Tyre Prices Shooting Up In India
There has been an increase in the prices of the car tyes. And the 7 per cent increase for the tyre price is because of the high demand and low supply. The car owners actually need not spend an extra 5 to 7 per cent. But it is the carmaker who needs to shell out an additional cost of Rs.800 for a new tyre for every new car they sell.
A deficiency of tyres in the market has become the reason for decrease of inventories at tyre makers to just 5-7 days from 20-25 days. And this is seriously affecting car manufacturers such as Maruti Suzuki, Hyundai Motor India, Tata Motors, General Motors India and Ford India. There isn't any clear information on how much are the carmakers affected by this situation.
"There is a demand-supply mismatch. While production has increased in the past few weeks, the supply of tyres has not kept pace, resulting into shortages. We have asked tyre companies to augment supplies but that has not happened yet," a senior executive at Tata Motors said.
Auto makers assume that tyre companies are charging arbitrary prices. But the tyre makers are of the opinion that they are trying to meet the demand despite production constraints.
"Tyres are a capital-intensive industry and there has been no major capacity addition in a year due to slowdown in the market and economic recession. While sales have jumped in recent months, production has not increased to that level, leading to shortages," said a senior executive of a tyre company on condition of anonymity. It is expected that the price will be dropped once the festival season is over and the demand for cars come down.
Bajaj Mulling Over its Ultra Cheap Car Project
Bajaj had announced that it will introduce its ultra cheap car in the Indian market, soon after the Nano was launched. The car is coded as ULC and a feasibility study is underway to study the economic and technical feasibility of such a project in India.
''The techno-economic feasibility for the passenger 4-wheeler will be evaluated by Bajaj-Renault-Nissan for a final decision, leading to firming up of the co-operation parameters among partners and a suitable JV agreement,'' according to the company.
Bajaj will build this car in association with Nissan and Renault in India. The USP for selling this car will be its fuel economy as Bajaj promised that this car will deliver the best mileage, exceeding any other small car in the country and will be the most fuel efficient car in India. It stated the emphasis will be on the fuel economy and not the car's price. The car will be built at Bajaj's Chakan plant near Pune with an initial capacity of producing 250,000 units annually.
Bajaj is also revamping the car's design which was originally designed by Renault. The new design will take into consideration aerodynamic aspect and other features that will enable car to deliver better mileage.
[Via: cartradeindia]
BMW Motorrad To Launch Superbikes In India
13 years back BMW has entered the Indian superbike scene with the F650 through a joint venture with the Hero Group, but things did not go as planned. BMW is planning another foray into the country's minuscule high-end motorcycle market and is planning to introduce its Motorrad range of super bikes in India which will cost in excess of Rs. 10 lakh.
However BMW India could take 1-2 years before anything is finalised. BMW Motorrad is a brand used by the German company for its motorcycles, which are in production since 1923. BMW Motorrad's G series, F series, R series and K series are available around the world. These bikes range from 450 cc capacity to 1300 cc capacity and are designed for off road, sport and touring purposes.
[Via: motorbeam]
You need to log in to vote
The blog owner requires users to be logged in to be able to vote for this post.
Alternatively, if you do not have an account yet you can create one here.
Powered by Vote It Up