Renault-Dacia Sandero Stepaway exhibited in Spain and France

The Renault Sandero Stepaway could come to India in 2010

We first spoke of the Renault-Dacia Sandero Stepaway in August last year, when the first pictures of this hatchback-SUV crossover were released. Now, this vehicle is already on sale in South America and Renault-Dacia also recently exhibited the Stepaway at the Barcelona Motor Show and at the L'Atelier Renault showroom in Paris.

As you can see in the photographs, the Sandero Stepaway is a cross between a regular hatchback and an SUV and is likely to feature spacious interiors and good ride quality. And like we had said earlier, we also think Renault is likely to consider the possibility of launching this vehicle in India, perhaps early next year. Renault-Dacia will offer 1.6-litre petrol and diesel engine options in Europe and if the Stepaway comes to India, we expect to see both these engine options here as well.

Hyundai to increase sourcing of automotive components from India

Hyundai may consider using more more Indian-made automotive components soon

Korean automotive giant, Hyundai Motor Company is now considering the possibility of sourcing more automotive components from India, for its worldwide operations. ‘India can be a hub for the components industry. Hyundai will increase sourcing from India,’ said Young-Kil Chun, Hyundai Motor Company Senior Vice-President (Asia & Pacific Division).

‘We do have our vendors based in India who have helped us localise, but if India is to become a global outsourcing hub then a very important issue needs to be addressed first, which is the need to maintain consistent quality,’ added Chun. While Hyundai already sources up to 85% of the components used in its cars made in India from within the country, it currently does not use Indian-made components for its cars made elsewhere.

Renault Kangoo be bop EV unveiled

The li-ion battery-powered Renault Kangoo be bop prototype is a zero emissions vehicle

French carmaker Renault has unveiled its new electric vehicle prototype, the Kangoo be bop, which is a zero emissions vehicle. Shown in Paris for the first time yesterday, the Kangoo be bop features technology that’s expected to be production ready within a year or two.

The prototype vehicle, which is fitted with lithium-ion batteries and a 44KW electric motor, has a range of 100km. The vehicle will embark on a tour of Europe in July this year and will also be available for test drives. The Kangoo be bop’s electric motor produces 190Nm of torque and top speed is said to be around 130km/h. According to Renault-Nissan, the company aims to be the leader in mass-market zero emission electric vehicles, and the Kangoo be bop is the first step towards achieving that aim.

The Kangoo be bop is equipped with the latest, compact, recyclable lithium-ion batteries produced by the Automotive Electric Supply Corporation (AESC), a Nissan-NEC joint venture which was founded back in 2007. These high-performance batteries are expected to deliver between 80 and 100 per cent of their original capacity for six years.

M&M: Utility vehicle sales up 16% in April 2009

Mahindra & Mahindra (M&M) has reported a 16% hike in sales (including sales via joint ventures) during April 2009, at 22,617 units, as compared to 19,497 units in April 2008. M&M sold 6,000 units of the Bolero, 3,509 units of the Xylo and 3,100 units of the Scorpio during April this year.

With this, M&M edged ahead of Toyota and Tata utility vehicles – Toyota sold 2,834 units of the Innova, while Tata Motors sold 1,642 units of the Sumo and 774 units of the Safari during April.

Maruti Suzuki Ritz to be launched in India on May 15

The Maruti Suzuki Ritz is just 10 days away from being launched in India

According to a press release from Maruti, the company will launch India’s first BS-IV compliant car – the Ritz hatchback – on the 15th of this month. According to the company, the Ritz ‘adopts a contemporary European design and is positioned at the growing premium-end of the compact car market.’

Maruti claims the Ritz’s rear seat has been designed so that it can seat three people in comfort and that the car’s suspension and ground clearance have been optimised for Indian road conditions.

The Maruti Suzuki Ritz (sold as the Splash in other markets) will be launched in the country with two engine options – a 1.2-litre 85bhp petrol (the same K-series engine that does duty on the A-Star) and a 1.3-litre 75bhp common-rail diesel (which is also fitted to the diesel Swift). In both cases, the engine will be mated to a five-speed manual gearbox.

Pricing and other details will be announced at the time of the car’s launch on the 15th of May.

Here's a nifty little video of the Suzuki Splash (Maruti Ritz)

Ural India working on small car, may partner with FAW

Now that the Tata Nano has set the ball rolling, everybody wants to build and sell small, ultra low cost (ULC) cars in India. Now such ULC car projects should be all right if they are being taken up by the likes of Renault, Nissan, Bajaj, Fiat, but what would you say to a Russian manufacturer tying up with a Chinese car manufacturer to build such cars in India? Sounds scary, right?

An Indo-Russian joint venture, Ural India Ltd. is said to be considering the possibility of building small, cheap cars in India, perhaps in a joint venture with FAW, a Chinese car manufacturer. We tried to look for Ural cars on the Internet but we couldn’t find any, though we did find the Ural website where they showcase their ancient, antiquated motorcycle and motorcycle sidecar rigs, which look like they are from the 1950s.

In any case, Ural is said to be evaluating the prospects of setting up a car manufacturing unit near Haldia, in West Bengal. The company is even planning a roadshow in India to evaluate the response to its car, though we do wonder what car(s) they would show, since they seem to have none on sale anywhere in the world!

FAW, which may or may not partner Ural India’s small car project, does seem a bit more credible though. The Chinese company is planning to enter not only the small cars segment in India, but may also launch small commercial vehicles and buses. While that just might happen, we still believe Chinese (and/or Russian!) automobile manufacturers will find it extremely hard – and perhaps even impossible – to find a niche for their products in India.

Hyundai i20 Diesel to be launched in India by end-2009

According to reports in the media, Hyundai is working on bringing a diesel-engined variant of the i20 hatchback to India, by the end of this year. To be fitted with a 1.5-litre common-rail diesel engine, the new variant is likely to be around 15% more expensive than the petrol, but will offer better fuel economy and improved drivability (due to the diesel engine’s higher torque output compared to the petrol) as a part of the package.

Hyundai, which already has a market share of slightly more than 20% in the passenger cars segment in India, is looking at increasing its market share to over 25% by 2012. And hence, the Korean company is committed to launching new products in India, in order to strengthen and expand its portfolio of cars here.

Tata Motors gets two lakh bookings for Nano, rakes in Rs 2,500 crore

Tata Motors has reported that it has taken 203,000 bookings for the Nano, raking in Rs 2,500 crore in the process. While impressive, this figure is significantly lower than the 500,000 bookings that had been predicted for the Nano by some industry experts and analysts.

Tata Motors sold 610,000 booking forms for the Nano, which means around 33% of those who bought a form also went on to book a car. With more than two lakh bookings in hand, the company will be struggling to catch up with demand, since its Pantnagar facility will only be able to produce around 50,000 Nanos per year. Nano’s main manufacturing facility, at Sanand, which will produce up to 2.5 lakh units of the car, will not be operational before early 2010.

Surprisingly enough, for a country that was widely reported to be clamouring for a Rs one lakh car, only 20% of the bookings are for the base model Nano. The top-end LX model got 50% of the total bookings while the mid-range variant got 30%.

Deliveries of the Nano will begin by July this year, with applicants being chosen at random by computer.

Maruti Suzuki to boost capacity to 1.1 million units

Maruti Suzuki India (MSI) expects significant growth in the small cars segment in India, over the next few years. And hence, the company is now looking at expanding capacity from the current 900,000 units per annum to 1.1 million units, over the next two years.

‘As demand has increased and will only grow further, we would require additional capacity beyond the current 900,000 cars a year to cater to the small car market. We will increase volumes to meet rising domestic demand and higher export orders,’ says MSI managing director, Shinzo Nakanishi.

MSI currently has the capacity to produce 600,000 cars at its plant in Gurgaon, where the company manufactures the Maruti 800, Alto and Wagon R, and another 300,000 cars at its newer plant in Manesar, where the Swift, SX4 and A-Star are made.

Maruti Suzuki is also working on strengthening its distribution network and will set up stockyards all over the country. ‘Setting up stockyards for both finished products and spare parts at the regional level is high on the agenda so as to reduce our transportation time, cost and mainly delivery time to customers,’ says Nakanishi. MSI is expected to set up its first such stockyard by mid-2009, in south India, and is already negotiating with land owners for acquiring land for the same.

Maruti may also introduce the Kizashi-based sedan in India by 2010, even though the company is more bullish on smaller cars. Powered by a 2.0-litre petrol engine, the Kizashi-based sedan would be Maruti Suzuki’s top-of-the-range luxury sedan when (and if…) it comes to India and will take on the likes of the Accord and Camry.

Suzuki: Motorcycle sales up 33% in April 2009

The new Suzuki GS150R has met with good response in India

Suzuki Motorcycle India has reported a 33% hike in its motorcycle sales during April 2009, at 13,548 units, as against 10,208 units in April 2008. According to the company, the increase in sales could be attributed to its new offering, the GS150R.

With the fewest dealerships and a very small range of products, Suzuki remains the smallest player in India in the two-wheelers segment, which is quite in contrast to its dominant position in the passenger cars segment in the country.

BMW puts Mini’s India launch on hold, will get into the used cars market in 2010

No, the Mini Cooper isn't coming to India this year...

Given the ongoing economic downturn, BMW has decided to wait and watch rather than launch the Mini Cooper in India this year. According to Peter Kronschnabl, President - BMW India, launching the Mini in India would mean setting up a separate chain of dealerships, since Mini Cooper and BMW are two completely different brands. The cost involved in setting up a distribution network for Mini cars in India, says Kronschnabl, will be prohibitively expensive, given the small volumes in which the car would sell.

Kronschnabl anticipates the market in India for the Mini – which could cost as much as Rs 20 lakh – may only be around 80-100 units per annum. However, he says the BMW Group will take another look at its decision regarding launching the Mini brand in India by the end of this year. BMW will also launch its used cars business in India by 2010.

Bajaj Auto: 26.27% decline in motorcycle sales in April 2009

Bajaj Auto has reported a 26.27% fall in its motorcycle sales in April this year, at 149,733 units, as against 203,081 units sold in April last year. The Pune-based company’s total two-wheeler sales during the month stood at 150,252 units, a 26.32% decline over the 203,930 units sold in April 2008.

Bajaj Auto’s exports, at 51,887 units in April this year, were down 29.52% compared to 73,624 units exported in the year-ago period. The company’s total sales (including three-wheelers) during April 2009 stood at 169,119 units, as compared to 221,843 units in April 2008 – a decline of 23.77%.

Maruti Suzuki: Sales up 15% in April 2009

Model-wise sales break-up for Maruti vehicles, for April 2009

Maruti Suzuki India Ltd. (MSI) sold a total of 71,748 vehicles (including exports of 6,891 units) in April 2009 – an increase of 15% over the 62,336 units sold during April 2008. According to Maruti, this is the fourth consecutive month of sales crossing the 70,000 units mark. For model-wise sales details, click on the image above.

Jaguar Land Rover cars to be launched in India by mid-2009

Jaguar and Land Rover vehicles will come to India as CBU imports

The Tata Group will soon be bringing Jaguar and Land Rover vehicles to the Indian market. Tata Motor’s ‘premier car division’ (a part of the company’s passenger car business unit) will handle the import, sales and distribution of JLR cars in India, and the first JLR showroom in the country will be inaugurated in Mumbai, in June this year.

‘This is a natural move for both businesses and will allow Jaguar and Land Rover to establish a strong and deserved presence in India. We are very pleased to develop our relationship with Jaguar Land Rover in this way and to provide the opportunity for Indian customers to access their premium products for the first time,’ said Ravi Kant, Managing Director, Tata Motors.

‘We are delighted to be entering the Indian market, an economy which is still growing appreciably, and to be able to offer our premium products to a whole new group of customers. It is an important strategic move for Jaguar Land Rover and will enable us to realise our competitive potential in this significant market,’ said David Smith, CEO, Jaguar Land Rover.

More details available on the Jaguar India and Land Rover India websites.

Honda Siel: Sales up 7.5% in April 2009

Honda Siel Cars India (HSCI) registered sales of 3,656 units during April 2009, a growth of 7.5% over the 3,400 units sold during April 2008. The company sold 2,801 units of the City, 625 units of the Civic and 230 units of the Accord.

Honda is now all set to bring its first hatchback – the Jazz – to the Indian market. Due to be launched here very soon, the Honda Jazz will take on cars like the Hyundai i20 and Skoda Fabia.

Hyundai India: Sales up 10.9% in April 2009

Hyundai Motor India Ltd. (HMIL) has reported a 10.9% increase in sales during April 2009, at 44,371 units, as against 40,000 units in April 2008. HMIL’s domestic sales, at 22,247 units in April 2009, as compared to 21,501 units in April 2008, grew by 3.5%. Exports, at 22,124 units in April this year, as against 18,499 units in April 2008, were up by 19.59%.

Hyundai sold 41,258 units of the Santro, i10, Getz and i20 hatchbacks, 3,073 units of the Accent and Verna sedans, 34 units of the Sonata Transform luxury sedan and six units of the Tucson SUV.

IYM, Hero Honda, TVS register increased sales in April 2009

India Yamaha Motor (IYM) has reported a 48% increase in sales during April this year, at 15,120 units, as against 10,199 units sold April 2008. The country’s biggest two-wheeler manufacturer, Hero Honda also reported a significant increase in sales during April 2009, at 370,575 units as against 286,252 units in April 2008 – an increase of 29.45%.

South-based TVS Motor, in the meanwhile, registered a 3% increase in sales in April this year, at 113,119 units as against 109,972 units sold in April 2008. For TVS, it was its mopeds that did well – the company sold 41,065 units in April 2009 as against 32,701 units in April 2008.

TVS’ motorcycle sales, however, went down from 58,237 units in April 2008 to 53,235 units in April 2009, while scooter sales slid from 19,034 units to 18,819 units. Exports also showed a minor decline – from 10,213 units during April 2008 to 10,134 units during April 2009.

Chrysler LLC files for bankruptcy, announces global strategic alliance with Fiat Group

Chrysler LLC has announced that as a result of the comprehensive restructuring plan agreed to by many of its stakeholders, it has reached an agreement in principle to establish a global strategic alliance with Fiat SpA to form a new company. This will allow Chrysler and Fiat to fully optimize their respective manufacturing footprints and the global supplier base, while providing each with access to additional markets. Fiat powertrains and components will also be produced at Chrysler manufacturing sites.

‘This partnership transforms Chrysler into a vibrant new company with a wealth of strategic advantages,’ said Bob Nardelli, Chairman and CEO of Chrysler. ‘It enables us to better serve our customers and dealers with a broader and more competitive line-up of environmentally friendly, fuel-efficient high-quality vehicles. Benefits to the new company include access to exciting products that complement our current portfolio, technology cooperation and stronger global distribution.’

‘We want to assure everyone that the new company will produce and support quality vehicles under the Jeep, Dodge and Chrysler brands as well as parts under the Mopar brand. Chrysler employees will become employees of the new company. Chrysler dealerships remain open for business serving our customers. All vehicle warranties will be honoured without interruption and consumers can continue to purchase our vehicles with complete confidence,’ explained Nardelli.

Despite substantial progress on many fronts, Chrysler was not able to obtain the necessary concessions from all of its lenders, which would have avoided the need for a bankruptcy proceeding. As a result, under the direction of the U.S. Treasury, Chrysler LLC and 24 of its wholly owned U.S. subsidiaries today filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in U.S. Bankruptcy Court for the Southern District of New York. Chrysler’s Mexican, Canadian and other international operations are not part of any bankruptcy filing.

‘Even though total agreement was not possible, I am truly grateful for all that has been sacrificed, on the part of many of Chrysler’s stakeholders to reach an agreement in principle with Fiat,’ said Nardelli. ‘My number one priority has been to preserve Chrysler and the thousands of people who depend on its success. While I am excited about the creation of the global alliance, I am personally disappointed that today Chrysler has filed for Chapter 11. This was not my first choice.’

Chrysler also will file a motion under Section 363 of the Bankruptcy Code requesting the swift approval by the Court of the agreement with Fiat and the sale of Chrysler’s principal assets to the new company. The benefit of this type of filing is speed. It should allow a leaner new company to emerge in a matter of 30 to 60 days, well positioned for long-term viability.

When the transaction is completed, the Voluntary Employee Beneficiary Association (VEBA) will own 55 percent of the new company and the U.S. and Canadian governments will own proportionate shares of a 10 percent stake. Fiat will initially hold a 20 percent ownership stake in Chrysler. Fiat will have the right to increase its ownership stake an additional 15 percent in three increments as it meets the following criteria: 5 percent for bringing a 40 mpg vehicle platform to Chrysler to be produced in the U.S.; 5 percent for providing a fuel-efficient engine family to be produced in the U.S. for use in Chrysler vehicles; and 5 percent for providing Chrysler access to its vast global distribution network to facilitate the export of Chrysler vehicles. Fiat cannot become a majority owner until after all U.S. government loans have been completely repaid.

Nardelli, who has been leading Chrysler since August 2007, also announced to Chrysler LLC’s Board of Management and the U.S. Treasury his plan to leave the company following the emergence of the new company from Chapter 11 and the completion of the alliance with Fiat. He will return to Cerberus Capital Management LP as an advisor. ‘Now is an appropriate time to let others take the lead in the transformation of Chrysler with Fiat,’ said Nardelli. ‘I will work closely with all of our stakeholders to see that this new company swiftly emerges with a successful closing of the alliance.’

During the restructuring process, the government will provide sufficient debtor-in-possession (DIP) financing to allow continuation of ‘business as usual.’ The company will seamlessly honour warranty claims, pay suppliers and keep our dealer body operating to continue to serve our valued customers.

As a part of the restructuring, most manufacturing operations will be temporarily idled effective Monday, May 4, 2009. Normal production schedules will resume when the transaction is completed, which is anticipated within 30 to 60 days.