Report: Ford Leaving Indian Market, Ending EcoSport Production
Ford appears to be pulling out of India, with the automaker confirming plans to end production there by next year. While a sizable automotive market — fifth just behind Japan, with about 2.5 million sales annually — the region never felt like a good fit for Blue Oval. Ford’s cash cows have long been upsized SUVs and pickup trucks, whereas India has an obvious penchant for small automobiles prioritizing value above all else. This left the automaker with a paltry market share estimated below two percent and likely explains why it’s no longer interested in manufacturing vehicles there.
In Thursday’s announcement, the company confessed to having accumulated operating losses of more than $2 billion over the last decade — hence the need for restructuring. But it won’t be cutting ties with India entirely, as it wants the region to handle Ford Business Solutions and help with customer support services via the relevant information centers.
Jaguar Is Going to Try and Sell the I-Pace in India
Jaguar Land Rover unveiled its all-electric SUV to the Indian market this week, proving that it’s dead serious about expanding the I-Pace’s customer base. While parent company Tata Motors undoubtedly has a fondness for its home region, we cannot help but wonder if its a market worthy of pursuit considering the model’s starting price.
The manufacturer has the (90-kWh) I-Pace stickered at 105.91 lakh rupees, which translates to about $147,000 USD. Considering the unique way India writes out denominations and often transitions between crore and lakh as a way to avoid listing high-value items in the millions of rupees, we were initially convinced we’d messed up the conversion. The sum would not only eclipse the $70,000 MSRP Jaguar has affixed to the I-Pace in the United States, it makes it highly uncompetitive against the luxury EVs already on a market that’s not known for its wealthy consumer base. How could this be JLR and Tata’s preferred strategy?
India's Auto Market Also Sucks
We’ve spent the better part of 2019 describing how unwell the automotive markets of China, Europe and North America have become, which might accidentally lead some to believe that most other markets are performing better. While Brazil expects continued expansion and a presumably healthy 2019, its rosy outlook is unique.
Japan saw a modest decline in registrations (just 0.3 percent) through the first half of the year, while Russia recorded slippage of 2.4 percent. But figures from India were far worse. In fact, the country is looking at the biggest sales slump in almost twenty years. Early estimates suggest passenger vehicle registrations may have plunged as much as 30 percent in July, after falling 17.5 percent just a month earlier. Most annual outlooks forecast a double-digit decline in overall sales.
From Durham to Delhi: 2020 MG Hector, Featuring Benedict Cumberbatch
Foreign-market cars are always an interesting case study on these digital pages. The latest craft to catch our eye? The MG Hector, India’s newest family SUV.
When we said that brand, you may have thought we were going to say Britain’s newest family SUV. For that, you are easily forgiven. After all, the Morris Garages name is as quintessentially British as a kidney pie on a foggy morning. The brand was bought ages ago by Chinese interests, of course, and is now making inroads into the Indian market following a tough year of sales in its home country.
To amp things up, they’ve signed the devilishly debonair Benedict Cumberbatch to huck the Hector. About the length of the 2020 Ford Escape, this MG is packed with voice-activated and internet-connected technologies and priced at the equivalent of just $17,600.
Remind me again why cars like this won’t sell on our side of the pond?
World's Cheapest Stripper Bites the Dust; Disinterested Public Barely Mourns
While our Ace of Base series delights in revealing just how bargain basement a mainstream vehicle can get, none of those rides hold a candle to the spartan purgatory that was the Tata Nano.
Billed as the world’s cheapest car upon its release in 2008, the Indian-market four-door was tailor-made to lure that country’s growing market of would-be vehicle owners off motorcycles and into a car with two cylinders, 37 horsepower, and a rear hatch that didn’t open.
Not unexpectedly, the vehicle quickly developed a stigma.
Ford and Mahindra Hop Deeper Into Bed; Joint SUVs Planned
China got a headstart in the “countries with over a billion people who suddenly love owning a car” race, but India’s trying its best to catch up.
With a growing pool of consumers ready and willing to hand over cash for a car, Ford Motor Company knows partnering with a local company that knows the lay of the land is a speedier and cheaper route to profits, so last year it formed an alliance with Mahindra Group. You know Mahindra — the company currently building a retro Jeep-shaped ATV for nostalgic Americans.
This week, the two companies further consummated their bond by signing off on the joint development of SUVs.
See the USA in a Mahindra? Indian Automaker to Open Detroit-area Plant, Report Says [UPDATE]
For the company’s sake, hopefully Mahindra & Mahindra’s second attempt to enter the U.S. market won’t go the same way as the first.
The Indian automaker is reportedly planning a 400,000-square-foot assembly plant in the Detroit suburb of Auburn Hills, and has scheduled a press conference with government officials for November 20th. As we all know, local representatives and their higher-ups don’t like braving the cold unless there’s a promise of jobs and cameras.
A previous attempt to tap into the U.S. market went nowhere, ending in a lawsuit. If this plan comes to fruition, it would make Mahindra’s auto plant the first built in the Detroit area in decades — and would provide American consumers with some new SUV options.
Domestics Abroad: Part II - Chevrolet's Foreign Fare
Today we feature the second entry to our Domestics Abroad series. Here’s where we take a look at the international models proffered around the world that wear a domestic company’s badge on the grille, but are not offered in their brands’ domestic markets. This is ground zero for “you can’t get that here.” All nameplates you’ll see in this series are current production models.
We kicked off this series with Ford, and its 13 qualifying models. Our second entry is Chevrolet, which also places second in number of models.
Here are Chevrolet’s nine entries, in alphabetical order:
Lexus Sees Fertile Ground in India, Launches Trio of Models
After being knocked off the top perch of the “fastest growing economy” podium in 2016, India is expected to return to the Number One spot both this year and next. The world’s second most populous country has seen average per-capita incomes rise to record levels and, while the average only amounts to $1,500 greenbacks, India’s well-to-do class is thriving.
For automakers, the untapped Indian market offers big potential. The latest to the game: Lexus, which arrived today to offer citizens something better than just a Camry.
Flush With Bailout Money, Peugeot Purchases Legendary Hindustan Ambassador
Peugeot seems to be on a roll. PSA Group, formerly known as PSA Peugeot Citroën, announced a new five-year strategy last year after its bailout by the French government. This week we’ve seen some big movement on a potential purchase of Opel and Vauxhall from General Motors. The news was upsetting at Opel’s headquarters in Rüsselsheim, Germany, and the rumblings were loud enough to warrant a personal visit from GM CEO Mary Barra.
In lesser reported news, however, Peugeot’s net has already been cast over a storied Indian nameplate — the Hindustan Ambassador.
Ford Patents the Simplest Car You Can Imagine
Harkening back to its early days as a purveyor of horseless carriages, Ford Motor Company has patented a no-frills folding vehicle for those who want something more than a bicycle.
Intended for developing countries with poor infrastructure, the patent filing uncovered by Autoblog details a lightweight, endlessly configurable vehicle with a collapsible frame.
Ford is Quickly Disappearing From Jaguar Land Rover Engine Bays
Ford Motor Company stuck a “for sale” sign on Jaguar Land Rover as the world spiraled into the 2008 financial crisis, but its engines still beat within many of the British automaker’s models.
That will soon change, as the Tata Motors-owned company continues its rollout of in-house engines designed to reduce its dependence on other companies.
Zero Stars: Watch These Indian-Market Cars Prove What Death Traps They Are
Three versions of a Renault hatchback spectacularly failed their frontal crash tests in India, earning them zero out of five stars, even with an available airbag.
It’s food for thought for the 125,000 Indian buyers who placed orders for the subcompact coffin, but the Renault Kwid isn’t alone in flunking Global NCAP testing in that car-hungry country.
The Maruti Suzuki Celerio, Maruti Suzuki Eeco, Mahindra Scorpio and Hyundai Eon also failed to earn a single star, reports Business Standard.
Marchionne Straddles the World, Shouting 'Jeeps for Everyone!'
The Jeep brand is Fiat-Chrysler’s biggest money maker, so it’s no wonder that CEO Sergio Marchionne is scattering factories around the world like a sailor’s offspring.
The company’s head honcho outlined his business plan for the brand in an interview published by Automotive News, and it involves no longer having to make a “Sophie’s Choice” decision with Jeep output.
Foreign Affairs: Chinkara Roadster S, India
The Indian auto industry is … unusual. Most personal transport is via motorcycle or scooter, but there is a history of car production spanning seven decades. As the country was one of Britain’s largest colonies, it’s not surprising that most of these cars are derived from English ancestors.
Enter the Chinkara Roadster S: an Indian interpretation of the iconic Lotus Seven, built with rough roads and ease of servicing in mind.
Only in India: Attack of the Stubby Little Sedans
How automakers address the sedan question in India is particularly interesting. It doesn’t involve increasing legroom or wheelbase. It doesn’t involve creating a reason to increase the average transaction price of those cars. And despite India having some of the deadliest roads in the world, it doesn’t involve safety.
In India, most automakers go in the exact opposite direction with their sedans — by building them shorter and cheaper, but no more safer — yet they remain just as comfortable inside as the models on which they’re based.
TTAC News Round-up: Winterkorn Appears on BI Top 15 List, Oil Near 11-Year Low (Again), and Jeep Goes Online in India
Where do you end up if you’re the former CEO of a company guilty of cheating diesel emissions tests, the fallout of which wipes out billions of dollars of value from said company? Business Insider’s “The 15 biggest career crashes of 2015” list, of course.
That, and Nissan prices the new Sentra, oil is still on a well-lubricated downhill slide, Jeep is now online in India, and more … after the break!
Volkswagen Has To Recall 323,700 Cars in India Now
Volkswagen will have to recall hundreds of thousands of cars in India for cheating emissions standards, adding to Volkswagen’s worldwide woes that the automaker illegally sold with “defeat devices” designed to cheat emissions tests, Reuters reported.
More than 323,000 Audi-, Volkswagen- and Skoda-branded cars with the automaker’s EA 189 diesel engine will need to be fixed after authorities discovered in November that those cars were illegally polluting. The revelations follow similar charges made by U.S. authorities two months ago that Volkswagen and Audi cars were polluting up to 25 times more nitrogen oxide than allowed by law.
Volkswagen officials in India said cars would be recalled immediately.
Suzuki: "I Feel Refreshed" After Win Against Volkswagen
Osamu Suzuki (middle right), chairman of Suzuki Motor Corporation, can finally celebrate his biggest win. After a failed alliance with Volkswagen put Suzuki — the chairman and company — on the back foot for almost four years, the International Court of Arbitration of the International Chamber of Commerce in London has decided in the Japanese company’s favor. Suzuki will purchase back their own stock from Volkswagen.
Suzuki received news of the ruling Saturday and filed the information with the Tokyo Stock Exchange on Sunday.
“It’s good that a resolution came. I feel refreshed. It’s like clearing a bone stuck in my throat,” said to reporters gathered at a news conference in Tokyo, reports Automotive News. “I’m very satisfied with the resolution. Through it, Suzuki was able to attain its biggest objective.”
Suzuki May Finally Climb Out From Under VW
Hedge fund investor Daniel Loeb has purchased a minority stake in Suzuki Motor Corp., which may mean the automaker could have a ruling on its nearly 5-year arbitration with Volkswagen, Bloomberg Business is reporting.
The unspecified investment in Suzuki by the billionaire Loeb, who is one of Japan’s wealthy business elite, could be a sign that a ruling following June’s completion of arbitration is imminent. For years, Suzuki remained “paralyzed” as the procedure slogged on.
Suzuki has a significant automotive presence in emerging markets and India.
Hyundai May Bring Subcompact Crossover, but It Won't Be Creta
Hyundai is looking to jump into the subcompact crossover fold in the States with the Nissan Juke, Honda HR-V, Chevrolet Trax and everyone else, but it won’t be with the Creta, Edmunds is reporting.
The Creta recently went on sale in India, but executives in America told Edmunds that it wasn’t the right fit for U.S. buyers.
“We have decided to wait a little bit longer to get the right vehicle,” said Dave Zuchowski, president and CEO of Hyundai Motor America.
Jeep Points to Map of India, Says Let's Print More Money Here
More and more automakers are looking at exotic locales to produce their wares (us Canadians can consider Mexico exotic thanks to its ice-free beaches) as they expand their brands and explore in-roads to untapped markets.
For Jeep, that means investing in a shared money-printing press with an unlikely partner: Tata, the parent company of Land Rover. FCA will put $280 million USD into joint venture Fiat India Automobiles Private Limited which, since 2007, has solely produced Fiat models.
Mahindra-Pininfarina Deal Rejected By Creditors
Mahindra’s attempt to buy Italian design firm Pininfarina collapsed over the weekend due to opposition by the latter’s creditors.
First Rendering Of Hyundai Creta Subcompact CUV Revealed
Recently announced for production with the Santa Cruz to possibly be made as well, the Hyundai Creta was revealed in rendered form Tuesday.
Renault Kwid Unveiled, Ready To Battle Maruti Suzuki Alto In India
As the Datsun brand stumbles in India, Renault-Nissan unveiled the Kwid Wednesday to take on the challenge of beating the best-selling Maruti Suzuki Alto.
Will the GenX Nano Erase Tata's 'Cheapest Car' Stigma?
It’s not often a car company, or any group of people for the matter, will admit mistakes – particularly billion dollar mistakes. That’s why the launch of the all-new Tata GenX Nano is refreshing. Based on former CEO Ratan Tata’s dream of moving Indians who transport their entire families on scooters and motorcycles into safer – albeit, basic – four wheeled automobiles, the very fact the original 2009 Nano was the least expensive car on sale anywhere in the world proved to be an albatross around the Nano’s tiny neck. Even Indians aspiring to the middle class of a developing country, it turns out, aspire to be seen in something other than the cheapest car in the world. They’d rather buy a used Maruti Suzuki Alto 800, the hatchback that more or less defines India’s entry level car segment. In recognition of that reality, the new GenX Nano will now be positioned as an entry level hatchback to more directly compete with the Alto 800, Hyundai Eon and the newly announced Renault Kwid.
Tata GenX Nano Latest In Low-Cost Line Of Nano City Cars
Hitting showrooms Tuesday, Tata Motors announced its latest variant of the Nano city car: the GenX Nano.
Mahindra & Mahindra In Negotiations To Buy Pininfarina
Pininfarina designs many things: Ferraris, scissors, Coke machines. Now, Mahindra & Mahindra wants the Italian house’s talents.
Mahindra Buys Majority Stake In NEVS
Ever wondered what Indian curry and Swedish meatballs tasted like together? You will soon enough, thanks to a new deal between National Electric Vehicle Sweden and Mahindra.
Datsun Dealing With Low Sales In Emerging Markets
Last year, Renault-Nissan resurrected Datsun, positioning the brand for emerging markets — like India, Russia and Indonesia — with a portfolio of models that would attract new, young consumers whose wallets were a bit thin.
It’s not quite working out thus far.
Mahindra Seeking Alliances With Global Players
Despite its struggles in its native market — and, perhaps, because of said struggles — Mahindra & Mahindra is seeking to build alliances with a trio of automakers to develop its global presence.
Tata To Enter Global Passenger Market With Help Of Jaguar Land Rover
Having done well with Jaguar Land Rover in its portfolio, Tata Motors is now turning to its premium subsidiary for its own foray into passenger cars and SUVs.
Akerson: Barra Did Not Know About Ignition Defect Before Becoming CEO
Automotive News reports former General Motors CEO Dan Akerson proclaimed in an interview with Forbes magazine that current CEO Mary Barra had no knowledge of the out-of-spec ignition switch that led to the February 2014 recall of 2.6 million vehicles, going as far as to bet his own life on the statement. Barra added the fallout from the recall is a chance for GM to not only “do the right thing and serve the customer well through” the crisis, but “to accelerate cultural change” within the company. Akerson passed the torch to Barra in December 2013 to take time to care for his ailing wife, and has since rejoined Carlyle Group as vice chairman on its board of directors.
GM Moves EV Pack Production In-House, Almost Had A Commodore EV
Automotive News reports General Motors will bring production of the Chevrolet Spark EV’s battery pack in-house to its Brownstown Township plant in the Detroit metro area, having already moved the subcompact’s 85-kilowatt electric motors to White Marsh, Md. in 2013. The pack was originally assembled by A123 Systems before Wanxiang Group picked up the torch. No new jobs will be created as a result of the move, spokesman Dave Darovitz stating GM would add jobs “if consumer demand requires it.” The packs for the 2015 Spark EV — whose market will expand to include California and Oregon later this year — will be 86 pounds lighter than the outgoing units, and will have a storage capacity of 19 kilowatts held within 192 lithium ion cells.
TTAC Salutes The Maruti 800
Despite an ailing presence in North America, Suzuki has been a pioneer in the Indian marketplace, with its Maruti Suzuki subsidiary selling over 10 million vehicles since inception in 1981, with the Maruti 800 serving as its core product.
Datsun Go Production Launched In India
Just in time for the 2014 Delhi Motor Show — where the above Datsun Redi-Go concept made its debut this week — Renault-Nissan launches production of the revived brand’s Go subcompact at their plant in Chennai, India.
Tata Debuts Bolt, Zest Subcompacts
Debuting their first new cars in four years, Tata took the wraps off the Bolt and Zest subcompacts, which are designed specifically to sneak in under four meters in length, to get around vehicle taxation schemes.
Ford Figo Debuts In India
Datsun to Unveil Concept at 2014 Delhi Auto Expo
Should you happen to be in India two weeks from now, Datsun will unveil the above concept at the 2014 Delhi Auto Expo during a conference held by the offshoot automaker.
Indian Car Market Sees First Yearly Sales Decline Since 2002
Akio Toyoda Sees Emerging Markets' Growth Slowing, Uncertainties in China, Japan
Bloomberg is reporting that Akio Toyoda, president of Toyota Motor Corp. and scion of its founding family said that a slowdown in emerging markets and uncertainty over demand in both China and the Japanese home market makes 2014 “unpredictable”.
Tata to Base "Global" Range of Cars On Advanced Modular Platform That It Says Will "Leapfrog" VW's MQB
According to Tata Motors’ managing director, Karl Slym, the company is developing a new modular platform, to be the basis of a “global” range of vehicles that it claims will “leapfrog” VW’s MBQ technology. The new vehicles will be rolled out over the next six years.
Though Tata has had more success selling commercial vehicles than cars, Tata says that it is going to build a family of world class passenger vehicles based on what it’s calling the Advanced Modular Platform (AMP). Tata badly needs new product to replace an ageing lineup of cars which has been doing poorly as the Indian market has experienced a downturn.
2015 Jaguar F-Type Coupe to Debut at LA Auto Show
For those of us who love the Jaguar’s F-Type’s zazz but would prefer to keep the wind out of our hair (along with the rain, sleet and snow) on a more permanent basis, Jaguar now has an option for you.
GM Found Responsible For Using "Ringer" Engines in Indian Emissions Testing, Tavera Production Resumes
The Times of India and the Hindustan Times are reporting that a panel appointed by the Indian government to look into General Motors’ recall last summer of 114,000 Chevrolet Tavera multiple use vehicles says that the company violated testing regulations, according to a government official who has seen the report. The recall came after a surprise check by the Automotive Research Association of India, an industry group that works with India’s Ministry of Transportation, found that the Tavera’s production diesel engines were not consistent with those that GM had supplied for testing.
You Can Buy A New Stingray Right Now For Only $7,000!
Production on the all new seventh generation 2014 Corvette Stingray has begun, though they haven’t officially gone on sale yet while the inventory pipeline fills. It’s the first time in decades that the Stingray name has been used by the Corvette. However, it turns out that you can buy a brand new Stingray right now, and for only about $7,000. There’s just one catch. It’s not a Corvette, made by Chevy or even sold in the United States.
Suzuki Denies Renewed Talks With VW
Not so fast…again
Though recent reports claim that VW Chairman Ferdinand Piech and Suzuki President Osamu Suzuki are involved in board level talks to resolve the differences in their on again off again relationship, at a news conference for quarterly earnings, Suzuki Executive Vice President Toshihiro Suzuki denied any such talks have taken place. According to Reuters, Suzuki claimed that “There have been various reports, but there absolutely are no such facts, so there is nothing I can talk about on this topic.”
GM Names Chief Transmission Engineer Interim Head of Global Powertrain Operations in Wake of Indian Emissions Testing Scandal
GM tabbed the automaker’s head transmission engineer to be interim chief of the firm’s global powertrain operations while the company conducts a search for a permanent replacement for Sam Winegarden, who was fired in the wake of an emissions testing scandal in India.
Jim Lanzon, 62, is currently vice president of GM, global transmissions, a position he’s held for 11 years and had an important role in negotiating the recently announced agreement between GM and Ford Motor Co. over jointly developing new 9- and 10-speed automatic transmissions. Like Winegarden, Lanzon has been a longtime GM employee.
GM Axes Global Powertrain Chief & Several Employees Over India Emissions Testing "Ringer Engines" Scandal
Tavera SUVs at GM India assembly plant
Automotive News is reporting that Sam Winegarden, GM’s vice president for global engine engineering, the company’s highest ranking powertrain executive, was fired this week along with about 10 other GM Powertrain employees in the U.S. and India, over cheating in GM’s emissions testing at its Indian subsidiary.
Renault-Nissan To Launch Modular Architecture For Low-Cost Cars
In India for the relaunched Datsun brand’s first car, the Go, CEO of the Renault-Nissan alliance, Carlos Ghosn, announced that Renault and Nissan will jointly develop a platform for low cost and ultra low cost cars aimed at India and other emerging markets, which Ghosn believes will make up 60% of the global automotive market by 2016. To do that, the alliance will spend another $5 billion on investments in their Indian operations over the next five years. Renault-Nissan is committed to using India as its global hub for emerging markets, developing the cars there as well as assembling and exporting them.
Jaguar F-Type V8S Costs More Than XKR-S In India
Jaguar has launched the F-Type in India, priced at an insane Rs. 1.37 crore for the V6 S and Rs. 1.61 crore for the V8 S (no base V6 on offer). Jaguar has almost confused Indians with the F-Type’s pricing as the 2-seater sportscar costs more than the XK in the country.
Mahindra Tweaks Car To Evade SUV Tax
The Indian government is bizarre. A few months back, a new tax was applied on SUVs, resulting in 3% extra excise duty on them. The government justified the move saying that SUVs occupy more space on the road, although the truth is that large sedans occupy more space than SUVs. A criteria was set and if a vehicle fits into all three, then it is classified as an SUV. Thus an SUV is a vehicle which is more than 4-metres in length, having an engine larger than 1.5-litres and a ground clearance of more than 170 mm. Indian roads are pathetic and you really need good ground clearance to prevent scraping the underbody on large and unmarked speed-breakers.
Renault Duster Starts Losing Steam To Ford EcoSport
Renault launched the Duster in India last year and it immediately became a strong seller. The response to the Duster was so good that the compact SUV overtook India’s best selling SUV, Mahindra Scorpio, to become the segment’s best seller. All was well for Renault until Ford crashed the French automaker’s party with the launch of the EcoSport. Ford not only undercut the Duster’s price by a cool $3000 but also offered way more equipment, helping them to get 50,000 orders in a matter of just two months.
Ford Shocks Renault With EcoSport Price In India
Did you know that the Duster is the highest selling Renault car in the first five months of 2013? The Duster has changed the fortunes of Renault India, selling 5000 units on an average every month, accounting for 80% of Renault’s sales in India. The Renault Duster and Ford EcoSport are big competitors all over the world. In Brazil, the EcoSport has been outselling the Duster. Both cars are compact SUVs with a front-wheel drive layout and monocoque chassis (the Duster is also offered with 4-wheel drive in select markets but not in India). The competition between both vehicles is extremely intense. Both cars are manufactured in India with heavy localisation (the Duster is already being exported to Europe, while the EcoSport will soon be exported to Australia, South Africa and Europe).
Nissan/Renault Join The Kit Car Age
The first CMF-based cars will be produced in a new section of Nissan’s plant in Chennai, India
As you know, TTAC has been following the modularization trend in the industry with great interest. At TTAC, you received an early heads-up on Volkswagen’s MQB kit architecture four years ago, and we followed it ever since. TTAC was one of the first to tell you that Toyota is working on its own kit architecture, called “Toyota New Global Architecture,” TNGA for short. More than a year ago, we told you about Nissan’s Common Module Family (CMF). Now, everybody is talking about kits and modules. Let’s talk a little more.
Nissan Terrano Is A Re-Badged Renault Duster
Renault and Nissan have a global alliance and in India both companies keep re-badging each other’s vehicles. While Renault has re-badged the Micra as the Pulse and Sunny as the Scala, Nissan will do it’s first re-badge exercise on a Renault product with the Terrano. The Nissan Terrano, as you can see in the above sketch, is a re-badged Renault Duster.
Mahindra Chops Off Renault Logan's Trunk
When Renault entered the Indian market a few years back, it had little experience. Thus the French automaker tied up with local automobile giant Mahindra. The first product to be launched was the Logan, priced a bit optimistically. The product didn’t sell, and Renault decided to part ways, giving Mahindra the rights to sell the Logan as its own product. Mahindra went solo with the Logan, re-badged it as the Verito and made some changes. The Logan started to sell better under the Mahindra umbrella.
Indian Car Market: Big Hopes Turn Into Big Disappointment
Long feted as “the next China,” the Indian car market turned into a big disappointment: India’s annual car sales fell for the first time in a decade in the financial year just ended, Reuters says.
“Carmakers in India, two years ago the world’s hottest growth market after China, have seen high interest rates, rising fuel prices and prolonged economic gloom turn an industry recently growing at 30 percent a year into one plagued by huge discounts, showrooms full of unsold cars, and chronic overcapacity.”
Cheap Is Not Always In, How The Nano Flopped
The Tata Nano is the world’s cheapest car but nowhere close to being a good seller. If you factor in the economics of demand and pricing, you will feel the Nano should have done better, much better. Sadly it hasn’t and there are several reasons for it. Firstly the car was positioned as the cheapest car in the world. Nobody (at least not in India) wants to drive the “CHEAPEST” car. Had Tata Motors positioned the vehicle as the most affordable car in the world, things could have been different for the Nano. Or so the theory goes. The truth is probably closer to the fact that people, once they have a little money, don’t want to drive a car that shouts “I can’t afford more!” That type of reverse snobbery is left to very developed markets, or Jay Leno’s garage.
Indian Farmer Spends $13,000 For AK47 Number Plate
A farmer from a village in Punjab recently paid Rs. 7,00,000/- ($13,000) to get the registration number PB-07 AK-47. AK-47 is the famous assault rifle, but what is shocking is the vehicle he got this number for.
GM Mounts Heavy Losses In India
General Motors entered India in 1996 and to this date, the company hasn’t been able to understand the market. The American car maker was among the first few to enter India after the economy was opened to foreigners in 1991, with majority of manufactuers entering India after 1998. GM has two plants in the country, both of which are under utilized (only 38% utilisation). The company initially entered with Opel branded cars (Corsa and Vectra), which were a nightmare when it came to repairs, since parts were imported from Germany, thereby costing a fortune.