Modi invites Maruti to set up plant in state

VADODARA: Gujarat Chief Minister Narendra Modi on Sunday invited Maruti Suzuki India Limited (MSIL) to set up a car manufacturing facility in
Gujarat. Modi, after inaugurating the AGIDTR set up by the state government and MSIL here, said he wanted to give a business advice to Maruti. “Gujarat has General Motors and Nano, why not Maruti?” Modi said, pointing out that MSIL manufactures cars at Haryana which are then brought to Gujarat’s Mundra port for exports.

“Would any Gujarati make such a mistake? They (cars) should be manufactured and exported from here.” He added that with the construction of Mumbai-Delhi Industrial Corridor with active participation of Japan and arrival of a number of Japanese companies with a view to invest in Gujarat, MSIL should also establish their car unit in Gujarat. MSIL’s managing director and CEO Shinzo Nakanishi on his part said that MSIL is expecting export business to further grow this year. “Last year, we had exported 70,000 units whereas this year we hope to exceed one lakh units,” said Nakanishi.

Indian carmakers rejig Europe export plan

NEW DELHI: Indian car makers have revised downwards their export targets as governments in Europe have exhausted cash incentives for small
fuel-efficient cars.

Hyundai and Maruti Suzuki India that exports in large numbers was performing well largely due to this generous policy that lasted for eight months (February-September). During this period car exports jumped 32 per cent to 3.10 lakh cars over the same period last year.

Demand for A-Star, i10, i20 were the highest in Europe, which takes over 80 per cent of the cars shipped from India.

Countries like Germany, (the largest market for Indian cars) France, Spain, Italy, Austria.

UK, and Netherlands were offering cash benefits of up to 5,000 euros to buy new energy-efficient cars emitting lower carbon-di-oxide gas of up to 160 gms/km.

Now most of these countries have exhausted their budget and withdrawn benefits and only marginal markets like Netherlands and the UK continue to offer incentives on new cars.

Keeping the export potential in mind, Hyundai Motor India has re-jigged production and aims to export next year only 40 per cent of its made-in-India against 50 per cent that it ships currently.

Against the 2.8 lakh cars targeted to be exported during this fiscal year, Hyundai would ship around 60-70,000 cars less next year. Last month, Hyundai posted its first drop in exports (12 per cent) in three years for lack of demand from overseas markets.

Hyundai Motor India’s newly-appointed MD & CEO Han-Woo Park said, “We would focus on the domestic market to maintain our 21 per cent market share and production will be adjusted accordingly to take advantage of the buoyant demand.’’

Keeping the bleak export prospects in mind, Hyundai has shelved plan to set up a diesel engine facility in Chennai. It exports i10 and i20 in large numbers, most of which are diesel variants even though i10 diesel is not available in the domestic market. Besides it will shift part of i20 production to its plant in Turkey during the second half of the next year for better margins, tax benefits and labour issues in India.

Maruti Suzuki, India’s second largest car exporter, is looking at a sizeable drop in exports from next quarter as Europe, its largest market, has cut down on such incentives.

“There will be some rollover of the incentive from Europe till December. As most of the major markets like Germany, Italy and France have exhausted their cash inventive kitty, the next quarter will be tough for exports,” a senior Maruti executive said. Maruti has exported 80,283 cars in the first seven months of the fiscal .......and aims to export another 50,000 in the rest of the fiscal.

Indian carmakers enjoy higher margins and profits on cars sold abroad. Hyundai and Maruti Suzuki benefitted immensely from the global market’s gradual shift towards small fuel efficient cars emitting lower emissions. Profit margins on cars exported from India are almost double than the 8-9 per cent these companies get in the domestic market.

MUMBAI: German car maker Volkswagen plans to launch its Polo model in the first-half of 2010 followed by a slew of others, a top company executive Suzuki Swift Plug-in Hybrid

said on Wednesday. ( Watch )

"The Volkswagen Polo will be rolled-out early next year. The hatchback version of Polo will be launched in H1 2010 while the sedan version will be introduced in the second- half," Member of the Board and Director, Volkswagen Passenger Cars, Neeraj Garg, told reporters here.

"Testing of the Polo is going on." The Volkswagen Polo would have both petrol and diesel versions, he said.

Volkswagen has a 500-acre manufacturing facility at Chakan near Pune with a annual capacity to produce 1,10,000 units.

The company, so far, has invested around Rs 3,800 crore in the plant, he said.

Volkswagen, which at present selling two models in India - Jetta and Passat-- plans to introduce the Beetle and Touareg soon, Garg said.

For Polo, the company is initially looking at a 50 per cent localisation.

"To start with, we are planning to source 50 per cent of Polo's components from the domestic market. We are open for more localisation but it will depend on the quality and availability of the components, Garg said.

Volkswagen is eyeing cles in India during 2009, Garg said, adding as at September 2009 els Jetta and Passat, the highest number of sales has come from the former, he400 units of Jetta by end-2009 while the rest of the sales will b.27-million units of vehicles in 2008, while in India it sold 1,566 vehicles. increasing India sales with the launch of the Polo.

"Indiaible in the total sales of the Volkswagen. After the launch of the Polo, India' said.

The car manufacturer is also planning to increase its by the end of 2009, Garg said. "In the next two months, we w5."

Volkswagen would be expanding its network in cities like Dagpur, Nashik and Vijayawada, Garg said