Hyundai packs i10 with Kappa punch

HYUNDAI Motor India Ltd (HMIL) on Tuesday rolled out a new model of the i10 compact car fitted with its latest and more powerful 1.2 litre Kappa engine that is expected to give five per cent more mileage than the existing 1.1 litre engine fitted in the car.The new engine also emits less exhaust fumes. The i10 will also have a 4-speed automatic transmission variant, which will be more convenient for women especially in heavy city traffic as they will not have to press the clutch and change gears, HMIL managing director HS Lheem told journalists.

The Kappa i10 is available with Hyundai dealers at an entry level price of Rs 3.9 lakh. This compares with the existing i10 which costs Rs 3.37 lakh. The car is being launched in three variants —the Magna, Sportz and Asta with the high-end automatic transmission model with a sunroof priced at Rs 5,43,644.

This variant will also be fitted with front airbags and an anti-lock braking system. Lheem said the new engine and transmission plant at Sriperumbudur near Chennai has the capacity to produce 2,50,000 units of the new Kappa engine every year for powering the i10 cars to be sold both in the domestic as well as European markets. “The engine has been developed at a huge cost of $450 million over 41 months and will be produced in India for the world market,” he added. Lheem said the existing 1.1 litre engine has been a success and will therefore, continue to power both the Santro and the i10 “but the new Kappa engine will significantly raise the bar in the segment.”

The Kappa engine has an aluminium block, which makes it much lighter than the other engines, improves the power- weight ratio as well as fuel efficiency. It also helps cool the engine more quickly. The engine is fitted with a double overhead cam shaft, 16 valves and 32 bit microprocessor, which enables it to deliver more power with less noise and vibration.

The engine meets the latest Euro5 emission norms and emits only 119 g/ km of carbon dioxide, which is the lowest for this class of cars, Lheem claimed. He said the i10 has been doing well in both the Indian and European markets. The company had sold as many as 7,500 units of the i10 in the domestic market in the last eight months and had an order book of 1.1 lakh units in exports over the last seven months. Over 70 per cent of the car market in India comprises of compact cars.

The fast growing sales of i10 have taken Hyundai’s market share in the country from 19.5 per cent to 25.4 per cent and cover part of the gap with market leader Maruti. Lheem said the company was also working on a diesel variant of the i10, which is currently being exported. However, the cost at the moment was too high for the Indian market. “We are working on ways to reduce the cost of the diesel engine and making it more affordable for the Indian customer, but this, however, will take some time,” he added. HMIL has emerged as the largest exporter of cars in the country. Lheem said that about 40 per cent of the products were being exported from the Indian plant while 60 per cent was sold within the country.

Ford plans to roll out small car by 2010

WITH US automaker Ford’s Indian subsidiary announcing its intention to launch a small car in India by 2010, the Indian small car market is set to witness an explosion of small cars. Carmakers are racing to get products on the road by 2010, with global auto giants like Honda, Nissan, Daimler Chrysler, General Motors and home- grown Bajaj Auto all announcing plans to launch their small car by 2010. Tata Motors’ ultra low- cost ‘one lakh rupee car’ Nano, unveiled in January this year, has ignited competition in this sector, hitherto dominated by Maruti Suzuki.

By 2010, the demand for cars is expected to almost double to two million a year. Said Michael Boneham, managing director and president ,Ford India, “The small car segment has 75 percent share on the Indian market, and when we launch the small car, that’s when the real volumes will come in.” This shift in Ford’s strategy is touted by analysts as a global business strategy adopted by other global automakers like Nissan, Renault, Toyota and Honda. All these have acknowledged the merit and scope of producing an ultra low- cost car (ULC). Besides this, looking at factors like fuel economy and volumes, global auto companies are under pressure to target this growing segment, analysts say. Ford’s small car will most likely be sold with diesel and gasoline engine options, Boneham said, on the sidelines of a news conference, to launch an upgraded range of Fiesta sedan cars.

Ford’s new engine manufacturing facility will be set up in 2009- 10 with a capacity of 2,50,000 units per year. “The plant will fulfill the entire domestic demand and will also cater to the needs for ford in the Asia Pacific region,” said Boneham. Ford currently produces the Fiesta, Ikon and Fusion sedans, and the Endeavour SUV in India. The company had recently shut plants and cut workforce in North America amid financial losses. It has announced plans to invest $500 million in India to expand production capacity and make the new small car.

Ford is also exploring the possibility of introducing eco- friendly vehicles that run on alternative fuels or hybrid cars in the Indian market. According to the McKinsey Global Institute, consumers in the Rs 90,000 to Rs 2- lakh- a- year salary bracket will form the largest portion of India’s income pyramid in 10 years. These form the target for Tata’s Nano. Now, even global auto makers are targeting this segment. Toyota Kirloskar Motor (TKM), a joint venture between Japan’s Toyota Motor Corp. and India’s Kirloskar Group, also plans to invest Rs 1,400 crore on anew plant in Bengaluru, from where it will roll out its small car in abid to tap the largest segment of the car market in India. Said Vaishali Jajoo, auto analyst, Angel Broking, “Growth for global auto markets in developed markets is in single digits, whereas the small car market is projected to show a double digit growth in the coming five years. Besides this the (small car) market contributes over 50 per cent to the overall car sales in the country. Factors like cost efficiency are also a big push for global biggies.” The move has also set off a flurry of activity among component vendors, with most original equipment manufacturers (OEMs) gearing up their volumes for small cars to be launched by Renault- Nissan, Bajaj, Honda, General Motors and others.