Domestic car sales in India rose 21 percent from a year earlier in November. India is no China yet. But as its per capita GDP has crossed the magical $1000, car sales are waking up with a vengeance. This is one rule I learned in this business, and it never fails. China has more than three times the per capita GDP of India, and you know what kind of a run that caused. Read More >
Bloomberg reports that the world’s cheapest car, the Tata Nano has seen its sales drop from the point where it had to hold a lottery to choose buyers for its first 100k units to last month’s all-time low of only 509 units sold. Tata has raised the price twice this year, bumping the MSRP by 4 percent in July and then adding another $200 to the price in October. This, in addition to the Nano’s fire-related issues and the inability of Indian consumers to secure financing for the microcar is being blamed for the sales drop. Says Mahantesh Sabarad, an analyst with Fortune Equity Brokers (India) Ltd:
The product has had a difficult time in terms of its perception ever since those fire incidents came in. A lot of people bought the car in the initial sales period for its novelty factor and didn’t go for loans
Tata’s response: hire more sales staff and work with banks to secure loans for Nano customers. After all, the Indian automaker has 250k annual production capacity assigned to the Nano, so sales had better start picking up soon.
When Volkswagen bought 20 percent (well, 19.9) of Suzuki, everybody assumed it would be one of Volkswagen’s favorite “win-win-win” deals: Volkswagen gets better access to India, where Suzuki owns half the market. Suzuki gets better access to China, where Volkswagen is the largest passenger car brand. Both will work happily together to rule the world by 2018. Now Suzuki Chairman Osamu Suzuki says at least the Indian part is not true. Read More >
The drawn-out drama of who would get what was left of the busted SAIC-Ssangyong deal has come to an – at least preliminary- end. Oneindia reports that India’s Mahindra & Mahindra bought the pieces of Korean Ssangyong. TTAC readers are not surprised. Read More >
Some say the future of the car business is in China… and for certain employees of Jaguar Land Rover, the maxim seems to apply awfully literally. The Telegraph reports:
Des Thurlby, human resources (HR) director at [JLR], said he had held “pointed” discussions with up to five of the company’s best employees urging them to consider moving “out of leafy Warwickshire” to China to help the company capitalise on emerging markets. Those who refused had less chance of being shortlisted for a future top job at the company…
Mr Thurlby said: “We’re getting to the point where we’re having some quite pointed conversations with people, where we’re saying, ‘listen matey, if you want to go to the top you’re going to have to go to China, Russia or the US. We’re an international business, we’re 70pc overseas. It’s critical you move out of leafy Warwickshire.'”
Oh dear… this is what happens when you stop designing your interiors like a 19th Century club room, isn’t it?
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. Read More >
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. Read More >
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.
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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. Read More >
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. Read More >
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? Read More >
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. Read More >
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 road to the US market has been a rough one for Mahindra, with lawsuits, delays of EPA certification and more holding up a launch that should have taken place over a year ago. And after the Indian automaker rejected an order this summer from its US distributor, Global Vehicles, we basically gave up hope on seeing the diesel-powered, 4X4 pickups and SUVs in the land of the free. Luckily, Mahindras are used to rough roads, and if an email that just landed in my inbox is anything to go on (please note the Wild Ass Rumor heading on this post), the venture may just be pulling through. Or perhaps it’s just pulling our leg. Hit the jump for a letter from Global Vehicles president John Perez…
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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.”
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