The Government of India has finally increased the price of petrol and diesel by Rs 5 and Rs 3 respectively. The price hike is expected to further up the inflation and cause a eventual slowdown in various areas. The automobile industry, which is under pressure for sometime mainly due to increase in input costs, now has a new challenge to counter. 

Commenting on the price hike, Arvind Saxena, Sr. Vice President- Marketing & Sales, HMI, said, “The current price hike has further aggravated the woes of Indian consumers already reeling under abnormally high inflation. This move would further dampen the demand for new cars, as the industry is already under pressure because of the higher interest rates and the steep rise in input costs.” 

Tata only recently announced a price hike of its passenger vehicles while pointing at the rising input costs. Steel, which is the most used raw material in automobiles, has lately been an issue of concern for manufacturers as well as suppliers. Other that steel makers most raw material suppliers have been sticking to short term assurances, which is fueling an amount of uncertainty. 

And with issues like CO2 reduction already high on the agenda of the auto manufacturers, the rise in fuel price is expected to accelerate a move towards small, fuel efficient cars. The move has already started in the US where the auto manufacturers are already working towards drastically cutting down the production of big, gas guzzling SUVs. GM is said to be evaluating the prospect of dumping the Hummer SUV.

German automotive supplier, Continental, has acquired shares in the Japanese lithium-ion specialist Enax, a highly-recognised technology expert for the development and production of high-energy and high-performance lithium-ion cells for hybrid and electrical vehicle batteries. 

The two partners have agreed upon an exclusive co-operative venture for the development of lithium-ion cells especially for future hybrid and electric drives in automobiles. Continental has acquired a 16 per cent holding in Enax. Together, the two intend to improve safety, service life and performance of lithium-ion batteries even further.

Mahindra & Mahindra has signed an agreement with Engines Engineering S.p.A., agreeing to acquire 100 per cent stake in Engines Engineering S.r.l, the new legal entity which will be formed by transferring the business of Engines Engineering S.p.A. The transaction is subject to receipt of necessary approvals. Engines Engineering’s revenues are approximately US $ 12-million. It is in the business of two-wheels design and developing of motorcycle prototype. 

Founded in 1979 by Alberto Strazzari, the company offers complete and thorough services to its clients. Currently, Alberto Strazzari hold 85per cent and three other investors hold the balance in Engines Engineering. It is based in Castenaso near Bologna which is also one of the leading automotive engineering and industrial manufacturing hubs in Italy.

Some of the most prestigious names that are associated with Engines Engineering are- Benelli, Beta, Ducati, Gilera, Honda, LEM, Malaguti and Yahama. Apart from these, they have developed many products that bear a range of other brands, from Spanish manufacturers to ones in the Far East.

Porsche is 60 years old. Exactly 60 years ago, the cornerstone was laid for the family-operated industrial company, whose rise from modest beginnings to become one of the most important sports car manufacturers in the world no one back then would have ever foreseen. 

On June 8, 1948 a new chapter in automobile history began. For on this day, the first Porsche prototype with the vehicle identification number 356-001 received its official approval and homologation for road service. “It all started when I began looking around and just could not find my dream car. So I decided to build it myself”, said Ferry Porsche – and to this day, this genius and pioneering spirit has shaped the philosophy of the company. However, in the past six decades, Porsche has not only experienced peaks, but also troughs. 

Yet thanks to efficient production methods, clear branding and innovative models, such as the 356 and the 911, Boxster and the Cayenne, the once small sports car specialist quickly transformed into one of the most successful and profitable automobile manufacturers in the world. Over these 60 years, Porsche has worked very hard to achieve the special image it enjoys, mainly through its most varied innovations and also, in particular, in the area of environmental protection.

K K Swamy has been appointed to the Board of Directors of Volkswagen India Private Limited as Managing Director and Vice President. He will report to Jörg Müller, the Volkswagen Group Regional Representative for India. Swamy was deputy managing director of Toyota Kirloskar before moving over to VW, and was instrumental in the setting up of Toyota Kirloskar Motor and running it since 1997.

Tata Motors will launch their world truck, simultaneously in India and South Korea, in June 2008, said company's managing director Ravi Kant. The world truck would be fitted with 200-500 hp engines and will be replacing the existing range of 100-180 hp trucks. The launch will be followed with other new variants in both passenger and commercial vehicles. However, Kant candidly admitted the financial year 2007-08 was a turbulent period wherein the company witnessed a slump. “The automobile industry is going through one of the most difficult phases,” he said. Elaborating, he said rising input costs coupled with inflation and fuel hike, Tata Motors, like any other automobile company, is going through difficult phase. 

Talking about the future, Ravi Kant said the firm would focus on automobile financing. “Automobile financing is the need of the hour and we intend to strengthen our base through this. Last year's performance has taught us, to strengthen our vehicle financing needs,” he said. On the issue of future pricing, Ravi Kant said the company, as of now, has not taken any decision “and this goes even for our Nano car too”.

Hyundai Motor India has announced an extended warranty scheme. First of its kind, according to Hyundai sources, the extended warranty scheme includes powertrain and comprehensive extended warranty schemes, which are spread across products like Hyundai i10, Santro, Getz Prime (Petrol), Accent and the Verna for a period of five years.

Cooper-Standard Automotive has appointed Kumar Vaidyanathan as director, Global Engineering, Fluid Systems Division. Responsible for providing leadership and strategic direction to the global engineering team to support the company’s long-term product growth strategy, Vaidyanathan will be reporting to Lee Turner, vice president, Global Sales and Engineering. 

US-based Cooper-Standard Automotive specializes in the manufacture and marketing of systems and components for the auto industry. Products include body sealing systems, fluid handling systems, and NVH control systems. Employing approximately 19,000 people globally with more than 70 facilities throughout the world, the company has five plants in India. 

In Ghaziabad near Delhi, the company makes body and chassis parts. It has a similar parts manufacturing facility at Gurgaon; fuel, brake and power steering management production facility at Chennai; fluid products at Halol near Vadodara and plastic and steel tubes manufacturing facility at Pune.