Global biggies to source parts from Nano vendors for low-cost models

NEW DELHI: Key component suppliers of Nano are set to reap the benefits of their low-cost technologies that made the world’s cheapest car a Making of Nano
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reality, with global biggies such as Nissan-Renault , Toyota, VW and Honda approaching them for parts for their low-cost cars.

With as many as seven small cars lining up for Indian debut in the next two years, Nano’s 100-odd vendors are already cheering. Nano’s only direct competitor, Rajiv Bajaj’s $2,500 car, is expected to draw extensively from Nano vendor base.

“It would inevitably use (the Nano parts suppliers ). The project will source almost 100% from the Bajaj supply base, but many suppliers in that pool is also common to the Nano,” said a person with direct knowledge of the Nissan-Renault-Bajaj ultra lowcost car project, who asked not to be named.

Officials with ACMA, the apex body for the auto component industry, said carmakers, two-wheeler manufacturers and commercial vehicle companies were trying to halve the cost of their new products. All of them are looking at replicating the Nano experience in their products, said Jayant Davar, president of ACMA and vice-chairman and managing director of Sandhar Technologies.

“They are looking at launching their vehicles at lower prices than their existing range. But before they tie up officially, they want their components to be validated by their Japanese and other overseas parents,” he said.
Key component makers such as Bosch have already been approached. Bernd Bohr, member of the board of management at Bosch, had told ET NOW earlier that the Tata Nano project is giving Bosch a good entry point with other original equipment manufacturers (OEMs) that were thinking of the same segment.

A Delhi-based Nano supplier said he made presentations to some MNCs customers that wanted to use the technology developed for the Tata group’s small car. “Now they are sourcing components from us for their small cars that are slated for launch in the next 2-3 years,” he said, requesting anonymity.

Understandably, most vehicle makers deny they have anything to do with the Nano. From GM to Honda to Toyota to Volkswagen, the common response is that the small cars lined up for India will not be in the Nano category and will not be of the same quality. However, vendors say the Nano takeaway is not in replicating the same components but in replicating the processes that made the Nano so cost-effective .

India’s small car market, which comprises 80% of the 1.5 million units industry, will see a number of new launches in the next 14 months. Nearly all the big names of the auto world have announced fresh projects . Toyota is working on a platform for a small car with an investment of over Rs 3,000 crore.

Honda has also announced its first small car that will have India as the hub. Hyundai, which already has best-selling small cars such as the Santro, i10 and the Getz in the Indian market, has announced a new car positioned below the Santro with an investment of Rs 800 crore. VW’s Polo, GM’s Chevy Beat and Nissan’s Micra will debut in 2010. The Bajaj low-cost car is due in 2012.

JK Tyre to double exports from Mexican plants

MYSORE: JK Tyre and Industries is aiming to double exports from its Mexican subsidiary, Tornel, within a year, and is looking at the Central and
Southern American markets for expansion.

The tyre major had acquired Tornel in 2008, and currently about 75 per cent of Tornel's annual production of 66 lakh units is sold in the Mexican domestic market.

"Currently, only 25 per cent of Tornel's annual production is sold overseas. Our target is to increase the share of exports to 50 per cent within one year," JK Tyre and Industries Vice Chairman and MD R P Singhania told news agency.

He said the three plants of Tornel presently have a capacity utilisation of around 85-90 per cent, and the company is looking at further enhancing it.

"We are looking closely at the markets in Southern and Central American countries. We are already selling some products of all our three brands -- JK Tyre, Vikrant and Tornel -- in those countries and now we are looking to increase our exports to these countries from our three plants in Mexico," Singhania said.

He said the Brazilian market would be one of the major targets for expansion.

"In the region, our main focus will the Brazilian market. Brazil is one of the three countries along with India and China, which witnessed growth during the recent economic recession," he added.

At present, JK Tyre has 230 dealers across the Central and Southern American region.

"Our next goal is to strengthen the supply system to these dealers and strengthen our position in these markets," Singhania said.

NEW DELHI: The country's largest car maker Maruti Suzuki will launch two of its best selling models -- Alto and Wagon R, with a new generation New SUVs to hit Indian roads
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engine as it prepares to meet April 2010 deadline of stricter emission norm.

According to industry sources, the company will discontinue the old F-series engines in both Alto and Wagon R and replace them with its new K-series engine, which is Bharat Stage IV complaint.

When contacted a Maruti Suzuki India (MSI) spokesperson said, "the successful K series engines will be mounted on more models in a phased manner," without specifying details and timeline for the change in engines.

Alto is MSI's best selling model. In November last year it crossed one-million mark in domestic market, while Wagon R also accounted for a good number to its compact car sales.

The company's newer models such A-Star, Ritz and the new Estilo are powered by K-series engines, which the company claims are more fuel efficient and have lesser emission.

With 11 cities in India scheduled to move to stricter Bharat Stage (BS) IV emission norms from the current BS III by April next year, MSI has been preparing itself for the change.

It has already upgraded its mid-sized sedan SX4 to make it BS IV compatible and it will be shortly launched in the market. A similar upgradation for premium compact car Swift and entry-level sedan DZire is also on the cards but the company has decided not to upgrade its oldest model M800 to meet the new emission norms.

WASHINGTON: The rubber hasn’t met the road yet but sparks are already flying. India's electric car Reva is receiving a torrid welcome in US after an Electric and hybrid cars
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announcement last week that it would be manufactured in upstate New York by an American collaborator.

''So our economy is so bad that India is outsourcing to America?'' one New Yorker snippily asked in the local press, after Bannon Automotive, a Long Island electric car firm of uncertain provenance, said it would build Reva's electric cars at a yet to be determined site near Syracuse at an event attended by the governor David Patterson.

Bannon is yet to get its financing together and Reva's full board is yet to approve the project, but the fur is already flying over the plan, partly due to what locals see as the states munificence to dodgy entrepreneurs.

Paterson has said New York State will provide $6.76 million in incentives, including a $3 million grant and $3.76 million in wage and tax credits, In addition, the federal government is expected to provide $52 million in loans and loan guarantees to Bannon. In return, Bannon will be required to invest at least $26.6 million into the plant over the next three years.