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| INDUSTRY Nano, one man's gain and anothers loss 1,000 Nanos may roll out from Pantnagar by April-end Tata Motors small car makes it big on Web Nano to ride on innovative marketing Nano may fetch resale premium of Rs 30,000 Now, permanent Nano facility at Pantnagar Nano launch: Auto industry on verge of new dawn Sanand people amused by Nano launch Nano buyers have to pay entire price on booking A difficult birth for Tatas Nano Nano tanks up for road test challenge Nano launch: Auto industry on verge of new dawn-break A turning point for the car industry Softening raw material prices smooth the ride The Great Indian engineering feat From Singur to Sanand, an arduous drive Long before Tata Motors, there was Sipanis Dolphin In 1990s, high duties crashed Kinetics Rs1 lakh car plans INTERVIEWS/FEATURES CARS, SUVs, MUVs Fiat watching it with interest CONSTRUCTION & AGRI MACHINERY | ALLIED INDUSTRIES Dunlop workers opt for conciliation Steel price fall to lift Nano's margins Essar steel sets up processing facility in Chennai's auto-belt Feb steel consumption up 6% after 5-months decline FINANCE & INSURANCE Canara Bank ties up with automakers LUBRICANTS & ALTERNATIVE FUELS INTERNATIONAL NEWS Daimler to sell near $2.7B in shares to Abu Dhabi Nissan planning luxury hybrid in 2010: Report In credit drought, US car dealers battle to survive Germany not aiming to take Opel stake: Merkel Renault move revives EU's fears of protectionism China wants to restructure auto industry ECONOMY & FINANCE
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| INDUSTRY Go To Top Pankaj Doval See similar story in: The Times of India (Web Edition) (Mar 22)
http://economictimes.indiatimes.com/articleshow/4299012.cms NANO, ONE MAN'S GAIN AND ANOTHERS LOSS Agencies See this story in: The Economic Times (Web & Print Edition) (Mar 22)
1,000 NANOS MAY ROLL OUT FROM PANTNAGAR BY APRIL-END The Hindu Business Line (Web & Print Edition) (Mar 22)
Nearly 1000 Nanos may roll out of the Pantnagar factory of Tata Motors by the end of April, a top official of a component manufacturing company said on condition of anonymity. Tata Motors, according to him, is currently assembling nearly 40 cars a day at Pantnagar. The assembling is being done in a makeshift arrangement at the mini-truck making unit. The assembling rate would be ramped up to 100 cars a day from April, he said adding that production at the proposed factory at Sanand in Gujatrat would begin by the end of 2009. Construction at Sanand is proceeding very fast and the shades in the factory have been completed in just three months, he said. http://www.blonnet.com/2009/03/22/stories/2009032251210200.htm TATA MOTORS SMALL CAR MAKES IT BIG ON WEB Nanda Kasabe, Geeta Nair The Financial Express (Web & Print Edition) (Mar 22)
While Ratan Tatas Peoples Car is breaking new ground in the brick and mortar world, it could also be navigating new frontiers in the virtual world. The company too is pushing Nano on the Web. There is an Orkut community and a Facebook profile, a Tata Nano Forum and company administered blogs. Senior Tata Motor officials have been interacting with potential buyers and Nano fans in their attempt to catch the pulse of customers and car lovers. Social networking is a new tool that Tata Motors has put to use for selling Nano. The Nano campaign, few hours before its release, has been intensified through its extension to networking sites such as Facebook and Orkut, making the worlds cheapest car known to a larger mass. The official Tata Nano Orkut Community has 51,300 members and Orkut on its own has 378 communities. On Facebook there are 44 groups that keep discussing Nano. The official Tata Nano Facebook profile says good, bad and ugly, all comments are welcome. The Tata Motors Forum has 22,763 users who have till now covered 31 subjects related to Nano. Interestingly, several Nano fans have responded from across the globe and were keen to see the car in their countryfrom Australia to Serbiabut the company has responded saying there were no immediate plans for exports. On its own website, Tatas marketers also discuss sales strategies. There have been several queries for online buying and the company has responded stating that this would be difficult at this stage. Buyers have expressed their desire to buy the car on-line and are even willing to transfer funds pronto. Instead, the company has offered options ranging from contests to building your own Nano on the Web. http://www.financialexpress.com/news/Tata-Motors-small-car-makes-it-big-on-Web/437407/ NANO TO RIDE ON INNOVATIVE MARKETING Nandini Sen (Mar 23) New Delhi: The Tata Nano will ride on a clutch of innovative marketing ideas when it rolls into showrooms across the country. The Rs 1 Lakh car, which broke new ground in design, engineering and production processes, will opt for cost-effective and innovative use of media, say people with knowledge of the Nano marketing strategy. The Nanos overall marketing strategy will use conventional media in an unconventional manner. Unlike most small cars, Nano wont be big on advertising. There will be no TV campaign, only innovative use of print, radio and other media, particularly the web. The Tata team is working on Nano news in papers, Nano breaks on radio, Nano appearing in the form of messages or ticker news on TV, online Nano games, Nano chatrooms on the Net, Nano pop-ups on major websites and Nano conversation on Facebook, Orkut and blogspaces. PTI See this story in: The Hindu Business Line (Web Edition), The Times of India (Web Edition), The Statesman (Web Edition), The Hindu (Web & Print Edition), Hindustan Times (Web & Print Edition) (Mar 23) New Delhi: History will be created in Mumbai tomorrow when Tata Motors launches the world's least expensive car, Nano a car that can redefine personal transportation in modern India. Described as "People's Car" by Tata Group chairman Ratan Tata, Nano's commercial launch will mark a milestone in a journey, which was replete with controversies, hurdles and criticism from competitors. As far as customers are concerned, they can expect to own a car coming at a price between Rs 1.20 lakh and Rs 1.30 lakh, depending on the version of Nano, although bookings will start only in April second week. According to dealer sources, if the company keeps the ex-factory price at Rs 1 lakh, as promised by Tata, then the base model could easily have an on-road price of Rs 1.20 lakh after adding taxes such as excise duty, education cess and road tax, along with transportation cost, local taxes, insurance and registration fees and a lifetime parking fees (wherever applicable). Last month, Tata Motors had appointed public sector lender State Bank of India as the sole booking agent for the world's least expensive car from the stable of Tatas. The booking amount is reportedly fixed at Rs 70,000. Till the time the Sanand facility in Gujarat is ready by 2010, Nano will be produced from Tata Motors' factories at Pantnagar in Uttarakhand and Pune in Maharashtra in limited numbers. After the launch in Mumbai, Nano would be displayed at the company's dealerships from the first week of April, while the bookings would start from the following week. The booking process and other details of the Rs 1 lakh car would be announced on the day of launch. http://www.thehindubusinessline.com/blnus/01221306.htm http://timesofindia.indiatimes.com/articleshow/4299712.cms http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=247919 http://www.hindu.com/2009/03/23/stories/2009032357840100.htm http://www.hindustantimes.com/StoryPage/StoryPage.aspx?section http://specials.rediff.com/money/2009/mar/19video-tata-motors-all-set-to-roll-out-nano.htm NANO MAY FETCH RESALE PREMIUM OF RS 30,000 Business Standard (Web & Print Edition) (Mar 23) Surajeet Das Gupta & Swaraj Baggonkar / New Delhi/mumbai March 23, 2009, 0:07 IST Tata Motors dealers say the company would have to supply between 250,000 and 500,000 cars to meet initial demand, assuming 0.5 to 1 per cent of the over 50 million people who sent enquiries to the various official websites book the car. Supply, they said, would be between 40,000 and 50,000 cars, with 100,000 being the most optimistic estimate. This would mean customers may have to wait for up to two years to get delivery of the car if all the bookings are accepted. The premium on the Nano is limited by the fact that there are cheap small cars available like the Maruti 800, which has an ex-showroom price of around Rs 1.9 lakh in Mumbai and about Rs 2.15 lakh on the road. In comparison, the on-road price of the Nano would be Rs 1.2 lakh. The initial demand-supply mismatch is principally because the Gujarat mother plant, which is expected to come on steam by October, has an initial annual capacity of 250,000 cars, rising to 500,000 later. The plant is already delayed, having been relocated to Gujarat following political problems with land acquisition in West Bengal, where it was initially to be located. Till the Gujarat plant goes on steam, the car will be assembled at other Tata Motors locations in Pune and Pantnagar (Uttarakhand). The scene will be a bit like the Maruti 800 days. Those who are lucky enough to be allotted cars this year can resell it immediately at a premium of Rs 30,000 due to the anticipated shortage, an executive of a Delhi-based Tata Motors dealer said. Tata Motors is not ready to discuss details, but dealers said customers would have to pay 70 per cent of the showroom price of the car (over Rs 70,000 for the entry- level model ) upfront as the booking fee, which would be fully financed by the State Bank of India (SBI) with which Tata Motors has tied up. Customers have to book the car in any of the SBI-stipulated banks and fill the booking documents. Dealers will only deliver the car and have no role to play in raising finance for buyers. The winners will be chosen though a random computer-generated sample. Although the cars will arrive at the dealers registered in the name of the buyer, there is nothing to stop customers re-selling it. http://www.business-standard.com/india/news/nano-may-fetch-resale-premiumrs-30000/352628/ NOW, PERMANENT NANO FACILITY AT PANTNAGAR Shishir Prashant Business Standard (Web Edition) (Mar 23) Dehra Dun: A day before the launch of the Nano, the Uttarakhand government said Tata Motors had agreed to set up a permanent satellite plant at its Pantnagar facility for producing the small car. Tata Motors has given us a commitment that it will set up a permanent satellite facility at Pantnagar for producing Nanos, Chief Secretary Indu Kumar Pande told Business Standard. From the Pantnagar industrial unit, from where the company would launch its first car, Tata Motors is planning to produce a total of 50,000 units per year, Pande said. Tata Motors was given over 1,000 acres at Pantnagar by the state government for setting up its manufacturing facility. Besides, the auto major has also agreed to distribute all its Nano cars from Pantnagar through its new subsidiary, Tata Motors Distribution Co Ltd. http://www.business-standard.com/india/news/now-permanent-nano-facility-at-pantnagar/352630/ NANO LAUNCH: AUTO INDUSTRY ON VERGE OF NEW DAWN PTI See this story in: Business Standard (Web Edition) (Mar 23) New Delhi: History will be created in Mumbai tomorrow when Tata Motors launches the world's least expensive car, Nano -- a car that can redefine personal transportation in modern India. Described as "People's Car" by Tata Group Chairman Ratan Tata, Nano's commercial launch will mark a milestone in a journey, which was replete with controversies, hurdles and criticism from competitors. As far as customers are concerned, they can expect to own a car coming at a price between Rs 1.20 lakh and Rs 1.30 lakh, depending on the version of Nano, although bookings will start only in April second week. According to dealer sources, if the company keeps the ex-factory price at Rs 1 lakh, as promised by Tata, then the base model could easily have an on-road price of Rs 1.20 lakh after adding taxes such as excise duty, education cess and road tax, along with transportation cost, local taxes, insurance and registration fees and a lifetime parking fees (wherever applicable). Last month, Tata Motors had appointed public sector lender State Bank of India as the sole booking agent for the world's least expensive car from the stable of Tatas. The booking amount is reportedly fixed at Rs 70,000. http://www.business-standard.com/india/news/nano-launch-auto-industryvergenew-dawn/57101/on SANAND PEOPLE AMUSED BY NANO LAUNCH Agencies See this story in: The Financial Express (Web & Print Edition), The Indian Express (Web Edition) (Mar 23) Ahmedabad: People of Sanand and neighbouring villages want employment and work in the Nano project which is being implemented on Sanand-Viramgam Highway, after the Tata group decided to shift it from Singur, 30 km from here. They are amused by the fact that the Tata Motor Ltd (TML) is set to launch the car, often described as the world's cheapest car, in the market on Monday. But they wish that the government had not given exemption to TML from hiring 85 per cent local people, which is the policy of the state government. However, with the launch of much-awaited car, they hope that Sanand project will become functional soon and they will find some work either in the Nano project or in the auto component units which are likely to be set up adjacent to the plant. "I read in the paper that Nano will be launched on Monday. Its good to know this because eventually the car will be manufactured from Sanand," said Bhikhabhai Patel, a Sanand-based farmer. When asked whether people are hopeful of getting employment in the Nano project, Patel said that people are hopeful of getting employment but this may not be on large scale. http://www.financialexpress.com/news/sanand-people-amused-by-nano-launch/437599/ http://www.indianexpress.com/news/sanand-people-amused-by-nano-launch/437599/ NANO BUYERS HAVE TO PAY ENTIRE PRICE ON BOOKING Shweta Bhanot The Financial Express (Web Edition See similar story in: The Indian Express (Delhi Print Edition) (Mar 23) Mona Mehta: A Nano wont come cheap and easy for the masses waiting for their first car. In an effort to limit the demand for the much-hyped peoples car, Tata Motors would insist on 100% (Rs 1 lakh) down payment for the Nano on booking. This, according to dealers, is an attempt to restrict the bookings since the company is severely constrained on the supply side of Nano. Typically, a customer pays 20%-30% of the on-road price of a car as down payment at the time of booking. The Nano will be sold through a lottery system and the booking forms would be available over the week with all its dealers, select State Bank of India (SBI) branches and all Tata group retail ventures, including Croma, Westside, Trent and Star Bazaar. The form is expected to cost around Rs 200-300. The booking will be open for 14 days, after that the draw of lots will be conducted. The first car would be delivered to the lucky customer in two-and-a-half months, said a dealer. Ajit Joshi, chief executive officer & managing director, Croma, told FE, Booking forms for the Nano car would be made available from Monday across all Croma stores in India. But we have certain restrictions on revealing information about the prices at which the booking forms would be made available. Croma stores have received many enquiries for forms before the formal launch of the car. Banks are happy with the higher down payment for the Nano, as that allays their fears about potential credit risks that a high demand and long waiting period for the car poses. Essentially, banks will be interested in financing up to 70% of the cars basic cost, said another dealer. A senior official of the State Bank of India (SBI) told FE that bank is offering auto loans at a concessional interest rate for a limited period. We are already having a special lending scheme for auto loans, under which we are charging an interest rate of 10% from any borrower approaching us until May 31, 2009. Once the deadline was over, we will be charging a regular interest rate of 11.5-12% depending upon the loan amount and the tenure of repayment for any customers approaching us. Westside officials confirmed, on condition of anonymity, that All Westside stores in India will start selling car booking forms for the Nano car from the fourth week of March. Tata Motors is in the process... of setting up the Nanos motherplant at Sanand in Gujarat. Till that plant comes on stream, the company is relying on the make-shift plant facility at its existing plants in Pune and Pantnagar to roll out the Nano. The two plants would produce around 40,000-50,000 Nano cars this year. Tata Motors has been badly affected by the economic slowdown and is reportedly hard-pressed for cash to pay the $2-billion debt loan it took for the Jaguar and Land Rover buy last year. The company declared a loss of Rs 263 crore for the December quarter.... http://www.financialexpress.com/news/nano-buyers-have-to-pay-entire-price-on-booking/437708/2 A DIFFICULT BIRTH FOR TATAS NANO Manas Chakravarty Mint (Web & Print Edition) (Mar 23) Tata Motors Ltd launches the Nano on Monday, amid tentative signs of a recovery for the auto industry. Volume growth, which had crashed in the last quarter, has shown a smart recovery in January and February. Year to date, the Bombay Stock Exchanges Auto Index is up 15.7%, while the benchmark index, the Sensex, has declined by 7.7%. Thats a remarkable outperformance, built on hopes that the interest rate cuts will lower financing costs and banks are going to slightly loosen their purse strings. Yet a closer look at the stocks that make up the Auto Index show wide divergence. The Bajaj Auto Ltd stock, for instance, is up 42% year-to-date, while Ashok Leyland Ltds gain has been a modest 10%. But the Auto Indexs performance has been dragged down by the Tata Motors scrip, which has gained just 1.2% year-to-date. There are several reasons for the divergence. First and foremost, although theyre all part of the catch-all Auto Index, were comparing not just apples and oranges but apples and orangutans here. The demand for Ashok Leylands and Tata Motors commercial vehicles depends upon a completely different set of factors than the two-wheelers manufactured by Bajaj Auto or Hero Honda Motors Ltd. Demand for motorcycles, for instance, has remained robust because of the strength of rural demand, Hero Honda being the obvious gainer because 55% of its sales come from rural areas. Analysts believe the demand for Maruti Suzuki India Ltd cars has been buoyedby demand from government employees spending their gains from the Sixth Pay Commission. On the other hand, while commercial vehicle volumes too, have shown a sharp increase in February compared with the previous month, they remain very depressed on a year-on-year basis. As a report by First Global points out: The decline in truck sales in February 2009 was despite the excise duty cut of 6%, a reduction of 2% in lending rates and a depreciation allowance of 50%. The report says that around 28,000 heavy vehicles have been repossessed by auto finance companies and banks, which will affect demand for new vehicles. It also says that automobile dealers and manufacturers are presently holding four weeks inventory, as against the two weeks inventory they generally hold in the last quarter of the fiscal year. Its going to be a long, heavy slog before commercial vehicle demand stabilizes. But there is one aspect of all these companies that is indeed comparable, and that is the balance sheet. These days, thats increasingly becoming all-important. Hero Honda, Bajaj Auto and Maruti Suzuki are all net cash positive. But both Tata Motors and Ashok Leyland are highly geared. A Citigroup Inc. report estimates debt/Ebitda (earnings before interest, taxes, depreciation and amortization) at the end of the current fiscal year to be 0.4 for Maruti, 2.3 for Ashok Leyland and 7.1 for Tata Motors (stand-alone). The Ebitda/interest ratio for fiscal 2010 is estimated at an extremely comfortable 41.1 for Maruti, 4.8 for Ashok Leyland and a very worrying 1.6 for Tata Motors. Tata Motors debt/equity is forecast to escalate to 1.8-1.9 over fiscal 2010/2011 (assuming that the JaguarLand Rover [JLR] debt is refinanced through Tata Motors books). The report also points out, Tata Motors has to refinance almost 43% of its overall debt over FY10 (essentially the short-term loans for the JLR acquisition). Excluding this debt, Tata Motorss foreign currency convertible bond are due for repayment toward end-FY11, early-FY12 and mid-FY13. From a cash flow perspective, Tata Motors is the only company where debt refinancing appears critical, primarily on account of the JLR related debt. The recent depreciation of the rupee too is not good news for its dollar-denominated debt. Profits from the Nano, if any, are unlikely to have any impact on Tata Motors financial condition in the foreseeable future. The revolutionary new car is being launched at a time of unprecedented stress for the company. Small wonder the stock trades at a price to book well below its peers. http://www.livemint.com/2009/03/22212951/A-difficult-birth-for-Tata82.html?h=A2 NANO TANKS UP FOR ROAD TEST CHALLENGE Pankaj Doval The Times of India (Web & Print Edition) (Mar 23) New Delhi: Capping a journey full of admiration but not bereft of controversies, the Tata Nano is all set to steer India into automotive history. The small yet innovative carrevered for its tag of being the worlds cheapest is ready to fuel up, promising an affordable and comfortable vehicle to millions of Indians for whom a car was far out of reach. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" NANO LAUNCH: AUTO INDUSTRY ON VERGE OF NEW DAWN-BREAK PTI See this story in: The Hindu Business Line (Web & Print Edition), Daily News & Analysis (Web Edition), The Pioneer (Web & Print Edition), mint (Web & Print Edition) (Mar 23) New Delhi: History will be created in Mumbai tomorrow when Tata Motors launches the world's least expensive car, Nano - a car that can redefine personal transportation in modern India. Described as People's Car by the Tata Group Chairman Mr Ratan Tata, Nano's commercial launch will mark a milestone in a journey, which was replete with controversies, hurdles and criticism from competitors. As far as customers are concerned, they can expect to own a car coming at a price between Rs 1.20 lakh and Rs 1.30 lakh, depending on the version of Nano, although bookings will start only in April second week. According to dealer sources, if the company keeps the ex-factory price at Rs 1 lakh, as promised by Tata, then the base model could easily have an on-road price of Rs 1.20 lakh after adding taxes such as excise duty, education cess and road tax, along wi th transportation cost, local taxes, insurance and registration fees and a lifetime parking fees (wherever applicable). Last month, Tata Motors had appointed public sector lender State Bank of India as the sole booking agent for the world's least expensive car from the stable of Tatas. The booking amount is reportedly fixed at Rs 70,000. http://www.thehindubusinessline.com/blnus/14221606.htm http://www.dnaindia.com/report.asp?newsid=1241447 http://www.dailypioneer.com/164506/Nano-launch-Indian-auto-industry-on-verge-of-new-dawn-break.html http://www.livemint.com/2009/03/22153351/Nano-launch-Indian-auto-indus.html A TURNING POINT FOR THE CAR INDUSTRY Murali Gopalan The Hindu Business Line (Web & Print Edition) (Mar 23) Mumbai: One man did not join the sceptics when Mr Ratan Tata made public his intention to manufacture a peoples car costing Rs 1-lakh. Mr Carlos Ghosn, Chief Executive Officer of Renault and Nissan, sat up and took notice even while the likes of Mr Osamu Suzuki, the patriarch of Suzuki Motor Corporation, scoffed at the initiative. Nissan turnaround tycoon realised that Mr Tata meant business and that this car had the potential to succeed across key parts of the world. He also knew that Indians were second to none when it came to his now famously-coined term frugal engineering. The Renault CEO realised there was little time to be lost. It was important for his company to think on similar lines and bring to India a car costing $2,500 the dollar ballpark for a Rs 1 lakh vehicle. The Indian partner had to be someone who shared a similar vision and with a track record in cost-control. This is what eventually led to the meeting with Mr Rajiv Bajaj, Managing Director of Bajaj Auto, and the formation of a three-way alliance among the two-wheeler company, and Renault and Nissan for the ULC (ultra low cost) car project. The ultra low cost car Quite unlike Tata Motors, with domain expertise in cars and commercial vehicles, Bajaj Auto is mainly a motorcycle manufacturer with a profitable three-wheeler business. It has evolved a competitive cost-structure at its plants, which to Mr Ghosn meant the ULC car battle was already half won. With their global competence in car manufacturing, Renault and Nissan would be the ideal pillars of support for this project. The car is scheduled to be launched in 2011 by which time the Nano will have completed a two-year run on Indian roads. What will the ULC car offer that the Nano will not by then, experts ask. Mileage, The Key Bajaj Auto and its allies believe that mileage will be the most important factor in determining the relevance, and possibly success, of its offering. Initial tests have been encouraging with reports of over 30 km to a litre. And if the price tag is kept at around Rs 1.5 lakh (on-road) for the basic version, sources say this combination of mileage and price will be enough to draw customers. It is clear, therefore, that Indias automobile landscape will change dramatically with the Nano and the ULC car that will follow. Little wonder, therefore, that the low-cost car mantra is now being chanted like never before. Almost every carmaker wants in, though most insist that it would be impossible to match the price level set by Tata Motors and challenged by Bajaj Auto. Suzuki is the worlds most prominent name when it comes to small cars and its Indian arm, Maruti Suzuki, is the clear leader in the compact car segment here. The company has maintained that it is not going to do a Nano in terms of price. But not too many people are buying the story. Maruti will gauge market reaction to the Nano and see if it is going to eat into some of its products, largely the 800 and the Alto. Should that happen, the company will offer a stripped-down version of either model to retain its position, a top automobile executive, who did not wish to be named, told Business Line. Hyundai Motor India has gone on record that it is looking at a low-cost car but at a price point above the Nano. Much is reportedly happening at the companys R&D centre in Hyderabad for this vehicle tipped to be launched in 2011-12. Sources say Hyundai can manufacture a car under Rs 2 lakh considering the competitive cost structure it has achieved at the Chennai plant. The global hub for the Atos Prime shifted from Korea to India over four years ago and now the Click (Getz) line is to follow suit. This is all because of cost efficiencies in Chennai; they are more than adequate to roll out a low-cost car, they add. Other car makers such as Toyota, Honda and Volkswagen with operations in India are developing their own low-cost cars in the price range of Rs 3.5 lakh and above. Hondas next car in India, after the Jazz, is a world small car that will also have production bases in Thailand and Brazil. However, the company has not indicated that this will be a low-cost model, in line with its premium carmaker image. Honda will position this car in the Rs 3.5-lakh price range where there will be an appreciable gap with the Jazz and, going upwards, the City, ancillary suppliers say. Similarly, its compatriot, Toyota is gearing up for the 2010-11 launch of the 800 L global small car in India. This model will also be made in Brazil, China and Russia given the growing prominence of the BRIC economies. Toyota is categorical about steering clear of the low-cost space and the 800 L could be priced upwards of Rs 5 lakh. Volkswagen too According to sources, Volkswagen and its group company, Skoda, could also spring a surprise or two with low-cost cars that will roll out of a common platform towards end-2011. However, these will not be in the Nano or the ULC car price range but more towards Rs 3 lakh, they said. Even before its debut the Nano has heralded the low-cost car revolution across the globe. It is a tribute to Tata Motors for showing the rest of the world what cost-efficiencies are all about. And this is even more creditable for a company that has been making cars for just over a decade, a top official of an automotive company said. http://www.thehindubusinessline.com/2009/03/23/stories/2009032350850600.htm SOFTENING RAW MATERIAL PRICES SMOOTH THE RIDE Manu P. Toms The Hindu Business Line (Web & Print Edition) (Mar 23) Mumbai: Unveiling the Nano at the Delhi Auto Expo last year, Tata Motors Chairman, Mr Ratan Tata, had warned of the consequences of inflation and rising raw material costs on the price tag of Rs 1 lakh (ex-factory without transport). The car may have had a bumpy journey since, but vis--vis raw material prices it has been a joy-ride. Cold rolled steel is a case in point. In January 2008 (when the car was unveiled), cold rolled steel was selling at Rs 45,000 a tonne and climbed to nearly Rs 60,000 in April-May. Cold rolled steel is available for Rs 32,000-35,000 a tonne, says Mr Ankit Miglami, Director-Commercial, Uttam Galva Steels, which supplies Tata Motors and Mahindra & Mahindra. Another important component in the Nano is rubber, whose price was Rs 93 a kg at the time of unveiling. It stretched to Rs 140 in August before dropping to around Rs 75/kg now. Car tyre prices which went up after January 2008 are down to the earlier level. Nano tyres may cost Rs 1,200 a piece, says Mr Paras K. Chowdhari, Managing Director, Ceat. Plastic has been used extensively in the Nano but the prices of plastic compounds have been constant though ranging from Rs 150 to Rs 600 a kg, according Mr Nitin Kothari, DSM Engineering Plastics India. From the customers point of view, the best piece of news is that the price of petrol has come down by Rs 10 a litre since December (though it was hiked by Rs 5 earlier). The diesel version of the Nano is due in 2010. http://www.thehindubusinessline.com/2009/03/23/stories/2009032350950700.htm THE GREAT INDIAN ENGINEERING FEAT S. Muralidhar The Hindu Business Line (Web & Print Edition) (Mar 23) Chennai: Tall, snub-nosed and egg-shaped, the Nano, at first glance, seems to look like a futuristic autorickshaw with its front wheel tucked in. Like most autorickshaws, the Nano will also have a rear engine. And the Tata mini-cars on-road price will also be close to the three-wheeled public transporter ubiquitous to most Indian metros. But the similarities end there. Despite critics observations to the contrary (especially in overseas markets), the Nano will be a full-fledged automobile in India and outside it. And while it shares the autorickshaws focus on costs and frugal engineering, the Nano manages to pack enough to give it the feel of a contemporary automobile even in the global context. The aerodynamic body lines, the clear-lens headlamps, clear-lens tail-lamp cluster that takes the design resemblance to the Indica forward, the centrally positioned instrument cluster, and the tight, consistent body panel gaps are visual affirmation that the Nano can claim to be an internationally relevant, modern-day automobile. While all of these make sure it is not dismissed as a lemon even by existing car owners, the Nano is also put together such that it will appeal to its primary target audience the buyer upgrading to a car from a two-wheeler groaning under his four-member family. Costs, costs This is where Tata Motors engineering ingenuity is shining. The development teams focus on cost has been two-pronged keeping production costs low for itself to make possible the killer pricing and then keeping the cost of ownership low. That is a unique combination in the global automobile industry. Of course, Tata Motors had considerable practise with the Indica. So, what are the features in the Nano that the buyer will appreciate. First, the bumpers are large, with the front, oversized one being the most practical. Essentially, this means smaller body panels taking a hit in the event of a collision. With body panels in metal, this means the cost of repair will be low. Instead of a denting and painting job, just a blow torch repair job of the ABS plastic bumper will do. Next, the story goes that Mr Ratan Tata personally intervened during the design of the Nano to eliminate the second windscreen wiper. Besides reducing the cars cost, it also keeps the cost of wiper blade replacement low. As long as the single wiper does the job, the owner will appreciate it that much more just before the monsoon. Simple engine Another key example of the Nanos ingenious frugal engineering is the choice of the engine. The 624cc, two-cylinder petrol engine with a single balancer shaft can be opened up easily and repaired even in relatively sparingly equipped workshops. Though it features a multi-point fuel injection, the single injector Bosch system is apparently not complicated. By positioning the engine at the rear, the Nano not just joins the ranks of many of the peoples cars worldwide, but offers a further dose of practicality. For one, a rear-mounted engine transfers power to the wheels better and more efficiently. Additionally, the safety quotient improves dramatically. It is also why so much space could be liberated inside the car. No automatic choice The Tata designers and engineers had proposed an automatic transmission for the Nano, but potential user feedback and the Indian liking for manual gearboxes seem to have influenced the final choice of a four-speed manual. The Nanos engine is the smallest yet in the A-segment a class of vehicles that has only one occupant, the Maruti 800. By trying to match the segment benchmark in power and performance, the Nanos fuel-efficiency potential might have been compromised a bit. But by endowing it with the capability to do a top speed of 110 kmph and still offer a fuel-efficiency of 20 km to a litre of fuel, there is no compromise on most parameters any automobile will be judged by. What is more, Mr Ratan Tata has said the Nano has passed the full-frontal and side-impact crash tests. No wonder then, that all national and international attention on the Nano is focused on how Tata Motors has managed to make a car, not a vehicle, and offer it at such a low price. http://www.thehindubusinessline.com/2009/03/23/stories/2009032350900700.htm FROM SINGUR TO SANAND, AN ARDUOUS DRIVE Murali Gopalan The Hindu Business Line (Web & Print Edition) (Mar 23) Mumbai: It has taken the Tata Nano a good 15 months between the time it was first showcased at the Delhi Auto Expo in mid-January last year and its official launch on Monday. The peoples car has had a tumultuous journey since the time Mr Ratan Tata first displayed it and said those four memorable words on its Rs 1-lakh price tag, A promise is a promise. They had the crowd on its feet applauding the Tata Group Chairman who was determined to prove sceptics wrong. After the glory came the hard reality. The Nano was scheduled to roll out of the Singur plant in West Bengal towards end-October 2008. All hell broke loose when Trinamool Congress chief, Ms Mamata Banerjee, protested on behalf of the farmers who, she claimed, had forfeited their land and their livelihoods in the process. Even then, Mr Tata would not give up though valuable time was being lost on the rollout. Finally, he called it quits and decided to relocate the project to Sanand in Gujarat. Work is happening at a brisk pace and the first car could roll from the production lines by January 2010, sources say. Production plan suffers The fact remains, though, that the Nanos original production schedules have gone completely awry following the impasse in West Bengal. Ancillary suppliers were told that 96,000 units were planned for 2008-09 but once the Singur protests intensified, this was halved to 50,000 cars. When Mr Tata announced the pullout, vendors were optimistic that the company would still manufacture 15,000 units between January and March 2009 from its Pantnagar unit which was part of Plan B. It is now clear that no customer will get a Nano this fiscal except for the select few who may get one at the launch ceremony on Monday. It has been an unfortunate setback for Tata Motors but we are sure that it will put the car on the fast track once the Sanand plant is commissioned. During 2010-11, the company has the potential to produce 150,000 cars, going up to over 250,000 units and 500,000 units eventually, a top ancillary supplier for the Nano said. However, meeting demand in 2009-10 will be difficult as the Pantnagar facility can at best roll out 5,000 cars a month. In fact, top sources say that the production schedule for April is only 1,500 cars, which means that Tata Motors will be hard-pressed to meet the expected 250,000 plus bookings. Customers may have to wait at least eight months before they get their car.The Nano was first planned as a gearless car which would have worked wonders with the working woman using a Kinetic or Honda scooter. This would have been a natural upgrade but since this objective did not quite materialise, the car ended up with a manual transmission. Two-wheeler face-off Nano is small but can still edge the two-wheeler off the road. It will be interesting to see if the two-wheeler segment will be face pressure from the Nano. A section of industry observers feels that this is inevitable as Nano offers the most comfortable price point between a motorcycle costing Rs 45,000 and the cheapest car, now the Maruti 800, at nearly Rs 2.2 lakh. Others do not think this will happen simply because of the mileage factor. An entry-level motorcycle gives you over 55 km to a litre while the Nano will give half this. How would you expect customers to compromise on operating costs, they ask. The answer will gradually unfold in the coming months once the Sanand plant steps on volumes. The 624cc petrol version of the car will debut in three versions. The basic option, without air-conditioning, will carry the magical Rs 1-lakh (ex-factory and without transport cost) price tag. Sources say, though, that it will account for only 20 per cent of sales with the mid- and top-end versions taking up the lions share. Most buyers would prefer a car with air-conditioning even if it costs a little more. And paying even Rs 1.6 lakh (on-road) for the luxury Nano is a bargain for a four-wheeler, sources say. Tata Motors is also believed to be working on a 684cc diesel version, which will roll out of the Sanand plant in 2010-11. It could end up doing very well, on the lines of the Indica where the diesel option takes up over 90 per cent of production. However, the Nano is much smaller and more of an intra-city car quite unlike the Indica which can do inter-city drives quite comfortably with its bigger engine. To that extent, it remains to be seen if the diesel version will score solely on the fuel price advantage, sources say. Tata Motors recently showcased the Nano Europa at the Geneva International Motor Show, clearly driving home the message that the peoples car will look for geographies beyond India. Speculation is rife that a similar initiative is planned for Thailand. A three-cylinder version of the Nano with a host of safety features could make its way to the country in the next two-three years. http://www.thehindubusinessline.com/2009/03/23/stories/2009032350840600.htm LONG BEFORE TATA MOTORS, THERE WAS SIPANIS DOLPHIN Venkatesha Babu Mint (Web & Print Edition) (Mar 23) Bangalore: Meant to be an Indian car for the Indian masses, the car was turned out in 1978 by Bangalore-based Sipani Automobiles Ltd, and was quite a head-turner for an all too brief period of time. Five years later, the Maruti 800 hit the roads and went on to transform Indias automobile industry, until then dominated by Hindustan Motors Ltd, maker of the then ubiquitous Ambassador based on the Morris Oxford, and Premier Automobiles Ltd, which made the Premier Padmini modelled on the Fiat 1100. Sipani Automobiles started life in 1974 as Sunrise Automotive Industries Ltd and released its first product called Badal with help from the British manufacturer of three-wheeled cars called Reliant Motor Co., which was known for its rather quirky products. After running into regulatory trouble, as three-wheelers in India are traditionally categorized as autorickshaw taxis, the Sipanis in 1978 released the four-wheeled contraption called Dolphin. The Dolphin was a two-door car, based on a discarded Reliant model called the Kitten. The Dolphin was a hit for a brief while, mainly because its body was made of fiberglass, an innovation in the Indian market then. Given its 848cc engine, its power-to-weight ratio was pretty good and the car was a popular choice even among rally drivers. It was the original city car meant to negotiate start-stop driving conditions. However, given that even by 1983 the entire car market in India could absorb a mere 40,000 units yearly, Sipani could never manufacture the car in adequate volumes to justify investments to constantly improve the product. Compared with the Maruti, which boasted Japanese technology, the Dolphin was found wanting. Because of onerous governmental regulations, the Dolphin was mainly sold in south India and could never gain visibility elsewhere. Since Indian families preferred the four-door Maruti 800, the Sipanis were forced to introduce a successor called Montana. The Montana had four doors, but technologically was inferior to the Maruti 800, prompting the Sipanis to go in for an overhaul within two years of its launch. The result was a variant called the D1. The new Montana D1 was a mishmash of several automobiles. It was based on Daihatsus Charade but had a combination of Maruti and Mahindra parts in it. To ensure 100% local content, it actually sourced a Shakti-Mitsubishi mini tractor diesel engine, which was manufactured by VST Tillers in Coimbatore. Even the new car could not match the popularity of Maruti 800. After innumerable attempts at reviving the company, including assembling the Rover Montego after importing it in a completely knocked-down form, the Sipanis gave up. After a brave attempt at creating a domestic auto industry, Sipani Autombiles was eventually wound by a fiat of the Board for Industrial and Financial Reconstruction. The Dolphin had its share of fans and still has. Like T. Balu, 64, who fondly recalls the times he would drive it on Parade Ground, now known as M.G. Road, Bangalores main thoroughfare. In its day Dolphin was the queen of the road, says Balu, who bought the car at the end of 1982 for Rs63,000 and drove it till 1988. Heads would turn when I would take the car out on Parade Ground on weekends. If only they had constantly improved its technology, he sighs. http://www.livemint.com/2009/03/22232524/Long-before-Tata-Motors-there.html IN 1990S, HIGH DUTIES CRASHED KINETICS RS1 LAKH CAR PLANS Sudha Menon mint (Web & Print Edition) (Mar 23) Pune: At a time when the Nano was not even a gleam in Ratan Tatas eye, the head of another automobile company dreamt of a car that would be small, cheap and made in India. Arun Firodia, chairman of Pune-based Kinetic Engineering Ltd, who also has the reputation of a maverick tinkerer, thought up a Rs1 lakh car back in the mid-1990s. His idea had few takers and successive governments refused to give him the critical excise duty breaks that would have helped him keep the price that low. The existing duty structure of 40% could not help in keeping it at that level at the retail level, recalls Firodia. So we had sought a lower duty of 15% but the project eventually went into cold storage because the duty concessions never emerged because of quick changes in the government, (all of) who failed to do anything about it. Ironically, Firodias company now supplies gear boxes for Tata Motors Ltds Nano. The city commuter conceived in 1995-1996 by Firodia, an electronics engineer with a passion for automobiles, would have been much more basic than the Nano. It was to run on a 500cc, single-cylinder engine sourced from the US, packed in a plastic body with a steel frame, and with none of the sophisticated technologies that the Nano will boast. According to Firodia, it was an attempt to fulfil the ordinary persons dream of owning a car. The failure of that project did not stop Firodia. In the late 1990s, Kinetic announced it would turn the city commuter into an electric car that would cost Rs1.5 lakh, with a running cost of less than 20 paise per kilometre, and go 60km on a full battery charge. The product, aiming for 5,000-8,000 units was also shelved as rising prices of iron and zinc sent the price of batteries through the roof. The electric car is the product of the future for the world. It is zero polluting and cost-effective but at the moment it is not something that can get volume sales because just the battery itself costs over Rs1 lakh, Firodia said in an interview. And as the contours of the automobile industry have changed, Firodia has given up on his dreams of entering the passenger car business. Instead, the group has repositioned itself as a components supplier. People want every possible feature in a small car and companies have to spend thousands of crores to develop that and mass produce that car. We are not in a position to do that, Firodia said. Also, the car is no longer a novelty for people. You can buy a used car for Rs1-1.5 lakh. So there is no point competing in this segment. We cant afford to do that. http://www.livemint.com/2009/03/22232538/In-1990s-high-duties-crashed.html?h=B | ||
| INTERVIEWS/FEATURES Go To Top Skoda is out to make a statement with its Superb. Be it styling, drive or fuel economy, it is impressive in every way, writes Ashish Masih Superb by name, superb by size and superb for comfort. The new luxury car from Skoda is about to challenge established rivals and take some sales away from them. At least thats the plan. The new Superb is striking to look at, if anything. Unlike the old car that was a plain Jane , the new Superb has a more appealing style quotient. The face gets attractive-looking wrap around headlamps, which have a sharp edge and upward sweep to them and there are cuts and details on the nose section that look attractive. The lense has Superb etched on it a classy touch. The windows get chrome framing around them and serve well to make the car more noticeable. The rear looks heavy though and doesnt seem to gel with the sophisticated looks of the front end. Overall, the car looks more purposeful than the older one. Though the Superb is shorter than the older car, it still has impressive road presence. But its the rival Accord that has a longer wheelbase and overall length. Look in Step back and youll notice that the new Superb is a hatchback and a saloon. You can open the bootlid alone or open the entire tailgate. And at 565 litres, theres plenty of space here. Skoda has also come up with a lighting system that varies its beam pattern according to your speed and driving style. It includes cornering lights and has settings to reduce reflection when driving in the rain or snow. Step into the cabin, remove the Skoda badges and you could well mistake the Superb for an Audi or Mercedes yes, quality levels are that impressive. Skoda seems to have achieved the impossible with the Superbs cabin increasing space (as if it needed more) within a shorter wheelbase. Theres enough boot space too. With the seats down, the boot looks more like the hold of a container ship than the boot of a car. The stylish steering wheel is exceptional; its comfortable to hold and the chrome smile and Skoda badge make it look nice. The hooded circular gauges add class. All controls on the dashboard are intuitive to use, and the puddle lights inside the cabin go a long way in adding an air of luxury to the cabin. Another youll love it feature is the iPhone-like central touchscreen that controls everything from the radio and in-dash CD-changer to the phone and navigation system. Its much easier to use than BMWs iDrive or Audis MMI (Multi Media Interface) that call for a more complex action of rotating and clicking a dial. Where the Superb really wows you is in the seating department. You are unlikely to find more comfortable seating anywhere in this class. Both the front and rear seats offer brilliant comfort levels with acres of space. They are supportive and adjustable in every direction. Generous shoulder and under-thigh support ensure that youre in for a limousine-like experience. Other niceties include electrically retractable rear sun blinds, footrests for rear passengers and a built-in umbrella plus drainage system in the left-side rear door. Under the bonnet It comes as no surprise that the Superb rides comfortably most of the time, keeps road noise to a minimum and drives very tidily too. The 1.8-litre petrol is a turbo-charged direct-injection motor, which delivers 160bhp. This engine is mated to a seven-speed DSG double-clutch automatic gearbox. Performance is brilliant to say the least. It accelerates from zero to 100kph in 9.1 seconds and carries on to 150kph in under 20 seconds. Thats faster than the manual 2.4-litre Accord. The seven-speed gearbox ensures that you are always in the correct gear to get the best power out of the engine. But the engine feels a bit sluggish at lower rpms, thanks to the turbo-lag. So you will have to downshift into a lower gear to move quickly. The steering is one of the best electronic-mechanical systems weve come across and offers plenty of communication. Skoda has stiffened the Superbs suspension and as a result the ride is quite firm. But the Superb is agile enough to make a mockery of its size. However, the brake pedal takes some getting used to. The downside to the stiff suspension though, is that the ride is a bit fidgety on surfaces that are less than smooth. In terms of fuel economy the Superb betters the Honda Accord and the Toyota Camry as well. It delivers 8.3kpl in the city and 12.5kpl on the highway. Overall, if youre after metal for your money, then the Superb is fantastic value. At an estimated Rs 19.5 lakh, it wont be cheap. But when you consider the sheer quality and comfort it offers along with the generous equipment and refined engine, its hard to build a case against the Superb. This is a big, competent and well-equipped car with a sensible price-tag. What remains to be seen is the resale value, which historically has not been good for Skoda petrols. The diesel Superb will definitely have a better resale value, but the 2.0-litre diesel engine wont be here for another couple of months. http://www.thehindu.com/mp/2009/03/18/stories/2009031850650400.htm | ||
| CARS, SUVs, MUVs Go To Top John Sarkar (Mar 22)
For the Nano the magic number is $2000 or approximately one lakh rupees in India. And its much lower than what industry estimates suggest that by 2012, the market for vehicles priced under $10,000 is going to touch about 18 million cars, or around one fifth of global car sales. And by the look of things it doesnt appear to be a far-fetched fantasy either. Sample this: Four years back when French carmaker Renault offered its modest no-nonsense Logan for around $7,000 in Europe, it was at least 40-50% cheaper than the sedans of its nearest rival. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://economictimes.indiatimes.com/News/News-By-Industry/Auto/Automobiles/ FIAT WATCHING IT WITH INTEREST Murali Gopalan The Hindu Business Line (Web & Print Edition) (Mar 23) Mumbai: As Tata Motors gears up for the Nano launch, its joint venture partner, Fiat ,will be monitoring the progress of the car with great interest. The Italian automaker, of course, has not participated in this project but recently went public with its plans to make a low-cost car exclusively for India by 2012. Tata Motors and Fiat have a 50:50 alliance to produce cars and powertrains at Ranjangaon near Pune. This plant, already up and running, will roll out cars from both companies, badged separately but sold jointly, and the target is about 130,000 units by 2010. Fiat is expected to account for 70,000 cars, comprising the Palio, the Linea and the Grande Punto while the Cinquecento and the Bravo form part of its CBU (completely built-up) import agenda. The Italian automaker, incidentally, is simultaneously planning an affordable car for markets like Europe in the next couple of years but which will not sport the Fiat brand. Speculation is rife that the Ranjangaon plant could be one of the global manufacturing bases for this car which, sources say, will be rich in technology and, therefore, not come in cheap. Nano inspiration The fact that the company is now considering a low-cost car for India too could imply that it has been inspired by the Nano project and the possibility of notching up big numbers in this predominantly compact car market. Fiats own offering, though, will be at a premium to the A segment (comprising the Maruti 800) and below the price range of entry-level B segment cars (such as the Santro or the Indica). In other words, this vehicle could be priced around Rs 2.75 lakh which will make it twice as expensive as the Nano. Would Tata Motors have a hand in this project? Nobody really knows yet though it is only logical to infer that Fiat will definitely tap its Indian partners skills in cost-control. To that extent, suppliers involved with the Nano will be roped in for the Fiat project too, sources say. Nano europa In its turn, Fiat may have a big role to play once the Tata peoples car goes global. The Nano Europa, showcased at the Geneva Motor Show, is scheduled to enter Europe in 2011 and Tata Motors could turn to its Italian ally for support in market research and, eventually, selling too. After all, in India, Fiat retails its cars along with Tata models in common showrooms and a similar arrangement could be worked out in overseas markets too. The two companies have, time and again, reiterated that they are committed to their partnership that will generate critical synergies in costs, product development and marketing. The Fiat 1.3 Multijet diesel already powers the Indica Vista and once the Italian company decides to produce its 1.6-litre diesel engine too at Ranjangaon, Tata Motors is very likely to use it for one of its models. http://www.thehindubusinessline.com/2009/03/23/stories/2009032350870600.htm | ||
| COMMERCIAL VEHICLES Go To Top | ||
| CONSTRUCTION & AGRI MACHINERY Go To Top | ||
| 2/3 WHEELERS Go To Top | ||
| RE-TUNING THE ENGINE COMPONENTS K. Giriprakash The Hindu Business Line (Mar 23) Bangalore: Bosch began work on the Tata Motors Nano project in 2004, with a simple brief: Components should be low cost, adhere to regulatory requirements and achieve performance targets such as fuel efficiency and acceleration capacity. According to an internal newsletter of Bosch on the Nano project, at a technology meeting at Tatas Engineering Research Centre (ERC), the Bosch team promised technical and innovative support for the Nano, confident after the technological forays it had made into the low-priced vehicle segment. The first concept engine for Nano was assembled in 2005 at Coimbatore. It was fitted with the standard Bosch Gasoline Engine Management System. Despite hurdles, the engineering team from Bosch and Tata test-fired the engine, a two-cylinder 586-cc power plant with innovative crankshaft balancing mechanism. Bosch did the vehicle calibration. Then, Tata Motors increased the engine capacity to 624 cc to cover other variants.Bosch offered to supply the Engine Management System. For low-priced vehicles, Bosch GS division designs and develops the engine Electronic Control Unit. An ECU was exclusively redesigned for the Nano. Bosch also tailor-made the starter motor and the generator. It matched the starter and engine speed and torque characteristics. While the electrical characteristics of the starter are entirely new, the mechanical system design is based on compact direct starter (CDS). The idea was to have the advantage of high volume CDS to reduce the cost. The manufacturing team too tried a new initiative of investing in a low-cost starter manufacturing line as per the Bosch Production system (BPS) concept. Brakes: Bosch Chassis Systems India was one of a hundred suppliers invited in 2004 to develop low-cost products and systems for the Nano. Right from the initial mules, Nano cars were equipped with RBIC brakes. The Nano Braking System consists of a Tandem Master Cylinder and four drum brakes. To keep the cost low, the system was so configured that the conventional vacuum booster was avoided so that it would be comfortable for the driver. Similarly, instead of calipers on the front wheels, cost-effective drum brakes have been used. All products were fully indigenised to meet the cost target of Tata. RBIC will also supply upgrades for braking system for Nano. An anti-lock braking system exclusively designed for the Nano is on the anvil. Challenge of space Mr A.G. Satvinder Singh, COO (Marketing and Business Development), Lucas-TVS Ltd, said the Nano has a very compact engine. The challenge of designing the starter motor and the alternator was to package it in the space available. Lucas-TVS designed a 60-mm starter motor and a compact alternator with reduced length to fit in the available space without compromising on the specifications. The products uselatest technology such as gear reduction starter motor and internal fan alternator. http://www.thehindubusinessline.com/2009/03/23/stories/2009032350880600.htm CUTTING ON COSTS, NOT TECHNOLOGY Priyanka Vyas The Hindu Business Line (Mar 23) New Delhi: We are very excited about the car getting launched. Though it is a low-cost car, there has been no compromise on technology. This is for the first time we supplied aluminum engine blocks. This helps to reduce the weight of the car. As emission norms will change, maybe there will be more companies that will use similar technologies, said Mr Arvind Kapur, Managing Director, Rico Auto. According to Mr Surinder Kapur, Chairman, Sona group of companies and head of Tata Motors vendor council, the Nano has created much interest in the global automotive industry as it has been designed from the scratch. This means engineers at Tata Motors and suppliers have been able to design to specifications and not based on some preconceived conceptions or based on what they had done in the past.
Engineers did not use anything they had done before for other models, and in many cases used off the shelf parts to make the Nano cost competitive. More important, the designs created were for this specific application. I believe the whole auto world is excited because it serves the needs of a low-cost car which is fuel efficient, said Mr Surinder Kapur. "We are happy that the Nano is finally seeing the light of the day, said Mr Deepak Jain, Executive Director, Lumax Industries. http://www.thehindubusinessline.com/2009/03/23/stories/2009032350930700.htm | ||
| ALLIED INDUSTRY Go To Top T. Murrali The Hindu Business Line (Mar 23) Chennai: Wheels India, a TVS group company, worked closely with Tata Motors in developing the wheels for the Nano, challenging a number of assumptions along the way. The Wheels India Managing Director, Mr Srivats Ram, said the wheel that was developed is lighter than any other passenger car wheel in the country and the first wheel to my knowledge in passenger car wheels to have three bolt-holes instead of the conventional four. Production planning was a detailed exercise with the company asked to look at alternative processes every step. It resulted in an optimised product and process design meeting the specific requirements of Nano. It has truly been a learning experience for us, he adds. TEMP tyre: MRF supplies three different types of tyres for the Nano. MRFs Vice-President(Marketing), Mr Koshy Verghese, said this is the first time a car has been developed with engine at the rear and the challenge was to design and develop three different tyres with lower rolling and steering resistance to ensure better fuel economy. The front tyre is 135/70 while the rear is 155/65 with tubeless radial tyres of 12-inch rim diameter. The spare wheel called temporary spare wheel akin to the popularly known Doughnut tyres in developed countries is a biased (non-radial) tube tyre and smaller in size. The idea of the smaller spare wheel is not to use it permanently but only till the car is driven to a place where the puncture in the main tyre can be sealed. The tyre is branded as TEMP. Usually vehicle manufacturers choose tyres from the existing sizes. But for Nano they were developed from scratch. Synergy between the vehicle and the tyre was paramount. The tyre sizes evolved during discussions with Tata Motors for more than three years. A number of iterations were gone through before arriving at these sizes, he said. The concept of a temporary spare wheel has been introduced in the Nano since it is smaller, lighter and cheaper. Also, space is at a premium. It also keeps the weight and cost in check. http://www.thehindubusinessline.com/2009/03/23/stories/2009032350910700.htm DUNLOP WORKERS OPT FOR CONCILIATION The Hindu Business Line (Mar 23) Chennai: The Dunlop Factory Employees Union and the management are to go for a State Government-mediated conciliation to arrive at a final settlement. According to the official spokesperson for the union, the leaders and office bearers of the DFEU representing the workers at Dunlop India Ltd Ambattur factory called off the indefinite fast demanding that the management expedite the final settlement. The union withdrew the agitation after the management agreed for talks mediated by the Tamil Nadu Labour Department. This followed the intervention of the Labour Department officials who have asked the management and union to discuss the issues. The discussions are to start from the month-end. The main point on the agenda would be the amount to be paid to the 734 workers as a final settlement to terminate their services and payment of statutory dues to the retired employees. The management is also expected to settle the issues relating to payment of interim wages due to the workers after the factory stopped production in October last year, the union leader said. http://www.thehindubusinessline.com/2009/03/23/stories/2009032351381300.htm STEEL PRICE FALL TO LIFT NANO'S MARGINS Sachin Dave The Economic Times (Mar 23) Mumbai: The softening of steel prices are likely to improve the wafer-thin margins of Nano, the world's cheapest car, which will be launched by Tata Motors on Monday. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" ESSAR STEEL SETS UP PROCESSING FACILITY IN CHENNAI'S AUTO-BELT The Economic Times (Mar 22)
http://economictimes.indiatimes.com/News/News-By-Industry/Indl-Goods--Svs/ FEB STEEL CONSUMPTION UP 6% AFTER 5-MONTHS DECLINE Pramugdha Mamgain The Economic Times (Mar 23) New Delhi: After five straight months of decline, domestic consumption of finished steel rose 6.17% to 4.47 million tonne in February 2009 over the same period a year ago, as per the latest steel ministry data. The rise in demand was largely driven by sectors such as automotive, construction and infrastructure. As per the Joint Plant Committee (JPC), domestic production of steel and imports also went up. Domestic steel firms produced 4.7 million tonne last month, 2.6% more than what they did in February 2008. In the same period steel imports jumped 33% to 0.48 million tonne last month. JPC is a part of the steel ministry and collects data on steel production and consumption on a monthly basis. Companies across sectors have enhanced spending to meet annual production targets which has pushed up demand for steel, said a JPC official. The October-December quarter was bad for all the steel firms as demand slowed down considerably. As a result, large steel producers cut down their production levels. But, the situation has improved in the current quarter as major steel companies including Steel Authority of India, Tata Steel, JSW, Essar and Ispat posted up to 15% jump in sales in the last two months, the JPC official added. The uptick in consumption has come as a relief for the industry. After steady growth in the first five months of current financial year when demand was at its peak, consumption started dropping year-on-year from September. Steel consumption fell 13% in September 2008 vis--vis previous year owing to global economic slowdown and continued to decline every month till January 2009. As a result, for the eleven-month period ending February, domestic consumption of steel dropped 1.26% to 46.78 million tonne. While steel imports dropped 13% to 5.8 million tonne for the April-February 2009 period, production increased 1.37% to 51.5 million tonne. The governments move to levy 5% import duty on steel products increased demand for domestically produced products and thereby production. Since India is a domestic demand driven economy, it remains insulated from the global economic turmoil to some extent. Demand of steel will not be galloping in the coming fiscal but will continue to grow at the current pace, said consulting firm Ernst & Young partner Naveen Vohra. Steel analysts feel stimulus packages extended by the government besides cut in interest rates have enhanced spending in auto and construction sectors. Work on the projects that were held back last quarter have started because of revival in demand, Mr Vohra said. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" | ||
| FINANCE & INSURANCE Go To Top N. Ramakrishnan The Hindu Business Line (Mar 23) Chennai: Public sector banks are all set to take the lead in financing the Nano, with those in the private sector undecided still on whether they should offer loans to customers wanting to purchase the low-cost car or on what kind of package they should come up with. Tata Motors has signed agreements with nearly a dozen public sector banks for financing its range of passenger vehicles, with terms considered attractive. However, these tie-ups are not specific to the Nano. According to banking industry sources, the tie-ups with the government-owned banks should help Tata Motors as these banks have the branch network, especially in the semi-urban and rural areas, which is where Tata Motors expects its newest offering to be a big hit. State of loan industry The sources say the reluctance of the private banks to finance a Nano buy is more a reflection of the auto financing industry as the financiers are grappling with defaults in repayment of loans and their inability to take possession of vehicles than on the Nano itself. However, a top executive of a private bank, who did not want to be identified, said, we cannot afford not to be there. Banking industry sources say there will be two distinct categories of Nano buyers: One, those upgrading from a two-wheeler and, two, those who already have cars but are buying this one for the use of their children, to drop and pick them from school. For the first set, the sources say, the fuel bill will go up from Rs 750 a month now to Rs 2,500, which will be the EMI (equated monthly instalment) amount for a loan. How will they be able to afford the EMI and the fuel bill, the industry sources ask. As for the second category, the sources say they will be able to easily write out a cheque for Rs 1.50 lakh, which will be the on-road price of the car and may not want a loan at all. http://www.thehindubusinessline.com/2009/03/23/stories/2009032350860600.htm CANARA BANK TIES UP WITH AUTOMAKERS Business Standard (Mar 23) Chennai/ Bangalore: Canara Bank and passenger car maker Maruti Suzuki India Ltd have entered into a tie-up arrangement, under which the Bank will finance Maruti vehicles through its designated branches up to 90 per cent of On Road cost of vehicle at an interest of 11 per cent per annum (fixed for 3 years). The offer is available across 1,072 Maruti retail and dealer outlets. The bank has also tied up with Swaraj Mazda Limited (SML), a maker of light and medium commercial vehicles, for providing finance to road transport operators for purchase of Swaraj Mazda vehicles through its designated branches, across the country. http://www.business-standard.com/india/news/canara-bank-ties-upautomakers/352560/ | ||
| LUBRICANTS & ALTERNATIVE FUELS Go To Top The Economic Times (Mar 23) Mumbai: Shell may develop lubricants for Bajajs small car, report Sachin Dave & Piyush Pandey. Speaking to ET, Shell Lubricants country head Donald Anderson said: We have a global tie-up with Nissan and most probably our lubricants would be used in Nissan -Renault-Bajaj small car. However, it is still very early and it has not been decided whether we are required to develop a new product for the same. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://economictimes.indiatimes.com/News-by-Industry/Shell-lubricants-for-Bajajs-small-car/articleshow/4302435.cms | ||
| GM, CHRYSLER MAY NEED MORE AID THAN SOUGHT Bloomberg See this story in: Business Standard (Mar 22)
President Barack Obamas auto task force is assessing proposals from GM and Chrysler to decide whether to recommend US assistance or tip the carmakers into bankruptcy. Rattner made the comments yesterday on Bloomberg Televisions Political Capital with Al Hunt, airing this weekend. The task force would give its sense of direction by March 31, Rattner said. The companies have received $17.4 billion since December and asked for the additional $21.6 billion in aid last month, an amount that depends on achieving turnaround plans that were somewhat ambitious, Rattner said. It could be considerably higher, I wont deny that, Rattner said, when asked whether US aid sought could rise. Like all management teams, they tend to take a reasonably, slightly perhaps, optimistic, view of their business. So it could be more, I cant rule that out. Greg Martin, a GM spokesman, said yesterday its restructuring plan had a conservative outlook. The company will continue working with the task force and well keep them informed of our liquidity needs, Martin said in an e-mail. Chrysler said in a statement that its plan is realistic and conservative. With the remaining $5 billion loan request, Chrysler is viable, the company said. Ford Motor Co, the second-largest US automaker, hasnt requested assistance. GM, the biggest, has received $13.4 billion in aid so far and has requested as much as $16.6 billion more. Chrysler got $4 billion and wants $5 billion more. To keep the aid, the automakers must reach cost-cutting agreements. http://www.business-standard.com/india/news/gm-chrysler-may-need-more-aid-than-sought/352538/ DAIMLER TO SELL NEAR $2.7B IN SHARES TO ABU DHABI See this story in: Berlin: Abu Dhabi is poised to become the biggest shareholder in Daimler AG after the German maker of luxury cars, buses and trucks said it would sell nearly euro2 billion ($2.72 billion) in shares to the country's Aabar Investments PJSC. In a statement released Sunday by the Stuttgart-based company, Daimler said Aabar will buy 96.4 million new Daimler shares at a price of euro20.27 ($27.87) each, which is slightly below the euro21.34 shares fetched at the close of trading Friday in Frankfurt. The move will give Aabar a 9.1 percent stake in Daimler, bigger than the 6.9 percent stake held by Kuwait. Aabar's biggest shareholder is the International Petroleum Investment Co., which in turn is owned by the Abu Dhabi government. In December, American International Group Inc. agreed to sell its wealth management arm AIG Private Bank Ltd. to Aabar. "Daimler is an iconic brand and a financially strong company with a reputation for excellence worldwide," Aabar Chairman Khadem al-Qubaisi said in a statement. "We are delighted to have the opportunity to make this investment and are excited by the commercial potential of our partnership." Daimler and Aabar plan to work together on cooperation aimed at developing electric vehicles and materials for auto production as well as establishing a technical training center in the emirate to train students for careers in the automotive industry. "We are delighted to welcome Aabar as a new major shareholder that is supportive of our corporate strategy. We look forward to working together to pursue joint strategic initiatives," Daimler said in a statement. The investment comes at a crucial time for the company and the entire auto industry. Daimler posted a fourth-quarter loss of euro1.5 billion last month - its first in two years - and warned that sales of its marquee Mercedes-Benz cars would decline through 2009 because of the economic meltdown's pinch on the automotive industry. The nearly $2 billion loss for the maker of Mercedes-Benz, Smart and Maybach, as well as trucks and buses, compared to a profit of euro1.7 billion a year earlier. The final figure was dragged down by losses and charges at Chrysler LLC, of which Daimler holds a 19.9 percent stake.
NISSAN PLANNING LUXURY HYBRID IN 2010: REPORT AP See this story in: Hindustan Times, mint (Mar 23) Nissan Motor Co will offer a luxury gas-electric hybrid for the US and Japanese markets next year, Japan's top business daily reported on Sunday, as competition intensifies in the green technology. Nissan's Tokyo headquarters were closed for the weekend. Automakers are generally tightlipped about specific product plans, but Nissan already has shown prototypes of their hybrid models. Nissan has fallen behind Japanese rivals Toyota Motor Corp and Honda Motor Co in developing its own hybrids but has made no secret of its ambitions to play aggressive catchup. It now buys hybrid systems from Toyota for the Nissan Altima hybrid but is promising a vehicle packed with Nissan's own hybrid system by 2010. Nissan is developing a different kind of battery for hybrids from those used by Toyota and Honda. Nissan officials say their battery is better at providing quicker and more power. The Nikkei, which did not cite sourcing, said Nissan's hybrid system will be offered for the luxury Infiniti M, sold as the Fuga in Japan. Nissan plans to expand hybrid offerings to other luxury models and sports cars, the report said. Nissan officials have said the nation's third-biggest automaker is working on a bigger hybrid system than Toyota's popular Prius, the global top-seller among hybrids, and will make hybrid sports cars and luxury models. http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName= http://www.livemint.com/2009/03/22165735/Nissan-planning-luxury-hybrid.html IN CREDIT DROUGHT, US CAR DEALERS BATTLE TO SURVIVE Reuters See this story in: The Economic Times (Mar 23) Lansing(Michigan): Deep in the last stronghold of the struggling US auto industry, Rosario Criscuolo says he owes the survival of his business to Toyota Motor Corp. "If we don't fix this wholesale credit issue, this whole thing collapses," said John McEleney, National Auto Dealers Association chairman, who owns two dealerships that between them sell Toyota, General Motors and Hyundai branded cars. "Every week there are more dealers that are being impacted and going out of business." GERMANY NOT AIMING TO TAKE OPEL STAKE: MERKEL Reuters See this story in: The Times of India (Mar 23) Berlin: The German government is not aiming to take a stake in troubled carmaker Opel, but may give the General Motors' unit aid to help it survive, Chancellor Angela Merkel said on Sunday. RENAULT MOVE REVIVES EU'S FEARS OF PROTECTIONISM AP See this story in: The Hindu Business Line (Mar 22)
If so, EU Competition Commissioner Neelie Kroes warned, Paris could have to scrap and repay a multibillion-euro aid deal for French carmakers that regulators approved only three weeks ago. Kroes' office immediately asked the government of President Nicolas Sarkozy to explain the decision of carmaker Renault SA to move excess production away from its Slovenia plant to a factory outside Paris where 400 new jobs will be created. The announcement by Renault raised concerns about protectionism at an EU summit in Brussels that included the leaders of France and Slovenia. EU and other world leaders have stressed that countries must not resort to economic nationalism in the face of the world economic crisis, a stance the EU affirmed at a meeting of finance officials from the Group of 20 rich and developing countries. "Let us be very cautious about any temptation of protectionism," Slovenian Prime Minister Borut Pahor said, eager to protect the more than 2,400 jobs currently at the Renault plant in Novo Mesto. "We expect that all member states honor this commitment. So no protectionism. No protectionism whatsoever." Renault SA said Friday it plans to create 400 jobs in France by moving production of its Clio Campus model from Slovenia to the French site of Flins northwest of Paris, where currently 3,250 people work. Renault's Slovenian plant of Novo Mesto makes the Twingo and Clio models and is already at full capacity amid rising demand for small, cheaper models popular in dire times. The company says that means no jobs are being lost there by moving production to France. Sarkozy said the decision to add 400 jobs in France -- while not taking away any in Slovenia -- had nothing to do with economic nationalism. "It is exactly what I want," said Sarkozy after the summit. "We can defend production in France without costing one job in Slovenia," he said. "It makes me happy." Not Kroes. She now questions the whole Renault bailout package, which totals euro3 billion ($4 billion) in rescue loans from a government insisting the carmaker must not lay off any workers in France this year or close factories. The EU competition chief was especially angry after hearing French Industry Minister Luc Chatel welcome Renault's decision as a "repatriation of the production" and noted that the government bailout plan was starting to show "results." Kroes told the BBC that Chatel "wrote to me not that long ago, less than a fortnight, that the loan agreement with the manufacturers would not contain conditions regarding either the location of their activities or a preference for France-based suppliers." "Now he is mentioning that it is done. If this is the case, it is illegal aid. If indeed this is the case, we shouldn't allow it and then it has to be paid back." The European Commission vets decisions on state aid to make sure they do not amount to protectionism and that they guarantee a level playing field within the open market of the 27 member states. Britain, long a champion of free trade in Europe, immediately sent a warning against protectionism. "We must remain vigilant at all times to any form or protectionism -- covert or overt," Brown said. Associated Press Writers Emma Vandore in Paris and Robert Wielaard and Holly Fox in Brussels contributed to this report. CHINA WANTS TO RESTRUCTURE AUTO INDUSTRY AFP (Mar 22)
The government's plans for auto industry reform were unveiled two months after it approved stimulus measures including tax cuts and subsidies to help carmakers survive the global economic downturn. The State Council, or cabinet, said in a statement on its website dated late Friday that by 2011, it wanted to cut the number of major domestic automakers, who are responsible for 90 percent of domestic sales and output, from 14 to 10. Under the scheme, two or three companies would be the industry heavyweights, capable of producing more than two million units a year, while four or five others would have annual output capacity of one million units. It named four groups as possible nationwide leaders that should consider expansion through mergers and acquisitions -- FAW, Dongfeng Motor Corp, SAIC (Shanghai Automotive Industry Corp) and Chang'an Auto. SAIC, the nation's largest automaker, merged in late 2007 with rival Nanjing Auto, which owns the MG car brand. China wants to churn out 10 million vehicles in 2009, and has set a target of a 10 percent rise in annual output for 2009-2011. According to the China Association of Automobile Manufacturers, production last year reached 9.34 million units, up 5.21 percent from 2007. In 2008, auto sales growth shrank with an increase of just 6.7 percent, the first single-digit expansion since 1999 in a market used to growth rates of more than 20 percent. But in February, China bested the United States as the world's largest car market for a second consecutive month, with sales up nearly 25 percent from a year earlier, buoyed by the government's stimulus measures. February sales of domestic autos hit 827,600, up 24.7 percent from a year earlier, the official Xinhua news agency reported earlier this month, citing the China Association of Automobile Manufacturers. But analysts say the government's plan may not bear much fruit in the short term, as the mergers process is a complicated one. "It has been the central government's plan to consolidate the auto sector since 1994," said John Zeng, an expert at Global Insight. "But there are more and more players in the market... the structure is complex and it makes consolidation extremely difficult," he said, adding that local governments would be unwilling to surrender jobs in their jurisdictions. Jia Xinguang, of the China National Automobile Industry Consulting and Developing Corporation, agreed. "There are around 180 auto companies, including big and small," Jia said. "The ideal would be to have two or three automakers in China like other countries but it's still impossible at the moment because there are some joint ventures in China." | ||
| ECONOMY & FINANCE Go To Top PTI See this story in: The Hindu Business Line (Mar 23) New Delhi: The new government at the Centre is likely to come out with stimulus measures to boost the economy as well as to sustain the sentiment, an economist with financial services firm Moody's has said. Even if the new government is cash-strapped, more stimulatory measures or supportive steps will be announced. This is needed not just for boosting the economy but also for sustaining sentiment, Moody's economy.com economist Mr Sherman Chan said in reply to an e-Mail query. However, the large public debt burden would constrain the size of any fiscal boost. To boost the economy, the government came out with two fiscal stimulus packages in December and January, which included excise duty reduction and various incentives across the sectors. Besides, as part of the interim budget, the government also announced excise duty and service tax cut. Mr Sherman further said that the RBI might further slash short-term lending (repo) rate by 100 basis points to four per cent by the middle of 2009 as economic conditions remain tough and inflation is falling sharply. With inflation now close to zero, there is a strong case for further interest rate cuts, which are needed to encourage consumption, Mr Sherman said. http://www.thehindubusinessline.com/blnus/01221306.htm
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