NEWCOMER SHAKES UP THE "ESTABLISHMENT"
Who could have thought that a fledgling in the global motor industry would shake up the "establishment"? This is exactly what Indian conglomerate Tata has done after only 10 years as a vehicle manufacturer.

The Nano four-seater minicar - touted as the cheapest new vehicle that one can buy - has boosted Tata's image in an environment that is often sceptical.

The launch of this significant new model at the Delhi Motor Show in January also drew a lot of attention from the "Green Lobby." The Nano has been criticised by environmentalists who are concerned that large volumes of the vehicle will drastically increase the amount of pollutants being pumped into the atmosphere by the rapidly expanding Eastern economies.

The arrival of the "People's Car" at a cost of just over R17 000 (100 000 rupees) has also signalled the arrival of India as a low cost engineering powerhouse in the automotive industry. Interestingly, the Nano takes over the mantle of cheapest car in India from the 25-year-old Maruti Suzuki, which costs about double the price of its new rival.

Tata intend producing about 250 000 rear-engined Nanos annually initially and then pushing this up to meet global demand that is expected to rise to one million units a year in the future.

Already a global base for the low cost manufacture of mass produced goods from computers to microwave ovens it seems that India is now well positioned to rewrite the definition of affordability in the vehicle market.

Ford is the latest major company to announce it will build a small car in India within the next two years.

The Renault/Nissan Alliance is negotiating with another Indian company Bajaj Auto, to set up a joint venture to produce a $3 000 car, which will complement the group's current, relative inexpensive Logan and its derivatives, one of which - the Sandero - arrives in South Africa next year.

Already Toyota, Fiat and Volkswagen have announced programmes to develop cars for emerging markets in India, Russia and China, with the possibility these models can go into Europe and other countries - including SA - at a later stage.

MAHINDRA DEFERS INVESTMENT IN JOINT VENTURE WITH NISSAN-RENAULT
Meanwhile it seems that another Indian conglomerate, Mahindra and Mahindra is deferring investment in a planned vehicle manufacturing joint venture with the Nissan-Renault alliance.

The plan is to establish a plant that will be capable of manufacturing 400 000 units a year by 2015. Nissan had announced in February last year that it would join Renault and Mahindra in this project to make the no-frills Logan in western India.

Renault already makes products at a plant in Chennai and sells them as Mahindra Renaults, while Nissan recently signed a joint venture agreement with Indian truck maker Ashok Leyland.

Meanwhile, Mahindra and Mahindra recently bought an Italian automotive design and engineering company to help increase the Indian firm's presence in overseas markets. The financial details of Mahindra's acquisition of Turin-based G.R. Grafica Ricerca Design were not disclosed.

The Indian company expects the Italian operation to strengthen its existing design capabilities, but in the longer term it wants Mahindra Grafica to be seen as a "global auto design powerhouse", while providing a solid European base for the automotive arm of Mahindra and Mahindra.

LAND ROVER HAS HAT-TRICK OF SALES SUCCESS IN 2007
Ford-owned Land Rover, which stands on the threshold of becoming part of the rapidly growing Indian motor industry when it is bought by Tata, achieved its third successive year of record sales, with 226 395 units sold around the world. This was an increase of 17,6 per cent on the previous year.

The 2007 sales total also marked the first time that Land Rover, which celebrates its 60th anniversary this year, has driven through the 200 000 unit sales barrier.

Sales in the UK exceeded 50 000 units for the first time with a total of 50 664 units retailed - 7 per cent up on the previous year. Freelander 2 fared particularly well, with sales of just under 19 000 units, which was 34 per cent up on Freelander sales in 2006. The introduction of a V8 turbodiesel model boosted sales of the Range Rover Sport and Range Rover to ensure it remained at the forefront in the luxury SUV market.

Interestingly, the emerging markets of Russia and China showed phenomenal growth of 96 per cent and 143 per cent respectively, admittedly from a small base. There were also records in the Untied States, Canada, Spain and Ireland, among others.

"NEW" CHRYSLER ACHIEVES RECORD SALES OUTSIDE NORTH AMERICA
The "new" Chrysler company, now in the hands of Cerberus Capital Management, achieved record sales outside North America last year, beating a sales record set 10 years ago. Sales in 2007 were 15 per cent up on the 2006 figure and followed 31 consecutive months of year-over-year sales growth.

Chrysler sells and services vehicles in more than 125 countries around the world, with sales outside North America currently accounting for more than 9 per cent of the company's global sales, up from 6 per cent in 2000.

The Middle East and Africa led the growth with a 64 per cent over 2006, while South Africa was among the manufacturer's top 10 international markets. Last year, Chrysler introduced six new models to the market - Jeep Compass, Patriot, Wrangler and Wrangler Unlimited, Chrysler Sebring and Dodge Nitro. The company now offers three brands, 15 models and 55 derivatives in South Africa.

GENERAL MOTORS FARES WELL IN NORTH AMERICAN COTY
General Motors, on the comeback trail in its domestic market, got a big boost when the North American Car and Truck of the Year awards were announced at the opening of the 2008 Detroit Motor Show. "The General" won the COTY for the second straight year when its Chevrolet Malibu defeated the new Honda Accord and Cadillac CTS (another GM product) as well as 12 other nominees. This was the second straight win in this contest for GM with its Saturn Aura having taken the laurels in 2007.

The North American Truck of the Year award went to the Mazda CX-9, an SUV powered by a 3,7-litre V6 engine, with 201 points to the 140 awarded to GM's Chevrolet Tahoe hybrid truck. Another GM product, the Buick Enclave placed third with 109 points. This was the first ever win for Mazda in this important contest since its inception in 1994.

FURTHER DELAY FOR MIDP ANNOUNCEMENT
The frustration levels of motor industry executives must have rocketed skywards with the recent announcement of a further delay in the finalisation of the Motor Industry Development Programme (MIDP). Initial details had been expected at the time of the 2006 Auto Africa Expo. Then it was the middle of 2007. Then "broad principles before the end of the year (2007)" Now it seems the industry - both vehicle and component manufacturers - have to wait until August.

In the meantime, the Department of Trade and Industry said the current regulations would remain in force until 2012 and then a programme to "improve the domestic value chain" would run until 2020.

The new programme is expected to take the form of a subsidy for production, with the specific level of support to be determined through a cost-benefit analysis. Government also confirmed its intention to assist the automotive component manufacturing sector, but there was veiled notice that assistance to the manufacture of certain categories of component exports could be reduced or possibly even withdrawn.

RECORD SALES FOR RUSSIAN CAR MAKER
AvtoVaz, Russia's largest car manufacturer, of which Renault holds a 25 per cent share, sold a record 663 500 vehicles in 2007 - a gain of 6,2 per cent over the previous year. AvtoVaz, with its Lada brand, accounts for 70 per cent of Russian car productions and plans to double output to 1,3-million vehicles a year by 2012.

Both GM and Fiat were also seeking partnerships with the booming Russian car market before being pipped by Renault.

BMW TOPS THE HIGH END MARKET
German luxury car maker BMW has retained the number one spot among high end manufacturers with a 9,2 per cent increase in sales to 1,5-million vehicles. BMW posted an increase of more than 8 per cent to 1,28m, while sales by the MINI division jumped 19 per cent to more than 2 000 000 units. Rolls Royce reported a 26 per cent improvement to more than 1 000 limousines.

These strong performerances saw BMW well ahead of Mercedes-Benz, which reported record 2007 sales of 1,29m - a gain of 2 per cent over 2006.

MORE BRANDS FOR IMPERIAL'S RENTAL DIVISION
The Imperial Group's vehicle rental and tourism division has been awarded the franchise to operate the National and Alamo Rent-a-Car brands in Southern Africa from April 1. The realignment follows Europcar's global acquisition worldwide of the National and Alamo brands. (Imperial holds the Europcar franchise in South Africa).

AUTOVEST EXPANDS
Durban-based Autovest, a manufacturer of automotive accessories, has bought SA Canopy Centre and Rhino Linings for undisclosed sums. The former makes and imports glass fibre canopies, while Rhino Linings makes the protective compounds sprayed on to the load boxes of bakkies. The new additions are expected to increase Autovest's annual turnover to R280 million. Among Autovest's products is Maxe, the stainless steel automotive accessory manufacturer, based in Pinetown. Autovest had acquired 134 franchised centres - 115 for Rhino Lining and 19 for SA Canopy.

MOTOR SHOWS INFLUENCE BUYERS
Research in Australia has shown that a large number of people attending motor shows are genuine buyers with the earning capacity to buy a new car. 850 visitors to the Australian International Motor Show in Sydney last year were interviewed during the five days of the show. In addition they were sent a follow up e-mail which resulted in 276 completed surveys.

The research showed that most show attendees were men (74 per cent) and a third were aged between 18 and 29. One of the key findings was that 36 per cent attendees were at the show to look at which car to buy next. That means that a third of the people attending the show were real prospects.

European luxury brands did well in terms of the time spent on their stands. Holden was second best, behind Mercedes-Benz and ahead of BMW. Honda and Subaru fared best in terms of improving the image of their brands at the show.

REPOSSESSIONS RISE
The number of cars being repossessed monthly has risen by 20 per cent according to the Wesbank chief executive Brian Riley. His bank now repossesses between 1 400 and 1 450 new cars a month out of a total of 650 000 vehicles financed. Wesbank is the largest of the vehicle financing banks and has a book worth R100 billion and a market share of about 33 per cent.

Absa repossessed between 1 000 and 1 200 vehicles month. Standard Bank vehcile and Asset Finance would not reveal its figures.

WHITE NOW THE MOST POPULAR CAR COLOUR IN NORTH AMERICA
White is now the most popular automotive colour in North America, ending silver's 7-year reign as the top choice. White and white-pearl are seen as "trend-shifting colours", according to Dui Pont Automotive Systems.

Nineteen per cent of the overall vehicle market went to white and white-pearl and this increased to 26 per cent for the SUV and pick-up truck category. White and white pearl tied with black in the luxury car segment.

White is seen as a "clarifying agent before change; a colour of purity and minimalism," the company claimed.

DIFFERING VIEWS ON TAXI RECAP
The government's R7,7-billion taxi recapitalisation programme has been described as an "absolute failure" by certain taxi operators that are unhappy at the low scrapping rate of old taxis. The taxi wants to scrap at least 85 per cent of the old minibus taxis by 2010. (Estimates of the size of the taxi fleet go as high as 200 000 vehicles).

More than 10 000 taxis have been scrapped and their owners paid more than R500 million, according to a government spokesman, but the taxi operators say this project is taking too long. They say the R50 000 scrapping allowance leaves a big shortfall for those operators that have to buy more expensive government-approved minibus taxis.

The government says, in defence of the programme, that operators are buying 2 000 new taxis a month and that 80 000 route-based operating licences have been approved and 50 000 licences have been collected already.