Automotive Updates - 9th June 2014

• Samvardhana Motherson International Ltd (SMIL), the principal holding company of the Samvardhana Motherson Group (SMG), and Magneti Marelli SpA of Italy have signed a joint venture agreement in the automotive shock absorber segment. SMIL will enter the JV by acquiring a 50 percent stake in Magneti Marelli Shock Absorbers India, a Magneti Marelli-owned company. The JV will leverage Magneti Marelli’s existing shock absorber manufacturing plant in Chakan, Pune, with its product and automation technology.

• According to a newspaper report, Tata Motors is working on a small car codenamed Tata Kite, that would rival the likes of the Maruti Celerio. The hatchback, which would roll out from Tata’s Sanand plant in Gujarat, will launch in late 2015. Buyers in this segment are generally first time car buyers, and qualities like cost of ownership, ease of driving and reliability are given more preference.

•  Tata Motors has filed a complaint before a Delhi court alleging infringement of its trademark and copyright by unknown persons manufacturing and marketing spurious ancillary automobile products under its name.

• Dr. Pawan Goenka, executive director and president, Automotive & Farm Equipment Sectors, Mahindra & Mahindra, has been appointed the chairman of the Board of Governors at the Indian Institute of Technology, Madras. The appointment was made by the president of India in his capacity as Visitor of the Institute, and is for a period of three years with effect from today.

• Honda Cars India will launch the Honda Mobilio MPV next month. The Mobilio, like Honda India’s past launches, could be exported from India to neighboring countries like Nepal and Bhutan. The Honda Mobilio could be exported from India. 

•  Department of Heavy Industry (DHI) is likely to pitch for extension of the excise duty incentive to the automobile sector beyond June 30 to help it tide over the difficult situation.In the Interim Budget, the government had reduced excise duty on vehicles to give a boost to manufacturing sector. The incentive ends on June 30.

• Nissan Motor Co’s first all-electric, zero-emissions commercial vehicle, the e-NV200, will go on sale in October 2014 at Nissan dealers throughout Japan, the company announced today.

• Mahindra First Choice Wheels Ltd. (MFCWL) has reported 50% growth online vehicle sales through its eDiig platform. MFCWL sold 55,000+ units online in FY14 establishing a strong footprint in the B2B online vehicle auction space.

• Honda Cars India Limited, a wholly owned subsidiary of Japanese automakers Honda Motors, is set to expand their production in India. Increased targets, two fold growth in sourcing of auto components and added shifts to the company’s Tapukara plant are on the cards, while the company goes on a recruitment drive adding about 1,000 people in India by March 2015.

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