Michelin Tyres India targets 25 % growth by 2015

Michelin Tyres India targets 25 % growth by 2015

Michelin Tyres India is targeting ambitious double-digit growth of 25 percent in India by 2015 on the back of a robust distribution network for passenger car radials & two-wheeler tyres as well as manufacturing base for trucks and buses.

Michelin Tyres India had last year announced an investment of Rs 4,000 crore in a manufacturing facility at Chennai for producing truck and bus radials and had also signed an MoU with the Tamil Nadu government for the same. The investment would fan out over seven years and would be spread across 290 acres.

Thom Clark, managing director of Michelin India, said that the plant is on track with construction underway. Production was expected to roll off by end-2012 but with Michelin going slow on its expansion projects in emerging markets, as a result of the slowdown in the automotive industry globally, production is now expected to kick off sometime next year.

Clark projected that the demand for radial tyres for the commercial vehicle market is slated to rise from the current 15 percent to 50 percent by 2021 and Michelin is optimistic of piggyback riding on this growth with its new tubeless technology for tyres for the CV segment. In the passenger car segment, Clark foresees growth of radials in the 12 to 15-inch seat segment which cover a large number of cars ranging from the Maruti Alto to the Honda City. Michelin spends about Euro 500 million in R&D every year for its North American, Asian & European markets that includes innovating new tyre technologies.

Michelin Tyres India has also launched the new Michelin Energy XM2 tyre for passenger cars in India. The Energy XM2 is a new design which aims to improve fuel savings, mileage & safety. Compared to the previous-generation Energy tyre, the Energy XM2 uses less fuel thanks to an 8 percent reduction in rolling resistance, lasts up to 15 percent longer and stops 1.7m shorter.

The tyre incorporates Ironflex technology combining strength and flexibility. Coupled with an optimised casing design, the new tyre is better able to absorb and effectively dissipate peak stresses generated when it comes into contact with any type of road hazard. The new formulation of micro resilient tread compound provides a firm grip with the road surface which helps to reduce the braking distance and thus contributes to reducing accidents and improving safety. This tread compound also lasts longer giving more mileage potential.

The tyremaker says that the latest Michelin technologies from its global R&D activities have been designed into the new Energy XM2, from Alternating Bridging, Micro Adaptive Compound and Silica technology, to give the best performance for fuel saving, longevity and safety. The new tyre will be available in sizes ranging from 12 to 15 inches at prices ranging from Rs 2,475 up to Rs 6,075.

Source - ACI

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CHALLENGING OF LEXUS IN INDIA

CHALLENGING OF LEXUS IN INDIA

A lot of us German car owners simply can’t wait for 2013 when Lexus arrives on Indian shores. After all, Lexus’ cars are known to offer stupendously high reliability, and are as hassle-free to own as a Corolla. That’s saying a lot when the direct competition – Mercedes, BMW & Audi – inexplicably suffers from poor reliability ratings & expensive upkeep costs. I mean, when a humble Maruti Alto can offer years of reliable service, what reason do the Germans have for their failure? We even have a thread on the love affair between European cars & flatbed

Then, Lexus is also known to provide unparalleled refinement levels, matches (or beats) the Germans on spec & features and has established itself as a luxury car marque in only 25 years since introduction. Lexus’ service quality is the stuff of legend; the brand has frequently topped customer satisfaction rankings and is known to bend over backward for its clientèle. No surprise then that Lexus has been the best selling luxury brand in North America for a majority of the last decade.

Personally, I'm a fan of Lexus' clean designs as well. This is definitely an advantage in my book, compared to the quirkiness of recent Mercedes cars. Of course, BMW studios have returned to churning out the timeless look, while Audi has always had some of the greatest looking cars.

The understated nature of Lexus could work in its favour, with the rich customer who doesn't necessarily want to draw attention to his wealth. However, Lexus is going to face more than its share of challenges in our extremely unique market. Reasons:

   

Late Entry : The 3 German biggies are well-established in India. Arriving last at the party does have its own set of disadvantages, chief amongst them being that your competitors are well-entrenched in the mindset of the Indian customer. The competition's dealership network & brand visibility are formidable too.

     

    Diesels : Lexus has a shockingly limited range of diesel engines. The GS is sold only with a petrol. Chief competitors – the E Class & 5 series – offer two diesel engine options (a 4 & 6 cylinder) each. The Lexus IS220d (C Class competitor) does have a 2.2L diesel under the hood. But then again, the flagship Lexus LS hasn’t ever been powered by an oil-burner. This is one of the main reasons that Lexus hasn’t been able to make a mark in Europe. The brand is too dependent on the petrol-only USA market to be bothered with diesels.

   

           SUVs? : Not having a strong lineup of SUVs will affect Lexus’ India aspirations at a time when our market cant seem to get enough of them. Just ask Audi whose sales for the initial years in India were driven primarily by SUVs. The compact Lexus RX is a petrol-only SUV, a breed that simply doesn’t make the cut in India. The bigger GX & LX are basically rebadged, spiced up versions of the Prado & Landcruiser (respectively). Seeing not too many people are buying a 1 crore Landcruiser, I doubt the more-expensive Lexus variant will make any impact.

     

        Lacks excitement : Lexus' are supremely refined & comfortable, yes. Equally, they are known to be boring to drive. This immediately takes the brand off the list of the enthusiasts. In addition, being perceived as boring can affect brand perceptions. The Lexus LFA is one exception, albeit it's a niche product that will probably never see Indian shores.

   

            Speed & Response time : BMW entered the market in 2007; yet, it has become the No.1 luxury car marque in India, continuously beating Mercedes & its 10 year lead. BMW has proven that a fast, extremely aggressive strategy is key to market penetration. On the other hand, Toyota is known to be a slow, steady mover. Consider how many years it took the Fortuner to enter India, even though it had a market ready and waiting. Can Lexus match the speed of its super-aggressive German rivals? Audi recently stated that it will overtake Mercedes in 2 years. Obviously, the VW group company has no intentions of slowing down.

    

           Brand : In the 20+ lakh segment, brand is everything. The badge can make or break your product. While Lexus is well-established in North America, it doesn't quite enjoy the same appeal in other markets. Building the Lexus brand & image in India will be an extremely delicate exercise. Will Lexus be able to build the same aspirational value that the three-pointed star or blue/white roundel enjoy?

  

        Local Assembly vs CBU : Mercedes (especially) and BMW already assemble their volume cars here, giving them a crucial cost advantage. Audi is also in the process of locally assembling its popular cars & SUVs. Initial rumours suggest that Lexus will be brought in via the CBU (completely built unit) route. I hope the rumours are wrong, as this move will give Lexus a severe price disadvantage. In North America, Lexus undercuts the Germans by a noticeable margin and that's exactly how things ought to be in India.

Source - teambhp

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HSRP REGISTRATION PLATES FOR NEW VEHICLES BY APRIL

HSRP REGISTRATION PLATES FOR NEW VEHICLES BY APRIL

By April, new vehicles hitting the city roads will come with high security registration plates (HSRP). The existing vehicles would also have to comply within two years.

A senior Transport Department official said that a schedule is being drawn and each vehicle owner would be given a specific date to visit their respective Regional Transport Office (RTO) for replacing the existing number plates with the HSRP.

The move to introduce the high security registration plates has been under review since 1989. After the Supreme Court criticised the State governments in September last year for the repeated delays in implementation, most of the States floated tenders for the project. The Supreme Court on Friday set a deadline of March 31.

In Tamil Nadu, five entities have prequalified, based on a set of technical criteria, and the financial bids were opened last week. The Transport Department official said that an evaluation is being carried out and the company that will implement the project will be announced shortly.

Based on the experience of other cities, the new embossed high-security plates are expected to be available for around Rs.300, which would have to be paid at the time of registration.

While the scheme would be implemented throughout the State, a pilot implementation would happen in a few RTOs in Chennai first. Eventually embossing/fixing stations would come up within the premises of all the RTOs and unit offices in the State.

The official said that the number plates would have features such as a laser hologram and a non-removable/non-reusable snap lock to prevent counterfeiting and duplication.

Any attempt to remove or replace the number plate will damage the snap lock making it impossible to install any other number plate in the vehicle.

All plates would also have a unique identification number and can be tracked all across India, the official added. It would also eliminate the problem of fancy number plates.

Source - thehindu

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