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

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

Ssangyong Rexton will be available only in diesel option. 

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

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

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

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

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

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

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

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

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

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

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

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

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

Skoda consolidating position

After almost a decade of its entry into the Indian market, Skoda Auto, part of the Volkswagen Group, is now focussing on consolidating its position in one of the world’s fastest growing car markets. Accordingly, it is all set to launch its sports utility vehicle (SUV) Yeti, besides chalking out plans for India launch of its new compact car that is now under development. Buoyed by the tremendous response at the recently concluded 10th auto expo in New Delhi, the Czech automaker will be taking unique initiatives that include selling cars online and opening boutique outlets, besides launching new variants of the four models it currently sells in India.

Explaining the importance of the Indian market, Skoda Auto’s Member of the Board (Sales and Marketing) Reinhard Fleger told The Hindu that “The Indian automobile industry continues to be among the most promising car industries across the globe that would continue to grow in the coming years backed by an estimated economic growth of about 7 per cent. Skoda has a share of around 25 per cent in the mid-size segment. We have aggressive plans for the Indian market and aim to emerge as a major player. The launch of Yeti is an integral aspect of this plan.”

Yeti, which is one of the best-selling SUVs in Europe, is likely to be launched in mid-2010. Initially, the top-end variant would be made available in India followed by more engine and model options. “We hope Yeti will help us capture 10-15 per cent share in the SUV market. Overall, we are doing exceptionally well. Globally, India will emerge among top five markets for us from the 11th position now,” said Skoda Auto India’s Member of the Board (Sales and Marketing) Thomas Kuehl.

To address low-cost car markets like India, Skoda had already begun work on a car smaller than Fabia. “Work on the ambitious project is now on at our headquarters. We will surely be launching the car here and use India’s low-cost advantage to our benefit for this model,” he said. The car is likely to be launched next year. Skoda also plans to leverage India’s low-cost manufacturing advantage.

About expanding Skoda’s reach in India, Mr. Kuehl said the company was planning to add to its existing network of 65 dealerships to cover more cities and towns. Its initiative to sell cars online has also been a hit and now the company wants to make it a permanent feature to boost sales.

Nissan to roll out Murano

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.

Ford to increase market share by new car launches

Michael Boneham, president and MD of Ford India here on Thursday indicated that the US car maker, Ford has decided to launch a new car every 12 to 18 months in India to enhance its market share. However, he did not indicate what sort of market share the company aims to achieve in the long run. Talking to newsmen at the inauguration of Ford’s new dealership, Victoria Ford, Mr. Boneham said: "We now have a marketshare of nearly 2% and we want to grow it significantly in coming years. Launching of new cars from the Ford stable, will play a crucial role in growing our market share in India."

For 2009, Ford India aims to achieve sales of 30,000 cars compared to 29,000 cars sold in calendar 2008. "In September ‘09, we have been able to sell 3,500 cars which is a 50% increase year-on-year basis," said Nigel Wark, executive director (marketing, sales and services). By investing $500 million, company will expand production at its Chennai plant from 1 lakh to 2 lakh vehicles, apart from producing 2.5 lakh engines, both in petrol and diesel.

SUV Ford Endeavour with some added facilities is being relaunched by Ford and Boneham informed that the new Ford Figo, on which the company is depending to get into the lucrative A segment, would be available in both petrol and diesel variants also. The company exports its cars produced in India to South Africa. Ford’s foray into the Indian compact car market with Ford Figo is expected by the first quarter of calender 2010 and the vehicle would be exported to Asia Pacific and Africa along with sales in India. Last year, the company had exported nearly 4,000 cars.

Dhoni Fined for Hummer H2

Indian Cricket Team Captian MS Dhoni will have to face the rage of the law.

The Indian skipper is fined Rs 100 for delay in the registration of his Hummer H2 Sports Utility Vehicle (SUV).

It is a rule in India to apply for registration within a week of purchasing the car. The rule applies to all. Dhoni too applied for the registration of his Hummer H2 but has submitted an incomplete form. Dhoni was away at that time on India duty. Paying a fine Rs 100 for an Rs 1 Crore SUV is pittance for Dhoni.

Dhoni accompanied by his teammate R.P. Singh had driven the Hummer from Lucknow to Ranchi on July 30. Besides Dhoni, Harbhajan Singh too owns a Hummer H2, made by US auto giant General Motors.

This is the second time Dhoni has faced penalty in connection with cars or for flouting driving rules. Three years ago, he was fined by a traffic policeman for driving a car with tinted window panes, which is banned in his hometown Ranchi.

Moreover, the skipper is also on a sticky wicket with his Harley-Davidson bike. He is yet to submit a “road worthiness certificate” by the makers of the bike which is necessary to have it registered. Dhoni had opted for a number of his choice, a combination of his lucky number 7. Till now he didn’t get his favourite number on his license plate, but there is a high possibility that he would get it soon. The registration number could not be issued till the road-worthiness certificate was furnished.

But Dhoni could burn a hole in his pocket if he continues to drive around in the numberless luxury muscular bike. He may have to pay Rs 4,500 after the initial fine of Rs 100 for his Hummer H2.

For people like us, this is a huge amount, but not a person like Dhoni, who can own a one-Crore-rupee SUV.

Range Rover First Steer in the UK

The Range Rover is a four-wheel drive luxury sport utility vehicle (SUV) produced by Land Rover in the United Kingdom, owned by the India-based Tata Motors. It was first introduced in 1970 and is still in production today. There have so far been three major generations. The original model was known simply as the Range Rover until almost the end of its life, when Land Rover introduced the name Range Rover Classic to distinguish it from its successors.

The second generation had the internal Land Rover code name "P38A", and the latest generation is internally designated "L322".

SUV is the new market propeller for auto sales in India

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

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

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

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

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

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

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

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

Audi Q7 enters Indian SUV market!

The latest lady in town is SUV Audi Q7, which German premier car maker Audi announced on Thursday.

The sports vehicle will be available in Maharashtra in 11 colours and in three price range costing Rs 55.2 lakhs, Rs 53.4 lakh and Rs 29.9 lakh.

The car has all the latest ranging from features like voice control, so the driver can just call out the name of a song on the music system or a phone number from the cellphone.

It also has adaptable headlights that switch on or off according to the moves of the car, showing the path ahead. This seven seater luxurious car has a capacity of about 2,035 litres.

“Audi India achieved remarkable growth in the first eight months of 2009 by selling 1,128 cars (62 percent growth). With the launch of new Audi Q7, we expect to sell upwards of 1,500 cars,” said Audi India managing director Benoit Tiers.

Delhi, Gurgaon, Chandigarh, Ludhiana, Mumbai, Pune, Ahmedabad, Bangalore, Hyderabad, Chennai,Kolkata and Kochi already has Audi dealers.

“We plan to expand to Jaipur, Lucknow, Nagpur and Coimbatore soon,” Tiers said. Now that’s what the car lovers fantasy comes true!

Audi to launch SUV Q5 in India

Audi is ready to launch its new SUV Q5 in India on June 05. The brand new SUV was launched in Europe in November 2008. The new Audi Q5 is geared towards brand building and Audi’s plans to expand its product portfolio in India. BMW has already surpassed Mercedes sales figures in the country and Audi is looking at the same market segment with keen eyes. To facilitate its growth in Inda, Audi plans to invest around 30 million Euros in India, till year 2015. Audi already marks its presence in the luxury SUV segment with its model Q7.

The Model



The company has not released any official specifications about the car or made any comment about the expected price range as well but is definitely betting big volumes with this car especially in India and Russia. The car will be imported as a CBU or completely built units in India from Audi’s Ingolstadt facility in Germany.



According to the industry sources, the new Q5 will be a 5-seater SUV which can be safely called as a mini-SUV and is very much in line with its big brother Q7. It has taken the styling cues from Q7 series which remains one of the favourites amongst the car buyers and designers. The basic style still features sportiness clubbed with all the luxuries of any basic premium SUV model.



Q5 definitely has an enormous boot space and with its rear styling like Q7, the Indian SUV surely will be lot roomier at the back. The imposing grille in the front is iconic of any Audi car but the vertical sports bars make the car look extremely classy. The Xenon lamps further lend an aggressive look to the car which seems necessary for any SUV. SUVs cannot have the softer looks of a luxury sedan, can they?



Audi brought as many as four variants of its SUV Q5 in Europe but in India it plans to bring only two variants - a 3.0-liter TDI diesel car and 2.0 liter TFSI petrol car. It will sport a 7 speed manual gearbox which is special because it allows clutch-less manual shifting. Audi’s Quattro 4-wheel system marks its presence in all its models and you can expect the same in Q5 as well. It will have 40:60 front-torque split to give more sporting drive. Q5 has been designed in such a way that it offers good visibility to the driver and even with its compact design; it does not intimidate the driver. You can expect the huge door mirrors to make a lot of wind noise at high driving speeds.



The Price and Other Features

For the mileage and the actual price of the car, the Indian customers will have to wait till the exact launch date. However, since Audi Q5 is expected to rival BMW X3 in India the expected price of the car is between Rs. 45 -50 lakh. Its current Audi Q7 is prices at Rs. 57 lakhs in India and Q5 will be definitely priced below that.

General Motors launches new Chevrolet Captiva

Auto major General Motors India (GM) on Friday launched the automatic version of its Chevrolet Captiva sports utility vehicle (SUV), priced at Rs.2.03 million (ex-showroom Delhi).

The SUV that was first launched in 2008 comes with a common rail diesel powertrain.

"The new Chevrolet Captiva Automatic+ brings superlative comfort and ease of driving combined with unbeatable value, safety, security and luxury to our customers,” GM president and managing director Karl Slym said.

The car features an automatic all-wheel drive (AWD) that GM claims is able to adjust between four-wheel drive and two-wheel drive automatically according to the terrain.

Mahindra to Launch Xylo in India

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

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

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

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

First seven-seater car launched in India

The Swedish Volvo Group is launching its first seven seater car in India, which is available in five attractive colours, stylishly priced at Rs 58 lakhs. Paul De Vojis, managing director, India says, they plan to launch three more models soon..

SWEDISH LUXURY car manufacturer Volvo has rolled out the latest variant of its luxury SUV XC90 in the Indian market. The car comes outfitted with a powerful V8 4.4 litre petrol engine delivering 315 bhp.

The XC90 made an entry to the Indian market in the year 2007 and the all-new variant is loaded with a host of luxury and safety features. It comes equipped with sports calibrated steering, sport-tuned chassis, and stylish stability control techniques.

According to Volvo Car India managing director Paul De Voijs, “The launch of the new variant of XC90 aims to broaden our model range to attract more customers with an active and urban lifestyle. Volvo that entered the Indian market in September last year with two models, has so far sold over 100 units.

He also said that we plan to launch our most recent offering XC60 soon after it is rolled out in Europe in November this year. We have three other models that might also be launched in India.”

The Volvo XC90 R-DESIGN will be available in five colours and is the first seven seater Volvo car in the country. The car is priced at Rs 58 lakhs (ex-showroom, Delhi).

The company is also planning to bring its all-new compact-sized crossover, XC60, in the country after its launch in Europe next month.

Skoda India for increased marketshare in South India

On the sidelines of inaugurating its showroom at Gudavalli in Andhra Pradesh on 20th September'08, Skoda India has said that it is aiming to enhance its marketshare in the southern part of India by opening several such showrooms. It is the third Skoda showroom in the State, after the ones in Hyderabad and Visakhapatnam. The company has indicated that the number of units sold in South India account for one-third of its overall sales and it believes the new models would help it to shore up its bottomlines.

Mahavir Auto, the sole authorised dealer of Skoda India in the State, opened a 'triple S' showroom to offer sales, service and spare parts for Skoda cars in the coastal region. The dealer has notched up more than 6,000 units of Skoda models in the state. It is widely believed that the Indian arm of the Czech-based company would be setting up a showroom at Vijayawada as there are nearly 1,000 Skoda customers in and around that city.

According to a senior representative of Skoda India, the company which commenced its operations in India in 2001 could capture a 6 per cent market share in the luxury car segment from 4 per cent currently. The latest model, Fabia, was selling well and so far 5,000 cars had been sold, he added. He also pointed out that this was the country's only super hatch car, as of now.

The Czech company, which is part of the Volkswagen Group, came to India in November, 2001 and has a manufacturing facility at Shendra near Aurangabad, Maharashtra. The company aims to launch SUVs, MUVs and a car that would be priced below their Fabia model. Skoda India will also be expanding its dealership across the country. Currently, it has 56 dealerships and by 2009, it will be increased to 75 countrywide.

Skoda Fabia is currently their cheapest offering in the Indian market. They also sell Octavia, Laura and Superb.

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

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



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





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

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

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



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

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

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



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

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

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

2008 Paris Auto Show: Hyundai Targets Ford Fiesta With New i20

Hyundai laid out its plans for the 2008 Paris Auto Show on Wednesday, including its centerpiece, the i20, which has such stalwarts as the Ford Fiesta, Volkswagen Polo and Opel Corsa in its crosshairs. The all-new i20, which will join the ranks of Europe's supermini segment, makes its world premiere on October 2 as the replacement for the Hyundai Getz.

Hyundai, while being stingy with details, noted that the five-door has a "longer wheelbase than the existing Getz and is both bigger inside and more dynamic in appearance." The new i20 was designed at Hyundai's European Design Center in Russelsheim, Germany. Exterior cues include a chrome-topped grille and teardrop-shaped headlights.

"The i20 was designed and engineered to meet European tastes and needs," said Kun Hee Ahn, Hyundai Motor Europe president, in a statement. "It was built on an entirely new platform, and much of the ride and handling development took place on European roads."

There are no plans to bring the i20 to the U.S. at the moment.

Hyundai also said it will introduce a low-emissions i20 i-blue concept, which is based on the i20 production model, at the 2008 Paris Auto Show. The concept version gets Hyundai's new 1.4-liter CRDi diesel engine which delivers 88 horsepower and generates 162 pound-feet of torque. The engine is mated to a six-speed manual transmission. Hyundai said the concept returns the equivalent of 45 miles per gallon.

Hyundai said it will also show off the Santa Fe gasoline-electric hybrid concept at the Paris auto show. The Korean automaker said this concept has a "new hybrid drive system which mates the current 2.4-liter [gasoline] engine to a six-speed automatic transmission and a 30kW electric motor powered by lithium-ion batteries." This concept returns the equivalent of 36 mpg.

Hyundai will also display its seven-passenger ix55 SUV at Paris. The ix55 is spun off the Hyundai Veracruz and is being shown in what is described as "production-ready form."

Skoda to introduce 8 new models in India

Auto brand Skoda India will strengthen its position in India by rolling out eight new models in the country in the next five years. Its list of new cars waiting to be launched includes the new Skoda Superb, Skoda Yeti and Roomster.

SKODA INDIA is thinking big for India. In order to strengthen its position in India the company plans to roll out eight new models to India in the next five years.

Skoda made its entry into the Indian market with its popular model Skoda Octavia in the D-segment. It also bags the credit for introducing Pump-Duse technology with its model Skoda Fabia for the first time in India.

Skoda Fabia, a premium hatchback, the most popular and stylish model in India, has created a rave in the Indian auto industry.

The brand is also planning to roll out another small car for the country, which will be cheaper than Fabia.

Every model of Skoda’s model is a success in the country and now Indian users will experience a new model from Skoda every year. The company’s list of new cars waiting to be launched in India includes the new Skoda Superb, which will make its entry in early 2009 and Skoda Yeti from the SUV segment while the Roomster will also hit Indian roads in a couple of years.

Skoda India will also be expanding its dealership across the country. Currently, it has 56 dealerships and by 2009, it will be increased to 75 countrywide.

GM’s future now depends on small cars

GENERAL Motors Corp. is known for making top- notch trucks and sport utility vehicles. The company’s survival now hinges on the difficult task of convincing buyers that its upgraded cars are just as good as its trucks and worth some extra cash. That’s essentially the business plan for the reconstituted GM, the one that is trying to make it in a US market where people no longer want $ 42,000 Chevrolet Tahoes that get only 14 miles per gallon ( 5.95 kilometers per litre) in the city. Instead, the revenue to sustain the nearly century- old industrial giant will have to come from cars, which have typically made only hundreds of dollars in profits.

Better cars, and lots of them. The change has come quickly. Faced with high gas prices and a weak economy, GM's sales fell 16 per cent for the first half of the year, with trucks off 21 percent and cars down nearly 9 per cent. GM has lost billions of dollars during the last three years. The company on Tuesday announced a combination of cuts, borrowing and asset sales that would raise $ 15 billion to weather the recent slump in US auto sales and the rapid shift from trucks to cars. Henderson, who concedes that GM has some repair work to do on its car brand image, says the change will have to come one or two models at a time.

It will follow the path of the new Chevrolet Malibu, which saw sales jump 46 percent in the first half of the year and average sale prices rise $ 4,000 over previous Malibu models due to improved quality. “ One product launch does not a success make,” Henderson said. “ It’s how do you build on that? But I think it gave us some confidence that if we get the car right and we get the promotion right, we can make progress and we can actually bring people back to the car.” GM has big plans for cars and car- based crossover vehicles. Nearly every brand, including Cadillac, will be getting a small car soon. Eighteen of the 19 vehicles GM is launching between now and 2010 are cars or crossovers.

One model, the sleek new Chevrolet Cruze due out in 2010, is the replacement for the clunky Chevrolet Cobalt small car. GM plans to power the Cruze with a 1.4- liter turbocharged four- cylinder engine, allowing it to get around 45 miles per gallon ( 19.13 kilometers per liter). Clark said in a statement, “ GM will likely face a sizable cash burn until it gets this part of the equation right.” GM Vice Chairman Bob Lutz said car prices also will rise because of demand, while truck and SUV prices will likely fall.

Maruti hikes prices of its models as input costs rise

INDIA'S largest car maker Maruti Suzuki India Ltd, on Monday raised prices of most of its models to offset the rising cost of inputs such as steel.

The price hike ranges from Rs 1,000 on the Zen Estilo and Wagon R hatchback to Rs 18,000 on its sedan Swift Dzire. The company had launched the Swift Dzire sedan with an introductory price ranging from Rs 4.49 lakh to Rs 6 lakh across different variants, which has now been withdrawn, a Maruti dealer said.

Maruti has also hiked the prices of all petrol variants of hatchback Swift, SX4 and Gypsy by Rs 9,000, while the price of the diesel version of Swift has been raised by Rs 15,000. It has also increased the price of all variants of Zen Estilo and WagonR LPG by Rs 1,000 and of Alto and M800 by Rs 1,500.

Prices of all variants of Omni and WagonR Petrol have also been hiked by Rs 2,000 and that of multi- utility vehicle Versa by Rs 8,000. The price increases, which spared the Grand Vitara SUV, came into effect at the weekend, he said.

Maruti's managing director, Shinzo Nakanishi, had said in April that the car maker was negotiating with steel companies on new contracts, for which it faced up to a 40 per cent price increase. Earlier, Maruti had cut prices of some of its models, after the government reduced excise duty on small cars.