The I&M programme will entail a nationwide comprehensive programme to test and certify, at frequent intervals, a vehicle's 'road worthiness'. The programme gains importance as more than 100,000 people die each year from road accidents in the country, roughly 10 per cent of the world total.
The auto sector is doing well in India, despite stock market meltdown, emerging signals of industrial slowdown and rising costs.
By June 2009, the $6 billion Mahindra & Mahindra group will open its new $116 million automobile design and development facility called the Mahindra Research Valley spread over 150 acres in Mahindra World City in Chennai. Primarily, this R&D facility will cater to M&M's design needs, and later may consider doing similar high-end work for other OEMs.
That is not out of choice, but because of the new European Union norms for automobile recycling, which comes into effect in 2010, and prescribes that once a vehicle is destined for the scrap heap in the EU territory, 80-85 per cent of its parts ought to be recyclable or reusable. That means every component -- batteries, airbags, catalytic converters, and auto plastics -- have to be safely disposed.
Amongst cars sold in the mid-size category (domestic sales) between April 2007 and March 2008, diesel variants outsold petrol car models roughly in the ratio of 7:3. That means over 70 per cent of the over 1,79,493 mid-size cars sold in the domestic markets were diesel models. Diesel mid-size cars on an average are priced 15.5 per cent more than the petrol variant. Overall, the mid-size category, petrol and diesel models included, grew by 14.6 per cent.
With an eye to the large and growing market for their products, Indian auto component and tyre companies are making a beeline to set shop in Europe (especially Eastern Europe). Just last month Apollo Tyres announced that it was setting up a euro 200 million green field venture outside Hungary. And Delhi based Amtek Auto will set up a production base which will come in to operation in 2009 in Romania.
Now, a growing number of well-heeled private citizens are buying armoured vehicles for their safety, providing a profitable new business stream for companies like Jalandhar-based Laggar Industries and automaker Hindustan Motors. The annual market is about 500 vehicles, of which 30 to 40 are bought by private citizens.
Speaking on the cancellation of the deal, Joe Bowman, chief executive officer of Ultra Motors, said, "The opportunity cost of selling electric vehicles in India does not fit strategically under this joint agreement. We intend to create shareholder value and positively impact those markets where we operate. We have come to believe India is one of the largest markets in the world. So we are looking forward to develop it independently."
German luxury carmaker BMW is evaluating over 100 component manufacturers in India to outsource engines and chassis for its global manufacturing operations, according to a board member. "We are impressed with the quality of die casts and forgings in India that we use for our global operations. The quality of products from second- and third-tier is impressive," said Ind Herbert Diess, who is on the BMW AG board.
"The compact petrol 1.2 litre car will be configured to international markets and will not compete with the small cars available in India. Depending on market conditions, we will import the hybrid version from Japan later," M Takedagawa, president and CEO, said on Monday.
Last week, US aircraft manufacturer Boeing signed an agreement with Tata Automobile Limited Manufacturing Solutions, a wholly-owned Tata Motors subsidiary, for manufacturing structural components for Boeing's 787 Dreamliner airplane programme.
Say lower duties could enhance demand.
Call it the "Nano effect" but less than a month after Tata Motors displayed its competitively-priced small car at the Delhi auto show, prices in the 1.3-million used-car market crashed 15 to 30 per cent, if not more.
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