Hero Honda has worked out a major expansion strategy for the rural markets and is planning to strengthen retail financing to support the initiative, that could lead to setting up of its own finance arm. Pawan Munjal, MD of Hero Honda, told TOI that rural market would be a special focus area for the company as it is looking at new growth areas to maintain sales momentum in a shrinking market. "We have created a special

The company reported a 0.6 per cent drop in its quarterly global sales to 2.25 million. General Motors said it expected global vehicle sales to rise by 4 per cent this year in spite of slumping demand for cars and trucks in the US, which hurt its quarterly sales figures. The forecast by the US group underscored the extent to which new car buyers in Russia, China, India and other emerging markets continue to prop up global carmakers' sales figures even as they plummet in rich countries more exposed to the US economic slowdown.

China's emerging carmakers are often the butt of jokes in industry circles abroad, where they have a reputation for building shoddy cars with knocked-off designs and eccentric model names such as Cool Bear, Tiggo or Dingle. But the derision is dying down as Chinese carmakers begin to produce better-looking and higher-quality cars in a drive to capture local market share and enter foreign markets.

China's carmakers are embracing next-generation cleaner-car technology, motivated more by profit and pragmatism than any special love for the planet. Rising manufacturers like Chery Automobile and Geely are developing or launching hybrid, electric and other alternative-energy vehicles, betting that China can follow its successes in mobile phones and digital technology by becoming a leader in greener cars.

Atsugi (Japan): Planning for your old age? Designers in Japan are. Carmaker Nissan Motor is using a specialized driver's suit and goggles to simulate the bad balance, stiff joints, weaker eyesight and extra 5kg that may accompany senior citizenry. Associate chief designer Etsuhiro Watanabe says the suit's weight and constriction help in determining functionality and accessibility within cars by putting young designers not only in the minds of the mobility-challenged, but also in their bodies.

Tesla Motors Sues Designer On Competing Green Car US: April 16, 2008 LOS ANGELES - Electric car maker Tesla Motors has sued a well-known automotive designer it hired to style the body and interior of its electric-hybrid four-door sedan, after the man announced plans for a competing vehicle.

New car registrations fell nearly 10 per cent in Europe in March in a troubling sign for both the industry and broader consumer confidence on the continent. In an indication that more European consumers are deferring big-ticket purchases in the credit crunch, mass-market manufacturers all reported lower sales for the month. Most - including Volkswagen, Peugeot, Fiat, General Motors and Ford Motor - reported lower sales for the quarter.

Brussels Blog (Andrew Bounds): There has been much talk of the Franco-German motor that has traditionally propelled the European Union breaking down recently. So the cancellation of a meeting recently between the two countries to discuss proposals to cut pollution from cars led to plenty of puns.

Toyotais set to invest $340m in a second plant on the outskirts of Bangalore that will produce its planned low-cost car. The move will improve the Japanese carmaker's position as it jockeys for business in one of the global industry's fastest-growing and most strategically important markets. India, with its large pool of first-time carbuyers and cheap engineering and manufacturing skills, is emerging as the car industry's biggest new centre of low-cost production. Renault, General Motors, and Suzuki all produce low-priced vehicles in the country.

The Japanese auto industry took a step towards consolidation yesterday with the agreement by Toyota, Fuji Heavy Industries and Daihatsu to extend their co-operation in research, development and product supply. Under the agreement, Toyota and FHI will jointly develop a compact sports car, which is set to hit the market by the end of 2011 and will be powered by an engine using FHI's core technology. To cement the strengthened alliance, Toyota will increase its stake in FHI from 8.7 per cent to 16.5 per cent.