Mercedes-Benz to launch new products in 2010

Luxury car maker Mercedes-Benz on Monday said it would launch up to seven new models, including some variants of its existing products, this year.

Incidentally, the company is launching the new cars at a time when it is engaged in a tough fight with rival German firm BMW for the top slot in the segment.

“We have a plan to launch a total of 10-12 products this year. Of them, we have already launched five since January and the rest will follow during the course of the year,” Mercedes- Benz Board of Management India Member Suhas Kadlaskar told reporters in New Delhi.

He said the new products will include some variants of its existing E-Class sedans.

“We know the luxury car market is poised for huge growth in the country and we want to bring in the new cars to tap this,” Kadlaskar said.

Since January, Mercedes-Benz has launched five products, including luxury limousine S-Guard, which will come at a price of around Rs 6 crore. It had also launched its limousine S-500 L, the sports utility vehicle GL 350, and the sedans E-250 CDI and E-220 I.

The Stuttgart-headquartered company was dislodged from its long-held position of the numero uno luxury car brand in India in 2009 by its compatriot BMW.

However, according to Society of the Indian Automobile Manufacturers in January this year, Mercedes-Benz sold 403 units in the country, surpassing the figure of BMW’s 341 units.

Hyundai: the little carmaker that could be a world player

Hyundai Motor is merely the hottest major automaker on planet Earth. Not bad for a company that drew little but derision from car buyers after its poorly built, problem-plagued Pony subcompact made its debut in Canada in the early 1980s.

In 2009, while two of Detroit's Big Three carmakers -- General Motors and Chrysler -- were put on life support, Hyundai managed to rack up record profits, boosting its U.S. market share by more than a full percentage point, and securing its spot as the world's fifth-largest auto manufacturer, behind Ford.

Meanwhile, Hyundai's upper mid-priced Genesis model was named 2009 North American Car of the Year, the company's quality ratings continued to win acclaim -- it was the top-ranked nameplate last year among non-premium-priced vehicles, according to J.D. Power & Associates -- and it steadily expanded its global footprint.

In India, where Hyundai's wholly-owned subsidiary now produces some 600,000 vehicles a year, the South Korean company is the country's No. 2 automaker, and top vehicle exporter.

Many of the vehicles it makes are exported to Europe.

In China, where Hyundai's assembly plant in Beijing is owned on a 50/50 basis with a state-owned firm, the Seoul-based carmaker ranks as the country's largest non-domestic automaker. It sells all of its Chinese production in China itself, now the world's largest car market.

Elsewhere, Hyundai expects to complete construction of a new plant in Russia this year, and it will break ground soon on a plant in Brazil.

And in North America, Hyundai's 36-per-cent-owned affiliate, Kia Motors, will open a new plant in Georgia by the end of this month, complementing Hyundai's existing assembly plant in Alabama.

Add it all up, and the total worldwide production capacity of Hyundai and Kia is expected to soar to 6.5 million units by 2011, more than double last year's level.

That's plenty to brag about, especially in view of the troubles that Toyota and other competitors are facing these days. But apparently that's not Hyundai's style.

During an extensive interview at Hyundai's gleaming global headquarters in suburban Seoul, Chaz Lee, director of the automaker's overseas marketing group, takes pains to play down the company's recent ascent, while giving much of the credit to company chairman and CEO Chung Mong-Koo, who took over the top job in 1998.

"I think it was due to our long-term commitment about a decade ago when chairman Chung came into current management. He was very focused on improving our quality," he says.

At the time, Hyundai was still smarting from its initial foray into the North American market, where vehicles like the Pony were considered "a joke" and the company was seen as a bottom feeder.

"The first thing he did was invest in quality, all the processes and everything. So all the investment at that time I think now is paying off, it's been bearing fruit," says Lee.

"And also, the changing atmosphere in the auto industry and the world economy made people think differently and behave differently in their car purchasing. And we just happen to have the right product portfolio. They're looking for cars with good design, relatively solid sound quality, and at the same time, very affordable and very lean on fuel economy. So all these factors made us stand out a little bit. But I don't want to call it success."

A bit of false modesty, perhaps?

"No, no, no. Really, there are a lot of things to tackle and still there are a lot of tests we need to get done," Lee insists.

"Especially our brand, and our design compared to other products. Our brand reputation is not noticed as much or appreciated in the market. So we really need to have our brand image enhanced in the future."

Hyundai is working on that, too. It bought half a dozen ad spots for the recent Super Bowl game, it is spending big ad bucks on the Academy Awards broadcast in March, and it is a major sponsor for FIFA's 2014 World Cup of soccer event.

"We need to go big. Now, with Kia, together being the fifth-largest automaker in the world, we cannot be sitting in the back seat with the second-tier brands. We need to be, and we want to be, recognized as a main player," says Lee.

"And the recent opportunities for our marketing, I think it came to us because of the change of the world, really. We were able to efficiently manage our resources to grab those opportunities, by going to the Super Bowl with our first 30-second ad in 2007. And last year we really took a major part in the place of Buick. So all these things came to us because the world atmosphere has changed, and the industry."

Of course, Hyundai is hardly starting from square one.

It is already among the world's top brands, ranking 69th -- just behind names like Rolex and Avon -- in a recent BusinessWeek survey.

But at Hyundai, that's not good enough. The company exudes the same kind of restless, innovative, 'can do' spirit that seems integral to South Korea's DNA. This is a country that won't settle for second-best.

It's a nation that pulled itself out of abject poverty to become the world's 15th-largest economy, all within about 30 years. While China gets all the glory in the Western media as the global economy's rising new superpower, South Korea's story is no less dramatic.

In fact, since this tiny country of 49 million people is a thriving democracy -- unlike China -- with first-class educational institutions, a world-class high-speed rail system, and infrastructure that is the envy of many Western countries, it is now setting itself up as a model for less-developed Southeast Asian nations to follow, such as Vietnam.

"We just go for it. There is continuous challenge until we get things done. And that kind of philosophy is embedded inside us," Lee says.

Besides its primary auto-manufacturing unit, Hyundai operates dozens of subsidiary companies, from auto-parts makers to financial services, construction and information-technology firms.

It's also investing roughly $5 billion US to build its own steel mill in South Korea, so it can provide steel to its own plants. That includes Hyundai's massive complex at Ulsan, the world's largest auto-assembly operation, with annual capacity of more than 1.5 million units.

That's roughly the size of Canada's entire vehicle market, by way of comparison.

Hyundai's next big target: the upscale car market, where it intends to take aim at brands like BMW, Lexus and Mercedes-Benz this fall. That's when Hyundai plans to launch its much-anticipated premium-priced Equus sedan in the U.S. and Canada.

With its expanding market presence in the world's two fastest growing car markets -- China and India -- and its inexorable climb up the rankings in North America and Europe, plus its stranglehold on the South Korean market, Hyundai is in an almost unassailable position. Provided it doesn't lose sight of the things that got it to where it is today, that is.

Lee says Hyundai isn't about to fall down on the job anytime soon.

"We listen to customers and we try to design and build cars that people love. GM, Ford and Chrysler are big companies with a lot of know-how and a hundred years of experience. But in car design and making products, appealing products, I think we've done a little better job."

At Hyundai, that's as close to an outright boast as you're likely to hear.

Suzuki Kizashi to Hit Indian Markets by 2010-End

Official reports have confirmed that the Japanese automobiles manufacturer Suzuki is all set to launch its first ever luxury sports model, which has been specifically designed for the rugged Indian roads, the Suzuki Kizashi.

The company's official website describes the new offering as "One of the most exciting cars of 2010".

Although the official release date of the car has not been revealed by the company yet, word is that it will fall somewhere towards the end of 2010.

The Kizashi intends to give head-on competition to Honda Civic, Hyundai Sonata, Toyota Corolla, Volkswagen Jetta and Skoda Octavia.

Expected to be priced at about 10-13 lakhs, the mid-sized sedan will see an Australian launch in the month of May, and it was already released for the American market in December of 2009.

The new vehicle has been equipped with a Euro IV 2.4 liter engine, six speed manual transmission and CVT.

Ford India to phase out Fusion superhatch

On the sidelines of announcing its dealership rollout pan-India, Ford India Private Limited (FIPL) has stated that it has firmed up its plans to phase out its not-so-successful car, Fusion in the medium term, without revealing any timeframe. The Fusion was launched in the Indian market in 2004 and is available in three variants and the company had promoted it as a combination of a hatchback and sports utility vehicle.



"We will discontinue the Fusion and our focus in the small car segment will be exclusively on Figo in the Indian market. The Fusion was also giving us a relatively small volume and we hope to do well with the Figo," Ford India managing director and President Michael Boneham told reporters in New Delhi. He also maintained that the phasing out is part of a product rationalisation strategy with the firm looking to focus on the compact car segment, which comprises over 70 per cent of the Indian car market that is heading towards the two million mark per year. He said the Figo would be positioned in the small-car segment, competing with cars from the Maruti Suzuki, Hyundai Motor India and Tata Motors stables. He told reporters, “After all, this segment constitutes the bulk of the market and even a 10 per cent annual growth would mean a huge addition to demand.” He did not believe that the premium hatchback segment was the place to be in, given its smaller numbers.

Meanwhile, as Ford India gears up to launch the small hatchback Figo, it has said that it will launch a new car every 12-18 months for the next few years. The Indian arm of the Detroit auto biggie affirmed that that it is better to be a volume player in the country, for which being aggressive in the small-car segment is the way forward. Ahead of its ambitious entry into the compact car segment, the company’s Indian subsidiary Ford India, on Tuesday opened 28 dealerships across 24 cities in the country, with small cities (Tier-II, III) as the main target market growth.

“What we are planning to do here is launch a new car every 12 to 18 months,” Michael Boneham, told reporters recently. Nearly 70 per cent of all cars sold in the country fall in the small car segment. “For us the majority of new launches will be in that segment across the next four to five years,” he said.

Volkswagen to launch new Polo on 2nd of March

After unveiling the all new Volkswagen Polo to the Indian market at the 2010 Delhi auto expo Volkswagen is all set to launch the New Polo in India on the 2nd of March.

Striking design, uncompromising quality and exciting engines that’s what you can expect from the fabulous New Polo, the tough little performer that’s packed with big car credentials.



The cars looks very modern in terms of design with attractive chrome-trimmed louvre insert on the front grille, adds sporty elegance and adds a touch of quality. The stylish halogen headlights provide better vision in all weather conditions.

The New Polo offers a choice of petrol and diesel engines which being fuel efficient and have dynamic performance. The range starts with a 1.2 litre petrol unit which develops 75 PS (55 kW). Volkswagen wil also offer the 1.6 litre petrol engine which develops 105 PS (77 kW). The 1.2 litre diesel variant with 75 PS will follow later.

The New Polo will be available in the following variants: Trendline, Comfortline & Highline.
The new Polo will be available in 6 colours and 2 interior trims.



Some interesting facts.

• Tilt and telescopic is standard on all the 3 trims.
• ABS and Dual airbags on the Highline trim only.
• Front and rear fog lamps on the Highline trim only
• Radio with CD player on Highline only.
• Electronic anti theft immobiliser on all the variants.
• Height adjustable driver seat on the Comfortline & Highline
• Power windows on the front on all the variants and rear power windows only on Comfortline & Highline.

Bugatti set for India drive in 2010!

Volkswagen AG will drive in the fastest and most expensive car in India with the launch of legendary French car brand Bugatti in 2010, a company executive said. Bugatti Veyron, which can hit a top speed of more than 400 km per hour for the sports and coupe models, will cost anywhere between Rs. 50 million (US$ 1.1 million) and Rs. 120 million when it hits the Indian roads by the mid-2010, said the executive requesting anonymity.



Volkswagen, which has become the world’s largest carmaker with its takeover of Porsche, will import Bugatti cars.

The original Bugatti company was set up exactly 100 years ago by Italian Ettore Bugatti in the town Molsheim, then part of the German Empire and a region of France since 1919, and started rolling out high-performance cars known for their engineering as well as artistry. Molsheim became the birthplace of some of the most exclusive and fastest cars in the world.

But the brand was hit when the World War II started. In 1963, Bugattis sold the company to Hispano-Suiza that was primarily interested in Bugatti’s airplane parts business.

In 1982, Romano Artioli, a finance broker and auto dealer, brought Bugatti trademarks rights and set up Bugatti Automobili SpA. But after rolling out only one model — EB 110 in 1991 on the 100th birthday of Ettore Bugatti – the company filed for bankruptcy in 1995.

Volkswagen bought the brand name in 1998 and founded Bugatti Automobile SAS in the very next year. Over the last decade, it has rolled out a number of models including Bugatti EB 118, EB 218 and Bugatti 18.3 Chiron. In 2004, it launched two-door super sports car Veyron 16.4, named after French racing driver Pierre Veyron who won the 24 Hours of Le Mans with a Bugatti Type 57 in 1939. The Veyron debuted in China and Russia in 2007.

The carmaker recently unveiled the Bugatti Galibier 16C concept, which will be launched globally by 2013. The Galibier, touted as the most powerful four-door automobile in the world will be far more expensive.

Tata Nano, world’s cheapest car, set for U.S. debut in New York

The Tata Nano, the world’s cheapest car and arguably the world’s most discussed automotive innovation since the Ford Model-T, Volkswagen Bug and ‘57 Chevy, will make its United States on Feb. 18 in New York — sort of.



The Nano, “the People’s Car” which debuted in India last year amid much anticipation as the newest offering of Tata Motors, is currently available in its native country.

But the Nano (only one) will be make its first United States appearance as a “design achievement” at the Cooper-Hewitt National Design Museum in New York.

The bright yellow edition of the Nano will be on display at the Great Hall of the museum, located at 2 East 91st Street in Manhattan. The Nano will be on display with accompanying literature and pictures through mid-April.

“The Cooper-Hewitt is showing the Tata Nano because, as the world’s most affordable car, it is a design achievement and it has public fancy,” said Cara Mc-Carty, the museum’s curatorial director.

Tata Motors has already passed all European Union crash tests and safety norms and is expended to launch Nano Europe within a year. Tata’s electric vehicle, Indica, was displayed in at the Delhi Auto Expo in January and a hybrid is in planning stages.

Tata has discussed distribution of the Nano in the United States, but there are no definitive plans.

Toyota launches Q world for its customers

Toyota has launched a unique auto show called Q world which will give cutomers the opportunity to see the Toyota Etios concept. The event will be spread across a span of four months from January to April, with the first leg to be conducted in Mumbai.

The event will be held in 10 cities across the country giving the cutomers an opportunity to have a touch and feel experience of Toyota vehicles. The event will also showcase the entire portfolio of Toyota cars along with the future line up of Toyota products like the LC 200. The ten cities to host the event will be Chandigarh, Lucknow, Mumbai, Ahmedabad, Pune, Cochin, Bangalore, Chennai, Hyderabad and Kolkata. The Q World will also have events for fun and entertainment of customers. Here is what the original press release says:
"Toyota ‘Q’ World to come to Mumbai

• •Toyota ‘Q’ World – an exclusive auto show by Toyota – comes to Mumbai on 6th - 7thth Feb 2010
• •The event will span across 4 months from Jan – April in 10 cities
• •Customers across India to get an opportunity to see the Toyota Etios concept
• •An exciting array of vehicles to be showcased exhibiting Toyota quality and technology
• • Customers to get a touch and feel experience of Toyota range of cars with advanced and environment friendly technology

Kirloskar Motor announced today that it will hold the Toyota ‘Q’ World in Mumbai on 6th and 7th Feb 2010 at MMRDA Grounds,Bandra Kurla Complex. The event will be held from 12.00 noon to 6.00 p.m on Saturday(6th Feb) and 11.00 a.m to 7.00 p.m on Sunday(7th Feb).

The Toyota ‘Q’ World, a two day event, will travel across India spanning over a period of 4 months. The Delhi Auto Expo had customers coming to see the world premiere of the Etios concept and its latest technology; however the Toyota ‘Q’ World will take this experience ‘to the customer’.

The customers eagerly awaiting the launch of Etios concept will now get an opportunity, to see the vehicle, in their own city. The exhibit will include an exciting array of 11 vehicles which will give the customers a, never before, ‘touch and feel experience’ of Toyota vehicles. The exhibit includes the newly launched Etios concept and many more interesting and exciting vehicles in the current and future line up of Toyota products like the New Hybrid Prius, New Prado Diesel, Fortuner and LC 200.
The Toyota ‘Q’ World will span across 10 cities namely Chandigarh, Lucknow, Mumbai, Ahmedabad, Pune, Cochin, Bangalore, Chennai, Hyderabad and Kolkata. It will also include various customer engagement events for fun and entertainment of the visitors."

Mercedes-Benz 'bullish' on India, launches 2 M-class variants

Leading global luxury vehicle maker Mercedes-Benz which today launched two variants of the 2010 M-Class here said it was 'bullish' on India in 2010 and keen on leveraging India for its growth strategy in terms of R and D and global sourcing.

"We expect a good year in 2010 and we are hoping to build on the momentum of 2009 when we sold 140 M class, which was double the sales compared to 2008", Dr Wilfried G Aulbur, MD and CEO, Mercedes-Benz India, told media during the launch of its Sports edition and luxury edition of its M-class today.

The company is investing Rs 200 crore in revamping the network in terms of creating new showrooms, upgradation of showrooms and facilities and entering new cities, he said.

It is planning a new Benz centre in Delhi with 26 car display, a 12-car display in Hyderabad and a 16-car display in Chennai, he said apart from investing in manpower.

"We are growing aggressively and have a clear strategy in place for leveraging India aggressively for R and D and global sourcing", he said adding "China and India are high on our agenda for global sourcing".

The company also plans to launch 12 products in 12 weeks of the current year, he said.
The firm was looking at introducing the SLSAMG, a sports car, to India by this year end and already had six confirmed bookings from places like Hyderabad, Mumbai and Delhi.

It also plans to introduce the E-Coupe. However, the company is not looking at introducing hybrids since most are left hand drive cars.

Ford boosts dealers ahead of Figo launch

Ford India, preparing for the launch next month of its new [previous generation European Fiesta based] Figo, has signed up 28 new dealers which opened their doors this week.
The new retailers take Ford’s network to 164 facilities in 97 cities across India, an increase of 30% in the past two years.

The introduction of the Figo will mark a significant shift for India’s role in the global ONE Ford strategy that is transforming how the company brings more small cars to market.

It has invested US$500m to double annual production capacity to 200,000 units at its Chennai manufacturing facility which positions it as a regional centre of excellence for small car engineering and production.

Export Figos will also be produced at the plant and the factory will also produce diesel and petrol engines for local vehicle production and export within the Asia Pacific and Africa region.

The Figo hatchback was designed and engineered to compete in India’s small car segment, which accounts for more than 70% of the new vehicle market. It uses Fiesta small car platform architecture already familiar to Indian customers as it underpins existing sedan models built and sold in India.
Ford India president and managing director Michael Boneham said: “Growing our dealership base, building strong business fundamentals and getting closer to our customers are areas of high priority as we gear up to launch our new Figo and enter this high volume segment in 2010.”

Placing dealerships in close proximity to city centres – where they are conveniently located for customers – has been a core focus area as the automaker continues to broaden its local product range.

Boneham added: “As we expand, we are making sure that our low cost of ownership message is heard by people making buying decisions.”

All the newly-inaugurated showrooms are 'Brand@Retail' dealerships built according to a global standard to improve the ownership experience and ensure a long-term association with the b;ue oval brand.

Boneham said Ford India had been working with dealers to ensure facilities met specific requirements. Staff were trained according to Ford’s global guidelines to meet the demands of increased volume selling. The automaker has tripled dealer sales people from 480 in 2009 to nearly 1,500 this year.
In the past two months, over 1,700 dealer personnel from 97 cities attended in-depth training sessions on the new model.

New dealers have opened in New Delhi, Sangrur, Haldwani and Gwalior in the north; Durgapur, Dhanbad and Guwahati in the east; Hyderabad, Chennai, Warangal, Vellore, Salem, Vijayawada and Malappuram in the south; and Bilaspur and Mehsana in the west.

There is also a new showroom in the East Delhi metro rail station – the first time Ford has displayed its products in such a location in the Asia Pacific region.

New showrooms and workshops also are now located in Jaipur, Thane, Ahmednagar, Pune, Vapi, Ahmedabad and Cochin.

Volkswagen to make India low-cost export hub

Volkswagen AG will make India a low-cost manufacturing hub catering to select export markets as Europe’s largest car maker tries to emulate the success of global rivals Hyundai Motors and Suzuki Motor Corp. Volkswagen will export from the second quarter of next fiscal fully-built models and completely knocked-down kits of its hatchback, Polo, to South East Asia, Middle East and Africa from its Pune plant, a senior executive said.

The company will launch Polo this month-end in India. The India-made vehicle at Rs 4.5-6 lakh comes at half the European price as the company has been able to ram down costs by sourcing 80% of auto parts from the domestic market. It will help the Polo compete against Hyundai’s i20, which too is exported in large numbers to these markets.

"We are looking at all potential markets for export," said the executive who asked not to be named, adding that many markets in South East Asia and Africa would prefer the India-made Polo for its competitive pricing.

Car exports grew 30% to 3.3 lakh units between April and December last year from a year ago. Hyundai, which shipped 2.15 lakh cars, and Maruti with 1.05 lakh cars were the biggest contributors. Volkswagen, which has set a production target of 50,000 for Polo in 2010, is looking to sell up to 35,000 units in the domestic market and export the rest. The company would ramp up production next year after it launches the sedan version of the Polo, which too is to be exported.

The company’s new plant at Chakan near Pune can manufacture 1.1 lakh cars, including the Polo, other small car models and Skoda Fabia.

Volvo Launches The World's First Large Premium Executive Cars

Volvo Launches The World's First Large Premium Executive Cars Under 120 G/Km - The New 119 G/Km Drive Versions of the Volvo S80 and V70



Car UK has revealed 119g/km DRIVe versions of its S80 executive saloon and V70 premium estate, the fourth and fifth body style it's launched delivering CO2 emissions below 120 g/km.

Delivering 109bhp and 240Nm of torque, the modified 1.6 litre turbocharged diesel engine provides improved fuel economy by 5.1mpg to 62.8mpg on the Combined Cycle, increasing both cars’ range to nearly 1100 miles.

Both cars fall into Vehicle Excise Duty Band C - costing motorists just £35 per year - and Volvo estimates the new 119g/km engine reduces annual carbon emissions by 150kg over the S80 and V70 DRIVe’s previous low of 129g/km.

Volvo believes the two new cars offer the best environmental performance in their respective classes. Both cars provide lower Benefit-in-Kind tax bills for company motorists and fuel savings - 60 litres per annum - equivalent to receiving a free tank of fuel each year.

Like all DRIVe models, drivers do not have to compromise on high levels of comfort and specification with both models being available to order in SE, SE Premium, SE Lux and SE Lux Premium trim levels.

Volvo has employed two main techniques to reduce CO2 emissions further on both cars.

Intelligent battery recharging ensures that the car’s control system only allows the alternator to charge the battery when the engine is operating at low load, for instance when driving downhill. In addition the belt that drives the alternator
and air conditioning compressor benefits from reduced friction helping lower fuel consumption and emissions.

"There has been a swift pace of development since the launch of our first 119-gramme models in Paris in autumn 2008. Now that we have brought two of the larger models in below the magical 120 g/km limit, few of our competitors can now match us when it comes to offering customers an extensive range of low emission cars," says Volvo Cars President and CEO Stephen Odell.

India's Tata Motors swings into third quarter profit

India's top vehicle company Tata Motors said, its domestic operations swung to a third-quarter profit from a loss a year earlier as demand for cars rose, aided by new launches.

The company, which makes cars and trucks, reported a net profit of four billion rupees (86 million dollars) for the three months to December, compared with a net loss of 2.63 billion rupees a year earlier.

The earnings did not include data for British luxury icons Jaguar and Land Rover, which Tata Motors bought from ailing Ford Motor Co for 2.3 billion dollars in March 2008.

The performance was slightly below market expectations. Analysts had expected a profit of close to 4.3 billion rupees.

Revenues jumped nearly 90 percent to 89.29 billion rupees for the quarter, a company statement said.

"Introduction of new products and strong sustained growth in the existing portfolio, along with government stimulus has driven domestic demand revival," the company said in a statement.

India's large automakers have seen a revival in sales in recent months on improved consumer demand, government stimulus packages and fresh launches.

Tata Motors sold 165,413 vehicles including overseas sales in the quarter, a jump of 67.5 percent from the same period a year earlier.

The company's shares fell 2.92 percent or 20.9 rupees to 694.35 on the Mumbai stock exchange, ahead of the release of its earnings.

The company, which introduced the world's cheapest car, the Tata Nano, on the roads in July last year, said it sold 17,357 Nano cars up to December, with plans to ramp up further.

The jelly-bean shaped Nano is being produced at present from existing plants after the company was forced out of its planned factory in eastern India over a land dispute in 2008.

Nano cars are expected to roll out from a new plant in western Gujarat state early this year, media reports said.

Tata Motors says it faced the challenges of rising input costs and a possible hike in interest rates.

"The withdrawal of government stimulus, rising input costs and an increase in interest rates are concerns going ahead," the company's chief financial officer C. Ramakrishnan told reporters.

On Friday, India's central bank announced a marginal tightening in monetary policy, by raising the cash reserve ratio for commercial banks by 75 basis points to curb inflationary pressures.

Rising raw material costs pushed Tata Motors' operating profit down to 12.8 percent in the quarter, from 13.36 percent in the previous quarter ending September, the company said.

Analysts said the company may ride through these challenges by showing higher sales growth.

"The company has said that margins could be hit as inputs costs rise, but we expect volume growth to offset this, as domestic demand is strong," said Vaishali Jajoo, analyst with Mumbai-based Angel Broking.

Easier Loans Boost India Auto Sales

Maruti, the local unit of Suzuki Motor Corp. and India's biggest car maker by sales, posted a 33% rise in sales in the past month at 95,649 vehicles.

Sales in January are the highest ever for the company in a month, it said. The pervious high, 87,807 vehicles, was in November.

Maruti's local sales grew 21% to 81,087 vehicles, while exports jumped more than threefold to 14,562 vehicles. Local sales in January were also its highest ever, beating the previous record of 76,359 units sold in November.

Auto sales in India have remained robust since February last year as the federal government provided incentives to purchase new vehicles through tax cuts and commercial banks lowered interest rates.

The auto industry estimates demand in the January-March period to remain strong due to expectations people would buy more vehicles before India implements new emission.

The federal government is adopting more-stringent emission norms, equivalent to the Euro-IV standards, in 13 of India's biggest cities by April 1. Auto makers are required to invest in upgrading their vehicles to comply with the rules and a part of the incremental costs will likely be passed on to customers.

The local unit of Hyundai reported a 42% rise in total January sales at 52,635 vehicles. Local sales rose 41% to 29,601 vehicles, while exports rose 43% to 23,034 vehicles.

TVS Motor, a maker of two- and three-wheeled vehicles, said its sales rose 12% to 125,578 units in January. The company's motorcycle sales surged 24% to 54,698 units, while scooter sales grew 43% to 25,509.

TVS Motor, which also makes mopeds, said its exports rose 15% to 16,074 units.

Three-wheeler sales rose more than four times to 1,710 units in January from 466 units a year earlier.

The company currently sells three-wheelers in some Indian cities and plans to launch them across the country in the next few months.