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India Auto News DriveInside.com |
Auto News Highlights - Chevrolet Cruze launched in India- BMW India launches Z4 Roadster - JK Tyre, Ceat hike tyre prices - Toyota lowers investment in new plant by 25 per cent - Hero Group in talks with Proton to make passenger cars in India - Tata Motors raises $750 million to pay off JLR debt - Honda two-wheelers troubled by continuing labour problems - GM sells Hummer to Chinese company |
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Chevrolet Cruze launched in India
General Motors has finally launched its much awaited luxury sedan, the Chevrolet Cruze, in India. Priced between Rs 10.99 lakh and Rs 12.45 lakh (ex-showroom, Delhi), the car comes with a 2.0 litre diesel engine in two variants. According to the Automotive Research Association of India, the Cruze gives a mileage of 18.3 km/litre. GM is expected to introduce a petrol version of the car within the next few months. |
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BMW India launches Z4 Roadster BMW India today launched its two-seater sports-car, the Z4 Roadster, at a price of Rs 59 lakh (ex-showroom). The car, powered by a 2,979cc petrol engine, will help BMW expand its presence in the country. The President of BMW India, Mr Peter Kronschnabl, told media persons that the Z4 is targeted at car-buyers who can appreciate a pure driving experience and expect a high standard of elegance and value. The company aims to sell 30-40 units of the car this year. |
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JK Tyre, Ceat hike tyre prices
Tyre manufacturers JK Tyre and Ceat Limited have increased tyre prices by 2-4 per cent from October 1, 2009. The two companies had to resort to a price hike because of increasing raw material costs. Natural rubber has grown costlier by 50 per cent over the past six months. Other raw materials such as synthetic rubber, carbon black and nylon cord too have become more expensive. JK Tyre has raised tyre prices of heavy commercial vehicles by 2 per cent, light vehicles by 3-4 per cent and other vehicles by 2-3 per cent. Ceat Limited, owned by the RPG group, has hiked two and three-wheeler tyre prices by 2-3 per cent. |
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Toyota lowers investment in new plant by 25 per cent
Carmaker Toyota Kirloskar Motor (TKM) has cut down its investment in its new plant near Bangalore by 25 per cent. The company will now be investing Rs 2400 crore in the plant, and not the originally planned Rs 3200 crore. The savings have mainly come from lower construction costs, lower import costs due to the strengthening of the rupee against the yen and local sourcing of equipment. TKM's Deputy Managing Director (Commercial), Shekhar Vishwanathan, said that the reduced investment will not affect the plant's annual production capacity of 100,000 cars. Also, the deadlines for the factory's completion (December 2010) and the launch of the company's small car (early 2011) remain unchanged. |
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Hero Group in talks with Proton to make passenger cars in India The Hero Group, which currently makes two-wheelers in partnership with Japan's Honda Motor, is in talks with Malaysian carmaker Proton to manufacture passenger cars in India. Discussions between the two companies have been on for the past several months, and an agreement may be reached by the end of 2009. Proton is keen to cash in on the rapidly growing passenger car market in India, and has picked its compact car Savvy, flagship sedan Saga and mid-sized car Persona for entry into the country. According to an official at the Malaysian High commission, a high-level delegation from Proton will be coming to India by the end of this month. |
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Tata Motors raises $750 million to pay off JLR debt Tata Motors has raised a sum of $750 million through global depository shares (GDS) and convertible bonds to repay the loan it had taken to acquire Jaguar and Land Rover (JLR). The company had taken a $3 billion loan in 2008 for the acquisition, and has already repaid the major part of it. Apart from repayment of debt, the proceeds will also be used on capital expenditure, working capital needs and for other corporate purposes. |
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Honda two-wheelers troubled by continuing labour problems Honda Motorcycle and Scooter India (HMSI), a wholly-owned subsidiary of Japan's Honda Motor, is beset with recurring labour problems. Labour unrest at the company started as a result of its new long-term wage settlement, after the previous agreement expired on July 31, 2009. The company has petitioned the Punjab and Haryana High Court for relief, and has threatened to move its operations out of Haryana and maybe even India if the workers' agitation continues. It is estimated that HMSI has suffered losses to the tune of Rs 250 crore as a result of the labour problems. |
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GM sells Hummer to Chinese company US-based General Motors has signed an agreement to sell car brand Hummer to Chinese heavy equipment company Sichuan Tengzhong. There has been no official disclosure of the financial terms of the agreement, but media reports say that the brand was sold for a sum of $150 million. The company's management team will remain the same under its new owners, and it will have its headquarters either in Detroit, or Auburn Hills, Michigan. The agreement is yet to be approved by the Chinese and US governments. |
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NEWSLETTER ARCHIVES - Auto News Roundup, 08-October-2009 - Auto News Roundup, 06-October-2009 |
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