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Old 15th June 2006, 19:46   #16
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Originally Posted by Poseidon
Mainis setting up diesel plant? I thought they were into refining their EV Reva
Not a diesel plant but a Turbocharger plant, please read:

http://www.thehindubusinessline.com/...1702480200.htm
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Old 15th June 2006, 21:14   #17
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Originally Posted by Psycho
Not a diesel plant but a Turbocharger plant, please read:

http://www.thehindubusinessline.com/...1702480200.htm
As far as i know, the Maini plant is primarily gonna be an export focussed unit. Also, somebody supplying to the so called one lakh car will locate as close to the OEM as possible. Even a 2 % addition to the cost of the end product will tilt tables in this project.

Honeywell could well be the company that's suplying the turbos. They set up a plant in Pune with initial capacity of about 1.25 lac unit p.a. But again, i don't think they are going to be supplying for the small car. They sure will be supplying to other models of Tata.

Last edited by Joz : 15th June 2006 at 21:24.
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Old 16th June 2006, 12:39   #18
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Not necessarily. A vehicle designed to carry a 0.50 tonne payload will require different engineering than one that is designed to carry 4 people, because a 0.5 tonne vehicle in India usually ends up getting overloaded to twice its payload and will be therefore overengineered for load.

From the concept that Mr. Tata has been talking about the new 'car' will be very light, employing plastics and composites wherever possible and engineering adhesives instead of welding. I'm assuming the cost of steel required itself will reduce drastically, especially when one considers the ladder frame of the Ace.

Then there will be excise duty cuts when the vehicle is assembled in SSI units around the country. Volumes generated by a car sold at that cost will also drive down the cost of various components required.

The engine itself may be shared with the Ace, which is already doing about 100,000 units plus a year. Other components may be shared with the Indica family. Obviously the cost would come down with such volumes.

I think it may be possible. And if it does give 30+ kmpl of diesel, it will have long waiting lists as well - it will be hard to resist in times like these. Hell, I'd buy one to run around the city in.
According to the latest statements of Mr Ratan Tata appearing in the press, the so-called Rs. 1 lac car will be made primarily from steel with some use of plastics, be rear-engined and have a clutchless and gearless transmission, Kinetic Honda-style. Also, the car will be available in both diesel and petrol options (suggesting thereby that a petrol version of the ACE engine also exists). Tata has already been allotted land for the car project in West Bengal. Apart from the main factory, the site will house the ancilliary units to be located close-by in order to minimise inventory costs (JIT/KAANBAAN style). Also, Tata is setting up a plant in Uttaranchal to produce 2,25,000 units of the ACE annually. This plant could supply the engines for the small car. Being located in Uttaranchal, Tata will enjoy tax benefits which will reduce the end cost. I think even the West Bengal plant is entitled to tax benefits.

Japan has had a history of producing 550 CC cars (our own Maruti 800 was sold in Japan with a 550 CC engine) which were entitled to tax benefits. So, a 700 CC car mass-manufactured in India utilising existing components and parts and costing Rs. 1 lac (exclusive of taxes and duties) does seem plausible. After all, according to a statement made by Mr Jagdish Khattar some 2-3 years ago, it costs Maruti only Rs. 1.25 lacs to produce the Maruti 800, the rest of the car's price comprising of taxes, dealer margins, etc.

Incidentally, the current installed capacity for production of Ace (after the recent ramp up) is 60,000 units annually, up from the original 30,000.

Last edited by directinjection : 16th June 2006 at 12:43.
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Old 16th June 2006, 16:55   #19
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Originally Posted by directinjection
Japan has had a history of producing 550 CC cars (our own Maruti 800 was sold in Japan with a 550 CC engine) which were entitled to tax benefits.
These Kei Jidosha cars enjoy huge tax cuts even today. They were originally conceived post WWII when most Japanese could not afford cars, but had more than enough to buy a mobike (a la semi-rural india today). They also do not require the usual certification that one has adequate car parking space (will we ever get there?). Manufacturers constantly innovate on the utility, efficiency & fun aspects, which eventually get incorporated in their big car product lines.
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Originally Posted by directinjection
So, a 700 CC car mass-manufactured in India utilising existing components and parts and costing Rs. 1 lac (exclusive of taxes and duties) does seem plausible. After all, according to a statement made by Mr Jagdish Khattar some 2-3 years ago, it costs Maruti only Rs. 1.25 lacs to produce the Maruti 800, the rest of the car's price comprising of taxes, dealer margins, etc..
So Ratan Tata seems to be merely equalling Khattar (after so many years!) by making a car of 1 lakh cost price. And then banking on govt for tax breaks. 1.5 lac OTR (or more) seems a fair estimate. One hopes this is indeed the 40kmpl diesel!
Maruti will definitely smell competition and jump in the fray.

Last edited by Poseidon : 16th June 2006 at 17:08.
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