Automotive updates - 28th August 2014

• After a lull, Maharashtra saw several announcements by auto majors, all aimed at expanding their existing plants in the state. While Mahindra & Mahindra will make an additional investment of Rs 4,000 crore over a seven-year period, Bajaj Auto will also invest a similar amount. Tata Motors and Volkswagen India will invest Rs 2,000 crore and Rs 1,510 crore respectively. MoUs to the effect, worth a total of Rs 11,510 crore, were signed by the companies at a function in Mumbai on August 28. Most importantly, the government said that VAT would henceforth be applied on gross sales and not net sales as was announced in 2011. Industry had said this had taken away its competitive advantage. (Autocarpro.in)

• Mahindra & Mahindra (M&M) will make an additional investment at its Chakan plant to the tune of Rs 4,000 crore over a seven-year period. The company signed a joint declaration to this effect in Mumbai today. With this, M&M’s total investment at Chakan will go up to Rs 8,000 crore. Anand Mahindra, chairman, Mahindra Group, said, "We would like to express our deep and sincere gratitude to the government of Maharashtra for its visionary industrial policies and efficient governance practices. This has prompted us to take the decision to scale up our world-class Chakan plant, making Maharashtra a key partner in our growth over the coming years. (Autocarpro.in)

• German luxury carmaker, BMW has launched the X3 facelift in India. The SUV is available in two trim levels - X3 xDrive 20d Expedition and X3 xDrive 20d xLine, which are priced at Rs. 44.90 lakh and Rs. 49.90 lakh (ex-showroom, all India) respectively.(teambhp.com)

• Japanese automaker Isuzu Motors India plans to launch a new seven-seater multipurpose vehicle or MPV to take on Toyota's popular Innova in about two years, extending its South East Asian rivalry with the world's largest car maker in the country.(ETauto.com)

• Hero MotoCorp is targeting extensive growth both where domestic sales and exports are concerned. Hoping to sell 12 million (1.2 crore) units by 2020, is a part of the company’s ‘Vision 2020’ growth plan. Hero MotoCorp also plans a new R&D facility in Kukas, Jaipur and is currently working on new products based on new platforms to change its perception from amass commuter bike maker to a strong player in the two wheeler market in the country. (rushlane.com)

• Tata Motors might just have hit the sweet spot with the new Zest compact sedan in the Indian market. As per our source, the aggressively priced Zest has garnered over 10,000 bookings within just three weeks of launch, while the company delivered just over 2000 units till the start of this week. With the overwhelming response, Tata joins the league of super successful launches that currently includes models like the Hyundai Grand i10, Xcent, Mahindra XUV500, Ford EcoSport, Honda Amaze, City, Mobilio and the likes that also managed to garner a ton of bookings within just days of launch.(motorbeam.com)

• Mahindra & Mahindra wants to ensure that it rolls out enough units of the new Scorpio (codenamed W105) from its assembly line before it commercially launches the refreshed SUV in the domestic market a few months from now.

• With this in mind, the company has been rolling out 100 units a day since August 1, sources in the know have confirmed to Autocar Professional.Sources also say that “M&M is building a stock of nearly 5,000 units or more before it commercially launches the new Scorpio.” (Autocarpro.in)

• Tata Motors has launched its passenger vehicle range in Algeria which includes the Indica and Vista hatchbacks and the Indigo and Manza from its sedan offerings. It has appointed SPA Elsecom for distribution and marketing of the vehicles in this north-west African nation. (Autocarpro.in)

• India car major Maruti Suzuki plans to try its hands on new products as the company readies to introduce its offering in the light commercial vehicle space next year. Maruti will place completely new dealership network for its commercial vehicles. The company does not want the commercial vehicle and passenger vehicle customer experiences to collide and spoil the overall experience.(rushlane.com)