Concept cars gleam, but executive dread clouds Frankfurt Auto Show

A global downturn, technology shifts putting unprecedented pressure on automakers.

Business Standard : Car executives are paid to be optimists, but behind the pomp and salesmanship at the Frankfurt International Motor Show this week lurked an unmistakable sense of angst.

The talk among industry insiders at the show, one of the auto industry's biggest events, reflected the existential threats that carmakers face.

The European and global auto markets are in decline. Carmakers are betting their futures on electric vehicles whose marketability is untested. Manufacturers are under intense public and regulatory pressure because of the role that vehicles play in climate change. The global trade war has disrupted supply chains.

Even auto shows are under threat. Many manufacturers scaled back their presence in Frankfurt this year or skipped the show altogether. Companies like Toyota and Fiat Chrysler decided the benefits didn't justify the millions of euros it takes to put on a display.

"It's an unprecedented situation we are in," said Wolf-Henning Scheider, chief executive of ZF Friedrichshafen, a German transmission maker that has an extensive network of factories in the United States, Europe and China.

Mr. Scheider noted that carmakers must invest vast sums in electric vehicles and autonomous driving at the same time they are coping with a trade war. "All these at the same time is new," Mr. Scheider said in an interview. The Frankfurt show was as good a place as any to find out how auto executives plan to survive the tsunami. Here are some of the main takeaways.

Sustainability has become a matter of survival

Protests by environmental groups were especially intense this year, as carmakers increasingly take the blame for climate change. Volkswagen alone accounts for more than 1 percent of greenhouse gas emissions worldwide, according to the company's own calculations.

This week Greenpeace activists stood on the roofs of SUVs on display at the Frankfurt exhibition grounds with signs that chided, “Climate Killer.”

The militant group Attac planned to blockade streets and bring traffic to a standstill on Saturday, the day the show opens to the public. Carmakers are desperate to show that they get the message. Ola Källenius, chief executive of Daimler, said in Frankfurt that the company's Mercedes-Benz factories will be carbon neutral next year.

Hyundai launches fully electric Kona SUV in India at Rs 25.3 lakh

The company claims that the Kona EV delivers a range of 452 km in one single charge under standard testing conditions.

South Korean auto major Hyundai Tuesday launched its full-electric SUV Kona in India priced at Rs 25.3 lakh, and sought government support for electric vehicles (EVs) for personal usage, not just for fleets.

The company, which is present in the country through its wholly-owned subsidiary Hyundai Motor India Ltd (HMIL), is also planning to develop a mass market EV for India to add to its newly launched full-electric SUV Kona.

"We have seen some positive development in the form of tax incentives on purchase of EVs as provided in the Budget, but we think more can be done by the government to accelerate adoption of EVs in India," HMIL MD and CEO S S Kim told PTI in an interview.

He said currently EVs are extremely expensive which require economies of scale to make them affordable for mass adoption.

Referring to the FAME II scheme, which provides incentives to four-wheeler EVs only for fleets and public transportation, Kim said, "Our desire is that such incentives should also be extended to personal usage too for the market to develop."

Commenting on the Kona EV, he said, "This will be the game changer in the Indian EV market. We are addressing range anxiety which is one of the biggest issues that consumers have in mind when buying an EV."

The company claims that the Kona EV delivers a range of 452 km in one single charge under standard testing conditions.

"As we embark on the journey of India's future mobility, the launch of country's first fully-electric SUV Kona will be a revolutionary and a definitive forward move to change the perspective towards electric cars altogether," Kim said.

Globally, the Korean firm aims to have 44 environment-friendly models in its lineup, including 23 full-electric models, by 2025, he added.

The model comes with different driving modes, infotainment features, 136 PS of power with an ability to accelerate from 0-100 km/h in just 9.7 seconds.

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Tata Motors launches new premium variant of SUV Hexa; priced at Rs 1.5 mn

The Hexa XM+ is equipped with features such as reverse parking sensors camera, cruise control, rain sensing wipers, electrically adjustable and foldable exterior mirrors.

Tata Motors Monday launched a new premium variant of its lifestyle sports utility vehicle (SUV) Hexa with 16 new features, priced at Rs 1.527 million (ex-showroom New Delhi).

The Hexa XM+ also been made available with an electric sunroof to enhance, which comes with a two years warranty, it said.

Hexa, which is based on Aria platform and shares its engine with the Tata Safari Strome, was launched in the country in January 2017.

"With turnaround 2.0 in play, we have continued to deepen our focus towards catering to the evolving customer demands by introducing new products and variants at regular intervals," a company statement said.

Tata Motors' Turnaround 2.0 strategy is aimed at delivering "consistent, competitive and cash accretive growth".

"With the launch of the Hexa XM+, we are further strengthening this product range," Tata Motors passenger vehicle business units vice-president for sales, marketing and customer support SN Barman, was quoted as saying in the release.

The Hexa XM+ is equipped with features such as reverse parking sensors camera, cruise control, rain sensing wipers, electrically adjustable and foldable exterior mirrors and automatic headlamps, among others, the release added.

Tata Motors has reported a 20 per cent increase in domestic sales at 64,250 units in September as compared to 53,964 units in the same month last year.

The company's domestic passenger vehicle sales surged 7 per cent at 18,429 units in the previous month as against 17,286 units sold in September 2017.

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