Maruti, Hyundai, Honda, Volkswagen, Audi see surge in demand for automatic transmission cars  
NEW DELHI: The third pedal is slowly disappearing from the Indian market. Automatic cars known for effortless driving and faster acceleration are gaining traction with every sixth car sold in the Indian market coming with single shift transmission.

A majority of the customers buying premium sedans and SUVs opt for automatic transmission vehicles these days. But this trend can also be witnessed among customers of smaller cars such as Hyundai i10 and i20 and Maruti A-Star and DZire as well as Honda's flagship City sedan where around 20% of the customers are shifting away from the traditional manual gears. The shift in favour of automatic transmission is gradual but clear.

"The congested city roads and urban traffic warrant automatic cars. Rising traffic density and stop-and-go commuting on Indian roads result in stressful driving. Automatic transmission is improvising the Indian driver to tackle the fast changing driving conditions, where a clutchless single shift gear option helps in smooth drive," says Honda's senior vice president (marketing & sales) Jnaneshwar Sen.

Automatic transmission cars come with two pedals (brake and accelerator only) and a single shift gear lever unlike the six movements in manual gearboxes. It allows complete rest for the left leg and needs one shift on the gear to move the car that reduces driving effort by almost 60% over manual cars.

A clutch of carmakers in the country are slowly but steadily pushing the sales of such automatic. The ease of driving is tempting buyers to go for their pricier versions and forcing manufacturers to launch options in compact cars that form the bulk of Indian market. The rising demand is also signalling the growing propensity of Indians to buy expensive cars with top-end pricier automatic transmission, which costs 15-30% more than the manual. The response, according to leading carmaker, have doubled sale of automatic (in models where it is available) in the past few years and leaves potential higher than currently tapped.

Maruti Suzuki, which sells one out of every two cars sold in the country, had pioneered the concept in 1987 with an automatic M800 and later launched a customised automatic Zen (hatchback) for the physically challenged in 1996 and has recently introduced a special automatic variant in its affordable sedan, the new compact Dzire.

Source : Economic Times (4/27/2012)

Nissan to make India export hub  
NEW DELHI: Japanese auto major Nissan Motor wants to become the largest car exporter from India, a senior executive said.

The second largest carmaker in Japan is also planning to make India the launch pad for its entry level low-cost brand Datsun.

Nissan is the fastest growing exporter of cars from India, in a country where South Korean Hyundai Motor and Maruti Suzuki India are now the leading car exporters. Nissan exports have doubled to 1,00,909 cars in the last fiscal driven by strong demand for compact cars from Europe and Latin American markets.

Nissan began to export cars in 2010 from Chennai and currently ships 85% of its production to overseas markets. Its wholly-owned Indian subsidiary, Nissan Motor India (NMIPL), has now started shipping its sedan model Nissan Sunny after the huge success of its 'made in India' Micra hatchback, which is now sold in over 100 countries.

It exports fully-built cars such as Micra from Chennai, its strategic production hub for Africa, Europe and other Western markets. The company has now started exporting completely knocked down kits of its sedan, Sunny, to Egypt. These kits from India would be assembled by the local Nissan subsidiary abroad.

Speaking to ET, NMIPL Managing Director Takayuki Ishida said: "We have ambitious plans for India. Exports from India have been a huge success so far, and we want to increase it with new models, as trans-continental markets post stronger demand for smaller cars. We plan to increase our production to over four lakh cars, most of which would be meant for exports."

Currently, the company produces three lakh units under the Renault-Nissan global alliance joint plant in Chennai. About 85% of the production is meant to be exported to markets in Europe, Asia and Africa. It eventually aims to pip South Korean carmaker Hyundai as the largest exporter from India, which has shipped 2.37 lakh last fiscal.

"We are readying several markets to increase export of cars manufactured in India. We will also expand our product portfolio by launching several new cars. Many of these would be targeting overseas market and India could be the sole production centre in Asia," Ishida said.

Analysts say that many car companies in India have great potential to tap overseas markets. "India enjoys tremendous advantages of cost competitiveness due to cheaper labour. The added advantage of huge volumes enjoyed by Hyundai and Maruti Suzuki allow them to export more and take competitive advantage in overseas market. Likewise, Nissan also has a huge product portfolio and eventually would become a major player in exports market," said a Mumbai-based auto analyst with a brokerage firm.

Nissan is currently developing a small car of Rs 2-4 lakh to take on models such as Maruti Suzuki Alto and Hyundai Eon. Its manufacturing plant at Oragadam in Chennai would make Datsun cars for local and export markets, even as the company is considering a new factory to manufacture the new low-cost brand.

Datsun, expected to be a high-volume product targeting emerging economies, is expected to roll out by mid-2014. "We are developing the car keeping in mind the needs of emerging markets such as India, Brazil and Russia. The production base here is expected to meet the overseas demand for Nissan cars," Ishida added.

Source : Economic Times (4/26/2012)

launches dealership in Mumbai, plans to go south  
MUMBAI: Italian super sports car-maker Automobili Lamborghini today launched its second Indian dealership in Mumbai.

The first dealership was launched in New Delhi. "Lamborghini has always eyed the Indian market with a lot of interest. The past year saw the market potential and realised being in one centre alone will not be enough. Therefore we chose the financial capital as our second destination," company's President and Chief Executive Stephan Winkelmann told PTI here.

The Mumbai showroom will house the complete line-up of Lamborghini models.

"We plan to sell around 50 cars by 2015," he said. He said the company was also looking at the southern region for more dealerships. "We have identified three locations including, Chennai, Bangalore and Hyderabad. But we will first study the demand in these markets."

For Lamborghini Mumbai, the company has partnered with Auto Hanger for managing the showroom.

Source : Economic Times (4/27/2012)

Lamborghini launches dealership in Mumbai, plans to go south  
MUMBAI: Italian super sports car-maker Automobili Lamborghini today launched its second Indian dealership in Mumbai.

The first dealership was launched in New Delhi. "Lamborghini has always eyed the Indian market with a lot of interest. The past year saw the market potential and realised being in one centre alone will not be enough. Therefore we chose the financial capital as our second destination," company's President and Chief Executive Stephan Winkelmann told PTI here.

The Mumbai showroom will house the complete line-up of Lamborghini models.

"We plan to sell around 50 cars by 2015," he said. He said the company was also looking at the southern region for more dealerships. "We have identified three locations including, Chennai, Bangalore and Hyderabad. But we will first study the demand in these markets."

For Lamborghini Mumbai, the company has partnered with Auto Hanger for managing the showroom.

Source : Economic Times (4/27/2012)

Skoda Fabia Scout variant launched  
The Skoda Fabia can easily be regarded as being among the more stylish hatchback offerings in the country today. But that being said, the Fabia's basic Mk4 ( Volkswagen Group) platform has been stretched, raised and decked up over the decade of the supermini's existence (globally) to create an array of distinct models like the Fabia vRS, the Monte Carlo Special Edition and the Urban.

But a rookie 'off-road' version of the Fabia has been on the cards for a while now, and after giving the country its first real look at the Scout at the 2012 Auto Expo, the Czech car maker has now launched this semi off-road version of its well recognized hatchback at a starting price of Rs 6.79 lakh (ex showroom Delhi).

The Skoda Fabia Scout differentiates itself from the standard hatchback mainly through its substantial scratch resistant protection at the front (bumper with spoiler), rear (bumper with diffuser) and protective cladding on the sides making the vehicle's exterior body rugged enough to withstand any damage from loose gravel or rocks when pacing down poorly paved roads.

Despite a raised suspension offering better ground clearance, the Scout will only sell as a front-wheel drive model, and hence may still be quite under equipped to be considered a genuine off-roader. However it is built to comfortably take on broken roads and gravel paths that are unfortunately still in abundance in a lot of parts of our country.

Visually, Projector headlamps and a stainless steel pedal further reinforce the distinct elements that set the new Skoda Fabia Scout apart, while the small leather package will keep you conscious about the fact that this is indeed a pure-bred Skoda. Both the 1.2 litre petrol and diesel Fabia Scout models produce 75PS of power and are mated to a 5-speed manual gearbox.

Critical safety equipment on this 'ready for adventure' Fabia model now available in India include dual airbags, an integrated audio player, power windows, remote locking and tinted glass all over. With the Fiat Palio Adventure's debut to this particular segment now a thing of the past, the question that would be on everybody's mind is can Skoda's thick skinned super MINI re-attract solid buyers to this otherwise unexplored segment.

Source : Economic Times (4/26/2012)