Domestic car sales hit record high in February

Car sales in India hit a record monthly high of 1.89 lakh units in February as customers advanced purchases in anticipation the government may hike excise duty in the Budget. Sales were also driven by rising disposable income with the middle-class , easy availability of loans, and a pick up in new product launches.

Car sales rose by 23% in February compared with a year earlier, data released by industry body Society of Indian Automobile Manufacturers (SIAM) showed Wednesday. The February sales number is higher than the record 1.84 lakh cars sold in January.

The Budget for 2011-12 , however, left excise duty unchanged at 10-22 % for different segments of cars, contrary to an expectation of a 2% hike. "Car prices have not increased much despite rise in global commodities prices like steel and rubber . Also, customers are enjoying flexible financing options. In future , however, we expect higher base of 2010 to moderate growth rate," SIAM Director General Vishnu Mathur said. Maruti Suzuki, the country's largest carmaker, reported 19.8% year-on-year growth in sales in February to 101,543 units.

"There was more demand in the market than what we could supply as we faced severe scarcity for our highrunning models like Alto and WagonR," a senior official from Maruti said. Hyundai sales grew 5.3%, while Tata Motors car sales grew 14% during the month. Two-wheeler sales in February grew 22% to a record 10.22 lakh units. The growth in the segment was primarily driven by market leader Hero Honda that posted 24% increase in sales to 4.62 lakh units last month. Sales of trucks and buses grew 11% in February to 64,057 units led by Tata Motors, Ashok Leyland , and Eicher Motors.

India's total domestic vehicle sales in the current fiscal year is expected to grow 26-27 % year-onyear , higher than SIAM's earlier estimate of 18%, said Mathur. However, rising interest rates on auto loans and spiraling global commodities prices, including crude oil, are concerns for the sector going forward.

Top 4 Best Selling Cars in India

Known devils are better than unknown angels. This thought seems to be very deeply embedded in the Indian car buyers mind. In spite of plenty of new car launches, the tried and tested old models like the Maruti Suzuki Alto, the M800, Hyundai Santro, Mahindra Bolero, Ford Ikon, Hyundai Accent and Tata Indica stay at the top as far as sales figures are considered. Even out of the top four highest-selling models in India, three are a decade old and two belong to Maruti Suzuki. In this article, lets have a look at the top 4 best selling models in India.

Maruti Suzuki Alto

It is very clear that the highest models in the country are still the cheapest cars. For Maruti Suzuki and for India, the Alto happens to be the best seller. A full-service car for so low a price attracts consumers. New cars with new features may have made their entry, but the basic technology made use of still remains the same.

Around 20,000 units of the Alto are sold every month. The impressive sales figures have prompted Maruti Suzuki to bring in a new-generation sibling for the model very soon, and together, the cars are expected to deliver sales of around 3,50,000 units a year.

Maruti Suzuki WagonR

Indias and Maruti Suzukis next best seller is another decade-old model, the WagonR. It has of course been refurbished very recently. The WagonR clocks sales of around 11,000-12,000 units every month. A vibrant yet safe package, the WagonR has been strapped with the best-in-class safety technology while its new peppy colours are full of novelty and vigour to keep you charged up and always ready to go. A reliable and fuel-efficient car, the WagonR suits the Indian car buyer just right.

Theres no doubt that Maruti Suzuki offers cars that are specially designed keeping in mind car buyers in India. Sales figures of Maruti Suzukis oldest model, the M800, prove this fact. In spite of the model being phased out of 13 cities after implementation of the new BS IV norms, it appears as quite a surprise that around 2,000 units of the M800 are still being sold every month. The car has a waiting list in markets like Srinagar in India.

Hyundai Santro

After the Alto and WagonR, the Hyundai Santro happens to be the next best seller. Its been twelve years since the models birth, but still sells nearly 7,000 units every month. If the combined sales of the Santro and the Hyundai i10 are taken into account, the duo clock around 20,000 units a month for the car maker. With the Santro displaying impressive sales numbers, it looks like Hyundai has no plans of phasing out the model despite its age.

Last year, the car was re-introduced into the Indian market with a few minor changes like beige interiors and an all-new grille. With this done, Hyundai will not be touching the Santros looks as of now. The car maker feels that the Santro has been selling real well and making changes would increase cost and lead to a subsequent price upgrade.

Tata Indica

The next best selling model in India is the Tata Indica. The car was first rolled out in 1998 and is of nearly the same age as the Hyundai Santro. Ever since its launch, this car has had modifications almost every year. The major changes, however, were done in 2001 with the launch of the Indica V2 and then in the year 2006 with the launch of the Indica V2 Xeta. Two years after that, in 2008 the Tata Indica Vista was born. Around 11,000 units of the Tata Indica roll out of dealerships every month and is Tata Motors largest selling car in India.

Analysts seem to be a little confused about this rather strange Indian phenomenon of old models going strong. It certainly is the credibility and affordability of the older models that works the magic in India.

Maruti Suzuki launched New Maruti Alto K10

Maruti Suzuki has launched its new version, Alto K-Series on the 4th August 2010 in India. The expected price of Alto K-Series is between Rs 3.00 lakh to Rs 3.40 lakh rupees. New Maruti Alto K10 is a new version of small car Alto. Improved mileage and powerful K-Series 1000cc Engine with attractive price are included in Alto K10. LXI & VXI are two variants of Alto K10, which will be available in six colors such as Sunlight Copper, Midnight Black, Fire Brick Red, Ecru Beige, Silky Silver and Superior White.












1-litre K10B engine, which has previously seen on the Maruti Suzuki A-Star, Estilo and the new WagonR, is will be the feature of Alto K10 car. Alto K10 became more powerful with the engine and this engine also offer it a class-beating fuel efficiency figure. For the light and zippy car, the company is claiming an ARAI approved figure of 20.2 kmpl. With new headlamps, a new radiator grille and revised interiors, which impart a sense of modernity to Maruti’s reputed people’s carrier, Alto K10 has also been suitably refreshed on the inside and the outside to distinguish it from its older sibling.

Except for the retuning of suspension and booster assisted braking system, there are not much mechanical changes. New Alto K10 engine is the new stuff but Maruti already uses it in A-star, Estilo and Wagon-R. 68PS of maximum power at 6200rpm and 90Nm of maximum torque at 3500rpm is produced by the K-series under the hood of Alto K10 produces. On the other side, because of the new engine, Alto k10 has gained just 50kgs. Effect is that, Alto K10 reaches 100kmphs in 13.3 seconds as opposed to 17.3 seconds by Alto.





Maruti Alto K10 Models:
* Maruti Alto k10 lxi
* Maruti Alto k10 Vxi

Features of Maruti Alto K10:
* K-series 1000cc engine
* Equipped with Fog light
* Speed meter along with RPM meter
* Attractive tale light
* Same color bumper
* Side new mirror
* Broad bonnet
* The new Alto is 125 mm longer than existing

Maruti Alto K10 Price in India –
Maruti Alto k10 lxi Price – Rs.3.1 lakh (approx)
Maruti Alto k10 Vxi Price – Rs.3.4 lakh (approx)

Maruti to launch five new CNG versions by August

In a bid to save its threatened market share in the Indian market, auto giant Maruti Suzuki India (MSI) is all set to launch not one or two but as many as five of its portfolio models in CNG version in the second week of August . The company will launch all of these variants simultaneously in a single day. The cars which will be launched in the CNG versions in the Indian market include some of the most popular Maruti cars in India such as, best-selling Maruti Alto, recently launched new Maruti Wagon R, compact hatch Maruti Zen Estilo, multi-purpose vehicle Eeco and entry level sedan Maruti SX4.

It is to be mentioned here that the market share of this largest car maker of India fell to 47.59 percent in the month of June 2010 from 55 percent registered during the same period last year. While the total passenger car sales in the Indian market were 4,33,641 units in the first quarter of this financial year, Maruti India sold as many as 2,06,377 units of its cars during this period. By launching CNG versions of 5 of its popular cars in India, the company will certainly enjoy the first movers advantage as very few cars are available in factory fitted CNG versions in the Indian market so far.

According to Mr Shashank Srivastava, Chief General Manager (Marketing) at MSI, the CNG models will be very important in company’s portfolio. He added that Maruti is the first company to come out with factory-fitted CNG cars and it will have the first mover’s advantage in the market. He added that It is the launch of a technology, not the cars. It is the concept of factory-fitted CNG models.

While briefing to the reporters regarding the launch of new Maruti Alto K-10, Mr Srivastava said that the company is expecting about 25 per cent increase in Alto’s sales after the launch of the new variant — Alto K-10. The Maruti Alto is the best selling car in the Indian market clocking sales of more than 20,000 units per month.

Hyundai to launch one new car model in India every year

Hyundai Motor India plans to launch a new model every year for the next few years as it seeks to hold its own in a fiercely competitive car market in the country. Besides, it will give a facelift to an existing model every year and also make minor modifications for a model year change.

(Auto makers refresh their line-up with small changes for the new calendar year, which they refer to as model year change.)

Over a buffet dinner at an Indian restaurant in Seoul's shopping district of Itaewon, Mr Han-Woo Park, Managing Director & CEO, Hyundai Motor India Ltd, told a group of visiting Indian journalists last week that this will be the company's strategy to meet competition, from the likes of Ford Figo, Chevrolet Beat, Volkswagen Polo and the new WagonR from Maruti Suzuki, besides the spate of new launches planned.

“I will launch minimum three models a year,” he told the journalists, on a visit sponsored by Hyundai Motor India to some of its parent company's facilities in South Korea.

“I feel that competition will be tough this year,” he said, and added that even in the face of the new launches by competitors so far this year, Hyundai Motor India's market share did not drop. This, he attributed to strong marketing and sales and the product line-up. Last year, the company's average market share was 20.6 per cent. In the January-April 2010 period, this increased to 20.7 per cent.

Hyundai Motor India sells the i10, Santro, i20 (all compact cars), Accent and Verna (sedans), and Sonata, a luxury sedan. It plans to launch the Santa Fe sports utility vehicle later this year.

The recently launched Ford Figo compact car has been reporting good sales numbers, especially the diesel option, which accounts for nearly 70 per cent of the car's sales.

Will he look at a diesel engine option for the i10? Mr Park replied that the company had not thought of this option till now, but might consider it for the new i10, whenever it was launched.

Hyundai Motor India gets 1.1-litre diesel engines from Hyundai Motor Company for the export model i10.

Mr Park was confident of the automobile industry's prospects for this year, with sales expected to grow 10-12 per cent over last year. Hyundai Motor India expected to do slightly better than the industry average.

The company, according to him, will have a stronger rural focus in the coming years. Rural sales accounted for more than a fourth of the company's total sales. From January to April this year, the rural market had grown 27 per cent, with Hyundai's sales growing at about 40 per cent. The company's strategy was to have sales branches in the rural areas to push sales.

When would the company think of expanding capacity? “We will think of it when the domestic sales account for 70-80 per cent of total sales,” said Mr Park. Last year, the domestic and export sales were equally split, with domestic sales growing to 57 per cent this year.

Mr Park was firm in stating that the company would not yield any more ground to a section of the workers which is threatening an agitation.

Last year, he said, the company took back 20 of the dismissed 87 employees. But some of them had agitated against the management, even when they were still serving their probation period. There was demand to take back some more of the dismissed workers.

Mr Park said “we will take a firm stand this time. We will not reinstate even one person.” On humanitarian grounds, the company was trying for an out-of-court settlement. “We have reached a settlement with four persons and are negotiating with a few more,” he said.

The industrial relations scenario was a major issue for the company, he said, and added that it would not be possible to run a large organisation if the company had to repeatedly compromise its stand. Moreover, it would affect the other industrial units in Sriperumbudur area, where Hyundai Motor India's plant is located.

“I don't think reinstatement is the only option for a settlement on humanitarian grounds. An out-of-court settlement is also an option,” said Mr Park.

Five Million WagonRs sold worldwide

Suzuki Motor Corporation announced that the total worldwide sales of the tall boy WagonR has reached 5 Million units at the end of February this year. While 5 million units is a huge number, Japan contributed 3,498,000 while Indians and Chinese bought 832,000 and 330,000 WagonRs respectively. Apart from these three countries, 340,000 units were sold in the rest of the world. The Indian sales figure is not even close to the Japanese figure because in Japan, the WagonR has been on sale for four generations while the second generation of the Indian WagonR will be launched on April 23rd. Read the previous article below.

The WagonR has been on sale in various countries (66 to be precise) and has been a very successful model largely because of its practical nature. It has twice won the Automotive Researchers’ and Journalists’ Conference of Japan (RJC) Car of the Year award and has been the top-selling minivehicle in Japan for seven consecutive years.

Maruti will launch the all new WagonR on 23rd April. It is based on the all new 4th Generation Japanese Domestic Market (JDM) WagonRs platform and features all new powertrain and suspension systems. The new WagonR will be powered by the K10B 3-cylinder engine currently doing duty in the A-Star and Estilo. The new engine promises improved performance and a huge improvement in fuel efficiency – ARAI figures are 18.9km/l, just 0.7km/l away from the A-Star. With more outright space than its competition (and siblings), the new model is expected to set benchmarks for the segment in terms of space. It will have a stiffer chassis and tailored blanks are used all over and these specially treated, sandwiched and layered pieces of steel help provide stiffness without adding wasteful bulk. The new WagonR also features an all new subframe that carries the powertrain and suspension. The lower arms are now pivoted on two points on the sub-frame against the single point pivot on the earlier model. This will improve driving dynamics by a large extent while reducing NVH levels to offer a refined drive.

The new WagonR comes loaded with kit right from tilt-steering, ergonomically designed gear knob, electrically operated ORVMs, new HVAC (Heating Ventilation and Air Conditioning system) design, improved rear legroom, storage tray under co-driver’s seat, dual-tone interiors, new steering wheel and lots more.

On the sidelines of holding a sneak preview of the model, Mayank Pareekh, executive officer, Marketing and Sales, MSIL, said, “It’s not a minor change and everything is new in this model. Usually, the company spends around Rs. 40-50 crore on refurbishing any existing model for it to be launched in a new avatar. But in the new WagonR, MSIL had spent more than Rs. 290 crore besides the investment from vendors. A lot of investments have gone into the development of the product to make it an optimal choice for the Indian consumer.” Pareekh said as of now MSIL would only be manufacturing the petrol version of the WagonR which would give more power and fuel efficiency.

He also added that, “The hatchback is India’s No.2 selling car only after Alto and we hope to retain this leadership position with new WagonR.”

Maruti Suzuki’s New K-Series Wagon R To Be Launched On April 23

Maruti Suzuki India (MSIL) is all set to introduce a new version of its second-best-selling car, the WagonR. A Rs 290-core investment had been made by the company for the development of its new car which will hit roads through the dealers across India on April 23.

Though the New Maruti WagonR has not yet been displayed on any platform, but a handful group of journalists were given a sneak peek at the car by Maruti.

The K-series WagonR model shows more taller longer and spacious stance than its predecessor. It will feature the newly developed K-10B engine from the popular K-series engines which is also part of the Zen Estilo and the A-Star. The price for the new Maruti WagonR model is still not revealed, though it is expected to be slightly above the previous models price range of Rs 3.30 to 3.50 lakh. The vehicle will be sold in three variants – LX, LXI, VXI.

Mileage is expected to be around 18.9 kmpl under test conditions by MSIL. The car will be features a cable-type transmission, which makes gear-shifting an easier process. The new HVAC design also allows for superior cooling. MSIL will be obtaining 93% of the total car parts for the new WagonR locally, while the rest will be imported from Japan.

MSIL currently only has plans to market the petrol version of the new model. The new Maruti WagonR also has the basic qualities of the previous version, which has sold more than 8.5 lakh units since its launch in 1999. The company hopes to retain the position and in fact do better with with the launch of its new model.

Toyota launches CNG version of Innova in India

Toyota Kirloskar Motor finally launched CNG version of Innova in India, its multi purpose vehicle that has become ubiquitous on Indian roads. Besides personal use a large number of agencies providing taxi services have included it in their fleet.

Toyota Kirloskar Motor before launching the CNG variant tested various types of CNG kits on Innova at its Bangalore based facility. The new kits for CNG are being supplied by Minda Auto Gas, which is also the original equipment supplier to Hyundai for its flagship car Santro and Maruti Suzuki for its LPG based WagonR Duo.

It is said that Toyota is looking at the CNG option to tap the vast commercial segment of tour operators and fleet owners. Innova is the market leader in this segment.

Toyota is banking on the high-demand of CNG vehicles, which deliver high mileage and offer low cost of operation. Already a large number of CNG and LPG cars are available in the market including General Motors Optra, Hindustan Motors Lancer, and popular compact cars like the Santro and the WagonR Duo.

The Innova, launched in India in 2005, created a different experience for customers with its exterior and interior features that redefined the automobile segment in the country. Since then, the Innova has cut a niche for itself by offering the luxury of a sedan with the performance of an MPV.

The Innova has continued its market leadership in 2008 with a 36% market share in the MPV segment. The Innova is a result of the unique IMV project from Toyota Motor Corporation (TMC) that has broken new grounds in the way automobiles are created.

Carmakers offer gifts and gold to lure customers

It’s raining gold in the car market. Fighting sluggish market conditions, carmakers are offering diamonds sets, gold coins & chains, silver plates and MP3 music systems to lure customers into their showrooms before the festive season.

Traditionally, festive season has meant free insurance covers and auto accessories for buyers. However, this time around, carmakers such as Hyundai Motors and Ford India are offering precious metals to attract female customers and new buyers. Hyundai Motor India (HMI) is offering a free gold coin with its entire range (except i10 AT and Getz 1.5L CRDi) and an MP3 player with the Verna sedan range and the 1.1L & 1.3L Getz hatchback cars.

HMI managing director HS Lheem said: “We are offering these gifts as part of our successful decade-long operations in India. Besides, with these valuable offerings, we’re making Hyundai products very attractive for our customers.”

While Ford Motors India, which recently gave a facelift to Fiesta, is now offering Tanishq diamonds worth Rs 20,000 with every Fiesta. It has also started special offers including cash incentives for corporate and public sector buyers.

Car sales have nosedived in the past two months after a three year-long growth drive. While sales grew 3% in July, August saw a 1.71% dip year-on-year. To fight the slowdown, other companies are taking different routes to tap the market. Maruti Suzuki India has launched special incentives to attract over 25.4 lakh employees from the insurance, banking and retail sector with additional discounts of Rs 17,000 on SX4, Rs 5,000 on M800 & Alto, Wagon R, Estilo and Rs 4,500 on Swift (petrol version).

“It is a tough time and we are concentrating on non-core markets. Banks, financial institutions and insurance companies make up a big market, but still remain tapped. We are directly giving cash discounts to customers in place of tangibles,” a senior executive of Maruti said.

American auto major General Motor has also followed the similar path offering huge cash discounts. The highest cash rebate of Rs 58,000 comes on the Spark compact car, followed by Rs 46,000 on Tavera multi-utility vehicles. Other pre-Diwali offers include Rs 28,000 discount on Optra Magnum sedan along with a 4-5% interest waiver on all loan deals.

Honda Siel Cars India (HSCI) has plunged into the discount market for the first time and has waived 50% insurance premium on its popular City and Civic sedans, besides offering comprehensive warranty and service packages to the customers.

LPG variant of Maruti 800

THE country’s largest car maker Maruti Suzuki India Ltd on Friday launched a new LPG variant of its once flagship model M800, priced between Rs 2.05 lakh and Rs 2.26 lakh (ex- showroom Delhi).

The new model, named M800 Duo will have dual fuel option of petrol and LPG, the company said in a statement.

“Dual fuel vehicles have always formed a prominent part of our overall product strategy. Besides, the car is economical to drive and being factory fitted, it is completely safe,” Maruti Suzuki India executive officer, marketing and sales, Mayank Pareek said.

The new M800 will be available in two options— M800 Standard with LPG, priced at Rs 2.05 lakh ex- showroom Delhi, and M800 AC LPG tagged at Rs 2.26 lakh. The company also offers Omni and WagonR in dual fuel options.

Hyundai too raising car prices as input costs mount

HYUNDAI Motor India Ltd ( HMIL), the Indian arm of the Korean automobile maker, on Wednesday said it would raise the prices of its products by up to two per cent from the first week of June.



“There has been an increase in the input costs and we have been absorbing it for a while. The situation now is such that we have to pass some parts of it to the consumers,” Hyundai Motor India Ltd senior vice president marketing and sales Arvind Saxena said. He said the company will hike the prices of its various models by up to two per cent. “The price increase will come into effect from the first week of June,” he added.

Hyundai currently sells hatchback models Santro, i10, Getz along with sedans Accent, Verna, Sonata Embera in the country. The companys move to hike prices follows rival Maruti Suzuki India Ltd ( MSIL), which last week hiked prices across various models by between Rs 1,000 and Rs 18,000.

Maruti had hiked the prices of all its petrol variants — the hatchback Swift, sedan SX4 and the Gypsy — by Rs 9,000, while the price of the diesel version of Swift was raised by Rs 15,000. It had 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 were hiked by Rs 2,000 and that of multi- utility vehicle (MUV) Versa by Rs 8,000. Earlier, in January, Hyundai Motor India had raised the prices of all its models by between two to three per cent.