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.

BMW to launch electric car, MegaCity, in 2013

When everyone is going green, BMW does not want to be left behind in the race. Yes, we are talking about the latest trend, well known as electric cars, that has become so popular among the global car manufacturers.

BMW will launch a new car in 2013 which will run entirely on electricity. BMW had earlier announced that it will launch its first-ever full electric production vehicle, MegaCity in 2013, which is two years earlier than expected. This car would run primarily on electricity stored in a battery and the MegaCity urban electric vehicle will be built of carbon fibre.

BMW has forged a partnership with the composites expert SGL Group to construct a new plant in Moses Lake, Washington. This plant will produce lightweight carbon-fibre materials for auto industry applications. The total cost of the plant is likely to go beyond $100 million.

Carbon fibre weighs less and hence plays a very important role in reducing a car’s total energy consumption. The MegaCity will be built on carbon fibre which would enhance its green sustainability. It will be sold primarily in over-populated cities.

The firm's "Megacity" car "will be an emission-free city vehicle for metropolitan areas around the world," the Munich-based firm said in a statement.

The MegaCity is expected to be a four-seat, three-door hatchback. All MegaCity cars will run solely on electricity stored in a 16-kilowatt-hour lithium-ion battery pack.

BMW has now produced two electric cars so far: the two seat Mini E, which is currently being tested in the US, UK and Europe, and the new Active E Concept which introduced at the last month's Detroit Auto Show.

Meanwhile, Volkswagen, Europe's biggest automaker, is also expected to launch its electric cars in 2013.

Mitsubishi may launch Thai eco-car in India

Mitsubishi Motors, Japan’s fourth largest carmaker, is looking to grab a slice of the 1.2 million per year Indian small car market and is mulling the launch of a compact family hatchback over the next three to four years.

Although the company has been in India for more than a decade, the absence of a compact car has affected its market share. Mitsubishi is present only in the premium sport utility vehicle (SUV) and upper mid-size sedan segment.

According to sources, the company is planning to bring in the new compact car it is developing for the Thai market under the eco car project banner floated by the government there, aimed at attracting investments into the Southeast Asian country.

The Japanese company, which has a technical tie-up with the C K Birla Group-promoted Hindustan Motors, aims to launch the small car in Thailand in the first half of 2012. This car is built on a entirely new platform and sports a 1.3-litre petrol engine.

The company may have to retune this engine and decrease its capacity in India, to take advantage of the excise duty norms laid out by the government. In India, cars lesser than four metres in length and with engine capacity of not more than 1.2 litres in petrol and 1.5 litres in diesel fall under the lowest tax bracket for passenger vehicles.

When asked, company officials declined to comment.

The small car project was indefinitely put on the back burner by the company last year, as scarcity of funds following the economic meltdown forced it to freeze earlier plans, which included the launch of the compact car in 2011-12 in India.

The plans also included infusion of fresh capital to increase the capacity of the Chennai vehicle plant multi-fold to 1,00,000 units from about 12,000 units annually.

It actively pursued plans of having a ‘world car’ from India for which it was looking at many of its existing small car models. Mitsubishi presently sells the Pajero, Outlander, Montero, Lancer and Cedia in the Rs 7.75 lakh to Rs 38 lakh range.

The development of the eco-car is funded by the Board of Investment of Thailand. A total outlay of Baht 8 billion (Rs 1,100 crore) is earmarked for the project. The project also complies with the condition earlier set by the board, which requires a minimum production capacity of 1,00,000 units per annum.

Nissan Motor Company, Japan’s third largest car producer, was the first company to have developed the eco car when it successfully launched the ‘March’ compact car last month. The same car is slated to hit Indian roads in June but will be renamed Micra.

The eco-car project offers car manufacturers significant corporate tax exemptions for at least five years, provided production reaches 1,00,000 units per year within the five years. Besides, car manufacturers are supposed to meet the Euro-IV norms.

New Exotic Detroit 2010: very aggresive styling

One of the eye catching displays over at GM is the Buick Regal GS. The Regal is basically the European Opel/Vauxhall Insignia rebadged as a Buick for the US and Chinese market (Buick is a highly regarded marque in China). This GS showcar features a potent performance package – 255 bhp/400 Nm 2.0-litre Ecotec turbo engine with power going to all wheels via a six-speed manual gearbox and electronic LSD.

Acceleration from nought to 60 mph (96 km/h) is “less than six seconds”. The Vauxhall Insignia VXR, which has a 320 bhp 2.8-litre Ecotec V6 turbo does the same sprint in 5.8 seconds. The Regal GS features a lowered body and aggresive styling that mimics the VXR, except that it wears Buick’s signature “waterfall grille”. The show car wears 20-inch wheels.

That front HiPerStrut suspension helps reduce torque steer and maintain negative camber during cornering, improving grip and feel while isolating undesirable feedback. The GS features Brembo brakes with cross-drilled rotors, four-piston aluminum calipers and uprated pads. Interactive Drive Control System (IDCS) chassis technology allows the selection of three modes – normal, sport and GS – that change suspension settings, throttle response and steering sensitivity.

Inside, the Regal GS features a full black interior, sport shifter, a suede-covered, flat-bottom steering wheel and Recaro seats with four-way lumbar support and cushion extensions.