Hyundai Motor India Ltd., India’s fastest growing auto manufacturer and largest passenger car exporter, launched the i10 in a glittering launch function on the 1st of November 2007, Chennai. The i10 is the first car from Hyundai that makes its world debut here in India and which will also be the sole production and export hub for the car. 

Hyundai Motor came to India in 1996 and launched its first car – the Santro, which became a runaway success in 1998. The launch of the i10 symbolizes the second phase of operations for Hyundai Motor India in the country where it enjoys a market share of well over 18% and which is poised to grow to 20% in the next calendar year. The i10 marks the entry of stylish, performance driven compacts from Hyundai, which offer the latest to its customers. 

Speaking at the launch function, H S Lheem, Managing Director, Hyundai Motor India commented, “Hyundai Motor India is starting its second phase of operations with the launch of this brand new compact i10. The i10 symbolizes what Hyundai Motor stands for today; great design, latest technology and performance with a price tag, which is affordable. The Indian operations will become the global hub for small cars and after the launch of the i10 today, we at Hyundai Motor India and all Indians can take pride in the fact that we make world class cars, which are driven across the world.” 

The i10 is powered by a 1.1 litre, iRDE petrol engine with an unmatched fuel economy. The unit develops 66.7PS@5500 rpm of maximum power and a peak torque of 10.1Kgm@2800 rpm. The i10 comes with a 2-year, unlimited warranty package, stunning features and the latest developments in safety that every customer ultimately desires. The i10 will be sold in four trim options, the D-Lite, Era, Magna and the Auto. Competitively priced, the i10 will add to the existing line-up of Hyundai India and thus not replace any model or the Santro in particular. The Santro will continue to be produced. The new car will be available in Rs 3.39 lakh and Rs 4.90 lakh variants for the Indian market.

DaimlerChrysler India handed over keys of the locally assembled Mercedes-Benz Actros trucks to its first batch of customers in Pune recently. These trucks, the 4840K, were assembled at the company’s rented facility on the outskirts of Pune. The move comes prior to the company shifting into its own facility at Chakan by 2009 where the Actros and bus chassis are expected to have a dedicated line along with the passenger cars that DaimlerChrysler India has been assembling at the current facility. While the bus chassis is expected to roll out of the current facility by the end of this year, the Actros tippers were launched in India in 2005. 

The Actros features state of the art technology, robust build quality, uncompromising standards of vehicle engineering, low operating costs, safety and driver-comfort - hallmarks of the Mercedes-Benz brand. The 12-itre Actros engine delivers about 400 horse power which makes it one of the most powerful engines across the tipper segment of the Indian commercial vehicles industry. Speaking on the occasion, 

Andreas Renschler, Member of the Board of Daimler AG and Head of Daimler Trucks, said, “We are bullish about India and excited to offer the locally produced Actros to our Indian customers. We are confident that with the growing economy and focus on infrastructural development, India will be one of our major markets for commercial vehicles. We look forward to expand our presence in this vibrant market.”

Navistar International Corporation, a wholly owned affiliate of International Truck and Engine Corporation, has formed a JV with Mahindra & Mahindra to produce diesel engines for medium and heavy commercial trucks and buses in India. The joint venture, to be named Mahindra International Engines Ltd. (MIEL), will be 51 percent owned by Mahindra & Mahindra (M&M) and 49 percent owned by Navistar. The combined investment of the two companies will be $90 million over the next five years and is second such JV with M&M with whom ITEC inked a JV in 2005 to manufacture light, medium and heavy commercial vehicles for India and export markets. The engines manufactured by MIEL will power the full line of trucks and buses produced by the preceding JV beginning 2009. 

The engine components will be sourced locally, going up to 85 percent within two years, due to the strong availability of quality parts and materials from Indian suppliers. MIEL will build a new plant in India with a projected initial capacity of 25,000 units per year, ramping up to 40,000 per year within five years. According to Waldey Sanchez, president and chief executive officer, MWM-International, a wholly owned subsidiary of ITEC and another Navistar affiliate, “The first production engine will be a 7.2-litre, in-line design that has been very successful in commercial truck and bus applications in South America, and Mexico.” 

The joint venture company will also provide sourcing services and engineering services to another Navistar affiliate, International Truck and Engine Corporation, which has operations in North and South America. Both M&M and the Navistar affiliate will have five directors each on the board of Mahindra International Engines Ltd. Mahindra will appoint the chairman of the board and International will appoint the managing director.

General Motors India has introduced a limited edition of its Aveo. The car is based on the 1.4 Aveo and part of the company’s centenary year celebrations. The limited edition follows a special, centenary year pricing offer on the Chevrolet Spark. The company claims to have received a record 11,200 bookings for the Spark during the offer period. 

The limited edition Aveo features plush leather upholstery, stylish alloy wheels, integrated 2-DIN audio system, convenient remote keyless entry system, comfortable back seat armrests with cup holders, an improved gear shift, enhanced throttle response and advanced levels of noise, vibration and harshness protection.

Castrol has unveiled Magnatec, specially formulated engine oil using synthetic technology with the unique proposition of intelligent molecules. The unique proposition of intelligent molecules is claimed to provide protection in three steps—seek (seek out and bond to critical engine parts), bond (form an active layer of protection the moment the ignition is turned on) and protect (form an extra layer as the engine heats up during a long journey). The Magnatec is available in 10W40 viscosity grade and meets the requirement of APF SM/CF; ACE A3/B3 specifications. 

Speaking at the launch of Magnatec in Mumbai, V Srikanth, vice president (marketing), Castrol India, said, “Car owners seek reliable performance from their vehicle. The Castrol Magnatec has been formulated with synthetic technology that forms a stronger layer of protection from the moment you turn on the ignition ensuring that the engine performs at its peak for a longer duration. For Magnatec, Castrol India has roped in cricketer, Rahul Dravid as brand ambassador.

Exide Industries, lead acid storage battery manufacturer has announced its 100 per cent acquisition of Tandon Metals, an unlisted lead smelting company located near Pune in Maharashtra. The acquisition of Tandon Metals clears the path for Exide to get into the lead smelting and recycling business. Speaking on the occasion, T V Ramanathan, managing director and CEO of Exide, said, “We are pleased that we have been able to acquire this smelter who is an important supplier of Lead Alloys of good quality to our factories located in Western India. The challenge that we face now is to scale up the production capacity of this unit in a cost effective manner and in the shortest period of time possible. This we believe would give us economies of scale and inter-alia, assist us in import substitution”.

Skoda Auto India has opened a new dealership in the Mumbai suburb of Andheri. This is the second showroom by Autobahn Enterprises, which is a Skoda dealer with a showroom at Worli. The showroom is located on the Andheri Link Road and is spread over an area of 3000sq ft.

To help the inquisitiveness of the entrepreneurs pertaining to this sector, Business C-ordination House (BCH) is organising a two day training workshop on automotive textiles to be held on 15 and 16 November 2007, in New Delhi. An ideal destination for the enthusiastic Indian entrepreneurs who are looking at automotive textiles as a productive market are curious to know and explore the possible opportunities in this segment, the training workshop on Automotive textiles aims at providing a good mix of practical and theoretical knowledge to the delegates, which will enable them to have an insight about variety of products and applications, their manufacturing technologies and specific fabric structures. 

Elaborate information on processing and finishing requirements of textiles used in automotives, technical specifications and testing standards, safety measures will also be discussed in details along with the highlights on the future opportunities and product possibilities for this sector. The workshop has been designed to be interactive, informative and integrated enough to offer a complete package to the attendees that will enable them to investigate the business prospects and gain technical know how by the industry experts and the top industry leaders. For further information contact: Deepti Aggarwal, Business Co-ordination House, Tel: 91-11-23328130, E-mail: info@bch.in.

Ashok Leyland and Nissan Motor Co have signed a binding Master Co-Operation Agreement (MCA) for the formation of three joint venture companies supporting the Light Commercial Vehicle (LCV) business. The agreement was signed in Chennai today by R Seshasayee, Managing Director of Ashok Leyland and Carlos Ghosn, President and CEO of Nissan Motor Co. The agreement follows the signing of the Heads of Agreement (HoA) document in August this year and reflects progress achieved with the detailed project evaluation. It formalises the partnership between the companies, which will include the development and manufacture of LCV products under both the Ashok Leyland and Nissan brands as well as cooperation in sales. The two companies anticipate an investment in the neighborhood of US $ 500 million for the creation of three joint venture companies that are to cover vehicle manufacturing, powertrain manufacturing and technology development business areas. 

The Vehicle Manufacturing Company will have exclusive rights to manufacture LCV products in India for both the partners. Manufacturing facilities will be located in India and the company will be owned 51per cent by Ashok Leyland and 49per cent by Nissan. Production will start in 2010 and will include the new generation Nissan Atlas F24 light-duty truck, in addition to a range of products covering applications from 2.5 to 8 tonne gross vehicle weight (GVW). In the medium term, production volume, intended for both Indian and export markets, is expected to grow beyond 100,000 units annually. The Powertrain Manufacturing Company will be responsible for the manufacture and assembly of engines and other drivetrain components to be fitted in LCV products and for export. Manufacturing will be located in India and the company will be owned 51per cent by Nissan and 49per cent by Ashok Leyland. 

The Technology Development Company will be responsible for the development of LCV products and related powertrains, destined for the Indian and select global markets. This JV company will be owned 50:50 by the two partners and located in Chennai. The products developed will be sold under both the Ashok Leyland and Nissan brands. In addition, the two partners also expect to cooperate to leverage each other’s dealer networks in specific global markets. For example, this could provide Nissan with access to Ashok Leyland’s dealers in India and for Ashok Leyland, access to Nissan dealer networks in specific export markets. The JV is also set to benefit from leveraging the sourcing strengths of both the partners.

Abhishek Auto Industries Limited, the country’s first and leading seat belts manufacturer with approximately 40% market share and revenues in excess of Rs 100 crores, announced a joint venture with KSS (Key Safety Systems), a leader and innovator in global automotive safety systems and components. 

KSS is a US $ 1 billion MNC specialising in seat belts, steering wheels and airbags, headquartered in Detroit, USA. Under the terms of agreement of the JV, KSS is acquiring a 50% stake in Abhishek Auto Industries Limited and post the JV Abhishek Auto Industries Limited will be renamed as KSS-Abhishek Safety Systems Pvt Ltd. The balance equity will continue with the existing shareholders of Abhishek Auto Industries Limited. The joint venture plan also includes an investment of approximately US$20 million over the next few years, expanding upon the existing world class design, development, testing and manufacturing facilities to add new steering wheel and air bag capabilities. 

By 2008 end, KSS Abhishek Safety Systems will start the manufacture of steering wheels and by 2009 end, the company will start manufacturing airbags making KSS Abhishek Safety Systems the first Indian company manufacturing all three safety components - safety seat belts, steering wheels and airbags - as one entity under one roof. “Tying up with KSS not only gives us access to latest technological innovations globally but also to KSS’s global client base. We also get exposed to global best practices and a chance to move up the value chain” said Dhiraj Dhar Gupta, director, Abhishek Auto Industries. 

Representing KSS’ first major investment in India, it is expected that the India facility will be tightly connected with the KSS’ global technology centres in Detroit, Frankfurt and Shanghai working together in concert to execute global programmes. The expected revenues from the new entity in the first full year of operation i.e. 2008-09 would be around Rs150 crores. The targeted revenue in the third year, 2010-2011, is around Rs 250 crores.