Automotive Updates - 24th May 2014

• Hindustan Motors has temporarily suspended operations at its Uttarpara plant in West Bengal, leaving the fate of the HM Ambassador hanging. Media reports this morning list mounting losses, paucity of funds, growing indiscipline, low productivity, etc as reasons for the closure effective from 24th May. Hindustan Motors has shut down its Uttarpara plant until further notice. 

• 

• Chennai-based TVS Motor is targeting a 25% growth in volumes on the back of strong demand for scooters and mopeds that form the bulk of its domestic sales, a top executive said. The company has sold 17.52 lakh two-wheelers in the last fiscal, and aims to sell 22-lakh units in the ongoing fiscal.

• Indo-Global tie-up seems to be the theme of automobile news this week. After having broken two big scoops about BMW-TVS motorcycles, an even bigger piece of news is here. Bajaj-KTM plan to continue their performance bike onslaught with the Pulsar maker being given the responsibility by the Austrian firm to develop street motorcycles (not dirt bikes) up to the 800cc segment, all being manufactured at Bajaj Auto’s Chakan facility which is already churning out KTM bikes for the world. This is BIG news for us in India, as Bajaj Auto will be sharing platforms with KTM for its future bikes (like the Duke 390 and Pulsar SS400 do), resulting in a variety of options for the Indian biker. Even Husqvarna will be underpinned by the same platform with Bajaj Auto doing the complete production of the Swedish branded bikes locally.

• Hyundai Motor India is recalling 2,437 units of its sports utility vehicle Santa Fe to replace a faulty stop lamp switch. "Hyundai Motor India will voluntarily recall 2,437 number of Santa Fe vehicles of the 2011 model year in India for the manufacturing period June 26, 2011, to September 26, 2013," the Indian unit of the South Korean company said in a statement.

•  Post the consolidation of its international operations, US car maker General Motors Indian subsidiary is being looked at as a key global sourcing base for its small cars. GM India has now put in place an integratedexport strategy, a first in its 18 years in India, for Beat, its small car. ET learns General Motors India plans to kick-start export ofBeat small car to Latin America from the second half of 2014. 

• The Thai unit of Honda Motor Co. has cut production at its Ayutthaya plant to 60 per cent of capacity to reflect weak domestic demand, voicing concerns sales may fall short of its target this year after months of political unrest.Thailand's auto sector, southeast Asia's biggest, is one of the more visible victims of the weakened economy and unrest which culminated on Thursday in army chief General Prayuth Chan-ocha taking control of the government in a coup.

• The 50:50 joint venture between off-road vehicle maker Polaris India and Eicher Motors is developing personalised transport solutions that also have off-roading capabilities. A report on cardekho quotes Polaris India’s country head and managing director, Pankaj Dubey, who says that in the next 3-5 years more vehicles can be expected from Polaris India. 

• Ashok Leyland’s subsidiary, Optare buses, has launched the ‘MetroDecker’ double decker bus for use in the city of London. This is also the only double decker bus currently retailed by Optare. The Metrodecker is the first monocoque double decker bus from Optare’s stables.

• Autocar India has reported that Toyota Kirloskar Motor is expanding its Fortuner range upward and downward with mechanically new variants. The Fortuner range, from this festival season, will start with a 2.5-liter manual variant driving the rear wheels alone.