Korean automaker, Kia, is making inroads into India, claim industry sources. However, the Hyundai sister concern is said to be taking the Malaysian route to India. Malaysia’s Naza Automotive Manufacturing SDN BHD is claimed to be all set to construct a assembly plant in Tamil Nadu to build Naza and Kia brand of vehicles at an investment of Rs 12 million. Malaysia’s work minister S Samy Vellu is known to have said that the Naza Automotive plant will be set up in Tamil Nadu and a memorandum of understanding between Kia Naza and the state government would be signed soon. The Minister is also known to have said that the government has already set aside a 15-acre land for the plant at Sriperambudur, and the decision was made during the discussions between chairman of Naza Group and Tamil Nadu government officials.

Tyre major, Goodyear India Limited, has announced a strategic initiative aimed at strengthening its presence in the large tyre replacement market in the country. Antonio Capellini, Managing Director, Goodyear India Ltd., said the company would be introducing its international format shop-in-shop outlets for the first time in India. This organised tyre-retailing format has proven to very successful in other markets like China and the ASEAN countries and is a part of the global initiative to differentiate the Goodyear brand from competitors.

The company will set up 50 shop in shop format branded stores by the end of 2006 and at least 250 more by end of 2008. The first 6 stores would be opened in Chennai, followed by 12-15 stores in North, South & West region and 3-5 stores in East region. All these outlets will have international look-and-feel interiors and attractive range based display, utilise computerized software for easy access to tyre information; and carry prominent branding.

All Goodyear new-format stores will also offer computerised wheel alignment and balancing, expert advise on tyre maintenance, advise on various tyre options for each car model, tyre check-up, alloy wheels and much more. The company has a very strong presence in the OEM sector, being the only tyre brand approved by all car manufacturers in the country.

The world's number two truck maker, Volvo, is planning a series of acquisitions to broaden its product range, a company top executive is known to have said in an interview with a leading newspaper recently. The executive is also known to have said that the company’s growth target of 10 per cent would be impossible to attain wholly organically, almost. He is thus said to have hinted at acquisitions for growth. This comes amidst a speculation that Volvo’s main shareholder, Renault, might want to sell its 20 per cent holding in the truck maker. The newspaper quoted the executive saying that his company was considering steps to enlarge its foothold in the Chinese market and would also consider buying a truck maker in Russia.

Volvo entered the Indian market in 1998 and has been selling trucks and buses. A few years ago the Indian operations started exporting the FM range of trucks to S Korea. Volvo is said to be banking big on the Indian operations, which though not a volume spinner, could assist the group in sourcing components. The company is said to be in the process of supplying the B7R LE to a few transport undertakings soon. This will be Volvo India's second bus offering. The first offering, the B7R inter-city bus, was well received in the Indian market.

Mahindra & Mahindra (M&M), the world's fourth largest tractor manufacturer, has entered into a contract with the Government of The Gambia to supply different models of tractors along with matching implements. M&M will also set up a satellite plant that will look after the assembly of these tractors in The Gambia and handle after sales service support and training for local mechanics.

The contract will result in technology transfer as well as employment and earning opportunity for the youth of the country. This is a new concept for countries in the African region, which traditionally have been dumping grounds for imported products that are invariably left to languish without much support from the manufacturers.

Exports have been a thrust area for M&M's Farm Equipment Sector. After tasting success in the fiercely competitive US market, FES is now focusing on other major international markets. M&M acquired an 80% stake in Jiangling Motors in China to set up the Mahindra China Tractor Co. Ltd; it set up a branch office in Australia and launched its East European operations starting with Serbia & Montenegro.

The African continent is important for M&M's global plans. Unlike its major Indian and European competitors, it has focused on setting up alliances in the region rather than concentrate on just supply of tractors. M&M already has contracts (alliances) in place to set up Manufacturing Units under the Indian Government Lines of Credit, which will mean long-term association with local governments of these countries for Mahindra Tractors.

FIAT India Pvt. Ltd. has announced the commencement of 7 new Tata-Fiat service stations across various locations in the country. With an aim to improve customer confidence Fiat India will primarily focus on bettering the after sales service and dealer network as per FIAT's international standards.

Commenting on the development, Giovanni De Filippis, managing director, Fiat India Pvt. Ltd said, 'Fiat is in the process of building a strong foundation through deeper penetration in the country. Our proximity to our consumers will definitely improve the service to consumers. These Tata-Fiat service stations will streamline our after sales service and provide the customers the best quality of service.'

All Fiat vehicles manufactured in India will be serviced at outlets located in Calicut, Madurai, Coimbatore, Tiruvananathapuram, Jamshedpur, Indore, and Anand.

Mahindra & Mahindra Ltd., the Indian leader in utility vehicles, has launched the All New Scorpio and the Scorpio Pik Up in Sri Lanka. This is part of a series of global launches of the vehicles. The two vehicles along with the Bolero Pik Up Double Cab and the Bolero Load Carrier were displayed at the Auto Show India in Colombo under the aegis of the Society of Indian Automobile Manufacturers.

Pravin N. Shah, executive vice president, Automotive Sector, said on the occasion, “Sri Lanka is one of the major markets in the SAARC. Sri Lanka is a mature market and the All New Scorpio and the Pik Up will provide us the perfect platform to further M&M’s customer centric growth in the region.” General Sales Company is the exclusive distributor for Mahindra vehicles in Sri Lanka. They are also distributors for global brands like Volvo and Proton. Mahindra vehicles made their debut in this key market in 2003 and have since been servicing a premium clientele.

The Scorpio is a direct result of the innovative Integrated Design and Manufacturing (IDAM) process, where Mahindra tied-up with global automotive suppliers at an early stage for concurrent design and development. These partners include Lear USA, Visteon USA, Dana USA, BEHR Germany, Bosch Germany, Borg Warner USA, Fuji Japan and Sylea France. “In every sense, Mahindra Scorpio offers Sri Lankan consumers a true internationally manufactured, world-class product,” says Mr. Shah.

The Mahindra Scorpio Pik-Up is available in 4x2 and 4x4 single cab and double cab derivatives. Driven by a powerful 2.5-litre intercooled turbo-diesel engine, the new Mahindra Scorpio Pik-Up is a result of years of development and research to provide a vehicle that will thrive in Sri Lankan conditions.

The Lancer Cedia has won the Indian Rally Championship K1000 circuit held at Bangalore recently. The Lancer Cedia made its debut at the Championship on a winning note by defeating its closest competitor by a comfortable 52 seconds margin. This is the first time in the history of the championship that a debutant vehicle went on to win the championship.

The rally witnessed a participation of 48 rallyists from across the country. The Lancer Cedia was sported by Gaurav Singh Gill along with co-driver Farooq Ahmed, members of the JK Tyre team. Team JK Tyre expressed delight over Cedia’s performance and the support that they received from Hindustan Motors during the event.

Lancer Cedia is a car from the Mitsubishi-Hindustan Motors stable and is manufactured at the company’s plant in Chennai. Hindustan Motors was established in 1942 and is a part of the GP-CK Birla group. Mr. C.K.Birla is the Chairman of Hindustan Motors. Lancer and Pajero are the other models that are rolled out of the plant in Chennai.

Bombardier Aerospace, manufacturer of transportation solutions, has announced that the construction of its permanent manufacturing site to be located in the Querétaro Aerospace Park Project will begin later this year. Manufacturing operations at this new site are scheduled to start during the second half of 2007.

Hindustan Motors has launched Montero, the Premium Sports Utility Vehicle from Mitsubishi Motors Corporation of Japan. Speaking on the occasion, Ravi Santhanam, managing director of Hindustan Motors, said, "The Montero is a bona-fide off-road legend. The rally versions have won the gruelling Dakar Rally for the last six years running. Success like that doesn't come easy. It comes from pure capability. Montero derives this capability from the latest technology to master any terrain. It offers these capabilities paired with all of the luxury flourishes that SUV buyers expect and then some more."

Priced at Rs. 29.7 lakhs, the Montero comes as a CBU (Completely Built Unit) and would be distributed through the existing network of dealers in India. The Montero is powered by a 3.2 litre 16 valve DOHC Intercooled Turbocharged Diesel engine that produces a maximum power of 167.2 PS @ 3800 rpm and a remarkable maximum torque of 405 Nm @ 2000 rpm. Equipped with an electronic direct injection Diesel system the engine is designed to deliver high-torque performance in low and mid ranges offering superior off-road drivability. It has a 5-speed manual gearbox and Super Select 4WD (SSW-II) system, which offers the choice of efficient highway power or sure footed off road traction.

Further, the Montero is equipped with M-ASTC (Mitsubishi Active Stability traction Control) which uses a comprehensive network of intelligent sensors that monitors various vehicle parameters and manages engine output, power distribution and braking force to deliver improved vehicle control, traction and tracing on any surface. Using an array of real time sensors the Montero automatically engages M-ASTC that actively corrects understeer and oversteer in corners, adjusts braking force to each tyre independently via the ABS system and manages the engine output accordingly via the electronic throttle control.

Asia Motor Works, promoted by a Kolkata-based tea garden owner, has commissioned a plant in Bhuj, Gujarat, to manufacture heavy trucks. According to sources, the company has invested Rs 500 crores, and the plant would have capacity to produce 10,000 trucks per annum initially. An Asia Motor Works executive is known to have said that the company would manufacture heavy-duty trucks, which will be targeted at a niche market. Sources claim that as per the agreement signed with the government of Gujarat, the company is expected to invest a total of Rs 2,000 crores in the project over the next few years. The project is claimed to be part of the Rs 25,000 crores of investment that has gone into the Bhuj district, which was affected by earthquake in 2001.

According to sources, the project will be eligible for excise duty exemption for five years from December 2005 and will get sales tax benefit for 10 years as per the benefits extended to Kutch by the State government. Spread over 300 acres, the plant is said to consist of an assembly line, R&D centre, press-shop, welding line and a sheet metal facility.

Aiming to be a niche player in a mature commercial vehicle market, according to industry sources, Asia Motor Works is said to have already rolled out 100 trucks and supplied them to a select batch of customers, response from which is encouraging.

These trucks are said to be manufactured by sourcing world-class aggregates locally, offer a sound business equation in terms of cost per tonne per kilometre and are priced competitively in the range of Rs 22-26 lakhs. Cummins, Valeo, Dana Spicer and Meritor and ZF are said to be the suppliers supporting the project that produces tipper designs including modern mechanicals and air-conditioned cabins.

To support the trucks, industry sources claim that Asia Motor Works is setting up a 151-strong service network and provide communication links in each truck for the owner and driver to communicate, and for the driver to communicate with the service network in case of a breakdown.