Indian automaker Mahindra and Mahindra is hoping to close a deal on Aston Martin by the end of this week, having topped a previous offer from Italian private equity firm InvestIndustrial.

Kuwait-based Investment Dar continues to deny that it is considering bids for the British automaker, but sources are saying that bidders are figuring out issues regarding management control if a sale is to take place. It is believed that InvestIndustrial placed a bid around $400 million for Investment Dar’s stake in Aston Martin.

SEE ALSO: Aston Martin ‘For Sale’ Rumors Heat Up

Many are questioning the logic behind Mahindra’s acquisition of Aston Martin, seeing it as an opportunity to purchase a “trophy” brand that doesn’t serve an immediate benefit to the Indian automaker. Of course an investment of funds would immediately prove beneficial to Aston Martin, a brand that only sold 4,200 vehicles last year.

“It’s difficult to visualize a tractor and an Aston Martin in the same garage,” said Mads Kaiser, a fund manager with JI India Equity Fund. “The acquisition will broaden their portfolio but doesn’t add anything to their tractor or India portfolio.”

[Source: Automotive News]

The Tata Nano is one of the cheapest cars on sale today worldwide, and according to Tata CEO Ratan Tata, it will be on sale in the U.S. in three years time. 

“The U.S. is a very enticing market,” Tata said in an interview with Automotive News. “We are redesigning the Nano for both Europe and the U.S.,” he finished.

In India, the Tata runs with a rear mounted 37 hp engine, and starts at around $2,500. To prepare the car for sale in the North American marketplace, Tata will first redesign it and add some standard features such as traction control, power steering and a more powerful engine. The company is aiming at a starting price of under $10,000 for the car, which would make it the cheapest car on sale in the U.S.

One of the big issues facing Tata is creating a distribution network here in the States to sell the cars. One possibility would be to sell them in Jaguar Land Rover dealerships, as Tata owns both brands, but JLR CEO Andy Goss says that thus far there have been no discussions on the subject.

[Source: Automotive News]

After a failed U.S. launch that resulted in lawsuits and lost dollars, Indian aautomaker Mahindra & Mahindra is setting up a technical center in the Detroit suburb of Troy, once again with hopes of bringing the brand to the States.

A compact pickup truck was the vehicle that Mahindra was trying to bring to America, but the original launch didn’t pan out because of complications with its business partner, Global Ventures.

The new technical center is said to be strictly for engineering, but it would make sense that it will also help Mahindra engineer its compact pickup for our market. General Motors, Navistar, Volvo and Bentley have already signed on as clients of the Mahindra engineering center.

Ever year, 500,000 vehicles are sold by Mahindra, a number the company plans on doubling by 2016. Part of this plan is to broaden the companies lineup, with a new electric vehicle already under development.

Undercutting the competition in terms of cost is the key to Mahindra’s engineering and design philosophy.

“We are able to innovate while designing in value,” said Rajan Wadhera, chief executive officer for technology and product development for Mahindra’ automotive and farm equipment sectors.

“Because of its ties to the automobile industry and motor sports, Detroit is known as the Motor City around the world. We wanted to be part of that culture,” Wadhera said, hinting again that Mahindra is aiming for the States.

[Source: Detroit Bureau]

Following a lawsuit filed on June 4, Indian automaker Mahindra is refuting the allegations that it $9.5 million cash and an additional $100 million in trade secrets.

“We have seen the press release issued by the legal firm of Diaz Reus and Targ which claims to represent some U.S. automobile dealers,” Mahindra wrote in a press release before denying the allegations of fraud, misrepresentation and conspiracy. That same release points out that the automaker was sued unsuccessfully by dealers in a Missouri court as well.

“Mahindra told the dealers that its light trucks and SUVs were ready for delivery to the U.S. market,” said attorney Michael Diaz in a press release. “However, Mahindra intentionally delayed certification of its vehicles after obtaining the dealership fees and trade secrets, and began pursuing other partners in the U.S. and elsewhere in clear violation of their commitments.”

Rewinding to the story’s start, Mahindra was supposed to begin delivering a line of light diesel trucks to dealers in 2008, but that never happened. Four years later, those who paid in to be a part of the deal are still hanging in limbo, growing understandably angry.

After several delays and the company cut ties with the American distributors meant to act as representatives in the North American market, though the plan to sell trucks was supposed to continue forward. Despite that, the promised launch repeatedly moved out of reach.

Now it seems steam is gathering again behind discontented dealers, though a conclusion to the case is unlikely soon.

Global information company IHS Automotive conducted a study that shows sales in India will reach 4.88 million by 2016, taking the emerging nation ahead of Japan’s projected 4.51 million units in sales for that year. What’s more, IHS believes sales in Japan would taper off to 4.25 million by 2020.

At one point, Japan was ranked as one of the world’s top three largest regional markets, behind the United States and Europe. China has since rocketed past the rest of the world, claiming the global top ranking several years ago. Reports reveal that Chinese consumers have purchased 17.66 million vehicles for 2011. IHS predicts that China sales could even pass 30 million by the decade’s end.

The organization believes that India is positioned to be the next country to experience a big automotive boom, linking to a prediction that India’s population will sustain rapid growth in the coming decades.

That said, India’s economy is not as strong as China’s and it will also take a while for India to develop infrastructure that could handle a rapid spike in vehicles on the road. Some villages can only be reached by mules and donkeys and big cities suffer incredible traffic congestion due to the lack of major roadways.

Nonetheless, demand for automobiles in India is surging and may become the next focus market for global automakers.

[Source: Detroit Bureau]

The relationship between Indian automaker Mahindra and Mahindra and Global Vehicles USA is finally severed, thanks to an arbitrator, but the six-year tale that lead to this divorce takes a little more telling than that.

When Mahindra decided to market a light truck in the U.S., it turned to company Global Vehicles USA. That was in 2006. More than half a decade later the company that originally dreamed of selling its wares in America is glad to walk away from the sordid bargain despite selling nothing.

In 2006, Mahindra announced intent to bring its T20 and T40 light trucks to the U.S. market — Global Vehicles USA would partner with the company to handle distribution. That fell apart in 2010 before the truck was set to launch when the agreement between the two companies expired. Global Vehicles said that Mahindra ended the contract while Mahindra maintained that Global Vehicles allowed the expiration to occur, which worked in Mahindra’s favor. Global Vehicles USA sought arbritration in London, saying that Mahindra had breached the contract.

Most recently, arbitration found that Mahindra did not breach the terms of contract and that the deal legitimately expired. The finding ends Mahindra’s partnership with Global Vehicles and makes it highly unlikely that the small turbo-diesel truck will ever make it to our shores, at least under cooperation by the feuding firms.

Mahindra, however, isn’t giving up on its American dream. After the Global Vehicles debacles, the Indian company bought a controlling share in South Korean company SsangYong Motor which announced its plan to bring vehicles to the U.S.

[Source: USA Today]

Ultra cheap cars are often a tough proposition, as Tata knows only too well following the original Nano, which failed to meet expectations. Nonetheless, the Indian conglomerate is pushing forward with plans for the future, which could include another tiny city car, inspired by this, the Megapixel concept.

It might not come equipped with a digital Camera, but  the MegaPixel does boast some interesting technological features, including easy access sliding doors, a lithium ion battery pack and four electric motors (one for each wheel), supplemented by a small 325 cc on-board gasoline generator that extends range beyond 54 miles.

The electric motors not only help deliver 369 lb-ft of torque, they also help the Megapixel achieve a very tight turning radius (nine feet), a valuable asset for a city car aimed at buyers in large urban centers. Whether some of the technologies employed on this pint size concept make it to production remains to be seen, especially on car pitched at very low price.

Nonetheless, given the advancement of automotive engineering and Tata’s ambitious plans (after all it’s pumping a lot of effort into Jaguar and Land Rover), there’s every indication that when it finally does arrive, the next generation of the company’s entry-level car will likely be far better than the last.

GALLERY: 2013 Tata Megapixel

With the luxury car and mid-size car market growing rapidly, it makes sense that the BMW group has introduced its MINI brand to India.

MINI has brought four models with them for their Indian debut: the MINI Cooper, the MINI Cooper S, the MINI Cooper Convertible and the Clubman. Kay Segler, senior vice-president of MINI brand management and business coordination said, “We are not looking at volumes initially in India. We are looking to build the MINI brand. The MINI cars will feature 1.6 liter petrol engines. There is no plan of diesel engines for time being.”

MINI has looked at making this move in the past, but up until now has felt that the country and market were not ready for them. “More Indians are traveling and living abroad, they have network overseas and are more aware of trends,” Segler said. For the time being the cars will be distributed from three exclusive MINI dealers, two of them are in New Delhi and one will be in Mumbai.

All of India’s MINI’s will be assembled in the UK with no talk of an Indian assembly plant in the near future. The Indian prices for the MINI will range from Rs 24.90 lakh to Rs 31.99 lakh.

[Source: MyDigitalFC]

As we anticipated, DC Design has unveiled India’s first supercar at the 2012 Delhi Auto Expo. Dubbed Avanti after Studebaker Avanti in the Tintin comics, the supercar may be affordable but doesn’t exactly meet what we’d consider supercar standards.

It may at the very least look the part of being an exotic supercar, but the performance leaves a lot to be desired. In order to keep it affordable at around $56,000, DC Design’s Avanti will initially come with Ford’s four-cylinder, turbocharged powerplant with a mere 265-hp. They still anticipate to build a model with a 400-hp turbocharged Honda V6 engine but pricing for that model hasn’t been announced or estimated. Both engines are mated to a six-speed, dual-clutch transmission.

The supercar weighs in at 3,440-lbs with an aluminum body and fiberglass body panels. The engines are currently being prepared out in the United Kingdom and imported to India for final installation onto the vehicles.

DC Design is still sticking to producing around 200 Avanti’s a year with aspirations to build 2,000 a year – if demand is there.

GALLERY: DC Design Avanti Supercar

[Source: WorldCarFans]

Maruti Suzuki, India’s largest auto company, is set to unveil the new XAα concept car at the 2012 New Delhi Auto Expo.

While earlier reports suggested that the new concept will eventually replace Maruti Suzuki’s highly successful Jimny SUV, Maruti Suzuki managing director and CEO Shinzo Nakanishi explained that, “the Concept XAα is designed for a market of customers with a young urban lifestyle.” While the Jimny is sold to the masses as a cheap, practical, and rugged offroader, the XAα aims to be a chic, urban lifestyle SUV for the younger generation.

A production version of the XAα will be launched next year but details are scarce. Maruti Suzuki has confirmed that two-wheel-drive and four-wheel-drive options will be available with a petrol or diesel engine. As a tax break is given to smaller vehicles, the length of the XAα will likely be less than 157 inches.

Maruti Suzuki will also unveil a second SUV called the Ertiga. The automaker aims to introduce the new products in quick succession to take advantage of India’s growing market and to remain as the leading automaker for the country.

Nakanishi says, “India is set to become one of the top automobile markets of the world. This may become evident as early as the next Delhi Auto Expo. Maruti Suzuki will lead India’s automobile growth and evolution by strengthening its compact car portfolio, entering new segments, and creating new product categories across fuel options.”

GALLERY: Maruti Suzuki XAα Concept

[Source: Left Lane News]

DC Design is scheduled to unveil India’s first supercar at the upcoming 2012 Delhi Auto Expo that’s just around the corner. This is the same firm that was responsible for the Rolls-Royce inspired Phantom DC Concept coupe back in 2006.

The supercar will be a limited edition, low volume vehicle assembled at DC Design’s facility in Pune, India. They anticipate deliveries of the vehicle to begin by the end of 2013.

Details are bleak, but what we do know is that it will probably be powered by a V6 engine sourced from Honda with a custom turbo setup to give it over 400-hp. The power-to-weight ratio will be the focus for this supercar, as DC Design is aiming to have it weigh less than 3,400-lbs.

Right now DC Design is aiming to have 300 vehicles built and if there is enough demand they’ll produce up to 3,000 vehicles a year. Despite being a “supercar” DC Design hopes to price it around $55,000.

We’re sure more details will be revealed once the 2012 Delhi Auto Expo starts on January 5th, 2012.

The Tata Nano was supposed to be a cheap, simple car built for the people, but so far it has caused nothing but problems for the Indian automaker.

First it was an electrical issue that caused the Nano to catch fire which was the catalyst for a recall of 70,000 Nano’s. Now a faulty starter motor that the manufacturer says needs to be replaced is plauging the Nano.

Tata says that this recall is not actually a recall at all, as it was not spurred by customer complaints, but rather by Tata engineers designing a better starter which they feel all early model Nano’s should utilize. The recall will affect over 140,000 vehicles and is the largest recall in Tata’s history.