According to industry sources, Honda Siel Cars India, might launch its small car in India, ahead of schedule. Honda is developing the new hatchback (code named 2CV) especially for the Indian market and might launch it before 2011-12, to take on Toyota’s upcoming small car.

Honda 2CV is expected to come with a 1.1L petrol engine and would take on the other premium hatchbacks, like the Maruti Suzuki Swift, Hyundai i10, Fiat Punto etc., once it is launched.

Expected to be priced at around 4-4.5lakh rupees, this upcoming small car from Honda, could help them double their market share in the Indian market, since at the moment, Honda’s cheapest car in India (Honda Jazz) costs more than 7 lakh rupees, which puts it out of reach of a major chunk of car buyers India.

Mahindra and Mahindra has introduced the new Xylo E8 with front dual Airbags.

The new Mahindra Xylo E8 now features the same SRS dual airbags, which were recently introduced in Mahindra Scorpio VLX.

In the event of a collision, these dual airbags, also called SRS (Supplementary Restraint System), inflate instantly, protecting the front seat passenger and driver from serious injury that may be caused from crashing into the steering wheel or the front dashboard.

Airbags along with the ABS (Anti Lock Braking System) enhance the overall safety of driver as well as passengers and are a welcome addition to the new Xylo E8.

You can download the brochure of new Mahindra Xylo E8, by clicking here.

Ajanta, maker of quartz and home appliances, is looking to acquire an electric car manufacturer in the Guangzhou province of China, so it can produce and sell 1 lakh rupee electric car.

The Rs. 1,500 crore company, which also makes electric bikes, vitrified tiles and CFL lamps, has made a layout of Rs 100 crore to acquire an existing assembly unit of an undisclosed carmaker, which can roll out 5,000 electric cars a year.

Ajanta Group director, Jaysukh Patel while refusing to comment on the acquisition plans. He, however, said: “We have not yet decided on it, but are seeking the government support, so that we can develop cheaper vehicles for the Indian market.” VAT and excise duty put together make almost one fourth of the total manufacturing costs of the vehicle. “If the costs are lowered, we are capable of manufacturing battery-powered cars at Rs 1 lakh or less.”.

Ajanta has already produced prototypes of the electric car, which can run 120 kms in a single charge, which consumes 7 units of electricity, costing nearly Rs 30-35 per charge.

Ajanta plans to launch the electric cars under its existing brand, Oreva and already has 10 prototypes running.