Indian Auto Industry Update
18 Jan 2017
Industry N Chandrasekaran appointed Tata Motors chairman
Simplify taxes on used cars, auto traders demand Interviews & Features Tata Hexa Vs Mahindra XUV500 Vs Toyota Innova Crysta: Engine, Features, Safety and Price
Our ambition is to become No 3 in the Indian car market by 2019: Tata Motors
NEXA: Fastest growing retail network
Navi is targeted towards fun-loving customers: Guleria Cars, SUVs, MUVs New 2017 Nissan Sunny launched in India for Rs 7.91 lakh (ex Delhi)
Maruti Suzuki spends Rs2,000 crore on Nexa dealerships in image makeover bid
Honda Cars India organises Mega Service Camp across India
Maruti sets the pace with new models, premium play
Groupe Renault 2016 sales up 13.3%; expects to grow in India by 8% in 2017
India sales register fastest growth for Renault
Tata Elxsi looks to test driverless cars on Bengaluru roads
Demand from Uber and Ola driving car sales
Maruti Suzuki Ignis first in segment features
Ratan Tata refutes Cyrus Mistry’s allegations on Tata Nano
Maruti Suzuki Ignis vs KUV100 vs Grand i10 vs Swift: Feature Comparison
Tata Motors brings 'HEXACITEMENT' to B'luru Luxury Cars Range Rover Evoque petrol launched
Jeep may launch the Compass in India in June 2017 Commercial Vehicles Construction & Agri Machinery 2/3 Wheelers Mopeds ride high in a shrinking market, bring 35% volume for TVS Motor
Hero unveils 2017 Glamour with i3S
Good things come in small packages E-Bikes Components Allied Industries Tyre stocks in top gear despite profit booking in wider market Emissions / Environment Finance & Insurance Road accidents: Govt looking at time limit for filing insurance claims Oil, Lubricants & Alternative Fuels Oil prices dip as rising US output could offset OPEC cuts News Magazines 2017 Geneva Motor Show preview
All-new Lynk & Co sedan takes shape Maruti Autocross Championship heads for Mumbai
Ford EcoSport with AVN priced from Rs 9.89 lakh
Volkswagen Tiguan SUV spied testing
Lexus to introduce F Performance range in India
Tata Hexa launch tomorrow
New ‘Live For More’ Renault Kwid launched at Rs 2.93 lakh
India bound Renault Kaptur: 5 things to know
Takata airbag issue may cause biggest-ever car recall
2017 Bajaj V12 review, test ride International News General Motors to announce $1 billion in U.S. investment
GM's Cadillac sees double digit sales growth in China in 2016
Hyundai Motor to boost US investment by 50% to $3.1 bn over 5 yrs
Toyota Motor to start testing fuel cell vehicles in UAE
Volkswagen to provide over 4 lakh new energy cars in China by 2020
BMW to introduce upgraded versions of its models globally from March 2017
Kia dealers in China seek $360 mln compensation in revolt over unsold stock
Canadian market down following Trump's auto comments
Czech car production rises 8% in 2016
Takata airbag ruptured in Japan, caused minor injury: Honda
European car sales up 3.2% in December; annual sales up 6.5%
Slovak car production tops 1 million vehicles in 2016
Study shows Citroen C4 diesel emissions exceed limits
ePayment investment: Daimler Financial Services acquires PayCash Europe SA
Audi and FAW sign China electric car cooperation deal
Scania gets wheels turning for VW comeback bond
BMW, UK car industry say Britain needs to keep tariff-free EU trade
Italy stands by Fiat Chrysler Automobiles, rejects Germany's emission allegations
Volkswagen to provide 4 lakh new energy cars for China by 2020 Economy Rupee rises 15 paise to 67.95/$
Indian economy projected to grow by 7.7% in FY 2017: UN report
Metal, oil & gas stocks pull Sensex down 52 points Closing Last Financial Closing....
Industry N Chandrasekaran appointed Tata Motors chairman PTI See this story in: The Economic Times (Web & Print Edition)
New Delhi: Tata Motors appointed Tata group chief designate N Chandrasekaran as its Chairman with immediate effect.
In a regulatory filing, the company said "the Board of Directors have appointed Natarajan Chandrasekaran as additional director and Chairman of the board with immediate effect".
The appointment comes within a week of Tata Sons announcing Chandrasekaran as its Executive Chairman, capping two months of a bitter boardroom battle that followed the unceremonious sacking of Cyrus Mistry and letting of bad blood ever since.
Popularly known as 'Chandra', the 54-year-old will take charge at the helm of $103-billion Tata Sons, the main holding company of the salt-to-software conglomerate from February 21. He will be the first non-Parsi chairman of the 150-year old Tata Group. At Tata Motors, he will have to take the responsibility of turning around the struggling homegrown auto major which is trying to regain lost ground, specially in the passenger vehicles segment.
Chandrasekaran will also have to pay special attention to the Nano. Mistry had alleged that Tata Motors has been unable to shut down the loss making small car due to "emotional reasons" and doing so would also stop the supply of "gliders" to an entity that makes electric cars in which Ratan Tata has a stake.
Mistry had alleged that the Nano product development called for a car below Rs 1 lakh but the cost was always above this.
"This product has consistently lost money, peaking at Rs 1,000 crore," Mistry said in his letter written to Tata Sons board members a day after he was ousted as the Chairman of India's largest conglomerate.
He further stated, "As there is no line of profitability for the Nano, any turnaround strategy for the company (Tata Motors) requires to shut it down. Emotional reasons alone have kept us away from this crucial decision." http://auto.economictimes.indiatimes.com/news/industry/n-chandrasekaran-appointed-tata-motors-chairman/56628095
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Simplify taxes on used cars, auto traders demand Deccan Herald (Web Edition)
New Delhi: Eyeing vast Indian middle market, automobile traders have demanded simplification of taxes on used cars under the proposed GST regime. Currently GST is silent about the used car industry.
It has also demanded that Finance Minister Arun Jaitley announce a subsidy on new vehicles for the buyers, who junk their old vehicles, in the Budget to be presented on February 1.
“There is too much disparity in used car taxation and policy across states. Simplification may reduce prices, fuel demand and drive better tax compliance. Tax rate for used cars should be lower than new cars, since the government would have already collected tax at the time of first point of sale,” said Mehul Agrawal, founder of CARS24, a used car selling platform, in an interaction with DH.
According to Agarwal, the used car industry in India is witnessing double digit growth each month. This is in contrast to the new car industry that has been affected by multiple issues like ban on high capacity diesel engines in NCR, increased taxes and much talked about demonetisation.
The auto sector struggled in 2016 due to 1% infra cess on small cars, 2.5% on select diesel cars, 1% luxury tax on premium cars, 4% tax on higher engine capacity cars announced in the Budget last year.
Demonetisation has further impacted the auto sector, he said, adding that the government should desist from imposing any new cess or taxes in the Budget this year on auto industry. http://www.deccanherald.com/content/591972/simplify-taxes-used-cars-auto.html
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Interviews & Features Tata Hexa Vs Mahindra XUV500 Vs Toyota Innova Crysta: Engine, Features, Safety and Price The Financial Express (Web Edition)
Tata Motors is all set to launch the much-awaited Hexa crossover in India on 18th January, 2017. The company has already started accepting the booking for the vehicle, which is expected to be priced between Rs 12.30 lakh and Rs 18.50 lakh, ex-showroom, Delhi. Once launched, the Hexa will face stiff competition from established players such as the Toyota Innova Crysta and the Mahindra XUV500.
Ahead of its launch, we have compared the upcoming Tata Hexa with its main rivals in terms of the expected price, specification and features in the segment to find out if the Hexa has what it takes to be successful in this segment.
Powertrain Tata Hexa is powered by a 2.2 litre turbocharged diesel engine in two states of , a 2.2 litre VARICOR 320 diesel and a 2.2 litre VARICOR 400 diesel unit that produces a maximum power of 148 hp and 154 hp at 4,000 rpm, respectively. The VARICOR 320 engine develops 320 Nm of torque while the VARICOR 400 unit develops 400 Nm. While the lesser powerful unit is mated to a five-speed manual transmission, the VARICOR 400 is available with a 6-speed manual and 6-speed automatic gearbox. The company will also offer the Tata Hexa with an optional four-wheel drive system with the six-speed manual transmission variants. The Hexa then offers a good range of options in terms of powertrain offerings and is at par with the competition in terms of power output as well.
Under the hood, the Mahindra XUV500 gets a 2.2 litre diesel engine that develops 140 hp at 3,650 rpm and churns out a peak torque of 330 Nm between 1,600 and 2,800 rpm. The diesel motor is paired to a 6-speed manual and a 6-speed automatic transmission. Higher variants of the XUV500 are equipped with an all-wheel drive system, lending the vehicle with good off-roading capabilities. While the XUV500 is the least powerful vehicle in this comparo, it should be noted that it's the only one with a monocoque chassis. This allows for better handling and stability at higher speeds viz-a-viz the ladder frame chassis on the other two vehicles.
Powering the Toyota Innova Crysta is a 2.7 litre petrol and a 2.4 litre & 2.8 litre diesel engines. The petrol engine generates 164 hp at 5,200 rpm and 245 Nm of torque at 4,000 rpm, mated to a 5-speed manual and a 6-speed automatic gearbox. The 2.4 litre diesel engine develops 148 hp at 3,400 rpm and 343 Nm between 1,400 and 2,800 rpm and is paired to a 5-speed manual transmission. The more powerful 2.8 litre diesel motor churns out 172 hp at 3,400 rpm and 360 Nm between 1,200 and 2,400 rpm and is mated to a 6-speed automatic gearbox. Clearly, in terms of power output, the Innova Crysta takes the lead with its larger motor. In addition, it's the only vehicle in this comparison to offer a petrol engine.
Dimensions Dimensionally, the Tata Hexa is 4,788 mm long, 1,903 mm wide, 1,791 mm tall and has a wheelbase of 2,850 mm. The Mahindra XUV500 measures 4,585 mm in length, 1,890 mm in width, 1,785 mm in height and has a wheelbase of 2,700 mm. The Toyota Innova Crysta is 4,735 mm long, 1,830 mm wide, 1,795 mm tall and has a wheelbase of 2,750 mm.
Dimensions Length Width Height Wheelbase Tata Hexa 4,788 mm 1,903 mm 1,791 mm 2850 mm Mahindra XUV500 4,585 mm 1,890 mm 1,785 mm 2,700 mm Toyota Innova Crysta 4,735 mm 1,830 mm 1,795 mm 2,750 mm
Dimensionally, the Hexa is the longest and widest in its segment but the Innova Crysta pips it by a small margin in terms of height. Even on the wheelbase front, the Hexa takes the cake from the Innova Crysta with an advantage of 100 mm, which results in improved cabin space in all rows.
Features The Tata Hexa is equipped with improved technology features such as different driving modes – Auto, Comfort, Dynamic and Rough Road, so that the driver can switch between the mode as per the road conditions. There is also a sports mode with race car function that offers more power and torque while cruising on highways or open roads. Tata has also offered the Hexa will customisable multicoloured mood lighting and other technologies like ConnectNext App, NaviMaps App, Juke-car App, Tata Smart Remote and Manual App. To keep all the occupants entertained while on the go, the Tata Hexa is available with a touchscreen infotainment system by Harman features Bluetooth compatibility, speed-sensing volume control, voice command recognition and SMS read-out. The Hexa is loaded with features, however, features offered in the competition vehicles like Tyre Pressure monitoring System with air pressure display in XUV500 and wood inserts on the door trims are missed out. Still, the cabin of the Hexa looks premium and upmarket.
The Mahindra XUV500 is equipped with an electric sunroof with an anti-pinch guard, logo projection lamps on ORVMs (outside rear view mirrors) 6-way power adjustable driver seat and push start/stop button. The company has also offered the XUV500 with a 7-inch touchscreen infotainment system with GPS navigation, audio, video and picture viewer. There is also a voice messaging system that alerts the driver about important information like seat belt reminder, low fuel warning, etc. The Tyre Pressure Monitoring System (TPMS) lets the driver know the air pressure and temperature of each tyre. This feature is nor available on the Hexa as well as Innova Crysta. The Mahindra XUV500 is also equipped with a Micro Hybrid technology that automatically puts the engine into standby mode when the car is idle and the gears shift to neutral. This reduces the fuel consumption and also reduced the CO2 emissions.
The XUV500 is not offered with driving models like the Hexa and Innova Crysta. One of the major highlights of the Mahindra XUV500 is the Micro-Hybrid technology system which is not offered with the Hexa and the Innova Crysta.
The features offered on the Toyota Innova Crysta both, at the exterior and interior include automatic LED projector headlamps, ambient lighting, start/stop button, a touchscreen with audio, navigation and trip information. The cabin also gets wood finish inserts on the doors, while there are two driving modes – ECO and Power. The Innova Crysta has a pop out style touchscreen display, while the competitors have a touchscreen display which is integrated into the dashboard. More or less, all the three vehicles are offered with the same equipment list.
Safety In terms of safety, the Hexa gets driver, co-driver, side and curtain airbags in the higher variants along with other driving aids such as automatic headlamps, Electronic Stability Program (ESP), traction control, Hill Hold Control (HHC), Hill Descent Control (HDC), corner stability control, cruise control, standard ABS (Anti-lock braking System) & EBD (Electronic Brakeforce Distribution) and 8-way power adjustable driver seat. The XUV500, on the other hand, gets ESP with rollover mitigation that monitors the movement of the vehicle and when it detects a loss of control, the brakes are applied automatically. The Innova Crysta also features ABS and airbags, but in addition to its rivals, it also gets Hill start assist and vehicle stability control system while cornering. The Innova Crysta has 7 airbags than the Hexa and the XUV500, but miss out EBD, ESP, and multi-way adjustable driver seat.
We expect the Tata Hexa to be launched between Rs 12.30 lakh and Rs 18.50 lakh, ex-showroom, Delhi. The Mahindra XUV 500 is priced between Rs 12.46 lakh and Rs 18.54 lakh, ex-showroom, Delhi, while the Toyota Innova Crysta carries a price tag of Rs 13.98 lakh for the base variant and Rs 21.19 lakh for the top version. Although, the Innova Crysta is costlier than the two, but being a fully-grown MPV, the price justify the car and the equipment offered and the option of powertrains. We also expect Tata Motors to price the Hexa competitively and under cut the Mahindra XUV500 and The Toyota Innova Crysta in the price bracket. http://www.financialexpress.com/auto/car-news/tata-hexa-vs-mahindra-xuv500-vs-toyota-innova-crysta-engine-features-safety-and-price/511556/
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Our ambition is to become No 3 in the Indian car market by 2019: Tata Motors Hrithik Kiran Bagade and Umesh M Avvannavar Deccan Herald (Web Edition) Tata Motors Head Marketing (Passenger Vehicle Business Unit) Vivek Srivatsa is new to India’s largest automobile company. However, he believes that it is a good time to be part of the company, as it is launching more products and a lot of fresh initiatives around the corner.
In an interaction with DH, Srivatsa talks about Tata Motors’ ambition to become one among the top three players in the Indian passenger car market.
When did you join Tata Motors, and how do you feel?
I have been with Tata Motors for six months now. It’s a privilege to be a part of the Tata Group, and I think they are really on the verge of huge growth in the market.
What brings you to Bengaluru?
We have the Hexa Experience Centre conceived as a road show. We have the new lifestyle SUV Hexa being launched soon. And before the launch, we want customers to actually experience the car.
The road show goes around many cities in the country, and we had our first experience centre in NCR, and the second one has come to Bengaluru, and after this, we go to other cities. Bengaluru is a very important city for us, and we are doing pretty well here, and it’s time to show customers our product.
Please share your future plans.
We are doing very well with the Tiago, which is one of our products, we launched last year. We are number four in the market right now, in fact in the month of November we were number three. And our slated ambition is to become number three in the Indian market by 2019. We will have a lot of new launches coming up, lot of initiatives in terms of customer experience, so that the customer can experience our car better, and have a much more upmarket buying experience with Tata Motors, buying and after sales experience. A combination of this will ensure new cars, and a better customer experience will ensure that we become number three by 2019.
What’s the idea with 2019?
It’s not possible to just become number three in the market overnight. We have given ourselves three years time to get there.
Could you give us the breakup of the SUV segment with market share?
The SUV segment is one of the fastest growing segments in the country now. Usually, the hatchback segment is the largest segment in the market. But SUV segment is growing very fast and one of the segments that it is eating into is the sedan segment. In fact, this year, both sedans and SUVs are at around 20%-22% of the market of passenger cars.
That’s why, it’s important for us to launch a car which is a very good competent product in the SUV segment, and we are approaching it in a very confident manner. No manufacturer shows the car to the product, and actually allows customers to drive the car much before the launch. Usually, it is seen as a static display, but now actually, we are getting customers to drive the car not in normal conditions, but in extreme conditions. We want to show customers that we are extremely confident about the product and we will launch it in a very strong manner in January and hope to gain a good market share in the category.
What are your expectations from Hexa?
As I said, we want to make a very good impact in the SUV category. It is a very important category, because it has growth as well as volume. With Hexa, we want to make a big dent in this segment, and also show customers a different and strong value proposition.
We believe that some of our competitors are doing pretty well but at the same time we believe Hexa as a product has a better value proposition for a customer. So we hope to make a strong impact and redefine the segment in the terms of value.
What are your expectations for the number of cars to be delivered?
We don’t normally share sales expectations. But I can tell you that you can look at the segment, I mean category. So, the prime competitors for this car would be the XUV 500 from Mahindra, they sell about 3,000 cars a month. The Innova sells about 7,000 cars a month. So we will be in that kind of a ballpark in terms of volumes.
What is the contribution of Karnataka towards Tata Motors nationally?
It is one of the markets where we are very strong. Our lead product so far has had a very strong following here. Our latest hatchback Tiago, which is now the number one volume contributor for us, is also doing extremely well. Karnataka, and Bengaluru in particular, is a very important market for us. And that is why, after the NCR, we are here.
What are the three major challenges with respect to Tata Motors? Because, as you said, the SUV segment is growing immensely, and the Maruti Vitara Brezza has rocked the market. So pricing is very important. How do you see it?
The Indian customer is value-conscious now. I won’t say that he is price-conscious. When I say value-conscious, if he sees the value that he wants in a product, he doesn’t mind paying the right price and that is something many manufacturers are starting to realise.
It is not enough to give a low-priced product which doesn’t have what the customer wants. So, today, it is a challenge to understand what the customer really wants, and then price it at an acceptable level.
Again, we believe that we will do it with the Hexa. We understand the need of the market, the need of the customer. And we hope to also give customers very good value for money in terms of prices.
What would be the production capacity for Hexa?
We can produce as per customer demand.
Tiago scored very well, and Tata Motors has come again in the limelight of customers. People are talking only because of Lionel Messi.
Lionel Messi helped us in creating awareness, but the product is extremely strong. In the automotive market, you cannot win without the right product. And, with Tiago, we defined the segment value. In many parameters, the Tiago was best in segment. You take quality of interiors, exterior design, functionality inside the car, music system, the entertainment, infotainment package, the overall feel inside the cabin, the size of the engine, the power output of the engine, fuel efficiency, in various parameters, the Tiago redefined the segment, and still brought it to the customer at a very reasonable price.
Till date, how many Tiago units have you sold?
With the Tiago, we have crossed 50,000 bookings and we in fact will be close to 60,000 bookings right now. And production is catching up with bookings. Every month, we are taking more orders and have ramped up production for the same.
What is the production capacity for the Tiago?
We have sold about 60,000 cars so far in about 10 months, and we are catching up. That’s about 6,000 cars a month. We have an exclusive new plant for the Tiago platform in Sanand. The plant is about three-years-old. It was initially the Nano plant. Now, it has been upgraded to manage the Tiago platform.
How many production plants does Tata Motors have in India for PVs?
We have seven plants across the country. Passenger Vehicles are manufactured in Sanand and Pune. We make Tiago and Nano in Sanand. The Bolt, Zest, Safari, Indica, and Indigo are made in Pune, and the Safari Storme in Pantnagar (Uttarakhand).
After Tiago, which is the best model car sold by Tata Motors now?
The Zest is our compact sedan and it is doing very well. In fact, last month, we sold about 3,000 sedans. It was launched about a year-and-half back, but now, it is really picking up quite well. Our traditional SUV Safari continues to be very strong. And of course, our old work horse, the Indica and Indigo continue to deliver value because customers trust their performance a lot. So, we are not dependent on any one product to deliver our volumes. While Tiago sells the most, our volumes are well spread out across many products.
For the year 2016, How many vehicles will Tata Motors be selling?
It is difficult for me to put the number. But we hope to be number four in the market. We will be number four in the market by the end of the year.
What is the game plan for 2017?
We have already displayed two cars in the New Delhi Auto Expo, last year. So after Tata Hexa, we will have a new compact sedan, code-named Kite 5. The compact sedan will be launched, and later in the year, we will have another compact SUV called the Nexon which will be launched later in 2017. And with that we will be well on our way in terms of gaining market share and becoming number three.
So every year, two cars will be launched by Tata Motors?
On an average, I would say... It’s not evenly spread out, but definitely next year, we have two cars coming out.
The Kite will compete with whom?
Ans. The Kite will be a compact sedan. We will compete with Maruti Suzuki Dzire, Hyundai Accent among others.
And what about the compact SUV Nexon?
The compact SUV as you said is a very competitive segment. We will compete with the Brezza and Ecosport.
In terms of Tiago, which sells more the petrol or the diesel?
Petrol out sells the diesel heavily. In fact, you will be surprised to know that it’s the top-end petrol, and the fully-loaded petrol which contributes close to 60% of our sales. And the top two trim levels contribute to more than 80% of our sales. It is really refreshing for Tata Motors and is a testament to our belief that if you give the customer the right value the customer is more than willing to pay for it. The Indian customer looks at value for money.
How many sales points do you have across India?
We have about 550 outlets, which include 3S outlets with sales, service and spares. How about the improving service network? What are the strategies of Tata Motors to regain customer confidence?
We are focusing on customer experience, sales experience, and product experience, but after-sales experience is one of the key focus areas. We are already doing very well. In fact, this year, in the JD Power customer satisfaction survey, we were among the biggest gainers. We are number two in terms of points. So it’s a testament to the kind of efforts that our after sales team has put in, in terms of experience at the network, availability of spare parts, costing of spare parts, and turnover in time of our cars at the service centres. It is a comprehensive effort we are undertaking, and for us, it is one of the most important parts of building the brand, aftersales.
Tata Motors sells more of yellow boards. How much of yellow board contributes to sales to the Tata Motors?
Not even one Tiago goes into yellow board. Tiago is a purely personal car. And, I can confidently tell you that our future products are strongly oriented towards personal segment. You will see Hexa, the kind of finishing of the product, capability it has, it is purely in the personal segment. And so will the future products as well. Yes, we have the confidence of commercial operators. Commercial operators buy cars which they believe will be on the road for a very long time, are very durable, easy to maintain, so we are not defensive about that. We do sell a lot to our commercial fleet operators. I mean even the new aggregators like Uber and Ola, believe and trust our cars a lot. But the gain in market share for us will come in the personal segment. And all our new products will be focused for the personal segment only. It will be very individualistic and self-drive kind of cars.
Which are the major cars sold to the taxi aggregators?
Indica, Indigo obviously. But recently we have opened out Bolt and Zest also to aggregators.
Finally, Zest is on yellow board now too?
Not completely, but to the aggregators, it is available. The Zest is doing extremely well with the personal segment as well. That’s why, I said the commercial segment has changed. No longer it’s a rule that what is available with aggregators will not be bought by the personal segment. Today, the Uber and Ola experience is completely different. You call for the cab on an app. You have a driver who goes with a map. So the experience is different. You have a lot of high-end cars as well, with the aggregators. Today, the commercial segment is changing completely. In fact, today, customers want aspirational cars to be available through Uber and Ola. That’s why, you have the Ola Prime and high-end cars available with the aggregators as well. The entire approach towards aggregators and commercial operation is changing, and we need to provide the best cars to them.
How about ecommerce players’ place in the market the big role for Tata Motors? Because, most of the car companies have tied up with so many ecommerce players?
I will classify ecommerce today as one very small aspect of the entire car buying experience. Ecommerce today is active in taking bookings of the car. But digital experience is something much bigger than just booking the car. And that’s where we have a digital corner here. We are going very strong overall as Tata Motors on digital, but specifically, with the Hexa as well. Today, with some of the digital tools that we have, customers can experience the car without going to the showroom, in fact with the mobile phone. We have an extremely adaptable website. We have a Hexa app where we can see all the features of the car in a very easy way. We have a 360-degree animated Hexa experience on the mobile where you can drive the car, and you can go inside the car and you can see features of the car completely on your mobile phone itself. And we have a 24-hour chat window which is opened just today, where you can chat 24 hours to any of our operatives and understand about the car. Hexa has a complete digital environment for the customer to experience. And in case, he wants to book digitally, we will open out a digital window for the customer. Ecommerce players opening bookings is one part of the entire digital journey.
Till date, you have not tied up with any of the ecommerce players?
We will tie up. We have our own Tata CliQ which is an ecommerce player, and Hexa will be available for booking through the Tata CliQ.
When will it start? Or it has already started?
At the time of launch. http://www.deccanherald.com/content/591942/our-ambition-become-no-3.html
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NEXA: Fastest growing retail network Hrithik Kiran Bagade and Umesh M Avvannavar Deccan Herald (Web Edition)
Randhir Singh Kalsi, Executive Director (Marketing & Sales) at Maruti Suzuki India (MSI), is elated to be associated with not only the country’s largest car manufacturer, but also with it’s growing retail network — NEXA.
Kalsi was in Bengaluru recently to inaugurate two NEXA outlets, Varun Motors (Rajaji Nagar) and Garuda Autocraft (Banaswadi). On a drive to the airport, he shared with DH, his thoughts about NEXA’s journey, what challenges it faced and what next is in store.
Take us through the journey of NEXA.
Maruti Suzuki has been in the Indian market for over three decades. Today, new customers who are stepping into our showroom are different. They are like third generation customers. Their needs are demanding. They don’t want the “dad’s car”, but a NextGen car with loads of technology. Their profile is unique, their approach to life different, and they like to be treated differently.
So they demand a car which is different. So keeping this in mind, we conducted research. And what we found is that this generation are the people who travel by air, enjoy five-star hospitality, have grown with computers, smartphones and connected devices, and look forward to IoT.
Their banking style is different. When they go to the bank, they deal with relationship managers rather than over-the-counter clerks. So they expect a similar experience when they visit a car showroom. Based on these findings, we came out of an idea of NEXA to give them the premium feel, be it ambience, monochromatic colour scheme, a digital experience and minimal paperwork.
As customers love pampering and fine hospitality, we have designed special menus and relationship managers are a change here from the regular showrooms.
How many jobs have been created through NEXA channel?
Over 3,800 jobs have been created. None of the employees from our existing showrooms were recruited at NEXA to ensure five-star services to customers.
They have been trained in five-star full-time residential training for a week, so that they can understand what is five-star hospitality to understand how customers visiting hotels are pampered. These people are trained by Dale Carnegie on soft skills. So these relationship managers will execute our vision at the showroom level.
How big is the network?
Till date, we have set up 200 showrooms in this small span of 17 months, which has also made NEXA the fastest growing retail network in the world. We positioned the S-Cross as our first car to be sold through NEXA, followed by Baleno. Till date, we have sold over 1.6 lakh units both put together.
The Baleno is already a market leader in the compact hatchback segment and is doing very well. On January 13, Ignis joined NEXA as an entry-level urban compact car. In future, Baleno-RS, a performance vehicle will join NEXA.
To sum it up, NEXA is a huge success. In fact, it has become a case study and it has certainly given us big boost in terms of image.
In fact, 50% of customers visiting the NEXA channel are the ones who never had Maruti Suzuki in mind, while buying a car. The NEXA is helping us in expanding the market for new generation customers.
What are the challenges you faced in setting up NEXA?
Well, there were many challenges both internal and external. The first challenge was the internal. A lot had to be discussed and debated about why we need to give a premium experience. People had to be convinced about the changing profile of car buyers. To think of it, today, we have 440 million millennials who are born after 1985. These people are different with unconventional approach.
Apart from this, there were external challenges. First of all, our existing dealers felt frightened because a new channel is coming up, so they might get eliminated. We had taken strategic decision that the NEXA channel would be given to our existing dealers. Initially, people are apprehensive, not everyone is aligned to our vision.
Because of the apprehension, many of them were not coming forward. In fact, we had three different categories of dealers. Some who are immediately willing to buy our vision and thought process. They were on board. Then there were some who were apprehensive that it may not work, and they were not coming forward. Then, the third group comprised fence sitters who said, “we will wait and watch”. Fortunately for us, the dealers who came forward had faith in us to set up their showroom and are doing well.
The idea was initially to have small number of showrooms and our strength is our biggest network at that point of time with over 1,700 showrooms. To cater to the needs of the regular showroom customers, we aligned them with NEXA dealers. It is like bonding the best of both. This was a short-term strategy. When we crossed over 50 outlets of NEXA, everyone appreciated the idea of a premium feel.
In fact, there was a story in The New York Times about NEXA and as people started seeing its success, more and more dealers came forward. Today, we have close to 200 showrooms which are already operational. By the end of this fiscal, we have a target to touch the 250-mark across the country.
Which is the biggest market?
Well, I can’t say region-wise. Of the two models, S-Cross and Baleno. For Baleno, there is a waiting for 24 weeks. Waiting period depends on the number of bookings. The spread is even across the country.
How about the Karnataka market?
Recently, we inaugurated the eighth showroom in Bengaluru. In all, Karnataka has 14 showrooms. Moving forward, we will increase it by 50% in the next six months.
What are the terms and conditions to open a NEXA showroom?
Existing dealers of MSI get the first preference. But if they are already a NEXA dealer, then other dealers are considered so that there is widespread distribution and everyone gets the opportunity to be part of the network. Dealers should be willing to provide a 4,500 sq feet site at a premium location, and financially he should be sound.
Performance on quality parameters should be good in terms of customer satisfaction, service history and capability to expand market.
How many relationship managers man NEXA?
It depends upon the potential we see in a city. By and large, there are 15-20 relationship managers.
What are the targets you have set for them?
Since Baleno is in waiting period, setting a target at this point of time will not make any sense.
Has NEXA added value to MSI’s market share?
Roughly, 10% of our sales today is coming from NEXA. Market share gain for the last two years is 3%, and NEXA has potential to add value to MSI’s market share. Nationally, we are selling 12,000 to 13,000 units per month. In Karnataka, we sell over 1,000 units per month, which is about 8%.
What is the meaning of NEXA?
It means, Next Experience in Automobile Retailing. We just use the term ‘NEXA’, as it has become big brand. It is easier to pronounce and remember, not a tongue-twister.
How tough it is to convince a customer about long waiting periods?
Transparency is the name of the game. If a customer comes to buy a car and we inform him that there is a 24-week waiting period, and we do deliver the car within 24 weeks, I think he is happy.
We face a tough time only in unforeseen situations like shortage at plant, breakdown. But an informed customer understands this. In case of more delay, we ensure that the customer is informed in advance with valid reasons.
Buying a car is an emotional decision by a family. Customers are conservative about the day, date and time to get their dream machine. Hence, it is important to keep them posted about any delay or timely delivery.
Has Vitara Brezza eclipsed S-Cross?
Not really, because both are in two different segments. S-Cross is a crossover in a premium segment category. While, Vitara Brezza is an urban compact SUV. The concept of compact SUV is new to the Indian market.
They were talking about SUVs which will look only bold, wild and monstrous in appearance. But we did our own research and what we found was that today, ruggedness, strength, sportiness and glamour is the game-changer. The Vitara Brezza looks sporty, sexy and a big hit with the people desiring it. Within a span of about eight to nine months, we sold 80,000 units. It is a market leader in this segment.
What about S-Cross?
Actually, let me give you a little background. The S-Cross is a crossover vehicle. People look for a performance of an SUV, and the comfort and luxury of a sedan. The S-Cross fits into this slot.
This concept is yet to pick up in India. People think it is a big hatchback. Some others say it is down-fill version of an SUV. But actually, it is a crossover that gives comfort and benefits of both categories. Today, we are selling 2,500 units of S-Cross per month. We are already a market leader because this segment is not popular so far, and the next crossover would be selling 1,000-1,500 units per month in this category.
We are already number one at 2,500 units. Now issue is that Maruti is used to big volumes. Customers who analyse our performance, they also think that unless we sell 15,000-20,000 units per month, we are not successful. In case of S-Cross, it is not correct. Now, we are the market leader.
Any plans to enter smaller towns?
We have already covered tier II cities. As on date, we have presence in over 150 cities. So it is not just metros, mini-metros. We have gone to towns and cities. By this fiscal, we will have 250 showrooms, and would be covering 95-97% share of it.
What about Karnataka market sans Bengaluru?
There are eight showrooms in Bengaluru. Two in Mangaluru, Hubballi, and one in Mysuru. We have showrooms coming in Tumakuru, Shivamogga, Belagavi and some more in Bengaluru.
Any plans for separate service centres for NEXA products?
As of now, we are leveraging our existing network for NEXA products. On NEXA workshops, we have started working on that and may be within Q4 of this fiscal, you will see some NEXA workshops coming up. On challenges, we are able to get good service areas close to showrooms. Wherever it is not possible, we are again going for innovative methodology that we will have collection centres near the showroom. If the workshop is 5-6 km away, we will pick up the car and get it serviced and by evening, deliver it either at customers’ place or at collection centres.
How was 2016 for Maruti Suzuki?
It was a wonderful year with lots of challenges. In between, there was an issue raised by the National Green Tribunal (NGT) on diesel. Otherwise the market was fairly stable and growth has been fairly consistent. In the beginning of the year, we set a target of double-digit growth. At the same time, we surpassed the SIAM forecast.
GST is getting delayed. Will it impact the industry?
The government has indicated more or less the tax structure would be the same because they cannot afford any revenue loss. So the GST (Goods and Services Tax) Council may recommend revenue structure. So whatever they have finalised will be acceptable. For Maruti Suzuki, GST will mean a lot as our plants are in North India.
We are distributing cars and spare parts across the country. If GST comes, it will bring uniformity (smooth) movement of goods. It will add to logistics efficiencies.
Airbags will be made mandatory. Is Maruti Suzuki ready?
Yes, we are ready and we are providing all safety regulations in our existing product line-up. Whatever the government is stipulating and in some of our models, we are ahead of government norms.
How about Alto? Are customers willing to pay?
Once it is mandatory, then there is no option neither for OEMs (original equipment manufacturers) nor customers. And certainly, there would be some increase in cost. At the same time, there will be no competitive advantage as everyone has to do it. So the entire pricing of industry goes up. In the interest of the safety of the driver, co-driver and occupants of the car, and even road users, it is worth it. The cost may go up by Rs 5,000 to Rs 8,000.
How many plants does MSI have, and their capacity?
We have plants at Gurugram and Manesar with combined capacity to the tune of 1.5 million units. Now, that is installed capacity. There is a difference between installed capacity and what we can produce by using many innovations at the manufacturing level. So we can spread the capacity. At the same time, our Gujarat plant is coming up. In the first phase of this plant, we have set a capacity of 2.5 lakh units annually. Trial production will start in Q4 of this fiscal.
Which cars will roll out from the Gujarat plant?
We are starting with Baleno as it has a lot of backlog and then we will think of other models. The Baleno, which is exported to over 100 countries including Japan, will roll out from this facility.
Tell us something about the export market. Which is your biggest market?
We are exporting Alto, Baleno, DZire and a couple of other models. Currently, our export share is about 10% of our domestic production.
On the biggest market, this keeps on changing, depends on policies of the government and taxation structure, followed by importing countries. At present, our major markets are in Africa, South America, and also some European countries.
Any value addition to MSI’s service network?
When we talk about service, there are two important elements, first is the reach. India, geographically is a vast country and reach is very important. Customers have to be given service at their door step. This is a big advantage for Maruti. As of today, it has over 3,200 workshops across the country. Second, the availability of Maruti Genuine spare parts at the right time.
We are fully focused not only through our dealerships but through more than 600 distributor outlets. This gives a lot of comfort to customers.
Having said that we have to improve the way we provide service to our customers, efficiencies in our workshops, same-day delivery. If there is a small job to be done on the car, can we do it within two hours through express delivery is key to us. Also, we are working towards digital enabled workshops (Wi-Fi) and also designing apps where customers can know from their mobile phones the status of the vehicle. http://www.deccanherald.com/content/591941/nexa-fastest-growing-retail-network.html
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Navi is targeted towards fun-loving customers: Guleria Sandesh M S and Umesh M Avvannavar Deccan Herald (Web Edition)
Yadvinder S Guleria, Senior Vice President (Sales & Marketing), Honda Motorcycle & Scooter India, has propelled Honda to number two position from number four in the Indian two-wheeler industry in a short span.
With Guleria at the helm, Honda has more than doubled its sales en route a third consecutive record-breaking year in India, clocking a total sale of 44.5 lakh units in FY 2014-15; up from 22 lakh at the end of FY 2011-12. At present, Honda is number one in top 35 towns of India, while one in every four two-wheelers sold is now a Honda. In an interaction with DH, Guleria explained the effort and research in making the Navi motorette (a mix between a motorcycle and a scooterette).
Edited excerpts:
When did you launch Honda Navi and how has the response been?
Honda Navi was unveiled at the Auto Expo in February 2015, and despatches started from the last week of March 2016. Since its launch, Navi continues to receive an overwhelming response and has succeeded in grasping imagination of the youth with its unique appeal.
What is the idea behind launching Honda Navi? Who are your target customers?
Around 70% of the two-wheelers sold in the country have engine displacement up to 100-110 cc. However, most of the models irrespective of their segment - Motorcycle or Scooter - are lookalike without much differentiation in specifications or features. Considering this potential and moving away from the syndrome of sameness, Honda R&D India challenged to unleash Honda’s FUN DNA and create “New additional Value for India” — Navi. In its standard form, the design statement is FUN to SEE and pure FUN to RIDE. Providing endless possibilities in expression, yet affordable to own one and customisation for the young customers — Navi is designed in such a way, that it opens up a significant opportunity to modify and customise it to suit ones taste. And therefore pure FUN to Create. The Navi is targeted towards fun-loving, young urban customers in the age group of 18-24 years.
Is this the first time in India, where a two-wheeler company has come up with a motorette (a mix between a motorcycle and a scooterette)? How about global market?
The Navi is first-of-its kind two-wheeler 100% developed by Honda research and development India from concept development to commercial production. We have already started exports to neighbouring countries.
The production of the Navi takes place in which plant, and what is the production capacity?
Currently, Navi is manufactured at our second plant located at Tapukara in the Alwar district of Rajasthan. The initial plan for Navi had to be increased capacity wise and now we are ready to produce and dispatch 1,00,000 units annually.
Till date, how many Navi has been sold and which is your biggest market?
Over 54,000 units have been sold till December 2016. The western and southern regions of the country contribute more than 50% of total Navi sales.
How important is Karnataka market wrt Navi? How much is the contribution of Karnataka towards national sales in terms of percentage you may specify?
Southern region alone contributes 25% to the all India Navi sales among which Karnataka state is the highest contributor with 33% contribution in the region.
Navi is exported to how many countries?
Honda Navi exports crossed 2,000 unit dispatches within just four months of exports commencement. It is currently being exported to Nepal and Sri Lanka, where the response has been very encouraging. Continuing its expansion drive it will soon explore new export markets.
Which are the new variants you have launched recently? Explain the importance of both variants.
Apart from it’s unique look, the option of customisation has played a crucial role in earning tremendous customer interest. Almost 50% customers buying Navi opt for customising it. The expansion of Navi’s unique customisation options offer exciting and unique possibilities to customers for personalising their Navi in their own unique way. We have recently introduced two more editions for the Navi – the wild untamed Adventure edition and the shiny sparkling Chrome edition which are sure to provide an extra dose to those who have an appetite for FUN. We have already started to receive online bookings. We will continue to surprise our customers and add more fun with expansion of customisation options. http://www.deccanherald.com/content/591944/navi-targeted-towards-fun-loving.html
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Cars, SUVs, MUVs New 2017 Nissan Sunny launched in India for Rs 7.91 lakh (ex Delhi) The Economic Times (Web & Print Edition)
New Delhi: Nissan India on Tuesday has launched its all new sedan 2017 Sunny for Rs 7.91 lakh (ex-showroom Delhi) and will be immediately available in dealerships across the country.
The automaker said in a press statement, "The New Sunny 2017 enhances the premiumness of the car with unparalled comfort and style and now comes adorned in a classy and elegant 'Sandstone Brown’ exterior colour. Stylish chrome door handles enhance the car’s premium ambience. Additionally, the interior now has the option of an all-black look with striking black fabric seats and new black interior panels."
Arun Malhotra, Managing Director, Nissan Motor India said, “Nissan India is constantly listening to the voice of our customers. The New Sunny 2017 is a testimony to this with its spacious interior, comfortable drive feel and fuel-efficient engines. The new features and color options offer more to our customers at the same price and we are confident this package will attract new Nissan car buyers.”
The 2017 Sunny offers two powertrain options: a powerful 1498cc, HR15 petrol engine coupled with the XTRONIC CVT, and a torquey 1461cc k9k dci diesel engine mated to a 5-speed manual transmission. The New Sunny diesel variant offers fuel efficiency of 22.71 per kilometer.
The New Sunny comes equipped with features like intelligent key, push button start, and enhanced safety options including anti-lock braking, electronic brakeforce distribution, and brake assist in all grades with dual front and side airbags. http://auto.economictimes.indiatimes.com/news/passenger-vehicle/cars/new-2017-nissan-sunny-launched-in-india-for-rs-7-91-lakh-ex-delhi/56620189 Nissan launches new Sunny, price starts at Rs. 7.91 lakh The Hindu Business Line (Web Edition) http://www.thehindubusinessline.com/companies/nissan-launches-new-sunny-price-starts-at-rs-791-lakh/article9484586.ece Nissan launches new Sunny, price starts at Rs. 7.91 lakh The Hindu (Web Edition) http://www.thehindu.com/business/Industry/Nissan-launches-new-Sunny-price-starts-at-Rs.-7.91-lakh/article17049835.ece Nissan launches Sunny with new exterior colour, priced at Rs 7.91 lakh The Financial Express (Web Edition) http://www.financialexpress.com/auto/car-news/nissan-launches-sunny-with-new-exterior-colour-priced-at-rs-7-91-lakh/511201/
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Maruti Suzuki spends Rs2,000 crore on Nexa dealerships in image makeover bid Amrit Raj mint (Web & Print Edition)
New Delhi: Maruti Suzuki India Ltd executives have traded in their baggy, navy blue suits for slim-fit black suits or smart casuals. Some have shed weight. The hair is neatly trimmed.
Some were gamely learning to tap their feet when Deejay Axwell of Swedish House Mafia fame was mixing his numbers at a free gig in Delhi’s Indira Gandhi Indoor stadium hosted by Maruti to showcase its new launch Ignis on Friday night.
It’s all part of a makeover Maruti is attempting to shed the dad’s car image it has come to acquire over the years since its inception in 1984. A key element of the makeover is Nexa—the new premium sales outlet network on which Maruti and its dealers have invested Rs2,000 crore in the past year.
Of that sum, Maruti has invested half, managing director Kenichi Ayukawa said in an interview.
Maruti’s dealer fraternity is spending around Rs900 crore to build plush Nexa showrooms and stockyards. Some 250 dealers will have a Nexa showroom by the end of the year, up from 199 now. A significant investment will go into building standalone Nexa service centres; Maruti won’t bear the cost of infrastructure, but will give a sales margin of up to 5% to its dealers on every car sold.
Ayukawa says he wants to build a cool image for Maruti. The investment in Nexa will gradually come down as the concept takes root and the network gains critical mass.
Even so, the Rs2,000-crore bill (still counting) does seem steep for what is essentially a rebranding exercise aimed at acquiring a more upmarket image for India’s largest selling car maker.
Two other companies, Bharti Airtel Ltd and Hero MotoCorp Ltd, spent no more than Rs300 crore each on their brand revamps. Nor is Maruti the first company to offer a superior sales and service experience at select outlets. Honda Motor Co. in India pioneered the concept. So, what is Maruti’s objective?
Nexa hasn’t been a great sales success since the network was launched in July 2015. It has showcased some great models such as the Baleno and S-Cross.
But sales of 12,000 units per month from the Nexa outlets isn’t anything to write home about. Its non-premium channel sells more than 15,000 units of Swift and Dzire combined a month.
For Ayukawa, Nexa is an investment for the future.
“Through Nexa, we are challenging something that we have not done. We have a basic concept business, which is a small car, a middle-sized car. Nexa is (meant for) a little bit different kind of products which we want to supply. We want to check and recognize what is the customer expectation. Based on that information, we want to develop products not only in Nexa but also in the existing channels,” Ayukawa said.
Indeed, Maruti is trying to do things differently. Later this year, it will introduce the Baleno RS under Nexa with a one-litre turbo-charged engine, which is essentially a fuel guzzler.
That’s something which is against the basic DNA of Maruti, which has so far sworn by a high fuel economy to maintain its leadership position. Baleno RS will be all about power, performance and its only competition at the moment seems to be the Volkswagen Polo GT.
Ayukawa expects Nexa to have a trickle-down effect on the traditional sales channel.
“First we implement that kind of a concept to Nexa and if we get good response there, if we notice that such an experience is improving, we have to try to transfer some experience to the existing channel,” he said.
Of the new 15 models that Maruti plans to introduce by 2020, up to six models will be sold under Nexa.
On the perception front, Maruti has noticed a change.
“We do a brand track where we meet close to around 800 people a week and monitor the image of the brand. There is an association that is coming, which is about ‘this is the kind of car that I would like to own’. We were more associated with value for money and stuff like that. Brand association has gone up to 85% from 73-74% earlier. This has been done in just a year, which I think, says a lot,” Vinay Pant, associate vice-president (marketing), said in an interview.
It isn’t just about acquiring a premium tinge. It’s also about margins.
New regulations around safety, emissions and fuel economy will make Maruti’s entry-level cars—its bread and butter segment—expensive. Maruti will try to minimize price increases, and will take a hit on margins.
Will Nexa compensate for that?
“I think so,” Ayukawa said. Of course, higher sales of entry-level cars will partly counter the margin hit, he said.
In the coming months, meanwhile, Maruti will continue building on initiatives such as the ‘MyNEXA Concierge’ airport display and lounge for customers at New Delhi’s Indira Gandhi International Airport, and on Friday and Saturday night music concerts across six cities in the country. All on the house. http://www.livemint.com/Companies/ATS1TB4kif0XTGqRfxpRtN/Maruti-Suzuki-spends-Rs2000-crore-on-Nexa-dealerships-in-im.html
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Honda Cars India organises Mega Service Camp across India The Economic Times (Web Edition)
New Delhi: Japanese carmaker's India arm Honda Cars India Ltd will organise an "All India Mega Service camp from 19th – 25th January 2017".
The Mega Service Camp would be held across pan India network of 331 dealerships in 220 cities. The week long Service Camp will provide multiple benefits for the customers during this period.
Customers of Honda Cars India can avail attractive offers like Free 50 point check-up of car, Discounts on labour & parts, 15% discount on Value Added Services, Free top wash, Attractive schemes on service products like Road Side Assistance, Extended Warranty and purchase of Tire and Battery.
Talking about the initiative, Yoichiro Ueno, President and CEO, Honda Cars India Ltd. said, “Honda is committed to offer joy of buying and owning our cars to our customers. In order to offer an unmatched experience to our customers even after they purchase our products, we are organizing this nation-wise service camp. It will give us an opportunity to reach out to our customers and provide them additional incentives. We hope our customers make the most of this initiative.”
Honda Cars India Ltd., (HCIL) leading manufacturer of passenger cars in India was established in December 1995 with a commitment to provide Honda’s latest passenger car models and technologies, to the Indian customers. HCIL has two state-of-the-art manufacturing facilities at Greater Noida, U.P and Tapukara, Distt. Alwar, Rajasthan.
In India. the company’s product range includes Honda Brio, Honda Jazz, Honda Amaze, Honda Mobilio, Honda City, Honda BR-V and the Honda CR-V. The Accord Hybrid is being sold as a CBU imported from Thailand. http://auto.economictimes.indiatimes.com/news/aftermarket/honda-cars-india-organises-mega-service-camp-across-india/56626542
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Maruti sets the pace with new models, premium play Ashutosh Shyam The Economic Times (Delhi Print Edition)
ET Intelligence Group: Amid a volatile demand scenario, nearly 24% of the passenger car volume over the past year has come from new models.With a slew of model launches, Maruti Suzuki India was one of the biggest beneficiaries of the trend.
One out of every five cars sold by the country's largest automaker in December was a Vitara Brezza, Baleno, Ciaz or an S-Cross -all new models in its product portfolio.
Against this backdrop, the launch of the Ignis, which was announced on January 13, is expected to keep the tempo high for Maruti. The hatchback is touted to be feature-rich to attract customers in the age group of 18-29, often referred to as millennials.This age group now accounts for 27% of the total car purchase in India, compared with 22% six years ago. In the hatchback segment, nearly 55,000 units are sold every month. If Ignis' volumes are able to touch 10,000 units a month, similar to the Brezza and Baleno, it would lead to a 4-5% volume upgrade for the company . Maruti has an internal target of producing 21,000 units of the Ignis in the current fiscal year through March. The company is set to launch fullyrefreshed versions of the Swift and Swift Dzire and the Baleno RS in 2017.Analysts expect Maruti's overall volume to grow 5% and 12% in fiscal years 2017 and 2018, respectively.
According to analysts, Ignis may make an operating profit of `44,00069,000 per vehicle as compared to Rs.75,000 by Swift. The margin on Ignis will improve once its cumulative production crosses 2 lakh units.
Apart from new models, Maruti has also been successful in launching cars with price tags above Rs. 4 lakh, through what is known as premiumisation. The volume of such cars has touched 10,000 units per month. This should help in boosting average realisation and operating margins in the long term. Its average realisation grew 6% on an annualised basis in the fiscal year 2016.
Given the combined impact of volume visibility and premiumisation, Maruti is emerging as one of the best large-cap consumption stocks. It is available at 22 times the company's estimated fiscal 2018 earnings. The valuation appears reasonable for a quality franchise with its potential of earnings upgrade if the impact of demonetisation on passenger vehicles is softer than feared.
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Groupe Renault 2016 sales up 13.3%; expects to grow in India by 8% in 2017 The Economic Times (Web Edition)
New Delhi: Groupe Renault has registered 13.3 percent growth in its worldwide passenger car and light commercial vehicle sales in 2016 at 3,182,625 vehicles. This is for the fourth straight year that the Groupe has recorded positive sales.
The group’s share of the world automotive market stands at 3.5 percent (up 0.3 points versus 2015). Both Renault and Dacia brands have registered record sales. Renault keeps its position as the world’s leading French brand.
The group continued to benefit from buoyant conditions on the European automotive market (up 7 percent on 2015), with registrations up 11.8 percent to 1,805,290, for a market share of 10.6 percent.
Outside Europe, Groupe Renault achieved record sales in 2016, up 15.3 percent on 2015 against growth of 5.2 percent on the market as a whole. Volumes and market shares were up in all regions.
“In 2016 we sold 3.18 million vehicles worldwide, setting a new sales record. Our strategy of product range renewal and geographic expansion, under way for several years now, has proven to be successful. It enables the Groupe Renault to progress significantly in terms of volume and market share in each region,” notes Thierry Koskas, member of the Executive Committee and Group Executive VP for sales & marketing.
Despite uneven economic situations across the globe, Groupe Renault strengthened its positions to increase its market share in all regions. Again, its product range renewal programme bore fruit, with Kwid in India, QM6 and SM6 in Korea, Kaptur in Russia, Koleos in China, Megane Sedan in Turkey and Oroch in Latin America.
In 2017, the global market is expected to grow by 1.5 percent to 2 percent compared with 2016. The European market is also expected to increase by 2 percent, with a 2 percent increase also for France.
At the International level, the Brazilian and Russian markets are expected to become stable. China shall grow by 5 percent and India by 8 percent.
Groupe Renault should continue to reap the benefit of product range renewal in Europe, and of the strong dynamic on international markets, with Kwid in India, Koleos and Kadjar in China, Kaptur in Russia, QM6 and SM6 in South Korea, and Alaskan plus the SUV range in Latin America.
Groupe Renault therefore expects a sustained growth in sales volumes and market shares in Europe and in the international markets. http://auto.economictimes.indiatimes.com/news/industry/groupe-renault-2016-sales-up-13-3-expects-india-to-grow-8-in-2017/56622496
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India sales register fastest growth for Renault T E Narasimhan Business Standard (Web & Print Edition)
Chennai: French auto major Renault’s India market is the company’s fastest-growing turf in the world with sales increasing 145.6% in 2016, chiefly on the back of the Kwid.
The Indian market has risen five notches to become the company’s eighth-largest worldwide.
In Europe, Renault's registrations were up by 11.8% to 1,805,290. Outside Europe, it reported 15.3% growth, and its product range renewal programme was successful with the Kwid in India, the QM6 and SM6 in South Korea, the Kaptur in Russia, the Koleos in China, the Megane Sedan in Turkey and the Oroch in Latin America.
In 2016, the firm sold 132,235 units in India and the Kwid registrations totalled 105,745. The combines Groupe Renault registrations for Africa, West Asia and India, rose by 36.4% in 2016, giving a market share of 6.2% (up 1.7 points). In Iran, sales rose 110.7% and in Morocco, registrations were up 22.5%.
In the Eurasian region, registrations rose 2.3% mainly due to growth in Turkey, where they were up 4.4%.
In the Americas region, Groupe Renault (official name of the group) sales rose 0.1%. In Brazil, the market that shrunk by
19.8%, the market share rose 0.2 percentage points to a record 7.5%, thanks to the Duster Oroch.
In the Asia-Pacific region, Renault Samsung Motors, subsidiary of Renault in South Korea, sales rose 38.8% in South Korea. In China, following the release of the Kadjar, sales rose by 50.8%.
Sumit Sawhney, country chief executive officer and managing director, Renault India (operations), said India was priority for Groupe Renault and the market played an important role in its international growth.
The year 2016 has been the most important one for Renault in India, backed by strategic measures in all key business dimensions such as product, network expansion and steps on customer satisfaction, Sawhney said.
For 2017, the focus will be on growth and planning to launch at least a product every year in the next five years.
Renault’s network grew from 205 to 270 facilities in 2016. http://www.business-standard.com/article/companies/for-renault-india-sales-registers-fastest-growth-globally-at-145-117011700616_1.html
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Tata Elxsi looks to test driverless cars on Bengaluru roads Alnoor Peermohamed & Raghu Krishnan Business Standard (Web & Print Edition)
Bengaluru: Tata Elxsi is looking to test an autonomous, or driverless, car out on the roads of Bengaluru. This would be a first in the country.
Currently, all major automobile manufacturers as well as technology firms of the Silicon Valley, such as Google, Apple, Uber and Tesla, are building and testing autonomous vehicles. Experts believe cars that will drive themselves could be as common on the streets as their human-driven older cousins by 2025.
Tata Elxsi works with carmakers and their specialised component suppliers. It is leveraging its knowledge in computer science and artificial intelligence to grab a share of the soon to be multi-billion dollar global industry. It has already begun simulating and testing autonomous cars at a facility on the outskirts of Bengaluru.
“This is a field (autonomous cars) that’s evolving and multiple people are working on it,” said Ashish Khushu, the vice-president and head of the transportation business at the engineering and design services firm. “The fundamental issue is the ability to put in place a system with real-time data analysis and calculation as well as predictive analysis and prescription. This is largely a computer science problem.”
The firm has re-engineered two sedans — one from Tata Motors — and fitted these with several sensors such as LIDAR, radar, stereoscopic cameras and ultrasonic sensors which will send their inputs into the self-driving stack the company has developed.
The onboard computers will then produce necessary course corrections, braking and accelerator inputs to the car’s systems, resulting in autonomous driving. The Tata group company is currently seeking permission from the authorities to test its autonomous vehicle on Bengaluru’s roads. It did not commit to a timeline.
The tests would make Tata Elxsi the first global company to attempt such a feat on Indian roads, giving it valuable data on driving an autonomous car in a dynamic, ever-changing environment.
This would also help position the company as a supplier of the underlying software platform to global carmakers, which are looking at crunching time to build and launch their autonomous cars.
“What we’re developing will be useful in many ways for OEMs (original equipment manufacturers) and suppliers of parts. It will provide them a platform to get more research and development faster than ever,” said Nitin Pai, head, marketing, Tata Elxsi.
He added, “The grand objective is to be able to offer on a platter to somebody a complete pre-developed autonomous driving framework.”
Unlike traditional cars, the software in autonomous cars needs to be trained on local driving scenarios, including terrain, signals, road signs and also dynamic changes such as traffic before it is launched in newer markets. Tata Elxsi has taken a modular approach to building autonomous vehicles, offering its stack or portions of its stack to other manufacturers and even parts suppliers that are looking to build autonomous vehicles. While Tata Elxsi will steer clear of building sensors, it is co-developing some sensors with manufacturers in order to function properly with its software solution. http://www.business-standard.com/article/companies/tata-elxsi-looks-to-test-driverless-cars-on-bengaluru-roads-117011701566_1.html
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Demand from Uber and Ola driving car sales Sharmistha Mukherjee & Ketan Thakkar The Economic Times (Web Edition)
New Delhi | Mumbai: App-based cab aggregators such as Uber and Ola have not only disrupted traditional taxi and three-wheeler markets across Indian cities, but they are also pushing overall car sales at a time when automakers are struggling to expand business.
Fleet operators are estimated to have added more than half a million vehicles over the last two years, accounting for more than 10 per cent of total passenger vehicle sales during this period, largely helped by soaring sales to cab aggregators.
Carmakers expect cab aggregators to drive their sales in the future even as fewer people may buy vehicles for personal use. "Bulk of cars will not be privately owned but will be used commercially by aggregators," said RC Bhargava, chairman of the country's largest carmaker Maruti Suzuki India.
According to carmakers that ET spoke with, app-based cab operators accounted for over 100,000 cars, or almost one-third of total sales to fleet operators last year, up from around 70,000, or about one-fourth of total taxi sales in 2015. This year, sales to cab aggregators are expected to increase by at least 25 per cent while overall passenger vehicle sales are expected to grow in single digits, they said.
"App-based aggregators have added over 600,000 vehicles in the last four-five years," said Puneet Gupta, associate director at automotive consulting firm IHS Markit. "At present, more than 75 per cent of business for these firms comes from the top seven metros. As they increase their reach, demand for vehicles will also go up. In the short-to- mid term, almost 30 per cent of growth registered in the passenger vehicle segment will come in from these players."
Maruti Suzuki's Bhargava, however, doesn't see this as a threat to the industry. "Given that the running cycles of cabs are more than personal vehicles, we foresee shorter replacement cycles for the cars. This will trigger demand for cars," he told ET.
Whether the popularity of Uber and Ola impacts car sales for personal use in the future or not, right now soaring demand from aggregators is a boon for an industry that has been otherwise struggling to grow sales due to a number of reasons, including an eight-month ban on sales of larger diesel vehicles in the National Capital Region, imposition of infrastructure cess of up to 4 per cent in the union budget last year, and most recently on account of weak consumer sentiment post the November 8 demonetisation announcement.
"Growth was stunted by diesel ban and demonetisation, which impacted the sentiment in 2016 and given the tough times, the fleet segment turned out to be a significant contributor," said Rakesh Srivastava, senior vice-president, sales and marketing, Hyundai Motor India.
Calling app-based cab aggregators "the new shooting star for the Indian passenger vehicle makers", Srivastava said they will continue to drive demand and compel carmakers to make products designed for them. Fleet segment is expected to contribute to about 15 per cent of the passenger vehicle market, up from the current 5-6 per cent. Approximately 600,000 cars are now operating in the app-based cab segment, according to industry estimates. With both Ola and Uber planning to penetrate more cities and towns across the country, the segment is set for exponential growth.
Ola has already announced its ambition of having a fleet of 5 million while Uber plans to lease 200,000 cars to drivers joining its platform over the next two years.
Dedicated teams Most carmakers have set up dedicated teams to support fleet services with special pricing, service plans and customisation to meet the specific requirements of such companies.
Mahindra and Mahindra has put in place a dedicated team to handle fleet and new-age business under its institutional sales arm. It offers product, finance, insurance, exchange and service under the One Mahindra umbrella. Veejay Ram Nakra, senior vice-president for sales and customer service at its automotive division, said the fleet segment accounts for a significant share of its passenger car sales and the company is looking to increase penetration in this segment in the near future.
Mahindra has already tied up with Ola to deliver more than 40,000 cars in two years. Its rival Tata Motors has tied up with Uber to deliver 20,000 cars. Maruti Suzuki has inked partnerships with Uber and Ola to train 30,000 and 40,000 driver partners, respectively, at its training schools over the next three years.
India's biggest carmaker sold over 60,000 cars to cab aggregators between April and December 2016, 67 per cent higher than a year earlier. In FY16, the firm's total sales to aggregators stood at 48,000 units. Sales to cab aggregators currently constitute about 6 per cent of its retail sales.
At Toyota Kirloskar Motor, sales to cab aggregators more than doubled to 12,700 in 2016 from 4,500 units in the previous year. Sales to cab aggregators now account for 10 per cent of overall volume, up from 3 per cent in 2015.
N Raja, senior vice-president at the firm, expects the segment to grow faster although Toyota Kirloskar did experience some initial stress on fleet sales in November after demonetisation. Arun Malhotra, managing director at Nissan Motor India, said the fleet segment has "significant potential in the coming years". http://economictimes.indiatimes.com/small-biz/startups/demand-from-uber-ola-driving-car-makers-sales/articleshow/56633234.cms
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Maruti Suzuki Ignis first in segment features Asian Age (Web Edition)
The Maruti Suzuki Ignis has pulled a lot of attention even before its launch. Its bookings started last week and the waiting period has already crossed 8-10 weeks for the petrol variant and 11-12 weeks for the more popular diesel. It is a funky looking car that offers an automatic transmission in diesel as well. Apart from this, the Ignis also offers a lot of features never been seen before in the hatchback space.
What sets the Ignis apart is the long list of features it offers. We pick out a few that no one yet offers in its segment.
1. LED Headlamps When you first look at this car, your gaze will most likely wander along the massive uni-grille and rest on the LED DRLs. But the LED equipment of the Ignis doesn’t end there. The Ignis will be the most affordable hatchback in the country (by a huge margin of around Rs 18 lakh) to adorn LED headlamps. The next hatch, without a luxury badge, to have LED headlamps is the Volkswagen GTI, which is retailed at a hefty ex-showroom price of Rs 25.99 lakh. This feature though, will only be available in the top-end Alpha Variant. Rest assured, though, you will have bright times ahead.
2. Touchscreen Infotainment System Targeting millennials’ need to stay connected, Maruti has equipped the Ignis with a 7-inch floating display on top of the dashboard - something normally found on high-end luxury cars. This display runs Suzuki's SmartPlay infotainment system which packs Apple CarPlay, Android Auto and MirrorLink. Also, the infotainment system doubles up as the display for navigation and the reverse camera. Quite impressive for a car which will most likely cost you less than Rs 8 lakh. Though the Kwid offers a seven-inch touchscreen infotainment screen in its top variant, it missis out on smartphone connectivity options like Apple CarPlay, Android Auto and MirrorLink.
3. Dual-Tone Exterior Colours Maruti is offering the Ignis in two-tone paint schemes in the top two variants - Uptown Red with a Midnight Black roof, Tinsel Blue with a Midnight Black roof, and Tinsel Blue with a Pearl Artic White roof. This not only makes the car look cool but also lets customers personalise their car.
4. Diesel With Automatic Transmission After a lot of demand, Maruti has finally answered the call of Indian car buyers with an affordable diesel automatic hatchback. The AMT transmission on the Ignis is available with its two mid-variants – Delta and Zeta. The AMT is not only paired to the diesel, but is also available with the petrol engine, in the same variants. Maruti Suzuki has equipped the Delta and Zeta with AMTs to keep the automatic variants affordable. So, if you are looking for a hatchback which gives you the fuel efficiency of a diesel with the convenience of an automatic transmission, the Ignis is the one for you.
5. 15-Inch All-Black Alloy Wheels Where most hatchbacks in the country make do with 13 or 14-inch wheels, the Ignis features sturdy 15-inch alloy wheels. These wheels are painted black in the top-of-the-line Alpha variant and give the car a prominent SUV-esque stance.
Not only in terms of features, the Ignis has also created a lot of buzz for being one of the only diesel automatic hatchbacks in the country. It has a 1.3-litre diesel engine from the Swift which makes 75PS of power and 190Nm of torque. Mated with the 5-speed manual or the AMT, the diesel claims to return a mileage of 26.80kmpl. The petrol, on the other hand, is a 1.2-litre unit producing 83PS of power and 113Nm of torque. The claimed mileage for the petrol-manual and petrol-automatic combination is 20.89kmpl.
The Ignis will be launching in India on January 13, 2017. We expect Maruti to price it on the lines of the Swift; perhaps, cheaper. Expect the base variant of the Ignis to have a sticker price of Rs 4.5 lakh. http://www.asianage.com/business/autos/170117/maruti-suzuki-ignis-first-in-segment-features.html
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Ratan Tata refutes Cyrus Mistry’s allegations on Tata Nano Shally Seth Mohile mint (Web & Print Edition)
Mumbai: The Nano small car, a bone of contention in the tussle between Tata Sons Ltd’s interim chairman Ratan Tata and Cyrus Mistry, the ousted chairman, has now made it to the courtrooms.
Tata has defended his stance on the Nano and strongly denied allegations by Mistry that his (Tata’s) “persistent resistance” prevented the Nano project from being shelved.
In an affidavit filed at the National Company Law Tribunal (NCLT) on 6 January, Tata cited an email sent by Guenter Butschek, managing director and chief executive of Tata Motors Ltd, to Mistry, mentioning that Ratan Tata had not objected when the issue of scrapping the Nano was broached with him at a meeting.
The Nano was Tata’s pet project and Mistry has cited mounting losses from it—cumulatively valued at Rs6,400 crore—to be the key reason for the poor financial performance of Tata Motors’ domestic operations.
In an affidavit filed at the NCLT earlier this month, Mistry accused Tata of excessive interference in matters of Tata Motors and conducting reviews with company officials directly, undermining the position of the executive chairman of Tata Sons.
“Apart from aviation, his other personal passion was the automobile industry,” Mistry said. He alleged that despite being fully aware that the Nano lost money, Ratan Tata pushed for increasing production of the car and “pestered for a higher marketshare”. Mistry also said Tata suggested that Tata Motors chase large orders from cab aggregator Ola—in which Tata has a stake in his personal capacity—instead of Uber, with which the Tata group was pursuing an engagement.
Dismissing the allegations, Ratan Tata said in his affidavit that it was “unfortunate that my concern for Tata Motors would be coloured with a taint of ulterior motives on my part”. Tata said he suggested that Tata Motors should talk to Ola only because he was approached by Ola’s co-founder, who told him the response from Tata Motors to Ola Cabs’ proposal to buy several cars was very slow. Tata Motors should act swiftly and pursue such a proposal aggressively to improve sales volumes, Tata claims he told Mistry. He also added that his letter to Mistry clearly stated that the company should pursue a deal with Uber if that was more attractive.
Tata blamed Mistry for the drastic drop in the company’s passenger vehicle market share—from 13% when Tata was the chairman to 4-5% now. “It is very convenient for Mistry to allege that the losses and lack luster performance of Tata Motors is on account of the Nano, when even the present sales of the company largely comprise of the older models such as the Indica and the Indigo, with newer vehicles such as the Zest, Bolt and Tiago introduced during Misty’s tenure not contributing significantly to the sales or profit of Tata Motors,” he said.
Mistry first made a mention of the small car and the big losses in the five-page letter to Tata Sons board on 25 October, a day after he was removed as chairman following a boardroom coup. “The Nano product development concept called for car below Rs1 lakh but the costs were always above this,” wrote Mistry, pointing out that “there is no line of sight to profitability for the Nano and any turnaround strategy for the company requires to shut it down. Emotional reasons alone have kept us away from this crucial decision”.
The Nano hit Indian roads in July 2009. More than seven years since it went on sale, the jelly-bean shaped model has failed to woo the average two-wheeler owner and first-time car buyers, as envisaged by Tata, and sales continue to dwindle.
A Tata Sons spokesperson said he didn’t have anything more to add to what had been presented in the affidavit. Cyrus Mistry’s office declined to comment.
Tata Motors shares closed at Rs523.25 on Tuesday, down 0.63%, on a day the BSE’s benchmark Sensex fell 0.19% to 27,235.66 points. http://www.livemint.com/Companies/JnWsD6mDoOiEPHVExcrdVP/Tata-Nano-Caught-in-the-crossfire-between-Ratan-Tata-and-Cy.html
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Maruti Suzuki Ignis vs KUV100 vs Grand i10 vs Swift: Feature Comparison Deccan Chronicle (Web Edition)
Maruti Suzuki's first compact crossover, the Ignis, has been launched in India. While the entry level variant has been priced at Rs 4.59 lakh, the top-end variant can cost up to Rs 7.8 lakh (both prices ex-showroom, Delhi). The Ignis competes with the likes of the KUV100, Grand i10 and the Swift. But does the Ignis provide value for money? And what do the competitors offer for the same amount of money? We compare the variants of the Ignis with its competitors.
Sigma Priced at Rs 4.59 lakh (ex-showroom, Delhi), the Sigma is the entry level variant and is only being offered with a petrol engine. Features like manual air conditioner, front power windows, dual airbags and ABS are offered with the Sigma.
Other petrol hatchbacks like the K2 variant of the Mahindra KUV100 (Rs 4.58 lakh), Era variant of the Grand i10 (Rs 4.91 lakh) and the Lxi variant of the Swift (Rs 4.76 lakh) have similar prices as the Sigma, which also offer basic features like a manual air conditioner. While the Grand i10 comes with front power windows, the KUV100 and Swift miss it. However, the KUV100 does offer features like a rear spoiler, roof rails, an optional third seat in the front row, ABS and also has optional dual airbags. The Swift and the Grand i10 don't come equipped with ABS. Although the Grand i10 has a chrome finish on the radiator grille, only a single airbag is offered with it.
Delta In additional to the features offered with the Sigma, the Delta gets some added features like ORVM-mounted indicators, dual-tone interiors, an audio system paired with two speakers and steering-mounted controls. The Delta variant is being offered with both petrol and diesel engines and you can also choose between manual and automatic transmissions. So, the Delta is being offered in a total of four combinations: manual petrol (Rs 5.19 lakh), AMT petrol (Rs 5.74 lakh), manual diesel (Rs 6.39 lakh) and AMT diesel (Rs 6.94 lakh).
As far as the competitors are concerned, no other cars offer an automatic transmission with a diesel engine in this segment. However, the Grand i10 offers a four-speed automatic transmission with a petrol engine in its top Asta variant and is priced at Rs 6.85 lakh. So if you are looking for an affordable diesel/petrol automatic car in this segment, the Ignis is the car for you. The Ignis Delta petrol AMT is almost one lakh cheaper than the Grand i10 petrol automatic.
Petrol variants of other cars with a manual transmission like KUV100 K4 (Rs 5.1 lakh), Grand i10 Magna (Rs 5.18 lakh) and the Swift Lxi optional (Rs 4.81 lakh) have a similar price as the Delta manual petrol (Rs 5.19 lakh). The Ignis Delta is the most expensive among the four cars but has more equipment. Except for the Ignis, none of the other cars have an audio system and speakers. Apart from the optional dual airbags offered in the KUV100 and the Swift, the Grand i10 misses the front passenger airbags. The Ignis and the Grand i10 have electrically adjustable ORVMs; however, the Grand i10 is the only car in this segment to feature rear AC vents.
The Ignis Delta diesel with manual transmission is priced at Rs 6.39 lakh and other diesel cars with manual transmission like the Mahindra KUV100 K4+ (Rs 6.17lakh), Grand i10 Magna (Rs 6.06 lakh) and the Swift Ldi (Rs 5.97 lakh) are priced similarly.
The Diesel variants also have similar features like the petrol variants mentioned above in the Ignis Delta petrol comparison.
Zeta Like the Delta, the Zeta also offers both the petrol and diesel engines with manual/automatic transmissions. However additional features like fog lamps, push-button start, electrically folding ORVMs and alloy wheels are offered with the Zeta.
Priced at Rs 5.75 lakh, the Zeta manual petrol competes with the KUV100 K6+ (Rs 5.91 lakh), Grand i10 Sport (Rs 5.64 lakh) and the Swift Vxi (Rs 5.52 lakh). If we talk about the Zeta manual diesel, it has a price tag of Rs 6.91 lakh and competes with the KUV100 K6+ (Rs 6.82 lakh), Grand i10 Sport (Rs 6.52 lakh) and the Swift Vdi (Rs 6.44 lakh).
The KUV100 doesn't feature fog lamps and alloy wheels. However, the KUV100 and Grand i10 do have a cooled glove box which will come handy during highway travels. The Swift and the Grand i10 have electrically folding ORVMs and fog lamps, but, among the four cars, only the Ignis offers push-button start.
Alpha Alpha is the top variant and comes with distinguishing features like LED projector headlamps with daytime running lamps, reverse camera, 7-inch touchscreen infotainment with Apple Car Play and Android Auto and automatic climate control. It is offered with both petrol and diesel engines; however, it is not available with an AMT transmission.
While the Alpha petrol is priced at Rs 6.69 lakh and competes with the cars like KUV100 K8 (Rs 6.25 lakh), Grand i10 Asta (Rs 6.1 lakh) and the Swift Zxi (Rs 6.37 lakh), the diesel version of the Alpha is priced at Rs 7.80 lakh and competes with the KUV100 K8 (Rs 7.16 lakh), Grand i10 Asta (Rs 6.99 lakh) and the Swift Zdi (Rs 7.44 lakh).
The Ignis is priced quite higher as compared to other three cars. The KUV100, Grand i10 and the Swift do offer sufficient features for their price tag. However, if you want features that have never been seen in this segment before, the Ignis does make a strong case for itself. http://www.deccanchronicle.com/business/autos/170117/maruti-suzuki-ignis-vs-kuv100-vs-grand-i10-vs-swift-feature-comparison.html
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Tata Motors brings 'HEXACITEMENT' to B'luru Hrithik Kiran Bagade and Umesh M Avvannavar Deccan Herald (Web Edition)
Take a deep breath! Both hands on the steering wheel and concentrate as the margin of error is less. Welcome to Tata Motors’ first-hand experience to test the Hexa’s prowess on and off the road. The only car manufacturer which allowed the customers to drive and feel the car much before its launch.
This event will be one of the toughest moments for us to surpass with inclines, declines, side slopes, axle twisters and alternate rumblers, which is designed to test the power, stability and the driving experience of the Hexa.
Powered by an advanced next-gen 2.2-litre Varicor 400 diesel engine, the Tata Hexa delivers class leading 400 Nm torque and 156 PS power. The Hexa manual transmission variant, boasts first-in-segment super drive modes allowing the driver to seamlessly switch between the four different driving modes auto, comfort, dynamic, and rough road, for enhanced ride comfort and stability over different terrains.
The auto mode is used on a day-to-day basis to drive in the city. Comfort is when you would basically want to get more mileage out of the vehicle. For example, if you’re driving on a highway and doing greater distances, then you will get more mileage with the comfort mode. Dynamic is also two-wheel drive, but in this, you would get a very aggressive acceleration.
It’s two-wheel drive, but with aggressive acceleration, you can show off a little bit, which means that you can basically take the car and do a kind of drifting and donut drifts. In the dynamic mode, though the acceleration is aggressive, the ESP of the vehicle kicks in a lot later. What that allows you to do is the moment you start sliding your car and the moment it senses that you are overdoing it, the ESP or the electronic stability programme of the vehicle will kick in. It will cut power from your vehicle and bring you in a straight line. It will not allow you to overdo it and be in a tight situation, or go and crash your car.
So that’s how the dynamic mode works. Then you have rough road, which is a four wheel drive mode. In this, the torque on demand is working at its most aggressive nature. Even with a slight throttle input, you are able to generate a lot more torque. The 400 NM of torque that the Hexa has is there just for you to use right at the slight input of the throttle. And in this, the traction control is also working very aggressively.
Articulation rams In articulation rams, the vehicle is going to articulate, once it starts climbing, you will see that the vehicle is only a traction on two wheels. That’s when the traction control kicks in. You will see the wheel is spinning, and the moment it senses that it will automatically break that particular wheel and transfer the drive to the wheels that have traction and take you forward. To get more torque, one has to shift from auto to rough road mode to go through this obstacle much more smoother without making the car struggle.
Honestly, as a driver, you can’t see anything. How do you judge that you are right in the correct position? It just comes by experience. As a passenger, you will pray, when this obstacle will be over. The tough part here is that the SUV is standing only on two wheels, which would create an imbalance and fear among passengers.
200-mm ground clearance The Hexa has very good ground clearance of 200 mm. A set of rubber tubes were lined up, which we won’t come across daily, but it’s just to show you that you don’t have to come with great speed or you don’t have to build up momentum. We are just basically cruising through it.
One can notice the suspension of the vehicle, even though we are going through such kind of an obstacle, there is no struggle with the suspension. It’s much smoother and refined as well.
A set of rollers The moment we start driving here, the rollers begin to roll, with the wheels free-wheeling over them. There is no traction. That’s when the traction control will kick in and transfer all the drive from the left-side wheels to the right-side wheels, and that’s how you go up. Otherwise, you’ll just be remain stationery, and won’t be able to go forward because they are rolling against your flow.
So here also, likewise, ground clearance plus the torque on demand that the vehicle has is the reason why we are able to go over this. Also, when you are off-roading, you should always be at a very gradual speed. There is no need for you to be fast.
The only reason for that is, when you go over obstacles, and if you are going to be at a higher speed, then the chances of hitting your under-body are even more because the suspension travel increases. But in this kind of a surface, it is all about play between — I mean the control that you have over the throttle and the clutch. Because it’s a manual, if you are not in the correct mode or your throttle control and clutch control are not right, the vehicle would stall.
12 feet at the top The biggest obstacle we faced is climbing 12 feet high with the angle in the middle being 31 degrees; that’s the maximum this car can climb. This also comes with another feature which is known as hill-hold. For example, in a normal car, if you are in this situation, the moment you leave the brake, the car would roll back.
But this has hill-hold, which means the moment you leave the brake, the car will stay in this position for three seconds, and only then start rolling back. I will leave the brake now... 1, 2, 3... and then it starts going back.
This acts as a safety feature, giving you enough time to move your feet from the brake to the throttle. So now, we are doing this steep climb, and when I start climbing, you should just look up straight only then will you be able to experience it more.
The middle angle is about 31 degrees, and when we go up right at the top, we are going to slow the car down, and then we are going to descend the other way. Remember, one has to keep the power band up. The only reason for that is if the car stalls in between, then one has to come down all the way because the restart capability is 24 degrees and we are at 31 degrees. To compensate it, one will have to come all the way down. We failed twice as it needs good amount of experience to judge the amount of acceleration to tap. http://www.deccanherald.com/content/591946/tata-motors-brings-hexacitement-bluru.html
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Luxury Cars Range Rover Evoque petrol launched Asian Age (Web Edition)
Tata Motors-owned British automaker Land Rover has introduced the petrol variant of the Range Rover Evoque in the Indian market. Previously only available with a diesel powertrain, the petrol variant is being offered in the SE trim and has been priced at Rs 53.20 lakh (ex-showroom Delhi).
The petrol motor of the Evoque is a 2.0-litre four cylinder turbocharged unit dishing out 240PS of max power and 340Nm of peak torque. The power is sent to all four wheels via a nine-speed automatic transmission. In terms of performance, the petrol engine-equipped Range Rover Evoque can dash from 0-100kmph in 7.6 seconds. Flat out, it can reach a top speed of 217kmph. To help it tackle corners, Land Rover has equipped it with features such as electronic stability control and torque vectoring by braking.
Rohit Suri, the president of Jaguar Land Rover India Ltd, said, "We are excited to introduce the 2017 Model Year New Range Rover Evoque with a 2.0l petrol derivative. The addition of the 2.0l petrol derivative reinforces our commitment towards customers who aspire to drive this fabulous vehicle with a powerful petrol engine."
Among the cars sold by Land Rover in India are the flagship Range Rover (Rs 2.13 crore), Range Rover Sport (Rs 1.17 crore), New Discovery Sport (Rs 47.59 Lakh) and 2017 Model Year New Range Rover Evoque (Rs 49.10 Lakh). In terms of price, the Range Rover Evoque 2.0L SE (P) competes against the likes of BMW X3 xDrive 28i and Mercedes-Benz GLC 300 4Matic Sport in India. http://www.asianage.com/business/autos/170117/range-rover-evoque-petrol-launched.html
Top Jeep may launch the Compass in India in June 2017 Deccan Chronicle (Web Edition)
According to an insider source from Fiat Chrysler Automobiles (FCA) India, the Jeep Compass, which was globally unveiled in 2016, may be launched in India by June 2017. It will be the first Jeep to be manufactured in India at the FCA’s Ranjangaon plant near Pune and is expected to be priced around the Rs 18 to 20 lakh mark.
Part of FCA, Jeep is an iconic American carmaker that has excelled in developing rugged utility vehicles since the early 1940s. In 2016, Jeep entered India with three of its most recognised models - Grand Cherokee, Wrangler Unlimited and Grand Cherokee SRT. Once the Compass is launched in India, the Ranjangaon plant will become one of the four manufacturing hubs in the world where this SUV will be manufactured. Put together, these four hubs (in China, Brazil, Mexico and India) will produce the Compass for 100-plus countries globally.
The Compass will come with an array of 17 powertrains combinations to serve different markets around the world. Customers in India will have an option of a petrol or a diesel powerplant and both the engines will have manual and automatic transmissions. The petrol-powered mill is likely to be a 1.4-litre Multi Air Turbo unit and the diesel is expected to be a 2.0-litre Multijet II turbo motor. The manual transmission, in all probability, will have a six-speed setup whereas the automatic transmission could feature a nine-speed one. Moreover, Jeep is likely to offer the Compass with only all-wheel drive powertrains, although the AWD system offered may vary from variant to variant.
Once launched, the Jeep Compass will lock horns with the Honda CR-V, Hyundai Tucson and the Skoda Yeti. Can it be the model to finally get the numbers rolling Jeep's way in India? Only time will tell! http://www.deccanchronicle.com/business/autos/170117/jeep-may-launch-the-compass-in-india-in-june-2017.html
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Commercial Vehicles
Construction & Agri Machinery
2/3 Wheelers Mopeds ride high in a shrinking market, bring 35% volume for TVS Motor Ajay Modi Business Standard
New Delhi: Even as the domestic two-wheeler market hit the slow lane, one segment is strongly bucking the trend and posting double-digit growth. In the last two months, moped sales have grown at an average 23 per cent, weathering the heat of demonetisation. In the November-December period, the volume of scooters and motorcycles had declined 14 and 15.8 per cent, respectively.
Domestic sales of mopeds had grown by almost 27 per cent to 674,168 units during the April-December period of FY17. This is much higher compared to the corresponding growth of 16 and six per cent seen in scooters and motorcycles. Moped is the smallest segment in the two wheeler space after motorcycles and scooters. A record number of mopeds are set to be sold this year as well.
Chennai-headquartered TVS Motor is the only moped manufacturer in the country and is the sole beneficiary of this surge in sales. Interestingly, TVS Motor which enjoys the third biggest spot in domestic two-wheeler market, ahead of Bajaj Auto, gets 35 per cent of its volume from mopeds. It sells more mopeds than motorcycles or scooters.
The firm sold 674,168 mopeds during April-December while scooter and motorcycle sales were 643,460 and 610,438 units, respectively. In FY16, TVS sold mopeds worth Rs 1,554 crore or almost 14 per cent of the revenue. The company consistently declined responses to queries on mopeds as it eyes a bigger pie of the motorcycle and scooter market. TVS roped in superstar Amitabh Bachchan as its brand ambassador for its Jupiter range of scooters.
Abdul Majeed, partner at Price Waterhouse, said South India was a key market for mopeds and it was less affected than other regions post demonetisation. “The ticket price of a moped is much lower to scooter and motorcycle. This is another reason that supports demand”. Majeed said moped was a strong segment for TVS and has helped the company expand its offerings. “There is always a market for affordable products”.
TVS Motor’s third position in the domestic two- wheeler market is also owing to the presence of this additional product in its portfolio with no competition. Players like Kinetic Motors and Majestic Auto had a presence in the moped space some years ago. However, both players exited the two-wheeler space and. TVS manufactures four models of the moped: XL100, XL100 Comfort, XL Super and XL Super Heavy Duty. The price begins at Rs 26,857 (ex-showroom, Delhi) and ranges up to Rs 31,000.
Mopeds are sought-after by people running smaller businesses due to their weight-carrying and haulage abilities. They are lighter and are easy to manoeuvre in traffic. TVS also exported 15,000 moped in the April-December period, 25 per cent more compared to last year. http://www.business-standard.com/article/companies/mopeds-ride-high-in-a-shrinking-market-bring-35-volume-for-tvs-motor-117011701061_1.html
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Hero unveils 2017 Glamour with i3S Deccan Chronicle
Hero MotoCorp has started its operations in Argentina and on this occasion it has also globally unveiled the new Glamour 125. It is one of the highest selling 125cc motorcycles in India and features cosmetic as well as mechanical changes. It will be offered in both carburetted and fuel-injected versions.
The 2017 Hero Glamour gets a sleeker design with a revised trapezoidal headlamp that also features Auto Headlamp On (AHO). The new split-spoke alloys look more stylish and the bike also gets a revised instrument console with a bigger LCD screen. The carburetted version of the bike will be made available in four colour options, namely Candy Blazing Red+Black, Black+Sports Red, Black+Techno Blue and Black +Tornado Grey, while the one with fuel injection will be missing the last option.
Ditching the horizontal cylinder engine, the 2017 Hero Glamour gets a new forward inclined vertical motor. The new BS-IV, 125cc engine is also said to deliver 27 per cent more power to 11.5PS and 6 per cent increased torque to 11Nm. Besides the new i3S technology saving fuel in traffic, the new motor claims to deliver 3 and 7 per cent enhanced fuel economy in the carburetted and the fuel injected trims respectively.
Other new features of the bike are LED tail lamp, a more contoured seat, and handlebar-mounted choke, while rest of the equipment remains unchanged. The new Glamour continues with the same telescopic front forks, twin rear shocks, optional front disc brake and more. The bike will be offered in 19 of the company's 35 current markets and its availability is expected to be announced in March or April 2017. http://www.deccanchronicle.com/business/autos/170117/hero-unveils-2017-glamour-with-i3s.html
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Good things come in small packages Sandesh MS Deccan Herald
Chota bike” or “Compact Bike” are the first words that are usually uttered from anybody as soon as they see the Honda Navi on the road. Is it a battery-operated vehicle? Is it a bike? These are the other queries asked by onlookers to the rider.
One has to confirm to them that this is not a bike with gears, nor a typical gearless scooter made for short people, girls or women. With attractive looks and colours, the Navi is completely a new design among Indian two-wheelers, a sort of a ‘crossover’ or ‘hybrid’ between a gearless scooter and a motorcycle design, aimed at a discerning and captivated customer base, which also wants to have fun. Though the ‘mini-bike’ was launched only months ago, there is a sizeable presence of the Navi in traffic, with many dashing colours like orange and fluorescent to flaunt.
The lightly-built Navi is a suitable two-wheeler for those who demand a lighter bike. Compact, the Navi offers A-Z requirements of the perfect scooter, but build like a smart motorcycle. Honda calls this smart revelation ‘motorette’.
Seated on a small toy-like bike, cruising into traffic asserting their right for space on the road abuzz with other vehicles of various shapes and size through narrow roads, is the perfect way to enjoy riding the Navi. It’s a tailor-made machine for the city, especially in those roads with a high traffic density. With no burden of shifting gears nor applying the clutch at every juncture, the Navi is a true traffic-cutter that makes you love your ride.
The motorette’s 110cc-engine is equal to Honda’s own Activa, which is already the market leader in India’s scooter space. What is special about Navi is the cute compact look, that makes one to instantly fall in love with it. A little bigger radius tyres from a normal scooter, and the tubeless tyres are the plus-point in the Navi, made for Indian roads.
Fancy features The handle-lock in the handle-bar, fuel tank in the front, crash guard, foot rests on the sides, and the fuel control are the special attractions for Navi. However, the company claims that it has adopted Royal Enfield’s feature in the handle-lock. A rider can actually get a bike feel on the road with all these features.
A mono suspension is another surprising feature found on the Navi. The single suspension plays a significant role for the pillion-rider to enjoy the ride, even on the worst road conditions.
Besides the rider, Navi designers kept the pillion rider in mind. With the spacious single seat, foot rest, and single suspension, it is a complete package for two people. As with almost every two-wheeler sold in India, a saree guard is also included in the accessories list.
In terms of utility spaces, the Navi has lots of it on board. Unlike motorcycles, which have their engines tucked away below the fuel tank, this ‘chota bike’ has a large utility space in the same place. A box to fit this space is also included in the list of vehicle accessories. With this, the Honda Navi also serves the purpose of customers who give importance to utility spaces in their vehicles. http://www.deccanherald.com/content/591945/good-things-come-small-packages.html
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E-Bikes
Components
Allied Industries Tyre stocks in top gear despite profit booking in wider market The Statesman
New Delhi: Tyre maker Ceat Ltd. led peers higher on Tuesday as traders concentrated their buying energies on second rung stocks in a market where front line shares came under pressure.
Tyre stocks shot up between 1.3-10 percent compared with a 0.2 percent fall in the benchmark 51-share Nifty. The rally came in despite prices of natural rubber, the main raw material, quoting near 3-year highs. International rubber prices are informally benchmarked to global crude oil prices, which are in a strong uptrend.
Investors and traders remain bullish on the prospects of local tyre makers despite demonetization hitting factory demand and offtake of vehicles from showrooms.
As a consequence, Balkrishna Industries surged 10.3 per cent to 1,197 rupees. Ceat jumped 2.1 per cent to 1,212 rupees. Sector leader MRF gained 1.2 per cent, 53,740 rupees. TVS Srichakra rose 1.4% to 3,281 rupees. http://www.thestatesman.com/business/tyre-stocks-in-top-gear-despite-profit-booking-in-wider-market-1484637425.html
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Emissions / Environment
Finance & Insurance Road accidents: Govt looking at time limit for filing insurance claims Suresh P Iyengar The Hindu Business Line
Mumbai: The government is considering a time limit for filing insurance claims in road accidents to make the process of giving compensation more efficient and faster.
The General Insurance Council, the association of 30 insurance companies, has recommended a deadline of one year for insurance claims in case of death in road accidents and six months for injuries.
R Chandrasekaran, Secretary General, General Insurance Council, said the Motor Vehicles Act provided for a similar deadline till 1994 but was removed by Parliament after the Supreme Court observed in one of its judgments that compensation should not be denied on account of delay in filing of a case.
“Way back in 1994, there were only four (general) insurance companies. But now the insurance sector has undergone a sea change and there are scores of private companies with well-defined claim processing systems,” he said.
In this age of computerisation and online filing of first information report (FIR), it is not very difficult for both the police and the consumer to work on a fixed deadline, said Chandrasekaran.
The move, he said, will also bring down rampant forged claims that are made years after the accident. The Council made a submission in this regard before the Parliamentary Standing Committee on Transport, Tourism and Culture last November.
With road accidents rising, there are about 10 lakh accident cases waiting for insurance claim settlement and about six lakh cases are being added every year.
Accident report Of the overall pending cases, about 70-75 per cent pertain to minor injuries, such as bruises and fractures, where the claim is not more than Rs. 2.5 lakh. On an average, a claim is settled in seven to eight years due to various delays.
The Council has also recommended that the government implement the provision available under law, that is, allow the police to submit a copy of the Detailed Accident Report (DAR) to the insurance company and the court simultaneously.
In 2009, the Delhi High Court took cognisance of a judgment passed by the Supreme Court and directed the police to submit a copy of the DAR to the respective insurance company. Following this, Chandrasekaran said most claims in Delhi are being settled within one year against seven years in other States.
The precious time of courts need not be wasted if a copy of the DAR is provided to the insurance company and there is no dispute between the insurer and the insurance company, he added.
Following in the steps of the Delhi High Court action, the Madras and Bombay High Courts have given instructions to the police to follow suit. http://www.thehindubusinessline.com/todays-paper/tp-money-banking/road-accidents-govt-looking-at-time-limit-for-filing-insurance-claims/article9485679.ece
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Oil, Lubricants & Alternative Fuels Oil prices dip as rising US output could offset OPEC cuts Reuters See this story in: The Hindu Business Line
Singapore: Oil dipped on Tuesday on lingering concerns over global fuel oversupply due to rising US output and doubts that OPEC and other producers would adhere to commitments to cut output in an effort to balance markets and prop up prices.
Brent crude futures, the international benchmark foroil prices, were at $55.55 per barrel at 0643 GMT, down 31 cents from their last close.
US West Texas Intermediate (WTI) crude futures were down 7 cents at $52.30 per barrel.
“The Asian market is focused on the build in US production which is nearly up to 9 million barrels per day (bpd) - up from 8.5 million bpd last June and close to 2014 production levels," said Michael McCarthy, chief market strategist at Sydney's CMC Markets.
“With US. crude clearly above $50 a barrel, we are getting a supply-side response which is pushing production higher,” he said.
McCarthy said the US figures were fuelling concerns about ongoing oversupply.
“Potential oversupply shows this is not the right time to be buying oil,” he said.
Traders said markets were receiving some support from top crude exporter Saudi Arabia, which said it would adhere strictly to its commitment to cut output under the agreement between OPEC and other producers like Russia.
“Many countries are actually going the extra mile andcutting beyond what they've committed ... I am confident about the impact ... and I am very encouraged about those first two weeks,” Saudi Energy Minister Khalid al-Falih said on Monday atan industry event in Abu Dhabi.
Under the agreement, OPEC, Russia, and other non-OPEC producers have pledged to cut oil output by nearly 1.8 million barrels per day (bpd), initially for six months, to bring supplies back in line with consumption.
Yet crude futures have fallen 5 per cent since their early January peaks, as financial oil traders remain sceptical about OPEC's and Russia's willingness to fully comply with the cuts.
Refinery outages in West Asia and Asia over the past week have also hit short-term demand for crude in the region, traders said.
Analysts also said that steps to prop up oil prices through a cut in supplies could be self-defeating.
“For each $10 per barrel increase in oil prices, oil demand will decline by 10 basis points. While consensus expects demand-growth of 1.3 million bpd in 2017 (vs 1.4 million bpd in2016), we see risks to the downside as demand growth in Chinaand India starts to moderate,” AB Bernstein said. http://www.thehindubusinessline.com/markets/commodities/oil-prices-mixed-on-saudi-commitment-to-cut-output/article9483748.ece
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News Magazines 2017 Geneva Motor Show preview Autocar India
The Geneva motor show is one of the largest and most prestigious auto shows in the motoring calendar, and often plays host to the debuts of the world’s finest supercars.
Take a look below to see what’s Geneva-bound this year Ferrari F12 M Ferrari’s replacement for the F12, the F12 M, will be the first of the supercars to be revealed at Geneva in March. So far, it’s only been seen testing under heavy disguise, so the car’s first full visual will be seen at the show. Power is expected to creep closer to the F12tdf’s 780hp.
Jaguar XF Sportbrake Jaguar confirmed its XF Sportbrake estate at the Paris motor show with an image of the car in testing prototype guise. It’ll share engines with the standard XF for international markets, meaning a 2.0-litre diesel and 3.0-litre V6 petrol and diesel engines will make up the engine range. It’s unlikely to get an XF R Sportbrake variant to rival the Mercedes-AMG E 63 S estate, though.
Kia Picanto Kia already unveiled the Picanto ahead of the Detroit motor show. The smallest Kia gets a fresh new look, more upmarket interior and updated technology and safety features. A sporty GT-Line trim also features, but a full-fat GT isn’t coming off the back of it.
Range Rover Coupé Land Rover’s first new niche since the extended-wheelbase Range Rover, the coupé – as the name suggests – will take away some of the practicality of its standard SUV sibling in exchange for some visual drama. True to form, Land Rover officials are keeping the model under close wraps until Geneva.
Lamborghini Huracán Performante Lamborghini’s lightweight Huracán variant will be at Geneva, and it’s believed to be making its appearance in both coupé and Spyder variants. The significant weight reduction should push the car’s top speed up, and its 0-100kph time down.
McLaren P14 McLaren will show the replacement for the 650S – codenamed P14 – at Geneva. It’ll get an evolutionary new look and will likely get a great deal more power. McLaren did reveal the car’s carbonfibre monocoque ahead of the show, but it’s unlikely we’ll see any more of the car officially until then.
Pagani Huayra Roadster Pagani confirmed the Huayra Roadster's place at the Geneva motor show this year with two preview images showing fragments of the car. The hardtop Huayra is powered by Pagani’s bespoke 6.0-litre twin-turbo V12, producing 740hp and 1,000Nm, and it’s very likely that the Huayra Roadster will share this engine in unaltered form.
Porsche 911 GT3 facelift It’s been spotted testing numerous times, but Geneva will be the show at which the 911 GT3 will be officially unveiled in facelifted form. The car will gain the option of a manual gearbox, but will retain the 3.8-litre engine of the current GT3, without the aid of turbocharging.
Seat Arona The Seat Arona will also be unveiled at the Geneva motor show before going on sale internationally in December. Seat says the small SUV is one of the most important models it’ll build. The Ibiza, on which the Arona is based, is slated for an international launch earlier, though.
2017 Suzuki Swift Numerous leaks lead up to the Swift’s Japanese reveal at the end of 2016, but its motor show debut comes at Geneva, where the European-spec supermini will be revealed. A hybrid powertrain is amongst the options expected to make it to Europe.
However, in India it’s expected to continue to use the same 1.2-litre petrol and 1.3-litre diesel engine as the current car, though the diesel engine might be tuned to produce more power. The next-gen Swift will likely reach our shores in mid-2017.
Techrules GT96 Chinese EV company Techrules first previewed its innovative turbine-recharging EV at last year’s Geneva show, but the production-ready version will officially be revealed in March. The power output for the concept was mooted at 1,044hp, with 0-100kph coming in 2.5sec and a 349kph top speed. An electric-only range of 150km was also claimed, as was the more impressive 1,931km of total range.
Toyota Yaris hot hatch The Yaris hot hatch hasn’t been named yet, but it’s rumoured to be named after Toyota’s Gazoo motorsport outfit. It’s been revealed already, but it’ll get the full Geneva motor show reveal treatment in March, before going on sale in international markets later this year. It’s already confirmed to have more than 213hp.
Volvo XC60 Volvo has withdrawn from all but three motor shows in the calendar, so the Geneva motor show is the most likely recipient of the new XC60 small SUV. Spy shots indicate that it is likely to draw quite heavily from its XC90 sibling, but Geneva will be the first time it will be seen in full – if Volvo doesn’t choose to reveal it beforehand.
Volkswagen Arteon Volkswagen’s replacement for the CC moves another step away from its Passat variant roots with a new name but the same coupe-like styling. There are whisperings of a shooting brake variant too.
Volkswagen T-Roc Volkswagen’s small SUV will be revealed In Geneva, and is most likely to draw inspiration from the T-Roc concept first seen at the Geneva show back in 2014. A lot has changed since then, so the car may be quite different to its concept precursor. http://www.autocarindia.com/auto-news/2017-geneva-motor-show-preview-403982.aspx/0
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All-new Lynk & Co sedan takes shape Autocar India
First spy pictures of what could be Geely-owned Lynk & Co’s second model, a sedan, have surfaced online. The model, codenamed CS 11, shares its platform with the 01 SUV, which is based on Volvo’s new Compact Modular Architecture (CMA) platform, revealed in October last year with pictures also indicative of similar styling and interiors.
While the test mule was heavily disguised, the front fascia shows design cues such as the high-set headlamps, end-to-end running rectangular grille with integrated turn signals and fog lamps. From the side, the test mule featured a standard three-box sedan shape. The rear was also heavily camouflaged, though the shape of the tail-lamps was visible.
Inside, the cabin layout is expected to be similar to the 01 SUV revealed last year. The front seats of the test mule were one-piece buckets with fixed headrests.
Under the hood, the new sedan is set to feature a range of three- and four-cylinder petrol and hybrid engines developed by Volvo.
The sedan is also expected to be the basis of an all-new small sedan from Volvo based on the new CMA platform as part of the next-gen 40-series family which is expected to debut with the all-new XC40 sometime this year. http://www.autocarindia.com/auto-news/all-new-lynk--co-sedan-takes-shape-403979.aspx
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Maruti Autocross Championship heads for Mumbai Autocar India
After Cochin, Bengaluru, Hyderabad, Chandigarh and Gurgaon, the Maruti Suzuki Indian National Autocross Championship is headed for Mumbai in its hunt for the 2016 champion. The event will be held alongside the power-packed 2017 Autocar Performance Show at the Bandra Kurla Complex, MMRDA Grounds, from January 20-22, 2017. Registrations for the event are open.
The rules of the competition are simple. Participants need to race against time around a specially designed dirt track in the vehicle of their choice – stock or modified – and prove their mettle. More than speed, this will be a true test of driving skill and car control.
The competitors will be categorised into classes based on their car’s engine size and level of modification, with a winner for each category. However, there will only be one winner overall from Mumbai – the one with the fastest time – who will head to the grand finale in March.
Speaking about the 2016 championship, Vinay Pant, assistant vice president (marketing), Maruti Suzuki India Limited, said, “As a leader in the automotive space, we believe motorsports completes our offerings to the customers. Through motorsports, we are encouraging racing in a technically competent and safe way, which also adheres to the premier global criteria”.
Following Mumbai, the championship will move to Jaipur for the penultimate leg in February. It will then head to the Buddh International Circuit in March for the grand finale. http://www.autocarindia.com/auto-news/maruti-autocross-championship-heads-for-mumbai-403985.aspx
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Ford EcoSport with AVN priced from Rs 9.89 lakh Autocar India
We had reported earlier that Ford planned to launch a mildly updated EcoSport in the coming months before launching the heavily facelifted model in the second half of the year. Dealer-level information suggests that the 2017 EcoSport is expected to get a revised equipment list as well.
The refreshed 2017 EcoSport, however, will be fitted with an eight-inch touchscreen infotainment system on the Titanium+ trim. The system will come with satellite navigation, Bluetooth and a DVD player, and will also double up as a screen for the reverse camera. The screen will replace the current SYNC MID display that sits atop the centre console. As per some dealers, only the Titanium+ EcoBoost and the diesel Titanium+ will be offered with the touchscreen. Higher models will get a new alloy wheel design as well. It will now be priced at Rs. 9.89 lakh and 10.19 lakh as against the current price of Rs 9.69 lakh and Rs 9.99 lakh respectively (all prices ex-showroom, Delhi).
While additions are expected on the updated car, the automaker is also reported to be deleting equipment that's currently on offer.
The list is as follows • Driver seat height adjust (Trend) • Reclining and split folding rear seat (Trend, Trend+) • Rear wash wiper and defogger (Trend) • Lumbar support (Titanium, Titanium+) • Driver armrest (Titanium, Titanium+) • Cooled glovebox (Titanium, Titanium+) • Daytime running lamps (Titanium+)
Ford is expected to launch the updated EcoSport soon and how these additions and deletions affect the model’s pricing is yet to be seen. http://www.autocarindia.com/auto-news/ford-ecosport-with-avn-priced-from-rs-989-lakh-403908.aspx
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Volkswagen Tiguan SUV spied testing Autocar India
The second-generation Volkswagen Tiguan has been spotted on test. First showcased at Auto Expo 2016 in Delhi, the Tiguan is the first SUV from the VW Group to be based on its flexible MQB platform that also underpins the new Passat and Skoda Octavia. The Tiguan will come to India in 2017 and is likely to be assembled at the VW Group plant in Aurangabad.
It features a sharp, sporty exterior design, and the MQB platform makes the car relatively lighter than the first-gen Tiguan by over 50kg. The SUV looks premium thanks to the dual-LED headlights which merge with the grille to form a single element. The carmaker has stated that the Tiguan is the first SUV from its stable to be equipped with these headlights.
On the inside, the Tiguan comes equipped with a host of driver assistance, infotainment and safety features which include three-zone automatic climate control, redesigned seats, a 5-inch colour touchscreen with the option of a larger eight-inch screen with smartphone integration via Apple CarPlay and Android Auto, according to trim level.
For India, the Tiguan is bound to get the option of petrol and diesel engines. Transmission duties will be handled by a 7-speed dual-clutch unit, and the SUV will be available in both front-wheel-drive and 4MOTION all-wheel-drive guises. http://www.autocarindia.com/auto-news/volkswagen-tiguan-suv-spied-testing-401306.aspx
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Lexus to introduce F Performance range in India Autocar India
With a launch set to happen in March this year, Lexus is also eyeing the launch of its high-performance F Performance brand in the country as well.
The F Performance division is similar in setup to BMW M with a line-up of high-performance models carrying a F badge in the name and less potent dressed-up models carrying the F Sport badge – think BMW M3 and 320d M Sport respectively. The division is also popular for having developed the limited-run Lexus LFA supercar.
The first model from the performance brand is expected to be an F Sport variant of the RX450h mid-sized SUV. Compared to the standard model, the RX450 F Sport features the same running gear but with enhancements such as an active stabiliser system, adaptive variable suspension and a more performance oriented Sport S+ drive model. Cosmetically too, the car gets some differences such as a mesh finish to the spindle grille and sportier looking bumpers and alloy wheels. The model will likely sit as the top of the RX range.
At a recent dealership event, the Japanese luxury carmaker showcased an RC F, a high performance version of the RC coupe available internationally, thus raising speculation that the automaker’s high performance division could also be planning to launch a full-spec performance model. Unlike the F Sport model which gets no power upgrades, the RC F undergoes comprehensive changes including a large 477hp 5.0-litre V8, whereas the standard model is only offered with a 2.0-litre four-cylinder unit or a 3.5-litre V6, sports suspension and seats, Brembo brakes, a Torsen limited-slip rear differential with torque vectoring and carbon fibre components to reduce weight.
With the car having been showcased at a dealer event it could very much be Lexus’ first high-performance model to come to India as a rival to the BMW M4. Lexus also offers a larger four-door GS F internationally, though it is unknown if Lexus has any plan to bring it to India as of now.
Lexus is currently set to enter India with the range-topping LX seven-seater SUV, the RX mid-sized SUV and the entry-level ES sedan. The LX will be available with petrol and diesel powertrains while the RX and ES will be hybrids. http://www.autocarindia.com/auto-news/lexus-to-introduce-f-performance-range-in-india-403978.aspx
Top Tata Hexa launch tomorrow Autocar India
Tata is all set to launch its new flagship, the Hexa crossover tomorrow. Bookings for the Hexa opened some time ago with the down payment set at Rs 11,000, regardless of the variant selected.
Tata will sell the Hexa in five trim levels with the price starting around Rs 12.5 lakh for the base 2WD XE trim and going up to Rs 17.5 lakh (estimated, ex-showroom) for the top-spec XT 4WD. Two engine options are on offer. The XE comes with a 2.2-litre, 150hp, 320Nm Varicor 320 motor mated to a five-speed manual gearbox, while the other trims come with a more powerful 2.2-litre, 156hp, 400Nm Varicor 400 engine coupled with either a six-speed manual or six-speed automatic transmission.
Information collected from various Tata dealers nationwide confirms that the auto-gearbox equipped trims XMA and XTA are in high demand. Though quite a few dealers are ready to deliver the car by early February, in most cities, the waiting period is slightly longer for these trims.
The manual-gearbox-equipped trims with the Varicor 400 engine are next in line as far as customer interest goes, with deliveries being promised by the end of January.
The base XE variant has also generated decent customer interest. It comes with features like a six-speaker audio system, projector headlamps and so on, along with safety features like dual airbags. The top-spec 4WD XT trim with manual gearbox is the least in demand.
The Tata Hexa is available in five shades of paint, with the Royal Blue attracting most eyeballs. http://www.autocarindia.com/auto-news/tata-hexa-launch-tomorrow-403800.aspx
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New ‘Live For More’ Renault Kwid launched at Rs 2.93 lakh Autocar India
Renault has introduced a new special edition of its hatchback, the Renault Kwid, priced from Rs 2.93 lakh (ex-showroom, Mumbai). The new Renault Kwid ‘Live For More’ edition gets added cosmetic detailing inside and out to make the hatchback car more attractive to prospective buyers.
Changes to the exterior of the Renault Kwid special edition include a new contrast-coloured roof-mounted spoiler, grey and red graphics along the bonnet, roof and doors along with red accents on the grille, wheel covers and roof rails. Changes to the cabin include a new steering wheel cover with red stitching and red inserts on the door pads. Equipment levels carry forward unchanged.
The new special edition Renault Kwid is available with both 799cc and larger 1.0-litre three-cylinder engines and with the option of the five-speed AMT gearbox available on the top RxT(O) trim.
Interestingly, the new special edition Kwid is based on the 2016 model year hatchback car with the move from Renault likely being to finish existing stocks prior to the arrival of the new model year car at dealerships.
The Kwid has become a strong seller for Renault in the country with sales last year amounting to over 96,000 units over 11 months from January 2016. The Kwid rivals the likes of the Maruti Alto 800 and the K10, Hyundai Eon and the Datsun Redigo. http://www.autocarindia.com/auto-news/new-8216live-for-more8217-renault-kwid-launched-at-rs-293-lakh-403976.aspx
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India bound Renault Kaptur: 5 things to know Autocar India
The Duster set the cash registers ringing for Renault India when it was launched in 2011, but its larger SUV, the Koleos failed to entice buyers in our market. Thus this time for its SUV above the Duster, Renault has created the Kaptur. The name sounds familiar as Renault sells one with the same name in Europe, but it’s spelt with the letter C – Captur. It even looks quite similar to the European Captur, but that’s where it all ends. While the Captur is based on the Clio’s platform, the Kaptur is a crossover made specifically keeping developing nations in mind using the Duster platform.
Renault revealed the Kaptur for international markets some time back and it’s looking quite positive. We are eagerly waiting to have a go at it when it’s launched, but you need not wait to know more about it. Here’s a list of five things that you should know about the upcoming Renault Kaptur.
Family lineage The Kaptur will be built on the versatile BO platform which also underpins the Duster. Renault has achieved high levels of localisation with this platform in India which will help keep the costs in check. There seems to be minimal tweaks to its chassis as the dimensions are similar to that of the Duster’s, which means it will have similar levels of space inside the cabin.
More power In Russia, the Kaptur will get a choice of two petrol engines – 1.6- and 2.0-litre. For India though, Renault may continue with the tried-and-tested powertrains, the 1.6-litre petrol and the ubiquitous 1.5-litre K9K motor. The diesel variant will be the mainstay of the package which could be tweaked to produce more power.
Space for seven Renault showed the Kaptur with a five-seat configuration for the international markets. But, it is likely that the Indian model will get a third row. This will give it an edge over competitors like the upcoming Hyundai Tucson and the Skoda Yeti, both of which are five-seaters.
Upmarket fight While the Kaptur will have quality materials and features to go with its premium positioning being built on the Duster platform it may show a few cheaper areas. It will try and strike a balance between cost and appeal.
Some time to go The Kaptur has already been on sale in Russia and in some South American markets. India is expected to see a market launch of this model sometime later this year. http://www.autocarindia.com/auto-news/india-bound-renault-kaptur-5-things-to-know-402138.aspx
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Takata airbag issue may cause biggest-ever car recall Autocar India
Around 10 crore (100 million) cars from at least 13 manufacturers are set to be recalled internationally after airbag supplier Takata conceded that it had hidden evidence of potentially lethal issues with its detonator system.
Last week Takata agreed to pay US$ 1 billion (Rs 6,800 crore) in penalties - made up of a US$ 25 million fine, US$ 125 million compensation for people injured or killed by the airbags and US$ 850 million to carmakers that used them.
At least 12 deaths and 180 injuries have been attributed to the faults. The potential fault was first raised in 2006, when Takata officials conceded that some of its airbag inflators expanded with too much force and sprayed metal shrapnel into cars. However, the full extent of the issue is only now coming to light.
"For more than a decade, Takata repeatedly and systematically falsified critical test data related to the safety of its products, putting profits and production schedules ahead of safety," said Andrew Weissmann, head of the US Justice Department's fraud section. Around 4.2 crore (42 million) cars are believed to be affected in the US, with the rest spread around the world. Honda has the most vehicles affected, while other brands to have used Takata airbags include Acura, Audi, BMW, Chevrolet, Chrysler, Daimler, Dodge, Ferrari, Fisker, Ford, GMC, Infiniti, Jaguar, Jeep, Land Rover, Lexus, Lincoln, Mazda, McLaren, Mercedes-Benz, Mercury,
Mitsubishi, Nissan, Pontiac, Ram, Saab, Saturn, Scion, Subaru, Tesla, Toyota and Volkswagen. Individual manufacturers will contact owners of affected vehicles to have the fault rectified free of charge.
The issue is more significant in some regions of the world than others, because humid conditions are believed to be the most significant factor in triggering the airbag deployment explosive inadvertently. In the US, government officials have urged owners of affected cars not to turn off their airbag systems, if they have the option, reasoning that unintended deployment of the airbag is rare, and that it is better that it is triggered in the event of an accident.
The 10 biggest recalls by manufacturer These are believed to be the largest recalls by manufacturer, although global recall data is inconsistently collated and recall numbers by component suppliers aren’t widely collated. However, US safety authorities have indicated the Takata recall will be the biggest triggered by a supplier in automotive history. http://www.autocarindia.com/auto-news/takata-airbag-issue-may-cause-biggest-ever-car-recall-403974.aspx
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2017 Bajaj V12 review, test ride Autocar India
Bajaj has been quick to capitalise on the success of its ‘invincible’ V15 by launching the second member of the ‘V’ family – the V12. Still a commuter, the V12 will slot in below the V15 and will serve primarily as a price warrior – a model intended to make inroads into the competition’s market share by offering superior value for money. While the V15 was priced at a premium as compared to its primary rivals, the V12 is priced substantially more competitively.
This price competitiveness has been achieved by several cost-cutting measures. The front forks are slimmer, wheels different and tyres skinnier. The part-digital instrument cluster of the V15 has given way to a fully analogue unit and aluminium bits and pieces have been replaced by steel and plastic. The biggest cost-saving, however, is the engine block. Accommodating 125cc, as compared to the V15’s 150cc, this block is a derivative of the Discover’s. However, according to Bajaj (and we agree), “it is an all-new engine for all practical purposes.” The stroke is longer than that of the Discover, compelling all kinds of changes to the engine’s innards. The longer stroke also results in the production of more torque. In fact, the V12 produces at least 1Nm more torque than any of its competitors.
Beyond these cost-cutting measures, the V12 is identical to the V15. In fact, the only thing that would really give the V12 away to the untrained eye would be the badging. Up front, you have the same free-form, butterfly-shaped headlight, followed by the same sculpted, muscular tank. The wide seat is also the same, and so is the café-racer-style rear seat cover. Bajaj will also differentiate the two ‘V’ bikes by means of their paint schemes – the V12 comes in attractive colour combinations of white-on-red and orange-on-black.
Bajaj is very direct about the fact that despite its premium appearance and big-bike-like appeal, the V12 is, in fact, a commuter; the very platform of ‘V’ series bikes has been designed with that in mind. As a commuter, ease of riding and fuel efficiency overshadow outright performance.
Let’s get fuel efficiency out of the way first. Bajaj claims that the real-life (not the idealistic ARAI figures) mileage of the V12 will hover in the range of 50-55kpl, something which is the standard for this class. However, do bear in mind that we haven’t yet got an opportunity to test this for ourselves.
In terms of ease of riding, the V12 impresses. The riding position, to begin with, is quite relaxed. You are seated upright, the handlebars are well within accessible distance and the seat is wide and well-padded. The saddle height of 780mm is also suitable for riders of most sizes. The skinny front tyre makes for easy manoeuvring in traffic, and the chassis is well-engineered enough to give you full control over the bike’s movement.
The 10.7hp 125cc block, as promised, delivers well on torque – 11Nm at 5,500rpm to be precise. This available from early on, and delivery is linear all throughout. The bike picks up speed better than we expected, and will cross into the 80-100kph bracket fairly easily. In fact, we even managed to clock 105kph on the speedo – not bad for a 125cc commuter. Engine vibrations are fairly well-contained until about 80kph, after which they manifest perceptibly in the seat and foot pegs. However, commuters won’t generally be riding at those speeds. On the whole, refinement is very good, making the V12 feel like a more premium bike than its price tag suggests.
The engine is mated to a five-speed, all-up gearbox. The addition of the fifth gear, which is uncommon in this segment, greatly helps cross the 80kph barrier most commuters are limited by and is likely to boost fuel efficiency on highway runs. The clutch and gear lever are easy to operate, though that won’t matter too much as the gearing and relatively-high torque minimise the need to change ratios.
Stopping power, due to cost-cutting, is provided by drums up front and round the back. While the rear brake bias was obvious, the front drum felt like it lacked adequate bite. However, this may very well be a function of the front drum not being fully worn in (our test bike had clocked only about 120km on the odometer when we got it).
The V12 rides on 30mm telescopic forks up front and twin gas shocks round the back. The suspension setup is reasonably pliant; it displays impressive composure on the highway, but makes for a slightly jarring ride on bad sections of the road.
The V12, as with its elder sibling, is an impressive effort from Bajaj. It matches its rivals, if not exceeds them, on almost all fronts, be it performance, ride comfort, fuel economy, price or build quality. But one place where it definitely exceeds its rivals is premium appeal. In terms of design, the V12 is a clear winner in its segment. While we still have some reservations about the butterfly headlight, the rest of the motorcycle looks and feels like it is from a class above. The materials, paint quality, finishing are all remarkable. So while the V12 merely meets the standard in terms of performance and ride, it exceeds them in terms of appeal and desirability. Which is precisely where its value lies: it adds a dash of much needed glamour (pun not intended!) to a segment that is otherwise looked down upon as utilitarian and drab. And we haven’t even discussed the Rs. 56, 283 (ex-showroom, Delhi) price tag. http://www.autocarindia.com/auto-reviews/2017-bajaj-v12-review-test-ride-403981,0.aspx
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International News General Motors to announce $1 billion in U.S. investment Reuters See this story in: The Economic Times
Washington: General Motors Co will announce as early as Tuesday long-held plans to invest about $1 billion in its U.S. factories, following recent criticism of the company by President-elect Donald Trump, a person briefed on the matter told Reuters late on Monday.
The largest U.S. automaker is making the decision for business and not political reasons, said the person, who asked not to be identified.
The investment will help GM create or retain more than 1,000 jobs, while the automaker also plans to tout other efforts to boost U.S. employment, including adding engineers, the person added.
GM General Counsel Craig Glidden told the Wall Street Journal, which reported the company's plans earlier on Monday, that any investment the company might disclose had been long planned and was not a response to Trump's criticism.
GM declined comment on the investment to Reuters.
Since the beginning of this year, GM has come under heavy criticism from Trump for building vehicles in Mexico, as have other automakers. On Jan. 3, Trump threatened to impose a "big border tax" on GM for making some of its Chevrolet Cruze compact cars in Mexico.
At a news conference last week, Trump cited recent U.S. investments by other automakers and said "General Motors will be following, and I think they will be."
Trump, who campaigned hard on bringing manufacturing jobs back to the United States, said in an interview with German newspaper Bild published on Monday that he would impose a border tax of 35 percent on German car companies' vehicles imported to the U.S. market.
Earlier this month he criticized Toyota Motor Corp's plans to move production of the Corolla to Mexico from Canada.
Auto sales have been rising since 2009 and hit a new record in 2016. Automakers have recently been touting American investments, but say the investments have not been in response to Trump.
Last week, Japan's Toyota said it would invest $10 billion in the United States over the next five years, while Fiat Chrysler Automobiles NV said it would invest $1 billion to modernize two plants in the Midwest, creating 2,000 jobs.
Ford Motor Co announced this month it would cancel a planned $1.6 billion factory in Mexico and would invest $700 million at a Michigan plant.
GM's "general plan is to build where we sell and we're focused on what we're doing in the United States," Chief Executive Mary Barra said in an interview with Reuters on the sidelines of an event in Washington on Monday. "We're a global company so we're going to continue that focus."
Barra, who told Reuters she planned to attend Trump's inauguration on Friday, said GM wants to work with him. "I do believe we have more in common than we have areas that we aren't aligned."
GM, which has more than 40 manufacturing sites in the United States, last year announced $2.9 billion in U.S. investments.
But even as GM invests in U.S. plants, it has also been making job cuts. In recent months, GM announced plans to lay off about 3,300 employees at three factories.
It said in November it would cut about 2,000 jobs when it ends the third shift at its Lordstown, Ohio and Lansing, Michigan plants in January. Last month it said it planned to cancel the second shift and cut nearly 1,300 jobs from its Detroit-Hamtramck assembly plant in March. http://auto.economictimes.indiatimes.com/news/industry/general-motors-to-announce-1-billion-in-u-s-investment/56614750 General Motors to announce $1 billion factory investment, new jobs The Times of India http://timesofindia.indiatimes.com/auto/miscellaneous/general-motors-to-announce-1-billion-factory-investment-new-jobs/articleshow/56615191.cms General Motors announces $1 billion factory investment, new jobs Daily News & Analysis http://www.dnaindia.com/money/report-general-motors-announces-1-billion-factory-investment-new-jobs-2293453
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GM's Cadillac sees double digit sales growth in China in 2016 Reuters See this story in: The Economic Times
Beijing: Cadillac, General Motors Co's luxury brand, is predicting a double digit growth rate in China sales this year, the brand's country chief Andreas Schaaf told Reuters on Tuesday.
The brand - which opened its first dedicated factory in China last year, helping boost Cadillac sales in the country by 46 percent - expects China to become its top market in less than five years, Schaaf added.
Cadillac and Ford's Lincoln are among a second wave of luxury car brands in China, the world's biggest auto market, that seek to take market share from established brands such as BMW, Daimler's Mercedes-Benz, and Volkswagen's Audi.
Schaaf said he was "optimistic" for the year ahead, but cautioned growth would be slower than 2016.
"We are expecting another double digit growth in China. Most likely not in the same range as what we have seen last year because growth of nearly 50 percent is truly a very exceptional year," he said during an interview in Beijing.
Cadillac also plans to launch more products in China ahead of other regions in the future, Schaaf said, helping it buoy its global business and reduce reliance on the U.S. market.
"China is growing the business very rapidly. This helps us in shifting the U.S.-centric view into a more international focus," Cadillac's China chief added
The Cadillac brand surpassed Lexus, which does not manufacture locally, in China sales last year to become the fifth best-selling premium marque in the country, after the German "Big Three" and No. 4 Jaguar Land Rover.
China's auto market recorded a 13.7 percent rise in sales for 2016, aided partly by a cut in taxes on small-engined vehicles. Sales growth is expected to slow this year as the incentive is phased out by 2018. http://auto.economictimes.indiatimes.com/news/industry/gms-cadillac-sees-double-digit-sales-growth-in-china-in-2016/56613831 General Motors’ Cadillac sees double digit sales growth in China this year The Indian Express http://indianexpress.com/article/business/companies/general-motors-cadillac-sees-double-digit-sales-growth-in-china-this-year-4477911/
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Hyundai Motor to boost US investment by 50% to $3.1 bn over 5 yrs Reuters See this story in: The Economic Times
Seoul: The Hyundai Motor Group said it plans to boost US investment by 50 percent to $3.1 billion over five years and may build a new US factory - the latest auto firm to announce fresh investment after threats from President-elect Donald Trump to tax imports.
Trump has threatened to slap a 35 percent tax on vehicles imported from Mexico, criticising foreign automakers from BMW to Toyota Motor Corp for building vehicles in Mexico for the US market.
Chung Jin-haeng, president of the group, which encompasses Hyundai Motor Co and Kia Motors Corp, denied that the plan was driven by pressure from Trump but said the group hopes for improved demand for cars under the new US president as he has pledged to create jobs.
"We have to be committed to the US market - a strategically important market which can make or break our global success," he told reporters in Seoul.
The South Korean group plans to spend the $3.1 billion to retool existing factories in the United States and boost research on self-driving cars, artificial intelligence and other future technologies, Chung said.
He also said the group is considering a new US factory to build high-margin, high-demand models such as a US-specific sport utility vehicle and a Genesis premium vehicle.
"We are studying the plan diligently," he said, adding that whether or not to build a new plant will depend on demand.
Hyundai has a factory in Montgomery, Alabama, while Kia runs a factory in Georgia. Kia started production at its first Mexico factory in May last year, saying it plans to boost its production capacity to 400,000 vehicles a year.
Chung said Hyundai Motor, which does not have a Mexico factory, will start production at Kia's Mexico factory this year as previously planned.
But he said he is "agonizing" over the Mexico factory, adding that the planned annual capacity of 400,000 is subject to change.
Toyota, Ford Motor Co and Fiat Chrysler Automobiles have recently announced new investment in the United States. http://auto.economictimes.indiatimes.com/news/industry/hyundai-motor-to-boost-us-investment-by-50-to-3-1-bn-over-5-yrs/56621203 Trump triumphs? Hyundai Motor to boost US investment The Times of India http://timesofindia.indiatimes.com/auto/miscellaneous/trump-triumphs-hyundai-motor-to-boost-us-investment/articleshow/56625365.cms Hyundai, Kia plan $3.1-billion US investment Business Standard http://www.business-standard.com/article/international/hyundai-kia-plan-3-1-billion-us-investment-117011800036_1.html
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Toyota Motor to start testing fuel cell vehicles in UAE Reuters See this story in: The Economic Times
Tokyo: Toyota Motor Corp on Tuesday said it would begin testing its hydrogen fuel cell vehicle (FCV) in the United Arab Emirates as the Japanese automaker explores the potential for the zero-emissions fuel technology in hot, dry conditions.
Toyota will team up with Abu Dhabi green energy firm Masdar, Abu Dhabi National Oil Co and French industrial gases company Air Liquide SA to examine prospects for hydrogen production, logistics and business feasibility.
As part of the project Toyota will conduct driving and refuelling tests using its Mirai FCV, which it launched in late 2015 as part of its goal to foster what it calls a "hydrogen society", where the zero-emission fuel would power homes and vehicles.
"As the (UAE) government continues to promote new initiatives and pursues the creation of a hydrogen-based society, the UAE is able to emerge as the world leader of next-generation clean energies," Toyota Chairman Takeshi Uchiyamada said in a statement.
Toyota has promoted fuel cell vehicles as the most viable next-generation option to petrol-electric hybrids, but a lack of hydrogen fuelling stations poses a major hurdle for mass consumption. http://auto.economictimes.indiatimes.com/news/passenger-vehicle/cars/toyota-motor-to-start-testing-fuel-cell-vehicles-in-uae/56621844
Top Volkswagen to provide over 4 lakh new energy cars in China by 2020 PTI See this story in: The Economic Times
Beijing: German auto giant Volkswagen plans to provide over four lakh new energy cars for the Chinese market by 2020 to address its environmental protection needs, a top official said on Tuesday.
The number will increase to 1.5 million by 2025, Professor Jochem Heizmann, CEO of Volkswagen Group China, was quoted as saying by state-run Xinhua news agency.
The company announced earlier that it would introduce 15 models of new energy vehicles in China in the next three or four years, to address the environmental protection needs of the Chinese market, as well as 10 models worldwide in the next decade.
New energy vehicles sales of the company are expected to reach 2 million to 3 million in 2025, 20 to 25 per cent of its total sales.
China is Volkswagen's largest market.
Volkswagen Group China and its two joint ventures delivered 3.98 million automobiles to the Chinese mainland and Hong Kong in 2016, up 12.2 per cent year on year. http://auto.economictimes.indiatimes.com/news/passenger-vehicle/cars/volkswagen-to-provide-over-4-lakh-new-energy-cars-in-china-by-2020/56622203
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BMW to introduce upgraded versions of its models globally from March 2017 The Economic Times
Munich: German luxury carmaker BMW is going to upgrade its models for March 2017, informed the company in an official statement. The upgradations will mostly be related to fuel efficiency, aerodynamics, and driver assistance systems. All the upgraded vehicles will be available in the market from March 2017.
1. BMW 520d EfficientDynamics Edition As from March 2017, the new BMW 5 Series Sedan will be combined with the lowest fuel consumption and emission levels in this vehicle segment. The new BMW 520d EfficientDynamics Edition is powered by a 2-litre, four-cylinder diesel engine featuring BMW TwinPower Turbo technology, delivering a maximum power output of 140 kW/190 hp and a peak torque of 400 Newton metres available between 1,750 and 2,500 rpm. The Sedan accelerates from 0 to 100 km/h.
The power unit of the BMW 520d EfficientDynamics Edition features, inter alia, a turbo charger mounted on anti-friction bearings, high pressure exhaust gas recirculation, a map-controlled oil pump and further developed Common Rail direct injection technology, the solenoid injectors of which ensure precise fuel dosing with a maximum pressure of 2,000 bar.
In addition to the optimised efficiency of both the engine and the standard 8-speed Steptronic transmission, enhanced aerodynamic characteristics as well as the Sedan’s greatly reduced weight versus its predecessor also contribute towards achieving the favourable fuel consumption and CO2 emission levels. Moreover, in order to optimise emission behaviour, the BMW 520d EfficientDynamics Edition is equipped with BMW BluePerformance technology, which in addition to the particulate filter, an oxidation catalyst and a NOX storage catalyst, also features an SCR catalytic converter with AdBlue injection technology reducing nitrogen oxide emissions even further.
2. On-Street Parking Information in further BMW models Starting in March 2017, drivers will be provided in a large number of BMW models not only with real-time information on the traffic situation, but will also receive assistance in finding a parking space in major urban areas. The BMW ConnectedDrive Service Real Time Traffic Information (RTTI), which is available in conjunction with the navigation system Professional, will also be complemented by the On-Street Parking Information function.
Similar to the RTTI feature, this digital service uses intelligent networking to assess the availability of free road-side parking spaces from both pre-stored and current data. The calculated probability of finding a free parking space at the destination is displayed to the driver by means of coloured markings on the navigation map depicted on the Control Display.
The function, which is being featured for the first time in the new BMW 5 Series Sedan, is now available for all current models with the exception of the BMW X1, the BMW 2 Series Active Tourer and the BMW 2 Series Gran Tourer.
3. Navigation system The latest innovations for the display and control concept, which made their debut in the new BMW 5 Series, will be available for further series as from March 2017. In conjunction with the navigation system Professional, the Control Display of the iDrive system will facilitate even more intuitive operation in the BMW 7 Series and BMW 6 Series as well as in all variants of the BMW M6.
4. BMW 7 Series with additional driver assistance systems and Remote 3D View There will be an even broader choice of driver assistance systems to ensure even greater driving pleasure, comfort and safety in 7 Series models. From March 2017, the systems will be included in the optional equipment package Driving Assistant Plus. They offer the driver effective assistance in many different situations, leading the way to automated driving.
A further addition to the range of Driving Assistant Plus functions is the ActiveAssist Collision Avoidance system. The Cross Traffic Alert function, also included in the equipment package as from March, provides visual and acoustic signals if the traffic signs identified by the stereo camera should indicate that the driver has overlooked a road with right of way.
5. New option for the BMW 3 Series and the BMW 4 Series BMW 3 Series and BMW 4 Series models will come equipped with fully digital TFT colour display featuring black panel technology for the cockpit provides driving-related information in an individually selectable design.
6. Special equipment features in BMW 6 Series From the spring of 2017, new and attractive special equipment features will also be available for the BMW 6 Series. These options, which are on offer exclusively for the BMW 6 Series Coupe, the BMW 6 Series Convertible and the BMW 6 Series Gran Coupe, underscore the sporting character of the three luxury class models. The choice of body colours will be complemented by the brand-new variant Sonic Speed Blue metallic. In conjunction with the M Sports package, new 20-inch, M bicolour light alloy wheels boasting an M-specific double spoke design will be available, including mixed tyres and emergency running characteristics as well as interior trims in a carbon fibre look.
7. Digital Charging Service for BMW i and BMW iPerformance automobiles The latest innovation in BMW i and BMW iPerformance automobiles is the Digital Charging Service for intelligent charging of the high-voltage battery.
In conjunction with the new BMW i Wallbox Connect, the Digital Charging Service can also optimise the use of electricity from a domestic photovoltaic system. In this case, the amount of locally generated solar electricity is predicted based on the system’s performance data and the current weather forecast.
8. New light alloy wheels for the BMW X5 and the BMW X6 The range of optional equipment available ex factory for the models BMW X5 and BMW X6 will also include for the first time 21-inch light alloy wheels previously only available exclusively from the Original BMW Accessory range. They are available in conjunction with the M Sports Package for all model variants with the exception of the BMW X5 sDrive25d, BMW X5 xDrive25d and the BMW X5 xDrive40e iPerformance.
9. BMW X5 M and BMW X6 M now with the navigation package ConnectedDrive as standard The range of standard equipment for the BMW X5 M and the BMW X6 M will be supplemented by the navigation package ConnectedDrive, also featuring telephony with wireless charging. It includes among other options the navigation system Professional, a smartphone holder with which inductive charging of a mobile phone is possible, the RTTI service including On-Street Parking Information, a WiFi hotspot, ConnectedDrive Services, Concierge Services and Remote Services. http://auto.economictimes.indiatimes.com/news/passenger-vehicle/cars/bmw-to-introduce-upgraded-versions-of-its-models-from-march-2017/56622580
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Kia dealers in China seek $360 mln compensation in revolt over unsold stock Reuters See this story in: The Economic Times
Beijing: A group of over 100 auto dealers in China has said it would consider refusing to sell Kia Motors Corp brand cars unless it receives 2.5 billion yuan ($364 million) in compensation for losses brought about by unsold stock.
The group made the comment to the South Korean firm's China joint venture in a letter seen by Reuters on Tuesday, in which it objected to the amount of inventory dealers are required to take on.
This is not the first time Chinese dealers have revolted over inventories. Two years ago, BMW paid $820 million to dealers demanding compensation for unsold stock, and last year, dealers of imported cars for Kia sister company Hyundai Motor Co requested around $135 million for lack of inventory.
The leader of the Hyundai dealers told Reuters on Tuesday that the matter was settled but declined to give terms.
A Hyundai-Kia spokeswoman declined to comment on either issue beyond saying the automakers were checking with relevant teams. A spokesman at Kia's joint venture partner, Dongfeng Motor Corp, did not immediately respond to a request for comment. Jiangsu Yueda Group Co Ltd, another Kia partner, could not be reached for comment.
Chen Keyun, the leader of the Kia dealers group, told Reuters on Tuesday that Dongfeng Yueda Kia (DYK) had yet to respond to the letter. Chen said the group could consider halting sales or pursuing further action if DYK did not respond.
In the letter, the group requested monthly targets set in accordance with each individual dealer's inventory and sales rather than production levels. It also said it wants inventories limited to no more than 20 percent above sales.
"The majority of DYK dealerships in recent years have recorded successive losses, long-term operating results cannot be improved, sales and after-sales markets are in disarray, high inventories have not come down, capital turnover is difficult to the point that the lines of (new) capital have broken," the group said in the letter.
Chen said one of his three Kia dealerships lost 3 million yuan last year. He said, in compensation, the group has requested 2,000 yuan ($291) per car sold in the past two years, or about 2.5 billion yuan. ($1 = 6.8620 Chinese yuan renminbi). http://auto.economictimes.indiatimes.com/news/passenger-vehicle/cars/kia-dealers-in-china-seek-360-mln-compensation-in-revolt-over-unsold-stock/56626740
Top Canadian market down following Trump's auto comments IANS See this story in: The Economic Times
Ottawa: The Canadian stock market was down on the first day of the week following US President-elect Donald Trump's claims to impose a tax on foreign-automotive companies. on Monday, the Toronto Stock Exchange's benchmark Standard and Poor's/TSX Composite moved down 17.99 points, or 0.12 per cent, to close the day at 15,479.29 points. Six of the ten sub-sectors closed the session lower, Xinhua news agency reported.
In an interview with a German daily on Monday, Trump said he would impose a 35 per cent tax on imported vehicles into the US.
As a result, the TSX Consumer Discretionary group, which consists of of producers of non-essentials goods including automobiles, saw the biggest percentage drop on the day of 0.44 per cent.
Canada's two largest automobile parts manufacturers Magna International Inc. and Linamar Corporation saw shares dip 3.13 per cent to 56.98 Canadian dollars ($43) and 3.49 perc ent to 55.65 Canadian dollars ($42), respectively.
Also affected by the news was Ontario-based Martinrea International Inc., which produces metal parts for the automotive sector. Shares of the firm slumped 6.12 per cent to 8.28 Canadian dollars ($6).
Other groups to finish lower on the day included: financials (0.30 per cent), energy (0.22 per cent), materials (0.08 per cent), telecommunications (0.01 per cent), and industrials (0.01 per cent).
Groups that did not experience losses on Monday were: utilities (0.38 per cent), health care (0.33 per cent), consumer staples (0.07 per cent), and information technology (no change).
The Canadian dollar ended eighth straight session of gains, slipping 0.33 cents to $0.7584. http://auto.economictimes.indiatimes.com/news/industry/canadian-market-down-following-trumps-auto-comments/56615836
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Czech car production rises 8% in 2016 Reuters See this story in: The Economic Times
Prague: Czech car production grew by 8 percent to a record 1.344 million vehicles last year, the country's automotive industry association Auto SAP said on Tuesday.
The car industry is a major driver for the export-reliant Czech economy and the country is home to three car plants run by Volkswagen's Skoda Auto, Hyundai Motor and a joint plant of Toyota and Peugeot. http://auto.economictimes.indiatimes.com/news/passenger-vehicle/cars/czech-car-production-rises-8-in-2016/56623161
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Takata airbag ruptured in Japan, caused minor injury: Honda Reuters See this story in: The Economic Times
Tokyo: Honda Motor Co said on Tuesday that an air bag made by Takata Corp had ruptured in one of its cars in Japan, resulting in a minor injury to the car's driver.
Honda said that the rupture occurred in the passenger-side air bag of one of its Fit compact multi-purpose vehicles late last month. The airbag inflated with excessive force, spraying shrapnel into the car and causing light burns to the driver's leg.
A Takata spokesman said that the company had been notified of the incident by Honda, and that it was working with the automaker to confirm details.
Takata last week agreed to plead guilty to criminal wrongdoing and to pay $1 billion to resolve a U.S. Justice Department investigation into ruptures of its air bag inflators linked to at least 16 deaths worldwide. http://auto.economictimes.indiatimes.com/news/industry/takata-airbag-ruptured-in-japan-caused-minor-injury-honda/56618608
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European car sales up 3.2% in December; annual sales up 6.5% Reuters See this story in: The Economic Times
Frankfurt: European car sales rose 3.2 percent in December, lifting sales to the third consecutive year of growth in Europe, according to industry data published on Tuesday, which showed Volkswagen lost market share in 2016. December registrations across the European Union and European Free Trade Area (EFTA) countries advanced to 1.193 million cars from 1.156 million a year earlier, the Brussels-based Association of European Carmakers said.
Renault overtook Peugeot to become number two in Europe for 2016 as a whole, buoyed by a run of new vehicles such as the Kadjar SUV that led it to post a 12.1 percent increase in sales to 1,522,629 cars.
The Volkswagen brand saw annual sales decrease 0.4 percent, but still remained the biggest-selling passenger-car brand in Europe with an overall market share of 11.4 percent. Renault and Opel were the next best-selling brands with market shares of 7.3 percent and 6.6 percent respectively.
Total sales were up 6.5 percent to 15,131,719 new registrations last year.
Daimler's Mercedes-Benz sales rose 13.9 percent. http://auto.economictimes.indiatimes.com/news/industry/european-car-sales-up-3-2-in-december-annual-sales-up-6-5/56621570
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Slovak car production tops 1 million vehicles in 2016 Reuters See this story in: The Economic Times
Prague: Car production in Slovakia increased slightly to 1.040 million vehicles in 2016, up from 1.039 million the year before, the country's automobile association said on Tuesday.
Slovakia, with the highest per capita car production in the world, is home to three car plants run by Volkswagen , Kia Motors and Peugeot. A fourth run by Jaguar Land Rover is due to come online next year. http://auto.economictimes.indiatimes.com/news/industry/slovak-car-production-tops-1-million-vehicles-in-2016/56622103
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Study shows Citroen C4 diesel emissions exceed limits Reuters See this story in: The Economic Times
Paris: Citroen C4 Cactus diesel model made by French car maker PSA is producing emissions that are much higher than allowed, according to a study by the Joint Research Center, a laboratory linked to the European Commission, French daily Le Parisien reported on Tuesday.
The paper, which says it saw a copy of the study, said that outdoor road tests on the C4 Cactus BlueHDi 100 in Spain and Italy show that the vehicle emits up to 585 mg of nitrogen oxide per kilometre, compared to the maximum 80 mg/km allowed under its Euro 6 emissions rules label.
"We are surprised by these results, of which we have not been informed and whose format we are not familiar with, while similar vehicles, equipped with the same engine, have been tested by French authorities and obtained results that were perfectly in line with regulations, in particular under outdoor driving conditions," a PSA spokesman said.
He was referring to emissions tests ordered by the French government last year in the wake of German carmaker Volkswagen's emissions scandal.
PSA shares were the biggest losers on the CAC40 index in early trade, down 2.13 percent while the index was down just 0.73 percent. http://auto.economictimes.indiatimes.com/news/industry/study-shows-citroen-c4-diesel-emissions-exceed-limits-le-parisien/56623420
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ePayment investment: Daimler Financial Services acquires PayCash Europe SA The Economic Times
Stuttgart: Daimler Financial Services AG announced today that it is acquiring the electronic payment services provider PayCash Europe SA. By gaining a foothold in the ePayment business, Daimler AG will be launching its own electronic payment services provider under the “Mercedes pay” brand name.
"'Mercedes pay' is a fundamental component of our mobility and digitization strategy. Daimler's new payment system underscores our ambition, as a leading provider of digital mobility services, to make the products and services we offer even more appealing," said Bodo Uebber, Member of the Board of Management of Daimler AG responsible for Finance & Controlling and Daimler Financial Services. The parties agreed not to disclose the details of the acquisition.
Klaus Entenmann, Chairman of the Board of Management of Daimler Financial Services AG stated: "Our philosophy is to provide mobility at your fingertips. ‘Mercedes pay' allows our customers to easily and securely pay for our mobility offerings and services using their smartphones. “Mercedes pay” will mainly benefit customers who, in the future, will only need to provide their payment details one time, in order to be able to use a range of Daimler’s services. This is made possible by the eWallet function, a virtual source of payment.”
“Mercedes pay” will be integrated into Daimler Mobility Services GmbH, a subsidiary of Daimler Financial Services, and incorporates several different mobility services, including the market leader in car-sharing, car2go, and the mytaxi taxi app, which operates in nine European countries.
In 2016, Daimler Financial Services AG had more than four million financed vehicles in its portfolio for the first time in the company’s history. The company plans to use the new payment system to facilitate these and other financing transactions in the future.
PayCash Europe SA is a financial institution that is regulated by the Luxembourg banking authority with a license for electronic cash. The ePayment company, which was founded in 2012, also offers solutions for cryptocurrencies, such as Bitcoin and eWallet systems, in addition to mobile payment services. http://auto.economictimes.indiatimes.com/news/industry/epayment-investment-daimler-financial-services-acquires-paycash-europe-sa/56624073
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Audi and FAW sign China electric car cooperation deal Reuters See this story in: The Economic Times
Frankfurt: Volkswagen's Audi AG said it will expand its model portfolio in China to include locally produced electric cars produced by FAW Volkswagen, handing a lifeline to China FAW Group Corp whose brands have struggled.
On Tuesday, Audi outlined a 10-year plan with FAW Group with a new company for mobility and digital services and closer cooperation in the area of financial services.
Audi and FAW also agreed to produce five additional e-tron models for China in the next five years, including purely battery-powered cars with ranges of more than 500 kilometers.
An early entrant to China, the world's largest car market, Audi remains the best-selling premium car brand although it is rapidly losing ground to newer car models from Daimler's Mercedes-Benz. http://auto.economictimes.indiatimes.com/news/industry/audi-and-faw-sign-china-electric-car-cooperation-deal/56625684
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Scania gets wheels turning for VW comeback bond Reuters See this story in: The Economic Times
London: Volkswagen subsidiary Scania found 2.75bn of demand for a 500m floater on Tuesday in what bankers called the first test of interest for unsecured VW risk since the emissions scandal.
Having been locked out of the unsecured bond market since September 2015, Volkswagen's return was eagerly awaited throughout 2016, only for hopes to be dashed after the company's negotiations with US authorities dragged on.
A US$4.3bn draft settlement with US regulators last week and the success of Scania's short two-year deal could be the turning point the market has been waiting for, however.
"We expect investors to treat this as Volkswagen exposure so it's the first real test of demand," a lead on Scania said.
"If today's deal goes well, it should pave the way for VW to issue a bond."
BNP Paribas, Danske and Deutsche Bank set the spread at 3mE+35bp, well inside the 45bp-50bp initial price thoughts.
The trade is Scania's first euro issue since a 300m deal in February 2014 - also a short two-year floater.
"It feels like VW is beginning to put the emissions woes behind it, and with so many investors being underweight I expect demand for a new bond to be strong. Personally we'd be happy to buy it and straight from the screens," an investor said.
It is widely expected that Volkswagen will forgo any formal marketing ahead of its next issue, despite many expecting a 5bn to 7bn transaction.
"I know German accounts are still feeling worried so it might not be for everyone, but it's been something the market has been expecting for a long time so they're ready," he said.
Sources thought Barclays, BNP Paribas and Societe Generale - who contributed to a jumbo loan financing - had a strong chance of being hired as bookrunners to manage an upcoming issue.
Any market return will need to be carefully timed and managed, especially given that the company's profile has changed since the scandal. A second investor said the outcome of today's transaction does not necessarily imply that a Volkswagen bond would fare equally well.
"A short-dated small-sized deal will not truly test people's interest in a Volkswagen bond. It can't possibly tell you about how the market will take down multi-billions of Volkswagen risk," he said.
Volkswagen raised an emergency 20bn one-year bridge loan in December 2015 as a stop-gap financing measure, which was extended last November until June 2017. http://auto.economictimes.indiatimes.com/news/industry/scania-gets-wheels-turning-for-vw-comeback-bond/56631909
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BMW, UK car industry say Britain needs to keep tariff-free EU trade Reuters See this story in: The Economic Times
London: Britain should retain tariff-free access to the European Union's single market, Germany's BMW said on Tuesday, while a UK car industry body called for participation in the EU's customs union to hold onto trade after Brexit.
In a major speech on Tuesday, Prime Minister Theresa May said that Britain would leave the EU's single market and cannot remain a full member of its tariff-free zone but will seek unfettered trade with the bloc.
But BMW, which produces its Mini range at its plant near Oxford, which accounts for more than 10 percent of all British-built cars, said May should press for barrier-free trading terms with the EU.
"We acknowledge the Prime Minister's announcements today and urge her to ensure the UK's negotiations with the EU result in uncomplicated, tariff-free access to the EU single market in future," a spokeswoman said.
The customs union is highly valued by the car industry as nearly 60 percent of the parts in an average British-assembled car are made abroad and some components travel to and from the continent several times in the manufacturing process.
The Society of Motor Manufacturers and Traders said that the overwhelmingly foreign-owned sector, which built more cars last year than in any other for over a decade, must retain the key elements of unfettered trade in order to keep prospering.
"We need ... a deal which includes participation in the customs union to help safeguard EU trade, trade that is tariff-free and avoids the non-tariff and regulatory barriers that would jeopardise investment," Chief Executive Mike Hawes said in an emailed statement.
Asked about the possible implications of free trade where Britain is outside the customs union, Hawes told lawmakers before May's speech that British-built cars may not comply with the criteria set down in the average free-trade deal.
"The danger is that UK-built cars may not qualify under most normal free-trade agreements," he said.
"Generally rules of origin require around 50 to 55 percent local content. Currently in the UK, the average car has about 41 percent local content. Being part of the customs union, basically European content counts so that's not an issue."
Global automakers have also warned that a return to World Trade Organisation tariffs of 10 percent on car exports and around 3 percent on engines could make their British plants uncompetitive.
Last year, Japanese carmaker Nissan asked for a pledge of compensation if its plant was hit by Brexit but went on to invest in two new models after what a source described as a government promise of extra support to counter any loss of competitiveness.
On Tuesday, May suggested the car industry may be able to retain elements of the free trade terms currently enjoyed as part of the single market under a new accord.
"That agreement may take in elements of current single market arrangements in certain areas - on the export of cars and lorries for example," she said. http://auto.economictimes.indiatimes.com/news/industry/bmw-uk-car-industry-say-britain-needs-to-keep-tariff-free-eu-trade/56632133
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Italy stands by Fiat Chrysler Automobiles, rejects Germany's emission allegations Reuters See this story in: The Economic Times
Milan: Tests conducted on Fiat Chrysler vehicles show they are compliant with regulations and contain no emissions defeat devices as alleged by Germany, Italy's transport ministry said in a statement on Monday.
Tensions have risen between Rome and Berlin over the issue, with German Transport Minister Alexander Dobrindt saying at the weekend that Fiat Chrysler vehicles breaking emissions rules should be recalled and taken off the streets.
"This is an inadmissible suggestion. You don't give orders to a sovereign nation like Italy," Italian Transport Minister Graziano Delrio said. Germany last year raised concerns over certain Fiat Chrysler models, including the Fiat 500X, Fiat Doblo and Jeep Renegade, alleging that hidden software allowed excessive emissions by their diesel engines.
The issue resurfaced last week when the U.S. Environmental Protection Agency accused Fiat Chrysler of manipulating emissions tests in its Jeep Grand Cherokee sport utility vehicles and Ram 1500 pick-up trucks.
Fiat Chrysler has denied any wrongdoing.
After Italy rejected Germany's allegations last year, Berlin asked the European Commission to mediate in the dispute.
Italy's transport ministry said on Monday it had "carried out the necessary checks and sent a detailed report to the German authorities which shows that the Fiat 500X, in contrast to what is claimed by Germany, is in compliance with regulations".
It added that the European Commission did not appear to have conducted any tests of its own that would confirm the German allegations. An EU official has told Reuters that the Commission had taken emissions measurements on one rented Fiat 500X model.
The Commission last week called on Italy to provide proof against Germany's allegations. Rome on Monday dismissed Commission accusations that it was dragging its feet in the case, saying it has always responded to requests from Brussels in a punctual manner.
The Commission could not immediately be reached for comment.
Under an emissions testing regime which the Commission is now seeking to overhaul, national watchdogs approve new cars and have the exclusive power to police manufacturers - though once approved in one country, vehicles can be sold across the bloc.
Volkswagen AG admitted in September 2015 to installing secret software in hundreds of thousands of U.S. diesel cars to cheat exhaust emissions tests. Earlier this month it said it had negotiated a $4.3 billion draft settlement with U.S. regulators and would plead guilty to criminal misconduct over the issue.
As part of a widening clampdown on health-threatening nitrogen oxide (NOx) pollution levels in the wake of the VW scandal, the Commission in December began legal action against Germany, Britain and five other EU member states for allegedly failing to police for cheating emissions tests. http://auto.economictimes.indiatimes.com/news/industry/italy-rejects-germanys-emissions-allegations-against-fiat-chrysler/56613908
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Volkswagen to provide 4 lakh new energy cars for China by 2020 PTI See this story in: Deccan Chronicle
Beijing: German auto giant Volkswagen plans to provide over four lakh new energy cars for the Chinese market by 2020 to address its environmental protection needs, a top official said today.
The number will increase to 1.5 million by 2025, Professor Jochem Heizmann, CEO of Volkswagen Group China, was quoted as saying by state-run Xinhua news agency. The company announced earlier that it would introduce 15 models of new energy vehicles in China in the next three or four years, to address the environmental protection needs of the Chinese market, as well as 10 models worldwide in the next decade.
New energy vehicles sales of the company are expected to reach 2 million to 3 million in 2025, 20 to 25 per cent of its total sales. China is Volkswagen's largest market.
Volkswagen Group China and its two joint ventures delivered 3.98 million automobiles to the Chinese mainland and Hong Kong in 2016, up 12.2 per cent year on year. http://www.deccanchronicle.com/business/autos/170117/volkswagen-to-provide-4-lakh-new-energy-cars-for-china-by-2020.html
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Economy Rupee rises 15 paise to 67.95/$ PTI See this story in: The Hindu Business Line
Mumbai: The rupee continued its impressive run against the broadly weak dollar for the second straight day, surging by a solid 15 paise to end at 67.95 amid hopes for a speedy rollout of GST.
Sustained dollar unwinding from banks and exporters in the face of a sluggish greenback overseas predominantly helped the domestic currency overcome initial volatility and bounce back. http://www.thehindubusinessline.com/markets/forex/forex-rupee-dollar-live-update/article9483818.ece Top
Indian economy projected to grow by 7.7% in FY 2017: UN report PTI See this story in: The Economic Times
United Nations: India is projected to grow by 7.7 per cent in fiscal 2017, remaining the fastest growing large developing economy, as it benefits from strong private consumption and gradual introduction of significant domestic reforms, a United Nations report said.
The United Nations World Economic Situation and Prospects (WESP) 2017 report launched today said India's economy is projected to grow by 7.7 per cent in fiscal year 2017 and 7.6 per cent in 2018, benefiting from strong private consumption.
It however cautioned that low capacity utilisation and stressed balance sheets of banks and businesses will prevent a strong investment revival in the short term.
China's growth on the other hand is projected to remain stable at 6.5 per cent for fiscal years 2017 and 2018, supported by favourable domestic demand and accommodative fiscal measures, including off-budget fiscal support through policy banks and public-private partnerships.
However the implications of China's ongoing economic rebalancing will inevitably be felt by the region in the medium and long-run through trade (including commodity prices) and financial channels, albeit to a varied extent across countries, the report added.
The report, UN's flagship publication on expected trends in the global economy, comes just a day after the International Monetary Fund cut India's growth rate for the current fiscal year to 6.6 per cent from its previous estimate of 7.6 per cent due to the "temporary negative consumption shock" of demonetisation.
The World Bank too decelerated India's GDP growth for 2016-17 fiscal to 7 per cent from its previous estimate of 7.6 per cent citing the impact of demonetisation. The UN report does not make any mention of the withdrawal of the high-denomination 500 and 1000 currency notes by the Indian government nor its impact on the country's economic growth.
The report said India has positioned itself as the most dynamic emerging economy among the largest countries and is expected to remain the fastest growing on the back of robust private consumption and significant domestic reforms gradually being implemented by the government. It estimated that in the 2016 fiscal, India grew by 7.6 per cent.
In India, "investment demand is expected to slightly pick up, helped by monetary easing, government efforts towards infrastructure investments and public-private partnerships, and the implementation of domestic reforms such as the introduction of the Goods and Services Tax (GST) Bill," the report said.
It added that the GST reform constitutes a "major change" by establishing a new uniform tax rate.
The reform should promote investment in the medium term through lower transaction and logistic costs and efficiency gains. Its effective implementation requires adequate capacity building of the tax administration.
The report added that in India, in spite of a strong emphasis on rural areas and infrastructure investments on the expenditure side, fiscal policy has largely followed a cautious approach and the budget deficit is expected to further decline gradually. http://auto.economictimes.indiatimes.com/news/industry/indian-economy-projected-to-grow-by-7-7-in-fy-2017-un-report/56632444
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Metal, oil & gas stocks pull Sensex down 52 points Agencies See this story in: The Hindu Business Line
Mumbai: The Sensex and Nifty ended marginally lower due to heavy selling in metal, oil & gas, infrastructure and PSU stocks amid weak global cues.
Domestic equities resumed on a positive note due to consensus over GST and macro-data, as well as better corporate earnings, but lower growth forecast by the International Monetary Fund weighed on the trading sentiment.
IMF has reduced India's economic growth forecast for this year by as much as one percentage point to 6.6 per cent.
The 30-share BSE index Sensex closed lower by 52.51 points or 0.19 per cent at 27,235.66 and the 50-share NSE index Nifty ended down 14.8 points or 0.18 per cent at 8,398.
Among BSE sectoral indices, FMCG index was up 1.03 per cent, followed by power 0.51 per cent, IT 0.32 per cent and realty 0.2 per cent. On the other hand, metal index fell the most by 1.52 per cent, oil & gas 1.39 per cent, infrastructure 0.38 per cent and PSU 0.33 per cent.
Top five Sensex gainers were NTPC (+3.08%), Asian Paints (+2.72%), Axis Bank (+1.98%), HUL (+1.52%) and Hero MotoCorp (+1.3%), while the major losers were Reliance (-3.31%), Coal India (-2.14%), ONGC (-1.74%), Adani Ports (-1.68%) and HDFC (-1.02%).
Reliance Industries was the major loser as concerns about spending at its telecom unit overshadowed better-than-expected third-quarter earnings
Among gainers, Tata Consultancy Services and Infosys Ltd reversed Monday's losses and were up 0.85 per cent and 0.04 per cent, respectively.
Range-bound trading The market is expected to move within a range ahead of corporate results and the government budget, analysts said, as more companies gear up to report earnings, including Axis Bank and YES Bank, on Thursday.
The government will unveil its 2017/18 budget on February 1 and investors hope for incentives to support an economy hit by cash shortages after a ban on higher-value banknotes.
“Markets are more or less flat today and will be range-bound ahead of quarterly results and the union budget wherein investors will watch out on how the allocation happens,” said Siddharth Purohit, senior research analyst with Angel Broking.
Foreign portfolio investors (FPIs) sold shares worth a net of Rs. 347.25 crore yesterday, as per provisional data released by the stock exchanges.
Asian markets Asian stocks and the pound sagged on Tuesday as investors waited for British Prime Minister Theresa May to lay out plans to exit the European Union, which traders fear will see Britain lose access to the bloc's single market.
A report by IFA Global said: "Asian stock markets are trading on a mixed note, with Hang Seng index trading higher by 96 points and Nikkei index trading lower by 113 points following lack of global cues as US markets remained closed yesterday. On Friday, US stock markets closed on a flat note. The Dow Jones Industrial Average closed lower by 5 points and Nasdaq index closed higher by 26 points. US equities closed almost flat after mixed set of economic data released on Friday. European stock markets closed on a negative note, with FTSE closed lower by 10 points and CAC lower by 40 points. European markets ended the day on a negative note ahead of UK prime minister's speech scheduled today." http://www.thehindubusinessline.com/markets/stock-markets/sensex-nifty-live-update/article9483847.ece
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Closing Last Financial Closing....
Sensex 27,235.66 (-52.51) NSE 8,398.00 (-14.80) US$ spot Rs.67.96 US$ Y.113.0000 US$ 6 months Rs. Yen Rs.60 Euro spot Rs.72.75 Gold (10gm) Rs.29,176 Silver (1kg) Rs.41,599.00
Crude Oil (WTI) Crude Oil (Brent) $56.64 (+0.78)
Scip on BSE Face Value (Rs) Last Traded Value (Rs.) Apollo Tyres 1 187.85 Asahi Ind 1 198.95 Amara Raja B 1 905.70 Ashok Leyland 1 85.95 Bajaj Auto 10 2728.90 Bharat Forge 2 934.75 Denso 1 Eicher Motor 10 22285.40 Escorts 10 366.85 Exide Ind 1 182.75 Force Motors 10 4470.10 Gabriel India 1 110.95 Hero Motocor 2 3132.65 Hind Motors 5 8.55 Hi-Tech Gear 10 321.30 Jay. Bh. Maruti 5 357.20 Jamna Auto 5 181.75 JK Tyres & Inds 10 132.9 Kinetic Motors 10 Kinetic Engg 10 KOEL 2 327.05 Kirloskar Br: 2 197.85 LML Ltd 10 13.20 L&T 2 1445.75 Lumax Ind 10 1020.65 Lumax Tech 10 460.05 M&M 5 1204.45 Maruti Suzuki 5 5669.40 Motherson SS 1 326.35 Minda Inds 2 341.15 MRF 10 53678.80 Omax Auto 10 77.30 Rico Auto 1 61.35 Sona Koyo St 1 68.70 SRF 10 1655.95 Tata Motors 2 523.70 TVS Motors 1 378.35
Scip on BSE Face Value (Rs) Last Traded Value (Rs.) Bhushan Steel 2 42.50 Hindalco 1 171.05 Hind Zinc 2 284.95 JSW Ispat S. 10 Jind Steel 1 77.40 JSW Steel 1 186.70 Jindal Saw 2 61.45 National Aluminium 5 68.85 SAIL 10 59.35 Tata Steel 10 454.25 Visa Steel 10 19.50
Scip on BSE Face Value (Rs) Last Traded Value (Rs.) Ambuja Cement 2 212.90 Binani Industries 10 75.65 Birla Corp 10 695.15 India Cement 10 134.40 Prism Cement 10 89.70 JK Cement 10 702.85 Shree Cement 10 14966.60
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