Awarded As The Best Car Hire Company In India By Times Travel Honors

By: Announcement
Source: http://www.business-standard.com/india/


Wins “Asia’s Leading Car Hire” Title For The 6th Year at Regional World Travel Awards

Avis India, the leading International car rental brand in India has been awarded as the best Best Car Hire Company by the Prestigious “Times Travel Honours”,. These awards are aimed at recognizing and honouring outstanding achievements of individuals / companies who have created a positive impact in Indian Tours and Travel Industry.

Avis in Asia too has again been awarded as “Asia’s Leading Car Hire” company at the regional World Travel Awards ceremony this year. The World Travel Awards is a prestigious organization of travel professionals around the world that recognizes excellent customer service in the international travel and tourism industry. Avis at the awards was named Europe's Leading Business Car Rental Company, Asia’s Leading Car Hire Company, Africa’s Leading Business Car Rental Company, Indian Ocean’s Leading Car Rental Company and Egypt’s Leading Car Rental Company. The awarding ceremony was recently held at the Dusit Thani Hotel in Bangkok, Thailand.

This is the sixth consecutive year that Avis Asia has brought home the “Asia’s Leading Car Hire” accolade from the esteemed institution. Avis has been honored as the top car rental company in Asia since 2006 for its excellent delivery of customer service and reliability amidst tight and growing competition in the industry.

Speaking about the awards Mr Sunil Gupta, CEO, Avis India, said, “Providing a high quality service on an odd occasion may be possible for some other operators but the real differentiator for Avis is that it does this consistently, time after time, across all 17 cities and from all 39 locations that we operate in. An Avis customer is getting into an Avis car somewhere in India once every 45 seconds. Providing a consistently high service on each of these occasions demands an investment in people and technology, which we have been doing consistently. Receiving these awards for the sixth year in a row proves that our constant endeavor to understand customer needs and invest in processes to meet these needs has proved successful. This is really a proud moment for us”.

The World Travel Awards highly regards excellent customer experience as the main differentiator to lever commercial advantage. Since founded 18 years ago, the World Travel Awards has always aimed to acknowledge, reward and celebrate achievements in all sectors of the global travel industry. As a benchmark for industry excellence, the World Travel Awards prides itself on identifying companies that consistently excel beyond expectation to offer a world-class service, making it the most coveted and sought after awards in the industry.

Avis’ success at the World Travel Awards and all these prestigious award shows only proves how Avis can make a difference in the service industry. Through its steadfast commitment to world class service and customer satisfaction, as well as its relentless goal to provide flexible mobility solutions to travellers around the world, Avis remains unparalleled in this realm despite tough competition.

Furthermore, Avis has also been awarded as the Best Car Rental Company Worldwide by UK-based international travel publication, Business Traveller; and the Silver Lions during the much acclaimed Cannes Lions International Festival of Creativity for its commitment to environmental sustainability through its “Carbon Neutral” status in South Africa. This noble effort has also been recognized in the Climate Change Leadership Awards where it won top prize in the Corporate Services Category followed by recent results on the Top Brands Survey of the Sunday Times (South Africa) wherein it gained top ranking in the Business to Business Car Rental Category.

Its impressive accomplishment in the service industry is all the more exemplified with its recognition as the Leading Car Rental Company in Customer Loyalty in the Brand Keys Customer Loyalty Engagement Index in India.

Avis India, which has received numerous prestigious awards and recognitions, has also earliuer been recognized as a ‘Super Brand’ for the year 2008 – 2009 as well as the Category One Best Tourist Transport Operator Award by National Tourism Awards 2008-09.

Avis in India is a one-stop shop for all car rental needs with Safety, Quality, Timely Service delivery & customer delight as some of its important benchmarks. Avis in India offers chauffeur and self-drive services across a wide range of cars including Economy Segment Cars, Mid Segment (Suzuki Swift Dzire, Ford Fiesta & Honda City), Premium Segment (Toyota Corolla, Toyota Camry, Mercedes E & S class) and MUV/SUV (Toyota Innova, Ford Endeavour & Mitsubishi Pajero).



Source: http://www.business-standard.com/india/news/avis-reaps-success-in-travelmedia-awards/455665/

Honda Motorcycle likely to set up two more plants

By: Amrit Raj
Source: http://www.livemint.com


Honda Motorcycle and Scooter India (Pvt.) Ltd (HMSI) plans to set up at least two more plants in the country in pursuit of its ambition to become India’s largest selling two-wheeler company in the next 10 years, according to three people familiar with the development.

The company is already in exploratory talks with the Gujarat and Uttarakhand governments for setting up the plants over the next three-four years.

The proposed plants will add another 2.5 million units to HMSI’s capacity.

“The idea is to become a leader in the Indian market in another 10 years,” said a person familiar with the development. “The two-wheeler industry is expected to double in another four years, and by 2020 it may double again. This expansion plan is keeping such demand in mind. In the longer term, HMSI aims to have a capacity of 10 million units.”

The Indian two-wheeler industry will grow at an average annual growth rate of 14%, according to the Society of Indian Automobile Manufacturers. At this rate, the market is expected to double every four years till 2020. The industry sold 11.8 million units in 2010, registering a growth of 26% over the previous year.

HMSI’s market share in the first seven months of this fiscal to October stands at 13.4%. It trails Hero MotoCorp Ltd, which dominates the two-wheeler market with a 45% share, and Bajaj Auto Ltd, which has a 20% share. While Hero MotoCorp has a total capacity of 6.4 million units, Bajaj has a capacity to produce 5.5 million units a year.

Japan’s Honda Motor Co. Ltd exited its joint venture with the Hero Group—Hero Honda Motors Ltd—in December 2010 and is now focused on HMSI, its two-wheeler subsidiary, for its plans in the Indian two-wheeler market.

HMSI already has two plants in Gurgaon (Haryana) and Tapukara (Rajasthan) with a capacity of 2.8 million units. It is already building a third factory in Narsapuram in Karnataka, which will add another 1.2 million to its capacity in 2013.

HMSI executives have visited Gujarat a couple of times in the past three months and held preliminary-level talks with government officials for setting up a new plant in the state. The company is looking for250 acres of land for its new factory, said a government official on condition of anonymity.

“Honda officials told us that they have been asked by the top management to survey potential sites in the country for setting up a new project. Gujarat has emerged as a new auto destination with companies like Ford and Peugeot deciding to set up their new plants here, and Honda was keen to know about the incentives offered to these auto companies,” he said.

While Honda has not submitted a detailed proposal, the company plans an investment of Rs.500 crore in the plant, according to the government official.

The state government offers incentives including soft loans and some tax benefits to companies aiming to invest at least Rs.1,000 crore on a project. “If Honda wants to avail these benefits, they have to invest Rs.1,000 crore or more,” the official said.

The company is also in talks with the Uttarakhand government for another plant in the country, said the person cited above.

“We have laid the foundation of a third factory at Narsapuram, Karnataka. With the three plants, we shall have a capacity to produce four million units by 2013,” the company said in an emailed response. “Any further expansion is not decided and it depends upon market demand.”

Shinji Aoyama, a former chief executive of HMSI, had told Mint in March that the company wants to emerge as the leader in the country’s two-wheeler market. “Our target is to become the No. 1 company in the next 10 years,” Aoyama had said.

In line with its expansion plan, the company also plans to put in place a cost-effective supply chain for delivering products. “As our dealer sales and service network is expanding rapidly, we have created five regions for sales operations from 2007. The Bangalore, Pune and Kolkata regional offices were already set up between 2007 and 2010. However, the Lucknow office started in 2011 for the central region,” the company said in the email. “This plan is to speedily build network to respond to customer requirement quickly.”

It’s an ambitious step taken by HMSI to take on Hero MotoCorp, said an analyst with a leading brokerage firm, who declined to be named. “They have been very aggressive in the country and with this kind of expansion plan, the intent is very clear,” said the analyst. “But as far as Honda dominating the market is concerned, I have some doubts as the other three (Hero, Bajaj and TVS Motor Co. Ltd) are seasoned players in this market.”

Source: http://www.livemint.com/2011/11/13192050/Honda-Motorcycle-likely-to-set.html?atype=tp

GM product chief knocks down barriers

By:Christina Rogers
Source:http://detnews.com

Mary Barra, General Motors Co.'s product chief, has little patience for needless impediments.

Her first week on the job, she took one look at all the layers of security doors standing between her office and the engineering staff, and knew immediately they had to go.

"We were creating a barrier that didn't need to be there," said Barra, sitting in her ground-floor office at GM's Technical Center in Warren.

"To me, getting rid of the extra card swipes was like 'Hey, we're part of a team, we should all be accessible.'"

The security doors are now gone, but Barra — named head of global product development at GM in February — continues to knock down barriers and subvert convention in efforts to shake up GM's staid corporate culture in the place where it counts most: the company's laboratory for new cars and trucks.

Less than a year on the job, she's eliminated an entire layer of engineering management, brought marketing execs into the product design fold and is working to liven up GM's in-car entertainment. "The back seat is a whole new ballgame," Barra said, on this last point.

She's working to simplify GM's vast global operations, as well as get GM leaders to make decisions quickly and then stick with them.

"We're not going to do this up-and-down investment," Barra said, in an hour-long interview with The Detroit News.

"We're going to say 'These are the key products'" she said.

"Let's set up the organization to execute them."

As product chief, Barra's job is among the most important at GM.

She manages 36,000 engineers and designers worldwide. The cars and trucks designed under her watch — those likely to hit showrooms over the next three to four years — will largely determine whether GM sustains its still fragile turnaround.

"They have to keep the hits coming," said Michelle Krebs, a senior analyst with Edmunds.com.

"Because the competition isn't letting up, the company with the best product wins."

The world's largest automaker faces other challenges as well. It's about a year behind on its timetable for new car and truck launches, meaning some models are starting to look dated on dealer lots.

The company is trying to bring consistency to its engineering budget and insulate it against market swings. Prior to bankruptcy, GM was losing about $1 billion annually by starting new vehicle projects in good times, only to stop them when the market turned bad. It's an approach Barra likened to a "roller coaster."

Adding to this challenge are new federal fuel regulations, which could require automakers to boost fuel economy of their lineups to an average of 54.4 mpg. That's about double what it is now.

Given this, Barra has no time for the old GM's plodding culture.

"I'm not tolerating it," she said tersely.

Under her leadership, 50-page PowerPoint presentations are banished and engineers are expected to arrive at meetings having reviewed the necessary material.


Source:: http://detnews.com/article/20111115/AUTO01/111150325/GM-product-chief-knocks-down-barriers#ixzz1dlKaZZz1

Volkswagen to bring more small cars to India to raise market share

By: Shally Seth Mohile
Source: http://www.livemint.com
Following a spat with its international partner Suzuki Motor Corp., German car maker Volkswagen AG​ wants to introduce more small cars in India on its own to increase market share.

The Volkswagen Group India, which sells the premium Volkswagen, Audi and Skoda cars in the country, wants to more than double market share to 11% in four to five years, said John Chacko, the group’s chief representative in the country.

Volkswagen sold 81,360 cars in the nine months to September compared with 32,359 a year earlier, and hopes to end the year selling 100,000 cars. Its Chakan factory, near Pune, has a capacity to turn out 110,000 cars a year.

India’s 2.5 million unit passenger car market expanded by more than 25% in the past two fiscal years but is expected to slow down to single digits in the year to March 2012 due to an economic slowdown.

Two years after launching its compact car, the Polo, Volkswagen plans to introduce another compact car, Volkswagen Up, next year that will be priced below the Polo. It is also considering bringing the Skoda Citigo to India.

“The way things are being played out in the volume segment, is very interesting,” Chacko said.

“But we are not even present there. So any step into the future means we have to enter this segment, otherwise there’s not much scope of being further competitive,” he said.

The re-think of Volkswagen’s India strategy has been prompted by its tie-up with Suzuki, which owns Indian market leader Maruti Suzuki India Ltd, going astray, an analyst said.

“The tie-up would have offered Volkswagen an automatic advantage as they would have got a strong local partner in Maruti Suzuki,” said Colin Couchman, a European automotive analyst at IHS Automotive, a sales forecast and market research firm, in a phone interview from Germany.

“The Indian market is skewed towards low-cost cars while Volkswagen’s expertise lie in the premium cars. The (market share) target looks ambitious,” said Couchman.

Volkswagen and Suzuki formed a tie-up in December 2009 to bolster Volkswagen’s presence in India for small cars and give Suzuki access to latest hybrid and diesel technology. But Suzuki now wants to end the partnership.

Chacko admitted Volkswagen is a late entrant in India’s intensely competitive small car segment. A number of auto makers have been launching low-priced small cars that account for 70% of total car sales.

Car companies have been slicing the segment by launching models at varied price points. Hyundai Motor India Ltd launched the Eon this month to take on Maruti Suzuki’s largest selling model, the Alto. Honda Siel Cars India Pvt. Ltd launched the Brio in September at a higher price, its first bet in the entry level compact car segment.

Competitiveness will depend on localization, which brings down costs, Chacko said. The company hasn’t localized the engines and gearbox, the most expensive units.

“The right thing to do is to make further investment into the segment and we then have the chance of solving some of the cost issues we have at the moment,” he said.

However, investments in Maharashtra, where the group is based, will depend on the state government’s policy on value-added tax (VAT).

“We shopped around before setting up a base here. While we have held our promises in terms of investment and employment generation, they (govt) are not,” Chacko said. The Chakan factory was set up with an investment of Rs.3,800 crore and employs 2,500 people.

Maharashtra may soon withdraw a notification that restricts the benefits of VAT refunds to consumers in the state and excludes those sold to the distribution and sales arms of car makers, Mint reported on 10 August. The state government is yet to take a decision on the matter.

An executive at a rival firm said Volkswagen has been more market savvy and flexible in its approach to the Indian market than some rivals.

“They have also managed to expand sales and distribution network at a much faster pace. We consider them a very strong competitor, ” the executive said on condition that neither he nor his firm be named.

Source: http://www.livemint.com/2011/11/01215938/Volkswagen-to-bring-more-small.html?atype=tp

Hyundai Motor seeks steelmaking advantage

By: Christian Oliver
Source: http://www.ft.com


Henry Ford’s epiphany came as he sifted through the wreckage of a French sports car at a Florida race track. He extracted a mangled strip of light metal he did not recognise but instantly knew he needed: Vanadium alloy.

At that moment, Ford determined he had to build his own steelworks to produce tailor-made, lightweight metal for his revolutionary Model T, which entered production in 1908.

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In-house steel mills are not a standard feature of the modern auto industry, but one big carmaker is breaking the mould with its own blast furnaces: South Korea’s fast-growing Hyundai Motor Group.

The family-run group comprises units Hyundai Motor, Kia Motors and Hyundai Steel. Chung Mong-koo, the group’s chairman, holds a 13 per cent stake in Hyundai Steel and Kia holds 21 per cent.

The conglomerate’s motive for boosting steel production for Hyundai and Kia – which combined are the world’s fifth largest maker of cars by sales – is the same as Ford’s was a century ago, as it looks to forge special alloys to slash the weight of its cars.

The goal is to reduce weight by 10 per cent by 2015 and in so doing, make its vehicles more fuel-efficient and more attractive to buyers fretting about high fuel prices. Hyundai believes it will also gain a speed advantage in manufacturing by tailoring specialist steels for its own designs, breaking its dependence on traditional suppliers such as Japan’s Nippon Steel and South Korea’s Posco.

“Every major [automobile] manufacturer wants to have steel-making in-house but the investment is just too huge,” Cho Won-suk, Hyundai Steel’s senior executive vice president, told the Financial Times at the company’s steelworks in the west coast port of Dangjin. “Nobody else out there can decide to invest that amount but Hyundai made the decision to enhance quality.”

Currently only India’s Tata Group shares Hyundai’s interest in both steel and cars.

Hyundai Steel has invested $8bn over the past five years in three blast furnaces at Dangjin, each with a capacity of about 4m tonnes per year. Two have come online since 2010. About a quarter of this 8m tonnes is earmarked for Hyundai-Kia, meaning Hyundai Steel supplies 30 per cent of the carmakers’ needs. It wants to raise that to 45 per cent by 2013, when the third furnace comes online.

The steelmaker is now eyeing a move into the ranks of the world’s top 10 producers by tonnage, targeting output of 24m tonnes by 2013, up from last year’s 20m tonnes and just 4.8m tonnes in 1998.

Mr Cho said the furnaces give Hyundai greater flexibility and speed to forge its own advanced high-density steel for specific designs. Giving the YF Sonata sedan as an example, he said Hyundai Motor plans to improve fuel efficiency by making half the parts from the lighter, specialised steel by 2015, more than double the current 20 per cent.

Despite the benefits to Hyundai and Kia from the steel production push, however, the move poses challenges for the Hyundai Motor Group.

Analysts expect Hyundai Steel’s net profit to sag in the near term as global market turmoil undermines the South Korean won, iron ore prices remain high and prices for construction steel fall. These concerns have pushed Hyundai Steel’s share price down 40 per cent since April.

Currency issues are a particular bugbear for Hyundai Steel as it imports raw materials but makes 72 per cent of sales in the domestic market. Last year, net profit fell to Won1,014bn ($900m) from Won1,152bn in 2009. Kim Kyung-joong, analyst at Eugene Securities, predicts a further decline to Won828bn this year.

By contrast, Hyundai Motor last week turned in another solid quarterly performance in spite of global economic uncertainty, reporting a 21 per cent rise in net profit for the July to September quarter from a year earlier to Won1,920bn.

Some stakeholders grumble that the Hyundai companies risk being distracted by the group’s investments in steel and the construction business. They argue Hyundai Motor Group should focus more on cars because a steel mill is also exposed to the battered shipbuilding and construction sectors.

Fears that Hyundai Motor was bulking up excessively in a sector far from its core were kindled by the group’s $4.7bn purchase earlier this year of Hyundai Engineering and Construction.

“It is positive that Hyundai Steel has stable customers in Hyundai and Kia. The whole group can expand fast thanks to the steelmaking unit but it could also have had more room for investment in auto manufacturing if [it] had not moved into steelmaking,” Mr Kim says.

Source: http://www.ft.com/cms/s/0/0f08c6e6-f3ba-11e0-b98c-00144feab49a.html#axzz1dMeaxDya

Rolls Royce speeds up for first 100

By: Cartradeindia Editorial Team
Source: http://www.cartradeindia.com


One of the world's premier luxury car manufacturers, Rolls-Royce has decided to strengthen its operations in India, owing to the rapid growth of the Indian automobile industry. The British car maker has its presence in India for the past 75 years. When it entered the domestic market, back in 1932, the company primarily built aero engines that were first used in Tata Airlines.

Recently, Rolls-Royce Operations India Private Limited was established in Bangalore, amid celebrations of its 50-year-long partnership with Hindustan Aeronautics Limited in 2006. Since its establishment, Rolls-Royce has been inclined towards introducing its luxury cars in India. Rolls-Royce has now decided to expand its operations as well as its product range in India. Currently, the car maker has two dealerships located in Mumbai and Delhi. The company aims to achieve the desired level of expansion by the end of 2011 or early 2012.

For expanding the dealership network, the company has appointed Herfried Hasenoehrl as the Head of Business Development for Rolls-Royce India. He is expected to give new highs to the Rolls-Royce dealership network in the country. In addition, he will be responsible for identifying potential cities for sales of Rolls-Royce products.

Commenting on the new plans, Marketing and Events Manager, Rolls-Royce Asia-Pacific, Dan Balmer said, “Currently, we are in the process of identifying the dealers. We are looking for dealers who have high local connections.” He further added that various cities having the potential of achieving optimum success for the company through dealer network may include Bangalore, Chennai and Hyderabad.

It is important to note that the British car maker has successfully launched two high-end luxury cars namely Rolls-Royce Ghost and Rolls-Royce Phantom in India. The luxury car maker reportedly sold a total number of 70 cars in 2010. The recent reports further suggested that the company has even mulled upon expanding its product division in the coming time. The company has revealed plans of launching the extended wheelbase model of Rolls-Royce Ghost in India, which would cost around Rs. 3.05 Crore.

Corporate Communication Manager at Rolls-Royce, Asia-Pacific division, Hal Serudin said, “With new dealers and new product, the potential market for Rolls Royce is around 100 units this year.”


Rolls-Royce has also confirmed on increasing the capacity size at the Goodwood plant situated in southern England. The company is planning to increase its current capacity size by 2500 sq. m. The company will invest 10 million pounds in its Bespoke division, where the personalised cars are manufactured. This step has been taken due to the increase in demand of vehicles that are equipped with the Bespoke element.

Considering the increasing demand for its cars with Bespoke element, the company has decided to invest 10 million pounds in the Bespoke segments that manufacturer personalised cars.

Hal Serudin also mentioned that, “Out of 10 cars sold in India, about 60-70% have some Bespoke element.” He also stated that the company's plans to expand operations can be attributed to the growing demand in Asia-Pacific countries including India, China, Korea and Singapore. Rolls-Royce has sold about 1,592 units this fiscal year, out of which the sales of the Asia-Pacific countries has increased by 150%.


Source: http://www.cartradeindia.com/car-bike-news/rolls-royce-speeds-up-for-first-100-114798.html

BMW India investment to be Rs. 1.8 billion by 2012 end

By: Rush Lane
Source: http://www.rushlane.com

The BMW Group is increasing their investment in India to Rs. 1.8 billion by 2012 end. Up until, September 2010, the investment in BMW India was Rs. 1.1 billion. BMW has a production plant in Chennai with a production capacity 11,000 each year on a double shift basis, and has being looking at expending their dealership network here.

BMW India looks at providing 650 people employment by 2011 and additional 1200 jobs will be created in the dealer and service network. By 2012 end, the German auto maker looks forward to 40 dealerships pan India in comparison t the current 24 outlets.

Early in 2012, one would get a glimpse of the MINI in India. At last count, BMW India has sold 7252 luxury vehicles. In the Indian car market, BMW offers the 3 Series, 5 Series, 6 Series, and, 7 Series luxury sedan. The BMW X5, X6, Z4, and Gran Turismo are made available here as CBU's (completely built-up units). The BMW X1, and X3 are produced at their Chennai plant. In addition, the BMW M3 Coupé, and, Convertible, M5, M6 Coupé, and, Convertible, X6 M, and 6 Series Individual and 7 Series Individual are made available on order at their dealerships.

Source: http://www.rushlane.com/bmw-india-investment-to-be-rs-1-8-billion-by-2012-end-1221964.html

Mercedes Benz starts car leasing business in India

By: The Economic Times
Source: http://articles.economictimes.indiatimes.com

NEW DELHI: German Luxury car maker Mercedes Benz on Tuesday started car renting business in India with the launch of Star Lease that will make available its complete range of cars for hire.

According to the new scheme, customers would have the option of leasing a Mercedes car on a monthly rental for a period ranging between 12 and 36 months.

Commenting on the development Mercedes Benz India Director Sales and Marketing Debashis Mitra said, "Consumers shall now have an option to drive away a Mercedes without any initial investment and just pay affordable rentals which shall cover all insurance and maintenance costs for three years."

Source: http://articles.economictimes.indiatimes.com/2011-10-11/news/30266857_1_leasing-benz-financial-marketing-debashis-mitra

Ferrari zooms into Indian market

By: Malvika Sampat
Source: http://investmoneyinindia.com

Taking account of the Indian premium car market, one of the worlds most admired brand, Ferrai is making roads into Indian market.

Ferrrai, the style icon and luxury sports car is targeting the super rich segment in India.

Ferrari has officially entered the Indian market with popular models such as Ferrari California priced at Rs. 2.2 crore, 458 Italia at Rs. 2.56 crore and 599GTB Fiorano tagged at Rs. 3.37 crore. All prices are ex-showroom Delhi.

Ferrari’s latest model the FF, which was unveiled at the Geneva Motor Show earlier this year, will also be available. It carries a price tag of Rs. 3.41 crore.

Booking of the cars has already started with the opening of the first dealership in the national capital. The second showroom will be operational in the second half of 2011 in financial capital, Mumbai.

The company expect to sell more than 100 cars in the next 2-3 years.

Ferrari SpA Chief Executive Officer Amedeo Felisa told that the company has appointed the Shreyans Group as its official importer in India. India is the 58th market for Ferrari. Explaining the late arrival of Ferrari in India, Felisa said it was waiting for the right time to enter the market.

Now Ferrari is in India, a part of the Fiat group, and like its parent Ferrari too shares a string relationship with the Tata Group. TCS develops software for Ferrari’s road and race cars and it was a foregone conclusion at one time that the brand would ride into India on Tata’s shoulders.

Source: http://investmoneyinindia.com/3090/ferrari-zooms-into-indian-market

BMW is investing more than 1 billion euros ($1.42 billion) in factories including in India

By: Alex Webb
Source: http://www.bloomberg.com

Bayerische Motoren Werke AG (BMW), the world’s biggest maker of luxury cars, is operating factories at more than 110 percent of capacity on record demand for models like the X3 and X1 sport-utility vehicles.

BMW plans to make a decision to add new production facilities in growing markets, including Brazil, as it aims to lift sales to 2 million vehicles a year by 2020 from a target of 1.6 million this year, Frank-Peter Arndt, the carmaker’s production chief, said today in Munich. The company aims to increase output further next year with the introduction of the revamped 3-Series sedan, he said.

“We are a business that aims for permanent and long-term success,” Arndt said at an event marking the start of production of the 35,350-euro 3-Series sedan. “We will seek in 2012 to exceed these successful levels of 2011.”

BMW is hoping that the sixth generation of its best seller will preserve its lead over Volkswagen AG (VOW)’s Audi and Daimler AG (DAI)’s Mercedes-Benz, which have both set their sights on the overtaking the Munich-based manufacturer. BMW is investing more than 1 billion euros ($1.42 billion) in factories in Germany and South Africa to produce the vehicle.

The maker of BMW, Mini and Rolls-Royce vehicles plans to expand production at plants in Russia, India and Thailand, where it assembles parts produced elsewhere, Arndt said. The annual capacity at a factory in Chennai, India, will double from the current 20,000 units, he said.

Even with the growth plans, BMW is prepared for a potential slowdown in demand and can reduce production volumes by 20 percent to 30 percent if necessary, Arndt said. BMW measures full capacity at a plant based on two eight-hour shifts, staffed five days per week and 47 weeks per year, according to the executive.

BMW is scheduled to report earnings for the third quarter on Nov. 3. The manufacturer is expected to report a 32 percent increase in earnings before interest and taxes of 1.57 billion euros, based on the average of 14 analyst estimates compiled by Bloomberg.

Source: http://www.bloomberg.com/news/2011-10-28/bmw-factories-work-overtime-on-strong-demand-for-x3-x1-models.html

Volkswagen Group to invest more than €62 billion up to 2016

By:CarDekho Team
Source: http://www.cardekho.com

The Volkswagen Group will invest around €62.4 billion in its Automotive Division in the coming five years. This is the result of the Group’s investment planning for 2012 to 2016 discussed by the Supervisory Board on Friday. “The Volkswagen Group is investing a record amount in forward-looking projects to achieve its goal of becoming the world’s best automobile manufacturer in economic and ecological terms”, said Prof. Dr. Martin Winterkorn, CEO of Volkswagen Aktiengesellschaft, adding: “We shall continue to extend our innovation and technology leadership. Top of the agenda for us are investments in environmentally friendly, sustainable models and drives.”

Investments in property, plant and equipment will account for €49.8 billion. More than half of this (57 percent) will be invested in Germany alone. According to Winterkorn, the Volkswagen Group with its high level of domestic investments offers the best possible proof of Germany’s international competitiveness as a leading manufacturing location. “And this will continue to be the case in future”, he said.The ratio of capital expenditure to sales revenue will be at a competitive level of around six percent on average in the period from 2012 to 2016. Besides investments in property, plant and equipment, the total amount also includes additions to capitalized development costs of €11.6 billion and investments in financial assets of €1.0 billion net of proceeds from asset disposals. Volkswagen is laying the foundations for profitable, sustainable growth by building new production facilities, introducing new models and developing alternative drives, as well as with its modular toolkits. Group Works Council Chairman Bernd Osterloh commented as follows: “Volkswagen’s investment package is yet another move designed to ensure the Group is fit for the future and takes the form of high-quality investments in new, innovative products, manufacturing processes and our global locations. This safeguards jobs for the long term.” He also said that the planning round is proof of Volkswagen’s commitment to its home country of Germany.

For example, roughly €100 million will be invested in significantly improving the flexibility in the body and white production area of the Wolfsburg plant. The same applies to body and white production at Emden. “The investments in the Wolfsburg and Emden locations safeguard operations at the Emden – Wolfsburg – Zwickau turntable. In future, flexible manufacturing of different volumes and products will be possible at these locations, reflecting market requirements. This represents a major contribution to ensuring these three locations are fit for the future”, Osterloh said. In addition, the investments in the German locations will focus on alternative drives, new generations of diesel and petrol engines, and new generations of Volkswagen’s innovative direct shift gearboxes.

At €32.7 billion (roughly 66 percent), the Group will spend a large proportion of the total amount to be invested in property, plant and equipment in the Automotive Division on modernizing and extending the product range for all its brands. The main focus will be on new vehicles and successor models in almost all vehicle classes, which will be based on the modular toolkit technology and related components. This will allow the Volkswagen Group to systematically continue its model rollout with a view to tapping new markets and segments. In the area of powertrain production, new generations of engines will be launched offering additional enhancements to performance, fuel consumption and emission levels. In particular, the Group will continue to press ahead with the development of hybrid and electric engines.

In addition, the Company will make cross-product investments of €17.1 billion over the next five years. Due to the high quality targets and the continuous improvement of production processes, the new products also require changes to, and additional capacity in, the press shops, paintshops and assembly facilities. Investments outside production are mainly planned for the areas of development, quality assurance, sales, genuine parts supply and information technology. Investment activities will also include expenditure on wind, solar and hydroelectric power, in order to supply the factories with renewable energies. The plans are based on the Volkswagen Group’s current structures and hence already take into account the consolidation of Porsche Holding Salzburg. The joint ventures in China are not consolidated and are therefore also not included in the above figures. These companies will invest a total of €14.0 billion in new production facilities and products in the period from 2012 to 2016. These investments will be financed using the joint ventures' own funds.

Source: http://www.cardekho.com/india-car-news/volkswagen-group-to-invest-more-than-62-billion-up-to-2016-5681.htm

Honda Breaks Ground on India Investment

By:The Wall Street Journal
Source: http://cebviews.com

In Brief: Honda Motor Co.’s Motorcycle and Scooter India Unit began building its third factory on Thursday, in a project worth 10 billion rupees (US$205 million). The plant, located in India’s Karnataka state near Bangalore, will employ 3,000 people and should be ready to begin production by 2013.

Our View: Although strategists and senior managers have spent decades refining their emerging markets strategies, our research shows that in 71% of cases, firms spend too much time on market sensing and not enough on capability assessment. For example, a company seeking to enter the Chinese beverages market might realize that changing tastes in urban China signaled a growing demand for its product. However, before making an entry decision, it should ascertain whether it has the capacity to manage sales teams in a large market with diverse regional tastes and incomes; manage a network of Chinese perishable goods suppliers; adjust and maintain its brand in a fast-growing market that is simultaneously attracted to and wary of new Western products; and so on

Source: http://cebviews.com/2011/09/29/idti-honda-breaks-ground-on-india-investment/

Mercedes-Benz to invest Rs 200 crore in India

By:Press Trust of India
Source: http://www.bsmotoring.com

Luxury car-maker Mercedes-Benz India today said it will invest Rs 200 crore to set up a paint shop at its manufacturing plant near over the next 18 months.

"We will have our own paint shop with a capacity of 20 thousand units annually, which is expandable up to 40 thousand units. For this purpose we will invest Rs 200 crore over the next 18 months," Mercedes-Benz India Managing Director and CEO Wilfried Aulbur told reporters here.


The paint shop will be operational by the second half of 2012 and with this additional amount, the company's total investment on its Chakan facility, in Maharashtra, would go up to Rs 600 crore.

At present, the company utilises Tata Motors' paint shop located at Chikhli, near Pune.

Aulbur said the company will also commence operations at its body manufacturing unit next year.

Mercedes-Benz India registered an over 85 per cent growth in sales to 5,416 units during the January-November period this year. Out of this, over 5,000 units were assembled locally.

"Our plant has an annual capacity to produce 5,000 units in single shift and we are running over full capacity. We have just started the second shift operations on a permanent basis and from the next year, we will have an annual capacity of 10,000 units a year," Aulbur said.

The company currently employs 700 people at its Chakan plant. The headcount will double by next year following operationalisation of the paint shop and body manufacturing unit, he added.

The Indian luxury car market has grown by about 60 per cent to about 15,000-16,000 units this year, the company said.

When asked if Mercedes will be the market leader in the segment this year, Aulbur said: "We are not concentrating to be the number one. Our focus is on profitable growth and we are investing heavily on customer relationship."

On whether the company will assemble more models in India, he said: "By 2013, we will see more vehicles coming into the country that will be produced locally."

He, however, did not disclose details.

Mercedes-Benz India manufactures C Class, E Class and S Class models at its Chakan plant, while high-end models such as the M Class are imported.

Asked if Mercedes-Benz would consider exporting cars made in India to other countries, on the back of expansion of its manufacturing facilities, Aulbur said: "Currently our focus is on the domestic market. However, I see potential in exports also in the long run."

"We are investing this money (Rs 600 crore) to make India as a major hub in the mid-term," he added.

The company has fifteen dealerships in the country at present and is in the process of opening two more at Rajkot and Baroda. It today rolled out its 30 thousandth unit, an E- Class sedan, from the Chakan facility.

Mercedes-Benz has sold 14,000 E Class models in India since 1996.

Source: http://www.bsmotoring.com/news/mercedes-benz-to-invest-rs-200-crore-in-india/2901/1

Ford investing $72m to increase Duratorq diesel engine production in India

By:Eric Loveday
Source:http://green.autoblog.com

Ford will invest $72 million to expand its powertrain facility in Chennai, India, bringing the automaker's total investment in India to more than $1 billion. When expansion is complete in mid-2012, the plant's diesel engine production capacity will jump from 250,000 to 330,000 units per year.

This investment is part of Ford of India's transformation into a major global export and manufacturing hub. Both the 1.6-liter TiVCT and the 1.4-liter HC Duratorq diesel engines will be exported from the country.

Back in March, employees at Ford's Chennai plant celebrated the production of the facility's 100,000th engine – a milestone achieved just 14 months after the factory opened its doors. Currently, Ford of India ships engines to Thailand and South Africa, and future plans call for the exportation of India-built gasoline and diesel engines to more markets.

Source: http://green.autoblog.com/2011/05/28/ford-investing-72m-to-increase-duratorq-diesel-engine-productio/

GM India to Invest $500 Million on Expansion

By: Nikhil Gulati
Source: http://online.wsj.com

The Indian unit of General Motors Co. said Friday it will invest half a billion dollars until the end of 2012 to expand production capacity for vehicles and engines as it attempts to meet growing demand for its Chevrolet brand of cars and also introduce a new range of vehicles next year.

Total capacity at the two factories of General Motors India Pvt. Ltd. will be doubled to 450,000 vehicles per year, said the company's president and managing director Karl Slym. The move will include expanding the capacity at its plant at Halol in the western state of Gujarat to 110,000 vehicles a year from 85,000 currently, he said.

An Indian laborer works in the assembly line at the GM India's manufacturing plant in Halol, near Ahmedabad, on Sept. 22, 2010.

Capacity at GM India's factory at Talegaon in the western Maharashtra state will be more than doubled to 340,000 vehicles a year from 140,000 vehicles now, Mr. Slym added.

"We will be raising capacity at Halol by the end of this year, but the total expansion will be completed by the end of next year," he said, adding that GM has invested more than $1 billion so far in its operations in India.

He said part of the investment will also go toward increasing the capacity for car engines at Talegaon to 300,000 units a year from 160,000 now.

Auto makers such as GM, Maruti Suzuki India Ltd. and Toyota Motor Corp. are either building new plants or expanding capacities at their existing factories to capitalize on growth in demand in the world's second-fastest-growing major economy. Sales of cars in India climbed 30% in the year ended March 31 to 1.98 million units--the biggest percentage gain in 11 years.

"We believe the India auto sector is poised to record a significant pickup in sales volume over the next three-five years, due to rising affordability, increased urbanization and improving auto-financing conditions," Ambrish Mishra and Navin Matta, Mumbai-based analysts at Daiwa Capital Markets, said in a recent note.

Sales of GM cars in India grew 59% last year to 110,804 vehicles. The 2010 sales figure is the highest since the company began operations here in 1996.

"Post-bankruptcy [of General Motors], we have been raising funds locally and funding expansion with internal accruals, and this time also we have tied up with a consortium of five Indian banks to raise loans," Mr. Slym said.

He said part of the funds for the expansion will also be contributed by GM U.S. as well as China's SAIC Motor Corp.

GM has an equally owned joint venture with SAIC in India, which plans to make cars from their Shanghai General Motors Corp. joint venture and mini commercial vehicles from their SAIC-GM Wuling Automobile Co. joint venture.

Mr. Slym said GM India will introduce a sport-utility vehicle from SAIC's portfolio by January 2012, which will be followed by a minivan and a light truck next year.

"More than half of the Halol capacity will be dedicated to the new range of vehicles we will launch from SAIC," Mr. Slym said.

GM India now makes and sells eight car models locally under its Chevrolet brand--the Spark, Beat and Aveo U-VA hatchbacks, the Optra, Cruze and Aveo sedans, the Captiva sport-utility vehicle and its multi-purpose vehicle Tavera.

Mr. Slym said a diesel-engine version of the Beat car will be introduced in July and the company will also unveil an electric mini car in June whose sales will commence at a later date.

"The diesel Beat should give us incremental numbers," he said. "As we have said, our target is to sell 300,000 vehicles in 2013 and 200,000 in 2012."

Source: http://online.wsj.com/article/SB10001424052748703655404576292303827419690.html

On sales this year, he said: "150,000 vehicles seems to be a fair number."

Toyota To Invest 1,650 Crore In Bangalore

By: ONE INDIA AUTOMOBILE
Source: http://auto.oneindia.in

Toyota, the Japanese carmaker which has a manufacturing plant in Bangalore, Karnataka has announced plans to make investment of Rs.1,650 crores. Toyota Kirloskar Motors, the Indian subsidiary of Toyota had earlier announced that it intended to increase annual production from 1,50,000 units to 2,10,000 units by the first half of 2012.

Toyota has seen a spurt in demand for its Innova, Fortuner, Corolla Altis, Etios and Etios Liva hatchback. The company in its release has stated the planned investment was to increase production of these models. The Etios Liva hatchback is the first model from Toyota to enter the volume car segment in India and has been received well by the public.
 
Toyota Kirloskar builds the Innova and the Fortuner at its first plant. Its second and recently built plant is being used to build the Corolla Altis, Etios and Etios Liva. Toyota is hoping to gain a strong foothold in India by increasing the number of locally built models.

Toyota Kirloskar Auto Parts Pvt Ltd (TKAP), the parts building division of Toyota Kirloskar plans to install aluminium casting and machining lines, that are scheduled to begin operations in early 2014. The lines are to be installed at TKAP’s new 'Etios' and 'Etios Liva' engine plant, which is scheduled to start operations in the third quarter of 2012. The installation will see an additional investment of about Rs.750 crore and generation of new employment opportunities.

Source: http://auto.oneindia.in/news/2011/07/toyota-invest1650-crore-bangalore-270711.html

Nexteer Automotive investing $30 million in India

By: Kathryn Lynch-Morin
Source: www.mlive.com

Nexteer Automotive on Wednesday announced it would invest $30 million to expand its presence in India with a new manufacturing facility.

The company, based in Saginaw County's Buena Vista Township, said the investment is due to growing customer demand in the region. Once it's built, the new Indian facility will cover 75,000-square-feet and employ 150 people. Nexteer already employs 600 people at two facilities in the country.

Nexteer's half shaft, pump and steering gears will be produced there.

"This investment in India will position Nexteer to become the leading supplier in the region," Robert J. Remenar, president and chief executive officer of Nexteer said in a release. "While committed to our mature markets, a crucial part of Nexteer's global growth strategy is focused on emerging markets supporting both global and regional customers."

In 2011 alone, the company has announced expansions in Poland and Brazil.

Source: http://www.mlive.com/business/mid-michigan/index.ssf/2011/09/nexteer_automotive_investing_3.html

Honda Starts Building Third Two-Wheeler Plant in India

By: Nikhil Gulati
Source: http://online.wsj.com

NEW DELHI – Honda Motor Co.'s India two-wheeler unit Thursday started construction of its third factory, near Bangalore in southern India's Karnataka state, where it is investing 10 billion rupees ($205 million).

Honda Motorcycle & Scooter India Pvt. Ltd. will start production at the new factory by the first half of 2013, the company said in a statement.

The plant will have a capacity of 1.2 million scooters and motorcycles a year and will employ 3,000 people, the company said.

Honda Motorcycle has a factory in Manesar in northern India's Haryana state and a second in Tapukara in the northwestern state of Rajasthan. The combined capacity of the two plants is 2.2 million units a year, which will be raised to 2.8 million units by March next year.

The third factory will raise Honda Motorcycle's overall capacity to 4.0 million two-wheelers a year.

Honda Motorcycle's move to rapidly expand production is in line with its aim to surpass Hero MotoCorp Ltd. and become India's biggest two-wheeler maker within a decade.

Source: http://online.wsj.com/article/SB10001424052970204138204576600281558394512.html

New life style automobiles to be launched in India in the range of Rs 75 lakh to Rs 2 crore

By: The Editor
Source: www.wheelsunplugged.com/

While the Caravans or moving homes are a common concept in the west, it is relatively unknown in the Indian automobile market. It has been reported that Pilote, a French company which came into existence in the year 1962, and produced the first Caravan will introduce the first life style automobiles in India. For nearly 50 years, Pilote has been a brand producing leisure vehicles combined with expertise and customer services. Technology, quality, style, security, innovation, finish and comfort are the key words in the motor home industry.

In the year 2010, Mega Motoren & Lifestyles Pvt Ltd (officially known as Pilote India) secured the exclusive distribution rights of Pilote products and also made the history by starting off the very first luxury motor homes business into India. Pilote India has pioneered into a kind of business that was awaited into a country like India. It is targeted at people looking for comfort and top of the range equipment. Motor homes, as they are called, are entering the Indian market under the chassis brand of Mercedes and Fiat. Manufactured in France, it will be customized as per individual needs and then imported by the company. However, service station as per the international standards is being set up in India.

The models entering India depends entirely on the preference of the client. Over all there are total 50 configurations available. All the vehicles will be right hand drive models with 3.0L engine (Fiat/Mercedes). The first assignment of Motor Homes entering India consists of 3 X FIAT Aventura P 730 LCA and 1 X Merc Explorateur G783 LCE and 1 X Merc Explorateur G 743 LCE, 1 X FIAT Aventura P 730 LCA.

The motor home will start from 6 meters (length) and will go up to 8.59 meters. The price range of the different models that would be available in India will range between Rs 75 lakh to Rs 2 crore.

Read more: New life style automobiles to be launched in India in the range of Rs 75 lakh to Rs 2 crore | WheelsUnplugged
Under Creative Commons License: Attribution

Source: http://www.wheelsunplugged.com/ViewNews.aspx?newsid=11232

Circus comes to town - part

By:Srinivas Krishnan

Source: www.bsmotoring.com

Never have I seen this kind of a crowd! Didn't know there were so many journalists in the world who worked on the automotive beat. Yesterday was the first day of the Frankfurt Motor Show. Actually not, it was the first press day. And all carmakers have pulled out all stops to grab eyeballs like never before. This is the first motor show I have been to in which even if I wanted to attend a press conference, I simply haven't been able to. Not because of a lack of time, but by a mass of people. Landing even twenty minutes ahead of schedule does not make a difference, because there is a wall of people that you have to encounter. It is, pardon the expression, bloody packed.

A2 Brutus?
Usually, at Frankfurt, it is Mercedes and BMW that hog the attention. This year, Audi has pulled out all stops to be top of mind. The S versions of the A6, A7 and A8 apart, Audi has the A2 concept. This compact city car will be eco-friendly too, and will turn from concept to reality even before you know it. The significance of the A2 is that it will eventually find its way into India, but not so early to make Audi a mass market brand! Audi has been the leader iin using LED tech to define the way their vehicles look. I am beginning to feel a little tired of it because everybody is overusing it, even Audi! The A2 concept has LED strips running everywhere, even on the waistline. I only hope that does not get into production. If I am not mistaken, there are enough strips of the stuff inside to give a fluoroscent tiger a complex.

What's Up?
This could be considered the production star of the show because the concept star of the show follows a little later. The Volkswagen Up is a sureshot car for our country, that will see VW going lower in the segment ranks to gain more volumes. With the split with Suzuki, Volkswagen is truly alone in this segment. The Up looks cheeky and interesting, and it will be positioned below the Polo. There is decent space on the inside, with good boot space as well. The quality, especially, is really good for a car in this segment. That's the advantage of having a vast parts bin to choose from. The interiors are cheerful and VW has taken an idea off the Fiat 500 to give a colourful plastic dash that looks like painted metal. There were several versions of the Up that VW showcased, including a buggy concept. However, the one that is most interesting to us is the four-door Cross Up.

Mini happy returns
Mini made a major announcement: that they were entering India. Mini has been mulling an Indian entry for quite some time now. They researched, met journos, sounded out people, etc in the past. Perhaps they found out that Mini does not hzve any historical connotations in India like the way the Beetle has. Then of course is the sheer effort involved in setting up an independent dealership network. Then they decided not to enter. But now they have finally made up their minds. The Mini range has expanded and India is too hot to ignore. Existing BMW dealers would be given the first priority in setting up Mini dealerships. And I guess there is now a new generation of Indians for whom there is no heritage or history attached to Mini; they probably look at it as a cheeky British brand owned by BMW. So for Mini, it is as good as a clean slate.

B positive
The cavernous Mercedes-Benz pavilion wanted to define the next 125 years of the automobile. An outrageous gull-winged concept, hopefully, would see production after 125 years. But more important to us was something more immediate. In the quest for volumes in India, Mercedes will be looking at bringing the new B-Class which was unveiled here, to our country. The B is a good-looking hatchback but to think of it as a mere hatch would not do justice to the car. It seems to be immensely practical for our country, considering its footprint sould be ideal for our roads. But at what price can you have a Mercedes hatchback? It will be the cheapest car to wear the three-pointed star when it gets launched in India next year, but will it be an aspirational car? That will be the challenge.

Mission Possible
The Skoda Mission L concept is actually Vento based, but you wouldn't know it when you look at it. It is almost as big as the Octavia, but actually in international markets, will be placed below it. The Octavia is of course the Laura abroad, as you are aware. Confusing? Well, let's make it a bit worse. On the 20th of October, we are going to see a new Skoda, which is also Vento based but not as big as the Mission L. Bookings on the new car will begin then. Deliveries of the Vento-based Skoda will begin this December. As for the Mission L, it will make its way into India maybe by the end of next year. So what happens to the Octie? Hmm, good question.

Sweet 16
Usually, it is difficult to select a single car as the star of the show. This time around, it was pretty easy. Only, it is a concept rather than a production model. But it will get the green signal very soon. The Jaguar CX-16 is a sportscar that looks stunning and gorgeous. Now design chief Ian Callum has done a clean break from the E-Type hangover despite the car being billed as the 21st century E-Type. It has a lot of elements that are borrowed from the legend without being obviously retro. Nice. It is a hybrid and that button on the steering wheel which gives a sudden boost of torque has a lightning symbol on it. Calling it Push To Pass is oh-so-British. I have only one fundamental problem with the Jaguar and Callum is to blame for it. From some angles it looks like an Aston Martin!

Defender of the faith
Well, the DC100 is the new Defender. And Land Rover surprised us wth a topless version of the concept called the DC100 Sport. It arouses strong reactions, but considering what design head Gerry McGovern has done with the Evoque, all is forgiven. The DC100 looks too much like a concept and the production version could be fairly watered down. It somehow does not look as invincible as the original, but I am sure LR/RR will ensure it is so. The biggest difference between the original and the follower is that form followed function on the first one, but in this case, it looks like function will follow form!

Source: http://www.bsmotoring.com/blogs/blog_storypage.php?autono=4003