#India

When you enter into a joint venture with someone, it’s kind of important that you’re both on the same page. For one party to say one thing and the other party to say another could look a touch disorganized. Take Renault-Nissan-Bajaj. Renault-Nissan is adamant that their joint venture with the Indian maker would culminate in an ultra low cost car that would compete with the Tata Nano (which is on fire at the moment). Bajaj, on the other hand, is getting cold feet.

India’s Environmental Minister Jairam Ramesh’s jab at diesel-powered trucks and SUVs is turning into a major diplomatic row. Turns out that he didn’t just call drivers of diesel-powered trucks and SUVs criminals. He also said that said the mere act of driving big-engined luxury models from BMW and Mercedes-Benz in India was “criminal”. Jaguars weren’t mentioned.

While Americans wonder if Mahindra will ever bring its diesel-powered trucks and utes to the US market, its main offerings are coming under attack at home. India’s Environmental Minister Jairam Ramesh put diesel-powered SUVs on blast this week, calling the oil-burning utes “criminal” and telling a UN conference that

We are worried about the rate of green house emissions from transport sector. There is need for mandatory fuel efficiency standards. Big vehicles like SUVs should stay off roads

Minister Ramesh’s plan is two-fold: first, he is calling for an end to India’s subsidy of diesel fuel, arguing that diesel contributes disproportionately to India’s greenhouse gas emissions. The second portion of his plan is more controversial, but should sound familiar to American readers: get rid of those nasty SUVs. Ramesh explains

Put a penalty on the type of cars you don’t want to see on the roads, which are diesel-driven cars, SUVs… We cannot ask people to buy or not buy a particular car. But through an effective fiscal policy, we can certainly have an impact

India’s auto industry insists it’s ready for diesel prices to be cut free, but they’re fighting back against Ramesh’s suggestion of a jihad on SUVs.

Recently, I wrote about how Tata is reaping huge profits thanks to the acquisition of the “toxic” JLR brands. It was a huge gamble to buy them, but it paid off. Literally. Well, it appears that Tata’s growing profits are going to benefit not only Tata, but ironically, Ford, as well.

The Tata Nano was seen as the car which will set the Indian car market on fire. Unfortunately, it seems it’ll also roast its owners.

When Tata bought Jaguar Land Rover (JLR) from Ford in 2008, the general consensus was that Ford was off-loading a massive problem, and that Tata should have their collective heads examined. JLR had been nothing but a cash drain on Ford. Sucking up resources which other divisions (cough-Lincoln-cough) sorely needed. The Jaguar brand was damaged due to the X-Type “fiasco” (note the inverted commas, because I still love my X-Type!) and Land Rover wasn’t really held in much higher regard. Even I, a big Jag-fan, had to concede that I was seeing the final days of JLR. How wrong was I?

The idea behind the big car bailout supposedly was to keep millions of jobs in, well, North America. Ford didn’t partake, and hence should be free of moral obligations. ( Not that other companies on the government drip seem to be queasy about exporting jobs instead of cars.) Empowered by a clean conscience, Ford moves production to where it makes the most money. To India.

The recently-debuted Chevrolet Volt ads are built around the same basic assumption that drove the design of the Volt’s extended-range electric (EREV) drivetrain: Americans will not tolerate running out of vehicle range. So severe will be America’s Range Anxiety®, GM is guessing, that its electric vehicle (EV) consumers would be happy to lose some electric range and pay a significant price premium compared to the pure-electric competition in order to fill up on gas when they forget to plug in. But while we wait for this psychological insight to prove true across the broader market, recent news seems to show that GM has forgotten about another beloved American freedom: the freedom of choice. For example, the choice to buy a GM-made “pure” EV. To find that kind of freedom you have to go to China…

The need to expand automotive brands while improving fuel economy is driving automakers to some interesting lengths of late. From GM future concepts that have more in common with a Segway than a Cruze, to Honda’s U-3X and Chrysler’s ill-fated PeaPod, automakers are sending strong hints that the future will be smaller and decidedly less car-like. And MINI and Smart recently took this trend to its logical conclusion, each announcing that they would build (or, more precisely, re-brand) scooters… or as they call them, “alternative mobility concepts.” Which raises the question: what’s a scooter brand to do? Well, Piaggio, maker of the Vespa and other scooter-based “alternative mobility concepts” isn’t going to just drone off into that good night, and it’s fighting back by creating an “alternative” to its core scooter products: a four wheeled car-like “mobility concept.”

As Herr Schmitt reported yesterday, it looked like it was going to be a bumper month for the Indian car market. In his article he mentioned that market leader, Maruti Suzuki posted a 39 percent gain, which is impressive considering production constraints is preventing them from selling any more. But let’s have a look at the other players in the Indian motor market.

Meanwhile in India, things look much better. No total sales are in yet, but market leader Maruti Suzuki posted a 39 percent gain in sales to 118,908 vehicles in October from 85,415 a year earlier, reports The Nikkei [sub]. This was the strongest October in Maruti Suzuki’s recorded history.

Rumors of Tata’s Jaguar Land Rover (JLR) establishing production in China have been around for a while. With good reason, Jaguars and especially Land Rovers enjoy (fairly) brisk sales in China. Now, these rumors move into the realm of the definitive.

Tata reiterated its threat to invest the the U.S. and Europe with their bargain-basement Nano car. At an event held today in Toyko, Tata’s Vice Chairman Ravi Kant said that “Tata Motors now plans to take it forward to the developed markets in Europe and in the U.S.,” The Nikkei [sub] reports. “Now plans?”