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SUVs rev up at Delhi auto show despite pollution crackdown
By Emily FORD
New Delhi (AFP) Feb 3, 2016


More Toyota plants to go offline on parts shortage
Tokyo (AFP) Feb 3, 2016 - Toyota said Wednesday that all its domestic parts plants would shut for a full day next week, expanding a production suspension that is set to be its longest since the March 2011 earthquake and tsunami disaster.

Toyota said earlier this week that it would temporarily stop vehicle production in Japan due to a components shortage following an explosion at a supplier.

The world's top automaker said the assembly lines would stop for six days from February 8 due to a lack of components from affiliate Aichi Steel.

Overseas production would not be suspended.

Additionally, Toyota said Wednesday in a statement that production at its "directly owned and operated" plants in Japan that make parts and components would also stop on February 8 for one day.

The six-day domestic production suspension would be the longest for Toyota since one of 10 days following the March 2011 earthquake and tsunami, said company spokesman Nicholas Maxfield.

Toyota publishes its nine-month financial results this week. It did not say if the temporary production shutdown would affect results in the current quarter.

Aichi Steel, which produces speciality steel products among other items, was hit by an explosion on January 8 which badly damaged parts of its production site.

It expects to return to full operation in March.

Toyota said Monday that it does not disclose its daily production plans, but the firm has said it produced 14,000 units a day in 2015.

The company, which surpassed Volkswagen in 2015 to keep the title of world's top-selling automaker, produced more than four million cars in Japan last year and over 10 million worldwide.

India's flagship auto show opened its doors in New Delhi Wednesday with a new batch of diesel-guzzling SUVs on proud display, despite industry uncertainty about a pollution crackdown targeting motorists in the capital.

More than 80 vehicle launches were expected at the Auto Expo 2016, the biggest edition in the show's 30-year history, with the Fiat Chrysler-owned Jeep making its India debut and hoping to capitalise on the popularity of sports utility vehicles.

SUVs pouring onto the roads have been partly blamed for the Indian capital's toxic air which the World Health Organization has ranked the worst on the planet.

The Delhi government and the courts have announced a string of measures to tackle the crisis, including a ban until March 31 on registration of new diesel cars with an engine capacity of two litres or more -- typical of large SUVs or luxury cars.

Although the moves have rattled the industry, carmakers Wednesday showed off their new SUVs -- including many smaller, cheaper versions of the cars that can more easily navigate chaotic city streets, aimed at young urban buyers.

Among those unveiling these "compact SUVs" was Maruti Suzuki, the Indian subsidiary of the Japanese carmaker better known for its dominance in the small car market, which was holding the global premiere of its Vitara Brezza.

Jeep acknowledged it faced the task of reclaiming its 75-year-old brand name in the Indian market, where SUVs are often called simply "jeeps". There are plans to target affluent consumers with its luxury 4x4s.

"The SUV segment is poised to take a quantum leap in the coming years in light of the emerging market trends," said Kevin Flynn, president and managing director of Fiat-Chrysler Automobiles India.

"Jeep is our name and we intend to capture it for ourselves."

Jeep's Wrangler Unlimited and Grand Cherokee models will be on sale from mid-2016, while it plans to invest $280 million in its plant in Ranjangaon that will produce an "all-new Jeep", the carmaker said.

India's biggest carmaker Tata Motors showed off a range of new models as it tries to broaden its flagging market share, including two forthcoming SUVs and the Zica hatchback -- which it plans to rename following the spread of the Zika virus.

"We recognise the need to improve air quality, but when we look at the targets being set, they should be set based on emissions -- limits on emissions" rather than restrictions on engine size, Timothy Leverton, Tata's head of research and development, told AFP.

- Hybrid cars on show -

Industry insiders say there are fears that the ban on large diesel cars could be extended to other cities also trying to combat air pollution, or extended for a longer term.

Carmakers are rushing to offer petrol-powered versions of their vehicles as well as diesel, for fear motorists may shun the dirtier fuel.

"Right now the impact is not too much, but more and more in India, customers are becoming aware of it," Abdul Majeed, a partner at consultancy firm Price Waterhouse and auto industry expert, told AFP.

With polluting cars in the frame, electric and hybrid vehicles -- still a niche market in India -- also made a strong showing at the Expo, including the BMW i8, a rare example of a hybrid sports car.

Toyota, whose Prius and Camry hybrids are among those most sought-after by environmentally conscious consumers, said inquiries about the Camry doubled in January.

India, the world's fifth biggest auto market, has an extremely low number of cars for its 1.2 billion people, with industry figures suggesting there are as few as 16 per 1,000 people.

But despite its huge potential, the domestic passenger car market has performed poorly in recent years with sales growth flat or in single digits, the Society of Indian Automobile Manufacturers says.

After two days of press previews, the show will open to the public on Friday and run until next Tuesday.

erf/co/sm

TOYOTA MOTOR

TATA MOTORS

FIAT CHRYSLER AUTOMOBILES


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