Automotive Updates - 26th August 2014

• The Competition Commission of India has imposed a combined penalty of over Rs 2,500 crore on 14 carmakers for indulging in unfair practices in the spare parts market, the latest in a series of tough enforcement actions by the newest among India's regulators. Tata MotorsBSE 0.90 % faces the maximum fine of Rs 1,346 crore, followed by Maruti SuzukiBSE -0.96 % Rs 471 crore, Mahindra & Mahindra Rs 292 crore, General Motors Rs 85 crore, Honda Car India Rs 78 crore. (economicstimes.com)

image from livemint.com

• Auto major Mahindra & Mahindra today said it would challenge the trade regulator CCI's penalty of Rs 292.25 crore imposed on it for violation of trade norms in the spare parts and after services market. "The company aggrieved by this order proposes to appeal against it before the appropriate forum," M&M informed the NSE. (economicstimes.com)

• A report on the Economic Times states that Hyundai Motor India Limited (HMIL) is closely looking at a second factory to increase its production volume. The Korean car maker plans to launch two new cars every year, and will in fact, enter the hotly contested compact SUV and MPV segments as well.(indianautoblogs.com)

• Renault India Pvt Ltd, a fully owned subsidiary of Renault SAS France, has a lineup of 5 models which includes the Fluence sedan, Koleos SUV, Pulse compact car, Duster SUV and Scala sedan in India. With these, they have a market share of 2.6% (Mar 2014). Now, with two new launches in 2015, the company aims to increase market share to 5% in the next two years.(rushlane.com)

image from indiadrivers.com

• 'We can set up bus plant in Nagpur' says M.D, Scania India. (ETauto.com)

• To tap the potential of India’s rural markets, Honda Motorcycle & Scooter India (HMSI) has launched a rural outreach initiative. It comprises a mobile service van that aims to combine the services of a dealership and aftersales outlet. The first of such mobile vans was launched by Keita Muramatsu, CEO and president, HMSI, and Prabhu Nagraj, VP (customer service). The company hopes to have 11 mobile service vans by the end of the year. (autocarpro.in)

• After marketing the Mahindra Centuro Rockstar in select states, the company has now made the entry level variant of its commuter available across the nation.The Centuro Rockstar is priced at INR 43,684 (ex-showroom Delhi). The base variant is roughly INR 3,000 cheaper than the N1 mid variant. (indianautoblogs.com)

• Lauding RBI for doing a "brilliant job" with controlling inflation and stabilising the rupee, leading industrialist Anand Mahindra today hoped the central bank will cut interest rate as the economy has stabilized.(ETauto.com)
• "Now he (RBI Governor) has some breathing space, where the fuel price index would go down. So, in the next few months, if this situation continues, forex inflows are strong, IIP goes up, inflation is abetting, fuel prices are going down...This is the time now (for RBI to cut rate)," he told PTI in an interview. (ETauto.com) 

image from thehindubusinesslines.com

• KTM bikes, which are manufactured in India, are soon to be exported to the United States of America by Bajaj, as per the news reports received. This renowned company is all set to become the first one to be exporting bike models to the US. This decision comes at a time when the Austrian maker, KTM has found a strong foothold in the market.(cartrade.com)

• The recently launched compact sedan from domestic car maker Tata Motors has started making its presence among the buyers in Indian car market and is helping the car maker to regain its position in market which during last few years has witnessed shifting towards downward direction. According to reports the AMT version launched in diesel version has succeeded in attracting the buyers in Indian car market as an impact of which it has already crossed the waiting period of more than three months.(carkhabri.com)

•  Ford India’s Rs 4,500 crore plant in Sanand is almost ready. Scheduled to start production prototypes later this year, the images you see here are of Ford’s Sanand plant which were clicked last week, showing that the construction of the plant is near completion.(rushlane.com)

• The world’s largest bicycle maker by volume, Hero Cycles, has acquired a 60% stake in Mitteldeutsche Fahrradwerke AG (MIFA), Germany’s largest bicycle maker, via OPM Global.The buyout is Hero Cycle’s first overseas purchase and is considered to be a part of the company’s plans to become a global player. PTI reports that the Indian bicycle maker has invested 19 million euros (around IRN 152 crores) in MIFA via its subsidiary OPM Global. A part of this investment would meet the working capital requirements. (indianautoblogs.com)

• The compact SUV market is flourishing in India and local as well as global car makers are trying their best to snatch any opportunity to gain share in this segment. Currently, Renault Duster and Ford EcoSport are getting promising results in the compact SUV markets.Indian car maker, Maruti also realises the importance of this market segment and is planning to introduce two new SUVs in the next two years. The first SUV will be the S-Cross which is expected to enter the market early next year. Dozens of pictures of the S-Corss have emerged from different parts of the country where Maruti is rigorously testing this compact SUV. The second SUV, named XA Alpha, which was first showcased at the 2014 Auto Expo, is expected to make its entry into the Indian market by 2016.(motoroids.com)