Mitsubishi may launch Thai eco-car in India

Mitsubishi Motors, Japan’s fourth largest carmaker, is looking to grab a slice of the 1.2 million per year Indian small car market and is mulling the launch of a compact family hatchback over the next three to four years.

Although the company has been in India for more than a decade, the absence of a compact car has affected its market share. Mitsubishi is present only in the premium sport utility vehicle (SUV) and upper mid-size sedan segment.

According to sources, the company is planning to bring in the new compact car it is developing for the Thai market under the eco car project banner floated by the government there, aimed at attracting investments into the Southeast Asian country.

The Japanese company, which has a technical tie-up with the C K Birla Group-promoted Hindustan Motors, aims to launch the small car in Thailand in the first half of 2012. This car is built on a entirely new platform and sports a 1.3-litre petrol engine.

The company may have to retune this engine and decrease its capacity in India, to take advantage of the excise duty norms laid out by the government. In India, cars lesser than four metres in length and with engine capacity of not more than 1.2 litres in petrol and 1.5 litres in diesel fall under the lowest tax bracket for passenger vehicles.

When asked, company officials declined to comment.

The small car project was indefinitely put on the back burner by the company last year, as scarcity of funds following the economic meltdown forced it to freeze earlier plans, which included the launch of the compact car in 2011-12 in India.

The plans also included infusion of fresh capital to increase the capacity of the Chennai vehicle plant multi-fold to 1,00,000 units from about 12,000 units annually.

It actively pursued plans of having a ‘world car’ from India for which it was looking at many of its existing small car models. Mitsubishi presently sells the Pajero, Outlander, Montero, Lancer and Cedia in the Rs 7.75 lakh to Rs 38 lakh range.

The development of the eco-car is funded by the Board of Investment of Thailand. A total outlay of Baht 8 billion (Rs 1,100 crore) is earmarked for the project. The project also complies with the condition earlier set by the board, which requires a minimum production capacity of 1,00,000 units per annum.

Nissan Motor Company, Japan’s third largest car producer, was the first company to have developed the eco car when it successfully launched the ‘March’ compact car last month. The same car is slated to hit Indian roads in June but will be renamed Micra.

The eco-car project offers car manufacturers significant corporate tax exemptions for at least five years, provided production reaches 1,00,000 units per year within the five years. Besides, car manufacturers are supposed to meet the Euro-IV norms.

New Exotic Detroit 2010: very aggresive styling

One of the eye catching displays over at GM is the Buick Regal GS. The Regal is basically the European Opel/Vauxhall Insignia rebadged as a Buick for the US and Chinese market (Buick is a highly regarded marque in China). This GS showcar features a potent performance package – 255 bhp/400 Nm 2.0-litre Ecotec turbo engine with power going to all wheels via a six-speed manual gearbox and electronic LSD.

Acceleration from nought to 60 mph (96 km/h) is “less than six seconds”. The Vauxhall Insignia VXR, which has a 320 bhp 2.8-litre Ecotec V6 turbo does the same sprint in 5.8 seconds. The Regal GS features a lowered body and aggresive styling that mimics the VXR, except that it wears Buick’s signature “waterfall grille”. The show car wears 20-inch wheels.

That front HiPerStrut suspension helps reduce torque steer and maintain negative camber during cornering, improving grip and feel while isolating undesirable feedback. The GS features Brembo brakes with cross-drilled rotors, four-piston aluminum calipers and uprated pads. Interactive Drive Control System (IDCS) chassis technology allows the selection of three modes – normal, sport and GS – that change suspension settings, throttle response and steering sensitivity.

Inside, the Regal GS features a full black interior, sport shifter, a suede-covered, flat-bottom steering wheel and Recaro seats with four-way lumbar support and cushion extensions.

Luxury 2010 new ABT Golf VI GTD

The ABT Golf VI GTD is based on the new Volkswagen Golf TDI which have improved both power and torque to give it 140kW (190hp) and maximum torque of 390Nm. The ABT Golf VI GTD diesel engine could reach 100 km/h in a 7.1 second with a top speed of 230 km/h.

Renault to invest in car engine facility in India

French auto maker Renault, still battling financial blues, is planning to set up an engine and transmission facility in India with Nissan, its partner. This new plant is expected to come up adjacent to the vehicle manufacturing complex of Renault-Nissan at Oragadam, near Chennai.

A powertrain plant will allow Renault to locally supply the engines and transmissions for the troubled Logan sedan to erstwhile partners Mahindra & Mahindra (M&M) when the latter launches a new version of the car. This would drive down the cost of the Logan substantially and make it more competitive, as the engine and transmission unit accounts for 35-40 per cent of the total cost of the car.

M&M is presently forced to procure a variety of engines and transmission for the Logan directly from Renault’s manufacturing base in Romania and Spain, after paying hefty import charges. M&M imports the 1.4-litre and 1.6-litre diesel engines and the 1.5-litre petrol engine for the Logan. M&M on Thursday had announced a reduction of as much as Rs 80,000 on the Logan, although no engineering changes were to be made to the car. M&M last week bought Renault’s stake in the loss-making joint venture company, Mahindra Renault Private Ltd, taking full management control.

Rajesh Jejurikar, chief of operations, automotive division, M&M, said, “Renault has independent plans for making engines locally. We will source the engines for the Logan from them at later stages.”

When asked, a Renault spokesperson confirmed the move, stating, “Having an engine and transmission plant in India is a part of Renault’s long-term strategy. This plan was put on hold when the financial environment had deteriorated but now it has been revised. However, there is no final decision taken on the time line for the new facility.”

Although financial details of the engine plant has not been made public by either Renault or Nissan, typically an engine and transmission plant entail a minimum investment of anywhere between Rs 900-1200 crore, depending on the size of the plant.

This new plant will cater to Renault, Nissan and M&M when it comes onstream in the next few years. Although Nissan and Renault would largely make use of similar engines, both companies will have the liberty to tweak the engine power according to their requirements.

Both companies will also look to share vehicle platforms and technology to save on costs. The south India plant of the joint venture company has seen an investment of around Rs 4,500 crore and will have a total capacity of 400,000 units per year.

M&M, market leader in the utility vehicle segment, is planning to make multiple use of the platform on which the Logan sedan is based to make it more commercially viable. Though the Mumbai-based company lacks expertise in making cars (which includes design, engineering and total development of the vehicle from scratch), company executives say it is in talks with Renault for this.

Five Million WagonRs sold worldwide

Suzuki Motor Corporation announced that the total worldwide sales of the tall boy WagonR has reached 5 Million units at the end of February this year. While 5 million units is a huge number, Japan contributed 3,498,000 while Indians and Chinese bought 832,000 and 330,000 WagonRs respectively. Apart from these three countries, 340,000 units were sold in the rest of the world. The Indian sales figure is not even close to the Japanese figure because in Japan, the WagonR has been on sale for four generations while the second generation of the Indian WagonR will be launched on April 23rd. Read the previous article below.

The WagonR has been on sale in various countries (66 to be precise) and has been a very successful model largely because of its practical nature. It has twice won the Automotive Researchers’ and Journalists’ Conference of Japan (RJC) Car of the Year award and has been the top-selling minivehicle in Japan for seven consecutive years.

Maruti will launch the all new WagonR on 23rd April. It is based on the all new 4th Generation Japanese Domestic Market (JDM) WagonRs platform and features all new powertrain and suspension systems. The new WagonR will be powered by the K10B 3-cylinder engine currently doing duty in the A-Star and Estilo. The new engine promises improved performance and a huge improvement in fuel efficiency – ARAI figures are 18.9km/l, just 0.7km/l away from the A-Star. With more outright space than its competition (and siblings), the new model is expected to set benchmarks for the segment in terms of space. It will have a stiffer chassis and tailored blanks are used all over and these specially treated, sandwiched and layered pieces of steel help provide stiffness without adding wasteful bulk. The new WagonR also features an all new subframe that carries the powertrain and suspension. The lower arms are now pivoted on two points on the sub-frame against the single point pivot on the earlier model. This will improve driving dynamics by a large extent while reducing NVH levels to offer a refined drive.

The new WagonR comes loaded with kit right from tilt-steering, ergonomically designed gear knob, electrically operated ORVMs, new HVAC (Heating Ventilation and Air Conditioning system) design, improved rear legroom, storage tray under co-driver’s seat, dual-tone interiors, new steering wheel and lots more.

On the sidelines of holding a sneak preview of the model, Mayank Pareekh, executive officer, Marketing and Sales, MSIL, said, “It’s not a minor change and everything is new in this model. Usually, the company spends around Rs. 40-50 crore on refurbishing any existing model for it to be launched in a new avatar. But in the new WagonR, MSIL had spent more than Rs. 290 crore besides the investment from vendors. A lot of investments have gone into the development of the product to make it an optimal choice for the Indian consumer.” Pareekh said as of now MSIL would only be manufacturing the petrol version of the WagonR which would give more power and fuel efficiency.

He also added that, “The hatchback is India’s No.2 selling car only after Alto and we hope to retain this leadership position with new WagonR.”

Maruti Suzuki’s New K-Series Wagon R To Be Launched On April 23

Maruti Suzuki India (MSIL) is all set to introduce a new version of its second-best-selling car, the WagonR. A Rs 290-core investment had been made by the company for the development of its new car which will hit roads through the dealers across India on April 23.

Though the New Maruti WagonR has not yet been displayed on any platform, but a handful group of journalists were given a sneak peek at the car by Maruti.

The K-series WagonR model shows more taller longer and spacious stance than its predecessor. It will feature the newly developed K-10B engine from the popular K-series engines which is also part of the Zen Estilo and the A-Star. The price for the new Maruti WagonR model is still not revealed, though it is expected to be slightly above the previous models price range of Rs 3.30 to 3.50 lakh. The vehicle will be sold in three variants – LX, LXI, VXI.

Mileage is expected to be around 18.9 kmpl under test conditions by MSIL. The car will be features a cable-type transmission, which makes gear-shifting an easier process. The new HVAC design also allows for superior cooling. MSIL will be obtaining 93% of the total car parts for the new WagonR locally, while the rest will be imported from Japan.

MSIL currently only has plans to market the petrol version of the new model. The new Maruti WagonR also has the basic qualities of the previous version, which has sold more than 8.5 lakh units since its launch in 1999. The company hopes to retain the position and in fact do better with with the launch of its new model.

Get Toyota Fortuner Brakes Upgrade From Toyota

Toyota has been feeling the heat of car-recalls and problems discovered with its vehicles in past. Although the cars by Toyota are really nice, but there are scopes of improvement with almost all cars. Toyota Fortuner is a mighty SUV from Toyota and had similar disk brakes as Toyota Innova. Based on the feedback from the customers that the brakes felt not-so-good, Toyota has improved the brakes of Fortuner and now it get the bigger disks and better calipers, same as that fitted in the Toyota Prado.

The new brakes, being larger and more effective than the previous ones, perform with more ease. These upgraded brakes are now standard with Fortuner SUVs made after February 2010.

If you have bought your Fortuner recently and are not happy with the brakes, you can contact Toyota and you may get an upgrade for free. This is done by Toyota on case-by-case basis if a problem is reported by a customer.

It is a welcomed step as by these kind of measures, the customers really feel that the car seller cares for their convenience and safety.

Hyundai to launch Santa Fe in India this year

Korean automobile major Hyundai Motor India Ltd would introduce its popular Sports Utility Vehicle 'Santa Fe' in the Indian market as a Completely Built Unit (CBU) this year, a top company official said.

Santa Fe was first introduced globally in 2001 as Hyundai's first SUV.

"We will bring the Santa Fe SUV to India this year. It will be completely built unit. But after two-three years we may consider it for manufacturing as (Completely Knocked Down) unit", company's Managing Director Hang-Woo Park told reporters at the sidelines of a function here.

HMIL Marketing and Sales Vice president Arvind Saxena said the existing SUV, Tucson, would not compete with Santa Fe as both are built on different platforms. "There are no plans to give a facelift to Tucson.It will not compete with Santa Fe". However he declined to name a price for the new variant.

On plans to introduce a 800cc small car, he said it was in the development stage and was planned to be launched in India by 2011. HMIL had invested close to Rs 800 crore on producing the car, whichwould be slotted below Hyundai Santro, he said.

Saxena said the recently launched upgraded version of Hyundai i20 had received very good response from the market.

He said all of Hyundai's models would be given aa facelift. "You know the segments we operate in. We will give a facelift to all models", he said. The Hyundai stable currently offers Santro, i10, i20, Accent, Verna and Sonata models.

He said HMIL planned to sell around 5.25 lakh cars this year, of which 50 per cent is from the domestic market.

Saxena said the number of dealerships would be increased to 320 from 289 at present by the end of 2010.

He claimed the company has a 20.8 per cent market share in South and aimed to increase it to 22 per cent by year end.

Saxena said the company has also identified newer export markets and may export to countries like Vienna, New Zealand, Russia and Australia."Already we are exporting to 110 nations. We want to add another 10 more markets this year", he said.

Park and Saxena were here to officially inaugurate HMIL fourth dealership 'V3 Hyundai' in Chennai.

Cars Launches in India in 2010

The auto market in India is getting more competitive by the day and auto enthusiasts are waiting with bated breath for the release of upcoming cars in 2010. There are a slew of launches slated for this year and among the list of upcoming cars in 2010, are cars from various categories having innovative features, in tune with the current user needs. The assorted list comprises family cars, sports utility vehicles and the highly resourceful multi-utility automobiles. The article explores few of the much awaited upcoming cars in 2010.

Hyundai Avante:

Hyundai Avante will be the refurbished version of the Elantra. The innovative details and contemporary looks have added to the appeal of Hyundai Avante. Hyundai Avante will have a roomy cabin, advanced instruments and soothing blue backlighting. Twin front airbags, digital climate control and refined machine make up the other features. The car looks best from the rear with the corolla type tail lamps and chunky bumper. Hyundai Avante would have 2 litre DOHC petrol engine and a 1.6 liter CRDi diesel engine. It would be priced between Rs. 9-11 lakh.

Nissan March:

Nissan March marks Nissan's entry into the automatic passenger car market and it will be launched in the A segment and will have 80% of localization. Nissan March is one of the nine cars the company plans to launch in the Indian auto market.

Skoda Fabia Combi:

Skoda is set to launch Fabia Combi at a price less than Rs 10 lakh with main focus on comfort, mileage and performance. Although Ford Fusion might pose a challenge, Fabia Combi will create its own place in the heart of Indian car lovers. Fabia Combi will compete with Tata Indigo Marina and Chevrolet Optra SRV. Fabia Combi is 7 mm longer and 46 mm higher and has headlamps that carry a distinct look and traditional front grille. The vertical bars and Skoda logo complete the look of the car. Additionally there will be some radical changes in the interiors of the Fabia Combi.

Audi A5:

Audi A5 is a delight for Audi lovers. Audi A5 is a coupe that changes the concept of car design and it is in sync with the modern designs. Audi A5 has a vintage appeal which is accentuated with the uber chic charm and flat roof enhanced by a sweeping touch of the roofline. Audi A5 has grace and charisma and the broad bumpers and striking spoiler lip augment the look. Audi A5 also commands attention by its sheer presence. Long wheelbase, broad wheel track, 360 degree safety concept, two-stage full-size air-bag for the driver's seat are the other features included.

Maruti Kizashi:

Maruti is contemplating a D segment entry with the all new Maruti Kizashi. Maruti Kizashi is slated to be launched in early 2010 and it is likely to compete with Honda Civic, Toyota Corolla, Skoda Octavia and the upcoming Volkswagen Jetta. Maruti Kizashi will have a list of innovative features like six speed transmission, 21 inch alloys, and six-speed transmission. Maruti Kizashi will be produced at the company's Manesar facility in Haryana.

Volvo XC60:

Volvo XC60 is a slick and stylish concept car by Volvo with great exteriors bearing resemblance to the Ford Iosis concepts. Volvo XC60 is based on the Land Rover LR2 platform and is available in gasoline - and diesel-burning engines but is region specific. Volvo XC60 employs the modified version of Volvo P24- platform.

Volkswagen Up:

Volkswagen Up is the small car from Volkswagen and the cheapest car from the Volkswagen stables. Volkswagen Up debuted at the2007 Frankfurt Auto Show in Germany and the cars name is synonymous with departure, activity, dynamics and the future. Volkswagen Up has unique central displays, two monitors; one 8 inch monitor which displays the vehicle speed, fuel level and range, as well as the CO2 emissions. The 7 inch monitor controls climate control, radio volume, music selection, telephone, navigation, photos and movies.

Volkswagen Polo:

Volkswagen Polo is developed from the principles of the new Volkswagen "Design DNA". The Volkswagen Polo is a purposeful and impressive car, which measures 3,970 millimeters in length and is 1,682 millimeters wide. It offers space for up to five people and a lot of luggage with its 280 to 952 liters capacity. Volkswagen Polo has a more dynamic stance and purposeful appearance with sharp designs, precise lines sans the stylistic gimmicks. Volkswagen Polo has two different headlights and integrated in the headlights are the turn signal lights. Volkswagen Polo has external and internal design features of the headlights with different lighting elements that combine with the lines of the radiator grille to form one unit.

Toyota Prius:

The 2010 Toyota Prius is a hybrid model with a powerful 98-horsepower and 1.8-liter Atkinson-cycle engine. Toyota Prius is combined with electric motor hybrid system, 134 horsepower and improved fuel economy to an EPA estimated 51/48 city/hwy mpg and a combined 50 mpg. Toyota Prius has new Hybrid Synergy Drive system, new inverter, 20 percent weight reduction and new electronically-controlled regenerative braking system. Toyota Prius has three driving modes like EV Mode on battery power at low speed, Power Mode with increased throttle response and Eco Mode for best fuel efficiency.

Skoda Yeti:

Skoda Yeti is the much awaited SUV from Skoda. Skoda Yeti is the cheaper alternative to Hyundai Tucson, Honda CR-V, Chevrolet Captiva, Suzuki Grand Vitara and the Mitsubishi Outlander. Skoda Yeti will reflect the beauty and power of both Fabia and Octavia and will be placed in between these two cars. It will be predominantly built with a front wheel drive configuration. Skoda Yeti is 4.2 meter long, has five-door and impressive front end with a ribbed grille and stylish headlamps. Skoda Yeti has innovative seating options like three bucket seats in the last row. Skoda Yeti will be priced around Rs 10 lakhs.

Tata Indicruz:

Tata Indicruz MPV is a much awaited vehicle from the Tata stables. Tata Indicruz will compete with Honda CR-V and Volvo XC90. Tata Indicruz will have airbags, ABS, automatic climate control and cruise control. The current version of the Tata Indicruz seems much like the more rounded, Innova look alike. The car would be priced at just 20 per cent above that of the recently launched Tata Sumo Grande Mark II.

Hyundai i30:

After the success of i10 and i20 cars in India, i30 is going to be the next big launch for the company. Hyundai i30 will be available in both petrol and diesel versions. Offering a class leading combination of comfort and refinement, interior space, economy and exceptional levels of standard equipment, the car is a complete all-round package. The launch of i30 is likely to be successful in the country, more so, considering Hyundai's strong network of dealers as well as its past successful stint.

Tata Aria:

Tata Aria is slated to be launched in the second half of 2010 and was unveiled at the Auto Expo in New Delhi in January 2010. Tata Aria is a crossover between a sports utility vehicle and a multi utility vehicle. Tata Aria will offer robust performance with comfort, owing to its unique design. The interiors of Tata Aria will offer three rows of theatre style seating, 3D surround sound, dimming roof lamps, built in GPS and a state-of-the-art infotainment system. Tata Aria is equipped with multi functional steering wheel, air conditioning with automatic climate control and cruise control. The high end version of Tata Aria comes with 6 airbags.

Maruti Cervo:

Leading family car manufacturer Maruti is planning to launch Maruti Cervo by the end of this year. Maruti Cervo will be equipped with 54bhp 660cc engine. It will bear resemblance to Honda Fit and the interiors will resemble Swift or SX4. K6A DOHC engine with VVT, 4-speed auto gearbox and bluetooth capabilities are the other features included. Maruti Cervo will be priced between Rs 2 Lakh to Rs 3 Lakh.

The wide range of cars that are geared up to hit the Indian roads in 2010, are awaited with much fervor by auto enthusiasts.

Figo Drives New Sales Records For Ford

The all-new Ford Figo has received more than 10,000 orders less than one month after it went on sale, a new Ford India record. In response to the strong demand, Ford India will launch a second production shift at its plant in Chennai.

The Figo’s popularity helped Ford India’s overall March sales more than triple from the same month a year ago, rising an impressive 203 percent to 9,478 units. The exceptional March performance, which also included strong sales of Ford Ikon, Ford Fiesta, and Ford Endeavour, were nearly triple Ford India’s February sales, increasing 194 percent.

“We are delighted at the initial response to Figo, and are incredibly proud to have struck such a positive chord with Indian consumers,” said Michael Boneham, president and managing director of Ford India. “The launch of Figo is the start of a transformed Ford in India, and a true reflection of our commitment to delivering world-class products that allow Indian customers to feel the difference.”

Part of Ford’s US$500-million investment in India, Figo was designed and engineered with Indian customers in mind – including months of exhaustive customer clinic research and thorough testing in both simulated and actual road evaluations.

Aimed squarely at more than 70 percent of the country’s new vehicle market, Figo has significantly bolstered Ford’s competitive position. This has been one of the best launch response and volumes achieved in the first month of sale by manufacturers in India’s automotive history.

The Figo is one of the more than 20 new vehicles Ford is introducing globally in 2010. The new cars, trucks and SUVs, which offer class-leading fuel economy, quality, safety and technology, represent substantially more new or freshened product by volume than was introduced in 2009.

During the course of this journey, more than 900,000 people visited the Ford Figo homepage www.fordfigo.in to know more about the car and spent and average of over 8 minutes on the website. In addition, thousands of people joined Ford Figo communities across social networking sites like Facebook, Twitter.

“As we remain committed to redefining the Ford brand in India, we expect this momentum to continue,” said Boneham. “Factors such as the initial price of the car, fuel efficiency and cost of maintenance are critical in determining affordability for a new car buyer. Indian customers are confirming that Figo solidly delivers on all of these.”

With longer intervals of key maintenance components due to better durability, competitive cost of the parts and the short time required for vehicle servicing, Figo is placed among the leaders in scheduled service over a 5 year/100,000 kilometre period.

As part of ongoing efforts to demonstrate its competitive cost of ownership, Ford India recently announced the opening of 28 dealerships in India, bringing the total number of Ford outlets to 164 facilities in 97 cities. The company plans to expand to 200 facilities by the end of the year.

Merc set to bring A Class premium compact to India

In India the automobile market is dominated by compact cars. to join the race in the small car segment, Mercedes Benz is planning to bring its small car, the A Class, to India, a top official said.


Benz is planning to bring its small car, the A Class, to India, a top official said.


“The competition is heating up in the small car segment and we plan to bring our small car, the A Class, to the Indian market within two years,” Peter Trettin, president & CEO of Daimler, Central and Eastern Europe, Africa and Asia, said.


The A Class model has sold over 680,000 units worldwide since its launch in 2004. It was positioned as the trailblazer for a new vehicle segment.


Mercedes-Benz plans to expand its premium compact vehicle portfolio comprising the A and B Class from two to four models starting end-2011. The future models will offer product attributes that are already popular among A and B Class customers, such as a spacious interior. The models will also set a new tone through the introduction of additional variants and concepts.


Trettin said the company would position the A Class as its entry-level car in the Indian market. “It will be priced competitively to get a foothold in the market,” said Trettin. He was visiting the 100-acre greenfield plant at Chakan near Pune, in which the company has invested Euro 50 million.


Trettin said the Indian economy was growing rapidly and with it the aspirations of the people for better cars compared to the regions he was overseeing. “With the growth in the Indian economy, we expect the demand for our products to rise considerably,” he said.


Wilfried Aulbur, MD and CEO, Mercedes Benz India, claimed sales had picked up since December. “In 2010, the luxury car segment grew 80 per cent, but Mercedes Benz has grown 157 per cent and this is without the GL launch,” he pointed out.


The Mercedes Benz GL Class is a crossover sports utility vehicle and it matches, size-wise, Audi’s Q7 and BMW’s X5.


The company’s bus order book was full till September, mainly from the state transport departments, Aulbur said, but did not disclose volumes. “Demand in the market is picking up rapidly,” he added.


Trettin said the commercial vehicles market in India was doing well compared to other markets where sales had fallen by 90 per cent. “Eastern Europe and Central Europe were suffering and the company had to buy back stocks from the dealers and distribute them in other markets,” he said. The Middle East also saw a dip in commercial vehicles sales, he added.


Trettin said that from 24,000 trucks and 24,000 vans sold in 2008, sales were down to 9,000 each of trucks and vans in 2009.

Hyundai to launch 800 cc car both for India and export markets

Hyundai Motor India Limited (HTML) is planning to launch its 800 cc small car by 2011-12. The wholly owned subsidiary of Hyundai Motors Company is taking this step foreseeing the demand for small cars which is likely to touch 2 million units in India by the time this car gets to launch here. The Hyundai 800 cc cars will be both for Indian market and exports markets.


But the company made a clear remark that it had no intentions to give a competition to Nano as it does not have the capacity to manufacture Rs. 1 lakh car.


Hyundai is planning to undertake the production of this new 800 cc variant on the tunes of Maruti 800 and is supposed to hit the market with an affordable range. Hyundai is the largest seller of the small car


segment. Its current best seller is i10 but Hyundai plans to offer a car at a price tag lower than i10 this time.


“We hope to bring our smaller car than Santro, which will be an 800 cc vehicle, by 2011,” said H S Lheem, Managing Director Hyundai Motors India. He, however, did not divulge details like price range of the car. The car is aimed to hit not only the Indian domestic market but the company also plans to cater to the export market as well. The design of the car will be prepared in Korea.


The research and development work has already started at R&D centers at Hyderabad and Namyam (Korea). The company however has not revealed much about the product specification but there are anticipations that this car would be a petrol variant with 800 cc engine. These units have the capacity to manufacture 20,000 units per month and 600,000 units per year. HMIL has also promised a preview of its i20 car in the hatch back segment with a code name PB at the Paris Auto Tariff Show on October 2.


Hyundai is probably impressed by what Maruti 800 did to the Indian small car segment. Maruti Udyog happens to be the only company that boasts of having a monopoly in the small car segment in India. Hyundai’s new 800 cc car is bound to face tough competition from Maruti’s Alto, Maruti 800 and Spark. The company aims to take forward this sensation by launching yet another affordable small car, looking at the growing market of small cars in India.