Truck sales down 73.5% in December 2008

In keeping with the downturn in the worldwide economy, truck sales in the country declined by 73.5% in December last year – only 6,221 units were sold, as compared to 24,222 units in December 2007.

Apart from the general recession, the decline in truck sales was also due to excess capacity build-up and a significant reduction in cargo movement, according to the Indian Foundation of Transport Research and Training (IFTRT).

Sales of tractor-trailers in the 30-49 tonne range was down to 114 units in December 2008, down from 2,143 units in December 2007, while sales of tipper trucks stood at 1,462 units, down from 5,358 units, in the same period. MCV sales went down from 4,159 units in December 2007 to 1,635 units in December 2008, while LCV sales went down from 3,294 units to 1,586 units in the same period.

Various commercial vehicle manufacturers in India have resorted to temporary plant shut-downs and production cutbacks. OEMs and component suppliers expect it will take at least another six months before commercial vehicle sales get back on the fast track.

Peugeot wants a slice of the Indian car market. Again

The Peugeot 309 was already obsolete when it was launched in India in 1994, and sales never took off...

Peugeot first tried its luck in India in the mid-1990s, when the French company tied up with Premier Auto and launched the 309 sedan here. Though that was a different era and there was hardly any competition for Peugeot, the 309 was already a very old, outdated car when it was launched in India, and sales never took off. Peugeot, which came to India in 1994, beat a hasty retreat in 2007.

Now, according to some reports in the media, PSA Peugeot Citroen is looking at coming back to the Indian market. The French conglomerate is said to be interested in sourcing automotive components from here and also, perhaps, setting up a production base in India for some of Peugeot’s and Citroen’s cars.

According to Rajesh Nellore, a senior management official who’s in charge of handling PSA Peugeot Citroen’s operations in India, the company is exploring the possibilities of getting into a JV with a local partner or even setting up a fully-owned subsidiary, for producing cars for the Indian market. As we reported in September last year, the carmaker has set up an office in Chennai and is now in the exploratory phase before it decides on its future course of action.

Reva L-ion: RECC announces lithium-ion electric car for Europe

Existing Reva owners will also have the option to upgrade to lithium-ion batteries

The Reva Electric Car Company (RECC) has announced the launch of the Reva L-ion – a new electric vehicle powered by lithium-ion batteries. Based on the earlier Reva-i platform, the Reva L-ion had been in development for the last two years. The car can travel 120km on one full charge and has a top speed of 80km/h. And the best part is, with RECC’s fast charge station, the Reva L-ion batteries can be 90% charged in just one hour.

Based in Bangalore, in India, RECC has been a pioneer in the world of electric cars, and its cars have been sold as the Reva in India and as the G-Wiz in the UK for many years. With the Reva L-ion, which offers increased driving range, more power, better drivability, reduced charging time, improved cold weather performance and a new proprietary battery management system, RECC hopes to up the ante in its endeavour to take EVs mainstream.

‘With the Reva-i and Reva L-ion, we are now able to offer a choice of performance options to suit commuter needs and preferences. The introduction of fast charge stations really opens up the market to reach new customers and increase the availability of EVs. Local authorities and businesses can now create the charging and parking infrastructure necessary to make zero-emission personal transport an everyday reality,’ says Chetan Maini, RECC's deputy chairman and chief technology officer.

Starting in February this year, the Reva L-ion will be available in Norway, UK, France, Cyprus, Greece, Spain, Belgium and Ireland. Customers will have the option of outright purchase or battery leasing, with prices to be announced at the end of this month.

RECC is also developing upgrade kits that will enable existing Reva owners to upgrade to the lithium-ion powertrain later in 2009. What about the availability of the Reva L-ion and/or the upgrade kit in India? RECC is expected to make an announcement regarding this, soon. In the meanwhile, the company is tying with Reliance Digital (the consumer durables arm of Reliance Retail) for selling its cars through the latter's outlets. 'Sale of electric cars at Reliance digital outlets is part of our initiative that looks at alternate methods to reach potential customers. It will also give us access to a wider customer base,' says R Chandramouli, President (sales & marketing), RECC.

Porsche Panamera Gran Turismo to be officially unveiled at Auto Shanghai 2009

The all-new four-door Porsche Panamera GT should be in India by end-2009!

The new four-door Porsche Panamera sports sedan will be publicly unveiled in China, at the Auto Shanghai 2009, which will be held between 20-28 April. The Panamera will make its world debut one day before the show starts, on the 19th of April.

According to the company, the Panamera offers the sporting and dynamic characteristics expected from a Porsche, combined with a very high standard of driving comfort. Despite its low and sleek coupé silhouette, the Panamera offers more than ample space, room for four passengers and space for a substantial amount of luggage.

The all-new four-door Porsche will be available with a choice of six- and eight-cylinder engines, with power outputs ranging from 300-500bhp. Each engine will be fully compliant with the latest emissions norms in Europe and will be suitably optimised for fuel economy.

Porsche’s six-speed manual and seven-speed automatic PDK gearboxes will be available on the Panamera, while Porsche Traction Management (PTM), active all-wheel-drive and adaptive air suspension will also be available as optional extras.

We expect the Porsche Panamera to be launched in India by end-2009. Stay tuned for more details on pricing and availability.

Cars to get more high-tech in 2009

Audi's 'Travolution' technology keeps the car going at a steady pace so that it automatically reaches traffic lights when they're green, so you never have to waste time stopping at red lights...

According to predictions by some automotive pundits, 2009 is going to be ‘the year of high-tech’ when it comes to cars. Many technologies that carmakers have been working on for the last few years are expected to go mainstream this year.

For starters, there will be many cars that will be able to parallel park on their own. Manufacturers like BMW, Mercedes-Benz, VW, Ford, Lexus and many others are finally ready with their camera/sensor systems, which can figure out how much space is available between two cars (or between any two objects) and then proceed to park the car on their own, with no steering inputs needed from the driver. The driver still needs to use the throttle pedal and the brakes, but for those drivers who just can’t parallel park, such systems are going to be a gift from god…

New cars will also be able to alert drivers when there’s another vehicle occupying the ‘blind spot’ space, making for safer lane changes. Intelligent cruise control systems will be able to maintain a fixed distance from the vehicle in front, lane departure warning systems will help those who are wont to fall asleep at the wheel and automatic braking systems will bring cars to a complete halt on their own, in an emergency situation where the driver is unable to use the brakes.

Other automotive technologies that are expected to catch on in a big way this year are stop-start engines that conserve fuel, 'night view' systems which allow the driver to see pedestrians (and/or other objects on the road) more clearly in the dark, and next-generation petrol-electric hybrids that are far more efficient and drivable than their predecessors.

Here's a demo of a Mercedes-Benz parking itself, without any steering inputs from the driver...

Bigger bikes from Honda, Bajaj on the anvil

From left: The Honda CBR1000RR Fireblade and the CB1000R are likely to be launched in India by March/April this year, priced at around Rs 9.5-10.5 lakh

In keeping with the current trend in the Indian two-wheeler market, Honda and Bajaj are two companies that are looking at launching new sportsbikes in the country over the next few months.

In recent years, it’s been the Pune-based Kinetic which first took the lead with launching a sportsbike in the Indian market – the company did a limited launch of the 250cc, v-twin-powered Hyosung Comet in India back in 2005. Then it was Yamaha, which launched the R1 sportsbike and the MT-01 cruiser in India in 2007. And finally, Suzuki joined the party in late-2008, with the Hayabusa superbike and the Intruder cruiser.

Honda now intends to provide some competition to the R1 and the Hayabusa by launching the CBR1000RR Fireblade in the Indian market, sometime in the first quarter of this year. And for those who would rather have a naked muscle bike rather than a fully-faired racer-replica, Honda also intends to launch the CB1000R in India. Both bikes are expected to be priced at around Rs 9.5-10.5 lakh, making them marginally less expensive than the R1 and the Hayabusa.

From left: The Kawasaki-Bajaj Ninja 250R will be launched in India within the next 3-4 months, followed by the KTM 690 Duke. These bikes will be relatively more affordable for bike enthusiasts in India

Bajaj sportsbikes, on the other hand, will be coming in at a much lower price-point. The Pune-based company will first launch the Kawasaki Ninja 250R, which is likely to be priced at around Rs 1.75-2.0 lakh. Powered by a liquid-cooled, 250cc parallel twin, the baby Ninja certainly won’t performance in the same league as the R1 or Fireblade, but will at least be affordable for a much larger section of motorcycle enthusiasts in India.

After the Ninja 250, Bajaj is also expected to launch some bikes from the KTM range – perhaps the 690 Duke, which may be assembled at Bajaj’s plant at Chakan. Powered by a high-tech single-cylinder engine, the 690 Duke is a versatile, lightweight sportsbike, which might be priced at around Rs 3.5-4.0 lakh in the Indian market. Later, Bajaj may also bring in the RC8, which is KTM’s top-of-the-line superbike, and which can easily rival the likes of the R1 and Fireblade. Of course, the RC8, will be imported into India as a CBU, will not cost less than Rs 10-12 lakh.

Of course, Bajaj will also continue to refine and evolve its homegrown sportsbike – the Pulsar 220 DTS-Fi. Expect styling changes, engine tweaks, perhaps monoshock rear suspension, better brakes and revamped instrumentation. The Pulsar series will remain the sportbikes of choice for those can’t afford the Kawasaki-Bajaj Ninja 250. Yamaha will also stake its claim in this segment with the YZF-R15 and other similar machines.

So, even as the worldwide economic recession shows no signs of abating, it seems like motorcycle enthusiasts – at least the rich ones – in India still have a lot to look forward to in 2009.

Takata, Anand Automotive sign JV for manufacturing safety systems in India

Japanese company, Takata Corporation, and the Delhi-based auto components major, Anand Automotive Systems have signed a joint venture agreement for the manufacture of seatbelts, airbags and various other components for automotive OEMs in India. Takata Corp. will have majority stake holding in the new JV company, named Takata India Pvt. Ltd. (TIPL).

TIPL will have two manufacturing facilities in India – one near Chennai and the other at Neemrana, near Delhi. With automotive safety norms expected to get tighter and more stringent in India every year, TIPL will focus on various occupant safety systems for passenger cars, SUVs, MUVs and MPVs.

veriCAR service launched for used car buyers

Want to buy a used car but don't know how to pick the right one? Just ask veriCAR...

With the currently booming used cars market in India, there was need for a service which offered expert evaluation of used cars, so buyers would know exactly what they’re getting into. While there are used car dealerships all over the country, they have a vested interest in selling all their cars, and may not necessarily always provide an honest overview of the cars they’re trying to sell.

Now, salvation may be on hand for those who’re in the market for a used car. A new service – veriCAR – has just been launched for you. ‘veriCAR is India's first buyer advisory service for used-cars. We consult and advise used-car buyers through every step of the used-car purchase process. We help used-car buyers use our expertise and buy the right car, at the right price,’ says a press release from the company.

veriCAR will essentially be an inspection-and-evaluation service for used cars, where you pay a pre-determined sum of money to get a full, comprehensive report on the car(s) that you may be consider buying. Among other things, veriCAR reports will include full details on the mechanical and physical condition of the vehicle, and a price range in which buying the vehicle is recommended.

For more details, visit the veriCAR website here

AIMTC members to go on indefinite strike, ACOGOA denies support

With talks between the All India Motor Transport Congress (AIMTC) and the Road Transport Ministry, Petroleum Ministry, NHAI, CBDT and Customs having failed to provide any result, AIMTC members will go on an indefinite strike from today.

The reason for this strike is said to be that the Government refuses to comply with AIMTC’s demands, which itself may not be very simply given that the list of demands is quite long. Among others, the demands include exemption from service tax for the road transport industry, a reduction in the prices of diesel by at least Rs 10/litre, a 35% reduction in tyre prices, waiver of interest on truck finance for at least six months, scrapping of toll tax for six months and free movement of commercial vehicles all over India, without there being the requirement for obtaining national/State permits etc.

While a very few of these demands do seem reasonable, most seem to be whimsy and for the government, may be impossible to comply with. It seems the AIMTC is seeking ‘global recession’ as an excuse to get undue favours from the government, which the government should rightly deny.

Interesting enough, the All India Confederation of Goods Vehicles Owners Association (ACOGOA) is not extending its support to the AIMTC strike. For ACOGOA members, it will be business as usual and they will continue to use their vehicles unless there is threat of violence from AIMTC members.

Now it remains to be seen where this stand-off between the government and AIMTC leads to. Stay tuned for updates.

Suzuki to postpone the launch of Kizashi-based sedan

The wait for Suzuki's Kizashi-based sedan just got longer...

Suzuki Motor Corp., which was earlier planning to launch bigger cars in 2010 – especially the much-anticipated sedan based on the Kizashi concept – has now postponed its plans for the same. Given the worldwide economic recession and the ongoing slump in demand for cars, Suzuki is scaling back on new product launches and deferring capital investment till the situation improves significantly.

VECV posts 68% decline in sales of Eicher CVs in December 2008

VE Commercial Vehicles (VECV), a joint venture between Volvo and Eicher Motors, registered a decline of 68% in the sales of its Eicher brand of commercial vehicles in December 2008. The company sold only 748 units in December 2008 compared to 2,361 units in December 2007.

Of the 748 units sold in December 2008, domestic sales comprised 502 units (down 77.5%) while exports comprised 246 units, an increase of 92% over the corresponding period in 2007.

Mercedes-Benz unveils CLS Grand Edition

We think the new Mercedes-Benz CLS Grand Edition looks very, very cool...

The current Mercedes-Benz CLS – the car which started the ‘four-door-coupe’ trend that’s now catching on in a big way – is due to be replaced with an all-new model in 2010. So, as is now de-rigueur with most car manufacturers these days, the company is doing a special edition variant before it finally bids goodbye to the current model CLS.

Called the CLS Grand Edition, the new variant features special scratch-resistant matt-finish paint (choose from obsidian black, iridium silver, carneol red or flint grey), high-grade leather interiors, high quality wood trim, bi-xenon headlamps with dark headlamp casings, active light function and cornering light function in the fog lamps, headlamp cleaning system, 18-inch 5-spoke AMG alloy wheels shod with 245/40 R18 (front) and 275/35 R 8 (rear) tyres, and ‘Grand Edition’ insignia on the front wings.

The CLS Grand Edition will be available with a range of powerful and refined V6 engines, but the car is only for Europe, so don't expect to see one of these at your friendly neighbourhood M-B dealership...

HMIL posts 55.7% sales growth in December 2008

Hyundai Motor India Ltd. (HMIL) registered an increase of 55.7% in its sales in December 2008, at 38,402 units, against 24,664 units in December 2007. HMIL’s domestic sales were up 19.3% at 15,602 units, while exports were up 96.8% at 22,800 units in December 2008.

HMIL’s segment-wise cumulative sales for December, 2008 stood at 37,320 units in the A2 segment (Santro, i10, Getz and i20), 1,078 units in the A3 segment (Accent and Verna) 2 units in the A5 segment (Sonata Embera) and 2 units in the SUV segment (Tucson).

With cumulative sales of 489,328 units in CY 2008, HMIL registered a sales growth of 49.6% over CY 2007. The company did even better with exports, registering a growth of 92.5% at 243,931 units in CY 2008, compared to 126,749 units in 2007. In fact, HMIL now accounts for about 78% of passenger car exports from India.

TVS’ two-wheeler sales down 8.5% in December 2008

TVS Motor Company recorded a decline of 8.5% in its two-wheeler sales in December 2008, at 89,285 units, as against 97,576 units in December 2007. However, TVS recorded a growth in exports, at 16,930 units in December 2008, as against 14,402 units in December 2007.

TVS’ motorcycle sales stood at 40,057 units in December last year, compared to 51,293 units in December 2007 – a decline of 22%.

During December 2008, TVS launched a new variant of the Apache RTR160, fitted with a disc brake at the rear wheel instead of the usual drum. TVS also recently reduced prices on its two-wheelers by Rs 700-2,000 when it passed on the benefit of CenVAT reduction to its customers.

Tata Motors domestic sales down by 44% in December 2008

Tata Motors’ sales in the domestic market, for December 2008, stood at 23,894 units – a significant decline of 44% compared to the 42,977 units the company had sold in December 2007.

Tata Motors’ total sales (including exports) for December 2008 were 25,219 units – a decline of 47% compared to the 47,678 units sold in December 2007.

Commercial Vehicles

The company’s sales of commercial vehicles in December 2008, in the domestic market, were 14,056 units, a decline of 51% compared to 28,661 vehicles sold in December 2007. M&HCV sales stood at 4,811 units, a decline of 69% over December 2007, while LCV sales were 9,245 units, a decline of 29% over December 2007.

Tata Motors’ cumulative sales of commercial vehicles in the domestic market for the fiscal were 195,179 units, a decline of 9% over 215,520 units in the corresponding period in 2007. Cumulative M&HCV sales stood at 86,720 units, a decline of 23% over 2007, while LCV sales for the fiscal were 108,459 units, a growth of 6% over 2007.

Passenger Vehicles

The company’s sales of passenger vehicles in December 2008 in the domestic market were 9,838 units, a decline of 31% compared to 14,316 vehicles sold in December 2007.

Sales of the Indica range, at 6,749 units, declined by 28.9%. The Indigo range with sales of 1,673 units, registered a 21% growth over December 2007. The Sumo and Safari accounted for sales of 1,416 units, a decline of 58.8% compared to December 2007.

Cumulative sales of passenger vehicles in the domestic market for the fiscal were 139,084 units, a decline of 8% over 151,136 units in the same period last year.

Exports

The company's sales from exports, at 1,325 vehicles in December 2008, declined by 72% compared to 4,701 vehicles in December 2007. The cumulative sales from exports for the fiscal, at 29,066 units, declined by 28% over 40,263 units in the same period in 2007.

Honda Siel registers 9% increase in sales in December 2008

Honda Siel Cars India Ltd. (HSCI) clocked a sales growth of 9% in December 2008, at 3,667 units, as against 3,363 units sold in December 2007. However, the company’s sales dipped marginally in the calendar year 2008, at 53,840 units, compared to 60,387 units sold in 2007.

The new City is putting in a solid sales performance for HSCI, with the company selling 2,972 units in December 2008. Other sales comprised of 386 units of the Civic, 171 units of the Accord and 132 units of the CR-V.

Hero Honda sales down 10.2% in December 2008

Hero Honda has reported a 10.2% decline in sales for December 2008, at 215,931 units, against 240,532 units sold in December 2007. However, the company posted a 9% growth in sales for calendar year 2008, selling 3.6 million units during the year, compared to 3.3 million units sold in 2007.

Bajaj Auto reports 33% decline in two-wheeler sales in December 2008

At 119,215 two-wheelers sold in December 2008, Bajaj Auto Ltd. (BAL) registered a 33% decline in sales over December 2007, when it sold 177,249 units. Motorcycle sales (excluding scooters) were down from 176,441 units in December 2007 to 118,510 units in December 2008.

For the April-December 2008 period, BAL’s total motorcycle sales were down 8% at 1,534,149 units, against 1,660,182 units in the corresponding period in 2007. Bajaj intends to deal with the slowdown in demand by launching a range of new bikes and new variants of existing bikes. The aim, for BAL, is to launch one new two-wheeler every month, for the next six months.

While bike sales have gone down, BAL’s three-wheeler sales actually went up by 3%, with the company selling 22,948 units in December 2008, compared to 22,221 units in December 2007.

In order to boost two-wheeler sales, Bajaj Auto Finance has introduced a new retail finance scheme, which comes with a low interest rate of 7.99%. This finance scheme, available for Bajaj two-wheelers at each of the company’s dealerships across the country, is expected to help revive BAL’s scooter and motorcycle sales to some extent.

GM India registers 9.5% growth in sales in 2008

General Motors India (GMI), which sold 65,702 units in 2008, clocked a sales growth of 9.5% over 2007, when it sold 60,032 units. However, the company’s performance was a bit bleak during the last month of 2008, when it only sold 4,041 units, comprising of 509 units of Chevrolet Tavera, 867 units of Chevrolet Aveo, 248 units of Chevrolet Optra, 35 units of Chevrolet Captiva and 2,382 units of Chevrolet Spark.

2009 is expected to be a significant year for GMI, as the company hopes to launch three new vehicles – an automatic variant of the Chevy Captiva, the Cruze sedan and a new small car – over the next few months. The company is especially bullish on the Cruze, a brand-new car packed with cutting-edge design and technologies, with which GMI hopes to take on vehicles like the Toyota Altis, Skoda Laura and Honda Civic.

Yamaha India registers 13% growth in sales in 2008

The new FZ16 has proved to be a bestseller for Yamaha India

With two new bikes – the FZ16 and YZF-R15 – in its line-up, Yamaha India could finally be on the comeback trail. The company registered a 13% growth in sales in 2008, at 136,468 units, against 120,768 units sold in 2007.

Yamaha plans to continue the momentum and hopes to launch some new bikes in the Indian market in 2009, which it says will be engineered specifically for the requirements of our market. The company will also continue its CBU imports programme with bikes like the YZF-R1 and MT-01, with which the company hopes to rebuild its performance-oriented image in India.

ACGL closes one plant temporarily

Automobile Corporation of Goa Ltd. (ACGL), one of the largest manufacturers of bus bodies in India and a company which is 41% owned by Tata Motors, has shut down one of its manufacturing facilities at Sattari, in Goa.

The partial shut down is, according to the company, due to drastically reduced demand from big players like Tata Motors and Ashok Leyland. The company will, however, continue to supply bus bodies made at its other manufacturing plant in Goa.

Maruti Suzuki sales down 9.95% in December 2008

Maruti Suzuki reported a 9.95% decline in sales in December 2008, at 56,293 units, against 62,515 units sold in December 2007. Maruti’s domestic sales stood at 52,029 units in December (down from 58,401 units sold in December 2007), while exports stood at 4,264 units, a 3.65% increase over 4,114 units exported in December 2007.

Sales of the Maruti 800 registered a big drop of 59.57%, at 2,907 units, against 7,190 units in the year-ago period. In the A2 segment (A-Star, Alto, Zen Estilo, Swift and Wagon R) Maruti’s sales were down by 6.93% at 36,831 units, against 39,575 units in December 2007.

The company did, however, make up for lost ground in the A3 segment (SX4, Swift DZire and Esteem), registering a growth of 98.24% at 6,524 units sold in December last year, against 3,291 units in December 2007.

Overall, Maruti’s total passenger car sales in December 2008, at 51,612 units, were down 11.15% compared to 58,090 units sold in December 2007.

Car import regulations relaxed for cars costing US$40,000 and above

The Indian government is making things a bit easier for those who may be looking at buying an imported car. The earlier norms, which mandated that cars could only be imported from the country of their origin, have being scrapped. This means that car manufacturers can now import cars into India from any country where they have manufacturing facilities, rather than only from their home country.

The relaxation in import norms will only apply to cars that cost at least US$40,000 or above, and that have engines bigger than 3000cc (petrol) or 2500cc (diesel).

Skoda India registers 28.5% sales growth in 2008

With sales of 16,188 units in 2008, Skoda Auto India registered a growth of 28.5% – the company had sold 12,596 units in 2007. A large part of this growth in sales might be attributed to the Fabia hatchback, which was launched in January last year, with Skoda selling 6,634 units of the car in 2008.