Sales of diesel-run cars to slowdown in coming months

The sales figures of diesel variants of popular cars in India, which have been showing an upward trend until recently, is expected to witness a decrease in coming month as the govt has decided to hike the price of fuel in the country. The major contributor to this expected decrease in the demand for diesel run cars is the narrowing down gap between petrol and diesel prices, due to which many prospective buyers of diesel variants are now moving towards petrol versions. While exactly four years back in June 2006, the gap between petrol and diesel price was around Rs 15 in national capital, the current difference between both of these fuels is only Rs 11.56.

According to Mr Ankush Arora, vice-president (sales & marketing), General Motors India, if the price of diesel moves up again and comes further closer to petrol, there would certainly be a shift in buying behavior as people would prefer to opt more for petrol vehicles. He was speaking to a leading business news daily in India, Mr Arora added that the shift could be immediate in small cars where monthly fuel bills is an important factor in purchasing decisions.




In the last few years, the demand for diesel run cars has been increased by a considerably good margin. At present, the diesel run cars accounts for the 30-35% of the total sales of the country, as against an estimated figure of 20-25% in the year 2007.

However, the diesel variants of popular cars in India like Maruti Swift, Skoda Fabia, Ford Fiesta and Maruti Swift Dzire are still attracting a higher number of buyers as compare to their petrol counterparts. While on the contrary, the petrol versions of recently rolled-out new cars in the Indian market like Ford Figo, Volkswagen Polo, Hyundai i20 and Maruti Ritz are giving a neck to neck fight to their diesel counterparts.

Source:- Sales of diesel-run cars to slowdown in coming months - New Cars

Read more »

Demand for petrol run cars surges-up

The Indian automobile industry, which has been going through a robust growth phase since the starting of year 2010, is struggling to meet-up with the sudden increase in the demand for petrol run cars. Interestingly, the news came at a time when auto-biggies in the country are mulling the option of launching the diesel versions of their popular cars so that they can pace-up with mounting demand backlog.

The sale of petrol variant is surging though the diesel run cars still sell more in sheer numbers, as per a statement given by Mr Shashank Srivastava, Maruti’s chief general manager (marketing), to a leading business news daily. Mr Srivastava added that petrol run variants forms around 37% percent of the total sales of the Maruti Swift models in the Indian market which has increase by 5% percent as compare to the last years sales.




However, the diesel variants of popular cars in India like Maruti Swift, Skoda Fabia, Ford Fiesta and Maruti Swift Dzire are still attracting a higher number of buyers as compare to their petrol counterparts. While conversely, the petrol versions of comparatively new cars in the Indian market like Ford Figo, Volkswagen Polo, Hyundai i20 and Maruti Ritz are providing a neck to neck fight to their diesel counterparts.

According to market analysts, as the gap between petrol and diesel prices has been narrowed-down in last few months, many prospective buyers of diesel variants are now moving towards petrol versions. While exactly four years back in June 2006, the gap between petrol and diesel price was around Rs 15 in national capital, the current difference between both of these fuels is only Rs 11.56. difference.

Source:- Demand for petrol run cars surges-up - New Cars

Read more »

Magneti Marelli aims high for Indian market

Magneti Marelli, a Fiat group owned auto-component maker is aiming to enhance its revenue to Rs 2,000 crore by year 2015, through its Indian operations. The company is expecting that the Indian auto market will grow faster as compared to its counterparts around the world.

India will continue to grow higher than the global markets. Company's target is to increase Indian sales to 5 per cent of the total expected global sales of 7 billion euro (about Rs 40,000 crore) by 2015, as per a statement given by company's Chief Executive Officer (After-market Parts & Services) Dino Maggioni to a leading news agency. He added that, by that time, India will be just behind the company's Chinese operations, which is expected to contribute 6-7 per cent of its total sales.




Mr Maggioni added that the Indian operations contributed about Rs 230 crore to the company's total revenue from the global market which stood at Rs 25,600 crore, last year. According to him, India is a very strategic market for the Italian firm and it expects to double its sales in the country by year 2010. He further elaborated that the company is very strong in Europe and Latin America, which is the reason why it has plants there. In India the company works in a joint venture model with other partners and it is good for the country. He added that the firm doesn't have any plan to set up its own unit here.

The Italian auto-component giant currently has seven production facilities in India which includes its joint venture facilities with major Indian auto makers like Maruti Suzuki, Tata Motors and Sumi Motherson Group. The company deals in both manufacturing specific and after-market auto components .

Source:- Magneti Marelli aims high for Indian market - New Cars

Read more »

Fuel efficiency to play a major role in car sales in India

The Indian auto market, which is home to a large number of middle class buyers is also one of the most cost and mileage sensitive auto-markets in the world. The major auto makers around the world have been mulling over launching their low cost fuel efficient cars in the Indian market, so that they can capitalize on this high growth potential that exists here. Now, as the price of petrol has increased to a considerably high level in the last few years, the high mileage cars are definitely going to be among the first choices of the buyers.




The Tata Nano, which was launched in the Indian market in March 2009, has set a benchmark for major auto makers around the world to develop low-cost compact cars for the emerging markets like India and China with incredibly high fuel efficiency. The upcoming ultra low cost car in the country from the Nissan-Renault-BajaJ Joint Venture, which claims to offer a mileage of 30 km/l, can be seen as another trend setter in this direction.

Besides this, the diesel run cars, which are way more fuel efficient than their petrol counterparts, have been emerging as another preferred option for the buyers. Cars like Ford Figo and Volkswagen Polo, the new entrants in the compact car segment, have been launched in both diesel and petrol versions in the country so that no stone is left unturned in attracting the maximum possible buyers.

Source:- Fuel efficiency to play a major role in car sales in India - New Cars

Read more »

Auto Industry hails the govt's move to decontrol petrol prices

The automobile industry of India, which has been witnessing the best ever growth momentum since the starting of this year, has welcomed the government's move of decontrolling petrol prices. The industry has termed it as a prudent way to strengthen the continuously growing economy and also stated that the ongoing high growth momentum will continue to boost the sector despite the recent hike in fuel prices.

Mr Pawan Goenka, the President of the Society of Indian Automobile Manufacturers (SIAM) told to reporters in a statement that the decision to link fuel prices to market prices is the only prudent approach for a rapidly growing economy like India. The SIAM also stated that it hopes that diesel pricing will also be made
market-driven in the coming months and the increase in the price of fuel will not harm the car sales in India.




The industry body further stated that the auto sector anticipates that this increase in fuel prices may not have any adverse impact on sale of vehicles due to the buoyant market demand for vehicles in the country.

The largest car maker Maruti Suzuki has hailed the government's move and stated that decontrolling petrol prices is a good and sound step taken by the government. Mr R C Bhargava who is the Chairman of the company said that in the short-term, sales of small cars may jump more, while big cars may witness a slowdown in sales. While at the same time, General Motors India's Vice-President P Balendran has stated that the industry will be affected in the short-term, but in the long run, it will be able to absorb.

Source:- Auto Industry hails the govt's move to decontrol petrol prices - New Cars

Read more »

Carnation Auto forays into premium car servicing business

Carnation Auto, a brain child of ex-Maruti Suzuki chief Jagdish Khattar and a leading multi-brand car service provider, announced on Friday that it is starting a premium car servicing facility in Gurgaon in partnership with Magneti Marelli (a Fiat Group firm).

When the company started its operations in the field of multi-brand servicing in 2008 for entry-level cars, people with luxury cars kept telling him to start it for their products also, Mr Khattar told reporters on the occasion. The company didn't have the competence, so it tied up with Magneti Marelli last year and it is starting it today, he added.




Carnation Auto has a vast business network in the Indian market that comprises of 20 servicing workshops in 13 cities across India. Besides this, the company has initiated the premium car servicing facility named as 'Auto Premio Solutions' at its Gurgaon facility.

Moreover, the Italian firm Magneti Marelli announced its entry into the business of after-market spare parts, in which it will supply the co-branded auto components. The after market division of the company possesses more than 30,000 spare parts across 30 different products.

According to Mr Magneti Marelli chief executive officer of After Market Parts and Services, Dino Maggioni, the company will sell products that are imported from its own facilities as well as sourced from local manufacturers. He added that the company is planning to upgrade them, mainly to stop usage of spurious parts. For that, it will have to train the local people.

Source:- Carnation Auto forays into premium car servicing business - New Cars

Read more »

Malaysian auto-maker Proton to launch a compact-car in India

Malaysia based leading car maker Proton announced on Tuesday that it was in talks with an Indian car maker for the production of Proton cars in India so that the company can mark its entry in one of the world's fastest growing auto market. The company further said that it will enter into a partnership with UK's sports car maker Lotus for manufacturing compact hatchbacks for markets like Asia and the Middle East.



Mr Syed Zainal Abidin Syed Mohamad Tahir, Proton's managing director said while briefing to the reporters that the company was in talks with one auto-maker, however, he refused to mention the name. He hopes that company can produce the car in less than two years and it will be hybrid and combustion models.

Mr Syed Zainal further elaborated that the company will collaborate with Lotus to manufacture a new small car, powered with a 1.0- to 1.5-litre engine. He also denied the media reports about its possible tie-up with India's leading utility vehicle maker Mahindra & Mahindra, and added that there was a discussion between both the companies several years back.

Besides this new small car, the company has another compact car 'Savvy' in its global portfolio. The Savvy model will be powered with a 1200cc engine which will be out-sourced from Renault. It is speculated that the company may look for possibilities of sourcing engines from Renault for its India bound compact car too, as Renault has invested heavily at its engine production facility in Chennai. However, there is no confirmation form either of the company on this front.

Source:- Malaysian auto-maker Proton to launch a compact-car in India - New Cars

Read more »

Major Auto-Makers spend big bucks on Online Marketing

A new era of online-marketing has begun in the Indian auto Industry in the last few months as car-makers are now restructuring their marketing investment in a bid to increase focus towards new-age digital advertising. Major auto-makers in the country like Maruti Suzuki, Hyundai India and Honda Siel Cars India are now turning their attention to tech-savvy buyers who fall in the age group of 25-44 years. All of these companies have increased their online marketing budgets significantly in recent months.



The scope in online marketing is increasing by leaps and bounds with the growth in the number of Internet users in India. Through chasing customers online, car-makers can easily gather typically required consumer profile. On an average the auto-industry has invested at least 5-7% of its total marketing budgets online as against the marginal spending of about 1 percent in the earlier period, said Mr. Amit Bhartiya, general manager of ad network Komli Media's online audience measurement and analytics platform Vizisense, to a leading business news daily in India.

According to a study done by Adview, Vizinsense's online ad monitoring tool in March, auto companies account for around 10% of total online advertisers in the Indian market, following the telecom companies that spend about 12% in total for the same. Moreover, car buyers can find exact and complete information on features, specifications and pricing of any car available in India or to be imported from abroad, online, as compared to the information available with the OEM dealers.

Source:- Major Auto-biggies spend big bucks on Online Marketing - New Cars

Read more »

Ford, Maruti and M&M all set for another price hike

Leading car-makers in India are planning to increase the price of their respective cars in the country starting from July this year, blaming the skyrocketing cost of raw materials. The Companies like Maruti, Mahindra & Mahindra, Ford and Toyota are banking upon robust demand and hoping that a small price hike will not affect the ongoing sales momentum.

We should mention here that this is the fourth time in last six months when car makers have decided to increase the price of their cars in India. The auto industry in India first witnessed the price hike in January due to the increasing row material cost, following another price hike in March and April due to an increase of 2% in excise duty and implementation of new BS-IV emission norms respectively.

If commodity prices continue to rise at the current rate, the company will be forced to go in for a price hike, as per a statement given by Mr Pawan Goenka, President (auto and farm division), M&M. Overall, the commodity price curve has gone up by 20-25%, added M&M's Chief of Operations (auto division), Rajesh Kumar.

On the other hand, car-makers including Toyota Kirloskar, Maruti and Honda have already indicated that any decision on the price hike will be taken in next month. Ford India has already announced that it will increase Figo's price by 1 to 2 percent starting from July this year. The company will assess the effect of a rise in commodity prices on its products by the end of the third quarter of this year, as per a statement given by Ford India, President and MD Michael Boneham.

Source:- Ford, Maruti and M&M all set for another price hike - New Cars

Read more »

Chinese auto makers eyeing India as its low cost export base

Indian auto Market with its success, spreading like wildfire is hogging a lot of attention from major auto players around the world. A special mention to the Chinese auto market that stands first in the world in terms of growth in the auto industry sees India as a low export cost base. The Indian auto industry was in its golden phase when it reported a 30% growth in car sales in the month of May.



Chinese auto players like Foton, SAIC, FAW, Chery, Geely and Great Wall have huge plans for India that include the introduction of everything from mini vans to passenger cars to heavy duty vehicles. While SAIC and FAW are paving their way to the Indian market through global joint ventures, others plan to do the same but with Indian partnership.

General Motors, is one such company that plans to introduce its models in China through a three way alliance with Wuling and SAIC. SAIC that operates in collaboration with GM in China has purchased 50 percent of GM India. GM, besides planning to launch mini vans and other light vehicles will also introduce trucks with its other business partner, FAW. Foton is yet another Chinese company that wants to lay hands on the Indian market. It plans to invest 200 million dollars to set up a 100,000 unit plant utilizing locally sourced parts and components. Foton's proposal to India not includes tractor trailors and trucks but also SUVs and pick ups

The remaining companies like Chery, Geely and Great Wall are holding discussions with ICML,International Cars and Motors, car division of tractor manufacturer Sonalika, informed a source. However ICML's CEO Deepak Mittal maintained silence on the subject.

Chery, Geely and Great Wall are in advanced talks with International Cars and Motors (ICML), the car division of tractor maker Sonalika, said a person with direct knowledge of the development. ICML’s CEO Deepak Mittal, however, refused to comment.

Chinese companies not only want India to be a low cost but a high quality export base, a strategy that Hyundai and Maruti have successfully adopted and implemented. Component companies like Yapp Zoom Automotive systems has chosen Mumbai's Zoom Developers as its partner. The JV has already started production earlier this month, at its manufacturing plant located at the Ford's Suppliers Park. Yapp also also confirmed business from Ford Fiesta and Ford Figo. It also, currently a 100 percent supplier for Volkswagen Polo and Skoda Fabia.

Source:- Chinese auto makers eyeing India as its low cost export base - New Cars

Read more »

Indian Auto industry's output hit by 5-7%

According to the industry sources, the production capacities of many major auto makers in the Indian automobile industry is getting affected by approximately 5-7 percent due to severe shortage in supply of components.

Pawan Goenka, Mahindra and Mahindra's Auto and Farm Equipment's President, commented that tyres, casting and Fuel are the three manufacturing inputs that are majorly hit and at present nothing can be done about that fact.



When inquired, whether the components could be imported, he exclaimed that, this is not a commodity which in case of shortage can be imported from other countries. Each of these three components needs a certain time period to be produced.

Goenka also added that there has been considerable growth in the demand as far as the Indian automobile sector is concerned and this is another reason that has added to the crunch. Clearing the position, he said that, had the growth been around 10-12%, the condition of major manufacturing outlets would have been better.

Source:- Indian Auto industry's output hit by 5-7% - New Cars

Read more »

Record 1.48 lakh cars sold in India in May 2010

The Indian Automobile industry has witnessed the best-ever car sales in the month of May 2010 with sales figures crossing the 1.48 lakh units as against, 1.13 lakh units sold in same period, last year, accounted for a jump of 30% in an year-on-year, as per the data released by the Society of Automobile Manufacturers of India (SIAM). The major contributor to this growth was the entry of a series of new compact-cars in the Indian market in the last few months including Chevrolet Beat in January 2010, Ford Figo and Volkswagen Polo in March this year and new Maruti Wagon R in April



While commenting on the performance of Indian auto-industry Mr Vishnu Mathur, director-general of SIAM, told the reporters that May 2010 is the best ever performance period by the Indian auto industry, which is expected to continue in the next half of 2010. Indian economy is growing very rapidly. The per capita income has almost touched $1,000 and that's a magical figure and also a threshold for automobile demand. he added.

According to the SIAM, stable interest rates and easy availability of finance are the major contributors in this incredible growth figure of May 2010.

Maruti Suzuki India remains the major contributor to this growth with setting a bench mark by crossing the 1 lakh unit sales mark, this month. The company sold more than 1,02,175 units during May 2010 including sales in both domestic and foreign markets.

Tata Motors, a leading car manufacturer in India, performed considerably well during this month with posting a jump of 41% in total sales at 56,779 units, as against the sales in the same month, last year.

While Hyundai India, the second largest car manufacturer in the country, reported a sales increase of 15.52 per cent in the domestic market in May 2010. The company managed to sell 27,151 units of its cars in this month as against 23,503 units sold in May 2009. Major car makers including GM, Toyota Kirloskar, Ford and Fiat India also performed considerably well during the month.

Source:- Record 1.48 lakh cars sold in India in May 2010 - New Cars

Read more »

Car sales in India jumped 30% May 2010 over last year

Auto Industry in India has witnessed a high growth momentum in the 5th consecutive month of this year with the annual car sales in India jumped by 30% in May 2010. The domestic car-makers managed to sell around 148,481 cars in total during the month as against 113,810 units sold in a year ago period, as per the data released by the Society of Indian Automobile Manufacturers (SIAM). On the other hand the sales of other vehicles including trucks and buses increased by 58 percent to 48,580 units in the month, the release added.



Maruti Suzuki India, the country's largest car maker, remain the major contributor to this growth with setting a bench mark during this month by crossing the 1 lakh unit sales mark .The company sold more than 1,02,175 units during May 2010 including sales in both domestic and foreign markets. According to Mr Mayank Pareek, managing executive officer(Marketing & Sales) at Maruti Suzuki India, the introduction of newer models added incremental numbers and raised the tally.

Tata Motors, leading car maker in India, performed considerably well during this month with posting a jump of 41% in total sales at 56,779 units, as against sales of same month of last year.

While Hyundai India, the country's largest car exporter, reported a sales increase of 15.52 per cent in the domestic market in May 2010. The company managed to sell 27,151 units of its cars in this month as against 23,503 units sold in May 2009. Besides this, major car makers including GM, Toyota Kirloskar, Ford and Fiat India performed considerably well during the month.

Source:- Car sales in India jumped 30% May 2010 over last year - New Cars

Read more »

Car sales sky rocket

Indian car market is all set to top the world in the future and the phenomenon has already started with car sales sky rocketing. The sales reached at an annual high of 39.5 per cent in April this year. Usually in April buyers are subdued after bunched purchases at the close of the financial year in March to take advantage of tax breaks on depreciation.




The figures are very encouraging with domestic sales at 143,976 in April against last year’s 103,227 a year ago. Market leader Maruti Suzuki sold 80,034 units as per the figures of the Society of Indian Automobile Manufacturers (SIAM).

Players like General Motors India and Toyota Kirloskar saw a 50 per cent jump in year-on-year sales. Toyota sold 420 units in the MUV segment in Chennai alone.

Source:- Car sales sky rocket - New Cars

Read more »

MLR Motors to roll-out new hatchbacks in India

MLR Motors, a Hyderabad-based auto-maker which is planning to launch new hatchbacks in India, has received sanction of 225 acres of land in Medak district from the state govt of Andhra Pradesh. However, the company hasn't disclosed any details regarding this Rs 1,100 project. The company has outsourced some of its manufacturing processes from third-party players which in turn has reduced the estimated project cost to around Rs 1,100 from the original cost of Rs. 1,250 crore, said M. Lokeshwar Rao, managing director, MLR Motors Pvt Ltd., in a statement to a leading English news daily. Banks will lend Rs 650 crore.



The promoters and equity investors will pump in Rs. 200 crore each, while the remaining Rs 50 crore will be borne by the government, he added in his statement.
It is to be mentioned here that MLR Motors, a subsidiary of Hyderabad-based Lokesh Machines (LML), had announced that it was planning to launch two compact diesel cars powered with a 850-900cc and a 1,500cc engines respectively. The MLR Motors currently manufactures three wheelers in the Indian market.

Source:- MLR Motors to roll-out new hatchbacks in India - New Cars

Read more »

Industry witnesses mounting car sales in May 2010

The Indian automobile industry witnessed yet another month of robust growth as almost all major car makers performed considerably well during May 2010. The growth momentum which was initiated in the month of January this year is seems to be unspoiled since then as industry achieved a positive growth across all segments. Maruti Suzuki India, the country's largest car maker, has set a bench mark during this month by crossing the 1 lakh unit sales mark .



The company sold more than 1,02,175 units during May 2010 including sales in both domestic and foreign markets. According to Mr Mayank Pareek, managing executive officer(Marketing & Sales) at Maruti Suzuki India, the introduction of newer models added incremental numbers and raised the tally.

While Hyundai India, the country's largest car exporter, reported a sales increase of 15.52 per cent in the domestic market in May 2010. The company managed to sell 27,151 units of its cars in this month as against 23,503 units sold in May 2009.

Besides this, Fiat India was among the fastest growing companies reporting a domestic sales increase of 82.2%. Cumulative sales of the company for the year (including exports) increased by 69.2% to 4,257 units. On the other hand Toyota Kirloskar Motors India Ltd. posted a sales growth of 54.18 percent to 6050 units in the month of May 2010, as against 3,924 units sold during the same month last year.

Tata Motors, leading car maker in India, performed considerably well during this month with posting a jump of 41% in total sales at 56,779 units, as against sales of same month of last year.

Among the luxury car makers, the Mercedes-Benz India was the top performer for May 2010, with selling a total of 410 units of its cars in India. Introduction of CGI technology in India has been welcomed by our customers. This reaffirms our strategy to offer latest technology and class-leading products for our Indian customers, Dr. Wilfried Aulbur Managing Director and CEO of Mercedes-Benz India, said in a statement.

Source:- Industry witnesses mounting car sales in May 2010 - New Cars

Read more »

DSM joins hands with ARAI for automotive development in India

Two leading organizations of automobile industry in India have joined hands to work in the field of automotive development in the country. The Automotive Research Association of India (ARAI) and DSM have entered into an alliance to take the automotive developments in India to a new level. Where the DSM is a leading organization in the field of Material sciences the ARAI is a well known name in the automotive research.



ARAI, which is a co-operative industrial research association established by the automotive industry and Ministry of Industries, Government of India, plays an important role in providing R&D, testing, certification, homologation and framing of vehicle regulations. The organization is empowered with highly qualified manpower and all required facilities.

Mr Srikant Marathe, director, ARAI, said that ARAI will contribute through its expertise in automotive testing equipments, systems knowledge, and standards for four, three and two wheelers. For ARAI, vehicle weight reduction is a key focus area to address fuel consumption and emission concerns. This alliance will be extremely useful to achieve this objective. This alliance will also go a long way in bringing in the advantages of engineering plastics in areas that were so far the domain of metals.

According to Mr Roelof Westerbeek, president, DSM Engineering Plastics, DSM plays a leading part in addressing some of the world’s most pressing issues such as climate change and energy consumption. Company’s knowledge of the use of its materials in automotive applications and vast experience in integrating parts with engineering plastics has directly contributed in making components lighter – hence lower fuel consumption and reduced pollution. The company will bring in its material science and application expertise to this alliance.

Source:- DSM joins hands with ARAI for automotive development in India - New Cars

Read more »

High demand, the new growth phenomena for auto industry

auto-industry of India, which is one of the fastest growing auto market in the world, is witnessing a high demand scenario in every segment of cars including entry level sedan Maruti Swift Dzire and luxury SUV Toyota Fortuner. According to Mr Mayank Pareek, managing executive officer (marketing and sales), Maruti Suzuki, the demand has been overwhelming in the market, especially for the newer models that were keenly awaited. It has been more than what the company anticipated.



Toyota Fortuner, a luxury SUV which was launched in India in Oct last year, is not available for bookings since the month of January as company has stopped receiving bookings for this model in a bid to clear the existing long backlog. At the time when bookings were stopped the Fortuner model was available on a long waiting period of three to four months. According to Mr Sandeep Singh, deputy managing director (marketing), Toyota Kirloskar Motors, the company dosn't has enough production to match the demand that has been phenomenal and beyond its expectation. The bookings have been closed as the company dosn't want people to wait for delivery endlessly after paying hefty booking amounts.

On the other hand, Maruti Swift Dzire, India's best selling entry level sedan is going through a robust demand phase with waiting period reaching up to three months for some variants. The Dezire model, which was launched in India in March 2008, is enjoying the top position in its segment since then. In recently launched compact cars the Volkswagen Polo and Ford Figo are among the highly demanded cars in India, both of these cars are enjoying a waiting period of about 1 to 2 months.

However, car-makers in in India are working hard on their expansion plans to enhance their production capacity and catch-up with this rising demand. This includes GM, Toyota, Maruti, Ford and Volkswagen.

Source:- High demand, the new growth phenomena for auto industry - New Cars

Read more »

Malaysia's Proton to launch a new compact car in India

Proton, a Malaysia based car maker, is planning to make its debut in the Indian market with launching a small car with a competitive price tag. The new car will be based on the the EMAS concept to which company has presented at the Geneva Auto show last month. The new small car will be a five-door hatchback designed by an Italian firm Italdesign Giugiaro. The concept which was shown at the Geneva auto show was a four-seater model with a total length of 3,550-mm.



The company is aiming to sell this car in markets like India and China, which are one of the fastest growing auto-markets in the world. Besides this new small car, the company has another compact car 'Savvy' in its global portfolio. The Savvy model will be powered with a 1200cc engine which will be out-sourced from Renault. It is speculated that the company may look for possibilities of sourcing engines from Renault for its India bound compact car too, as Renault has invested heavily at its engine production facility in Chennai. However, there is no confirmation form either of the company on this regard.

Its about a decade since the company is planning to enter in the Indian market, but due to the financial problems the company had rescheduled its plans. Last year, the company was in talks with the Hero group for a joint venture in India but these talks couldn't reached to the fruition.

Source:- Malaysia's Proton to launch a new compact car in India - New Cars

Read more »

Luxury car segment to continue its growth-run

luxury car segment, which has been witnessing a series of new car launches since the starting of this year, is expected to grow by more than 20 percent in year 2010. Mercedes-Benz and BMW, the top two luxury car makers in India, has taken the growth momentum to a new level with the launch of new corporate editions of their respective luxury sedans in the segment of Rs 20 lakh to 30 lakh.



The sales numbers for luxury cars (over Rs 25 lakh) reflect buoyancy and trends point to this segment witnessing at least 20 per cent growth this year, as per a statement given by Suhas Kadlaskar, Director, Corporate Affairs, Mercedes-Benz India.

Mercedes Benz India, which has recently replaced the BMW India from the top spot in the luxury car segment of the country, sold 321 units of its cars in India in April 2010 taking the total sales for the period of January- April 2010 to 1,603 units, as against 949 units sold in the same period of year 2009, accounted a sales growth of 80 percent.

The year 2009 saw overall sales of about 8,000 cars in the luxury car market. This was slightly lower than the sales numbers achieved in last year. The sales of last year was partly impacted by the slowdown. But the business is looking up and the volumes are going up, said a Mercedes official in a statement given to a leading media group.

Source:- Luxury car segment to continue its growth-run - New Cars

Read more »