Automotive Updates - 14th June 2014

• Tata Motors has shut its manufacturing plant in Sanand, Gujarat, where the Nano is manufactured, for between 35 to 40 days on account of low demand and a resultant inventory pile-up, as well as an ongoing retooling activity to manufacture a new version of the Nano for the festive season. 

• Mahindra & Mahindra, India's largest utility vehicle and tractor maker is again in the race to acquire a stake in Swedish premium car maker Saab. M&M, maker of the utility vehicle range (Scorpio, Xylo and XUV500) and the Verito brand of cars may become a part-owner (with the Hong-Kong based National Electric Vehicle or NEV, its current owner, as the bankrupt car maker needs funds to maintain operations.

• The Union Budget 2014-15, to be presented next month, is likely to make a provision of Rs 250 crore for FY’15 for putting on wheels the National Electric Mobility Mission Plan 2020 (NEMMP) announced last year, say sources in the know. The NEMMP pushes for national energy security, mitigation of the adverse impact of vehicles on the environment and growth of domestic manufacturing capabilities. The plan also highlights the huge potential for environment-friendly electric vehicle (including hybrids) technologies by 2020. 

• For the first time in its history, the VW Group has managed to sell over 4 million units in the first 5 months of a year. The German company which owns Audi, Skoda Porsche, Bentley, Lamborghini and Seat sold 4.11 millions units worldwide from January to May 2014 which is a 6.3% increase compared to the same period last year (3.81 million units).

•  Honda Motor Co expects to recall more than 1 million more vehicles with potentially defective air bags, expanding a massive, multi-company air bag recall, according to a person with knowledge of the matter. 

• Renault India will introduce its rival to the Maruti Alto in the second half of next year, sources in the know told Indian Autos Blog. The small car, codenamed Renault XBA, will be based on Renault-Nissan’s CMF-A platform, which the Datsun Redi-Go will also share.

•  Ferrari chairman Luca di Montezemolo may pull his team out of Formula One because it "isn't working" and the Italian firm may switch to sports-car competition, he told Friday's Wall Street Journal. 

• American bike maker Erik Buell Racing, the technical partner of Hero Motocorp, has unveiled its new 1190SX naked superbike in the presence of select media in Indianapolis, US.

• World’s largest two-wheeler manufacturer by volumes, Hero MotoCorp will be making its entry in the Latin American country Brazil by 2016. The move comes as part of the company’s plans to enter 50 new markets by 2020. Brazil is one of the fastest growing markets in South America

• GM recalled 511,528 Chevrolet Camaros on Friday for an ignition switch problem similar to the defect in the Chevrolet Cobalts and other models. Photo: Bloomberg US prosecutors are interviewing present and former General Motors Co. employees as part of the criminal probe into the auto maker’s ignition-switch problem that has been linked to at least 13 deaths, two persons close to the development said.

Automotive Updates - 13th June 2014

• Terming India among the fastest growing markets, US-based carmaker Ford today said it has decided to make the country as its export hub."We have decided that India will be an export hub for Ford. We are exporting to over 50 countries from here and are increasing it overtime," Ford Motor President and chief executive officer Alan Mulally said.

• The government of Sri Lanka has placed an order for 2,200 Viking buses with Ashok Leyland. This is the one of the largest orders by the Sri Lankan Transport Board (SLTB) as the government aims to modernise its existing fleet and significantly improve the country’s public transport network.

•  India's largest two-wheeler maker Hero MotoCorp is planning to enter Brazil by 2016 as it looks to consolidate position in the fast growing South American market.

• Tata Motors  today reported 5.14 per cent decline in global sales, including that of Jaguar Land Rover (JLR), to 77,575 units in May.The company had sold 81,783 units in the same month last year.

•  Ford Motor Co has agreed to correct its fuel economy estimates for six car models to correct errors found in an internal company audit, the U.S. environmental regulator said on Thursday.

•  Petrol and diesel prices will be hiked by 75 paise a litre each if the government accepts an expert panel report that recommends nationwide fuel standards be upgraded to eliminate cancer-causing particle emissions by 2020.

• The Union Budget 2014-15, to be presented next month, is likely to make a provision of Rs 250 crore for FY’15 for putting on wheels the National Electric Mobility Mission Plan 2020 (NEMMP) announced last year, say sources in the know. The NEMMP pushes for national energy security, mitigation of the adverse impact of vehicles on the environment and growth of domestic manufacturing capabilities. The plan also highlights the huge potential for environment-friendly electric vehicle (including hybrids) technologies by 2020.

• Investors bought less than half the Hero MotoCorp Ltd shares that were put on sale on Friday by private equity firm Bain Capital that holds an 8.6% stake in the Indian two-wheeler company. According to data published by Bloomberg news agency, about 3.73 million shares changed hands in five block deals. Mint had reported on Friday that the private equity firm was offering 8.57 million shares, which translates into 4.29% of outstanding share capital of the auto maker.

• Suzuki Motor Corp Chairman Osamu Suzuki said it was unclear when an international arbitration court will rule on its 2-1/2 year dispute with Volkswagen AG over their failed partnership.

• Alan Mulally, the outgoing chief of US auto major Ford, called Narendra Modi one of his heroes and said the prime minister's focus on economic development will work well for India.

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• In an interaction with ET, Mulally said he has not meet Modi. "I have watched him over the years and I think he is going to be great prime minister because he believes in economic development. I love his focus on infrastructure," Mulally said.

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Automotive Industry Scenario - May 2014

In May - 2014 , after a depressing year of sales downfall , Indian Automobile sector finally see some good growth in numbers.With proximity of stable government and better economic reformation the same trend expect to be continue .

Riding on high motorcycle sales and strong exports , In May 2014, 16 % growth is registered on yearly basis while as compare to April 2014 8 % growth is registered in overall sales.

Overall figures for May - 2014 is as below (for 2 wheeler, 3 wheeler, PV and CV combine)

There is significant growth in production which is increase by 14 % on yearly basis. Domestic sales also increase by 13% while due to strong demand of Indian automobile product in other countries , export increase by 32%.

Details of  YOY and MOM change is as  below




The overall Sales share for all segment is as below.

Source data - SIAM

Automotive updates - 12th June 2014

• VE Commercial Vehicles (VECV), the joint venture between the Volvo Group and Eicher Motors, hopes to gain a double-digit market share in the M&HCV segment in India with the launch of its new Pro 6000 and 8000 series of trucks. This comment was made by Shyam Maller, senior vice-president (sales and marketing), VECV, at the recent launch of the Pro 1000 and 3000 series in Chennai.

• Tata Motors-owned Jaguar Land Rover is planning to expand its China operations with a new engine- making plant - its first ever outside the UK - alongside its car assembly factory in Shanghai.

• Mercedes-Benz India is continuing their aggressive move of launching new car every month. Apart from the GLA compact SUV and CLA 45 AMG which have already been confirmed for launch this year, MB India has now added three more cars for launch – special edition of A Class and B Class and 2014 E-Class Cabriolet.

• Mitsubishi Motors Corp is recalling about 920,000 vehicles globally for a glitch in the light switch that could prevent headlights and blinkers from working, the car maker said on Thursday.No accidents or injuries have been reported as a result of the glitch, Mitsubishi said.

• BMW India has introduced its armoured sedan based on the BMW 7 Series. The carmaker says the 760Li High Security is certified to the international standard guideline BRV 2009 and meets the highest requirements of ballistic protection.

• Bosch has developed a combiner head-up display that presents key information –information on speed, navigation recommendations or warning – directly in front of the driver. The product, offering the highest image quality and precision, is used in various vehicles of the BMW Group. Initially available for the new Mini hatchback, the head-up display is characterised among other things by a full-colour presentation, and can be integrated completely into the instrument panel. 

• Two-wheeler major Honda Motorcycle & Scooter India (HMSI) plans to sell 45 lakh units in 2014-15, a jump of 21 per cent over the previous fiscal.

• The value of the country's exports of automobile and auto parts, including passenger cars, two and three-wheelers grew 25 per cent in April, according to data compiled by engineering exporters body EEPC India.

• The Automotive Component Manufacturers Association of India (ACMA) plans to take up with the new government a proposal to incorporate aftermarket standards in the Motor Vehicles Act. This move is aimed at preventing spurious and counterfeit products from finding their way into on-road vehicles, making them susceptible to accidents. Moreover, these aftermarket standards are expected to ensure safe and emission-free auto components for the sector.

• American bike maker Erik Buell Racing, the technical partner of Hero Motocorp, has unveiled its new 1190SX naked superbike in the presence of select media in Indianapolis, US.

•  image from gaadi.com

Automotive updates - 11th June 2014

• Alto is no more India's largest selling car, and it has been relegated to the third spot, with none other than the DZire, which comes at double the price, taking the number one slot, indicating a growing preference for more expensive cars.With all the top spots taken by Maruti Suzuki, the Swift hatchback grabbed the second position. Alto has been pushed to the third place for the first time in over two-decade of its existence in India, with sales of 17,311 units last month.

• Challenged by attrition at the top deck and a declining share in the market place, Tata Motors, India's largest automobile company in revenues, saw two more senior executives exiting from key positions.Venkatram Mammillapalle, senior VP purchasing and supply chain and Rajesh Bagga, senior VP legal at Tata Motors, have put in their papers.

• Robert Bosch Engineering and Business Solutions Ltd. (RBEI) has become the first ASPICE maturtity level 3 certified major engineering solutions organization for its automotive business. 

• TATA  Kite is being planned for a late 2015 launch and would be rolled out from its Sanand plant in Gujarat. According to sources in the auto industry, Kite being developed under its MY15 programme would help Tata Motors position as a high volume product in the compact car segment, which forms more than 30 per cent of the total passenger cars sales in India. 

•  Toyota on Wednesday said it was recalling 2.27 million vehicles globally over an airbag system defect that could cause a fire, the latest in a series of callbacks by the world's biggest automaker.The company, which has now recalled about nine million vehicles in the past two months, said the announcement covered about 20 models, including its Corolla sedan and Yaris subcompact.

• Following two consecutive months of drop, domestic car sales in India grew by 3.08 per cent in May 2014. According to figures released by the Society of Indian Automobile Manufacturers (SIAM), domestic car sales in July stood at 1,48,577 units as against 1,44,132 units in the same month last year. The total sales figure translates to a growth of 3.08 per cent.

• The Datsun brand was launched yesterday in South Africa, becoming the fourth market where it is being rolled out, alongside India, Indonesia and Russia. Datsun had an iconic status in South Africa up to the 1980s, where it was the No. 1 selling brand in 1976-1978. Over 20 million Datsuns were sold globally over the course of 20th century.

• Renault India have reintroduced the Renault Scala Travelogue edition at a starting price of INR 8.48 lakh (ex-showroom Delhi, RXL petrol variant). The Scala Travelogue Edition was launched in April 2013, and was limited to the top-end RXZ diesel variant.

• Daimler India Commercial Vehicles (DICV) along with Mitsubishi Fuso Truck and Bus Corporation, Japan (MFTBC) has launched its made-in- Oragadam trucks in Bangladesh. With this, Bangladesh becomes the sixth market – after Kenya, Sri Lanka, Zambia, Tanzania and Zimbabwe  – since the start of export for Fuso trucks in May last year.

• Land Rover has extended its support to the Born Free Foundation’s work in India by delivering a brand-new Land Rover Freelander to the Satpuda Foundation, one of Born Free’s partner organisations in Central India, to carry out critical conservation work in the country’s central tiger reserves.

• Farm equipment maker International Tractors Ltd (ITL), a part of the Sonalika group, today joined hands with Punjab National Bank for financing of tractors and agricultural implements.

Image from Rediff.com

Automotive updates - 10th June 2014

• Weak monsoon rains could have a negative impact on India's automobile sector, which is seeing early signs of improvement with the sale of passenger cars and utility vehicles rising in May, an industry body said. "A bad monsoon would certainly mean some negative impact," Vishnu Mathur, director general of the Society of Indian Automobile Manufacturers (SIAM) said on Tuesday. 

• German commercial vehicle maker Daimler's Indian subsidiary has forayed into Bangladesh market by launching FUSO Trucks manufactured at its plant here, making it the sixth overseas destination. 

• The Federation of Automobile Dealers Associations (FADA) has conferred on Ratan Tata, chairman emeritus, Tata Sons, with the Lifetime Contribution award.  Mr Tata was recently presented with the award by a FADA team led by Mohan Himatsingka, president, at the Tata Group’s Mumbai office.

• According to a report on Autocar India, Nissan will soon offer the AMT (automated manual transmission) technology on its cars like the Micra and Sunny. The Japanese carmaker currently offers a CVT (Continuously Variable Transmission) unit on these cars which is expensive compared to the AMT offered by Maruti on the Celerio. The CVT variants of the Micra and Sunny have not met with the expected response.

• Toyota-owned luxury brand Lexus is being considered for the Indian markets.

• Back in April 2014, President of the motorcycle business at Bajaj Auto K Srinivas moved on to a non-automotive company. His appointment with, Rajesh Wadhawan Group (parent group of DHFL) is now announced.

• Luxury on wheels now costs less, thanks to recent moves by car makers to assemble cars locally and also source more engines and other parts from within India. Prices of luxury car models have dropped by Rs 10-30 lakh in the past couple of months.

• Chennai-based Comstar Automotive Technologies, the Tier 1 supplier of starter motors and alternators for passenger cars and light commercial vehicles, is actively considering setting up an assembly unit in Thailand to cater to demand in the ASEAN region. The company currently supplies to Ford, Volvo, Jaguar, Aston Martin, Mazda, Tata Motors and the Ashok Leyland-Nissan joint venture in the US, Europe and India.

• Escorts has launched its Farmtrac Heritage range at South Africa’s biggest agriculture show, NAMPO 2014. The Heritage range was first displayed at the 2013 ‘Agritechnica’ at Hanover. According to the company, the range between 50 HP- 75 HP is set to bring about generational change in the South Africa’s tractor markets where it has been targeted at farmers who own  small land holdings. 

image from 

in.reuters.com

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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Image from cardekho.com

Automotive updates - 8th June

• Automobile dealers' body Federation of Automobile Dealers Associations (FADA) has honoured Tata group Chairman Emeritus Ratan Tata with Life Time Contribution Award. Tata received the award for his invaluable contribution to the growth, development and success of the domestic auto industry, FADA said in a statement here.

• JSW Steel today reported 5.43 per cent growth in crude steel production at 10.68 lakh tonnes (LT) in May over the same month last year.The Sajjan Jindal-led steel maker had produced 10.13 LT steel in May last year, it said in a statement.

• In a bid to save on fuel cost and promote water transport, the Shipping Ministry is preparing a blue-print on the ambitious plan to ship vehicles made in Chennai to Gujarat via sea route and from there to Delhi via road.

• UK based iconic motorcycle manufacturer Triumph Motorcycles has sold 450 units in the country through its six dealerships in the country in the first six months of its operation.

• apanese auto major Honda Motor Co. Ltd plans to hire around 1,000 people in India as it looks to start a second production shift at its plant by the end of this fiscal.

• The company’s wholly-owned subsidiary Honda Cars India Ltd (HCIL) is targeting an almost 50% jump in sales to 2 lakh units in 2014-15. “When we will start the second shift at the Tapukara facility, we will require more manpower. We think we will add 800-1,000 people in our overall headcount in India by the end of this fiscal,” HCIL senior vice-president (marketing and sales) Jnaneswar Sen told PTI.

• General Motor is preparing to launch Chevrolet Corvette Z06, tagged as the fastest car produced ever by the company. According to a recent report, the company could roll out the vehicle in the US market in 2015. GM is likely to roll out the vehicle in coupe and convertible body styles.

• Rising popularity of SUVs across the globe has led the German auto maker, Volkswagen to add more SUVs to its global portfolio. Currently, the car maker has only two products under this segment, including Tiguan and Touareg. If media reports are to be believed, the company is contemplating to increase its SUV range to six vehicles by launching four more SUVs in coming time.

Image from topnews.in

Automotive Updates - 7th June 2014

• India's oldest car maker Hindustan Motors which declared suspension of work at its Uttarpara plant on May 24, has terminated the services of around 240 managerial staff.The company, however, retained some staff in disciplines such as finance and HR.Company sources told PTI that the termination notices on the staff were served yesterday. 

• Maruti Suzuki India, which agreed to let parent Suzuki Motor Corporation own an upcoming plant in Gujarat, expects to save about Rs 10,500 crore in the first 15 years by not investing in the facility. 

• Tata Bolt AMT to be India's cheapest diesel automatic

• General Motors Co on Friday announced four more recalls covering 105,688 cars and trucks globally, raising the number of recalls to 34 including the high-profile for defective ignition switches linked to at least 13 deaths.

• Volkswagen had taken the wraps off its facelifted Polo hatch at the 2014 Geneva motor Show in March this year and announced that it intended to bring the model to India by mid-year.

• According to ET, the German car manufacturer is looking to bring the refreshed model in July.

• GM CEO Mary Barra said 15 employees have been fired and five others have been disciplined over the company's failure to disclose a defect with ignition switches that is now linked to at least 13 deaths.

• The Government of India has announced that it will take steps to improve road safety in the country by re-drafting the Motor Vehicle Bill. Safety norms of developed countries like USA, Canada, Germany, Singapore, Japan and UK will be studied and incorporated in the new bill. The bill is expected to be drafted in a month's time and presented in Parliament.

• General Motors to initiate a program to compensate crash victims or their families, victimised by faulty ignition switch in their cars. So far at least 13 fatalities have been associated with said defect. GM would start receiving claims from 1st of August 2014, and issue compensation upon investigation. 

Image from rediff.com

Automotive updates - 6th June 2014

• TVS Motor Company has launched a refreshed version of its Wego scooter, which has also received the India Design Mark (I Mark) award from the India Design Council. This new model features a digital console with econometer, tubeless tyres, parking brakes and a new exhaust canister. Other than this, the refreshed Wego gets a new set of graphics along with single and dual-tone colour options to choose from.

• In a bid to give a fillip to sales of the Chevrolet Spark, General Motors India has launched a limited edition variant of the hatchback, priced between Rs 3.61 lakh to Rs 4.19 lakh (ex-showroom, Mumbai).

• Hero MotoCorp looks poised to save close to Rs 1,000 crore in the financial year 2015 with its ongoing margin transformation programme yielding desired results, and the ammortised payments to former partner Honda coming to an end in June. 

• Dana, the global supplier of highly engineered driveline, sealing, and thermal-management technologies, has announced that its Sorocaba, Brazil, facility has received the Toyota Quality Excellence Performance Award and its Bogota, Colombia, facility recognised by General Motors Co as Supplier of the Year in the powertrain and chassis category.

• India's natural rubber imports in May jumped 64 from a year earlier to 34,419 tonnes, the state-run Rubber Board said on Friday, as a drop in global prices prompted local tyre makers to increase overseas purchases.

• The proposed manufacturing plant of TVS Motors in West Bengal hasn't been taken forward as legal issues are yet to be resolved."There are some legal issues which need to be resolved before we can move ahead," TVS Vice-President (Sales) J S Srinivasan said here today.

• VW Group owned Czech auto maker Skoda confirmed in March this year that it is planning to come up with a new SUV for its global product portfolio. Now, according to reports, this SUV will also be launched in the Indian market. This new SUV is likely to be based on the upcoming Volkswagen CrossBlue

• German luxury car maker Mercedes Benz says it has witnessed more enquiries and improved footfalls following a stable government at the Centre. The company, in a calculated move, is doubling plant capacity to 20,000 units per annum. Eberhard Kern, MD, Mercedes Benz India, told ET, "In the first half of May, we saw people in the wait-andwatch mode but post the formation of the government, the number of footfalls and enquiries increased. The optimism in the market place has gone up and we anticipate another good year for the company." 

• Global automotive supplier Denso has acquired 72.1 percent of EASE Simulation Inc, to help accelerate R&D of its vehicle diagnostic and telematics business in North America. Denso completed the transition of ownership of the Pennsylvania-based vehicle diagnostics and telematics company on June 4. The company founder, Stephen Golenski will continue to serve as president.

•  image from thehindu.com