#India

In a world obsessed with quantity, volume, economies of scale, speed, expedience and all that comes with it, wouldn’t it be nice if someone wanted to ease up a little and make sure things work?

Tata Motors is one of the biggest and oldest vehicle manufacturers in India. The company has been building trucks and buses for a long time now. The first passenger vehicle from Tata Motors came in the 1990s and there has been no turning back since then. Tata Motors sells many vehicles in Europe, Asia and Africa, including the Indica Vista, Indigo Manza, Safari and Aria (pictured above). However, these products haven’t shaken the market so far.

The Volkswagen Up! and Skoda Citigo are compact cars with a huge potential for emerging markets like India. As much as Indians love small cars, they are big fans of sedans too. Thus everyone wants to upgrade to a sedan as soon as possible. However, big sedans are priced quite high since they attract additional excise duty. In India, a car which is less than 4-meters in length and has a gasoline engine less than 1.2-litre capacity or diesel engine less than 1.5-litre capacity, is classified as a small car.

Chinese products have dominated almost every industry – except of course the automobile industry. But this could easily change. Chinese made cars are improving at a rapid pace and could soon challenge more established car makers. The Chinese invasion will soon start in India, with General Motors launching the Sail hatchback. The Sail is the brainchild of GM’s joint venture with SAIC (Shanghai Automotive Industry Corporation), which is by far the largest Chinese car maker, and which also happens to be GM’s joint venture partner for India.

“It’s too early to say for sure whether GM will purchase the controlling stake in HKJV, and thereby regain full control of its India business. It is unlikely that SAIC will relinquish its grip on India, just because it suddenly can’t service the capital requirements of the HKJV. Possibly, more information will become available when GM files its Q3 paperwork, or possibly later.”

As it turns out, they did.

Want something cheaper than the Dacia Sandero? Maruti Suzuki will sell you a brand new car for 244,000 rupees. That’s $4,613.

The first model to be sold as a Datsun in three decades will start at less than $7,695 when it goes on sale in 2014.

Being at odds with its number one trading partner Japan at the moment, China shows that it doesn’t have to be the big bully, and that it can make nice with other former enemies if it feels like it. China gave a surprising regulatory nod to a joint venture between Tata-owned Jaguar Land Rover and Chery. If you think they were long married, then you are right. They said yes a while ago. However, in China, a joint venture is not really a joint venture unless the National Development and Reform Commission (and sundry other bureaucracies) have given their nod, and did put their chop on the contract.

Ever heard about the Daihatsu Terios? It was born in 1997 and it is sold in India as the Premier RiO. No, not the second generation model, but the first generation model is being sold in India. The rights of the first generation Terios were sold to China’s Zoyte in 2006. Premier (one of the oldest automobile companies in India) imports CKD kits from China and assembles the Terios. I had a chance to drive this car. All I can tell you: This 15 year old does show its age. Premier positions the RiO as India’s first compact SUV. I position it as a fail.

Ford won’t be following in the footsteps of Renault and other auto makers that have introduced “low cost” brands like Dacia. But the company hasn’t ruled out a model line of cheaper vehicles either.

When you want to make and sell cars in India, you don’t need a joint venture partner. Except when you are GM. In the dark days of December 2009, GM cut a deal with Chinese partner SAIC, gave them half of its India business and a golden share in China for much needed cash. SAIC underwrote a $400 million loan when GM was out of money. Now, India is flooded with Chinese cars bearing the Chevrolet badge.

Electric cars haven’t taken the market by storm, despite a hurricane of propaganda, and despite of tsunamis of government subsidies. Now, India is joining the fray. India will spend some money to entice its citizens to go electric. Like the U.S. and China, India expects them to do so by the droves.

Its massive price tag and limited availability keeps the Bugatti Veyron out of the reach of most. But what if you really wanted to own one yet didn’t want to break the bank? Enter the Bugatti Veyron replica, which costs $40,000 (inclusive of the donor car). This particular vehicle belongs to a rich businessman in New Delhi, India. He uses it as a support car for his Lamborghini Gallardo. The roof can be folded too, which makes it the Grand Sport.

The Nikkei’s good contacts to Suzuki ( CEO Osamu Suzuki occasionally blogs for The Nikkei) did not fail the Tokyo wire. Yesterday it was reported on a rumor basis, today, it is officially confirmed that Maruti Suzuki will restart production at its Manesar factory on August 21, about a month after a mob killed the firm’s human resources manager and burned down parts of the factory. The factory makes the Swift hatchback.

Maruti Suzuki “ will likely resume partial production at its violence-hit factory in Manesar, in the northern state of Haryana, by Aug. 21,” says The Nikkei [sub]. The plant remains closed since a mob killed the firm’s human resources manager and burned down parts of the factory. Fifty management personnel and 9 police officers were injured during the clashes. Mass arrests were made. Maruti Suzuki declared an indefinite lockout at the plant on July 21.