#India

When, some seven weeks ago, the Nikkei had the rumor that Nissan would revive its Datsun brand for low cost cars, targeted at emerging markets, official sources at Nissan – not surprisingly – had no comment.

One not so charitable source at Nissan conceded that “this time, the Nikkei is less on crack than sometimes.” Another more diplomatic source said: ”I guess you can expect a press release soon.”

That press release arrived today.

India, often touted as the “next China,” has too much capacity and not enough sales, says a report by Reuters. It is getting worse: India’s carmakers “speed towards a head-on collision with a capacity glut,” the report says.

You think success in India hinges on cheap little cars? Audi thinks overpriced big cars can be good business also. If IBN’s sources are correctly informed, and if the Crores Rupees converter I found on the net is correctly programmed, Audio wants to sell 1 million dollar A8s to the Indians.

Launching the “ world’s cheapest car,” the Nano, into one of the world’s fastest growing auto markets, India, looked like a surefire concept back in 2009. Today, it looks stupid. Like many surefire concepts, the Nano turned out to be a dud. Says India’ Economic Times:

“After several years of disappointing sales, it has now become clear that the snubnosed hatchback’s unique selling point — its price — was actually a commercial sticking point.

Maruti Suzuki’s big news at the Delhi Auto Show was the debut of its production compact MPV, the Ertiga. But it wasn’t all staid family-carriers at the Suzuki stand, as the Japanese-Indian automaker also debuted its XA Alpha concept, described in this dramatically-narrated (to put it mildly) video as “The Small God For The Big Future.” Remember the Suzuki Samurai (our global readers will certainly remember the Jimny)? It’s getting ready for its 21st Century makeover…

MPV times in India. At the same Delhi show where GM demonstrated a good-sized MPV concept, market leader Suzuki showed what they call “India’s first compact Multi Purpose Vehicle” a.k.a. the ERTIGA.

While our friends at Motorbeam.com where snapping pictures, Shinzo Nakanishi, Managing Director and CEO of Maruti Suzuki explained that the MPV will strengthen Suzuki’s position in an increasingly crowded market:

In GM’s darkest hour, in December 2009, GM and SAIC cut a strange deal: GM ceded control of the 50:50 China joint venture by selling 1 percent to SAIC. GM also transferred half of GM’s India operations to the Chinese company. GM received a $400 million line of credit. SAIC received access to the Indian market, which it had coveted, but the Indians had sworn to keep the Chinese out. Now they rode in on GM’s coattails.

At the New Delhi auto expo, GM India yesterday “unveiled the first two products from its joint venture with SAIC,” while our friends of Motorbeam.com were in attendance to snap pictures.

After making rather disparaging remarks about the management culture at Jaguar Land Rover, Tata CEO Ratan Tata is attempting to do some major damage control after he criticized the Brits in a May, 2011 interview with The Times.

Although the article is hidden behind a pay wall, Tata is widely quoted as saying that “…nobody is willing to go the extra mile, nobody.” At the Delhi Auto Show, Tata essentially backtracked on his comments, saying his fairly explicit comments were misunderstood.

While Detroit is getting ready for NAIAS, the archetypical Detroit company is showing its newest truck in India. At the New Delhi Auto Expo, Ford today unveiled the second generation of its EcoSport “compact SUV.” Our friends at India’s Motorbeam.com were there to snap some pictures for you. According to Ford’s press release, the SUV “will eventually be sold in nearly 100 markets worldwide.” So why haven’t you heard of a Ford EcoSport before?

Today, Nissan/Renault’s Indian partner Rajaj introduced an ultra low-cost car. Actually, Rajaj does not call it a car. Rajaj calls it a “four wheeler.” An analyst called it an “upgraded rickshaw.” Rajaj thinks the analyst is right on target.

Yesterday, the alleged enthusiast blog did play its usual “if we would tell you, they would shoot us” about a possible suitor from India:

“We are not allowed to reveal the identity of the company yet, but we are allowed to reveal some facts about it. They are of course based in India but acts on a world-wide basis with much more than 100’000 employees worldwide. They are a multi-billion dollar company, that work on multiple fields such as energy, logistics, real estate and of course within the aerospace and automotive industry.”

Car sales in India got it under the chin in October. In October 2011, sales of passenger cars were down 23.77 percent, utility vehicles were up a hair at 0.41 percent, sales of vans decelerated by 17.57 percent.

Designed to be the world’s cheapest car, the Tata Nano is supposed to compete with scooters and three-wheelers rather than full-priced, global-brand vehicles. But the Nano has already seen several price increases since the target MSRP of $2,500 was announced, and the price in India for a base-level Nano is now about $2,870. And when you talk about such low prices, even small increases can wreak havoc on expected volumes, and as a result the Nano is turning into something of a flop (helped along by its pyromania problem).

As I noted earlier this week, GM’s decision to bring a pure-electric version of the Chevy Spark to the US opens up an interesting challenge to its “range anxiety”-centric marketing approach. But WardsAuto reports that there’s another challenging question coming out of the decision: where will the baby EV be built? And as I’ve found, GM’s reticence on the topic of the Spark EV program only deepens the mystery for Wards, which writes

Some media are reporting the EV will come from South Korea, where gasoline- and diesel-powered Sparks currently are produced. If so, that’s news to the folks at GM Korea.