Audi to launch the A4 in july

VW have already announced that they are all set to launch the Jetta by July 2008,Now Audi[same VW family] plan to launch the A4 sedan in India too in July.

Wonder if this is an intentional strategy to launch both the cars so close to the other.VW certainly can get a lot of mileage from the Audi brand.

The A4 is supposedly going to have a starting price tag of Rs.29 lakhs and would compete with the BMW 3 series and the Mercedes C-class both of which are well established and have a greater following in India than the Audi. It would be interesting to see how Audi present the A4 and how many would move away from the BMW and Mercedes options to the Audi.Not that it has not been done before,the Q7 sales are proof of that.

[source:Economictimes]

Mercedes turns to CNG to counter high oil prices

When it comes to fuel prices the recent surge has hit even the super rich.So those paying nearly double the amount one pays to buy a mercedes in markets like america for owning this beauty in India are still bothered when it comes to the bill at the Petrol pumps.So far diesel was the saviour but even diesel is proving a costly option nowadays.

Mercedes therefore are turning to CNG to help save these customers that extra buck and ofcourse in the process save precious foreign currency for our country and keep the environment cleaner.

The only problem ofcourse is CNG is available only in a select few cities,about time the Government considering improving the CNG infrastructure in the country.

Rival Bmw is supposedly even considering bring in their hydrogen powered vehicles.

[source:Economictimes]

Audi A8 the most expensive car to Maintain

By now you must surely have heard the saying Skoda's cost an arm and a leg to Maintain.Audi is making the family proud.The Audi A8 is the most expensive car to Maintain* in the USA over a period of five years.

The bill for an Audi A8 over a five year period stands at $1640.Giving the car company is the Mercedes suv[G-class] which costs just the same.The BMW 7 series is not that far behind at 6th place costing $1529 to maintain.Considering our love for diesel,the Audi Q7 seems to be doing quite well in India but owners should be prepared for the high bills from their dealerships with the Audi Q7 being the seventh most expensive car to maintain.Coincidentally Audi,BMW and Mercedes have two cars each in the list.

From the non-luxury cars no surprises its the Hummers at the top of the list[H2 at $1484 and H3 at $1244].

Given the higher import costs for the Indian markets expect a much higher figure when it comes to India.

[image source:manager-magazin.de]


For the detailed list please visit:
Forbes

Maintain*- the average amount consumers might pay to keep their new cars in operating condition

Argentum Motors - Global Powertrain Player

Argentum Motors is panning out to be a service provider for automobile manufacturers than a rival.Initially there were rumors that they where going to produce low budget cars in India to take on maruti and hyundai but all that looks more likely to only remain a rumour.

Argentum motors have tied up with Karmann GmbH to manufacture high end luxury cars for players like Mercedes-benz,Porsche,Bmw.Initially Argentum may focus on convertibles since they have an aluminium forging facility.Argentum has the second largest automotive manufacturing facility in India with a capacity of manufacturing upto 2 lakh cars per year.Argentum has a 4 lakh powertrain (engine and transmission) manufacturing capacity with a 37.5 tonnes forging facility.

Argentum motors have also tied up with software solutions provider Dassault Systems for designing and engineering of engine components for global automotive Original Equipment Manufacturers (OEMs).Under the new venture with Argentum Engineering Design (AED) it is aiming to provide powertrain solutions to various companies.Already Argentum has three OEMs as customers for its powertrains.

Argentum now looks more on the lines of a global powertrain player.

[Source:Economictimes,Sify]

Mercedes Benz- Back to where it belongs

The Mercedes star is gleaming again says the Financial times headlines.After having a rough time in the recent few years Mercedes seem to have overcome their problems and are doing what they do best,selling aspirational luxury products which do not break down so easily.It also helps that recent products from the Mercedes stable[like for instance the C-class] even outscores in the looks department too.

Also what has helped back Mercedes profitability is that Chrysler is no longer a part of the family.Now without Chrysler operating margins are more than 10% and almost at Toyota levels.Mercedes have set targets to better this too.Toyota is now the leader in the automotive industry,one whom others look to in order to run their business.

In India rivals like BMW are fast catching up but in the new C-class Mercedes really have a winner and I won't be surprised if in the 3 series vs C class battle Mercedes emerges as the winner.In cars above this segment Mercedes is comfortably placed in the Indian market.

Is selling a cheap car a sin?

Yes that seems to be the attitude adopted by the car manufacturers off late.Everyone wants to play the premium tag.Nobody wants to sell affordable ,value for money cars.Value for money really has become a bad word as far as car manufacturers are concerned[atleast the established brands].

Skoda wants to move on as a premium car manufacturer and so is VW.Honda are planning to sell only the most expensive cars in their segment after the success of this strategy with the CRV.The latest attempt is more an attempt to take on the Bmw and the Mercedes customers rather than cater to the middle class as it has done so far in the US markets.Honda have publicly stated that as part of its global strategy if they ever come across a Honda Taxi they will buy it back[Premium hotels are exempt from this rule] guess thats why you hardly come across a Honda taxi.Even Hyundai are moving towards the premium segment cars.Its the same with Toyota too their cars just keep getting expensive with each passing generation though I have not yet heard of their premium tag aspirations.

Yes it is profitable to sell these so called premium cars but when everybody wants to play the same card it could just backfire.They should not forget that traditionally they were the ones to benefit from overpriced cars from rivals now somebody else could fill their shoes.

[Image source:wikipedia]

Whats keeping Lexus Away from the Indian Markets?

Each month you hear Mercedes and BMW say sales have overshot expectations by a huge margin.BMW now say they could well achieve 10000 units per annum by 2010 easily[and then you will again hear they have exceeded this target].Its the same with the others as well be it Mercedes,Volvo,Audi.

Then why does one of the hottest brands as far as the Premium badge is considered prefer to stay away from the Indian markets.Yes Lexus has well and truly been accepted as a luxury brand throughout the world and its no different here in India.We have imports here in the Indian market and the SUV's especially seem to be quite popular.Why does Toyota want to deprive itself from one of the hottest markets.Even the Camry which is imported from Japan and attracting those huge duties is still doing pretty well considering its ridiculously high price in the Indian market.So the excuse that a Lexus imported as a completely built unit will not attract customers does not real stand firm ground.And surely if BMW and Mercedes can do it so can Lexus it too should start assembling cars in India there is definitely a big enough enough market in India.

Toyota is simply giving the first mover advantage to these already well established brands and letting them set up a good enough network in India.This was the best time to catch these big boys on the back foot no point taking them head-on when they are well established in India[leaving aside Mercedes which is already well established and the darling of the premium car buyers in India].

But then isn't this the case with the whole Toyota brand in India.It is ridiculous that Toyota just has two vehicles in the mainstream market in India[4 overall in India] after more than 10 years in the Indian market.Yes Toyota is approaching the Indian market with caution after the DCM Toyota fiasco but does it really have to be so extreme.We know you have some of the best vehicles for markets like ours,but please get them here first.

[Image source:Wikipedia]

Also read:
Lexus to be sold in the Indian markets soon

Indian court asks Mercedes to offer new car to owner-Edit:Appeal pending in HIgher court

Talk about sheer bad luck or the fact that quality levels have hit rockbottom at mercedes benz and that too with their s-class sedan.An owner in India finds not one but two of his mercedes benz S-class cars to be defective ,just three months from their purchase he has constantly had to repair them.The court has come to his rescue but mercedes better be warned that other luxury brands are right up its toes and even though it will take some effort to upstage the popularity of the s class ,the other manufacturers could just catch mercedes on the wrong foot.This if I recall correctly is not the first instance mercedes have had to replace their car for an owner and several are complaining with regards to quality of mercedes taking a hit,mercedes please take note.

The National Consumer Commission has come to the rescue of the car owner and directed Daimlerchrysler India Pvt Ltd - the makers of Mercedez-Benz - to either replace the car, which suffered from over-heating, or refund its price.

Another Mercedes, bought by the complainant along with the one ordered to be replaced by the court, was also found to have manufacturing defects.

"For the second car (the car maker and dealer) are directed to remove the defect of over-heating of the central hump of the car on a long journey, with a period of eight week ... or in the alternative to refund 50 per cent of the amount of purchase price namely, Rs 29 lakh. "

Taking note of the complaint filed by an Okhla-based firm which bought the S-class sedan, Justice Shah and Rao said "if one of the most luxurious brand of cars, namely the Mercedez-Benz, ... gives trouble within three months from the date of its purchase, would a consumer be satisfied by such a car?"

the Commission ordered road tests and even appointed court commissioners, who travelled over 200 km in the car to verify the car purchaser's complaint, that the central hump of the car was getting over-heated during long journeys.

On the basis of road tests, the Commission said "in our view, the constant grievances of the complainant that the central hump was getting heated in long journeys cannot be ignored. These facts are established by the complaints made continuously by the complainant as well as the temperature noted by the court commissioners."

"As it is claimed that the 'Mercedez-Benz is not just about building a safe car, but it is about making the road a safer place,' in our view, the purchaser would not be satisfied with the said car, which requires repeated repairs, and is entitled to get replacement or refund of the price of the car," said the Commission, in response to the complaint filed by Controls and Switchgear Company Ltd.

The car maker and its dealer, in their defence, claimed that the problems, if any, faced by the complainant, were operational in nature and were due to the nature of use and improper road conditions.

Source:

Update:

There seems to be some history regarding the person involved ,the fact that he was a previous supplier of mercedes and his contract was discontinued due to inferior products,as a result of which he is looking at giving back to the company.The case as of now is pending in the Supreme court of India.Thanks to Ricky for this update.