Indian Car News

With the government playing Santa and reducing the central value-added tax rate by 4%, sales of small cars have risen smartly, giving beleaguered automakers just the Christmas gift they needed. In just over a week since the rate cut, rebates by car companies have resulted in more customers walking into showrooms, enough for a 20-25% increase in sales this December over last month, top auto financiers said. Inventories with dealers, too, are down from 45-50 days in November to around 30 days now. Ashok Khanna, executive vice-president and head of the auto loans unit of HDFC, said the discounts resulting from the lower tax rate have improved buyer interest, particularly in the past five days. But it is only the small-car segment, accounting for nearly three-fourths of sales, which appears to be benefiting, said Sumit Bali, CEO of Kotak Mahindra Prime, the vehicle financing unit of Kotak Mahindra Bank. The country’s top two carmakers, Maruti Suzuki and Hyundai, which get bulk of their rev...

Japanese car maker Toyota Motor Corporation Tuesday said the compact car that it plans to roll out in India in 2010 will be its own and not from the stable of Daihatsu Motor Co. "No. This (the small car) is very much Toyota's...," Toyota Kirloskar Motor (TKM) Managing Director Hiroshi Nakagawa said. He denied reports that the small car was proposed to be launched in association with Daihatsu, in which Toyota holds 51 per cent stake. Toyota Kirloskar Motor - a joint venture with the Kirloskar Group - is the Indian arm of Toyota Motor Corporation. Nakagawa said the compact car project is on track and that TKM plans to produce 100,000 units in the first phase, after which it may be doubled. TKM had announced an investment of nearly Rs 1,400 crore for its second unit at Bidadi near here, for which a foundation stone was laid in July this year. Asked if the proposed car would carry a price tag of around $5,000, Nakagawa said, "That's a tough question for me". ...

Tata Motors, which has been awash with Nano-related queries from across global markets, is mulling the licensing route for mass manufacturing the Nano overseas. The company has received enquiries from undisclosed car makers in the US, Latin America, Europe and South-East Asia for manufacturing and marketing Nano in these countries. Tata Motors circles indicated that the company might consider issuing licences to a particular car maker in offshore markets, who would manufacture the Nano there. Technology-transfer and associated manufacturing expertise issues would be shared by Tata Motors. Tata Motors vendors would also supply auto components to licenced foreign manufacturers. Sources said: “In lieu of the Nano licence, Tata Motors will get a fee. Existing auto-component makers of Nano will also benefit in the process.” The international manufacturing strategy is slated to crystallise once the Nano is physically available in India. When contacted, Tata Motors head (corporate communicati...

American automobile manufacturer Chrysler has plans to equip its cars with a system that will enable people to surf the Internet while driving. The UConnect Web system is what the company says can bring wireless Internet access to cars' dashboards. Frank Klegon, the company's vice-president, says that they wants to gain a reputation for high-tech cars. "In today's market, Chrysler's mission is to bring innovation to market more quickly," Wired News quoted Klegon as saying. Officials at the company have revealed that UConnect Web uses cellular and WiFi technology to provide "instant access" to the internet. According to them, anyone in the car will be able to check e-mail, download music, play games and even upload photos from an SD card directly to Flickr. They claim that all wireless devices and " major gaming systems" will work with UConnect. The company says that the new system will be competitive with laptop wireless cards, and that cus...

Lighter, faster and more powerful - this is Lamborghini’s facelifted Gallardo, the LP560-4. It takes its name from the 560PS (552bhp) power output of the new 5.2-litre V10, up by 40bhp. The engine, developed with Audi, is new and uses the VW Group’s FSI direct injection, which Lamborghini is calling Inienzione Stratificata. Torque is up by 3kgm to 54.2kgm. The extra shove fractionally improves the Gallardo’s 0-100kph time — now 3.7sec and a match for Ferrari’s 430 Scuderia — but it should also improve midrange performance with more torque available at 4000rpm than the old car had at its peak output. And it should make an even better noise with a new exhaust system. On the outside there’s a new Reventon-style front bumper and an entirely new rear designed to make the back end look more horizontal. Some of the changes are aimed at cutting costs. The engine has plastic covers, and the accerartor pedal is now plastic with a clip-on alloy cover; it was solid aluminium.

General Motors India is gearing up to launch the Captiva SUV with an automatic transmission. The Captiva has been well received, and presently is the only diesel soft-roader in its class. Last month, the Captiva managed to sell nearly 200 units, second only to the Honda CR-V. However, the lack of an automatic transmission option has turned away some customers, and it is these potential buyers that GM is targetting. The car was initially launched only with manual transmission and front-wheel drive, but the automatic version comes with four-wheel drive as standard. The auto ’box has five forward ratios, and is geared to provide similar levels of performance and fuel economy. One such car is currently undergoing homologation in India. An important factor will be cost; the auto ’box and the four-wheel- drive system will add to the cost of the car, and the company will be keeping a keen eye on this. As yet though there is no clear indication of when the car is expected in the market.

Hyundai will launch a more powerful version of the i10 this month with a bigger 1.2-litre engine. This new motor called ‘Kappa’ is the latest powertrain from Hyundai not just in India but worldwide and boasts the latest engine technology from the Korean Giant. The Kappa is an all-aluminium 1.2- litre motor with double overhead camshafts and four valves per cylinder and develops an impressive 77bhp, which will make the i10 Kappa the most powerful hatchback in its class. The Kappa will supplement the existing 1.1-litre ‘Epsilon’ motor in the i10. The plan is to have five variants of the i10, the base D-lite and Era will continue to be sold with the Epsilon while the Magna variant will get the Kappa. Two additional variants above the Magna will also be introduced. The Asta will get some of the features that are optional in the current Magna (sunroof etc) as standard while the range-topping Sport will get jazzed-up interiors and a body kit. Hyundai plans to price the Kappa aggressively and...