The Board of Directors of ACEA, the European Automobile Manufacturers’ Association, has elected Carlos Ghosn as its new President. Carlos Ghosn, CEO of Renault, will take over from Christian Streiff, CEO of PSA Peugeot Citroën, on 1 January 2009. In the face of the slow down automakers are battling with, Ghosn is expected to seek a constructive dialogue with EU institutions and governments on behalf of ACEA as the first task after he takes over.

Mahindra & Mahindra (M&M) has commenced the production of its new vehicle, Xylo at Nasik. The Xylo, which is set for its national unveiling on January 13th 2009, is claimed to be a utility vehicle that is set on the same lines as the Innova. Booking for the Xylo is scheduled to start on January 14th, 2009, a day after the launch. The vehicle will be made available across India in a phased manner.

With car sales plunging, demand for automotive electronics is dropping as well. Only Electronic Stability Control (ESC) systems sales seem to be braving the dip and are expected to generate attractive opportunities for suppliers of Microelectromechanical Sensors (MEMS). MEMS find use in ESC systems, which build on Anti-lock Braking System (ABS) technology by correcting vehicle direction to help drivers maintain control of their vehicle during rapid steering and counter-steering changes, which may occur during events like sudden lane changes or swerves to avoid obstacles. 

With worldwide penetration of ESC technology in new cars will grow to 57 per cent in 2012, up from 28 per cent in 2006, according to research findings from iSuppli’s report entitled: Mandates Reshape the Market for Electronic Stability Control Systems. This is attributed mainly to government mandates requiring stability control in the United States and later in Europe. 

Sources at iSuppli express that government mandates on ESC should provide opportunities for at least six players new to the ESC market, either in development or sampling gyroscopes, and likewise four companies developing product for accelerometers. While new offerings are expected to begin in the truck market before attacking the large automotive OEM, it is companies like VTi, Bosch, Mobis, Systron Donner and Panasonic, which are expected to gain the most. 

VTi specialises in accelerometers, which measure the measuring lateral slip. VTI Technologies, which supplies all the MEMS accelerometers used by Continental Automotive Systems, was the accelerometer market leader in 2007 with a 53 per cent share of industry revenue. Bosch was second, supplying accelerometers for its own systems and to Mobis. It held a 29 per cent share of ESC accelerometer revenue in 2007. In the gyroscope (yaw rate measuring device) market, Systron Donner was the market leader with a 44 per cent share of market revenue in 2007. The company was the only supplier to Continental Automotive Systems, with its high-performance quartz tuning fork design. Bosch was second with 30 per cent of revenue due to sales of gyroscopes for its own ESC systems. Panasonic, which held the fourth place for ESC gyroscope revenue in 2007 managed to surpass Silicon Sensing Systems in terms of unit shipments in 2007, giving it the No3 ranking based on volume. 

Bosch led the pressure sensor market in 2007 with 54 percent share of revenue. Sensata, a 2006 spin-off from Texas Instruments Inc., stood second with a 34 percent share of revenue. Denso was a distant third.

The recent announcement of reduction in excise duty (and Cenvat applicable to automobiles) by 4 per cent across the board has had its effect. Most automakers have announced that they will pass the benefit to their customers; the early announcers among automakers being Hyundai Motor India. The Korean automaker has revised the prices of its entire range of products (excluding CBU imports). The basic Santro thus costs approximately Rs 8,500 less. The basic i10 costs nearly Rs 11,000 less. 

Maruti Suzuki has also declared that it will pass the full benefit of Cenvat to its customers on cars manufactured in India. The reduction thus ranges from an estimated Rs6,500 for Maruti 800 to Rs 23,000 for the top-end SX4 sedan. 

Two wheeler major, Bajaj Auto has reduced the prices of its products as well. The price reduction ranges upto Rs.2100 and Rs.4400 ex-showroom on its range of 2-wheelers and 3-wheelers respectively and has been reduced on vehicles billed to dealers with immediate effect.