Automobile News and Analysis

Honda plans new variant of Jazz

Honda Siel Cars India is likely to launch a variant of its premium hatchback Jazz. The car is not doing well according to the company expectations. It sales has been dropping from 571 in March 2010 to 338 units in April 2010 and 205 units in May 2010. It is facing tough competition from Hyundai i20 (price starts from 4.51 lakh), Volkswagen Polo( Rs.4.3 lakh onwards) and Skoda Fabia (Rs.5.02 lakh onwards) who are present in the segment. The price of Honda Jazz price starts at Rs.7.11 lakh which puts off many prospective customers who do not see value and not willing to pay the premium for the Honda brand. So a variant with new alloy wheels , a fresh ‘Rallye red' colour, new blue-black interiors, front grill, and tailgate spoiler is on the way but the desired price correction is tough with yen appreciating against the rupee.

Toyota to launch Etios in two platforms

Toyota Kirloskar Motors(TKM) is designing a small car with a new engine on a new platform specific for India. It is investing around Rs.32000 million for the development of new car as well as for its new plant. It will compete with Volkswagen Polo, Ford Figo, Chevrolet Beat, Maruti Suzuki Swift/Desire sedan etc., Toyota is tight lipped about the price of it, though it says it will be competitive. Recently, Toyota is facing pressure and losing market to Ford, GM and others from its earlier foothold of the market in India. It hopes to revive its fortune from Etios and a sedan on the same platform. Etios is expected to have local content of 75% and expects to produce 70000 units in first phase and over 200,000 units in second phase.

Dunlop acquires Draftex an automotive seating company

Dunlop India has acquired 60% stake in Draftex a German company through a Maruitus based special purpose vehicle Wealth Sea. Draftex controls Henniges Automotive Grefrath GmbH which manufactures high end automotive seating systems. Dunlop also owns Schlegel Automotive, a UK based automotive sealing company. Henniges was sick for over a year, and Dunlop acquired and restructured it. Now it has received advances against sales of equipments to Audi,Volkswagen, BMW and Daimler.

Nissan Motors to expand dealership

Nissan Motors to expand dealership to 55 by 2012 is planning to open its Rajkot dealership by March 2010 and Vadodara dealership by June 2010. It may also open another dealership at Surat as well. Currently, the company is selling completely built units (CBU) Teana (a sedan), X-Trail (SUV) and it plans to sell sports car 370Z. It will also start producing locally Micra – a global compact car from May 2010.

Kiminobu Tokuyama- Mg.Dir