CARMAKERS TO END DISCOUNT SEASON ON SOARING DEMAND
Chanchal Pal Chauhan
The Economic Times (Web & Print Edition)
(Oct 26)
New Delhi: Those who missed the opportunity to buy their favourite cars during the festive season may end up shelling out 8-10% more now, with soaring demand for popular models emboldening carmakers to do away with the huge festive discounts.
Popular hatchbacks such as Wagon R, Alto, Santro, i10, and Spark are set to costlier soon with car companies looking to cash in on the good times to increase profitability. "With demand already high and a huge waiting period on many popular models, the coming weeks will see a drop in rebates," said Mayank Pareek, Marutis executive officer, marketing & sales.
Maruti clocked one of the highest sales in the July-September period selling 2.09 lakh cars. Several of its top-selling models such as Ritz, Swift and DZire have long waiting periods. Discounts on its popular models like WagonR could be cut from Rs 45,000 at present to Rs 15,000-20,000 soon.
Hyundais best selling i10 hatchback that was fetching a rebate of Rs 36,500 till a few weeks ago will now see a drastic decline in discounts. According to Hyundai dealers benefits on the i10 could be around Rs 15,000 now. Most of these models are in huge demand and currently have a waiting period of up to six weeks.
General Motors Spark hatchback, which fetched cash benefits of up to Rs 47,000 along with a maintenance package of Rs 13,000 and music system during Diwali, will now come with less freebies. "There would be some changes in the customers incentives post-Diwali. The discounts now will not reflect the festive spirit when these are kept at all-time high to boost sales," GM vice-president (sales & marketing) Ankush Arora said.
Discounts and other deals are dictated by big companies and competition in different segments. With big players such as Maruti and Hyundai looking at rationalising these discounts, smaller players like Honda Siel, Ford, Skoda and Fiat are also likely to slash offers in a big way.
Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved"
http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/Carmakers-to-end-discount-season-on-soaring-demand/articleshow/5161610.cms
MARUTI SUZUKI: MAINTAINING PROFIT GROWTH WILL BE TOUGH
Krishna Kant
The Economic Times (Web Edition)
(Oct 26)
The excise duty cut on passenger cars announced earlier this year by the government as part of the economic stimulus measures is finally showing on the books of Maruti Suzuki. Indias largest passenger car maker nearly doubled its net profit during the September 09 quarter while net sales jumped by a record 47% year-on-year (y-o-y) during the quarter.
However, the entire growth in bottomline was driven by lower excise duty payment, which fell 28% per unit and helped the company to save Rs 10,741 per car sold during June-September 2009 period. If it had not been for the duty cut earlier this year, the company would have reported a 16.5% y-o-y fall in its net profit in the second quarter, according to calculations done by the ET Intelligence Group. The calculation assumes that other factors have remained constant.
To Maruti Suzukis credit, it reported a better-than-expected 13% improvement in its unit realisation to Rs 286,349 during September 2009 quarter. Earlier ETIG had estimated an improvement of close to 8% in unit realisations during the second quarter and a 40% growth in net sales.
However, we had not taken into account the upside due to the excise duty cut into account. Netting out the impact of the latter, Marutis realisations were up by 8.6% compared to the same period a year ago.
In the past few months, the company launched four new premium models A-Star, Ritz, Swift Dzire and all new Zen Estilo. These high- priced models helped the company to capture the upper end of the B-segment, but the gains were negated by a higher outlay on raw material cost which rose 47% y-o-y, much faster than the 30% growth in unit sales during the period.
This may be due to the fact that newer models have a higher imported content, which is becoming pricey due to the appreciation in the Japanese yen. Besides, Maruti Suzuki pays a higher royalty to Suzuki on newer models as is evident from historical trends. In the past five years ending FY09, Marutis expenses on account of royalty & technical fees have grown at a compounded annual rate (CAGR) of 43%, much faster than the 18% CAGR growth in its net sales.
Overall, the company improved its operating margin by 400 basis points to 10.8% of net sales during the quarter. The companys operating profit (excluding non-core income) jumped by 132% y-o-y to Rs 763 crore. However, there was a less-than-corresponding growth in net profit due to the 7.2% fall in non-core income to Rs 263 crore during the year. This more or less negated the slower growth in depreciation allowance and decline in interest outgo.
At its current market price, the stock is trading at 33 times its trailing 12-months earnings per share (EPS) and looks highly over-valued on a historical basis.
Going forward, it would be tough for the company to maintain the current momentum in profit growth given the lack of operational leverages visible in the past few quarters. Add to this the fact that it is one of the stingiest among all car makers in rewarding shareholders with dividends.
Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved"
http://economictimes.indiatimes.com/Markets/Stocks/Views/Recommendations/Maruti-Suzuki-Maintaining-profit-growth-will-be-tough/articleshow/5161658.cms?curpg=2
MARUTI TO LAUNCH ALTO, WAGON R WITH NEW GENERATION ENGINE
PTI
See this story in: The Economic Times (Web & Print Edition)
(Oct 26)
New Delhi: The country's largest car maker Maruti Suzuki will launch two of its best selling models -- Alto and Wagon R, with a new generation engine as it prepares to meet April 2010 deadline of stricter emission norm.
According to industry sources, the company will discontinue the old F-series engines in both Alto and Wagon R and replace them with its new K-series engine, which is Bharat Stage IV complaint.
When contacted a Maruti Suzuki India (MSI) spokesperson said, "the successful K series engines will be mounted on more models in a phased manner," without specifying details and timeline for the change in engines.
Alto is MSI's best selling model. In November last year it crossed one-million mark in domestic market, while Wagon R also accounted for a good number to its compact car sales.
The company's newer models such A-Star, Ritz and the new Estilo are powered by K-series engines, which the company claims are more fuel efficient and have lesser emission.
With 11 cities in India scheduled to move to stricter Bharat Stage (BS) IV emission norms from the current BS III by April next year, MSI has been preparing itself for the change.
It has already upgraded its mid-sized sedan SX4 to make it BS IV compatible and it will be shortly launched in the market. A similar upgradation for premium compact car Swift and entry-level sedan DZire is also on the cards but the company has decided not to upgrade its oldest model M800 to meet the new emission norms.
http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/Maruti-to-launch-Alto-Wagon-R-with-new-generation-engine/articleshow/5159582.cms
MARUTI TO LAUNCH ALTO, WAGON R WITH NEW ENGINE
PTI
See this story in: The Hindu Business Line (Web Edition)
(Oct 26)
New Delhi: Maruti Suzuki will launch two of its best selling models - Alto and Wagon R, with a new generation engine as it prepares to meet April 2010 deadline of stricter emission norm.
According to industry sources, the company will discontinue the old F-series engines in both Alto and Wagon R and replace them with its new K-series engine, which is Bharat Stage IV complaint. When contacted a Maruti Suzuki India (MSI) spokesperson said , the successful K series engines will be mounted on more models in a phased manner, without specifying details and timeline for the change in engines.
Alto is MSI's best selling model. In November last year it crossed one-million mark in domestic market, while Wagon R also accounted for a good number to its compact car sales. The company's newer models such A-Star, Ritz and the new Estilo are powered b y K-series engines, which the company claims are more fuel efficient and have lesser emission.
With 11 cities in India scheduled to move to stricter Bharat Stage (BS) IV emission norms from the current BS III by April next year, MSI has been preparing itself for the change. It has already upgraded its mid-sized sedan SX4 to make it BS IV compatibl e and it will be shortly launched in the market.
A similar upgradation for premium compact car Swift and entry-level sedan DZire is also on the cards but the company has decided not to upgrade its oldest model M800 to meet the new emission norms.
http://www.thehindubusinessline.com/blnus/02251222.htm
MARUTI ENGINE
The Telegraph (Web Edition)
(Oct 26)
New Delhi: Maruti Suzuki will launch two of its best selling models Alto and Wagon R with a new generation engine as it prepares to meet the April 2010 deadline of stricter emission norms.
http://www.telegraphindia.com/1091026/jsp/business/story_11658462.jsp
NEW ENGINE IN ALTO, WAGON R
PTI
See this story in: Hindustan Times (Delhi Print Edition)
(Oct 26)
New Delhi: The countrys largest car maker Maruti Suzuki will launch two of its best selling models, alto and wagon R, with a new generation engine as it prepares to meet April 2010 deadline of stricter emission norm. According to industry sources, the company will discontinue the old F-series engines in both Alto and Wagon R and replace them with its new K-series engine, which is Bharat Stager IV complaint.
WAGON R, ALTO TO RUN ON NEW ENGINES
PTI
See this story in: Asian Age
(Oct 26)
New Delhi: The countrys largest carmaker Maruti Suzuki will launch two of its best selling models Alto and Wagon R with a new generation engine as it prepares to meet April 2010 deadline of stricter emission norm.
According to the industry sources, the company will discontinue the old F-series engines in both Alto and Wagon R and replace them with its new K-series engine, which is Bharat Stage IV complaint.
LOTS NEW ON THE ESTILO
The Hindu, Metro Plus
(Oct 26)
Extra power to engine, more features and better stylingthe Zen Estilo puts its best face forward
Launched in 2006, the Maruti Suzuki Zen Estilo was given a face-lift a few months ago. So whats new on the Estilo headlamps, a bigger grille and a new bumper as well. The bigger headlamps along with the wide grille give it a more purpo seful look than before and complement the cars tall stance. It looks more like a mini-MPV than a hatchback from a distancenow. The rear lamps have also been altered a bit.Its not just the exterior thats got a makeover, Its the cabin thats received a nip and tuck too. Though the basic design of the door panels and dashboard remains the same, Maruti has played around with the colour combination.
You get four different colours inside the cabin, which are a combination of black, grey, beige and a shade of brown. To keep costs down, Maruti has stuck to a lot of parts from its other models. For example, the steering wheel is from the Wagon R, while the gear knob, power window switches and circular AC vents are from the Swift.Another big change is the A-stars spanking new 1-litre KB10 engine and gearbox replaces the F10D 1.1-litre engine in the Estilo.This means more power (67bhp), better efficiency and refinement. Another reason for the switch to this new powerplant is that itmeets BS IV emission standards, which come into effect in some major Indian cities from April next year.Though the new engine is just a three-cylinder unit compared to the earlier four-cylinder one, it was a major engineering feat to shoehorn the KB10 into the Estilos engine bay. Being an all-aluminium motor, the KB engine has bigger dimensions and hence takes up much more space than the cast-iron F10D. In fact, the increase in the cars length is mainly due to Maruti extending the engine bay.The best news is that the Estilo is priced marginally higher than the Zen Estilo. Estilo prices start at Rs. 3.12 lakh (ex-showroom, Delhi) for the base LX version, which is just Rs. 5,600 more than the earlier ZenEstilo.The Estilo LXi costs Rs. 3.4 lakh, which is Rs 7,000 higher, while the top-end VXi is priced at Rs 3.66 lakh, which is pricier by Rs 9,800. The top-end model with ABS is Rs 3.95 lakh, which works out to 12,000 more. This certainly makes the Estilo better value than before.
http://www.hindu.com/mp/2009/10/21/stories/2009102150710300.htm
MARUTI NET ZOOMS 92.5% ON STRONG LOCAL SALES, EXPORTS
Business Standard (Web & Print Edition)
(Oct 25)
New Delhi/Mumbai: Strong festival season sales, helped by the stimulus provided by the government, and buoyant exports drove the net profit of Maruti Suzuki up 92.5 per cent to Rs 570 crore for the quarter ended September 30. The company, owned majority by Suzuki Motor Corporation of Japan, is the largest player in the Indian car market with a share of over 50 per cent.
During the quarter, we had good festival season sales and the response to our new models was good. Also, we saw robust exports, Maruti Suzuki India Managing Director and CEO S Nakanishi said.
However, the company said its profit margins could get squeezed in the coming quarters because of the indications that prices of steel, copper and aluminum may go up and also the Japanese Yen might appreciate which will make imports of components expensive.
Maruti Suzuki reported a 46.67 per cent jump in its net sales for the quarter ended September 30 to Rs 7,049.58 crore. Domestic sales grew 21.9 per cent at 209,083, led by new models such as the Zen Estillo, A-Star and Ritz. Exports more than doubled to 37,105.
Sector experts said Indian automobile exports could suffer in the coming quarters with several countries in the West removing the scrappage incentive for small fuel-efficient cars.
Analysts were not elated at the performance. They said the results were mildly disappointing when seen sequentially. Maruti Suzuki, they added, needs to watch out for cost pressures in the next few quarters. But Maruti Suzuki Chairman RC Bhargava said that the impact of the rise and fall in commodity prices will visible in a few months time. Affect of the rising commodity prices will not impact current quarter results.
The company will invest Rs 150 crore on the upgrade and expansion of its plant in Gurgaon near Delhi, which will be completed by December.
It will increase the plants capacity by 90,000 units from 600,000 units annually. Work on new technologies like the expansion of the K-series engine, new generation CNG injection systems and new model development is on track, said Nakanishi.
http://www.business-standard.com/india/news/maruti-net-zooms-925strong-local-sales-exports/374215/
MARUTI MAKES MOST OF FAVOURABLE CONDITIONS
Mobis Philipose, Vatsala Kamat & Ravi Ananthanarayanan
mint (Web & Print Edition)
(Oct 26)
The countrys largest car maker, Maruti Suzuki India Ltd, reported strong results for the quarter ended September, with earnings before interest and tax doubling from year-ago levels to Rs713 crore.
Profit had risen by 48% in the preceding quarter ended June 2009 to Rs597 crore. But the growth was more or less anticipated by the street. The reported net profit was only marginally higher than consensus estimates.
The jump in profit growth was owing to higher volumes and an improvement in profit margins. Vehicle sales grew by 30% last quarter, much higher than the 18% recorded in the June quarter.
The growth in average sales realizations, at 13%, was almost the same as in the June quarter.
Price realizations have been improving for Maruti owing to a better product mix, with new models such as Swift DZire doing well.
Operating profit margin rose by 240 basis points, much better than the 40 basis points improvement seen in the June quarter. One basis point is one-hundredth of a percentage point.
The improvement was primarily owing to savings on material costs, which fell as a percentage of sales thanks to the drop in commodity prices and cost cutting measures taken by the company.
Due to the strengthening of the yen versus the rupee, cost of imported materials rose, so its commendable that the company managed cost savings despite this.
Operating profit per vehicle sold has risen by as high as 37% on a year-on-year basis. In the year-ago September quarter, the company made an operating profit of Rs27,200 on every vehicle it sold. This has risen to Rs37,200. Whats more, the company has reported an earnings per share (EPS) of Rs40 in the first half of this year, which is almost as much as the EPS for the entire last year (Rs42.2).
While all these growth numbers are impressive, much of this has been factored in by the street, since the volume growth numbers were already known, and so was the fact that margins would rise because of lower commodity costs. The September quarter represented a sweet spot for the company in that sense.
But performance is likely to continue being impressive for the rest of the year, although the company would have to contend with higher material costs, owing to price renegotiations with steel manufacturers. Volume growth is likely to remain high and earnings in the second half period are likely to be higher than the first half.
At its peak of around Rs1,700 in end-September, the Maruti stock enjoyed a trailing 12-month price-earnings multiple of over 30 times.
While the stock has corrected since, valuations are still at rather high levels of 27 times, considerably higher than the companys historical average.
But with no investment alternatives in the passenger car space and growth expected to continue to be high in the near term, the stock should do well as long as the rally continues.
http://www.livemint.com/2009/10/25224621/Maruti-makes-most-of-favourabl.html?h=A2
MARUTI DEBOTTLENECKS, BULKS UP
Sindhu Bhattacharya
Daily News & Analysis (Web Edition)
(Oct 26)
New Delhi: Maruti Suzuki is working out a series of complex manoeuvres to build up capacities. The company will shift production of some models from its Gurgaon facility to Manesar a few kilometres away, upgradeGurgaon and eventually add a new line at Manesar. Though the company is mum about its total capacity by 2012 (by when the new Manesar line would have come up), de-bottlenecking at Gurgaon has already begun and would result in incremental production of 70,000-90,000 units by December this year, at an investment of Rs 150 crore.
The company will thus close 2009-10 with an annualised production capacity of just under 11 lakh vehicles on a two-shift basis. Speaking during an analyst call on Saturday, managing director Shinzo Nakanishi said a decision on adding the new line at Manesar and subsequent investments would be taken at Maruti's next board meeting.
"My personal estimate is that we will increase capacity by 1 lakh units in each of the first, second and third years. Maruti believes in a step-by-step approach," he said.
But the big expansion will happen when the new Manesar line is ready. Typically, the addition of a new line involves investment of about Rs 1,500 crore for every 1 lakh units.
Maruti's acknowledgement of capacity expansion comes when there is a large waiting period on many of its models such as the Swift, Dzire, Ritz and even A-Star.
Company officials said unprecedented festival demand has led to this backlog, but that this should "settle at 6-8 weeks for most of our cars. We don't have any supply chain issues".
On the exports front also, Maruti reported exceptional growth with 66,000 units during the first half of 2009-10. With the scrappage schemes across Europe over, it is now looking at non-European markets to keep up the export momentum.
Capacity expansion is also likely at Suzuki Powertrain India, the diesel engine manufacturing plant of Maruti, which can currently make 2 lakh engines per year.
Officials said the K-series engine manufacturing capacity would be doubled to 5 lakh units as more and more models are upgraded with this advanced engine series. At present, A-Star, Ritz and Estilo sport this engine.
The total capital expenditure in 2010-11 would be Rs 2,000 crore against Rs 2,100 crore this fiscal and this would largely be used on upgrading Gurgaon facility, the Rohtak R&D facility and new model launches.
http://www.dnaindia.com/money/report_maruti-debottlenecks-bulks-up_1303141
TATA MOTORS TARGETS BIGGER PIE OF SEDAN MARKET
The Hindu Business Line (Web & Print Edition)
(Oct 25)
Hyderabad: Tata Motors is targeting a bigger pie of the C segment sedan market in the countrys automotive sector where it currently commands over 25 per cent share.
The current share is estimated at about 4,200 cars a month, plus that of the venture partner Fiat India, of the market of 18,000 to 20,000 sold by all carmakers in the country.
The Senior Vice-President Tata Motors, Mr S. Krishnan, said, The launch of Tata Manza petrol and diesel variants has received enthusiastic response within a short period. We expect this to boost our sales numbers by next quarter.
Speaking to newspersons after the launch of Manza cars in Andhra Pradesh, Mr Krishnan said that the first-half of the current fiscal has shown very positive vehicle sales trend. The last two months of August and September witnessed significant jump in sales. The new models would add to this numbers.
The trends in the market point towards a continued buoyancy in the automotive industry. The launch of nearly five models between Tata Motors and its joint venture partner Fiat, in the last 12 months has created excitement among new car buyers.
With a rationalised portfolio of Tata Indigo range of sedans and the addition of the Manza variants, the company currently offers cars in the C segment ranging from Rs 3.73 lakh to Rs 6.75 lakh ex-showroom.
Within sedans wherever there are diesel offerings, the trend points towards increasing preference for diesel cars, which are both fuel efficient and are much more refined than the earlier generation diesel cars, Mr Krishnan said.
Asked about recent concerns of some customers with regard to the Nano cars, Mr Krishnan said that issues relating to wiring have been sorted out. The issue was blown out of proportion.
http://www.thehindubusinessline.com/2009/10/25/stories/2009102550570200.htm
TATA VISTA PETROL VERSION
The Hindu (Web & Print Edition)
(Oct 25)
Kochi: Tata Motors has launched the Tata Vista petrol version in the Kerala market. The SAFIRE engine comes with an advanced CVCP (Continuous Variable Cam Phaser) technology wherein the valve opening and closing time varies with speed and load conditions of the engine. What it means for a car owner is that it gives a better performance and better fuel efficiency. The ARAI certified mileage for the Vista Safire vehicle is 15.7 kmpl. The petrol model starts at an ex-showroom price of Rs.3.45 lakh, says a press release.
http://www.hindu.com/2009/10/25/stories/2009102556761300.htm
GM LOOKS TO SELL 4,000 ELECTRIC CARS
Devjyot Ghoshal
Business Standard (Web & Print Edition)
(Oct 25)
Kolkata: Leveraging its early-mover advantage in the domestic electric car space, American automaker General Motors (GM) will look to sell at least 4,000 units annually of its green vehicle, set to hit the Indian roads next year.
The automobile giant had signed an agreement with Bangalore-based Reva Electric Car Company last month to develop an electric version of GM Indias volume driver, the Chevrolet Spark.
By the arrangement, while GM India will utilise its capability to develop platforms and take care of the manufacturing side, Revas experience in developing electric drive-trains and control systems will be harnessed. While the Detroit-based firm has remained tight-lipped on its investment in this project, it has indicated it will be able to recover costs if it can sell between 4,000-6,000 units of the electric Spark.
Over five years, we expect 5 per cent of the total mini-car market to be taken over by electric vehicles. For GM India, our investment into this project can be covered if we can sell (the electric version) between 10-15 per cent of all the Spark vehicles sold in India, GM India Vice-President (Sales & Marketing) Ankush Arora said. He was speaking on the sidelines of the launch of Chevrolet Cruze, the brands newest domestic offering, in Kolkata.
In all, the automaker expects to sell about 40,000 units of the Spark in India this year.
The electric car would be developed domestically, explained Arora, but would incorporate technologies from across GMs global technical centres. The auto major has four such facilities in India, including one in Bangalore.
He further said launching a green product in a virgin market such as India was an uncertain proposition, but maintained an ideal mix of practicality and affordability would prove successful. A section of buyers is prone to buying green. Being an early mover, we have time to establish ourselves. And also, we think that the market is ready to experiment with an affordable mini-electric vehicle, Arora said.
GM India has not revealed the proposed price of the electric Spark. It will have to consider that Reva has an electric car priced at about Rs 4 lakh, apart from the infantile state of the Indian green-car market. Chevrolet Volt, GMs plug-in electric offering in the US, has been flayed for being too expensive.
http://www.business-standard.com/india/news/gm-looks-to-sell-4000-electric-cars/374203/
AUDI LOOKS AT 50 PC GROWTH; TO ASSEMBLE MORE MODELS IN INDIA
PTI
See this story in: The Economic Times (Web & Print Edition)
(Oct 26)
New Delhi: German luxury car maker Audi said it is looking at over 50 per cent growth in sales in both this and the next year in India, and is planning to assemble more models in the country as part of its strategy to achieve this target.
The company will also launch one new model in the country next year, besides brining in advanced version of an existing model.
"Our target is to grow by over 50 per cent both in this year and 2010. In 2008, we sold around 1,050 units in India and this year our target is to sell 1,600 units and then continue the momentum next year," Audi India Head (Marketing) Martin Birkner told PTI.
He said the company had a good growth so far this year but did not provide the exact figures of the number of units sold so far in 2009.
Audi is also planning to assemble more models in India from next year.
"We are looking at shifting assemble operation of at least one or two more models to India in 2010. This will give us a better advantage in the market," Birkner said, without giving further details.
Audi currently has seven models in India, of which only two -- the entry level luxury sedan A4 and the volume model A6 -- are assembled here, while the others are shipped in as completely built units.
http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/Audi-looks-at-50-pc-growth-to-assemble-more-models-in-India/articleshow/5159685.cms
Audi looks at 50% growth
The Hindu Business Line (Web Edition)
http://www.thehindubusinessline.com/blnus/02251621.htm
Audi looks at 50 per cent growth
The Indian Express (Web Edition)
http://www.indianexpress.com/news/audi-looks-at-50-per-cent-growth/533021/#
Audi sees 50% growth
Hindustan Times (Delhi Print Edition)
TOYOTA TO TAKE ITS TIME TO ACHIEVE INDIA GOALS
Agencies
See this story in: The Indian Express (Web Edition)
(Oct 26)
Tokyo: Toyota Motor Corporation, the number one car maker by volume in the world but a marginal player in India, will neither experiment like the Tatas nor will it play the pricing game like rivals Suzuki and Hyundai to gain a significant market share there.
The company, which has set a target of 4 per cent of global sales coming from India by 2015, says it will do it the 'Toyota way' to achieve its goals in the world's second fastest growing car market.
"We are going to take Toyota's traditional approach, which means targeting all segments of the market and becoming a major manufacturer. We will do that step by step. It will take some time," Toyota Motor Corporation (TMC) Executive Vice-President Yukitoshi Funo said. By 2011, TMC will enter the high-volume compact car segment in the Indian market, which the company admits is late.
http://www.indianexpress.com/news/toyota-to-take-its-time-to-achieve-india-goals/533011/
Toyota to take its own time to achieve its Indian goals
The Pioneer (Web & Print Edition)
http://www.dailypioneer.com/211351/Toyota-to-take-its-own-time-to-achieve-its-Indian-goals.html
Toyota in no hurry to achieve Indian goals
The Economic Times (Delhi Print Edition)
VW FIRMS UP POLO PLANS
The Hindu (Metro Plus)
(Oct 26)
Volkswagen is gearing up for the launch of the Polo and has firmed up the upcoming hatchbacks engine line-up and target price. Jochem Heizmann, VW board member and responsible for Group Production, confirmed: We have two petrol engines and one diesel engine with a variety of power outputs.
Three cylinder
The base Polo will come with a three-cylinder 1.2 litre motor with an updated engine management system to offer better response and marginally more power.
This engine will be BS IV-compliant from the start.
VW has pegged the base Polo at a competitive price of Rs. 4.34 lakh (ex-showroom Delhi), which puts it head-on against other premium hatchbacks.
A 1.2 TDI diesel developing 74bhp is also expected for Rs. 4.99 lakh (ex-showroom Delhi). This all-new three-cylinder diesel motor promises class-leading fuel economy and is likely to be the mainstay of the Polo range. The range topper will be a 1.6 petrol that develops a healthy 100bhp and is aimed at those looking for a fully loaded hot hatch. The Polos 1.6 motor is futuristic and meets the latest emission standards.
http://www.hindu.com/mp/2009/10/26/stories/2009102650640300.htm
FOUR-DOOR CARS WAY TO GO, EVEN FOR SPORTY INDIANS
John Sarkar
The Economic Times (Web & Print Edition)
(Oct 25)
New Delhi: Most Japs call them fast and furious. The Germans call them brand shapers. The English, on the other hand, prefer to discreetly describe them as gentlemans toys. And the Italians, quite simply, call them sports cars.
But they have one disadvantage, a shortcoming, which sticks out like a sore thumb here. That is perhaps the reason why Stuttgart-based automotive manufacturer of luxury high performance automobiles, Porsche hurried to launch its Panamera here. The Panamera has four doors instead of two, an aberration for a sports car. But Indians love four doors.
Rod Wallace, MD at Porsche India, says he is planning to sell 50 Panameras here in the next 12 months. Of the nearly 200 cars that Porsche will manage to roll off its showroom, the four-door sports utility vehicle, Cayenne will form the biggest chunk.
The new Panamera is slated to come in next with the all-important numbers. But what happened to legends such as the Boxster, the 911 and the Cayman? Are Ferrari and Aston Martin listening? Top industry sources say these blue-blooded automobile brands are planning to drive in by next year.
Says Wallace: India is a family-oriented nation. A person buying a two-door car might be looked upon as being self indulgent and selfish. So, the Panamera, which can be called your everyday sports car, will rake in the numbers for us. We have already sold half of our proposed stock for the year. I feel we have underestimated the demand. The Panamera retails for more than Rs 1.5 crore. In contrast, the in-your-face sporty convertible Boxster retails for roughly Rs 62 lakh.
Then just a few days ago, another German carmaker BMW launched its delicious Rs 60-lakh Z4, a two-door roadster here. Says a BMW spokesperson, We are not looking for volumes with such products. Its a niche segment. We call such products brand shapers.
Incidentally, BMW sells another range of coupes here known as the 6 Series. Though comparatively cheaper than the companys luxurious four-door sedan, the 7 Series, the sales of the 6 Series range hasnt really taken off. For every 100 7 Series cars, BMW sells around eight 6 Series cars here.
Says Suhas Khadlaskar, director for corporate affairs and HR at Mercedes-Benz India: Two-door cars are usually a second choice for our customers. In most cases, we have seen that people who already have an E-Class or S-Class would perhaps opt for an SLK-AMG. Its more a weekend car. The SLK-AMG is Mercedes-Benzs two-door two-seater sports convertible.
But then even in the fat cat segment of the automobile space, space matters, as Satya Bagla, the distributor for Lamborghini and Bentley in India points out. Crewe-based luxury carmaker Bentley, has the Bentley Continental GT Speed, a muscular luxury sports coupe, on offer. According to Bagla it is giving tough competition to its four-door cousin because despite having two doors its essentially a four seater.
The GT Speed is one of the best selling coupes in the luxury car market, he says. But then it has space for four and that is perhaps the reason. In the end, India has proved it once again. Power matters, but only if you knock at the right door.
http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/Four-door-cars-way-to-go-even-for-sporty-Indians/articleshow/5158463.cms
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