Its showtime for the Indian auto industry

The forthcoming 9th Auto Expo is all set to become the largest auto show in Asia where products from international automobile companies will dazzle with Indian competitors for eyeballs and applauds, writes Aditya Raj Das.

In another two decades from now, by 2030, India is poised to become the third largest automotive market in the world, after the United States and China and Indias automotive industry is likely to reach $145 billion. It is in this backdrop, the automobile industry is organising the 9th Auto Expo in New Delhi, the largest auto show in Asia.

The auto lovers will have a glimpse of sparkle and glory of the Power of Wheel with the eight-day event starting from January 10 in the capital city of Delhi. The once-in-two-years event with the theme of Mobility for All will be attended by the Whos Who of global as well as the Indian auto industry, displaying their machine and technology.

They will feature many firsts of the global auto industry in terms of green and future technologies, concept vehicles, new launches and focus pavilions.

Auto analysts feel that the Auto Expo 2008 organised jointly by Confederation of Indian Industry (CII), Society of Indian Automobile Manufacturers (SIAM) and Automotive Component Manufacturers Association of India (ACMA)?128;"is all poised to be one of the biggest platforms for the Asian auto markets and will be the largest in Asia in terms of space, with a floor area of over 140,000 square meters, up by around 60 per cent over the last Auto Expo held in 2006.

As CII National Trade Fair Committee Chairman Rajiv Kaul says, India has arrived in the big league of the international automobile markets and this will be evident in the 9th Auto Expo. This auto expo will witness more than 2,000 participants compared to 1,200 exhibitors in the Eighth Auto Expo in 2006 and expects over one million visitors, organisers claim.

Wide range

For the first time, this auto expo is providing focused sector pavilions such as accessories and car decor, diesel city, garage equipment, robotics and automation and electronics pavilion, says an ACMA official.

The response is so overwhelming that we have to plead with the International Trade Promotion Organisation (ITPO) to allow space within permanent state pavilions to accommodate excessive bookings.

Besides, this auto show also has 10 extra hangers to accommodate excessive bookings, a CII official said. Besides participation from 25 countries, it will also have largest ever overseas participation with country pavilions from Canada, China, France, Germany, Italy, Japan, Malaysia, Spain, Taiwan, UK and USA.

Major bike makers, three-wheeler players, auto parts manufacturers are also betting big on this event. Besides, big-ticket investment announcements from both domestic and global players, introduction of hybrid and alternative fuel technologies and battery-operated vehicles would be other attractions of the mega event.

Green concept

With the theme Mobility for All, this auto expo will also focus on advanced environmental and safety technologies, innovative designs, and new forms of fun and comfort for the automobile. Seminars covering the entire gamut of the automobile arena would also be its integral parts to create awareness for industry players in particular.

CII Deputy Director General Gurpal Singh says, Over the years, auto expo is increasingly proving to be a very effective event for facilitating the coming together of auto majors from around the world in a focused fashion, under one roof.This edition will be biggest in all ways, with global auto players eyeing India as the future market.

Significantly the auto expo has already achieved the status of one of the Top International Auto Shows by the Organisation Internationale des Constructeurs dAutomobile (OICA).

OICA will include the Delhi show in its calendar of international shows and this will also draw in more international companies and overseas business delegations as the organisation will promote the show to its members.

New models

The organisers are also on overdrive because the auto expo is likely to see launch of 30 new vehicle models, including the much-hyped Rs 1 lakh car from Tata Motors, concept car A-Star and Splash of Maruti-Suzuki, sports utility vehicle Touareg of Volkswagen and compact car Jazz from Honda among others, which will be hit the Indian roads in times to come, industry sources say.

Tata Motors has already announced that keeping with the companys tradition of unveiling its new cars at the auto expo, the company will display its much-talked about Peoples Car at the forthcoming expo.

The commercial launch of the car is expected to take place in the middle of 2008. Tata Motors will jointly participate with the Fiat India with a pavilion spread over 5,200 square meters, largest in the expo.

Said a Tata Motors official, We will display a range of new passenger vehicles, while Fiat will display passenger cars from its international range. Fiat is expected to display Grande Punto at the stall.

From its commercial vehicles business, Tata Motors display will include buses from the joint venture with Marcopolo of Brazil, newly developed multi-axle heavy trucks, pickup vehicles, applications of panel vans, and new mini-trucks.

Not to be outdone, countrys largest car maker Maruti Suzuki India has chosen the Auto Expo 2008 to unveil its latest small car concept the A-star and Splash.

Suzuki Chief O Suzuki has already announced that A-star is a car that is designed for the global market and will be produced in India only.

Not to be left behind the other major car maker Hyundai will launch its much-awaited new MUV?128;"Santa Fe?128;"at the forthcoming auto expo. Hyundai is also expected to display its car i20, which will be launched in India after the successful entry of its latest hatch-back?128;"the i10.

Volkswagen is expected to showcase its latest luxury SUV?128;"Touareg?128;"at its pavilion. It will also exhibit its flagship small car model?128;"Passat?128;"which is already on sale in India. Industry sources say Volkswagen will also exhibit its future launch in small car segment Jetta.

The utility vehicle major Mahindra & Mahindra, which made its debut in cars last year with the launch of Logan, is expected to show case a new SUV in the expo.

But one important car company that is staying away from the Auto Expo is Bangalore-based Toyota Kirloskar. The reason, according to industry sources, is that the company has no plans for a new launch in the near future, so it has nothing to showcase. A major reason why Indias auto expo is gaining importance year after year is that this biennial event is offering an excellent platform to the Indian automobile and auto-component industry to display state-of-the-art and the latest developments in the automotive industry to the global audience.

Attractive platform

In fact, the auto expo is increasingly becoming popular among the auto component manufacturers. This is so because virtually worlds major auto makers are sourcing India for wide range of auto components. Exports of auto components from India in the year 2007 is estimated at $2 billion. The success is mainly because Indian auto component manufacturers are providing high-quality products at a reasonable cost.

It is being increasingly observed that most of the trade inquiries received during Indias Auto Expo are those relating to auto component. As per CII data during the last Auto Expo 2006, there were more than 1,30,000 trade enquiries and orders worth Rs 538 crore were booked.

The other primary reason why Indias auto expo will assume greater importance in coming years is that most auto majors at the global level are looking at India as their manufacturing hub.

For example Suzuki, Hyundai and Ford are already using plants in India to export to Europe. Besides, India because of its burgeoning upwardly moving middle class with fat wallet, is emerging as one of the most sought after markets for global car makers.

Source: indiacar.net

Mahindra Axe is a little hummer for the Army

The Indian Army is all set to get its on desi Humvee! To be called the Mahindra Axe, the indigenous vehicle from Mahindra & Mahindra, has undergone the necessary tests recently.

Okay, calling the AXE a Hummer might be too much of a stretch - but it is a potent weapon for the army nevertheless.

The Mahindra Axe is being built as per Indian Army specifications. The vehicle is an IPR of the Mahindras and even the engine is being indigenously developed. Two prototypes have been developed for Army testing, a report said quoting an M&M official, and will have both open and hard-top versions, capable of mounting artillery. The Mahindra Axe has been developed by a team consisting of Indian and international designers. Some components of the Axe are being imported too.

The report also hinted that Mahindra and Mahindra would be looking at developing a softer variant for civilian purposes. The vehicle, which would very heavy, and a fuel guzzler, would be primarily suited for off-road operations. Apart from that, the vehicle looks more like an extra large ATV with roll bars and fat tyres than like a huge brick-like Hummer.

The Hummer army vehicles of the US, often called Humvee,was first built by American Motors. Aimed at deployment in defence areas, its civilian variant, the Hummer, debuted a decade later, added the report. General Motors had taken over the Hummer brand in 1998. During the Gulf War, the US Army had deployed the Humvees in large numbers as a light tactical vehicle for command and control, special purpose shelter carriers, and special purpose weapons platforms throughout all areas of the modern-day battlefield.

Mitsubishi Cedia Select LPG car launched

Mitsubishi's Cedia never exactly set fire to the charts in India. Sure it is a popular car abroad, but with a more powerful engine. The detuned Cedia has been a rare sight on Indian roads, quite unlike its older sibling the Lancer. Mitsubishi know plans to change all that with the launch of the dual fuel Cedia Select.

In milieage-conscious India, diesels and dual-fuel cars have seen reasonable success, the diesel versions often cannibalising the original petrol variants. In the recent past, Maruti offered a dual-fuel Wagon R.

Mitsubishi cars are manufactured in India by Hindustan Motors.

The company said today that the duel-fuel kits in the Cedia Select will be factory fitted, utilise the sequent-type technology for effective performance on LPG fuel and will have a 32-bit microprocessor. The Cedia Select cars would be priced at rs 8.6 lakh, ex-showroom Delhi.

BMW to launch M3 and M5 sports sedans in India

German carmaker Bayerische Motoren Werke (BMW) on Tuesday said it plans to launch its sports car M series in India by 2008. The luxury carmaker’s announcement comes in the backdrop of an enthusiastic response to its products in the country.

BMW also announced the market launch of its luxury sedan 5 series. BMW said the prices of the 5 series will be in the range of Rs 37-45 lakh ex-showroom Delhi.

The German luxury carmaker has been apparently buoyed by the response it got from the country, selling 424 units of its 3 and 7 series. This has also acted as a trigger for BMW to revise its target upwards by 20% from 1,000 to 1,200 units this calendar year. BMW India President Peter Krnoschnabl was quoted as saying that July sales is expected to exceed the 100 unit mark. BMW, which is also launching the SUV X5 later this year, says it has already bagged good orders for the 5 series. BMW said its M series cars M3 and M5 will be rolled out as imports in the country, albeit as per orders from potential buyers. The 3 series would cost between Rs 26 lakh to Rs 33 lakh, the carmaker said. BMW also sees the 3 series to be the primarily power its growth in the country.

BMW also has set ambitious targets for its 7 Series, which is a super luxury sedan. The 7 Series will be priced in the Rs 74 lakh to Rs 1.25 crore range. BMW has set a sales target of 170 units for the 7 Series. With this BMW will have a 5 product portfolio in India, including the X3 and X5 SUVs, apart from the 3,5,7 Series vehicles. BMW, which has eight dealers in the country, is trying to expand its dealer base also as it raises its targets. By 2009, BMW plans to have 12 or more dealers in India.

The Munich headquartered BMW, founded by Karl Friedrich Rapp in 1917, had revenues of 49 billion euros in 2006 globally. Meanwhile, BMW is likely to report a fall in quarterly global profit as rising production costs and the surge of euro against the dollar slashes its revenues from the US. The surge in rubber and steel costs are also a cause of worry for BMW. Last year, 24% of BMW’s revenues came from North America and only 22% from Germany, while United Kingdom contributed 11% and Asia chipped in with 13% of sales. The remaining revenues came from Europe.

Ford small car by end of 2008

The ‘small-is-beautiful-and-profitable’ mantra is catching in India. The latest to join the fray is Ford India.

The car maker is likely to unveil its new small car by the end of 2008. Codenamed B402, Ford’s small car might use its existing Ikon or Fiesta platforms for a hatchback, said industry reports. It is also likely that Ford may tweak the new car model KA which is being developed jointly with Fiat in Europe. However, company officials say that the company has no plans of getting the car that is being jointly produced by Fiat Europe and Ford Europe to India.

It is a known fact that the company has signed a memorandum of understanding with Fiat Europe to produce a new small car in Europe. Whether the company would bring the car to India is something only time would tell.

Reports quoting sources said it was not clear whether the joint platform car will be sold in markets outside Europe. The company had said earlier that the new generation of B-segment vehicles would be only for Europe. However, whether the agreement will be expanded to other markets or not will become clear when Fiat officially launches the vehicle on July 5. The new Ford KA will be officially launched in Europe in 2008.

Meanwhile, it is learnt that if Ford uses an existing model platform, the price of the hatchback could be similar to the Maruti Swift or the Hyundai Getz. If it goes for the new KA, the pricing is expected to be different. The company currently has both petrol and diesel engines that can be tweaked to enable the hatch to qualify for excise benefits, say experts.

Source: dancewithshadows

Hyundai launches CNG Santro

Hyundai Motor India today a CNG version of its popular small car Hyundai Santro. The CNG Santro is pitted against the LPG version of Maruti's Wagon R LPG. While the Maruti Wagon R LPG comes at an ex-showroom price of Rs appox 3.25 lakh in Delhi, the CNG Santro is priced at Rs 3,25,361, ex-showroom Delhi.

Hyundai said that CNG has established itself as a reliable and eco-friendly fuel. The CNG kit will be sourced from Minda Auto Gas and the fitting will be done at the dealer end. All Santro CNG cars will run on petrol too. The CNG Santro comes with a switch, which the driver can use to shift between the CNG and gasoline fuel.

Apart from an AT (automatic transmission model), version the CNG Santro also comes in XK (non A/c), XL, and XO variants. All cars carry a two-year, unlimited mileage warranty. On the CNG kit and related fitment, there is an additional warranty of one more year.

A Hyundai Motor statement said that the car will have a CNG cylinder which carry 12 kg of CNG. The estimated running cost per kilometer on the CNG Santro is pegged at Re 1 a kilometer.

Hyundai said that the Santro's CNG kit is not only safe but has an advanced Lambda control system, which meets the Euro III emission norms. Hyundai has also tied up with Korean CNG specialist company NGVI for an exclusive CNG fitment arrangement.

Said Arvind Saxena VP – Marketing and Sales Hyundai Motor India: "CNG has established itself as an eco-friendly and economical fuel and HMI will now offer this choice of fuel to its Santro customers. We feel that this will increase the attractiveness of the Santro as it will considerably bring down the running cost. Also the fuel is eco-friendly which adds to its attractiveness"

Initially, the CNG car will be available only in Delhi. Later, the company plans to roll out the CNG Santro in other cities too.

Source: dancewithshadows

Bajaj to show off car at 2008 Auto Expo

Talk of a Bajaj car has been around for a while. Now, the company has come out with a plan to showcase a concept car for the January 2008 Auto Expo. Managing Director Rajiv Bajaj has said that the company aims at bringing in a concept passenger vehicle by January 2008. And if the customers like it, Bajaj will opt for commercial production in three years. Better still, the first car from India’s trusted two wheeler maker will be priced between Rs 2 lakh and Rs 5 lakh.

The company has brushed off descriptions of the vehicle as a ‘cheap car’, saying that the new offering would be a four-wheel passenger vehicle. That has got everyone a little confused though. Okay, it is a concept vehicle, might go into production, and it will not be a cheap ? So it is a not-cheap, small but not too small car, possibly a hatch or even a competitor for the Indigo or Logan - so what's the big deal in coming out and saying it clearly? Probably, its just the reporters who got it all wrong - or maybe they all read a confusing press release.

Meanwhile, the company has also said that it was working on the commercial launch of a four-wheel goods carrier by 2009. The engine, transmission and platform that the company will build would be the basis for its passenger car. According to Bajaj, the reason why the company was opting for a goods carrier is that there is no competition on that front. Bajaj is learnt to be setting aside an amount of Rs 750 crore for a four-wheeler production plant, which will have an annual production figures of 40,000 to 50,000 vehicles.

The company will not be alone in the small car mart, as many a automaker has lined up many a model in the the 1.2 million passenger car market. According to statistics, small cars account for 60 per cent of domestic sales. While Tata Motors is set to unveil its model at the next Auto Expo, the Renault-Nissan combo is mulling over a sub-$3,000 passenger car. Adding themselves to the list are Honda, Toyota and General Motors who are busy readying their Rs 5 lakh cars.

Does the four wheel vehicles foray mean that Bajaj is moving away from its bread and butter two-wheelers? Not really. The company brass has made it clear that Bajaj knows that the two-wheeler market will continue to grow for 20-25 years and so there was no question of shifting focus from two-wheelers.

Source: dancewithshadows