Recall of Honda City 2007 make

In one of the largest recalls that is not so common in India, Honda has recalled over 8000 honda city cars of 2007 make. This is part of over 600,000 cars recalled worldwide for a faulty power window switch. This comes on the backdrop of world number one car seller Toyota motors recall of over 7 million cars due to accelerator peddle.

This could a short term/mid term set back for the Japanese car markers that have captured the US market and are known for their Quality and reliability.

For Indian market, this is the wrong time for the car makers to give room to have any doubts in the buyer’s mind who have plenty of options in hand.

Tata Motors posts 89% revenue growth in Q3

Tata motors, India’s top automaker announced a turnaround growth of Rs400 crore net for 3rd quarter of FY200910 compared to a loss of Rs263 crore the previous year.
The revenues stood at Rs 8980 crore. The easy loans, coupled with an array of new vehicles launched across segments have contributed to the growth. Tata has the worlds supposed to be the cheapest commercial car Nano, New indica hatchback, Manza midsize Sedan, 28 seater Tata Marcopolo bus, CV Prima rolled out to Indian market.

However the growing commodity prices and RBI’s increase of CRR by 75% basis point, hinting at increase in loan rates would be of cause to worry for the next couple of quarters.

Daimler to spice up Indian CV market

With growing confidence from the truck makers for Indian market that has shown a healthy growth in last quarter of 2009, German truck maker Daimler announced launch of its truck for India roads by 2012.

As the CV market that links directly with economy took a hit later part of 2008 with sales going in negative. However with an already anticipated over 7% GDP growth for 2010, the global CV majors including local companies lining to launch their technology for India market. Daimler through Mercedes Benz business has Actros already in the market.

With western markets still reeling under pain and recovery still not seen in near future, Asia, Latin, African markets are natural choices for the truck makers. The Indian line-up already consists, Mercedes Benz, Volvo, MAN, Mahindra through JV with Navistar, TATA with its Prima, Eicher with its on line of vehicles though controlled by Volvo.

Mahindra to Foray in to rural market for used vehicle market

Mahindra & Mahindra group’s is entering rural markets for used vehicle sales through Mahindra Firstchoice: it’s used vehicle selling business unit.

Mahindra wants to achieve sales of around 1lakh vehicles by 2015 and in all
likelihood it would achieve as Mahindra already enjoys strong foothold in rural and semi-urban market through its rugged SUVs Balero, Scorpio and the latest Xylo. This probably is one of the reason why Mahindra did exceptionally well (or did not get affected as much as other car makers) during the slowdown phase in 2008-2009. Mahindra’s strong dealership/after market network for its tractor business would complement its plan.

Indian auto industry to add over 5 million people in next 3 years – SIAM

According to Society of Indian automotive manufacturers, SIAM, India is going to add over 5 million people in next three years due to the accelerated capacity plans by the global Auto OEMs for Indian market. In recently concluded Delhi AutoExpo, the auto majors announced aggressive plans mainly focussed on small car market that includes Toyota, Honda, Nissan that had shied away from the popular hatchback segment.

The investments/employment by Auto Majors in their captive R&D, technical centres is another area that would potentially benefit from this focussed growth. Earlier Nasscom, the premier IT body had indicated growth of Engineering services outsourcing growth during this decade to reach over $40billion.

Nissan joins bandwagon by announcing 9 cars on Indian road by 2012

With flurry of aggressive announcements during Delhi AutoExpo by global auto OEMs to flood Indian roads with their cars, Nissan announced to launch as many as 9 cars across segments by 2012.

This include 5 made in India cars and remaining cars being imported.

GM to build its own Electric car motors

GM announced to build electric car motors on its own and anticipates this helps to control cost, quality and manufacturability. The GM motors are expected to debut in 2013 through their hybrid cars.

source - economic times