A study by Booz & Co, that calls itself “one of the leading management consultancies in the world,” predicts that India will be the world’s 4th largest car market by 2015 and will surpass the European Nations by 2015. I don’t doubt that India is a very important market with great growth potential. But Booz & Co must have consumed too much of its namesake. (Read More…)
Mahindra’s abortive plans to bring its rugged diesel-powered pickups to the US began back in 2007, just as gas prices were starting to run out of control. Now, after years of delays, steadily-increasing prices and general neglect of the compact pickup market have served only to whet our appetite for efficient little developing world-style trucks. Throughout the the last several years, Mahindra has battled with its US distributor, pulled out of other US efforts and generally failed to deliver… all while dangling the dream of a 30 MPG diesel pickup at hopeful enthusiasts. But, as it turns out, Mahindra’s problems don’t end with distribution: though its diesel engine was approved by the EPA, we hadn’t seen EPA confirmation for the long-held 30 MPG goal. Well, the EPA just released the window sticker for the Mahindra TR40 [via MahindraPlanet], a 4X4 four-door version of its 2.2 liter diesel pickup… and it gets nowhere close to 30 MPG.
Emboldened Tata has announced new plans to export their Nano. To markets such as Thailand, Sri Lanka and Bangladesh. And Tata will do that carefully. “We will go after these markets one after another,” Tata CEO Carl-Peter Forster told Bloomberg at an industry event in Bochum, Germany. Gone are bravado and hype. No more mentions to export the $3,000 car to Europe or god forbid the U.S.A. (Read More…)
With the second collapse of a Mahindra US-market initiative this year, some might believe that the Indian automaker has abandoned all efforts to make a good name for itself in the USA. And certainly, the implosion of its Pickup truck distribution deal with Global Vehicles looks difficult to salvage, given that both sides are locked in a legal dispute. Needless to say, when GV dropped us an email hyping a Spring 2011 launch for US-Market Mahindra products, we were more than a little skeptical. Now, however, the delay might have a legitimate explanation. According to Mahindra’s Arun Malhotra, senior vice-president for sales and customer care, speaking at the launch of the Mahindra Thar (see video above)
We are working on a lot of models. There will be a pick up on a completely new platform. We plan to bring it in the second [quarter] of 2011. It will be positioned near the top-end of our commercial vehicle pickup range, with a payload capability of above 1 tonne.
This seems to indicate that Mahindra is replacing its 1.2-ton Scorpio-based trucks (known in Australia as the “Pik Up”) with an all-new model before launching in the US. In other words, this is the first actual, legitimate reason for the endless delays to Mahindra’s US launch. Still, as the video of the Thar launch proves, Mahindra could probably make use of this (hopefully) final delay to work on their launch skills.
When we reported last month that a strange assortment of Indian and Chinese truck builders is after the Italian design house and coach builder Pininfarina, we asked what you probably thought: “What do all these truck makers want to do with a company that designed Ferraris?” Now there’s a Chinese company that can put a hot design house to better use: Beijing’s BAIC. (Read More…)
Back in May, when Mahindra took over the Indian EV city car firm REVA, we reckoned that the much-maligned (by Top Gear) G-Whiz would soon be sold from Mahindra’s dealer network, which was being developed by Global Motors. But with Mahindra’s deal to sell its diesel pickups through GV’s US dealer net in tatters, it seems that plans to sell REVAs in the US has hit a stumbling block. Syracuse, New York-based Bannon Automotive had made a $26.5m investment in local REVA production, an investment that was underscored by $7m in state grants and the promise of $52m in federal loans. Now Bannon is suing Mahindra, alleging that the Indian firm has broken its contract for US-based REVA production. Bannon reps tell syracuse.com
This material change in the representations made by Reva and Mahindra signaled the death of Bannon Automotive. Unfortunately, Mahindra/Reva did not deliver as promised. Accordingly, Bannon and its investors have been compelled to take legal action. Bannon will continue to try and follow through with the project as planned. We remain committed to bringing an affordable, U.S. manufactured electric vehicle to the American marketplace
Tata is doing everything possible to revive the shriveled sales of the Nano. Sales of the ultra-lowpriced Nano recently crashed to ultralow levels: In November, only 509 units changed hands, reluctantly. The success of the much hyped diminutive conveyance more and more looks like a flash in the pan, literally. The Nano became infamous for going up on flames. Then, Tata had to raise the ultralow price a few times. On top of that, Nano buyers were seen as bad credit risks by Indian banks and were hit with ultrahigh interest rates. Stir, simmer, and you have a recipe for disaster. Now, Tata has decided to fight back. However, the counter-offensive appears less inspired compared to the enthusiasm when the car was launched. (Read More…)
Typically when a major automotive manufacturer is preparing to spend a billion bucks on a new manufacturing facility we’ll see multiple reports on the investment. That’s why it’s strange to see only a single report, from rediff.com, on a new manufacturing plant in Punjab province that will reportedly be built by a US automotive firm. According to the report
A United States-based automobile company may set up a car manufacturing facility in Punjab with an expected investment of $1 billion, as audit and consultation firm Deloitte has made enquiries on behalf of the firm with the state government.
“There is some American company which has made enquiries and has shown interest (for setting up a manufacturing facility) here,” Punjab Industry Minister Manoranjan Kalia said on Friday.
Asked about the name of the automobile company that has evinced interest, Kalia said that the company’s name has not been disclosed.
However when contacted, a senior official of Punjab State Industries Department revealed that Deloitte has approached Punjab government on behalf of US-based automobile company to look at the possibility of setting up a car facility.
State industry secretary S S Channy said Deloitte has indicated an investment of $1 billion for putting up a car facility and the company requires 750 acres of land for manufacturing facility and 150 acres for ancillary units.
The automaker in question probably isn’t Chrysler, as Fiat is leading that firm’s international efforts. It probably isn’t GM either, as The General has subordinated its Indian campaign to its Chinese partner SAIC. That leaves Ford, which has recently targeted India with its Figo small car, as the most likely builder of this plant. But does Ford work with Deloitte? Are there any other hints as to who this American investor is? Over to you, Best Brightest…
Uh-oh. Septuagenarian Ferdinand Piech is expressing youthful impatience with octogenarian Osamo Suzuki. Volkswagen’s Chairman of the board “is reportedly irked at the slow progress of his firm’s alliance with Suzuki,” says The Nikkei [sub]. The reason? “A year after Suzuki and Volkswagen agreed on a capital and business tie-up, the track record of their partnership remains devoid of significant accomplishment.” (Read More…)
TTAC has been keeping an eye on China’s near-monopoly on the rare earth compounds required to build hybrid and electric cars for some time now, and we’ve seen the materials become an increasingly controversial issue, culminating in this year’s diplomatic tiff between China and Japan. But, as Bertel has pointed out,
That the Chinese have a stranglehold on rare earth is not because they are the only ones who are are sitting on it. It’s due to laziness and lack of money.
Now, Toyota Tsusho (a partially-owned subsidiary of Toyota Motor Company), has announced plans to stop being lazy and spend money on a rare earth materials plant in the Indian state of Orissa. Tsusho says the factory should come online in 2012, and should produce 3,000-4,000 metric tons of the magnet-hardening materials. Meanwhile, Japanese firms aren’t limiting their search for rare earth materials to India. Bloomberg notes
The shortage in rare earths has brought delegations from Canada, Mongolia and Bolivia to Japan in the past two weeks as these countries promote themselves as alternative sources to China.
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…)
Giorgetto Giugiaro sold out to the tedeschi at Volkswagen. Bertone is teaching budding Chinese car designers in brutally cold Changchun. And now, the last vestige of inspired Italian car design is on the auction block: Pininfarina . Actually, they had hired the Italian investment bank Banca Leonardo in August 2009, but they took their time. Now, the bidding is getting serious. And guess who wants to take Pininfarina home. (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…)
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