NEWS RELATED TO MID CAR SEGMENT

 Maruti SX4 diesel to be launched this February

Maruti SX4 Diesel, one of the most awaited car launches in the Indian market, is all set to
mark its debut in the country in February 2011. The car is already available in the petrol
version in India, and the launch of diesel version will further strengthen the position of this
mid-size sedan, here.

Sporting Fiat’s 1.3 Multijet diesel mill at its heart, the new Maruti SX4 diesel will be capable
of delivering a peak power of 90bhp. The same engine has already been doing duties in
Fiat’s Linea and Tata’s Indigo Manza. The SX4 diesel will carry the same base engine that
powers Maruti’s volume driving Swift and Swift Dzire mated with the Variable Geometry
Turbo (VGT). As per the industry sources, the new SX4 diesel will be around 70 kg lighter
than its petrol counterpart, delivering a better mileage and lower emission level

Amidst the growing competition in the entry-level sedan segment, the new SX4 diesel is
expected to be competitively priced in the segment of sub Rs 7 lakh, slightly higher than its
petrol version. The major competitors of the SX4 model in the Indian market include
Volkswagen Vento, Toyota Etios, Ford Fiesta, Hyundai Verna Transform and Fiat Linea.

 Renault working on global, low-cost car for India

French automaker Renault is keen on developing an affordable car for the Indian market
that could be positioned above the Tata Nano in the sub-Rs 3-lakh space.

“Our history has been democratisation of technology and making cars affordable to a vast
number of people. I cannot comment on the pricing of this product but it will be
sandwiched between the ultra-low cost car planned with Bajaj Auto and other existing
models,” Mr Jerome Stoll, Executive Vice-President, Sales and Marketing of Renault, told
Business Line.

Growth drivers

Indications are that the car will be produced on a global platform, which will also cater to
Brazil and other emerging economies. In that case, the business plan will be pretty much on
the lines of what Toyota is planning with the Etios compact. Renault has already zeroed in
on India and Brazil, along with Russia, as its future growth drivers beyond Europe.

Mr Stoll said Renault was convinced that there was a market for an affordable car in India.
“If we want to be a major player both in India and other price-sensitive countries, this will
be a priority,” he added. This explains why the company is pursuing a similar plan in Brazil
where there is a sizable market for affordable cars. It will, however, be dearer than the one
for India thanks to a host of levies.

Ultra-low cost car

Incidentally, the ULC with Bajaj is due to hit the roads in mid-2012 and is expected to start
off with a base price tag of Rs 1.5 lakh and going upwards. Bajaj has been entrusted with
the responsibility of developing the car where the focus will be on mileage of over 30
kilometres to a litre.

China, interestingly, does not figure in Renault's priority list though its global ally, Nissan, is
working actively on growing its market share there. India's car market is still a fifth of
China's but Renault believes that it still holds immense potential. “When we look at the
rapid pace of growth in India, we are confident that there is room for us,” Mr Stoll said.

The company is categorical though that it will first focus on the large domestic market
where five models, including two compacts, have been planned over the next two years.
“We have to optimise the resources available here and are already sourcing engineering
work, components and services,” he said.

Renault's India chapter did not exactly start on a promising note with the joint venture
with Mahindra & Mahindra achieving little with the Logan in terms of numbers. “Brand
awareness of Renault is still low and this could just end up being a big opportunity to
redefine what we want to do now,” Mr Stoll said.

The company's logic in starting off with its new innings with the Fluence is more to do with
positioning and conveying the Renault DNA. “It is a good way to showcase our technology
in the upper end of the segment while meeting the customer's expectations,” he added.

Audi launches R8 5.2 FSI in India

German luxury car manufacturer Audi announced the launch of the much awaited all
new Audi R8 5.2 FSI for India, strengthening its position in the super sports car
segment

While Audi might be well known among the general motoring population in India for its
luxury cars and mighty SUV’s, the company’s flagship is nothing short of a supercar – the
R8. Introduced back in 2006 with a V8 engine, the R8 quickly became the supercar of
choice for those with a more practical disposition – a territory hitherto reserved for the
famous arse-engined sports cars from Audi’s compatriot competitor. But what really got
everyone talking was the upgrade from the original 4.2-litre V8 motor to a brand new 5.2-
litre FSI V10 engine from the Lamborghini Gallardo. And while the older version of the R8
was available for quite some time now in India, the latest, more powerful and faster version
of this mid-engined monster of a sportscar has made its way to our shores.
Propelled by the powerful V10 engine which makes a staggering 525PS of power and
530Nm of torque, the new Audi R8 V10 goes from zero to 100 km/h in a scant 3.9 seconds,
and boasts a heady top speed of 316 km/h! This combined with the lightweight aluminium
body built around the Audi Space Frame chassis and the company’s proprietary Quattro
permanent four-wheel drive system also makes for a sharp handling package which
matches, if not bests, some of the top supercars in the world. The R8 5.2 FSI will be
available with a six-speed manual transmission or Audi’s R-tronic electro-hydraulic manual
gearbox which manages ultra fast gear changes.

 M&M expects pickup segment to grow at 16%

The company said that growth in the segment has been slow of late but with the launch of
its “next generation” pickup truck Genio, M&M was confident of driving up the entire
segment’s annual growth figures from its current 5-6 percent.

Mahindra, India's largest utility vehicles maker, are market leaders in the pickup category
with 75 percent share, Senior Vice President, Marketing, Vivek Nayer said. India’s pickup
segment sells 85,000 units annually, according to the company.

“The growth has been quite slow in this segment, but we expect to create an almost entirely
new market with Genio and extend the sector,” Nayer said.

The 1.25-tonne pickup truck, priced at Rs 5.05 lakh (ex-showroom West Bengal), was
launched in Kolkata on Friday.

The truck will available in 70 of its dealerships from Friday and will see a pan-India launch
by mid-February.

“With this vehicle, we are targeting an entirely new user base, the captive segment —
people who will own this vehicle instead of hiring a truck at Rs 300,” Nayer said.

The company too is positioning the truck as performance pickup that is high on the style
quotient. With plush interiors, superior cab design and car-like comfort, Mahindra is
banking on the platform to do well and crate its own niche.

“We are also looking at coming up with a double cab design — one that will have two rows
of seats — sometime in the future,” Nayer said.

The company said it intends to export the Genio in about six months. SAARC (South Asian
Association for Regional Cooperation) and African nations were on the top of its list for
potential markets, officials said.

M&M has poured in Rs 225 crore for the truck’s design and manufacturing and it ships
from its facility in Chakan, Maharshtra, which has a monthly capacity of 2,000 units which
can be ramped up, Nayer said.

“We have priced the product very aggressively and coupled with its style and performance
we are sure that it will appeal to young people,” Subir Bhadury, Deputy General Manager -
Sales, said.

“Since we are the market leaders, the game for us is not just increase our share but to
actually strengthen the segment,” he added.

Volkswagen Entering Crowded Mid-class

Segment

In order to become the top selling car company in the U.S., Volkswagen should win the middle-class
car buyers with their new redesigned sedan. The Passat is a bigger and less expensive version of
the older Volkswagen model. The car now jumped into a crowded field. VW might hopes that their
new car will steal customers’ attention from the competitors such as Ford Fusion and Hyundai
Sonata.
The German company wraps off their revamped car in the media previews at the north American
International Auto Show in Detroit. Jonathan Browning, VW’s president and chief executive for the
Americas promise that this car will change the rules in the midsize car segment. The Passat must
appeal the mid class budgets, as well as the American tastes if VW wants to meet their goal to
tripling the overall sales in a decade.

Last year, Volkswagen was sold only 360,000 vehicles in the United States. The announcement of
VW’s Passat came on the same day with other companies announce their new car in the auto show.
They are Honda Civic, Chrysler 300 sedan, and Prius wagon. VW was succeed to gain consumers
attention with their Beetle decades ago, and they hope the Passat will do the same.

Top 5 mid-segment cars that drove 2010

Bangalore: India has been the ultimate investment hotspot for automobile manufacturers
and why not? It has got all the kind of tastes they expect from an automobile market. The
news for a new luxurious sedan launch or a small family-economy car is greeted with equal
interest and enthusiasm in the part of the world. It has been common man's hub as well as
deep pocketeer's one-stop abode. It's worthy to mention mid-segment cars to such a
market at a time when price and performance are two factors mainly driving customer's
decision to buy a car.

Now if you are really confused about 'mid-segment' let's make it as simple as any car
between range of 4 lakh rupees to 9 lakhs which is a standard price criterion under which
even sedans can sport. Here are top 5 mid-segment cars that had its dream run in 2010.

Swift Dzire - It's a piece of machine from the house of Maruti Suzuki which is similar in
front fascia with its sibling Swift and drew much favor to the brand in mid segment in 2010.
It carries flashy chrome grille and slightly sharper design headlamps. The car's interior
does not lag behind either giving luxurious look or feel. The Dzire provides a choice of the
same two engines available on the Swift. The petrol engine powered by 1.3L 16-valve In-
line 4 churning out 87bhp and the diesel variants get a 1.3L turbocharged DDiS engine that
delivers 75bhp. The Dzire comes with a standard 5-speed manual transmission and an
estimated fuel economy of 15.9 km/l for the petrol version and 21 km/l for diesel version.
The starting price of Maruti Suzuki Swift Dzire is Rs 4.7 Lakh (ex-showroom)
Ford Fiesta - Go Fida (Go crazy), says the Fiesta commercial. Truly, Ford really knows how
to make cars handle, so even the cheapest Fiesta will thrill the driver in you. This sedan is
more spacious than others in its segment; its interior design makes maximum use of the
additional width of the Fiesta's body structure, providing ample seating for five adults. It
has helped Ford to speak real selling figures this year. The Fiesta has three engine options:
a 1.4L Duratec petrol engine that gives 81 bhp, a 1.4L Duratorq diesel engine that delivers
67 bhp, and a 1.6L Duratec petrol engine that churns out 100 bhp. A 5-speed manual
transmission is standard. The estimated fuel efficiency is 10 km/l in the city and 15 km/l
on the highway. The starting price of Ford Fiesta is Rs 5.87 Lakh (ex-showroom)

Honda City - If you envy this car for winning many coveted awards this year, well you do it
for the hard work Honda has put in giving the model a difference from its first design and
boosting its sales. The Honda City is freshened from head to toe for this year. It is all-new in
every sense of the term. Its grills are different, and are more stylish than before. The City
comes with an Arrow Shot form design which means the vehicle is slightly inclined starting
from the back to the hood. It is in performance that the Honda City really scores. To match
the changes carried out all around, the engine is a new one. The 1.5-liter i-VTEC delivers
fine power of 116 bhp making it capable of handling just about any situation with aplomb.
The wonderful acceleration and great safety attributes of the car fully justify its top
ranking. The car costs within the range of Rs 7.5 Lakh to Rs 8.6 Lakh (ex-showroom)

Fiat Linea - This Fiat model is refreshingly different. The car was slated for a much earlier
release in the Indian car market, but a look at it is enough to reveal that the car worth the
wait. And it has also managed enough bookings for Fiat to be glad about. The heart of the
car has a refined engine that comes in both petrol and diesel variants. Fiat likes to call these
the Advanced Multijet Diesel and FIRE petrol. The diesel engine drives on a 1.3-litre
Variable Geometry Turbocharger with 85 bhp, while the petrol version is a little more
powerful at 89 bhp on its 1.4 litre. The engine combines in real good measure with the fine
suspension to help the Linea handle Indian conditions with aplomb. It priced around an ex-
showroom price of 8.55 lakh

Hyundai Verna - Hyundai is now putting together cars better than before and the Verna
comes through as a quality product with a tight attention to detail. It seems the car has
spent some serious time at Hyundai's proving grounds in South Korea to get its ride and
handling sorted, while its architecture is stiffer than the Accent - allowing it to give a more
integrated feel. Though its looks really can't impress the buyer, its cost and performance
stand out in the competition. The Verna comes with a 1.5L diesel engine that generates 110
bhp and a 1.6L petrol engine that delivers 102 bhp. A 5-speed manual transmission is
standard. The estimated fuel efficiency is 11 km/l in the city and 16 km/l on the highway.
The starting price of Hyundai Verna is Rs 6.26 Lakh (ex-showroom)
Maruti India Plans to Increase Production [January
13, 2011]
To cater to the Indian customers well, Maruti Suzuki India is planning to produce 1.2
million cars in the current financial year. From the last five months, the company is
continuously increasing the production of its cars. Now, Maruti Suzuki India is producing
one lakh cars every month. The company will soon start the production from its second
manufacturing plant in Manesar. With this, Maruti can increase its production further.

With an investment of Rs 1,000 crore, Maruti is also on the process of establishing a new
test track in Haryana. For this, the company has also purchased a land. The company is
establishing infrastructure and facilities in this test track. The company expects that they
can start work for this test track in three years.

Recently, Maruti Suzuki India was awarded with the prestigious title, the "Manufacturer of
the Year" for 2010. Maruti is dominating the small car segment in India. However, now,
they are preparing to dominate the premium car segment as well with Maruti Suzuki
Kisazhi, which will be launched in India soon.

Volkswagen Polo Bags top Honour [January 12,

2011]
Volkswagen Polo received the top honour at The Business Standard Motoring awards 2011
by achieving the 'Business Standard Car of the Year award'. The award function was
enriched with the presence of eminent personalities like Chitrangada Singh, the famous
actor from entertainment industry. A jury containing the motor experts selected
Volkswagen for this award.

Volkswagen faced stiff competition from 10 other brands in this category. So, it was very
tough for the jury to find out the right car for the award. But, defeating all the other
competitors Volkswagen achieved this award. Volkswagen launched in India in February
2010. With the introduction of this car, the market share of the existing giants such as BMW
5, Skoda Yeti, Chevrolet Beat, Maruti Suzuki Wagon R, Volkswagen Vento, Tata Aria, Nissan
Micra, Toyota Etios and the Ford Figo shook. Volkswagen Polo is coming with a price tag of
Rs 4.54 lakh.
New Fiat Palio will Hit in India Soon [January 14,
2011]
The Italian auto maker Fiat is planning to introduce new Fiat Palio in India soon. This will
be an extended version of the existing hatchback model, Fiat Palio. The new model will be
entered in India with a new name. The company is planning to introduce the diesel and
petrol version of this new model. This will be loaded with a 1.3 Litre multi jet diesel engine
and 1.0 Litre petrol engine.

The position of upgraded version of Fiat Palio will be below Fiat Grande Punto. So, it will be
coming with a price tag of Rs 4 lakh. The competitors for this new car are Chevrolet Beat
and Maruti Wagon R in Indian Auto market. However, Fiat is didn't reveal much
information about this car.

Currently, Fiat is working in Indian auto industry with the collaboration of Tata Motors.
Fiat is facing difficulties in Indian market currently so they are working on new strategies
to regain their glory in Indian auto industry.

Honda Brio Targets Small Cities [January 12,

2011]
Honda Motors, the manufacturers of upcoming car Honda Brio is targeting small cities
for the success of this new car. The company is going to introduce this car in
collaboration with regional and state run banks. The company is concentrating on small
cities in order to avoid failures which they faced in the case of Honda Jazz.

Jnaneshwar Sen, the Vice-President of Honda Siel Cars, said that by targeting small
cities, the company ensures the success of Honda Brio. The company is designed the
car in such way to fit the small families in urban areas along with big families in small
towns.

Honda Motors hope that they can introduce Honda Brio by September 2011. The price
of this car will be Rs 5 lakh. The company believes that the car perfectly fit the urban
needs so they target small towns. During 2010, the small towns played a major role and
it contributed above 30% growth as well