New Delhi: There has been continuous speculation about Maruti Suzuki India's gameplan from April next year, when the M800 is phased out from the top 11 Indian cities. Since M800 and has traditionally formed the backbone of Maruti's entry level strategy, what will the company do to maintain its vice like grip on this segment? Already, the launch of Tata Nano is expected to start eating into Maruti's entry-level dreams.
Sources tell us that Maruti has devised a clever, two pronged strategy to meet this challenge: launch a new, upgraded Alto at a price premium, and simultaneously develop a 'cost down' version of the existing Alto to bring it close to the price levels of the M800.
The upgraded Alto, which is already under development and should be launched in the first quarter of next fiscal, will come with the advanced K-series engine and significant design and styling changes as well. It may be priced close to the Rs 3 lakh bracket but this could not be confirmed. Vendor sources say the company does not expect major volumes from this variant -- only 60,000-70,000 units a year.
But the 'cost down' version of the Alto is expected to generate sizeable volumes for Maruti. The company has already been working with vendors on the 'one gram, one component' principle to reduce the weight of each component used in making a car by a gram. This, coupled with other cost saving techniques, could well bring down the price of this 'cost down' Alto rather close to the base version of the M800 or could even within striking distance of the Nano!
So, six months down the line, a first time car buyer can choose between the existing Alto -- which will be priced at the bottom of the pyramid -- and the new, upgraded one.
The Alto has been one of Maruti's most successful models, averaging 19,000-20,000 unit sales a month. But sales of the erstwhile bread and butter model, the M800, have been declining continuously though top officials at Maruti insist that the model may see an upgrade to BS IV norms even now.
One thing is for sure though. The first indigenous car, which was launched in the early eighties, would not be selling in Mumbai, Delhi and nine other top cities of the country from April 2010 unless an upgrade is done to make it BS IV compliant.
Gearing up
Maruti developing new Alto with K-Series engine and significant styling changes
This new Alto will come at a price premium, could be in Rs 3 lakh bracket
The existing Alto may be replaced with a 'cost down' version
This model will be made BS-IV compliant and could be close to the existing M800 base variant or even lower, competing directly with the Nano
Showing posts with label Nano Booking. Show all posts
Showing posts with label Nano Booking. Show all posts
Nano Bookings may hit 10 -lakh mark
Bookings for the Nano draw to a close on Saturday (April 25) and indications are that Tata Motors will announce the final tally early next week.
Within industry circles, the general consensus is that there will be close to 10-lakh bookings, which will possibly make it the highest in the history of the Indian automobile industry.
Customers have a range of options for booking the car, be it procuring a loan from one of the banks associated with the plan or paying online.
Sources say that a “sizable chunk” coughed up the entire down-payment (ranging from Rs 95,000 to Rs 140,000) without seeking any financial assistance. This is particularly true for smaller cities and towns and possibly explains why a section of public sector banks handling the applications said the number of loan seekers was little to write home about.
Delivery pangs
“There is an enormous level of aspiration for the Nano, but potential customers are equally apprehensive about the waiting period,” sources said. The acid test for Tata Motors is timely delivery of the car.
There will be a draw of lots for the first one lakh customers, while only 50,000 cars will be produced this fiscal from an interim plant in Pantnagar, Uttarakhand. It is only during 2010-11 that bigger volumes of over two lakh units can be envisaged from the Sanand facility in Gujarat. Till then, buyers will just have to grin and bear it.
It is also a happy coincidence that the Maruti 800 is gradually being phased out from 2010 for reasons of emissions compliance (Bharat Stage 4), even though this will only be in 11 metros.
source: thehindubusinessline.com
Within industry circles, the general consensus is that there will be close to 10-lakh bookings, which will possibly make it the highest in the history of the Indian automobile industry.
Customers have a range of options for booking the car, be it procuring a loan from one of the banks associated with the plan or paying online.
Sources say that a “sizable chunk” coughed up the entire down-payment (ranging from Rs 95,000 to Rs 140,000) without seeking any financial assistance. This is particularly true for smaller cities and towns and possibly explains why a section of public sector banks handling the applications said the number of loan seekers was little to write home about.
Delivery pangs
“There is an enormous level of aspiration for the Nano, but potential customers are equally apprehensive about the waiting period,” sources said. The acid test for Tata Motors is timely delivery of the car.
There will be a draw of lots for the first one lakh customers, while only 50,000 cars will be produced this fiscal from an interim plant in Pantnagar, Uttarakhand. It is only during 2010-11 that bigger volumes of over two lakh units can be envisaged from the Sanand facility in Gujarat. Till then, buyers will just have to grin and bear it.
It is also a happy coincidence that the Maruti 800 is gradually being phased out from 2010 for reasons of emissions compliance (Bharat Stage 4), even though this will only be in 11 metros.
source: thehindubusinessline.com
Nano Forms nets Rs 15 crore to Tata Motors on 500,000 Bookings
State Bank cuts loan rates to 10 per cent.Within 15 days of opening the registration process for Nano, its Rs 1 lakh car, Tata Motors has sold nearly 500,000 application forms, raking in Rs 15 crore (at Rs 300 each). Distributors associated with the Nano bookings said most of the forms were likely to translate into bookings.
The sale of forms started on April 1, bookings began from April 9 and close on April 25.
State Bank of India (SBI), which has now decided to offer loans at 10 per cent during the first year, against 11.75 per cent before, has already issued over 100,000 forms, sources close to the development said. “Out of the total forms, one-fourth has been sold by SBI,” a person familiar with the bookings process told Business Standard.
On the number of bookings so far, a Tata Motors spokesperson described the response as “encouraging”. “The number of booking applications received will be announced after a few days of the closure of the booking process on April 25. All the booking applications will be subjected to a computerised random selection procedure. Within 60 days of the closure of bookings on April 25, Tata Motors will process and announce the allotment of 100,000 cars in the first phase of deliveries,” the spokesperson said in an e-mailed response. Delivery of the car will begin from July, the statement added.
SBI has been distributing the forms since April 5 through its 1,350 branches in more than 850 cities. In all, Tata Motors is using around 30,000 outlets, including group-owned retail chains Croma and Westside, in about 1,000 cities for distribution of forms.
Other financiers with whom Tata Motors has tied up include Tata Motor Finance, ICICI Bank, Axis Bank and Punjab National Bank. The forms are also sold through 218 dealers. In the first lot, each dealer was given 2,500 forms. Almost all of them exhausted these by the end of the third day.
Nano car loans carry a maximum tenure of seven years, against five years for most car loans. Interest rates for Nano are in line with other car loans now, which is estimated at 10-11 per cent. In addition, most banks have also started providing a finance facility for the booking amount of Rs 3,000.
The sale of forms started on April 1, bookings began from April 9 and close on April 25.
State Bank of India (SBI), which has now decided to offer loans at 10 per cent during the first year, against 11.75 per cent before, has already issued over 100,000 forms, sources close to the development said. “Out of the total forms, one-fourth has been sold by SBI,” a person familiar with the bookings process told Business Standard.
On the number of bookings so far, a Tata Motors spokesperson described the response as “encouraging”. “The number of booking applications received will be announced after a few days of the closure of the booking process on April 25. All the booking applications will be subjected to a computerised random selection procedure. Within 60 days of the closure of bookings on April 25, Tata Motors will process and announce the allotment of 100,000 cars in the first phase of deliveries,” the spokesperson said in an e-mailed response. Delivery of the car will begin from July, the statement added.
SBI has been distributing the forms since April 5 through its 1,350 branches in more than 850 cities. In all, Tata Motors is using around 30,000 outlets, including group-owned retail chains Croma and Westside, in about 1,000 cities for distribution of forms.
Other financiers with whom Tata Motors has tied up include Tata Motor Finance, ICICI Bank, Axis Bank and Punjab National Bank. The forms are also sold through 218 dealers. In the first lot, each dealer was given 2,500 forms. Almost all of them exhausted these by the end of the third day.
Nano car loans carry a maximum tenure of seven years, against five years for most car loans. Interest rates for Nano are in line with other car loans now, which is estimated at 10-11 per cent. In addition, most banks have also started providing a finance facility for the booking amount of Rs 3,000.
300,000 have visited Tata showrooms in last 10 days
Tata Motors began taking orders for its new Nano car on April 1st. It sells for $2050, no joke. Over 300,000 Indian have visited Tata showrooms in the last 10 days. For most buyers the vehicle is an upgrade from a motorcycle or motorized scooter.
Nano production lines are expected to be backlogged for a while and the automaker will only accept 100,00o orders for now. The rest of the customers may have to wait several quarters for their wheels.
Nano production lines are expected to be backlogged for a while and the automaker will only accept 100,00o orders for now. The rest of the customers may have to wait several quarters for their wheels.
Tata Nano fever continues as official countdown of Nano booking started
Tata Motors started accepting its booking form. The last day of submission is April 25, 2009. On the same day, the company sent 400 Nano cars in various showrooms around India. A Tata Motors spokesperson said that the booking had been very encouraging but did not disclose any specific figure.
From April 1, 2009, Tata started selling the booking forms of its Tata Nano car. Tata Motor Finance, a subsidiary of Tata Motors, has become one-stop information center for the booking of Tata Nano. Tata is also selling its Tata Nano booking forms from its fashion retail outlets, Westside and electronics retail outlets, Croma. Interested buyers can also get the booking form from the official website of Tata Nano. Already, the website received 20 million hits and around three hundred thousand visitors walked into various showrooms to see the cheapest car of the world.
In the state of Uttarakhand in Northern India, Tata Nano booking form was launched in April 9, 2009 and there was a large crowd of interested buyers. Already 2000 forms have been sold in Dehradun. Tata Nano will be rolled out from the Tata manufacturing plant in Pantnagar Uttarakhand. In the first phase of production, Tata Motors will produce 100,000 cars and they will be allocated to the customers for the next three weeks.
Tata Motors will start delivering Tata Nano from July but before the car is delivered to the owner, they would have to pay large amount of money. Interested buyers would have to buy the booking form for Rs. 300. Then they would have to pay Rs. 95,000 booking fee for the base model, Tata Nano and Rs. 1,40,000 for the luxury model.
Tough times for the Indian two-wheeler industry:
Ratan Tata, Chairman, Tata Motors has high hopes with Tata Nano. He said that the idea of the car came to his mind and when he saw the cravings of low-cost two wheelers among the Indians. Tata believes that Tata Nano would shift Indian people’s interest from buying motorcycle. Does this mean, the two-wheeler industry of India is at stake? Well, there is a good possibility. In the past, a man with Rs. 100,000 would never thought of buying a car. He would buy a motor cycle. Now, he would go for a car. Same goes for a person who has Rs. 200,000. Now, these people can think of buying a car. However, there are many people for who Rs. 100,000 is still too much. In 50,000 or below, he/she could buy a motor cycle but not a car. Currently, one people in one thousand owns a car in India. Surely, Tata Nano will change the ratio but two-wheelers would not become obsolete. Moreover, India is facing economic crisis. So, many people will try to save as much money as possible.
Will Nano change Tata’s fortune?
I already wrote few posts on Tata Motors and its challenges. Tata is now in serious crisis. India has been affected by the worldwide economic downturn and Tata is also affected. Tata is the largest automobile producer in India at present. In 2008, the company bought Jaguar and Landrover. To buy these two brands, Tata borrowed huge amount of money. Now, the company is under financial pressure. It is incurring huge losses as sales of trucks and buses went down significantly in India which is its core business. An analysts commented that even if Tata becomes successful with Tata Nano, it would only make up a small portion of its overall profit.
Still, Tata Nano is a major milestone in Tata Motors’ history. For the first time, there is a car made for the mass and thousands of people are gathering up to buy the Nano. Small or big, it is going to be a great achievement for Tata Motors.
From April 1, 2009, Tata started selling the booking forms of its Tata Nano car. Tata Motor Finance, a subsidiary of Tata Motors, has become one-stop information center for the booking of Tata Nano. Tata is also selling its Tata Nano booking forms from its fashion retail outlets, Westside and electronics retail outlets, Croma. Interested buyers can also get the booking form from the official website of Tata Nano. Already, the website received 20 million hits and around three hundred thousand visitors walked into various showrooms to see the cheapest car of the world.
In the state of Uttarakhand in Northern India, Tata Nano booking form was launched in April 9, 2009 and there was a large crowd of interested buyers. Already 2000 forms have been sold in Dehradun. Tata Nano will be rolled out from the Tata manufacturing plant in Pantnagar Uttarakhand. In the first phase of production, Tata Motors will produce 100,000 cars and they will be allocated to the customers for the next three weeks.
Tata Motors will start delivering Tata Nano from July but before the car is delivered to the owner, they would have to pay large amount of money. Interested buyers would have to buy the booking form for Rs. 300. Then they would have to pay Rs. 95,000 booking fee for the base model, Tata Nano and Rs. 1,40,000 for the luxury model.
Tough times for the Indian two-wheeler industry:
Ratan Tata, Chairman, Tata Motors has high hopes with Tata Nano. He said that the idea of the car came to his mind and when he saw the cravings of low-cost two wheelers among the Indians. Tata believes that Tata Nano would shift Indian people’s interest from buying motorcycle. Does this mean, the two-wheeler industry of India is at stake? Well, there is a good possibility. In the past, a man with Rs. 100,000 would never thought of buying a car. He would buy a motor cycle. Now, he would go for a car. Same goes for a person who has Rs. 200,000. Now, these people can think of buying a car. However, there are many people for who Rs. 100,000 is still too much. In 50,000 or below, he/she could buy a motor cycle but not a car. Currently, one people in one thousand owns a car in India. Surely, Tata Nano will change the ratio but two-wheelers would not become obsolete. Moreover, India is facing economic crisis. So, many people will try to save as much money as possible.
Will Nano change Tata’s fortune?
I already wrote few posts on Tata Motors and its challenges. Tata is now in serious crisis. India has been affected by the worldwide economic downturn and Tata is also affected. Tata is the largest automobile producer in India at present. In 2008, the company bought Jaguar and Landrover. To buy these two brands, Tata borrowed huge amount of money. Now, the company is under financial pressure. It is incurring huge losses as sales of trucks and buses went down significantly in India which is its core business. An analysts commented that even if Tata becomes successful with Tata Nano, it would only make up a small portion of its overall profit.
Still, Tata Nano is a major milestone in Tata Motors’ history. For the first time, there is a car made for the mass and thousands of people are gathering up to buy the Nano. Small or big, it is going to be a great achievement for Tata Motors.
THE PEOPLES CAR- Nano Booking Starts
Nano, the India's symbol of expertise Engineering, has launched on March 3. the company had chosen March 3 because Jamsetji Tata, the TATA Group founder is celebrating his birth anniversary on the day.a spokesperson for Tata Motors said, When contacted that they have not announced any marketing plans or an official date so far.
the first lackey owner of the car may be any human on the world who booked, because Tata Motors announced that the first Nanos' proud owners will be chosen by a lackey draw. the First "Peoples Car" recipients May be a Common Middle class man to the Top Level Business People,Politicians, film and Sports Stars.The booking amount for the world’s cheapest car NANO "THE PEOPLES CAR" is around Rs 70,000. Bookings for the peoples car are begane form February. After paying about 70% of the car’s total cost but even you should wait quite long.
Information Form familiar sources said that all the State Bank of India (SBI) will also accept bookings across the country starts from next three weeks.SBI and TATA entered onto an arrangement for "the peoples car".SBI will offer bookings for its branches.SBI will engaged 100 branches in the first and make them to 1000 simultaneously.Tata Motors company hopes to collect initial bookings of over one lakh cars and make about Rs 700 crore fo money in a week.
The Pantnagar plant in Uttranchal can produce a fraction of the total demand it is only about 3000 cars per month, but it will take about a year to come out of this when Seconnd plant near Ahmadabad will starts it production this plan can prodice about 250000 cars per annum.
Book Nano @ your Own city... Form More details Click Here
the first lackey owner of the car may be any human on the world who booked, because Tata Motors announced that the first Nanos' proud owners will be chosen by a lackey draw. the First "Peoples Car" recipients May be a Common Middle class man to the Top Level Business People,Politicians, film and Sports Stars.The booking amount for the world’s cheapest car NANO "THE PEOPLES CAR" is around Rs 70,000. Bookings for the peoples car are begane form February. After paying about 70% of the car’s total cost but even you should wait quite long.
Information Form familiar sources said that all the State Bank of India (SBI) will also accept bookings across the country starts from next three weeks.SBI and TATA entered onto an arrangement for "the peoples car".SBI will offer bookings for its branches.SBI will engaged 100 branches in the first and make them to 1000 simultaneously.Tata Motors company hopes to collect initial bookings of over one lakh cars and make about Rs 700 crore fo money in a week.
The Pantnagar plant in Uttranchal can produce a fraction of the total demand it is only about 3000 cars per month, but it will take about a year to come out of this when Seconnd plant near Ahmadabad will starts it production this plan can prodice about 250000 cars per annum.
Book Nano @ your Own city... Form More details Click Here
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