The sale of European new car has slumped 9.3% in May

According to the ACEA trade association, the sale of New car in the European Union has slumped 9.3% in May due to the end of government cash-for-clunkers programmes and a tough economic outlook. After a drop of 7.4% in April, new registrations fell to 1,129,508 cars in May.

Demand for new cars in the EU declined for the second month this year in May, reflecting the end to government support schemes on the one hand and the further challenging economic situation on the other.

Germany, Europe's biggest car market, saw the steepest fall, with new car sales plunging 35.1%. Other big European car markets also saw sharp falls with sales down 13.8% in Italy and off 11.5% in France.

However, Spain saw sales shoot up 44.6% in May albeit from depressed levels last year.

Suzuki GSX-R 1000, Bandit 1250S Launched In India

Recently, Suzuki Motorcycle India has launched two high-end new bikes, GSX-R 1000 and Bandit 1250S in the Indian market. The two new bikes would cater to the niche market as the prices of these bikes are in lakhs. The GSX-R 1000 model has been priced at whopping Rs. 12.75 lakh while Bandit 1250S comes at Rs. 8.50 lakh (ex-showroom Delhi).

The company had started prior bookings for the new bikes. The bikes is said to be available in Ahmedabad, Mumbai, Chennai, Hyderabad, Delhi, Bangalore and other major cities.

The two bikes come in wide range of colours. GSX-R 1000 is available Solid Black, Titanium Silver, Metallic Matt and Glass Splash White and the Bandit 1250S comes in Black and Gray.

Suzuki has been delivering superior technology which has been proven worldwide. We intend to showcase the same in India. With the launch of these two bikes, we extend our Big Bikes range in India and continue the momentum that had begun with the launch of Hayabusa and Intruder a year ago.

GM is going to recharge its electric car after Reva got split

Very soon, General Motors (GM) is coming forward to develop an electric car for India on its own. It had to drop its plan for the electric Spark following a break-up with Reva. The American car maker, which is expected to launch the plug-in hybrid electric vehicle, Chevrolet Volt, in the US by the year-end, will certainly not bring the Volt to India.

In March, GM had said the eSpark would not reach customers by the promised date. It had also moved part of its operations back to Detroit, in an early sign of its faltering partnership with Reva. GM India president Karl Slym said it made little sense to continue working with Reva after it sold a 55 per cent stake to Mahindra & Mahindra because of Reva having (a new) owner, there really is no value for us in doing this India-specific exploration (with it).

GM and Reva came together in September to produce a battery-powered version of the Spark, a popular car in south Asia, which was meant for sale in India later this year.

If India wanted to become a big player in electric vehicles, it needed to increase its supply of batteries. It’s not the technology, it’s the battery that is the key to making an electric solution commercial. GM has the biggest battery development centre in the US and is now building a second one in China.

The company, along with other auto giants, has sought assistance from the Centre to develop infrastructure before they start launching electric cars. Without proper infrastructure, electric cars can not get success. GM India is planning to launch the diesel version of the Chevrolet Beat next year, is upbeat about tier-III and tier-IV cities.

Auto industry growth impressive: Ford India

Ford India believes the growth shown by the Indian automobile industry is relentless. At a panel discussion on Tuesday by the Rotary Club of Chennai and the Chennai Business School on “Challenges and Opportunities of Doing Business in India,” Ford India’s Executive Director of Marketing, Sales & Service, Nigel Wark said, “The Indian automobile industry has grown 40 per cent this year over last year. It has a compounded annual growth rate (CAGR) of 15 per cent over a 10-year period. During the recession when our European markets were drying up and Indian banks had more or less stopped giving loans because there were no takers for loans… in that period, though Indians stopped taking loans, car sales did not reduce. I wonder whether they kept the money hidden under the mattress,” he quipped.

Wark said Tamil Nadu in particular offered many things that a foreign investor dreams of - excellent workforce, infrastructure, supply base, capability, investment potential in the area and the willingness of the government to support investors. “I think Chennai is India’s best kept secret,” he grinned.

Echoing his sentiments was Mike Nithavrianakis, British Deputy High Commissioner to South India. “I always tell British businessmen that India is a land of enormous opportunity and their best bet is to find a local partner in India who can help cut through the bureaucracy and the red tape,” he said.

India’s desperate need of the hour was to improve infrastructure and fast. He quoted a McKenzie report titled “India in 2030” which said that in 20 years, 40 per cent of the country’s population will live in cities. Currently 30 per cent of the population lives in the cities.

Is this the Best Race in the World?

The 24 hour Le Mans race is a one of a kind spectacle in the world of motor-sports. It is the only 24 hour car race of its kind anywhere in the world and it is a test of resilience and automotive engineering excellence. The cars all have to complete a race circuit in a 24 hour time frame with a few pit stops allowed for general maintenance and repairs to the cars and the possibility of changing the driver. If anyone out there has gone on a long car journey before they know just how difficult it can be to keep driving for an extended period of time. The racers in the Le Mans race do it every year and keep doing it over and over again.

The race itself is gruelling and takes every inch of strength and composure that the driver can muster up over the course. The race is also a testament to the high level of engineering excellence that one can find in the cars in the race. A car these days is engineered to be driven for a very long time and most good quality cars can easily be driven for ten years without anything major happening to them. All they require is a tune up and service once in a while. But the difference in the cars in the Le Mans race is that they are being driven at their top speeds, flat out for a continuous period of 24 hours. If something is going to go wrong with the cars it will happen during this long and extended race. "Le Mans, in France, is famous for the 24-hour race, which is a favourite of many British car racing and classic car enthusiasts. Various classes of sports car compete in a battle of reliability, attrition, fuel efficiency and speed during one weekend a year in mid June (12-13 June 2010).

The race that took place was a very exciting one and the highlight of the race seemed to be the entrance of the famous British Formula 1 race car driver Nigel Mansell to the grid. He was taking part in the race this year along with his sons, but his campaign was cut short with a pretty horrific crash early on in the proceedings. This shows just how gruelling and problematic the 24 hour race can be, if a professional F1 driver like Mansell can crash and not be able to complete the race where does that leave the rest of the drivers in the field? Maybe he should have stuck to being retired. Crashes though are part of the race and they happen all the time in all formats of motor-sports. It is just the combination of speed and endurance that sometimes gets the better of the drivers and they lose control of their vehicles. The fact that they are usually pushing the cars to their limits and making them go as fast as they can also contributes to errors in judgment and leads to crashes.

There is a purpose to the Le Mans race that was envisioned when it started in 1923. It is more than just racing at top speeds for the longest time possible and winning the race. There is a definite tie in the world of ordinary cars that the average public drive. "Instead of focusing on the ability of a car company to build the fastest machines of the time, the 24 Hours Le Mans would instead concentrate on the ability of manufacturers to build sporty yet reliable cars. This would drive innovation in not only reliable but also fuel-efficient vehicles, since the nature of endurance racing requires as little time to be spent in the pits as possible". The race then has nobler intentions than simply being a very cool and exciting sport. By pushing manufacturers to produce cars that can go for longer distances with less fuel they are helping the automotive engineering industry test new ideas that will help the dependence on foreign oil and come up with better engineered cars that can be used by the general public.

By also being a testing platform for car makers in addition to a very cool and interesting and unique race, Le Mans has cemented its place amongst the other strong racing formats in the world today and has been able to carve a distinctive niche for itself. The world of motor-sports is wide open these days with the innovations in racing and cars on show. Le Mans is set to continue this tradition for many years to come.

Figo's Success Is A Big Boost For Ford India

While 30000 units of Ford cars were produced this in the company's Chennai plant in the first five months, this production is more than the number of cars produced in the entire 2009's 12 months period. Due to the rising demands of Figo, the small car from Ford, the company will start the second shift of operations from this July. This will reflect in an increase in 40000 units more than the current production rate of 1,00,000 units per annum.

Ford Figo's success was evident from the 21000 bookings the car maker received through out its various dealership outlets across the country, coming in just 3 months from the date of Figo's launch. So far, according to the Ford India President, 16000 Figos are already delivered and the second shift operation will help the company to reduce the waiting time considerably.

Ford's new engine production plant in Chennai, has the capacity to produce 2.5 lakhs units per annum facilitating Ford India's export process. Currently, Figo is being exported to South Africa as a complete car. Also, the company is exporting its engines to Thailand for the Fiesta programme. As of now the demand is 2500-3000 engines per month in Thailand.

During May 2010, 6237 Figo cars were sold through the Ford's various dealers. Mr Nigel Wark, Executive Director for Marketing, auto Sales and Service, in Kochi was present at the occassion of the Ford India's president delivering the 1000th key to a Figo customer at Kairali Ford. According to him, Figo continued to be the top seller as the company's total sale of 8080 units that included all models contained more than 6200 units of Figo alone. He also added that the demands in Kerala marketed auto sales is increasing and the company hopes that once the second shift operations begin at the Chennai plant, it will facilitate in faster deliveries.

Mr Thomas J. Cherukara, Dealer Principal, Kairali Ford informed that Figo's popularity has witnessed a fantastic rise in Kochi and through their outlet, the dealer had sold close 700 cars in April 2010 alone, with an iconic number of 72 deliveries in a single day. Impressively, Ford's quick maintenance service in less than one and half hours is carried out in 50 outlets out of the 166 outlets across 97 cities of India.