Fiat India eyes to boost sales through Linea

Italian auto major Fiat, which is attempting a come back into the Indian automotive market, hopes to boost its sales in India with the launch of its all new mid-sized sedan Linea.

“Launch of the Linea is first in the line of three launches that Fiat will undertake this year, the other two being Bravo and Grande Punto,” said Rajeev Kapoor, chief executive officer of Fiat India Automobiles Ltd, a 50:50 JV between Italy’s Fiat Group and India’s Tata Motors.

The car is expected to create a new sub-segment between the mid-sized cars and the luxury cars segment due to its unique design, comfort, performance and features, according to a company statement.

Linea was first launched in Turkey and is presently being sold in more than 50 countries across Europe, Asia, Central and South America and Africa. Besides Turkey, the Linea is produced in Brazil and now in India. It will also be manufactured in Russia in the near future.

Linea will be retailed by the Tata-Fiat dealer network providing 100 sales outlets and workshops across the country by mid-2009. The car will be manufactured at Ranjangaon plant near Pune. Present level of localisation is at 50 per cent, but the target is to increase this to about 90 per cent by end of 2009.

Fiat India plans to sell about 2000 units of Linea every month in India, with exports targeted at 3000 units this calendar year to right-hand drive markets such as South Africa. Together with Palio, the company plans aims to export 3,500 units this year. In 2008, the company exported 600 units of Palio to South Africa. During this year, the company aims overall sales target of over 40,000 units, largely driven by Linea.

Kapoor said that Fiat was seriously thinking about making India a small car hub, but pricing, models and other details need to be worked out, he added. Over the next three months, it is likely to launch Bravo, targeted at the C segment, and during the second half of this year, it Grande Punto will be launched for the premium-B segment.

Fiat is also planning to make India a hub for sourcing components for its global requirements. The company plans to source 250 million euros worth of components, include forgings and plastic components over the next couple of years.

M & M launches Xylo

Leading utility vehicle and tractor maker Mahindra & Mahindra has launched its indigenously developed Mahindra Xylo, a multi-purpose vehicle (MPV), which combines comforts of a sedan and ruggedness of a sports utility vehicle (SUV).

Described as a ‘Sedan Plus’ vehicle, Xylo, will target the sedan buyers and the buyers of Toyota’s Innova, a fast-selling MPV in the country. Xylo comes with four diesel variants at a starting price of Rs 6.26 lakh.

“Xylo offers an extraordinary level of luxurious comfort at a very cost-effective price for prospective sedan buyers,” said Dr Pawan Goenka, president, automotive sector, Mahindra & Mahindra Ltd.

The company claimed to have invested about Rs.550 crore in developing Xylo over the past three-and-half years with around 150 engineers working on developing this vehicle. Leading vendors from India, Japan, America and Germany, which include Bosch, Lear, Motherson, Nippon, Subros, JBM, Spicer, Visteon, Lumax, Alf, Asahi, Sharda, Rane and Varroc, have contributed to the development of Xylo.

The MPV will be available in 57 select Mahindra dealerships in January and another 44 dealerships from February. The company has created a capacity for 25,000 units a year (two-shifts) at its Nashik plant. However, it will initially work with a capacity of 60 vehicles a day and ramp it up to 80-90 units a day depending on demand.

Ashok Leyland bags Rs.1190 crore DTC order

Hinduja flagship company Ashok Leyland Ltd has received Rs.1190 crore worth of orders from Delhi Transport Corporation (DTC). The orders include a Rs.480 crore contract for supplying low-floor buses and Rs.710 crore for a 12-year maintenance contract. These orders come at a time when the commercial vehicle major is grappling with the slow down and sluggish sales.
Ashok Leyland will supply 875 high-end ultra low entry (ULE) CNG buses to DTC, as part of the corporation’s fleet modernisation programme. This order marks Ashok Leyland’s single largest order from a state transport corporation in value terms and includes supply of 350 air-conditioned and 525 non-A/C buses. Delivery will start by mid-2009 and will be completed by September 2009.

The new ULE buses will have a floor height of 390 mm for step-less entry and 35-seats with a 2x2 configuration as well as a retractable ramp for disabled-people. These buses will be powered by a 230 hp engine and fitted with automatic transmission, speed-limiting device and multiplex wiring.

The chassis and the body for the buses will be manufactured at Ashok Leyland’s Alwar Plant, which had spearheaded the induction of CNG technology in Delhi buses. It has supplied of over 3500 CNG bus chassis.

Ashok Leyland will also provide training to the drivers at its Driver Training Institute in Burari, near New Delhi, which has been set up jointly with the government of Delhi.

“The uniqueness of this order is that we have been contracted to offer a truly comprehensive urban transportation solution. Besides delivering these fully-built buses, we will train drivers and mechanics and will maintain the buses to ensure uptime by setting up exclusive maintenance depots,” said R Seshasayee, managing director, Ashok Leyland.

R K Verma, secretary-cum-transport commissioner and chairman and managing director, DTC said: “We are happy that Ashok Leyland, who spearheaded the induction of CNG in our bus fleet, is now partnering us in our modernisation drive. I am confident in Ashok Leyland’s capabilities to offer us world-class buses and provide the crucial long term support to ensure uptime.”

TN to spend over Rs.20,000 crore on power capacity augmentation

With large investments pouring and several global firms setting up their shops in the state, Tamil Nadu government has embarked on expansion activities to augment power generation capacity. The state government and Tamil Nadu Electricity Board (TNEB) plan to add 4300 MW at an estimated cost of Rs.22,272 crore by 2011-12.

While demand is around 9500 MW, the state’s present generation capacity is estimated at 8012 MW. With rapid industrialisation, the demand for power is in the state anticipated to go up to 13,250 MW by 2011-12.
TNEB is adding two units of 600 MW each at its North Chennai Thermal Power Station at a cost of Rs.5813 crore. The project is being implemented by BHEL. The first and second units are expected to be completed by early and end of 2011 respectively.

Another 1 x 600 unit will be added at the Mettur Thermal Power Station at a cost of Rs.3550 crore; this project will be implemented by BGR Energy Systems.

A 3 x 500 MW thermal power project at Vallur, 40 km north of Chennai, over two phases will be set up as a joint venture between NTPC and TNEB at a cost of Rs.8000 crore. All clearances have been obtained for setting up 2 x 500 MW unit in the first phase, while the 1 x 500 unit in the second phase awaits nod from the Union environment ministry. The first unit is likely to be commissioned by October 2010, second unit by March 2011, and the third unit is targeted for September 2011. The state government is expected to get 1125 MW (75 per cent capacity) from this project.

Additionally, TNEB, through a JV with Neyveli Lignite Corporation, is establishing 2 x 500 thermal power project at Tuticorin at a cost of Rs.4909 crore.