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| From the desk of Strategic Resources For any query, discussion or feedback, please contact Pavan Chandra, Head of Strategic Resources at pchandra@zenithoptimediaindia.com, +91-124-4195100. Office Address : 10th Floor, Vatika Tower, Block-B, Sector 54 Gurgaon -122002, Haryana, India. |
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| Volume: XIV | May, 2008 |

| CLICK ON ANY OF THE ABOVE |
Ringside is a report that provides an overview of
happenings in categories of Airlines, Alcohol, Cars, Computers, Consumer
Durables, Financial Services, Food and Beverages, Hotels, Real Estate,
Retail, Telecom Service Providers, Two-wheelers, Skin Care and Athletic
Shoes.
Each of these will have sections on 1. Sales and market share 2. Trends
3. Launches 4. Advertising campaigns
Navigation is easy. Simply click of any of the categories of interest to
you and you will have the latest news in front of you.
Drop in a mail at
pchandra@zenithoptimediaindia.com with your suggestions and
comments.


..Source: Auto News Bulletin Dec 17- Dec 23, 2007 by Murad Baig Associates
05. According to the Society of Indian Automobile Manufacturers (SIAM), domestic passenger car sales rose by 17.15% to 98,740 units in April 2008 from 84,283 units in April 2007 – May 08
In April 2008, Maruti Suzuki India posted a 22.37% increase in sales to 59,539 vehicles, compared to 48,652 units in April 2007. Hyundai Motor India’s domestic sales grew 36.7% to 21,501 vehicles; GM reported a 24.34% hike in sales to 5,563 vehicles.
Source:
The Economic
Times,
The Economic Times
06. Hyundai Motor targets government employees in rural areas and members of gram panchayats with its new 'Ghar Ghar Ki Pehchaan' marketing initiative for Santro – May 08
Introduced on 1 May 2008, this initiative includes schemes that HMIL is offering in at least 58% Indian villages with a population of 500 or more. The company plans to utilize its dealer network for contacting panchayats and conducting regular road shows, distributing pamphlets and posters to promote the scheme.
Source:
The Economic
Times
07. India’s light vehicle market expected to grow at a CAGR of 16% to emerge as the fourth-largest in the world by 2014: CSM Worldwide – May 06
According to US-based automotive market forecasting firm CSM Worldwide, light vehicle (gross vehicle weight below 3.5 tonnes) sales in India are expected to reach 4.5 million units by 2014. New launches, particularly in the mini car (such as Tata Nano) segment will lead to two-digit growth. In 2007, India was ranked tenth with 1.7 million unit sales of light vehicles.
Source:
The Economic
Times
May 2008
08. Tata Motors has
launched the Indica V2 Xeta LPG in two variants – GLE and GLS. The Xeta LPG
GLE variant (with AC) is priced at Rs 3.27 lakhs (ex-showroom Delhi) and the
Xeta LPG GLS variant (with AC, power steering, and body colored bumpers) is
priced at Rs 3.42 lakhs (ex-showroom Delhi).

09.
Honda Siel Cars India announced the launch of its
eighth-generation Honda Accord in India. Available in three variants –
Accord 2.4, Accord 2.4 Elegance and Accord 2.4 Inspire – these cars will be
priced in the Rs 16.49 lakh to Rs 18.14 lakh range (ex-showroom Delhi).

10. SkodaIndia
launched its Fabia 1.2 MPI in three variants – Active, Classic and Ambiente
– which are priced in the range of Rs 4.87 lakh to Rs 5.80 lakh
(ex-showroom). The car is available in colours such as candy white,
cappuccino beige, brilliant silver, magic black, satin grey, corrida red and
tangerine orange.

11. Toyota Innova’s new ad campaign aims to appeal to younger audiences for whom a car is an extension of the personality – April 25
Created by advertising agency Dentsu Communications, Innova’s ‘It’s Me’ campaign captures the several aspects of car’s personality and its versatility. The ad comprises four vignettes, each showing how a woman associates with the Innova in different instances.


It begins with a woman walking the ramp and then getting into a red Innova.

The next shot shows her driving a black Innova dressed in corporate attire.


In the third shot, the same woman, in a much trendier and funky outfit, is shown getting into a silver Innova.
The following shot has
the woman executing acrobatic feats and somersaults, and dodging objects.
The car, too, dodges around, with its various features being put on display.
Finally, all these aspects come together to emphasize the multiple features
of Innova, corresponding with the different aspects of the woman, which
coalesce into ‘ME’.
Source:
Agencyfaqs
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Links provided will take you to the full articles appended at the end of the file. |
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© 2008 Zenith Optimedia.
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05. Car Sales Up 17.15 Pc, Bike Sales Up 8.31%
8 May, 2008
Domestic passenger car sales rose by 17.15 per cent in April 2008 to 98,740 units from 84,283 units in the same month last year.
According to the figures released by the Society of Indian Automobile Manufacturers (SIAM), motorcycle sales in the country during the month was up by 8.31 per cent at 501,592 units, against 463,091 units a year ago.
Total two-wheeler sales in April also increased by 8 per cent at 616,038 units, compared to 570,381 units in the same month last year.
Commercial vehicle sales during the month increased by 7.6 per cent to 33,271 units from 30,914 units during the year-ago period, SIAM said.
Car, 2-Wheeler Sales Zoom In April
2 May, 2008
The first month of the new fiscal year cheered up the auto industry. After a year of deceleration, the two-wheeler industry moved away from the negative sales graph while passenger car sales reached an all-time high in April.
The sales growth was helped by excise duty cut, apprehensions of rising interest rates after RBI’s move to tighten monetary policy further and the impending price rise indicated by all auto firms. Excise duty on cars and bikes was reduced to 12% from 16% in the Budget.
Hero Honda Motors, which had posted a flat growth in the last fiscal selling 32.46 lakh vehicles, reported a 9% increase in sales to 2.86 lakh vehicles compared to 2.62 lakh in the corresponding month last year.
Bajaj Auto Ltd reported a 24% growth in motorcycle sales to 2.03 lakh units in April against 1.64 lakh last year. Its sales had declined 20% to 18.32 lakh units in FY08.
For TVS Motor Company, a 4.81% y-o-y sales growth to 1.09-lakh units in April 2008 was its best increase since January 2007. The company had seen major reverses and its annual sales had dipped 19% to 11.51 lakh units in FY08.
Honda Motorcycles and Scooters India saw scooter sales dip 1.73% to 48,293 units in April compared to 49,143 units in the same month last year. The company’s total sales saw an increase of 8.29% to 70,988 units in April.
Maruti Suzuki India
posted a 22.37 % increase in sales to 59,539 vehicles, compared to 48,652
units in April 2007. However, sales were lower than March when it sold
64,421 cars. Hyundai Motor India saw domestic sales grow 36.7% to 21,501
vehicles. However, the increase in exports was much higher and grew 63% to
18,500 vehicles against 11,341 in previous fiscal. GM reported a 24.34% jump
in sales at 5,563 vehicles.
06. Santro Launches New Intiative To Tap Rural Market
8 May, 2008
Hyundai Motor India has launched a new marketing initiative, titled 'Ghar Ghar Ki Pehchaan' for tapping rural market for its popular Santro car.
Claiming this as a first of its kind initiative, the company said it has rolled out special schemes for government employees in rural areas and members of gram panchayats on the purchase of Santro.
Launched on May 1, the 'Ghar Ghar Ki Pehchaan' scheme will continue till July 31, 2008. Through this special rural scheme HMIL plans to touch base with at least 58% of Indian villages with a population of 500 or more. HMIL senior vice-president (sales & marketing) Arvind Saxena said: "Nearly 70% of India resides in rural areas, which presents an enormous demand base and a market too huge to overlook."
Dealers will contact panchayats and conduct regular road shows, distributing pamphlets and posters to promote the scheme, and also make villagers aware about this unique initiative. It is also in talks with a financing institution with a huge branch network to extend easy financing options for the people in rural India.
According to a recent
survey, almost 50% of the 220-million households in rural India are
potential car buyers due to the agricultural subsidies extended by the
government and also due to increase in the productivity of agri-based
products.
07. 'India To Steer Light Vehicles Market'
6 May, 2008
India is poised to emerge as fourth-largest light vehicle market in the world by 2014, riding on low-cost cars, according to a survey. And, a double digit demand growth will push India ahead of countries like Germany, Russia and Brazil, it added.
Sales of light vehicles or those below 3.5-tonne GVW (gross vehicle weight) would experience a 16% compound annual growth rate till 2014 on the back of new launches, particularly in the mini car (like Tata Nano) segment, said USbased automotive market forecasting firm CSM Worldwide.
“Light vehicle sales are expected to reach 4.5 million units by 2014, making India the fourth largest market in the world. The mini car segment is likely to remain a dominant one with the launch of Nano and other low-cost cars from Renault/Nissan and Hyundai,” CSM’s global vehicle forecasts V-P Michael Robinet told TOI. He said the rise in demand for low-cost cars might also hit the two-wheeler sales. CSM also said Tata would challenge Maruti Suzuki for market leadership, when it brings $2,500 Nano.
According to CSM, India was ranked tenth in terms of light vehicle sales in 2007 which stood at 1.7 million units. While US topped the list with 16 million units, others ahead of India in 2007 included China (7 million), Japan (5 million), Germany (3.4 million ) and Italy (2.7 million).
By 2014, while India will be able to reach the fourth position, US would continue to lead with sales of 18 million light vehicles, to be followed by China with 11.5 million and Japan with 5 million units, CSM said. Pointing out the reasons for slower growth in other markets, Neeraj Bandhu from CSM South Asia said many of them are already saturated. “They will not experience the population or economic growth witnessed in India ,” Bandhu said.
A contributing factor for growth in the low-cost cars would be the lower excise duty, which is 12% compared to the 24% for larger vehicles.
“Diesel engines will
gain market share as new technology is adopted to take advantage of India’s
high price differential for diesel fuel,” Bandhu said.
08. Tata Motors Launches Indica V2 Xeta LPG
16 May, 2008
Tata Motors has launched the Indica V2 Xeta LPG. The Indica V2 Xeta LPG is equipped with a dual fuel (petrol and LPG) engine, which reduces CO2 emissions by about 10 per cent, while delivering excellent fuel efficiency both in the city and on highways.
The new Xeta LPG comes with a 1.2 litre multi point fuel injection system
engine with two electronic control units in master-slave configuration. It
generates a maximum power of 65.3 PS @ 5000 rpm with petrol and an equally
peppy 62 PS @ 5000 rpm with LPG. The peak torque of 102Nm @2600 rpm ensures
a smooth drive in city conditions. The engine meets BSIII emission norms,
but can be upgraded to meet Euro IV norms.
The new Xeta dual-fuel LPG ensures a smooth transition between the two fuel
modes, even on the move. The electronically controlled
gas
MPFI sequential injection system provides significant safety, performance
and emission related advantages over competitive offerings.
The Xeta LPG will initially be launched in two variants -- GLE and GLS. The
Xeta LPG GLE variant (which comes with AC) is priced at Rs. 3.27 lakhs
(ex-showroom Delhi), while the Xeta LPG GLS variant (which comes with AC,
power steering, and body colored bumpers) is priced at Rs. 3.42 lakhs
(ex-showroom Delhi). The Xeta LPG variants will be available in a range of
five attractive color options, at select showrooms across the country.
Tata Motors is India's largest automobile company, with revenues of $ 7.2
billion in 2006-07. Tata
cars,
buses and trucks are being marketed in several countries in Europe, Africa,
the Middle East, South Asia, South East Asia and South America. Tata Motors
and Fiat Auto have formed an industrial joint venture in India to
manufacture passenger cars, engines and
transmissions
for the Indian and overseas markets; the company also distributes
fiat-branded cars in India.
Tata Motors’ international footprint include Tata Daewoo Commercial Vehicle
Co. in South Korea; Hispano Carrocera, a bus and coach manufacturer of Spain
in which the company has a 21 per cent stake; a joint venture with
Marcopolo, the Brazil-based body-builder of buses and coaches; and a joint
venture with Thonburi Automotive Assembly Plant Company of Thailand to
manufacture and market pickup vehicles in Thailand. Tata Motors has research
centres in India, the UK, and in its subsidiary and associate companies in
South Korea and Spain.

09. Honda Launches 8th Generation Accord In India
13 May, 2008
Honda Siel Cars India on Tuesday announced the launch of its 8th Generation Honda Accord in India. The new Honda Accord will be available in three types - Accord 2.4, Accord 2.4 Elegance and Accord 2.4 Inspire.
The price of the vehicles start from Rs 16.49 lakh (ex-showroom Delhi) and go up to Rs 18.14 lakh.
Redesigned with larger wheel base advanced and powerful engine the length and the width of the Accord has been increased by 80 mm and 25 mm.
The heart of the Honda Accord is the advanced 2.4l i-VTEC engine that delivers a power of 180 PS which is more than the outgoing Accord.
The fuel efficiency of the car has been improved by 8% and the engine meets Euro IV emission limits.
The new Accord is E10 (10% ethanol and 90% unleaded petrol) compatible.
The Honda Accord is the only car in its segment to be equipped with a five-speed automatic transmission and manual transmission with a unique 'paddle shift' option which could be operated using F1-racing inspired paddle switches.
The chassis and body of the car have been renewed by introduction of the latest Honda technology to achieve best in class handling. Together with variable gear ratio steering the new Accord becomes quicker and more agile despite its big size.
For safety the car has 6 air bags with Advanced Compatibility Engineering (ACE) body and G-Force Controlled (G-CON) technology for enhanced safety of the vehicle occupants during a collision
The interior design includes 8 way power seat adjustments with lumbar support, tilt and telescopic steering wheels, an advanced audio system, with a central multi selector USB port.
10. SkodaIndia Unveils New Fabia 1.2 MPI Model
2 May, 2008
With Fabia establishing itself in the Indian car market, ScodaIndia Friday unveiled yet another version of its popular hatch-back model, Fabia 1.2 petrol version, in three variants - Active, Classic and Ambiente.
This new version has been competitively priced between Rs.486,795 and Rs.580,174 (ex-showroom).
The new Fabia model comes with 1,198 cc petrol engine and with high torque performance (HTP), expected to enhance fuel economy and ensure low emissions. It sports a 1.2 litre engine with 4 valves per cylinder and a double overhead cam (DOHC).
The vehicle will have dual airbags, rear wash and wipe and collapsible steering wheel as standard features. The Fabia 1.2 MPI is engineered to deliver high standards of performance, drivability and riding comfort to meet growing customer expectations in the market.
Fabia 1.2 MPI will be available in colours such as candy white, cappuccino beige, brilliant silver, magic black, satin grey, corrida red, tangerine orange.
Thomas Kuehl, board member (sales and marketing) of SkodaIndia, said: "With the introduction of Fabia 1.2 MPI, we are expanding the opportunities for SkodaIndia to become a meaningful part of our modern customers' lifestyle. It carries all the attributes of the Fabia range, which have been so well appreciated in the market place."
"I am delighted to present the Fabia 1.2 MPI with HTP engine that significantly enhances drivability and fuel efficiency of the car to our Indian customers," he added.
The company has sold over 3,500 units of Fabia till April 2008. The target sales of Fabia product line is 10,000 units for 2008 wherein the share of Fabia 1.2 MPI is slated at 40 percent. SkodaIndia is confident to surpass the annual target of 25,000 units.
SkodaIndia is a fully
owned subsidiary of SkodaAuto a.s. Czech Republic (Volkswagen Group) and has
been operating in India since November 2001 with its manufacturing
facilities at Aurangabad and Maharashtra.
11. Toyota Innova Still Innovating With VFX
25 April, 2008
The latest Toyota Innova ad, It’s Me, is made up of four vignettes. Each vignette shows how the woman in the screen space associates with the Innova.
The ad is loaded with special effects and computer graphics. It has been created on similar lines as the Airtel-Google ad, which used chroma keying to produce the feature film like effect.
Shivanand Mohanty, executive creative director, Dentsu Communications, says, “The Innova brand needed to be presented in a manner to appeal to a much younger audience.” This younger audience was not just an age bracket, but those individuals who buy a car, not just for its utility and mobility, but for what the car stands for as a reflection of them. The ad aims to capture the various contrasting aspects of the car’s personality and its versatility.
The ad opens with a woman walking the ramp and then getting into a red Innova. Next, she is driving in a black Innova dressed in corporate attire. Then, it’s the same woman, in a much trendier and funky outfit, getting into a silver Innova. The next shot has the woman doing various acrobatics and somersaults and dodging things. The car, too, is dodging around, showing its various features. Finally, it all comes together to say that all these are different, but still ME. (Submit your opinion on this ad.)
The ad was shot by Far Commercials at ND Studio, Karjat, under the helm of Antonio Saraceno, an Australian director who has worked earlier with Toyota. Sar Commercials also had shot the Toyota Qualis ad about four-five years ago. The surreal scenes in which the girl walks on the ramp and the silk sheet converts itself into an Innova and the scene with the acrobatics – all of them were shot using the chroma keying method, in which a blue/ green backdrop is maintained while shooting the scene. After this, the silhouette of the scene is cut out and the desired background applied through visual effects.
The development of the background was carried out in post-production by Prime Focus, which also handled the post-production for the Airtel-Google ad, using various software such as 3DMax, Maya, After Effect, Smoke and Bojou. Bojou helped recreate a scene which had been shot on film so that new graphic elements could be placed within the simulated 3D generation.
In the first scene, where the ramp slides in and the model walks on it is totally computer generated. The black pearl finish ramp did not exist when filmed. “After studying how the model walks on the ramp, we created a measurement of how she moved. This movement was then converted into a computer graphic, which is used to measure all the other aspects involved in creating a background,” says Raj Tambaku, VFX supervisor, Prime Focus. Thus, the lighting and the blinking of these lights is all visual effects; the lights do not really exist.
“It’s a lot like magic – making you believe in something that isn’t there,” he says. The post-production cost around Rs 21 lakh.
Toyota hasn’t planned
anything else as part of the 'It’s Me campaign. However, other media may be
used later. Actor Aamir Khan has been dropped as brand ambassador.