Tata Motors Q1 net surges, JLR worries remain

MUMBAI, July 27: India's Tata Motors Ltd reported an unexpected surge in first-quarter net profit, helped by a change in accounting policy, but concerns remain over its loss-making Jaguar Land Rover unit and how it will strengthen its balance sheet.

The maker of the Nano, the world's cheapest car, has appointed two consultants to advise Jaguar Land Rover (JLR) on cost cuts, set objectives for breaking even and tapping its cash flow effectively.

"We are going ahead with their proposals and this is going to improve the cost reduction efforts in JLR," Vice Chairman Ravi Kant said.

Monday's results showing net profit surged 58 percent, when analysts had expected it to halve, did not include Jaguar Land Rover operations. Officials declined to provide information on the performance of JLR, saying it would be announced later.

"On a standalone basis the company is doing well. The domestic business is good. But the two concerns are JLR and its ridiculously high debt-to-equity ratio," said Jatin Chawla, auto analyst with India Infoline.

Porsche Panamera set for October debut in India

NEW DELHI, July 27: With its sales falling across European and North American markets, Porsche is looking at new markets in coutries like India and China to support future growth. To this end the German sportscar maker plans to increase its sales in India through Precision Cars India, the official Porsche importer.

The company, according to media reports, plans to sell 50 units of its premium luxury sedan Panamera which will debut in the country in the first week of October '09.

The Panamera is also know as the Gran Turismo and is the first four door sports car from Porsche unveiled at the Shanghai Motor Show 2009. In India the car's top versions with a V8 power unit and luxurious carrying a price tag of Rs 1.4 crore to Rs 2 crore would be imported from the company's plant in Germany, according to experts. Media reports say 13 units of the car have already been booked.

Porsche has only a limited presence in India with two dealerships, one each in Mumbai and Delhi but the company plans to increase these to 11 over the next 2-3 years. It would be opening three more dealerships in Chennai, Hyderabad and Cochin in the near future. However, considering its low sales volumes, the company is not likely to set up assembly units in the near future, limiting its operations to CBU imports.

Despite its limited presence though the company says the demand for its luxury offerings is rising. It is targeting to sell 225 units over the next 12 months including the sales of Panamera.

Even as the global outlook for the luxury car maker's remains uncertain, Porsche sees a growing trend among Indian aficionados who are increasingly taking to buying luxury cars to indulge their taste for the good life.

Crisis at Hyundai worsens; employees continue strike

CHENNAI, July 27: With no reconciliation in sight with a section of technicians who have been on a sit-in strike since a fresh wage agreement was signed with a seven-member workers' committee last week, the management of Hyundai Motor India Ltd. (HMIL) is toying with the idea of declaring a lock-out at the factory near here.

Though the management is hoping that the agitating technicians - numbering around 300 - would come around to accept the fresh wage pact, things have, according to sources, drifted from bad to worse. ``With no reconciliation in sight, the uncertainty continues,'' these sources added.

The sit-in strike indulged in by a section of the employees inside the factory premises, sources said, had hit production at Plant I. Sources said that the management was very concerned about the safety of the working employees.

Also, the management, according to these sources, was deeply worried about ensuring the quality of production. Given these twin apprehensions, the management, sources said, was constrained to look at the closure option unwillingly. When contacted, Rajiv Mitra, Head of Corporate Communication, said, ``It (lock-out) is an extreme possibility. We are, however, very reluctant to do it.''

The technicians have been demanding the recognition of the union and re-instatement of the 75-odd dismissed workmen, among other things. At a press conference on Saturday, H.S. Lheem, Managing Director, expressed the optimism that the striking technicians would come around and accept the wage agreement.

He had also asserted that ``I will never intentionally terminate even one employee.'' There are about 1,625 technicians in HMIL. According to Mr. Lheem, over 50 per cent of the technicians had signed the wage agreement. If the current impasse triggers a lock-out, it could impact 80,000 workmen across the chain. HMIL has a vendor base of 112, comprising 40 Korean units and 72 Indian firms. These vendors sustain 80,000 jobs - either directly or indirectly. HMIL itself provides 10,000 jobs, directly or otherwise.

The Korean giant was the first major automobile multi-national company to set up shop in Chennai. Since Hyundai, many auto and non-auto majors such as Ford, BMW, Saint Gobain and others too had set up production base in the vicinity of Chennai.

The Nissan-Renault joint venture is also coming up near here. Tyre major Michelin too is toying with the idea of setting up a manufacturing unit here.

It is against this backdrop that the ongoing happenings on the industrial relations front at HMIL are watched with more than customary interest from within and outside the country. Tamil Nadu had seen in the past major icons such as Standard Motors and B & C Mills go into the pages of history due to labour intransigence. The unrest at HMIL, MRF and a few other firms has indeed been a major cause for worry for the captains of the industry across the spectrum and foreign investors.

Maruti Suzuki launches new Grand Vitara

NEW DELHI, July 3: The country's largest carmaker Maruti Suzuki India today launched an advanced version of its sports utility vehicle Grand Vitara, pricedat Rs 16.67 lakh-Rs 17.97 lakh (ex-showroom, Delhi).

"Highly popular the world over, the Grand Vitara is one of the global strategic models in Suzuki Range. For all those customers, who are increasingly looking at SUVs, the Grand Vitara 2.4 offers more power and the best in class 4X4 drive at a highly competitive price," Maruti Suzuki India (MSI) Executive Officer (Marketing and Sales) Mayank Pareek said in a statement.

Grand Vitara would come with a 2.4 litre petrol engine in both manual as well as automatic transmission, the company said.

MSI's parent Suzuki has sold over 25 lakh units of Grand Vitara across the worlds since launch, it added.

Fiat brings Grande Punto at Rs 3.99 Lakh

NEW DELHI, June 17: Fiat India rolled out the Grande Punto hatchback on Wednesday with an aggressive Rs 3.99 lakh price tag (ex-showroom Delhi), pitching it against segment leaders Suzuki Swift and i10, while pricing it way below Hyundai i20 and Honda Jazz.

The company will offer the car with three engine options 1200cc petrol, 1400cc petrol and 1300-cc multijet diesel engine. Grande Punto is Fiat's latest offering after the Linea sedan and is expected to drive volumes. Fiat hopes to start with average monthly sale of 2000-2500 units, nearly double to that of Linea.

"We believe that the B Plus segment (premium hatchback) in India has been undertapped and consumers are increasingly looking forward to driving world renowned, international brands," said Fiat India Head Rajeev Kapoor.

Market analysts said Fiat has chosen to opt for an aggressive pricing for the Punto as it is upbeat after the encouraging response to Linea despite the market slowdown. Moreover, economies of scale has also made it possible for the company to price the car cheaper. Fiat is making its cars at a new factory at Ranjangaon in Maharashtra in a JV with Tata Motors and the companies are sharing engines across models, enabling bulk purchases from suppliers that helps them drive better prices for raw materials and spare arts.

Apart from the base 1200cc petrol model that costs Rs 3.99 lakh, the Punto's 1400cc petrol versions cost Rs 4.66 lakh (Dynamic), Rs 5.06 lakh (Emotion) and Rs 5.61 lakh (Emotion Pack). The 1300cc diesel versions cost Rs 4.85 lakh for the base model (Active), Rs 5.16 lakh (Dynamic), Rs 5.56 lakh (Emotion) and Rs 6.11 lakh for the Emotion Pack model (all ex-showroom Delhi). Safety features like ABS and airbags are offered in the top-end variants while air-conditioning and power steering are standard.

The Swift, that comes with a 1300cc petrol engine and 1300cc diesel engine (interestingly made on licencing from Fiat), has a price range between Rs 3.99-5.15 lakh on petrol and Rs 4.67-5.19 lakh on diesel model. And while the Jazz costs Rs 6.98 lakh, Hyundai's i20 costs between Rs 4.8-5.8 lakh (only petrol) and Skoda's Fabia Rs 4.9 lakh on petrol and Rs 5.8 lakh on diesel.

Honda’s plant on full steam

HYDERABAD, June 17: Honda Siel Cars India on Wednesday refuted the media reports that the company has put the operations of its new assembly plant at Tapukara in Rajasthan on hold.

"This report is completely untrue. The plant’s phase I operation is complete. We are still producing engine components from the Tapukara plant and bringing them to Greater Noida plant for assembling," a spokesperson said.

She, however, said assembling operations at the plant have been postponed.

Honda unveils BS-IV premium hatchback Jazz in India

NEW DELHI, June 10: Honda Siel on Wednesday launched its much-awaited premium hatchback Jazz in India. Priced between Rs 6.98 lakh and Rs 7.33 lakh(ex-showroom, Delhi), the nation’s most expensive ‘super-mini’ will be available in six colours and three types in manual transmission – Jazz, Jazz Mode and Jazz Active.

Speaking on the occasion, Masahiro Takedagawa, president and CEO, Honda Siel Cars India Ltd, said, “The Honda Jazz is a segment-defining car and is loaded with all the values that are associated with Honda. The Jazz will cater to a unique group of people who want the latest and most stylish models with the best of technology, safety and practicality in their car.”

The journey of the first generation Jazz, in fact, started in 2001 with its debut launch in Japan. The car, which is now being sold in more than 130 countries across the globe, has hit the Indian roads in its second generation avatar.

In its new avatar, the Jazz comes with a 1.2-litre i-VTEC engine which, the company claims, has been specially developed for the Indian market. The four-cylinder engine features programmed fuel injection that delivers maximum output of 90 PS (66 kW) @ 6,200 rpm and torque of 110 Nm (11.2 kg-m) @ 4800 rpm while giving fuel economy of 16.1 km/l, as per ARAI test data. The new engine is also E10 compatible and has Euro IV emission levels.

Jazz is available in 5-speed manual transmission with gear ratios optimized for a sporty driving experience, while ensuring fuel economy. According to the company, the drive by wire throttle control system enables precise control of the vehicle while driving.

The Jazz chassis realizes both superior ride comfort and agile handling. The car features a McPherson strut suspension in the front. The H-shaped torsion beam rear suspension achieves the maximum possible space for the rear seats and cargo area as well as steady ride comfort and agile handling.

Lexus RX 4x4, Toyota Prius, Honda Jazz top JD Power Survey

LONDON, June 8: The Lexus RX 4x4, Toyota Prius and Honda Jazz have received top marks in a car customer satisfaction table by J D Power and the UK-based What Car? magazine.

The Lexus RX 4x4 received the highest score in the table, while the low-emission hybrid Toyota Prius came second in the table based on views of 15,700 car owners.

The Honda Jazz, which Honda is pinning much of its hopes on to revive car sales, was third, with the Lexus IS fourth and the Mercedes-Benz CLK fifth.

Of the 101 cars in the table, the least satisfactory was the Fiat Punto, with the Peugeot 206 in 100th place and the Ford Galaxy 99th.

Fiat was considered the least satisfactory of the manufacturers in a table topped by Lexus, with Honda second and Mercedes-Benz third with Skoda and Toyota fourth equal.

The Toyota Prius was also considered best upper medium car, with the Toyota Aygo the best city car.

Also receiving segment-level awards were the Honda Jazz (small car), Skoda Octavia (lower medium car), Audi A6 (executive/luxury car), Mercedes-Benz CLK-Class (sports car), Citroen Grand C4 Picasso (multi purpose vehicle) and Lexus RX (SUV).

Mitsubishi Outlander- 1st BS IV Certified Premium SUV

NEW DELHI, June 5: Automobile Research Association of India (ARAI) has certified that HM-Mitsubishi Motors’ ‘Outlander’ has surpassed the BS IV (Bharath Stage Four) emission norms with BS III (Bharath Stage Three) fuel.

The certificate - “AAEN0339” was awarded to Mitsubishi Outlander on 30th May ’09.’Outlander’ becomes the first premium SUV (Sports Utility Vehicle) in India to be awarded so by ARAI.

BS IV emission norms are stringent rules which the government of India is implementing to reduce the harmful effect of automobile emission on the environment.

BS IV will be effective on all new automobiles sold in India from April 2010 in the eleven cities of Delhi, Mumbai, Chennai, Kolkata, Bangalore, Hyderabad, Ahmedabad, Kanpur, Agra, Pune and Surat.

Mitsubishi Outlander’s MIVEC (Mitsubishi Innovative Valve lift and timing Electronic Control) technology limits the vehicular emissions well within BS IV standards even with BS III fuel, making Outlander the most environment friendly SUV in the country today.

Speaking on the development, Mr Ravi Santhanam, Managing Director, Hindustan Motors Ltd said, “HM- Mitsubishi is pleased to offer the eco friendly Outlander to its customers. Outlander being certified the first BS 1V compliant SUV in India is a testimony to its superior technology and HM – Mitsubishi Motors’ commitment to the environment” Outlander is sold in India at Rs. 20.75 lakhs ex showroom and is available as a petrol variant. The vehicle is sold pan India through 39 showrooms. Outlander was launched in India in October 2008.

Mahindra posts 43 pc increase in tractors sales in May

NEW DELHI, June 5: Mahindra & Mahindra’s Farm Equipment Sector (FES), a part of the U.S. $6.3 billion Mahindra Group, has reported a 42.56 per cent rise in its total tractor sales in May at 13,500 units compared with 9,470 units in the same month last year.

“We have registered very encouraging sales figures for the month of May 2009. Our domestic sales registered a 46 per cent increase at 12870 units as compared to 8825 units for the same period last year,” said Mr. Anjanikumar Choudhari, President, Farm Equipment Sector, Mahindra & Mahindra Ltd.

Total sales (domestic + exports) for the month of May 2009 registered a 43 per cent increase at 13500 units, as compared to 9470 units for the same period last year. The company’s YTD sales (Domestic + Exports) registered a 39 per cent increase at 25140 units in May 2009, as against 18115 units for the same period last year.

Exports, however, fell by 2.33 per cent to 630 units from 645 units in the corresponding period last year.

The company said that as a consequence its merger with Punjab Tractors Ltd (PTL), effective from August 1, 2008, for the Month of May 2009, 3848 units and cumulative May 2009 sales includes 7203 units of Swaraj division (erstwhile M/s Punjab Tractors LTD.)

Mahindra sales slip 14 percent, Exports down 79 pc

By Deepak Arora

NEW DELHI, June 1: Auto major Mahindra and Mahindra sold 16,581 vehicles (including three wheelers) in the domestic market last month, 14.1 percent down from 19,296 units it sold in May 2008.

The exports during the period were down almost 79 per cent at 285 units as against 1,357 vehicles exported in May 2008.

The sale of Mahindra's core utility vehicles declined almost 3.3 per cent to 12,620 units last month from 13,048 vehicles in the corresponding month last year. It sold 2,703 three wheelers against 3,708 units in may 2008.

It sold 427 Logans and 831 LCVs against 1,531 Logans and 1,009 LCVs a year ago.

Its total sales including exports stood at 16,866 vehicles in May 2009 against 20,653 vehicles in May 2008.

'In spite of the recent shutdown of our Nashik plant, we clocked very impressive sales numbers of 16,581 units in May 2009, reflecting a very positive and healthy demand for our products,' Mahindra chief of operations (automotive sector) Rajesh Jejurikar said in a statement

'We do not expect the strike to have any impact on our annual plans,' he added.

Factory workers at Mahindra's Nashik plant had gone on a two-week-long strike last month, protesting against the suspension of a union leader.

Jejurikar said the loss of production on account of the strike would be made up by cancelling the planned closure next week for maintenance.

Maruti, Hero Honda ride rural sales to double-digit growth

NEW DELHI, June 1: Galloping sales in rural India allowed largest car maker Maruti Suzuki and largest two wheeler maker Hero Honda to record highdouble-digit growth year-on-year in May, while other players coped with tough market conditions.

Sales by Maruti Suzuki India (MSI) increased 10 per cent to 70,785 cars and Hero Honda’s sales jumped 23 per cent to 3.82 lakh units in May 2009 on the back of increased demand from rural India. Both market leaders have started initiatives for this market to boost sales.

"Our share of rural sales has reached double digits. It has gone up to 10% of the total sales from 3.5% two years ago. This market is buoyant, and now, even urban markets are showing increased demand and higher off-take in sales," MSI executive officer (sales and marketing) Mayank Pareek said.

Hero Honda also plans to increase its activities in small markets. "Going forward, we will continue our effort to reach out to customers spread across the semi-urban and upcountry markets," Hero Honda senior vice- president (marketing & sales) Anil Dua, said. The company would increase its network to 4,000 shops by 2009 end from existing 3,500.

But, other car makers saw subdued sales in May. Sales by Korean car maker Hyundai dropped 4% to 23,503 units, though higher exports in May pushed up cumulative growth to 8.36% to 43,628 units.

Tata Motors' sales dropped 22% to 15,388 vehicles.

General Motors, which declared bankruptcy for its North American and Canadian operations on Monday and operates through a wholly-owned subsidiary in India, reported a 7% drop in sales to 5,109 cars in May.

Utility vehicle maker Mahindra & Mahindra sales fell 14% to 13,047 units in May with Logan sedan sales dropping almost half to 427 cars in May compared with 977 cars sold in the same month last year.

Analysts tracking the auto industry said companies with large exposure to semi-urban and rural markets have benefited with high sales on the back of robust agricultural produce this year.

"Entry into this new market is propelling high growth for big players with regular growth in sales. Even niche-players, like BMW, are entering smaller cities and markets to generate incremental sales. With a normal monsoon expected this year, we are looking at robust performance by some companies," said an auto analyst with Morgan Stanley.

Honda Siel Cars improved its sales tally marginally by 3.3% to 4,073 in May even as it gears up to launch its new hatchback Jazz in the next few days. Honda's VP (marketing) Jnaneswar Sen said: "We are expecting sales to pick up in next coming months." Two wheeler companies posted positive sales. TVS Motors increased its sales by 5% to 118,574 units in May over the same month last year while Yamaha Motor's sales jumped 82% to 16,952 units during the same period.

GM drives into bankruptcy

DETROIT/WASHINGTON, June 1: General Motors Corp. filed for bankruptcy on Monday, forcing the 100-year-old automaker once seen as a symbol of American economic might and dynamism into a new and uncertain era of government ownership.

The bankruptcy filing is the third-largest in the US history and the largest ever in the US manufacturing.

The decision to push GM into a fast-track bankruptcy and provide $30 billion of additional taxpayer funds to restructure the automaker, is a huge gamble for the Obama administration.

But in a sign of progress in the government’s high-stakes effort, a bankruptcy judge approved the sale of substantially all of the US automaker Chrysler’s assets to a group led by Italy’s Fiat SpA in an opinion filed late on Sunday.

Chrysler’s bankruptcy, also financed by the US treasury, has been widely seen as a test run for the much bigger and more complex reorganisation of GM.

The President, Mr Barack Obama hailed the decision, saying it "paves the way for the new Chrysler to successfully emerge from bankruptcy as a new, stronger, more competitive company for the future".

The administration’s ambitious plan for GM is for a quick sale process that would allow a much smaller company to emerge from court protection in as little as 60 to 90 days.

"Now the hard part begins, which is making GM and Chrysler competitive. If they don’t do that, then we’ll be doing this all over again in a few years," said Mr Christopher Richter, an auto analyst at CLSA Asia-Pacific Markets in Tokyo.

"The immediate implication is that the companies are going to get smaller and so market share is up for grabs, which means that rivals like Toyota, Honda, Nissan and Hyundai are going to gain share."

Since the start of the year, GM has been kept alive with the US government funding as a White House-appointed task force vetted plans for a sweeping reorganisation that will be undertaken with $50 billion in federal financing.

In a widely anticipated move, Dow Jones industrial average has removed both General Motors Corp and Citigroup Inc from its index.

Cisco Systems Inc will replace GM and Travelers Co, a large home, auto and commercial insurer, will replace Citi.

Nashik strike hits Mahindra Scorpio deliveries

By Deepak Arora

NEW DELHI, May 26: Despite denials, the strike at the Mahindra & Mahindra’s Nashik plant in Western India has affected the supply of utility vehicles Scorpio, Xylo and Bolero and Logan in the country. A random call at Delhi and NCR showrooms revealed that the customers have been unable to get immediate delivery of the Scorpio.

The strike at the M&M’s Nashik plant started on May 4 in protest against disciplinary action against a union leader and ended on May 18. The plant, which has a production capacity of 150,000 vehicles annually, produces its flagship Scorpio utility vehicle and the Renault Logan sedan car.

The auto major has reportedly lost the production of over 6,000 units estimated at Rs 350 crore during the strike. M&M had claimed it has enough stock in the pipeline and hence retails to the customers will not be affected.

The strike ended after the company entered into a long term wage settlement with the Bhartiya Kamgar Sena Union (BKS) which represents the workmen at Mahindra's Igatpuri plant near Nashik in Maharashtra.

Mr. Suryakant Mahadik, President, BKS, Mr. Albert Pinto, General Secretary, BKS, Mr. Prakash Naik, Secretary, BKS Mr. Rajendra Kadam, Unit President, BKS and Mr. Razzak Shaikh, Unit General Secretary, BKS signed the agreement on the behalf of the workmen while Mr.Vijay Dhongde, Senior Vice-President, Manufacturing Operations, Mr. S.K. Kulakarni, Senior GM, P&IR, Mr.K.G. Shenoy Senior GM- Manufacturing Operations and Mr. Krishna S. Gawade (DGM – HR & IR), represented the Management of Automotive Sector of Mahindra & Mahindra Ltd. The agreement will be valid for a period of three years.

The company outsources components for these four vehicles from 350 vendors across the country. Of which, around 100 vendors are in Maharashtra, including 60 in Nashik district.

Productions of these 350 vendors had been affected by 20 per cent to 100 per cent due to the intense labour strike. Daily supply of components to Mahindra’s Nashik plant (by its vendors) is estimated at around Rs. 22 crore. The total production losses to these vendors had been reportedly estimated at around Rs. 300 crore, according to sources.

The vendors, which have been badly affected, include Lear Automotive India Pvt Ltd, JBM Auto, Mungi Brothers, Sharda Motors, Supreme Auto Shell, Alf Engineering, Mahindra Ugine Steel Co Ltd and Mahindra Group’s Igatpuri engine plant.

"Production at Nashik plant of Lear Automotive India Pvt Ltd, which supplies 500 seats daily to M&M, has been affected 100 per cent. The company has stopped production at its Nashik plant from May 6, causing the total production loss of Rs. 9.60 crore (Rs. 80 lakh per day loss) during the strike period. Lear has 277 employees at its Nashik plant, including 150 contract workers.

M&M outsource engines from its Igatpuri-based (in Nashik district) engine plant for utility vehicles Scorpio, Xylo and Bolero. The Igatpuri plant has reduced production by 425 engines a day due to labour strike in Mahindra’s Nashik plant.

Around 80 per cent production in Nashik plant of Mahindra Ugine Steel Company Ltd (MUSCO), which is engaged in the manufacturing of steel products, including tools, alloys, special steel and pressed sheet metal components, have been affected.

The production at Nashik plant of JBM Auto, which manufactures sheet metals for Mahindra’s utility vehicles, has been affected by 100 per cent. The company has reportedly stopped manufacturing at its Nashik plant.

Mahindra’s Nashik facility manufactures 486 utility vehicles daily- 240 utility vehicles, ‘Scorpio’ & ‘Xylo’ on the same assembly line, 180 Bolero utility vehicles and 66 sedan car ‘Logan’. The Nashik plant has 4450 employees, including 2750 permanent employees, 1200 temporary employees and 500 apprentices.

Toyota's new Prius a Hybrid hotshot

TOKYO, May 19: Toyota is confident that sales of the new-generation Prius will run between 300,000 to 400,000 between now and the end of the year, according to Toyota Prius Chief Engineer Akihiko Otsuka. Not bad for what was once dismissed as a niche product. The success of the Prius is a source of pride for Otsuka, a keen angler who heard he had been assigned to work on the current generation of the hybrid while fishing by a river in Kanazawa in western Japan.

He's even more upbeat about the future. Toyota plans to increase battery production for hybrids this year, from 500,000 to 800,000, and to more than 1 million by the early 2010s, in line with Toyota's aim to sell a million hybrids a year by the early part of the next decade. "Battery supply is the key here and we're raising our ability to supply batteries," he says. Without that kind of capacity, it's very difficult for other carmakers to close the gap.

Otsuka has other reasons to be happy about the new Prius. Around the world, the past few weeks have been good ones for automakers making green cars. Although sales slowed in 2008, gas-electric fuel sippers look like one of the global auto industry's few bright spots in 2009. In the U.S. and other countries, governments are talking up hybrids and offering incentives for greener cars.

On May 19, President Barack Obama called for new rules that require passenger vehicles and light trucks in the U.S. to average 35.5 miles per gallon by 2016. Regulatory changes in Europe, especially tougher rules on nitrogen oxide emissions, should help, too. The latter, he says, would give hybrids an edge over diesels, which currently account for over half of car sales in some European countries.

Meanwhile, back in Japan, the latest version of the Prius and the Honda Insight are the hottest tickets in town. The Insight, which debuted in February, was the best-selling car in Japan (excluding 660cc minicars) in April, the first time a hybrid had topped the rankings. The new Prius, launched on May 18, attracted 80,000 orders before its release, a record. The previous record holder was a Toyota subcompact, which had an order book of 47,000 before its release in 2002.

With such good numbers, might Toyota's mothballed Blue Water (Mississippi) plant start making cars soon? The factory, initially slated to make SUVs, was supposed to begin production of the new Prius next year, but with recession in the U.S., Japan, and other markets battering Toyota's earnings, the Japanese automaker has put those plans on hold.

Otsuka says Toyota will likely eventually make the Prius in Mississippi, but if U.S. car sales don't pick up, production might not start until Toyota readies the next generation of the car. The second-generation Prius, which is about to be replaced, has been in production since late 2003, so that could be quite a wait. Unless U.S. sales rise, "it doesn't make sense to build another model in the Mississippi plant," he says.

Otsuka was equally cautious on the prospects for plug-in hybrids and, particularly, electric vehicles. Toyota will lease 500 plug-in versions of the new Prius, but the cost of the lithium ion batteries—three to four times the price of the nickel metal cells used in the regular hybrids—is a headache. Until the cost comes down, the economics of plug-ins or EVs (electric-drive cars) look challenging. "I don't think EVs can replace hybrids in the near future," Otsuka says. "We have to think about the balance between the EV driving range, the size, and the cost."

In addition to the Prius, upcoming gas-electric vehicles will include a Yaris-sized car that will likely go head-to-head against a hybrid version of the Honda Fit. Otsuka disputes suggestions that Toyota's more complicated hybrid system means it is less well-suited to a smaller car. While Toyota's system uses two motors, compared with just one used in Honda's (HMC) mild hybrid system, he says Toyota's doesn't need a continuously variable transmission. That, he says, means that Toyota, despite needing larger batteries, can make its hybrid system cheaply enough to use even in smaller cars.

As for the Prius itself, Otsuka is already thinking of what the next version will look like. The fourth-generation Prius, he hopes, will be smaller and lighter than the new version but, perhaps taking advantage of space-saving technologies employed in the tiny Toyota iQ, will be of similar proportions on the inside. "I think the size and weight should become smaller to help reach a new fuel economy target," he says.

Maruti mulls micro-hybrid tech

NEW DELHI, May 19: Full-blown hybrid vehicles may still be a distance from the Indian market, but miniature versions based on start-stop technology which save 8 to 10 per cent fuel in city driving conditions, may well flood the market soon.

Maruti Suzuki India Ltd (MSIL) is studying the possibility of introducing the micro-hybrid technology on all of its existing models.

Maruti is in early stages of talks with Bosch India, who have the patent for the technology. "Out and out hybrid technology is cost-prohibitive and its introduction will take a long time — maybe 15 years or more," said IV Rao, managing executive officer (engineering and R&D), MSIL.

"For the time being we are studying the start stop technology and looking at whether we can use it in our existing products” he added.

Bosch says almost every vehicle manufacturer in the country has evinced interest in the technology, and estimates an 80 per cent market penetration in the country by 2014 — the same as in Europe. A feather in the Bosch cap would be the Tata Nano, which is slated to sport a micro-hybrid avataar by early 2011.

"The start-stop eco-technology has been developed by us keeping in mind the Indian conditions and given the evolution of hybrid technology worldwide it remains the perfect model for India in the near future," said Matthiks Wunderlich, regional president, start up motors and generators division, Bosch India.

Japanese auto major Honda Siel Cars India launched the first hybird car — Civic hybrid — in the country late last year. Tata Motors is readying an electric Indica for a commercial launch later this year.

The FuelSmart system automatically detects moments, during the drive, when the vehicle is idle and stops the engine. The system is based on the principle of not burning fuel when it is not required.

Maruti Suzuki's Ritz is first BS-IV car in India

NEW DELHI, May 15: India’s number one carmaker Marti Suzuki has launched its Ritz car in India for Rs 3.90 lakh. The car has generated lost of interests as it is one of the high quality cars that the company has launched in India.

Maruti’s new hatchback Ritz has a contemporary European design and is positioned above premium A2 market segment, which includes Alto, WagonR, Swift, Zen and the newly launched A-Star.

Ritz will be the first BS-IV compliant car in India and will come in both petrol and diesel variants. The launch of new hatchback passenger car will further strengthen Maruti's leadership in the highly competitive compact car segment. With 52 percent market share, Maruti Suzuki leads the premium A2 segment. The new car has been designed keeping in mind the comfort factor of the passengers. Ritz features a comfortable rare seat that can accommodate 3 passengers at a time.

The company has kept the suspension of the vehicle with a ground clearance of 170 mm, which enables comfortable driving on Indian roads. The new Maruti car will be available in two different engine options. The first version comes with a brand new K-series of 1.2 litre, four-cylinder, 85PS petrol engine and second version has a 1.3 litre, 16-valve, 75PS diesel engine. Ritz is the eight new model coming out from Maruti's stable in 48 months. Previously the company has launched Swift, Zen Estilo, SX4, Swift Diesel, Grand Vitara, Swift Dzire and A-star.

The company some times ago had unveiled the all-new K12M engine Ritz in its Gurgaon plant. K12M engine is BS-IV compliant and this is the first time that a BS-IV compliant engine will power any passenger car in the country.

Ritz is fitted with this all new four cylinder, 1197cc all aluminum engine, which will produce 85 BHP at 6000 RPM and 113 NM of Torque at 4500 RPM. The is relatively higher on the revs due to its shorter strokes of 71.5mm as compared to its bore which is 73mm and hence the power-band is peaky at 6000 RPM.

The engine runs on a Semi Synthetic engine oil providing improved changeover time from 1,000 km to 10,000 km. Another added technological advancement is the use of the timing chain instead of the conventional belt design which hinders performance and durability of the engine.

“The K12M engine is another example of Maruti Suzuki’s commitment to take engine technology in India to the next level. The K12M engine further strengthens Maruti Suzuki’s efforts for fuel efficient, green engine technology for Indian customers,” said Shinzo Nakanishi, Managing Director and Chief Executive of Maruti Suzuki.

The engine promises to be best in class fuel efficient, high performance, low emission, light weight, with lower NVH (Noise, Vibration & Harshness). The skirt area of the piston has been shortened to make the aluminum engine lighter, whereas the resin-coated piston helps reduce friction and increase fuel efficiency.

Honda to bring products with India-specific engines

NEW DELHI, May 10: Japanese car giant Honda will explore possibilities to bring in products powered by India-specific engines like it has planned with the small car -- Jazz, which will be launched in the country in June.

"The Jazz, which will be launched in India this June, has an engine, which has been specially developed for India keeping in mind the conditions here," according to Honda Siel Cars India Vice President Marketing Jnaneswar Sen.

The Japanese firm, which is present in India through a joint venture with the Siel Group, has already launched the Jazz in the UK with the same India-specific 1.2 litre petrol engine, generating 90 PS power, he added.

Asked if the company would develop more products specially meant for the Indian market, Sen said: "As and when the opportunity arises, we cannot rule out such a possibility. All our products are introduced after detailed study."

He, however, said currently there were no plans to introduce more India-specific products apart from the Jazz.

Sen said as per Automotive Research Association of India (ARAI) certification, the Jazz would give a mileage of 16.1 km per litre under standard testing conditions.

The new small car would be positioned as a premium hatchback as Honda looks to strengthen its presence in the Indian market. The company currently sells premium sedans -- City, Civic and Accord, alongwith sports utility vehicle CR-V.

ŠkodaAuto is set to launch small car for Rs 3 lakh in India

NEW DELHI, March 29: ŠkodaAuto is set to launch a small car for Rs 3 lakh in India. Aimed at India’s lower middle class families who cannot afford its hatchback Skoda Fabia, the car will be better than many other products available in India for similar prices.

Skoda Fabia is a big hit in India and the company believes that it cannot achieve economy of scale without tapping this large and fast growing segment.

ŠkodaIndia, a fully owned subsidiary of ŠkodaAuto a.s., Czech Republic (Volkswagen Group), one of the fastest growing car manufacturers in Europe achieved record sales of 16188 units in the year 2008. With this figure ŠkodaIndia registered 28.5 per cent growth in sales as compared to 12596 units sold in 2007.

The Super Hatch ŠkodaFabia proved to be the hottest selling hatch in India with sales figure of 6634 units since its launch in January ’08. The sales figure shows the success Škoda has achieved so far with the car.

With the planned launch of its small car two years from now the company wants to give a big boost to its prospects in the Indian market.

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