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The luxury car segment in India is among the fastest growing segments and global luxury makers like Mercedes Benz and BMW and Audi have registered astronomical numbers in terms of sales. Now it has been reported in Business Standard that Mercedes-Benz India Limited managing director and CEO Peter T. Honegg, has stated that the company is set to enter two and three tier cities soon and aims to sell close to 50 units per year in those markets. The report stated that Honegg who shared the company’s future plans regarding how it would consider further expanding its current portfolio and introducing more offerings in diesel versions as there is a demand for the same. It was mentioned that though the company has not zeroed in yet on which newer markets it will explore, it will look at on an average 7-10 tier II and III cities in a year for 3-5 years. The luxury car maker recently announced opening of its financial arm. Honegg was quoted as saying “It is too early to say what kind of a...

Auto Expo 2012 may have a second venue within the capital region because the entire space at Pragati Maidan has been sold and there is a long queue of prospective participants outside.  "We are contemplating a second location to accommodate the entire auto industry in an integrated manner," said Vishnu Mathur who heads the country's auto industry body. The Indian Auto Expo has become a priority destination for most automakers over the years when the country emerged the second fastest-growing car market and a global leader in truck and bus sales. But space is scarce.   The entire exhibition space at Pragati Maidan, which hosted all the 10 previous motor shows here, was sold in less than a week. And many multinationals are yet to ensure their participation in the world's largest motor show in attracting visitors. The venue has 55,000 square metre space, which is just about half of total demand, according to Mathur, director general of the Society of Indian Automobile I...

I ndia's largest two wheeler-maker Hero Honda will pay Honda 45 billion yen (about Rs 2,4.5 billion) till 2014 as part of a new licencing agreement signed between the Hero Group and the Japanese auto major after deciding to part ways on their joint venture. Hero Honda Motors Ltd (HHML) said the amount is in line with its existing rate of royalty payment, which is about 2.7 per cent to 2.8 per cent of net sales. For the existing products, the Indian group will stop paying royalty by June, 2014, it added.  Honda and HHML have signed a new licencing agreement, which enables HHML to continue producing, selling and servicing its current products. Consideration for the licencing agreement was JPY 45,000 million and becomes due through 2014," Honda Motor Co said in a statement. Last December, the Hero Group and Honda had agreed to end their 26-year-old relationship, with the Indian partner agreeing to buy out Honda's 26 per cent stake in Hero Honda for Rs 3,841.83 crore ...

Mahindra and Mahindra Ltd, the country's largest utility vehicle maker, has launched a minivan, a derivative of its Maxximo minitruck, to compete with Tata Motors Ltd's Magic and Maruti Suzuki India Ltd's Omni. With this, Mahindra hopes to capture a slice of the market for minivans in small towns and cities. Tata's Magic is the segment leader and sells 5,000-6,000 units a month. The market for minivans is about 140,000 units a year, Mahindra said. Minivans are emerging as the top choice for both entry-level contract and stage carriages, said Rajesh Jejurikar, chief executive of Mahindra's automotive division. Priced at Rs.3.2 lakh (in Navi Mumbai, excluding taxes and insurance), Mahindra's minivan is  Rs.  1,500 dearer than the Magic. In the absence of a formidable competitor except the Magic, the new offering augurs well for Mahindra, said Surjit Arora, an analyst at Prabhudas Lilladher India Pvt. Ltd. But like Tata's Ace, a mini-truck with a payload capa...

Mahindra launched their 8-seater mini van based on the Maxximo Pikup platform today. The Mahindra Maxximo Mini Van comes with the same 900cc, 25 Bhp-55 Nm CRDe diesel engine which is found on the Maxximo Pick Up. The van sports a modern front facia, two-tone interiors and targets the commercial segment. The van focus on the rural transportaion, ferrying school children and basically facilitate the 'rupee per seat' user. It is in direct competition to the Tata Magic and the Maruti Omni is priced cometitively too, it has been priced at INR 3.2 Lakhs, Ex-Showroom Navi Mumbai for the diesel engine. The CNG variant is expected to be launched in two to four months. Starting today the car will be sold at 78 dealerships in phase one and across all dealerships by June end in phase two.  [Source:carwale.com]

Ford Business Services, a 100 per cent subsidiary of US-headquartered Ford Motor Corporation , plans to make Chennai a Centre of Excellence " for its operations in India, a top company official said.   "For the benefit of Ford, we are leveraging on the big talent pool we have in India. We want to make Chennai a 'Centre of Excellence'. This is the journey we are on," Ford Business Services President and Managing Director Joginder P Singh said.   The company also plans to ramp up its facility in Coimbatore as part of pan-India expansion plans.   Ford Business Services offers various services to Ford Motor Corporation, including IT, accounting and engineering services, besides many others.   The company has three units in Chennai and Coimbatore employing about 1,500 people.   Singh said Ford has been growing at 30 per cent every year in terms of manpower, an example of which was in Coimbatore, where 350 people were added last year. "By the end of this year, it...

Tata Motors and Ashok Leyland  have been locked in a battle for leadership in the bus segment for quite some time now, with each having around 43 per cent market share. But the minnows in India.   Volvo, with just 1.2 per cent market share and Mercedes  Benz with even less -- are fighting back in a segment that is perhaps the largest. Volvo, for example, is negotiating with 15-20 state transport undertakings to bag contracts for supplying long distance buses. Mercedes-Benz too is vying for similar contracts on the back of impressive response it got from the STUs in Maharashtra  Andhra Pradesh and Karnataka  MAN is also gearing up to launch a variety of products under the luxury and city bus segment. Industry experts say Indian bus buyers including STUs and private fleet owners are warming up to these international bus brands despite their premium price tags (they cost 15-20 per cent more) for two reasons: one, they have the capacity to absorb hig...

Luxury car maker Mercedes-Benz India today said it will increase prices of all of its models with effect from May 1 to offset rising input costs and impact of adverse currency fluctuations .   "The prices of all Mercedes-Benz models will be revised upwards effective May 1, 2011 for the Indian market," Mercedes-Benz India Managing Director and CEO Peter Honegg said in a statement.   While the company did not specify by how much the price would be increased, it is understood that the hike across the models could be in the range of 1.5 per cent to 2 per cent.   The company sells a host of models, including the C Class, E Class, S Class and the super luxury sedan Maybach, at price ranging from Rs 25.47 lakh to Rs 5.85 crore (ex-showroom Delhi).   Honegg said the step has been necessitated due to the rising input costs and challenging exchange rates as well as inflationary impacts that have a bearing on the cost of the final product.   "We have absorbed these to a s...

A day after renaming the 'Logan' sedan as Verito and dropping the French automaker Renault's badge, Mahindra & Mahindra today also revised the price of the car which will now sell at between Rs 4.82-Rs 5.62-lakh in both petrol and diesel variants, pan-India.   "The Verito, with its unique value proposition aligns with the Mahindra DNA of offering tough, rugged and sporty vehicles. For the first time, we are using social media platforms to unveil a new product, reflecting alternative thinking," M&M's Chief Executive, Automotive Division, Rajesh Jejurikar, said in a statement.   "The earlier Logan will continue to get complete service and spares support from us," he said.   Earlier, the Logan was available in both petrol and diesel variants, priced between Rs 4.67-lakh and Rs 6.47- lakh (ex-showroom) as per the company's website.   Powered by the Renault engine, the Verito is a sedan which remains true to itself and the consumer by offerin...

Betting big on Punjab market, luxury car-maker Rolls Royce is contemplating opening a dealership in either Ludhiana or Chandigarh by the year-end. This was disclosed by Pankaj Sharma, manager-sales Rolls Royce Car Motors, New Delhi. At present, Rolls-Royce has two dealerships in Mumbai and Delhi and has already sold five cars in the Punjab market this year. He further mentioned that his dealership is targeting to sell at least 25 cars by year-end in Punjab, Chandigarh and Haryana market. He was in the city to showcase Rolls Royce’s two models — Phantom and Ghost and one of the participant of – ‘Magique for Arte’ complete luxury exhibition which was organised by Delhi-based 1 Management Entertainment, for the first time in Chandigarh. The two day exhibition which kick-started today would showcase luxury brands from India and abroad, will reveal exquisite items ranging from incredibly finished jewellery to luxury time pieces, to precious stones of different sizes, shapes and cut, ...

Just over a year after breaking up its joint venture with Renault, Mahindra & Mahindra today said it has renamed the 'Logan' sedan as 'Verito', thus completely dropping the French automaker's badge from the entry level sedan.   "We are delighted to announce that the Logan will now be called the Verito. It will sport the Mahindra badge and emblem," the company said in a statement.   It, however, did not specify whether there has been a change in the price of the sedan.   Currently the Logan, which is available in both petrol and diesel variants, is priced between Rs 4.67 lakh and Rs 6.47 lakh (ex-showroom) as per the company's website.   Last April, M&M and Renault had agreed to part ways from their joint venture -- Mahindra Renault Pvt Ltd -- that was formed in 2005 to produce and sell the Logan in India as the car failed to meet expectations.   M&M had agreed to buy out Renault's 49 per cent stake in the JV for an undisclosed sum.   T...

The country's largest car maker Maruti Suzuki India is planning to shift production of about three lakh vehicles from Gurgaon to decongest the old plant as soon as the two new units at its Manesar facility come up.  The Gurgaon facility that has three units, currently produces nearly 9.5 lakh units per annum. Once the vehicle output is trimmed at the facility to 6-6.5 lakh units, the company aims to utilise the idle space and workforce to produce more engines and other parts there.  "The Gurgaon facility is very congested and old. We need to reduce some production there. The plan is to reduce the output to 6-6.5 lakh units annually," Maruti Suzuki India (MSI) Chairman R C Bhargava told PTI.  The company had rolled out nearly 9.5 lakh units from Gurgaon in 2010-11 out of a total installed capacity of 8.5 lakh units at three plants in the complex, spread over 300 acres of land. It produces models like Swift, M800, Omni, WagonR, Ritz, Alto, Eeco and Gypsy there....

Toyota Kirloskar Motor , a joint venture between Toyota Motor Corp and India's Kirloskar group, said it will suspend production at its facilities on all Mondays and Fridays between April 25 and June 4 due to supply difficulties after Japan's March 11 earthquake and tsunami.   Bangalore-based Toyota Kirloskar, which has a production capacity of about 150,000 units per annum, will operate at about 30 percent of its normal capacity during this period, it said in an emailed statement on Friday.   Toyota Kirloskar makes brands such as Corolla Altis, Innova and Fortuner in India.   "We intend to restore the normal operations as soon as possible," Toyota Kirloskar Managing Director Hiroshi Nakagawa said, but did not provide any timeline.   Toyota Motor, an 89-percent equity partner in the Indian JV, said in Tokyo that its output would start to pick up in July in Japan and around August overseas, with a complete recovery not until November or December. [Source:economicti...

Volkswagen Group India  achieved impressive sales growth of 256.7% by delivering 28,072 cars from January to March 2011 as compared to 7,871 cars during the same time period last year. “It has been a successful quarter where all three brands of Volkswagen Group India - Audi, Skoda and Volkswagen have seen great surge in their sales numbers. The constant gain in the market share reflects the fact that our customers appreciate our products. This reinforces our commitment to produce high quality products.” said Dr. John Chacko, Volkswagen Group Chief Representative India and President & Managing Director, Volkswagen India Private Limited. All three brands of the Group - Audi, Skoda and Volkswagen performed extremely well. Audi delivered a total of 1,611 cars this quarter as compared to 778 cars with a sales growth of 107.1% during the same time period last year. With the launches of the Audi A8 and the Audi R8 Spyder, Audi has surpassed the half yea...

Nissan Motor India Pvt. Ltd . (NMIPL) today announced the opening of its two new dealerships in the cities of Nagpur and Kolkata respectively. In an endeavour to achieve maximum customer outreach, this marks the entry of the first dealerships of the global carmaker in Vidarbha and West Bengal regions respectively. The opening of Navnit Nissan dealership in Nagpur and Chandrani Nissan dealership in Kolkata respectively marks Nissan’s dealership expansion strategy to reach commercial coverage in more than 78% of the national territory. Currently 14 states of the country have Nissan dealerships. Commenting on the new dealership openings, Kiminobu Tokuyama, M.D. & CEO, Nissan Motor India said, “We are delighted to bring Nissan to the customers in Nagpur & Kolkata. We are aware this is a very important phase of our journey and we stand by our commitment to provide Indian customers with a full range of products and services.” Says Mr. Manoj Kumar, Vice President – Operations, Hov...

Tata Motors is "at a very high stage" in finalising a production site for its small car Nano at an overseas location, which could be either in Latin America, South East Asia or Africa.  A senior Tata group official said that the automobile major was exploring various options at different places and looking at uninterrupted supply chain for the components.   "The work is at a very high stage," Tata Industries Managing Director Kishor A Chaukar told PTI when asked about a time-line to produce Nano in any of the overseas locations.   Tata Industries is one of the investment arms of the Tata Group.   He said Tata Motors is looking at various regions such as Latin America, South East Asia and Africa. "They are looking at any of these possibilities."   While declining to specify details, Chaukar said: "They (Tata Motors) are looking at the best options in terms of country locations or a geographic location."   Apart from considering land building faci...