Mitsubishi may launch Thai eco-car in India

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

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

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

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

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

When asked, company officials declined to comment.

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

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

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

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

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

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

New Niche Vehicle to be Introduced by Hindustan Motors

Just a few days ago, we reported that Mitsubishi Hindustan Motors decreased the prices of their cars by some six thousand rupees in India. The last few months have been busy for Mitsubishi. Now Indian newspaper, The Economic Times, is reporting that Hindustan Motors will introduce a new "‘niche vehicle", which will be sourced from Mitsubishi Motors’ stable.

R Santhanam is the managing director of Hindustan Motors. On the sidelines of the sixty-seventh annual general meeting of the company, Santhanam explained, “We are gearing up for the launch of a niche vehicle, hopefully, within this year, for which we are awaiting requisite homologation from ARAI (Automotive Research Association of India).”

Mitsubishi Hindustan Motors launched their Outlander sports utility vehicle in October last year while in March 2009, they rolled out the Montero, which costs somewhere around Rs. 41.88 lakhs (ex-showroom). However, Santhanam hasn’t revealed anything about the price bracket for the niche car from Hindustan Motors.

Automatic cars find many new women buyers The auto industry has some new positioning working out to its advantage. Automatic transmission cars are se

The auto industry has some new positioning working out to its advantage. Automatic transmission cars are seeing brisk sales, thanks to the growing number of female customers who have developed a penchant for such cars. It is widely believed that automatic transmission variants of a number of models are finding a lot of woman takers as it enhances the comfort to drive such cars.

A number of companies that have lined up new automatic transmission-enabled models like Hyundai's i20, GM's Captiva (AT version), Fiat's Linea et al. Moreover, the recently launched models like Honda City, Mitsubishi Outlander, Mahindra Scorpio etc are already equipped with the aforesaid feature. Unlike before, carmakers are offering new-age five to six speed automatic transmission systems which are offering better fuel-efficiency along with improved pick up and performance.

One of the top-selling cars of such variants is the premium hatchback car-i10, which is selling over 1,600 automatic transmission variants per month, which is more than the company's initial estimates.

It was reported earlier that Mahindra & Mahindra Ltd. (M&M), on 22nd September'08, has launched the Scorpio Automatic in Pune and Bangalore, which incorporates a fully automatic 6-speed gearbox and the powerful 2.2 litre mHawk engine. Scorpio is the first Indian brand and the first SUV in its class to offer a 6-speed fully automatic transmission.

According to a senior representative of Hyundai Motor India Limited, the sale of automatic variants of i10 have exceeded the company's expectations. He added that there has been an overwhelming response from woman drivers and the growing congestion in the urban centres is pushing up demand. He also indicated that the company will also roll out the automatic transmission variant in its Verna sedan too and would also bring a variant for the physically challenged.

Commenting on the new trend, one of the top honchos of Honda Siel Cars India (HSCI) has stated that the company sells the automatic transmission variants for most of its models like Civic, Accord, City, CRV. He added that female buyers are inclined towards high-end features and automatic transmission is one of them.

According to a senior official of GM India, the Captiva model has been selling like hot cakes. Buoyed by the burgeoning demand, the company has decided to launch the automatic variant soon (with a four-wheel drive), that will cost around Rs. 20 lakh.

Ford sets early 2010 target to launch small car in India

Armed with a $500-mn investment outlay, Ford Motors has set early 2010 as the target to launch a small car in India, start its new engine-making unit and double the assembly line capacity, a top official said here.

The US-based giant will also unveil its refurbished Ikon by next month to expand its range of offerings in the country that includes Fusion, Endeavour and Fiesta, said Michael Boneham, managing director and president of Ford India.

"Ford now has a presence in only 30 percent of India's automobile market segments. We are entering other segments too. These are exciting times," Boneham told IANS at the company's factory at Maramalai Nagar on the outskirts of the Tamil Nadu capital.

"We are also commissioning a new engine manufacturing unit. It will serve both the domestic and global markets. It will have the flexibility to produce diesel and petrol engines. The idea is to go for higher localisation in the months to come."

Speaking about the small car project, the Ford official said it was being designed and developed specifically for India by a global team. "It will meet the needs of Indian conditions - like water wading, air-conditioning and emission standards."



While declining to divulge any further information on the project, Boneham said it will have a sub-1.2-litre engine with a length of no more than four metres to avoid higher taxes. "It will be very, very competitive in that segment."

Ford's first offering here was the "Josh machine" Ikon that rolled out in 1999 from this city, often called the Detroit of India for hosting auto companies like Hyundai, BMW, Mitsubishi, Ashok Leyland, Caterpillar, TVS, Tafe and Same.

Nissan and Daimler are among some global players that have definite plans to set up their units in this city.

Boneham said the company's integrated engine plant for 250,000 units per annum will be its first outside Europe and will make low-displacement engines for cars to be rolled out of its Indian plant for both domestic market and exports.

He said the existing $26-mn diesel engine assembly plant, with a capacity for 50,000 diesel and 10,000 petrol engines for Fiesta and Fusion, would be eventually integrated with the new plant.

The company has the capacity to assemble some 100,000 cars per year at its facility here, which will be doubled to 200,000.

Queried about the future of its tie up with the Indore-based Avtec that supplies 1.6 litre petrol engines, Boneham said: "We will continue to work with them. We will look at sourcing components from Avtec."

He also sought to dispel the perception that the cost of ownership of Ford cars was high compared with those offered by Japanese and South Korean companies, as several factors like fuel efficiency and servicing were also involved.

"As per our study, in some parts we are costlier and in some others we are cheaper. Overall, we are very competitive in this area. We are working to lower component costs further. Our diesel engine is more fuel efficient than many others," he said.

"High localisation is intended to achieve that. We are extremely quality conscious. Today, we can say we are far more satisfied and comfortable with our vendors."