Indian Govt to exit SIL, looks at private investment for revival

With the Indian Government looking at selling its stake in Scooters India, the Lambretta brand might finally be revived! 

Younger readers of this website, most of whom have grown up on a steady diet of Indo-Japanese scooters and motorcycles, are unlikely to remember the Vijay Super scooter, or indeed the Lambretta which the Super was based on. But some older readers, especially those with fond memories of their first ride on a motor scooter, may well remember the Vijay Super, which was manufactured by Scooters India Limited (SIL) from 1972 to 1997.

But before we got on with the story, a brief bit of history – starting in the late-1940s, the Lambretta range of scooters was first manufactured in Milan, Italy, by Innocenti. In 1972, the Indian Government purchased the rights to the Lambretta name and all tooling and equipment from Innocenti’s factory in Milan. With this, Scooters India Limited (SIL) was set up by the Government, and a manufacturing facility was established in Lucknow. While another company – the Automobile Products of India (API) – had already been assembling Innocenti-built Lambretta scooters in India since the 1950s, SIL started making Lambretta-based scooters in Lucknow, selling them under the names of Vijay Delux and Vijay Super.

SIL was doing well until the early-1980s, at which time it was selling about 35,000 scooters per annum. But with the onslaught of Indo-Japanese scooters and motorcycles that came in the late-1980s, the going got increasingly tough for SIL and the company finally stopped producing scooters in 1997.

The above, you might think, is where the story ends for SIL. However, after all these years, the Indian Government is now looking at the possibility of reviving SIL, which claims it still owns the worldwide rights to the Lambretta name. The Government is looking at selling its 95% stake in SIL to a suitable private entity that can bring in the money and the requisite manpower for new product development.

SIL, which still makes a few three-wheelers and employs more than 1,200 people, is currently a ‘sick unit,’ with an ancient plant and outdated machinery. However, if it does indeed own the rights to the Lambretta name (and that seems to be disputed, with the Italy-based Lambretta Consortium claiming that it owns the worldwide rights to the Lambretta name), SIL could be sitting on a potential goldmine.

On its website, the Lambretta Consortium makes no mention of SIL whatsoever. ‘Lambretta Consortium is considered as the sole legitimate successor of the former Italian company Innocenti that ceased its activity during the 70s of the last century,’ is all they say, giving out no details of when, and from whom, they bought the rights to the Lambretta name. Hence, the Lambretta Consortium comes across as a rather dubious setup – a company that’s currently not making any scooters and one whose primary interest seems to lie in promoting Lambretta as a fashion label for things like clothing, footwear, watches, helmets, bags, eyewear and perfume etc.

There is no dearth of enthusiasts who love the iconic Lambretta brand and modern, contemporary scooters sold under the name may have huge potential to do very well indeed. If the Indian Government can finally get over its indecisiveness and identify a suitable corporate entity – one with financial muscle and marketing savvy – that will invest in SIL and bring the company out of the doldrums, this is one revival that will be celebrated by scooter enthusiasts all over the world.

Triumph to enter Indian motorcycle market with all-new entry-level sportsbike

Triumph's new 250-350cc machine for India is likely to take styling cues from its bigger brother, the 675 Street Triple 

British motorcycle manufacturer, Triumph, which has been evaluating the possibility of entering the burgeoning Indian motorcycle market for more than three years now, may have finally found a way to do so. The UK-based company has accepted the fact that its current range of bikes – which are fitted with engines of 675cc-2300cc capacity – may not be entirely suitable for the Indian market, since these would end up being far too expensive for the vast majority of buyers. So, Triumph has decided to develop an all-new entry-level sportsbike for emerging markets like India and South America and the machine is likely to be unveiled by mid-2012.

The new Triumph motorcycle will be fitted with a 250cc-350cc liquid-cooled, fuel-injected, single-cylinder engine, with a power output of 25-30bhp. The bike is likely to take styling cues from its bigger brother, the Street Triple, and will first be launched Thailand (where Triumph already has a manufacturing facility), followed by India, Brazil and perhaps other Asian and South American markets.

The entry-level sportsbike segment is one of the most promising motorcycle segments in the country and various manufacturers are now launching bikes that offer a mix of style and performance, at a price point that suits the Indian palate. Currently, the Kawasaki Ninja 250R (which costs about Rs 3.10 lakh) and the Honda CBR250R (priced at Rs 1.71 lakh) are two prime contenders in this segment, while Suzuki and Bajaj-KTM are also expected to launch 200cc-250cc bikes in India by the end of this year, or early next year.

With growth slowing down in Europe and Japan, most motorcycle manufacturers now acknowledge the fact that emerging markets like Asia and South America is where the action will be, in the next few years. And they are beginning to engineer bike that will cater to the requirements of countries like India and Brazil, where buyers definitely want performance, but at a price point that’s significantly lower than what would be acceptable in Japan or Europe.

It’s a win-win situation for Triumph, though, which will sell its 250cc-350cc bike not just in India and Brazil, but also, as an entry-level bike for beginners, in Europe and the US. Though there is no official word on this yet, we expect the all-new Triumph to go on sale in India by the end of 2012 and we expect the bike to deliver a lot of bang for the buck. Stay tuned for more details, which we should be bringing for you sometime soon!

Buddh International Circuit to boost Indian motorsport

Buddh International Circuit - the best thing ever to happen to motorsport in India

It’s a bit ironical that while all major car and motorcycle manufacturers are present in India, and given the fact that there has been a healthy interest in motorsport in the country for many decades, we still have a serious dearth of motor racing infrastructure. The Sriperumbudur circuit near Chennai and the Kari Motor Speedway near Coimbatore aren’t really up to the task of accommodating very fast, powerful machinery. And yet, these two tracks are all we have. A relatively small country like the UK has at least 18 motor racing circuits, while India has all of two!

But things will change in August this year, when the first world-class motor racing facility in the country – the Buddh International Circuit – will be homologated by the FIA. Being built near Greater Noida by Jaypee Sports International Ltd (a subsidiary of the Jaypee Group), this 5.14km long circuit with host the inaugural Indian Grand Prix on the 30th of October, 2011. In addition to Formula One, this Herman Tilke-designed circuit is also expected to host MotoGP and other top-level car and motorcycle racing events from 2012 onwards.

‘BIC has been designed as one of the fastest, most exciting racing circuits in the world and is well suited to the requirements of very powerful, very fast racing cars and motorcycles. With its 16 corners, high-speed straights and dramatic changes in elevation, we’re sure the track will offer some pretty spectacular racing in the months and years to come,’ says a JPSI spokesperson. ‘Also, in terms of adherence to safety norms and regulations, and things like run-off areas, medical facilities, facilities for the media and overall infrastructure, BIC will be among the best in the world,’ he adds.

Situated in Gautam Budh Nagar district, near Greater Noida, BIC is at a distance of about 40km from New Delhi. Noida is well connected to Delhi via metro rail and during the F1 race week, Jaypee Sports also plans to arrange for shuttle bus services that will operate from various points in Delhi and NCR and will bring fans to the circuit.

Indeed, motorsports fans in India are both happy and excited at the prospect of an F1 race taking place in the country – something that has been discussed for many years and which is now actually happening. Tickets to the inaugural Indian Grand Prix haven’t gone on sale yet, but it’s expected that these will be available by mid-June via BookMyShow, JPSI’s ticketing partner for the Indian Grand Prix. And while ticket prices haven’t officially been announced, it is widely anticipated that there will be a range of tickets to cater to various budgets – starting from around about Rs 3,000 for a grass-stands ticket, going all the way up to Rs 40,000 for a main grandstands ticket.

At long last, motorsport in India finally seems to be on the right track. With F1 and perhaps MotoGP coming to the country, there is, hopefully, no looking back for motorsport enthusiasts now.

BIC: By the Numbers
Total Length: 5.14km
Number of Turns: 16
Highest point of elevation: 14m
Width of the track: Between 13m-20m
Expected average speed: 218km/h
Top speed for an F1 car: About 320km/h
Total seating capacity: 110,000
Approximate cost of building the track: US$400 million
Distance from New Delhi: 40km

GMI to bank on Chevy Sail in the entry-level sedan segment

Aaaah! The whiff of chilli chicken (dry, of course...) and chowmein. All hail the new new, Chinese-developed Chevrolet Sail, which should go on sale in India by end-2011

To boost its sagging fortunes in the entry-level sedan segment, General Motors India will soon replace the current Aveo with the all-new Sail, which has been jointly developed by GM’s Chinese arm and its Pan Asia Technical Automotive Center. Priced at about Rs five lakh in China, the Chevrolet Sail, if priced similarly in the Indian market, could provide some stiff competition to cars like the Maruti Dzire, Tata Indigo Manza, Toyota Etios and Mahindra Verito etc.

Car buyers in India seem to have a thing for low-priced saloons, since owning a saloon/sedan is supposed to be more ‘prestigious’ than owning a hatchback. And the Chevy Sail should be just about perfect for people who want a reasonably-priced saloon. And, yes, in order to avail of excise duty benefits, the Sail is likely to be offered with 1.2-litre petrol and, later, 1.2- or 1.3-litre diesel engines.

Engineered for developing markets, the Sail has been designed to allow seating for up to five people and the India-spec car will certainly have suspension optimised for poor roads, so that ride quality remains plush even on broken tarmac. The car’s selling points will be a low purchase price, fuel efficiency, slick interiors and a spacious cabin. Engine performance isn’t likely to be scintillating, but the majority of Indian consumers don’t care for that anyway – it’s the ‘average’ that counts and GMI will make sure the Sail delivers on that front. Expect the car in GM showrooms by the end of this year.

Tata Nano gathers momentum

The coolest small car in India? The Tata Nano, no doubt!

The Tata Nano has most things the average Indian car buyer looks for – fuel efficiency, spacious interiors and low cost. And yet, the going hasn’t been easy for Tata Motors’ tiny wonder car. Given our penchant for associating the size and price of a car with its owner’s social standing, many prefer not to buy a Nano simply because of what neighbours, friends and relatives would say or think about the purchase.

Ratan Tata’s brainchild, the Nano actually is the perfect city car. Its small size means that it’s easy to manoeuvre through crowded streets and it’s easy to park. Also, the car has been designed in a way that maximises cabin space – the Nano’s ingenious packaging means that it is at least as spacious as some bigger cars like, say, the Wagon R or the Santro.

The Nano’s rear hatch cannot be opened up, so access to the boot is limited. The boot is also, admittedly, smaller than what you’d find in a Maruti 800 or Alto. However, for many who only use their cars in the city, the fact that you can’t fit two suitcases in the Nano’s boot is not really much of a limitation. There’s enough cabin space to seat four people comfortably and stow all your shopping bags from the local supermarket and, for many, that’s all that they need.

While sales of the Nano were slow to begin with, things have been picking up in recent months. In April this year, Tata Motors sold more than 10,000 units of the Nano across the country – this was the first time the Nano’s monthly sales figure crossed the 10,000 units mark. But to put things in perspective, while this is more than twice the number of Indicas that Tata Motors currently sells every month, it’s also less than half the number of Altos that Maruti sells every month.

To build on the momentum they’ve gathered in recent months, Tata Motors is now planning to launch a diesel-engined variant of the Nano, which is likely to be launched in the country towards the end of this year. It will be about 20% more expensive than the petrol-engined Nano but then it’ll be a high-tech piece of machinery, with a twin-cylinder diesel engine featuring a common-rail fuelling system developed by Bosch and even a small turbocharger developed by Honeywell. The Nano diesel is likely to be the most fuel-efficient car in the country, with a real-world mileage figure that may be as high as 32-35km/l. With this, the only other thing left on most city car buyers’ wish lists might be an automatic/CVT transmission, which will make driving on crowded city streets completely hassle-free.

While Tata Motors are looking at ways of building on the Nano’s success story, other manufacturers are also looking at getting into the segment. Bajaj Auto, perhaps in collaboration with Renault-Nissan, is almost certain to launch its Nano-competitor in India in 2012. And companies like Fiat, Hyundai, Maruti and General Motors India are also said to be developing their own iterations of a small, fuel-efficient and low-cost city car. In the meanwhile, the Nano certainly seems to have proven its detractors wrong – the small car is looking all set to graduate to the big league in the near future.