911: Porsche launches new model

As the global auto industry faces some of the harshest conditions it has in decades, one question has surfaced again and again: Can developing markets fill the void left by the collapse of spending on cars in the United States and Western Europe?

In Egypt, many analysts are predicting an end to the car market’s recent boom years — it has grown by about 20 percent per year since customs were lowered in 2004. But even a market with no growth is more appealing than one in which sales are declining, and so many companies have stepped up their campaigns in countries such as India and China.

Porsche, for one, is betting that Egypt will help them pick up at least some of the slack. Last week, the German luxury brand introduced the 911 Carrera 4, a flashy new model with an even flashier price tag, in Cairo.

The company presented the car at a press conference complete with instructional videos, dramatic musical buildups and a ceremonial unveiling.

The new Carrera has been applauded by many car critics recently, partially for better fuel efficiency, more power, and new features including a flat-six engine, direct fuel injection and its Doppelkupplunsgetriebe – “double-clutch gearbox.”

According to Auto Arabia, a regional car reviewer, the new Carrera has up to 8.5 percent more power — now 345 bhp (254 kW) — and is 12.9 percent more fuel-efficient than the previous model. With the double-clutch gearbox, the new model uses 10.1 liters of gas per 100 kilometers (about 28 miles per gallon).

At LE 1.5 million, the Carrera’s price places it well out of reach for average, and even most above-average, Egyptians. But the Cayenne model has already seen some success here. Whether the financial crisis will affect the Carrera’s appeal will be seen over the next few months.

Despite the state’s lowering of some customs earlier this decade, taxes still necessarily affect Porsche’s business model here. The company pays as much as LE 1 million to the Egyptian government when importing some of their models here, company officials said at the press conference.

It is expected that the state will continue to lower tariffs, which should allow the introduction of more luxury models at a later time.

For now, though, most local media has greeted the new Porsche with enthusiasm – and a bit of humor. “What a name. I mean, 911 – no one will forget it,” quipped one reporter at the conference.

Fiat launches new model, plans doubling sales by 2010

Car manufacturer Fiat India is likely to double sales by 2010, a top company official said here Thursday.

“We are anticipating more than 40,000 sales in the current year (2009) and we hope to double it by 2010,” Rajeev Kapoor, president and chief executive officer of the company said on the sidelines of the launch of Fiat Linea - a sedan with diesel and petrol variants.

The total sales - domestic sales along with export - last year were only around 4,500 units, he said.

After Linea, the company plans to launch two more models this year, he said.

“During recession there is always an opportunity because consumers become more choosy about what they want to purchase. Secondly, the only way to beat recession is to come up with launches. Wait and see how many launches happen this year,” Kapoor said.

Apart from doubling sales figure, the company will also be looking at new markets. “We will be at new markets in 2010. Our focus will be Australia, New Zealand and the UK, all right hand drive markets,” he said.

The company is planning to launch, a two-door lifestyle car Fiat 500 in the city in February, the Fiat India CEO said.

The company is a 50:50 joint venture between Fiat Group Automobiles and Tata Motors.

General Motors launches new Chevrolet Captiva

Auto major General Motors India (GM) on Friday launched the automatic version of its Chevrolet Captiva sports utility vehicle (SUV), priced at Rs.2.03 million (ex-showroom Delhi).

The SUV that was first launched in 2008 comes with a common rail diesel powertrain.

"The new Chevrolet Captiva Automatic+ brings superlative comfort and ease of driving combined with unbeatable value, safety, security and luxury to our customers,” GM president and managing director Karl Slym said.

The car features an automatic all-wheel drive (AWD) that GM claims is able to adjust between four-wheel drive and two-wheel drive automatically according to the terrain.

GM to introduce new, fuel-efficienct and bi-fuel cars in India

With the success of its two hatchbacks in the Indian market, General Motors India is set to come out with a third one by the end of the year.

Following the Chevrolet and Spark, the "new Chevrolet Mini will not be a competition to Tata Motors' Nano. We are not in the numbers game. It will be positioned above the Chevrolet U-VA. Pricing will be around that range," said Karl Slym, president and managing director of General Motors India.

Speaking at the launch event of the company's sports utility vehicle (SUV) the Chevrolet Captiva's automatic variant, being at Rs20.3 lakh.

Reports quoted company executives as saying that the Chevrolet Mini would be positioned against Hyundai's recently launched i20.

Initially GM had planned to import the car as a completely knocked down kit into India, though now reports said it would manufacture the vehicle at its Talegaon plant in Maharashtra. The car is expected to hit the market in both petrol and diesel options, and is presently reported to be undergoing the fine tuning process of mapping the product to suit Indian road conditions.

In the premium segment, the Chevrolet Cruz would make its début sometime around the middle of 2009, providing some competition to the likes of Honda's Accord and Toyota's Camry. GM said that a one-week planned shut down at its Halol plant in December 2008 was to allow it to outfit the assembly lines to manufacture the Chevrolet Cruz.

Starting this year, General Motors India will also start offering bi-fuel cars that run on CNG or LPG as well as petrol. In the US, the Captiva has a hydrogen fuel variant. Slym attributed the lack of infrastructure as the reason the company has not introduced thye hydrogen-fuel car here in India.

GM would launch an LPG-powered car sometime during the first half of the year, Slym said, while adding that it would be followed by other LPG vehicles.

GM India already has the its current sedan, the Chevrolet Optra, available in the CNG variant, and the company would look at a similar course of action for its entry level sedan, the Chevrolet Aveo.

Slym said that GM's strategy has been to first come out with "high fuel efficiency in all our vehicles". "Then we will be introducing vehicles powered by (alternative) fuels like CNG and LPG, besides having different power-trains and different displacements," reports quoted him as saying.

GM is reported to have sold around 65,000 units last year in the domestic market, growing by 10 per cent despite the two per cent drop in growth witnessed by the passenger vehicle industry in 2008.

Reports said that GM's domestic market share notched up a few points from 2.9 per cent in 2007 to 3.4 per cent in 2008. the company is planning to make India its hub for power trains for Asia Pacific, after the completion of the $200 million power train facility at Talegaon in 2010.

Safety features will hold key to Indian cars on European roads

Many cars, including those from Tata Motors and Mahindra, about to hit the market, are set to have more integrated safety features. With Indian companies eyeing the European market and manufacturers looking to up the ante, one company set to get the wheels rolling with Indian auto majors is MIRA Ltd, UK automotive engineering specialist, which provides expertise to three Indian vehicles awaiting launch, including a small car.

“Many Indian companies, including Tata Motors, Mahindra and Ashok Leyland, are associated with us. People in Europe are more aware about safety mechanism for automobiles. European customers attach more importance to star ratings given by The European New Car Assessment Programme (Euro NCAP),” said Jim Hopton of MIRA, UK, talking to The Express. Hopton, in Pune to attend a symposium on international automotive technology held by the Automotive Research Association of India (ARAI), said future niche areas included advanced driver assistance, warning assistance and collision avoidance and intervention systems.

Addressing the gathering, chief guest at the symposium, Lord Peter Mandelson, Secretary of State for business, Enterprise and Regulatory Reform, UK stressed the need for partnership between auto majors of Indian and UK origin. “We are setting up a business office in Banglore to support and encourage Indian companies entering joint ventures with UK counterparts. UK companies are well positioned to help Indian firms realise development plans,” he said.

“In Europe, the Euro NCAP publishes safety reports on new cars, and awards 'star ratings' (1 to 5) based on performance in a variety of crash tests, including front, side and pole impacts, and impacts with pedestrians. In 1997, 80 per cent of the cars could attain only two stars but starting 2005, 95 per cent cars got 4-5 stars. Now, the Indian auto companies are keen on matching European safety standards and our Indian clients are aiming for four stars,” Hopton said.

Terry Spell, vice president of MIRA, Shanghai, said more sophisticated technologies are coming up in the industry in safety engineering and that Indian companies could soon adapt to the change. “Active braking system, adaptive cruise control and other technologies are now in the offing. Most of the cars in Europe comes with anti-submerging seats, dual stage, sophisticated airbags among others,” he said.

MIRA, which has 400 niche engineers, was started 60 years ago as Motor Industry Research Association and was then funded by the UK government. It later became a company. In India, it has a business office in Chennai.

BMW India to launch SUV in a month

German luxury car maker BMW India will launch its sports utility vehicle X6 and a new model of its seven series sedan in a month’s time, shrugging off fears of an economic slowdown impacting luxury car sales in a significant way.

Priced between Rs 65 lakh and Rs 70 lakh, the X6 will be powered with a three-litre diesel engine and a 5.0 litre petrol engine. In the seven series, it will initially launch a new 750 li model priced at Rs 93.3 lakh and later a 730 ld, a diesel model that would be introduced over the next three to four months at a slightly lower price.

The company closed the last calendar year selling 2,908 units, an over 100 per cent increase from 1,387 units that it sold the previous year. It, however, declined to give its target for the current year.

“We will introduce X6 and a new seven series model by the end of the month which will be imported as a completely built unit. But we are also looking to introduce a 730 diesel model by April-May which will be priced lower,” the BMW India President, Peter Kronschnabl told Business Line.

Upbeat on India

He said that while the luxury car market began to feel the pinch by the last quarter of 2008, he was upbeat on the Indian market.

“First half of the year will be tough. But relief will come in the second half. India is not in a recession. Even after taking into consideration the slowdown, the economy is estimated to grow above 5 per cent, making it still the fastest growing economy,” Kronschnabl explained.

On the sales outlook, he stated that the company would see the trend in the first two to three months before it firms up its target. It will also increase its sales network during the year by expanding its dealership to cities such as Surat, Jaipur, Ludhiana and Coimbatore, taking the total count to 16 countrywide.

Hyundai launches new Sonata

Hyundai Motor India Ltd (HMIL) today launched an upgraded version of its luxury sedan Sonata priced between Rs 13.9 lakh and Rs 15.9 lakh as it looks to enhance its position in the bigger car segment.

The new 'Sonata Transform' will be available in 2.4 litre petrol engine priced at Rs 13.9 lakh and two litre diesel engine with two options priced at Rs 14.89 lakh (for manual transmission) and Rs 15.9 lakh (for automatic transmission). "It is our endeavour to constantly upgrade our products. With the new Sonata we are looking to enhance our position in the luxury sedan segment," HMIL Managing Director H S Lheem told reporters here. The company which had indicated that it was considering price hike of its products is yet to take a final call, HMIL Senior VP Marketing and Sales Arvind Saxena said.

Hyundai launches new Sonata; yet to decide on car price hike

Hyundai Motor India Ltd (HMIL) today launched an upgraded version of its luxury sedan Sonata priced between Rs 13.9 lakh and Rs 15.9 lakh as it looks to enhance its position in the bigger car segment.

The new 'Sonata Transform' will be available in 2.4 litre petrol engine priced at Rs 13.9 lakh and two litre diesel engine with two options priced at Rs 14.89 lakh (for manual transmission) and Rs 15.9 lakh (for automatic transmission).

"It is our endeavour to constantly upgrade our products. With the new Sonata we are looking to enhance our position in the luxury sedan segment," HMIL Managing Director H S Lheem told reporters here.

The company which had indicated that it was considering price hike of its products is yet to take a final call, HMIL Senior VP Marketing and Sales Arvind Saxena said.

Fiat India launches luxury sedan Linea at Jalandhar

Fiat India Automobiles (FIA) on Saturday launched its luxury sedan Linea here and announced plans to introduce two hatchbacks Grande Punto ( B segment car) and Bravo in the Indian car market this year.

The petrol versions of Linea are priced between Rs. 5.98 lakh and Rs. 6.98 lakh, while the diesel variants are priced between Rs. 6.88 lakh and Rs. 8.10 lakh, Tarun Khanna, head-Marketing said while launching the car here.

"The launch of the Linea is first in the line of three launches that Fiat will undertake this year, the other two being Bravo and Grande Punto. With this car, we hope to make inroads in the C plus segment", Khanna added.

"The car has met with strong success across the world and although Linea has been designed with a strong Italian style, we have also taken into consideration local Indian taste and requirements and have incorporated this into the Indian Linea," he said adding that both petrol and diesel versions of Linea have three variants each.

Claiming that 'fully integrated robotised engine' (FIRE) would power the petrol version of the Linea, and the diesel version is equipped with the advanced new generation multi-jet engine, Khanna said that the car would be retailed through a select 70 Tata-Fiat dealer outlets.

"We will buy auto parts worth 250 million euro from the country by next year for its European operations. We will start deliveries from this year and by next year we will be sourcing components for car and other divisions," he added.