Tata Nano Versus Chinese “Nano” Cars

Tata Motors has made one of the world’s finest and cheapest small cars the world has ever seen. Lots of companies had reasons to rival the Nano here in India, the Bajaj-Renault plan, for instance. To rival a car like the Nano, it has to be dreamt first, then only one can get to design it. There should be an emotion as well as devotion behind the plan (Ratan Tata’s dream of a family inside a car rather than on a scooter). Finally, the most important thing – market rivalry, because of which companies like Bajaj-Renault or GM-Saic have announced there ambition to make a Nano rival.

Now a news has come in.  A company in China, called Jotye,  has come up with another Nano rival, Jiangnan Alto, which could cost  $600 more than the Tata Nano!  This model is based on the Maruti 800 platform which was bought from Suzuki in 2007. This firm has partnered with Premier Motors, the maker of the Rio SUV in India. The best part of though is, despite loosing to the Nano in terms of price, top models of both cars have a lot of features in common.

Features like radio, passenger side mirror, air conditioning, ABS , number of windshield wipers, number of engine cylinders, cubic capacity, power output and top speed have been compared in a chart released by the company. The Jiangnan Alto has outperformed the Nano in every single avenue. So, you just have to pay a bit more for the Jiangnan Alto, but who cares, this is the real deal man! Also, there have had been news of Nano’s erupting into flames, so this time the Nano has lost its ground badly.(Apart from the fact that now, Nano’s have joined the league of Ferrari’s and Lamborghini’s .

However, if you compare Nano’s Euro IV engine with the Euro II of the Alto, it is better. Also, Nano has rear wheel drive, which means more fun .

Still these statistics don’t give the Nano it’s deserved credit. However, Tata’s have a different strategy altogether. If you wish to know what it is just see these videos. It is clear how the little Nano has survived from these kinds of tests. Further more Ratan Tata is hoping the Nano will get a minimum of 3-star rating in EuroNCAP crash test rating with airbags and ABS. So, what say, Chinese cars?

Ford’s Mulally Says U.S. Auto Sales Are Rebounding

Ford Motor Co. Chief Executive Officer Alan Mulally said auto sales are improving as the U.S. economy arrests its decline and praised President Barack Obama’s efforts to fight the recession.

“The auto business is pretty steady and coming back up a little bit,” Mulally, 65, told reporters today at the University of Michigan in Ann Arbor. “We’re right there at the bottom, and if we get this economic development expansion, we’re going to be fine.”

Since arriving from Boeing Co. in 2006, Mulally has revived the second-largest U.S. automaker by bolstering the namesake brand and improving quality. Redesigned models such the Taurus and Fusion sedans helped propel the automaker’s U.S. sales to a 17 percent increase this year through August, double the industrywide gain of 8.4 percent.

Ford was the only major U.S. automaker that didn’t file for bankruptcy last year and didn’t require a government bailout. The company earned $4.7 billion in the year’s first six months, its largest first-half profit since 1998.

“I am so encouraged by the laser focus the administration and the Congress has on additional steps to really get our economy going again after one of the toughest recessions we’ve ever had,” Mulally said. “It’s coming back slower than past recessions, but I know we’ll figure it out.”

Consumer Confidence

Confidence among U.S. consumers dropped to a one-year low in September, according to the Thomson Reuters/University of Michigan preliminary index of consumer sentiment released today. The index fell to 66.6 from 68.9 in August, less than the most pessimistic forecast in a Bloomberg News survey, indicating the biggest part of the economy is being handcuffed by a struggling labor market.

“The pent-up demand is tremendous; the world is really ready to buy a car,” Mulally said. “We just need a little bit more consumer confidence to know we’re growing the economy.”

Barclays auto analyst Brian Johnson yesterday raised Ford’s rating to “overweight” from “equal weight” and said the shares may rise to $16 in a year, $1 higher than his previous target.

Ford rose 5 cents to $12.49 at 4:15 p.m. in New York Stock Exchange composite trading. The shares have gained 25 percent this year

Paris auto show: Saab to debut first electric car

Saab's first-ever electric car will debut on the Swedish automaker's stand at the Paris motor show late this month.

The ePower, a converted Saab 9-3 SportsCombi wagon, is equipped with a 184-hp electric motor. Saab says the ePower will accelerate from 0 to 62 mph in 8.5 seconds, have a top speed of 93 mph and have a range of about 124 miles on a single charge.

Saab engineers fit the ePower's lithium-ion battery pack into the space that normally would be taken up by the exhaust and fuel systems. The batteries can be recharged in three to six hours, Saab says.

The automaker plans to build a fleet of 70 ePowers to be tested in Sweden, beginning next spring.

Saab is also using the Paris show to roll out three new powertrains for the larger 9-5:

-- A 2.0-liter turbocharged BioPower engine will run on E85 and produce 220 hp at its peak. Saab says it will bring this engine to the U.S. market.

-- A new 2.0-liter two-stage turbocharged diesel will produce 190 hp. It can propel the 9-5 from 0 to 62 mph in less than 9 seconds.

-- A 1.6-liter turbocharged gasoline engine will accelerate the 9-5 from 0 to 62 mph in 9.5 seconds and is rated at 180 hp.

eBay registers first car deal in India with Nano

Global on-line retail major eBay on Thursday said an Indian American doctor made the first global car purchase on eBay India Motors.

According to the company, Minhaj Naiyer bought a Tata Nano for his family based in Varanasi through eBay Motors from a Mumbai dealer.

"After looking at various options, I turned to my trusted source eBay. I logged onto eBay India Motors and to my luck found a Nano listing," said Naiyer.

According to the company, Naiyer won the auction for the 2010 Nano LX at Rs.180,000 and completed the transaction.

"This is the first international car purchase made on eBay India Motors and we are glad that we are enabling customers to benefit from the great deals and convenience the website has to offer," said Ashish Shah, head, eBay India Motors.

eBay Motors has been in the retail business for the trade of used cars, bikes, and commercial vehicles for over eight years now.

Supercomputer to make driverless car a reality?

Imagine a car that can drive itself to your desired destination notwithstanding the traffic and other hurdles. Scientists say this could soon be a reality.
Researchers at Yale University and New York University have developed a supercomputer based on human visual system that they say could allow cars to drive themselves.

Dubbed NeuFlow, the system takes its inspiration from the mammalian visual system, mimicking its neural network to quickly interpret the world around it, said lead researcher Eugenio Culurciello of Yale’s School of Engineering and Applied Science.

Culurciello, who presented their research at the High Performance Embedded Computing (HPEC) workshop in Boston, said the system uses complex vision algorithms developed by Yann LeCun at New York University to run large neural networks for synthetic vision applications.

According to the scientists, NeuFlow processes tens of megapixel images in real time in order to be able to recognise the various objects encountered on the road, such as other cars, people, stoplights, sidewalks, not to mention the road itself.

The system is also extremely efficient, simultaneously running more than 100 billion operations per second using only a few watts (that’s less than the power a cell phone uses) to accomplish what it takes bench-top computers with multiple graphic processors more than 300 watts to achieve.

“One of our first prototypes of this system is already capable of outperforming graphic processors on vision tasks,” Culurciello said in a statement.

“The complete system is going to be no bigger than a wallet, so it could easily be embedded in cars and other places.” Beyond the autonomous car navigation, the scientists said, the system could be used to improve robot navigation into dangerous or difficult-to-reach locations.

City to get luxury car cabs-Mumbai

Mumbaiites will soon have luxury cars such as Toyota Corolla, Honda City, Tata Manza and Toyota Innova as taxis for commuting in the city. The state transport department has given its nod for inclusion of these car models in the city’s taxi fleet after transport minister Radhakrishna Vikhe-Patil held a meeting with transport officers and representatives of the car manufacturers.

The transport department would decide on a tentative date for introducing these taxis on road once they get opinions from their own department, RTOs and automobile manufacturers, who have been asked to suggest newer models to replace the Premier Padmini taxis.

“We are meeting the automobile manufacturers and asking them to enhance the speed of delivering newer 1,000 cc-plus models as taxis. We are also looking at adding bigger cars like Innova in the taxi fleet,” said Vikhe-Patil. The manufacturers would also be asked to provide soft loans to taxi drivers with lower interest rates for purchasing the new models.

According to transport department officials, the demand for including sedans also came from taxi operators, who want to serve premium segment customers. However, the tariff for these sedan taxis is yet to be decided.

Also, in the long run, the transport department is planning to do away with its policy to scrap vehicles older than 25 years. “The policy of scrapping all taxis older than 25 years would be changed as the taxi union has promised to replace all vehicles within three years,” added Vikhe-Patil.

Meanwhile, the transport department would soon call for re-tendering of the special scheme of selling 4,000 permits to fleet cab owners. Only a fortnight back, the department received an unenthusiastic response from bidders, with only one of the 20 bidders, who initially showed interest, submitting the tender.

The department is also keen on bringing in newer permits for black and yellow taxis in the future, in case the transformation of taxis with newer models is a success.

Ford plans to launch 8 new vehicles, make India export hub

Car maker Ford India said it plans to launch eight new products in India by mid-decade, with a view to tap the country's fast growing auto market and to make it an export hub.


Company Managing director Michael Boneham told reporters here that a significant part of the eight products would be "localised".


To a question, he said the company 'has to be there in the small car segment'. He, however, did not divulge details or confirm whether it would mean being present in the sub Rs three-lakh segment.


Boneham was speaking after unveiling the Ford Endeavour three litre 4x2 automatic transmission model.


Since inception, Ford has invested close to one billion dollars to expand its India operations. The company infused 500 million dollars in January 2008 to grow the vehicle manufacturing capacity in Chennai to produce 200,000 units per year and to set up a new state-of-the-art engine manufacturing plant with a capacity of 250,000 units both for domestic and export markets.


Overwhelmed by the response received from India Boneham said that Figo has had a "fantastic" response with 30,000 cars sold in the first 25 weeks in India. Boneham said that the company "plans to be a serious player in India" and would "continue to invest in India" to grow and mark our presence across segments.




Besides, he added that Ford India is optimistic about growth in the Rs 15-20 lakh segment as well going by the strides taken by the economy.

He, however, admitted that there are issues over raw material and input costs in terms of logistics and transport. The company would observe what the competitors do before coming up with a strategy, he added.

Talking about the growth plans he said it encompasses exporting to 50 new markets, including South Africa where Figo is among the top 10 players. "They are chasing us for more products but there are supply constraints," Boneham said.

The other markets it hopes to cater from India include Mexico and northern Africa.

Commenting on recruitment plans he said there are plans to hire engineers and technicians to make up for attrition levels, which are as per industry standards.

Design 'wraps' offered by Maruti for A-Star car

To boost sales of the A-Star, Maruti Suzuki’s compact car targeted at the youth segment, the company today introduced the concept of ‘wrapping’ for the first time in the Indian market.


The company will introduce 16 designs and offer options. Shashank Srivastava, chief general manager, marketing, Maruti Suzuki India, said: "Unlike other products from Maruti, the A-Star is specifically targeted at the youth segment. This special accessory pack will provide customers an opportunity to customise to reflect their attitude.." Sixteen such designs, priced at Rs 11,000 each, would be made available to existing and new A-Star consumers. The company intends to launch another 34 designs over the coming month

Baoshan Steel, Geely to Cut Chinese Auto Weight, Compete With Volkswagen

Baoshan Iron & Steel Co., supplier of half of China’s auto steel, is working with Chinese carmakers to cut vehicle weight by as much as 10 percent to meet the standards of market leaders including Volkswagen AG.

Chinese cars are 5 percent to 10 percent heavier than competing models, and reducing the weight will shave 6 percent to 8 percent off fuel consumption, said Wang Li, head of auto sheet research and development at Shanghai-based Baoshan Steel. Geely Automobile Holdings Ltd., whose parent bought Volvo Cars, and four Chinese carmakers are part of the project.

Automobile sales in China surged 46 percent last year, as demand for Volkswagen and General Motors Co.’s vehicles helped the nation overtake the U.S. as the world’s biggest market. The rising sales add to pollution and fuel consumption, making it harder for the Chinese government to meet energy efficiency and gas emission targets.

“To cut the car weight and make them more energy efficient is to make the industry stronger in competition with their European and Japanese rivals,” said Tianshu Xin, a Shanghai-based managing director at consulting company IHS Global Insight. “China wants its car models to catch up with global peers in 5 to 10 years.”

Of the top 10 car models in August, three are designed by domestic automakers. The rest, including Volkswagen’s bestselling Jetta, were made by joint ventures of General Motors, Volkswagen, Hyundai Motor Co. and Toyota Motor Corp.

An alliance of Baoshan, Geely Automobile, FAW Group Corp., Chery Automobile Co., Dongfeng Motor Corp., Chongqing Changan Automobile Co. will contribute 500 million yuan ($75 million) to the weight reduction project, Wang said in an interview in Shanghai. Southwest Aluminum (Group) Co., a unit of Aluminum Corp. of China Ltd., will also take part, he said.
Stronger Steel

“We aim to cut their car weight to match overseas rivals by 2013,” Wang said. “Our work is to make automotive steel thinner and stronger.”

China increased the number of cars eligible for a subsidy for fuel-efficient car models in August, according to J.D. Power & Associates. The world’s biggest emitter of carbon dioxide is giving buyers a rebate of 3,000 yuan for energy-efficient cars, as it seeks to cut output of the gas per unit of gross domestic product by 40 percent to 45 percent by 2020 from 2005 levels.

The government wants to reduce fuel consumption to 6.6 liters on average for every 100 kilometers driven in three to five years from an average 8.13 liters, Xin from IHS said.

Carmakers are also seeking lighter material substitutes, including using aluminum alloy for the cover of engines and plastics for some pipes, Xin said.
Supplying Overseas

General Motors and Chrysler Group LL are testing high- strength steel made by Baoshan in U.S. laboratories for use as anti-collision components including the B-pillar, a vertical roof support between the front and rear doors, Wang said.

The Chinese company may supply such products to overseas factories of the carmakers should they pass tests, Wang said. The evaluation process may take a few years, he said.

“We’re trying to take the leadership in technology development among our global peers,” Wang said, identifying Luxembourg-based ArcelorMittal and Japan’s Nippon Steel Corp. as the benchmarks. “This is the highest level of our work, and to keep ahead of others is the most difficult part.”

Baoshan will supply steel to new car models Nissan Motor Co. plans to introduce in China in the next two years, Wang said. Traditionally, automakers use steel made by Japanese or European mills for models first introduced in China, he said.

Nissan, Japan’s third-largest carmaker, plans to introduce a new passenger-car brand in China from early 2012, it said Sept. 8. It will become the second

Japanese carmaker, after Honda Motor Co., to have a new China-only brand.
Baoshan Steel’s total annual capacity for automotive steel will reach about 5 million metric tons this year, Wang said.
“To own half of the domestic market has been one of our key strategies,” Wang said. “We must plan for the future to ensure this share is maintained, say, after 2015.”

Buying a used car - know your consumer rights

The number of consumer complaints about used cars from dealers has increased, so make sure you know your rights before you buy.

In this economic climate, more and more of us are making the decision to buy a second hand car, but how do you avoid being taken for a ride?

New figures from the Office of Fair Trading (OFT) have revealed that complaints about second hand cars bought from independent dealers continue to top the list of calls to advice service Consumer Direct, and the numbers of complaints are increasing.

The research suggests that the average cost to car owners is £425 to resolve faults that were the dealer's obligation to correct. So how can you avoid the pitfalls of buying a used car?
Firstly, make sure you ask the dealer the right questions such as:

•  what mechanical history and mileage checks have they done on the car you want to buy?
•  how many former owners has the car had and is the full service history available?
• has the car been modified from its original specification?
•  is it an ex-hire car or similar?

Ask for important information and answers to your questions to be put in writing before you buy so you have proof of claims - don't just rely on verbal claims or promises by the seller.

Find out about the dealer's customer complaint procedures and whether they are signed up to a code of practice - if a problem does arise after the sale you need to know who to contact.

Remember that if you buy a car from a private seller or an auction, you may pay less but you will have fewer legal rights than when buying from a dealer.

Auto fuel dealers divided on Sept 20 strike

Petrol pump dealers are divided over the timing of the strike slated for September 20.


While Ajay Bansal, general secretary of the Federation of All India Petroleum Traders claimed he had received confirmation from 28 state associations, managing committee member Ravi Shinde said 14 states have decided not to participate in the strike.



Bansal told Business Standard: “Those who will not join the strike will attract disciplinary action. I have confirmation from 28 state associations. I reiterate that majority of the petrol pumps across the country will be closed from 6 am on September 20, barring a few in Gujarat and Mumbai. There will be no sale and purchase of auto fuel in these petrol pumps.” 


He alleged that the decontrol of petrol was just on paper, as every now and then oil marketing companies are approaching the petroleum ministry for seeking assistance.

He said discussions with the petroleum secretary and officials of OMCs failed and their demands on fixing a margin for dealers on percentage basis and removal of penalty provision in marketing discipline norms were not addressed. Further, there was no plan to decontrol diesel.

However, Shinde said 14 states including Maharashtra, Gujarat, Andhra Pradesh and the north eastern states, at their meeting held on September 8, have decided not to join the strike.

“The timing is quite wrong, especially when the Commonwealth Games are going to start next month. These states have argued that one problem in regard to increase in margin has been resolved by the petroleum minister and other issues relating to percentage based margin, change in marketing discipline guidelines and the ministry’s decision to encourage addition of another 62,000 petrol pumps across the country can be taken up for negotiations,” he said.

Shinde argued the present provision of a penalty was not acceptable to petrol pump dealers, as it was against the provisions of the Constitution.

Cab, auto stands to ease travel woes at pandals

Devotees visiting Ganpati mandals across the city will no longer have to worry about getting a taxi or autorickshaw to get back home. The state transport department has asked all three Regional Transport Offices (RTOs) to setup temporary stands near pandals to ensure that commuters have easy, quick

access to taxis and autorickshaws.

The vehicles would be made to queue up outside the Ganesh mandals, depending on where the drivers are heading. “The idea to make it easy for commuters to catch an auto or taxi as the drivers would be asked to park depending on where they are heading at the end of the day. So, there is no question of the drivers refusing fare,” said an official from the RTO.

This facility would begin from September 15 and would be operational till the last day of the festival. RTO officers are currently scouting for nearest permissible spots outside the pandals, where the stands would be setup after going through the security aspects. The stands would also have RTO officers managing the taxi and auto queues.

“Passengers shouldn’t be inconvenienced during the festive season. This initiative would benefit all devotees coming to Ganpati pandals,” said Radhakrishna Vikhe-Patil, transport minister. Some of the important Ganesh mandals where the facility would be available are Lalbaug, Veera Desai Road and Tilak Nagar.

Meanwhile, the transport department will also inaugurate the share-a-rickshaw stand on September 16 at Bandra (East) and Santacruz (East). The department will begin with 11 new routes for share-a-rickshaws and also undertake measures to ensure that the existing 75-odd stands in Mumbai operate at the fullest.

India looking for cooperation from EU in auto, component sector

Inviting the European Union to partner with India in automobile manufacturing and the auto component sector,  Secretary, Department of Heavy Industry, B S Meena said that there is huge potential for the growth in these areas.

Meena said the huge potential for growth of the Indian automobile and the auto component sectors holds out tremendous possibilities for the EU-member states to partner and cooperate with India in areas such as automotive R&D, cleaner and environmentally friendly vehicular technologies, intelligent transport systems, inspection and maintenance, rapid and vehicular safety and frugal engineering.

However, the Secretary cautioned that the most important challenge is to ensure that this growth is accompanied by strategies aimed at mitigating the adverse impact of vehicles on the environment. 

Addressing a FICCI Roundtable on 'India-EU Cooperation in Automotive Industry' in the national capital on Monday, Meena said, "The Government of India is very keen to encourage alternative fuels, drives and electric mobility, including hybrid vehicles, as also the manufacture of such vehicles in India."

He also said that the Government would soon set up an empowered mechanism to facilitate the roll out of a sustainable mobility plan that mitigates the impact of road transportation on the environment and lowers the dependence on fossil fuels.

Replying to Indian secretary's statement, Ambassador- Head of the Delegation of the European Union to India, Daniele Smadja said, "We are always open for cooperation in the area of Indian automobile and component industry. Not only the car industry, but also the auto component sector is also a very important sector for growth and have grate potential."

Georgette Lalis, European Commission's Director for Enterprise and Industry, said, "The EU was keen on close collaboration with India in the automotive and component sector within the framework of the 1958 agreement."

The European Commission, she added, is keen on finalising an informal cooperation agreement with India on international standards on automotive safety and environment & quality issues at the EU-India Summit in December at Brussels.

Toyota to Launch Six New Hybrids by 2012

Toyota Motor Corp. will introduce six new hybrid, gasoline-electric vehicles by 2012 on a global basis, the company's chief engineer said Monday in a presentation in Detroit.

The auto maker also will show off its new RAV4 electric sport-utility vehicle developed in conjunction with Tesla Motors Inc., said Takeshi Uchiyamada,

Toyota's global chief of engineering and product development. Toyota expects pure electric cars to be a small portion of its overall fleet—and concentrated on very small, shorter-range vehicles and motor scooters.

Toyota plans two new Lexus models and four Toyota models with hybrids. There will be some that are only hybrid models—like the Prius—and some that have a gasoline-engine variant. All of the hybrids will be new, and not next-generation versions of existing hybrid models, Mr. Uchiyamada said.

"Based on the current battery technology, it is not feasible to have all-electric vehicles" for the entire fleet, Mr. Uchiyamada said. "As battery technology gets better, that transition will lead to more pure electronic vehicles. Liquid fuels are still a superior fuel because of their energy density."

Toyota will begin selling the plug-in Prius, which isn't included in the six new models, in the spring of 2012. The Prius will get 13 miles on a full charge of electricity before the gasoline engine kicks on. Later models may offer the option of paying more for a longer range on the battery charge, he said.

Mr. Uchiyamada is considered the "father" of the hybrid-electric vehicle by Toyota, leading the first Prius program. He also is leading the company's efforts to integrate Tesla Motors technology into the new RAV4 electric vehicle, which will be shown at the Los Angeles auto show in November and is due out in 2012.

The auto maker also is working on a hydrogen fuel-cell-powered electric vehicle that would go on sale in 2015. Mr. Uchiyamada said the company intends to reduce production costs of the hydrogen vehicle dramatically.

In July, Mr. Uchiyamada announced changes at Toyota to lengthen product-development times by at least a month to do extra inspections on vehicles. He also oversaw the move of 1,000 engineers into a product quality division and is trying to limit the use of outside contract engineers. The auto maker has been plagued by safety recalls in the past year for unintended acceleration, engine, steering and brake problems. More than nine million vehicles in total have been affected by the recalls.

Toyota's sales in the U.S. have been hurt as a result. The Toyota brand market share in the U.S., excluding Lexus, has fallen this year to 13.3% through August, compared with 14.7% in the same period a year earlier.

Smile, you're an auto driver

The Bangalore City traffic police plans to launch a special drive to educate autorickshaw drivers on how to relate to the public, particularly passengers, across the city.

The police will train some 40,000 auto drivers and counsel them to behave better with passengers. The traffic police will select drivers for training from autorickshaw stands.

A detailed proposal on the special drive has been chalked out and will be implemented in phases, given the fact that it is an arduous and time-consuming exercise.

The first programme will be held near Byatarayanapura traffic police station off Mysore Road on Tuesday. The police will rope in private companies and organisations in their attempt to teach autorickshaw drivers to earn goodwill, Deputy Commissioner of Police (Traffic North) Panduranga H. Rane told The Hindu here on Monday.

The sessions

The traffic police are in touch with the Bangalore Metropolitan Transport Corporation (BMTC), Karnataka State Road Transport Corporation (KSRTC) and the Education Department to have the sessions on their premises. They may also book convention halls, choultries and private halls, Mr. Rane said.

City Police Commissioner Shankar M. Bidari said: “Commercial drivers, including autorickshaw drivers, should follow rules to ensure smooth flow of traffic.” The police, Law Department, Karnataka State Pollution Control Board and the RTO Department will orient the drivers on their profession.

Action by police

Meanwhile, the City Police have decided to act against autorickshaw drivers, including seizing their vehicles, if they misbehave with passengers and the police.
Around 80,000 autorickshaws ply on the city's roads and the police receive at least 200 complaints every day against the drivers with some 12,000 cases booked this year alone.

The police have asked the RTO to cancel the permits of 500 autos for prima facie violating rules, Assistant Commissioner of Police (Traffic-Central) A. Nagappa told The Hindu.

Fed up passengers

“Passengers are tired of auto meters that [fraudulently inflate the fares] and of drivers who refuse to ply and demand return fare. They harass women, children and elders. They never pick up passengers from pre-paid auto counters. Also, the auto drivers assault passengers if they protest. These are the common complaints,” said Mr. Rane.

The police are legally mandated to seize the vehicles if drivers restrain officials from discharging their duty, he said.

Hyundai unveils BlueOn passenger vehicle-South Korean

South Korean President Lee Myung-Bak test drives the BlueOn, Hyundai's first all-electric, full-speed car for the domestic market. Picture by AP Source: AP

HYUNDAI today unveiled the BlueOn, the first pure electric, full-speed vehicle for the South Korean market.

The South Korean government hopes the country will have 1 million electric cars by 2020.

Hyundai Motor, which has invested 40 billion won ($36.8m) in the past year developing an electric car powered by a lithium-ion polymer battery, will expand output capacity next year to produce the BlueOn, the company said in a written statement.

The South Korean government is encouraging the development of a mass produced electric-vehicles industry in the hope that production of small electric cars can begin in 2011 - two years earlier than originally planned - and medium-size electric cars in 2014.

“As major governments in the US, Japan, Germany and China are aggressively adopting plans to provide electric vehicles, we also recognised going to electric vehicles is not an option but a ‘must’ for the automobile industry,” an official at the Ministry of Knowledge Economy said.

The government hopes that by 2020, 20 per cent of passenger cars in South Korea will be solely electric. Subsidies and tax incentives to promote sales of electric vehicles will be offered once the vehicles begin rolling off production lines.

“Consumers' interest in and demand for user-friendly cars are rising, and securing such advanced technology is critical in becoming an industry leader,” said Lee Hyun-soon, vice-chairman at Hyundai Motor's corporate research and development centre.

Hyundai Motor said it will produce 2500 BlueOn vehicles for the domestic market by the end of 2012. The BlueOn is based on Hyundai's i10, a small hatchback.
SK Energy will be the initial supplier of lithium-ion batteries for the BlueOn, the car-maker said.

One drawback already identified with the lithium-ion batteries is the seven-hour recharge time and the relatively high cost of the unit, which is fixed in the car's engine.

The government said it will conduct a feasibility study on whether a new type of battery system can be developed so an electric car comes with two batteries, one of which can be recharging while the other powers the vehicle. The government's study into so called exchange batteries will be carried out in the first half of 2011.
If the study finds high enough demand for battery-exchangeable vehicles, it will assist in the development of the cars starting in 2012, the ministry said.

“To be a success in the market, electric cars should carry a reasonable price tag and most of all there should be recharging infrastructure for electric cars,” the ministry official said.

Iraq car wreckage goes on display at Imperial War Museum

A rusting, crumpled car was today placed in the main atrium of the Imperial War Museum in London surrounded by some of the most powerful military hardware of the last 100 years. It's message was simple – this is what war does.

Called simply 5 March 2007, the car is a piece by artist Jeremy Deller. Before it was salvaged, the vehicle was mangled in a street bombing that killed 38 people and wounded many more at Baghdad's Al-Mutanabbi book market, a place at the heart of the city's cultural and intellectual life. No-one has claimed responsibility for the attack.

The museum hopes the car will serve as a sobering reminder of the impact of war on civilians. Deller said he could not think of a better home for it in the UK: "I'm very happy that the Imperial War Museum has taken this object into its collections and is putting it on such prominent display."

Diane Lees, the museum's director-general, said: "It's a privilege to work with an artist like Jeremy Deller and we are incredibly grateful for the insight and effort he's invested in the acquisition and installation of this remarkable exhibit.

"We hope it will prove a thought-provoking addition to our permanent collections and encourage visitors to consider not just this car, but all our exhibits, in a new light." The car will go on display at IWM North in Manchester in April. It was donated by the New Museum in New York, where it was part of Deller's It Is What It Is project.

Deller, who won the Turner prize in 2004, is perhaps best known for recreating the battle of Orgreave from the miners' strike. The car was beaten for a place on the fourth plinth in London's Trafalgar Square by Antony Gormley's One and Other idea, in which members of the public occupied it for an hour at a time.  

Global Auto Industry Outlook Dims as U.S., China Markets Slow

Unemployment in the U.S. and government measures to cool China’s economy are damping demand in the world’s two largest car markets, weakening the outlook for the industry.

U.S. auto sales in August were the worst for the month in 28 years, while China’s passenger-car deliveries to dealerships increased at the slowest pace in July since March 2009.

Sales are faltering after governments withdrew stimulus measures that propped up sales in the U.S., China, Europe and Japan. The bleaker prognosis for sales may also hurt profitability as automakers including Toyota Motor Corp., General Motors Co. and Volkswagen AG are forced to offer higher incentives to lure customers.

“The U.S. economy is looking downward, with high unemployment, mounting bankruptcies and other indicators that don’t paint a pretty picture,” said Yuuki Sakurai, chief executive officer of Fukoku Capital Management Inc. in Tokyo. “In China, the government is putting on the brakes so that the overall economy won’t overheat.”

At Toyota, the world’s largest carmaker, Japan-based dealers began offering incentives for the nation’s best-selling Prius hybrid even before government subsidies of up to 250,000 yen ($3,000) ended on Sept. 8. Christian Klinger, sales chief at Wolfsburg, Germany-based VW, said last month that the operating environment is becoming more difficult.

“Now that incentive programs have come to an end, the global automotive market is expected to decline in the second half,” Klinger said in an e-mailed statement on Aug. 13.

‘Cash for Clunkers’

In the U.S., September deliveries may rise as sales plunged a year ago after the August 2009 end to its ‘cash for clunkers’ program, which offered subsidies for the buying of new cars. Even so, Standard & Poor’s last week lowered its 2010 U.S. sales forecast to 11.3 million vehicles from 11.5 million.

“August new light vehicles sales were worse than we expected,” Efraim Levy, auto analyst for Standard & Poor’s Equity Research in New York, wrote in a Sept. 3 note. “With elevated unemployment, weak housing and retail, and stock market volatility, we see consumers remaining cautious.”

Global growth in auto sales may be limited to 10 percent to 70.4 million vehicles in 2010 and 7.1 percent next year, according to researcher J.D. Power & Associates.

To boost sales, dealers may sacrifice profitability. Frank Ursomarso, a dealer in Wilmington, Delaware, who sells GM, Honda Motor Co. and Bayerische Motoren Werke AG cars, is attracting buyers by offering to “exchange” their higher priced car for a model with a lower monthly payment.
‘Hitting a Chord’

“That’s hitting a chord with people,” Ursomarso said. “That confirms for me that there is a compression of confidence. People are concerned they may lose their job or that they’re in too much car.”

The U.S. Labor Department reported Sept. 3 the unemployment rate rose to 9.6 percent last month from 9.5 percent in July and overall employment fell 54,000 for a second month. August sales in the world’s largest auto market after China plunged 21 percent to their lowest since 1982.

In Europe, a slump has been underway longer. Vehicle sales in western Europe will dip 8.2 percent this year to 12.5 million units, the lowest figure since 1995, according to IHS Automotive. Sales will likely be little changed next year, according to Ian Fletcher, an IHS analyst in London.

The decline is largely due to the end of government incentives in countries including Germany, the U.K., and Italy, which prompted many consumers to push forward their car purchases, Fletcher said.
China Reliance

Growth in China has slowed after the government raised taxes on small cars at the beginning of this year. Sales growth in August was 18.7 percent, compared to 90 percent a year earlier, the China Association of Automobile Manufactures said Sept. 9.

China has “slowed somewhat, but it’s still obviously very healthy growth albeit with some price pressure,” Chris Liddell, GM’s chief financial officer, said on an earnings call with investors on Aug. 12.
GM, the biggest overseas automaker in China, said its unit growth was 19.2 percent in August, the worst rate in at least 17 months.

"China has been incredibly strong the last 18 months, and I expect a lot of moderation in the latter part of the year,” said Ashvin Chotai, London-based managing director at Intelligence Automotive Asia Ltd.
Free Insurance

Wang Ya Fei, a dealer at FAW-Volkswagen’s new outlet at Hunan Road in Shanghai is offering a 3,000 yuan ($440) discount and free car insurance for its Bora and Sagitar models as sales growth slows.

“We don’t have a fixed date to end our promotions,” said Wang. “We will continue to offer them as long as the market offers promotions.”
Car sales in Japan, the biggest car market after China and the U.S., are expected to plunge 23 percent in the six months beginning in October from a year earlier, according to the Japan Automobile Dealers Association, after a government subsidy program for fuel-efficient cars ended this month.

Toyota’s Japan sales in the fiscal second half from October may drop 28 percent, led by the Prius, according to Yoshiaki Kawano, a Tokyo-based analyst at consulting company IHS Automotive. Honda’s Japan sales may drop 21 percent to 290,000 from 367,718 a year earlier, the carmaker’s Executive Vice President Koichi Kondo said July 30.
Ford, Toyota

Even as other markets slow, India and Russia are major market offering growth opportunities. Volkswagen, Ford Motor Co. and Toyota are increasing output and rolling out new models in Russia. Sales in the resource-rich nation will advance 13 percent in 2010 to 1.7 million vehicles, executives from the three automakers said last month.

In India, demand for cars is exceeding expectations, Suzuki Motor Corp. Chairman Osamu Suzuki said in New Delhi on Sept. 7. Toyota customers wait as long as three months for its Innova minivan and more than six months for its Fortuner sport-utility vehicle, the company said.

Indian passenger-car sales jumped 33 percent from a year earlier to a record 160,794 in August, the Society of Indian Automobile Manufacturers said Sept. 9. Annual sales may reach 3 million by 2015, doubling from last year, according to the group.

“We are seeing a change in the tide of what’s driving global auto sales,” J.D. Power’s Schuster said. “The emerging markets are paving the way to the future because that’s where most of the growth is.”

Carnation Auto signs MOU with New India Assurance

Carnation Auto, the country's first Multibrand auto solutions company, on Wednesday said it was planning to increase its Mobile Repair workshops from the present 30 to least 100 this year.

These Workshops on Wheels (WOW) provides services at the door step of the customer. This will be a fairly important catalyst in after sale market, Carnation Auto Chairman and Managing Director Jagdish Khattar, told reporters here. The company has 30 such workshops in the country and by the end of the year, plans to take it to 100, he said.

Khattar on Wednesday signed an MOU with the New India Assurance, Girish Raj, Chief Regional Manager, to offer cashless insurance cover in kochi.

The partnership would provide the customers of New India Assurance in Kochi hassle free processing of insurance claims right from intimation of claims till its settlement. The policy holers would also be offfered a wide array of benefits and value added services at the Caranation Auto hub here.

Khattar said that through the cash-less tie-up, the aim is to provide customers a hassle free claim settlement in addition to a bouquet of value offerings from Carnation Auto. The service offerings and state-of-the-art technology of Carnation Auto is aimed at providing solutions for the entire auto needs of a Car owner under one roof.

The emphasis would be on repair rather than on replacement of auto parts, which would be benefical to customers, he said.

Carnations Auto, which presently has 10 verticals, including Body shop and repairs, parts, accessories and value added services, has set up 21 operations hubs with 583 bays across 14 cities with 5 more in the pipeline, including at Jaipur, Kudihana and lucknow.

Girish Raj, Chief Regional Manager, New India Assurance, said the tie up will enable customers to have access to Carnation's hassle free insurance claim process and to experience the state of the art accidental repairs facilty at Carnation Auto.

By 2012, Carnations will provide complete auto solutions across the country.

Car manufacturer Audi opens showroom in Mumbai

German luxury car manufacturer Audi Wednesday announced the opening of its new showroom in Mumbai displaying a range of cars.

The Audi model range in the new showroom includes Audi A4, Audi A6, Audi A8, Audi Q5, Audi Q7, Audi TT and the sports car Audi R8.

'India is a key growth market for Audi in the region. Audi is focused on strengthening its national footprint to 18 locations by end of 2011 to cater to the fast growing demand for luxury automobiles in India,' said Andre Konsbruck, executive director region overseas, AUDI AG after the inauguration of the showroom.

Spread over a total area of 18,000 sq.ft., the showroom is Audi's tenth in India and the first in Mumbai. The display area can accommodate 12 Audi cars and will display the entire model range of Audi cars available in India.

Audi Mumbai West will also house an Audi Shop and the Audi Exclusive Elements, where customers can order customised products and purchase a variety of Audi branded merchandise.

Also present at the inauguration were Michael Perschke, head of Audi India, Anand Rao, managing director of Audi Mumbai and actor Bipasha Basu, a proud owner of the Audi Q7.

SEARCH

Multi-level car parking likely soon-chennai

Chennai Corporation is likely to begin the construction of multi-level car parking at Wallace Garden in Nungambakkam next week.

The civic body has already issued work order to the consortium of Marg Group and Apollo Hospitals to build the parking lot which will have the capacity to park 200 cars and 290 two-wheelers. It will hand over the land on Thursday to the contractors to commence the project.

Corporation commissioner Rajesh Lakhoni said the civic body had also received bids for another multi-level car parking which was going to come up on Broadway, having a capacity to park 500 cars and 660 two-wheelers. The bids would be placed before the council soon for approval, Lakhoni said.

With regard to Madras high court's order rejecting the corporation's decision to construct a multi-level parking facility in T Nagar, the commissioner said the civic body had filed an appeal in the Supreme Court.

The fees in the multi-level parking facility will be Rs 15 for the first hour for cars and Rs 10 for every additional hour. For two-wheelers, it will be Rs 10 for the first hour and Rs 5 for every additional hour.

Corporation officials said they were studying possibilities to build multi-level parking lots in places like Adyar, Anna Nagar, Purasawakkam and Vadapalani. At presently, the civic body has about 150 parking lots in the city which are maintained by Tamil Nadu Ex- Servicemen's Corporation.

As Chennai roads see at least 700 new vehicles every day, many road safety campaigners urge that the civic body should come out with more multi-level and underground parking lots. Chennai Metropolitan Development Authority (CMDA) has already built a two-level underground parking facility in Koyambedu.

According to a study Parking Requirements of Chennai Metropolitan Area' done by the CMDA, vehicle ownership in Chennai saw an increase from from vehicles per 100 persons in 1981 to 14 per 100 persons in 1991 and, to 30 per 100 persons in 2001.

Now, you can talk to your car even after it's stolen

Car owners can now track if their vehicle is being used by others without their permission and locate its movement thanks to 'Tcop', a security system that enables two-way communication between the car and its owner.

Owners and cars could `talk' to each other via the GSM technology driven device unveiled by Bangalore-based iTrans Technologies, a two-year old start up company that works on security technologies for automotives.

Tcop device fitted onto the car enables an owner to be alerted of an intrusion or theft through an SMS who could then trigger a burglar siren by sending back an SMS to the device, Mallesh Reddy, CEO of the company told reporters here.

The company has tied up with Vodafone for SIM card which is activated in a Tcop, Reddy said.

Unlike the traditional car burglar systems that are triggered when someone touches the door, this would send the alert even if someone was trying to break the window pane or fidgeting with the car. It could also set off a voice call to inform about the theft.

The device could also through an SMS, alert the owner if someone in his family or otherwise was using his car without his permission through an ignition alert. Parents could keep tab on the car being used by minor children or others.

The owners could also track where their car was currently located. "The owner could get details of the last 72 hours of the movement of the car and places it has been to, he said.

It could also be fitted onto school vans or buses and help parents through SMS to track the vehicles movement. The school could also have a central data that helps track the fleet of buses, he said.

Except for the device cost of Rs 7000, there were no recurring charges for the first year. In the second year an annual fee of Rs 100 would be charged by Vodafone. Except for the device, there was no need of any hardware or software.

The company has already tied up with car dealers for fitting of the devices.

Currently Tcop was available only in Karnataka but plans were on to roll it out in other states as well and to offer a roaming package facility for inter-state tracking.

iTrans was also in talks with schools and government bodies for deploying the device. It would also look at tying up with law enforcing bodies to deploy the device.

The company aims at a turn over of 7000 units by end of the fiscal. Currently, it had deployed the device on 600 vehicles including some school buses.

The device was designed indigenously and produced in a facility in Mysore and packaged in Bangalore. The device comprised some imported components, he said.

iTrans also had three more products lined up for launch including, energy cop to track power theft.

Guides in Buying Car Online

Today, you can comfortably surf through cool stuff that you wish to buy online. You can sit in front of your own computer with internet connection and look at the different options that are install for you.  If you are planning to buy a new or used car, you can shop it online. But before you do, there are things that you need to consider, read on.

As a buyer, you have to know your rights, with this, you can get away from scams and any other complications in buying stuff online.

When you are about to shop for a new or used car, you have to see to it that you check out the company first. It is highly recommended that you buy it with a reliable website in order to assure that you will be getting what you deserved.

when looking for a car, it is best to look for few websites that offer cars that you wish to buy and compare each. You can find a particular shop selling it at a lower price than the other shops, so it is advantageous on your part to do comparison.
Before you do a transaction with a shop online, you have to know the full business mailing address of the company or shop.

Go with a company that can provide you with security and protection, knowing that you will be sending out personal information to them when you purchase a product to them.  It is best to contact them and ask all of the questions that you have and also clear all things with them to avoid confusion or misunderstanding.

The shop can handle the auto transport for you but of course, the shipping cost with be shouldered by you. You can communicate with the shop regarding the auto transport or you can tell them that you will be hiring a particular company to do auto transport for you if in case you have worked with a reliable auto transport company before.

Audi India's August sales up 46 per cent

German luxury car manufacturer Audi's Indian subsidiary Saturday reported that its August sales grew 46 percent and stood at 250 cars as compared to 171 units in the corresponding period last year.

"Having successfully surpassed last year's annual sales performance, we are confident that this consistent growth through 2010 will help us achieve our goals for the year,"said Michael Perschke, head, Audi India.

The German automobile maker also said that its sales from January to August grew by 66 percent and stood at 1,876 cars as against the same period of the last year.

The company said that it intends to spread its national presence through opening of new dealerships in Kolkata and Bangalore.

Currently, Audi offers models like A4, A6, A8, Q5, Q7, TT and the super sports car Audi R8 in the Indian market.

Pawan Ruia in talks to buy German auto component co

Kolkata-based businessman Pawan Kumar Ruia said he is in talks to acquire an automotive component company in Germany and may route the transaction through the listed group firm Falcon Tyres.

Falcon Tyres will raise around 800 crore by way of fresh shares through a rights issue, equity convertible warrant or other instruments that will fund its expansion programme through capacity expansion in India besides overseas acquisitions, he said.

“We are pursuing acquisition plans aggressively and are close to the deal, but are yet to finalise the terms of the transaction ,” Mr Ruia said without giving names of the target firms.

He said the acquisition is part of a strategy to consolidate operations in automotive space and look for new targets after unsuccessfully bidding for Korean SUV maker SsangYong. The Ruia Group, which has had made several acquisition in the past, lost out to local utility vehicle maker Mahindra & Mahindra.

Mr Ruia said the company is also looking to pump money into the Mysore plant to raise its capacity by 50% to 15 lakh tyres per month besides plans to invest in a new plant in Haridwar with a capacity of 5 lakh tyres/month. The greenfield facility would primarily cater to Hero Honda while the new capacities at Mysore would primarily target the fast growing bike and scooter segment.

The expansion will help Falcon Tyres double its capacity to over 20 lakh units million by September 2011.
The proposed rights issue expected to be floated before December this year, for which the company took a board nod early this year, will also allow the promoters to dilute their holding to confirm new public holding norms. The promoters holding in Falcon Tyres stood at 85% as of June 30, 2010 that will come down to 75% if they do not participate in the issue.

Auto, bank unions to join nationwide strike today

With government employees and many of those working in the private sector going on a one-day countrywide strike today, the State Government has sprung into action and has warned its employees against joining the strike. The strike has been called by eight major trade unions including Congress-affiliated INTUC against price rise, violation of labour laws and disinvestment of PSUs.

“Nearly six crore workers will participate in the strike across the country. Those employed in the private sector will also join the strike in many places,” AITUC general secretary and CPI MP Gurudas Dasgupta said on Monday.

In Mumbai, auto-rickshaw union, employees of state and nationalised banks, teachers, and State Government employees have decided to join the nationwide strike.

However, the Maharashtra Government has warned its employees of severe action if they join the strike. The warning was issued after State Government Employees Union President RG Karnik served a notice to the government stating that the state employees will join the strike.

The government also convened a meeting to discuss steps to ensure smooth functioning of government offices and essential public services such as trains.

Maharashtra AITUC leader told Mumbai Mirror, “Teachers and mathadi workers will join the strike.” Class 3 and class 4 employees of State-run hospitals will also participate.

However, services like milk delivery and other essential services will not be hit, he added.

Auto drivers’ union leader Sharad Rao has appealed to all auto drivers to participate in the strike. But the Taximen Union has decided to not participate in the strike.

Taximen’s Union chief A L Quadros said, “We have already participated in three strikes in the last three months. We are only lending moral support to the Tuesday’s strike. We have already incurred losses. Drivers can’t afford another strike.”

“We expect the State Government to give us ample police protection so that no damage is caused to the taxis,” a Taximen Union member said on condition on anonymity.

BST and Railways will be operating as usual.

Design, political issues slow push for breath tests in cars

Almost every state, including Massachusetts, has a law requiring some convicted drunk drivers to install ignition locks in their vehicles. Drivers are forced to blow into a tube connected to a device that measures the blood-alcohol level. If a reading is too high, the engine won’t start.

Now, an effort is underway to develop a new generation of blood-alcohol detection devices that work with just the touch of a button or require no driver interaction whatsoever, automatically analyzing the breath of anyone who gets behind the wheel.

The National Highway Traffic Safety Administration and the Automotive Coalition for Traffic Safety, an auto manufacturers group, are funding a $10 million study to create the high-tech instruments, which they hope will become a standard feature in cars and trucks, much like seat belts and air bags.

The technology could save 8,000 to 9,000 lives annually, said Rob Strassburger, a vice president at the Alliance of Automobile Manufacturers, which is helping to fund the effort.

“That’s quite significant,’’ he said. “It’s approaching the gold standard [of safety], the seat belt, which saves about 15,000 lives a year.’’

The devices are under development at QinetiQ North America, a Waltham defense contractor that is testing prototypes as part of a five-year trial ending in 2013.

While critics suggest that such detection devices would encroach on personal freedoms and add to the expense of buying and maintaining a car, Congress is considering a proposal to fund the program with an additional $10 million.

Engineers at QinetiQ said they realize drivers will resist having to blow into a tube every time they want to drive somewhere. If the project is to stand a chance of gaining widespread commercial acceptance, they said, it has to work seamlessly and without drivers’ active involvement.

QinetiQ solicited prototypes from various companies, including Alcohol Countermeasure Systems Inc., of Toronto, and Autoliv Development AV, of Sweden. The instruments submitted by both companies measure ethanol in the moisture of human breath and use the results to calculate blood-alcohol levels.

Bud Zaouk, technical manager for the project at QinetiQ, said both products could be developed to take breath samples through an opening in a car dashboard the size of an MP3 jack. If such a device did not measure a significant level of alcohol in the air, the driver could start the car — without being reminded he had just been tested.

But there are logistical hurdles to overcome. Most significantly, the two devices are too large to seem invisible. The Toronto prototype is slightly bigger than a breadbox, and Autoliv’s is the size of a recipe box. To be marketable, the instruments would have to be scaled down to the size of a cellphone, or smaller.

A third model, developed by TruTouch Technologies of New Mexico, could measure blood alcohol through the skin, using a sensor and infrared light to detect ethanol.

QinetiQ engineers are trying to figure out if there is a way to use the various devices in tandem, or whether they could incorporate a TruTouch sensor in an ignition button or a car key.

Cost is another factor. Strassburger said there are no solid estimates about how much alcohol-detection devices could add to the cost of a vehicle. But auto-safety advocates think parents of teenagers might pay extra for the option.

“If we’re successful the customer will want this,’’ said Susan Ferguson, program manager for the auto industry coalition.

Still, critics have their doubts about the feasibility of such complex technology, and question whether it would be an intrusion on personal freedom.

“We just don’t think it’s appropriate that people who have no problem with drunken driving and impairment should have to be subjected to having to have this kind of a device,’’ said Jim Baxter, president of the National Motorists Association, a nonprofit group that advocates for motorists’ rights and better driver training programs. “It will create more problems than it was ever intended to solve.’’

Karl Brauer, a senior analyst at Edmunds.com, an automotive website, said consumers could grow to loathe such devices if they malfunction in the hands of sober drivers, preventing them from using their car.

Brauer also wondered how an instrument would be able to discern between a person’s breath and spilled beer on clothing.

 “It’s unnecessary,’’ he said. “You’re putting time and money into things that would be better solved through existing education and legal efforts.’’

But advocates say Mothers Against Drunk Driving and police agencies support research into making the devices palatable for the mainstream.

J.T. Griffin, a spokesman for the national office of MADD, said the group would like testing instruments to be universally installed in cars and trucks.

The group has tried “the education route’’ for 30 years, Griffin said of its efforts to end drunken driving, yet intoxicated drivers accounted for about 32 percent of all highway fatalities in the United States last year.

“MADD is very excited about this,’’ he said of the prototypes. “This could really eliminate drunk driving in America.’’

QinetiQ’s Zaouk said developers are also trying to better understand how people of various sizes metabolize alcohol. As part of their research, they have paid subjects to drink heavily — ingesting nine shots of vodka (mixed with orange juice) over 20 minutes — in a controlled setting in QinetiQ’s lab. Subjects lounge in a comfortable recliner as they drink and watch television. A doctor overseeing the process extracts blood samples at intervals.

But it’s no party, Zaouk said. There is pressure to build something unique, and the researchers know automakers are watching closely, awaiting the test results.

“The whole world is looking at what we’re doing,’’ Zaouk said.

Kia recalling fire-prone cars

Hyundai-Kia Motors is recalling more than 35,000 cars with fire-prone electrical wiring systems, said the National Highway Traffic Safety Administration.

The government agency said Friday that the recall extends to some 2010-2011 Kia Soul and Kia Sorento models manufactured between Sept. 7 2009 and July 30, 2010.

"When lights are illuminated under certain conditions, an electrical short may occur that can result in a fire," said the recall notice.
The South Korean automaker said the faulty wiring is from the interior lighting in front and rear door trim panels, which are the plastic moldings on the inside of the car.

Consumers who believe their vehicles might be affected can contact the company at 800-333-4542.

The Nano goes upmarket

Leena Jacob, an IT professional based in Technopark, Thiruvananthapuram, is delighted with her Tata Nano. The small car, she says, proves very useful and convenient for city driving. The other two cars in the family garage: a Honda City and a Maruti Swift.
I am afraid of taking my Honda City into the heavily congested city roads, but the Nano is very convenient,” she said. The main advantage, according to Jacob, is its ease of handling and small size, letting her park in half the space of the Honda City.

In Mumbai, S P Shah, director-general, Federation of Automobile Dealers’ Association, is waiting for Nano bookings to start again. “I drive a Honda City to office every day and find it very cumbersome to park. I will definitely buy a Nano when bookings reopen,” said Shah.
Jacob and Shah are not alone. According to Tata dealers in various cities and towns, nearly 60-80 per cent of Nano buyers already own one or even two cars, but still prefer to purchase another small car. That is why it is not uncommon to spot a chauffeur-driven Nano on Peddar Road, which houses some of Mumbai’s richest denizens.

While Tata Motors does not share customer profiles, a leading dealer in Delhi who sells both Tata and Fiat vehicles, confirmed: “Around 70 per cent of Nano buyers already have a car. They purchase a Nano for different reasons: to pick up children from school or go to crowded markets. The age profile could vary, from those in their 20s to 50s.”

A dealer in Mumbai reiterates the point, saying around 60 per cent of those that booked a Nano already had a car in the family.
The fact that, in most cases, it is not a first-time car buyer moving up from a two-wheeler to a Nano is reflected in the fact that just 20 per cent of the 100,000

Nanos booked so far were the standard, no-frills version. "I use the Nano on short trips, like to the station and back, or to similar crowded areas as manoeuvring or parking the car is very simple. But, I prefer driving my wife's Maruti Zen Estilo for longer journeys," said Mumbaikar Ashok Vichare, the first buyer of the Nano.

Booking trends are the same in Kerala, where Tata Motors successfully cashed in on Onam — the state's biggest festival — by promising to deliver the car within 30 days. The new buyers range from well-heeled IT professionals to housewives, who already have a hatchback or a sedan in the family. Tata Motors reopened Nano bookings from August 1 in Kerala. Says R S Murali, sales coordinator at R S Motors in Kochi: "People booking the car are between the ages of 30 and 45, and mostly have a car in the family already. We have booked 1,000 Nanos since August 1.”

In overcrowded cities, the Nano is emerging the vehicle of choice for daily commuting for its agility, practicality and fuel efficiency. Shorter than the Maruti 800, but roomier inside, the Nano delivers 23 km a litre. In addition, buyers also speak highly about its design and styling, which they consider far better than the Maruti 800, which costs around 55 per cent more.

Ironically, many had expected the Nano to eat into sales of two-wheelers, especially motorbikes, compelling companies like Bajaj Auto to manufacture its version of the small car. But the expected change has not happened.
Says S Sridhar, chief executive (two-wheelers), Bajaj Auto: "When you put out a low-cost car in the market, consumers immediately compare it with a two-wheeler. But 30 per cent of two-wheeler buyers today are students looking for something sporty. The balance of customers is from B- and C-class towns, where road conditions are poor and the maintenance cost of a car is higher than that of a motorcycle."

Nevertheless, Bajaj Auto is working on a low-cost car. But, it is looking at a car whose running costs will be low because of higher fuel efficiency.

One of the main reasons why the Nano hasn't pulled consumers looking for the first car, said auto experts, is because of the poor exposure the car has received since it was unveiled, which could have defined its road worthiness. "The performance of the vehicle cannot be evaluated now, because it is too short a period to have a clear idea on its performance," says Baiju N Nair, chief editor, Overtake, a local auto magazine in Kerala.

Audi plans second shift at India plant

German luxury carmaker Audi plans to churn out more from its existing plant in India through a second production shift as it aims to more than double its sales by 2015, a top company executive said.

The third-largest player in the Indian luxury car market may start second shift at its factory in Aurangabad to take the production to 3,000 units by next year from 2000 units at present. It has already surpassed last year’s total sales of 1,658 cars by selling 1,876 cars in the first eight months of this year and is targeting to end 2010 with sales of 2,700 cars.

Michael Perschke who heads Indian operations of Audi said the brand is not desperately chasing bigger rivals BMW and Mercedes. “We would prefer to be the most aspirational brand rather than a market leader in volumes. We were the last to enter India, but the growth has been faster than expectations,” he said.

The luxury carmaker aims to sell over 6,000 cars in India by 2015, by when the segment is expected to more than double to over 20,000 units a year. The company plans to launch the next generation of its flagship sedan A8 by the year-end and has initiated a market study for its luxury A7 sedan. Audi is looking to extend its product lineup and may import some new cars including a fresh sports utility vehicle(SUV)for India, as the market is gradually shifting towards bigger vehicles. It assembles sedans, A4 and A6, at its Aurangabad facility and taking a cue from spiralling sales for SUVs had started assembling its compact SUV, the Q5, from July. Local assembly allows a firm to price its products more aggressively and attract consumers.

The Indian luxury car market is dominated by BMW and Mercedes. BMW displaced Mercedes-Benz as the top seller in the segment in 2009 only to see its German rival snatch back the top slot in the first seven months of this year. Besides Audi, Volkswagen and Porsche are also key players in the segment that grew 26% to 12,950 units for the year ended March 2010. Several new players including Tata Motors’ owned Jaguar and Land Rover entered the market last year and other global marquees like the Toyota Lexus, Aston Martin and Ferrari are also eyeing India.