Archive for Tata

I think we now know why Maruti’s low cost car was revealed to the banks earlier this month, they were probably pitching it to the banks to see if they would grant loans for people who want to buy it!

Banks in India are saying that they would only grant loans to buy the Tata Nano to second time car buyers instead of motorcycle owners who are looking to upgrade to a car. “We will not look to finance the purchase of the Tata Nano for those who already own a motorcycle but are stretching their budgets to buy a car. We have faced numerous problems of motorcycle loan defaults,” said an unnamed banker in an interview with Business Standard in Mumbai.

Rates to finance the Tata Nano are also expected to be higher at 18 to 19% instead of a usual new car interest rate of 13 to 14%, although it is still lower than the usual used car interest rate of 22%. This is because usually low income owners that buy such cars usually have their finances stretched to the limits every month, especially in the wake of astronomical fuel prices. This is also why Proton cars usually have higher interest rates than foreign makes in Malaysia.

According to a report by Marinews, it seems that the impending launch of the Tata Nano has had a bad effect on the used car market in India, with used car sales dipping between 15 to 30 percent because buyers are waiting for the Tata Nano to be launched before deciding whether to buy a Nano or a used car.

Even used car values are affected, with cars like a 6-year old Maruti 800 dipping in value by 30% from 110,000 rupees to 75,000 rupees and a 5-year old Hyundai Santro’s 200,000 rupee value down to 165,000 rupees. Values of small cars that are usually purchased by budget-concerned buyers are generally hit the most, because of the fear of an impending rise in fuel prices. Some of these buyers would have to go back to bikes.

The Tata Nano is a no-frills car, but one of the more well-equipped, pricier versions of the Tata Nano will feature dual front airbags. And with luck, they’ll only increase the cost of the car by a minimum. Autoliv IFB India on the request of Tata is trying to develop a US$10 airbag for the Tata Nano, less than 10 times the price of airbags in other compact cars which cost around US$150 per airbag.

Swedish-American company Autoliv currently supplies 28% of the world’s airbags. In our market, an Autoliv joint venture with a Japanese company called Autoliv Hirotako Sdn Bhd supplies airbags for Proton, and the upcoming Perodua MPV.

Given that even these normally priced airbags sometimes do not work completely as intended and may end up injuring or killing occupants rather than saving them, are US$10 airbags really safe to use?

Related Posts:
Tata Nano: how did they do it? Cost-cutting secrets exposed
Tata Nano: the name of the Tata 1-lakh car

MV Agusta F4 Tamburini

Apparently MV Agusta could have a new owner or at least a large shareholder in the form of Tata Motors, according to Italian bike magazine euroMoto. MV Agusta used to be owned by Proton and was disposed of a few years ago for a sum fo 1 Euro. Since then, MV Agusta’s new owners have not been able to do much with the company, and its ails continue, lacking funds to channel towards new product development.

Source [ Translated ]

Related Posts:
Tengku Mahaleel and Tun Dr M question the sale of MV Agusta

Business Times reports quoting sources that there are currently four runners in the race for the Tata franchise in Malaysia, currently held by DRB-HICOM’s Scott & English (M) Sdn Bhd. The current franchise agreement will expire in May 2008, and DRB-HICOM holders themselves have expressed that letting the franchise go is one of the options being considered pending results from an internal evaluation.

The interested parties are: 1) DRB-HICOM of course, this would mean they would keep the franchise, 2) the owners of Brooklands Motors Sdn Bhd (Citroen) and Competitive Supreme Sdn Bhd (Ssangyong), 3) Sime Darby Berhad (BMW, Hyundai, Inokom, Alfa Romeo, Land Rover) and 4) Naza.

If Naza gets a hold of the Tata franchise, it will be able to sell the Tata Nano here, probably positioned lower than the Naza Forza. Sime Darby will already have a relationship with Tata through its Land Rover distributorship here as Land Rover has just recently been bought over by Tata.

Related Posts:
Tata Nano archive at this blog

Source

The Tata Indica Silhouette concept car is unlike what you’d expect an Indica to be. This is not a budget city car with a tiny engine, but rather a track monster powered by a 3.5 liter V6 mounted at the rear of the car, powering the rear wheels as well. This setup instantly reminds us of the Renault Clio V6, but this isn’t exactly a production road car, so think of it more of similiar to the Golf GTI W12-650.

The 3.5 liter V6 engine (a race-ready version of the Renault-Nissan VQ engine) produces 330 PS at 7.000rpm and sends the 850kg Tata Indica Silhouette barrelling down the roads up to the 100km/h mark in just 4.5 seconds, up to a top speed of 270km/h. The engine is mated to a 6-speed sequential gearbox.

The 2-seater car is built on a space frame steel chassis made with aeronautical steel and uses the engine as a stress member. The car uses an adjustable progressive rate pneumatic suspension system. For track duties, it has a data logging system and a high-accuracy GPS unit.

So in reality this isn’t exactly an Indica adapted to fit a V6 in the rear, but a space frame and an engine with a shell made to look like an Indica put on top of it, much like R3’s rear wheel drive Waja.

DRB-HICOM is currently evaluating whether or not to keep the Tata franchise in Malaysia, according to DRB-HICOM group managing director Datuk Mohd Khamil Jamil. Options currently are the logical three - A) keep as is, B) expand, or C) let go. According to Business Times, DRB-HICOM officials will be meeting up with representatives from Tata in May 2008 to discuss the future of the brand in Malaysia.

The current agreement between DRB-HICOM 70% owned Scott & English (M) Sdn Bhd and Tata Motors will expire by June 2008.

Tata is currently ramping up efforts in our region, with the new Tata Xenon (shown above) launched in Thailand not too long ago. Tata has been constantly featured in world headlines for the past few months thanks to its Tata Nano low cost car project and its recent acquisition of the Jaguar and Land Rover premium brands.

The Jaguar and Land Rover deal has been sealed, and the two companies go to Tata Motors, which will pay US$2.3 billion for them. As part of the deal, Ford will inject US$600 million of the US$2.3 billion into the two companies’ pension funds, leaving about US$1.7 billion remaining for Ford’s coffers. Ford will have no stake in the companies after the sale is completed.

Most of the management team will be retained, and Ford will continue to supply Jaguar and Land Rover with powertrains and technology for the time being, depending on existing supply agreements. Ford Motor Credit Co will also provide financing for Jaguar and Land Rover dealers and customers for the period of up to 12 months. The deal includes the Rover, Daimler and Lanchester brand names.

Tata Motors says it was confident this investment would have a positive effect on its balance sheet in the long run. Shareholders do not seem to share these sentiments as Tata Motors shares dropped as much as 7.3% yesterday, finally settling on a 3.6% drop at the end of the day as analysts says the deal will be a strain on the balance sheet. As for Ford, the money will help it focus on turning around its North American operations, which are currently operating at a loss.

The other bids for Jaguar and Land Rover are former Ford CEO Jacques Nasser’s One Equity Partners, Ripplewood, and Texas Pacific Group, which was advised by Bob Dover, CEO of Jaguar and Land Rover between 2002 and 2003.

Tata is inching very closely to acquiring Jaguar and Land Rover from Ford Motor Company, and everyone is already assuming the two companies are in Tata’s hands, in a deal that analysts have pegged at being worth between US$1.5 to US2.0 billion.

One company that is very happy about all of this is Fiat, who has a close relationship with Tata. Tata uses Fiat turbodiesel engines in their cars, and the two companies have a partnership worth Rs 4000 crore (3.3 billion ringgit) in India.

Fiat says this will most likely allow the Italian company to get access to Jaguar’s technologies. It is particularly interested in Jaguar’s rear wheel drive platform as well as Land Rover’s four-wheel drive technology. Yup, you guessed right - the first model from the Fiat group to benefit from this is most likely the new flagship Alfa Romeo 169, which Fiat plans to develop as a rear wheel drive car.

Related Posts:
Ford may forgo retained stake in Jaguar and Land Rover

Tata is on both ends of the car market right now, from one of the cheapest cars around that is the Tata Nano right up to two luxury brands that they are about to purchase from the Ford Motor Company, Jaguar and Land Rover.

While the original plan was for Ford to keep a minority stake in the company as it has done with Aston Martin (it retains a US$77 million out of US$925 million stake), Indian paper the Economic Times has reported that Ford has decided not to retain a minority stake in Land Rover and Jaguar as “it is convinced about the future development of these two brands in the hands of Tata.”

Ford’s earlier intention of holding a minority stake in the two companies, as with Aston Martin, was to ensure supply contracts and jobs are protected. Analysts have pegged the deal at worth between US$1.5 to US2.0 billion.

Source