New models from Fiat coming soon

Just as the sales momentum picks up in Motown, international car majors like Volkswagen, Nissan and Fiat are re-energizing their small car plans in India.
After the small car launches from the Volkswagen and Nissan stable in 2010, Fiat will now come out with its own small car in 2011-12.

After tasting success with the Linea and the Punto, Italian auto major Fiat is busy working on a small car.
No, it’s not going to compete against the Nano but it will be positioned between the Nano and Grand Punto with a price tag of around Rs 4 lakh. The company is currently considering various engine options right from 900 cc to 1200 cc for the small car.

Silverio Bonfiglioli, COO of Fiat Group International, said, “One vehicle that you can sell is in the Rs 3-4.5 lakh category, one vehicle that is above the Nano and the 800 and that can compete with existing cars. I think there is a space for our company to have a car that has convenient price and value proposition."
For now, the focus is on launching powerful Linea's and Grande Puntos but the real volumes will kick in in 2011-12, once the small car below the Grande Punto hits the market. That's why the company is eyeing to sell 2,00,000 cars by 2012 with an aim of achieving 7-8 per cent market share.

But FIAT LCVs and premium cars are still sometime away.

" The ideal time for LCV launch is 2012-2014," said Bonfiglioli.

Meanwhile, the company will continue to build its network and manufacturing capabilities to create its own market in India and a strong base for exports of small cars.

Volvo delinks from Ford India

Volvo in India will no longer be a subsidiary of Ford India, but a separate company.

With Ford Motor Company planning to sell Volvo Cars and announcing Chinese carmaker Geely as the preferred bidder, the Indian operations of the Swedish company have severed its ties with Ford India, said Mr Paul de Voijs, Managing Director, Volvo Auto India, while speaking to Business Line.

Volvo Cars India has changed its name to Volvo Auto India Pvt Ltd, with effect from October 1.

“The process which started in May should help in case of a possible sale. It will help avoid complications,” he said.

In 1999, Ford had acquired Volvo Cars from Volvo AB as part of its Premier Automotive Group, which then included Aston Martin, Jaguar and Land Rover. Volvo had begun operations in India in March last year as a subsidiary of Ford India, with all backend operations being handled by Ford.

When asked how the sale of Volvo may affect the company’s plans, especially in terms of component supplies for Volvo products, Mr de Voijs said that there should not be any impact.

“Short-term changes won’t affect our long-term plans for India. We do not believe in setting up a huge network at first, but instead, we believe in the gradual process to build our strength in terms of volumes as India is a huge market,” he said.

He added that the company already has seven dealerships in the country, which it will increase to 12 by end 2010. The new dealerships would be in Kolkata, Bangalore, Ahmedabad, Goa and Coimbatore.

Mr de Voijs said that Volvo had sold about 100 units between March and December last year and sales for the current year is close to doubling. “The luxury segment has grown by 20%, whereas we have grown by 23%,” he said.

Volvo has plans to launch two new cars in India next year. First up will be the smaller brother of the XC90 luxury sports utility vehicle (SUV), the compact crossover SUV XC60, which is slated for launch in the first half of 2010. This will be followed by the launch of the new S60 sedan in the second half of the next year. Volvo sells its top end S80 sedan and XC90 in India.

“The XC60 will be launched after the Auto Expo. We are currently road testing it at the International Centre for Automotive Technology (iCAT),” said Mr de Voijs.

He said that Volvo will also launch a diesel variant of the S80 next month, while the C70-coupe may also be made available, but on an individual basis according to demand.

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.

Maruti Suzuki Tops Again

India’s numero uno car company -"Maruti Suzuki" has topped the list for the tenth consecutive year for customer satisfaction in the country according to a recent survey conducted by global market research firm J D Power.

In the survey, "J D Power Asia Pacific 2009 India Customer Service Index Study", Maruti Suzuki scored 824, on a scale of 1,000 points, followed by Honda Siel Cars India at 791 and Mahindra & Mahindra at 757.

It was to be noted that only Maruti Suzuki and the Indian arm of Honda bettered the industry's average score of 785.

The other major car makers in the top ten list are Toyota with 754 points, Mahindra-Renault and Tata Motors at 750, Chevrolet with 748 points and Hyundai with 5 points less than Chevrolet. Ford is at the eighth place with 733 points followed by Fiat at 727 and Skoda is at the tenth position at 722.

The Senior Director of J D Power Asia Pacific mentioned that the leading brands differentiate themselves in the service quality and vehicle pickup factors. The study measured overall satisfaction by examining five factors -- service quality, vehicle pickup, service advisor, service facility and service initiation.

J D Power also said the number of customers who changed from organised dealership service facilities to non-authorised service centre for vehicle service requirements decreased to seven per cent in 2009, from 11 per cent in 2008.

Overall customer satisfaction is measured on a 1,000 point scale, with a higher score indicating higher satisfaction. The study, which is based on responses from more than 5,800 owners of nearly 50 different vehicle models, was fielded from May to August 2009 and includes customers who had purchased their vehicles between May 2007 and August 2008.