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This tracker has been compiled from external sources and does not necessarily reflect the views of the company. Links provided will take you to the full articles appended at the end of the file.

© 2008 Zenith Optimedia.

 

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4. Car Sales Dip In July; 2-Wheeler Sales Up 19%

12 August, 2008

 

Passenger car and utility vehicle sales in the country marginally dipped while commercial vehicle sales showed moderate growth in July.

 

However, two-wheeler sales substantially went up last month, according to the data released by the Society of Indian Automobile Manufacturers (SIAM).

 

The carmakers in the country together sold 1,526 units less than they sold during the same month last year. Similarly, the combined utility vehicle sales also dropped, thanks to the additional tax burden on vehicles above 1500 cc apart from rising fuel and finance costs. The total passenger vehicle segment that includes cars and utility vehicles declined 1.4 per cent to 1,13,822 units.

 

Tata Motors, Honda, Mahindra Renault and Ford reported drop in sales while major carmakers Maruti Suzuki and Hyundai showed marginal increase. General Motors sales grew substantially to 4,415 units. In utility vehicle segment, Mahindra, Tata Motors and GM showed decline while Toyota last month sold 609 UVs more than it sold during the year-ago period.

 

“This is a sluggish phase for the Indian automobile industry. The passenger car market is not going to improve in the near future,” said Mr P. Balendran, Vice-President, Corporate Affairs, General Motors India. Rising finance cost is the main reason while input cost, fuel price and global recession also contribute to the negative trend, he said. “Some numbers may come from new introductions but the general trend will be negative,” he said.

 

The total commercial vehicle sales at 34,359 in July are marginally higher than the sales during the corresponding period last year. However, the combined sale in medium and heavy commercial vehicle segment (MHCV) at 17,557 is a few hundreds less than the year-ago period.

 

“The MHCV segment continues to be flat as rising interest rate, fuel cost and liquidity crunch are putting transporters under pressure,” said Ms Vaishali Jajoo, Auto Analyst, Angel Broking.

 

Two-wheelers
The two-wheeler segment reported 19 per cent growth by selling close to six lakh units last month. The growth is mainly attributed to the low base effect. In motor cycles sub-segment, market leader Hero Honda (2.6 lakh units) and others including TVS, HMSI and Yamaha showed growth while the second largest player Bajaj (1.13 lakh units) showed slight decline. Three-wheeler segment also showed flat growth.

 

Exports
On export front, passenger cars, two-wheeler and LCVs showed substantial growth while medium and heavy commercial vehicle segment declined. According to analysts, the industry as a whole is showing signs of decline. “The negative factors would lead to low volume in the current year,” said Ms Jajoo.

 

 

 

05. Maruti Rides On Old Cars To Push New Sales

14 August, 2008

 

At a time when car sales have started moving southward for the first time in nearly three years, country's largest carmaker Maruti Suzuki is turning to 15-20-year-old cars to push new ones through exchange.

 

The company has tied up with scrap dealers across India to dispose of old cars exchanged for new cars and is welcoming customers to come with old cars of any make for exchange.

 

"We have tied up with 15-20 people dealing in scraps in each of the cities that we are present," Maruti Suzuki India Chief General Manager (Sales Support) Ravi Bhatia said.

 

The company has started giving offers to customers worth up to Rs 40,000 while purchasing a new car through exchange, while inviting bids from scrap dealers at the same time for the old cars.

 

He said the move has helped the company in pushing sales significantly through its pre-owned car business 'TrueValue'.

 

"Ever since we have started accepting 15-20 year old cars, exchange has gone up from 12 per cent to 20 per cent and it has helped an entry level product like Alto to become a replacement model," Bhatia said.

 

Earlier Alto has been considered to be the car for the first time buyer. The exchange offer has helped about 12 per cent of total sale of new Altos coming from it.

 

Initially, TrueValue accepted only Maruti cars, which were not older than 10 years and ran less than one lakh kms.

 

Recently, it has extended the scheme to all cars of any manufacturer and of any age. "When we did a market study, we saw a latent potential where people wanted to exchange their old cars but did not know where to go and was not getting good value from scrap dealers as well," Bhatia said.

 

 

 

06. Volkswagen Plans To Launch Compact Cars And Also To Enter Pre-Owned Car Business In India

27 July, 2008

 

Through pre-owned car business accompany aims to divert customers from current market-leading brands like Maruti and Hyundai to Volkswagen cars. With an investment of around Rs2400 crore for a factory in Maharashtra, company would be launching the premium cars first followed by small cars. Company also plans to launch its car 'Beetle' in India.

 

 

 

07. Tata Motors Launches New Version Of Indica

25 August, 2008

 

Tata Motors launched the new generation of its flagship passenger car Indica on Saturday. The new model called ‘Indica Vista’— 3.8 m long and 1.7 m wide — is larger than the existing Indica and has more interior space than the original one. The car will initially be available in seven variants across 170 dealerships in the country at a price range of Rs 3.49 lakh to Rs 4.88 lakh.

 

“There is virtually no carryover of the existing Indica in the new Indica,” said Mr Rajiv Dube, President (Passenger Cars), Tata Motors, at the press conference announcing the launch of the new car. “It will certainly be a step-up from the existing Indica,” he said.

 

Indica Vista will be produced at the Fiat-Tata plant at Ranjangaon near Pune which has an annual production capacity of 2 lakh cars. Tata Motors has invested Rs 1,700 crore for the development of the new car which took about four years to make. “The investment is for both this product and what we are doing in Ranjangaon for Fiat,” said Mr Dube.

 

Delay
When asked why the launch of the new model was delayed, he said, “We were not satisfied with the product. When we aren’t quite certain that we are launching a fine product we would rather delay it.”

 

Mr Dube said that this was a conscious delay to fine-tune the product. “We wanted to fine-tune the way it drives. There were some small points that discerning customers will notice. We were giving attention to those attributes regarding its fit and finish,” he said. Mr Dube said the Indica Vista would surpass the sales volume achieved by its predecessor over a decade.

 

About 9 lakh Indicas are running on Indian and overseas roads. Certainly, if we had launched in a market that is not slowing down, the sales would have been higher.

 

About exports, he said, “We would be hesitant to open multiple markets at a time. We will be ready for exports in six months’ time.” He also said that the alternative fuel variants of the car would come at a later date.

 

Favoured cab car
“I am not diffident about the fact that it is one of the most loved cab cars. Why the commercial segment prefers Indica is because it is the most economical car to own and maintain. No other car has a diesel offering at that price,” Mr Dube said when asked about the existing Indica widely being used as a taxi car. About the sales prospect of Indica, he said, “What we would not want is the car to be preferred by the commercial segment alone,” he said.

 

Phasing out variants
With the launch of Indica Vista, Tata Motors is phasing out seven of the 14 variants of the existing Indica. The seven variants will exit the market in a year’s time. The existing Indica will continue with a rationalised portfolio — the lower versions of the 1.2L Xeta and the 1.4L naturally aspirated IDI diesel and one version each of the DICOR and TCIC diesel within the Rs.2.6 lakh to Rs.4.88 lakh price range.

 

 

 

08. Fiat 500 Now In India

20 July, 2008

 

Fiat 500, the two-door lifestyle car from the Italian automobile manufacturer, was launched in Mumbai on Friday.

 

The car enters India a little over a year after it was introduced in the European market. The car priced at Rs 14.82 lakh (ex-showroom Delhi) will be available in two versions — Lounge and Sport — at select dealerships in Mumbai, Delhi, Bangalore, Hyderabad, Pune and Chandigarh-Mohali.

 

“This is a lifestyle product. We expect to sell a few hundred cars in the next 12 months,” said Mr Rajeev Kapoor, CEO, Fiat India.

 

The car will be powered by the 1.3-multijet engine capable of generating 75bhp of power. It will be available through the imported CBU (completely built unit) route and the company will facilitate the import. Fiat has also made provision for customising the car.

 

The launch of the 500 is a precursor to the launch of other Fiat models such as Bravo, Linea and the Grande Punto in the Indian market, company officials said. The car will be available in 11 colours. Since its launch more than a year ago, the Fiat 500 is doing well, defying the company’s own estimation, said Mr Marco Napodano, Head, Commercial Fiat India. It has so far received 2.22 lakh orders worldwide and the company has sold about 1.15 lakh units so far, he said.  

 

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