Mahindra & Mahindra begins trial production of mini-Xylo

Small is beautiful, seems to be the new mantra for India's largest utility vehicle manufacturer Mahindra & Mahindra. M&M is all set to launch a mini version of its popular car -- Xylo. The trial production has already begun. The car will be launched in the next two months and is likely to be rolled out of company's new plant at Chakan.

A diesel mini-Xylo is expected to be priced around Rs 5 lakh, making it an attractive option for customers buying premium hatchbacks like Maruti Suzuki Swift, Hyundai's i20 or mid-segment sedans like Tata Motors Indigo. Experts also believe that a more fuel efficient diesel sports utility vehicle (SUV) will be much in demand at a time when petrol price hikes are burning a hole in a car owner's pocket. When contacted, M&M declined to comment. M&M's stock on the Bombay Stock Exchange was down 0.10 per cent at Rs 672.45 from previous close.

Speaking on the potential of such a mini-SUV, Automotive Dealers Association of Maharashtra chairman Sandeep Kumar Bafna said, "It's the package which will be of the essence – for example if a company can come out with a mini SUV wherein the price is Rs 5 lakh to Rs 7 lakh and it is a diesel product with excellent gearbox, engine and performance. For customers, a mini SUV is something that a person can use as an office going car as well as a weekend car."

Currently most 5-seater SUVs like Suzuki's Vitara are priced above Rs 18 lakhs, which many cannot afford. Even Xylo priced around Rs 8 lakhs is out of reach for many customers. A mini-Xylo could become a volume driver for M&M especially when the Xylo faces stiff competition from the popular Toyota Innova in that segment.

Commenting on the sales outlook for this year, M&M's automotive division CEO Rajesh Jejurikar said, "We have a strong portfolio of brands and we have a lot of products in the pipeline to be launched over the next 12 to 18 months. We are sure we will have a good year."

It also makes strategic sense for M&M to launch a mini-SUV as it wants to leverage its strengths in the utility vehicle market. The company is also expected to launch a global-SUV priced above Xylo later this year. In the second quarter of next year, the company will bring cars like Korando and Rexton to India from Korea's Ssangyong Motor after completing market feasibility studies. M&M completed the acquisition of Ssangyong in March this year and will work closely with Ssangyong for new product development and penetrating international markets.

It's a long wait for key car models this festive season

A number of cars such as Maruti’s Dzire and Ritz, Honda’s City, Hyundai’s i20 and Toyota’s Fortuner SUV have been wiped off shelves in past 10 days and are not available for immediate delivery as demand frenzy during the ongoing festival season has led to stock out situation for car dealers.

Carmakers are now being forced to ramp up production to meet demand. For instance, Maruti has re-jigged its operations to produce more of its newer cars such as Ritz, Estilo, Swift and DZire, while Honda has hiked production of its flagship sedan City and General Motors is operating its factory on all seven days to meet the market demand for small car Spark, utility vehicle Tavera and Aveo sedan even though Sunday is weekly off for the company. The festive season has also put other cars such as Hyundai’s I10 and Toyota’s Innova besides Mahindra and Mahindra’s Xylo out of dealer stock.

Auto industry executives say that the dual-combination of the prevailing festival mood and the slew of new car launches in recent past has contributed to the high sales in the past two weeks. “The interest rates, which are at the lowest level since the past two years is also pushing up volumes,” said Shashank Srivastava chief general manager (marketing) at Maruti. Maruti is slated to end up with despatches of over 5,500 Ritz cars in September as against the monthly average of 4500-5000, it was delivering to dealers every month.

Besides sudden jump in demand there is also a supply lag for these cars. Companies usually ramp up production of new cars over a period depending on demand. Since there has been a sudden jump in demand during the festive period companies were not prepared to churn out the required number of these models.

Unlike older more established products such as Maruti’s Alto or Wagon R, where discounts and freebies up to 15% of the value of the car are given the newer models have much lower discounts. The demand rush during the auspicious Navratara and Dusshera festivals have resulted in the huge waiting period of up to three months on such cars — some of which are leaders in their respective segment.

“There has been much more sales than we had expected. Most of our cars like Tavera, Spark LPG, Aveo sedan have wiped off from the showrooms and are enjoy a waiting of four to six-weeks,” said General Motors vice-president (marketing & sales) Ankush Arora said.

Domestic car market is expected to scale new sales graph for the fiscal in September on the back of this huge demand. This would help the industry surpass the mark of 1.2 lakh cars that were sold in August in India.

Besides general demand, return of easy financing could also have helped spur demand. “We are anticipating a double digit growth in sales over the last year in September with market leaders like Maruti Suzuki and Hyundai their highest sales in the domestic market,” HDFC Bank auto loan head Ashok Khanna said. Earlier, most private sector financiers had tightened their auto loan portfolio which had also led to slow growth in demand.

Good cars with unconventional looks prove beauty is not a criterion

Beauty is not the criterion for choosing a car that meets your needs. Practicality and usability continue to play a major role while buying cars. That’s what the popularity of some of the boxy shaped cars in India such as Maruti Wagon R, Toyota Innova and Mahindra XYLO, proves. The Nissan Cube which went on sale in Japan this year and will be released in the American and Canadian auto markets in the spring of 2009 is another car that looks unconventional but scores high on all other factors.

Phenomenal response to the XYLO

Since its launch on January 13, 2009, bookings for the Mahindra XYLO have crossed the 12,000 mark. The XYLO which has faced criticism for its unconventional looks has received a very positive response because of a fabulous overall package. It is emerging as the first true competitor to the Toyota Innova in the Indian multi-purpose vehicle (MPV) segment. The sale numbers are likely to increase in course of time with more auto enthusiasts opting for this car.

The Mahindra XYLO is equipped with an all-new 2.5 litre engine and provides a spacious interior. This MPV features well-laid out instrument cluster, leather wrapped steering wheel, height-adjustable plush seat, three-position lumbar support system, two power points, adjustable armrest and lockable under-seat storage tray.

The Wagon is a great buy for money

Today, the Wagon R is one of Maruti’s most recognized cars. The sales chart of Wagon continues to move upward in spite of its uninspiring boxy design. This compact car comes loaded with plenty of advanced interior features such as electronically controlled rear view mirrors, remote controlled fuel lid and tail gate switch and factory equipped air conditioner. Safety gadgets include dual airbags and anti-lock braking system.

Innova breaks new ground in MPV segment

The Toyota Innova is built with a purpose for a market that looks at usability. Its looks may not win it any beauty pageant but it has created a new-look statement that other MPVs are following. It can carry passengers and cargo comfortably at a more affordable price. It can accommodate eight passengers. Excellent ride quality, top performance, spacious and flexible interior, solid durability, cutting edge safety features and reliability are some of its unique features. The smooth transmission of this lengthy mini van is precise.

The Innova is available in ten variants – seven diesel and three petrol engines. The cabin boasts facilities such as shift6 and rear console, adjustable passenger’s and driver’s seats, saddle type headrests, mobile charger, glove box, door bottle holder, two tone relaxing color interior and chrome plated door inside handle.

Safety equipment includes load sensing promotion valve, large disc brakes, theft deterrent system (immobilizer) and driver and passenger side SRS airbags.

What really makes the Cube stand apart?

The Nissan Cube is a mini MPV currently sold in the Japanese market and slated for launch in the American and Canadian car markets in the spring of 2009. With a rather unconventional look, the five-passenger Cube makes practical sense to users. The hatchback can accommodate a whole lot of luggage with ease. It is packed with a 1.8-liter four cylinder engine that produces 122 horsepower. Transmission types include six-speed manual and Nissan’s automatic continuously variable transmission. With the kind of features that it offers, the Cube would be a best bet in India.

Indicruz Xover To Cruise On Indian Roads

Tata Motors is all geared up launch its Indicruz Xover, the Multi Purpose Vehicle (MPV) early next year.

Tata Indicruz Xover is modeled on the Tata Safari platform and this MPV gets a bold cutting-edge look. The new Indicruz will flaunt sizzling exterior similar to the Innova from Toyota Kirloskar Motor.

It will come with a more curvaceous roof, mirror mounted indicators, large futuristic headlights and grille design with the corporate logo in the centre that will accentuate the front visage of the muscular car. The car will run on 17" alloy wheels.

The premium MPV will boast an extremely large cabin that can accommodate up to seven people comfortably. The beige interior will house all the amenities required for a comfortable and pleasant driving experience. The Indicruz Xover will house navigation system and safety features like Anti-lock Breaking System (ABS) and airbags.

The Tata Indicruz Xover is expected to borrow the Safari’s 2.2-litre DICOR diesel engine that can churn out a powerful horsepower of 138 bhp. But the engine will be setup different to offer better fuel economy and improved drivability.

The Indicuz Xover will be placed against the Toyota Innova and the Mahindra Xylo in the Indian car market.