Archive for the 'Automobiles' Category

Suzuki plans global purchase office here

Suzuki plans global purchase office here

AFTER decades-long presence in India through Maruti Udyog, Suzuki Motor Corporation is setting up a worldwide purchase office in India. It thus joins a large and growing list of multinational corporations setting up such purchase offices, variously called international purchase offices {IPOs) or worldwide purchasing (WWP) offices in India targeting the multi-billion dollar opportunity of out-sourced production.

MUL held a meeting with some of its Indian vendors in Kuala Lumpur early May, for these manufacturers to be part of Suzuki’s global sourcing programme. “Suzuki has just begun global sourcing and some Indian vendors could be part of it,” MUL managing director Jagdish Khattar had said soon after the Kuala Lumpur meeting. The Manesar plant for the manufacture of diesel engines, set to begin from July, is mainly for Suzuki’s European line-up, since it lacked a diesel offering in that market.

Analysts feel Indian pricing will initially allow Suzuki to source between 10-15% of its global car model’s components from Indian manufacturers, rising gradually to asmuchas35%.

US-based engine manufacturer Cummins has an IPO in Pune and is increasing its sourcing. It plans to source engine components worth $600 million this year, a threefold jump from the $200 million worth it sourced. Luxury car maker DaimlerChrysIer India (DCIL) sourcing has been growing at a compounded annual growth rate of 22%. “For the past two years, we have been averaging a 22% growth, annually. It is a very strong programme and we are using the India advantage,” DCIL director, finance and corporate, Suhas Kadlaskar said.

BMW will set up its IPO in Delhi, Seco Tools India, a subsidiary of Swedish metal cutting tools manufacturer Seco Tools, has been re-locating global product lines consistently over the past few years. Now, it has located its Asia-Pacific global sourcing office in Pune, to initially “source those products which are under cost pressure in Europe,” Seco Too is India MD Thierry Cros said. This is the commodity sourcing and it is soon to be followed by a global sourcing centre for Information Technology. This too, will be located in Pune, Mr Cros said.

Aero Engine Company Pratt and Whitney has also been scouting for suppliers. Engine and drive train components manufacturer Borg Warner is also reported to be sourcing from India, moving production to India from its plant in Monaco. Honeywell Turbochargers India expects to annually source $ 100 million worth of components for its global operations from India over the next few years, Honeywell Turbochargers MD Sanjay Sondhi said. This will primarily be mechanical and machined parts.

Tata Motors to focus on alternative fuels

Tata Motors to focus on alternative fuels

NEW DELHI: Tata Sons chairman Ratan Tata, who chaired the Steering Committee of National Hydrogen Energy Board, said on Monday that Tata Motors is partnering in a big way to develop alternative fuels in the country. He said that even though the technology remained elusive and posed problems in generating, storing and delivery but the “challenges are not insurmountable”. Mr. Tata said that India has the strength, both technical and scientific to play a role among the developed countries. “We use vehicles run on bio-fuel for our employees in our campuses. We are also developing vehicles which are flexi-fuel,” he said, adding in future all petrol vehicles from Tata Motors could also have the capability to run on ethanol blended petrol.

Hyundai domestic sales up 3% at 16,643 units in May

Hyundai domestic sales up 3% at 16,643 units in May

NEW DELHI: Hyundai Motor India Ltd on Monday reported a 3.35% increase in domestic car sales at 16,643 units in May as against 16,102 units in the same month last year. Cumulative sales during the month rose 3% to 26,648 units, including 10,005 units of exports, as against 25,883 units in May last year, a company release said. In the A2 segment (Santro and Getz), the company sold 2 3,154 units, while in A3 segment (Accent and Verna) it clocked 3,241 units. The A4 segment (Elantra) registered sales of 111 units, and the A5 (Sonata Embera) sold 116 units while SUV accounted for 26 units during May, it said. HMIL vice-president Arvind Saxena said while the market was slow, the company has managed to increase sales from last year and was confident it would continue to grow.

Hero Honda’s Pleasure trip to have new model

Hero Honda’s Pleasure trip to have new model

TWO-wheeler major Hero Honda is aiming for a smoother ride in the growing scooterette market. The company is going to launch the next-generation model of its scooterette brand Pleasure, with a new marketing campaign aimed at larger market share in tier-two cities. Hero Honda has roped in actress Priyanka Chopra as its mew brand endorser. Besides, the automaker would focus on driving schools for women and setting up more women-centric dealerships.

Says Hero Honda vice-president (marketing & sales) Anil Dua, “Since we launched the scooter last year, we haven’t played around much with the engine, but we have given it a face-lift and plan to launch it soon.” The company sold about 100,000 units of Pleasure in the market in the last one year. Hero Honda currently has 10% market share in the overall scooter segment, primarily contributed by its lone model Pleasure. The company hopes to strengthen its marketshare further with the new generation Pleasure. Even though the overall scooter market has been flat, the female scooter segment has been growing and has added about 1 million scooters in just 12 months.

As part of its marketing initiatives, the company has not only established driving schools in 10 cities but also set up women-centric dealerships and service stations. “Driving schools play a pivotal role in encouraging a woman to hop on a two-wheeler and thus these schools are crucial to our marketing strategy,” says Mr. Dua.

The auto maker is also keen on increasing its women-centric dealerships to more cities. The latest market campaign is also targeted at gaining volumes in the smaller towns and the company plans to extend its dealership to these cities.

Unlike most auto companies, the company is actively using advertising in cinema theatres to woo ladies to step on the gas with their two-wheelers. “Since we are currently available in 21 cities and wanted to reach out to the women in these cities, we have launched our marketing campaign in multiplexes and are using cinema advertising to gain volumes,” added Mr. Dua.

Gearless scooters have given some of the necessary boost to the otherwise flat scooter market. While TVS has already entered the female scooter segment with the Scooty Pep (endorsed by another Bollywood actress Priety Zinta), Bajaj has announced plans to get into gearless scooters targeted at women.

M&M launches Mahindra Pik-Up in Australia

M&M launches Mahindra Pik-Up in Australia

NEW DELHI: Mahindra and Mahindra on Wednesday launched its utility vehicle Mahindra Pik-Up in Australia. The 2.5-litre diesel engine-powered Mahindra Pik-Up has been launched in partnership with Sydney-based (TMI) Pacific, M&M said in a statement. TMI Pacific is an arm of Tynan Motor Group, which is associated with auto giants including Mercedes-Benz, Mitshubishi, Suzuki Honda, Chrysler, Jeep, Dodge, Hyundai, Subaru and Kia. “The Australia launch is one more milestone as it marks Mahindra Pik-Up’s entry into another continent,” M&M president, automotive sector, Pawan Goenka said in a statement.

Fulfilling social responsibilities

Fulfilling social responsibilities

Hero Cycle’s story began when India was struggling to face a new world. Since then India’s economic growth has been remarkable. And Hero Cycles has contributed in its own way. Today, Hero Cycles has grown to become the world’s largest bicycle maker. From a small company in 1956 at Ludhiana which started manufacturing 25 cycles a day, the Hero Cycles has become a Rs.1,000 crore conglomerate, producing 18,000 cycles a day. There are many reasons that have contributed to this spectacle, but the most important is the will and determination of its founders – The Munjal Brothers – under the visionary guidance of O.P. Munjal. In all these years Hero Cycles has managed to remain self-reliant by manufacturing most of the bicycle components and machinery under its own roof or in its group companies. Though the organization has grown commercially, it does not forget its obligations to the society. The group has been contributing to the general well-being of the people and the environment It has always been actively involved in social activities by providing Medicare facilities for the under privileged. It has hospitals, Heart Research Foundation and mobile medical vans. The Hero Group also runs schools along with planting trees, maintaining parks and public facilities for better living environment of the city.

Coca-Cola may source orange pulp from India

Coca-Cola may source orange pulp from India

LUDHIANA: Coca-Cola India on Wednesday said it is exploring the option of sourcing orange pulp for its juice drink, Minute Maid Pulpy Orange, from the country itself. “We are quite keen on sourcing the orange pulp and orange concentrate from India itself for our domestic market,” Coca-Cola India vice-president (franchise operations) Vikas Chawla told reporters here. At present, the company is importing orange pulp and orange juice concentrate from Florida and Brazil. It sources mango for Maaza from India.

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