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The economic slowdown has made companies re-think their strategies keeping long term targets in mind. An organization such as Hyundai, the country's largest exporter of passenger cars, has decided to export vehicle kits in the completely knocked down (CKD) condition. This usually means that the final assembly of the car will take place in the country it is exported to either via a local vendor or their own facility (most organisations preferring the former) and then the distribution chain will be carried on. By doing so, high import taxes are avoided and may also be liable for tax preferences since they are providing local employment. This is a common practice among most European nations since they would like to encourage the sale of home grown produce and also to balance out local employment but then the importers find a way by bringing in their products as completely or semi knocked down units. This does help in reducing costs but also requires an initial investment but does benefit the exporter in the long run. Thus, Hyundai is investing Rs 200 crore for the creation of a new press shop at Sriperumbudur. The exports in the form of kits could start by July next year. Last year, Hyundai exported 1.27 lakh cars, and 30,000 kits would be the initial target.

Hyundai has set itself a production and sales target of 5.3 lakh vehicles this year which would increase to 6 lakh the following year. Currently, Hyundai can produce 6 lakh engines in a year which has to increase by next year as there is a demand for the engines from Kia Motors, its sister concern. This would be possible as its second unit will join the first unit for a third shift from October 1st this year. Hyundai plans to export 25,000 engines to Korea this year which will increase to 70.000 next year. They would be relying completely on their exports to achieve the set targets as the domestic market seems to have hit a roadblock. The initiation of the kits for exports as come at the ideal time as the expected launch of the i20 and its successive exports could also play a huge part in the decision. Hyundai also said that they would launch the LPG fitted Santro in the next month and the LPG Accent in October. HMIL is currently sourcing the CNG and LPG kits from two Korean based companies – CEV and Motonic. These companies have been asked to set up manufacturing facilities in Chennai with an initial number of 2000 a month.

The new Toyota Altis is getting more than enough help from its not so subtle marketing campaigns that has been doing the rounds. Even the official website seems to have a countdown ticking down to the 5th September launch date. It is now all but clear that I would be the replacement to the Corolla. It would be premature to say that it would start a new lineage and the Corolla name itself will be removed or for many it’s the Corolla Altis. I would not blame them as you would not let go of a badge that is the highest selling in the world and now you would rubbish it all when it is nearing its 10th avatar? The Corolla is a proven performer all over the world and even in India it has proved its mettle. Toyota is known well over for its increasing customer base because of its fine products that appeal to the regular buyer, a family man that is looking for attention to detail which the Japanese giant is all about. The attractive styling coupled with great value for money is always the strongest combination while targeting the masses.

The Altis has retained the Corolla bloodline but also has certain changes to make it look distinctive and new. The headlights are now separated from the grille with an extension of lines from the hood and the headlamps seem to reaching out towards the side mirrors. There is not much of a change in the rear. It is 10mm longer, 60mm wider and 20mm lower than the present model and even though these numbers are small they give the engineers and designers just a little more room to play. Also the cabin space will also improve. The lower center of gravity and the wider track, even though the wheelbase remains the same will improve the handling dynamics considerably. A four spoked steering wheel, similar to the Camry is expected along with other changes in terms of interior that it would borrow from the Camry. Another important feature is that the floor for the rear passengers is almost flat giving a more comfortable foot position for the passenger in the middle seat. The wheel arch intrusions into the boot will be minimized because of the use of a Torsion beam for the rear suspension. Toyota has worked on a new 6 speed manual transmission with a new clutch plate structure to reduce noise vibration and harshness (NVH). The door handles seemed to have been borrowed from the Vios. The Altis launched in Thailand had the old engine when it was launched whereas the Japanese and American versions have the new Dual VVT-I engines. The 1.6L 3ZZ-FE and 1.8L 1ZZ-FE, could be ones making it to India even though everyone is hoping for the Dual VVT-I engines.

With 30 million Corollas produced till date according to the company the 10th generation of the best selling car in the world is being awaited with much anticipation here. If not for its strong points it will ride heavily on its reputation built on great build quality and value for money that includes low maintenance costs. Be ready with your payment options on the 5th of September and you could be part of a Corolla culture that is 40 years old and still going strong.

The West Bengal Chief Minister tried to instill confidence to a group of industry leaders that the Nano will stick to its October schedule and everything will resolve soon as he is going to convince the opposition on his decision and arrive at a consensus. Earlier the opposition had demanded the returning of 400 acres of land for the ancillary units which was ruled out, as returning the land would mean that the project would be abandoned. He also explained that as the land is for public purpose, the law does not allow the land to be returned to its original owners. There are certain special schemes that are going to be put in place for those farmers who have become unemployed. He also assured the gathering that the Singur drama was a one off issue and the general economic climate in the state is good. Apart from the Singur plant being a key factor in revitalising the industrial setting in West Bengal, the Nano in itself is going to put India firmly on the world map. Such bottlenecks are part and parcel of the development stage which would subside and be diluted in the long term memory of the Indian public. With the bigger picture in perspective, strides have to be taken forward.
The Nano plant has seen continued protests on the land acquisition row from the opposition and the farmers with fresh protests hampering work. It is now all but certain the launch of the Nano will be delayed. Production was supposed to commence on the Nano. Ratan Tata has indicated that other avenues are on the cards. But this could just as well be a threat to the current government since they are hell bent on cleaning up the mess outside the production facility. The Rs 1500 crore investment will be on the back of Ratan Tata’s mind even though he claims that they would not hesitate to look for avenues elsewhere.
Offers have been pouring in from nearby states such as Uttarakhand, Maharashtra, Orissa and even Punjab and this is just to name a few. But then again to get the logistics in order along with all the processes and a changed production model will completely put the Nano out of gear, which is apart from the cost implications that Tata will have to incur in case of a change in location. They have set a two week deadline after which they will come to a conclusion. In other words, the West Bengal government has 14 days to resolve the issue which now has gained even more momentum with the involvement of Medha Patkar into the scenario. With 500 Nanos ready from the Pantnagar and Pune plants, the official release will not be delayed. What will be affected though is the delivery dates. Ratan Tata has dismissed the option of operating the plant under police protection which clearly says that the problem has to resolved or Singur will return to its agricultural background.

With the arrival of the Yamaha R15, and the response it is garnering the motorcycle fanatics can expect many more such sporty offerings in the future and one of them expected in the coming months would be the Yamaha FZ-150 that was also showcased at the Auto Expo earlier this year. There has been a nice change towards the sport and performance bike segment as the young brigade begin to enjoy the thrills offered by two wheeled performance machines.
The FZ, will house the same engine that is on the R15. The only difference would be in the fact that this one will be air cooled. This also could mean that it would be cheaper than the liquid cooled R15. Typical to Yamaha, just as the 80% of the design cues of the of the R15 have been taken from the R1, the FZ150 has borrowed its frame work from its elder cousin, the FZ1000. The FZ series of street bikes have been received well over because of their agility and stunning road presence. As said earlier they do share the same engines, but for the street series, it has been manipulated and tuned to give a better low end and mid range grunt therefore compromising a little bit on the top speed. Finally, Yamaha is getting back to what the Indian consumers know them for – performance and unmatched acceleration. They are getting into their stride after overcoming the nightmare that lasted for the last 2-3 years where they were not even competing. With high credentials everyone knew that they would bounce back. Even during the years while they were down in the dumps and each and every bike they introduced bombed, the large collection of ardent Yamaha aficionados always knew that they would just get everything together and bring out the performance bikes rather than 4 stroke, fuel efficient bikes with a saree guard. Performance is in the soul of Yamaha and that can never be eliminated. It is the essence of all Yamaha bikes. Ask anyone who has stretched the RX100 or the RD350 on an open road.
The curved tank and the muscular forks make the FZ150 look like an athlete, waiting on the starting line for the gun to fire. It’s at the Ready, Set position ala Usain Bolt. Everything looks compact and extensions of the body rather than being fitted on the frame. The wide tyres add to the stance. This proven performer is expected this Diwali and so will overshadow all the fire crackers on display and steal the show. The price would not exceed 75,000 INR.

The quiet Hoogly district in West Bengal comprises mainly of farmers who have been in the cultivation business for generations. They have owned land, cultivated on them and sold the produce, overcame droughts, and changing governments with the same unfulfilled promises and sustained their double digit family members. They do not know any other way of life. Enter the Tata Nano, the cheapest car on offer for just 1 lakh INR. The manufacture of the cheapest car requires 1000 crore for production to commence, which includes the cost of land. Tata is a reputed organization that can raise funds for their dream project in a jiffy but then what about the space? The Tatas received six sites as proposals for this plant and chose Singur, after a lot of satellite study, its adequate elevation, good water supply and its close proximity to Kolkata.
The 935 acre production site and the adjacent 290 acre vendor plot has seen a lot of hurdles since its inception with the CPM creating havoc in June and disrupting work. Then there was the problem of water logging. Of course you would expect so since it is agricultural land. Those farmers who owned single crop land were paid Rs.8.4 lakhs per acre and Rs.12 lakhs for double crop land. But then there are issues cropping up on whether the acquisition was with the consent of all the farmers, with forged and forced signatories.
Singur is in the Ganga delta. Need we say more? This land is blessed with perfect agricultural properties. Is it really that difficult to find land less favorable for agriculture, thus suited for industry? Adjoining Orissa, Jharkhand and other states do have such sites. But then the Tatas themselves chose this land. The sheer size of the project scared the other states away. Such land would mean the removal of agricultural or forest land. Maruti requires 300 acres to produce a little more than 3 lakh cars a year but only 1 lakh Nanos will be built from a 900+ acre plot. Clearly I am not aware of the manufacturing process but this does seem odd. We are all for industrial growth and are proud to share the same nationality with the Tatas and their contribution to our country and the launch of the Nano would be on the same list as Abhinav Bindra’s gold at the Olympics, but then we are not here to supplement agricultural land with industrial sites, especially if it is rich and fertile land, the scarcity of which is known to all. The industrial township of Jamshedpur is beautifully managed and self sufficient and the Tatas deserve all the credit. The township apart from creating employment, has managed to form a fully functional society. Do we expect the same in Singur? This is something we need to wait and watch. The dynamic leaders of Bengal need to find a way to supplement the farmers for their loss or give them a wider understanding of the outcome. They need to be exposed to other areas of wealth creation.
The homegrown Nano is expected to shake up the automotive industry (or not) and also the lifestyle (or not) of the middle class man. There has to be fine balance maintained with the expansion of the industrial sector and the neglected agricultural community as they seem to be at logger heads with the advent of the SEZs here. The Nano should be in the aspirations of the wider Indian community which will include our friends that till the fields. In a few years, we will have Wi-Fi enabled townships and cities, whereas certain rural sectors have never come across the concept of electricity for more than 5 hours at a time. Only if the developments move hand in hand will we have a better India or else the industrial revenue would go into importing food. Coming back to the original topic, if Tata decides to move out of Singur the repercussions would be hard to imagine. The inhabitants of Singur, the Nano project and the people waiting for it, all of them will be affected. More importantly it will highlight once again the incompetence of our so called leaders that are in fact the biggest obstacles towards India’s growth.

The second generation Tata Indica, called the Indica Vista was launched today. The design cues remain the same as showcased at the Auto Expo in Delhi and will be slightly bigger than its predecessor.The new Indica Vista has extended petal shaped headlights and customary tall tail lights to complement the slightly wider look. It was about time the Indica, launched in 1998, received a face lift since the most important segment in the Indian segment has seen a gradual change with the onset of the Swift and the Hyundai i10. The Indica Vista will be hoping to achieve the success and customer base as the previous model.
The engines on offer are the ones manufactured in association with Fiat from the Ranjangaon plant.The 1.3L, Quadrajet CRDi Diesel will produce 75bhp whereas the 1.2L CVCP Safire MPFi petrol version will churn out 65bhp. The Indica Vista is 325mm longer and 335mm wider, increasing the wheelbase by 70mm. This would certainly add to the overall dynamics and appeal of the car.Another notable addition is the instrumentation cluster now in the center of the dashboard, a common practice among the European compact cars, giving a slight indication of the growth of Tata Motors and their international aspirations. Prices commence from 3.49 lakhs to 4.88 lakhs. It will come with 24 month warranty and an option of 7 colours to choose from. The first generation Indica will continue to be manufactured, thereby maintaining a strong presence in the compact car segment. With Toyota bringing in an additional 1,400 crore to source in special equipment for the manufacture of its small car, the compact car segment will now leave the Indian consumers spoilt for choice. Many analysts consider the Indian market to relatively more stable than the others in the BRIC (Brazil, Russia, India and China) economies. Further testing will reveal more on this new Tata offering with obvious comparisons being made to its strong competitors, mainly the Hyundai i10.

The 2009 Frankfurt Motor Show will have the new E class with a new look. The dual oval, senior and junior headlamps customary to the E class since 1996 will now have an edgier and less of a geometric pattern. If you would have to split the headlamps of the S-class you would more or less see the E class. The oval headlamps had completed their cycle of evolution and there was nothing much to do there, only if they would have to play around with the grille which Mercedes never seems to mess with. Also, the most honest and common answer you would receive from the darker sex on the most evoking feature on a woman would be the eyes. In any case, it seems to be working for Mercedes even though it completely throws common genetics and evolution of the male psyche completely out of gear.

Now getting to the character and the essence of the new E class, it will be powered by a 3.5L V6 which would most probably be borrowed from the CLS350. There are also talks of offering V8s with 4.5L and 5.5L. The common feature among all of them will be the use of direct injection. The contours and the lines would remain the same. No one is complaining as the E-class has always been a striking sedan. The tail lamps could be bolstered a bit but not as much as the front. The E63 will in all possibility have its 6.3L V8. The range of diesels will continue but of course with the BlueTec technology and there also talks of a hybrid version of the same by 2010 which has become an undecided norm by all the manufacturers. As through the previous decade it would be pitted against the Audi A6 and the BMW 5 series. Some things will never change but then that’s what we used to say about the headlamps of the E-class and now look what we have made Mercedes do!

Anything that can substitute gasoline is being termed as an alternative fuel option. There are hydrogen fuel cells and hybrids that incorporate two energy sources to drive the motor. Everyone wants to cash in on the opportunity before there is a frantic rush for fuel to power their motors. One thing for sure that is working well for the manufacturers is that there is not even a whisper about people giving up on their engines. It has become so much a part of one’s lifestyle. As of now there is not much of a crisis but it does seem to be looming large around us. The consumption of a litre of fuel is decades quicker than its formation under the ground we walk on. Fossil fuels have served us well and have given us a so many memories. There would be a day when we will be enveloped in nostalgia and remember the fossil fuels. All good things must come to an end and in this case must run out. We should also take a moment to thank the dinosaurs and other Jurassic life for gifting us such a resource and also in the same breath think about the guzzling Hummers, Lincolns and Chevys. Also take a moment to think about the motorcades where the fuel sapping Lincolns and other diplomat carriers would crawl through streets in second gear that are filled with joyful supporters of democracy. Anyways in all seriousness, all these manufacturers are spending the revenue derived from their golden years on replacing gasoline. GM has partnered with low cost ethanol maker Coskata. After countless hours of research this company claim to produce ethanol for under $1 per gallon from any carbon containing natural source and also reduces greenhouse emissions by 84% compared to gasoline. The patented technology can convert carbon sources to yield carbon monoxide and hydrogen and then this will be converted to ethanol by their special ‘microorganisms’ with patented reactors. These microorganisms are the real superheroes that can save the world, not Al Gore or Superman.

The automotive industry and the oil industry combine to form a $3 trillion market. This is just too big to wither away. Ethanol makes up our alcoholic beverages and everyone knows how potent it is and speaking about addiction, there is a rising concern on the addiction to oil. Everyone thought that electricity would supplement the fossil fuels but not many could get it out of their system. So we are going to stick to oil and again in the same breath, biodiesel too has caught the attention of many because of its effectiveness and easy production. Biodiesel from Jatropha has been growing at a steady rate in India and Malaysia. Coskata produces ethanol from solid waste, agricultural and forest residue and other rich carbon sources capable of fermentation. Commercial viability of these products is still under discussion but is going well with the monetary help of the conglomerates. British Petroleum has invested close to $90 million in Verenium, another cellulosic ethanol manufacturing company. When such an oil giant is moving towards the platform of alternative fuels it does question the seriousness of the consumers and their understanding of the gravity of the situation.

India has considerably subsidised the fuel costs, but even then the pinch is felt only by the transportation industry. The average consumer complains but still does shell out that extra rupee or two rather than looking at a long term solution. Aviation industry has been hard hit and so has diesel burners in the mass transport world. Ethanol in every sense is looking towards the common consumers whereas biodiesel will focus heavily on the trucks and trains. Acute power shortage and long hours of darkness had forced many parts of the country to switch on their diesel generators leading to a shortage of the fuel. Such situations must be avoided and here is where alternative fuels can play a major role. Oil, fossil or otherwise will always remain a precious commodity. The focus should shift to sustenance as nothing lasts forever but now we have the resources for a replacement as and when the need arises. My cry out is why not try it out, get used to it and redeem its flaws.