Showing posts with label Nano. Show all posts
Showing posts with label Nano. Show all posts

Tata Nano, world’s cheapest car, set for U.S. debut in New York

The Tata Nano, the world’s cheapest car and arguably the world’s most discussed automotive innovation since the Ford Model-T, Volkswagen Bug and ‘57 Chevy, will make its United States on Feb. 18 in New York — sort of.



The Nano, “the People’s Car” which debuted in India last year amid much anticipation as the newest offering of Tata Motors, is currently available in its native country.

But the Nano (only one) will be make its first United States appearance as a “design achievement” at the Cooper-Hewitt National Design Museum in New York.

The bright yellow edition of the Nano will be on display at the Great Hall of the museum, located at 2 East 91st Street in Manhattan. The Nano will be on display with accompanying literature and pictures through mid-April.

“The Cooper-Hewitt is showing the Tata Nano because, as the world’s most affordable car, it is a design achievement and it has public fancy,” said Cara Mc-Carty, the museum’s curatorial director.

Tata Motors has already passed all European Union crash tests and safety norms and is expended to launch Nano Europe within a year. Tata’s electric vehicle, Indica, was displayed in at the Delhi Auto Expo in January and a hybrid is in planning stages.

Tata has discussed distribution of the Nano in the United States, but there are no definitive plans.

Tata to Launch U.S. Nano

Tata Motors, the people's car of India, could, in just a matter of years, drive into the U.S. auto scene.
At the opening day of India's 10th Auto Expo in New Delhi on Tuesday, Tata Motors'chairman announced that the company will bring the small, affordable car to the U.S. in three years, albeit with modifications to make it more appealing to the U.S. market -- mainly the inclusion of larger engines, which would require additional crash tests.
"We recognize that there is a market for the Nano in developing countries," Ratan Tata said. "We also recognize there is a market for a low-priced car in the developed world." The Nano is currently priced at about $2,500, making it one of the cheapest cars in the world.
The introduction of the Nano to the U.S. could follow sales in Europe by the end of 2011, according to Reuters.
Alongside auto majors like Toyota, Honda and Suzuki, who showcased compact and "green" cars during the auto expo, Tata Motors unveiled four low-, mid- and high-end vehicles, according to the The Economic Times of India. Among them were a seven-seater multipurpose vehicle named Tata Aria, an 8-seater Tata Venture, the Magic IRIS and the Jaguar XJ sedan.

World's cheapest car is starting to enrich India's Tata Motors

The automaker is producing only about 100 of its $2,200 Nano cars a day but hopes to ramp up to 1,000 a day next year. Analysts expect it to put millions of new Indian drivers on the road.

The tiny Nano cars made by India's Tata Motors are starting to hit the road in that country after a land dispute forced the relocation of the car's manufacturing plant and delayed its launch.

Analysts say the Nano could rock the international auto industry and put millions of new Indian drivers on the road.

Although Tata is producing only about 100 units a day, Tata director Jamshed J. Irani said it hoped to ramp up to about 1,000 vehicles a day next year. Tata has also started building low-cost homes, which the media have labeled Nano homes.

EMI Provokes Nano Cancellations

Tata Motors has completed allotting the first one lakh Nano in July. Some 55,000 people were named 'retainees' whose booking amounts Tata Motors had retained, promising to pay them interest at the rate of 8.75%.

Currently, it has been noticed that people are cancelling their allotted cars citing the high EMI's the banks are charging on the cars than the usual EMI's.

Central Bank of India received around 9,200 applications for the Tata Nano, of which 7,200 people got their allotments. However, 4,700 applicants are yet to get their cars only in 2011, and a majority of them have opted out according to an official with the bank.

People are being deterred by the huge gap the actual car delivery date and the start of the EMI installments. This is because people are asked to pay the EMIs on the booking amount (between Rs 95,000 and Rs 1,40,000, depending on the model, and the interest paid thereon at the rate of 10%-10.5%) start a month after allotment.

It has been revealed that more "than 60-65% of the 5,000 people" who applied for the car through Union Bank of India have either not got allotment or chosen not to take it.

The Nano is being manufactured at the Pantnagar facility of Tata Motors, which has an annual capacity of 50,000 units. It is apprehended that once the Sanand plant in Gujarat is completed, the company will manufacture 350,000 units a year.

China emerging as new world auto power

America's auto titans are dismantling their global empires. But across the Pacific, it's as if the global

economic forces that have pummeled Detroit never struck. Chinese auto sales are up, and China is projected to displace Japan as the world's largest car producer this year.

Now, the auto world is buzzing that China's auto industry may try to pick up the pieces of Detroit at a bargain.

Chinese companies have tried to dampen speculation, issuing regulatory filings that deny bids to buy Ford Motor Co.'s Volvo or General Motor Corp.'s Saab. But there's little doubt among analysts that Chinese automakers are interested in the United States and that Detroit's automakers are interested in them.

Buying up brands such as Hummer or Saturn could supply Chinese automakers with the technological expertise to help them leapfrog past long-established competitors, said Kelly Sims Gallagher, a lecturer at Harvard University's Kennedy School of Government who wrote a book on Chinese automakers.

"That's where Chinese firms are weakest," she said. "They have world-class business and manufacturing capabilities now. What they still lack is technological know-how, systems integration, being able to design new vehicles from scratch and get them to a manufacturing line."

China still suffers from its reputation of being a copycat manufacturer. An acquisition could lend clout to some of the nation's 100 car companies that are largely unknown outside their home country.

Such a deal would be "off-the-shelf legitimacy that you can purchase," said Aaron Bragman, an auto analyst with IHS Global Insight.

The global auto industry is restructuring. Italy's Fiat Group SpA is on the verge of taking control of Chrysler LLC. Last year, India's Tata Motors, already famous for its $2,000 Nano, acquired Jaguar and Land Rover.

And China's auto sector has emerged as a threat to the long-standing pecking order.

Geely Automobile, one of China's largest private carmakers, purchased an Australian drivetrain transmission supplier, a leading gearbox manufacturer, this year. Weichai Power, one of China's top diesel engine manufacturers, acquired a French diesel engine producer. Another Chinese company, BYD, which counts Warren Buffett as an investor, launched a mass-market plug-in electric car, ahead of GM's anticipated Chevrolet Volt.

Detroit's annual auto show in January was somber, but Shanghai's show dazzled attendees with throngs of models, rock bands and light shows. This year, Nissan Motor Co. Ltd. skipped Detroit and attended the Chinese event in April. Mercedes-Benz, BMW AG and Porsche SE all unveiled new vehicle models in Shanghai.

"The center of gravity is moving eastward," Dieter Zetsche, chairman of Daimler, told reporters at the show.

"When we look back 20 years from now, the year 2009 is likely to be viewed as the year in which the baton of leadership in the global auto industry passed from the United States to China," Jack Perkowski, a Western transplant and former chairman of a Beijing auto parts company, wrote in his blog "Managing the Dragon."

Some of China's bigger manufacturers, such as Chery Automobile, have trumpeted their intent to export Chinese-made vehicles to the United States in the next few years. To get there, they'll need to revamp their products to meet stringent U.S. emissions and safety standards.

That's no simple problem. Previous plans to ship Chinese cars to U.S. soil have crumbled. A company called Brilliance missed its goal of launching U.S. sales in 2009. BYD said it would introduce its cars to Americans in 2010 but has pushed their arrival to 2011. Other potential contenders have gone out of business or are struggling to stay afloat.

In 1994, Beijing released a plan to triple auto production by 2000 and reduce imports. The government lured foreign producers to bring their technology overseas and invest in Chinese auto parts firms. It aimed to modernize domestic manufacturing by creating joint ventures with foreign automakers such as GM.

As a result, China's auto sales took off in 2000. In 2002, they crossed the 1 million mark. More recently, the numbers have taken a hit in the economic crisis, forcing companies to curb exports to countries such as Russia and Vietnam.

But after the industry pressed Beijing for a bailout late last year, the central government responded with subsidies and slashed the sales tax on small, fuel-efficient cars, spurring demand. And analysts say the expansion of the country's web of roads and highways — part of an economic stimulus package — coupled with a growing middle class could fuel more sales for years to come.

In April, China's vehicle sales jumped 25 percent, compared with a year earlier, to a record monthly high of 1.15 million units. It was the third consecutive month that China has surpassed the United States in sales.

GM, which has two joint ventures in the country, also hit a monthly record in April with its sales jumping 50 percent from a year earlier. The automaker plans to import cars from China starting in 2011, according to a GM plan circulating in Congress.

But in the United States, auto sales fell 34 percent last month. And GM, which has received $15.4 billion in U.S. government loans, says it is likely to file for bankruptcy protection.

Nano - The Complete Story So Far....

One of the most important events in the history of automobiles on our planet has happened. The Tata Nano has been launched!

Welcome the most-anticipated Indian car ever. This story is a part of a special leading up to the launch of the Tata Nano.

Nano Mania



I. The history of the people's car

Vehicles built for popular consumption are not a new phenomenon. They are, in every case, popular, innovative and in their time, cheap. Four cars have excelled at this in the past, and every one of them is revered today as a milestone in the history of cars.

The people's car is not a new idea. At various times in history, a manufacturer has either recognised the demand for one, or has been forced by the need of the hour to create one. In every case, the car that has resulted has shared some common attributes - their inexpensive price tags, their

reliability and in time, their iconic status. One thing is for sure, this is not the complete list of people's cars, but these four, we believe, are the most important icons of that popular category of cars.



Ford Model T
The Model T, or Tin Lizzie, predated other people's cars by a decade and was the first production car. This you know. Henry Ford's goal was simple, "I will build a car for the great multitude. It will be large enough for the family, but small enough for the individual to run and care for. It will be constructed of the best materials, by the best men to be hired, after the simplest designs that modern engineering can devise. But it will be low in price that no man making a good salary will be unable to own one - and enjoy with his family the blessing of hours of pleasure in God's great open spaces." And in hindsight, he succeeded on all of those fronts, right? The 20.2hp, 2.9-litre inline four was reliable and powerful enough to drag the T to over 65kmph. Prices began at $850 in 1909 but fell to about $450 by 1915. Which was dirt cheap compared to the other cars at the time, which tended to stay over the $2,000 mark. Today, that would peg the Ford Model T at roughly $9120 or Rs 4.7 lakhs.

Fiat Topolino
It wasn't quick, it wasn't fast, it was difficult to fix thanks to its size. But Fiat's Topolino ('Little Mouse', the Italian name for Mickey Mouse) was pleasing to look at, drank almost nothing and proved to be spacious. And that was enough to make it a legendary car. The Fiat 500 (official name) was produced from 1936 to 1955, although truth be told, it almost never got made.

The plan for the car was in the building back in 1919, but though brochures were printed, the car wasn't minted. In 1934, Agnelli, Fiat's boss visualised the 5,000 lire people's car that would carry two adults and 50kg of stuff. Dante Giacosa, a young aeronautical engineer worked on the powertrain while Rudolfo Schaffer created the two-part body. The 500 was ready. It cost 8,000 lire, then, way over the target, but the buying public didn't notice, really. Until 1955, without any major mechanical mods, the Fiat 500/Topolino ran a 569cc four-cylinder side-valve water-cooled engine mounted ahead of the front axle. It could hit 85kmph, return almost 17kmpl and was priced at Lire 8900 (roughly $440, then), which, adjusted for inflation works out to $6620 (Rs 3.42 lakhs) today. In the 1955, the new 500 Fiat launched turned out to be so iconic, that the new one is remembered today as the Fiat 500, and not the Topolino.

VW Beetle
There's isn't much that hasn't been said about Volkswagen's Beetle. You should already know about its charm, how Hitler and Ferdinand Porsche had roles to play in its creation, how popular it was, and remains and so forth. The Type 1, as it was known internally, gained the name of Käfer, the German word for beetle, and that's what we know it has. Its spawned a variety of versions, and very few were officially called the Beetle. Point is, the car was a triumph of simplicity and reliability. The original was supposed to carry two adults and three children at speeds of up to 100kmph. At launch, there was a special scheme that allowed Germans to buy the car for 990 Reichsmarks, roughly US$ 235. Adjusted for inflation that works out to US$ 3425 or Rs 1.8 lakh. That's roughly half the price of the Topolino - a contemporary people's car - mind you. Obviously, the scheme included subsidised prices, but there it is - cheap and best. Ironic as it is, the Beetle and the factory it was made in almost didn't survive the aftermath of WWII. But it was the British - first due to their lack of interest in moving the factory to Britain, and later, due to British Major Ivan Hirst who extracted an unexploded bomb and restarted production - who are actually responsible for the Beetle's subsequent rise to popular cult icon.

Citroen 2CV
Pierre-Jules Boulanger wanted a small, cheap car ('umbrella on wheels') that would take two peasants, 100kg of produce at 60kmph, returning 33kmpl. And it would have to traverse a field without breaking the eggs it was carrying. The 'Deux Chevaux' did all of this, and how! Having somehow survived WWII, and in the process losing aluminium parts to steel, the final 2CV appeared in public in 1948 at the Paris Show. At launch in 1949, the 2CV beat its many detractors by proving wildly successful among the lower-income populace. Within months, the waiting list grew to three years and used 2CVs were actually more expensive to buy because new ones would take time. The original 375cc flat-twin produced a laughable 9bhp, and the engine saw upgrades that, er, took care of the lack of power to some extent. But the 2CV was never about performance. It was reliable, cheap and it got the job done. The thousands and thousands of buyers confirmed that it did that with a cheerful demeanour. By 1955, the 2CV was priced at roughly $1200 in the US. Today that would mean $9195 or Rs 4.75 lakhs.

The Tata Nano, as you can see already, will be part of this legend. In the past few decades, we've lost, to some extent, the focus on the people's car. Ratan Tata has ensured, with the Nano, that popular cars for the populace will come back in fashion.

II. Ratan Tata's Dream



Ratan Tata met an extremely select group of senior editors before he unveiled the Nano at the Auto Expo. This remains the most detailed interaction he has had with journalists since the Nano hype hit the global buzzwire and sent it spinning into a frenzy.

It seems the seed that will blossom into the Nano was sown years and years ago in Kolkata (then, Calcutta), when Mr Tata would use the iconic hand-pulled rickshaws. He would consider a solution to the problem of his own personal safety and of the obviously hard life that the puller must go through. His visits to plant showed him a similar problem - a sort of inherent disregard for the comfort of and to some extent the safety of the workers. This brought him to the conclusion that safety is affected, among other factors, by fatigue.

Obviously, this applies to our lives in many aspects. And perhaps the one situation relevant here is a pretty common sight - family of four on a scooter. We've all been there before - kid on the front, second kid in mother's arms, and dad riding. In the days of the Lambretta, riding on the spare wheel was a special privilege, even. But is that really safe? We all know the answer. Add in the normally greasy Indian roads, especially during our fairly violent monsoon, and poor visibility at night, and you have a rather precarious situation.

While Tata admits that scooters have their place - their a step-up from bicycles and so forth - it started him thinking of a solution to the problem.

He admits to thinking about adding, in effect, a roll cage. He considered adding two wheels to the back for stability - a cheap trike, even. Then he spotted BMW's C1, which was, in effect exactly the thing he'd been thinking of. We all know that as quirky and logical as the C1 was, it was a sales flop. Riders didn't take to it because the roll-cage structure added weight to the top, which made handling a bit weird. Today, the C1 remains an icon, but hardly something remembered as an innovation that changed the world.

Tata says that the only difference between his vision of a safer two-wheeler and the C1, perhaps, was the fact that the C1 was, determinedly, a proper two-wheeler, while his vision was of a roll-caged trike.

This led him to start considering four-wheelers. Initially, this dream circled scooter parts to keep costs in check. And when Tata brought up the idea at an ACMA (Automotive Component Manufacturers' Association) meeting - he wanted to collaborate with other Asian manufacturers to jointly design and produce an Asian peoples' car, the response was not encouraging. He said, candidly, that only Brij Mohan Munjal showed any positive response, but the idea was never taken forward by either party.

When Tata realised that the scooter part focus was part of the problem in the design and not really a solution, the dream restarted afresh. This time from scratch. Tata wanted no legacy influence on the design, which allowed it to break free from the shackles of convention and history, as it were.

It was this design process that threw up the fact that a three-wheeler was unfeasible. That the car couldn't be anything but a proper car to succeed. Initially, the focus was a 'rural car.' Ideas like rolled up plastic curtains, open doors - like an auto rickshaw, or a open cutout with a safety bar were all duly brought up and eventually, rejected. It had to be a proper car, Tata reasserted. It became clear to him and his associates that the

end result should be a car, not something people could dismiss as an autorickshaw with four wheels or a scooter with doors. In 1998, Chrysler showed a concept car called the CCV, or Composite Concept Vehicle. While the concept itself didn't really make that big a splash, it's message - you can build cars with plastics - stayed with Tata. Engineering plastics can fulfil the structure demands but they have an obvious cost benefit - they are coloured by pigmentation, not painting. The whole plastic is the colour your perceive, the paint is not a layer on top. This saves the cost of painting the car. But once again, the idea ran into trouble when the team realised that the plastic car would always be just that. A car, at least in people's heads, had to be of metal.

That, really, laid the foundation of the Nano program. The Nano had to be a proper car, but to keep the cost in mind, Tata's team would have to work really, really hard to pare down the costs. As Tata said at that breakfast meeting, it's taken the company a really long time - he estimates that the program took between a year and a half or two years longer than it should have. All of the challenges, according to him, were cost related. Tata needed something to compare the Nano against, and they took the Maruti 800 as the benchmark. The Nano had to equal or exceed the M800 on various aspects. Now, if the Nano was to match the 800 in, say, acceleration, then the car would have to have a larger engine - which meant corresponding costs would have be pared off some other part of the car, and some parts would have to be repackaged to create space for the larger engine.

III. The innovations in the Nano



So, how exactly did Ratan Tata and his team get the price of the Nano where they wanted it? Before you start screaming cost-cutting, there's more to it than just that. The Nano team scratched their heads, put on their thinking caps and if you're a management type, they even brainstormed. It's no wonder that the Nano and patent applications appear to have gone in hand in hand.

At this moment, a fair amount of information on how the Nano was brought to its intended price tag without compromising its design brief - 'a proper car' - is yet to be announced. But here is what we do know.

1. ECU
The ECU, or engine control unit, is a central part of any modern day motor. It is in effect a small computer that controls all aspects of engine operation. Given the sheer complexity of even the simplest engines, they can be expensive. The complexity is not inherent, it is needed because an engine today must satisfy emissions norms, sound norms, produce an acceptable spread of power, return an acceptable level of economy and still more. This complexity makes it crucial and in the case of the Nano, expensive. However, Tata worked with Bosch to take the ECU down to an unprecedented price. Among the solutions employed, is the fact that the sensors used by the ECU to govern the engine are down to half the usual number. And from what we hear on the Nanos testing in and around Pune, the engine works perfectly.

2. Wiper
Sometimes it's in the details. Ratan Tata's direction to the designers at IDea - to reduce the wiper count to one has been well-publicised. The usual subtext was that it neatened up the car's looks. While true, it's a part of the cost-conscious design that's ensured that careful design ensures lower costs without compromising useability.

3. Small wheels and mounting
The Nano's cuteness is in part due to the tiny wheels it rolls on. These aren't incidental either. The Nano was carefully designed to use these. Small wheels are lighter, which positively impacts economy, performance and ride quality. Further, these wheels were mounted with only three lugs, again,keeping costs in mind while examining and improving decisions that have become automatic in car design. The small wheels and the light weight have also ensured that power steering will probably not be missed in the car - again, this saves cost and complexity. Further, the design team split the tyre sizes to give the front a slightly thinner spec, while keeping the driven wheels fatter. This balances the impact of the wider track at the front, and in driving terms should endow the car with mild understeer at the limit - which is a safety feature. If Tata hadn't planned for the understeer you would probably have got a car like the early Porsches which had a rearward weight bias that resulted in their famously snap oversteer characteristics. In simpler terms, the Nano has a rearward weight bias due to the engine. This, on its own, can be a problem when taking corners at speed, where the rear end starts to behave sort of like a pendulum, dragging the car off the line. The engineered understeer counteracts this and should produce, depending on how good the design is, a balanced, neutral car. And lest we forget, smaller tyres mean less rubber, so theyshould be cheaper as well.

And don't forget the non-opening hatch. That means no costs in terms of beading, hinges and locks, and that the whole panel can be a relatively cheap addition to the monocoque which will add to the strength of the chassis without adding cost.

4. Light body
The extremely light body weight indications suggest that Tata found some sort of format that allows the upper monocoque to remain pretty light without compromising the chassis rigidity. What is already known is that the Nano uses a light gauge metal body and the production process will aim for minimum wastage.

5. Engine format/placement
The four-stroke parallel twin 624cc engine has been the source of most of Tata's patents that come from the Nano project. The single-counter balancer equipped motor is being labelled as a world first for a car application. The engine is fuel-injected, of course, and we expect the final spec to show that it is a two-valve single overhead cam design. But it wasn't the engine alone that's worthy of being mentioned. It's how Tata have mounted it. The rear-engine configuration isn't new, but to be honest, not many manufacturers have tried it recently. When Volkswagen announced the Up, they planned a rear-engine format as well because of its cost implications. The Up is front-engined now only because VW found it hard to engineer given that all of its other cars were in that format - which makes it most cost-effective to engineer. If it wasn't for that legacy,VW's Up would be rear-engined too.

Tata doesn't have those legacy issues. The rear-engine, rear-wheel drive format, at the most obvious eliminates the driveshaft and saves some money. But in the Nano's case, it's the packaging that's stunning. As you saw in the Auto Expo, aside from the air intakes ahead of the rear wheel

arches, there's almost no indication as to where the engine is. This is because the motor is behind and under the rear seats. The hatch does not open - more on that in a bit - and the engine is accessed by flipping the rear seats forward. The hard to access format suggests that Tata have

produced an engine that is pretty reliable. But more importantly, it's non-intrusion into the passenger cabin is part of the slew of solutions that liberate what Tata is calling generous interior space - 21 per cent more than the Maruti 800!

6. Central instruments and dashboard
While it just looks quirky and cute at first glance, the central meters and the dash on the Nano are actually a rather clever piece of kit. First of all, a central meter set eliminates the need to adapt that large plastic assembly for right- and left-hand drive markets. Tata will offer a speedometer, odometer and a digital fuel gauge plus lights that are spartan, but complete instrumentation. But most importantly, the smoothly curved design, two huge cubby holes ensure that the cabin gets an airy feel, lots of storage and almost no one notices that there isn't a glove box at all. Neat, eh? The curved edges should also have a role to play in crash safety.

7. Filler cap and single mirror
The filler cap is actually located under the nose. It might be a little inconvenient to fill up, then, but remember, many people who drive CNG and LPG cars already do this. But on the cost front, this means that body does not need to a hole in it at someplace for the filler cap. Tata will probably also
not offer a standard left side mirror - we've never seen a car with it so far, not at the Expo, nor among the various test pieces running around Pune- which is another cost saving. It will be an optional extra should you really want it - and you should - but for a car this cheap, this is not an unreasonable compromise. After all, there are cars relatively more expensive that don't have it as standard either, right?

IV.The Factory factor



In the meantime, a queue of state governments formed to offer the Nano project. While Dharwad in Karnataka seemed to be winning, Gujarat bagged the Nano project. The new plant is expect to come at on 1100acres of land at Sanand in 2010. Tata will (re)spend Rs 2,000 Crore (Rs 20 billion) on the new plant. Located 45km from Ahmedabad, Sanand will be the new home of the project, making an estimated 250,000 cars per annum.

The movement of the plant will have a serious impact on the project in the short term. Had the plant been running at full capacity, Tata would have been making as much as 250,000 Nanos a year, scalable to 350,000 which would have been far better in the face of what is expected to be an unprecedented deluge of demand. With the Pune and Pantnagar plants only able to make a maximum of 5000 Nanos (our estimate), the queues for people who will book the Nano will be long and tortuous and for once, it will probably not be the manufacturer's fault.

Reports in the media already suggest that Tata will open bookings only for a month, and this window will close when one lakh bookings are done.

State Bank of India is reportedly the sole booking agent and while the actual down payment is not known - Rs 70,000 is being estimated or rumoured - you have to pay Rs 500 to register your booking. No one has ever done this with a car, as far as we know.

Industry estimates suggest that had Tata had their new plant on stream, the actual number of potential bookings could be as much as six times that figure!

V. Future powertrains



In the months of waiting from the time we have seen the first Nanos at the Auto Expo to now, Tata has offered a glimpse repeatedly into the future of Nano. Here is all the information on the powertrain front.

1. The 3-cylinder engine

Tata's plan for a three-cylinder engine for the Nano surfaced with the Nano Europa at Geneva 2009. The logic is pretty simple. The Europa is a bigger car than the Nano and will have far more mandatory equipment on board - ESP, Airbags, ABS etc. It will also have to run at significantly higher average and peak speeds than the Indian Nanos, which means a powerful motor, relatively speaking, becomes essential to the whole package.

Tata's 35PS 2-cylinder parallel twin, one must assume isn't going to cut it. Or, even if it did meet the requirement, the Nano team obviously thought something bigger would be nice.

In packaging terms, a three-cylinder parallel twin shouldn't add too much to the actual dimensions of the engine - although we would reckon that almost all of the extra length of the Nano, is being given over to the space the new motor needs. Perhaps the simplest solution, on the face of it, is an engine that isn't all-new, but an extension of the current motor. If that assumption, our assumption, is correct, that this should point to an engine of between 800-950cc, which should bring the horsepower count up to about 42-48PS. Which should give the heavier, bigger Nano just enough juice to hit 130kmph. Which is not an incidental top speed, it's the speed limit on most of Europes auto-routes.

2. The Diesel

Japan is actually the country famous for its small super-diesels. Their kei-jidosha (smallest car class) vehicles have always had 660cc engines or thereabouts, so a small diesel, in that sense isn't ground-breaking new technology. However, if we assume that Tata met the same resistant that they got when they were trying to outsource the development of their 624cc petrol twin, then the diesel would also have had to be setup in house. Again, the engine capacity isn't known, but it would be reasonable to assume a similar displacement, since the space to squeeze the motor is in limited.

Now, given the cost angle, we aren't expecting a common-rail motor, although truth be told, we would be over the moon to see one in the spec list.

However, if Tata have managed to extract good torque from the petrol engine, it should be able to atleast get 30-40 per cent more from the diesel, which is roughly the norm in similar sized petrols and diesels when they are shared on one model across manufacturers. Horsepower will probably not dip below the 35PS mark, in our estimation, and that should make the diesel Nano, dare we say it, a bit of a pocket rocket!

3. The Hybrid

This is very much the hot topic of the moment. There is intense speculation that the Tata Nano will have a hybrid version. If you think about it,perhaps the biggest problem for Tata, hybrid wise will probably be packaging, not implementation, technology or its application. A hybrid, whether series (car starts electric, uses motor to charge batteries only, or only when serious acceleration is needed) or parallel (electric motor supplements normal engine, but the motor is not actually charged - in most cases - directly by the normal engine), will give the Tata Nano incredible fuel economy. In theory, the world's cheapest car could also be the world's most fuel efficient production car! Now, the petrol engine fuel economy figure being bandied about seems to hover from 20 to 25 kpl. Even a mildly good hybrid arrangement should boost that figure by at least 20 per cent, which means 24 to 30kpl. Does that not sound good?

Like all hybrids do, the hybrid goodness of the Nano will come at a cost, and we expect that the Nano Hybrid, should it actually happen, will cost more than the fully-loaded petrol model even. At that price, it will become the cool, unobtanium Nano as it were. That, alone, we say, is a good reason to make it. Elitist variant of a popular car? Oh yes. Oh, and Tata's mileage claims and CO2 claims with the petrol engine already match or surpass famous hybrids like the Prius et al, just so you know.

4. Electric

Thanks to Tata's work with their Norwegian partner, Miljo (think Th!nk) on the Indica EV, this is an actual possibility. Tata will launch the Indica EV in Norway in September according to reports and the only reason they aren't brining the 200km to a charge car to India is the lack of infrastructure to support it. In time, this will come, and so should the electric Nano. There isn't any official word on this, so we'll stick our necks out one more time and say that the electric Nano is at least five years away - Tata will need the next 18-24 months or so just to stabilise the production and meet the demand for the petrol Nano. By that much time, hopefully, compact, high energy-density batteries and powerful motors should give the electric Nano performance comparable to or better than the incoming petrol Nano.

5. Air engine

Yes, Tata have been working with that quirky French firm, MDI, which has pioneered an engine that runs on compressed air. To understand more about how the engine works, please read the April 2009 issue of Overdrive. The upshot is that the engine runs more or less like a conventional engine in feel, but the fuel you put into the tank, literally, is air. If (When?) the Nano gets that engine, it will need a tiny amount of normal fuel for on-board air compression at best. This car, then, will be truly stonking, for it will drink almost nothing, produce fresh, totally pure air and cost next to nothing to run.

VI. Alternatives to the Tata Nano

For a lakh of rupees here are three alternatives to the Nano

Past sense

Think you can do better than getting a micro-miniaturized hatch for the same amount of money? Well you may not be too far from the truth.
The economic slowdown and rising interest rates have sent the second-hand market spiraling downward. All of a sudden, there are a host of options to choose from and don’t be surprised to find some incredibly sweet deals on cars you've always wanted to own.

Of course, used Alto prices will hit an all-time low and there's never a better time to pick up this car. Look out for the early 1.0 litre cars, which were absolutely delightful to drive. These will be even cheaper than a lakh of rupees. Other cars to look out for from the Maruti stable will be the older Zen and Wagon R. Don’t discount a tempting deal on the Zen Estilo even, which--though not under a lakh--will certainly be somewhere in that ballpark.

For a few thousand over a lakh, you can even get your hands on a fully loaded Santro. Again, the litre-class equation weighs heavily since several people want the additional power. Power steering, power windows et al and it could still be available for a little over a lakh.

But here’s the really juicy bit: second-hand dealers claim to be able to source Hyundai Accents, Ford Ikons and--if you are really patient--even a late 2000 or early '01 Honda City for just around a lakh and half, perhaps even lower. Now for a car that large, spacious and with very usable boot, the additional tens of thousands are fairly justified.

Bike now

Today, at a lakh of rupees you can buy some of the most fabulous motorcycles this country has seen in a long time. None of them have the utility a car can afford, but for sheer pleasure at that price nothing comes close. In today's market, buyers are spoiled for choice. Everything from commuter entry-level 100cc bikes to the exorbitantly priced and immensely powerful Ducati 1098R is available here in India.

The prime contender, if you're willing to forego a couple of wheels, is the Yamaha YZF-R15. This bike isn’t available at a lakh of rupees; the actual quotation can run up to nearly a lakh and a half by the time it steps onto the road. Yet, it is a motorcycle that has swept several awards including the IMOTY and Indian Performance Bike Of The Year. It has revived the fortunes of a company that had lost all hope of seeing a return to their '80s glory days. What makes it truly incredible is the fact that it showcases technological advances that make it the superior motorcycle amongst its peers even though it may not be the largest or most powerful.

It is a motorcycle that has completely redefined the Indian 2-wheeler segment and product capabilities by pushing itself to the very brink. It’s a quick yet comfortable handling god, and the fact that it looks as good as it does makes it a very alluring buy.

But then, you can also buy a Hero Honda Karizma or even an Apache RTR-Fi--both of which are highly focused on their tasks. Or you could buy a piece of nostalgia with the Royal Enfield Bullet, which despite being one of the oldest motorcycles of the same design in production, is still going as strong as ever. In fact, sales are on the up as newer technologies make their appearance in this motorcycle.

Future bright Bajaj Lite

At Auto Expo 2008, Bajaj showcased the Lite--a small four-seat concept, which it expects to price at $3000. That roughly translates to a 1.2 lakh rupee ex-showroom price--a bit hard to achieve in the current economic scenario. Nevertheless, Tata Motors has shown the way forward for cost-effective engineering and business practices. It is only natural for others to follow. Bajaj, for one, is certainly going to try hard to keep costs from spiraling, especially since they already excel at manufacturing cost-effective motorcycles. Those lessons learned on two wheels will help add two more to their ambitions.

The Lite is a cute car and the prototype unveiled at the Expo showcased a vehicle that will be inexpensive but not downright cheap. The design may not inspire lyrical verse, but it will get the job done and for developing countries, that is generally more than enough. If it can deliver at the right price, there will be few complaints. The Lite will accommodate four and provide a host of creature comforts. It will have a choice of both petrol and diesel powertains, likely not larger in capacity than a litre, possibly lower.

Bajaj could look at the variomatic transmissions it builds for its scooters to transfer power in the Lite, especially since Rajiv Bajaj claimed that the tranny would be something special and not a conventional manual or automatic gearbox. It will ride on small wheels and could share several mechanical components with other projects Bajaj is working on, namely a 4-wheeler LCV on the lines of the Tata Ace. Bajaj, being a predominantly two-wheeler manufacturer, will not make the Lite an alternative to the motorcycle or scooter. It would certainly not be healthy to take business away from itself. Instead, it aims to project the Lite as a step above the Nano, though not entirely beyond the means of the common man.

The Lite is supposed to be ready by early to mid 2011, and hopefully it will not face its own Singur. But in the current economic gloom, anything is possible, especially since Renault has announced a slowdown of its India plans, part of which is their association with Bajaj. In fact, if rumors are to be believed, then Bajaj has apparently gone back to the drawing board to start the project from scratch. And if that is the case, the Lite will certainly not be switched on in 2011.

The Nano: Big news about a tiny car

One small step for Tata, one giant leap for autokind?

So what's the car of a million dreams across India?

If Tata Motors has it right, it will be the Nano: a cut-rate engineering marvel with a rear engine and front trunk space. Oh, and a price tag of about $2,000.

The tiny Nano will lack many of the standard accoutrements of cars in the West.

It won't have airbags or back-seat safety belts. There won't be power steering or an anti-lock brake system. But with a base price of 100,000 rupees, middle-class India may just stampede its way to car-dealerships when orders for the Nano begin in mid-April.

“The euphoria over the Nano is unmatched,” said Premanand Shenoy, chief executive of the Prerna Motors, a Tata dealer in Bangalore. “We have already held staff meetings on how to handle the thousands of people expected to walk in that day.”

The Nano project took off after Ratan Tata — the famed chairman of the Indian conglomerate that spans salt, steel and software — promised to build a “people’s car" for the masses now driving two-wheelers.

In India’s traffic-clogged city roads, millions ride on scooters and motorcycles — with sometimes as many as four or five people hanging precariously to the same vehicle.

The Nano aims to fulfill middle-class India’s desire to own a car, helping the not-so-rich claw their way up another rung of prosperity. Analysts estimate that latent demand for a low-priced car could boost the Indian car market's size by 65 percent, even in the face of a slowing economy.

Nirupa Venkatesh, a Bangalore-based dentist, is eager to order the Nano as the family’s second car. She and her husband, a gynecologist, already own a Toyota SUV.

“I want the Nano because it is cheap and (the) best,” said Venkatesh, who like many price-conscious Indians wants a no-frills product. She will use the car to shop, run errands and drop her 9-year old daughter off at school.

The Love Bug Bites

Will the Volkswagen Beetle frighten customers with its Rs 22 lakh price tag?

IN 1931, when Adolf Hitler asked Ferdinand Porsche to develop a volks-wagen (people’s car), he had in mind a small car that could transport a family, at a price then commanded by a motorcycle. Sound familiar? The only resemblance between Ratan Tata’s dream car, the Nano, and the iconic Beetle that Porsche produced, is that they are both small cars.



Come October, Indians will have a chance to experience the Beetle, but as a completely built unit (CBU) imported from Volkswagen’s factory in Mexico. The car is to be introduced only in the TDI 1.9-litre diesel variant and will come equipped with a host of added features like cruise control, acoustic rear parking sensors and rain sensors. Volkswagen will also make state-of-the-art safety additions like airbags, traction control and an antiskid system. Unlike its European counterpart, the Beetle variant for Indian roads will come with a front engine, and be capable of achieving speeds of 180 km per hour. Although no one is commenting on the colours, historically the Beetle has been available in bright shades of red, yellow, blue and sparkling white.


However, as an imported CBU, the price is hardly likely to be that of a people’s car — don’t expect it to provide the Nano with any serious competition. The new Beetle is priced at just over Rs 9 lakh in the US; but with custom duties, freight and other charges, the price tag could virtually double in India. The other Volkswagen CBU in the market, the Touareg which was launched last year, is more than double its Rs 20 lakh US market tag. “We haven’t had any official announcements yet, but it should be tagged in the higher price bracket of luxury or lifestyle cars. There are a lot of different buyers in the market and I am sure many would think it worth investing in such a globally acclaimed car,” commented SK Gautam, Vice President, Operations, DD Auto World, a Volkswagen dealer in Delhi.



Volkwagen’s first car in India was the Passat, launched in 2006 and priced at just over Rs 20 lakh. The Jetta came in the next year, the price of which ranges between Rs 12 and Rs 16 lakh. Although sales of Volkwagen cars have not been revving up globally, in India the company reported a 69 percent increase in sales in 2008, reportedly from growth in sales of its two subsidiary companies Skoda and Audi.

Volkswagen doesn’t seem to be concerned by the downturn in the automobile industry. Ludwig Geerken, the project director for Volkswagen India, has already announced that Volkswagen’s investment decisions for India will not be altered.

This includes an investment of over Rs 3,000 crore for a new plant in Pune and an automobile research centre to improve quality of upcoming products. Volkswagen is also set to introduce the Polo hatchback in India by next year. “I don’t foresee any problems in making new investments and launching a new car at the end of this year,” says a confident Gautam.

But with car sales down by 7.5 percent in January this year, and the only excitement likely to be the upcoming Nano launch, the Beetle is unlikely to take a major bite out of the Indian market.

Tata Nano to be launched on March 23

Tata Motors on Thursday announced that the much-awaited Tata Nano will be launched at a function in Mumbai on March 23, 2009.

The cars will be on display at Tata Motors dealerships from the first week of April 2009. Bookings will commence from the second week of April 2009.



Since it's unveiling on January 10, 2008, the Tata Nano has evoked an unprecedented interest in the country, with its Web site having recorded over 30 million hits in the past one year and the creation of over 6,000 interest groups and communities.

Tata Motors is making arrangements for the widest possible network to book the car, so that prospective customers can conveniently avail of booking facilities at their locations, across the length and breadth of India. The booking process and other details will be announced on March 23, 2009.

Nissan to launch supermini March in India by 2010

Thanks to the Singur imbroglio and the shifting of the plant site to Sanand in Gujarat, by the time the Nano hits the road in India, its competitors will be much closer to launcing on their versions of small cars.

One such rival is Japanese automobile company Nissan Motor, which plans to launch a supermini, March, in India. According to Nissan the March will hit Indian roads by March 2010 or just 12 months after the Nano's launch.

Speaking to the press Nissan Motor India managing director Shouhei Kimura, ''The small, next-generation car 'March' will be launched in India by 2010 in the 'A' segment category. The car would be manufactured at the company's plant situated at Oragadam in Tamil Nadu, though initially the car would be rolled out from the company's Thailand facility followed by India.

He said the development of an 'A' platform is one of various initiatives taken as part of Nissan's new five year business plan the GT 2012.

Kimura said, ''We would have a total of nine Nissan models by the year 2012 in the Indian market and this car would be one of the new models."

The compny says the March would have a local content of 80 per cent. Kimura said India is one of the five leading competitive countries for manufacturing and exporting the car from Nissan's global manufacturing network.

Last week the company signed a memorandum of understanding with the Ennore Port in Tamil Nadu from where the company would export cars. (See: Nissan to be first automaker to export from Ennore Port)

Kimura said that by 2011 Nissan would be exporting around 110,000 units, which would include this new model. Primarily the exports would cater to European markets from the second half of 2010.

Nissan also proposes to widen its dealership network in order to sell higher numbers in the country. ''We would increase our dealership network from the present 5 to 55 by 2012," Kimura said.

Kimura declined to comment on the timing of rolling out of the car from the other three countries. He also did not announce the number of cars to be rolled out saying it is too early to say.




The Nissan 'March'

The Nissan March supermini is being produced by Nissan since 1982. Since 1992 the car has also been made in Europe, the US and the UK. Outside Asia mainly in Europe and US it is known as the Nissan Micra. The last time the company gave the March a facelift was in late 2007. The next model is expected to be launched worldwide in 2009.

Starting with the K10 model in 1982 successive March models have been code named K11, K12 and so on.

The March / Micra K10 first went on sale the UK in 1983, and met with instant success. In 1990 the March was the eleventh most popular new car in the UK with having sold 50,000 units. It was a popular choice due to its ease of driving, solid build and durable mechanical components.

The second incarnation of the March / Micra was launched in 1992, production baing in Britain and at its Washington plant rather than in Japan. Like its predecessor, it remained a very popular car thanks to its fuel economy. However, it was available with a limited range of engines: 1.0 and 1.3 petrol units.

The car received a facelift in 2000 which saw the 1.3l engine being replaced with a 1.4 unit. This upgrade, after a previous makeover in 1998, enhanced the car's appeal and it was still fairly popular on the launch of its successor in December 2002.



The third generation model of the March / Micra was made at the Sunderland in the UK. It had a wider range of engines, including Renault-sourced 1.2 petrol and 1.5 direct-injection diesel powerplants, and offered an improved driving experience. This stylish, all-new Micra helped Nissan bolster its market share in the supermini space. The March has been among the best-selling 10 cars in Britain among private buyers for virtually all of its production life.

The March / Micra is known for its reliability, excellent build quality, and user friendliness. The K12 model that came out in 1990s received consistently good overall reviews, main criticisms being its lack of headroom and luggage space in the rear. Another criticism that came its way in the UK was from insurance company that rated it as a dangerous car in case of crash in 1988-1995.

However, its safety specification has improved with successive models. The K12 Micra came on top of its class in What Car? magazine's Security Supertest in 2003, passing both entry and driveaway tests and achieving a maximum score for its locking system and immobiliser.

In an independent test, the Micra was found to be more secure that certain BMW and Mercedes models.

In British magazine's What Car?' Reliability Supertest in 2007, Nissan ranked 6th out of 26 manufacturers overall, with the K11 Micra (1998-2002) being its most reliable model.

The next generation Nissan March (W02A) will be unveiled in Feburary 2009. Globally it will be based on a revamped B-platform with a new 1.2-1.3l engine.

It will be built in Japan, UK, Thailand and in Chennai, India in partnership with Nissan shareholder Renault. The company's US plant in Washington will manufacture an entirely new model that will compete in the same market segment as the March/Micra.

More 1 Lakh Cars Coming to Compete with Nano!

Tata Motors recently shifted its Nano project to Gujarat from Singur in West Bengal. It seems troubles for their much awaited car are not over as yet. The new electric car, Oreva E, to be launched seems to pose tough competition to world’s most awaited car, Tata Nano. The Gujarat based Ajanta Group recently announced the impending launch of another Rs. 1 lakh car in the India auto market.

Ajanta Manufacturing currently manufactures electric bikes in India which are quite popular and very successful as well. Now they will be making their foray in the small car segment as well. Ajanta has announced to launch their new electric car, Oreva E, in India priced at Rs. 1 Lakh.

"After registering a strong presence in the e-bike segment, we are set to enter the electric-car category," said Oreva e-car dealer Yogesh Tank. "In fact, we have designed the car to rival Nano. That is why Oreva E will be available within the Rs 1 lakh price range," said Tank. On the other hand, Jaysukh Patel, Managing Director, Ajanta Manufacturing Ltd. refused to comment.

Nano’s soft launch likely by year-end

Tata Motors is likely to go in for a soft launch of its low-budget car, Nano, by the year-end before hitting the road in a big way.

“Tata’s will launch 200-300 Nano cars by end this year, which will be the soft launch of Nano,” a vendor, who attended Tata Motors’ Vendor Meet, told reporters here on Thursday.

The company, which recently shifted its Nano plant to Gujarat from West Bengal, plans a major launch of the car during the second-half of the next year, he said.

The company spokesperson could not be contacted for comment.

However, officials of the Tata Motors a few days back had reiterated the stated position of launch in the last quarter of the current fiscal.

Tata's Nano project finds a home

India's giant Tata Group has found a new home to build the world's cheapest car, cosseted by assurances that the project's past traumas with land disputes and political infighting are over.

By choosing to take its "Nano" car factory to the business-friendly state of Gujarat, after abandoning the original site in West Bengal, Tata has sent a message that a stable investment climate is a pre-requisite for participation in India's economic growth.

In an interview published Wednesday in the Economic Times, group chairman Ratan Tata attacked what he saw as the political manipulation behind protests by local farmers that forced the pull-out from West Bengal.

"Political opposition should be subordinated to the better welfare of the country," Tata said, suggesting that those who backed the protestors did not necessarily have their best interests at heart.

"Who is the loser? Are the people really going to prosper, many of whom live below subsistence levels?" he said. "What about the people who had aspirations for jobs? These are the questions that come to my mind."

The decision to move the plant -- which was 90 percent complete -- followed a month of violent demonstrations by activists and evicted farmers who complained they had been forced to give up their land for a pittance to make room for the Nano factory.

Some farmers said their signatures handing over their land were forged by workers from West Bengal's governing communist party.

The issue provided a rallying point for social activists and opposition parties hoping to break the Marxists' 31-year rule in the state.

The Nano has attracted worldwide attention due to its planned price tag of just 100,000 rupees (2,100 dollars) and, as soon as it became clear that Tata was considering relocating, a number of states rushed to compete for the project.

The agreement with Gujarat was formalised on Tuesday, and Ratan Tata said the choice was largely rooted in the state's ability to provide the necessary land immediately.

"Gujarat was able to define the land, secure possession of the land, the main thing, at an unbelievably fast rate," he said.

"In fact, if we could move the plant in a day, we could have actually started operating here, given the fact that everything was ready," he added.

Gujarat is one of India's most industrialised states and has a relatively sound infrastructure that has already attracted a number of multinationals.

The Nano plant will make 250,000 Nanos a year, rising to 500,000, the company says. However, it is not clear when production will begin.

The group had hoped to launch the car by December at the latest, but Tata officials admitted Tuesday that a more realistic timeframe lay between January and March next year.

The first batch of Nanos will be rolled out from existing Tata Motors plants elsewhere in India in what Ratan Tata described as a "makeshift kind of operation".

He also insisted that the 350 million dollars Tata had already pumped into the West Bengal plant was in no sense a write-off loss.

"All the equipment will be moved, so there is no loss there. We can also retrieve and utilise a fair amount of the fixed assets," he said.

The tussle over the Nano site was one of many recent land disputes in India.

The struggles have pitted the interests of farmers, who say they will starve without their land, against those of business and India's government, which say the country needs to industrialise rapidly.

Tata considers all-new site for Nano production, protests at Sangur continue

After recent protests at its nearly constructed plant turned violent, India's Tata Motors is now heavily considering moving its production facilities from Singur in the state of West Benegal to the region of Karnataka in the south of India. Authorities from Tata confirmed the southern state offered 1,000 acres for the reestablishment of the automaker's Nano car production plant.

Prior to Tata finishing the plant's construction, local farmers had been protesting the arrival of Tata Motors for several years. They claim the automotive giant forcefully took their farmlands without consent and demand the return of their land. Government officials, though, say they can't return it due to it being already developed for automotive production.

In order to satisfy the locals, the West Senegal authorities offered to increase their compensation by 50 percent, but its was quickly refused by the lead opposition political party, the Trinamool Congress.

"In case we were thinking of relocating the plant from Singur he (Chief Minister B.S. Yediyurappa) would give all necessary support and assistance and incentives to make it happen," Tata Motors spokeswoman Ravi Kent stated. "We are watching the situation and actively looking at alternatives."

Tata had originally planned for its first run of Nano ultra-economy cars to roll off the assembly lines in October, but give the current situation, timetables have surely been delayed. Even with costs of raw materials on the rise and this latest debacle to deal with, Tata officials maintain the Nano will keep its 100,000 rupee ($2,500) price point.

Hyundai to Bring Full I-Series Small Cars to India





Hyundai Motor India Ltd
. is bringing its entire i-series range of compact cars to India in a well-orchestrated plan.

Despite a gloomy market, Hyundai is riding high on the i10, launched last year. The new model in its first seven months sold more than 65,000 units in India.

The subcompact now offers a choice of a 1.1L Epsilon or 1.2L new Kappa engine. The newer mill has more power, improved fuel economy and meets Euro-5 emissions standards with 119 g/km of carbon dioxide.

“With continuous innovation in technology and design, the engine is the best in its class,” says Hyundai India Managing Director and CEO H.S. Lheem. “With continuous innovation in technology and design, the engine is the best in its class,” says Hyundai India Managing Director and CEO H.S. Lheem.

The
Hyundai i20 Getz replacement, which makes its debut at the Paris auto show in October, will be available here by December, and in two years time the i30 and i40 will arrive. Additionally, the auto maker in the next three to four years will offer an 0.8L small car now under development that will launch globally from India.

The i20 will be built alongside the i10 at Hyundai’s recently opened, second Indian facility in Sriperumbudur. Parent Hyundai Motor Co. Ltd. insists it is not looking to compete with the super low-priced Tata Nano, which will sell for $2,500.

“(The) Nano is not our focus segment. We do not have the capability or expertise to match Tata (Motors Ltd.),” Lheem says.

Hyundai India’s combined domestic sales and exports jumped 33.9% in August, to 44,710 units. That compares with declines at Maruti Suzuki Ltd., down 9.2%, and Tata, off 6.2%.

To meet the industry slowdown, Hyundai India has changed its production plans. In the year’s first-half, the auto maker built 58% of its cars for local consumption and 42% for exports.Second-half builds will see 45% earmarked for the domestic market and 55% for export.

Hyundai is India’s largest exporter of cars, shipping 23,100 units in August.
Hyundai also has deferred its decision to introduce a third shift at its new plant with a 300,000-unit annual capacity in the wake of the slowing market here. The plant produces about 830 vehicles per day with two day shifts. The nightshift, if introduced, would have added 1,200 workers and taken output to 1,190 vehicles per day. Hyundai’s first plant, which also has an annual capacity of 300,000 units, employs three shifts and rolls out 1,080 vehicles per day.

Hyundai India sells 10 models, with 30 variants across all the segments.

The new Kappa mill is manufactured at Hyundai’s newly opened $250 million engine and transmission plant in Chennai that has annual capacity for 250,000 units.

Developed over a period of 48 months, the Kappa is being produced in three variations for India, Europe and other world markets.

The India version has a displacement of 1.2L and generates 80 hp. For Europe and other markets, the engine has a 2.5L displacement.


The Kappa-equipped i10 here will be available with a 4-speed automatic transmission.
“Looking at the current market scenario, we are happy with Hyundai’s overall sales,” says Arvind Saxena, senior vice president. “This again reinforces our belief that a strong product portfolio will see you through the tough times.”

Europe awaiting Nano car’s electric version

Though the fate of Tata MotorsNano plant at Singur in West Bengal still hangs in a limbo, nations around the world still want to see the cheapest car driving on their roads at the earliest; preferably in its battery-operated, environment-friendly version.

“I can say that alike other nations, entire Europe is also eagerly awaiting the commercial launch of Nano. But keeping in mind the adverse impact of carbon dioxide (Co2) on environment, it would be advisable to have Nano’s electric version. I hope Tata (Ratan) is working on it,” said European Commission’s Director General for Energy and Transport Matthias Ruete.

Emission-free transport

Talking to The Hindu during his recent visit to India, where he forged ties for cooperation in the field of energy and transport between the European Union and India, Mr. Ruete said keeping in mind the growing cost of fuel, electric (battery operated) engine was the only solution to emission-free transport.

Informing that European Commission, the executive branch of the European Union, has been working on a sustainable transport policy that aims at reducing of Co2 emissions and transform public transport, Mr. Ruete said decades ago the industry favoured combustion engine over electric engine as the price of fuel was never an issue, but things have changed now.

Moving backwards

“We are now moving backwards. And once we get the right battery technology for our automotive industry, we will be moving back directly to electric cars or indirectly to fuel cells or hydrogen-operated vehicles,” he added.

Predicting that in another 20 years electric cars will enjoy a good share in the market, Mr. Ruete said new efficient trams were being developed.

“I think soon logistics and delivery system in cities would be shifted to electric vehicles. More hi-speed trains would become integral part of public transport. The whole transport industry and businesses are working on developing new fuel-efficient models. We are also working on finding an alternative to kerosene,” he said, underlying the efforts being taken by the EU to reduce emissions.

Intermediate steps

Talking about alternate source of fuel, Mr. Ruete said bio-fuels or other source like CNG or LPG were only intermediate steps that can could work with existing technologies, but more comprehensive solutions were needed.

Stating that there was no necessary link between higher food prices and bio-fuels, though it might have a link in case of corn, Mr. Ruete said EU wanted that land being used for food production should not be used for bio-fuel production.

“We have to make sure that wasteland and spare land are used for bio-fuel production. We need to have an overall balance. We need to generate second generation bio-fuels from straw or other materials,” he added.

Volkswagen confident of doing well in India

"The Nano is a unique answer to the needs and aspirations of the vast majority of Indians. I think it's a wonderful move from the Tatas to give India its own version of 'people's car'." It isn't often that one is accustomed to hearing such effusive praise from a marketer, especially when the object of praise happens to have been concocted in a rival boardroom.

But Detlef Wittig, executive vice-president and worldwide head of sales & marketing, Volkswagen, isn't shy of appreciating a smart idea and is visibly impressed with Tata Motors' disruptive innovation. Wittig adds that Volkswagen - which created the original people's car, the iconic Beetle - did toy with the idea of a similar 'price proposition-based' product, but dropped the idea as European markets are quite different from the Indian one: and doing something exclusively for India to replace the motorcycle market isn't one of the company's objectives at this moment.

That said, the Indian market - where the group is investing close to Rs 3,600 crore - is obviously high priority for the Volkswagen Group, which owns seven marquee brands that include Audi, Bentley, Bugatti, Lamborghini, Seat, Skoda and the flagship Volkswagen brand. Of the lot, Audi, Skoda and Volkswagen are already in India, and in the first six months of 2008, the group recorded the highest growth in volume sales from the country (69%), as compared to other emerging markets like Russia (63% growth), Ukraine (50%), China (23%) and Brazil (22%).

In contrast, European sales had a marginal 1.3% increase, while sales in home turf Germany went up 4%. And with India billed to become the fourth largest car market (as against its current position of No 13) over the next 10 years, it isn't surprising that Volkswagen wants to get its India act together, despite having been a late entrant. Wittig clearly has the opportunities and challenges in mind, even as he admits that the company's entry into India was delayed due to "uncertain auto policies, the group's inability to find a suitable JV partner for a long time and the absence of the right product".

But Wittig wants to put the past behind him and Volkswagen, and focus on the future strategy instead: and that includes putting together a crack marketing team under KK Swamy (managing director & vice-president, Volkswagen India), adding more dealerships and introducing new models in India. And, of course, the launch of the Beetle next year is expected to go a long way in helping Volkswagen "find an expression" in the Indian market, as Wittig puts it. "If you have to build a brand, you have to highlight its roots, else you are just a commodity," he adds. "We want to be more than that. The Beetle will work towards enhancing the brand heritage of Volkswagen in the country." Volkswagen is betting on the Beetle's global 'cult' status as a means of pitching itself to Indian consumers.

"Beetle's followers have great memories attached to it. Punch buggy (a car sighting game generally played by young children in which participants hit each other upon sight of a Volkswagen Beetle) is only a sign of the 'fun car' status the Beetle enjoys around the world," says Wittig, adding that India being a young country, it certainly has space for the car.

Yet, the Beetle cannot be expected to drive volumes for Volkswagen: rather, it will serve as the master key in Volkswagen's plan to secure 10% of the burgeoning Indian market within five years (currently, Volkswagen has less than 1% share of the Indian market). Incidentally, Volkswagen entered China in 1984 and has been able to grow significantly: in the first six months of 2008, the company recorded sales of 531,600 cars, breaching for the first time the 500,000-units mark in China over a six-month period.

The moot point is whether Volkswagen has squandered the opportunity to make a similar mark in India, given its late entry. Wittig concedes that India's potential had not been correctly estimated back at that point in time. "Yes, we are late in coming into this market, but may be not too late," he says, pointing out that even some of Volkswagen's European competitors, who came in earlier, "haven't been tremendously successful either".

Wittig says that the company has adopted a top-down strategy for India. Case in point: Skoda, which is a budget brand in many countries, but opted to enter India with the premium Skoda Octavia. Even the Fabia is priced at a premium when compared to rivals occupying the same hatchback segment. "We launched the Passat, which targets the upper end of the market. Then we brought in the Jetta, which is one step down, and now we'll soon have the Polo - not the one the world knows of, but its derivative that would fit in the Indian market," says Wittig.

Given the record sales achieved by Volkswagen in the first six months of 2008 on the back of demand in India, Russia and China, emerging markets are the area of focus for the company. While Wittig finds the situation in China and India as being very interesting, he is sold on Russia - the nation is all set to become Europe's biggest car market by next year. He says: "The dynamics of the Russian market had gone unnoticed, much like India." However, considering the demographics and increasing purchasing power here, he feels India is all set to be among the Top 5 car markets in the world in coming years.

Defining the key value propositions for each of the Group's marquee brands - Audi, Skoda and Volkswagen - Wittig says that Audi is sophisticated and clearly stands for luxury. "It is meant for powerful people who are sporty, like to be leaders, like to show off, though not necessarily aggressive in their manners." Volkswagen, on the other hand, is for those with average income, but with a penchant for showing off. "It may not fit in where a Nano does, but is affordable for people who are looking for more value," he says. On the other hand, Skoda drivers are more rational in their thinking. "With the Skoda Fabia, we scaled down from the Rs 1.5-million bracket (Rs 15 lakh) to Rs 6 lakh to cater to this audience," says Wittig, who has spent well over three decades at Volkswagen.

The group soon plans roll out the Up!, which the carmaker hopes will go down well, given the inflationary trends and the recession afflicting the auto sector. However, Wittig feels the impact of the recession is not a cause for worry in emerging markets as much as it is in the US and Europe. "The recession there has caused companies to concentrate on compact cars, less fuel consumption and, eventually, hype about hybrid cars. There is a shift in production and engine mix in Europe.

However, emerging markets are too dynamic, giving everyone a lot of room for growth," he says, adding that India, particularly, is more interesting than any other market as the situation does not change overnight like in China. "You are not dependant on the US situation. I have seen India since the mid-90s and the strength you have gained is admirable," he says. It's a strength that Wittig and Volkswagen would like to juice to the fullest.

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".