 years – in the area of developing rubber components for the automotive industry – and will now be further strengthening their business association with this JV.

The new JV company will be headquartered in Chennai, and will be operational in the first quarter of 2009. To be set up with a capital investment of around Rs 36 crore, the company will be 51% owned by Bridgestone, with the remaining being held by Sundaram.

In the first phase, the JV company will manufacture anti-vibration rubber components (used to suppress NVH) at its plant at Manesar, while another manufacturing facility will be set up in south India – probably near Chennai – in the future.

Hyundai announces i20 prices in Europe

The new Hyundai i2o goes on sale in Europe next month, prices start at the equivalent of Rs 6.30 lakh for the base 1.2-litre model

Hyundai started exporting the i20, which is being built at HMIL’s plant in Sriperumbudur, from India to Europe in the first week of November this year. Now, Hyundai has announced prices for the i20 in UK, and the base model car, powered by Hyundai’s 1.2-litre petrol Kappa engine, is priced at the equivalent of Rs 6.30 lakh. The car will go on sale in the UK next month.

When it’s launched in India early next year, we expect the Hyundai i20 to be similarly priced here, though there may be a difference in equipment levels. All i20s in the UK are equipped with air-conditioning, six airbags, active head restraints, remote locking and electric front windows, and come with a five-year unlimited mileage warranty.

When the i20 comes to India next year, it will be up against cars like the Skoda Fabia, Honda Jazz and Fiat Grande Punto, and is likely to be the most reasonably priced of the lot.

Nissan unveils NV2500 LCV concept in the US

By 2012, Nissan is aiming for 'leadership status' in the LCV segment worldwide

Nissan, which plans to launch up to 13 new LCVs by the year 2012, and which also plans to start its LCV operations in India in 2010, wants to achieve ‘leadership status’ in the light commercial vehicles segment. And yes, the company is already working towards achieving that objective.

Nissan recently unveiled its NV2500 light commercial vehicle concept, which could be a glimpse at the things to come from Nissan in the near future. With its flexible utility and storage spaces, mobile office/workspace design including a computer workstation, fold-down conference table, numerous storage compartments and cargo/tool tie-down racks, the NV2500 is designed to be a reliable, durable and versatile LCV.

Nissan will enter the CV business in the United States in 2010, with a product lineup that will incorporate three new commercial vehicles being developed by Nissan specifically for the North American market.

Ultimately, as part of a global commitment to the CV segment, Nissan plans to forge partnerships with Cummins Inc. for engines and ZF Friedrichshafen AG for transmissions. The first Nissan commercial vehicle is scheduled to be launched in the first half of 2010. For more details, visit the Nissan LCVs official website here

Hyundai India slashes car prices across its range

After Honda and Ford, it’s now Hyundai Motor India Ltd. that’s going in for price cuts to boost sales. Apart from offering benefits like free insurance and exchange bonus, HMIL has slashed prices on the Santro, Accent and Verna.

Price cuts announced are Rs 33,000 on the Santro, Rs 7,200 on the Accent and Rs 24,000 on the Verna. Hyundai dealers are also offering things like free insurance, exchange bonuses and free car accessories in a bid to boost sales.

Chrysler seeks US$7 billion loan, gets ready for an electric car future

No more SUVs and pickup trucks. If it survives, Chrysler will concentrate on EVs!

Chrysler, which is currently asking for US$7 billion in federal loans in the US, is also looking at a comprehensive restructuring plan, which essentially includes a lot of electric vehicles. The company, which expects to have only around US$2.5 billion in its cash reserves by the end of this year, is looking at expenses of more than US$11 billion in the first quarter of 2009. A dire predicament if ever there was one, but Chrysler is trying hard to come out of the mess…

If it gets the aid it’s asking for, Chrysler will be looking at launching various kinds of electric and hybrid vehicles, which it categorises into neighbourhood electric vehicles, city electric vehicles, range-extended electric vehicles and full-function battery-powered electric vehicles. According to the company, its product plan includes the introduction of its first full function electric car in 2010, and additional models by 2013.

So, from massive SUVs and pick-trucks to ‘neighbourhood electric vehicles,’ it’ll be a long, long journey for Chrysler. We just hope the good old American company can pull it off once more…

Ford looking to sell Volvo, asking price may be US$6 billion

Ford wants to sell its Volvo car brand for US$6 billion...

Ford Motor Co., which bought the cars division of Volvo in 1999, for US$6.4 billion, is now said to be looking for a buyer for the Volvo brand. Ford has, reportedly, hired JPMorgan Chase & Co. as an advisor, and is looking to sell Volvo for around US$6 billion.

Volvo cars have always been associated with excellent build quality and safety, and possible Volvo buyers include various Chinese carmakers, the US-based buyout firm TPG Inc., and a conglomerate arranged by the Swedish government.

On its part, Ford sees the selling of Volvo as a way of cutting expenses and ultimately returning to profitability. The company has lost money to the tune of US$24 billion between 2005 and now, and Volvo’s third-quarter pre-tax loss of US$458 million this year, certainly isn’t helping things.

According to some analysts, Volvo’s ‘problem’ is that it’s heavily dependent on its sales in the US and Western Europe, which are also the two markets that are falling the fastest.

Volvo AB, the world’s second-largest commercial vehicles manufacturer, is said to be keen to help the Volvo cars brand, but will not buy the division back from Ford, saying it will not be economically viable for it to do so.

Volvo is the last remaining brand from Ford's former premium auto group (PAG), that once used to include Volvo, Aston Martin, Jaguar and Land Rover brands.

Ashok Leyland sales decline 60% in November 2008, exports up by 19%

With the commercial vehicles market in India floundering in a big way, Ashok Leyland Ltd. has reported a 60.22% fall in its sales in November this year. The company sold 2,307 units in November this year, compared to 5,800 units in November 2007.

ALL’s domestic sales during the month stood at only 1,788 units, a big decline over the 5,366 units sold in November last year. The company’s total vehicle sales in the domestic market, including medium and heavy commercial vehicles, stood at 1,772 units against 5,323 units last November. LCV sales stood at 16 units in November this year, down from 43 units in the year-ago period.

Exports was one bright area for Ashok Leyland – 519 units in November this year, compared to 434 units in November 2007, an increase of 19.58%.

Indian Government may cut petrol, diesel and LPG prices next week

In line with the decline in global oil prices, the Indian government may soon cut prices of petrol, diesel and LPG. Expected to be implemented as soon as next week, the reduction in prices is expected to be around Rs 10 per litre for petrol, Rs 3 per litre for diesel and Rs 20 per cylinder for LPG.

Currently, for the first time in three years, oil PSUs in the country are selling petrol and diesel at a profit of about Rs 14.89 per litre and Rs 3.03 per litre respectively. However, the oil PSUs are still losing Rs 17.26 on every litre of kerosene sold, and Rs 148.32 per cylinder (the 14.2kg domestic cylinder) of LPG.

According to some statistics that are available, State-run oil PSUs in India are earning Rs 44 crore and RS 42 crore per day, on the sale of petrol and diesel respectively. However, they’re also losing Rs 66 crore and Rs 29 crore per day, on the sale of kerosene and LPG. That’s a net loss of Rs 9 crore per day.

In the face of Indian oil PSUs’ massive accumulated losses, it remains to be seen just how long the government can keep subsidising prices of petrol and diesel, before these fuels become simply unviable for automotive use. We’re sure those manufacturers with electric cars in the pipeline are listening…

Delphi's Direct Acting Piezo injector to be first used on the Mercedes-Benz C250 CDI

Delphi claims its new DA Piezo injector is a major breakthrough in diesel engine tech

The US-based automotive components manufacturer, Delphi has announced that the company’s new Direct Acting Piezo injector will first be used on the Mercedes-Benz C250 CDI.

Delphi claims that its DA Piezo injector represents a radical break-through in common-rail diesel engine technology, as the injector needle is directly activated by the Piezo stack (instead of being moved via an electro-hydraulic circuit, as with existing fuel injection technologies), removing the lag and energy consumption associated with the use of electro-hydraulic circuits.

The company claims this new technology, which makes for more accurate and consistent fuel delivery, will allow carmakers to comply with new emission legislations, while also providing more power and better fuel economy.

‘Delphi has surpassed a major milestone in diesel technology history and there is no better way to write this new chapter than to be partnered with Mercedes-Benz, the company with the industry's longest history in diesel engines,’ says Jose Avila, general manager, Delphi Diesel Systems.

Upcoming BIS certification requirement could create problems for the Indian automotive industry

From February 2009, according to a new set of standards set by the Bureau of Indian Standards, carmakers in the country will have to start using galvanised steel sheets that are BIS certified. Since these are not manufactured in India, foreign manufacturers, who supply the said sheets to carmakers in India, will need to get their products certified by BIS.

According to some carmaker representatives, the amount of galvanised steel sheets exported to India is quite small compared to their foreign manufacturers’ total production, which is why those manufacturers may not be too keen on getting their product BIS certified.

The Indian car industry hopes to set up a dialog with the Indian government, asking for exemption from BIS certification for automotive galvanised steel sheets that are being imported into India. ‘We will be speaking to the ministry of steel and BIS to get these categories out of the list. Without the exemptions, there may not be subsequent quantity of steel available in the country in February,’ says Dilip Chenoy, Director General, SIAM.

New VW Golf Plus premieres at Bologna Motor Show

The new Volkswangen Golf Plus. We hope it also comes to India next year!

Volkswagen has unveiled the second-generation Golf Plus at the Bologna Motor Show in Italy. According to a VW press release, ‘The updated design of the new Golf Plus forges a link to the body style of the sixth generation Golf hatchback, and gives a distinctive and dynamic appearance.’

Exterior styling modifications on the new Golf Plus are complemented by a range of new wheel and tyre options, including 18-inch ‘Bilbao’ alloy wheels from Volkswagen. Inside the cabin, new upholstery materials and revised instrumentation complete the package.

The Golf Plus will be available with a range of petrol and common-rail diesel engines, with a choice of five- and six-speed manual gearboxes, as well as six- and seven-speed DSG automatics. High-tech bits like VW’s ParkAssist (which has the ability to operate the steering automatically during reverse parallel parking manoeuvres!) will also be made available on the Golf Plus.

With bigger hatchbacks like the Skoda Fabia, Hyundai i20 and Honda Jazz coming to India, we would not be surprised if Volkswagen also decides to bring the Golf Plus to the Indian market in the next year or two.

Honda releases first pics of the Insight production car

The first official picture of the production-ready Honda Insight Hybrid

Honda has released the first photograph of the production version of the all-new Insight Hybrid, which makes its world debut in January 2009, at the Detroit Motor Show.

Honda aims to sell 200,000 units of the Insight worldwide, per year. The five-seater Insight Hybrid will be the first of a new family of Honda hybrids, and will be followed by a production version of the CR-Z concept, and the Jazz Hybrid. And since the Civic Hybrid sold so well here (well, at least it did, after the price cut…!), we’re quite sure Honda’s range of hybrid cars, including the Insight, will also be coming to India by 2010.

Ford Fiesta prices slashed by up to Rs 91,000

If Yana can't persuade you to buy a Ford Fiesta, perhaps the price cut will help...

Hoping to end the year 2008 on a high note, Ford India has slashed prices on the Fiesta – by up to Rs 91,000 – hoping it’ll lure an extra few customers into Ford showrooms across the country. After all, as we’ve recently seen with the Civic Hybrid, nothing sells cars better than a huge price cut…

Under this offer, which is only valid for 10 days (from 3rd to 12th December) the petrol variant of the Ford Fiesta will be available at Rs 5.29 lakh (down from its original price of Rs 6.20 lakh), while the diesel variant will be available at Rs 6.59 lakh (down from its original price of Rs 7.10 lakh). After the 12th of this month, Ford says it will go back to the old prices for all Fiesta variants.

For more details on the specific pricing for all Fiesta variants, visit the Ford India website here

Force Motors to sell 20% stake in its JV with MAN Nutzfahrzeuge

Commercial vehicles manufacturer, Force Motors has announced it will reduce its stake in its joint venture with MAN Nutzfahrzeuge from the current 70% to 50%.

The proposed change in the MAN-Force joint venture equity structure will take place in two steps; Force Motors will first sell 14.2% stake to MAN for Rs 300 crore, and later, MAN will infuse about Rs 250 crore in the JV through subscription of a rights issue (which Force Motors will refrain from subscribing to). Hence, MAN’s stake in the JV will ultimately go up to 50%.

Once the transaction is completed – which is expected to happen over the next few weeks – the enterprise value of the JV will stand at around Rs 2,000 crore. Under the JV, which was set up in 2005, Force-MAN was to manufacture heavy commercial vehicles in the 20-40 tonne range, but the venture has, apparently, been less than successful than anticipated earlier.

In the new set up, Force Motors will continue to nominate the chairperson for the JV, while MAN will nominate the Vice-Chairman and one of the two Managing Directors. The MAN-nominated MD will handle production and logistics, while Force Motors’ people will manage everything else.

With this move, MAN hopes to catch up with some other European commercial vehicle manufacturers like Volvo and Daimler, which the German company feels have raced ahead in the Indian market, while the MAN-Force JV has been left dragging its feet.

HMSI steaming ahead despite lack of innovation and dated products

Honda Motorcycle and Scooter India (HMSI) has reported an increase in sales of around 40% in November this year, compared with its sales in the year-ago period, and is targeting production of one million units in this fiscal.

HMSI sold 63,004 scooters and 37,158 motorcycles in November 2008 – a total of 100,162 two-wheelers – which compares very well with the 72,085 units which the company sold in November last year. This significant increase in sales is, in fact, rather surprising since Honda offers a very limited line-up of two-wheelers in the Indian market.

Despite the fact that it only sells a bunch of outdated scooters and some basic 125cc and 150cc commuter bikes that are not as powerful, stylish or well-equipped as the competition, HMSI has actually increased its market share from 10 percent to around 13 percent over the last 12 months.

While companies like Bajaj and TVS have been playing the style and performance cards, trying to woo the urban youth with their racy new bikes, HMSI is happy to coast along with its rather more staid products. Of the company’s bikes, only the new CBF Stunner, a 125cc machine, can lay any claim to elements like style and performance, but that does not seem to bother HMSI too much…

So, is there a lesson here? Do Indian customers attach more value to the Honda brand name than they do to things like design, power, performance, features and equipment levels? Going by the HMSI story, it certainly seems that way. But it’ll be interesting to see how this story pans out over the next few years, as the Indian two-wheeler market evolves, and domestic players like Bajaj and TVS get more aggressive and sporty with their new bikes.

GM stops construction of engine manufacturing facility in Thailand

Given the severe problems the company is facing at home, in the US, it’s no wonder General Motors is focusing on staying afloat rather than expanding its activities worldwide. The automotive giant, once the no.1 carmaker in the world, is taking various steps to curb costs and generate liquidity these days. And in keeping with that, the company has temporarily stopped construction of its diesel engine manufacturing facility in Thailand, which was reportedly being set up at an investment of US$445 million.

‘The availability of cash is one of the problems for GM globally, and this is one of the reasons we have put on hold work at the site. Hopefully we will restart work within one year,’ says Steve Carlisle, President - GM Southeast Asia.

Hindustan Motors, Shandong Shifeng launch co-branded mini-truck in India

The HM-Shifeng Winner will take on the Tata Ace in the mini-trucks segment in India

Hindustan Motors, in collaboration with a Chinese company, Shandong Shifeng, has launched a mini-truck that will compete directly with the Tata Ace. Named Winner, the HM-Shifeng mini-truck will be built at HM’s Uttarpara plant, which last witnessed a new vehicle launch in 1983, when the Contessa sedan was introduced in the Indian market.

HM will assemble around 1,000 units of the Winner 2.3 tonne mini-truck per month, and hopes to introduce a CNG-powered variant by March 2009. The vehicle, which has a payload of one tonne, will initially be imported from China in the form of knocked-down kits, which will then be assembled at HM’s Uttarpara plant.

To be priced at Rs 3.9 lakh (ex Showroom, Kolkata), the HM-Shifeng Winner will soon go head to head against the Tata Ace, but even though HM claims that this is a stylish and reliable truck with the NVH characteristics of a car, it remains to be seen whether the consumer will be similarly convinced.

‘That HM has rolled out a new vehicle in this rather dismal atmosphere is praiseworthy. We have to encourage more auto companies to set up shop in the state,’ said West Bengal’s chief minister, Buddhadeb Bhattacharjee.

Michelin unveils its Active Wheel, claims it will change everything

The Michelin Active Wheel will, according to Michelin, allow a complete rethink on cars...

Michelin claims to have ‘reinvented the wheel’ with its Active Wheel. This, according to the French company, is an ‘intelligent’ wheel capable of propelling cars without petrol, while ensuring suspension and braking functions and providing unrivalled road handling and comfort.

According to a Michelin press release, the Active Wheel means no more engine under the front or rear bonnet, no more traditional suspension system, and no more gearbox or transmission shaft, because all essential components have been integrated into the wheel itself.

The Michelin Active Wheel incorporates a miniature drive engine and an electrical suspension system, which, claims Michelin, will make it possible to completely rethink the car. Hmmm… honestly, we don’t think this technology will go very far, but we wish Michelin all the best anyway!

M&M to cut down on production, may temporarily shut its plants

Mahindra & Mahindra has announced that it is considering the possibility of cutting down production, and may shut down some of its plants for a few days. This, according to the company, is due to the slowdown in sales in India as well as M&M’s overseas markets.

‘Our production will always be as per sales. There is still a slowdown in the market, so we will not over-produce,’ says Pawan Goenka, President - Automotive Sector, M&M. He added that the company does not want to fall into the trap of letting inventories build up at either its own facilities or at its dealers.

Goenka said that the company would decide on day to day operations going by the market conditions, and if warranted, M&M would temporarily shut down its plants, as various other automakers are already doing. With the worldwide economic slowdown, M&M’s sales in the domestic market have dropped, along with a 20-25% drop in exports.

However, M&M's plan to enter the US market with the Scorpio MUV is still on track, and the company is expected to start its foray in the US market by mid-2009. M&M is also going ahead with its plans to launch a small LCV in third quarter of 2009, and a new truck platform by the end of 2009.

HMIL domestic market sales down 23% in November 2008

Hyundai Motor India Ltd. (HMIL) has announced that its domestic passenger car sales fell 23.34%, to 14,605 units, in November 2008, as against 19,052 units in November 2007. However, the company's cumulative sales for the month, including exports, were up by 48.89%, to 43,105 units, compared with 28,950 units in the year-ago period.

HMIL’s exports for November 2008 went up to 28,500 units, a 188% increase over the 9,898 units exported in November last year.

The company sold 38,216 units of the Santro, Getz Prime and i10 hatchbacks, 4,883 units of the Accent and Verna sedans, two units of the Sonata Embera sedan and four units of the Tucson SUV, in November this year. Given the current economic scenario, Hyundai expects sales in the Indian market to decline over the coming months.

Hero Honda moves 289,426 units during November 2008, no dip in sales

After clocking sales of more than 600,000 units in October this year, Hero Honda Motors Limited (HHML) followed up with selling 289,426 two-wheelers in November, an increase of 0.49% over its sales figure for November last year.

The company's cumulative sales in the financial year so far (April-November 2008) has now risen to more than 2.5 million units, a growth of around 13% over the 2.2 million units sold in the corresponding period last year.

Hero Honda plans to launch some new bikes / variants before the end of this year.

Bajaj Auto: Two-wheeler sales down 37% in November 2008

Bajaj Auto has reported a 37% drop in its motorcycle sales during November 2008, at 131,681 units, as compared to 209,876 units sold in November last year. Bajaj’s total two-wheeler sales also witnessed a 37% drop, at 132,421 units, as compared to 211,600 units in the year-ago period.

The company’s three-wheeler sales fared better, at 27,326 units, against 24,197 units in November last year – an increase of 13%. Bajaj’s exports during November 2008 also went up by 46%, at 67,397 units, against 46,295 units during Nov last year.

Bajaj is, however, taking steps to try and ensure a revival in its sales figures. Among other initiatives, the company is looking at producing low-cost bikes in China (for some of its export markets), while group company Bajaj Auto Finance has introduced a retail finance scheme, with interest rates of 7.99%, which will be offered at Bajaj dealers across the country.

Bajaj Auto is also looking at launching up to six new bikes/variants over the next few months, in order to revive consumer interest and boost sales.

Mercedes-Benz unveils its AMG range for India

For rich car enthusiasts in India, Mercedes-Benz's AMG cars are coming to light up your lives...

While other carmakers are postponing new car launches and treading with more caution than ever before, Mercedes-Benz India seems to be steaming ahead at full throttle. The company recently presented its range of performance-oriented AMG cars in Gurgaon.

Mercedes-Benz will now be importing and selling its AMG range in India, which will include the SLK55 AMG, CLS63 AMG, S65 AMG, E63 AMG, SL63 AMG and C63 AMG. Given the stiff duties levied on CBU imports, these cars are expected to cost between Rs 1.25-3.25 crore in the country.

AMG is Mercedes-Benz’s high-performance tuning arm, which takes regular, production M-B cars and upgrades things like the powertrain, engine, suspension, brakes and electronics, to come up with vehicles that offer a significantly higher performance potential.

Tata Motors car sales decline 30%, CV sales down by 40% in November 2008

Tata Motors has reported total sales of 32,696 vehicles (including exports) for the month of November 2008, a decline of 30% compared to 46,947 vehicles sold in November last year. Cumulative sales for the company, at 338,110 units, declined by 6%. The

Commercial Vehicles

Tata Motors sales of commercial vehicles in November 2008 in the domestic market were 16,229 units, a decline of 40% compared to 26,895 vehicles sold in November last year. M&HCV sales stood at 5,792 units, a decline of 60% over November 2007, while LCV sales were 10,437 units, a decline of 16% over November 2007.

Cumulative sales of commercial vehicles in the domestic market for the fiscal were 181,123 units, a decline of 3% over 186,859 units last year. Cumulative M&HCV sales stood at 81,909 units, a decline of 16% over last year, while LCV sales for the fiscal were 99,214 units, a growth of 11% over last year.

Passenger Vehicles

Tata Motor’s sales of passenger vehicles in November 2008 in the domestic market were 14,327 units, a decline of 12% compared to 16,322 vehicles sold in November last year. The Indica range sales at 9,039 units declined by 13.8% over last November despite orders in hand which could not be converted into sales due to lack of financing in the market, but held close to October 2008 level of 9,484 units.

The Indigo range with sales of 3,477 units, reported a 73% growth over November 2007. Car sales of 12,516 units between the Indica and the Indigo range in the month of November 2008 are marginally up, compared to car sales of 12,502 units in November 2007, continuing the growth uptrend registered for the first time this fiscal in October 2008.

The Sumo and Safari accounted for sales of 1,811 units, a decline of 52.6% compared to November 2007. According to Tata Motors, the UV/SUV segment in the industry continues to be under pressure in the market since the July ad hoc imposition of an additional element of excise duty on vehicles having engine displacement of over 1.5 litres.

Cumulative sales of passenger vehicles in the domestic market for the fiscal were 129,246 units, a decline of 5.5% over 136,820 units in the same period last year. Cumulative sales of the Indica at 68,078 units, reported a decline of 25%, with de-growth having been controlled from a peak of 32.2% in July 2008 to 13.8% in November 2008, since the launch of the Indica Vista.

Cumulative sales of the Indigo family were 34,759 units, a growth of 86%. Cumulative sales of Sumo and Safari at 26,409 units went into a decline of 4% for the first time this fiscal arising from a slowing down of the segment since July.

Exports

The company's sales from exports at 2,140 vehicles in November 2008 declined by 43% compared to 3,730 vehicles in November 2007. The cumulative sales from exports for the fiscal at 27,741 units declined by 22% over 35,562 units in the same period last year.

M&M utility vehicle and tractor sales decline in November 2008

Mahindra & Mahindra notched sales of 10,430 units in the domestic market, in November 2008, as against 17,844 units in November 2007. Including exports, M&M sold a total of 11,273 vehicles in November this year, as against the total of 18,583 vehicles in November last year.

M&M’s domestic YTD volumes at the end of November this year stand at 154,654 units, as against 149,356 units in the same period last year. The company exported 843 units in November 2008, as against 739 units exported in November 2007.

M&M's Farm Equipment Sector (FES) notched domestic sales of 5,051 tractors in November 2008, as compared to 7,530 units sold in November last year. Exports during November this year were 436 units, as against 532 units for the same period last year. The total sales figure, including exports, was 5,487 units, as compared to 8,062 units for the same period last year.

M&M FES’ cumulative sales figure in this fiscal, including exports, now stands at 68,766 units, as compared to 70,288 units for the April-November period last year. Tractor sales in the domestic market stood at 63,742 units, as compared to 65,110 units for the April-November period last year.

Honda Siel records 15% increase in sales in November 2008

Honda Siel Cars India (HSCI) sold 5,090 units in November 2008, an increase of 15% over the 4,425 units sold during the corresponding month last year. The company started deliveries of the new City sedan by around mid-November, and sold 4,359 units by the end of the month.

In November this year, HSCI sold 4,359 units of the City, 462 units of the Civic, 83 units of the CR-V and 186 units of the Accord. The company’s cumulative sales during January – November 2008 stands at 50,468 units, as against 57,024 units during the same period last year.

DTC buses go high-tech, start using GPS

GPS systems have been fitted to 25 of DTC's AC buses

First it was air-conditioned buses, and now the Delhi Transport Corporation (DTC) is installing Global Positioning Systems (GPS) on its buses. These GPS systems, already installed in 25 DTC buses, feed details like current location and expected arrival time at various bus stops along the buses’ respective routes, to a central server.

Commuters with cellphones can access a Web-based public information system to find out the exact location of the bus they’re waiting for, and also find out the expected arrival time at the particular bus stop which they happen to be waiting at.

After its AC buses, DTC plans to install GPS systems on its non-AC low-floor buses, and some private buses in Delhi are also expected to get this technology.

TVS Motor’s sales down 12.73% in November 2008

TVS Motor Co. has reported a decline of 12.73% in its two-wheeler sales for November 2008, at 98,402 units, down from 112,766 units in November 2007. The company’s motorcycle sales dropped 20.7% to 45,276 units in November this year.

On the flip side, TVS’ exports doubled to 20,911 units in November 2008, as against 10,408 units in the year-ago period.

Maruti’s domestic sales down 26.9%, exports up by 11.7% in November 2008

Maruti Suzuki India has reported a 27.4% decline in car sales during November 2008, at 47,103 units, down from 64,885 units sold in November last year. Maruti’s total vehicle sales during the month were down by 24.4%, at 52,711 units, against 69,699 units in November 2007.

Sales of the Maruti Alto, Zen Estilo, Wagon R, Swift and A-Star were down 26.6%, at 34,976 units, compared to 47,641 units sold in November last year. However, sales of the SX4 and DZire went up by 40.3%, at 5,975 units, compared to 4,260 units last year.

The company’s domestic sales were down by 26.9%, at 47,704 units, compared to 65,216 units in the corresponding month last year. On the other hand, Maruti’s exports during the month grew by 11.7%, 5,007 units, compared to 4,483 units in the year-ago period.

GM to make India its Asia Pacific development hub for powertrains

In stark contrast to its US operations, which seem to be serious trouble right now, General Motor’s Indian arm seems to be doing at least reasonably well. General Motors India, which has announced new investments of up to US$500 million in the country, is working towards setting up new car and powertrain manufacturing facilities, and hopes to be hiring 500 new employees in the second half of 2009.

General Motors has, in fact, decided to make India its powertrains development hub for the Asia Pacific region and given that this region covers countries like Australia, China and Korea, the decision seems pretty significant.

GMI, which already employs around 1,600 people at its engineering and R&D centre in Bangalore, will be adding more manpower and enhancing its technology-related capabilities in a big way over the next few months. And while development work would be the key focus for now, later, GM could also look at making India its manufacturing hub for powertrains, which it would primarily use in Asian and Eastern European markets.

Bajaj to make cheap bikes in China!

According to reports in the media, Bajaj Auto is all set to turn the tables on Chinese motorcycle manufacturers by taking them on at their own game – making and selling ultra-low-cost two-wheelers for developing markets.

Bajaj Auto is said to have arrangements in place with certain companies in China, which would, on a contract basis, manufacture 125cc bikes for Bajaj. These bikes would be sold at the equivalent of around Rs 20,000-25,000 in some of Bajaj’s export markets, including China and Africa.

However, Bajaj will not sell these low-cost two-wheelers under its own brand. The company, which wants a high-quality, high-tech image for its brand, will develop an all-new brand for its low-cost lineup of Chinese-built bikes.

In the 100-125cc bikes segment in India, Bajaj has fallen behind chief rival Hero Honda. Under the new strategy, the company’s new range of Chinese-built bikes might ultimately also be introduced in India – perhaps by 2010 – to take on Hero Honda in the 100-125cc segment.

In the meanwhile, the Chinese are said to be selling more than 12 million low-cost bikes per annum, worldwide. And Bajaj Auto wants a significant chunk of that market with its own Chinese-built motorcycles – an objective which, if achieved, will add tremendously to the company’s bottomline.