Maruti to launch new Swift, Dzire in 2014

Indian automobile manufacturer Maruti Suzuki may launch the face lifted versions of the Swift hatchback and Dzire compact sedan in the first quarter of 2014. These new variants are likely to be showcased at the 2014 Indian Auto Expo.

 

 

Swift is Maruti’s largest selling premium hatchback in the country and has been a hot favorite of the masses in this segment since 2005, the year when it was introduced in India.

 

The company has a plan to make the diesel engines in Japan for upcoming Maruti models in India. The future growth of diesel vehicles in India will be going to good and thus Japanese parent Suzuki is becoming a helping hand for the making of engines and though Suzuki is making two in house engines.

Maruti Suzuki launched the Swift in 2005 and ever since the car has been a runaway success. In late 2011 the all-new Swift was launched which took the game even further. The Japanese carmaker has never rushed in to give their products a facelift, but stiff competition has ensured that no car company can rest on their laurels.

 

The Swift leads the Premium hatchback or B+ segment and the Swift Dzire also leads the compact sedan segment. The Swift and the Dzire will get updated  and seems like Maruti will showcase the face lifted versions at the 2014 Indian Auto Expo, if rumors are to be believed the face lifted versions are expected to hit the showrooms by first quarter next year.

India car sales soar 30 percent in 2010-11

Indian passenger car sales soared by 30 percent in the past year, the most in over a decade, but surging raw material costs will put the brakes on further growth, an industry body said Friday.

Car sales grew to 1.98 million units in the just-ended fiscal year to March 2011 from 1.53 million the previous year, spurred by cheap loans and new model launches, the Society of Indian Automobile Manufacturers (SIAM) said.

"We have ended the year on a reasonably high note. We have reached a very strong base," SIAM president Pawan Goenka told reporters.

India is the second-fastest growing auto market in the world after China.

But Goenka said growth would slow to 16 or 18 percent this year due to rising commodity prices and costlier loans resulting from a tighter monetary policy aimed at curbing inflation.

The percentage gain in car sales in the year to March 2011 was the highest since 2000 when car sales soared 60 percent, SIAM said.

The sustained expansion of the Indian market in the face of saturated markets in the West has turned the country into a battleground for global vehicle manufacturers.

Ford, Renault-Nissan, General Motors and Volkswagen have all launched new models in India recently.

Sales of Japanese-controlled Maruti Suzuki, India's car market leader, jumped by 26.24 percent to 966,447 units last year from a year earlier, while sales of rival South Korea's Hyundai Motor increased by 13.95 percent to 358,904 units.

In March, passenger car sales in Asia's third-largest economy climbed by 24.37 percent to 194,199 units from the same month a year earlier, SIAM said.

Sales of commercial vehicles - seen as an important barometer of economic health - climbed by 15.35 percent to 77,688 units from a year ago, the auto group said.

Total sales of vehicles across categories grew by 19.42 percent in March to 1,465,909 units from the same month a year earlier.

Domestic car sales hit record high in February

Car sales in India hit a record monthly high of 1.89 lakh units in February as customers advanced purchases in anticipation the government may hike excise duty in the Budget. Sales were also driven by rising disposable income with the middle-class , easy availability of loans, and a pick up in new product launches.

Car sales rose by 23% in February compared with a year earlier, data released by industry body Society of Indian Automobile Manufacturers (SIAM) showed Wednesday. The February sales number is higher than the record 1.84 lakh cars sold in January.

The Budget for 2011-12 , however, left excise duty unchanged at 10-22 % for different segments of cars, contrary to an expectation of a 2% hike. "Car prices have not increased much despite rise in global commodities prices like steel and rubber . Also, customers are enjoying flexible financing options. In future , however, we expect higher base of 2010 to moderate growth rate," SIAM Director General Vishnu Mathur said. Maruti Suzuki, the country's largest carmaker, reported 19.8% year-on-year growth in sales in February to 101,543 units.

"There was more demand in the market than what we could supply as we faced severe scarcity for our highrunning models like Alto and WagonR," a senior official from Maruti said. Hyundai sales grew 5.3%, while Tata Motors car sales grew 14% during the month. Two-wheeler sales in February grew 22% to a record 10.22 lakh units. The growth in the segment was primarily driven by market leader Hero Honda that posted 24% increase in sales to 4.62 lakh units last month. Sales of trucks and buses grew 11% in February to 64,057 units led by Tata Motors, Ashok Leyland , and Eicher Motors.

India's total domestic vehicle sales in the current fiscal year is expected to grow 26-27 % year-onyear , higher than SIAM's earlier estimate of 18%, said Mathur. However, rising interest rates on auto loans and spiraling global commodities prices, including crude oil, are concerns for the sector going forward.

Car Care During the Rains

It’s been raining cats and dogs and the challenge the monsoons pose to your car is not trivial. The following tips will help you not only keep your car shining and smiling, but also ensure you have a safe and enjoyable drive in the rains.

1. We all know bald tyres drastically reduce your traction on wet roadways and offer little resistance to hydroplaning. Ensure that your tyres’ tread level never falls below 3mm.

2. Get your car polished. Teflon coating protects the car’s panels and metal parts. Even very minor scratches on the car’s body cause rust, so don’t forget to touch up the scratches.

3. Replace your wiper blades regularly. Older vehicles may need to have the whole wiper arm replaced. The arms wear out over time and can’t keep enough pressure to clear the windscreen, even with new blades installed. Use the windshield washer fluid generously as recommended by the manufacturer. Using a blend of water and washer fluid will clean the windscreen more effectively than washing with plain water.

4. Rain water moistens the brake drums which can cause lower braking efficiency. Brake well ahead of your stop and with reduced force when roads are slick. Avoid using your brakes; if possible, take your foot off the accelerator to slow down.

5. It’s very crucial to protect the car’s under-body from rust and the best measure is to give it a coat of anti-rust at an authorised service station or other professional after-market outfit.

6. Fill the battery to the brim and ensure the battery is fully charged. Apply petroleum jelly on the connecting point of the battery so that it remains dry; grease is also advised but it could damage the battery outlet joints.

7. Headlights illuminate the darkened conditions around you and help other drivers to see you coming. So it is important to check all your lights and ensure they’re all in good health. Do not use your high beams; they can reflect off droplets and make it even more difficult for you to see.

8. Ensure your defrosting and air-conditioning units are working properly so that you can de-fog the windows in rainy conditions. Use the de-frost mode with AC ON, in fresh air mode to clear the windscreen of condensation whenever the windscreen gets fogged up.

9. Every car should have a good emergency kit. The kit should meet your individual needs and be equipped with items ranging from spares, torch, fuses, tyre inflators, to safety kits and other items to attract or provide help. You can even keep cigarettes in your emergency kit, but not to relieve stress during an emergency. Rub the tobacco all over your windscreen and it causes water to form droplets and quickly roll off the glass rather than stay there and hinder your vision.

10. Water may sneak into the car’s interior and damage the car mats, flooring, seat covers and even some of the electronic wirings under the carpet. Moreover, it will also create a bad odour. Replace the existing mats, covers and carpets with rubber or plastic ones. It’s also advisable to roll a waterproof electrical tape on the electrical wires to prevent any kind of short circuit in the car. Also buy a waterproof car cover and keep the car covered when not in use.

Ford Plans 8 New Models to Drive Sales in Growing Indian Market

Ford Motor Company will launch eight new vehicles in India by the middle of the decade as its plan to rapidly expand its presence in the fast growing market. Joe Hinrichs, president of Ford Asia Pacific and Africa (APA), made the announcement today during a keynote speech titled ‘Managing Growth – Evolving Market Dynamics’ at the Society of Indian Automobile Manufacturers (SIAM) Conference in New Delhi.

“We have big plans for India and for this region,” Hinrichs said. “As we have seen from the spectacular early success of the Ford Figo, more and more Indian consumers appreciate the fuel efficient, economical, high quality, safe, and fun-to-drive vehicles that Ford offers. By the middle of this decade we will introduce eight new vehicles to India from our global platforms, in segments appropriate for this market. This is part of our ‘better plan’ to bring more and more vehicles from our vast global portfolio to India and other markets in Asia Pacific and Africa.”

Hinrichs’ remarks at the SIAM conference focused on strategies for managing change, specifically the impact of rising demand and increasing capacity on the value chain. He elaborated saying that, “Introducing eight new vehicles by the middle of the decade is an ambitious plan that will have tremendous impact on our manufacturing operations, supply chain, dealers and employees. As part of our better plan for India, we are working today to make sure the value chain is ready for the demands we will place on it in the years to come.”

Expanding capacity creates particular challenges for suppliers, which are responsible for a large part of a vehicle, and requires new approaches. Hinrich further explained that by 2012, more than 70% of the vehicles sold under the Ford brand globally will be built off 15 core platforms. By bringing suppliers into the development process earlier we can ultimately generate more profit for the supply chain.

The Figo has already made its impression on the people in India and having already accumulated a fan following, this announcement will make Ford lovers jump with joy. With eight new cars lined up for launch in the next decade, all eyes will be on the bait that Ford India throws out to its customers.

Ford to increase market share by new car launches

Michael Boneham, president and MD of Ford India here on Thursday indicated that the US car maker, Ford has decided to launch a new car every 12 to 18 months in India to enhance its market share. However, he did not indicate what sort of market share the company aims to achieve in the long run. Talking to newsmen at the inauguration of Ford’s new dealership, Victoria Ford, Mr. Boneham said: "We now have a marketshare of nearly 2% and we want to grow it significantly in coming years. Launching of new cars from the Ford stable, will play a crucial role in growing our market share in India."

For 2009, Ford India aims to achieve sales of 30,000 cars compared to 29,000 cars sold in calendar 2008. "In September ‘09, we have been able to sell 3,500 cars which is a 50% increase year-on-year basis," said Nigel Wark, executive director (marketing, sales and services). By investing $500 million, company will expand production at its Chennai plant from 1 lakh to 2 lakh vehicles, apart from producing 2.5 lakh engines, both in petrol and diesel.

SUV Ford Endeavour with some added facilities is being relaunched by Ford and Boneham informed that the new Ford Figo, on which the company is depending to get into the lucrative A segment, would be available in both petrol and diesel variants also. The company exports its cars produced in India to South Africa. Ford’s foray into the Indian compact car market with Ford Figo is expected by the first quarter of calender 2010 and the vehicle would be exported to Asia Pacific and Africa along with sales in India. Last year, the company had exported nearly 4,000 cars.

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.

Indian automobile sector ushers in new FY on positive note

The Indian automobile sector is ushering in the new financial year on a positive note. Sales across all major categories registered growth in April compared to the same month a year earlier.

Maruti Suzuki India reported nine per cent growth. The company is a subsidiary of Japan's Suzuki Motor and it sells one out of every two cars in India.

As for Hyundai Motor India, the country's second largest carmaker, sales were up 3.5 per cent.

Shinzo Nakanishi, managing director, CEO, Maruti Suzuki Ltd, said: "Since last December, the government has announced several stimulative measures, including excise duty cut, which has definitely helped us to survive in this auto industry."

A four per cent reduction in excise duty was one of the measures taken to help revive India's slowing economy and it has had the effect of boosting consumer spending by making things cheaper.

Growth in the auto sector for the month of April was also driven by new launches. Last year, Maruti Suzuki India launched A-Star, a car manufactured only in India. It helped exports surpass the company's previous record set in March 2004.

Another model, Dzire was launched in March. It helped Maruti to double its sales in the A3 segment.

People are also making a bee-line for two-wheelers. Honda Hero saw sales go up with the introduction of two new models.

Hiroshi Nakagawa, MD, Toyota Kirloskar Motor, said: "I strongly believe Indian economy is fundamentally very strong. So it's time to enjoy the growth."

However, analysts warn that it does not indicate a revival in consumer demand. The growth is relative to a low-sales base seen in April 2008. When compared to March this year, the sale of passenger cars and commercial vehicles in April have actually fallen by 20 per cent.

In addition, problems such as lack of funds and banks' unwillingness to provide loans continue to haunt the Indian automobile industry.

The sector has its wish-list ready for the new government that will assume office soon. Firstly, it wants the tax sops given to the industry to continue.

And with the Left parties no longer blocking economic reforms, the auto industry wants immediate approval of foreign investment in the country up to 100 per cent, with no minimum investment criteria.

Safety features will hold key to Indian cars on European roads

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

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

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

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

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

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

Ford India to market new fuel-efficient vehicles

Ford India has announced plans to market a new line of fuel-efficient vehicles.

The cars, which will be available for sale in 2010, are fueled by compressed natural gas and liquified petroleum.

Ford India currently distributes Ikon, Fusion and Fiesta cars, as well as the Endeavor sports-utility vehicle. However, the worldwide economic recession caused sales to plummet by 22.5 per cent from April-September 2008. Nevertheless, the company still managed to ship a total of 4,062 cars and SUVs during the troubled period.

"The credit crunch and the lack of confidence has affected [us] in the short-term," admitted Michael Boneham, president of Ford India. According to Boneham, the company expected 2009 to be a tough year for the industry with a single-digit growth (rate). However, the optimistic president projected that sales would increase when Ford launched its fuel-efficient small car in 2010.

Ford will undoubtedly face stiff competition from a number of companies vying to dominate the lucrative Indian automotive market. For example, Toyota is reportedly developing a new fuel-efficient vehicle expected to retail at $5,000. In addition, Tata is slated to launch its affordable $2,500 Nano sometime in the near future.

First seven-seater car launched in India

The Swedish Volvo Group is launching its first seven seater car in India, which is available in five attractive colours, stylishly priced at Rs 58 lakhs. Paul De Vojis, managing director, India says, they plan to launch three more models soon..

SWEDISH LUXURY car manufacturer Volvo has rolled out the latest variant of its luxury SUV XC90 in the Indian market. The car comes outfitted with a powerful V8 4.4 litre petrol engine delivering 315 bhp.

The XC90 made an entry to the Indian market in the year 2007 and the all-new variant is loaded with a host of luxury and safety features. It comes equipped with sports calibrated steering, sport-tuned chassis, and stylish stability control techniques.

According to Volvo Car India managing director Paul De Voijs, “The launch of the new variant of XC90 aims to broaden our model range to attract more customers with an active and urban lifestyle. Volvo that entered the Indian market in September last year with two models, has so far sold over 100 units.

He also said that we plan to launch our most recent offering XC60 soon after it is rolled out in Europe in November this year. We have three other models that might also be launched in India.”

The Volvo XC90 R-DESIGN will be available in five colours and is the first seven seater Volvo car in the country. The car is priced at Rs 58 lakhs (ex-showroom, Delhi).

The company is also planning to bring its all-new compact-sized crossover, XC60, in the country after its launch in Europe next month.

Customers consider fewer models before buying cars

In what should ring the alarm bells for car-makers already facing a sales downturn, Indian customers are considering fewer models before making purchase decisions, global marketing information services firm JD Power said in a study.

"Twenty seven per cent of new vehicle buyers in India in 2008 considered at least one other model before purchasing their vehicle, compared with 38 per cent in 2007. This marks the first significant decline in cross-shopping rates since 2005," said JD Power Asia Pacific 2008 India Escaped Shopper StudySM.

The study compared shopping behaviour of two groups of customers -- buyers of recently launched models and buyers of models that have been on the market for more than two years.

For a fourth consecutive year, Maruti Suzuki India performed well in persuading shoppers to purchase the brand, with 38 per cent of all shoppers eventually purchasing one of its models.

Among other vehicle makes included in the study, buyers of Mahindra-Renault and Hyundai tend to shop around the most before purchasing their vehicles, while Skoda and Mahindra buyers were least likely to consider another model in their shopping process, the study added.

"The introduction of several new models into the market during the past few years as well as increased advertising by manufacturers is likely to create greater dissonance in the minds of shoppers and cause them to turn to friends or relatives for reliable advice," JD Power and Associates Senior Director Mohit Arora said.

As a result, consumers were being more decisive during initial stages of the purchase process and fewer car buyers were considering multiple models, he added.

Hyundai aspires to become the No 1 car manufacturer in India

At the 10th anniversary celebration, Hyundai Motor India Ltd's (HMIL) MD & CEO, HS Lheem, said: "We hope to become the no 1 car major. While our current market share in the domestic market stands at 22 per cent, we hope to become the largest car manufacturer in the time to come." Lheem declined to comment on a time-frame towards achieving this goal.

Maruti Suzuki is the market leader by the number of cars it sells in the country annually, and holds a market share of a little less than 40 per cent. HMIL spelt its plans for the future which includes launching at least two new models every year, focussing more on the development, production, and exports of small cars like the "I 10" and soon to be launched "1 20". Parent Hyundai Motors based in Korea has designated India as the small car hub.

IN addition to increasing its production capacity in Chennai, Hyundai plans to raise its current research and development staff strength pegged at 200 to about 800 in 2009.

Czech Skoda Auto mulls cheap car for Indian market

Czech car giant Skoda Auto is mulling whether to produce a new cheap car aimed at the massive Indian market, its spokesman told the media on Monday.

"It is true, but everything is still at the stage of being under consideration," Jaroslav Cerny said.
The car producer, part of the Volkswagen Group, currently sells three of its main models, the Fabia, Octavia and top of the range Superb, in India, where sales have taken off.

The company sold 9,556 cars in the first six months in India, compared with around 13,000 for the whole of 2007, leading to predictions that total sales for this year could reach around 20,000.

"It is a very promising market for us," Cerny said. He said the manufacturer wants to add another four models for sale in India.

Used Car Industry: Dr Car Expands Its Business Horizon

Dr Car one of the largest used car organized retailer in India, with a physical presence has now expanded its business services to meet the requirements of today's online customers.

Dr.Car brings to customers the finest car buying and selling experience at the best possible value by connecting buyers and sellers in the most convenient way with the largest inventory of used cars in a single location in India. With its physical presence and its website www.DrCar.co.in, it has gained a lot of trust as the best service provider for the past few years in Used Cars market.

The used car market in India presently is growing at the rate of almost 30% per annum. Fiscal year 2007-08 touched an approx 14.2 lacs of used car sales as compared to 8.8 lacs car sale in the year 2005-06. Nearly 1 Million cars change hands annually, according to the Society of Indian Automobile Manufacturers. With Used Car market getting more organized, Indian Automobile Industry is experiencing a new shift in the business model.

As happening in any other industry, even the used car market is shifting its prominence from physical presence to online presence. The web is the first source for most of the customers looking to buy or sell a car. Today's customers wants the things to be done so quickly, even if it selling a car. The Used car portals provide a great source to meet this pace of customers. Customers along with pace also wants to sell their cars at the best possible price and customers who want to buy used cars wants the best value cars from dealers who are reliable as well in the most convenient way.

To meet these convenience needs of the customers, Dr.Car.co.in has completely revamped its site. The new DrCar.co.in portal provides seamless integration of the online world with our physical locations. This helps us to bring customers the best of both online and the traditional brick-and-mortar showrooms.

Dr.Car.co.in brings together a gamut of features to offer to its customers like Best Quotes, Used car valuation services and more. A buyer of used cars can visit Dr.Car portal and with the help of advanced search functionality can find the car of his choice. The buyer can find the cars available through Dr.Car based on make, model, price, year and location. Once he finds a car which meets his preferences, he can submit a quote. He can also visit the Dr.Car yard and have a detailed look and know all the details of the car. If the seller of the car is happy with your quote, you can drive away your car. If you are a seller of a car, you simply need to create a free account and upload your car details. Your car details will be listed in the site and you will start receiving quotes from prospective buyers, you are at your will to choose the best quote.

Dr.Car also provides lot of information about New Cars. The Finance and Insurance sections in the site provides you detailed info and guides you how to best use them. The research section provides a lot of information about used cars, new cars and the industry news as well.
Dr Car Pvt Ltd is in the process of making its physical presence Pan India by opening its yard facility in other locations in India too.

TAKE A LOOK-What's happening in emerging car markets

India expects the automobile sector to double its share of gross domestic product to 10 percent and contribute $25 billion in export earnings in a decade, the trade minister said on Thursday.

Kamal Nath also said the government would consider incentives for exporters of cars and auto-part makers and keep policy favourable to help auto makers sustain high growth in output.

"We believe that the sector's contribution to GDP will double from its current 5 percent to 10 percent .... and exports should go up nine times," Nath told a business conference.

"By the middle of next decade, India should be the destination of choice for design and manufacture of automotive components and vehicles in the world."

India's booming auto sector has lured major companies to tap the domestic market, and many of them plan to make it an export hub to take advantage of low-cost labour and components.

Nath said Maruti Suzuki, India's biggest car maker, was planning to scale up its capacity to 1 million cars by 2010, Hyundai was looking at capacity of 600,000 cars by 2009 in the country and Toyota plans to scale up output to 200,000 units.

Demand for cars has been hit by rising interest rates, with the central bank raising its key lending rate to a seven-year high of 9 percent in July, and rising input costs have squeezed profit margins of auto makers.

"I believe this is a passing phase," Nath said.

Tata Motors seeks new sites to make Nano

TATA Motors sought new sites for its cheap car plant yesterday after protests forced it to suspend work on the project, a crisis seen as a big blow to India's effort to attract investors.

The company, which became globally known when it bought British luxury cars Jaguar and Land Rover earlier this year, hoped to have its cut-priced "Nano" model rolling off the production lines and in showrooms by October.

But analysts say the launch of the groundbreaking vehicle, conceived by Tata chief Ratan Tata to get poor Indians off motorcycles, would be delayed by months if the assembly line was moved to other Tata factories in India.

A Tata statement late on Tuesday fell short of declaring the company was exiting Marxist-ruled West Bengal state in eastern India for good. But it would be "highly optimistic to think of a (swift) return to normalcy at the Singur site", a senior Tata official said.

The announcement shocked business leaders, who warned it would hurt India's image as an emerging economic superpower and viable investment destination.

Investor confidence would be "completely shattered", said Venu Srinivasan, chairman of leading Indian two-wheel seller TVS Motor.

India's most powerful businessman, Mukesh Ambani, chairman of Reliance Industries, has said the protests are "counter-productive for the country's economic growth, its global image as well as our ability to attract investments from across the world".

Daimler sees its Indian sales up 20 percent in 2008

Daimler AG sees its Indian sales rising 20 percent to around 3,000 cars in 2008 on sustained demand for its luxury Mercedes-Benz cars, the chief executive of its Indian unit said on Thursday.

"In India we have 120,000 dollar millionaires roughly. These are definitely our potential customers," said Wilfried Aulbur, chief executive of Daimler's Indian unit.

Mercedes sold 2,487 cars in the first eight months of 2008, compared with 2,491 cars for all of 2007, he said.

Mercedes has a capacity to roll out 5,000 cars in India now and could quickly double it, he said. It assembles the C, E and S class cars in India.

The luxury car market in India is dominated by Mercedes, BMW and Audi. Annual sales of less than 10,000 are miniscule given India's population of 1.1 billion, but are growing rapidly.

Last year the market grew 60 percent and this year it is on course to do double that rate due to new entrants in the luxury segment, Aulbur said.

"If you compare with other emerging countries there is significantly more potential in terms of volume here," he said.

BMW India to go to tier II cities; have 15 dealers in 1 yr

German luxury car maker BMW plans to increase its dealership in tier II cities in India after raising its sales target for the country.

BMW India, a 100 per cent subsidiary of BMW AG, will open showrooms in Lucknow, Coimbatore and Jaipur, taking its total dealership network from the current 12 to 15 in the next one year.

"We will have dealers in tier II towns like Lucknow, Coimbatore and Jaipur in the next one year," BMW India Peter Kronschnabl told reporters here on Tuesday.

The company, which sold 1,397 cars in calendar year 2007, raised its sales target in India by 40 per cent to 2,800 cars by December 2008. It has already sold about 2,000 cars in the country so far this year. "We are not affected by any slowdown in the automobile sector in India," he said.

On the contrary, the luxury car market in India will cross the 7,000 mark by the end of this year, significantly higher than 4,300 cars last year, Kronschnabl added. BMW India also plans to launch an amateur golf tournament series for its customers in Chennai, Bangalore, Pune, Mumbai and Delhi from September 6. The national final of the tournament would be held in November in Gurgaon.

Merc mulls engine, gearbox unit in India

German auto giant Mercedes-Benz is contemplating setting up a plant to manufacture engines, gearboxes and other components in India at a whopping investment of Rs 2,500 to Rs 3,000 crore. While plans are yet to be finalised, the lower cost of manufacturing in India has compelled the company to give a serious thought to the proposition, Harald Landmann, the bus business head for Mercedes-Benz said at the launch of the company’s intercity luxury bus in Pune.

Assembled at Sutlej Motors in Jalandhar, the Rs 80-lakh bus will compete with its Swiss counterpart Volvo in the fast growing Indian luxury bus segment.

“We are yet to figure out when the entire bus building operation, including the development of engine and gearboxes, will happen in India. However, we are looking at a possibility to set up a manufacturing unit over the next three to five years,” Landmann said, speaking to reporters after the launch.

While Landmann did not disclose the location to set up this unit, officials close to the development hinted at Pune or Chennai.

Mercedes Benz is setting up its new facility at Chakan to manufacture cars as well as buses, which will begin operations in January. The company is expected to move all its operations from its present plant in Chikhali to Chakan. Considering this, the company might set up the engines and gearboxes unit in the vicinity of the Chakan plant.

“As our new manufacturing unit is coming up at Chakan, the engine and gearbox manufacturing should ideally happen in the same region. Since Pune has a strong automobile component industry, the unit has to come up nearby,” an official stated.

Once the company draws a concrete plan for the Rs 2,500-crore project, it will approach the Maharashtra government for approvals. “We might explore other states to set up the engine-gearbox facility if things do not work out in Maharashtra,” he added. Apart from Pune, Chennai could be the other option for this project.

Elaborating the business plan for the newly launched bus, Landmann said, “Mercedes-Benz enjoys a 17 per cent market share in the global luxury bus market. We have built the new bus on our versatile O500 R/RF chassis, which is being developed at the Pune plant. While most of the components are being imported from a Brazil-based unit, the chassis-building acitivity will happen in Jalandhar through an agreement with Sutlej Motors.”

“The luxury bus market is growing in India. Volvo, so far the only significant player in India, sold some 350 buses last year. Our plan is to earn a significant market share within the first year,” Mercedes-Benz India Managing Director Dr Wilfried Aulbur said.