Category: India

By Edward Niedermeyer on November 18, 2009

Yes, but where are they actually?

Autoblog ran this picture purporting to show the locations of future dealers of Mahindra and Mahindra pickup trucks. This piqued our interest because we’ve been curious to see how the Indian firm’s plans to bring diesel-only compact pickups and SUVs to the US market would play out for some time. Over a year ago Mahindra said it would be delaying its US launch (originally planned for Spring 2009) until the fourth quarter of 2009 because, as Mr Mahindra himself put it “my family’s name is going onto this vehicle, and it’s not going to fail.” Well, here we are in the fourth quarter, and Mahindra is still calling the dots on the map “potential” outlets. They’ve also apparently pushed back the launch date again, to the first quarter of 2010. Automotive News [sub] reported way back when that Mahindra’s distributors (Global Vehicles USA) were asking for $200,000 in franchise fees. Maybe finding folks willing to pay that amount for the honor of selling diesel-only compact trucks and utes are hard to come by. Either way, it’s getting to be defecate-or-get-off-the-pot time.

By Edward Niedermeyer on November 12, 2009

Everyone has the Nano in its sights (courtesy: pajamadeen.com)

With Tata unable to produce enough Nanos to keep up with demand, more automakers are gunning for its entry-level segment. Renault-Nissan is teaming up with its Indian-market partner Bajaj to produce a car that’s even cheaper to produce than the Nano. “I can tell you the cost of this car would be lower than any car today made in India,” Renault-Nissan CEO Carlos Ghosn tells Gasgoo, adding that a lower production cost wouldn’t guarantee that the new car would be priced lower than Nano. The Renault ULC, as the low-cost car is being called during development, will be available in India in 2012, by which time GM and Toyota could have competing models on the market. Ford’s recently-announced Indian market low-cost car, based on the discontinued previous-generation European Fiesta, will be positioned above the Nano. And that strategy also appeals to Honda. The Motor Company tells the WSJ that rather than competing directly with the lowest-cost segment, a sub-Fit (Jazz, as it’s known globally) hatchback will be introduced around 2012 to compete with Ford’s model. The Jazz/Fit currently sells for about $15,000 in India, leaving a huge window between there and the Nano’s approximately $3,000 price price tag.

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By Bertel Schmitt on November 2, 2009

You could have mine in any color, as long as it’s shocking pink. Picture courtesy Wikimedia.org

I’m thinking about opening a car factory. A really small one. Tata would sell me their Nano in kit form. I’d have it assembled (using cheap Chinese labor, of course) and sell it as the Bertel car. Entirely possible. Tata may allow small car assemblers to put together its Nano and sell it under their own brand, India’s Business Standard reports via Reuters.

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By Edward Niedermeyer on October 16, 2009

GM-SAIC Pavillion

Some of the speculation surrounding GM Daewoo’s woes centers around the possibility of GM’s Chinese partners buying The General’s Korean division. Whether those rumors hold up remains to be seen, but there’s no doubt that GM’s largest Chinese partner, SAIC, is looking into taking a larger ownership in GM’s Asian operations. Automotive News [sub] reports that GM is in talks with SAIC on cooperation in the Indian market. One possible outcome could be SAIC taking a stake in GM India. “GM’s discussions with SAIC include business opportunities in India, but no final decision has been made on how they will cooperate,” say GM spokesfolks. But we can guess that it will involve SAIC taking a bigger ownership stake. The Shanghai-based firm has seen sales rise 47 percent, and net profit rise 70 percent in 2009 to-date. GM, in partnership with SAIC, has become one of the top automakers in China. Could that success be replicated in India, or is SAIC simply outgrowing its partner?

By Robert Farago on October 15, 2009

By Robert Farago on October 7, 2009

Not such a bright Spark, after all? (courtesy avto-russia.ru)

Brook from team-bhp.com sent us this heads-up re: the “other” burgeoning automobile market: India. “Here’s a list of the Top 20 selling cars in India. Ford doesn’t have one car in the top twenty. Chevy has one, thanks to a rebadged Daewoo called the Spark. Suzuki (Maruti) and Hyundai are the clear leaders. Tata could have done better if only the unfortunately named Indica Vista wasn’t so conservative. Most people confuse it with the older first generation Indica. Tata Nano volumes will pick up, but Jag and Landie’s owners barely make any money selling the car itself. Honda’s hawking overpriced (and poorly equipped) cars with terrible after sales service as ‘bonus,’ and Hyundai are stealing their lunch.” So now you know.

By Bertel Schmitt on June 25, 2009

While Porsche has problems consummating the Volkswagen takeover, Volkswagen covets a smaller, but possibly juicy target: Suzuki. The German Manager Magazine has it on good authority that VW wants to get cozy with the Japanese maker of small cars. Buying, say, 10 percent of Suzuki would not be out of the question. Ulrich Hackenberg, head of VW’s R&D, had been in Hamamatsu, Japan. He came back impressed. “We are still in the sniff phase,” said a VW exec to Manager Magazine, no serious negotiations are being held—yet. Ferdinand Piech had praised Suzuki in May. Not that VW needs help building small cars. But they could need help where Suzuki is the market leader: In India, next to China the most promising growth market on the planet. Suzuki had a partnership with GM, but last year, all GM shares in Suzuki were turned into cash, so the coast is clear.

By Edward Niedermeyer on June 16, 2009

Motor Trend has “learned” that a version of the oft-rumored Jag “XE” roadster might have more than just a supercharger whine. They say the 2011 (likely XF-based) “new age E-Type” (lots of luck) will include an extended-range electric version. But don’t worry heritage fans . . . there will still be a proper engine. With three cylinders. Motor Trend kids you not. At least until they mention that “whether the extended-range XE will make it beyond the concept stage is uncertain.” But only after hinting that the forthcoming XJ is also due for the EREV treatment, circa “late” 2011. Time, tide and CAFE standards wait for no automaker? MT figures an EREV Jag will compete with the Tesla Roadster. Which, considering the differences between the XF and the Elise as starting points, probably only means the EREV Jag soft-top will cost around $100K. Perhaps sir would rather look at a V8 model?

By Edward Niedermeyer on June 8, 2009

Automotive News [sub] reports that Tata plans on bringing a version of its Nano subcompact to the US market “in about two years.” About? “Maybe two years and six months,” equivocated Tata chairman Ratan Tata at the Cornell Global Forum on Sustainable Enterprise. But the Indian firm faces at least one major challenge: where to sell the thing. Jaguar/Land Rover North America spokesfolks say that “Tata will not use Jaguar Land Rover’s distribution network and vice versa.” For obvious reasons. The Nano boasts none of the small-but-premium appeal of BMW’s MINI or Chrysler’s forthcoming Fiat 500. So where will it sell? Roger Penske’s Saturn World Market? Global Vehicles U.S.A.’s 330-strong Mahindra distribution network? Wal-Mart?

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By Edward Niedermeyer on May 26, 2009

Who’d have thunk it? The New York Times reports that despite being designed to become the world’s cheapest car, the Tata Nano isn’t attracting as many budget buyers as you might expect. Only 20 percent of Nano orders (India market only) are currently for the base model, a $2,600 vehicle. Half of all orders are for the top-of-the-line model, which boasts such ameneties as cup holders and air conditioning but costs some 40 percent more than a base model. When the Nano was announced, its lowest possible cost was widely touted to claims that it would become “India’s Model T.” And though the low-cost-at-all-costs approach hasn’t been wildly popular, orders for the well-optioned model will help Tata stay out of a profit-draining battle on price alone. But that isn’t stopping competitors from planning ever-cheaper models. Renault/Nissan is planning a $2,500 model developed in conjunction with Bajaj Auto. Toyota is also rumored to be pursuing a low-cost car for the Indian market.

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