Indian Autos blog

Chevy Cruze – 300 Series Platform fueling growth for GM India

If we talk of growing trends, here is one that certainly happening. Car makers appear to be targeting tier II and tier III markets. We saw it in the case of Ford, which has just opened 13 dealerships in these markets. Now GM India is pursuing a strategy to improve sales in rural markets.

The Chinese will also be entering the Indian commercial and passenger vehicle markets by 2011. Recently, Shanghai Automotive Industrial Corporation (SAIC) took a 50% stake in GM India and will enter the Indian market in 2011.

Carl-Peter Forster – Group CEO, Tata Motors

Tata Motors has appointed Mr. Carl-Peter Forster as new CEO of the group. Mr. Forster will be in charge of overall Tata Motors operations including Jaguar and Land Rover. Mr. Forster was the former head of GM Europe operations. On behalf of IAB, we would like to congratulate Mr. Forster on his appointment.

A tough job lay ahead for Mr. Forster, but he could not have come at a better time. The economy is recovering, money is back in the market, Tata Motors domestic sales in January was great considering competition and prior months. Well it could be the January effect (new year sales etc), but certainly a good month for Tata Motors.

Figo to be next growth engine for Ford

Ford India has opened 28 new dealership across India. With these additions, Ford currently has 164 dealer across 97 cities in India.

Clearly the focus is on growth. They may have got the right product in the Figo and with competitive pricing, this is the next growth engine after the Fiesta and Ikon.

Toyota Corolla Altis sold in India

Ok, we are so near to hearing the worst news for the automotive world. Toyota is very close to announcing a recall of the Corolla in US, which is plagued by steering problems. So much for the best selling car in the world.

Now, what puts me off is why do these things never impact the cars sold in India?

My hypothesis is simple. As an average person, I would only expect the steering components to be similar for the Corolla, irrespective of the geography where it is sold. Of course, the left/right hand drive is a visible difference and the specifications associated with it, but the overall components specifications may not necessarily be different. It does not make business sense otherwise.

The Chevrolet Beat keeping GM India busy

These are busy times for GM India. The company has announced that it would introduce a second shift at its Talegaon plant to meet the order book of Chevrolet Beat. The shift is being introduced as the Talegaon plant manufactures the Spark and the Beat and both these cars have received a good response in the market.

GM will also be introducing a third shift in their Halol plant which manufactures Aveo, Optra and Tavera to meet market demand. Here is an example of how different markets work.

Here’s one we are closely following – the Ford Fiesta Hatchback.

This is a five door hatch back that will soon be launched in North America (US and Canada). However, it is possible that this car could also find its way to India in 2011. A sedan version is also in the offering for the global market.

Pictures of this car on test are available elsewhere as well, but we may be the first to provide scoops of the front end. With that we can also identify some of the external features of this car.

To start with, the build quality looks absolutely sturdy. Appears to be a very heavy car with a meaty engine to pull it through. In comparison to the current Fiesta in India, this car has a aggressive design with up-swept lines and a broader waist line. The body lines are however smooth and clean. It gives the car a stocky feel. It is miles ahead of the Indian Fiesta. Infact, it makes the current version look like an outdated piece of soviet machinery.

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Tata Nano could teach school students driving manners and safety as it is easily accessible

True, the dream has become a reality. Kudos, to Mr. Ratan Tata and team, it is a great achievement to see the Nano. Honestly, before I saw the car, I was one of those people who was against the idea of seeing it on the roads. I was completely selfish in thinking – what a Rs. 1 lakh car? that’s more traffic on the roads.

I even agreed with the idea that this car would add to air pollution and other environmental problems (as its target customers are at the bottom of the pyramid – the masses). I do not turn my engine off at the signals, my aircon is constantly on and I have two cars. How can I agree to the idea that the Nano adds to the pollution? And what can I do about the traffic?, It is for the government to manage. I can only contribute by staying off the roads or using public transport.

After seeing the Nano, I felt like a complete idiot. First, how did Tata pull it off? The Nano appealed to me as one of the best designed and engineered cars from the Tata stables. Then the question? Why should I buy this car? for that matter why should any one buy this car?

*Let us stick to basics. I would not like to get in to the specifics of the Nano, there is much info available on that.

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The series of recalls recently will divert Toyota’s attention towards earlier cars

If you list out some of the reasons for an auto company to grow and sustain growth – Quality, new car development and brand reputation would be there on that list. At least one of these would be right on the top of that list. At a very high level, I was thinking of the implications of recent recalls by Toyota on the company’s immediate future.

Let’s see, Quality is definitely under scrutiny after the recall. In fact, Toyota is being cautious and self scrutinizing its other car models. After the Prius recall, Toyota have notified the NHTSA (National Highway Traffic Safety Administration) in US that some of the 2010 Camry models could be prone to a leakage in the brake fluid. The NHTSA have also received complaints about the steering system on the 2009 and 2010 Corollas, which complicates the current situation.

New car development might also be questionable. With efforts (time, money, dealers, people etc etc) being invested in managing these recalls, it may be a case that new car development is on the back burner. Let us hope this is not the case. As of today, the company is spending much effort on managing the recalls of cars like the Camry or the Prius that are already generations old.

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