Please note:Tata Motors and Mahindra

Here's what autoblog has to say[must add this is the general perception in the western world now]

"Got an automotive brand to sell? It doesn't matter how it's performing in the marketplace, whether its products are outdated or just not popular in the present buying climate. If you've got one, an Indian automaker wants to buy it."

Part of this phenomenon is because of the over-enthusiastic Indian media too.Autoblog have also reported that it is Mahindra and Tata who have approached GM with their offer when it was the other way round.Merchant bankers on behalf of General Motors have actually contacted the Indian manufacturers.Autoblog should have been a bit more responsible before reporting facts.

Mahindra and Tata already are not showing as much interest in the hummer deal as with the landrover+jaguar one.In all probability both are going to give this deal a miss.

While it is credit that Indian manufacturers are considered good enough to turn around lemons like Hummer a little bit of PR on the part of these two brands would actually help.Remember they want to become global players.

The autoblog link:

REPORT: Tata and Mahindra interested in HUMMER

Roewe's new MPV

Update:
There seems to be a mixup as far as the manufacturer is concerned.Unlike originally reported this MPV is from Roewe and not GM.So much for the new Tavera dreams.

When it rains it pours,I had not even finished posting about the possibility of Tata and Mahindra competing with Toyota and we have another competitor in the foray and this time its GM.

The spy photographers have some documents from GM which indicate that this would be sold as a Chevrolet MPV in markets across the world and that includes the US.The R&D work for this vehicle has been done in Korea by GMDAT.

This is supposedly a global mass market MPV which can seat seven passengers built on GM's global delta platform. And that is precisely why I feel there is a possibility that this MPV could make it to the Indian markets too as a replacement for the Tavera possibly since the Tavera looks way too outdated in front of its competition.However unlike the Chevrolet BEAT this MPV may not be here in a hurry.

For more pictures of this MPV please visit the Winding road website:
Here

[source,image source:Winding road]

Also read:
Chevrolet Tavera -The difference between GM and Toyota

Car prices in India set to rise by as much as 5%

If are looking at buying a new car now may perhaps be the best time.Cars makers are all set to increase prices by as much as 5% due to rising costs and this cut is not limited to any particular manufacturer but all are likely to follow suit.

If you like the Maruti Dzire hurry up and buy the car.Maruti have made it very clear that the present prices are only introductory and may see a rise soon.GM,Toyota have hinted of a price rise in the near future,so if you want have any plans of buying your dream car hurry.

Business standard has done a calculation and here is what it could mean to you:

A 5% increase would mean* (in Rs)

Maruti Suzuki ->10,000-75,250
Hyundai ->14,100-82,400
Tata Motors ->16,850-58,300
Skoda ->35,000-90,000
Ford ->25,300-31,100
General Motors ->15,800-93,100
Fiat ->17,500-22,000
Honda ->35,800-98,000
Toyota ->36,000-1,10,000

* Prices are based on calculation of a rise of 5 per cent on models ranging from the lowest priced to the premium priced. Prices that were taken for this were all ex-showroom, Mumbai


[Source:Business Standard]

GM India - Employee motivational video

I have been very critical of the Chevrolet ads oflate but the recent one has brought back some sanity.

Chevrolet has gone backed to the theme it used during the launch of the Chevrolet brand in India and I like this new ad regarding its 5th anniversary celebrations which has been doing the rounds on TV recently.As promised earlier heres the link:



I have not been able to read the fineprint of the Chevrolet offer regarding completely free maintainance of your chevrolet car for three years.But if what the ads say are true,then it is a fantastic offer where the customer has a completely hassle free experience for three years.No cash expense at all apart from the initial expenditure.

Heres a video I have come across from GM,a motivational video for GM employees in India,

Dhan dhanadan dhanadan Dhan dhanadan dhanadan... Team GM go says the Video.It talks about One team - One vision,the vision to be number one.



Wishing GM all the very best in India.

Chevrolet Tavera -The difference between GM and Toyota

You want to know why the Japanese manufacturer is such a dominant force in the automobile world and why GM is having such a hard time,look no further than the Chevrolet Tavera.

Toyota India initially identified the MUV space which could get them sales in the Indian market somewhere where they would have no competition but knew prices had to be kept on the lower side since this segment was totally new in India and people had not yet accepted the Toyota brand in India.So they bring the more than a decade old Toyota Qualis into the market and since they have no real competitor establish themselves well and are able to generate a good degree of sales.GM was fortunate enough to have a similar vehicle in its global stables and brought in the Tavera,which was good enough to take on the Qualis.

So what did Toyota do they upped the game brought the latest generation MUV the Toyota Innova into India inspite of very good sales of the qualis and repeated requests not to discontinue the qualis.Toyota realised that they could get into the luxury car segment as well and not only depend on the tourist/commercial segment if they do so.What it also meant that Toyota could make more profits from this luxury oriented and consequently higher priced MUV.

GM has alway had to play the catch up game with Toyota.Today sales of the Tavera have stagnated.The outdated nature of the Tavera has kept it out of the Private buyers radar.This really creates a bad image of the vehicle and the company.It is the Taxi/commercial segment who are the main segment of consumers of the Tavera today.The end result is Toyota is able to sell many more Innova's as compared to the Tavera but at the same time Toyota is making more money from each vehicle it sells.Its not only about fancy management concepts like Just in Time,its things like these what makes Toyota the company it is today.

Its high time GM stops the Tavera in India and brings in something that would be completely out of the box.

Also read:
Chevrolet Captivates The Indian Buyer

Price cuts announced by Car manufacturers in response to Budget 2008.

Following are the price cuts announced by the various manufacturers in response to the cut in excise duty,

Hyundai:
Reduction in prices in the range of Rs 8,730- Rs 13,278 on the Santro, Rs 11,047- Rs 16,324 on the i-10 and from Rs 13,169- Rs 19,419 on the Getz.

Maruti:
Reduction would range between Rs 6,500 for Maruti 800 to Rs 18,030 for Swift Diesel .Six models that qualify for lower excise benefit including Maruti 800, Omni, Zen, Wagon R, Swift Diesel and Alto.

General Motors :
To reduce prices in the range of Rs 7,500 –Rs 14,000 on the Spark and U-VA.

Tata Motors:
The prices of Indica range have been reduced in the range of Rs 8,500 to Rs 14,600 while prices of the recently launched Indigo CS have been reduced in a range of Rs 12,700 to Rs 15,300.

Skoda:
Reduction of upto Rs.18,000 on the Fabia diesel.

Fiat:
The three variants of Palio Stile will cost up to Rs 12,000 less from March 1.

Ford:
Has cut prices of the Fusion diesel by a whopping Rs.22,000 effective from March 1.

Update:
These are all the vehicles which qualify for the price cut and all manufacturers have passed on the benefit to the manufacturers.The other vehicles presently in the market do not qualify for the cut in excise duty.

[Source:The HinduBusinessline,The Statesman,Sify]

GM working on its version of the Maruti 800

As I said previously Gm is looking at the A-segment of cars in India seriously and the GM-Daewoo team is working on a sub 1L engine car for markets like India.This car obviously won't be priced at Rs.1 Lakh but is intended for the A-segment more of a rival of the Maruti 800.There is also some talk of a chinese partner for developing this small car.

GM may also launch a new small car in India this year by April to supplement the sales generated by The Spark.Don't know the pricing details about this car but is expected to take on the Hyundai i10.As far as margins,GM expects an impressive number from the recently launched Captiva to help it.It is expecting to sell about 1000 units of these by the end of 2008.

To just give a measure of the demand of small cars in India the Maruti Alto is all set to cross the 1 million magic figure in a week or two.However must say I am very disappointed by the largest manufacturer in India[Maruti] so far.They seem to have lost the plot a bit.While other manufacturers are talking about a new launch every month almost as far as small cars are concerned Maruti seems to be having nothing much to offer to replace its existing fleet which is aging rapidly.