Japan's Nissan Motors may set up a new plant in India to manufacture an entry-level car that it plans to roll out at the Rs 2.5 lakh price point through a joint venture.
Kiminobu Tokuyama, MD and CEO of Nissan India, said the company expected "very large" volumes from the new car that would be pitched in the Maruti Alto category. Hinduja group company Ashok Leyland, Nissan's India partner for light commercial vehicles, is one of the companies the Japanese auto major is in talks for the JV.
Tokuyama refused to identify the other companies Nissan was talking to and said "details are being worked on."
Nissan has multiple partnerships in India and will launch the Micra compact from its Chennai factory in July. While it has partnered group company Renault for the manufacturing set-up at Chennai, it will sell cars in a marketing and distribution tie-up with Hover Automotive India. The company has also partnered Renault and Indian two-wheeler major Bajaj Auto for a ultra-low cost (ULC) car, while tieing up with Ashok Leyland for LCVs.
The new entry-level car, that the company will position between its ULC and the Micra, will be yet another partnership for the company. Tokuyama said since the model would be in the heart of the Indian car market that accounts for the majority of sales, targeted volumes are likely to be substantial, thus requiring a new manufacturing facility.
"A different manufacturing base for this is one of the alternatives," he said, indicating that the car may not be manufactured at its Chennai factory. "As we finalise our strategy for the entry-level car, we will work out the best options." Nissan-Renault's Chennai factory has annual capacity of 4 lakh unit that is expected to be used by both the companies equally for their products. Nissan plans to use the location for making the Micra compact; a new sedan that it plans to roll in by 2011; a multi-purpose vehicle; LCV and one more model.
Hover is expanding the retail network as Nissan expands its portfolio. It has ten dealerships and hopes to expand this to 80 by 2013, by when it hopes to have a 9 models, including 4 imported.
Will switch to BS IV from today (1st April)
Fiat India Automobile Ltd (Fial) has no plans to increase prices of its cars at the moment, keeping in view the Euro IV emission norms which will be effective from April 2010. From April 1, 2010, 13 cities will switch to Euro IV. Earlier, industry experts said that the Euro IV emission norms, to be effective from April 2010, would force an upward revision of prices as carmakers were making significant investments to upgrade vehicle engines to make them Euro IV compliant.
Fial president and CEO Rajeev Kapoor said, “At the moment, we don't have any plans to increase the prices of our cars due to Euro-IV emission norms. We will follow a wait and watch policy and observe other car manufacturers, then only any decision will be taken.”
On being asked about the sales, he added, "This year has been pretty good for us. We would be closing this financial year, with 24,000 units. Fiat Punto was launched in mid of the current fiscal year, and it is doing extremely well. So far the next financial year is concerned, we are targeting to sell 48,000 units that include, Fiat Punto and Fiat Linea."
He added further, "The company would launch Linea Turbo Jet and Punto 90 bhp by June 2010. Also, we are working and expect to roll out Punto's CNG variant by the end of this fiscal year."
Commenting upon small car, he added, “We are developing a new compact car for the domestic market, which will be unveiled in early 2012. The car, being developed for the Indian market will incorporate inputs from Tata Motors.” Fial is a 50:50 joint venture between Fiat Group of Italy and Tata Motors.
He added that the company had a long tradition of producing small cars. The new car to be unveiled in 2012 would be manufactured at Fial's production facility at Ranjangaon plant, which has an annual capacity of manufacturing 160,000 cars and 350,000 engines, besides 300,000 parts and accessories. The plant is currently manufacturing the Palio Stile 1.1, 1.6 models, Linea and now the Grande Punto. The facility also manufactures Fiat's successful 1.3 litre Multijet Diesel Engines and 1.2 and 1.4 litre Fire Gasoline engines. The plant will also produce Tata passenger and next generation cars.
At present there are 103 Tata-Fiat dealers across India and Fial is planning to ramp up to 124 dealers across the country by mid-2010. Meanwhile, the company launched two new Grand Punto variants: Fiat 1.2 Fire Dynamic and Fiat 1.2 Fire Emotion in the hatchback segment in Chandigarh.
Toyota Kirloskar Motors (TKM), the Indian subsidiary of the Japanese car major that is currently facing some roadblocks with its hybrid car Prius in the global markets, is hopeful of working out a subsidy for the car as it enters the Indian market as a completely built unit (CBU) in March this year.
Currently, CBUs attract a duty of over 100 per cent in India, and the Prius is expected to cost between Rs 26.55 lakh and Rs 27.86 lakh here thanks to the high customs duty. The company has been in talks with the Centre since the last six months, and is eagerly waiting for this year’s Union Budget to have some good news for them.
Hiroshi Nakagawa, managing director, TKM said, “We are expecting the government to offer some incentives for buying an environment-friendly vehicle,” adding that the quantum of incentive is not specified. Toyota India feels that this is not just any other imported luxury vehicle and that the government could allow an incentive in the form of a subsidy to encourage the sales of ‘green’ cars.
TKM plans to sell around 200 units of the car this year. Prius is the world’s first mass-produced and largest-selling hybrid vehicle, having sold nearly 1.5 million units so far. Toyota has already received orders for 54 units in India.
The global trouble with Prius follows close on the heels of Toyota’s recall of 8 million cars (including Corolla and Camry) around the world because of sticky accelerator pedals. The Prius was recalled for brake software flaws. When asked if this could impact the launch of the car here, Nakagawa said that TKM would go ahead with its India launch plans as usual.
TKM had initially approached Toyota Motor Corporation for subsidies, but was advised to talk to the government of India.
As a part of the launch campaign, TKM is organising road shows across the country, and also showcasing the vehicle at auto shows to enable the potential consumer to have a touch and feel of the Prius.
Meanwhile, the company is all set to go ahead with the production of its new car Etios that will be available in a hatchback and a sedan version. Production is scheduled to start from December this year at its Bidadi plant and the car will hit the roads during the first quarter of 2011 calendar year. The company had sold 55,497 units in the country in 2009 and targets to sell 70,000 units this year. In 2011, however, TKM plans to sell 70,000 units of the Etios, taking its net sales number to above 1.4 lakh.
As people become more comfortable with the hybrid technology, global manufacturers are rushing to get it right and launch their hybrid cars. Recently Toyota launched its hybrid car, Prius, in India.
While the rest of the auto manufacturers were sweating it out with their hybrid car competition, Hyundai maintained a low profile. But now seems to be the right time for the Korean car manufacturer to join the race. Hyundai is all set to unveil its new Sonata hybrid during the upcoming New York Auto Show which is scheduled in April. Soon after this Hyundai hopes to launch its own plug-in hybrid some time in 2013.
The hybrid Sonata is equipped with a 2.4-liter engine mated to a six-speed automatic transmission coupled with a 30kW electric motor and a 1.4kWh battery pack. The battery pack will use lithium-polymer batteries rather than the NiMH batteries used by the other hybrids in its class. The polymer batteries are said to be more durable and cheaper to manufacture.
The Sonata hybrid will run on a parallel hybrid system. An electric motor and gas-burning engine will work in concert to increase fuel economy. It will be the first mass-produced vehicle to feature a lithium-ion battery under its hood.
Indian customers have still not warmed up to the concept of hybrid cars. One among the many reasons is that they are really expensive and so far the government has not done anything to bring relaxation on import duties.
Honda cars have a fan following in India but still when Honda launched its hybrid Civic in India in June 2008; it could not manage to get a warm response, mainly because of the price factor. But still, after the launch of Toyota Prius in India which is priced at around Rs 26.5 lakh and onward will give a tough competition to Hyundai’s hybrid Sonata when it is launched in India.
No words have been spilled on the pricing of the hybrid Sonata, but considering the technology, we can assume that it will cost much more than the petrol engine variant Sonata which are priced at Rs.13,84,841 and onwards in India.
Volkswagen, Europes largest car maker, launched its much awaited premium hatchback, Polo at a price of Rs 4.34 lakh for the petrol variant and Rs 5.32 lakh (ex-showroom Delhi) for the diesel variant.
"India is a key market for our overall strategic growth plans and with launch of the Polo, it affirms our commitment to offer quality products to customers at affordable prices," said Neeraj Garg, Member of Board and Director, Volkswagen Passenger Cars, Volkswagen Group Sales India. Deliveries of the new 1.2 petrol variant will begin from March and the diesel variant in May.
VW will manufacture the Polo from its Chakan plant with an annual capacity of 1.11 lakh cars. The Polo offers some standard features like the tilt & telescopic steering and the green-tinted heat-blocking glass.
VW which currently markets the iconic Beetle, Jetta, Passat and the Touareg sports utility vehicle, expects the Polo to be a volume puller and a money spinner for the segment.
The Polo which will compete with the Hyundai i10 and the Maruti Suzuki Swift will have a localisation level of 50% .
