Automotive updates- 27th June 2014

• Czech car maker Skoda is focusing on lowering cost of product development and increased localisation for the Indian market to take on Asian rivals, as it seeks enhanced position in the value for luxury segment. The company, part of the Volkswagen group, also ruled out notions that it is scaling down business in India saying it has been consolidating its operations for an overall profitable sustainable business in the country. 

• Basant Kumar Birla-promoted Kesoram Industries is mulling a re-organisation plan that may even include selling its profitable tyre division to reduce its high debt.This is part of its plan to restructure its business. In a recent communication to the stock exchanges, the company said that it is exploring options for reorganising and realigning its existing business.

• In a new partnership scheduled to be announced next week, Japanese automaker Mitsubishi Motors will supply the Attrage sedan to Fiat Chrysler Automobiles (FCA) for sale in Asian markets. The Attrage sedan will be badge engineered as a Chrysler and will be sold in China and other Asian markets. Fiat plans to expand its base in the Asia Pacific region as part of its long term plan and the Attrage will help increase its market share.

•  Tata Steel has no more plans to import iron ore to feed its steel-making factories, and will rely on domestic production from its own captive mines or National Mineral Development Corporation (NMDC), its managing director TV Narendran told ET

• The Renault-Nissan Alliance and Daimler AG are significantly expanding their cooperation with joint development of premium compact vehicles and joint production in Mexico. Renault-Nissan CEO Carlos Ghosn and Daimler CEO Dieter Zetsche announced today that their companies have agreed to establish a 50:50 JV, the business entity that will oversee construction and operation of the new plant in Aguascalientes in north-central Mexico. The new plant will be built in the immediate vicinity of an already existing Nissan plant and will have an annual capacity of 300,000 vehicles when fully ramped up.

• After showcasing the 2014 facelifted Sunny at the Delhi Auto Expo, Nissan will be launching the sedan officially on July 3rd in India. Launched in 2011, Sunny has been facing stiff competition in the C-segment due to presence of strong players such as Honda City and Hyundai Verna. With the facelift, Nissan is trying to give its Sunny a new lease of life, assuring its stand against the competitors.

• Ashok Leyland, India's second-largest truckmaker, is planning to raise about Rs 600 crore to Rs 700 crore through an qualified institutional placement to pare debt. Ambit, Kotak Mahindra, and Citigroup have been appointed bankers for this transaction.ET learns that the fund raising is likely to be concluded in the next couple of weeks,.People close to the company told ET, the QIP may lead to the equity dilution of 6.1% in the company, which will bring down promoter's stake down to 39% from 41.25% in March-2014, according to BSE filing.

• Speaking to Autocar Professional on the marketing strategy for the new car, Jnaneswar Sen,  senior vice-president (marketing and sales), HCIL, said that while the metros will be the largest markets for the MPV, Tier 2 and Tier 3 cities will garner the highest proportion of sales across India. “Volumes of the Mobilio will depend on pricing and production capacity but it will be good value for money. It will mark the evolution of the entry MPV segment,” he said. 

• Fiat Chrysler Automobiles will begin selling Jeep, the SUV brand central to its global expansion, in India in 2015, the brand's chief, Mike Manley, said on Thursday.Manley said the original plan was for Jeep to enter the India market in late-2013, but that was delayed because he did not feel the brand would enter the market strongly at the time.

• German industrial group Bosch will cut up to 400 jobs, or about a third of the workforce at a windscreen wiper factory in Tienen, Belgium, the company said on Thursday.

• May 2014 proved to be a blessing in disguise for Honda Motor Company as two of its Asian markets – Japan and India – posted record monthly production and domestic sales.

• Luxury car maker Mercedes-Benz India would soon double its production capacity at its existing plant in the country at Chakan near Pune, a company official said today. "The plant expansion is in the final stage and in the process of getting all approvals. It will be ready for use very soon," Boris Fitz, VP (sales and network development) of Mercedes-Benz India, said here. 
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