Automotive Updates - 19th May 2014

• Volkswagen Group is planning an investment of 100 million euros (INR 802.5 crore in today’s exchange rate) for business expansion in India, PTI has reported.VW India President and Managing Director Mahesh Kodumudi  - At present, an investment of approximately 100 million euros is in the decision process for new models and for further localisation of parts and components.

• Renault has announced plans of transforming the funky Kwid concept SUV to a production model by the year 2016. The Renault Kwid concept was unveiled at the 2014 Indian Auto Expo enthralling all with its quirky styling both on the exterior and the interior. The Renault Kwid, in its production form will be a sub 4-meter compact SUV with both a 4-door and a 2-door configuration available to the public.

•  Shiroki and Technico have executed binding agreements allowing them to exit the current relationship and hiving off Seat & Window Regulator Business into a JV "Shiroki Technico India Private Limited" here. Previsouly, Shiroki was holding minority stake in Technico. The JV will be held 50%+1 by Shiroki and 50%-1 by Technico with an investment outlay of Rs 150 crores over the next two years. 

• The mid-size sedan segment has been greatly affected by the launch of the 2014 Honda City. While Hyundai added a couple of new variants to the Verna, Volkswagen added a 1.2-litre TSI petrol engine under the Vento’s hood while the Skoda Rapid got a minor update with new logos, steering wheel, etc. 

• Tata Motors will enter Brunei this year with three compact vehicles.The Indica, Vista and Manza models will be launched in the Sultanate in the coming months through its distributor – Worldwide Motors Sdn Bhd – appointed in September last year.

• Sundaram Motors, the car retailing arm of T V Sundaram Iyengar & Sons, plans to add two new 3S (Sales, Service and Spares) dealerships for Mercedes-Benz India in South India. Talking to Autocar Professional, Sharath Vijayaraghavan, executive director of Sundaram Motors, said the company at present operates two 3S facilities for Mercedes-Benz India in Bangalore and Coimbatore in Karnataka and Tamil Nadu respectively. However, in Mangalore and Madurai it has only service stations. “The service stations in the Tier 2 cities of Mangalore and Madurai will be converted into 3S facilities for Mercedes-Benz soon,” Vijayaraghavan added.

• Sustainability and electric vehicle technology are among the key focus areas for Tata Motors’Horizonext philosophy. The Tata Motors European Technical Centre (TMETC), based at the University of Warwick in Coventry, UK, has been making steady progress in R&D in this area culminating in the development of a Manza REEV (range extended electric vehicle) demonstrator vehicle.

• The BMW S1000R has been launched in India through the CBU route. The street-naked motorcycle that looks like a stripped-down variant of the S1000RR (featured in the Bollywood movie Dhoom) is priced at INR 22.83 lakh (ex-showroom, Mumbai).

• Spanish bikemaker Bultaco announced its plans to return to the world of motorcycles. Bultaco was founded in 1958 and was renowned for its two-stroke motocross and enduro offerings before shutting operations in 1983. The Spanish motorcycle manufacturer will enter the market with two electric powered offerings, and showcased the prototypes of the Rapitan & Rapitan Sport. The manufacturing unit will be based in Barcelona while the innovation centre will be situated in Madrid.