TATA Nano going places
India’s cheap car and probably the world’ cheapest car, Tata’s Nano is going places. Egypt is understood to have requested India if the Tatas’ could set up a manufacturing facility in the West African nation to make left hand drive versions.
According to reports, Egypt’s ambassador in India, Mohammed Higazy, his country is seeking Tata’s endorsement for launching Nano left-hand drive cars in Egypt where a huge market exists. Egypt could serve as a base for Tata Motors to export the Nano further in the Middle East and European markets.
Tata Motors has a strong presence in the Egyptian market where it sells trucks and buses-unveiled the Nano in the Geneva motor show, with its version that would meet the standards and emission norms of the European market. Nano is likely to be launched in Europe by 2011.
TCS lone bidder for UK pension scheme
Tata Consultancy Services Ltd (TCS), India's biggest software services firm, is perhaps the lone bidder for the contract to run UK's new national pension scheme. Three bidders - Logica ltd, great West Retirement Services and Arbejds market Tillaegspension group - have withdrawn their bids on grounds of the scheme not being economically feasible to take and run.
The size of the contract is not yet known but believed to be huge that will offer a toe-hold to a number of IT firms in the long run as the scheme benefits over six million users.
Deutsche bank top foreign banks investing in India
Deutsche Bank AG of Germany has emerged as the top investor among foreign banks in India, for the third year in a row. This is evidenced by its holding of $7.11 billion (over Rs 34,000 crore) in Indian stocks. DB is succeeded in second place by assets ranking by the London-based HSBC holdings and Citigroup Inc, claimed to be USA's third largest lender.
HSBC's stock holding in India touched over Rs 25,000 crore spread over nearly 100 companies and Citigroup had equity holdings of over Rs 15,000 crore.
According to reports in the media, foreign institutions have been big players in Indian stock market pumping about $12.44 billion until September this year. Another $4 billion has flown to take the asset value to over $17 billion. The highest investments by foreign investors in portfolios of Indian companies in the bourses were about $18 billion in 2007.
HUL, threatened by royalties from parent
Hindustan Unilever, India's largest consumer firm, may be called upon to pay higher royalties to its parent in UK Unilever plc threatening its profit line and ballooning its expenses. Not clear if the company will pass on the burden to the consumers who patronize its LUXury brands of soaps and detergents, besides other commodities.
The upped royalty is about one per cent of net sales as per the statement it has filed before the stock exchanges.
More on autos - VW goes aggressive
 India is now set for the third revolution in the automobile industry. The first was when the old faithful Ambassador and Fiat 1100 gave place to newer and contemporary models when the likes of South Korean giant Hyundai, American major Ford, GM, and Hindustan Motors introduced Mitsubishi and Suzuki started rolling out newer models replacing its older ones.
The second phase brought in the revolution in the mid-sized cars when Volkswagen entered back door through its east European Skoda, Mercedes upped its ante with more models, GM replaced its entire fleet of German made cars like Opel Astra and Opel Corsa with the South Korean bought Daewoo's Ceilo / Nubira range upped to the New snazzy Chevrolet Optra, Aveo, Uva, and other Matiz being replaced by a cute little Spark. Ford, which caught on with the Icon built in India and exported to the Mexican and North African markets, consolidated its presence with the sure fire selling Fiesta; Endeavour helped it catch up with its robust models in the SUV class.
Honda, which faced resistance after it changed its conventional looking City with a more Compact City has found a new market for its snazzier versions with its sporty look in the front and the back and latest systems that support USBs. Now with India emerging as the small car capital of the world in terms of manufacturing facilities with cheap labour and export potential, the automobile giants are looking into the segment as a spring board\for larger success in brand value and raking in more moolah.
Ford is slated to launch the Figo small car which probably will be unveiled in the upcoming Auto Expo in Delhi in January 2010. GM too is thinking of competing more in this section apart from its Matiz. Volkswagen has introduced the re-launched Beetle in India albeit with a huge price tag of upwards of Rs 25 lakh.
This German auto major has now gone aggressive with its marketing plan to sell its luxury cars Jetta and Passat. It has taken out huge advertisement space in Delhi and Mumbai dailies prior to launching its Beetle and Tourag (SUV). A catchy TV commercial also pumps in the idea of the enduring style and class of Volkswagen cars with a small boy walking in to book the Jetta and Passat as and when he becomes VP and CEO of the company suggesting these cars are for that class of customers. It will also bring in the highly successful Golf/ Polo into the Indian market.
And this is the third revolution in automobiles in India where companies are plumbing for small and mid-sized cars. See how Fiat changed its tack by tying up with the Tatas for distribution of its new range of cars and has met with unprecedented success literally wiping out its earlier image of non-starter with and Palio and Siena. Linea is its luxury sedan which has caught the imagination of the middle class and upper middle class with its fine cuts and European styling. Its price tag too is reasonable at Rs 6.20 lakh for the base model. The grand Punto is also said to be doing well.
Maruti literally peppered every section with Suzuki helping it to put a new model in every segment available to pre-empt competition. A Star, Ritz, newer version of Esteem with the Sx 4, DZire entry level sedan, and a newer version of its trusted Zen. Hyundai, its closest competitor, brought in the attractive I-10 and I-20 to create a new class of customers.
As if this was not enough - the upper segment has found taker for cars such as Bentley, Mercedes May Bach, S class, Skoda's Superb, Chevrolet's Cruze and Hyundai's Sonata luxury versions - all starting from a minimum of Rs 15 lakh going up to Rs 5-6 crore. Toyota and Honda not to be left behind, brought going in scaled up models of the Coral/Camry and Accord and City/Civic respectively. Honda Civic is the hottest selling car still in its segment despite its high price tag. A fourth revolution in cars is in the offing with another fuel crisis; there will be spurt in the production of hybrid models and eco friendly cars.
India now produces about 2.2 million automobiles in various segments every year, a record for a country which in earlier 1980s boasted of just the Ambassador and Fiat.
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