Automotive Updates - 11th and 12th September 2015

• BK Birla Group-controlled Kesoram Industries Ltd on Saturday announced it had concluded a deal to sell its tyre manufacturing unit near Haridwar in Uttarakhand to JK Tyre and Industries Ltd for Rs.2,195 crore.Based on Kesoram’s previous disclosures, the company is estimated to have spent around Rs.3,000 crore to build the factory. It was commissioned in 2008-09.This factory, which has the capacity to produce up to 600 tonnes of tyre a day or about 4.4 million truck tyres annually, was carved out of Kesoram and transferred to a subsidiary—Cavendish Industries Ltd—earlier this year.(livemint)

• The world's largest air bag suppliers are setting up plants and ramping up capacity in India, eyeing a $2 billion opportunity thanks to tougher rules aimed at improving one of the world's worst road-safety records.Less than a third of the 2.6 million cars sold each year in the country have air bags in this cost-conscious market. But a planned law that will impose crash test standards by 2017 is creating an opportunity for makers of safety equipment, as cars without air bags will achieve only the lowest safety ratings after tests. That, for the first time, will force consumers to directly consider the risks they run by buying cheap.(business today)

•  Leading electric two-wheeler maker Hero Electric is increasing focus on e-commerce channel by tying up with more such firms including ShopClues, Homeshop18 and Rediff.com to boost sales.The city-based company had last year entered into a pact with Snapdeal and saw its sales zoom.It is already getting 25 per cent of its sales from online platform.(ETauto)

• US auto major Ford Motor Co today confirmed fresh investments to expand capacity at its manufacturing plant here besides setting up of a new global engineering and technology centre. Representatives from Ford and Tamil Nadu government signed a memorandum of understanding at the Global Investor Meet, paving the way for a Ford campus across 28 acres land, the company said in a statement.It, however, did not disclose the amount of investment and the enhancement in production capacity of the plant. Commenting on the development, Ford Asia Pacific President Dave Schoch said: "India is at the centre of innovation at Ford and we are delighted to strengthen our presence with a new global engineering and technology centre." (cartrade)

• Toyota Kirloskar Motor (TKM)  has launched ‘Toyota Auction Mart (TAM), thereby becoming the first auto manufacturer in India to venture into the used car auction business. Toyota Auction Mart is a first of its kind initiative in the Indian automobile industry and will start operations through a dedicated auction facility at Bidadi, near Bangalore, in Karnataka. Every used car from all brands will go through detailed inspection that will determine the current quality level of the car thereby ensuring highest levels of QDR (quality, durability and reliability) for the end user. - See more at: http://www.autocarpro.in/news-national/toyota-kirloskar-motor-oem-india-auction-cars-9253#sthash.bki5MHTb.dpuf

• Exported from India and sold in Chile, Latin NCAP crash test result of made in India Hyundai Grand i10 without airbags is now revealed. Result reveals that the car failed in structural integrity while the lack of airbags meant that passengers in the front were put to sever risks of head and body injuries.The model which was tested, besides being devoid of airbags, also had no ESC and no child seat ISOFIX anchorages. These points caused the Hyundai Grand i10 to score zero stars in Adult Occupant Protection and just two stars in Child Occupant Protection.(rushlane)

• Tata Motors is working on a combination of network expansion, dealer development and product repositioning to turn around its passenger vehicle sales.According to a top official, this along with plans to launch two new vehicles every year is expected to help the company regain its position in the industry pecking order. Put in place by new boss Mayank Pareek, president, passenger vehicles business unit, Tata Motors, the new strategy has already helped Tata Motors gain 1 percent market share in the first five months of this fiscal .(Etauto)