While domestic sales witnessed a growth of 33 per cent, the export of over 20,000 units in July, 2010, as against 13,000-odd units last year translated into a growth of 54 per cent, thereby boosting the overall sales growth for the month.The company sold 61,051 motorcycles in July, 2010, against 42,998 in the corresponding period of the previous year — a growth of about 42 per cent — while the sale of 40,357 scooters translated into a 46 per cent growth.”Three-wheeler sales of the company crossed the three thousand mark for the second consecutive month, recording3,108 units in July, 2010, in comparison to 1,026 units in July, 2009,” the release said.

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Source:NDTV

“Compared with Korean cars, our vehicles are roughly 30 percent more expensive globally,” Takeshi Shirane, senior managing director in charge of purchasing, told Reuters in an interview on Friday.”So what we’ve said is, let’s work towards that goal.”

Under the scheme, called RR-CI, Toyota is tasking engineers and purchasing staff to work together to collectively come up with the best way to design and manufacture 165 designated components, setting a unique cost-reduction target for each. Suppliers are also asked to contribute ideas.

The plan, which kicked off late last year, marks a major departure from Toyota’s past practice of setting up project teams for each vehicle model to decide the ideal component design for only that model.
Previously, Shirane said, a model built and sold globally like the Corolla had one blueprint that drew up the same component designs across the world. While that was effective for some components, it wasn’t for others, Shirane said.

Under RR-CI, which stands for “ryohin” (quality) “renka” (low price), and cost innovation, Toyota wants to come up with a design that, for instance, makes better use of cheaper and locally available material, even if it means coming up with several different blueprints for the same part.”It takes a lot of work and (30 percent) is a very tough goal,” he said.”But I’m hoping that by the end of this year we’ll have come up with the best ’story’ for each of the 165 parts.” The target, is for those efforts to bear fruit from the next round of vehicle revamps, around 2013, he said.

MOVING TARGET?

Automakers around the world are all under increasing pressure to slash the cost of producing cars as they seek growth in emerging markets such as India, where small, cheaper cars dominate.And Toyota — a laggard in many such markets — faces formidable competition. Volkswagen, which has a goal of toppling Toyota as the world’s top automaker by 2018, already has a successful car platform and parts-sharing scheme across its many of its group’s brands including Porsche, Audi and Skoda.

Shirane, a 33-year Toyota veteran, also sees a tough fight against the Chinese.To drive home the urgency of Toyota’s task, Shirane said he sent 150 Toyota engineers and purchasing members to China in November to observe and learn from local parts makers.”I made sure there were young members in the group,” he said. “We’ve always had this notion that we are No. 1 in cost-cutting. I wanted them to see for themselves that we face tough competition.”

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Source: ET 19/6/2010

“We have crossed the total production figure of last year (about 30,200 plus units) a week-and-a-half ago. Our second shift will begin from July to respond to the significant demand,” Ford India president and MD Michael Boneham told reporters, handing over the key to its 1,000th customer of its MPL Ford dealership outlet here on Friday.By second shift operations Ford would be able to reach a capacity of 1.40 lakh units.

While rising input costs may be a cause for concern, Figo is proving to be a competition in the B-segment (price points ranging of Rs 2.1 lakh-Rs 6.2 lakh), that is growing 35% on a year-on-year basis. A clutch of brands such as Wagon R, Swift, Estillo, Alto, Punto, Polo, Spark, Beat, i10 and Micra are vying for a pie of this segment, pegged to be one lakh units.

Before the Figo roll-out, Ford found in a survey that the compact car B-segment constitutes over 70% of the country’s new vehicle market. While it is a tough segment, it has been growing. The interest level is generated by a number of things such as more car aspirants coming into market and new launches, he said.

Attributing Figo’s success to “competitive price positioning,” Mr Boneham said a high degree of localisation has helped the company. In Figo, the localisation levels have touched 85%.The waiting period, depending on dealer position for a Ford Figo is between four and six weeks, he said adding efforts are being directed to reduce the waiting time to less than four weeks.

Ford is also looking at engine exports to Thailand and though volumes are not yet finalised, it is eyeing at a figure of 2,500 to 3,000 engines per month. Similarly, it is planning to export completely-built-units of Figo to South Africa. When pressed, Mr Boneham said “it will happen in the next few weeks. We are looking at new markets too.”It is expanding its dealer footprints and plans to take the count to 200 from the current 166 outlets.

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Source: Auto news

The memo is as follows:

We wanted to write you a quick note requesting your support of our Chevrolet Brand. When you look at the most recognized brands throughout the world, such as Coke or Apple for instance, one of the things they all focus on is the consistency of their branding. Why is this consistency so important? The more consistent a brand becomes, the more prominent and recognizable it is with the consumer. This is a big opportunity for us moving forward.

As you know, we are investing substantially to improve the consistency of our retail facilities through the EBE process. Aside from the facilities aspect of our branding, there are many other ways in which we can demonstrate this consistency. One way to achieve this is with the use of Chevrolet vs. Chevy. We’d ask that whether you’re talking to a dealer, reviewing dealer advertising or speaking with friends and family, that you communicate our brand as Chevrolet moving forward.

We have a proud heritage behind us and a fantastic future ahead of us … speaking to the success of this brand in one consistent manner will ensure Chevrolet becomes even more prominent and recognizable than it already is.Thank you for your support of this effort!

GM issued a press release as follows:

Today’s emotional debate over a poorly worded memo on our use of the Chevrolet brand is a good reminder of how passionately people feel about Chevrolet.  It is a passion we share and one we do not take for granted.We love Chevy.  In no way are we discouraging customers or fans from using the name.  We deeply appreciate the emotional connections that millions of people have for Chevrolet and its products.
In global markets, we are establishing a significant presence for Chevrolet, and need to move toward a consistent brand name for advertising and marketing purposes.  The memo in question was one step in that process.

Mr.Klaus-Peter Martin, GM corporate communications explained the situation in the following way:

The Chevrolet vs. Chevy question is simply about how we communicate the brand going forward in advertising and other external communications. We love when people call us by our nickname “Chevy”. But Chevy is not our official brand name – it is Chevrolet. In the US Chevrolet and Chevy stands for the same thing and is understood as such, but Chevrolet is also one of the fastest growing automotive brands globally. In many of these countries we are just about to establish brand awareness for Chevrolet, so by calling us consistently Chevrolet helps to expand our reach. This process will take time and will not happen over night.

Finally, John Hughes, marketing manager for the Chevy Volt summed it up this way:

I will refer to it as the Chevrolet Volt.  You can call it what you like as long as you keep talking about it.And that I shall.

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Source : New York Times

Known as Mahindra Samriddhi Centres, the dealers have set up small farms to demonstrate the best farming techniques. The centres also conduct tests on soil samples for a fee of Rs50 and advise the cultivators on what nutrients to add to their soil.Eighty centres have come up already, and the company plans to raise their number to 250 by the end of next year.It has also set up a website in several regional languages to provide information on diverse topics such as use of fertilizers, location of cold storages and mechanization centres.

“Mahindra is the first tractor company to start these rural brand-building initiatives,” said Priya Monga, business head, RC&M Pvt. Ltd, an experiential marketing company that has worked on several rural marketing campaigns. “It’s highly possible that its competitors would follow suit.”Goyle said, “We are leaders but we also need to be thought leaders in the industry.”

India’s tractor industry grew 40% last year to 400,000 units. M&M, India’s largest tractor firm along with Punjab Tractors Ltd, which it acquired in 2007, has a 42% market share. It sold 160,000 units last fiscal. Punjab Tractors, which still sells under the Swaraj brand, makes up 12% of sales. M&M is silent about sales targets this fiscal.In the past, other automotive manufacturers selling in rural India have also undertaken brand-building exercises.

Maruti Suzuki India Ltd and Hero Honda Motors Ltd have dedicated rural marketing teams that also work on brand-building. Sugar maker DCM Shriram Consolidated Ltd has set up supermarkets that help extend its brand in rural India.

A good monsoon this year, which Goyle describes as “a catalyst” for purchases, will help M&M increase its sales. Increased infrastructure spending and higher procurement prices for farmers could also boost sales.
Tractors are also rented out to contractors to be used for haulage and transport activities. With 80-85% of tractors being sold on credit, easier credit availability will also add to sales.

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Source: www.livemint.com/30-5-2010

Honda came in third with a value of $14.30 (€10.83) billion, Mercedes was fourth with $13.74 (€10.40) billion, and Porsche was fifth at $12.02 (€9.10) billion.The big gainers were Volkswagen (up 20 percent) and Ford (up 19 percent), while the big losers were Porsche (down 31 percent) and Toyota (down 27 percent).

World’s most valuable car brands in $ billion; (rank in top 100)

1. BMW $21.82– (25)
2. Toyota $21.77 — (26)
3. Honda $14.30 — (46)
4. Mercedes $13.74 — (53)
5. Porsche $12.02 — (65)
6. Nissan $8.61 — (86)
7. Ford $7.04 — *
8. VW $6.99 –
9. Audi $3.62 –
10. Renault $3.26 –

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Source:Autonews

However, in a media statement on their official website, Ferrari have denied such reports, insisting that their car has never featured any kind of cigarette branding since 2007, “even in countries where local laws would still have permitted it.”“These reports are based on two suppositions: that part of the graphics featured on the Formula 1 cars are reminiscent of the Marlboro logo and even that the red colour which is a traditional feature of our cars is a form of tobacco publicity,” said the Ferrari statement.

“Neither of these arguments have any scientific basis, as they rely on some alleged studies which have never been published in academic journals. But more importantly, they do not correspond to the truth.”
“The so called barcode is an integral part of the livery of the car and of all images coordinated by the Scuderia, as can be seen from the fact it is modified every year and, occasionally even during the season. Furthermore, if it was a case of advertising branding, Philip Morris would have to own a legal copyright on it,” added the statement.

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Source:www.autoevolution.com 30/4/10

According to Toyota deputy managing director Sandeep Singh, the average waiting period for the Fortuner was around six months. He said that the company did not want customers to wait, and have therefore closed bookings. He added that bookings would be restarted in June or July 2010.

It may be recalled that Toyota India launched the Fortuner in August 2009, and the much anticipated SUV has been a run away success for Toyota. The Fortuner was initially supposed to be launched in 2005, and Toyota took their own sweet time to bring it to India. And now that the Fortuner is here, they are finding it difficult to meet the demand. It is a situation many companies would love to be in!

The Toyota Fortuner has clocked over 6500 units so far in sales, and has become the best seller in its segment. After the launch of the Fortuner, sales of the Ford Endeavour and Honda CR-V were hit. To meet the high demand, the company had increased production to more than 950 vehicles per month from the initial 500 units per month. As of now the company has a backlog of orders for over 6,000 units.

TKM also clarified its stand on the so-called brake problem on the Fortuner, the Company said they are rectifying the brake problems on the vehicle based on customer feedback on a vehicle to vehicle basis as some of the owners, especially those who shift from sedans and other cars to the Toyota Fortuner, a four-wheel-drive SUV, may feel that the brakes feel a little different because the actual performance will be a different from what they may be used to. Toyota Kirloskar Motors have said that in order to improve customer satisfaction, the company was only modifying or improving the brakes, and therefore this was not a recall.

The Toyota Fortuner since its launched has sold very well in its segment and has become the segment leader. Its competitors in the market currently are the Ford Endvour, Chevrolet Captiva, Mitsubishi Outlander, Suzuki Grand Vitara and the Pajero  and the Nissan X-Trail and Honda CR-V.

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Source:www.dancewithshadows.com 30-4-2010

Less than thirty years ago, Chinese citizens were forbidden to buy cars. China lifted its control on car purchases in the mid 1980s, and the demand for personal-use automobiles has risen steadily since. Between 1990 and 2000, annual car production grew from just 50,000 to more than 600,000 vehicles. In 2009, the country pumped out 13.8 million cars and sped past Japan to become the world’s largest automobile producer.

Last month, China set a new record for passenger car sales. Sales in March rose to 1.26 million vehicles, a 63 percent jump from a year ago, according to the China Association of Automobile Manufacturers. These record sales follow an impressive 2009, when China’s market grew 46 percent to 13.6 million vehicles, compared to a mere 10.4 million in U.S. sales.

While Detroit slowly recovers from poor sales that lost the U.S. its top spot in the industry, it may never again be able to catch up to China. Chinese government incentives and tax cuts are driving first time Chinese buyers, and those already looking for an upgrade, to auto dealerships. And as car manufacturing plants in China are ramping up production to keep up with domestic demand, they’re preparing for what looks to be the next frontier—exports.

The Chinese auto industry has made calculated moves to get to this next step. Numerically, the country is home to far more auto producers than the U.S. or Japan, and many of those are joint ventures with foreign automakers. By law, foreign car companies are required to partner with a Chinese company to do business in China.

Joint ventures in China include Volkswagen, General Motors, and Honda. Despite the famous foreign brand names, most cars made in China today are sold to Chinese consumers. China exported a mere 369,600 vehicles in 2009, according to the China Association of Automobile Manufacturers.

In May 1983, Chrysler’s Beijing Jeep Corporation became the first joint venture for manufacturing complete vehicles. In 1997, Shanghai General Motors was formed, and a year later the first Buick sedan rolled off the production line there. Of the country’s 47 auto manufacturers today, 26 of them are joint ventures, according to Automotive News.

“By forcing foreign companies to do joint ventures, they have been getting a free education on how to build cars and they are getting better at it,” says T. Russell Shields, a founding officer of the Intelligent Transportation Society of America.That’s not to say foreign automakers haven’t benefited from sharing their trade secrets.

This March, General Motors sold more cars in China than in the U.S.. Chinese domestic sales for General Motors and its joint ventures in China jumped 66.9 percent in 2009 to a record 1,826,424 vehicles. GM China holds an estimated market share of 13.4 percent and the company predicts sales in 2010 could top 2 million. Meanwhile, Ford Motor Company’s joint ventures and wholly owned entities in China delivered record sales of 440,619 vehicles in 2009, an increase of 44 percent from 2008.

While many components used in U.S. cars are already manufactured in China—including the V6 engine in the Chevrolet Equinox and GMC Terrain—this explosive growth of wholly Chinese-made cars could soon mean U.S. showrooms will be filled with “Made in China” bumper stickers. The first of these vehicles to make it to the U.S. will likely be familiar American brands, mostly manufactured in China.A General Motors document leaked last year suggested the company could be the first to import Chinese-made cars to the U.S., as early as 2011. If it goes through, the GM plan would do little harm to American autoworkers; virtually all of the lost jobs in this case would be Canadian.

You can also expect to see inexpensive, wholly domestic Chinese brands like BYD and Geely imported to the U.S. soon. But first, the cars need some tinkering. “They’re not yet up to our safety standards,” says Shields. “But it’s certainly the case that the Chinese will be selling cars in the U.S. in a few years.”

The trick will be to not to repeat mistakes made by the Germans, British, Japanese and Koreans. “Those early attempts showed the companies were immature in terms of style, content, quality and reliability,” says George Peterson, president of the marketing and consulting firm AutoPacific. “It takes decades to really understand the American market.”

Still, a significant number of Americans are already willing to buy Chinese, according to market research conducted by AutoPacific in 2009. Of new car and light truck buyers in the USA, 16 percent of respondents said they’d be willing to consider a brand from China. “This is a very high number,” Peterson points out, only 11 percent said they’d consider a brand from India. “And those people are younger, more affluent and more highly educated than the typical new car buyer. If a Chinese brand could attract these people it could cause a huge ripple effect among not only the Big Three, but also the Japanese manufacturers selling in the USA.”

In March, China’s Zhejiang Geely Holding Group set itself up for the ultimate safety challenge. The company purchased the famously secure and boxy Volvo brand for $1.8 billion. The Washington Post reports that the acquisition risks tarnishing the brand without giving Geely the global boost it seeks.

In addition to improving safety records, the Chinese government and automakers are aiming to make the China auto industry a leader in greener cars. Billionaire Warren Buffett first shined the spotlight on the promise of China’s green auto industry in 2008 when he invested in BYD, a Chinese battery and electric car manufacturer.

Aside from the export value of greener vehicles, the Chinese government has a huge domestic interest in cutting fuel use and emissions. Thanks to the auto boom, China is now the second largest consumer of oil, behind the United States.

“China’s vehicle population is going to continue growing rapidly, possibly becoming the largest in the world sometime this decade,” says Vance Wagner, International Policy Adviser at the Vehicle Emission Control Center for the Ministry of Environmental Protection, China.

To help curb fuel use and emissions, China now has more strict fuel economy standards—36.7 miles per gallon—than the U.S., Canada, and Australia. “Gas guzzler” taxes also encourage Chinese buyers to purchase cars that get better mileage.Meanwhile, manufacturers hope to jump on the global green trend set by Toyota’s Prius.

Last year, Chinese automaker BYD announced it had plans to sell its 5-seat electric car, the E6, in the U.S. in 2010. But The Street reports a more recent press release suggests the company has rolled back its ambitious plans to produce a mere 100 E6 vehicles in the company’s home town of Shenzhen.

Regardless, analysts say electric cars are bound to gain popularity and momentum soon and BYD and other Chinese electric vehicle and battery manufacturers have set themselves up to catch that high-tech wave. Before we see BYD or other Chinese-brand and Chinese-made electric cars in the U.S., we’ll likely see Chinese-made electric batteries in American, European, Japanese, and Korean branded vehicles.

On the forefront of this move is electric carmaker Coda Automotive, which may soon open assembly plants in Los Angeles County, according to the Los Angeles Business Journal.

Although the company is Santa-Monica based, the Coda all-electric sedan would be manufactured primarily in China. The car’s chassis and other parts will be assembled in Harbin, and the batteries will be put together in the port city of Tianjin as part of a joint venture with one of China’s biggest battery manufacturers. The car and battery would then be shipped to the U.S. for assembly and sale, with a price tag of about $40,000.

Detroit will keep watch over its shoulder for China’s imminent move onto American home turf. From their own operations in China, they have a good view of what the Chinese are up to. Of special concern are the inexpensive, energy-efficient markets, where U.S. companies have lagged behind. But until a distributor is set up to begin selling Chinese cars, Peterson says, “it appears the Americans aren’t really concerned.” Perhaps they should be. American consumers are already primed to purchase Chinese cars when they finally do arrive.

Still, China is not entirely the evil enemy. Business is booming for Detroit-based companies in China today, and those partnerships are paying off at a time when sales in the U.S. have been less than stellar.

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Source:  Corey Binns  www.popsci.com

Neeraj Garg, Director, Volkswagen Passenger Cars, Volkswagen Group Sales India, says VW indeed had a very low brand recall in India. To correct that, Garg says, “the company opted for a continuous activity in the market because brand awareness always has a shelf life. We need to improve our brand awareness, we need to improve our reach. The fact that we have been successful in being different from others in the market is what is going to work for us”.VW is taking the “continuous activity” part quite seriously. Polo was the latest in a chain of six models ranging from compact cars to big sedans to giant sports utility vehicles launched in the last two years.

The company produces/assembles the Polo, Jetta and Passat in India while it imports the Phaeton, Touareg and Beetle. While Polo is manufactured in the company’s 110,000 units per year capacity Chakan plant, the Passat and Jetta are assembled at Skoda’s Aurangabad plant.And there’s more to come. VW is gearing up to launch a sedan in the mass market segment later this year. The new car in the mid-level category will compete against models such as Maruti’s SX4, Fiat’s Linea, Hyundai’s Verna and Ford’s Fiesta.

It is also working on a car that would replace Polo in the entry-level segment. VW hopes this will generate almost double the volumes compared to Polo, which will remain its flagship premium, yet volume generating car. All these initiatives are expected to increase the VW group’s share in India from the current 1 per cent to 10 per cent in the next five years.What makes VW’s gameplan in India all the more interesting is its decision in December last year to pick a significant minority stake in Suzuki. Though the details are sketchy, there has been intense speculation in industry circles that the tie-up will lead to joint development activities in India – a country where Maruti makes one in two cars sold.

With so much at stake in India, VW figured out that it needed to make a huge noise about its challenger status in India. So when it launched Touareg and the New Beetle Sedan late last year, VW did the most expensive print advertising campaign in India with a multi-crore roadblock campaign across all editions of India’s largest English daily, The Times of India. Roadblock refers to an advertiser paying a premium to black out all other advertisers.

Mumbaikars also saw other initiatives such as a giant banner in the sky displaying the new Beetle and the VW logo – a first such campaign for any automobile manufacturer.The company is now looking at more innovative ways for taking its brand forward in a tough market, which is controlled by only three manufacturers – Maruti Suzuki, Hyundai Motors and Tata Motors with combined sales of well over 1.4 million units (as of March 31, 2010).

Lutz Kothe, chief general manager, marketing and public relations, Volkswagen Group Sales India, says innovation is the way to go. “Our cars carry innovation and so our marketing campaign should also carry innovation. We had to do something which could make India talk about us. We had a significant double digit jump in sales after the campaign,” Kothe says.But will good cars and innovative campaigns be enough for a late entrant like VW to take on the established leaders in areas of technology, distribution and reach?

The jury is out on this. While many point to the uphill task that a late entrant like VW has in building its brand in India, VW executives are confident. “The loyalty factor for auto brands”, says Kothe, “is quite low in India compared to other markets. This means customers are looking for newer things in their cars. We do not see a situation where we have to pull customers, they are and will readily come to us”.Adds Garg: “The Indian car market is going to grow to three million units from 1.7 million units in another three to four years time. That gives enough opportunity to all players for expansion”.VW has also been building distribution. It presently has about 25 stand-alone dealers and intends to take it up to 40 in India as the company does not want to utilise the dealer resources of its sister brands for distribution. There will be gradual ramp-up in the number later with the next phase of expansion planned for areas outside the main cities.

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Source: Business Standard 29-4-2010