







Nissan India will launch its premium sports utility vehicle (SUV) Murano in India by the first half of next year.
“Murano should be here latest by the first half of 2010. The car was initially scheduled for a rollout this year. It will be imported as a completely built unit from Japan,” said sources.
The SUV is likely to be priced between Rs 35 lakh and Rs 40 lakh and will compete with the Toyota Prado, BMW X3, Mitsubishi Montero and Mercedes Benz M-class.
According to company sources, Nissan will first assess its prospects in the competitive SUV segment in India before getting into small cars.
The Murano was first launched in 2002 in the United States as a crossover vehicle to complement the Pathfinder.
The SUV may come in three variants — the base S, the mid-grade SL and the top of the line LE. The all-wheel drive vehicle is expected to be strapped with a 3.5-litre petrol V6 engine.
The Nissan Murano is likely to have aluminium interior accents, leather seats, rain sensing wipers, memory seats and mood lighting.
The SUV will be equipped with an 11-speaker Bose unit along with a 9.3GB hard disk storage device.
Nissan’s compact car project is also on course. The hatchback will be manufactured in five countries, including India, China and Thailand.
In India, the small car will be manufactured at the Renault-Nissan plant in Chennai.
Nissan’s engineers say they are trying to source 80-90 per cent of the parts locally.
After launching the hatchback in 2010, Nissan plans to unveil a sedan in 2011 and a compact multi-purpose vehicle.
Nissan Motor Corporation launched two new car models in Mumbai on Wednesday as a part of an aggressive India expansion plan by Japan's third-largest automaker.
The new versions of Nissan's X-Trail sport utility vehicle and luxury Teana sedan was unveiled during a smoke and light show. Nissan Motors has plans to launch seven models by 2012 of which five models will be made in India.
"India is the single biggest country in Nissan's investment plan in 2009," said Kiminobu Tokuyama, chief executive and Managing Director of Nissan Motor India Pvt. Ltd.
The company was targeting a more than five per cent market share in the Indian market going forward, Tokuyama said. The auto firm also plans to up its dealers from the present five to 55 by 2012, he said.
He declined to specify exactly how much of Nissan's fiscal year 2009 capital expenditure budget of 350 billion Japanese yen ($3.6 billion) will be directed to India as the company works to diversify its product line, raise its market share and transform India into a global production hub.
Currently, Nissan ships cars to India ready which are made in Japan, incurring a 109 percent import duty. The retail price of the new X-Trail starts at 2 million rupees ($42,670) and the new Teana at 2.1 million rupees ($43,121) has thwarted sales, executives said.
Since Nissan began selling cars in India in 2004, it has only sold about 1,000 X-Trail vehicles, and just 300 Teana sedans, executives said.
Tokuyama said Nissan's first India-made car -- a new version of the hatchback that now sells under the Micra brand in Europe and the March brand in Japan -- would roll out of its Chennai factory, in southern India, in May 2010.
That factory is the centerpiece of a seven-year, 45 billion rupee ($920 million) investment plan undertaken with France's Renault, which owns 44 percent of Nissan.
We know you are a car lover. You dream of the speedy Ferraris, exotic Jaguars, and luxurious Maybachs. Have you ever thought about the car makers, in terms production and revenue? Here we bring you the list of the world's top ten car makers of 2009. The list is compiled by the Automotive News Data Center as per the global units' sales in the first half of 2009.
World's 10 Largest Car Manufacturers
Toyota
Japanese car maker Toyota Motor Corporation is the world's largest car manufacturer. It has sold 3,564,105 units in the first half of 2009 compared to 4,815,442 units in the first half of 2008. Though Toyota reported an annual net loss of US$4.4 billion on May 8, 2009, it could still emerge as the world's largest car maker. The Japanese giant has been severely affected by the 2007-2009 financial crises. Toyota ventured into the automobile industry in 1934 with its first product Type A engine. It manufactured in its first passenger car the Toyota AA in 1936. Toyota Motor Corporation was established as an independent and separate company in 1937.
General Motors
General Motors was established in 1908 by William C. Durant. It is world's second-largest car maker. General Motors was world's number one car company for consecutive 77 years from 1931 to 2007. Because of the economic conditions, the beleaguered car giant went bankrupt on June 1, 2009. On 10th July 2009, the company emerged from" Chapter 11 bankruptcy" reorganization. In spite of all these, General Motors could sell 3,552,722 units compared to last year's 4,541,125 units.
Volkswagen
The Volkswagen Group is the world's third largest car maker. It sold 3,100.300 units this year compared to 3,265,200 units of previous years. The Volkswagen Group constitutes the car brands like Audi AG, Bentley Motors Ltd., Automobiles Bugatti SA, Automobili Lamborghini Holding S.p.A., SEAT, Skoda Auto and heavy goods vehicle manufacturer Scania AB. Recently, Porsche has united with the Volkswagen Group. The German luxury car company was founded on May 28, 1937 under the leadership of Adolf Hitler. Adolf Hitler wanted a "people's car". Volkswagen literally means 'people's car' in German.
Hyundai-Kia
Hyundai-Kia has emerged as the world's fourth largest car manufacturer. This year Hyundai-Kia jumped up a rank above. The Korean car maker showed global sales for the first half of 2009 at 2,153,000 units. The Indian subsidiary of Hyundai Kia Automotive Group, the Hyundai Motors India, is the country's second largest car manufacturer. The Hyundai Motor Company was founded in 1967. It became the Hyundai Kia Automotive Group when Hyundai Motor Company purchased 51% of South Korea's second-largest car company, Kia Motors in 1998.
Ford
Ford Motor Company was founded by Henry Ford and incorporated on June 16, 1903. Presently, it is world's fifth largest car maker with 2,145,000 units of global sales. This year, Hyundai-Kia edged out the mighty Ford of the fourth position. In 2007, Ford fell from second to third-ranked car maker for the first time in 56 years, behind only General Motors and Toyota.
PSA Peugeot-Citroen
The French car company sold 1,586,900 units in 2009. Last year it showed a sale of 1,844,700 units. The company was formed in 1976 and sells under the Peugeot and Citroen brand names. PSA is the second largest automaker based in Europe.
Honda
The Honda Motor Company secures the seventh place with sales units of 1,586,000 compared to last year's 2,022,00 units. Honda became Japan's second largest car maker in 2001 by superseding Nissan. Moreover, Honda is the world's largest manufacturer of motorcycles as well as the world's largest manufacturer of internal combustion engines. The company was founded by Soichiro Honda on 24th September 1948. Soichiro Honda dreamed to provide a personal mobility to everyone. The first production car from Honda was the S500 sports car.
Nissan
Nissan Motors was founded in 1932. It is among the top three Asian car companies. Nissan is in the eight position with 1,545,976 units. Last year it sold 2,013,611 units in the first half. Nissan faced severe financial difficulties in 1999 and entered an alliance with Renault S.A. of France. The Nissan VQ engines, of V6 configuration, have featured among Ward's 10 Best Engines for 14 straight years, since the award's inception.
Suzuki
Suzuki Motor Corporation is the ninth largest car manufacturer in the world. The company began as Suzuki Loom Works in 1909 under Michio Suzuki. Suzuki started producing cars in 1955. Maruti Suzuki, the Indian arm of the Japanese car honcho is India's largest car manufacturer. The car company sold 1.152,000 units this year compared to 2008's 1,283,000 units.
Renault
Renault is the world's tenth largest car maker with 1.106.989 units this year. Last year, it sold 1.326,164 units. Renault S.A. is a French carmaker producing cars, vans, buses, tractors, and trucks since 1899. The company was formed by Louis Renault, his brothers Marcel and Fernand, and his friends Thomas Evert and Julian Wyer. Renault has joined hands with Nissan on March 27, 1999. The Nissan-Renault Alliance is world's fourth largest car maker if their individual units were taken together. Nissan-Renault Alliance sold 2,652,965 units this year.
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.
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.
Nissan Motors India is readying to launch a new hatchback in India by early 2010. The small car will be manufactured at their new plant in Chennai. This new plant is expected to be operational from next year.
Nissan India has set up a new manufacturing unit in Oragadam near Chennai in association with the French auto maker Renault. The new facility will not merely cater to the domestic needs but also the overseas demands of models from both the companies.
The unit will have an initial manufacturing capacity of 200,000 cars per year. The factory will then scale-up production to 300,000 cars in about four year's time. It has been revealed that it has become difficult for Nissan and the French car maker, Renault, to make profitable cars in Europe for sale.
The upcoming small car is known as the March in Japan, but the Indian version will be christened as the Nissan Micra. The Micra will be available in both petrol and diesel versions. The Nissan Micra will stand against the Tata Nano.
Initially, it will be the Micra which would be followed by a derivative of the small car and then a sedan which is expected to be launched in 2011. In addition to the Nissan Micra, the company also aims to launch four to five models in next five years in the Indian market.
Currently Nissan Motors sells the completely built units (CBU) of Nissan Teana and Nissan X-Trail in India.
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.
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 Japanese car maker Nissan stated that its project to launch small car in India is on track and it will be ready to bring its new car in India by early 2010. Nissan Motor India’s Managing Director and CEO Kiminobu Tokuyama said: “There is no delay, our plans are on track and Nissan India will come out with its next-generation A-segment car- Micra, on schedule before summer 2010.”
Both the companies intend to make India as their next favorite car manufacturing destination and also intend to increase their market presence in this region. The company is currently working with the French car maker Renault and has a manufacturing unit in Chennai. The plant is being set up to manufacture four lakh cars annually but Nissan said that it shall initially manufacture only 200,000 units annually. Nissan is ready to bring the new small car model – Nissan Micra or Nissan March. The Micra hatchback car is named March in Japan and the Indian version would be christened either Micra or March, said Tokuyama. Nissan also intends to add nearly 4 to 5 models in its product portfolio in India in next 5 years.
Bajaj says that its low cost US$ 2500 small car project has been delayed by around 5-6 months. This means that the car may not be able to see the light in 2011 as was being expected.
The car had given hope that the race for cheap car would not remain confined to Tata’s Nano car that is slated to be launched in April. Nano too has been delayed by several months.
Tata Motors had announced to launch its lakhtakiya (RS 1 lakh) car last October. But so far the company has not been able to launch the car.
Bajaj Auto in association with Renault SA, Nissan Motor Co. had said in January last month that they were going to throw competition to Ratan Tata’s pet project Nano. The two companies had said that that they would collaborate to produce a small car that would cost around $2,500 (Rs1 lakh at that time’s exchange rate), making it the second car in the world and in India with ambitions to be the cheapest four-wheeler on the road.
It was said at that time that the three firms will set up a joint venture company in which India’s No. 2 motorbike maker, Bajaj, will hold the single largest majority with half the ownership, while partners Nissan and Renault will hold a quarter each. On sale from 2011, the cars—some 400,000 of them each year—will be produced in Maharashtra, at Chakan, near the existing manufacturing facilities of both Bajaj and Renault.
But now Rajiv Bajaj says: "The project remains largely on schedule, though in the course of development some specifications have been reviewed, leading to adjustments in the overall schedule." It had been reported in a section of the media that the ultra low-cost (ULC) project would be delayed by more than a year as Rajiv Bajaj was not happy with the work done so far, and he demanded major modification in the design.
Rajiv Bajaj went on to add “Bajaj has primary responsibility for the design, development, manufacturing, and supply chain activities of this project. Bajaj is proceeding as before to implement this project and any financial or other constraints that Renault-Nissan may have, have no bearing on the ability of Bajaj to implement this project".
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.
French car maker Renault SA is still itching for a move into the U.S. automobile market -- the world's biggest, from which it has been absent for more than 20 years -- and might be interested in Chrysler LLC if its owners were to put it up for sale, a senior Renault official said Thursday.
Jacques Verdonck, Renault's vice-president for corporate and strategic planning, told Dow Jones Newswires that one option for the company is to try to establish a presence in the U.S. by itself, although this would be both "risky and costly."
That is because it would involve developing at least three new products specifically designed for the U.S. market, while creating a dealer network, either by forming an alliance with an existing dealership network or creating Renault's own network from scratch.
The other easier and less onerous way would be to link up with one of the large U.S. automotive companies, though this would imply that the partner is in good financial health and is sufficiently robust to carry the deal through, he said.
In 2007, talks between Renault and General Motors Corp. about a possible alliance collapsed after management of the two companies failed to see eye-to-eye on the potential synergies that could be derived from an alliance.
"We had discussions in past with GM that didn't work out even though there were considerable potential synergies," Mr. Verdonck said. "If the opportunity presents itself again, we will seize it. But if it doesn't, I don't believe we can launch an aggressive takeover operation against an American company."
In 1982, Renault took over American Motors Corp. to make the Alliance, a variant of Renault's subcompact Renault 9 car, but the project never made money and Renault backed out and sold off its interest to Chrysler Corp. five years later.
While a straight takeover is only one of several scenarios, he acknowledged that Chrysler "would make a good partner" in the U.S.
Potential synergies are different when you consider Chrysler, GM or Ford Motor Co., he said. Chrysler is more focused on its U.S. operations, while GM and Ford are more global players, he noted.
"What's important in a partnership is to ensure that management really wants to be in the partnership; if you do it against the will of the partner, you'll face huge difficulties," Mr. Verdonck said.
Renault Chief Executive Officer Carlos Ghosn said earlier this year that now is not the time for Renault to make a bold move into a new market such as the U.S., arguing that the company must first ensure the success of its industrial expansion in Morocco, in Latin America, India and Russia.
In what should ring the alarm bells for car-makers already facing a sales downturn, Indian customers are considering fewer models before making purchase decisions, global marketing information services firm JD Power said in a study.
"Twenty seven per cent of new vehicle buyers in India in 2008 considered at least one other model before purchasing their vehicle, compared with 38 per cent in 2007. This marks the first significant decline in cross-shopping rates since 2005," said JD Power Asia Pacific 2008 India Escaped Shopper StudySM.
The study compared shopping behaviour of two groups of customers -- buyers of recently launched models and buyers of models that have been on the market for more than two years.
For a fourth consecutive year, Maruti Suzuki India performed well in persuading shoppers to purchase the brand, with 38 per cent of all shoppers eventually purchasing one of its models.
Among other vehicle makes included in the study, buyers of Mahindra-Renault and Hyundai tend to shop around the most before purchasing their vehicles, while Skoda and Mahindra buyers were least likely to consider another model in their shopping process, the study added.
"The introduction of several new models into the market during the past few years as well as increased advertising by manufacturers is likely to create greater dissonance in the minds of shoppers and cause them to turn to friends or relatives for reliable advice," JD Power and Associates Senior Director Mohit Arora said.
As a result, consumers were being more decisive during initial stages of the purchase process and fewer car buyers were considering multiple models, he added.
WITH US automaker Ford’s Indian subsidiary announcing its intention to launch a small car in India by 2010, the Indian small car market is set to witness an explosion of small cars. Carmakers are racing to get products on the road by 2010, with global auto giants like Honda, Nissan, Daimler Chrysler, General Motors and home- grown Bajaj Auto all announcing plans to launch their small car by 2010. Tata Motors’ ultra low- cost ‘one lakh rupee car’ Nano, unveiled in January this year, has ignited competition in this sector, hitherto dominated by Maruti Suzuki.