HM Ambassador with New Diesel Engine: Ambassador Re-invented

Hindustan Motors (HM) plans on re-inviting the Ambassador car back to the Indian roads. The classic car is all set to present itself with a brand new fuel efficient engine. With the introduction of the Ambassador with diesel engine, HM plans on selling 12,500 units this year.

With the new diesel engine, the huge car’s engine will be compliant with the Bharat Stage 2 & 3 emission norms. The new engine will deliver a mileage of 16 km/l which is good as compared to 11 km/l mileage from the present diesel engine.

Hindustan Motors plans on investing big to upgrade their engines, they have planned on investing Rs 6 crores in upgrading engines and building them in order to be BS-3 compliant. To make it more economical and enticing for the masses, HM plans introduced the buy-back scheme which involves exchange of the old models of Ambassador with the new one at the discount of Rs 35, 000.

The classic car is presently being made by the industry in Uttarpara, Kolkata and to provide support to the car’s sales, HM has majority sales in Delhi, West Bengal, Tamilnadu and Kerala and it has 110 dealers across India.

New Niche Vehicle to be Introduced by Hindustan Motors

Just a few days ago, we reported that Mitsubishi Hindustan Motors decreased the prices of their cars by some six thousand rupees in India. The last few months have been busy for Mitsubishi. Now Indian newspaper, The Economic Times, is reporting that Hindustan Motors will introduce a new "‘niche vehicle", which will be sourced from Mitsubishi Motors’ stable.

R Santhanam is the managing director of Hindustan Motors. On the sidelines of the sixty-seventh annual general meeting of the company, Santhanam explained, “We are gearing up for the launch of a niche vehicle, hopefully, within this year, for which we are awaiting requisite homologation from ARAI (Automotive Research Association of India).”

Mitsubishi Hindustan Motors launched their Outlander sports utility vehicle in October last year while in March 2009, they rolled out the Montero, which costs somewhere around Rs. 41.88 lakhs (ex-showroom). However, Santhanam hasn’t revealed anything about the price bracket for the niche car from Hindustan Motors.

Audi Navigation System Plus Updated for Audi A3, TT and R8

Gone are the days when you used a simple map and a compass to navigate. These days, even the most somber cars are having advanced technology that help you navigate and drive smoothly. Companies such as Fiat have collaborated with technology giants Microsoft to come with their own technology.

Now we have Audi who has sent word that their updated navigation system plus that features Multi Media Interface (MMI) will be included in the Audi A3, TT and R8. It will offer unrivaled route calculation speed as well as enhanced screen resolution. What’s more, you can blend the Audi music interface and the radio-navigation system, version E (RNS-E). The new system reads up to 32 GB SD memory cards.

As it has become characteristic these days, you can attach iPods and external storage media and the external devices are also charged by it. The 6.5-inch screen has 800 x 480 pixel, high-resolution graphics. The system also features a 600 MHz processor and even shows speed limits taken from
the navigation data for freeways and highways. Yes, there is a topographic map view where scrolling vertically and horizontally has been made easy.

It also includes the intuitive operating logic of the media playback menu and displays the title information. This makes it simple to look for stuff in the music collection. There is support for the Bluetooth adapter, which is available at retail stores. Also, updates can now be downloaded free of charge from the Audi website. It also features slots for SD and SDHC cards on the back of the display.

According to Audi, the new system has already been released. The cost lays in the price range of 2270 EUR and 2565 EUR. Audi also informs about the optical parking assistant in the system and if you have the R8, it can be used with the rearview camera. Basically, the distance to the front and the rear are shown optically on the high-resolution display and when you utilize it along with rearview camera, the images that are beamed from the parking assistant get placed over the live images from the camera.

Hyundai's new all-rounder diesel i20

We have talked about the Hyundai i20 before. We know that Hyundai has been in India for just 10 years (though it feels much longer) and that there is a Hyundai car for every one. We know that from one car initially the company makes 33 variants of passenger cars across different segments. So why should Hyundai’s new i20 have me intrigued again? Because the car we drove earlier had the i10’s Kappa engine in it and now Hyundai has just introduced two new engines – a 1.4L petrol and a 1.4L common rail diesel. With these two new engines Hyundai has just moved up into a new segment and issued a challenge to the other players in the market.

Most things have not changed – Its still a five-door car, with the same dimensions as that of the Kappa-engined version (LxBxH = of 3940mm x 1710mm x 1505mm) and a wheelbase of 2525mm. Features have not changed much either – the AC/heating, the tilt & telescopic steering, split folding rear seats, front & rear power windows, and the multi information display are all there along with keyless entry, height-adjustable driver seat, electrically adjustable door mirrors and airbags.

The i20 definitely attracts attention. It attracted a lot of attention when it was launched at the Paris Motor Show and it still gets eyeballs to turn appreciatively on Indian streets. Under the skin you have MacPherson struts with gas-charged dampers at front and a torsion beam suspension. The rear dampers are also gas-charged shock. The i20 received a5-star rating at the Euro-NCAP crash because of all the active and passive safety equipment incorporated in it, including antilock brakes (ABS) with Electronic Brakeforce Distribution (EBD).

Suzuki Alto is a real miser

SUZUKI'S new little car is an absolute fuel miser.
The Alto, which was a highlight of the recent Brisbane Greenfest, arrives in Queensland showrooms next week costing from $12,490 to $16,490 plus on-road costs, and boasts official economy figures of 4.6 litres/100km. However, Queensland Suzuki importers Suzuki Auto Company felt so confident about the fuel-economy credentials of the car, they tested it in real conditions at the state launch this week.
Sending motoring journalists to test a car's fuel economy is like a red rag to a bull.
In the wake of one newspaper motoring journalist being caught doing more than 200km/h in a Ferrari in Western Australia, you can imagine how some motoring writers might treat test cars.
I'm not suggesting the 10 journalists attending on the Brisbane Alto launch drove like lunatics, nor that they did a Hans Tholstrup and drove with imaginary eggs under the accelerator.
However, the journalists certainly proved the Alto a real-life fuel frugalist.
While I did not attend the launch drive, I can report that the five one-litre-engined cars returned a jaw-dropping average fuel consumption figure of 3.52L/100km (or 80mpg in the old school).
Now bear in mind that the journalists were not sent out to do an economy run, although they were told that the fuel economy of the launch drive would be tested.
At least one pairing of journos decided to drive under normal conditions with the airconditioner on and leaving the car running while stopped at traffic lights.
Their fuel economy was the worst at 3.56L/100km. Still well below the official figures provided.
And with a fuel tank capacity of just 35 litres that's a range of almost 1000km.
Each car had two people on board and did a 132km circuit of the river city on Monday from 9.30am leaving the company's headquarters at Eagle Farm and heading through the central business district to the St Lucia university campus, around the back of town over the hilly suburbs of Indooroopilly, Bardon and Albany Creek all the way to Redcliffe and then down the Gateway Motorway back to HQ.
Suzuki spokesman John Daffy said the equivalent fare in a taxi would cost about $209, but based on the average fuel usage on test, it cost just $5.44 in fuel at $1.17 a litre.
While the car takes a minimum of 95 RON, Suzuki Auto Company did themselves a disservice by fuelling with E10.
The 10 per cent ethanol blend fuel is 95 RON but actually produces slightly worse fuel economy than 100 per cent 95 RON ULP.
Suzuki Auto Company general manager Keith Carroll said the only problem he could see with the economical Japanese-designed and Indian-built Alto was supply. "There will be about 150 cars in dealers with about 72 coming in the next shipment, but we think we could sell more than we're getting," he said.
Carroll said that with European demand high and production coming from the one factory in India, numbers may be capped. "We didn't know we would have a supply problem until about a month ago; with the currency problems we thought we better ask for more and they simply said no," he said.
"Every dealer wants more cars. It's not just a city car. It's also good on the highway. I believe we will sell them right up the state.
"In the country, they (dealers) are talking about it being the perfect car for a regional area.
"However, some country dealers will get only one each so there will be a few more available in provincial and metropolitan dealerships."
Suzuki Auto Company has 42 dealers statewide, with eight in Brisbane.

PRICE IS NOT THE BE ALL

NEW government laws that force car dealers, importers and manufacturers to advertise only driveaway prices present Suzuki with an opportunity.
Queensland Suzuki importers Suzuki Auto Company general manager Keith Carroll said price wasn't the only factor in selling the new Alto.
"The (advertised pricing) restrictions make advertising a bit difficult for us, but I think it's about time anyway that we started to talk about the build quality and the specifications of our cars rather than just the prices," Carroll said.
While the base model, five-speed manual GL is listed at $12,490, Carroll said on-road costs would bring it up to about $14,990 drive away. He expected the GL would be their big seller.
The GLX manual is listed at $14,490.
The four-speed auto adds $2000 to the prices of both models.
On-road costs include government duties, plus delivery charges which can vary with distance from the distributor, and dealer charges to get the car up to hand-over condition.
Carroll said the price difference was only about $100 across the state because they had averaged out the cost of freight and charged every dealer the same for delivery.
"Effectively the people of Brisbane are subsidising the people of places like Mt Isa," he said.
"It would cost thousands of dollars for freight to Mt Isa.
"Before the days of freight equalisation people flew to Brisbane to buy a car.
"It isn't a 100 per cent industry wide practice, but it's fairly common."
However, Carroll said one of the biggest factors affecting different drive-away prices were the dealer's labour costs in getting the car up to hand-over condition.
"For example, in Mount Isa BHP pays so much for labour, mechanics get paid really well so that forces up the wages dealers have to pay for mechanics."

Hindustan Motors To Bring In James Bond-like Cars

Hindustan Motors, the manufacturers of the grand old Ambassador, has always been associated with the past. But the company now wants to change its image and cater to the niche market. This actually sounds great. Please keep the updates coming you might say. Alright folks!!!

Here is more- The new vehicle is likely to be along the lines of James Bond- like automobiles!

So what is this James bond like automobiles? Can it be Aston Martins or Alfa Romeo or even sleeker cars? Many of James Bond movies feature Aston Martin Cars, because of its British origin like that of the country of origin of Bond himself.

In fact, the association between the car and the character is so strong that, a mere mention of the suave cars immediately reminds Aston Martin and James Bond manning its wheel.

Hindustan Motors currently has an ongoing partnership with Mitsubishi Motors. The Japanese company has met with limited success in India. It offers imported models like the SUVs Mitsubishi Outlander and Mitsubishi Montero and Pajero and sedans like Cedia and Lancer.

But if we look back, Hindustan Motors has a track record of catering to the creamy layer of the society through its wonder car Ambassador. It has been on the face of wealth in India for many decades now.

Whatever Hindustan Motors has it in its mind, but we all are waiting with bated breath to see what the new offering from Hindustan Motors could look like? Did someone just say Aston Martin was on its way to India???

Proton To Venture In India

The Malaysian national carmaker Proton is considering to venture into the Indian car market. It will enter the growing Indian market with a range of hatchbacks and saloons.

Proton Holdings Berhad, Managing Director, H S Z A B Syed Mohamed Tahir, said the company would intensify its export programme to diversify into various market segments and reduce dependence on the domestic market.

The Malaysian carmaker is likely to roll out its Savvy hatchback and the Saga and Persona sedans in Indian. Proton earlier had talks with Mahindra & Mahindra and contract manufacturer Argentum Motors, but the partnership couldn’t happen. Now the company is on the lookout for other possible tie-ups to enter into the lucrative car market of India.

The Malaysian carmaker sees price and fuel efficiency as the two USPs its cars will have, as well as compatibility with alternative fuels like CNG and perhaps LPG.

Apart from Malaysia, Proton cars are sold in China, Iran, Pakistan, the UK and Australia, and the company now wants to focus on the Indian car market.

Nissan Micra to be Made in India

Nissan Motors India is readying to launch a new hatchback in India by early 2010. The small car will be manufactured at their new plant in Chennai. This new plant is expected to be operational from next year.

Nissan India has set up a new manufacturing unit in Oragadam near Chennai in association with the French auto maker Renault. The new facility will not merely cater to the domestic needs but also the overseas demands of models from both the companies.


The unit will have an initial manufacturing capacity of 200,000 cars per year. The factory will then scale-up production to 300,000 cars in about four year's time. It has been revealed that it has become difficult for Nissan and the French car maker, Renault, to make profitable cars in Europe for sale.

The upcoming small car is known as the March in Japan, but the Indian version will be christened as the Nissan Micra. The Micra will be available in both petrol and diesel versions. The Nissan Micra will stand against the Tata Nano.

Initially, it will be the Micra which would be followed by a derivative of the small car and then a sedan which is expected to be launched in 2011. In addition to the Nissan Micra, the company also aims to launch four to five models in next five years in the Indian market.

Currently Nissan Motors sells the completely built units (CBU) of Nissan Teana and Nissan X-Trail in India.

Panamera to Debut in India by October

Porsche’s newest in the car; the Porsche Panamera will be inaugurated in India during mid-October.

The Porsche Panamera is a luxury sedan that was exhibited in 13th Auto Shanghai on 19th April, 2009. It marks the first ever four-door premium luxury sports car from the esteemed German luxury carmaker.


This upcoming sedan from Porsche will come with a 4.8 litre V8 direct fuel injection engine. The dynamic Porsche Panamera 4S, boasts of a 4.8-litre V8 that can power 400 bhp. The engine is mated to Porsche’s seven-speed PDK Doppelkupplungsgetriebe for all four wheel drive.

This sedan can accelerate to 0-100 km in 5 seconds and can reach a top speed of 282km/h. The Panamera Turbo is available in a 4.8-litre V8 twin turbo that can give a power output of 500bhp with power transmitted again by Porsche’s seven-gear Doppelkupplungsgetriebe (PDK).

The Panamera features avant-garde technologies, world-class engineering and fascinating design to seduce new customers. The low-sleek silhouette of the high-end sedan is mesmerizing. There are five new cutting-edge technologies that make their world debut in the Panamera.

Some of them are the start-stop system in conjunction with automatic transmission, air suspension with additional air volume available on demand in each spring and active aerodynamics with an adjustable, multi-dimensional, extendable rear spoiler on the Panamera Turbo.

The Porsche Panamera is likely to be priced between Rs 1.42 to Rs 2.02 crore (ex-showroom Delhi) which is inclusive of VAT and import duty. The sedan will be positioned against the BMW 7-series and Audi A8 in the Indian market.

Details Of The Ghost Revealed

Don’t panic! We are talking about the Rolls Royce Ghost which is India bound. The upcoming luxury car also called the Baby Rolls Royce will be inaugurated in India by the end of 2009, a year marked by the maximum car launches in India till date.

Rolls Royce Motor Cars has recently announced the details of its luxury car, The Rolls Royce Ghost. The car will be powered by a brand new 6.6 litre turbo charged V12 engine which unique to the Rolls-Royce. The V12 engine will be mated to an 8-speed automatic ZF gearbox. This engine will produce 563 bhp and can accelerate to 100 km in 5 seconds. The Ghost can cover 249.45 km/h.

The Rolls-Royce Ghost will come with an intelligent four corner air suspension system that uses multi link aluminum front and rear axles. The fully integrated system allows each of the Ghost’s dynamic handling systems to work together in harmony, providing the optimum levels of refinement and comfort at all times.

Noise from engine, exhaust and even tyre has been engineered to be inaudible as far as possible, both internally and externally. The car will have significant levels of low down torque which makes driving experience comparable to the legendary “Magic Carpet” ride.

The Ghost will come with all the exclusive Rolls Royce features. This car termed as “Rolls you can drive everyday” will share paint, wood and leather workshops with the Phantom series of cars.

The luxury car is likely to get a price sticker between Rs 1.2 crore to Rs 1.4 crore. Rolls Royce currently sells the Phantom, the Phantom Coupe, and the Phantom Drophead Coupe in India.

Maruti Ritz Buyers Opt Petrol Version

Maruti Suzuki’s latest pin up car, “tall boy” Maruti Suzuki Ritz has been hitting the roads in decent numbers since its launch in May. It has been reported that buyers prefer Maruti Suzuki Ritz petrol variant to the diesel one. In fact, about 70 percent of current Ritz sales are for the 1.2-litre petrol engine version, with the remaining opting for the 1.3-litre Multijet diesel version.

This marks a significant shift in preference among buyers of B-segment small cars in India as these customers have preferred diesel versions for their lower running costs over the ages. One of the reasons for this preference for the Ritz petrol is that it is significantly cheaper than the diesel version. Another reason for the popularity of the Ritz petrol is that it is powered by Suzuki’s new generation KB series engine which offers improved refinement and relatively better fuel economy. This helps it to narrow the gap in terms of efficiency and running costs between the petrol and diesel versions.

The increased popularity of petrol engines among hatchback buyers is an important new trend in the Indian car industry. It is also an indication of the increasing maturity and sophistication of car buyers in India, who are carefully weighing the pros and cons of petrol and diesel versions and not buying diesel merely out of habit.

Maruti Ritz Buyers Opt Petrol Version

Maruti Suzuki’s latest pin up car, “tall boy” Maruti Suzuki Ritz has been hitting the roads in decent numbers since its launch in May. It has been reported that buyers prefer Maruti Suzuki Ritz petrol variant to the diesel one. In fact, about 70 percent of current Ritz sales are for the 1.2-litre petrol engine version, with the remaining opting for the 1.3-litre Multijet diesel version.
This marks a significant shift in preference among buyers of B-segment small cars in India as these customers have preferred diesel versions for their lower running costs over the ages. One of the reasons for this preference for the Ritz petrol is that it is significantly cheaper than the diesel version. Another reason for the popularity of the Ritz petrol is that it is powered by Suzuki’s new generation KB series engine which offers improved refinement and relatively better fuel economy. This helps it to narrow the gap in terms of efficiency and running costs between the petrol and diesel versions.
The increased popularity of petrol engines among hatchback buyers is an important new trend in the Indian car industry. It is also an indication of the increasing maturity and sophistication of car buyers in India, who are carefully weighing the pros and cons of petrol and diesel versions and not buying diesel merely out of habit.

Maruti Suzuki Ritz’s Namesake

Here’s an interesting piece of information about Maruti Suzuki’s latest small car for the Indian car market called the ‘Ritz’. Before 15th May 2009 (its date of launch), the hatchback was eagerly awaited and was extensively referred to as ‘Splash’ by the media. Somewhere in between, Maruti Suzuki was forced to rename and launch the car as ‘Ritz’ even though the same car is known as the Suzuki Splash in the international market.
The reason for this sudden move came after Maruti Suzuki’s sudden realization that the name ‘Splash’ was already registered as a brand by Ford Motors which had already applied for this name in 2002 with the Controller General of Patents Designs and Trademarks Registry in India. Ford India is planning to introduce a small car in the country next year which it wants to market as ‘Splash’.
When Maruti Suzuki approached the trademarks authorities for introducing its new hatchback, its petition was withdrawn and the car manufacturer was forced to rename it as ‘Ritz’. And that is how the Maruti Suzuki Ritz came to be known as the Ritz. Looks like car manufacturers are clashing over more than just the sales of their small cars in India.

New Electric Car in India by 2011

Bavina Cars India, a new electric car company, is setting up its manufacturing plant in Tamil Nadu. It will launch its new electric car model in India by 2011. Tamil Nadu State government has already allotted 100 acres of land in Special Economic Zone in Ranipat which is currently being promoted by the State Industries Promotion Corp of Tamil Nadu. With an initial investment of Rs.300 crores, the company will be able to roll out 25,000 units annually from 2011.
Currently, the electric car market in India is dominated by sole player Reva Electric Car Company. Reva also marks its strong presence in the overseas markets, especially the UK. With the launch of new models in the country and a competitor, India will have now have more options to choose from.
The overseas model for electric cars is also quite fresh and even Tata Motors is also planning to launch its electric car this year.

BMW skeptical Over Mini Launch

It looks like the German premium car maker BMW, is skeptical of launching its iconic luxury hatchback, the Mini in India. The launch of this hatchback was supposed to happen by the end of this year. BMW had announced its Mini launch plans during the launch of BMW X6, a sports activity coupe in India.
The Mini is a three-door luxury hatchback that was likely to be imported as a CBU in India. The BMW Mini would carry a price tag of Rs20 Lakh. The delay in the launch of this luxury hatchback owes largely because the luxury hatchback market in India is not developed. Moreover, BWM thought the investment to launch a new brand would be substantial in this condition. Any carmaker needs to look at the potential business opportunity before launching a car, especially when it’s a luxury car. BMW Mini would have faced a tough competition with the Fiat 500 if it had been launched in India at the prescribed date.
The German car giant would reconsider the launch of the Mini by the end of the third quarter of the calendar year. BMW competes with European rivals DaimlerChrysler (DCXGn.DE) and Volkswagen (VOWG.DE) in the premium Indian car market. This German carmaker makes the 3 and 5 series in India and also sells its 7 series from imported kits.
To strengthen the dealership network, BMW will set up dealerships in 10 more cities by the end of 2010. Presently, there are 13 dealerships in the country. The company has invested $30 million in India, including setting up a plant in Chennai.
BMW has lined up a slew of launches in 2009 like the new BMW 7 series, the new BMW 3 series, and a diesel variant of BMW X3.

X6 - BMW's Macho Machine

BMW X6, a Sport Activity Vehicle (SAV) from the German premium car manufacturer BMW has been pulling a lot of eyes in India recently. This car is imported in India as a Completely Built Unit (CBU). The BMW X6 comes in two versions the X6 xDrive50i in petrol and the X6 xDrive30d in diesel.
The X6 is world’s first Sports Activity Coupé to be equipped with BMW Dynamic Performance Control that imbues it with excellent driving dynamics. This BMW is equipped with a twin-turbo direct injection V8.
The new BMW X6 has all the agility and elegance of a coupé plus the impressive versatility of a SAV. The car has been named as Sports Activity Coupe as it ensures all the comfort and luxury of the coupe. This seven-seater coupe also provides generous spacing for both the driver and front
passenger.
This luxury SAV offers a unique synthesis of exclusive luxury, sporting dynamics, and powerful style. With a wide range of colors and materials, the BMW X6 really highlight its sporting character to suit individual style and personality. The petrol variant of the BMW X6 is priced at Rs. 83 Lakh while
the diesel is available at Rs. 65 Lakh.
The coupe X6 can be ordered across all 13 BMW dealerships in India. The German car giant has deferred the launch of its luxury hatchback the Mini in India till next year. BMW 7 series, 3 series and X3 are the other models of the world’s largest premium car make that are sold in India.

GM India strong performance attracts US

General Motors India has been termed as a strong performer by its beleaguered parent company General Motors of United States. The Supreme Court of U.S. has shown the green signal to General Motors for its restructuring and to form a brand new entity called General Motors Company.

After restructuring, General Motors wants to regain its control over its strongest performers including its Indian subsidiary. When this happens new General Motors will be able to show a stronger balance sheet and profits which will help it reinvest in development of future technologies.

It is also likely that General Motors may reward the Indian buyers for their continued support by bringing in some of their best cars. General Motors is already selling seven cars under the Chevrolet Brand. It is also likely that the new General Motors will pump in additional investments to make the Indian subsidiary more challenging.

General Motors India faced a minor hurdle when its parent company filed for bankruptcy. The Indian subsidiary worked to restore faith in the company and bring back customers to their showrooms. During this critical period, General Motors launched a campaign called ‘There for you, there for India’ to assure car buyers in India that the company was not leaving the country.

Since June 1, when the parent company went into bankruptcy frenzy, the Indian subsidiary has been showing a strong performance.

Hyundai Motor India reduces prices of Sonata Transform

The country's second largest car manufacturer and the largest passenger car exporter announced that it will pass on the full benefits of the additional duty of excise reduction announced by the finance minister in the recent budget.

Hyundai Motor India Ltd offers its customers a full range of cars starting from the entry level compact Santro to the premium luxury sedan - the Sonata Transform. According to the duty reduction announced in the budget any car equipped with an engine capacity of over 2 litre will have a reduced excise duty. Earlier the additional duty of excise was Rs 20,000 but after the recent budget announcement this has been brought down by Rs 5,000.

The Sonata Transform is powered by a 2.4 litre engine and hence directly benefits from the duty reduction.

Commenting on the new price Arvind Saxena Sr VP, Marketing and Sales said,

"We have always kept our customers in mind and created value for them. We will pass on the full benefits of the excise duty reduction to our valued customers. The Sonata Transform is a premium car with all the options and it had always catered to customers who looked for the ultimate luxury without having to pay exorbitantly for it."

The new Sonata Transform was launched in January, 2009 and is sold in petrol, Diesel and with an Automatic transmission for the diesel variant. The total cost benefit to the customer will be Rs 5,852 and the new price for the Sonata petrol is now an attractive Rs1,384,448 ( ex-showroom, New Delhi).

BMW, Audi race to take on Merc

The battle for the top spot in the country's top of the line luxury car segment is getting more intense and Mercedes Benz's near ten-year-old stranglehold in the market is under serious threat.

While BMW is the odds on favourite having already steered ahead in the first quarter of this fiscal, Audi has emerged as the dark horse in the fight. By the end of last fiscal (2008-09) in March, Mercedes Benz India held on to its leadership position selling 3,537 cars. But the signs of a change in the pecking order were there with BMW exceeding its own target and also selling more than 3,000 cars in the year.

"This market is already challenging and without doubt the competition is getting more and more intense," said Peter Kronschnabl, president BMW India. The three German companies are now racing against each other to expand their presence in the hinterland."Our involvement with tier II cities is growing at a fast pace and we are confident that these cities reflect the future growth pockets and offer good potential. We investing Rs 150 crore to expand to new cities as also to upgrade our existing network," said Dr Wilfried Aulbur, MD and CEO, Mercedes Benz India.

Airlines cut fares to beat monsoon woes

At a time when airlines are struggling to make both ends meet, reduction in fare from the carriers comes as a shocker. Airlines have introduced low fares to increase yield per passenger. The motive behind reducing fares, say industry observers, is to stimulate air travel when business and leisure travel take a backseat during the monsoons.

Air India has set the trend by introducing fares as low as Rs 2,429 on the Delhi-Mumbai route. Fares on short-distance sectors start at Rs 1,979. Air-tickets with these special fares can be purchased between June 27 and July 3 for travel before September 15. Ironically, the carrier has recently requested its higher rung executives to forgo salary for July and has also taken initiatives to curtail monthly operating costs.

Private carrier Jet Airways, which reported losses of Rs 961 crore for FY08-09, has also brought down its fares to Rs 2,000 on Mumbai-Hyderabad sector which otherwise was priced over Rs 5,000. The carrier has downsized its staff and has also downgraded salaries of its employees to improve its financials.

Low-cost carrier SpiceJet has introduced low fares at Rs 1,600 for Mumbai-Jaipur flight for the next three months. These carriers had hiked their fuel surcharge by Rs 400, only a week ago, but reversed their decision.

Samyukta Sridharan, SpiceJet's chief commercial officer, while speaking at the conference in Mumbai, said, "We have special fare schemes to stimulate non-travellers to book tickets. The reduced fares encourage travellers to fly with us. However, passenger service fee and applicable airport charges are in addition to the prices." Says an executive from a carrier, "Seats on the aircraft are perishable commodities. Once the doors of the aircraft are closed, the empty seats do not have the potential to earn revenues. Carriers introduce fares to fill up those vacant seats during lean season."

Flying low

Air India has introduced fares as low as Rs 2,429 on the Delhi-Mumbai route.

Jet Airways has brought down its fares to Rs 2,000 on theMumbai-Hyderabad sector.

SpiceJet has introduced low fares at Rs 1,600 for Mumbai-Jaipur flight.

As rains ground fliers, airlines rain schemes

With passenger load declining in the ongoing lean season, airlines have come up with special monsoon offers to lure leisure passengers. This limited period all-inclusive (except airport tax) offers are nearly 50 per cent lower than normal fares, said airline executives.

Tickets need to be booked before July 3, and travel before September 15. Air India, for instance, offers Mumbai-Delhi, Mumbai-Chennai, Mumbai- Bangalore flights at Rs 2,479, inclusive of all taxes except for airport UDF. The fare from Mumbai to Kolkota is Rs 2,729, while for all short sectors it is just Rs 1,979.

Jet Airways group - inlcuding full service Jet Airways and low cost services JetLite and Jet Konnect - has also aggressively lowered fares in its monsoon offer. "We come out with such offers to exhaust unsold inventory. Past experience had shown good results and seat load goes up by 10 to 15 per cent. Such offers give us top line growth," said Rajshiv Kumar, head, revenue management, Jet Airways.

Jet Airways is charging a mere Rs 250 over its low-cost arms to lure passengers. While the highest fare in Jet Airways for distances above 1,400 kms is Rs 2,750, the cheapest seat offered by Jet Konnect for distances below 750 kms is Rs 1,750.

SpiceJet is offering fares starting from Rs 1,500 for its 18 destinations. Passenger Service Fee and relevant airport charges are charged extra. "These unbeatable low fares will encourage more people to fly," said Samyukth Sridharan, CCO, SpiceJet.

GoAir has announced a special promotional offer for all flights operating from and to Ahmedabad, with one-way fares starting at Rs 1,500. Besides this, the airline is offering complimentary snacks to fliers at the departure hall in Ahmedabad before boarding, the airline said.

Paramount Airways has also lowered fares for the season. For select destinations, a Paramount passenger can avail all-inclusive fares as low as Rs 2,229. Airlines those increased fuel surcharge by Rs 400 early this month are worried about declining traffic.

Hyundai India to roll out diesel-powered i20 on July 7, 2009

Byoyed by the overwhelming response of the petrol-driven Hyundai i20 in the domestic market, Hyundai India is going a step ahead by launching its diesel variant on 7th July, 2009.

Likely to be fitted with a 1.4L common-rail diesel engine, the new variant is likely to be around 15-20 per cent pricier than the petrol-powered super-hatch, but will offer better fuel economy and improved drivability mainly due to the diesel engine’s higher torque output compared to the petrol.

Unconfirmed media reports also suggest that with the introduction of i20 diesel, Hyundai will also launch the 1.4L petrol version, to be available with an automatic transmission. It is to be mentioned that in the international market, Hyundai already sells i20 with 1.4 lire and 1.6 litre diesel engines.

Bringing Hyundai i20 with 1.4 litre diesel engine will qualify the company for the small car excise norms. However, the official company spokesperson refuses to comment on the engine specifications and other details. Once launched it would be pitted against Ford Fusion, the diesel versions of Maruti Swift & Ritz, Skoda Fabia, Fiat Grande Punto et al.



In India, the Hyundai i20 has managed to buck the trend and is still driving up volumes for the company. Even though the company had priced the i20 at Rs. 4.79 lakh (ex-showroom, Delhi), its bookings have exceeded the company’s expectations, thus propelling the company to ramp up its production. Though it could not be official confirmed, but sources have revealed that Hyundai India has increased its output from 1,000 units/ month to roughly 1,500-2,000 units per month.

Hyundai, which already has a market share of slightly more than 20 per cent in the passenger cars segment in India, is looking at scaling it up its market share to over 25 per cent by 2012. And for that, it is firming up plans to roll out new products in India, in order to strengthen and expand its portfolio of cars here.

Suzuki Saudia opens new service center

Suzuki Saudia, the sole distributor of Suzuki vehicles in Saudi Arabia, has recently opened a fully-equipped service center in Philistine Street, Jeddah, in line with its strategy to maximize customer satisfaction through after-sales services and in conjunction with the introduction into the Kingdom of the five-door Celerio sedan.

A presentation on the company’s vision and enhanced customer-care services was held at the center on Wednesday, in which company officials revealed that it will be the first of a series of Suzuki service centers that will be opened across Saudi Arabia, with similar centers coming up in Dammam, Riyadh, Madina and Makkah, in addition to branches in Jubail, Qassim, Tabuk, Taif, Jizan, Khamis Mushayt and Hofuf.

The service center, which has a team of highly experienced professional staff, offers top quality maintenance and after-sales services for the entire line of Suzuki vehicles.

“This service center is the first-of-its-kind among all Suzuki Saudia service centers, and we have invested in building a spacious and well-equipped center that will enable us to effectively implement our plans that revolve around optimizing customer satisfaction,” said Maher Al- Nabawy, deputy general manager, Suzuki Saudia, a part of the Bamarouf Group. “This center, with its well-trained staff, is equipped to handle around 40 cars at a time,” he added.

“We currently employ a total of 300 technicians at our Suzuki-dedicated service centers in Saudi Arabia, all trained at the company’s training center in accordance to the highest standards that have been stipulated by the parent company Suzuki,” he noted. “The underlying objective is to provide a comprehensive range of services that are distinguished by the skill and efficiency of the workforce, and that too at highly competitive prices to satisfy diverse consumer segments,” he stressed.

“We believe that our service network is unparalleled in terms of the geographical distribution, the range of spare parts stocked, and the professionalism and skill of our trained technicians and engineers.” Al Nabawi added that “we make it a point to constantly sharpen the skills and technical knowledge of our technicians to ensure that they are familiar with the latest technologies and are well-prepared to service new models as soon as they are launched in the market.”

In line with the launch of Celerio, Suzuki Saudia has recently hosted special technical training sessions for Suzuki’s Middle Eastern after-sales group recently.
The three-day training exposed participants from the Middle East mostly from Lebanon, Bahrain, Qatar, Oman, Kuwait, Emirates and Yemen dealerships to theoretical and practical details on the three-cylinder Celerio that comes with either a 5-shift manual transmission or 4-shift automatic gear.

The Celerio is a full-option hatchback which includes a radio, CD and MP3 player; double airbags; an anti-lock breaking system; fog lamps; alloy wheels; remote control and power steering. Manufactured by Maruti Suzuki India Ltd., it features a stylish design targeted toward younger drivers. The highly fuel-efficient Celerio is powered by a state-of-the-art and lightweight K10B engine. Aside from its intended youthful base, the vehicle is expected to attract buyers searching for high performance, attractive design, and fuel economy.

Masafumi Harano, group leader of Suzuki for Middle East and Africa Automobile Marketing Group, said the “eye-catching, stylish, fuel efficient and environmental-friendly city car” is built in conformity with the highest performance and safety standards.

Company officials said the Celerio targets the youths and expatriates alike with its retail tag price of SR26,000.

Ghost may prise open India for Rolls-Royce

At about half the price of the firm’s Phantom, the new model will be in showrooms by the end of the year



Car maker Rolls-Royce Motor Cars, part of BMW AG, has said it plans to introduce the Ghost, a new global model, in India by the year-end. This comes right after the launch of marquee brands Jaguar and Land Rover by Tata Motors Ltd on Sunday.

The Ghost, which is to be unveiled formally at the Frankfurt Motor Show in September, will be on display in showrooms in November or December, said Colin Kelly, regional director, Asia Pacific, at Rolls-Royce in a phone interview on Monday.

A formal launch would be followed by events designed for prospective customers only. “Our cars are made to order and so our marketing is made to order as well,” said Kelly. Bookings and deliveries for the car, which will cost nearly double than the popular Jaguar models, would commence in 2010.
“The Ghost is a Rolls you can drive everyday,” is how chief executive Tom Purves had described the car in an interaction with Mint in May.

Indeed, the car comes at a price that is nearly half that of the company’s present offering, the Phantom. The company expects to price the car between $250,000 and $270,000 (Rs1.2-1.3 crore) before taxes and import duties, which can easily double the price. With the less expensive tag, Rolls-Royce hopes to substantially increase the number of cars it sells in India. There are at present around 200 Rolls-Royce cars in the country.

Last year, the firm sold 14 cars in India through two dealerships in New Delhi and Mumbai and it expects to sell about as many cars this year. “(Next year) we expect to sell two-three times what we sold in 2008,” Kelly said.

The Ghost should also help the firm reach 3,000 cars in global sales by 2010. Last year, it sold 1,212 cars worldwide.

According to Kelly, Indian buyers of Rolls-Royce are very similar to counterparts globally. They tend to be hard working wealthy individuals. But they differ in the amount and type of personalization they like to have in their cars. “This could be anything from the person’s initials to the company logo embroidered into the headrest of the car,” he said.

“There are no plans to expand the number of dealerships in India as of now,” he added. The company would, however, look at setting up service only facilities in cities where the number of cars warranted them. It usually waits for a city to have a dozen cars before it considers setting up such a facility.

At present, the Indian market is about one-eighth the size of the Chinese market and one-third of the Japanese market but it’s a gap that the firm believes could narrow substantially in the next few years.
A recent Capgemini-Merrill Lynch Wealth Report noted that India has about 1,000 individuals with at least $40 million in liquid assets. Rolls considers each of them potential customers.