MAN has hiked its stake in the heavy commercial vehicle joint venture with Force Motors, MAN-Force Trucks. It is now 50 per cent from the earlier 30 per cent. Subject to the necessary approvals, the new arrangement will see a stake sale to the extent of 14.20 per cent of the equity of MAN-Force Trucks by Force Motors to MAN at the consideration of approximately Rs 300 crores (Euro 49 million), indicating an enterprise value in excess of Rs 2000 crores. The 50: 50 MAN Force JV will have a Force nominated chairman and a MAN nominated vice chairman. While an additional equity capital by rights issue of approximately Rs.250 crores will be raised, the new arrangement will continue to emphasize on producing more models in India and especially those suited to the Indian market requirements. A new range of truck models are thus expected in a few months and also includes a bus chassis. 

While the JV footprint will now include MAN's (300hp) TGA range and eventually the 400 hp+ range as well, the Pithampur plant near Indore currently manufactures a range of prime mover-trailors and tippers. It also does 21 export models that cater to markets like Africa, Middle-East, Russia and large parts of Asia. While the Indian models have a localisation of upto 85per cent, the Pithampur plant is equipped with the ability to produce engines, axles, cabs and vehicle chassis assembly. The new arrangement will see some changes to the supply chain of this plant and the first of which would be the manufacture of a range of axles by Force Motors in addition to the cabs that it currently does.

Recording a sharp (37 per cent) decline in two wheeler sales in November 2008, Bajaj Auto has embarked on a new product initiate to combat the slow down. This initiative will have the company launching a new motorcycle each month for 6 months beginning January 2009. To attract buyers, the company has announced an extremely attractive 7.99 per cent low interest retail finance scheme nationwide across almost 300 Bajaj dealers. 

According to Rajiv Bajaj, MD of Bajaj Auto, the stagnant 3-wheeler sales reflect the subdued state of the commercial vehicle industry. Bajaj Auto recorded a small growth of 13per cent in three wheelers in November 2008. If there was a reason to be happy about, it were the exports for that month, which recorded an increase of 46 per cent and 67,397 numbers compared to 46,295 numbers in November 2007

Bajaj Auto Finance has launched a new, unique finance scheme exclusively for all Bajaj motorcycles. Aimed at capitalising on the void created in the market due to the exit of many Banks and NBFCs from the 2-wheeler financing business, unique to this scheme is the added benefit of 'free extended warranty' on every Bajaj motorcycle financed by Bajaj Auto Finance. A customer for a Bajaj motorcycle thus gets not just the finance to help him buy a Bajaj motorcycle but is also assured of a worry-free ownership via the generous extended-warranty scheme.

Honda models have improved considerably in initial quality from 2007, garnering three model-level awards and emerging as the most-improved nameplate, according to the J.D. Power Asia Pacific 2008 India Initial Quality Study (IQS) released recently. The study, which measures problems customers experience with their new vehicles during the first two to six months of ownership, examines more than 200 problem symptoms covering eight vehicle components. 

These components, listed in order of frequency of reported problems, include: engine and transmission; vehicle exterior; driving experience; HVAC; features, controls and displays; vehicle interior; seats and audio, entertainment and navigation. Overall quality performance is determined by the problems experienced per 100 vehicles (PP100), with a lower score reflecting higher quality. Three Honda models, CR-V, City and Civic ranked highest in their respective segments.