Nissan Micra gets ready for booking!

Japanese carmaker Nissan said on Tuesday it will launch its Micra small car in the Indian market in July from a plant in the south co-owned with its French partner Renault.

"We will produce 80,000 units of Micra in the first 12 months beginning in May," Renault Nissan Automotive managing director Akira Sakurai said, according to Dow Jones Newswires.

The Micra was unveiled earlier this year at the Geneva auto show.

The Franco-Japanese carmaking alliance on Tuesday confirmed plans for another small car in the future, with its local partner, motorcycle and scooter manufacturer Bajaj Auto.

"We have room for another product, a small car, with Bajaj. This would be not just for Indian markets but for emerging markets too," Carlos Ghosn, chief executive of Renault-Nissan, said.

"The Micra will be competitive in terms of price and features with other Indian cars," Ghosn told media at a press conference in Chennai, where the car will be manufactured.

"To compete in India one must manufacture and source components locally, and meet Indian consumer needs," Ghosn added.

Nissan sold between 200 and 300 cars in India last year, all imported.

India and its 1.2 billion-strong population is a huge draw because of the low number of car owners.

Several automakers including Ford, Toyota and Honda are in the race to launch small cars in India in the next two years, to rival the Tata group's Nano, dubbed the "world's cheapest car" at 100,000 rupees (2,200 dollars).

Just eight per 1,000 Indians own a car, compared with 550 per 1,000 in Germany and 495 in France.

The Indian auto market is forecast to triple over the next decade to six million cars a year from the current two million.

The cars to be put on display across showrooms in India from May 25, will also be available for bookings at the same time.

The car to be produced from India and exported to Europe, Middle East and Asia in designed in keeping in mind the discerning consumer needs of India.

Merc set to bring A Class premium compact to India

In India the automobile market is dominated by compact cars. to join the race in the small car segment, Mercedes Benz is planning to bring its small car, the A Class, to India, a top official said.


Benz is planning to bring its small car, the A Class, to India, a top official said.


“The competition is heating up in the small car segment and we plan to bring our small car, the A Class, to the Indian market within two years,” Peter Trettin, president & CEO of Daimler, Central and Eastern Europe, Africa and Asia, said.


The A Class model has sold over 680,000 units worldwide since its launch in 2004. It was positioned as the trailblazer for a new vehicle segment.


Mercedes-Benz plans to expand its premium compact vehicle portfolio comprising the A and B Class from two to four models starting end-2011. The future models will offer product attributes that are already popular among A and B Class customers, such as a spacious interior. The models will also set a new tone through the introduction of additional variants and concepts.


Trettin said the company would position the A Class as its entry-level car in the Indian market. “It will be priced competitively to get a foothold in the market,” said Trettin. He was visiting the 100-acre greenfield plant at Chakan near Pune, in which the company has invested Euro 50 million.


Trettin said the Indian economy was growing rapidly and with it the aspirations of the people for better cars compared to the regions he was overseeing. “With the growth in the Indian economy, we expect the demand for our products to rise considerably,” he said.


Wilfried Aulbur, MD and CEO, Mercedes Benz India, claimed sales had picked up since December. “In 2010, the luxury car segment grew 80 per cent, but Mercedes Benz has grown 157 per cent and this is without the GL launch,” he pointed out.


The Mercedes Benz GL Class is a crossover sports utility vehicle and it matches, size-wise, Audi’s Q7 and BMW’s X5.


The company’s bus order book was full till September, mainly from the state transport departments, Aulbur said, but did not disclose volumes. “Demand in the market is picking up rapidly,” he added.


Trettin said the commercial vehicles market in India was doing well compared to other markets where sales had fallen by 90 per cent. “Eastern Europe and Central Europe were suffering and the company had to buy back stocks from the dealers and distribute them in other markets,” he said. The Middle East also saw a dip in commercial vehicles sales, he added.


Trettin said that from 24,000 trucks and 24,000 vans sold in 2008, sales were down to 9,000 each of trucks and vans in 2009.

Hyundai to launch 800 cc car both for India and export markets

Hyundai Motor India Limited (HTML) is planning to launch its 800 cc small car by 2011-12. The wholly owned subsidiary of Hyundai Motors Company is taking this step foreseeing the demand for small cars which is likely to touch 2 million units in India by the time this car gets to launch here. The Hyundai 800 cc cars will be both for Indian market and exports markets.


But the company made a clear remark that it had no intentions to give a competition to Nano as it does not have the capacity to manufacture Rs. 1 lakh car.


Hyundai is planning to undertake the production of this new 800 cc variant on the tunes of Maruti 800 and is supposed to hit the market with an affordable range. Hyundai is the largest seller of the small car


segment. Its current best seller is i10 but Hyundai plans to offer a car at a price tag lower than i10 this time.


“We hope to bring our smaller car than Santro, which will be an 800 cc vehicle, by 2011,” said H S Lheem, Managing Director Hyundai Motors India. He, however, did not divulge details like price range of the car. The car is aimed to hit not only the Indian domestic market but the company also plans to cater to the export market as well. The design of the car will be prepared in Korea.


The research and development work has already started at R&D centers at Hyderabad and Namyam (Korea). The company however has not revealed much about the product specification but there are anticipations that this car would be a petrol variant with 800 cc engine. These units have the capacity to manufacture 20,000 units per month and 600,000 units per year. HMIL has also promised a preview of its i20 car in the hatch back segment with a code name PB at the Paris Auto Tariff Show on October 2.


Hyundai is probably impressed by what Maruti 800 did to the Indian small car segment. Maruti Udyog happens to be the only company that boasts of having a monopoly in the small car segment in India. Hyundai’s new 800 cc car is bound to face tough competition from Maruti’s Alto, Maruti 800 and Spark. The company aims to take forward this sensation by launching yet another affordable small car, looking at the growing market of small cars in India.

Ford India to phase out Fusion superhatch

On the sidelines of announcing its dealership rollout pan-India, Ford India Private Limited (FIPL) has stated that it has firmed up its plans to phase out its not-so-successful car, Fusion in the medium term, without revealing any timeframe. The Fusion was launched in the Indian market in 2004 and is available in three variants and the company had promoted it as a combination of a hatchback and sports utility vehicle.



"We will discontinue the Fusion and our focus in the small car segment will be exclusively on Figo in the Indian market. The Fusion was also giving us a relatively small volume and we hope to do well with the Figo," Ford India managing director and President Michael Boneham told reporters in New Delhi. He also maintained that the phasing out is part of a product rationalisation strategy with the firm looking to focus on the compact car segment, which comprises over 70 per cent of the Indian car market that is heading towards the two million mark per year. He said the Figo would be positioned in the small-car segment, competing with cars from the Maruti Suzuki, Hyundai Motor India and Tata Motors stables. He told reporters, “After all, this segment constitutes the bulk of the market and even a 10 per cent annual growth would mean a huge addition to demand.” He did not believe that the premium hatchback segment was the place to be in, given its smaller numbers.

Meanwhile, as Ford India gears up to launch the small hatchback Figo, it has said that it will launch a new car every 12-18 months for the next few years. The Indian arm of the Detroit auto biggie affirmed that that it is better to be a volume player in the country, for which being aggressive in the small-car segment is the way forward. Ahead of its ambitious entry into the compact car segment, the company’s Indian subsidiary Ford India, on Tuesday opened 28 dealerships across 24 cities in the country, with small cities (Tier-II, III) as the main target market growth.

“What we are planning to do here is launch a new car every 12 to 18 months,” Michael Boneham, told reporters recently. Nearly 70 per cent of all cars sold in the country fall in the small car segment. “For us the majority of new launches will be in that segment across the next four to five years,” he said.

VW Polo to be seen in India by 2010

The Volkswagen Polo is expected to be in the Indian car market by the end of next year. Indians have been long expecting the launch of this supermini car. But the wait just a little longer.

It has been reported three years back that the car will be available to the Indian car customers by 2009 and it will be competing against the Maruti Swift, Hyundai Getz and Tata Indica. But when the promised time has just arrived the wait is extended by another one year and the car will have a new set of rivals in the Indian market by the end of 2010.

Let us hope that the wait will finally end this year. The bookings have already begun in Europe for this fifth-generation of Polo. For the European customers, the Polo is a very familiar model and a much loved one also. But for us Indians, we have to wait until Volkswagen plans to deliver this cute hatchback to our shores by sometime in 2010.

For the Indian car customers, there will be modifications in the car so that it will meet their needs the best. But from the master car builder it will be surely some great features, as the Indian customers also have now learned the trick of not getting settled for what has been offered but asking for more.

The exteriors of the car will match its siblings the Volkswagen Jetta and Passat, but mocks at the more serious look of these models with the dual indicators, which gives the car a sportier look. As for the engine options, the base model of the car will be available in a 1.2-litre petrol and there will be a more powerful engine option of 1.2 TSI petrol motor.

The price is expected to be between 4 lakh and 7 lakh which looks quite tempting, but wait and see, what this long wait has in store.

BMW skeptical Over Mini Launch

It looks like the German premium car maker BMW, is skeptical of launching its iconic luxury hatchback, the Mini in India. The launch of this hatchback was supposed to happen by the end of this year. BMW had announced its Mini launch plans during the launch of BMW X6, a sports activity coupe in India.
The Mini is a three-door luxury hatchback that was likely to be imported as a CBU in India. The BMW Mini would carry a price tag of Rs20 Lakh. The delay in the launch of this luxury hatchback owes largely because the luxury hatchback market in India is not developed. Moreover, BWM thought the investment to launch a new brand would be substantial in this condition. Any carmaker needs to look at the potential business opportunity before launching a car, especially when it’s a luxury car. BMW Mini would have faced a tough competition with the Fiat 500 if it had been launched in India at the prescribed date.
The German car giant would reconsider the launch of the Mini by the end of the third quarter of the calendar year. BMW competes with European rivals DaimlerChrysler (DCXGn.DE) and Volkswagen (VOWG.DE) in the premium Indian car market. This German carmaker makes the 3 and 5 series in India and also sells its 7 series from imported kits.
To strengthen the dealership network, BMW will set up dealerships in 10 more cities by the end of 2010. Presently, there are 13 dealerships in the country. The company has invested $30 million in India, including setting up a plant in Chennai.
BMW has lined up a slew of launches in 2009 like the new BMW 7 series, the new BMW 3 series, and a diesel variant of BMW X3.

Honda JAZZ

The journey of the first generation Jazz started in 2001 with its debut launch in Japan. The car is now being sold in more than 115 countries across the Globe. The first generation Jazz set a benchmark by achieving cumulative sales of more than 2 million units. The truly acclaimed and the stunning performer Honda Jazz , in its Second generation avatar, is all set to hit the Indian Roads in early June 2009.

It is the best-in-class driving machine with incredibly spacious interiors, ultra-frugal engines, unrivalled build quality and nimble handling. It’s more than meets the eye.

Sporting a perfect combination of external compact design & spacious interiors it also offers ample luggage space. The newly improved one-motion operation Magic Seats make the car even more versatile by letting you fit almost anything you can think of. Its longer wheelbase and a compact engine bay render more cabin space for both the driver & the passengers for a comfortable drive.

The car has been awarded the ‘Japanese Car of the Year 2007-2008’, and has been widely acclaimed for its stylish exteriors, spacious interiors, unmatched safety features and outstanding fuel economy. The car has been the most sold car of Japan in 2007-08.

Since safety is of paramount importance for Honda, Jazz has been packed with ingenious safety features to help avoid collisions and minimise injuries during unavoidable accidents.

New Honda Compact Car to be Priced Below Rs. 5 Lakh in India

Small cars or compact cars go pretty well with the populace here in India and Honda gauging this aspect, decided to introduce the Jazz here. However, many prospective buyers of the car have been put off by the high price of the car, which has not even launched as yet.

But if you remember, the Japanese car maker was working on two, not one, small cars for the country. Now Indian newspaper, The Times of India, is reporting that Honda Siel Cars India (or HSCI) is planning to get their other small car with a price tag that would be below the Rs. 5 lakh mark. In fact, officials from the company have pointed out that a new team focused on research and development would be in place from next month.

Elaborating more on the team, an official from Honda India explained, “The R&D team will be headed by a senior Honda official from Japan. The expected size of the team is around 25 members and it will also have people from Honda’s India operations from departments like manufacturing and purchase.”

The new compact car by Honda India is expected to be priced somewhere around Rs. 4.5 lakh. Though there is no word on the release date, it is expected to be out within the coming three years. The R&D team will not only work on the indigenization of the car but also on the localization of the production of key components, which will keep the costs low.

New Honda Compact Car to be Priced Below Rs. 5 Lakh in India

Small cars or compact cars go pretty well with the populace here in India and Honda gauging this aspect, decided to introduce the Jazz here. However, many prospective buyers of the car have been put off by the high price of the car, which has not even launched as yet. But if you remember, the Japanese car maker was working on two, not one, small cars for the country.

Now Indian newspaper, The Times of India, is reporting that Honda Siel Cars India (or HSCI) is planning to get their other small car with a price tag that would be below the Rs. 5 lakh mark. In fact, officials from the company have pointed out that a new team focused on research and development would be in place from next month.

Elaborating more on the team, an official from Honda India explained, “The R&D team will be headed by a senior Honda official from Japan. The expected size of the team is around 25 members and it will also have people from Honda’s India operations from departments like manufacturing and purchase.” The new compact car by Honda India is expected to be priced somewhere around Rs. 4.5 lakh.

Though there is no word on the release date, it is expected to be out within the coming three years. The R&D team will not only work on the indigenization of the car but also on the localization of the production of key components, which will keep the costs low.

The Love Bug Bites

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

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



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

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



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

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

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

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

Audi weighing options for luxury small car launch in India

German luxury car maker Audi is weighing options for the introduction of its best selling small car A3 and upcoming A1 in India.

Although, according to the Audi’s preliminary assessment the Indian automotive market is still not ready for the luxury small cars, the company is waiting for the appropriate time to go ahead with the launch of such cars, possibly in 2010, according to a top company executive.

“Market dynamics in countries like China and India are fast changing. In the emerging markets, it would take just half the time it took to develop a market for such cars in Europe,” Mr Martin Birkner, Vice-President (Marketing), Audi India, told Business Line, hinting that the company’s current plans could be reviewed.

“We have no plans to sell compact cars at least until 2010 as we first want to establish ourselves as a luxury brand. But things can change according to the market situation,” he said.

Audi’s entry level luxury car A3, which is credited with creating an entirely new market segment of premium compact car in Europe, and the upcoming super mini car A1, claimed to be highly economic with its hybrid powertrain, are considered to be best fit for its strategy to expand its presence in developing markets. A1 is likely to be launched in 2009 or early 2010.

China
Faced with the stiff challenge from BMW and Mercedes-Benz in China, Audi which dominates the luxury segment in that country is mulling the launch of A3 in China this year. Audi sold more than one lakh cars in China in 2007.

Indian market
In US market, A3 price starts at US $25,930 (Rs 11.25 lakh) while the price of A4, the least expensive Audi car available in Indian market, starts at Rs 29 lakh. Audi, part of group, seems to be following its top-down strategy. Volkswagen came to India with Passat in the luxury segment, launched Jetta in the D segment and is working on an India-specific premium compact car on Polo platform.

Another group company Skoda has made significant inroads with premium hatchback Fabia, which sells around 600 units a month. “As a group, we have presence in almost every segment. We are in no hurry to launch Audi’s compact cars. Our focus is currently on establishing our luxury brand image,” he said.

“In India there is no market for small expensive cars. We know that it will be growing. But now, it is a little early to launch such products,” said a source in Audi India.

However, in its long-term India strategy, Audi cannot do without A3. Out of 9.64 lakh cars the company sold globally in 2007, A3 contributed 2.31 lakh. Audi sold 350 cars in India in 2007. In the current year, up to July, the company sold 595 cars.