Volkswagen Caddy – the New Commercial Car from Volkswagen

“India deserves a good taxi,” said Stefan Schaller, board spokesman for VW’s commercial vehicles business.

Volkswagen is planning to launch a new car in India, the Volkswagen Caddy as a low cost taxi for urban use. The commercial arm of Volkswagen may soon launch its new model, the VW Caddy, in India via a joint venture with an Indian partner.



The new Caddy will be a viable alternative to Tata Indigo and Tata Indica currently being used by Indian taxi operators. This would mark entry of the company in the Rs 43,000 crore commercial vehicle market in India. The existing model of VW caddy does not have any windows at the back – the windows are only in the front, but this mainly due to taxation rules in Europe. The existing model of the VW Caddy in the UK may not be feasible in India and the Indian version may come with a few modifications. Volkswagen has already announced that it plans to expand its network and product portfolio in India to occupy a larger market share. It had also announced that it will enter the commercial vehicle market in India as well.

VW Caddy has a seating capacity of seven passengers and is like a delivery van and a compact van rolled into one. Volkswagen has not announced its prices or other details but the car is expected to be priced around Rs.8-9 lakh in India.

Nissan to launch supermini March in India by 2010

Thanks to the Singur imbroglio and the shifting of the plant site to Sanand in Gujarat, by the time the Nano hits the road in India, its competitors will be much closer to launcing on their versions of small cars.

One such rival is Japanese automobile company Nissan Motor, which plans to launch a supermini, March, in India. According to Nissan the March will hit Indian roads by March 2010 or just 12 months after the Nano's launch.

Speaking to the press Nissan Motor India managing director Shouhei Kimura, ''The small, next-generation car 'March' will be launched in India by 2010 in the 'A' segment category. The car would be manufactured at the company's plant situated at Oragadam in Tamil Nadu, though initially the car would be rolled out from the company's Thailand facility followed by India.

He said the development of an 'A' platform is one of various initiatives taken as part of Nissan's new five year business plan the GT 2012.

Kimura said, ''We would have a total of nine Nissan models by the year 2012 in the Indian market and this car would be one of the new models."

The compny says the March would have a local content of 80 per cent. Kimura said India is one of the five leading competitive countries for manufacturing and exporting the car from Nissan's global manufacturing network.

Last week the company signed a memorandum of understanding with the Ennore Port in Tamil Nadu from where the company would export cars. (See: Nissan to be first automaker to export from Ennore Port)

Kimura said that by 2011 Nissan would be exporting around 110,000 units, which would include this new model. Primarily the exports would cater to European markets from the second half of 2010.

Nissan also proposes to widen its dealership network in order to sell higher numbers in the country. ''We would increase our dealership network from the present 5 to 55 by 2012," Kimura said.

Kimura declined to comment on the timing of rolling out of the car from the other three countries. He also did not announce the number of cars to be rolled out saying it is too early to say.




The Nissan 'March'

The Nissan March supermini is being produced by Nissan since 1982. Since 1992 the car has also been made in Europe, the US and the UK. Outside Asia mainly in Europe and US it is known as the Nissan Micra. The last time the company gave the March a facelift was in late 2007. The next model is expected to be launched worldwide in 2009.

Starting with the K10 model in 1982 successive March models have been code named K11, K12 and so on.

The March / Micra K10 first went on sale the UK in 1983, and met with instant success. In 1990 the March was the eleventh most popular new car in the UK with having sold 50,000 units. It was a popular choice due to its ease of driving, solid build and durable mechanical components.

The second incarnation of the March / Micra was launched in 1992, production baing in Britain and at its Washington plant rather than in Japan. Like its predecessor, it remained a very popular car thanks to its fuel economy. However, it was available with a limited range of engines: 1.0 and 1.3 petrol units.

The car received a facelift in 2000 which saw the 1.3l engine being replaced with a 1.4 unit. This upgrade, after a previous makeover in 1998, enhanced the car's appeal and it was still fairly popular on the launch of its successor in December 2002.



The third generation model of the March / Micra was made at the Sunderland in the UK. It had a wider range of engines, including Renault-sourced 1.2 petrol and 1.5 direct-injection diesel powerplants, and offered an improved driving experience. This stylish, all-new Micra helped Nissan bolster its market share in the supermini space. The March has been among the best-selling 10 cars in Britain among private buyers for virtually all of its production life.

The March / Micra is known for its reliability, excellent build quality, and user friendliness. The K12 model that came out in 1990s received consistently good overall reviews, main criticisms being its lack of headroom and luggage space in the rear. Another criticism that came its way in the UK was from insurance company that rated it as a dangerous car in case of crash in 1988-1995.

However, its safety specification has improved with successive models. The K12 Micra came on top of its class in What Car? magazine's Security Supertest in 2003, passing both entry and driveaway tests and achieving a maximum score for its locking system and immobiliser.

In an independent test, the Micra was found to be more secure that certain BMW and Mercedes models.

In British magazine's What Car?' Reliability Supertest in 2007, Nissan ranked 6th out of 26 manufacturers overall, with the K11 Micra (1998-2002) being its most reliable model.

The next generation Nissan March (W02A) will be unveiled in Feburary 2009. Globally it will be based on a revamped B-platform with a new 1.2-1.3l engine.

It will be built in Japan, UK, Thailand and in Chennai, India in partnership with Nissan shareholder Renault. The company's US plant in Washington will manufacture an entirely new model that will compete in the same market segment as the March/Micra.

Ultra-luxury carmakers bullish on India

Even though ultra-luxury carmakers like Bentley, Rolls Royce et al are bearish about the American and other developed markets, their sentiments are understood to be quite bullish towards emerging markets like India. Despite the Indian auto industry expected to grow by 7 per cent only in the current fiscal year, sales of super luxury cars is expected to grow by 20 per cent over the next few years. It is widely believed that the burgeoning nouveau riches have been the main factors responsible for brisk sales of such models.

A super luxury car is retailed above Rs. 1.5 crore, including the import duty on CBUs. Since such cars are hand-crafted and not assembled by machines, it takes at least six months to deliver to any customer after the order is placed.



Bentley Motors Limited, an English manufacturer of ultra-luxury automobiles, has launched the Bentley Continental Flying Spur Speed (a high-speed variant of its existing model, Continental Flying Spur), on 10th October'08, at New Delhi in India. The car is touted to be the world's fastest four-door car. With a product profile consisting of the Bentley Arnage, the Continental GT and now the Flying Spur Speed, Bentley Motors has introduced only top-end saloons in India so far. Priced at Rs. 2.5 crore (ex-showroom Delhi), the car would be imported as a Completely Built Units (CBU). It would be available through Delhi-based Exclusive Motors Private Ltd. The company plans to operate through the exclusive dealership model in India as it operates globally the same way. Bentley is hoping to sell around 10 units of the Flying Spur family in the Indian market. Moreover, this year Bentley achieved its annual target of selling 25 cars in just eight months. Similar has been the situation with Rolls Royce. Bentley grew by 20 per cent last year and expect to clock similar growth in the country this year. Since commencing its operations in India 2003, it has sold over 100 Bentleys in India and some of its customers own between 2-3 Bentleys.

According to a senior representative of Bentley Motors (Middle East, Africa and India), the company has long term plans for the Indian market and will stay focused on our high-end saloon. He added that the company experienced a huge growth in the Indian market over the past year. He also stated that India is a saloon market and the company will continue focus on this segment. He indicated that in order widen its product portfolio in the country; all its future models will be simultaneously launched in India along with the global market. He added that the Indian automaker is allotted quota of 25 cars a year and by August'08, its order book has been full.



Rolls Royce Motor Cars, the manufacturers of super-luxury Phantom, has said that it is banking heavily on the Indian market for pushing up its volumes. On the sidelines of launching its new showroom in Delhi, the company has indicated that it is aiming to notch up 70 cars in the country by 2013, citing the country to be to emerge as the single-biggest market in the Asia-Pacific region in the next five years where it is targeting the top end of the personalised car market. It has also been learnt that he BMW subsidiary is rolling out a slew of new models at its facility in Goodwood, England, and plans launch it in India in the next few years. Moreover, its RR4, a smaller luxury saloon than Phantom, will hit the Indian roads by 2010. Besides, a Phantom coupe with different powertrain option is also on the cards. Rolls-Royce's new car RR4, a smaller ultra-luxury saloon than its current Phantom model, will be launched in India in the next two years.

According to a senior representative of Rolls-Royce Motor Cars, the new family will not compete with Phantom, but it will be the second most expensive in the world. He stated that the company has discerned a huge chunk of ultra-high net worth individuals in India, which make the market very impressive for it. He also added that it is scaling up its production capacity in England from 1,000 units to 3,000 units. A Rolls Royce dealer in Mumbai has claimed that it has already crossed its target of 8-10 units by June'08. The dealer is tipped to be receiving orders for another 10 units by the end of this year.

The number of high networth individuals earning over a million dollar in India is estimated at 50,000. Moreover, the market for super luxury cars in India is ballparked between 20-30 cars annually.

Mahindra launches micro-hybrid technology equipped cars

Indian auto major Mahindra and Mahindra Tuesday unveiled new micro-hybrid equipped variants of its Bolero and Scorpio line-up.Micro-hybrid is a stop/start technology, which enables the car’s engine automatically switch off when the vehicle comes to a complete halt in the neutral mode. The engine restarts when the driver steps on the clutch to shift the gear.

The technology is aimed towards fuel savings at stoppages at intersections and traffic jams.

Mahindra is currently offering the technology in Scorpio’s Bharat Stage 2 compliant M2DI variant and Bolero’s SLX version.



The price difference between vehicles equipped with micro-hybrid technology and the regular vehicles is between $85 and $89.

The system is based on the principle of not burning fuel when it is not required. It detects moments, during the drive, when the vehicle is idle and stops the engine. This conserves fuel, and also leads to low emissions.

Mahindra, which has dubbed the technology as FuelSmart, developed it in collaboration with German automotive component maker Bosch.

“This is a technological innovation, which we have developed with support from Bosch. This will give an average fuel saving of about five percent from the normal vehicles,” Mahindra president (auto motive sector) Pawan Goenka said.



The company is also considering to use the technology in its yet-to-be launched Ingenio sports utility vehicle, he said.

Goenka did not give a specific figure on the sales target for vehicles equipped with the technology.

He said the technology will initially be offered in the domestic market, adding: “We may look at similar markets like Southeast Asia and Nepal in future but our present focus will be on the domestic market.”

More 1 Lakh Cars Coming to Compete with Nano!

Tata Motors recently shifted its Nano project to Gujarat from Singur in West Bengal. It seems troubles for their much awaited car are not over as yet. The new electric car, Oreva E, to be launched seems to pose tough competition to world’s most awaited car, Tata Nano. The Gujarat based Ajanta Group recently announced the impending launch of another Rs. 1 lakh car in the India auto market.

Ajanta Manufacturing currently manufactures electric bikes in India which are quite popular and very successful as well. Now they will be making their foray in the small car segment as well. Ajanta has announced to launch their new electric car, Oreva E, in India priced at Rs. 1 Lakh.

"After registering a strong presence in the e-bike segment, we are set to enter the electric-car category," said Oreva e-car dealer Yogesh Tank. "In fact, we have designed the car to rival Nano. That is why Oreva E will be available within the Rs 1 lakh price range," said Tank. On the other hand, Jaysukh Patel, Managing Director, Ajanta Manufacturing Ltd. refused to comment.

Nano’s soft launch likely by year-end

Tata Motors is likely to go in for a soft launch of its low-budget car, Nano, by the year-end before hitting the road in a big way.

“Tata’s will launch 200-300 Nano cars by end this year, which will be the soft launch of Nano,” a vendor, who attended Tata Motors’ Vendor Meet, told reporters here on Thursday.

The company, which recently shifted its Nano plant to Gujarat from West Bengal, plans a major launch of the car during the second-half of the next year, he said.

The company spokesperson could not be contacted for comment.

However, officials of the Tata Motors a few days back had reiterated the stated position of launch in the last quarter of the current fiscal.

Nissan to be first automaker to export from Ennore Port

Nissan Motor India Private Limited today said that it had signed a memorandum of understanding with Ennore Port Ltd (EPL) to export its vehicles through Ennore Port in Tamil Nadu. NMIPL, the Indian affiliate of Nissan Motor Co. Ltd, will be the first automaker to utilise the eastern gateway port of India as an export base.

NMIPL will begin exporting vehicles, primarily to Europe, commencing the second half of 2010. Exports are expected to be approximately 110,000 units in fiscal year 2011 and grow to 180,000 units in the future. Exports will include models, such as the next generation of Micra, which will be built on Nissan's new A-platform.

''Ennore Port meets all of Nissan's requirements to export vehicles,'' said Shouhei Kimura, managing director of NMIPL. ''We are looking forward to a cooperative and successful working relationship with EPL to achieve the highest level of on-time delivery at competitive costs.''

BMW India launches BMW Xpo with attractive finance schemes

BMW 5 seriesBMW India has launched the “BMW Xpo” at BMW dealerships across India until 28 October 2008, where prospective and existing customers can test drive the range of BMW cars at all BMW India dealerships during the BMW Xpo2008.

During the BMW Xpo 2008, special financing and leasing offers have been launched by BMW Financial Services in conjunction with ICICI Bank and ORIX Auto Infrastructure Services Ltd. Prospective BMW car buyers can also avail special insurance offers from Bajaj Allianz. ICICI Bank will exclusively offer “Fixed Interest Rates” instead of “Floating Interest Rates” to all loans logged in for BMW customers. Attractive offers on the BMW 3 Series include “Zero down payment” option for select customers through ORIX Auto Infrastructure Services Ltd, Interest free option for a fixed period of time, Lower fixed interest rate of 15% from ICICI Bank, and a special discount of 30% on a basic insurance policy from Bajaj Allianz.

During the BMW Xpo 2008, BMW India dealerships will also display a wide range of BMW lifestyle accessories that extend from classic BMW lifestyle products such as BMW shirts and jackets, sports products in golfing, kids’ mobility equipment, car miniatures, original accessories, baggage and luggage.

Automatic cars find many new women buyers The auto industry has some new positioning working out to its advantage. Automatic transmission cars are se

The auto industry has some new positioning working out to its advantage. Automatic transmission cars are seeing brisk sales, thanks to the growing number of female customers who have developed a penchant for such cars. It is widely believed that automatic transmission variants of a number of models are finding a lot of woman takers as it enhances the comfort to drive such cars.

A number of companies that have lined up new automatic transmission-enabled models like Hyundai's i20, GM's Captiva (AT version), Fiat's Linea et al. Moreover, the recently launched models like Honda City, Mitsubishi Outlander, Mahindra Scorpio etc are already equipped with the aforesaid feature. Unlike before, carmakers are offering new-age five to six speed automatic transmission systems which are offering better fuel-efficiency along with improved pick up and performance.

One of the top-selling cars of such variants is the premium hatchback car-i10, which is selling over 1,600 automatic transmission variants per month, which is more than the company's initial estimates.

It was reported earlier that Mahindra & Mahindra Ltd. (M&M), on 22nd September'08, has launched the Scorpio Automatic in Pune and Bangalore, which incorporates a fully automatic 6-speed gearbox and the powerful 2.2 litre mHawk engine. Scorpio is the first Indian brand and the first SUV in its class to offer a 6-speed fully automatic transmission.

According to a senior representative of Hyundai Motor India Limited, the sale of automatic variants of i10 have exceeded the company's expectations. He added that there has been an overwhelming response from woman drivers and the growing congestion in the urban centres is pushing up demand. He also indicated that the company will also roll out the automatic transmission variant in its Verna sedan too and would also bring a variant for the physically challenged.

Commenting on the new trend, one of the top honchos of Honda Siel Cars India (HSCI) has stated that the company sells the automatic transmission variants for most of its models like Civic, Accord, City, CRV. He added that female buyers are inclined towards high-end features and automatic transmission is one of them.

According to a senior official of GM India, the Captiva model has been selling like hot cakes. Buoyed by the burgeoning demand, the company has decided to launch the automatic variant soon (with a four-wheel drive), that will cost around Rs. 20 lakh.

Bentley’s New Car in India

Though the economy is slowing down rapidly, luxury car company Bentley and many other companies like it still see India as a ‘key market’, and remain bullish on the market. ‘There is always somebody making money’, says Bentley’s MD for India on the sidelines of launch of its new model in India.



Bentley announced the launch of its new model, Continental Flying Spur, which can make 100kmph in 4.2 seconds and reach its top speed at 322kmph. The new model is priced at Rs. 2.5 crores (ex-showroom Delhi). Bentley hopes to sell at least 10 models in India. “We are looking at enhancing our range in India. All our future models will be simultaneously launched in India along with the global market,” said Chris Buxton, Regional Directors, Bentley Motors, (Middle East, Africa and India).

Amidst the ongoing economic crisis, major car manufacturers are experiencing a major slump in their sales and piling up of inventories at their manufacturing units and dealer locations. On the other hand, Bentley surprisingly has an order backlog of 30 cars in India. This is even more amazing considering the cost of their cars in India. It clearly shows that someone somewhere is still making money.

Tata's Nano project finds a home

India's giant Tata Group has found a new home to build the world's cheapest car, cosseted by assurances that the project's past traumas with land disputes and political infighting are over.

By choosing to take its "Nano" car factory to the business-friendly state of Gujarat, after abandoning the original site in West Bengal, Tata has sent a message that a stable investment climate is a pre-requisite for participation in India's economic growth.

In an interview published Wednesday in the Economic Times, group chairman Ratan Tata attacked what he saw as the political manipulation behind protests by local farmers that forced the pull-out from West Bengal.

"Political opposition should be subordinated to the better welfare of the country," Tata said, suggesting that those who backed the protestors did not necessarily have their best interests at heart.

"Who is the loser? Are the people really going to prosper, many of whom live below subsistence levels?" he said. "What about the people who had aspirations for jobs? These are the questions that come to my mind."

The decision to move the plant -- which was 90 percent complete -- followed a month of violent demonstrations by activists and evicted farmers who complained they had been forced to give up their land for a pittance to make room for the Nano factory.

Some farmers said their signatures handing over their land were forged by workers from West Bengal's governing communist party.

The issue provided a rallying point for social activists and opposition parties hoping to break the Marxists' 31-year rule in the state.

The Nano has attracted worldwide attention due to its planned price tag of just 100,000 rupees (2,100 dollars) and, as soon as it became clear that Tata was considering relocating, a number of states rushed to compete for the project.

The agreement with Gujarat was formalised on Tuesday, and Ratan Tata said the choice was largely rooted in the state's ability to provide the necessary land immediately.

"Gujarat was able to define the land, secure possession of the land, the main thing, at an unbelievably fast rate," he said.

"In fact, if we could move the plant in a day, we could have actually started operating here, given the fact that everything was ready," he added.

Gujarat is one of India's most industrialised states and has a relatively sound infrastructure that has already attracted a number of multinationals.

The Nano plant will make 250,000 Nanos a year, rising to 500,000, the company says. However, it is not clear when production will begin.

The group had hoped to launch the car by December at the latest, but Tata officials admitted Tuesday that a more realistic timeframe lay between January and March next year.

The first batch of Nanos will be rolled out from existing Tata Motors plants elsewhere in India in what Ratan Tata described as a "makeshift kind of operation".

He also insisted that the 350 million dollars Tata had already pumped into the West Bengal plant was in no sense a write-off loss.

"All the equipment will be moved, so there is no loss there. We can also retrieve and utilise a fair amount of the fixed assets," he said.

The tussle over the Nano site was one of many recent land disputes in India.

The struggles have pitted the interests of farmers, who say they will starve without their land, against those of business and India's government, which say the country needs to industrialise rapidly.

Audi to drive in R8 at Rs 1.17 cr

German luxury car maker Audi will launch its sports car 'R8' in India this November, with a price tag of Rs 1.17 crore, even as the company gears up to clock an overall sales of around 1,000 cars in the country this year.

The sports luxury car will be an addition to the company's line of luxury sedans, including the A4, A6, A8, TT Coupe, and SUV Q7.

"The (R8) cost will be over crore...Rs 1.17 crore," Vice-President Marketing Audi (India) Martin Birkner said here.

Asked how many R8s Audi was planning to sell in India, he said the company has received orders for 15 units already, which would be delivered this year.

Bullish on the fast growing luxury-car market in India, Audi has already posted a 200 per cent growth this year from that of last year.

"The whole segment is growing and we are growing even faster than the segment. We will sell this year about 1,000 cars in India," he said, adding 350 units were sold last year.

Birkner said Audi's A4, which it has started assembling in India, has a major contribution to the speedy growth and added, "we will try to get more production to India to meet the demand for this product." The company had, earlier, said it planned to produce 11,000 units of A4 by 2015 in India.

Volkswagen to Roll out Its Cars Ahead of Schedule

Volkswagen Group hopes to sell 20000 units by the end of this year which would mark a 69 percent growth in its sales figures as compared to its last year’s figures. The robust sale of its current models has made VW to pre-pone its plans to roll out more models from its Chakan plant, near Pune in India.

Every car manufacturer in India has adjusted its production schedule according to the ongoing economic crisis. Nearly everyone is facing piling up of inventory at the factiories as well as at the dealer locations. On the other hand, VW has witnessed robust sales of its models like VW Jetta and Skoda Fabia. It also plans to launch its compact car and a sedan based on Polo platform in India. Volkswagen India Private Limited currently has 14 dealerships in India which it plans to hike up to 150 by 2011.

Volkswagen AG hopes to sell more cars in India and strengthen its position in the domestic market as well. Its Greenfield plant in Pune will roll out more passenger cars ahead of its schedule if the demand is constantly supported in the market. As every auto manufacturer in India crosses his finger to sail through the economic tsunami, VW sees a little bright light already.

Mahindra First Choice Services launches CarXSpace outlet

Mahindra First Choice Services Ltd., a part of the $6.7 billion Mahindra Group, today inaugurated its first CarXSpace multi-brand car service outlet in Chennai. Spread across 15,000 sq. ft, the outlet is located at Thiru Vi-Ka Industrial Estate, Guindy Industrial Estate and will service all brands of cars across segments. This is the company’s third outlet since launch and its first outlet in South India.

“We are delighted to introduce the CarXSpace brand experience from Mahindra First Choice Services Ltd., to Chennai. In India, the car servicing market mainly comprises authorized repairers and independent garages. Our market research has shown that car owners would prefer a service outlet such as ours with a value proposition built on trust, customer experience and convenience,” said Mr. Rajeev Dubey, President (HR, After-Market & Corporate Services) & Member of the Group Management Board, Mahindra & Mahindra Ltd.

“The new CarXSpace outlet at Guindy has eight compact bays and trained technicians will service a limited number of vehicles per day, ensuring each customer gets individual attention. Customer centricity is a key aspect of business at CarXSpace with each customer receiving photographic evidence of work undertaken on his car. Since our inception in May 2008, we have serviced 35 different car brands and are being perceived as a one-stop shop for multi-brand car servicing,” said Mr. R. Subramani, CEO, Mahindra First Choice Services Ltd.

CarXSpace aims to redefine the car servicing experience in India with a range of unique services available at very competitive rates, as compared to authorized dealerships. The company employs technicians who can cater to multi-brand servicing requirements. Only original spares and accessories, directly procured from companies at competitive rates, are used. CarXSpace also follows stringent quality measures including photographic evidence of parts being changed and a mandatory 50 point check which is performed on all cars with an Engine Analyzer. Moreover, car owners are given a warranty that their cars will not need repairs for the next 4,000 kilometres.

Vehicles will be washed only with car shampoo and soft water as the mineral content in hard water may cause scratches to the body and underbody of the car. Each outlet will have a water softening facility for this purpose.

Car owners can relax and enjoy a cup of coffee in a soothing ambience while their vehicles are being serviced. They can also avail of a unique pick-up and drop service for their cars and a ‘night only service’ where repair work will be undertaken only at night. In case extensive work needs to be carried out, the company will provide a temporary car to the owner for his use.

The company’s first CarXSpace outlet was launched in Parel, in Central Mumbai, in April 2008. Since then, it has seen a steady of increase of both corporate and individual customers with an average of 15 cars serviced per day. The outlet has undertaken both mechanical and body shop repairs for 27 different car models.

The second outlet was opened in Andheri in Suburban Mumbai, in September 2008 and is already servicing an average of nine cars per day.

Mahindra First Choice Services Ltd. is part of the Mahindra Group’s newly launched After-Market Sector which also includes Mahindra First Choice Ltd., which undertakes purchase and sale of pre-owned vehicles and the Mahindra Spares business (both Mahindra and non-Mahindra). The new vertical seeks to create a business ecosystem in the after-market space which mirrors the ecosystem for new vehicles.

The vehicle population in India currently stands at 6 million cars and is estimated to grow to 17 million by 2015. This implies vast, untapped potential in after-market services encompassing multi-brand pre-owned vehicles, servicing, spares and the financial instruments and exchange platform which support this value chain.

Volvo Car India launches special edition

Special edition Volvo cars to be showcased during ocean race.

As the Cochin Port is making all efforts to host the biggest yachting race in the world - Volvo Ocean Race - the Volvo Car India, a division of the Ford Motor Company, has announced the launch of special edition cars to add glamour to the largest sporting event.

Announcing the launch, Volvo Car India managing director Paul De Voijs said that the company would be showcasing these special edition cars on the event mainly because the Volvo Ocean Race reflects the values that our customers look for when they choose a car. It was all about an active lifestyle, adventure and passion, he said.

The new Volvo Ocean Race car edition encompasses three models: The Volvo V70, Volvo XC70 and Volvo XC90 in ocean blue and electric colours. The seven yachts participating in the race will arrive Kochi in December and they will remain here for 10 days.

Following the launch in India during September last year, around 100 Volvo cars had been sold so far. The company has set a target to sell 500 units by the end of this year, he said.

The luxury cars range between Rs 38 lakh and Rs 52 lakh.

Renault Itching for a Return to the U.S.

French car maker Renault SA is still itching for a move into the U.S. automobile market -- the world's biggest, from which it has been absent for more than 20 years -- and might be interested in Chrysler LLC if its owners were to put it up for sale, a senior Renault official said Thursday.

Jacques Verdonck, Renault's vice-president for corporate and strategic planning, told Dow Jones Newswires that one option for the company is to try to establish a presence in the U.S. by itself, although this would be both "risky and costly."

That is because it would involve developing at least three new products specifically designed for the U.S. market, while creating a dealer network, either by forming an alliance with an existing dealership network or creating Renault's own network from scratch.

The other easier and less onerous way would be to link up with one of the large U.S. automotive companies, though this would imply that the partner is in good financial health and is sufficiently robust to carry the deal through, he said.

In 2007, talks between Renault and General Motors Corp. about a possible alliance collapsed after management of the two companies failed to see eye-to-eye on the potential synergies that could be derived from an alliance.

"We had discussions in past with GM that didn't work out even though there were considerable potential synergies," Mr. Verdonck said. "If the opportunity presents itself again, we will seize it. But if it doesn't, I don't believe we can launch an aggressive takeover operation against an American company."

In 1982, Renault took over American Motors Corp. to make the Alliance, a variant of Renault's subcompact Renault 9 car, but the project never made money and Renault backed out and sold off its interest to Chrysler Corp. five years later.

While a straight takeover is only one of several scenarios, he acknowledged that Chrysler "would make a good partner" in the U.S.

Potential synergies are different when you consider Chrysler, GM or Ford Motor Co., he said. Chrysler is more focused on its U.S. operations, while GM and Ford are more global players, he noted.

"What's important in a partnership is to ensure that management really wants to be in the partnership; if you do it against the will of the partner, you'll face huge difficulties," Mr. Verdonck said.

Renault Chief Executive Officer Carlos Ghosn said earlier this year that now is not the time for Renault to make a bold move into a new market such as the U.S., arguing that the company must first ensure the success of its industrial expansion in Morocco, in Latin America, India and Russia.

Volkswagen to do R&D in India for global cars

Germany based automaker Volkswagen has said that they are now planning to establish their global research and development center here in India.

This center would work on development of cars for the global market.

This would be similar to how Suzuki and Honda are now developing cars in India.

Volkswagen Executive Vice-President and Member of Board Ulrich Hackenberg was speaking at the Paris Auto Show: “India has a good resource of engineering talent. We will build up our technical centre at Pune. After sometime, may be in 5-6 years time, we may have global car developed in India.”



Volkswagen Group Chairman Martin Winterkorn added: “We, as a big automobile company, constantly keep evaluating possibilities. Emerging markets, including India, are key to our expansion programme not only in cars but also in commercial vehicles.”

2009 Aston Martin V8 Vantage

If you have a lot of money and a bit of taste, the 2009 Aston Martin V8 Vantage is worth consideration as an alternative to the Best Sports Car Ever.



You can see this Porsche strategy in the 2009 V8 Vantage, a beautiful two-seat coupe and roadster that's quickly becoming an iconic luxury sports car design.



Like Porsche with the 911, Aston won't be updating the Vantage with facelifts every few years. The '09 V8 Vantage looks exactly like the '08 V8 Vantage, save for new 19-in. wheel designs and some interior tweaks.

Ford sets early 2010 target to launch small car in India

Armed with a $500-mn investment outlay, Ford Motors has set early 2010 as the target to launch a small car in India, start its new engine-making unit and double the assembly line capacity, a top official said here.

The US-based giant will also unveil its refurbished Ikon by next month to expand its range of offerings in the country that includes Fusion, Endeavour and Fiesta, said Michael Boneham, managing director and president of Ford India.

"Ford now has a presence in only 30 percent of India's automobile market segments. We are entering other segments too. These are exciting times," Boneham told IANS at the company's factory at Maramalai Nagar on the outskirts of the Tamil Nadu capital.

"We are also commissioning a new engine manufacturing unit. It will serve both the domestic and global markets. It will have the flexibility to produce diesel and petrol engines. The idea is to go for higher localisation in the months to come."

Speaking about the small car project, the Ford official said it was being designed and developed specifically for India by a global team. "It will meet the needs of Indian conditions - like water wading, air-conditioning and emission standards."



While declining to divulge any further information on the project, Boneham said it will have a sub-1.2-litre engine with a length of no more than four metres to avoid higher taxes. "It will be very, very competitive in that segment."

Ford's first offering here was the "Josh machine" Ikon that rolled out in 1999 from this city, often called the Detroit of India for hosting auto companies like Hyundai, BMW, Mitsubishi, Ashok Leyland, Caterpillar, TVS, Tafe and Same.

Nissan and Daimler are among some global players that have definite plans to set up their units in this city.

Boneham said the company's integrated engine plant for 250,000 units per annum will be its first outside Europe and will make low-displacement engines for cars to be rolled out of its Indian plant for both domestic market and exports.

He said the existing $26-mn diesel engine assembly plant, with a capacity for 50,000 diesel and 10,000 petrol engines for Fiesta and Fusion, would be eventually integrated with the new plant.

The company has the capacity to assemble some 100,000 cars per year at its facility here, which will be doubled to 200,000.

Queried about the future of its tie up with the Indore-based Avtec that supplies 1.6 litre petrol engines, Boneham said: "We will continue to work with them. We will look at sourcing components from Avtec."

He also sought to dispel the perception that the cost of ownership of Ford cars was high compared with those offered by Japanese and South Korean companies, as several factors like fuel efficiency and servicing were also involved.

"As per our study, in some parts we are costlier and in some others we are cheaper. Overall, we are very competitive in this area. We are working to lower component costs further. Our diesel engine is more fuel efficient than many others," he said.

"High localisation is intended to achieve that. We are extremely quality conscious. Today, we can say we are far more satisfied and comfortable with our vendors."