Force Motors to launch new variants, products

Force Motors is aggressively focusing on its newest vertical, the personal vehicle devision, to shed its commercial vehicle maker tag. It will display two variants of its SUV, Force One, at the Delhi Auto Expo next month.

""We will show a four-wheel drive and a concept luxury weekend getaway versions at the Auto Expo, with the latter having luxurious interiors,"" said Prasan Firodia, managing director, Force Motors. He added, ""We will also show a new 26-seater monocoque bus which will go into regular production by April 2011.""

The bus will also have two variants, a luxury version which will seat between 10-18 people and the standard 26-seater. Firodia said these buses are targeted at inter- and intra-city needs with the luxury bus being a scaled down version of the standard-setting Volvo luxury coaches. He declined to reveal the price or the names of these products which wil be anounced in Delhi on January 6.

The bus has been developed internally and is not part of the technical collaboration agreement Force Motors has signed with Daimler AG for vans. Those vehicles are still a year away, Firodia said. The passenger and commercial vehicle maker will also show its hybrid Traveller coach while it plans tyo offer CNG on its small commercial vehicle, the Trump

Tata Motors launches new bus models Divo and Starbus Ultra

 Tata Motors Tuesday launched two new bus models, Divo and Starbus Ultra, priced, respectively, at Rs.66 lakh and Rs.15 lakh (ex-showroom New Delhi).

The company said the two models will cater to the growing needs of urban public transport. "With the introduction of the Tata Divo and the Tata Starbus Ultra the company will more comprehensively address the burgeoning need of public transportation," said Ravi Pisharody, president, commercial vehicles business unit.

Divo is a luxury air conditioned coach for inter-city passenger transportation and tourist operations. The bus's design component comes from the company's Spain-based subsidiary Hispano Carrocera.

"Divo offers customised interior features such as different seating layouts in semi-sleeper and seater configurations, wide seats with recline, head flaps and armrests," Pisharody said in a statement.

The bus also sports unique features such as entertainment system, refrigerator, mobile charging points, destination board and public address system.

Divo is powered by a 285 HP Cummins engine coupled with a six-speed overdrive gearbox for higher fuel efficiency.

On the other hand, Starbus Ultra is meant for intra-city transport and is available in luxury, standard, school and deluxe variants.

"These (variants) are available in different seating configurations of 22-46 seater, on different wheelbases," the statement said.

The bus is powered by 497 engine coupled with a six-speed gearbox with overdrive and cable shift mechanism.

Commercial vehicles defy slowdown

Paradoxically, commercial vehicle (CV) sales have belied expectations of a slowdown in spite of weak Index of Industrial Production (IIP) numbers, month after month. Typically, CV sales display a strong correlation to IIP, which mirrors the state of economic activity in the country. But it’s different this time around.

Growth in industrial activity has slowed to 5% during the first six months of fiscal 2012 as against 8.2% during the year-ago period. But the Indian Foundation of Transport Research and Training (IFTRT), in its monthly analysis, said sales growth was 23% in November for light commercial vehicles (LCVs), intermediate commercial vehicles (ICVs) and multi-axle vehicles.

Although there are jitters about a slowdown in the sector, so far LCVs have been leading the run-up in sales. Market leader Tata Motors​ Ltd clocked a 25% year-on-year (y-o-y) rise in CV sales in November, mainly driven by a 38% increase in LCV sales. The company has a 58% share of the LCV market, even as other companies such as Force Motors Ltd​ and Eicher Motors Ltd are registering strong growth and late entrants such as Mahindra and Mahindra Ltd and Ashok Leyland​ Ltd are also faring well.

According to Umesh Karne, analyst, Brics Securities Ltd, “Buoyancy in the sector is due to demand from the organized retail sector, higher demand in consumer durables, construction in urban areas and replacement demand.” Higher replacement is due to insistence from large customers to provide a younger fleet. Meanwhile, better lifestyle in rural and semi-urban areas, along with a higher movement of agri-commodities, has also led to fleet expansion.
Of course, moderation in truck sales is visible. For November, Tata Motors’ truck sales rose a mere 7% from a year ago, compared with double-digit growth registered during October. Ashok Leyland, which has a strong southern presence in trucks, also posted 53% sales growth for November, albeit on a low base. A report by Edelweiss Securities Ltd hints at a lower single-digit increase in trucks from December.
The IFTRT note on monthly sales says that part of the sustained sales momentum is due to high discounts offered by manufacturers, who had raised prices steeply over the last eight quarters. Analysts estimate growth of about 9% in trucks and a robust 16-17% in LCVs for fiscal 2012. Still, market leader Tata Motors’ stock has underperformed the benchmark indices since the June quarter, perhaps due to its exposure to the passenger vehicles segment, which has been hit by a slowdown.
The outlook for CVs as a whole seems to be clearing up, with the interest rate cycle peaking and raw material costs expected to recede. The only grey area is profit margins, which would adversely affect earnings growth and in turn valuations.

Hyundai plans to launch commercial vehicles in India soon

Tokyo: Korean auto major Hyundai Motor on Thursday said it is currently studying the Indian market to launch commercial vehicles as part of its global plan to strengthen the segment.

To begin with, the company that mainly sells compact cars in India, is considering to introduce high-end and premium trucks in the country.

A file photo of a Hyundai plant

“There are lots of possibilities to launch commercial vehicles in India. We are currently studying the Indian market. So, we are planning,” Hyundai Motor Company deputy general manager (commercial vehicle marketing team) J. D. Lee told the news agency on the sidelines of the Tokyo Motor Show.
Asked by when the company could launch the commercial vehicles in India, he said, “We hope to launch it very soon.”
Without giving details, Lee said the company is looking at high-end and premium trucks for the Indian market initially. Besides, it is also considering at introducing buses as well.
“We are trying to launch high-end and premium trucks. As far as the models that we have, I think it is not a problem. We have many models all over the world,” he added.
He said the company took time to enter the Indian commercial vehicles market as the low cost ones used to be more attractive there, which is changing now.
“Premium model truck is attractive (now) for the Indian market but we think bus is also profitable,” Lee said, adding the company is deciding which model will be launched.
“Then, we will decide how many units. It is not enough to just launch a product, we have to think about the service part also and that is taking time,” he added.
The company, which Thursday showcased a new luxury bus ‘Universe’ here, said it has gradually expanded its presence in the commercial vehicle segment over the last few years, starting with Japan and South Africa.
Besides, last year it had entered Spain, China, Vietnam and Pakistan as well.