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| INDUSTRY Car sales climb 4% on export push Double-digit, but uneven, auto sales growth in April On growth track: Auto sales zoom 11% in April Bike sales power 10% rise in Apr vehicle offtake Tata Motors Jag venture drives into rocky territory Budhadeb denies return of Nano project to Singur Govt officials try to break Mahindra plant INTERVIEWS/FEATURES Maruti to expand presence in diesel segment Car sales rise due to bank financing, rural demand Lean is in for cost-conscious automakers Maruti to tune up India R&D centre Maruti will increase R&D staff to 1,000 by 10 Nashik strike a setback for Mahindra's Xylo Indian operations are healthy, says Suzuki Motor Corp COMMERCIAL VEHICLES CONSTRUCTION & AGRI MACHINERY | ALLIED INDUSTRIES Strike stops work at two MRF units FINANCE & INSURANCE Oil falls to near $58 on pullback from rally INTERNATIONAL NEWS GM exit from Dow looking more likely GM hires firm to scout for new directors: Report GM says open to moving from Detroit headquarters Insight first hybrid to top Japan auto sales ECONOMY & FINANCE Sensex pares early gains, falls over 193 points India grew 6.5 per cent in FY09: PM
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| INDUSTRY Go To Top Business Standard (Web Edition) Kolkata/ Bhubaneswar: The encouraging response received for the bookings of the Tata Nano car in Orissa has failed to perturb the leading two-wheeler players and Maruti Suzuki, the domestic passenger car leader in the country. Both Maruti Suzuki and two-wheeler players like Yamaha and TVS Motors have exuded confidence that they would retain their growth momentum and Nanos arrival would hardly dent their sales. Their comments have come amidst market speculation that a sizeable chunk of the two-wheeler buyers would shift to Nano and the Rs one lakh car also threatened to make inroads into the market of Maruti 800. "The arrival of Nano would not impact our sales as none of Marutis models is in that segment. Maruti expects a 30 per cent growth in its sales in the eastern India market in the first quarter (April-June) of 2009-10", said Jatinder S Dhindsa, regional manager (east), Maruti Suzuki India Limited. Arvind Gupta, area manager (Orissa), TVS Motor Company, said. "We dont foresee any threat from Nano as far the sales of our bikes are concerned. There is no reason why two-wheeler buyers would make a shift to the Nano as they can get more mileage and better fuel economy with bikes compared to Nano." "Moreover, Nano is unlikely to provide a smooth ride in the rural areas where bikes can penetrate conveniently. TVS is expecting a 15-20 per cent growth in its sales in the Orissa market in the first quarter of this fiscal", he added. TVS Motor Company Limited, the country's third largest two wheeler manufacturer, is eyeing sales of about 1,000 units per month of its different Scooty models in the Orissa market in 2009 compared to 650 units per month which the company sells at present.In the overall two-wheeler segment, TVS has a 12 per cent market share in the Orissa market and the company sells nearly 1,800 units per month of all its two wheelers including scooties and bikes. Ravi Rastogi, regional business head (east), India Yamaha Motor Limited said, the impact of the Nano on the sales of Yamaha bikes would be negligible and most of our bike buyers would not make a shift to Nano. CAR SALES CLIMB 4% ON EXPORT PUSH The Economic Times (Web & Print Edition) New Delhi: Booming exports of small cars helped car sales clock a year-on-year rise in April, but a clean bill of health remained elusive for the overall automobile sector, with the commercial vehicle segment continuing to contract despite sales of light trucks and buses looking up. According to data released by the Society of Indian Automobile Manufacturers (SIAM) on Monday, car sales were up over 4% in April at 1.02 lakh units, the third straight month that the segment is registering sequential growth. Two auto analysts told ET that new launches such as Maruti Suzukis Ritz, Honda Siels premium hatchback Jazz and Fiats mid-sized hatchback Grande Punto will fuel growth further this year. Car exports were up more than 35% in April at 29,307 units. Overall, passenger vehicle exports were up 34% on the back of recent policy changes in markets like UK, France, Germany, Italy and South Korea, which are encouraging the purchase of smaller and more fuelefficient cars, bolstering the fortunes of Maruti and Hyundai, the two biggest car exporters in India. Last April had a lower base after a very high March, but auto analysts point out that March 2009 was not negative even on that high base. Overall, the automotive industry kicked off the new fiscal with double-digit growth in both production and domestic sales. Domestic production was up 10.19% and sales up 10.76% in April 2009. Market leaders such as Maruti, Hyundai, Mahindra & Mahindra, Hero Honda and Honda improved their performance year-on-year thanks to the excise cut last December, the improvement in the credit environment and the huge discounts and promotions being run by car companies and dealers. From the figures it looks like the auto industry in India is inching towards a slow recovery, says Manish Mathur, principal, AT Kearney. But with election demand petering off, utility vehicle sales turned flat at 22,320 units. Sales of multi purpose vehicles were up 15.5% at 10,478 units. Light commercial vehicles were up more than 28% on the back of high demand for Tata Ace and other vehicles in that segment. However, overall commercial vehicles sales at 29,842 units was down by 11%, with medium and heavy trucks down a staggering 48%. These are encouraging signs but since commercial vehicles are still down we need to wait a month of two before we say with certainty that this is an economic recovery. The installation of the new government is important because much of the current recovery in auto sales is due to the auto stimulus package which the new government may not continue, said Mahantesh Sabarad, senior research analyst at Centrum Broking. Sales of two-wheelers were up 14% at seven lakh units, while three wheeler sales were up 2% at 27,524 units. In the two-wheeler category, scooters grew by 20% at 97,129 units, while motorcycles grew by 12% at 5.62 lakh units. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://economictimes.indiatimes.com/News/News-By-Industry/Auto/Car-sales-sizzle- DOUBLE-DIGIT, BUT UNEVEN, AUTO SALES GROWTH IN APRIL New Delhi: The two-wheeler sector, led by Hero Honda, and car market leader Maruti Suzuki together helped the automobile industry achieve year-to-year sales growth of almost 11 per cent in April at 894,058 units. The spurt has come at a time when most companies say the outlook is tough. Total vehicle sales, according to a report released by the Society of Indian Automobile Manufacturers (Siam) grew 10.76 per cent compared with the 807,183 units sold in April 2008.
Sales of two-wheelers grew 13.71 per cent to 700,995 units as against 616,468 units in the same month last year. Hero Honda led the growth charts with an increase of 29 per cent to 363,357 units. Bajaj Auto, however, posted a fall of 23 per cent in motorcycles sales during the period. It sold 107,035 units. According to S Ramnath, analyst at IDFC SSKI Securities, growth for both passenger vehicles and two-wheelers will primarily come from economic growth. Passenger car majors like Maruti Suzuki and General Motors are banking on good monsoons this year to drive rural consumption. The share of the rural markets contribution to Marutis total sales currently stands at around 8 per cent and for GM over 20 per cent. The same holds for Hero Honda, whose rural to urban sales mix stands at 40:60. Sales of three-wheelers, comprising both passenger and goods vehicles, grew just 1.69 per cent to 27,524 units. Since the transport needs in rural and semi-urban markets arent fully met by public service, the demand for three-wheelers is strong and has contributed to the growth in the segment, said Rajesh Gupta, head (marketing), Piaggio Vehicles. Sales of commercial vehicles continued to be under pressure and dipped 11.25 per cent during the period. Sales of vehicles in the medium and heavy commercial vehicles segment dipped almost 42 per cent, while sales of light commercial vehicles grew 28 per cent on the back of good demand for models like Tata Motors Magic. The coming emission norms, which will be implemented in April 2010, will see a surge in sales in the fourth quarter of 2009, because vehicles purchased before the end of the financial year are exempted from complying with the Bharat-IV norms, said S Ramnath,analyst, IDFC SSKI Securities. ON GROWTH TRACK: AUTO SALES ZOOM 11% IN APRIL The Times of India (Web & Print Edition) New Delhi: A strong start greeted automobile sales in the new financial year (2009-10) with April numbers going up 10.7%, boosted by higher demand for two-wheelers and cars. According to figures released by the Society of Indian Automobile Manufacturers (Siam), total automobile sales in the domestic market stood at 8.94 lakh units against 8.07 lakh units in the same month last year. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://timesofindia.indiatimes.com/Business/India-Business/On-growth-track-Auto- BIKE SALES POWER 10% RISE IN APR VEHICLE OFFTAKE Shally Seth Mint (Web & Print Edition) Mumbai: Motorcycle and scooter sales, expanding at a healthy clip despite an economic slowdown, helped shore up auto sales in the country in April. India, Asias third-ranked automobiles market by volume after China and Japan, sold 894,058 cars, two-wheelers, trucks and buses last month, an expansion of 10.76% over April last year, data released by industry body Society of Indian Automobile Manufacturers (Siam) shows. Sales of two-wheelers, which account for three of four vehicles sold in the country, were reported at 700,995 units in April, an expansion of 13.71% over a year ago. An economic slowdown and risk-averse lenders had hit auto sales, with the three months to December reporting a contraction in sales. But improved consumer spending sentiment, revival of bank lending with relatively low interest rates and new models have bucked that trend for four months in a row. Better credit availability that has improved consumer sentiments and new models like the Fiat Linea, Hyundai i20 and Maruti Suzuki A-star have helped car sales, said Neeraj Bandhu, director, India, at market research and forecasting firm CSM Worldwide. Car sales expanded 4.36% to 135,697 in April, Siam said. Still, purchase of trucks and buses continued to be lower than year-ago figures. The segment reported 11.25% lower sales at 29,842 units. Volumes in the segment were dragged down by sales of medium and heavy vehicles, which contracted 42% to 11,023 units. Industrial production has contracted or has been slowing in recent months, leading to a lower demand for vehicles to move products across the country. Data released by theCentral Statistical Organisation showed that factory output shrank 1.2% in February on weak global and domestic demand. This is against a growth rate of 9.5% in the same month a year ago. Industrial output grew 2.8% during April-February, against 8.8% in the corresponding period a year ago. Commercial vehicle sale volumes fell 40% to 49,546 in the December quarter, from 82,568 in the corresponding quarter of fiscal 2008. It has climbed from a low of 17,920 in December to a high 41,881 units in March. While market leader Tata Motors Ltd posted a marginal improvement of 2% in its sales to 19,873 units over last year, sales at Ashok Leyland Ltd and Eicher Motors Ltd, continued to slide. Tata Motors posted sales growth after a decline for straight six months from October. Sales at Chennai-based Ashok Leyland dropped 70% to 1,615 units. Eicher Motors, the third ranked lorry maker by volume, also saw sales skid 24.7% to 1,401 units, Siam data showed. Manoj Mohta, head of research at Crisil Ltd, said the commercial vehicle industry has been helped by the governments economic stimulus efforts such as excise duty benefits and paring of interest rates. But the contraction in monthly sales from the year ago may last until end of this fiscal year, he said. We may see some revival on a year-on-year basis in the form of improved despatches in the second half, Mohta said. However, on an aggregate basis, we expect the heavy commercial segment to decline by 12-15%, and light commercial vehicles to post a flat growth, he said. The improvement will also partly be driven by freight availability that will grow with better factory output and easing of credit by the financiers. An uptick in two-wheeler demand in April was led by market leader Hero Honda Motors Ltd. The Delhi manufacturer sold 363,357 units, 28.6% more than what it sold in the same month last year. It also saw a jump of 13 percentage points in its market share to 51.83%. Sales of cars and passenger vehicles were led by Maruti Suzuki India Ltd, which sells one in two cars bought in the country. The Indian unit of Japanese car maker Suzuki Motor Corp. sold 64,850 units in April, an improvement of 9% from a year ago. It was helped by the volumes raked in with new models such as the A-star, which sold some 10,000 units a month. Mahantesh Sabarad, an analyst with Centrum Broking Ltd, cautioned that the returning momentum in vehicle sales may not last beyond June over uncertainty in formation of a new government at the Centre. Results for the general election are scheduled on 16 May. http://www.livemint.com/2009/05/11212830/Bike-sales-power-10-rise-in-A.html TATA MOTORS JAG VENTURE DRIVES INTO ROCKY TERRITORY The Economic Times (Web & Print Edition) Mumbai: Shares of Tata Motors fell 4.28% to Rs 268.40 on BSE on Monday, as chairman Ratan Tata told a UK newspaper over the weekend that the Jaguar Land Rover and Corus acquisitions were done when the boom was at its peak. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved" BUDHADEB DENIES RETURN OF NANO PROJECT TO SINGUR PTI Kolkata: Denying media reports quoting him that the Nano car plant would return to Singur, West Bengal Chief Minister Buddhadeb Bhattacharjee on Monday said many project proposals for the site abandoned by the Tata Motors were lying with the state government. "I never said that the Nano project will return to Singur...Many project proposals for the site abandoned by the Tata Motors are lying with the state government. They would be screened and finalised after the Lok Sabha elections," Mr. Bhattacharjee said at a 'Meet-the-Press' programme here. He, however, did not specify what type of projects were pending clearance at Singur. Ruling out any further discussion with Trinamool Congress leader Mamata Banerjee on her old demand for return of 400 acres at the Singur project site, Mr. Bhattacharjee said, "Now I feel I should not have discussed the issue at all with her." Replying to a query on whether he will tender apology for the Singur issue, the chief minister said, "There is no question of tendering apology for the failure of Singur project...My government did not commit mistake at Singur. It was a deliberate attempt by the Opposition to stop the car project there." http://www.thehindu.com/holnus/004200905120343.htm GOVT OFFICIALS TRY TO BREAK MAHINDRA PLANT Vaishali Balajiwale Daily News & Analysis (Web Edition) Nashik: The district collector, Nashik, conveyed a meeting separately with the labour union representatives and the management of Mahindra & Mahindra to find a solution to the strike at the company plant. The union representatives spoke with collector P Vellarasu and the deputy commissioner of labour, stating their stand demanding the suspension pending enquiry against union president Madhav Dhatrak be removed first and then a settlement on the agreement issue be discussed. Management representatives spoke with the collector for an hour stating the strike is illegal. Later, the collector said that representatives of both parties have been strongly advised to consider all aspects, including law and order, to resolve the issue. Management has also filed a caveat in the industrial court at Nashik against the strike, which is to be heard on Tuesday. http://www.dnaindia.com/report.asp?newsid=1255151 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTERVIEWS/FEATURES Go To Top Not really if one goes by the market share of compact luxury cars in India. At a time when everyone is looking at ways to cope with the economic slump, the evergreen compact car market is inspiring major players to roll out mini variants on the Indian roads. ASRP Mukesh reports http://www.dailypioneer.com/VIVACITY/VivaCity.html
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| CARS, SUVs, MUVs Go To Top Manu P. Toms The Hindu Business Line (Web & Print Edition) Mumbai: Maruti Suzuki plans to double the number of its outlets in rural India from the present 231 to around 450 in the next two years. By this time, the total number across the country will be closer to 1,000, up from the existing 680 dealerships. Simply put, rural outlets will account for nearly 50 per cent of Marutis network (550 will be located in urban centres) compared with just around 35 per cent now, an indication of the potential these regions have when it comes to car buying. This objective is also part of Marutis mid-term plan to generate sales of 2.5 lakh cars annually from rural India which, in turn, will go a long way in helping it meet its target of a million vehicles in the domestic market by 2011-12. It clocked 7.22 lakh units in fiscal that just ended. Mr Shashank Srivastava, Chief General Manager, Marketing, told Business Line that initially volumes from rural outlets would be small. But it is absolutely important for us to be present in those centres because numbers will come eventually, he said. Maruti has seen a steady increase in the rural component (of sales) during the last two years to nine per cent (over 63,000 units) last fiscal from 3.5 per cent in 2007-08. The goal for this year is more ambitious at 15 per cent, which will translate into one lakh cars. The rural market, from the companys viewpoint, is the geography which is beyond the 40 major cities. These areas, dotted with small towns, typically have a strong agrarian base. Maruti has an exclusive rural marketing department which employs 2,500 rural development sales executives. In all, it has 15,000 such executives. Special Schemes As part of its drive, there are special schemes and programmes which include sponsoring kabaddi tournaments, tie-ups with panchayat members and sales fairs (grameen mahotsavs). We began focusing on the rural market when we sensed the economic meltdown was affecting larger cities especially in the IT and realty sectors, said Mr Srivastava. The biggest draw is its portfolio of small cars which is a hit with customers in these regions. http://www.thehindubusinessline.com/2009/05/12/stories/2009051251060200.htm MARUTI TO EXPAND PRESENCE IN DIESEL SEGMENT The Hindu Business Line (Web & Print Edition) New Delhi: Maruti Suzuki is now looking to be an aggressive player in the diesel segment, a category which is dominated by Tata Motors. After the success of the Swift hatchback and the Dzire sedan in the diesel variant, the company is hoping to replicate this success in its upcoming model Ritz. To meet the growing demand for the diesel variants in its models, it is increasing the engine capacity by one lakh units as part of its Rs 9,000-crore expansion plan. This will then take its total production capacity for diesel engines to 3 lakh units by March 2010. The capacity expansion is to reduce the long waiting period on its diesel models. Maruti also hopes to divert some of its export capacity in diesel engines for the domestic market. These engines used to earlier be exported to Hungary, but the demand in that market has decreased now. Currently, the Swift petrol model has a waiting period of 2-3 weeks. But the diesel variants of both Swift and Dzire have a waiting period of 3-5 months. The Swift hatchback sells about 9,000-10,000 units a month and Dzire too sells about 6,000-8,000 units. Of this, the ratio of diesel sales versus petrol is 70:30. The Ritz, set to be launched later this week, and built on the Swift platform, will sport a 1.3-litre diesel engine. We are trying to further increase capacity of diesel engines. We can tweak production based on demand, said Mr Shashank Srivastava, Chief General Manager, Marketing, Maruti Suzuki. Last year, the company exported 20,000 units of engines to Hungary. But with demand in the European market low, we will be able to use some of that capacity for the domestic market, said Mr I.V. Rao, Executive Officer, Research and Development at Maruti Suzuki. When asked how many units of Ritz diesel variant the company intends to sell, Mr Srivastava said, We would like the ratio of 70 and 30 between diesel and petrol like we have had for the Swift. The company did not specify by how much it will be able to lower the waiting period of its diesel variants with the increased capacity expansion. When the Swift was launched, the company had planned a production of 4,000 units. But sales exceeded expectations. Currently, the diesel range of passenger vehicles is dominated by Tata Motors. Though Mr Nitin Seth, Head of the Passenger Car Business, Tata Motors, refused to divulge the ratio of diesel versus petrol cars being sold, he said, We are still the largest players in the diesel segment. We cannot give the break up of sales. But customers prefer the diesel variants because they are fuel efficient. Dealer sources say that the sales ratio for Tata Motors could be as high as 80:20. Hyundai, which currently has only Getz in the diesel variant among its compact car models, is also planning to launch i20 in the diesel version by the year end. http://www.thehindubusinessline.com/2009/05/12/stories/2009051251860100.htm CAR SALES RISE DUE TO BANK FINANCING, RURAL DEMAND The Hindu Business Line (Web Edition) New Delhi: Increased availability of finance, mainly by public sector banks, and higher demand from rural areas led to a 4 per cent growth in passenger car sales in April. This was the third consecutive month when car sales increased. Maruti Suzuki posted an 8 per cent increase in its domestic sales to 56,221 units. Hyundai Motors India grew by 3.4 per cent to 22,241 units and Honda sold 16 per cent more cars during the month to report 3,565 units, according to the data released by the Society of Indian Automobile Manufacturers. Tata Motors, however, saw its sales remain almost flat at 11,202 units owing to restricted lending by banks on some of its models used for commercial purposes. Marriage season and a good crop have led to high cash component of sales. But for the growth to be long-term, there has to be better availability of finance as the credit evaluation criteria of banks are still high, said Maruti Suzukis Chief General Manager, Mr Shashank Srivastava. The growth in commercial vehicles was because of the passenger carriers and goods carrier in the light commercial vehicles segment. Light commercial vehicle sales rose 28 per cent to 18,819 units. Sales of medium and heavy vehicles remained sluggish. While buses sales grew 4 per cent to 2,253 units, trucks sales fell by 47 per cent to 8,770 units in April against the same month a year ago. Commercial vehicles sales in March are usually high because of depreciation benefit. But now, with the Government having extended the benefit till September, there should be better demand, said Mr Ravi Todi, CFO of non-banking finance firm Magma Shrachi. Within two-wheelers, scooters recorded the highest growth of 19 per cent to 97,129 units. Motorcycles sales also surged in double digits to 12.11 per cent on account of robust performance of Hero Honda and Honda Motorcycles and Scooters. Hero Hondas motorcycle sales were up 25 per cent to 3.48 lakh units and Honda Motorcycles jumped 94.5 per cent to 39,136 units during the month. Bajaj Autos sales fell by 22 per cent to 1.06 lakh units and TVS witnessed a 10 per cent drop to 44,238 units. http://www.thehindubusinessline.com/2009/05/12/stories/2009051251090200.htm LEAN IS IN FOR COST-CONSCIOUS AUTOMAKERS The Economic Times (Web & Print Edition) Mumbai: With the economy on a diet, auto makers are looking at ways to shed weight and make their products fuel-efficient without compromising on the safety quotient. Honda, Maruti Suzuki, Hyundai, Toyota and Tata Motors are working overtime to reduce the body weight of their vehicles by turning to aluminium, high-tensile steel and plastics. The reduction in weight across car makers will be at least 5% and in some cases as much as 12%, say industry trackers.
MARUTI TO TUNE UP INDIA R&D CENTRE Chanchal Pal Chauhan The Economic Times (Delhi Print Edition) New Delhi: Maruti Suzuki is scouting for expat and Indian engineers working with troubled carmakers in the US, Europe and Japan to develop its own cars from scratch right here in India. The local research & development (R&D) centre, dubbed to be one of the largest such Suzuki facility outside Japan, is being strengthened to develop new cars independently. Until now Marutis technical expertise had been restricted to giving facelift to older Suzuki cars like the Zen and Omni and upgrading them to meet the new emission norms. Although the Indian R&D team was involved in the development of Swift, Dzire and SX4, their major work was conceived in Japan. The local R&D centre, which will spearhead design and development of small cars in India, will change all that. The unit will also have testing facilities to carry out research on safety and newer technologies and will sport a testing track. We are doing a global search for engineers and technocrats to develop new team leaders to equip the company to gain competence in making structural changes in our existing cars as well as developing new concept models for Maruti, Maruti executive officer R&D IV Rao said. The company plans to up headcount of engineers 30% to 1,000 by 2010 to churn out new cars. Maruti, which has traditionally hired freshers from engineering colleges in India, will be tapping several top engineers and designers with experience to broaden talent pool. Maruti Suzuki India managing director S Nakanishi said: India is Suzukis largest operating business, contributing more in sales and profitability than even Japan. Suzuki wants it to evolve as a full-fledged car company with capability to develop cars from scratch in future. Suzuki has already announced $2 billion investment by 2010 in India for capacity expansion and new product development. Marutis top brass from the R&D and personnel departments have been looking to expand and develop teams for specific high-tech fields like car designing, automotive styling, powertrain (engines & gears) development, modelling and structural bodywork. Maruti currently has around 15 Japanese executives and is looking to boost technical knowhow to develop new vehicle platforms and an array of powertrain technologies including alternative fuels, hybrids and electric vehicles. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" MARUTI WILL INCREASE R&D STAFF TO 1,000 BY 10 Gurgaon: Maruti Suzuki India, will be increasing headcount in its R&D division to 1,000 by the end of March 2010, as the firm gears up to meet parent Suzuki Motor Corps aim of making the Indian subsidiary global hub for small car development.
http://www.deccanherald.com/content/2059/maruti-increase-rampd-staff-1000.html NASHIK STRIKE A SETBACK FOR MAHINDRA'S XYLO Swaraj Baggonkar Business Standard (Web & Print Edition) Mumbai: Barely four months after Mahindra & Mahindra (M&M) rolled out the Xylo, a multi-seater utility vehicle that got a good market reception, the model has ran into a production hurdle. The companys Nashik plant, where the Xylo is made, has been paralysed for the past five working days due to an intense labour strike. Says Rajesh Jejurikar, M&Ms chief of operations (automotive sector): The strike will alter delivery schedules. There has been no change in demand. Although M&M had to ramp up Xylos production to more than what was projected, it has been falling short of the demand. The company started with producing 60 Xylos a day, which was more than doubled to 135 recently. Despite this, dealers are asking customers to wait for four-six weeks for delivery. Meanwhile, the 4,400-strong workforce, which has gone on an indefinite strike at Nashik, has refused to relent to any of the managements overtures. Union leaders says M&M has delayed signing a salary agreement for 22 months. M&M says it is working on a back-up plan. Apart from Nashik, the company has vehicle manufacturing plants at Zaheerabad (near Hyderabad), Hardwar and Kandivli (Mumbai). However, all these plants make other vehicles pick-ups, soft-top utility vehicles, three-wheelers, light commercial vehicles and buses. Meanwhile, Xylos prime competitor, Innova from Toyota Kirloskar, has seen a spurt in production. The company has upped the vehicles output from 3,000 a month to 3,300. Sandeep Singh, deputy managing director (sales and marketing), Toyota Kirloskar Motors, said, Sales of the Innova have gone up after the face-lift it received earlier. The spurt has come from the personalised segment of buyers and from corporate buyers. We are hiking its production to 4,000 units by July to keep pace with the demand. City-based analysts say M&M will lose new buyers if Xylos production is not restored soon, the benefit of which will go directly to Toyotas Innova. Toyota officials say the company does not intend to run any promotional scheme, as the Innova already has a waiting period of four weeks. http://www.business-standard.com/india/news/nashik-strikesetback-for-mahindra/s-xylo/357817/ INDIAN OPERATIONS ARE HEALTHY, SAYS SUZUKI MOTOR CORP PTI See this story in: Business Standard (Web Edition), mint (Web & Print Edition), The Hindu Business Line (Delhi Print Edition) Tokyo/New Delhi: Japanese auto giant Suzuki Motor Corporation (SMC) has lauded its Indian operations for maintaining healthy performance and contributing significantly to its net income despite a slump in the global automart. Suzuki's net income plunged by about 66 per cent for the year ended March 31, 2009. Quoting Suzuki Motor Corp's (SMC) Senior Managing Director Takao Hirosawa, AFP said: "...The Indian market, which is one of our main pillars, is relatively healthy." The company has reported a net income of 27.43 billion yen (about Rs 1,388.83 crore) for FY09, compared to 80.25 billion yen (about Rs 4,062.83 crore) in the previous fiscal. Maruti Suzuki India (MSI), in which SMC holds 54.21 per cent, booked a net profit of Rs 1,227.45 crore for 2008-09 against Rs 1,789.87 crore in 2007-08, a dip of 31.42 per cent. During FY09, MSI sold 7,92,167 cars against 7,64,842 units in the previous fiscal, up 3.5 per cent. Besides India, Hirosawa said the company managed to make a profit because its small cars did relatively well in Japan. "...And our reliance on North America was relatively small," he added. SMC, however, forecast a rough ride ahead for the ongoing fiscal on the wake of economic downturn, which has affected auto companies badly across the world. http://www.business-standard.com/india/news/indian-operationshealthy-says-suzuki-motor-corp/61221/on http://www.livemint.com/2009/05/11135425/Growth-in-India-raises-Suzuki.html Rebecca Rassendren Asian Age (Web & Print Edition) Bengaluru: Toyota Motors recently forecast a much bigger-than-expected $8.6 billion annual loss but the firms Indian joint venture (JV) says ensuing expense-shedding efforts globally may not delay its small car project. "We are going ahead with our projects and the problems faced by Toyota Motors will not block our progress," the deputy managing director, commercial, for Toyota Kirloskar Mr Shekar Vishwanath, says. "The small car will be rolled out in December 2010 as scheduled," he adds. Toyota Kirloskar is a JV between the Kirloskar group and Toyota Motors. While Toyota holds 89 per cent of the firm, the Kirloskar group owns the remaining 11 per cent. However, Mr Vishwanath said Toyota Kirloskar could face certain constraints as Toyota Motors has stopped making any kind of investments around the world. "But they still look at India as an opportunity and will continue to support us," he said. India is one of the very few markets in the world that is not in a recession and has been growing, buoyed primarily by rural demand. http://www.asianage.com/presentation/leftnavigation/news/business/toyota-jv-project-on-track.aspx | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| COMMERCIAL VEHICLES Go To Top Sindhu Bhattacharya Daily News & Analysis (Web Edition) See this story in: Mint (Delhi Print Edition) New Delhi: Not just two-wheelers and passenger cars, growth may have begun to come back to the commercial vehicle segment as well. Though production and sales for CVs are still in negative territory, a turnaround has certainly commenced since declines have become narrower and the situation is expected to improve in the coming months. As per SIAM data, overall CV sales fell by 11.25% in April to 29,842 units (33,626 units). While sales of light CVs recorded a healthy growth of 28.23% to 18,819 units (14,676 units), it is the medium and heavy CVs which have continued their downward spiral, declining by almost 42% to 11,023 units (18,950) units. But here is the good news: Overall CV production this April was down by just 18.67% to 33,997 units against a decline of almost 29% in March to 40,383 units and about 40% in February to 30,940 units. The bus buying scheme by state governments to augment public transport has helped clear some of the bus inventories. And it is clear now that with truck rentals also moving up for the second month in a row, things should improve going forward for the M&HCV segment. According to data released by the Indian Foundation of Transport Research and Training (IFTRT), truck rentals moved up by 4-6% in April due to peak arrival of summer fruits, vegetables and record wheat harvest across the country. While November-March witnessed 18-25% drop in truck rentals on trunk routes, the improvement began in March when rentals were up by 5-6%. "In addition to this truckers gained from 10-11% drop in operating costs due to reduction in diesel and tyre prices." Mahantesh Sabarad at Centrum Broking points to positive signs in the economy while asserting that "commercial vehicle sales will improve though with a lag. The positives are already evident with production improving". Already, makers of Light CVs - specially those in the small LCV space or the sub one tonne cargo and passenger vehicles - are putting in place new capacity in anticipation of robust growth in the coming months. According to another analyst, the continued decline in April M&HCV sales is partly explained by the unwinding of March inventories and the fact that the two leading manufacturers - Tata Motors as well as Ashok Leyland - have continued to push vehicles in the market despite flagging sales. An analyst pointed out that truck sales for Ashok Leyland were down by a whopping 78% last month. And bus sales, which were quite robust in last few months due to strong orders for buses from various government schemes, also declined 28% year-on-year and 70% sequentially to 596 units. As per SIAM, Tata Motors' total M&HCV sales were down 28.4% to 8,053 units (11,248 units). Some analysts point towards five-six months' inventory having piled up at ALL dealerships to argue that the two big M&HCV makers may have finally realised the perils of pushing more and more trucks and buses into the market despite weak demand. http://www.dnaindia.com/report.asp?newsid=1255187 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CONSTRUCTION & AGRI MACHINERY Go To Top | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2/3 WHEELERS Go To Top Murali Gopalan The Hindu Business Line Mumbai: Honda Motorcycle & Scooter India (HMSI), the 100 per cent two-wheeler arm of the Japanese parent, has drafted an aggressive strategy for motorcycles that will also act as a key differentiator with its sibling, Hero Honda. The overall direction at HMSI is to focus more on fun biking and move away from basic commuting. This is what will make us unique while ensuring that there is no cannibalisation with Hero Hondas motorcycles in the process, Mr Shinji Aoyama, President and CEO of HMSI, told Business Line. The recent launch of the 125cc Stunner is a move in this direction and this is what the 100cc bike, due to debut this fiscal, is intended to do too. Its price could be a bit higher but the styling and performance will be unique to HMSI and customers will know the difference, he added. Icon in basic bikes Mr Aoyama reiterated that the 25-year-old Hero Honda was an integral part of the parents stable thanks to the image it has built up in reliability and efficiency. It is a strong and relevant asset from Hondas viewpoint and also an icon in basic bikes. HMSI, though, will create something different and stand for a young, energetic and fun company which offers the highest quality, he said. Combined, the two have a market share of over 70 per cent in the two-wheeler segment, thanks largely to Hero Honda though HMSI will gradually emerge the global face of Honda in the coming years. However, there could still be greater synergies with Hero Honda in areas such as engines where the 150cc engine of the Unicorn is common to the Hunk and CBZ. Scooter segment As for automatic scooters, where the company is the market leader with the Activa, Dio and Aviator, the thinking is different (from motorcycles) in that they should fulfil their objective of being a comfortable means of transport. According to Mr Aoyama, HMSIs product line-up for India will be almost complete with the launch of the 100cc this fiscal. The mass segment will be covered with our scooters and motorcycles and the next step is to expand on our dealer network especially in semi-urban and rural areas. We may think of more powerful bikes at a later stage, he added. Thrust on quality The company is also categorical about the fact that volumes and market share are not priority areas. I do not care about market share because this does not make customers happy. The focus for us is on quality products and services, he said. HMSI, like most other companies, was hit by the raw material price spiral last calendar. The global slowdown has helped from the viewpoint of keeping prices in check. If prices continue to stay depressed, it is good news but, sooner or later, they will rise and that is what worries me, Mr Aoyama said. He admitted that he was not entirely happy with the financials either. We are still struggling though there have been some improvements year-on-year. However, we have not reached a satisfactory level yet, he said. For a company that is the clear leader in the gearless scooter segment, HMSI should have little to complain about. Yet, with over 2.5 million Activa customers in India, there was till recently some negative opinion on the product in the mileage department. We needed to get better here and, therefore, launched the new Activa with 15 per cent more fuel efficiency which actually brings it closer to motorcycles mileage, Mr Aoyama said. From Hondas point of view, India remains an attractive market for two-wheelers. There are a huge number of youngsters in India with disposable incomes getting higher. I expect demand to grow consistently, though it could be in single digit figures, in the coming years, he said. http://www.thehindubusinessline.com/2009/05/12/stories/2009051251110200.htm BAJAJ AUTO TO RAMP UP PRODUCTION AT PANTNAGAR Shishir Prashant Business Standard New Delhi/ Pantnagar: The success story of Hamara Bajaj scooter campaign may have ended after Bajaj Auto decided to stop production of its two key models Chetak and Super. But in its manufacturing facility at the tax incentive zone here, the company is gearing up to script a fresh story by introducing new variants of its popular motorbike Discover by August-September this year and increasing its current production substantially, company sources said. Bajaj Auto is producing Platina (100cc and 125cc) and XCD (125cc and 135cc) at the Pantnagar facility spread over an area of 66 acres. The company had invested Rs 230 crore in the Pantnagar facility, which has the capacity to produce 1 million units per annum and has nearly 350 employees. The facility became operational in April 2007. With the auto sector witnessing a fresh growth in the country, the company is planning to scale up its production to 60,000 units per month from the current 45,000. The strategy is to increase the production and take maximum benefits of the tax incentives, the sources said. During the slowdown period, production at the factory declined to 20,000 units. But since March, the production is being increased rapidly and was scaled up to 30,000 units during the month. In May, it touched the 36,000-mark and this month was further raised to 45,000 per month. Bajaj Auto stopped production of its popular scooters Chetak and Super a few years ago. The company is now mainly focusing on motorbikes. There are also plans to produce three-wheelers from this factory. http://www.business-standard.com/india/news/bajaj-auto-to-rampproduction-at-pantnagar/357726/ BAJAJ PULSAR NEW MODEL See this story in: Business Standard Bajaj Auto on Monday unveiled the new 2009 Pulsar 150 DTS-I and 180 DTS-i. The new range offers unique feature with sportier styling to further strengthen the companys dominant position in the premium segment. The 150 DTS-I is prices at Rs 59,580 while the 180 DTS-I is prices at Rs 63, 148, ex-showroom.
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| COMPONENTS Go To Top Business Standard Kolkata/ New Delhi: The prospect of a mid-month price increase in cold rolled (CR) and galvanised steel used by automobile and consumer durables makers has abated with the government deferring a decision to impose a safeguard duty on the intermediate product, hot rolled coils (HRC). The Standing Board on Safeguards, which met, felt there was no urgency to impose a safeguard duty and said domestic steel companies should consider lowering their prices to beat competition from imports. The board also asked the Director General Safeguard (DGS) to examine the issue further and seek views of the parties concerned, including consumers. Safeguard duty is a provision of the World Trade Organisation, allowing special curbs if it is established that goods are imported at prices lower than the cost of producing these. Last month, the DGS had recommended the imposition of a 25 per cent safeguard duty on imported HRC below $600 a tonne to protect the domestic industry from cheap imports. The recommendation followed an application filed by Essar Steel and Ispat Industries, supported by JSW Steel and state-owned Steel Authority of India Ltd (SAIL), after international prices of HRC fell sharply. Global HRC prices have collapsed to $410-$415 a tonne now from $1,070 a tonne in the July-to-September period last year. Some importers, however, are quoting prices between $360 and $380 a tonne, which made domestic HRC, ruling at $496 a tonne, uncompetitive. Imported HRC accounts for 15 per cent of the Indian market of 20 million tonnes. Commerce Secretary Gopal Pillai agreed that imported steel HR coil is still cheaper than the domestic produce, but turned the argument around to suggest steel companies should consider lowering their prices to beat competition from imports. "Steel users have brought to our notice that they have appealed to steel makers that steel prices should be reduced further, matching import prices, Pillai told NewsWire18. The prospect of a safeguard duty on HRC had prompted CR and galvanised steel majors to review prices over and above the Rs 500 to 2,250 per tonne increase they effected over the past three weeks. That position has changed. Had the safeguard duty been imposed, we would have increased prices by Rs 500 to Rs 1,000 a tonne because HRC prices would have gone up. Now there is no need to increase prices, said Neeraj Singal, managing director of Delhi-based Bhushan Steel. Bhushan, which makes CR and galvanised steel, raised prices by Rs 500 a tonne from May 1. An official of Mumbai-based Uttam Galva Steels, which raised prices up to Rs 2,250 a tonne in phases from mid-April to May 5, said the same thing. Meanwhile, HR producers expressed dissatisfaction with todays deferment. Anil Sureka, director-finance, Ispat Industries, primary steel producer, said the government decision would impact the health of the steel companies. Cheaper material will be imported and it will hurt our bottom-line, he said. Another HR producer said, there was a huge global surplus capacity which was being exported to companies like India, where demand was firm though margins were thin. Any delay in correcting the situation will have serious adverse effect on the sustainability of the industry. It is in the long term interest of the country to avoid any damage to the steel industry. Otherwise India will have to import steel at a much higher cost, he said. The stock prices of steel fell sharply on news of the deferment (see table). They had risen significantly over the past few weeks on prospects of a safeguard duty being imposed. http://www.business-standard.com/india/news/govt-defers-dutysteel-intermediate/357811/ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ALLIED INDUSTRY Go To Top New Delhi: Natural rubber production has declined by 9% to 52,000 tonnes during April compared to 57,250 tonnes in the year-ago period, mainly on account of drought in major growing belts in Kerala. The natural rubber consumption, however, increased by 4% to 73,000 tonnes in April 2009 from 70,025 tonnes in the same month last year. The decline in production was due to drought in major rubber growing belts in Kerala, a senior Rubber Board official said. He attributed the growth in consumption to recovery in the tyre sector. Import of natural rubber rose by 86% to 8,175 tonnes in April compared to 4,391 tonnes in the year-ago period, but exports plunged by 82% at 653 tonnes from 3,690 tonnes in the period under review. CEAT ENTERING WHEEL MANAGEMENT IN INDIA The Economic Times Chennai: RPG Enterprises promoted tyre manufacturer CEAT Tyres has inaugurated its first wheel management centre in India at Sankagiri in Tamil Nadu on Thursday. The centre would be a hub for service and maintenance of radial tyres in trucks. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved" STRIKE STOPS WORK AT TWO MRF UNITS T E Narasimhan Business Standard Chennai: Production at tyre giant MRFs factories at Arakkonam, near here, and at Puducherry, has been hit following a sit-in strike by around 3,000 workers. The former unit produces motor tyres and tubes, while the latter makes radial tyres. Union sources said employees also decided to boycott the coming Lok Sabha elections. A meeting between management and union heads saw no settlement. T V Paramasivam, president, MRF United Workers Union, affiliated with the United Labour Federation (ULF), told Business Standard the strike was declared since workers demands were not met. The demands included reinstatement of around 250 workers, most of whom have been dismissed following unionisation, recognising the union and a willingness to negotiate wages. He says workers at the 13-year-old plant have continued to be on probation or training and are paid daily wages. The pay averages Rs 4,000-5,000 a month and the workers are demanding wage scales on a par with those at the Chennai plant, where the salary is around Rs 19,000, sources say. Till May 8, he said, the company did not come for a dialogue. The management had declared a lockout at the Arakkonam unit between December 17 and 19 last year due to labour unrest. Later, it also declared a lockout in Puducherry, where it was lifted on February 26. Workers in both plants have decided to boycott the coming Lok Sabha elections in the state, which goes to polls on May 13. Union representatives say they have over 70,000 votes at Arakkonam and Pondicherry. They said they would not support any political party since none of them came forward to help them. While company officials were not available for comment on the strike and its impact, Paramasivam said Arakkonam facility produced 26,000 tyres and 42,000 tubes a day while the Pondicherry unit produced 10,500 tyres a day. The company reported 4 per cent increase in net profit during the quarter ended March 31 to Rs 68.7 crore compared with Rs 65.6 crore a year ago. http://www.business-standard.com/india/news/strike-stops-work-at-two-mrf-units/357816/ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FINANCE & INSURANCE Go To Top | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LUBRICANTS & ALTERNATIVE FUELS Go To Top Kalpana Pathak Business Standard Mumbai: The government-owned Indian Oil Corporation (IOC) is tying up with US-based National Renewable Energy Laboratory (NREL) for a pilot project to produce second generation biofuel. This biofuel essentailly bio-ethanol would be produced from cellulosic biomass or degradable agricultural waste or wood. In the coming years, it is believed that cellulosic biomass will be the largest source of bio-ethanol, said a senior official of IOC. Next generation fuel is what the industry is betting on. Alternative methods, other than sugar cane, needs to be considered, the official added. IOC would invest around Rs 20 crore initially for the cellulosic biomass project. Experts say biomass resources are abundant and bio-ethanol from cellulosic biomass appears to have near-term economic potential. Cellulosic ethanol offers enormous promise and we can have tonnes of it per year without competing for oil, Planning Commission member Kirit Parikh told Business Standard. The NREL has also signed a memorandum of understanding with its Indian counterpart the Ministry of New and Renewable Energy for production, utilisation, distribution and marketing of biofuels. Under the agreement, the countries would cooperate in the areas of emerging technologies for second-generation biofuels and advanced technologies for first generation biofuels, among others. Here thrust would be given to production and development of quality planting materials and high sugar containing varieties of sugarcane, sweet sorghum, sugar and cassava. Across the world, private oil companies are looking at India and identifying probable partners for a venture in next generation fuel. In fact, US universities and Indian companies are also collaborating, said an official from a bioprocesses and engineering company. A shortfall in ethanol production has already thrown Indias plans to blend ethanol with petrol. Sixteen months ago, the government made it mandatory to blend petrol with 5 per cent ethanol but the plan never stabilised and the October 2008 deadline to raise it to 10 per cent has been missed. Blending of petrol with 5 per cent ethanol would have required 1,800 million litres of the spirit for three years, from November 2006. However, oil marketing firms managed to contract only 1,400 million litres of ethanol till February 2009. Sources in the ministry say the government is looking at awarding a declared good status to biofuel and free it from all taxes to make it competitive. http://www.business-standard.com/india/news/ioc-may-tie-upus-lab-to-produce-biofuel/357829/ OIL FALLS TO NEAR $58 ON PULLBACK FROM RALLY Hindustan Times Singapore; Oil prices fell to near $58 a barrel on Monday in Asia as investors mulled whether weak US crude demand and bursting supplies justify building on the recent strong rally. Benchmark crude for June delivery was down 38 cents to $58.25 a barrel by midday in Singapore, in electronic trading on the New York Mercantile Exchange. On Friday, the contract rose $1.92 to settle at $58.63 a barrel, the highest level this year. Oil prices have jumped this month from near $50 as crude investors follow stock markets that have surged on expectations the worst of a severe recession is over. The Dow Jones industrial average rose 2 per cent on Friday while the Standard & Poor s 500 index climbed 2.4 per cent, adding to a dizzying 37.4 per cent leap since early March. "Oil has been strongly influenced by stocks lately," said Victor Shum, energy analyst at consultancy Purvin & Gertz in Singapore. "Investors are counting on a global economic recovery to boost demand." Investors have brushed off news of overflowing US oil inventories, which rose to a 19-year high last week. Then on Friday, the US Labor Department said that employers cut 539,000 jobs in April. That was less than expected and the smallest reduction in six months. However, the nation's unemployment rate climbed to 8.9 per cent, the highest since late 1983. "Investors are really trying to look for green shoots," Shum said. "With the unemployment rate rising, there isn't any sign in the US that oil demand is coming back." "The price is very strong relative to the fundamentals." Oil prices surged to a record $147 a barrel in July on investor optimism that growing consumer demand, especially in emerging economies such as China and India, would outstrip limited supplies. Prices plunged to below $35 in March on the back of this year's global slowdown. "A rally that's not driven by fundamentals can only go so far," Shum said. "At some point, there's going to be a pullback." In other Nymex trading, gasoline for June delivery fell 2.20 cents to $1.68 a gallon and heating oil dropped 1.13 to $1.51 a gallon. Natural gas for June delivery slid 4.1 cents to $4.27 per 1,000 cubic feet. In London, Brent prices fell 38 cents to $57.76 a barrel on the ICE Futures exchange. http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName=Business&id=fd96d872-5555-463d-8eb3-c4d1d9b33563&Headline=Oil+falls+to+near+%2458+on+pullback+from+rally | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTERNATIONAL NEWS Go To Top Reuters See this story in: The Economic Times Detroit: Ford Motor Co said on Monday that it would sell 300 million common shares and use part of the proceeds to pay off its healthcare obligations to the United Auto Workers under the terms of a recently concluded deal with the union. GM EXIT FROM DOW LOOKING MORE LIKELY Reuters See this story in: The Economic Times New York: The potential for changes in the blue-chip Dow Jones industrial average remains high, according to the head of the index's oversightcommittee, the same day the head of General Motors said bankruptcy had become more likely. GM HIRES FIRM TO SCOUT FOR NEW DIRECTORS: REPORT Reuters See this story in: The Economic Times New York: Ailing auto major General Motors Corp has hired executive-search firm Spencer Stuart to assist in find replacements for about half of its 12 directors, says a media report. GM SAYS OPEN TO MOVING FROM DETROIT HEADQUARTERS Reuters See this story in: The Economic Times, The Indian Express Detroit: General Motors Corp is open to considering moving its headquarters from Detroit, selling off U.S. plants and even renegotiating parts of its restructuring plan with its major union, the new chief executive said on Monday. http://www.indianexpress.com/news/gm-bankruptcy-almost-inevitable/457377/4 INSIGHT FIRST HYBRID TO TOP JAPAN AUTO SALES AP See this story in: The Economic Times Tokyo: Honda's Insight, billed as the cheapest gas-electric hybrid on the market, ranked as the topselling vehicle in Japan for April the first time a hybrid has clinched that spot. Honda Motor has pitched the Insight as an affordable hybrid though such vehicles have a bigger price tag than gasoline engine cars because they're packed with expensive green technology. The Insight starts at 1.89 million yen ($19,000) in Japan, where it went on sale in February, and $19,800 in the US, where it is starting to arrive in showrooms. Honda sold 10,481 Insight cars in April in Japan, according to data released on Monday by the Japan Automobile Dealers Association. That marked the first time a hybrid model was Japan's monthly best-seller, excluding minicars limited to an engine size of up to 660 cubic centimeters, Honda said. "The all-new Insight has been very well received by a wide range of customers due to its excellent environmental performance, easy-to-use packaging, light and comfortable driving and affordable pricing," the Tokyobased maker of the Accord sedan and Odyssey minivan said. But Honda will face tough competition from a revamped version of the world's top-selling hybrid, the Prius, from Japanese rival Toyota Motor. The revamped Prius is set to be introduced next week and Toyota executives have made clear they are aware of the challenge from the Insight. Toyota is expected to be aggressive with its pricing, although the Prius is a bigger car than the Insight and would be expected to carry a higher price tag. Japan has been no exception in seeing its domestic auto market languish because of the global slowdown and credit crunch. But interest in ecological cars is growing because of government incentives for green technology as part of efforts to stimulate spending amid a recession. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ECONOMY & FINANCE Go To Top The Hindu Business Line Mumbai: The rupee fell by around 25 paise against the dollar on Monday, after losing most of the intra-day gains. The rupee opened with a positive gap at 49.10 and strengthened to touch an intra-day high of 49.05. It weakened to close at 49.52, against the previous close of 49.28. The higher opening was on account of euros rally against the greenback in the previous trading session and the positive global equity markets, said a dealer with a private bank. However, it lost most of the gains tracking the negative domestic equity indices, added the dealer. In the overseas markets, the dollar gained a bit against the euro and the pound but was flat against the yen. In the forward premia market, the six-month premium closed at 2.75 per cent and the one-year closed at 2.26 per cent. http://www.thehindubusinessline.com/2009/05/12/stories/2009051251280600.htm SENSEX PARES EARLY GAINS, FALLS OVER 193 POINTS PTI See this story in: The Hindu Business Line Mumbai: After a bright start, the Bombay Stock Exchange benchmark Sensex pared gains for the second consecutive day, losing over 193 points, with the outcome of the Lok Sabha elections casting a shadow on trading sentiment. The Sensex, which opened higher by 1.3 per cent, wiped off the day's gains to end lower by 193.44 points, or 1.63 per cent, at 11,682.99 with all the sectoral indices ending lower. The key index touched the day's low of 11,621.30 and rose to a high of 12,026.60. The 50-share National Stock Exchange index Nifty dropped by 66.10 points at 3,554.60, after touching a low of 3,534.55. In the 30-BSE benchmark, 24 shares quoted lower while six were positive. The precipitate fall in the market was partly checked after shares of leading private lender ICICI Bank and HDFC Bank recorded gains. Market men said the benchmark, which was up about 50 per cent from its 2009 low in early March, rose 1.3 per cent in early deals, but fell as investors were concerned that the poll results might throw up an unstable coalition. They said despite the widespread caution, some investors who had missed the nine-week rally, were trying to make amends by building up long positions. http://www.thehindubusinessline.com/blnus/05111901.htm INDIA GREW 6.5 PER CENT IN FY09: PM See this story in: The Indian Express New Delhi: India's economy grew an estimated 6.5 per cent in the just-ended 2008/09 fiscal year and consumer price inflation is expected to moderate in five to six months, Prime Minister Manmohan Singh said on Monday. A global economic slump and slowdown in domestic demand have weakened economic growth in Asia's third largest economy, but falls in commodity prices have helped moderate prices. "The wholesale price inflation is already down to around 1 per cent and there is a time lag for the consumer price inflation to also fall," Singh told a news conference at Ludhiana. "But I am sure CPI inflation will moderate in five to six months," he said at the last lap of a month-long election campaign in Punjab. India's wholesale price index rose 0.70 per cent in the 12 months to April 25, above the previous week's annual rise of 0.57 per cent. But annual CPI inflation stood at 9.63 per cent in February, as prices of food products remained firm. Singh said the government estimated Asia's third-largest economy grew 6.5 per cent the 2008/09 financial year, which ended on March 31. That would be well below 2007/08's 9 per cent and the slowest since growth of 3.8 per cent in 2002/03, but Singh said it was still the second-highest growth rate among major economies. The Reserve Bank of India has forecast growth to further slow to 6 per cent in 2009/10. Private analysts have also scaled down growth forecasts for 2008/09 and 2009/10 after dismal export and factory output data. The government will release GDP data for 2008/09 on May 29. http://www.indianexpress.com/news/india-grew-6.5-per-cent-in-fy09-pm/457555/2 Last Financial closing
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