Mahindra & Mahindra forms Joint Venture with Kinetic Motors

One of India's leading automotive companies, Mahindra & Mahindra Ltd., announced that the acquisition of business assets of Pune-based Kinetic Motor Company Ltd. has been approved.


The acquisition will be done through a new company to be formed. The consideration for the acquisition is a sum of Rs. 110 crores (subject to closing due diligence) plus 20 percent stake to KMCL in the new company. M&M will hold the balance 80 per cent of the equity.

The deal will enable Mahindra to design and market a range of scooters, value engineered motorcycles and high-end motorcycles for the Indian and global markets, helping it establish a robust, end-to-end two-wheeler business in every segment of the industry.

BMW's Shifting Strategy

(BMW's)Bavarian Motor Works is embarking on the biggest product expansion in its history in a bid to increase sales of its premium autos by 40% -- to 1.4 million cars -- in 2008. In July, BMW's linchpin luxury sedan, the 5 Series, hits the market, showcasing the German carmaker's latest high-tech innovations.





Chief Executive Helmut Panke, a nuclear physicist by training who's passionate about cars, took charge a year ago. The 56-year-old CEO started his career as a consultant for McKinsey in Germany and has clocked 20 years with BMW (BMW ). A former chief financial officer who also worked as head of BMW North America in 1993-95, is determined to make sure the expansion drive doesn't undercut BMW's historically high margins.

Tata's Nano moves to overseas with Fiat

According to Chairman Ratan Tata, Tata Motors Ltd is open to Italy's Fiat SpA helping to sell the most awaited Nano model overseas,

Tata Motors plans to launch the Nano later this year, priced at about $2,500. "We have held talks about the Nano being marketed in markets where Fiat has already a strong presence. I am open to consider a partnership," Mr. Ratan Tata told a news conference at a forum promoting cooperation between Italian and Indian companies.


Fiat has a joint venture with Tata to manufacture and distribute cars, engines and commercial vehicles.
Ratan Tata also said the Tata group was in talks with Italian defence and aerospace company Finmeccanica SpA about supplying helicopter parts.

In a statement of Fiat Chairman Luca Cordero di Montezemolo, "the company was in talks with Tata about making buses and trucks.

The head of Fiat's Iveco truck unit told an Italian newspaper in May he expected to resume talks with Tata on possible accords after the India partner completed its acquisition of Jaguar and Land Rover.

Mercedes E-class for BMW 5 Series

In response to introduction of New BMW 5 Series in India, Mercedes -Benz India has decided to revamp its executive luxury segment car, the E-class. To cope up with the changing times and cater to increasing demands of the market, Mercedes-Benz recently rolled out two new Eclass variants and further extended its product range with the all-new E230 (petrol) and E220 CDI (diesel) models.


According to Dr. Wilfried Aulbur, "The E-Class has sold more than 10,000 units in India since its introduction in 1995. Now the product becomes even more enticing with introduction of the new Bi-Xenon headlamps in the exterior coupled with a 3-way Memory package and electrically adjustable steering wheel, all of which are now standard with the vehicle (oh how we love competition). The two new engines will further add to the popularity of the E-Class."

New BMW 5 Series in India

German car manufacturing company BMW introduces new variants of its 5 Series sedan priced in the range of Rs 36,90,000 and Rs 46,80,000 as it looks to strengthen its presence in the country. BMW 520d, 530d and 530d the new variants, highline powered by diesel engines and are additions to its existing petro variants BMW 525i and BMW 530i.


"The BMW 5 Series is in the luxury Business Class car segment, and it is our goal to continue providing our customers in India with the highest standards of all-round quality, safety, and perfection to ensure the highest levels of comfort and luxury", BMW India President Peter Kronschnabl said.