Budget highlights for Auto Industry

Budget headlines:-

• Excise duty on small cars cut, reduced to 12% from 16%.
  
• Excise duty down on 2 & 3 wheelers to 12% from 16%.
• Excise duty on Hybrid vehicles reduced to 14% from 24%.
• Customs duty on imported vehicles unchanged.
  

What this means is 2 wheels and small cars will be cheaper by around 4%.

Hyundai Motor India and General Motors today said they would slash prices by up to Rs 16,000.

The price cut on Santro could be between Rs 12,000 and Rs 14,000, while that on Getz would be between Rs 14,000 and Rs 16,000. Price cut on the newly launched i10 could be between Rs 12,000 and Rs 16,000.

General Motors is also cutting the price of its small cars Spark and Aveo U-VA.

Reductions for Maruti cars range from 6,500 rupees for the Maruti 800 model to 18,030 rupees for the diesel-powered Swift hatchbacks.

Reactions from the Industry:-

"We have decided to pass on the benefit of the excise duty cut to customers on three models--Santro, i10 and the Getz-- effective April 1,"
- Hyundai official

"We will be cutting the prices of our small cars between Rs 7,500 and Rs 14,000,"
- GM India Vice-President P Balendran

"While the step was a welcome one, it would create a further gap between the small cars and the big cars segment."
"The excise cut on Hybrid cars, would not benefit the customers much as the hydrid would be fully imported and the customs duty has not been changed."
-Honda Siel Car India Senior (HSCI) General Manager Jnaneswar Sen

"Very good, but unexpected to stop degrowth. Finance availability is a major issue."
- Suzuki Motorcycle India Vice-President Sales and Marketing Atul Gupta

"It was really heartening to hear the union finance minister announcing the slash in excise as this will result not only in bringing down prices but also in boosting the sagging sales of two-wheelers."
- Niraj Bajaj Director Bajaj Auto Ltd

"The market had been wanting this to arrest the slide in demand in recent months.''
- Mr. Munjal Managing Director Hero Honda

source:-
The Economic Times
Bloomberg
Mytoday

Cars to be costlier next year, Is it true?

Well as I reported earlier here: Indian Automobile updates December 07
Car makers like Maruti, GM, Hyundai, Skoda are all likely to increase the prices of all their models.
Hyundai cars are expected to get costlier by about Rs. 6,000 where as the prices for Maruti cars are expected to go up by Rs. 12,000 and also heard that Skoda cars would be dearer by Rs 20,000. The reason for this price hike is told to be the rise in input costs and freight charges.

Well at the same time if you have noticed, All the manufacturers are giving great discounts, gifts, additional accessories, free insurance etc., in the range of Rs 20,000 to as high as 60,000 that too on A and B segment cars. And all the offers are valid only till Dec 31.

So whats the catch? Great offers till 31st Dec and Price hike in Jan, does that sound fishy?
Okay one more clue: What would a second had car buyer ask you when you would sell your car? Well the question would be "Which Year ?".

Honestly i have been watching this for past couple of years and you will find history repeats its self. Car manufacturers and dealers are eager to clear all their stocks before year end as there is a natural slow down in auto sales in december as most of the car buyers prefer to wait for a month for buying a new car rather than adding an extra year in the life of their car. This is in spite of absolutely no changes expected in the models next year. Hence the dealers offer discounts, spread the word about price hike following next year (which is not found to be true in most of the cases) etc.

In my opinion this is the best time to buy a car. The prices may or may not increase but the discounts, benefits that are on offer right now wont be there for sure.

GM planning Hybrids and Electric vehicles for India

What is a Hybrid Car? Check here.

General Motors is currently working on hybrid and electric cars for India. The cars are likely to be launched in India within the next five years. This seems to bve a very logical step for all the car manufacturers to reduce emissions and help environmental conservation. The hybrids have many advantages apart from being environment friendly. In many countries they get many incentives and subsidies, tax exemptions and they are fuel efficient too, i.e more miles per gallon.

The company will be showcasing its hydrogen car GM Sequel at the Auto Expo in New Delhi, to study the market and understand the audience response.

The real challenge for the company is to keep the cost down. GM has tied up with IIT Kharagpur for a join research in the areas and has commited more than $1 million.

Source Economic Times

Related :-

• Tata teams up with ISRO to produce Hydrogen power...
• Tata Indica Electric and Hybrid
• Hybrids and Hybrid cars in India
• Honda Civic Hybrid to hit Indian roads soon
• Chevrolet scores in J.D Power Asia Pacific 2007 India Initial Quality Study(IQS)
  

Honda Civic Hybrid to hit Indian roads soon

Honda is planning to launch The Civic Hybrid in India next year. Hybrid cars, which use both a petrol engine and an electric motor, are usually more fuel-efficient and produce lower levels of emissions, making them more environmentally-friendly than the regular petrol or diesel vehicles.
The Civic Hybrid will be priced around Rs 20 lakh, compared to the Rs 12-13 lakh on road price for the petrol version. This is because of high import duties (105%) on the completely-built-up units, will push the price up. Honda is expecting some relaxations for its green car without which it would be a hard sell in India and without a promise of selling in decent numbers manufacturing car local wont be feasible too. In the US and Japan, there is a $2,000 subsidy on every hybrid car, said Honda's India boss Masahiro Takedagawa.

Any car to run on Indian roads has to get a homologation certificate from ARAI's Pune facility. The absence of standards is one of the major hurdle that Hybrid car makers are facing apart from the high import duties.

Honda will also launch Honda Jazz / Fit powered by a 1.2 litre engine specifically for the Indian market with a price expected to be around Rs 6 lakh. All new version of Honda city is also expected to take the challenge offered by the Suzuki SX4, Hyundai Verna, Chevrolet Aveo.
Pictures of 2008 Civic Hybrid
A look at 2008 Honda Civic Hybrid:-
* 1.3-Liter, 8-Valve, i-VTEC 4-Cylinder Engine
* Continuously Variable Transmission (CVT)
* Electric Motor
* Idle-Stop Feature
* Integrated Motor Assist IMA®
* Drive-by-Wire™ Throttle System
* Advanced Technology Partial Zero-Emission Vehicle
* Drive-by-Wire™ Throttle System
* Front 3-Point Seat Belts with Automatic Tensioning System
* Active Front Head Restraints
* Advanced Compatibility Engineering™ (ACE™) Body Structure
* Anti-Lock Braking System (ABS) with Electronic Brake Distribution (EBD)
* Daytime Running Lights (DRL)
* Dual-Stage, Dual-Threshold Front Airbags (SRS)
* Front Side Airbags with Passenger-Side Occupant Position Detection System (OPDS)
* Side Curtain Airbags
* Front and Rear Crush Zones
* Lower Anchors and Tethers for Children (LATCH)
* Side-Impact Door Beams
* Tire Pressure Monitoring System (TPMS)

Technical Specifications of 2008 Civic Hybrid:-
Engine Type	In-Line 4-Cylinder
Engine Block/Cylinder Head	Aluminum-Alloy
Displacement (cc)	1339
Horsepower @ rpm	110 @ 6000
Torque (lb.-ft. @ rpm)	123 @ 1000-2500
Redline (rpm)	6300
Bore and Stroke (mm)	73 x 80
Compression Ratio	10.8:1
Valve Train	8-Valve SOHC i-VTEC®
Multi-Point Fuel Injection	Standard
Drive-by-Wire™ Throttle System	Standard
Front-Wheel Drive	Standard
CARB Emissions Rating	AT-PZEV
Direct Ignition System with Immobilizer	Standard
Immobilizer Theft-Deterrent System	Standard
100K +/- Miles No Scheduled Tune-Ups*	Standard
Electric Motor / Generator
Permanent Magnet Motor	Standard
Power Output	20 hp / 76 lb.-ft.
Motor Width (mm)	70
Electric Power Storage
Nickel Metal Hydride (Ni-MH) Battery	Standard
Output (Volts)	158
Rated Capacity	5.5 Ah
Transmissions
Continuously Variable Transmission (CVT)	Standard
Body/Suspension/Chassis
Unit-Body Construction	Standard
MacPherson Strut Front Suspension	Standard
Multi-Link Rear Suspension	Standard
Stabilizer Bar (mm., front/rear)	24.2 / 12.0
Steering Wheel Turns, Lock-to-Lock	2.71
Steering Ratio	13.52
Turning Diameter, Curb-to-Curb (ft.)	34.8
Wheels	15" Lightweight Alloys
All-Season Tires	P195 / 65 R15 89S
Compact Spare Tire	Standard
Exterior Measurements
Wheelbase (in.)	106.3
Length (in.)	176.7
Height (in.)	56.3
Width (in.)	69
Track (in., front/rear)	59.1 / 60.2
Curb Weight (lbs., MT/AT)	NA / 2877
Weight Distribution (%, front/rear, MT)	NA
Weight Distribution (%, front/rear, AT)	59 / 41

Related :-

• Tata teams up with ISRO to produce Hydrogen power...
• Tata Indica Electric and Hybrid
• Hybrids and Hybrid cars in India

Tata Indica Electric and Hybrid

What is a Hybrid cars? check here
Tata Motors is planning to launch electric version of the Indica for the overseas market by 2009. It has roped in a foreign collaborator for the project and hopes to tap the environmentally conscious European market.

Car makers are betting on Europe for electric cars given the fact that climate change and environment sustainability are high on the European Union agenda. For instance, London has given tax exemption to hybrid vehicles. Countries such as Norway, Sweden and France that have surplus power are also shifting to battery-operated vehicles.

Tata Motors would be launching a ‘mild hybrid’ of Indica in 2008. The company said that electricity-run Indica would not suit the Indian scenario as the domestic market is yet to mature.

Tata confirmed that the prototype of Indica hybrid is ready. The hybrid version would have the facility to turn off the engine when it is not needed such as when the car is stopped at signals, and turned on again.

Japanese car makers such as Honda with their Civic and Toyota with their Prius have also been to introduce their hybrid cars in India. However, the lack of homologation rules in the country has been a hurdle.

Besides the passenger car, Tata Motors is also working with a US-based company on electrification of its most popular light commercial vehicle, ‘Ace’, and hybrid buses for city transport.

Source Business Line.

Related :-

• Tata teams up with ISRO to produce Hydrogen power...
• Tata Indica Electric and Hybrid
• Tata motors rollout 1 millionth car
• Hybrids and Hybrid cars in India
• Honda Civic Hybrid to hit Indian roads soon
• New Tata Indica with airbags and ABS
  

Hybrids and Hybrid cars in India

What does Hybrid really mean:-
Hybrid may mean the combination of two or more different entities or things, aimed at achieving a particular objective or goal.

What is a Hybrid Car:-
A Hybrid Cars use a rechargeable energy storage system to supplement fossil fuel energy for vehicle propulsion. Hybrid engines are smaller and more efficient than traditional fuel engines. Some hybrid vehicles use regenerative braking to generate electricity while traveling. The term "Hybrid Vehicle" can also refer to a vehicle engine that uses a combination of different fuels such as petroleum and ethanol. The articles on this page are on the topic of Hybrid vehicles and related technologies.

The hybrid vehicle typically realizes greater fuel economy than conventional internal combustion engine vehicles (ICEVs), such that fewer air pollution emissions are generated per kilometer traveled. In addition noise emissions are reduced, particularly at idling and low operating speeds, in comparison to conventional gasoline or diesel powered engine vehicles.

Hybrids as opposed to popular perception are not a recent development, Hybrids have been present for almost over a century.

1898 The German Dr. Ferdinand Porsche, at age 23, built his first car, the Lohner Electric Chaise. It was the world's first front-wheel-drive. Porsche's second car was a hybrid, using an internal combustion engine to spin a generator that provided power to electric motors located in the wheel hubs. On battery alone, the car could travel nearly forty miles.
How Hybrid cars work:-
The Mercedes-Benz M-Class HyPer a hybrid concept vehicle

A gasoline-electric hybrid car is a cross between a gasoline-powered car and an electric car. A gas-powered car has a fuel tank, which supplies gasoline to the engine which then turns a transmission, which turns the wheels.
Where as an electric car has a set of batteries that provides electricity to an electric motor. The motor turns a transmission, and the transmission turns the wheels.The hybrid is a compromise. It attempts to significantly increase the mileage and reduce the emissions of a gas-powered car while overcoming the shortcomings of an electric car.

The hybrid car has a gasoline engine which is smaller and uses advanced technologies to reduce emissions and increase efficiency. The electric motor on a hybrid car is very sophisticated. Advanced electronics allow it to act as a motor as well as a generator. For example, when it needs to, it can draw energy from the batteries to accelerate the car. But acting as a generator, it can slow the car down and return energy to the batteries.

There are two ways in which the two power sources can be configured. First known as a parallel hybrid, has a fuel tank that supplies gasoline to the engine and a set of batteries that supplies power to the electric motor. Both the engine and the electric motor can turn the transmission at the same time, and the transmission then turns the wheels.

The second is a series hybrid, the gasoline engine turns a generator, and the generator can either charge the batteries or power an electric motor that drives the transmission. Thus, the gasoline engine never directly powers the vehicle.

The engine in the hybrid car is powerful enough to move the car along on the freeway, but when it needs to get the car moving in a hurry, or go up a steep hill, the electric motor and battery steps in to provide the necessary extra power.

Hybrid cars in India.
The are many big players planning to bring in the hybrids in India. The front runners amongst the race are Toyota with their very successful Prius, Honda with the Civic hybrid and our very own Tata motors.
I will cover each one in a separate post, so hang on.

Source: Hybrid Cars

Related :-

• Tata teams up with ISRO to produce Hydrogen power...
• Tata Indica Electric and Hybrid
• Hybrids and Hybrid cars in India
• Honda Civic Hybrid to hit Indian roads soon