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UPDATE ON THE TREASURE STOCK

Buddies,

Pl. PM me your PAL Part requirements. I will check in the stock if it is available. Unfortunately, He does not have a parts list & unable to take stock of so many parts.
Send pictures of the parts required, if possible.

Thanks for the update, I have sent you a small list of my requirement earlier, do share if something's available from that list.

Its a pity how PAL & HM lost their way.It would had been wise if they could take a cue from Mahindra & Mahindra!

Lot of meaning in what you have said in two sentences.

PAL : Was doing well with its Padmini (in a seller's market) and to counter the Maruti onslaught, bought the tools, jigs and dies for the 118 NE (an outdated model) from SEAT of Spain at a dirt cheap price. The Nissan Sunny engine technology (also outdated in Japan) was bought for something like under Rs 50 lakhs by PAL. The freak combination created the 118 NE sometime in 1986. The automobile industry was moving ahead at a lightning speed with the winds of change sweeping off the laggards.

PAL made a JV with Fiat and decided to launch the Uno's outdated version that was discontinued in the mid 1980's in Europe.PAL's JV with Fiat used the Kurla plant and the Uno despite its euphoria initially, bookings were cancelled by the thousands. refunds were not entertained or forthcoming. Most of the dealers were stubborn and lacked courtesy and customer care ethics. Spares were priced at comparatively higher prices, which the market forces rejected.

Failing further to see the undercurrents, PAL created a company PAL- Peugeot, to manufacture the Peugeot 309 's older model that did its job in the African continent to well. But its angular cuts and boxy shape were out dated.The Peugeot 309 bombed. The company PAL- Peugeot with its plant in Kalyan had to close down and Peugeot dragged PAL to the court.

Fiat was here on a long term basis and wanted to do well in our markets. It wanted to bring in newer models viz. the Palio and the Sienna. PAL did not have any equity to invest to keep the investment ratio in the same proportion as in the original joint venture. Fiat brought a huge tranche of funds to modernise, but PAL said "we surrender" to the Italian might. It sold all its equity in the JV. Fiat carved out a new company Fiat India Automobiles Ltd (FIAL), soon. Just when PAL exited, the government permitted 100 % foreign investment in automobile companies, contrary to the compulsory Indian partner's 50 % or more investment in JV's, when Fiat entered India.The timing was just right for FIAT. Thus PAL died its own death which many had predicted. :Shockked:

On the contrary, Mahindra started with Ford (Igatpuri M&M plant) entering into a JV. They had a lovely honeymoon :uncontrol in the foothills of the Western Ghats (Nasik dist). The Ford Escort rolled out. Its diesel version followed (M&M loved diesels) and it was honeymoon, love and more love all the time.
Ford used the time tested formula to take over from M&M, citing newer, huge investments needed for newer models and upgradations. Mahindra felt something in its sixth sense and finally said that all the modernisation must be a Ford only affair and that M & M stays out of such huge investments. M & M exited, clearing all formalities needed to exit (PAL was not flush with funds to pay FIAT when the latter wanted to modernise). Ford and M&M divorced and Ford found a new home at Marimalai Nagar, in T.N.

Mahindra also has successfully outwitted and exited its JV with Renault very recently.

I need not write about HM, as it is also moving downhill without any newer synergy and initiatives. We all have a clear picture of the happenings at HM. The government orders are shrinking. The outside Kolkata taxi orders too are shrinking. The Kolkata market is the last bastion, but it was surprising to see so many Swift Tour taxis in Kolkata, when I visited last,about two weeks back.

My oldest memory with the PAL Padmini (aka Fiat) goes back to the time when I was a kid. Dad acquired it from a family friend as a second hand car for about Rs 70,000 or so. Dad tells lots of stories about the white petrol Padmini. The car needed to be taken over to the local garage nearly every morning because it won't start. Once, its front wheel conked off. Its engine needed to be replaced once. En route breakdowns were many. As a kid though, I used to enjoy all the joyrides with dad, (my automobile enthusiasm had its foothold laid way back since the time I was a child and the Padmini certainly contributed to strengthen it.) He learnt to drive on the very car. Though we faced a lot of issues with it, it will always be remembered, after all it was first ever car to arrive in the family. :-)

It's simple, PAL and HM declined when their offerings no longer made economic sense compared to the competition. Taxi drivers are willing to spend more effort maintaining their car if the initial cost is low and servicing is easy. For a long time the selling points of the Amby and Premier Padmini were that any roadside mechanic could service those. Premier, whose cars were smaller and arguably less popular outside of Mumbai, were the first to lose out to Tata. Amby's turn did not take long. Existing owners are somehow maintaining their cars, but it makes no economic sense to buy a new Amby as opposed to an Indigo. With the decline of HM and Premier, Tata practically owned the taxi market for over 10 years, but is now losing out too. Moral: don't take your customers for granted, even if the customers are taxi drivers.

Hi All,

Just trying to revive older memories -- I am from Mumbai and would like to know if anyone wants to sell a 118NE in Mumbai or around ?

I used to drive a 1992 118NE till 2001 -- My father tricked me to sell it -- he said that he was taking the car for a FREE Tyre Change (Free because in 2001 118NE NEW tyres were a bomb to buy), and a Dinitrol treatment from Goregaon in Mumbai.

Dad instead drove off to a 2nd hand car dealer and sold it for Rs.12,000/- as he wanted to use the No-Claim bonus of insurance from that car to buy a Fiat Palio.

We did not have cameras then (or rather I was just too poor to buy a camera so I don't have any photos with my love ) however I have this photo thats attached.

Can someone here please help me source a 118NE ?

Dear Behram, thank you for this thread and the memories. New modern cars are boring compared to aapna own Premier Padmini .... they don't need any tinkering or attention!! My wife and I bought a white 1990 Padmini with floor mounted gear and bucket seats. It was our first car with our own money. We were expecting our first born and felt we deserved our own car and not constantly use the ones of our elders. The Padmini was available off the shelf while in those days the Maruti had a waiting time. So on one weekend we just went and bought the car much to the surprise and I dare say chagrin of our elders who associated buying cars with a long wait for your allotment. And there were the usual comments of "...young people these days..." The car kept me and my mechanic happily busy every Sunday morning. And later we bought a maroon 1994 model too this time with air conditioning. Long road trips meant carrying spares, extra water for the radiator, engine oil, a spare spark plug maybe and so on. Climbing hills in Garhwal and Nainital meant pausing every couple of hours to cool off the engine while you had sandwiches. It had its own charm. The foundation of the Italian design was very good as were the smart looks. Unfortunately due to poor quality materials and workmanship the car was a high maintenance one. Both served us well and by 2000 both had been sold. I now wish I had held onto one piece....in 15 years time it would have been a classic. The Padmini, PAL and its owners belonged to the era of license raj, forex shortages and industrial strife and have faded away due to their inability to change with the times. I wouldn't blame them for I have not walked in their shoes.

Best wishes,
Narayan

One for DB and Karlos, a rare LHD factory (allegedly) soft-top:

On a lighter note, if your quest for tinkering and spending Sunday mornings fiddling and adjusting things, then please buy a early lot (2007-08) Tata Safari 2.2, and I promise your holidays will be filled up with work and the mechanic and TASS would be your best friend :D.

I personally have never experienced either the Fiat or the Ambassador personally, I mean we never owned these cars ever, so I cannot relate to the nostalgia and the happy sepia tinted memories being discussed. The only experience I have had with Padminis are the Mumbai cabs and they are best not remembered. However its wonderful to see through all your eyes about that era in Indian motoring where things were simple and joys pure.

apache longbow or should I say AH-64!! The happiness of these memories I think are because they are associated with my youth and the excitement of purchasing the first car. As you know with time every thing including the Premier becomes tinted in rose. I wouldn't trade the sheer comfort and reliability of today's cars for those of India of the 1970s.

I found this while browsing.

The History of Auto Industry in India - Premier Auto Ltd. on Vimeo.

https://vimeo.com/34946323

The scamster Harshad Mehta had made his first big $$$ on the stock market via the shares of Premier Auto. Was reading a book last night which mentioned that. Mehta read a news clip on Premier Auto increasing the prices of its cars, but he wasn't sure of the company's production capacity. Apparently, Harshad then got in touch with some local who knew someone in the union, got positive feedback and bought Premier stock (which went up significantly).

Latest annual results are on these lines:
1. Sales 35 crores
2. Salaries 60 crores
3. Loss 125 crores
4. MD salary 1 crore.

How the mighty are fallen.

In the larger scheme of things, surely. They were once a leader of the car industry and could have been in a strong position today, were it for the right decisions & partnerships.

On the private side though, they're not doing too badly I believe. They're swimming in hundreds of crores from property sales.