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| INDUSTRY Nano base model at Rs 1.34 lakh in Mumbai, Rs 1.23 lakh in Delhi Nano booking to start from April 9 How customers can book their Nano Booking network to span 1,000 cities Nano to boost Indian auto industry: India Inc Nano may fetch resale premium of Rs 30,000 Road Test: Nano second to none! With a 'nano' advertising budget, Tatas go creative Real cost of owning the wonder car Nano gears up for global ride Launch in Europe by 2011, US next in line Nano no ego trip for soft-spoken Tata Will Nano's beam be the light at the end of tunnel for India? Tata Motors to launch electric Indica in Norway later this yr Nano, a car with a personal touch Pantnagar celebrates, ready to get busy Nano a hit? Yes and no say US auto critics Tatas ready for the Nano mad rush Motors to launch electric Indica in Norway later this year Dealers do not see Nano denting 2-wheeler sales Tata Motors to redesign Nano for US market Small car rolls out but mother plant will have to wait Go, get peoples car for a little over Rs 1L Accessories to fuel margins for Tata Motors INTERVIEWS/FEATURES Nano needs some redesigning for US: Ratan Tata 'If Fiat shows interest to partner Nano, we'll encourage' Rs 1-lakh Nano not an ego-trip: Ratan Tata 'Brand Nano doesn't need advertising' Nano is a watershed moment for the automobile industry in India 'We don't bother about Nano or No-No': Mamta Tata Motors: Nano impact short-lived Nano enhances India as small car hub, says Crisil CARS, SUVs, MUVs Renault toes Nissan line, splits ops Renault India head resigns; firm announces rejig at the top COMMERCIAL VEHICLES Nano says tata to truckmaker image Employees help Ashok Leyland save Rs 1.67 cr CONSTRUCTION & AGRI MACHINERY COMPONENTS | ALLIED INDUSTRIES FINANCE & INSURANCE Bajaj Auto Finance buys back debentures LUBRICANTS & ALTERNATIVE FUELS INTERNATIONAL NEWS Abu Dhabi boosts stake in Daimler Sensex scales up by 457 points
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| INDUSTRY Go To Top Prasad Sangameshwaran & Preethi Chamikutty The Economic Times (Web & Print Edition) Mumbai: Who will buy the Tata Nano? If online polls are an indication, a bulk of the buyers are unlikely to be the hum-do-hamare-do families, who were the main inspiration behind the Nano. If online polls at social networking sites are some indication, a bulk of the potential buyers for the Nano are predominantly male. And, they will be less than 25 years. In one online poll, 39% of the respondents felt that the average Nano buyer will be under 25 years of age while 81% agreed that the Nano buyer will be under 40 years. http://economictimes.indiatimes.com/Who-will-buy-the-Tata-Nano/articleshow/4307699.cms Business Standard (Web & Print Edition) See similar story in: The Hindu Business Line (Web & Print Edition), The Tribune (Web Edition), Deccan Herald (Web Edition), The Times of India (Web & Print Edition), The Indian Express (Web & Print Edition), The Pioneer (Web & Print Edition), Hindustan Times (Web & Print Edition), Yahoo India (Web Edition), Asian Age (Web & Print Edition), The Financial Express (Web & Print Edition) Mumbai: The peoples car is finally within reach. Fifteen months after it was unveiled at the Auto Expo in New Delhi, bookings for the Nano, which is set to revolutionise the lower end of the global automotive market, will start from April 9 and end on April 25. Delivery of the cars will begin from July this year. While the base model for the car is priced at Rs 1 lakh (ex-Delhi), the air-conditioned version will cost Rs 1.39 lakh-Rs 1.42 lakh and the deluxe model Rs 1.70 lakh. Speaking to reporters ahead of the cars formal launch at a colourful ceremony at the Parsi Gymkhana, Tata group Chairman Ratan Tata said he would dedicate the car to the common people of India. He also thanked the 500-odd people involved in the project who overcame their initial sense of disbelief to give everybody in Tata Motors a great sense of achievement. Apart from representing the spirit of breaking conventional barriers, Tata said the project made perfect business sense for the company and he "is not in it for any ego trip or philanthropy. The company has so far invested Rs 2,000 crore in the project. Within 60 days of the closure of bookings, Tata Motors will process and announce the allotment of 100,000 cars in the first phase of deliveries, through a computerised random selection procedure. These 100,000 cars will be price-protected till delivery of the cars, though the booking amounts will not bear any interest for the customers. This indicates that the Rs 1 lakh price tag for the basic petrol-driven car will be revised later. The delivery of these 100,000 cars could take a year, as the first batch will roll out from the Pantnagar plant in Uttarakhand, which has a capacity to produce only 5,000 cars a month. The situation will ease only after the companys Sanand plant near Ahmedabad, which will have an initial capacity of producing 350,000 cars per annum, becomes operational early next year. The company has signed an exclusive agreement with the State Bank of India to manage the booking process. While the application forms will be available at a price of Rs 300, Tata Motors has agreements with 15 preferred banks and non-banking finance companies to enable customers to book the car at Rs 2,999 only. The interest rate for financing the cars will be 11.75 to 12 per cent depending on the tenure of the loan, SBI said in a release. Those choosing to pay their entire booking amount, can submit their application forms to SBI through 1,350 notified branches in 850 cites, and also at Tata Motors dealerships, Westside and Croma outlets. The option to submit bookings online is also available at the Nano website. The forms will be available at over 30,000 locations in about 1,000 cities. Applicants have the option to retain their booking deposit even if they do not get allotment in the first phase. They will get interest on their deposit, effective from the date of announcement of allotment of the second phase, at 8.5 per cent for the retention period between one to two years and 8.75 per cent for a retention period of more than two years. Tata said apart from Europe, the company was also planning an upgraded version of the Nano for the US, the world's largest automobile market. The Tata Motors scrip ended 3.20 per cent up at Rs 166.05, but it underperformed the broader Sensex which went up 5 per cent. http://www.business-standard.com/india/news/nano-finally/352763/ http://www.thehindubusinessline.com/blnus/02231902.htm http://www.tribuneindia.com/2009/20090324/biz.htm#1 http://deccanherald.com/Content/Mar242009/scroll20090324126001.asp?section=updatenews http://www.indianexpress.com/news/tata-fulfils-promise-launches-peoples-car-nano/437895/ http://www.dailypioneer.com/164583/Nano-ka-sapna-turns-into-reality.html http://www.hindustantimes.com/redir.aspx?ID=94dc7e09-ef07-46d8-9aac-2d22f6820460 http://in.biz.yahoo.com/090323/50/batcv0.html http://www.asianage.com/presentation/leftnavigation/news/business/nano-makes-big-debut.aspx http://www.financialexpress.com/news/tata-launches-the-nano/438173/2 NANO BASE MODEL AT RS 1.34 LAKH IN MUMBAI, RS 1.23 LAKH IN DELHI PTI See this story in: Business Standard (Web & Print Edition) Mumbai: Tata Motors said its people's car, Nano, will be priced between Rs 1.34 lakh and Rs 1.85 lakh (ex-showroom Mumbai), although the car's claim to fame was its Rs 1 lakh tag. While announcing the prices, Tata group Chairman Ratan Tata said the company has kept the ex-factory (Pantnagar) price of the base model of the Nano at Rs 1 lakh. Yet, customers will have to pay far higher than Rs 1 lakh to own the car. The Nano will have a price tag ranging between Rs 1.12 lakh and Rs 1.70 lakh for the three variants at showrooms at Pantnagar, where it is produced. In Mumbai, the the Bharat Stage III compliant Nano will cost between Rs 1.34 lakh and Rs 1.85 lakh (ex-showroom) and in the National Capital, it will have a price range of Rs 1.23 lakh to Rs 1.72 lakh (ex-showroom) for the three different variants. "Six years ago we made a decision, a decision to conceive and produce more cars that would give the people of India, who rode with their families on two-wheelers, an affordable all-weather transport at a price that is within their reach," Tata said. To book the Nano, customers will have to shell out Rs 95,000 for the base model BS II and III, Rs 1.2 lakh for the mid-range model and Rs 1.4 lakh for the top end all across the country. "We hope this day we will usher in a new form of transport," Tata had earlier told reporters at a conference here to mark the launch of the snub-nosed car that was unveiled in January last year. He said the endeavour was never to build the cheapest car but to provide an affordable form of transportation to the average Indian family. Tata, however, hastened to add that "we made a promise (of a Rs 1,00,000 car) and that we've kept the promise". He told editors earlier in the day that the pricing was not a "gimmick". The low pricing is despite the cost of steel and other materials going up, he said. According to market research firm Crisil, Nano's price reduces the cost of ownership of an entry-level car by 30 per cent and to below three times the cost of owning a motorcycle. "This will make the car affordable to an additional 14 million families, including a section of 58 million two- wheeler owners," Crisil said. http://www.business-standard.com/india/news/nano-base-model-at-rs-134-lakh-in- NANO BOOKING TO START FROM APRIL 9 PTI See this story in: The Hindu Business Line (Web Edition), Daily News & Analysis (Web Edition), Deccan Herald (Web Edition), The Indian Express (Web Edition), Business Standard (Web & Print Edition) Mumbai: The booking of the Nano, the Rs one-lakh people's car from the Tata stable, will begin on April 9 and remain open till April 23. Announcing this ahead of its launch, Tata Group Chairman Ratan Tata told editors that the car, which would have the smallest footprint on the road, will be sold to the first one-lakh buyers at a price to be announced later. The promise that has been made to sell the car at around Rs one-lakh would be kept despite the fact that commodity prices had shot up, Tata said, adding that the fall in commodity prices now may provide some cushion. The delivery of the first lot of Nano cars will begin in early-July, he said, adding that applications for booking of the car would be available in 30,000 locations in 1,000 cities across India. State Bank of India would be the qualified banker for collection of bookings in 850 cities, he said. The car can be booked by just paying Rs 2,999 upfront while the rest can be secured by way of loan, he said. There would be 15 preferred financie rs for the booking whose names would be disclosed in three days. http://www.thehindubusinessline.com/blnus/02231901.htm http://www.dnaindia.com/report.asp?newsid=1241776 http://deccanherald.com/Content/Mar242009/scroll20090324126001.asp?section=updatenews http://www.indianexpress.com/news/nano-booking-to-start-from-april-9/437964/ http://business.rediff.com/report/2009/mar/23/nano-booking-to-start-from-april-9.htm HOW CUSTOMERS CAN BOOK THEIR NANO The Hindu Business Line (Web Edition) See similar story in: Daily News & Analysis (Web Edition) Mumbai: Tata Nano: Now within Reach. This is Tata Motors tag line as it gets set for a marketing blitzkrieg through online gaming and other non-conventional media to retail the peoples car.
Expecting a huge customer demand, way above what it can meet in the near term, the company has entered into an exclusive tie-up with State Bank of India to manage the booking process. There is a 15-day window for booking the Nano, from April 9 to 25. The application forms will be sold at Rs 300 apiece at over 30,000 locations and in about 1,000 cities through Tata Motors dealerships, SBI branches, other preferred financiers as well as outlets of Westside, Croma, the World of Titan and Tata Indicom exclusive stores. Customers can pay the entire booking amount themselves or seek appropriate financing. Tata Motors has entered into agreements with 15 preferred financiers for the Nano booking loan product. The booking product offered by these banks will enable a Tata Nano to be booked by paying an amount starting Rs 2,999 only. Their chosen financier will directly submit their application forms to the State Bank of India on their behalf, said a company statement. Those who choose to cough up the entire amount can submit their application forms to the 1,350 notified SBI branches, Tata Motors dealerships, Westside and Croma outlets.
In addition, the company offers an option to submit bookings online at www.tatanano.com. Within 60 days of the closure of bookings, Tata Motors will process and announce the allotments of 1,00,000 cars in the first phase of deliveries through a computerised random selection procedure. These allotments will be price-protected for the launch prices till delivery of the cars but the booking amounts will not bear any interest for customers. Deliveries of the car will begin in July. Applicants have the option to retain their booking deposit, even if they do not get allotment in the first phase. Those who choose this option will be eligible for interest on their deposit, effective from the date of allotment of the second phase, at 8 per cent for the retention period between one and two years and 8.75 per cent for over two years. Allotment of retainees will be simultaneously communicated along with the allotment of the first 1,00,000 cars. To cash in on the huge interest Nano has already generated, Tata Motors has charted out an innovative marketing strategy that involves unconventional practices in booking, financing, merchandising and advertising. Merchandising The company is ready with a range of merchandise including Nano phone, Nano watch, T-shirts which will be available at dealerships and Croma and Westside outlets. On the advertisement strategy, Mr Rajiv Dube, President, Passenger Cars, said print advertisements will kick off on Tuesday while a lot of publicity would be generated through the Internet. We will be relying more on innovative methods like word-of-mouth publicity, he added. http://www.thehindubusinessline.com/2009/03/24/stories/2009032451980200.htm http://www.dnaindia.com/report.asp?newsid=1241979 BOOKING NETWORK TO SPAN 1,000 CITIES The Indian Express (Web & Print Edition) Mumbai: Anticipating a huge rush, the Tata group has formed an elaborate network of banks, financiers and even its retain chains to manage the bookings of the Nano. State Bank of India, Indias largest commercial bank, has entered into an exclusive agreement with Tata Motors for the management of the bookings of Nano through its 11,111-plus branch network. Besides, Tata Motors Passenger Car dealerships, Croma, Westside and Titan stores all from the Tata stable will also sell application forms and accept bookings from buyers who dont seek bank financing. According to SBI, individuals can either pay the entire booking amount by themselves or seek financing. The SBI booking loan product will enable applicants for booking a Nano by financing 100 per cent booking amount at down payment amounts starting from Rs 2,999. Moreover, for those who seek financing, Tata Motors has entered into agreements with 15 preferred banks and NBFCs for the booking loan product. The chosen financier will directly submit their application forms to the SBI on their behalf. Those who choose to pay their entire booking amount can submit their application forms to SBI in 850 cities and also at Tata dealerships, Westside and Croma outlets, Tata Motors managing director Ravi Kant said. SBI has offered seamless booking loan conversion to a Nano car loan to successful allotees based on easy and attractive eligibility norms. The Nano car loan can be availed up to a maximum period of seven years at interest rates of 11.75 per cent to 12 per cent per annum. Through this tie-up, more than 1,350 branches of SBI would assist in the booking process. Booking forms would be distributed and filled-up application forms with booking amount will be collected through more than 1,350 branches in 850-plus cities, SBI said. The bank will be marketing the application forms from its branches, and marketing teams would provide information to customers and generate leads. SBI will provide end-to-end processing with a bouquet of retail products for the bookings including sale of Nano booking forms, booking loans, acceptance of booking amount at designated branches, Nano car loans and refund to unsuccessful applicants. The sale of application forms and acceptance of booking amount at SBI branches will start from April 9 till April 25. The lender will be using its SBI FAST cash management product, which is suitably poised to handle bulk centralised collection and payment services. http://www.indianexpress.com/news/booking-network-to-span-1-000-cities/438182/ NANO TO BOOST INDIAN AUTO INDUSTRY: INDIA INC PTI See this story in: Business Standard (Web & Print Edition) New Delhi: The industry welcomed the commercial launch of world's cheapest car, Nano, by Tata Motors and said it will boost domestic automobile industry and redefine entry point price for the entire global passenger car industry. "Nano has shown what India can achieve in terms of innovation as also our capability in frugal engineering and design," industry body Ficci said. It would also set precedent for other companies and service providers to take advantage of the huge potential that the "bottom of the pyramid" segment offers, Ficci President Harsh Pati Singhania said. Assocham Secretary General D S Rawat said, "It will force other car manufacturers in the smallest segment to introduce such products at lower price ranges, which will be a good sign of growing competition." However, he said the people's car would put Indian roads under severe pressure to accommodate automobiles' growth. "India's national highways and roadways are still not adequately geared up to accommodate four-wheeler growth... The roads will have to be widened...," Rawat said. CII said the long-awaited world's cheapest car would boost optimism in the market as demand is expected to skyrocket. http://www.business-standard.com/india/news/nano-to-boost-indian-auto NANO MAY FETCH RESALE PREMIUM OF RS 30,000 Surajeet Das Gupta and Swaraj Baggonkar Rediff India (Web Edition) New Delhi, Mumbai: With the Nano, the world's cheapest car, ready for launch on Monday, dealers expect early-bird owners to command a hefty premium of Rs 30,000 because of the initial shortage in supply. Tata Motors dealers say the company would have to supply between 250,000 and 500,000 cars to meet the 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 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://business.rediff.com/report/2009/mar/23/nano-may-fetch-resale-premium.htm ROAD TEST: NANO SECOND TO NONE! Bijoy Kumar Y Business Standard (Web & Print Edition) Mumbai: Trust me, the last time I felt the same sense of occasion before driving a car, it involved a screaming yellow Lamborghini. The colour remained identical sunshine yellow and like the Lamborghini, the engine was mounted at the back, but there were more butterflies in my tummy as I cranked the Tata Nano to life. You see, with the Lambo, you expect brutal power and performance. But with the Nano... well, I did not know what to expect. The anticipation, the endless lowdown from the rumour mills, the hushed conversations with contacts and a zillion questions from friends and relatives later, I was about to drive the Nano. The two-cylinder 624cc engine hissed like a modern scooter before waking up and settling to an idle. The cable-linked gear lever helped me select first and presto, we had motion! First things first, the Nano does not look or feel like a very cheap car. It is a very thoughtfully designed piece of kit with an agreeable level of fit and finish. Nor would you expect the kind of space it has in its interior. The mono-volume (single box) construction with wheels at extreme ends has liberated a great deal of space it feels more spacious than the Maruti Suzuki Alto or the M-800 and getting in and out of the car is a breeze, even at the back. You sit taller than say, in an Indica, and you get a commanding view of the road and the surroundings thanks to a larger greenhouse. No, you certainly dont get claustrophobic in there. First gear takes takes you to 33 kph and a quick shift to second is capable of showing you almost 60 kph (in 8.66 seconds). Mind you, there are no excessive vibrations or loud noise accompanying the progress. The gutsy little 35 bhp engine surprises you with its energy levels though. Like with all new concepts, there are a few things that you have to come to terms with in the Nano. Like the single blade wiper, the fact that the tyre sizes are different for the front and rear, that the engine cannot be accessed from outside (you need to open eight wing nuts inside the car to do that), that the spare tyre is up front, you fill fuel after opening the bonnet and so on. Plastic quality is passable, but the cloth upholstery in the LX version we drove was very good indeed. Instrumentation inside the car consists of a speedo and a digital fuel gauge that also houses an odometer and nothing more. All of that is stacked in the middle so that it is easier to make a left-hand drive version as and when the Nano goes abroad. Frugal engineering continues with power window buttons housed in the centre console instead of the doors. By third gear you have reached 90 kph and the fourth gear gets you to the three-digit figure. Zero to 100 kph in 30-odd seconds may not trouble the Lamborghinis of this world, but it is the manner in which the Nano achieves its top speed of 106 kph that surprised me. The engine is spinning away lazily at these speeds it is not stressed and that means longer engine life. While you use only 50-60 per cent of the performance of any other modern car inside city limits, Tata Motors is giving you only 70 per cent and nothing more. Still, the Nano is perfectly driveable in traffic and gets off signals without being passed by other vehicles except 21-year olds on Bajaj Pulsars. Tata Motors expect a mileage of 20 kpl with a bit of highway use thrown in. Congested traffic might bring the figure down by 10-15 per cent. I was one of those who doubted the dynamic capabilities of the Nano when I saw it at the Auto Expo in January 2008. After all, it is a tall car with a small foot print and that does not normally agree with the laws of physics. Now throw the engine at the back end of a car and give it a 42:58 weight distribution and you are asking for trouble. Or so I thought. The Nano cannot be flipped by even spirited driving. As one of the Tata engineers said as a journalist was going a bit too fast at the Tata Motors test tracks skid pad, The Nano is quite idiot proof. Sure it is. To begin with, we are not dealing with speeds of a Lamborghini in any case. The different sized tyres, independent suspension at the four corners and fine-tuning of tyres and dampers have resulted in a car that is stable throughout the speed range. A clever bit of engineering ensures that your Nano cannot exceed 105 kph in forward and more than the desirable speed in reverse; this is done by cutting the fuel flow to the engine. A masterstroke of nannying for the Nano indeed. The brakes of the Nano are adequate to stop the car, but disc brakes up front would have been welcome sure, it would have added to the cost but hey, even bicycles have disc brakes these days! Also disappointing is the lack of a left-side rear view mirror every motorcycle sold in India offers that. What is important is keeping the price minimum over the next few years. The moment it gets any closer to mainstream cars as we know them, the equation changes since most customers would want maximum car for their money. http://www.business-standard.com/india/news/road-test-nano-second-to-none/352658/ The Indian Express (Web & Print Edition) Mumbai: Good Afternoon Mamata Banerjee, boomed Ratan Tata on Monday as the chairman of Tata Motors expressed his feelings towards the Trinamool Congress leader at the launch of Tata Nano. The peoples car which was promised to be offered at Rs 1 lakh will be available in 3 variants with prices ranging between Rs 1.23 lakh and Rs 1.85 lakh (ex-showroom in Delhi and Mumbai). The car which costs Rs 1 lakh (ex-factory excluding transport cost and VAT) and Rs 1,12,735 (ex-showroom) in Pantnagar (Uttarakhand) where its plant is located has a fuel efficiency of 23.6 km per litre under mandated test conditions, said the company. Officially launching the car in Mumbai, Tata said it was a mixed feeling as at the outset he was happy to launch the companys most awaited product, but he also felt sad as his promise of contributing to the industrial progress of West Bengal could not be fulfilled. Nano was conceived six years back and, I am very happy to launch the vehicle nine months before the Sanand (Gujarat) facility becomes fully operational, said Tata. The Nano project had to be shifted from Singur to Sanand after vehement protests by the Trinamool Congress demanding the company return to farmers the land on which the project was to start. The company spent around Rs 2,000 crore on the Nano project, said the companys managing director Ravi Kant. Tata Motors is using its Pantnagar facility in Uttarakhand for producing the car. This year we will produce 50,000 cars from the Pantnagar facility and, as the Sanand facility comes on stream by the end of this year, we will be able to produce 2.5 lakh cars which can be ramped up to half a million per year, said Kant. The cars will be on display across the country at Tata Motors Passenger Car dealerships (TMPCDs) and other authorised outlets from April 1. Considering the huge demand that Nano has generated the company has decided to use a booking mode for buying the car. Tata Motors has entered into an exclusive agreement with State Bank of India (SBI) to manage the booking process. The sale of application forms and acceptance of booking will start from April 9 and continue till April 25. The application forms will be available for Rs 300 at over 30,000 locations in about 1,000 cities through TMPCDs, SBI and its branches, 37 outlets of Westside, 29 facilities of Croma, 222 World Of Titan outlets and many Tata Indicom exclusive stores, Kant said. Customers seeking financing can choose from 15 banks and NBFCs with which Tata Motors has tied up. The car can be booked at amounts starting from Rs 2,999 at any of these financiers who will then forward the applications to SBI. Those preferring to pay their entire booking amount can submit their application forms to SBI and also at TMPCDs, Westside and Croma outlets. Within 60 days of the closure of bookings, Tata Motors will process and announce the allotment of 1 lakh cars in the first phase of deliveries through a computerised random selection procedure, the company said. The booking charge for the Standard, CX and LX variants would be Rs 95,000, Rs 1.2 lakh and Rs 1.4 lakh respectively. Making some changes to the original idea of providing a Rs 1-lakh car to customers, Tata said that the scenario in the past few years has changed a lot with commodity prices increasing and the project having to move from where it was originally started. One lakh allotments will be price protected for the launch prices till delivery, but booking amounts will not bear any interest for customers. Deliveries will commence from July 2009, said the company. Those not included in the first 1 lakh will have to pay the prevailing market price of the car at the time of delivery unlike the lucky 1 lakh customers who will get it at the launch price. However, they will have the option to retain their booking deposit. http://www.indianexpress.com/news/nano-makes-dream-debut/438175/0 WITH A 'NANO' ADVERTISING BUDGET, TATAS GO CREATIVE Sapna Agarwal Business Standard (Web Edition) Mumbai: If the Nano is all about innovation, the advertising strategy isnt far behind. Group Chairman Ratan Tata told reporters that the company was looking at unconventional mediums like web search, viral marketing and innovative public relations-driven campaigns, where the news in brief is called Nano news in some papers and television advertisement breaks are called Nano breaks. There will be many more such innovations. Tata Nanos print campaign was unveiled. Unlike most car launches, this one will not be supported by a TV campaign. The company booked all web search engines to serve pop-up ads on Monday evening (at the time of the official launch) encouraging internet users to book the car. Other initiatives include online games, merchandise and accessories like Nano branded T-shirts, key chains, teddy bears and watches. We have launched Tata Nano-related merchandise for people awaiting the car, said Ravi Kant, managing director, Tata Motors. The car is expected to hit the roads by July. And going by the success of the accessories line in Geneva, where Nano-related accessories were unveiled, it will be a big hit, said experts. The unconventional advertising strategy has also resulted in huge savings for the company, as the Nano has become a household name much before its launch. The company has already got publicity worth over Rs 500 crore due to its public relations campaign, where it made global news due to the fact that it is an Indian manufacturer building the worlds cheapest car. And also for the wrong reasons, like the Singur controversy, said an advertising professional who works on Chevrolet Sparks creative account and adds, Now, the most critical task for the company is to deliver and sustain the hype that it has created. The company will also save on account of not running a TV commercial. Typical car launches have advertisement budgets of Rs 20-30 crore, with a large percentage of this devoted to TV. For instance, the Mahindra Xylo had a budget of Rs 15-18 crore for the first six weeks of the cars launch, said Joe Thaliath, chief operations officer, Interface Communications, the creative agency for Mahindra Xylo. The size of the Tata Nano account is estimated at no more than Rs 5 crore. Mahesh Chauhan, group chief executive officer, Rediffusion Y&R, the creative agency for the Tata Nano says, We are certain that this business will be a large account over time. http://www.business-standard.com/india/news/withnano-advertising-budget- REAL COST OF OWNING THE WONDER CAR Gouri Agthey Athale The Economic Times (Web & Print Edition) Pune: The Nano may cost Rs 1 lakh but how much will you have to cough up to run the car? Two-wheeler companies have been saying that the running cost will differentiate the Nano from a premium motorcycle brand. ET worked out the math. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://economictimes.indiatimes.com/Real-cost-of-owning-the-wonder-car/articleshow/4307637.cms NANO GEARS UP FOR GLOBAL RIDE LAUNCH IN EUROPE BY 2011, US NEXT IN LINE The Telegraph (Web Edition) See similar story in: Business Standard (Web & Print Edition), Yahoo India (Web Edition) Mumbai: After the big-bang commercial launch of the Nano in Mumbai, Tata Motors is drawing up ambitious plans for an international rollout of the low-cost small car. The Nano is expected to hit Europe followed by the United States in the next few years. Tata group chairman Ratan Tata said, Tata Motors will be able to cater to the European market by 2011 and it will take three years for us to come up with the options that the US market would like. This version will meet all the requirements needed by the US market. The emission and safety features will be compliant with the standards in Europe. The Nano in Europe will have a more powerful engine, airbags and other safety features. Tata said the global slowdown had improved the prospects for the low-cost cars. However, the Tata group chairman clarified that the Tata Nano Europa will not be a Rs 1-lakh or a $2,500 car. Earlier this year, the Tata Nano Europa, a version created for select international markets, was displayed at the 79th Geneva Motor Show. Tata Motors also showcased the Tata Prima, a concept luxury sedan, and the Tata Indica Vista EV, an electric vehicle based on the award-winning new generation Tata Indica Vista. Tata clarified that Tata Motors was not planning to launch the low-cost car in big markets like China. Tata Motors, however, is interested in other international markets like Africa where it already has a presence in some parts of the continent. Tata said the company was expecting its rivals to respond to the threat from the Nano in different ways. Two-wheeler makers would probably come up with incentives. Other car makers would also drive down their prices, he said. But the biggest threat could come from car makers like Renault which have announced plans to develop a low-cost car along with the Bajaj group. Share surge Shares of Tata Motors, which surged over 8 per cent in morning trade, shed gains to settle up 3 per cent on the BSE. The scrip closed at Rs 166.05 on the BSE, after touching a high of Rs 173.85. http://www.telegraphindia.com/1090324/jsp/business/story_10715472.jsp http://business.rediff.com/report/2009/mar/23/tata-nano-may-go-to-us-in-3-years.htm http://in.biz.yahoo.com/090323/137/batcry.html NANO NO EGO TRIP FOR SOFT-SPOKEN TATA Reuters See this story in: The Economic Times (Web & Print Edition) Mumbai: Ratan Tata must be hoping Monday's launch of the Nano, the world's cheapest car, marks a change in fortunes for Tata Motors and the broader Tata group after a difficult second half of 2008. Less than three months after unveiling a vehicle that would revolutionise the industry by making cars affordable to most, Tata Motors agreed to buy the luxury Jaguar and Land Rover marques for $2.3 billion in last March. http://economictimes.indiatimes.com/Nano-no-ego-trip-for-soft-spoken-Tata/ WILL NANO'S BEAM BE THE LIGHT AT THE END OF TUNNEL FOR INDIA? The Economic Times (Web & Print Edition) Mumbai: At a Motors on Monday launched the Nano the history-making small car an event which many believe will mark the start of a transportation revolution not just in India, but in other emerging markets by making a four-wheeler affordable to millions who could at best buy a two-wheeler. The significance of the event was not lost on the worlds media which turned out in droves to attend the numerous events through the day, intended to mark the formal unveiling of the worlds cheapest car. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://economictimes.indiatimes.com/News/News-By-Industry/Auto/Automobiles/ TATA MOTORS TO LAUNCH ELECTRIC INDICA IN NORWAY LATER THIS YR PTI See this story in: Business Standard (Web & Print Edition) Mumbai: The electric Indica would be launched in the later-half of this year in Norway, Tata Group Chairman Ratan Tata told editors after announcing the booking date for their small car, Nano. When asked whether this electric Indica would be launched in other European countries too, Tata said the problem with electric cars is that of limited availability of lithium batteries. "This is a limiting factor," Tata said, adding that the availability of this electric car would for now be limited to Norway only. http://www.business-standard.com/india/news/tata-motors-to-launch-electric- Business Standard (Web Edition) Mumbai: The Tata Motors website, the online enquiry and booking location for the Tata Nano crashed, following over 40 million hits. There was an unprecedented traffic flow of around 40 million and the website crashed for sometime. It was restored later, sources told Business Standard. This kind of a response was not expected and the company was not geared up for this, the source added. A company spokesperson also confirmed the development, but added that the website was immediately restored. The website had put up information on Tata Nano, the application forms for booking, financing details, dealer locations and pictures of the car on its website. http://www.business-standard.com/india/news/tata-motors-website-crashes/352750/ Business Standard (Web & Print Edition) Mumbai: By showing a European version of the Nano (very imaginatively called er Europa) at the Geneva Motor Show in March, Tata Motors was sending a strong statement about the safety features incorporated into the Nano body shell. The right place to begin when we are talking about the safety of the Nano should be the body shell. Unlike conventional cars, the Nano is not built as a body on chassis vehicle. Nor is it built like most modern cars as a monocoque. Instead, a combination of a space frame and a monocoque is employed to ensure that the resulting mono-volume body-in-white (the shell minus bonnet, doors and bumper, etc) combines the advantages of both. This shell makes the Nano inherently safer than a simple monocoque. At this point, we would like to point out that using an extruded aluminium bonded chassis as in the case of the Mercedes-Benz Smart would have been prohibitively expensive if safer for the Nano application. The Nano is developed to meet all the safety features that are applicable for passenger cars in India which is not saying much. What we like is the fact that the car will be able to meet the upcoming safety norms too. Current norms stipulate that the cars sold in India should meet norms set for full frontal crash, head impact on steering wheel, body block impact on steering system and seat belt anchorage strength, etc. In addition to these regulatory tests, the Nano was also subjected to roof crush test (for protection in rollovers). The new norms will see offset frontal impact as well as the critical side-impact tests and Tata engineers are confident of meeting these criteria. The Nano structure also features crumple zones in the front, strong doors to resist side intrusion and a cabin that maximises survival space in the event of a collision. Again pointing at the export possibilities, the exterior and interior are designed to be smooth and rounded with no sharp features to reduce risk of injury to pedestrians and occupants (very important to meet the strict European guidelines) and earn a respectable rating at the Euro NCAP as and when Tata Motors wants to seek it. The Europa will also feature an Electronic Stability Programme and ABS and these may filter down to India albeit at a price. Extensive computer simulation based on Finite Element Based Methods has been extensively used during the development phase of the Nano. The passenger compartment has been reinforced to minimise deformation and the doors are engineered so that they dont get jammed during the crash. The roof has been strengthened to prevent it from collapsing and thereby resulting in the loss of survival space for the occupants. The Tata Group has a great deal of expertise when it comes to automotive software development (ask the Ferrari racing team!) and developing a state-of-the-art ABS and ESP for the Nano shouldnt be a worry at all. And we are certain that in the near future, the Nano will get these safety bits. But what worries us though is the lack of left-side rear view mirrors on all the Nano models. It wouldnt have cost a lot more, and come to think of it, all two-wheelers in India feature two mirrors already! http://www.business-standard.com/india/news/how-safe-isnano/352655/ Hindustan Times (Web & Print Edition) The Nano has been the most awaited car in Indian history and could be the most important too. The well-publicised delay in bringing it to the market (after the Singur imbroglio) has only heightened the sense of anticipation. Questions have been flying thick and fast. Does Tatas little Nano drive and feel like a real car? Can it provide the comfort, performance and economy expected of it? Or has Tatas self-imposed price target of Rs 1 lakh made it too much of a compromise? The Nano can do U-turns where an 800 would have to reverse. On the highway, however, the Nano runs out of steam and beyond 80kph progress is painfully slow and overtaking manoeuvres need serious planning. What is impressive is this little cars stability and its ability to tackle potholes and rough roads with astonishing ease. In fact, its the robustness of the body and the ability to take heavy loads that makes the Nano stand out from other small cars twice the price. http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName= NANO, A CAR WITH A PERSONAL TOUCH Hindustan Times (Web & Print Edition) The Nano not only comes cheap, it can be customised to suit your needs and lifestyle as well. The reengineered little car has its own website (Tatanano.com) that would help customers add features according to their budget. What can be customised? If the website is anything to go by, it could be the entire car. There is a range of body kits, along with a choice of decals such as front and rear bumpers and mud-guards, alloy wheels, music system, colours plain or metallic. And even as the customisation is being carried out, the price of the customised car is displayed on the website. The customisation option is available across dealerships too. The company is also launching a host of merchandise, which would be available at group stores such as Croma and Westside, as well as dealerships to add the personal touch. Merchandise such as T-shirts, watches, phones and key rings, to name a few, would be available at various outlets. The Nano phone would be available at all Tata Indicom outlets and the Nano watch can be bought at Titan showrooms, said Rajiv Dube, president (passenger cars), Tata Motors, at the launch. http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName= PANTNAGAR CELEBRATES, READY TO GET BUSY Hindustan Times (Web & Print Edition) The Nano launch has put a smile on Uttarakhand officials faces. Tata Motors is expected to roll out most of the Nanos from its factory in Pantnagar, which is expected to net the state Rs 120 crore in estimated annual revenue. Tata Motors has 1,000 acres at Pantnagar provided by the state. Another 55 acres were given to it last year on the companys request. Sources said the additional land was being used to build living quarters and to set up a distribution arm Tata Motors Distribution Company Ltd. P.C. Sharma, principal secretary (industries), told Hindustan Times that the Rs 120 crore would come in the form of value added tax. Reports suggest that Tata Motors would manufacture 40,000 to 50,000 cars in Pantnagar and Pune every year. Presently at Pantnagar, Tata is manufacturing its ACE mini trucks and MAGIC passenger vehicles, apart from Nano. Tata Motors, said state officials, promised to upgrade the Pantnagar facility. We had earlier suggested that the Tatas set up a permanent facility at Pantnagar for the Nano, and they have agreed, said Sharma. http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName= The Times of India (Web Edition) When it comes to pleasing the fair sex, Nano seems to be a definite winner. The Nano is a perfect blend of spunk and chic... and with its ultra cool shape girls will definitely switch to cars from dolls. Available in bright colours like the modish yellow, the Nano is certainly quite hard to resist. NANO A HIT? YES AND NO SAY US AUTO CRITICS Chidanand Rajghatta The Times of India (Web Edition) Washington: Tatas Nano has got mixed reviews from Motown, with US auto critics acknowledging its surprisingly comfortable and spacious interiors (the key metric for a small car), but drawing up a checklist of drawbacks, including its dodgy sound and speed. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://timesofindia.indiatimes.com/Nano-a-hit-Yes-and-no-say-US-auto-critics/ TATAS READY FOR THE NANO MAD RUSH The Times of India (Web & Print Edition) Mumbai: "The promise is kept,'' is what Tata Group chairman Ratan Tata said while announcing the Rs 1 lakh ex-factory price of the Nano in Pantnagar (Uttarakhand), the area from where the company will roll out the budget car till the Gujarat plant gets ready. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://timesofindia.indiatimes.com/Tatas-ready-for-the-Nano-mad-rush/articleshow/4307351.cms Daily News & Analysis (Web Edition) Mumbai: Tata's Nano looks fabulous. Much like the Beetle and the Fiat 500, the latest people's car is a small car of such appealing lines that its happy countenance is sure to transcend your financial ability. It can appeal to almost everyone. But unlike that cheery exterior, the interiors are simple and functional. The centre-mounted instruments look good and are easy to read as well. The deluxe version driven by Overdrive had full fabric seats, a three-spoke steering wheel with a soft-touch plastic rim, a two-tone dashboard and very good fit and finish. But what surprised us is just how much space there is. The rear-mounted engine releases a massive amount of space and a 5 ft 10-inch driver can sit normally with a six-foot passenger behind him with no trouble at all. The comfortable seats are further helped by the capable suspension. The front McPherson struts and the semi-trailing arm rear suspension do a good job. The Nano's small wheelbase does affect the ride quality, but it feels progressive, and no sharp jolts are transmitted into the cabin. That said, the Nano is actually good fun to drive. It handles like an enthusiastic small car and one is, frankly, surprised at how enthusiast-friendly the driving character really is. The engine is another surprise. It's adequately quiet with very little vibrations entering the cabin. And it goes! The 624cc all-aluminum, parallel-twin petrol engine makes 35PS of power at 5,250rpm and a max torque of 48Nm between 2,500 to 4,000rpm. Weighing just 600kg unladen makes a big difference to the performance of the car. The Nano will get to 60kmph in a respectable 9.8 seconds, and at 105 kmph the limiter will cut in. The Tata Nano is only 3 seconds slower to 100 kmph than the Maruti 800, and it feels peppy and eager to drive. The slick-shifting, four-speed manual gearbox does its bit to keep the engine hard at work. The 180mm drums at front and rear are adequate on the face of it and, except for the basic version, the other two versions get boosters as well. The Nano feels a little unsettled under hard braking, but that's about the only obvious negative point of the car. Reliability will be borne out in time, but with three million testing kilometres logged, there should not be any problems. The engine has 10,000 km service intervals - like any normal passenger car engine and Tata Motors is so confident that they've deliberately made it difficult to get to the engine so that the cover is not opened and closed regularly (or improperly) which can lead to noise and heat entering the cabin. So, is the Nano worth the money? This is a proper, genuine car in every sense of the word. It looks lovable, it is huge fun to drive in the city darting between rickshaws, cars and buses and it can seat four in comfort. Crucially, there are no visual or external signs of cost-cutting, save for the omission of a left-hand side wing mirror and that's a big plus point which will make the Nano appeal to a cross section of the buying public. Plus fuel consumption is claimed to be 23.5 kmpl, while emissions are very low at under 110 gm/km. Without a shred of doubt this is the most impressive car to sport the 'Tata' logo on its nose and the competition should certainly be very worried. In fact, it makes perfect sense for anybody, irrespective of social strata, looking for a cheap city runabout. What Tata Motors have achieved is truly extraordinary - the impossible, as the world put it - and is something every Indian can be rightfully proud of. http://www.dnaindia.com/report.asp?newsid=1241978 MOTORS TO LAUNCH ELECTRIC INDICA IN NORWAY LATER THIS YEAR PTI See this story in: The Hindu Business Line (Web Edition), The Tribune (Web Edition) Mumbai: Tata Motors said on Monday said that it plans to launch indigenously-developed electric Indica in Norway later this year. The electric Indica would be launched in the later-half of this year in Norway, Tata Group Chairman Mr Ratan Tata said after announcing the booking date for their small car, Nano. When asked whether this electric Indica would be launched in other European countries too, Tata said the problem with electric cars is that of limited availability of lithium batteries. This is a limiting factor, Tata said, adding that the availability of this electric car would for now be limited to Norway only. http://www.thehindubusinessline.com/blnus/02231920.htm http://www.tribuneindia.com/2009/20090324/main6.htm DEALERS DO NOT SEE NANO DENTING 2-WHEELER SALES The Hindu Business Line (Web Edition) New Delhi: Just hours before the Nano was officially launched, it was business as usual at two-wheeler dealerships of Hero Honda and Bajaj. Two-wheeler dealers exuded confidence that the worlds cheapest car would have no immediate impact on their sales. The volume of 50,000 units of Nano in the first year is too insignificant to impact motorcycle sales in the country. While it could create demand in the rural areas, in the city traffic we do not see any major shift in customer preference, said Mr Prem Bagga, North Chairman and President, Automobile Dealers Association. Though the price difference between the entry level bikes and the Nano is wide, dealers also ruled out the possibility of premium bike customers of models such as Pulsar, Karizma (Rs 50,000-75,000) shifting to the Nano. Price gap Customers who buy higher cc bikes are prospective customers even for premium cars. So we dont think this segment will shift to the Nano, said a Hero Honda dealer. According to a Bajaj dealer, The price gap between the entry level bike and the Nano is wide. Even the 100 cc bike segment constitutes the largest base of motorcycle sales. Despite the expectation that these customers will upgrade to higher cc bikes, this has not happened, said a city-based Bajaj dealer. Customers reluctance Prospective customers at the dealerships were also yet to catch on to the Nano mood. For some it was the city traffic that made them stick to their decision of buying a bike. Others felt that the Nano was still being offered at double the cost as it was not as fuel efficient as the two-wheeler. Mr Ram Pravesh, a cable operator with two kids has just bought a Hero Honda Karizma. When asked if he regretted his decision of buying the bike when he could purchase a Nano with slightly more cost, he said, I dont regret my decision, though I have a desire to buy a car. And with the little extra money at which the Nano comes, who will not prefer to go for it? But then this bike will cost me Rs 50,000. I get a mileage of 50 km a litre. Nano will give me 25 kmph, he said. I have heard that the Nano is being launched in Mumbai. But with city traffic, I prefer my bike, said Wasid, who works in Okhla and had visited the dealership to complete the final documentation process for his Rs 60,000 Bajaj Pulsar. http://www.thehindubusinessline.com/2009/03/24/stories/2009032451970200.htm TATA MOTORS TO REDESIGN NANO FOR US MARKET The Hindu Business Line (Web & Print Edition) Mumbai: Tata Motors plans to re-design the Nano for the US and launch it in the biggest car market in the next three years or so. Given the present indications of buying preferences in the US, we felt that we could further develop the European version for the US, said Mr Ratan Tata, Chairman, Tata Motors Ltd. He said the car would have to undergo some modifications to meet the safety and emission requirements of the US and if the pricing was right, the company would launch it in the US. Mr Tata and other senior Tata Motors officials addressed the media at the packed Crystal Room at the Taj Hotel, discussing various aspects of the car. Earlier, Mr Tata had a lunch meeting with senior editors from across the country. With a battery of photographers, both from the Indian and foreign media clicking away, Mr Tata and Mr Ravi Kant, Managing Director, Tata Motors, fielded a range of questions on the car, the challenges the company faced and the road ahead. Nano Europa in 2011 Nano Europa, the European version of the small car that was showcased earlier this month at the Geneva Motor Show, will be launched in Europe in 2011. It would meet all emission and safety requirements, probably with a more powerful engine than that being fitted in cars to be sold in India. Would the company consider launching the car in China, yet another large market? Mr Tata said China had not been considered because the company had its hands full meeting the requirements of the Indian market. To a question, Mr Tata said the company had the shell of a plant at Singur in West Bengal and was in the process of moving it. He hoped that Tata Motors would still be present in east India. (Tata Motors had selected Singur, near Kolkata, as the first location for the plant to make the Nano and had to pull out due to protests spearheaded by the Trinamool Congress chief Ms Mamata Banerjee, over land acquisition and payment of compensation.) Industry experts believe that Tata Motors would use the upcoming Sanand facility in Gujarat, which is slated to go into production early 2010, as the mother plant and use satellite plants to assemble the Nano. The Singur site could be one such satellite plant. New variants He said the company was looking at new variants of the Nano. We are looking at how to expand the platform that we have for a wider set of range in the next three years. This would include a diesel version of the car. On the overall automobile market, Mr Kant said there was a secular upward trend in the market, with vehicle sales increasing month on month since December 2008, but still nowhere near a year ago period. The gap was narrower for passenger cars than for commercial vehicles. However, with huge sums of money being pumped into infrastructure development, the company expected commercial vehicle sales too to pick up. http://www.thehindubusinessline.com/2009/03/24/stories/2009032452000200.htm SMALL CAR ROLLS OUT BUT MOTHER PLANT WILL HAVE TO WAIT The Financial Express (Web & Print Edition)
According to locals, theres been frenetic activity to and from the site over the past few days. Machines and equipment is coming in, reveals a villager. Adhering to their schedule of rolling out the Nano by the end of 2010, executives of Tata Motors have been working round the clock ever since the inking of an MoU between Gujarat chief minister Narendra Modi and Tata group relocating the Nano project from Singur in West Bengal to Sanand. Highly placed sources close to the project disclosed that the construction of ancillary plant buildings are in progress, and are expected to be completed within the next couple of weeks. A drive down the road where the plant is coming up bears testimony to this as beyond the barbed wire fencing, several sheds have come up made of pre-engineered steel structutres. Phenix Varco Pruden, pre-engineered steel structure building manufacturer, has bagged the Rs 50 crore ($9.66 million) contract for constructing the ancillary plant buildings. As much as 4,000 tonne of steel components, designed with a heavy load bearing capacity with a mainframe structure to support the full load are expected to be used for construction of these buildings. Construction of the power train facility, press shop, and assembly line is in progress. If all goes as per schedule, critical infrastructure is expected to be in place by November this year. Sources said Tata Motors is using multiple vendors to expedite the progress of the project. Among the tasks which have already been completed are fencing, construction of inner roads, compound walls and pre-fabricated sheds. Work on the main building has also commenced. The work of laying underground cables for broadband connectivity is also in progress near the site. The state government has also initiated survey of widening of roads leading to the site from Sanand-Viramgam Highway. Tata Motors has roped in its leading private shareholder, Shapoorji Pallonji & Com (SPCL) for construction of the Nano plant on 1,100 acres of land, which once belonged to Anand Agiculture University. http://www.financialexpress.com/news/small-car-rolls-out-but-mother-plant- The Times of India (Delhi Print Edition) So how much revenue will the cash-strapped Tata Motors generate from the little Nano? Considering that the first allotment of Nanos is being pegged at 1 lakh units, a back of the envelope calculation shows that company will garner over Rs 1,100 crore if we consider only these applicants. While a standard version will cost Rs 95000 in booking amount, the middle version CX will require Rs 1.2 lakh and the top-end, 1.4 lakh. For number crunching, we have taken an average of these prices (around Rs 1.18 lakh) and multiplied the figure with 1 lakh units. Tata Motors is expected to receive applications much beyond the one lakh figure, all of which will increase the amount the company generates. Tata Motors will have this money for at least 60 days by the time it decides on the first 1 lakh allotees. Moreover, it will also get money from application forms that are priced at Rs 300 each and is non-refundable. The company, though, will sell these forms along with a range of offers from various Tata group companies. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" GO, GET PEOPLES CAR FOR A LITTLE OVER RS 1L The Times of India (Delhi Print Edition) Mumbai: The promise is kept today, is what Tata Group chairman Ratan Tata said while announcing the Rs 1 lakh ex-factory price of the Nano in Pantnagar (Uttarakhand), the area from where the company will roll out the budget car till the Gujarat plant gets ready. The Nano, for which bookings open between April 9 and 25, will be available in three variants with the top-end model carrying features like front power windows, air-conditioning and central locking. In terms of ex-showroom cost (factory cost plus VAT and transportation charges), the base or standard version will cost Rs 1.34 lakh (ex-showroom Mumbai), the middle version (CX) Rs 1.6 lakh and the topend (LX) will come for Rs 1.85 lakh. The respective tags in Delhi are Rs 1.23, Rs 1.48 lakh and Rs 1.72 lakh, Tata said, adding that Mumbai was a little expensive due to higher cost of transporting to city. Whoever wins the lottery will have to pay registration charges (varies in different states) and insurance cost (around 4%) over and above this cost. The booking amount on the three variants would be Rs 95,000 for the base variant, Rs But you will not be able to steer the Nanos wheels as deliveries begin only in July. Elaborating on the booking process, the company said the application form will cost Rs 300 and booking can be done from over 30,000 locations across 1,000 cities. These include Tata car dealerships, branches of SBI and its subsidiaries and associates and outlets of Tata group companies like Tata Indicom, Titan, Croma and Westwide. But unlike other models, a booking does not ensure that one would get to park the Nano in their garage. Tata said it would be able to produce only 50,000 units of the Nano from its makeshift plant at Pantnagar in Uttarakhand, until the cars dedicated plant at Sanand in Gujarat, with an initial capacity of an additional 2.5 lakh units annually, starts production late this year. Considering that demand for Nano will far outstrip supply, Tata Motors has worked out a random selection procedure to decide the lucky few to get the car. However, Ratan Tata acknowledged that keeping people wait for long was akin to waiting too long for a pretty woman who becomes too old and perhaps too fat. Thus, we hope to meet this challenge, he said. Tata Motors said within 60 days of the closure of bookings, it will process and announce the allotment of 1 lakh cars as part of first phase of deliveries. These allotments will be price-protected and carry launch prices. The deliveries will be staggered over the months starting July, but no interest would be paid over the booking amount. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" ACCESSORIES TO FUEL MARGINS FOR TATA MOTORS Sumit Chaturvedi The Economic Times
The Nano is a completely new concept and there will be no spares or accessories available in the after-sales market, said an executive at a Delhi-based Tata Motors dealership. Customers looking for anything from mud flaps to seat covers will have to buy from the authorised dealers or authorised retail outlets, he said. Tata dealerships, which have been readying themselves for the Nano launch, started getting enquiries from the morning on Monday. But by the time Ratan Tata and his team officially launched the Nano early evening, the trickle of enquiries had turned into a rush. A number of dealerships, which had already ordered the booking forms, are now thinking of fresh orders to cope with the customer interest. We had ordered around 2,000 forms and will now ask for more, said one Delhi-based dealer. Another is looking to increase its booking form order from 1,500 to 3,000. Tata dealers expect total countrywide bookings to hit a million. At the launch, Tata Motors MD Ravi Kant said the Nano website has received 3 million hits so far. Another Delhi-based dealer told ET, We have been instructed by the company to place the Nano away from our Indica and Safari displays. Otherwise it will hog all the attention. Also, the profile of the Nano customer will be different from that of the Safari, Indigo or Linea, he added. Hindustan Times (Web & Print Edition) We would roll out a diesel variant of the Nano soon enough, said Tata Motors chairman Ratan Tata. While the diesel, electric, or even the compressed air variant may take a while in coming, the company is currently working on the Nano Europa, the European variant of the car that was recently showcased at the Geneva Auto Expo. The car, which would have anit-lock brakes, airbags, front, side, and maybe even curtains, and frills including power steering, central locking, power windows, and even climate control, would be to suit the tastes of the European buyer, Tata said. The European variant could hit those markets as early as 2012. A car for the US markets seems to be the third priority for the company, for which the car needs redesign. The US market has crash testing norms which are different from other countries, and this would require a redesign of the vehicle, Tata said. http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName= Hindustan Times (Web & Print Edition) Major passenger car manufacturers in the country including Maruti Suzuki and Hyundai Motor India remained watchful and cautious as the Tatas fulfilled their promise of launching the Nano in this financial year. With the benchmark of a small car and penetration of cars set to reach new levels, industry rivals admitted there will be takers for the car. "I feel no different to what I always felt. We have to congratulate Tata for accomplishing such a feat," said R C Bhargava, Chairman, Maruti Suzuki India Ltd. "I am sure Nano will take away some of the existing market but equally it will create its own market as well." While launching the car Ratan Tata said he expected some reaction from rival companies and the impact of Nano in future would determine that. But Maruti which has a commanding over 50 per cent marketshare in the passenger car space maintained it would neither slash prices of existing models nor is it interested in a similar product of its own. Korean auto major Hyundai Motor India, whom Tata Motors is likely to leapfrog as the second largest passenger car maker with the Nano, went into a shell refusing to react on the launch. http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName= | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTERVIEWS/FEATURES Go To Top Mumbai: Here are the excerpts from Tata Motors Chairman Ratan Tata and Managing Director Ravi Kants press conference ahead of the formal launch of the Nano on Monday evening at the Parsi Gymkhana in Mumbai. The Rs 1-lakh price option will be available for only the first 100,000 cars. Wouldnt that be a disappointment for customers? Tata: I can only say no car manufacturer would commit a price to any volume. We have. Its neither a gimmick nor an ego trip. When do you think the Nano will break even? Tata: All I can say at the moment is that the project is highly profitable. After all, I am not doing it for philanthrophy. Now that you have finally launched, whats next? Tata: We have no further innovation to speak about at this time. I hope my colleagues will continue to innovate new products when I am no longer there. You drove the car yourself. Can you share your experience? Tata: I am usually a very difficult critic. But the driving experience was extremely satisfying. You have to keep the price point in mind to get an objective view. Are you fully satisfied with the car? Tata: The drive to stretch the envelope has been extremely satisfying. Todays story started some years ago when I observed families riding on two wheelers, the father driving a scooter, his young kid standing in front of him, his wife sitting behind him holding a baby, and I asked myself whether one could conceive of a safe, affordable, all-weather form of transport for such a family. A vehicle that could be within everybodys reach, built to meet all safety standards, designed to meet or exceed emission norms and low in pollution and high in fuel efficiency. I am happy we are at the threshold of achieving that dream. How much demand do you think can be fulfiled? Tata: I agree that the demand is likely to exceed the supply. Launching the car despite production constraints is an interim plan. We didnt want the customer to wait for the car anymore. Are you planning to build the car in Pune also? Kant: The car, originally scheduled to roll out just from one plant, is now rolling out from three. We do not want to complicate matters or have too many tasks at our hands and hence we have decided to build the Nano at just Pantnagar (in Uttarakhand) and Sanand (in Gujarat). Now that the car is launched, what message would you give to Mamata Banerjee? What has been the enquiry level so far for the car? Kant: We have received 30 million hits on our website (Tata Nano website) so far. Mr Tata, you had said some market forces which were planning to derail the project. Can you please name them and what is it that you have to say to them. Also, now that the car has been launched, will you look at retirement? What will happen to Singur? Tata: We have not taken a decision regarding Singur yet. http://www.business-standard.com/india/news/it-has-beennightmare-getting- NANO NEEDS SOME REDESIGNING FOR US: RATAN TATA The Economic Times (Web & Print Edition) See similar story in: The Times of India (Web & Print Edition) It's taken six years for rubber to hit tarmac. But, never before in automotive history has there been such enduring interest in a car that was but a faint gleam in the eyes of a few people. The Nano has not ceased to mystify people ever since the dream of a "people's car'' was first announced in the 2003 Geneva auto show. http://economictimes.indiatimes.com/Nano-to-be-redesigned-for-US-Ratan-Tata/articleshow/4308033.cms http://timesofindia.indiatimes.com/Nano-to-be-redesigned-for-US-Ratan-Tata/ 'IF FIAT SHOWS INTEREST TO PARTNER NANO, WE'LL ENCOURAGE' Yahoo India (Web Edition) For Ratan Tata, chairman, Tata Sons , the launch of the Nano was another milestone ever since his company first conceived the project six years ago. On Monday, he responded to a volley of questions from the media on the Nano launch in his characteristic composed demeanour. FE brings you excerpts from the QandA session: What does the launch of the Nano mean to you and your company? This is another milestone in the journey of the Nano, from concept to unveiling. With all humility, we're overwhelmed. We have fulfilled this under trying circumstances. What we are doing is an interim measure to put the Nano before the public. This, we have done nine months before the plant in Sanand, Gujarat, would go on stream. What we have dreamt about is to offer affordable transportation for Indian families, not to conceive the cheapest car. As I have said earlier, a promise is a promise. For the last three or four years, we have worked in relative isolation until we unveiled the car in January. We have never looked at the car as an engineering achievement, but to meet the needs of the Indian family. In the process, it's serendipitous that all this should have happened. How do you look back on the Singur controversy now? We have a feeling of happiness that we have come so far in this journey. The car is an Indian car and it is produced in India. We have a shell of a plant in Singur, which we are in the process of moving. Won't the Nano add to the congestion already on most Indian roads? The number of cars as well as two wheelers on Indian roads will keep rising. The government is increasingly spending money on infrastructure. I believe that the Nano will replace some cars and at the same time, will add to the number of cars. Congestion is a function of the condition of our roads at any point in future. Are you planning some global alliances for the Nano? We have had no direct expression of intent from any company to partner for the Nano. Part of the reason for this is that there was a disbelief in many that such a project will actually come through. With our alliance with Fiat, we already share a lot between us, and should there be an interest shown by Fiat in the Nano, we will encourage that in the markets where we are weak and they are strong. What was the biggest challenge for the Nano project? The greatest challenge has been to produce a car within the cost targets we set, so that we do not deliver just half a car. What we aimed at was family transport, robust and capable. We were lucky to have a team of people who conceived a product like the Nano. Is the Nano project profitable? Yes, highly profitable. What have you to say to your competitors who were skeptical? I have nothing to say to competitors. We are all operating in a competitive scenario. Will the car will be cheaper than it already is? We are forgetting inflation. Sometime back, there were cars that were available for as much as Rs 50,000. On Nano launch in Europe and in US: We hope to have a car in Europe by 2011. That car will comply with all of Europe's requirements. Given the buying preference in the US, we will first look at Europe. But we will be able to offer the car in the US market in the next three years or so. http://in.biz.yahoo.com/090323/50/batcus.html RS 1-LAKH NANO NOT AN EGO-TRIP: RATAN TATA See this story in: The Indian Express (Web & Print Edition) Mumbai: Excited about the launch of the people's car, the Nano, Tata Group Chairman Ratan Tata on Monday said the project was not conceived to satisfy his ego, nor was the Rs 1-lakh pricing a "gimmick". "I am very satisfied and excited about this launch and Nano is not for my ego-trip...certainly, not an ego-trip at all," Tata said at an editors meeting in Mumbai. The price of Rs 1-lakh was announced six-years ago when the Nano plan was unveiled at an European motor show, he said, adding that the fact that the company has kept its promise goes to show that it was not a "gimmick". All the first one-lakh customers who would be picked up through a draw of lots from the bookings between April 9-25, will be sold the car at the price that would be formally announced soon, he said. This was despite the fact that cost of steel and other materials had gone up, he said. The car has 21 per cent more space than the smallest car available now and 12-13 per cent more than other small cars in the country, he said. Asked after launching the cheapest car, would he now be going in for the cheapest truck or an SUV, Tata replied in the negative. "The quest for the cheapest truck or SUV does not arise," he said. To a question as to what could be his next dream, Tata said that he has not given a thought to it at the moment. "I don't rule out anything or necessarily commit," he said, when asked if he still would set up a Nano plant at Singur (West Bengal) from where the company was forced out due to political opposition last year. The company was committed to setting up a cancer hospital in West Bengal, he said, adding that some of the manufacturing facilities and sheds at Singur were still there. http://www.indianexpress.com/news/rs-1lakh-nano-not-an-egotrip-ratan-tata/437977/ 'BRAND NANO DOESN'T NEED ADVERTISING' Arcopol Chaudhuri Daily News & Analysis (Web Edition) Mumbai: In November 2007, some folks at ad agency Rediffusion YR were among the privileged few who got a glimpse of the Tata Nano two months prior to its official unveiling at the Auto Expo in Delhi. The Tatas had entrusted Rediffusion with the Nano account without even calling for a pitch. Brand Nano has gone through a lot since then -- arousing aspirations of millions -- and with the controversy in Singur, the Rs 1 lakh car became dearer to a lot of Indians, says Mahesh Chauhan, group CEO, Rediffusion YR. With the car ready to hit showrooms soon, Chauhan says the carmaker's marketing gambit is not mega either -- it's nano. For one, the Tatas won't use television advertising. Instead, it is planning to use print, radio, Web and perhaps even activations, in a judicious way. Chauhan elaborated the strategy behind such a plan and what brand Nano stands for in an interview to DNA. Does the Nano need advertising at all? Is the publicity generated in the media enough to carry it through?
Has that made the task easier or challenging for your agency? Both. Challenging, because the brand has formed a certain perception in people's minds. Unlike most other new launches, this product didn't launch with a clean slate. It had a lot of associations such as - 'people's car', 'the lakhpatiya car', 'the small car.' So it has had a huge involvement even before the car was launched. In that way, our corridors were defined and we were required to communicate with the consumer within those confines. Why have you decided not to use TV advertising? Looking at the media coverage Nano continues to receive, it doesn't need advertising. Brand Nano is already built. People already have their own interpretations about the brand. Their curiosities are now are about the 'product Nano'. There is a far greater pull for the brand than what any advertising can create. During the launch in 2008, we used print as the lead medium. What's the lead medium this time, you'll see eventually. The Nano is going live on the Web at 8 p.m. tonight -- so it could very well be the Web or even the radio. I don't think there's any brand ambassador who'll fit into the Nano's image. The product is the hero here. Brand ambassadors come in when the brand needs a discontinuous lift. So there is no question of using a brand ambassador.
Who will Nano attract the most -- the aspirational buyer, the me-too buyer? Will car-owners make a statement through it? Now, Nano is just not a Rs 1-lakh car anymore. It's much more than that. It's an expression of many things including native pride, innovation, and even environmental concern. Nano is a phenomenon that cuts across socio-economic classes, and the traditional conventions of car buying. How much of that has got to do with the association of the Tata brand? If Rs 1 lakh car was launched by a non-Tata company, would it have reached a similar standing?
The groundwork has already been done. How will you ensure the brand sustains its positioning? Although Nano has a certain momentum at this point, eventually it will need support. The waiting period of bookings could extend up to 2-3 years, so we'll have to sustain that interest both in terms of communication and marketing. We're fully aware of it and won't be getting complacent. http://www.dnaindia.com/report.asp?newsid=1241953 NANO IS A WATERSHED MOMENT FOR THE AUTOMOBILE INDUSTRY IN INDIA Raghuvir Srinivasan The Hindu Business Line (Web & Print Edition) Chennai: Dr V. Sumantran, formerly Executive Director (Passenger Car Business Unit and Engineering Research Centre), Tata Motors, was associated with the Nano project during its conception. Now Executive Vice-Chairman, Hinduja Automotive Ltd, Dr Sumantran says that the Nano project has endowed the automobile industry with greater legitimacy that it had before. Excerpts from an interview with Business Line: What does the Nano mean for the auto industry? It is definitely a watershed moment. From being a backwater of automobile engineering and production India has now acquired a prominence in product development and manufacturing. The Nano project has endowed the automobile industry with greater legitimacy that it had before. How do you rate the chances of Nanos success in the market? The Nano will meet an important product need. There are three reasons why I feel it should do well. Affordability, its manoeuvrability in our crowded streets and third, as a society, we are amenable to live without certain amenities in a product. For instance, power windows, power steering, front disc brakes if Im going to be driving at no more than 50 km an hour on city roads, do I need a front disc brake? In that sense, the Nano is well targeted but in this industry one has to wait and earn success. I would give it at least 5 years before passing a judgment. From hereon success will be a factor of execution capability and capitalising on the interest generated in the product. What do you think of the criticism that the Nano will increase pollution and congestion on roads? I think it is unfair. If one is entitled to own a big car then so is someone to a small car. From a societal point of view the question to be asked is not what the company is doing but how successful our country has been in facilitating mobility of its people. There are people who can afford more than a two-wheeler but not a car. We should not single out the Nano for criticism but help focus Government thinking on systematic transportation planning. What were the challenges that you encountered in the initial stages of the Nano project? There are two interesting anecdotes that sum up the challenge we were up against. We were working on the engine design and there was this German electronics and engine systems manufacturer eager to break into the market as an alternative to established players. It would send its best and established people for discussions. Once, we were discussing a rough cost boundary for the engine. Twenty minutes into the discussion, the German realised that while we were taking of a cost estimate for the whole engine he was interpreting it as the cost of just one part the fuel injection system! The measure of interest that the project generated was tremendous. GEs Mr Jeffrey Immelt spent 30 minutes on a one-on-one discussion just to understand what was needed from GE Plastics. We were thinking of plastic body panels then and Mr Immelt volunteered his best resources which was the team that worked on a small car project for a German manufacturer. We told him that rather than such a team, we would receive far greater value from the team within GEs global operations that was challenged most by any customer. Mr Immelt replied that perhaps the team that supported Canon witnessed the most acute challenges in terms of performance and cost. So we asked for the help of that team. What do you think was the reason for this big response from global players? Three reasons. First, they judged rightly that the scale of the enterprise was much larger than they had ever seen in India. Second, the technological challenge in helping shave off even 10 cents from the price of the product. In F1 design, which is at the cutting edge, there is a big celebration when even 10 gm of weight is shaved off the car. The Nano and its cost are similar. Third, they realised that if they learnt how to crack the problem then it could be applied in other fields. Do you feel that the Nano will be a stimulus for the car market now? The Nano is sure to bring in a lot of buyers, especially those with unusual buying habits but whether this will be of a magnitude to contribute to recovery, I dont know. In the current global environment, could the Nano herald a shift to similar vehicles? Well, the economic downturn and concern over CO2 emissions is pushing people to smaller cars so much so that manufacturers such as BMW, Audi and Mercedes are moving to Golf-sized small cars. There is a wave towards small cars in Europe and North America exemplified by GM introducing the Chevrolet Aveo and Ford, the Fiesta (in a size smaller than the model here) in the US. How much further this will lead to bringing down prices and vehicle specifications to Nanos category, I dont know. During the energy crisis of the 1970s, there was a similar move to smaller cars but once the pressure eased people gravitated to SUVs. Whether the current trend is a temporary one like that or is it a structural change in the industry remains to be seen. http://www.thehindubusinessline.com/2009/03/24/stories/2009032452080200.htm 'WE DON'T BOTHER ABOUT NANO OR NO-NO': MAMTA Business Standard (Web & Print Edition) As the Nano was launched, journalists got both Mamata Banerjee, the leader of the opposition in West Bengal whose blockade forced the Tatas to shift the car factory out of the state, and state Industry Minister Nirupam Sen to comment on what West Bengal lost in the process. This is what Mamata Banerjee had to say: Are you upset with the Nano coming out from elsewhere? We dont bother about Nano or No-No. We are bothered about peoples problems. The government forcefully and illegally occupied the land at Singur thats why we opposed forceful occupation of the land. Where will land for industry come? Land is for human beings and you cannot violate humanity. What about development? The government could have utilised natural resources of the state to ensure development rather than just forcefully occupying land. Opening up closed small-scale industries could have provided jobs to about 1.5 million people. Digha (a beach resort) could have been Goa if the government had any brains. Engineering and textile industries, projects using clean coal and coal bed methane are needed to tap Bengals potential. The leather industry and Kolkata and Haldia ports need to be developed. Heres what Industry Minister Nirupam Sen had to say Is it a miss for Bengal? It is a very sad day for the state, and also dangerous for the future. Were enough efforts made to retain the project? The government tried, and even the people of Singur formed NGOs like the Nano Bachao Committee to retain the project. Sadly, these failed. So why did voters in Singur vote against the Left in the panchayat polls? The people were temporarily misled into voting against the Left, just after the Nano project was pulled out of Singur. I am sure they rethink now. What will your party do to tackle the opposition, like Trinamool? The Left Front will continue its mass contact and education programme to create public opinion favouring industrialisation. And the land in Singur? Land is partly with the government, partly with the company. In the changed economic scenario, I cannot say how quickly another plant will come up there. http://www.business-standard.com/india/news//we-don/t-bother-about-nano-or-no-no/352752/ TATA MOTORS: NANO IMPACT SHORT-LIVED Shobhana Subramanian & Varun Sharma Business Standard (Web & Print Edition) Mumbai: The Nano launch may have prompted a 6 per cent upmove in the Tata Motors stock in Mondays opening session of trade, but its unlikely the sentiment will sustain. The car may well find itself a new niche in the passenger car market and go on to become a hit. But thats some time away and it will be a couple of years before the Nano contributes meaningfully to the companys revenues. In the meanwhile, Tata Motors continues to stare at a weak demand for both commercial vehicles (CV) as also cars. While CV volumes were lower by 51 per cent y-o-y in January 2009 compared with a fall of 46 per cent y-o-y in the December 2008 quarter, to revert to the mean could take a while given that the downtrun in the economy persists. Moreover, Tata Motors is not in great shape the company posted a loss of Rs 260 crore (including Rs 220 crore of forex losses) in the December 2008 quarter with operating margins down to just 2 per cent. While a drop in margins was expected with sales volumes slipping 32 per cent, the extent of the erosion was surprising indicating that the full impact of falling steel prices hadnt been felt yet --- raw material costs were up 150 basis points sequentially. While lower input costs and higher volumes should help expand margins from here on, for them to move back to 8 per cent could take another couple of quarters. Initiatives to bring down costs, targetted at savings of Rs 1,000 crore over the next three years, too are longer term measures; in the near term the bottom line could remain under pressure. The bigger worry is the Jaguar and Land Rover (JLR) business volumes fell 35 per cent y-o-y in the December quarter. The strain on the companys balance sheet isnt lost on investors; the debt-equity ratio of close to 1.5: 1, is not low. Also, by mid-2009, Tata Motors needs to raise around $2 billion to repay the rest of the $3 billion bridge loan that it took to acquire JLR. http://www.business-standard.com/india/news/tata-motors-nano-impact-short-lived/352721/ Srinivas Krishnan Business Standard (Web Edition) Mumbai: In the list of the 10 greatest cars ever built, an iconic sportscar or an evocative form on wheels would generally be relegated to the bottom of the list. The top honours are always taken by humble automobiles, cars meant to be sold to as many people as possible. The greatness of these cars are not in the numbers sold by that count, the Volkswagen Golf and the Toyota Corolla should be up there but by the engineering brilliance that has gone into them to impart mass appeal. It is the breakthroughs in engineering, design and production that give these cars their all-time great status. Generally, the greatest car of the 20th century is considered to be the Volkswagen Beetle. And following it are the Ford Model T, the BMC/Rover Mini, the Citroen 2CV and the Fiat 500. Okay the pecking order changes depending on whom you ask from which country, but these cars perpetually figure in the top-five list. Whats common to all of them is that each of these cars had a visionary, a father figure, who made it happen. Of course, Ratan Tata wouldnt like to be associated with the greatest villain known to mankind, but you cant erase history. The Beetle was Adolf Hitlers idea. He was the one who actually sketched it out and laid down the parameters based on which Dr Ferdinand Porsche engineered the uncharacteristic, improbable World Number One. Among other things, Hitler specified that the car should be able to accommodate four, be powered by an air-cooled engine, cruise at 100 kph and cost 1,000 Reichsmarks. Hitlers KdF-wagen (Strength through Joy) went on to become world famous as the Beetle, and its appeal transcended boundaries, generations and class divides. And going by its enduring popularity, even time. The Model T, on the other hand, was the end product of the worlds greatest wonder of mass production. So much so that old man Henry Fords factories was a magnet to industrialists from around the world, whod watch with awe the way Model Ts rushed off the assembly line. Henry Ford was clever enough to increase the wages of his workers so that they could afford the Model T, and ruthlessly slashed the cost of the car to keep sales moving. The over 15 million Model Ts that were built between 1908 and 1927 is a staggering figure even, by all counts. Dante Giacosa was a gifted engineer who gave his life to Fiat. Many of the cars that Giacosa created are considered some of the greatest cars of all time. And the Nuova Cinquecento or the new 500 was his master-stroke. The 500 offered protected mobility to the Italian masses and like the Nano, was an entry-level car. When launched in 1957, the Italian market was 330,000 two-wheelers strong. By 1965, the two-wheeler market was down to 200,000 units, all thanks to the 500. Is history going to be repeated? Like Giacosa, Sir Alec Issigonis was also an engineering genius who, among other things, also created the Mini. The seed for the idea of a compact car however came from Leonard Lord, the chairman of the British Motor Corporation. After the 1956 Suez crisis, when oil prices peaked, people bought those queer but clever bubble cars. Lords idea was to drive them off the streets with a proper miniature car. And the car that Sir Alec created was a marvel of automotive packaging. In a car measuring just ten feet in length, 80 per cent of the space was used for the passengers and luggage and the balance for the drivetrain. The engine was placed horizontally in the engine bay and power went to the front wheels. And bingo, you had a tiny, fuel efficient car that could accommodate four adults. Like the Beetle, the Mini was universally loved it was classless. Paul McCartney drove one, so did the hippie down the road. Like the Beetle, the Citroen 2CV was born because of clearly defined but tight parameters. Back in 1935, the head of Citroen, Pierre-Joules Boulanger specified the car that was designed to replace the farmers horse-cart it should weigh less than 300 kg, be able to carry four adults at a speed of 60 kph, be extremely frugal by giving at least 20 km to the litre of petrol, allow the farmer to wear his hat inside the car, be able to accommodate a bale of hay or long planks of wood, and the most famous requirement of them all: to be able to ride over a ploughed field while carrying eggs without breaking a single one of them. No wonder that the car that emerged was a miracle of sorts, despite the derision with which it was received when launched in 1948 it was in production up to 1990! Back home, the Maruti 800 can be rightly called the peoples car. Again, the visionary behind it was Sanjay Gandhi. Because of circumstances and sheer serendipity, Suzuki happened to be there with the right product at the right place at the right time. And SS80 went on to become the car that put India on wheels with about 2.5 million being sold in the country since its inception. The Maruti 800 is still in production, despite being toppled by the Alto in the best-seller list. But now it is ready to give the Nano the crown of the Indian peoples car. http://www.business-standard.com/india/news/people-movers/352661/ The Times of India (Web & Print Edition) After almost half a decade of anticipation, Ratan Tatas dream is a reality. The Nano is real for everyone to sample in flesh and bone. Just watching the little car roll around on its own power brings a feeling like none that weve experienced hitherto when looking at a car . Its more than a sense of joy. Its a big sense of pride. Critics said it couldnt be done. They said it wouldnt run. Heck, they even said it wouldnt even be a proper car. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://timesofindia.indiatimes.com/Business/Nanos-real--cool/articleshow/4307603.cms The Financial Express (Editorial) It is common wisdom that India is a very large market for goods and serviceswith a population of over a billion and a trillion-dollar economy, that seems obvious. What is less obvious is that while it is a very large market, in its characteristics it is quite different from many other very large markets. That poses a unique challenge to producers of goods and services who cannot easily replicate models from elsewhere to sell in the Indian market. One of the key features of the Indian marketplace is the extreme sensitivity to price that most consumers havethis is a function of the still limited incomes that a majority of people earn. So, its not surprising that cheap products have a mass appeal. What has changed over the last two decades is that while consumers want cheap products, they are also sensitive to quality, particularly in functional terms (and not necessarily in style, design or fashion). A number of entrepreneurs have slowly begun to grasp this reality and respond to it aggressively. And it is in this context that the launch of the Tata Nano must be viewed. It is the first product in the automobile segment that will provide affordability and quality at the same time, and will, in fact, create a completely new market for itself. Todays columnist lucidly explains this and other features of very successful low-cost products that have made a big dent in the Indian market. The mobile phone, in a different consumer segment, is the obvious predecessor to Tatas audaciously cheap Nano. The mobile revolution of the 2000s has now dwarfed the very successful ISD-STD booth revolution of the 1980s. Consider also the launch of low-cost airlines, which, despite their struggles of, have made flying affordable to a lot more people and had also developed a viable business model until this crisis struck. Low cost did not necessarily mean a compromise on qualitymany budget carriers report better punctuality than regular carriers. The interesting question now is, how the economic slowdown will affect the future of low-cost products. At one level, low-cost products are ideal for consumers suffering from loss of income or greater uncertainty in a slowdown. Yet, at the same time, the profit margins of producers are put under pressure. How long can the Nano be sold at Rs 1 lakh is a question not dissimilar to how low airline fares can remain. Difficult, but nothing that some clever entrepreneurship and strategy cannot solve. NANO ENHANCES INDIA AS SMALL CAR HUB, SAYS CRISIL The Financial Express Mumbai: The launch of Tata Nano, the world's cheapest car, enhances India's position as a small car manufacturing hub and can potentially expand the domestic car market. Nevertheless, scaling up challenges is expected to be humungous, said Crisil Research on Monday. With the on-road price to the customer estimated at Rs 1.2 lakh (approximately $2,300), the Tata Nano will enhance India's position as a highly cost competitive manufacturing hub for small cars. Alternative low cost car models launched worldwide in the past two years have been priced at least 50% higher than the price of the Nano, it said. According to Crisil Research estimates, the new price point reduces the cost of ownership of an entry level car in India by 30% and to below 3 times the cost of owning a motorcycle. This will make the car affordable to an additional 14 million families, including a section of the 58 million two wheeler owners. Sachin Mathur, head, Crisil Research, said, The launch of Nano has further highlighted the capabilities of a low cost automotive manufacturing ecosystem in India. It will encourage continued emphasis on product developments in the low cost cars category by other manufacturers across the world, with India as a focal point. India has been gaining significance as a small car manufacturing hub with small car exports of 0.3 million in 2008-09. Small car exports have grown at a CAGR of 21% during the last 5 years and are expected to more than double by 2013-14. This growth has been enabled by increasing manufacturing competitiveness across the board, driven by continuous improvement in quality and productivity. As the lower middle-income countries including India, account for around 53% of global population, but only 13% of global car sales, the launch of ultra-low cost cars is expected to be a key driver for increasing the car ownership in these countries. The Indian market would become the first testing ground for the manufacturing as well as marketing success for an ultra-low cost car, the report said. The huge market opportunity notwithstanding, Crisil Research expects that the scaling up would be extremely challenging.
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| CARS, SUVs, MUVs Go To Top PTI See this story in: The Hindu Business Line (Web Edition) Mumbai: Car maker Maruti Suzuki on Monday announced the re-appointment of Shuji Oishi as a whole-time director for three years. Shuji Oishi has been re-appointed as a whole-time director designated as director and managing executive officer (Marketing & Sales) of the company with effect from April 13 this year, Maruti Suzuki said in a filing to the BSE. http://www.thehindubusinessline.com/blnus/02231921.htm RENAULT TOES NISSAN LINE, SPLITS OPS Sindhu Bhattacharya Daily News & Analysis (Web Edition) New Delhi: If Nissan effects a major management reshuffle in its India operations, can sister company Renault be far behind? Close on the heels of Nissan Motor Co splitting Indian operations and separating the marketing/ distribution and manufacturing operations, Renault on Monday announced the creation of two new posts. The French car maker will now have a country general manager as well as a chief operating officer. Marc Nassif has been appointed as the country GM, to be based in Chennai. Nassif will perform the twin tasks of assisting the new Japanese management arriving to manage the Renault-Nissan manufacturing joint venture based in the city as well as overseeing all Renault activities in India. Sudhir Rao, who was appointed by the outgoing Renault India chief Sylvain Bilaine last year and has been stationed in Paris as head of Asia-Africa procurement functions, is coming in as chief operating officer. Industry insiders say Rao's appointment to India would help in Renault's dealings with Mahindra & Mahindra (M&M) and Bajaj Auto.
With Bajaj, it is engaged in development of the ultra low cost (ULC) car along with Nissan. Rao would be the Indian interface with both these Indian companies. Bilaine, who set up Renault India, initiated the ULC project and was responsible for the creation of the Mahindra Renault joint venture operation, has taken VRS and plans to open a consultancy with branches in Paris and India. The changes in Renault come at a time when the company has already made it clear that while it remains committed to the Indian market, the global economic slowdown has forced it to scale back its product rollout plans here. It has also acknowledged that the ULC project is facing some delays and the JV that manufactures the Logan is also facing tough times with sales of this car continuing to be less than satisfactory. http://www.dnaindia.com/report.asp?newsid=1241946 RENAULT INDIA HEAD RESIGNS; FIRM ANNOUNCES REJIG AT THE TOP PTI See this story in: The Hindu Business Line (Web Edition), The Tribune (Web Edition), Daily News & Analysis (Web Edition), The Times of India (Web Edition), The Statesman (Web Edition) New Delhi: French auto major Renault on Monday announced a top management rejig at its Indian subsidiary after the resignation of its head of operations in the country, Mr Sylvain Bilaine. After 25 years with Renault and the last four years heading Re nault operations in India, Sylvain Bilaine has decided to leave the company to create his own consultancy firm in France,'' Renault India said in a statement. Mr Bilaine was Country General Manager for Renault in India. Effective April 1, Mr Marc Nassif will be appointed Executive Director of Renault India and Country General Manager for Renault in India, responsible for all activities of Renault in India. Mr Nassif is currently Deputy Managing Director of Renault Nissan Automotive Private Ltd (RNAIPL), based in Chennai, and will continue to keep this responsibility and report to Mr Katsumi Nakamura, member of the Renault Executive Committee and Leader of th e Region Asia Africa. Mr Sudhir Rao has been appointed Chief Operating Officer (COO) of Renault India, who in turn will report to Mr Nassif, the statement added. http://www.thehindubusinessline.com/blnus/02231435.htm http://www.tribuneindia.com/2009/20090324/biz.htm#9 http://www.dnaindia.com/report.asp?newsid=1241740 http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=248048 Garima Singh Neogy The Telegraph (Web Edition) New Delhi: Firms in the second-hand car market are keeping a close eye on the developments following the launch of the Nano. Maruti Suzuki India said the Rs 1-lakh Nano had not affected the sale or pricing of its used cars. The company is into second-hand cars since 2001 through its True Value dealer network. We have been able to retail whatever we are buying. We are even unable to meet the demand sometimes. There has been no significant change in the resale prices of cars in the last four months, said Ravi Bhatia, chief general manager of True Value. True Value, which has a 10 per cent market share in the used-car business, has 302 outlets. In January and February, sales grew 22 per cent and 25 per cent, respectively, over the last year. Bhatia said that following the launch of the Nano, True Value was carefully monitoring the situation vis--vis prices and sales. Yes, we will have to wait and watch. Auto analysts said the Nano would have little impact on sales. The Nano will open up a new segment and is not likely to eat into the used-car market. If at all, it will have a very minimal impact. People who go for second-hand cars are the ones who have little money and not much time, said auto analyst Hormazd Sorabji. Unlike the old cars, the waiting period for the Nano is much longer. Korean car manufacturer Hyundai Motors India (HMI), which recently started selling used cars, said there had not been any drop in prices. Our business is too new and we have low volumes. It is growing and we dont expect to witness any drop in the prices even after the Nano, said a Hyundai spokesperson. As the slowdown spread and put a brake on new sales, companies started concentrating on used cars. Tata Motors has Tata Motors Assured, launched on a pilot basis with 15 dealers in 10 cities Mumbai, Delhi, Bangalore, Hyderabad, Chennai, Pune, Ahmedabad, Chandigarh, Ludhiana and Vapi. General Motors India is also gearing up to enter the segment. It plans to launch the Chevrolet OK scheme in phases. German firms Audi, BMW and Porsche are also keen to carve up a slice of the business. Toyota and Mahindra & Mahindra also sell second-hand cars. In 2007-08, there was a small difference between the sales of new and used cars 1.5 million of the former were sold against 1.4 million second-hands. http://www.telegraphindia.com/1090324/jsp/business/story_10714843.jsp | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TATA MOTORS MULLS NANO TECH TO COMMERCIAL VEHICLE SPACE The Economic Times (Web & Print Edition) Mumbai: Tata Motors is looking to extend its low-cost revolution beyond the Nano to the commercial vehicle space where its already a market leader in India. The company, the worlds second-largest bus and fourth-largest truck maker, has so far kept under wraps its frugal commercial vehicle prototype, which could be a few months away, according to industry sources. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" NANO SAYS TATA TO TRUCKMAKER IMAGE PTI See this story in: Daily News & Analysis (Web Edition) Mumbai: Nano, the wheels that millions of Indians have been waiting to drive, on Monday, hit the roads and waved goodbye to Tata Motors' enduring image as a truckmaker. Although the hatchback Indica, launched in December 1998, helped clear the good-for-only-trucks air surrounding Tata, it was the Nano - the sub-USD 2,500 car - that made the global auto industry stand up and take notice of the company that was set up in 1945 to manufacture locomotives. In 1954, Tata Engineering and Locomotive Co Ltd began manufacturing medium commercial vehicles along with Daimler Benz AG of West Germany. The Nano, unveiled at the ninth Auto Expo in New Delhi last year, is possibly the world's most anticipated car since the original people's car Ford Model T. "The most talked-about car at the Detroit auto show (2008) is a car that isn't here and isn't intended to ever be sold in US showrooms," wrote the USA after the Nano was unveiled. Tata Group chairman Ratan Tata said on Monday, that he plans to export an upgraded version of the Nano to eastern and western Europe, the UK and possibly to the US as well. "From onwards, the product will be available in the showrooms... We hope this day we will usher in a new form of transport," Tata said at the commercial launch on Monday. Tatas previewed their small-wonder at last year's Geneva Motor Show and again at this year's edition with the variant that complies with European emission and safety standards. The car is expected to be launched in Europe by 2010-11. The snub-nosed car, which has its 623-cc engine in the rear (a first), can carry four passengers, has a fuel economy of 23.6 km per litre and most of all is affordable to the masses. Tata Group chairman has hinted that the base variant of Nano would be available for just Rs 1,00,000 and customers would be able to book it with an upfront payment of Rs 2,999 between April 9 and 23. The company is expecting two-wheeler users to switch to four wheels. Tata said that the demand for two-wheelers was in the range of six-seven million units and he expected demand for the Nano to be around one million. The commercial launch of the vehicle on Monday, was more a moment of pride for Tata, whose Nano left global car makers searching for answers. Renault-Nissan announced plans to launch a budget family car but have since put them on hold given the global economic slowdown. The ride was not smooth for the Tatas themselves. Fierce political opposition forced the company to quit its original manufacturing base in Singur in West Bengal to Sanand in Gujarat. The first lot of 1,00,000 cars that are due for delivery beginning early-July would be rolled out from the company's Pantnagar plant in Uttarakhand. Asked what he would tell Trinamool Congress leader Mamata Banerjee, who forced Tata out of Singur, the industrialist quipped: "My statement to Mamata Banerjee is good afternoon." http://www.dnaindia.com/report.asp?newsid=1241804 EMPLOYEES HELP ASHOK LEYLAND SAVE RS 1.67 CR Business Standard (Web Edition) Chennai: Employees of Ashok Leyland, a Hinduja Group company and countrys second largest commercial vehicle manufacturer, have helped the company save Rs 1.67 crore. The company had implemented GEMBA, a programme to encourage employees to come out with new innovations, at its Ennore plant in October 2008. Following this, it was able to save money and reduce the inventory level to Rs 90 crore from Rs 120 crore a year ago at this plant, said K Sridharan Balaji, general manager manufacturing, Ashok Leyland. These innovations by employees will conserve Rs 90 lakh each year as recurring savings, including Rs 40 lakh from three projects interconnecting cooling towers, endogas chambers and gear machining process, he added. Around 780 projects were conceived since October 2008 to find ways to reduce the processing time, increase productivity and save energy. Of the total projects, three main projects at its heat treatment shop and gear shop saved around Rs 40 lakh. http://www.business-standard.com/india/news/employees-help-ashok-leyland-save-rs-167-cr/352663/ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CONSTRUCTION & AGRI MACHINERY Go To Top | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Hindu http://www.hindu.com/2009/03/24/stories/2009032455801600.htm
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| COMPONENTS Go To Top Rohin Nagrani Business Standard
Take Tata Johnson controls for instance who developed the seats for the small car. Tata Motors specified that the seats need to be light, yet offer good overall body support and meet all safety requirements. The end result were front seats based on a single brace structure instead of individual rails, a frame and the right amount of foam to ensure overall seat comfort wasn't lost. The basic variant in fact doesn't even offer seat back adjustments for the passenger, thus saving on crucial rupees. Sister company Tata TACO worked on parts like interior injection mouldings, dashboard aggregates and door handles. It also entered into a JV with Ficosia International of Spain to supply cables and mirrors for the car that are being produced at the company's Hinjewadi, Pune facility. Tata TACO will supply over 20 per cent of all the parts being built for the Nano. A surprise entrant into the proceedings turned out to be Kinetic Engineering. The company best known for its two-wheeler business became party to the supplier base just months after the car was showcased to the world. It will supply the transmission gears for the car, a crucial component in the drivetrain. Bosch was asked to develop the engine management system (EMS) for the car. A relatively complicated and expensive component in general, Bosch imported the control unit, sensors and actuators for the car. For the Nano, it created a blink mode that allows for the cars health to be detected even without a diagnostic tool. One can also know the fuel efficiency during the last five cycles. Despite trying to keep costs in check, Bosch also managed to have a limp-home mode in case some sensors on the EMS fail. For a small car, a powerful air-conditioner that doesn't sap engine power was crucial. Behr, the German air-conditioning expert was roped in. The HVAC modules, manual control heads and condensors were developed by Behr, in association with Anand Automotive systems. A 60cc rotary compressor from Panasonic has been used - about 10cc larger than the one on the Maruti 800. MRF became the exclusive partner in development of the tyres for the first lot of cars. Using tubeless tyres of different widths for the front and the rear, MRF's brief was three-pronged - low rolling resistance for better efficiency, good ride and tyre life characteristics and a tyre setup that dials out any traces of oversteer. The last part turned out to be the biggest challenge, and one of the reasons why a wider tyre for the rear was utilised. Some of the other important suppliers included Sona Koyo for the steering assembly, Lumax for the lights and Caparo for the body panels. A rack and pinion steering developed by Sona uses a two-spoke variant for the base version and three-spoke variants for the CX and LX versions. Additionally, the unit was developed to be easily collapsible for transportation and ease of maintenance reasons. Selective inner panels were developed by Caparo who also supply to Maruti, amongst others. A whole host of other suppliers were also involved in the project who, despite supplying smaller number of components played their part. At the end, despite steel price fluctuations, a tanking economy and component suppliers suffering from immense revenue pressures, the combined operations have helped Tata Motors achieve the magical Rs 1 lakh tag. BOSCH TO OPEN 230 CAR SERVICE CENTRES BY 2010 Vijay C Roy Business Standard New Delhi/ Chandigarh: Bosch Ltd, the flagship company of Bosch Group, plans to open 230 multibrand Bosch Car Service (BCS) centres by 2010 across the country, taking the total number to 500. Bosch Car Service has set new benchmarks in the car service domain and we are planning aggressively to expand our footprint. By 2010, we will have at least 500 service centres across India, said K Ravi, vice-president (automotive aftermarket), Bosch Ltd. The centres will be opened on a franchise model where the company will provide technical support and also help the franchise in seeking loan. The company also plans to double its number of BCS in Punjab, Haryana and Chandigarh (including Jammu & Kashmir, Himachal Pradesh) by 2009. At present it has 26 outlets. Commenting on the automotive aftermarket sales, Ravi said, Last year, we registered a turnover of Rs 1,000 crore from aftermarket sales and this year are expecting a growth of 15 per cent. The northern region comprising Delhi, Uttar Pradesh, Rajasthan, Punjab, Haryana, Chandigarh, Himachal Pradesh and Jammu & Kasmir accounts for 27 per cent of the total aftermarket sales. http://www.business-standard.com/india/news/bosch-to-open-230-car-service- | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ALLIED INDUSTRY Go To Top George Joseph Business Standard Kochi: The increase in automobile sales over the last couple of months has driven tyre manufacturers to the natural rubber market. But, lately, the sudden spurt in synthetic rubber prices have forced stockists and tyre manufacturers to enter the market. Renewed demand and increase in prices has brought smiles on faces of million-plus natural rubber growers. The price of the benchmark grade RSS-4 quoted at Rs 78.50 a kg, higher by Rs 4 compared to the price prevailing a week ago. The rise in prices in the global natural rubber (NR) mart, especially in Tokyo, has endorsed the steep rise in the local markets. As tyre makers became active in the market, rubber quoted at Rs 78.50. For the last few weeks both stockists and manufacturers, especially tyre manufacturing companies have been staying away from the market, projecting that the the bear phase would continue. According to leading NR dealers, most stakeholders expected a steady or lower prices around Rs 72-73, but the sudden rise hit their stock position badly. A major chunk of stockists are now forced to procure rubber to keep the supply chain in tact. The tyre industry foresee some demand thanks to the growth in sale of passenger vehicles, especially in cars. In the heavy vehicle segment, the sale of bus tyre improved. Confirming the trend, sources in Automotive Tyre Manufacturers Association (ATMA) however said truck tyre sales are still lagging behind. There is an increase in sale of tyres in OE segment which had been affected very badly till January of this year. There was not much fall in the replacement segment and a positive change in the sale of OE segment has made manufacturers to procure more rubber to enhance inventory. However, tyre manufacturers are skeptical that any improvement in demand will continue. Meanwhile, farmers were reluctant to release their produce during January and February when the price dropped below Rs 70 a kg. This, coupled with the lower production in January, February and March, made the supply of NR to terminal markets very tight. Production in January 09 had dropped 9 per cent from 103,515 tonne to 94,000 tonne. February production also dropped to 54,520 tonne from 78,095 tonne during the same month of 2008. In December 08 too production was lower by 15,530 tonnes at 96,200 tonnes. During March, the production was expected to confine around 50,000 tonnes. So the overall production during December 08 to March 09 might be lower by 5-6 per cent. In spite of fall in production, there was no supply crunch felt as demand was low. Stock in February, 09 was 224,600 tonne against 198,000 tonne in February, 08. http://www.business-standard.com/india/news/natural-rubber-demand-picks-upauto-sales/352692/ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FINANCE & INSURANCE Go To Top PTI See this story in: Daily News & Analysis , The Financial Express Mumbai: State Bank of India on Monday, said it has entered into an exclusive agreement with Tata Motors on the bookings of the Nano through its countrywide network. Through the agreement, around 1,350 branches of SBI in 850 cities would assist in the booking process of the Tatas' Rs one lakh car, the bank said in a press release issued here. Booking forms will be distributed and application forms with the booking amount will be collected through SBI's branches. The forms will be available at more than 11,111 branches of the ban, the release said. Apart from extending loans for Nano purchase, the refund to unsuccessful applicants will take place through SBI branches, the release said. The sale of application forms and acceptance of booking amounts at SBI branches will be from April 9 to April 25, 2009, it said. SBI will be using its cash management product, SBI Fast, for the processing and has also set up a 24x7 helpline to facilitate the booking process, the release said. http://www.dnaindia.com/report.asp?newsid=1241841 http://www.financialexpress.com/news/sbi-to-provide-7yr-term-for-paying-nanos-loan/438128/ BAJAJ AUTO FINANCE BUYS BACK DEBENTURES The Hindu Business Line Mumbai: Bajaj Auto Finance Ltd has informed the BSE that the company, in the second tranche, repurchased from the open market, 4,01,500 non convertible debentures at 6 per cent of the face value of Rs 500 each at an average price of Rs 488.02 during the period March 05, 2009 to March 18, 2009. http://www.thehindubusinessline.com/blnus/02231320.htm | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LUBRICANTS & ALTERNATIVE FUELS Go To Top Reuters See this story in: The Times of India Perth: Oil rose towards $53 a barrel on Monday, continuing its fifth week of gains, bolstered by expectations that the US treasury's efforts to stabilise the ailing financial system could speed up a recovery of the US economy
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| INTERNATIONAL NEWS Go To Top Bloomberg See this story in: Business Standard Stuttgart/ Germany: Daimler AG, the second-largest maker of luxury cars, will raise 1.95 billion ($2.66 billion) selling shares to Abu Dhabis Aabar Investments PJSC as the global recession stunts sales and cash flow dwindles. Aabar will buy 96.4 million new Daimler shares at 20.27 apiece, the Stuttgart, Germany-based automaker said in a statement on Sunday. The price is a 5 per cent discount to the March 20 close of 21.34 and 55 per cent below the stocks value when Daimler announced a buyback plan in June. The share sale leads to the conclusion that things are getting worse and will continue to get worse, said Mike Tyndall, automotive analyst at Nomura Securities in London. Daimler may also be taking the view that you dont want to be the last carmaker to stick your hand out. The investment, amounting to a 9.1 per cent stake, buttresses Daimlers resources as the worst auto-industry crisis in decades forces the maker of Mercedes-Benz cars and trucks to cut hours for 54,000 German assembly-line workers and close two plants in North America. Moodys Investors Service said February 18 that it might downgrade Daimlers credit rating as the car-sales slump risks hurting the manufacturers financial flexibility. Daimler rose as much as 1.76, or 8.3 per cent, to 23.10, the highest intraday price since February 17, and was up 2.7 per cent as of 11 am in Frankfurt trading. The gain pared the stocks decline this year to 18 per cent, valuing the carmaker at 21.2 billion. Daimlers move suggests it needs capital more urgently than widely realised, Max Warburton, a London-based analyst at Sanford C Bernstein & Co, said on Monday in a research report. The willingness to dilute existing shareholders to secure funds of 2 billion is hardly a confident management statement. Car sales in Europe, Daimlers biggest market, fell 18 percent in February, extending a 10-month contraction. The company, also the worlds largest truckmaker, lost 1.53 billion euros in the fourth quarter, burdened by declining sales and expenses related to former U.S. arm Chrysler LLC. Cash flow from operations last year shrank 76 percent to 3.21 billion euros. Abu Dhabis investment will help Daimler react to changing market conditions and give it greater flexibility to invest in innovative automotive technologies, the company said. It didnt say how the sale proceeds will be used. Development-Spending Pledge Without new products, an automaker is nothing, head of development Thomas Weber said in a March 3 interview. Daimler will also ask shareholders at the annual meeting on April 8 to double the amount of cash it can raise. The company, whose A3 credit rating at Moodys is the fourth-lowest investment grade, has 6.91 billion euros in cash and faces more than 10 billion euros of debt maturing this year. Contracts on Daimlers debt fell 39.5 basis points to 290 as of 9:10 a.m. in London, according to CMA Datavision prices. Credit-default swaps, contracts conceived to protect bondholders against default, pay the buyer face value in exchange for the underlying securities or the cash equivalent should a company fail to adhere to debt agreements. A decline indicates an improvement in the perception of credit quality. Buyer vs Seller Daimler has underperformed its nearest competitor, Bayerische Motoren Werke AG, the No. 1 maker of luxury vehicles. Daimlers share decline this year contrasts with a 5.3 percent gain for Munich-based BMW. Aabar will overtake Kuwait, which owns 6.9 percent, as Daimlers largest shareholder, the carmaker said. Aabar initiated the talks with Daimler, which began in December, said Thomas Froehlich, a spokesman for the carmaker in Stuttgart. IPICs Role With 16 percent of Daimlers capital in the hands of long- term investors, the carmakers may be less vulnerable to an unwanted takeover attempt. Other German automakers, such as Porsche SE and BMW, have large stakes held by families that help secure their independence. Its good for Daimler to raise cash and get a long-term investor, because the next two years will be very hard, said Ferdinand Dudenhoeffer, director of the Center for Automotive Research at the University of Duisburg-Essen. Daimler and Aabar intend to cooperate on the development of electric vehicles and new materials for auto production as well as establish a center to train Abu Dhabi youths for the auto industry. Aabar agreed in December to pay 307 million Swiss francs ($273 million) and assume 100 million francs in debt to take over the Swiss-based private banking unit of American International Group Inc. Aabar was advised on the Daimler investment by Goldman Sachs & Co., spokesman Ben Burton said. Deutsche Bank AG advised Daimler. ABU DHABI BOOSTS STAKE IN DAIMLER See this story in: The Pioneer, The Telegraph Dubai: A company owned by the government of Abu Dhabi has pumped an additional $1.41 billion into Aabar Investment PJSC, giving the emirate majority control in the investment firm set to become Daimler AG's biggest shareholder. http://www.dailypioneer.com/164579/Abu-Dhabi-boosts-stake-in-Daimler.html http://www.telegraphindia.com/1090324/jsp/business/story_10714844.jsp | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ECONOMY & FINANCE Go To Top The Hindu Business Line Mumbai: The rupee appreciated by 25 paise against the dollar in choppy trade on Monday. The domestic currency opened at 50.52 and touched an intra-day low of 50.65. It recovered to close at 50.45, against Fridays close of 50.70. The rupee opened with a positive bias tracking global financial markets, all of which were in the green following the US Federal Reserves move to clean up the banks toxic assets, said a dealer with a public sector bank. However, dollar demand from importers ensured that the rupee could not consolidate on its positive opening, the dealer said. The rupee traded in the range of 50.42-50.54 for most part of the day, said dealers. In the overseas markets, the dollar depreciated against other major currencies. In the forward premia market, the six-month premium closed marginally higher at 3.75 per cent (3.68 per cent) and the one-year ended at 2.80 per cent (2.83 per cent). http://www.thehindubusinessline.com/2009/03/24/stories/2009032451790600.htm SENSEX SCALES UP BY 457 POINTS PTI See this story in: The Hindu Business Line Mumbai: The Sensex closed higher on Monday on buying activity towards the end on the back of optimsm that the measures announced by the Obama Administration would begin to bear fruit. This news in turn had lifted the other Asian equity markets. The Sensex had opened higher by over 181 points on increased buying by funds in heavy-weight blue-chips stocks initially. At close, the 30-share barometer, which had lost 35.07 in previous trading session on Friday, rose by 457.34 points, to 9,424.02, led by metals, power, oil and gas, capital goods and Banking shares. The wide-based National Stock Exchange's Nifty also finished higher by 132.85 points to 2,939.90. Stock brokers said apart from buying by funds, covering up of short positions by speculators also supported the rally. In the Asian region, the Hong Kong benchmark Hang Seng shot up by nearly three per cent, while Japan's Nikkei surged 2.80 per cent in early trade. On the BSE, shares of Tata Motors were in the limelight ahead of the launch of its eagerly awa ited 'Nano' and shot up by 5.40 per cent to Rs 170 on the BSE. http://www.thehindubusinessline.com/blnus/05231901.htm
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