M&M Ssangyong Rexton diesel SUV launched in India; priced at Rs 17.67-19.67L

Auto major Mahindra and Mahindra launched its high-end sports utility vehicle Rexton in India on Wednesday in partnership with SsangYong motors. 

Ssangyong Rexton will be available only in diesel option. 

M&M joins the likes of Toyota Fortuner, Skoda Yeti, Honda CRV, Hyundai Santa Fe and Ford Endeavour in the premium SUV space.

Around 2,500 premium SUVs are sold every month in India, with Toyota's Fortuner alone accounting for around 1,300 units.

The company has priced the Rexton very competitively taking this very competition into consideration. "A manual model of the sports utility vehicle (SUV) is priced at Rs 17.67 lakh ex-Mumbai and the automatic version at Rs 19.67 lakh," M&M president, automotive and farm equipment, Pawan Goenka said at the launch. It is of course an introductory price, which will be likely revised after the festive season.

The all wheel drive Rexton will be powered by a 2.7 litre engine delivering 184 bhp and 402Nm torque in the automatic transmission and 162 bhp and 340Nm torque in the manual version.

M&M officials didn't disclose the sales volumes they expect but said will have a capacity to assemble around 5,000 units a year of the Rexton at its Chakan factory in Maharashtra.

Dr Pawan Goenka, president - automotive and farm equipment sector, and also Ssangyong Chairman, said that there won't be any constraint on production and the company will be able to supply to demand.

"Capacity will not be a constraint. If there are more people who buy this vehicle, we will make sure that we supply...This is a new price point for us and so difficult to estimate how the customer response will be. We have set aside a capacity of 500 units per month in single shift. So if we see that kind of response and can sell 500 units consistently, we will be very happy," he said.

Presently 22% of the components in the Rexton will be locally sourced, while the rest will be imported from Korea. Company officials say that they have plans to "aggressively" localise the Rexton, but it will all depend on the sales volumes it can generate.

M&M has invested Rs 63 crore in tuning the Rexton for India. This is the third generation of the SUV, and SsangYong began its sales in Korea in July and exports began last month.

Rexton will be sold through existing Mahindra dealerships, but there will be a separate area and sales support at the dealers for SsangYong vehicles.

Rexton will be available in Mumbai and Delhi for now and it will be launched in 6-7 more cities like Bangalore, Chennai and Pune in a week's time.

Company officials say M&M and SsangYong are co-developing next generation engines. But they are tight lipped on the next planned launch from the SsangYong stable, only saying that there are products in the Korean company's existing portfolio and future pipeline, that will be studied for the Indian market. But their focus clearly right now is driving sales of the Rexton.

Meanwhile, M&M says there has been a good response for the Quanto mini SUV launched last month and demand for its flagship XUV500 remains strong.

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.

Renault to Launch 5 Cars in India

French car maker Renault's Indian unit will launch five cars between mid-2011 and mid-2013, including small cars in 2012, its India head said on Thursday, to cater to brisk demand in one of the fastest growing automobile markets in the world.

Its small cars will be built on its alliance partner Nissan's platform, Country General Manager Marc Nassif said on the sidelines of an automobiles conference.

The cars produced at its manufacturing unit in Chennai, built jointly with its alliance partner Nissan, will be Renault-branded, Nassif said, adding that they would be competitively priced.

In 2011, the firm intends to introduce its premium vehicle Fluence and the cross-over Koleos.

Separately, Renault-Nissan is working with Indian two-wheeler maker Bajaj Auto

Renault, which this year sold off its stake in a joint venture with utility vehicles and tractor maker Mahindra & Mahindra which made the Logan sedan, is all set to storm the compact car market in India on its own.

Nissan, which is 44 percent owned by Renault, has started selling its compact Micra cars since June.

The compact car segment in India, with cars measuring between 3.4 to 4 metres in length, is a rapidly expanding segment constituting more than 70 percent of the total car market.

Though top carmaker Maruti Suzuki still holds sway, global majors such as Toyota, Honda, General Motors, Volkswagen and Ford are eyeing this lucrative sector.

General Motors' Chevrolet Beat and Ford's Figo compact cars have already seen runaway sales so far this year.

Renault's global sourcing from India is expected to rise 40 percent to 50 percent in the current financial year, Nassif said.
to make a low-cost car, which would be designed by Bajaj and launched by end-2012.

GM ends alliance with Reva

Following the M&M-RECC pact, the GM called off its deal with electric car firm and plans to source Volt’s technology from their global electric vehicle.

India’s Mahindra buys Reva majority stake, GM to Develop New India Electric Car, Ends Reva Deal.

Indian car maker Mahindra and Mahindra said on Wednesday it had bought a majority stake in Bangalore-based Reva Electric Car to strengthen its position in the low-emission electric auto market.

Mahindra, India’s largest sports utility vehicle and tractor maker, bought a 55.2 percent stake in Reva, a global leader in producing low-cost electric cars.

The deal includes buying out equity from the promoters of Reva and providing 450 million rupees (9.5 million dollars) in fresh equity, a statement to the Mumbai stock exchange said. The value of the deal was not disclosed.

Reva’s promoters, the Maini family, will hold 31% in Mahindra Reva Electric Vehicle Company while Lon Bell, the co-founder, will hold 11% . Employees with stock options will hold the rest. “We expect that there will be 1.5 million electric cars sold globally. I see no reason why Reva cars will not be 50,000 of that 1.5 million in the next 7 to 10 years; this deal is a part of the larger strategy within the Mahindra group of focusing on sustained mobility,” said Pawan Goenka, president (automotive & farm equipment sectors), Mahindra & Mahindra, who will take over as chairman. Given our expertise in the overall vehicle development, we’ll work closely now with Mahindra Reva to make NXR and NXG a cost competitive and commercially viable product. We have also tied up funds for the first launch for Reva (NXR-NXG).”

GM to Develop New India Electric Car, Ends Reva Deal

Aday after Mahindra and Mahindra Ltd said it was taking a controlling stake in Bangalore-based Reva Electric Car Co., General Motors India (GM) scrapped its partnership with the company being acquired, saying it would make use of its own alternative fuel and propulsion technologies. “We plan to look within the General Motors portfolio for alternate technology vehicles,” said Karl Slym, president and managing director of GM India. Its US parent company is working on launching the Volt, a car that runs on batteries and has a small combustion engine that charges the cells as the car runs, giving it a range of 480km. The car is scheduled to be launched in the fourth quarter of this calendar year. The Reva, which operates solely on batteries, has a range of 80km.

The company is on track to launch light commercial vehicles as well as cars brought from its Chinese partner SAIC Corp. by the end of 2011. The cars will be sold in India under the Chevrolet badge. The three light truck models in the one-tonne range will be manufactured at its plant at Halol in Gujarat. It declined to disclose details on the cars to be launched. GM India is a 50-50 partnership between US-based General Motors Corp. and Shanghai-based SAIC Corp.

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.

Mahindra Scorpio – The Masculine Car Of India

After a lot of R & D, Mahindra and Mahindra has been able to produce and launch the Mahindra Scorpio. This vehicle is equipped with many features previously not available, auto cars, in cars in India. Moreover, the vehicle is a perfect example of the ability of the designers of automobiles in India. With its robust male body and the internal combustion engine, stands out in the crowd,, auto cars, drawing admiring glances all around.The Mahindra Scorpio SUV is the first company means not, auto cars, only the local market in India, but also for the world, auto cars, market, where it was well received.

The machine fills the gap between style and adventure, luxury and ruggedness, and performance and economy. Scorpio is looking good not only with a sophisticated interior design, but also has a strong, auto cars, engine.The motor vehicle is equipped with more than 2600 SZ diesel giving 109 hp with a torque of 26 kgm. The speed of 0-60 was achieved in less than 9 seconds. The petrol version of the, auto cars, vehicle has 116 hp engine reaches 0-60 in just under 8 secondsThe Scorpio is one of the few other cars in India which have been designed and built according to international standards and quality control.

Maruti Suzuki Tops Again

India’s numero uno car company -"Maruti Suzuki" has topped the list for the tenth consecutive year for customer satisfaction in the country according to a recent survey conducted by global market research firm J D Power.

In the survey, "J D Power Asia Pacific 2009 India Customer Service Index Study", Maruti Suzuki scored 824, on a scale of 1,000 points, followed by Honda Siel Cars India at 791 and Mahindra & Mahindra at 757.

It was to be noted that only Maruti Suzuki and the Indian arm of Honda bettered the industry's average score of 785.

The other major car makers in the top ten list are Toyota with 754 points, Mahindra-Renault and Tata Motors at 750, Chevrolet with 748 points and Hyundai with 5 points less than Chevrolet. Ford is at the eighth place with 733 points followed by Fiat at 727 and Skoda is at the tenth position at 722.

The Senior Director of J D Power Asia Pacific mentioned that the leading brands differentiate themselves in the service quality and vehicle pickup factors. The study measured overall satisfaction by examining five factors -- service quality, vehicle pickup, service advisor, service facility and service initiation.

J D Power also said the number of customers who changed from organised dealership service facilities to non-authorised service centre for vehicle service requirements decreased to seven per cent in 2009, from 11 per cent in 2008.

Overall customer satisfaction is measured on a 1,000 point scale, with a higher score indicating higher satisfaction. The study, which is based on responses from more than 5,800 owners of nearly 50 different vehicle models, was fielded from May to August 2009 and includes customers who had purchased their vehicles between May 2007 and August 2008.

SUV is the new market propeller for auto sales in India

India is always a country which has its own pecularities. While the rest of the world is going slow on gas guzzlers and the big cars including SUVs, the market for them back home is getting attrcative with every passing day.

Inorder to cash on the building demand for SUVs in India, many global and domestic auto giants have been busy rolling out newer models or variants of their existing SUVs to pamper the senses of drivers who want to have a 4x4 driving experience.

In the brginning we had SUVs from companies like Mahindra who rolled out Scorpio, Toyota had Qualis which was phased out and Tata Motors which had Safari and Sumo. But now, there are at least 15-20 models (including imported ones) sold by a huge chunk of multinational companies in the country. Furthermore, people are snapping up these vehicles pushing the companies to either stop the bookings or launch new models.

The new innings this year was kicked off by General Motors India which launched the AT version of its Captiva SUV, followed by BMW with its X6, while others have also followed suit. While companies like Toyota are not taking additional orders for its recently-launched Fortuner SUV, Ford motor Company is offering an attractive price tag for its refreshed 2009 Endeavour SUV.

Toyota Kirloskar Motor Pvt. Ltd. (TKM) has recently announced that it had received a record 5,000 bookings of the ‘Fortuner’ in just over a month. TKM is trying to ramp up monthly production figures from 500 to 600 units to meet high customer demand and is also planning to sell 2500 units of the ‘Fortuner’ during 2009 versus the earlier announced target of 2000 units.As of now, TKM dealers have been advised to take customer orders without advance payments, while committing to a tentative date of delivery. The vehicle is powered by a 3 litre Advanced Common-Rail Diesel engine and also features fulltime four-wheel drive.

Within a fortnight of Toyota driving in its Fortuner diesel SUV in India, segment leader Ford rolled out a new version of its Endeavour, pricing the automatic variant of the model competitively at Rs. 17.9 lakh (ex-showroom Delhi). It is believed that by keeping the pricing of the automatic version of the Endeavour well below the Rs. 18.45 lakh pricing of the manual version offered by the Japanese auto titan , Ford is aiming to lure away all the Toyota customers (who are not able to buy Fortuner SUV immediately) into its own showrooms.

According to an auto industry analyst, sales have gone niche and buyers are putting their weight behind the premium SUV category which range from Rs. 13 lakh and above. SUV manufacturers have thrown in newer models; each better than the last one, got the right buyers interested, and managed to return with envious sales figures. Industry observers sees the overall market size of this category at a little over 10,000 units annually, which though small holds the potential of growing fast in the long-term with the road network getting better and more and more people driving across cities.

The resurgence of SUVs is yet another reason for the automobile companies in India to cheer about..and joining the bandwagon is now Nissan India with its X-Trail. There is promise of more action in coming days.

India Poised To be “Detroit of the East”

It seems like India certainly has arrived in the big scene of motoring. India as a whole could be the “Detroit of the East” soon with so many major car brands bringing their production centre to “Incredible India”. India has taken the centre stage producing small cars and the global automakers already seem to have been enchanted with the sub-continent for this sole purpose. India is all set to pip China in the automotive production scene and earn all the automotive laurels to itself when it comes to small cars.

We in India already have Suzuki Motor Corporation pitching in with the erstwhile Maruti Udyog to become Maruti Suzuki India which has already scripted a success story for itself in style in the span of twenty five years. Hyundai Motors, a Korean car company soon followed suit and set shop here and has marched in India with their superior products and now has already exporting cars to European countries keeping India as its production base for small cars.

Likewise, Toyota Motor Corporation tagging along with the Kirloskar Group in India about a decade ago also started producing cars here in India and already acknowledged the fact that the Indian operations of the company has stood still even with the recession taking its toll in other countries abroad. Toyota also plans to come up with a small car factory by 2011.

General Motors which has its presence in India with the Chevrolet brand stood firm ground during “Motown Meltdown” which affected its parent company in the US and other countries. It also might have contributed to the revival of the parent company. Business for Chevy here in India is blooming in an unexpected pace making GM count on GM India as a profit making venture.

Tata Motors earlier a commercial vehicle manufacturer barged into the great Indian Motoring scene with the advent of its Tata Indica and soon went up to produce more models of which the Tata Nano certainly awaits a mention. This small wonder has broken all the barriers the motoring world ever knew and will soon become a cash cow for Tata Motors once the export of the Tata Nano begins.

Another Indian auto manufacturer Mahindra and Mahindra also has known the importance of India as a production hub and has already started exporting its products to lucrative auto markets like that south-east Asia, America, Europe, Africa and Australia.

Honda, Ford, Mitsubishi, BMW, Mercedes-Benz, Fiat and Skoda all have their production plants in India already. Audi, Nissan, Renault and PSA Peugeot-Citroen have also confirmed their participation in this big production marathon here in India. India expects a lot of other auto manufactures to set shop here in India.

But why is this big rush of global auto makers queuing in line to set shop in India? There are many benefits in India, including a high-quality vendor base that is also cost-effective, leading to globally-competitive pricing. In coming days we surely can see a lot of global auto makers emulate companies like Hyundai and Maruti Suzuki, which make small cars in India to export to Europe.

Logan in the Path of Change

Mahindra Renault Logan, an offspring of the joint venture between the Indian car manufacturer Mahindra and Mahindra and the French car manufacturer Renault though fetched good prospects initially for the company, has soon run into trouble and is hardly selling 500 units per month.
The company started realizing that the much hyped model of theirs is not bringing them profit and that their future is at stake. They had realized this some time back but did not bother to look back to rectify the problem as they did not want to figure out the problem! But now the company is finally ready to accept it and is getting ready to revive the sagging sales of Mahindra Renault Logan.
The company currently is in the lookout for more and more options to revive and boost the sales of the car. Of the many options that the company is considering are, to bring in a new model, abandon the Logan, and refresh the Logan and so on. This mid-sized sedan, which has supported the existence of the joint venture, will not be deserted by the company but instead will be given little tweaks here and there to make it a small car; in fact little tweaks will be too little to do the magic so perhaps some major ones.
Mahindra and Mahindra is in talks with the Renault to see whether they can dress up Logan as a small car and thus reducing the excise duty of the car by including it in the small car sector, which piggy backs on low duty. Let us all wait for a new Logan which will be not only seen in the green paint with a yellow number plate.

Logan in the Path of Change

Mahindra Renault Logan, an offspring of the joint venture between the Indian car manufacturer Mahindra and Mahindra and the French car manufacturer Renault though fetched good prospects initially for the company, has soon run into trouble and is hardly selling 500 units per month.

The company started realizing that the much hyped model of theirs is not bringing them profit and that their future is at stake. They had realized this some time back but did not bother to look back to rectify the problem as they did not want to figure out the problem!

But now the company is finally ready to accept it and is getting ready to revive the sagging sales of Mahindra Renault Logan. The company currently is in the lookout for more and more options to revive and boost the sales of the car. Of the many options that the company is considering are, to bring in a new model, abandon the Logan, and refresh the Logan and so on.

This mid-sized sedan, which has supported the existence of the joint venture, will not be deserted by the company but instead will be given little tweaks here and there to make it a small car; in fact little tweaks will be too little to do the magic so perhaps some major ones.

Mahindra and Mahindra is in talks with the Renault to see whether they can dress up Logan as a small car and thus reducing the excise duty of the car by including it in the small car sector, which piggy backs on low duty.

Let us all wait for a new Logan which will be not only seen in the green paint with a yellow number plate.

Hummer in India

General motors has made it public that they are looking at negotiations seriously with Mahindra & Mahindra Ltd. regarding launching the Hummer in India with full fledged availability.

GM had admitted to this in Thailand at the plant opening for production of new cars. There have also been talks of GM selling their Hummer division to the Indian company but that idea seems to be far fetched for the moment. Although there are several automakers in Russia and also China who could be interested in such a deal.

The company has been reporting its worse numbers in their corporate history and is looking to raise capital with the sale of its assets.

Mahindra Renault plans two new launches this year

French car maker Renault is looking to introduce up to two new models in India with its partner Mahindra & Mahindra this year, although it has indefinitely postponed plans to launch products from its Chennai facility.

"Our Nashik facility (capacity) is under-utilised. We are actively looking at introducing one or two new models from the plant in this year in order to have better utilisation of the capacity," a Renault India spokesperson said.

Renault's joint venture with M&M -- Mahindra Renault Pvt Ltd -- currently makes the Logan at the Nashik plant, which has an installed capacity of 50,000 units per year annum. It had produced 14,404 units in 2008-09 compared to 26,653 units in the previous fiscal due to fall in domestic car demand.

"We want to fully utilise the capacity," the official said, but declined to give details of the forthcoming launches.

Besides, the domestic market, the cars would also be exported to neighbouring countries, he added.

Renault had indefinitely put on hold introducing its cars in the Indian market from its upcoming Chennai plant on account of global slowdown, which has affected the firm's worldwide operations.

These cars are in great demand in India!

The passenger vehicle market may be slowing, but Maruti Suzuki's Swift Dzire sedan and Swift hatchback, Mahindra & Mahindra's utility vehicle Xylo and Hyundai's i20 have long waiting lists that have their manufacturers struggling to increase production.

Xylo, the multi-utility vehicle (base model is priced Rs 6.48 lakh (Rs 6,48,000) ex-showroom, Delhi) that was launched in January this year, has a waiting period of over two months.


Mahindra & Mahindra's xylo

Despite M&M raising prices by Rs 10,000 to Rs 12,000 about a month ago, sales have not been dented, say company executives.

The company had initially set a production target of 120 units a day; unprecedented demand has forced it to raise this to 130 to 135 units per day.

"The top-end variant is seeing the maximum surge in demand," said Pawan Goenka, president (automotive sector), M&M.


Mahindra & Mahindra's Scorpio

The Xylo has even eaten into the share of M&M's sports utility vehicle Scorpio and MUV Bolero. About a quarter of buyers who had planned to buy Scorpio or Bolero booked Xylo, said the company.

Maruti Suzuki's Dzire, the sedan version of the popular Swift hatchback that was launched in March last year, has a waiting period of three to four months for both versions (the diesel variant costs Rs 5.47 lakh (Rs 547,000) and petrol Rs 4.61 lakh (Rs 461,000), ex-showroom Delhi).


Maruti Suzuki's Dzire

"Initially, there were some constraints on availability of engines. Those are over and we are raising capacity.

But demand has also increased," said RC Bhargava, chairman of Maruti Suzuki.

He added, "It is difficult to say if we will have spare capacity to increase production further."

The company initially produced 3,000 Swift DZires a month but had to quickly scale up to 7,000 as demand grew. Bookings, however, crossed 10,000 vehicles a month.

"We have continuously scaled up production for Swift DZire but the demand is still far ahead. The car, which is promoted as a vehicle that meets all aspirational needs, will continue to see healthy growth in demand even in such a downturn," said Mayank Pareek, executive officer (sales and marketing), Maruti Suzuki.

About 65 per cent demand for Swift DZire is for the diesel variant.

Maruti's Swift hatchback has a waiting period of over three months in most markets, with the diesel variant being the most in demand.

Company executives said they were producing over 9,000 units a month but were booking about 11,000.

The petrol version costs Rs 3.99 lakh (Rs 399,000) and diesel Rs 4.67 lakh (Rs 467,000 ex-showroom, Delhi).

Hyundai had priced the i20 at a steep Rs 4.79 lakh (Rs 479,000, ex-showroom, Delhi) when it launched it in December last year and did not expect to sell more than 1,000 units a month.


Hyundai i20

Bookings however, have ranged from 2,000 to 2,200 cars every month.

"Initially we had a waiting list of 60 days but this has come down to 45 days after we increased production.

However, we had not anticipated this response for a car that was considered expensive in its category," said a company spokesperson.

Hyundai says that it has been able to increase production to around 1,500 a month -- which is around 7 per cent of monthly production -- by juggling the production of different models.

Mahindra to Launch Xylo in India

Mahindra and Mahindra announced that it is ready to launch its new MUV, Xylo, in India. It has developed its multi-ultility vehicle under the name of Ingenio. The new vehicle has been developed completely in-house after the success of its SUV, the Scorpio.

According to the press release from the company, “The much awaited Mahindra XYLO has been co-created with customers for developing a vehicle around the lifestyle and luxury aspirations of its end customer. This is further testimony to Mahindra’s customer centric vision of co-creating products and services based on the feedback and latent needs of its consumers.”

The vehicle has already undergone thorough testing in India and other countries. It is expected to be priced around Rs. 6.5 lakh to Rs. 7.5 lakh and will be pitted against Toyota Innova and upcoming Tata Indicruz Crossover.

“XYLO has been developed by a team consisting of 160 experts who have created new benchmarks in styling, technology and performance,” said Pawan Goenka, Mahindra Auto President. The car may be launched by end of December 2008.

Mahindra launches micro-hybrid technology equipped cars

Indian auto major Mahindra and Mahindra Tuesday unveiled new micro-hybrid equipped variants of its Bolero and Scorpio line-up.Micro-hybrid is a stop/start technology, which enables the car’s engine automatically switch off when the vehicle comes to a complete halt in the neutral mode. The engine restarts when the driver steps on the clutch to shift the gear.

The technology is aimed towards fuel savings at stoppages at intersections and traffic jams.

Mahindra is currently offering the technology in Scorpio’s Bharat Stage 2 compliant M2DI variant and Bolero’s SLX version.



The price difference between vehicles equipped with micro-hybrid technology and the regular vehicles is between $85 and $89.

The system is based on the principle of not burning fuel when it is not required. It detects moments, during the drive, when the vehicle is idle and stops the engine. This conserves fuel, and also leads to low emissions.

Mahindra, which has dubbed the technology as FuelSmart, developed it in collaboration with German automotive component maker Bosch.

“This is a technological innovation, which we have developed with support from Bosch. This will give an average fuel saving of about five percent from the normal vehicles,” Mahindra president (auto motive sector) Pawan Goenka said.



The company is also considering to use the technology in its yet-to-be launched Ingenio sports utility vehicle, he said.

Goenka did not give a specific figure on the sales target for vehicles equipped with the technology.

He said the technology will initially be offered in the domestic market, adding: “We may look at similar markets like Southeast Asia and Nepal in future but our present focus will be on the domestic market.”

Mahindra First Choice Services launches CarXSpace outlet

Mahindra First Choice Services Ltd., a part of the $6.7 billion Mahindra Group, today inaugurated its first CarXSpace multi-brand car service outlet in Chennai. Spread across 15,000 sq. ft, the outlet is located at Thiru Vi-Ka Industrial Estate, Guindy Industrial Estate and will service all brands of cars across segments. This is the company’s third outlet since launch and its first outlet in South India.

“We are delighted to introduce the CarXSpace brand experience from Mahindra First Choice Services Ltd., to Chennai. In India, the car servicing market mainly comprises authorized repairers and independent garages. Our market research has shown that car owners would prefer a service outlet such as ours with a value proposition built on trust, customer experience and convenience,” said Mr. Rajeev Dubey, President (HR, After-Market & Corporate Services) & Member of the Group Management Board, Mahindra & Mahindra Ltd.

“The new CarXSpace outlet at Guindy has eight compact bays and trained technicians will service a limited number of vehicles per day, ensuring each customer gets individual attention. Customer centricity is a key aspect of business at CarXSpace with each customer receiving photographic evidence of work undertaken on his car. Since our inception in May 2008, we have serviced 35 different car brands and are being perceived as a one-stop shop for multi-brand car servicing,” said Mr. R. Subramani, CEO, Mahindra First Choice Services Ltd.

CarXSpace aims to redefine the car servicing experience in India with a range of unique services available at very competitive rates, as compared to authorized dealerships. The company employs technicians who can cater to multi-brand servicing requirements. Only original spares and accessories, directly procured from companies at competitive rates, are used. CarXSpace also follows stringent quality measures including photographic evidence of parts being changed and a mandatory 50 point check which is performed on all cars with an Engine Analyzer. Moreover, car owners are given a warranty that their cars will not need repairs for the next 4,000 kilometres.

Vehicles will be washed only with car shampoo and soft water as the mineral content in hard water may cause scratches to the body and underbody of the car. Each outlet will have a water softening facility for this purpose.

Car owners can relax and enjoy a cup of coffee in a soothing ambience while their vehicles are being serviced. They can also avail of a unique pick-up and drop service for their cars and a ‘night only service’ where repair work will be undertaken only at night. In case extensive work needs to be carried out, the company will provide a temporary car to the owner for his use.

The company’s first CarXSpace outlet was launched in Parel, in Central Mumbai, in April 2008. Since then, it has seen a steady of increase of both corporate and individual customers with an average of 15 cars serviced per day. The outlet has undertaken both mechanical and body shop repairs for 27 different car models.

The second outlet was opened in Andheri in Suburban Mumbai, in September 2008 and is already servicing an average of nine cars per day.

Mahindra First Choice Services Ltd. is part of the Mahindra Group’s newly launched After-Market Sector which also includes Mahindra First Choice Ltd., which undertakes purchase and sale of pre-owned vehicles and the Mahindra Spares business (both Mahindra and non-Mahindra). The new vertical seeks to create a business ecosystem in the after-market space which mirrors the ecosystem for new vehicles.

The vehicle population in India currently stands at 6 million cars and is estimated to grow to 17 million by 2015. This implies vast, untapped potential in after-market services encompassing multi-brand pre-owned vehicles, servicing, spares and the financial instruments and exchange platform which support this value chain.

Skoda prepares to thrill with four new models

Czech automobile manufacturer Skoda Auto plans to launch four models next year. It is also setting up a financing outfit.

At present, Skoda sells four models in the country — the hatchback Fabia, and the sedans, Octavia, Laura and Superb. They are priced in the range of Rs 4.8 lakh to Rs 24 lakh.

Next year, there will be the Fabia Sports and Fabia Combi along with new versions of the Laura and Superb.

Skoda has recently launched its compact car, the Fabia, in India. It’s an upmarket hatchback priced between Rs 5 lakh and Rs 7.68 lakh.

The car is available in three engine variants — 1.2 and 1.4 litre petrol and 1.4 litre diesel.

The Fabia Sports will carry a tag of Rs 10 lakh, while the Fabia Combi is expected to be built on parent company Volkswagen’s B6 platform.

Skoda plans to sell 20,000 units in this calendar year against 13,000 last year. It has already sold 9,556 cars in the first six months.

In July, Skoda had raised the prices of all its models. The hikes were in the range of Rs 16,000 to Rs 25,000.

Finance arm

A credit crunch resulting from a tightening of lending norms by financial entities has prompted Skoda to set up the finance arm.

According to Thomas Kuehl, member of board (sales and marketing), Skoda Auto India, “Since 80 per cent of our total sales are financed, the company has decided to launch Skoda Finance in the country. It should be operational by the last quarter of this year.”

Companies such as Bajaj Auto, Tata Motors, Maruti Suzuki, Hero Honda, Mahindra and Mahindra are focusing on non-banking financial companies to help accelerate sales that have been lean in the past few months.

Hero Honda has tied up with Fullerton India, a non-banking finance company, to support purchases on the basis of loans.

Reva Car Co to hold petrol to electric car exchange mela

Bangalore-based REVA Electric Car Company (RECC), India’s first electric car manufacturer, is organising the first ever “Petrol to Electric Car Exchange Mela” in Bangalore on September 13-14, at its showroom. This will be the first time where customers can actually exchange their petrol cars for a brand new electric car – the REVAi.

R.Chandramouli, President, Sales and Marketing, RECC said, “RECC is really proud to bring the first ever petrol to electric car exchange offer to customers in India. It is a big step towards fulfilling the growing need for a suitable, cost effective, environment friendly transportation alternative. Besides protecting our customer’s pockets; going for electric cars is also friendly to the environment.”

The evaluation for exchanged cars will be done by Mahindra First Choice, a used car dealer. The State Bank of India, which is the partner for this exchange fair will be present at showroom to assist customers on finance matters. REVA has an electric car manufacturing plant in Bangalore with an installed capacity to manufacture 6,000 cars per annum.

Ann Street Auto Sales to sell India's Mahindra diesel vehicles

Most shoppers go to Ann Street Auto Sales searching for late-model used cars. But by next spring, the 50-year-old dealership at 1970 Alpine Ave. NW turns a corner, becoming the region's first new-car source for three diesel-powered vehicles from India.



Mahindra & Mahindra, better known among agricultural circles for its line of farm tractors, is on the brink of selling its Scorpio seven-passenger SUV and two models of utilitarian pickups as early as March, said David Brock, the dealer's general manager. He's heading the expansion into new car sales at Ann Street Auto, and saw the Mahindra line in Atlanta last fall.





"Their main SUV, the Scorpio, is a seven-passenger comparable to the Explorer, or a little bigger," Brock said. "They'll all come with direct-injection diesels, so they're very, very clean for the environment, and a lot higher on gas mileage." How high? In the 32 to 35 mpg range, Brock said. "It's almost double anything out there right now," he said. Mahindra's U.S. distributor, Global Vehicles, is based in Alpharetta, Ga.

But the India automaker already plans to bring pickup assembly to an Ohio plant as soon as next year, Brock said. He expects the Scorpio to sell in the $24,000 range, with the two yet-unnamed trucks in the $20,000 range. The biggest market may be in the farm community, where Mahindra tractors are the No. 3 seller in the U.S. Brock initially investigated a Romanian automaker, but that deal fell through. He is less enthused about the prospect of autos from China.

"I don't think they'll be here for a while," Brock said. "There's a lot of cars out there that are a lot cheaper in other nations. But by the time you add the expense of making them work in the U.S. market -- anti-rollover, air bags, ABS brakes -- I just don't see it happening down the road."



Newcomers to the U.S. car market face fierce odds, especially when they try to set up a dealership network. That's the biggest challenge for Chenfang, Mahindra or any other automaker not yet stateside, auto analyst Grand Rapids Erich Merkle said.

Although a car from China could sell for less than $10,000 here, Merkle said, Toyota Motor Co. already has the small Yaris in place to compete with it. The Yaris starts at $12,000, but it has a big advantage over Chenfang: a big dealer network. "Buyers know Toyota is going to be here. They brought the Yaris over here as a defensive move against any Chinese automaker coming into the market," Merkle said.

The Mahindra SUV and basic pickups might appeal to a niche crowd, Merkle said.



"The vehicles are a little on the crude side; they don't have all the comfort and convenience features," said Merkle, a Crowe Chizek analyst.

"They look more like a piece of farm equipment than anything else." The tractor business is the key to the new line's success, Brock said. Mahindra already has two tractor plants in the U.S. and has been in the market for 10 years. "I really believe they're growing at the grassroots," he said.

As for reliability, Brock said, he realized Kia and Hyundai first imported lower-quality cars "until they got their act together." But Mahindra won't go that route. "They're not going to bring over an inferior product," Brock said.