Archive for November, 2010

BMW Plant Chennai

There is no greater testimony of a flourishing luxury car market than this event. The BMW Chennai plant rolled out their 10,000th car on Nov 23rd, – a silver 5 series.

Having a capacity of producing 5400 vehicles on a single shift basis, this plant currently manufactures 3 Series and 5 Series sedans in petrol and diesel versions. Soon this plant will also be contributing X1 compact SUV, which is bound to be launched by the year end.

Speaking on this occasion, Dr. Andreas Schaaf, President, BMW India -

Having taken the lead in the premium segment for the first time last year, we aim to maintain our leading position in the Indian market by now embarking on the second wave of our India strategy. We are confident that we will be able to increase sales substantially over the coming years with exciting new products, now produced in India and the ongoing expansion of our dealer network to reach out to more of our potential buyers.

Ze Germans have some seriously high ambitions in the future. Right from increasing the dealerships to bringing the MINI brand in India to bringing the BMW motorbikes in India – the company refers to it as the second phase of the growth strategy.

Ford plans a plant in Gujarat?

Ford Start Concept

Riding on the wave of the Figo, it seems that the Chennai plant is becoming too small for Ford. Rumors are that the Big Oval is planning a second plant in Gujarat. Of course, we saw this one coming after all recently Ford announced that it will launch eight new models for India by 2015. They obviously need a place to make those ;-)

Let’s also not forget Chinese car maker Changan’s interest of selling its portfolio of vehicles here in India using Ford’s assistance.

According to sources, representatives from financial organizations that represent Ford have visited senior Gujarat government officials and they were a suggested a site near Sanand, near the Tata Nano Factory. This is beneficial for Ford in multiple ways

1. Ford can now de-risk the business by decentralizing the production
2. They can cater to the northern and western markets much faster
3. The Vendors are already present in Sanand catering to Tata
4. This also protects them from any labor union crisis
5. Gujarat is the next auto hub after Chennai and Pune and major players like Tata and GM already present in the state
6. We heard of a massive port coming up in Simar which can take care of exporting models

It seems that Ford has indicated huge investment plans in the region and if everything goes well, the company is just two to three months away from finalizing things.

Quote of the Day

Honda Brio

The company feels that cutting down the engine size will be a way to cut the cost of the car without hampering its quality. The (Honda) small car will be rolled out in four variants in all.

A source privy to Honda’s small car development, tells Financial Express. Honda will debut the Brio on the 30th of this month in Thailand.

Maruti plans a ‘Made in India’ Kizashi

Suzuki KizashiMaruti India is finally set to shift its focus from entry level hatchbacks and saloons to more premium cars. Maruti tried to capture this segment earlier as well with the Vitara but failed miserably.

Now, it is all set to launch the new Kizashi in the Indian market by year end.

Maruti Suzuki, always considered an expert in the small car with 7 offerings in the segment, will have to change its image for their premium offering – the Kizashi.

Priced around Rs 17 lakh – Rs 24 lakh, the new car will go head to head with Honda Accord, the Toyota Camry and the Skoda Superb with a 2.4-liter petrol engine.

A Maruti Suzuki official -

We will get the confidence to make the sedan here only when we generate adequate sales volumes from the CBUs and CKDs. We do have a plan, but there is a long time to it

But initially the Kizashi will be brought to Indian shores in the form of a CBU which means the base price is already pushed up by more than 100 per cent (including countervailing duties, education cess and other levies).

If it generates adequate sales volumes, the strategy is to shift from CBU to CKD. But CKDs will also attract a 60% duty. The rising yen cost is providing no relief either.

In order to counter these factors the company has a long term plan to manufacture Kizashi in India in its Manesar plant.

HM shifting gears; Plans new small car

HM Ambassador

Almost everyone in the Automotive industry wants a share of the small car market pie. Soon to enter the fray would be HM. Wait who? HM aka Hindustan Motors; the parent company of the iconic Ambassador.

HM has been under the radar for donkeys years now. But the manufacturer is waking up from its hibernation and has started to hit the tabloids with some very interesting gossip.

After they made breaking news with their Amby revival announcement a while back, latest news is that they are planning to launch a hatchback and is in talks with four or five European vendors for the design, technology and engines for the new car.

HM is also planning to revamp the old Amby by early next year. The new Amby will be smaller than its predecessor in order to attract less excise duty as a result, it will be priced around 5 lakhs. The car will come in 4 new variants for which the company is already gathering feedback on its facebook page.

The company also has plans to double its car dealerships to 140 in two years. Most of the dealerships will be opened in Tier 2 and Tier 3 cities.

Volvo XC60 D5 priced at 39.5 lakh rupees (ex-showroom)

Volvo XC60you read it first on Indian Autos Blog

Twin-turbo D5 diesel manages to coax out 205hp and still deliver 13.8kmpl.

Laser assisted braking system, road stability control and traction control are some of the standard features.

Collision warning, blind spot assist are among the optional features

Reliance provides you 60% insurance rebate. Volvo Auto India provides you with 2 years free service or 60k kilometers (whichever comes first)

New dealer appointed in Coimbatore; Ahmedabad, Jaipur to follow by the end of year.

Healthy number of bookings evenly spread out, and the company is confident about its path.

click through to read more

DC’s newest creation is an aircraft on wheels

Dilip Chhabria LuxuriaBlue Hill Pvt. Ltd, a Bangalore based company has come up with what can be called the Rolls Royce of the Bus world.

The company, in association with acclaimed designer Dilip Chabbria has launched a super luxurious inter city bus service called the Luxuria in Bangalore City for passengers to Chennai.

These Volvo buses ooze out luxury. It is fitted with high grade leather seats that host a range of adjustments that can be operated electronically. The bus is also fitted with individual screens for each passenger along with movies on demand. Live Satellite TV is also available. Wi-fi is also a part of the package.

Passengers can also nibble on a range of delicacies that are available on board. Toilets are also built in. Refrigerators and microwaves are also available on-board Luxuria.

The first three services will culminate at Hotel Sabari Classic on OMR Road at Sholinganallur in Chennai and the last service departing from Bangalore will culminate at Hotel Radha Regent, Koyambedu Chennai.

Initially there are 12 buses with an investment of 30 crores that will be expanded to 250 buses in due course of time. Other cities are also being considered for tgis bus service.

The company behind this project says that this bus service is aimed at air travelers. This bus will provide all those business class & first class plane travelers similar luxuries at cheaper rate.

click through to see image gallery

Quote of the Day

spyker c8 aileron spyder

Spyker has shortlisted the potential partners and we will announce the new retail partner when the arrangements are finalised. It is our intention to launch the Spyker product in 2011.

Sales Department of Spyker cars explains when asked if India was on their radar for their exclusive supercars. The Spyker brand will be here in 2011.