"Carnation Auto"- India's first independent multi brand auto sales & service venture

Former MD of Maruti Suzuki, Mr. Jagdish Khattar today announced his next venture - Carnation Auto. With a vision of developing India's largest independent multi-brand automobile sales and service network, he also announced the company's first round of funding of over Rs.100 crore from marquee names in the industry such as PremjiInvest and IFCI Ventures.

New car sales are projected to be 3 million and the car park 19 million by 2015. To meet the needs of these customers, an incremental investment of Rs.12,000 to Rs.15,000 crores is required in the network, which would be challenging in the existing franchise model. Upto 60-70% of car owners go outside of the manufactures network post warranty. Carnation would provide an alternative to these customers as well as families owning multiple brands, fleet owners and corporates- all under one roof.

"Our Auto Solution Hubs will provide everything a car owner would need to maximize his ownership experience." Elaborating on his vision for Carnation Auto, Mr. Khattar said, "The multi-brand concept will allow us to provide automobile manufacturers, especially new entrants and those with limited market share, small car park & capacity constraints, a more efficient route-to-market through faster nation wide retail presence, scale efficiencies and servicing support."

According to Mr. Khattar, initially the company will focus on providing service, mechanical repair and body shop solutions across its facilities. The service and parts markets is valued at just under Rs.15,000 crores. Carnation's pioneering venture of setting up a chain of auto solution hubs across the country is in an advance stage of its execution plan. Carnation plans to launch its service and sales network in 100 locations across 65 cities throughout India over the next 5 years. The first few Auto Solution Hubs would be operational early next year, which will include Delhi NCR, Hyderabad and Cochin. The total investment in the project is estimated to be Rs. 1,000 Crores.



In an effort to provide complete auto care solutions to its customers under one roof, Carnation is tying up with leading value added product and service providers for tyres, batteries, car detailing, accessorizing, CNG/LPG fitment and windshield replacement among other things. Carnation will subsequently also develop multi-brand facilities to retail new and pre-owned vehicles. The company is adopting world-class technology, equipment and IT systems to implement transparency and to enhance service quality in the entire automotive sales and service processes. Carnation is in advanced discussions with some leading automobile manufacturers for strategic partnerships with an objective of meeting the service needs of their customers.

PremjiInvest, a fund sponsored by Mr. Azim Premji, has committed to invest Rs. 80 crore to acquire a significant minority stake in the company. Mr. Prakash Parthasarathy, Chief Investment Officer, PremjiInvest, said, "Carnation is addressing several changing needs in the manufacturer- to-buyer relationship through a scalable business model. Mr. Khattar is a visionary who can rewrite the auto industry landscape again - this time in the services chain. We are excited to support the accomplished management team under his leadership and look forward to working together in creating a world class organization." Mr. Prakash Parthasarathy and Mr. Syed Mustafa of PremjiInvest would join the Board of Directors of Carnation Auto.

IFCI Ventures is also investing Rs.28 Crore. " Carnation's plan to set up the country's first multi-brand car sales and service network is a unique business proposition and will fill the gap in this underserved market," said Mr. A.K.Choudhary, Managing Director of IFCI Venture Funds, " Mr. Khattar brings with him tremendous experience, and under his leadership Carnation will strive to achieve the highest standards of customer satisfaction."

Carnation Auto is creating Joint Ventures in some key states with those who have the capability of running successful automobile dealerships in their areas. This would provide Carnation Auto with not only critical local insights but also help in an accelerated roll out of its operations. Mr. Khattar announced that the company has two Joint Venture partners already on board and is in discussions with various others.

To support its service and sales model, Carnation Auto has a wholly owned subsidiary in the infrastructure space, Carnation Realty, which will focus on investing in the acquisition of key properties for the parent company. Carnation Realty will also work on developing and executing new concepts for auto solution hubs, multi-brand showrooms and auto cities. Carnation Realty is in discussions with real estate firms to jointly develop these concepts.

Carnation is planning to set up an Automotive Training Institute, to train automotive technicians, sales and support personnel for the industry. According to the Automotive Mission Plan, the automobile industry will need close to 22 million trained (skilled and semi skilled) manpower by 2016. There is a need for an organized approach to train this manpower for this leading industry. Carnation plans to work closely with government, OEM's and other industry bodies, bringing together best practices with the latest technology to create an industry ready manpower pool for the automobile industry.

Talking about the brand Mr. Khattar said that the Company is named after one of the most popular flowers. Carnation Auto wants to imbibe its qualities of being warm, friendly and inviting. The identity too is built around the essence of the flower but turned around into a graphic rendition to give a vibrant and spirited feel to the brand. The logo contains different shades, which represent different promises to their customers. The representation of a "bouquet" represents a total and comprehensive set of services they plan on providing to their customers to give them a unique ownership experience.



"Carnation Auto is an initiative by Mr. Jagdish Khattar, which is in the process of setting up a state-of-the-art network of integrated multi-brand auto sales, services and related solutions across the country-an industry consolidator attempting to bring automobile dealerships under a standardized business model. It will provide automobile manufacturers, especially those with a limited market share, or those looking for a pan-India footprint but don't have the volumes to sustain stand alone dealerships & other capacity constraints, a more efficient route-to-market through faster nation wide retail presence, scale efficiencies and servicing support. Providing them dedicated outlets within the Carnation network resulting in higher revenues through cross-selling across business lines (new cars, servicing, used cars, accessories, financial and insurance products, auto leasing). "

Biodiesel Fuels Mandatory For All Cars In India

The new biofuel policy was announced this month which makes blending of 10 percent bio-fuel with petrol mandatory from the year 2012. It will be hiked to blending of 17 percent from the year 2017. All the major auto companies have taken a note of the same and have started to design new plans for their future launches that will run in alternative fuels.

Car companies in India are either planning to launch new variants or make changes to their existing models. Tata Motors, Hyundai and Maruti Suzuki are planning to launch variant of their existing models while General Motors and Nissan are planning to bring this technology from their existing markets. This technology is applicable only on E10 and E20 engines which has left several car manufacturers wondering about the possible solution for their models. Presently, only Honda and General Motors have E10 compliant cars and General Motors is planning to introduce models with E20 engines as well. Such a move may further increase the car model prices in India.

On the other hand, Maruti is also planning to launch E10 compatible models by the end of current calendar year. “Our present lot is E5 compatible but we are confident of offering E10 to the market soon, since this requires minor changes in the engine,” said the official.

Skoda prepares to thrill with four new models

Czech automobile manufacturer Skoda Auto plans to launch four models next year. It is also setting up a financing outfit.

At present, Skoda sells four models in the country — the hatchback Fabia, and the sedans, Octavia, Laura and Superb. They are priced in the range of Rs 4.8 lakh to Rs 24 lakh.

Next year, there will be the Fabia Sports and Fabia Combi along with new versions of the Laura and Superb.

Skoda has recently launched its compact car, the Fabia, in India. It’s an upmarket hatchback priced between Rs 5 lakh and Rs 7.68 lakh.

The car is available in three engine variants — 1.2 and 1.4 litre petrol and 1.4 litre diesel.

The Fabia Sports will carry a tag of Rs 10 lakh, while the Fabia Combi is expected to be built on parent company Volkswagen’s B6 platform.

Skoda plans to sell 20,000 units in this calendar year against 13,000 last year. It has already sold 9,556 cars in the first six months.

In July, Skoda had raised the prices of all its models. The hikes were in the range of Rs 16,000 to Rs 25,000.

Finance arm

A credit crunch resulting from a tightening of lending norms by financial entities has prompted Skoda to set up the finance arm.

According to Thomas Kuehl, member of board (sales and marketing), Skoda Auto India, “Since 80 per cent of our total sales are financed, the company has decided to launch Skoda Finance in the country. It should be operational by the last quarter of this year.”

Companies such as Bajaj Auto, Tata Motors, Maruti Suzuki, Hero Honda, Mahindra and Mahindra are focusing on non-banking financial companies to help accelerate sales that have been lean in the past few months.

Hero Honda has tied up with Fullerton India, a non-banking finance company, to support purchases on the basis of loans.

Honda unveils plans for small car

Honda Siel Cars India (HSCI) has announced its plans to come up with a second small car in the country after the launch of Jazz in the middle of next year. The announcement comes despite a slowdown in the passenger car industry in India.

The second small car from Honda, to be rolled out from the company's second plant in Rajashthan, is expected to go on stream in the fourth quarter of 2009.

However, according to Bloomberg, Japan's second- largest automaker will delay opening its second car factory in India owing to a slowdown in the market growth.

The news agency, quoting Tokyo-based Honda spokesman Sakae Uruma, says that the company aims to open the Rajasthan plant by October 2010 as against the scheduled opening of 2009.

"We will be launching two small cars in India within the next three to four years," Jnaneswar Sen, vice-president-marketing, HSCI. The first of those--the premium hatchback Jazz--will be rolled out by June-July next year. It will be followed by a smaller car that will be driven by a 1.2 litre petrol engine and is currently under development, said Sen. He added that it will initially be produced at the company's plant in Greater Noida.

The Greater Noida plant is part of Honda's Rs 1,000 crore initial investment in India for setting up a new facility to manufacture small cars focusing on the domestic market. Spread over 600 acres, the facility will have an initial capacity of 60,000 units and could be expanded up to 2.4 lakh units over a period of time.

Honda Siel Cars, on Friday, inaugurated the first phase of its second plant at Tapukara, which comprises a press facility and an advanced power train unit. The facility, which is spread over 150 acres and will eventually employ 500 people, will supply body panels and engine components to HSCI's Greater Noida plant.

The company will also set up an R&D centre in India to focus on market and environmental research and development of local components and material more suited to Indian conditions.

Jaguar XKR-S

There was a flash of black, a deep snarl and it was gone. Once again the desolate landscape of Exmoor was empty, save for a few sheep returning nervously to their grazing.

While the so-called “Beast of Bodmin”, 50 miles to the west, was long ago proven to be a hoax, there are still suspicions within Exmoor’s farming community that a large carnivore prowls the moors. There are stories of savaged livestock, frequently accompanied by claims of glimpses of a big, black, cat-like animal. Sceptics insist that it’s all in the imagination.



But there is no mistaking the physical reality of what has just vanished into the moor. It is black, menacing and weighs more than 1.5 tonnes. Thankfully, it has wheels, not teeth. It is a Jaguar. To be precise, the Jaguar XKR-S. It comes only in black and there will only ever be 200 in the world. As I notch it into a higher gear, and the big cat flings itself around yet another gorse-lined bend with exhilarating agility, that seems an awful pity.

These are extraordinary times for Jaguar Cars, created as the Swallow Sidecar Company by founder Sir William Lyons back in 1922. For much of the past 30 years, Jaguar has been really rather good at biting chunks out of its own backside. Its self-inflicted wounds included a long run of poorly designed and sometimes badly built cars, leaving Ford – which bought Jaguar in 1989 for $1.4bn – with deep scratches in its balance sheet.

Change for the good arrived with new design director Ian Callum, who in 2000 began tweaking the unfortunate S-Type and conservative XJ saloon into more appealing shapes. The first model for which he was entirely responsible, the XK sports coupe out of which the XKR-S has grown, arrived in 2005. This year there is also the XF compact executive saloon, and, for once, Jaguar cannot build enough of them.

Next year comes the all-new XJ large saloon; those who have seen the prototype describe it as stunning. There is no reason, new chief executive David Smith suggests, why Jaguar should not venture into the £100,000-plus ($185,000) territory stalked by other prestige brands such as Aston Martin and Bentley. Particularly now that Jaguar’s financial worries appear to have been ended by its $2bn purchase from cash-strapped Ford by Tata, one of India’s biggest industrial groups.



The XKR-S is emblematic of the atmosphere of optimism now spreading through Jaguar. In strictly nuts-and-bolts terms the XKR-S is just a limited-edition development of the mainstream £70,000 XKR model. There are some well thought-out aerodynamic changes – front splitter, rear diffuser, bootlid spoiler and side skirts – which work well to keep the car composed at the 174mph of which it is now capable (the “basic” XKR is electronically limited to 155mph). The brakes are larger; indeed they are racing units from Alcon. The steering has been made sharper and the suspension lowered and stiffened. There are bigger, but lighter, forged aluminium wheels with, at the rear, even wider, 295mm Pirelli P Zero tyres.

There is the small matter of a cheque for £10,000 more than a “standard” XKR. The XKR-S costs just a fiver short of £80,000. That’s still £3,000 cheaper than a V8 Vantage Aston Martin, and it comes with a Vantage-matching 420hp V8 engine.

For the money, you get more than the sum of the XKR-S’s parts. And, to understand why, you have to think not Jaguar, but skunk.



The XKR-S is a classic “skunk works” project, concocted on the quiet between two of Jaguar’s most formidable and long-serving talents: dynamics guru Mike Cross and chief programme engineer Russ Varney. Under all normal circumstances, cars are a compromise: even the standard XKR has to accommodate a wide variety of buyer demands in areas such as ride comfort. Messrs Cross and Varney decided, instead, to create the car they wanted to drive themselves.

Except for the exhaust snarl – which is bad enough to frighten the fleece off an Exmoor sheep – the XKR-S remains remarkably civilised, even over the bumps and dips of narrow and challenging roads. For sure, more road noise comes through the Jag’s all-aluminium frame than on the standard car; and a pothole will cause a sharper jolt through the steering. But these are small prices to pay for a chassis which otherwise has remarkable composure. Little development money has been spent on the interior, but cockpit room, driving position and ergonomics have long been Jaguar strengths.

It is reasonable to ask, however: why bother testing something of which only 200 are being made, with the likelihood that most will have been sold by the time this magazine appears? The answer is simple: the XKR-S tells us what kind of cars we can expect from Jaguar in the future. One of Callum’s dearest wishes, for example, is to bring into the world a truly lightweight, super-agile aluminium two-seater, in the spirit of the cars which took Jaguar to so many past racing victories.

Back on Exmoor, it takes a real effort of will to nose the Jaguar down from the clusters of small villages which, on this day of scattered rain and sullen clouds, are mostly deserted. I look at a petrol gauge neglected in our progress across the moors. It suggests I will soon be trying to drive on fresh air. Swooping towards the town of Tiverton, we spot a small roadside garage and pull in. We have stopped, a sign above the doors proclaims, at “The Black Cat Garage”. And, no, I didn’t make that up.

Maruti to Bring CNG Variants of its Cars in India

Maruti Suzuki is planning to launch CNG variants of its cars in India. “Alternative fuel technology is the future. We will be looking at CNG variants of our vehicles,” said MM Singh, managing executive officer (production), Maruti Suzuki India Ltd, on the sidelines of the CII 7th Manufacturing Summit 2008.

Rising fuel costs have forced every car maker to launch alternative fuel option cars in the market. There has been a surge in demand for such model in markets like India which are extremely price sensitive. “With prices of oil and other commodities rising, the chances of them reverting to their lower prices are improbable. Small cars are the future. Here’s an opportunity for Suzuki Motor Corporation to leverage its expertise in manufacturing smaller cars economically,” said RC Bhargava, Chairman of Maruti Suzuki, addressing the shareholders at company’s 27th AGM.

Maruti is also ready to launch its next generation model – Maruti A Star in mid-November. It will launch in India subsequently followed by a launch in European market. The new A-Star is Euro V complaint and will be powered by the next gen K series engine. It will enable Suzuki to re-enter the European market with a new vigour.

Third generation model of Honda City launched

Honda Siel Cars India, leading manufacturer of premium cars in India, today launched its all-new third generation Honda City with a completely new design, new engine, spacious cabin and equipped with various active and passive safety features.



The all new Honda City - which has been designed for the Indian market - was unveiled by Takeo Fukui, president and CEO, Honda Motor Company, Japan.

The all-new City’s unique ‘Arrow Shot Form’ design gives it a powerful and imposing presence. Seen from the front, the streamlined grill and sharp headlights deliver a distinctive road presence. With the City’s shortened rear end, the aerodynamic looking rear combination lights enhance its sporty looking tail design. The new City offers 15 inch wheel base and the design contribute to making the Arrow-shot form even more impressive.

The new Honda City is longer, wider and sturdier. It measures 4420 mm in length (5 mm longer than its predecessor if license plate is excluded) and 1695 mm in width (5 mm wider). While maintaining the same ground clearance and same head clearance, the height has been lowered by 15 mm to 1480 mm, delivering a sleeker and sturdier body shape which gives the City a refined driving position. With its wheelbase extended by an additional 100 mm, efficient use of space has been made for both driver and occupants to create a spacious cabin interior. The all-new City has a practical and spacious trunk offering a one class above capacity of 506 liters.

The interiors of the car look very attractive with the advanced looking meter design and soothing colour contrasts of the new City promises its consumers with a stylish, spacious and comfortable lounge.

The City comes equipped with a 1.5L, 4 cylinder new generation i-VTEC engine that delivers class leading power of 118PS while providing good fuel economy similar to the City ZX. In line with the Honda’s policy of reducing impact on the environment the engine is E10-compliant and has Euro IV emission levels. The higher body rigidity with improved MacPherson strut in front and H Type torso beam suspension in the rear offers solid road handling and supple ride feeling.



According to the company, the 3rd generation Honda City will be the only car in its segment to be equipped with 5 speed automatic transmission with a ‘paddle shift’ option to allow the driver to enjoy a manual transmission-like driving feel.

The new Honda City also comes fully loaded with various active and passive safety features including ABS (Anti-Lock Braking System) with Brake Assist (BA), Dual SRS airbags, pre-tensioner seat belts and G-CON (G-Force Control Technology) body with a crush-proof survival zone. The front body structure of the new Honda City ensures advanced pedestrian safety features.

The all new City features an Advanced Integrated Audio System - which is the world’s first car audio exclusive to digital media. This advanced Audio system offers consumers the liberty to integrate with any of the newer technologies like iPOD, MP3player, USB Memory, cell phone with MP3 Player. The system promises a high quality sound with advanced functionalities. The audio system comes with steering mounted controls & separate remote control.

The all new Honda City has two grades 1.5E (MT) and 1.5S (MT and AT) and is available in six colours - Habenero Red Pearl, Alabaster Silver Metallic, Polished Metal Metallic, Bold Beige Metallic, Tafetta White and Crystal Black Pearl. The 1.5E MT comes with Grayish Beige interior colour while 1.5S (MT & AT) has Beige interiors.

The new Honda City, priced between Rs 7.7 lakh and Rs 8.9 lakh (ex-showroom Delhi), comes with a 2+2 year warranty and 24-hr roadside assistance as standard value for all City buyers.

Bookings for the all new City will start immediately at all Honda dealers nationwide, however deliveries will begin from November 2008, the company said.

Honda Seeks to Boost Auto Sales in India

Honda Motor Co. President Takeo Fukui unveiled a new version of the City, Honda's best-selling compact sedan in India, aiming to boost sales in this key emerging market as concern grows of a global slowdown in the auto industry.

With sales in the U.S., the world's largest market, falling to their lowest levels in years, auto makers have looked to hot markets like India and China to help pick up the slack.

But now these other auto markets are also showing signs of weakness. In India, auto sales fell in August from a year earlier, marking the second monthly fall in a row. August sales in China also fell from a year earlier, marking the first decline in auto sales there in two years.

"Even in India, they are not immune to the cyclical nature of the economy," says Tatsuo Yoshida, an analyst for UBS Securities in Tokyo. "Investors have been very nervous about near-term prospects of the Indian automobile market."

The Honda president said he thinks India's slowdown is temporary. "It's sure to bounce back in the next few months," Mr. Fukui said.

Meant to draw buyers back into dealer showrooms during the coming festival months in India, Honda's new City model is part of a wave of vehicle launches by car makers into the country's increasingly crowded auto market.

In 2007, the current City model was Honda's biggest seller, accounting for 37,000 of its total sales of 60,000 vehicles. In the first eight months of this year, sales of the current City were up 12% from a year earlier. The Japanese auto maker is expecting the new model to help lift Honda's India sales above those of last year. Honda's goal for 2008 is to sell 80,000 vehicles in India, though it may not reach that because of the slowdown.

Mr. Fukui, who describes the City as "roomy," said it is Honda's "most significant model" in the Indian market. Though it would be considered a compact, entry-level vehicle in developed markets, the City is viewed as a premium vehicle by business executives here. The new model will cost about 800,000 rupees, or close to $17,500, making it Honda's least expensive vehicle in the Indian market but still beyond the reach of most car buyers.

Although Honda dominates the motorcycle market in India, the Japanese company doesn't offer any models in India's small-auto segment, which makes up the vast majority of car sales.

The new City was also launched this month in Thailand, one of 39 countries where the model has been sold since the first-generation City was launched in 1996.

Lamborghini sees India as big market for future

Iconic Italian sports car maker Lamborghini has big expectations from India and has identified it as a “big market for the future”. In India since 2006, the company is now working on expansion plans and is confident that the rapid economic growth and new-emerging billionaires would make India one of its strong markets in the coming years.

“India is a big market for the future for Lamborghini. It is a big country and the attitude of buyers is now changing and they are becoming more open to buying ultra luxury high-style brands like ours,” says Enrico Maffeo, global director of sales and customer service for Lamborghini, told TOI.



Lamorghini, famous for its raging bull logo, sells the Gallardo and the Murcielago sports cars in India that are also available in their various variants like the lightweight Gallardo Superleggera and the convertible Gallardo Spyder, all of which retail for a hefty Rs 3 crore-plus.



Maffeo, a regular visitor to India, said high price was not much of a deterrent for their target customers who choose a Lamborghini for its exquisite design, high-profile branding and uncompromising performance. The company, which currently retails in India through its only dealership Exclusive Motors of Delhi, hopes to sell ten of its famed cars here this year. “Our business is not that much about volume. It is more of brands and desirability. Our plan is to create brand awareness, and the sales will follow,” he said.

Maffeo said as the company expands in India, Lamborghini would also increase its distribution network here. “We plan to have a new dealership in Mumbai next year and follow it up with one in Hyderabad in 2010,” he said.

But just when it looks to expand and grow in India, it also faces competition from rival like Ferrari. Alarmingly, Ferrari may get assistance from domestic heavyweight Tata Motors, the joint venture partner of Ferrari owner Fiat, when it decides to come to India. Maffeo said any new brand had to go step-by-step in any market. “And don’t forget. We are part of the Volkswagon group that already has presence in India through brands like Volkswagon, Skoda, Audi and Bentley.”

Skoda India for increased marketshare in South India

On the sidelines of inaugurating its showroom at Gudavalli in Andhra Pradesh on 20th September'08, Skoda India has said that it is aiming to enhance its marketshare in the southern part of India by opening several such showrooms. It is the third Skoda showroom in the State, after the ones in Hyderabad and Visakhapatnam. The company has indicated that the number of units sold in South India account for one-third of its overall sales and it believes the new models would help it to shore up its bottomlines.

Mahavir Auto, the sole authorised dealer of Skoda India in the State, opened a 'triple S' showroom to offer sales, service and spare parts for Skoda cars in the coastal region. The dealer has notched up more than 6,000 units of Skoda models in the state. It is widely believed that the Indian arm of the Czech-based company would be setting up a showroom at Vijayawada as there are nearly 1,000 Skoda customers in and around that city.

According to a senior representative of Skoda India, the company which commenced its operations in India in 2001 could capture a 6 per cent market share in the luxury car segment from 4 per cent currently. The latest model, Fabia, was selling well and so far 5,000 cars had been sold, he added. He also pointed out that this was the country's only super hatch car, as of now.

The Czech company, which is part of the Volkswagen Group, came to India in November, 2001 and has a manufacturing facility at Shendra near Aurangabad, Maharashtra. The company aims to launch SUVs, MUVs and a car that would be priced below their Fabia model. Skoda India will also be expanding its dealership across the country. Currently, it has 56 dealerships and by 2009, it will be increased to 75 countrywide.

Skoda Fabia is currently their cheapest offering in the Indian market. They also sell Octavia, Laura and Superb.

Kochi emerges as the potential market for Audi India

The Indian arm of the German luxury carmaker Audi AG has announced the appointment of five new dealerships at Ludhiana, Ahmedabad, Chennai, Kochi and Kolkata, thus scaling up its dealership network to 12 locations across the country. The showrooms will have separate modern Audi workshop to service all Audi models. It has been learnt from company sources that Kochi, one of the principal cities of Kerala, will emerge as the potential market for luxury car segment as a number of premium carmakers are setting up their dealerships in the city. Audi India had appointed Patel Cars as its dealer in Kochi.

According to an Audi press release, the Kochi showroom coming up at Maradu, near the NH bye-pass will have separate modern Audi workshop to service all Audi models. The release has also stated that the showroom will be designed to give customers a complete Audi experience - the whole Audi model range with different equipments and the Audi world with the international standards of Audi Corporate Identity.

In addition to the five newly appointed dealers, the Audi model range of Audi A8, Audi Q7, Audi A6, Audi A4 and Audi TT is available at present in seven dealership showrooms across the country in Delhi, Mumbai, Pune, Bangalore, Hyderabad, Chandigarh and Gurgaon.

Nissan says it has star cars for Paris show

Nissan said it will unveil its futuristic concept car Nuvu, an all-new production car Pixo and a revised version of an existing model Note as its star participants at the 2008 Paris Motor Show.

Nissan's vision for the future of urban transportation is encapsulated in Nuvu, literally a ‘new view’ of the type of car it says 'we will be driving in the middle of the next decade'.

Compact – it’s just 3 metres long – Nuvu is a concept vehicle with unique 2+1 seating. It is aimed at urban dwellers who don't want to compromise on their personal freedom or their comfort, yet who appreciate that there is a need for a dramatic change in the way we move around our cities.

Nuvu is an electric vehicle, is agile, easy to drive and even easier to park. Nissan has already announced plans to introduce an all-electric car in Japan and the US in 2010 and to mass-market it globally in 2012. Nuvu is not that car, though it does share some of the technology that will feature in the planned production vehicle.

Nuvu incorporates a witty representation of Nissan's green credentials: across its all-glass roof are a dozen or so small solar panels. Shaped like leaves on a branch, the power they generate is fed to the battery using a 'tree trunk' within the car as a conduit. Nuvu also uses natural, organic and recycled materials within the cabin.

Nuvu is compact on the outside yet roomy on the inside. Built on a unique platform, it sits on a wheelbase of 1980 mm but is 1700 mm wide and 1550 mm tall to create a large and airy cabin.

These dimensions provide all the interior room needed for the vast majority of city journeys. Nuvu has two regular seats and a third occasional chair that can be folded down when required. But, unlike some two-seater city cars currently on the market, it is a thoroughly practical proposition with an integral luggage area providing sufficient space for a typical supermarket or shopping expedition.

'Nuvu is a concept car, for sure, but it is an entirely credible vehicle,' said Francois Bancon, general manager, Exploratory and Advanced Planning Department, Product Strategy and Product Planning Division, Nissan Motor Co.

'It is light, clean and easy to drive. It is practical and a sensible size, yet it also embodies an element of fun: the future doesn’t look so bad, after all.”

Nissan said its Pixo conveys continuing the theme of compact urban motoring, with outstanding green credentials – but, this time, for the more immediate future.

The comapny said Pixo is an accessible city car which offers low emissions and consumption at an extremely accessible price.

Pixo is a five-door, four-seater with a roomy interior and generous luggage space thanks to its efficient design and packaging.

It has a lively highly efficient three cylinder 1.0-litre engine. Thanks to its brand new lightweight construction, with resulting benefits in performance, very low fuel consumption and emissions, Pixo will be among the best value eco-cars in the small city car category.

Pixo is 3565 mm long, 1470 mm tall and 1600 mm wide. It has a wheelbase of 2360 mm.

Built in collaboration with Suzuki Motor Corp. at state-of-the art facilities in Delhi, India, PIXO is a brand new four-seater competing in the fast growing A-segment.

Unlike some of its immediate rivals, however, Pixo is far from a micro car. It has five doors to ease ingress and egress to and from the rear seats but remains sufficiently compact to be agile to be ideal for city driving.

Unusually in this class, Pixo is also available with a full four-speed automatic, reinforcing its suitability as a town car that’s perfectly capable of longer journeys when needed.

Nissan said the third star car participant at the Paris Show, the Note, has undergone a wide range of changes and improvements to maintain its place as one of the most innovative, space-efficient and popular accessible compact cars.

The most obvious changes can be found to the exterior design, where the front end benefits from a completely new design of grille, bumper and headlight, lending the Note a more premium and sleek appearance.

At the rear, the signature ‘boomerang’ lights are now darker, another discreet change which adds to the Note’s premium feeling. Two new designs of alloy wheels – 15” and 16” – are available, while a new eye-catching pale green exterior color called Cider has been developed.

For the driver, a new combi-meter has been introduced, giving improved legibility and clarity and there is also a new central instrument panel, giving a cleaner appearance to the centre console.

Under the skin, improvements have been made to the Note’s suspension to improve ride comfort, while improving responsiveness, knowing that customers consider driving enjoyment a key priority.

Following revisions to its engine and gearbox ratios, September will see the introduction of a 1.5-litre dCi powered Note which produces CO2 of just 119g/km. This follows the introduction of a diesel particulate filter on the 1.5-litre diesel engine earlier this year.

Additionally, from October, customers will benefit from reduced CO2 emissions from the Note’s 1.4-litre petrol engine. Thanks to revised gear ratios, it will produce 139g/km.

The updates to the Note also herald the introduction of Nissan Connect, Nissan’s all-new combined satellite navigation, audio entertainment and communication system.

It was conceived to offer the level of convenience and user-friendliness normally found on portable navigation devices with the added convenience of full integration into the centre console.

With touch-screen technology, Nissan Connect combines a satellite navigation system (in nine languages), with an audio system capable of playing CDs (including MP3 and WMA CDs), as well as music via an auxiliary input, USB plug and Bluetooth streaming.

The system also provides Bluetooth phone connectivity for hands-free communication.

Nissan Connect will be available on Note from January 2009 and will be extended to other Nissan models during the course of 2009.

As well as these ‘stars of the show’, Nissan will also have its Crossover icon, the all-new Murano, on display and its baby brother the Qashqai+2 - the ‘family Crossover’ - which takes the Qashqai concept and offers extra interior space and convenience for those buyers who are uninspired by the traditional MPV options.

General Motors recently unveiled the production version of the much anticipated new Chevrolet Camaro that is due to go on sale in North America next year.

In Melbourne, the Australian-based designers and engineers involved in the new heritage-inspired coupe held their own reveal event at GM Holden's headquarters in Port Melbourne, giving a first glimpse of the iconic sports car that underwent much of its development and testing on Australian roads.

The new Camaro exemplifies GM's global development process with the design concept originating in the United States; engineering directed by GM's global rear-wheel-drive team in Australia; validation conducted on roads around the world; and assembly to take place in Canada.



Joining onlookers at the reveal was reigning V8 Supercar Champion and Camaro enthusiast, Garth Tander, who brought his own 1969 Camaro SS to Port Melbourne to meet the newest member of the Chevrolet family. Members of the Melbourne-based Camaro Car Club also joined the celebration by bringing their historical vehicles to the display.

With GM's global rear-wheel drive team based in Australia, much of the design and engineering work for the new Camaro was undertaken in Victoria, giving this vehicle an important place in Australia's automotive history.



The new Chevrolet Camaro combines great looks and performance; advanced technology and surprising efficiency.

Ed Peper, GM North America Vice President for Chevrolet, said the Camaro delivered all of the things that make Chevrolet such a revered, global brand.

"It competes with the world's best sports cars and does so with styling, fuel economy and value our competitors simply can't match.

"The new Chevrolet Camaro delivers a thoroughly modern, advanced package of performance, comfort and technology.

"It's a sports car for a new generation of enthusiasts that doesn't forget the heritage that helped make the original a cultural icon. That is no small feat and it took a worldwide commitment to achieve it," Peper said.



Australian, Peter Hughes, Camaro Exterior Design Manager, said they made sure there were many elements and cues that remained distinctly Camaro to make the new model instantly recognisable.

"We're incredibly proud of how faithful the production version is to the original concept. This is a 21st century sports car that acknowledges its iconic heritage, while at the same time is smoothly integrated into a very contemporary exterior," Hughes said.

Details such as frameless door windows contribute to the overall feeling of quality, substance and technical prowess.

A well-executed balance of heritage, modern design and attention to detail also characterises the Camaro's interior. A pair of deeply recessed instrument binnacles that feature round gauges in square housings gives a nod to classic Camaros.

Large, chrome-trimmed controls, low-gloss surfaces and premium fabric or acrylic appliqués convey a richness that is unprecedented in previous Camaro models – and challenge its contemporary competitors.

Advanced powertrain technologies, including engines with direct injection and Active Fuel Management, give the vehicle a balance of exhilarating performance and good fuel economy.



Gene Stefanyshyn, GM's Global Vehicle Line Executive, who led the Australian-based engineering team on this project, said they had four key objectives when creating the new Chevrolet Camaro.

"The first was to create a bold and beautifully styled vehicle – inside and out. The second was to ensure it had the ride, handling and performance dynamics of a true sports car. The third was to create a vehicle which boasts pristine quality. Finally, we wanted to back all this with outstanding value," Stefanyshyn said.

"This vehicle exhibits the depth and capability of our Design and Engineering teams here in Australia and I am incredibly proud of what they have achieved to help make this vehicle a reality."

Under the bonnet of the new Camaro is an advanced, efficient 3.6L direct-injected V6 with variable valve timing which is standard on LS and LT models. Direct injection technology helps the engine deliver more power through increased efficiency, while maintaining fuel economy and lowering hydrocarbon emissions.

The high-performance Camaro SS is equipped with a powerful 6.2L V8, with a choice of a six-speed manual or six-speed automatic transmission.

Standard, manual transmission-equipped models receive the LS3 engine, which uses high-flow cylinder heads based on the Corvette Z06's LS7 engine enabling great low-end torque and high-rpm power.



A new, L99 V8 engine is used on automatic transmission-equipped SS models. This is based on the LS3 and carries all of its high-performance design features, but also includes GM's fuel-saving Active Fuel Management feature. This enables the engine to run on only four cylinders during light-load driving conditions, such as highway cruising, to improve fuel economy.



Sales begin in North America in the first quarter of 2009.

Saab 9-X BioHybrid "Air" official photos, details released in advance of Paris

In the wake of our first glance at it earlier this week, the folks over at Saab have released the first official details and photos of their 9-X "Air" BioHybrid concept that will hit the stage at next month's Paris motor show. Labeled as a peek into the future of automotive convertible design, the 9-X "Air" utilizes an open-top canopy that creates a wraparound greenhouse bolstered by almost invisible structural pillars.



The four seater's styling draws much from the Saab's other new hybrid, the 9-X BioHybrid, as it was designed with the same sporty and environmentally friendly premise in mind. With the top open, the car is said by Saab to provide the freshest open-air motoring, while with its canopy closed it assumes the stance of a purpose-built sport coupe.



The 9-X "Air" employs an identical 1.4L Saab BioPower powertrain as its hardtop sibling, which utilizes highly efficient turbocharging to boost power and E85 bioethanol fuel efficiency. Mated to the engine is Saab's advanced hybrid electric motor of which little is currently known.



Check back with MT Online for more Saab 9-X "Air" BioHybrid information and images as the Paris show gets underway.

TOYOTA CAMRY REMAINS AMERICA'S BEST-SELLING MIDSIZE CAR

Below is the official press release from Toyota for the 2009 Toyota Camry.

The Toyota Camry remains America's best-selling midsize car, in a segment that has been steadily gaining competitors. Camry is available in four-cylinder and V6 models, and as the Camry Hybrid, equipped with Toyota's industry-leading Hybrid Synergy Drive.

For 2009 the CE grade is replaced by the Camry grade. The Camry is now available in Camry, LE, SE, and XLE grades.



Performance and Efficiency
In tune with the needs of mid-size car buyers, Camry provides excellent fuel economy. Four-cylinder manual and automatic Camry models have city/highway fuel economy ratings of 21/31 MPG, and V6 models have 19/28 MPG EPA-estimated ratings. The Camry Hybrid, which combines a four-cylinder gasoline engine with an electric drive motor, returns an EPA-estimated 33 MPG city/34 MPG highway.

The Camry's 2.4-liter four-cylinder engine, standard on Camry grade, LE, SE and XLE, puts out 158 SAE horsepower at 6,000 rpm and 161 lb.-ft. peak torque at 4,000 rpm and can be mated to a five-speed manual transmission or an electronically controlled five-speed automatic. (The PZEV-certified version offers 155 hp and 158 lb.-ft.)

The DOHC 3.5-liter V6, available in the LE, SE and XLE grades, delivers a substantial performance boost with 268 horsepower at 6,200 rpm and 248 lb.-ft. peak torque at 4,700 rpm. The chain-driven camshafts employ Dual Variable Valve Timing with intelligence (Dual VVT-i) which controls valve timing on both the intake and exhaust camshafts for optimal performance and efficiency at all engine speeds. The V6 Camry models come equipped exclusively with a six-speed automatic transmission that offers a sequential mode for manual shifting when desired. Intelligent control adapts shifting strategy in response to driver input, with very fast kick-down and noticeable response.

The Camry Hybrid model owes its outstanding efficiency to Hybrid Synergy Drive, which produces a combined 187 horsepower and varies power between the gas engine and electric motor, or combines both, as needed. The first part of Hybrid Synergy Drive consists of a 147-hp, 2.4-liter four-cylinder Atkinson-cycle engine coupled with an electronically controlled planetary-gear continuously variable transmission.

The second part combines a small, high-torque 40-hp electric motor, an ultra-small inverter with a specially designed compact battery, and a transaxle to seamlessly combine power from the electric motor and gasoline engine. Because there are situations in which the gas engine in a Toyota hybrid completely shuts off, air conditioning and power steering systems are driven electrically.

In addition, an "ECO" button limits energy consumption by the climate control system, and under certain conditions can help improve fuel economy. Special attention paid to vehicle underbody aerodynamics, including the use of wheel spats and underbelly pans, helps yield a coefficient of drag of just 0.27, which can benefit fuel economy. The 2009 Camry Hybrid is certified as an Advanced Technology Partial Zero Emissions Vehicle (AT-PZEV), just one of a handful of cars that meets this strict standard. It produces over 70 percent less smog-forming emissions than the average new car.

Handling and Ride
The 2009 Camry offers responsive handling while providing the smooth, quiet ride that sets a benchmark for the segment. Four-wheel independent suspension is via MacPherson struts in front and a dual-link strut rear configuration. Camry, LE, XLE and Hybrid models ride on standard 16-inch wheels of either steel (Camry and LE) or aluminum (XLE and Hybrid), with the sporty SE model featuring standard aluminum six-spoke, 17-inch wheels.

All Camry models are equipped with four-wheel disc brakes. Toyota designed the Camry SE model to spice up the daily commute. Chassis modifications specific to the SE include springs, shock absorbers and bushings with firmer, sportier values than those used in other grades. The Camry SE sits 0.4-inches lower than other Camry models.

Underbody stabilizing braces and a V-shaped brace between the trunk and cabin help to increase the SE's torsional rigidity. Tuning the SE chassis resulted in optimized underbody aerodynamics. Making the underbody as flat as possible helps to smooth and speed the airflow under the car, and engineers also specially tuned the balance between front and rear downforce.

Safety and Security
The Camry's body structure is designed to absorb collision-impact forces and help minimize impact deformation to the passenger cabin. High-strength steel is used for B-pillar and rocker panel reinforcements to help manage overall body deformation in the event of certain side collisions. Inside the cabin, the seat frames also are designed to help absorb side collision loads. Dual-stage advanced SRS front airbags, seat-mounted side airbags, side curtain airbags and a driver's knee airbag are standard on all Camry models. The front seats use Toyota's Whiplash Injury Lessening (WIL) seat design.



All 2009 Camry models come equipped with a standard anti-lock brake system (ABS), Electronic Brake-force Distribution (EBD) and Brake Assist (BA). The Brake Assist feature is designed to determine if the driver is attempting emergency braking. If the driver has not stepped firmly enough on the brake pedal to engage the anti-lock brake system (ABS), BA supplements the applied braking power until the driver releases pedal pressure. As an available option, Vehicle Stability Control (VSC) with traction control (TRAC) regulates engine output and brake application on individual wheels to help control loss of traction in turns. Camry Hybrid is equipped with the Vehicle Dynamics Integrated Management (VDIM) system that helps manage vehicle traction and stability through throttle control, brake application on individual wheels, and even minor steering correction if circumstances require.

Comfort and Convenience
Camry offers many storage spaces around the front-passenger area, including console side pockets. Storage options also include a large front console box equipped with an accessory power socket and auxiliary audio jack; this box is big enough to store nine CD jewel cases. Other storage areas include an accessory box behind the shift lever containing another power socket, a rear-console box with a card holder and a movable tray, and two large cupholders adjacent to the shift lever.

The four-cylinder Camry XLE model is exclusively equipped with special seat fabric designed to be gentle on the skin. The fabric is treated by the Fraichir(tm) process, in which it is coated with a naturally occurring component called Sericin that has been extracted and refined from silkworm cocoons. This substance contains a natural moisturizing component.

The Camry's standard equipment includes air conditioning with micro dust and pollen filter; power windows and door locks; color-keyed power side mirrors; cruise control; halogen headlamps with automatic on/off feature; tilt and telescopic steering wheel; vehicle immobilizer, and a six speaker 160-watt digital AM/FM/CD audio system with auxiliary audio jack. All Camry audio systems can play CDs with MP3 files. The Camry LE adds an in-key remote keyless entry and eight-way-adjustable power driver's seat.

The Camry XLE's list of standard features includes an upgraded dual-zone automatic climate control system with steering-wheel controls, plus Plasmacluster(tm) ionizer technology to help reduce airborne mold spores, microbes, fungi, odors, germs and bacteria inside the passenger cabin. Other XLE features include a premium 440-watt JBL audio system with Bluetooth(r) technology that allows hands-free calling with compatible phones; wood-style trim; power glass moonroof; reclining rear seats; fog lamps; and aluminum wheels. The V6 Camry XLE is equipped with standard leather-trimmed seats. In the XLE grade, the rear seatbacks can recline eight degrees from their standard position to enhance passenger comfort. Rear-seat passengers also get dedicated personal reading lamps on moonroof-equipped Camry models.

The Camry Hybrid offers a standard equipment level similar to the XLE grade, but adds a standard Smart Entry and Smart Start system. Push-button start allows drivers to lock, unlock, or start the car just by carrying the Smart Key.

Options
Options for select Camry grades include a power tilt/slide moonroof; heated front seats; voice-command DVD navigation system; leather-trimmed seating; rear spoiler, and the Smart Entry and Smart Start system. When the available voice-activated DVD navigation system is added to the Camry (SE, XLE, Hybrid), it is integrated with the premium JBL audio unit and includes a four-disc in-dash CD changer.



Exterior Design
A distinctive, athletic exterior design sets Camry apart in a competitive segment. Camry is built on a 109.3 inch wheelbase to provide outstanding interior room: 101.4 cubic feet of passenger space, with 38.3 inches of rear legroom. The LE grade also features a new wheel finish for 2009.

The Camry SE has a distinctive look with a standard full body kit plus 17-inch aluminum wheels, distinct black, honeycomb-style grille and smoked tint halogen headlamps. Inside, the Camry SE is distinguished by a unique sport-trimmed interior in dark charcoal or ash gray with a leather-wrapped, three-spoke steering wheel and blue-colored Optitron gauges.



Interior Design
The Camry's roomy interior shows the attention to detail that has helped this model set such high standards for sedan comfort. Controls on the two-level dash and console are easy to see and use. Large instrument panel gauges are easy to see at a glance, and the odometer and trip meters are illuminated at all times to improve visibility. A standard multi-information display provides the outside temperature, estimated range, average speed, average fuel consumption and a trip odometer.

With the 60/40 fold-down rear seats, Camry offers 15 cubic feet of luggage space (14.5 cu. ft. with the reclining rear seat in XLE or fixed rear seat in SE, and 10.6 cu. ft. in the Camry Hybrid). The trunk is equipped with a grocery hook, utility box and luggage net (on XLE) for added convenience.

The Toyota Camry has been America's best-selling car for years now and for 2009, Toyota apparently has invoked the if it ain't broke, don't fix it clause. After all, the Camry was redesigned for 2007 -- and then beat the competition to become our 2007 Car of the Year -- so its looks are still fresh and its technology is still relatively cutting-edge.



The biggest difference you'll notice on the 2009 Camry is that the CE trim level has been dropped. The entry-level Camry is now simply the Camry, with the LE as a mid-level package, the SE in sport trim, and the XLE as the premium brew. Of course, there is also the Camry Solara for those who want two doors and a drop top (the Solara coupe has been discontinued for 2009) and the Camry Hybrid for those looking to be even more eco-friendly or just to save at the pump via its 33/34-mpg city/highway mileage rating.

All Camry trim levels come with a base 2.4L four-cylinder engine that produces 158 hp and 161 lb-ft of torque and will get you 21 mpg city and 31 mpg highway when mated to either a five-speed automatic transmission or a five-speed manual transmission. Opt for the extra eco-friendly PZEV-rated engine and you'll lose 3 hp and 3 lb-ft. Jump up to the 3.5L V-6, and you'll get 268 hp and 248 lb-ft on tap, as well as a six-speed automatic with manual shifting capabilities. The extra power won't cost you too much at the pump, though, since the V-6 nets 19 mpg city and 28 mpg highway, and the six and the four run on regular unleaded. The Camry Hybrid mates the 2.4L engine in 147-hp trim to a 40-hp electric motor, for a total of 187 hp running through a continuously variable automatic transmission. On hot days, an "Eco" button will scale back the A/C output to maximize fuel mileage.

The Camry, LE, XLE, and Hybrid ride on 16-in. wheels in steel for the Camry and LE or aluminum for the XLE and Hybrid, while the SE picks up 17-in. six-spoke aluminum wheels. The SE also gets a firmer ride and sits almost a half inch lower than the other models in an effort to make it sportier. The entire Camry range comes standard with Anti-lock Brakes and Brake Assist, with Vehicle Stability Control with integrated Traction Control optional. The Hybrid gets a special Vehicle Dynamics Integrated Management system to help keep it on the road.

The options list for the 2009 Camry is rather short, but that's largely because the standard feature list is so long. Standard on all models is A/C with a pollen and dust filter, power windows, locks and mirrors, body-color mirrors, cruise control, automatic halogen headlights, a tilting/telescoping steering wheel, vehicle immobilizer, and a six-speaker, 160-watt stereo with CD player and auxiliary input jack.



The LE trim adds remote keyless entry and an eight-way power adjustable driver's seat. The range-topping XLE model ups the ante with a Plasmacluster ionizer that kills bacteria and spores in the air on its way into the cabin, dual-zone climate control with steering-wheel controls, 440-watt JBL sound system with Bluetooth, a power moonroof, foglamps, leather seats, and faux wood trim. You'll also get rear seats that recline up to 8 deg. The Hybrid model is similar in trim to the XLE, but also gets Smart Entry and Smart Start systems that allow the driver to keep the key pocketed and simply get in and drive.

Options include the aforementioned power moonroof, leather seats, and the Smart Entry and Smart Start systems on lower trim levels as well as heated front seats, rear spoiler, and voice-command DVD nav system. Combining the nav system with the JBL audio system on SE, XLE, and Hybrid models adds an in-dash four-CD changer.

In addition to plenty of space for five passengers, the Camry also can hold a good amount of gear. The base Camry has 15 cu ft of trunk space, while the SE and XLE get 14.5 cu ft. The Camry Hybrid uses some of that cargo area to house the hybrid hardware, resulting in a 10.6-cu-ft trunk. Warranty coverage is standard Toyota -- a 3-year/36,000-mile comprehensive warranty, 5-year/60,000 powertrain warranty, and 5-year/unlimited-mileage corrosion-perforation coverage.

Pricing for the Camry is competitive. The base model with a four-cylinder engine and manual trans starts at $19,145 while the V-6 automatic XLE runs $28,695. The Camry Hybrid drops in slightly below the XLE at $26,150. Reasonable pricing such as this is part of the reason why the Camry continues to reign as the king of family haulers.

The new Hyundai i20

The new Hyundai i20 is all set to be launched at the Paris Motor Show in October. The new hatchback model is currently under production at the Chennai plant of Hyundai Motors India Ltd. Official pictures of the new Hyundai i20 are yet to be released. The production version of the new model from Hyundai i-series will be launched at the Paris Motor Show in October this year.

The new Hyundai i20 shall replace the Getz model in the European markets and the company hopes that it shall become the next best seller. Hyundai is also debuting the latest i20 blue concept which would reflect the advanced low emission concepts from the company.

Hyundai plans to become the largest car manufacturer in India and occupy larger market share. It has already made India as its global manufacturing and exports hub for its small cars. It has its plant located in Chennai and uses Chennai port for all its exports. It also plans to launch new models in India to expand its product portfolio in the country.

Tata considers all-new site for Nano production, protests at Sangur continue

After recent protests at its nearly constructed plant turned violent, India's Tata Motors is now heavily considering moving its production facilities from Singur in the state of West Benegal to the region of Karnataka in the south of India. Authorities from Tata confirmed the southern state offered 1,000 acres for the reestablishment of the automaker's Nano car production plant.

Prior to Tata finishing the plant's construction, local farmers had been protesting the arrival of Tata Motors for several years. They claim the automotive giant forcefully took their farmlands without consent and demand the return of their land. Government officials, though, say they can't return it due to it being already developed for automotive production.

In order to satisfy the locals, the West Senegal authorities offered to increase their compensation by 50 percent, but its was quickly refused by the lead opposition political party, the Trinamool Congress.

"In case we were thinking of relocating the plant from Singur he (Chief Minister B.S. Yediyurappa) would give all necessary support and assistance and incentives to make it happen," Tata Motors spokeswoman Ravi Kent stated. "We are watching the situation and actively looking at alternatives."

Tata had originally planned for its first run of Nano ultra-economy cars to roll off the assembly lines in October, but give the current situation, timetables have surely been delayed. Even with costs of raw materials on the rise and this latest debacle to deal with, Tata officials maintain the Nano will keep its 100,000 rupee ($2,500) price point.

Hyundai to Bring Full I-Series Small Cars to India

Hyundai Motor India Ltd. is bringing its entire i-series range of compact cars to India in a well-orchestrated plan.

Despite a gloomy market, Hyundai is riding high on the i10, launched last year. The new model in its first seven months sold more than 65,000 units in India.

The subcompact now offers a choice of a 1.1L Epsilon or 1.2L new Kappa engine. The newer mill has more power, improved fuel economy and meets Euro-5 emissions standards with 119 g/km of carbon dioxide.

“With continuous innovation in technology and design, the engine is the best in its class,” says Hyundai India Managing Director and CEO H.S. Lheem. “With continuous innovation in technology and design, the engine is the best in its class,” says Hyundai India Managing Director and CEO H.S. Lheem.

The Hyundai i20 Getz replacement, which makes its debut at the Paris auto show in October, will be available here by December, and in two years time the i30 and i40 will arrive. Additionally, the auto maker in the next three to four years will offer an 0.8L small car now under development that will launch globally from India.

The i20 will be built alongside the i10 at Hyundai’s recently opened, second Indian facility in Sriperumbudur. Parent Hyundai Motor Co. Ltd. insists it is not looking to compete with the super low-priced Tata Nano, which will sell for $2,500.

“(The) Nano is not our focus segment. We do not have the capability or expertise to match Tata (Motors Ltd.),” Lheem says.

Hyundai India’s combined domestic sales and exports jumped 33.9% in August, to 44,710 units. That compares with declines at Maruti Suzuki Ltd., down 9.2%, and Tata, off 6.2%.

To meet the industry slowdown, Hyundai India has changed its production plans. In the year’s first-half, the auto maker built 58% of its cars for local consumption and 42% for exports.Second-half builds will see 45% earmarked for the domestic market and 55% for export.

Hyundai is India’s largest exporter of cars, shipping 23,100 units in August. Hyundai also has deferred its decision to introduce a third shift at its new plant with a 300,000-unit annual capacity in the wake of the slowing market here. The plant produces about 830 vehicles per day with two day shifts. The nightshift, if introduced, would have added 1,200 workers and taken output to 1,190 vehicles per day. Hyundai’s first plant, which also has an annual capacity of 300,000 units, employs three shifts and rolls out 1,080 vehicles per day.

Hyundai India sells 10 models, with 30 variants across all the segments.

The new Kappa mill is manufactured at Hyundai’s newly opened $250 million engine and transmission plant in Chennai that has annual capacity for 250,000 units.

Developed over a period of 48 months, the Kappa is being produced in three variations for India, Europe and other world markets.

The India version has a displacement of 1.2L and generates 80 hp. For Europe and other markets, the engine has a 2.5L displacement.

The Kappa-equipped i10 here will be available with a 4-speed automatic transmission. “Looking at the current market scenario, we are happy with Hyundai’s overall sales,” says Arvind Saxena, senior vice president. “This again reinforces our belief that a strong product portfolio will see you through the tough times.”

Karthikeyan hopes to out-pace A1 GP rivals

As swanky Ferrari-powered cars throng the A1 GP grid, Team India spearhead Narain Karthikeyan reckons his Formula One experience would stand him in good stead and a top-six finish is quite an achievable target for the outfit.

Karthikeyan believes the introduction of Ferrari engines and chassis, following A1 GP's six-year deal with the Italian giant, will reduce the gap with Formula One and would be almost akin to driving an F1 car.

"Though it's going to be an unknown territory for all the drivers, who are yet to see the new car, I know what to expect," Karthikeyan told reporters after Team India unveiled its new livery and rookie drivers Armaan Ebrahim and Parthiv Sureshwaran here on Wednesday.

"I believe my Formula One experience would help," he said. Karthikeyan sniffs his chance in the first three races after, which A1 GP would have a two-month gap.

"We have to do well in the first three races. After that, there is a two-month break and others might catch up with us by that time," said Karthikeyan, who became the first Indian F1 driver when he joined Jordan in 2005 and was Williams' test driver the next year.

"Hardly any A1 GP driver has Formula One experience and that is a huge boost for us," Team India CEO Andaleeb Sehgal said.

David Clare, CEO of A1 GP Asia Pacific, also shared the view and said, "Team India has done reasonably well in the last season and with Narain's Formula One experience, I think they would win more races this year.

After all, Narain understands the car faster than any other driver. "I expect Team India to be the most competitive Asia Pacific outfit this season," he added.