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| INDUSTRY Auto companies strive for digital marketing Tata Motors aims at 20% sales growth in 2009-10 Nano vendors seek guarantee on loans to invest in Sanand Lenders delay seizing vehicles as resale prices fall, yard rentals up Maruti Suzuki official visits IIM campus Labour Court directs Mahindra Union to withdraw strike INTERVIEWS/FEATURES Maruti Suzuki Ritz: The Indian focus Yamaha R15: Track weapon goes touring! TVS set for premium bike launch in May CARS, SUVs, MUVs Competition hots up in premium compact car segment Carmakers betting on premium sports utility vehicles Maruti plots CNG roadmap with Reliance, GAIL COMMERCIAL VEHICLES Actis may not subscribe to Swaraj Mazdas rights issue Low-floor buses: Govt delay earns Ministry warning CONSTRUCTION & AGRI MACHINERY | ALLIED INDUSTRIES MRF workers boycott polls, continue strike FINANCE & INSURANCE Shriram Transport Finance Q4 net up 37% LUBRICANTS & ALTERNATIVE FUELS INTERNATIONAL NEWS GM plans China-made vehicles for US market Chrysler deal bars strikes for 6 years Daimler to cut 2,300 jobs at Japanese unit Audi expects to report profits despite industry crisis Renault follows Ferrari in F1 pullout threat ECONOMY & FINANCE Sensex falls on political uncertainty Auto cos cautious, but IT, realty, banking hopeful
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| INDUSTRY Go To Top The Economic Times (Web Edition) Mumbai: Automobile sales for the financial year 2010 started on a better note with improved performance in April. The increase in sales is attributed to auspicious occasion of Akshaya Tritiya falling during the month and revival in demand from rural markets. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://economictimes.indiatimes.com/News/News-By-Industry/Auto/Automobiles/ AUTO COMPANIES STRIVE FOR DIGITAL MARKETING Chanchal Pal Chauhan The Economic Times (Web & Print Edition) New Delhi: After the rural market rejuvenated car sales, auto companies are now building on digital marketing activities to tap onto a new set of tech savvy customers. The strategy is to generate business through consumer interface over internet and mobile phones, say auto marketers. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved" TATA MOTORS AIMS AT 20% SALES GROWTH IN 2009-10 Business Standard (Web Edition) Kolkata/ Bhubaneswar: Tata Motors is aiming at 20 per cent growth in its sales in the passenger car segment (cars and utility vehicles) in the Orissa market in 2009-10 compared to about 4,200 units of cars and utility vehicles (UVs) which it sold in the previous fiscal. The company expects its growth to come on the back of the launch of new models and on the roll out of upgraded versions of its existing models in the passenger car segment. Tata Motors also plans to strengthen its dealership network in the state to push up its sales. We are expecting about 20 per cent growth in the passenger car segment in the Orissa market in this fiscal without factoring in the sales of the Nano car. The Nano car has received very good response in Orissa and the company expects to deliver about 1,000 Nanos to its customers in the state by the end of this fiscal, a senior company executive told Business Standard. In 2008-09, Tata Motors recorded 65 per cent growth in its sales of passenger cars and utility vehicles in the Orissa market. The robust sales growth in the previous fiscal mainly came on the back of the launch of the Indica and Indigo cars. The auto major sold about 3,700 units of Indica and Indigo and 550 units of utility vehicles in the state in 2008-09. The company also set up new two dealer outlets in the state at Rourkela and Jeypore in the last fiscal.In 2009-10, the company plans to set up two new dealer outlets at Anugul and Cuttack. Tata Motors has 29 per cent market share in the overall car sales in Orissa and 11 per cent share in the utility vehicle market in the state. Orissa accounts for 22 per cent of the companys total sales volume in the eastern region. http://www.business-standard.com/india/news/tata-motors-aims-at-20-sales-growth-in-2009- NANO VENDORS SEEK GUARANTEE ON LOANS TO INVEST IN SANAND Murali Gopalan The Hindu Business Line (Web & Print Edition) Mumbai: Key ancillary suppliers associated with the Nano project have indicated that they would ideally like Tata Motors to guarantee their loans for investing in the Sanand plant in Gujarat. This is because the compensation package for expenditure incurred at the originally earmarked site at Singur has still not come through. It was in principle decided that the company would arrange for the loan (for the compensation amount) but a guarantee would be a lot more helpful, said a supplier. From the suppliers point of view, it would be a double whammy to reinvest in Sanand. We do know that the compensation will eventually come from Tata Motors but cannot afford to earmark crores of rupees all over again in a difficult period when order books are not so buoyant, one of the suppliers who did not want to be identified told Business Line. A Tata Motors spokesman said in an email response, Tata Motors has not received this particular request from any vendor. In any case, the company has been in discussions with vendors who are moving from Singur to support them with mutually acceptable terms, which are being finalised and will be implemented. Original investments The original investments at Singur roughly involved the 55 suppliers paying Rs 15 lakh an acre for land with an additional Rs 23 lakh an acre payable to Tata Motors towards provision of infrastructure such as roads and electricity. This was the 300-acre cluster that became the bone of contention during the protests led by the Trinamool Congress chief, Ms Mamata Banerjee. Each supplier spent Rs 7-10 crore on land and building. Only a handful installed machinery on the premises while most preferred to wait and watch. Expenses Suppliers spent quite a handful on filling up the land as this was a low-lying area which involved hiring trucks to dump tonnes of sand. Sources said that depending on individual requirements in land space, this is estimated to be anything between Rs 2 crore and Rs 6 crore. Piling work for the foundation also involved some expenditure. Transport costs for carrying equipment were yet another bother. The vendors earmarked for Singur (practically the same number will be part of the Sanand project) could have spent anything above Rs 350 crore on land, building and other expenses. Some estimates put this at closer to Rs 500 crore, but an exact figure is difficult to ascertain. The terms of the compensation package are not clear. Compensation Sources said that Tata Motors has agreed to make good 75 per cent of the costs incurred while the vendors would, naturally, like to have the entire spend reimbursed. Another story doing the rounds is that the company will refund only the building costs, which means other expenses may have to be written off consequently. The compensation package, in this case, would only be in the region of Rs 120 crore. We are keeping our fingers crossed for timely compensation because the last fiscal has been tough and the near future looks uncertain from the viewpoint of orders, said a supplier. The good news is that work at the Sanand facility is continuing at a brisk pace. At least 35 suppliers have been allotted land at the vendor park and trial runs for the Nano are tipped to begin soon. If everything goes according to plan, the rollout of the peoples car could even happen by end-January 2010. http://www.thehindubusinessline.com/2009/05/14/stories/2009051451800200.htm LENDERS DELAY SEIZING VEHICLES AS RESALE PRICES FALL, YARD RENTALS UP Anupama Chandrasekaran mint (Web & Print Edition) Chennai: Like many loan defaulters, Periasamy Ramalingam ignored the incessant telephone calls from his financier, Tata Motorfinance. The 52-year-old owner of Bangalore-based Infant Tempo Service has delayed payments on six instalments so far. But Tata Motorfinance, the financing arm of auto maker Tata Motors Ltd, which is yet to receive Rs8 lakh on Ramalingams loans for six trucks, is not rushing to seize the vehicles. Even six months ago, the lenders agents would have driven off with trucks, had he missed just three payments. The banks have become a bit lenient, Ramalingam, who transports goods for Finnish cellphone maker Nokia Oyjs Indian unit and tyre manufacturer MRF Ltd out of their Chennai factories, said over the phone. Their yards are full and they are largely seizing vehicles of only those people who are deliberately avoiding payments, added Ramalingam. He said he had missed loan instalments because some of his customers had not paid him. Loan collection agents, who didnt want to be named, said Ramalingams vehicles had not been seized yet. A Tata Motorfinance spokesperson declined to comment. Its not compassion thats holding back financiers, but a spike in the cost of holding confiscated trucks and plummeting resale prices of commercial vehicles in a slowing economy. Our tolerance levels have increased as we see no point in seizing the vehicles, said R. Sridhar, managing director of Indias largest truck financier Sriram Transport Finance Co. Ltd. He confirmed that rising overhead costs of confiscated trucks were rising. Sridhar, whose company claims a 25% share of Indias pre-owned vehicle loans market, added that the chances of repayment dimmed even more if a vehicle was seized because that would only reduce the earnings of the fleet owner. In the Rs1 trillion used-trucks market, as estimated by Sridhar, financing has always been limited because of the difficulty in valuing vehicles plying over rickety roads across India. As economic growth slows, that funding has dried up further with banks and finance companies willing to lend only 75% of a vehicles price against 100% earlier, some loan agents said. This has kept prospective buyers away, leaving seized vehicles idle. Vehicles piled up in parking lots through last year as many transport firms voluntarily handed over their vehicles to lenders, claiming they were unable to repay loans because of a drop in business. In 2004-05, when manufacturing growth was robust, commercial vehicle makers saw a 22% growth in domestic demand, according to the Society of Indian Automobile Manufacturers, or Siam, a vehicle industry group. The brisk sales were notched up largely because the unorganized trucking business, which is riddled with middlemen, has very low entry barriers, said K.K. Sasidharan, chairman of the Chennai Goods Transport Association. It created overcapacity of trucks amid an acute shortage of drivers, he added. As industrial activity weakenedin March, factory output shrank 2.3%, the worst in 16 years, according to the Central Statistical Organization the transporters who expanded rapidly were stuck with excess capacity. Siam data for 2008-09 showed a sharp 22% decline in commercial vehicle sales to 384,122, the first drop in at least seven years. The resale value of large used trucks has collapsed in the face of excess supply. For instance, a year-old truck that would normally see a 15% annual depreciation was fetching just half its price, according to Bangalore-based agent Muhataram, who uses only one name, and helps finance companies find buyers for confiscated trucks. The overcrowded parking lots have also seen frequent thefts of spare parts and rising stockyard rental costs that, according to finance companies, range from a daily Rs50 to Rs100 per vehicle, as it took them longer to resell these vehicles. These circumstances forced them to relax their loan collection and confiscation norms in the past few months. Sriram Transport Finances agents would usually start pressuring customers with calls after a months delay in payments with repossession following on the 90th day. But since January, that time has doubled to 180 days and, in some cases, even longer, similar to Tata Motorfinances move. The irony is that the appeal attached with commercial vehicle financing has become its bane. The incentive in lending to truck buyers has been that confiscating a vehicle in the event of a default is easier than seizing other collaterals such as an apartment. Companies enter the vehicle financing business because of the comfort that the vehicles are hypothecated and one can repossess the vehicles on non-payment, said N.R. Narayanan, head of retail assets for ICICI Bank Ltd, Indias second largest lender. Repossessions need to be carried out in order to keep the system of financing in the right manner, setting the right precedents. http://www.livemint.com/2009/05/13215639/Lenders-delay-seizing-vehicles.html MARUTI SUZUKI OFFICIAL VISITS IIM CAMPUS The Hindu (Web & Print Edition) New Delhi: As part of a peer and industry interaction programme organised by Indian Institute of Management-Lucknow, Maruti Suzuki India Limited Managing Executive Officer (Supply Chain) S. Maitra visited its Noida campus over the weekend. He interacted with students of the present batch. http://www.hindu.com/2009/05/14/stories/2009051457030400.htm LABOUR COURT DIRECTS MAHINDRA UNION TO WITHDRAW STRIKE Tushar Pawar Business Standard (Web & Print Edition) See similar story in: The Times of India (Web Edition), Daily News & Analysis (Web Edition) Mumbai/ Nashik: Terming the strike an illegal, Nashiks Labour Court has directed the Mahindra Union to withdraw strike within next 48 hours. Hereupon, Mahindra union has decided to move Mumbai High Court. The company management had filed a plea in Nashiks Labour Court against the Union stating that the strike waged by Mahindra workers was illegal. Workers in Nashik plant of the automotive major Mahindra & Mahindra (M&M) had gone on indefinite tool down strike from 4th May 2009 in protest against the suspension of M&M (Internal) union president Madhav Dhatrak by the company management and companys delay to sign the salary agreement for the last 22 months. We have decided to move the High Court against the verdict of Nashik Labour Court, said Madhav Dhatrak, President, M&M Employees Union. In Nashik plant, M&M manufactures utility vehicles Xylo, Scorpio and Bolero. The company also manufactures sedan car Logan in joint venture with the French car maker Renault. The Nashik plant has 4,450 employees, including 2,750 permanent employees, 1,200 temporary employees and 500 apprentices. http://www.dnaindia.com/report.asp?newsid=1255829 PTI See this story in: The Tribune (Web Edition), The Indian Express (Web & Print Edition), The Telegraph (Web Edition), The Statesman (Web Edition), The Times of India (Web & Print Edition) New Delhi: India's top software exporter Tata Consultancy Services said it had bagged a five-year contract from Volkswagen Group UK Ltd to deliver IT transformation and support services to the vehicle manufacturer. However, the company has not revealed the financial details of the deal. According to the deal, TCS will leverage its global delivery network to provide onshore and offshore IT support and transformation services for the Volkswagen Group's operations throughout the UK and across the brands - Audi, SEAT, Skoda, Volkswagen passenger cars and Volkswagen Commercial vehicles, TCS said. Volkswagen Group UK is a wholly owned subsidiary of the Europe's largest vehicle manufacturer Volkswagen AG. TCS would support all brands within the group as they move to consolidate and standardise its business platform. http://www.tribuneindia.com/2009/20090514/biz.htm#9 http://www.indianexpress.com/news/tcs-gets-5yr-contract-from-volkswagen/458441/ http://www.hindu.com/2009/05/14/stories/2009051454121400.htm http://www.telegraphindia.com/1090514/jsp/business/story_10961955.jsp http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=254248 http://timesofindia.indiatimes.com/Business/India-Business/TCS-bags-5-yr-Volkswagen-deal/articleshow/4526969.cms | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTERVIEWS/FEATURES Go To Top Lets get one thing clear straight away about Suzukis new supermini. It aint going to be making waves as a Wagon R replacement which many of you thought was on the cards but then that is the good thing, both for Maruti Suzuki and also for the consumer who wants a more family-oriented large hatchback. Great for Maruti Suzuki because it allows the product planners to move the Wagon R into a newer perch and position in the market (think taxi or utility) and at the same time the firms premium hatchback portfolio gets enhanced. It is this portfolio enhancement which is pretty noteworthy because ever since the company began to pack in small minis after small minis with just marginal increments in space and equipment to swamp the majority of the A2 segment, the new Ritz is the familyoriented offering which joins the Swift in the premium hatch segment. And there is no doubt that where the Swift is the iconic personalized car for the sporty individual, the Ritz clearly is family-focused. The large hatchback segment is proliferating and Maruti Suzuki being the small car segment leader has cleverly engineered the Ritz to be bang on the money keeping in mind its likely rivals already on the market as well as those which it will have to deal with in the coming month! Already the Swift encounters competition in the form of the Hyundai i20 and the Skoda Fabia at the upper end of the spectrum while others like the brilliantly conceived Tata Indica Vista resides along side it. The Ritz is expected to be placed just around the Swift but with a choice of a brand new petrol motor and the same DDIS oil burner as in the Swift, this is the car which strengthens Maruti Suzukis hand when it would come to squaring off against the Hyundai i20 right now and the Honda Jazz plus the Fiat Grande Punto which are expected next month. The Ritz is not what this Suzuki is known as elsewhere in the world, Splash being the name given to what the Japanese firm terms it as a worldwide mini-wagon. I think that this is the single biggest detail which shows how far Suzuki has kept its Japanese styling idiosyncrasies in the deep freeze and adopted contemporary European design to pervade every bit of its thought process. It wasnt that the car had to also do duty as a badge-engineered Opel Agila in Europe, but clearly having a European-focused design and dynamic capability has helped the Japanese small car maker to keep the cash registers ticking. So what is the Ritz all about? It has good pedigree to start with, built on a slightly sliced Swift platform and with newer and optimized underpinnings for the family-mover application, this is a car which is very much in the tall boy mould without standing out as a bread box (for example the Wagon R). Take the style cues as well with more than a hint of a scaled down Mercedes A-class on to which has been morphed an Audi gaping mouth grille and suddenly you know that this couldnt be a Wagon R replacement. Take in the funky vertical rear tail lights, the massaged wheel arches, the pronounced waist crease plus the character crease linking the front and rear wheel arches and you get a car which is a damn sight better than any previous tall boy from any car maker! Having said that it is built on a chopped Swift floorpan, this means that the Ritz rides on a 2360mm wheelbase - 30mm shorter than the Swift, but interestingly is 20mm longer than the Swift at 3715mm. And, being a stylish tall boy, means that it tends to have a larger profile than the sporty Swift. What all this translates into is a car which has a more upright and comfy seating position with good space for four adults and excellent ingress and egress at the rear making it a breeze for kids and oldies. The good news continues with a funky interior, now almost a Suzuki stand point as we have come to expect from the Swift onwards and this time the dual tone upholstery is colour coded to the exterior paint shade. This dual tone approach also takes in the dashboard and the door-pads to provide a very funky yet pleasing ambience to the overall cabin. The trademark retro tachopod (honest that is Suzukis way of describing the stand apart rev counter) stands atop the dashboard while the most obvious form of instrumentation firmly in the drivers line of vision is the large speedometer with a digital odo and tell tale lights on its outer circumference clearly indicate Euro-thought. The clean uncluttered central console with its sweeping gait is impressive and the high mounted gear shifter make up the business end of the cockpit. If there is one clear detail which will help Maruti Suzuki in its fight in this newer and burgeoning segment of the Indian car market, it would have to be the twin engine options this car comes with. There is a brand new and very well engineered petrol engine which is BS IV compliant, displaces 1197cc (just right for the governments small car beneficial tax structure) from its four pots, is made of aluminium alloy, has double overhead cams working four valves per cylinder, an offset-crankshaft, drive-bywire throttle control and many other goodies to save both weight and friction. This translates into an engine delivering 83 PS at 6000rpm and 113Nm of torque at 4500rpm. Surely this is a powerplant much better than that which does duty in the petrol-engined Swift and it is but a matter of time before the ageing 1.3-litre unit from the Esteem saloon is consigned to history. The second engine option is of course the very same Fiat-inspired 1.3-litre DDIS unit which also powers the Swift and judging by the fact that the Ritz would be or ought to be placed and priced slightly lower than the Swift in the Suzuki portfolio, the oil burner option would enable its maker to not just outshine the i20 and the Fabia but also comfortably allow it to dictate terms to the Honda Jazz and the Fiat Grande Punto. Both engines are mated to 5-speed manual transmissions and I suspect that Suzuki probably lost a trick in the game by not offering an automatic transmission. The Ritz rides well given its firmly damped set-up. Sprinting to speed is easy and also has a hint of sportiness but this isnt a car which can be thrown into corners like the Swift. The car does have a tendency to display quite a degree of body roll given its soft compliant ride feel but even then it continues to deliver loads of grip from its 185/70 R14 tyres. The steering is precise but could do with a tad more feel but thanks to its nippy attributes it is a highly maneuverable lil number. The car will be launched nationwide tomorrow and it will be interesting to see whether Suzuki has got the pricing right. Remember that this isnt a model which it will be exporting, at least not in the large numbers as it does with the A-Star so expect this to be more Indiafocused to take on impending strong rivals expected to storm the large hatch party. Just as well because the Ritz could just be the most important cog to get the premium hatchback segment galloping. MARUTI SUZUKI RITZ: THE INDIAN FOCUS Sopan Sharma The Economic Times, Zigwheels To begin with, engineers from Maruti Suzuki worked at close quarters with their Japanese counterparts in the development of the Ritz, much like that for the AStar. Bits and pieces here and there come together to make the Ritz a fairly different car as compared to the international Splash. Small modifications on the exterior have been implemented keeping in mind the developing Indian tastes, including a redesigned rear bumper that accommodates reflectors and RR fog lamps. The heart of the car, which is the K12M engine, has been extensively tested, calibrated and tuned specifically for Indian conditions. Apart from this, a reworked gearbox uses gear ratios different from that of the Splash to match its driveability with Indian traffic conditions. Given that unlike in international markets, the rear bench is often used by three and not two adults, special emphasis has been given to the shoulder space and rear seat comfort - a redone seat profile included. To go with the same concept, the Ritz carries a redesigned central console that has also been provided to ease the ingress and egress for rear seat passengers. To take in the sometimes massive potholes in India, ground clearance of the Ritz is a good 30mm higher than that on the Splash. The suspension has been retuned for comfort as per Indian roads. A bigger and wider tyre has also been accommodated, along with the body redesigns needed for the same. While the Swift was lapped up all sorts of consumers for its allrounder abilities, it was essentially meant for the young and sporty crowd looking for a fabulous driving experience. The Ritz will be a more sensible car, with the focus lying on space, comfort and driveability. What will make the Ritz unique from the rest of Maruti Suzuki's portfolio is the K12M engine. Elder sibling of the earlier K10B engine that powers the peppy A-Star, the K12M carries the same fundamentals of light-weight and hence far lower levels of fuel consumption and NVH. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" YAMAHA R15: TRACK WEAPON GOES TOURING! Sopan Sharma & Priyadarshan Bawikar The Economic Times, Zigwheels Those who have experienced the prowess of the Yamaha R15 on the racetrack now know beyond doubt that it is one of the most sublime and stellar handlers we have here in India. Questions have been periodically raised about the relevance of such a focused machine on everyday streets and highways though, and with a view to rest these once and for all, Yamaha India had us go on a two-day long journey to the foothills of the Himalayas to ride and grasp the bike's abilities in extended real world conditions. On the crisp Tuesday morning when the ride around Nainital began, it was clear that the lightweight R15 would be on song in the tight and technical twisties. The bike allowed itself to be flicked with absolutely no trouble in the narrow switchbacks. It took us a little time to get used to the highrev powerband in the mountains though - initially and in the uphill, but as soon as we began to keep the revs well above 7000rpm, leaving corners behind was a pointand-shoot affair. What struck us with severity was how much this baby spoils you and your habits. Trail braking deep into corners, going over bumps leant over, whacking open the throttle without rolling on the gas gently - all moves that would've gotten us into a whole lot of trouble had we been on any other Indian bike. Like all bikes, the R15 came with its own set of shortcomings, especially on these tight and quick corners coupled with a fairly severe downhill. The ride position is not as demanding as it seems, especially when the rider learns to keep his weight on his legs - off the seat and off the arms - but under the hard braking in the downhill sections there was a bit of strain on the wrists. That being said, we have not seen corners like these anywhere but in the lower Himalayas, so if you're going to be riding anywhere else, there shouldn't be a problem. If your idea of touring is cruising at 80 km/h down open highways, there obviously are better options. The R15 however comes with its own unique set of attributes that make it a fabulous sport tourer. The riding position is not as extreme as it seems and can be modified easily to a more upright stance just by shifting closer to the tank, there is plenty of room for luggage on the long and flat seat, and the tank held our magnetic tank bag really well throughout the ride. It even takes bad roads exceptionally well. If anything, this ride brought out the versatile side of this track attacker. Even though the R15 thrilled us to the core on these insistent twisties, we think the FZ makes for a better bike in this territory. In our opinion, the R15 will be in its true element on some full-throttle, tucked-in highways with a liberal sprinkling of high speed corners thrown in. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" TVS SET FOR PREMIUM BIKE LAUNCH IN MAY Varad More The Economic Times, Zigwheels Hosur-based TVS Motor Company will be launching the new Apache 180 RTR Menace sometime this month. The new bike will have a larger engine than the existing model and it will also be up on power to fight with its rivals in the premium segment. The exterior will remain identical to the Apache RTR 160 with minor design changes but the new bike will pack in more homegrown technology. TVS Motor has been actively involved in road racing and motocross racing in India. The company has always incorporated technologies developed under years of racing onto their final commercial production models. The Apache RTR160 was an instant hit amongst the masses due to its revvy engine and crisp power delivery. The Apache RTR 160 was also the first TVS product to feature technologies like fuel injection and rear disc brake. The company is hoping that the new powerful variant will capitalize on its younger sibling's market value and set the cash registers ringing for TVS. The new bike will be TVS Motor's flagship product as it will be the highest capacity motorcycle in their existing product range. With the premium segment slowly yet steadily noticing an increasing demand in the Indian market, all the Indian twowheeler giants are readying up to launch a strong contender in this segment. It remains to be seen just how the market shapes up and who wins the performance battle. But we love this competition as it only gets better for the Indian biker. Copyright 2009, Bennett, Coleman & Co. Ltd. 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| CARS, SUVs, MUVs Go To Top Swaraj Baggonkar & Danny Goodman Business Standard (Web & Print Edition) Mumbai/New Delhi: As Maruti Suzuki, Indias leading car manufacturer, readies for the launch of its Ritz hatchback, its second launch in less than six months, other companies are also gearing up to challenge the make with their flashy and stylish hatchbacks. The premium compact car segment, classified as above Rs 4.5 lakh, will be abuzz over the next year with launches expected from almost all other car makers Hyundai Motors, Honda Siel Cars (HSCI), Toyota Kirloskar, Fiat Auto, Volkswagen India and Ford India too. The Ritz, which Maruti will launch on Friday, will have a new K12M, 1.2 litre petrol engine, claimed to be more fuel efficient while being low on emission. It will also be the first car on Indian roads to have an engine that is compliant with the BS-IV emission norms. It will be Marutis eighth small car and is expected to be priced at about Rs 4.5-5 lakh, although the company has been secretive on this. Honda will follow with the launch of the Jazz around June. Because Jazz shares its platform with its stylish but bigger cousin, the City, company officials say it will be priced just a bit below the latter, making it Indias most expensive hatchback. Jnaneswar Sen, senior V-P (marketing), HSCI, said: In international markets, the Honda Jazz is priced more than the Honda City. However, due to the benefit of excise duty structure in India, expect the Jazz to be priced slightly lower than the City. Smaller cars attract less duty in India. The City carries a price tag of Rs 8.25 lakh (ex-showroom, Mumbai). Italian car maker Fiat will proceed with the introduction of the much-awaited Grande Punto a few weeks later. This car will be Fiats second offering in the compact segment, after the Palio, but will be priced higher than it. Rajeev Kapoor, president and CEO, Fiat India Automobiles, said, The B+ (premium compact) segment is growing at a much faster rate than others. This segment will see the most action and we as a company see great opportunity there. We want to become a volume player with this car. This segment will be further explored by Hyundai Motors India (HMIL) when it launches the diesel version of the i20 by the end of the year. The company already has three compact cars Santro, i10 and the Getz in the market. HMIL had initially planned to sell about 1,000 units of the i20 in India every month but the demand has surged to almost double that. Hyundai is expecting a further increase in demand with the introduction of a diesel engine. Market sources say German carmaker Volkswagen is planning to advance the launch of the Polo hatchback to the end of this calendar year from the earlier announced date of early 2010. Though the companys dealers are not informed about the likely price tag, the car is planned to meet a scheduled launch of December 2009, they say. However, there was no confirmation from the company. Ford Motor Company of the US will also bring its hatchback to India in early 2010. The vehicle, which is expected to be an upper-B segment car, will be pitted against the models of Maruti, Hyundai and Tata Motors with high localisation content. The compact car will come in both petrol and diesel options. Such expensive compact cars are continually sold in high numbers in most markets of the west but manufacturers are confident of attracting respectable numbers in India, too, despite the price tag (see table). Experts say the increased focus by car makers on the premium compact segment was expected as the transition to small but premium cars has already started in most developed auto markets. Indian consumers, mostly in metropolitan cities, are shifting to the premium compact segment from the entry mid-sized sedan segment. These cars, which carry a price tag of Rs 4.5-7 lakh, offer better style, power, comfort and drivability than mid-sized cars, said a city-based analyst. http://www.business-standard.com/india/news/an-avalanchepremium-compact-cars-this-year/358055/ COMPETITION HOTS UP IN PREMIUM COMPACT CAR SEGMENT Priyanka Vyas The Hindu Business Line (Web & Print Edition) New Delhi: Thanks to rising income and increasing quality consciousness among urban youth, car-makers are planning to increase their output of premium compact cars. This will intensify competition in the segment. Existing compact car makers like Maruti Suzuki and Hyundai are tilting towards the upper end of the compact car segment, priced at Rs 4 lakh plus. Some of the newer entrants are also all set to woo this segment. Maruti Suzuki recently launched model A-star and its upcoming model Ritz will be positioned in the premium compact car segment. Even the new models like Hondas Jazz set to be launched next month, Volkwagens upcoming compact car on the Polo platform and Toyotas new model are likely to cater to this segment. The existing models in this segment include Swift, Getz, i-20, Skoda Fabia among others. The Maruti Suzuki Managing Director and CEO, Mr S. Nakanishi, said that with growing incomes and changing lifestyles, it will focus on more stylish models with loaded features. The companys Executive Officer, Marketing, Mr Mayank Pareek, said that, We have three models-Alto, Zen and Wagon R - in the lower end and Swift, A-star and Ritz in the premium compact car category. Many of the consumers upgrade to the upper A2 segment or a sedan. To that extent we see the segment growing. The A2 segment that consists of compact cars is defined with a length of 3401-4000 mm, according to SIAM classification. Sales of compact cars in the country are estimated to be in the range of 70,000-80,000 units monthly. Within this, the share of the premium compact car segment is 17 per cent. According to Mr Jnaneswar Sen, Vice-President, Marketing, Honda Siel Cars India, There is a potential for this segment to grow in the future especially in the urban areas. While the current market size is small, as more players enter the segment, it will expand the pie, feels Mr Arvind Saxena, Senior Vice-President, Sales and Marketing, Hyundai. http://www.thehindubusinessline.com/2009/05/14/stories/2009051451770200.htm CARMAKERS BETTING ON PREMIUM SPORTS UTILITY VEHICLES Pranav Nambiar Daily News & Analysis (Web Edition) Bangalore: Gas-guzzlers they may be, but the appetite for premium SUVs in India is pretty high and international auto biggies are eyeing the segment more aggressively. "Premium SUVs are still a relatively new concept in India. The market is still very niche. But buyers are warming up to the concept," said Amish Shah, an auto analyst from Antique Broking. India sold 11,000 premium SUVs in 2008, a jump of 38% over the previous year, though most of the growth came in the first half. Most of these cars are imported fully-built or in the knocked down version. Carmakers are betting on new launches and upgrades to maintain buyer interest. "The lifestyle vehicle segment has been growing steadily over the last few years. I expect about 16,000 premium SUVs to be sold in India this year on the back of better economic sentiment and growing affluence," said P Balendran, VP corporate affairs, General Motors India. Ashutosh Dixit, general manager - sales, Skoda Auto India, said a company study revealed that most of the 9-10 premium SUV models in the country are over-priced or too bulky. "These factors will be kept in mind while we launch our Skoda Yeti SUV next year," he said. Some carmakers say there is a case for striving to convert buyers of mid-sized sedans to upgrade to premium SUVs. Toyota will launch its new SUV, called Fortuner, which will be imported in a knocked-down version. It is hoping to price the vehicle at Rs 18-20 lakh with more localisation. "Premium SUVs are generally used for inter-city pleasure drive rather than pure commuting. With the roads in the country developing fast, SUVs will be in huge demand going ahead," said Shekar Vishwanathan, deputy managing director, commercial, Toyota India. Some of the other premium SUV launches include - Audi's Q3 SUV, Hyundai's Santa Fe, Volvo's XC90 SUV, Porsche Cayenne, Nissan's X Trail and BMW's X6. According to Nigel Wark, executive director, marketing, sales & services, Ford India, international players will never be able to compete in the entry-level mass SUV segment against local players. The Ford Endeavour has a localisation level of only 20%. Currently, the premium SUV market is dominated by Ford (29%), GM (26%) and Honda (20%). The price levels of these cars are upwards of Rs 15 lakh and can extend up to close to Rs 1 crore. http://www.dnaindia.com/report.asp?newsid=1255834 MARUTI PLOTS CNG ROADMAP WITH RELIANCE, GAIL Manu P. Toms The Hindu Business Line (Web & Print Edition) Mumbai: Reliance Industries natural gas discovery from the D6 block of the Krishna-Godavari basin has been the best piece of news to the automotive industry. Car-makers are now gearing up to launch more CNG (compressed natural gas) models in the short-term. Thanks to RILs find which will help create a stronger retail network, we feel natural gas may be a better option for us, Mr I.V. Rao, Managing Executive Officer, Engineering, Maruti-Suzuki, said. The company has begun talks with RIL and gas marketer GAIL (India) on the availability of natural gas and the possibilities of more fuel stations. From our discussions, we understand that gas availability will be up 70-80 per cent in all major cities. Right now, its supply is confined largely to Delhi, Mumbai, Surat and handful of other cities. By 2010, the reach will be much higher and I hope it will encompass 40 cities at least, he said. According to Mr Rao, gas from the KG basin would travel by a pipeline to Bombay High which meant that Andhra Pradesh, Karnataka and Maharashtra would be covered in the process. GAIL is also planning its own network across various States, he said. Keen on CNG model Maruti plans to develop at least one CNG model that is BS IV-compliant in every segment it operates. With new emission norms due to be in place by 2010, the company is working on advanced bio-fuel engines (petrol and CNG) with injection systems. Developing a CNG engine that meets BS-IV regulations will take about 18 months. What we have in mind is an integrated system which can be assembled on the same production line, Mr Rao said. Currently, no automaker offers factory-fitted CNG vehicles though almost all of them are looking at alternative fuel options, which also includes liquefied petroleum gas (LPG) aggressively. Focus on infrastructure The recurring problem from the oil industrys point of view is getting the infrastructure in place. In Mumbai, for instance, extending CNG to suburbs beyond the city was a huge challenge for Mahanagar Gas because of the citys linear structure coupled with limited space. Delhi remains a successful case study for CNG though it required legislation to make it mandatory. The following months could see some strides in LPG too, and indications are that RILs petrol pumps, which are gradually reviving operations, could fulfil this need. Mr Rao reiterates that there is a huge market for CNG-run vehicles which will grow so long as it is available. A beginning has been made with RILs D6 discoveries. The next step is to keep the momentum going. http://www.thehindubusinessline.com/2009/05/14/stories/2009051450330300.htm The Tribune (Web Edition) See similar story in: The Telegraph (Web Edition), The Statesman (Web Edition), The Economic Times (Delhi Print Edition), Business Standard (Delhi Print Edition) Hindustan Motors has said its net loss during the fourth quarter ended March 31 stood at Rs 25.28 crore, while it had a net profit of Rs 10.95 crore in the corresponding period a year ago. Net sales of the company fell to Rs 127.94 crore during the March quarter of FY'09, from Rs 185.01 crore in the same quarter previous fiscal, Hindustan Motors said. For the financial year ended March 31, the company posted a net loss of Rs 38.86 crore, while it had a net profit of Rs 30.84 crore during FY'08. Net sales of Hindustan Motors during the FY'09 declined to Rs 591.18 crore, from Rs 662.11 crore in the previous fiscal. http://www.tribuneindia.com/2009/20090514/biz.htm#11 http://www.telegraphindia.com/1090514/jsp/business/story_10961460.jsp http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=254248 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| COMMERCIAL VEHICLES Go To Top Danny Goodman Business Standard (Web & Print Edition) New Delhi: For years, Ashok Leyland and Tata Motors have ruled the 16.6 tonne-plus medium and heavy commercial vehicle (CV) market. With a market share of over 90 per cent, they sold over 78,000 vehicles last year. But Mahindra & Mahindra, the countrys second-largest CV company by sales, is set to challenge their domination by offering trucks with capacities ranging from 16 tonnes to 44 tonnes by the end of this year. These large CVs will be manufactured by its joint venture company, Mahindra Navistar Automotive Ltd (MNAL), which was set up in 2005. Mahindra holds 51 in the JV. Navistar International Corporation is one of North Americas largest CV makers. We will launch in the 16-44 tonne category in the fourth quarter of 2009. There will be more models in this segment, said Pawan Goenka, president, Automotive Sector, Mahindra & Mahindra (M&M). The planned yearly capacity is 50,000 units. Goenka said the company would also launch its below-one-tonne truck, a segment dominated by Tata Motors Ace, around the fourth quarter of this year. The company will roll out this vehicle independently. This 16-44 tonne segment is divided into two segments, rigid vehicles and tractors/trailers. M&M will make both. The medium-large CV market has, however, witnessed a major downturn due to the current slowdown. For the year ended March 2009, sales of rigid vehicles in the 16-tonne and above capacity dipped by 38 per cent, while those in the tractor trailer segment fell by 60 per cent. Since larger CVs are dependent on many sectors like infrastructure, mining, exports and construction, a slowdown in these has had a direct impact on sales. However, we see a demand pick-up in the second half of this year, says Rajive Saharia, executive director (Marketing), Ashok Leyland. Industry analysts say the timing is right for Mahindras entry as the launch will happen just as the demand is expected to pick up. Mahindra Navistars entry will make it the seventh company in this segment. Apart from the big two, there are Eicher Motors, Asia Motor Works, Volvo India, Tatra Vectra Motors and Mercedes Benz. Vaishali Jajoo, analyst at Angel Broking, says it will take a full year or more for the combine to establish its dealership network and to take on established players like Tata Motors. Jajoo adds: Since the recovery in sales of heavy and medium CVs is expected in the second half of 2009, the M&M launch is at the right time. Saharia says the buyers of these large vehicles are established players who operate a fleet of more than five vehicles each. Currently, theres overcapacity. Once economic activities revive, the demand will pick up. In 2007, Mahindra signed a second JV with Navistar to manufacture diesel engines for CVs. The joint venture, called Mahindra Navistar Engines Ltd, also has 51 per cent equity participation by M&M. The 16-40 tonne vehicles will be manufactured at the companys Chakan facility near Pune. ACTIS MAY NOT SUBSCRIBE TO SWARAJ MAZDAS RIGHTS ISSUE Lijee Philip & Rahul Kumar The Economic Times (Web & Print Edition) Mumbai/Chandigarh: Private equity fund Actis, one of the key shareholders with an 18% stake in light commercial vehicle major Swaraj Mazda (SML), is understood to have taken a decision to refrain from participating in the companys forthcoming rights issue, a decision which will result in Japanese trading giant Sumitomo becoming a dominant shareholder in the company post the issue. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved" LOW-FLOOR BUSES: GOVT DELAY EARNS MINISTRY WARNING New Delhi: Taking strong exception to non-submission of bus purchase order by the Delhi Government, the Ministry of Urban Development is reported to have threatened to cancel the bus funding grant under a scheme. http://www.dailypioneer.com/176087/Low-floor-buses-Govt-delay-earns-Ministry-warning.html | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CONSTRUCTION & AGRI MACHINERY Go To Top | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2/3 WHEELERS Go To Top Reuters See this story in: The Economic Times London: Most motorcyclists are happy enough to go green, except when it comes to the bikes they ride. Pollution-free electric scooters and bicycles have been available for a while but nothing on the market so far has come close to providing what bikers would regard as a ride with the style and performance they crave. http://economictimes.indiatimes.com/News/News-By-Industry/Auto/New-electric- NEW PULSAR VARIANTS FROM BAJAJ AUTO The Hindu Chennai: Bajaj Auto has introduced an exciting new 2009 Pulsar 150 DTS-i and 180 DTS-i with sportier styling in the premium segment. The Pulsar 180 DTS-i now comes with a more powerful engine and a 5-speed toe-gear shifter. Bajaj Pulsar 150 DTS-i comes with an all black engine and alloy wheels and attractive tank spoilers. The new 2009 Pulsar range series 150 DTS-i is priced around Rs 59,000 and 180 DTS-i Rs. 63.000 ex showroom. http://www.hindu.com/2009/05/14/stories/2009051454251400.htm | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| COMPONENTS Go To Top | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ALLIED INDUSTRY Go To Top TE Narasimhan Business Standard See similar story in: The Hindu Business Line Arakaonam: The MRF Arakkonam Workers Welfare Union (AWWU), which is stated to be pro management, filed a Criminal Original Petition at the Madras High Court on Tuesday, alleging that the MRF United Workers Union (MUWU) has illegally confined AWWU representatives within the factory. MUWU members continued their sit-in-strike, while their families protested in front of the factory. The workers aslo boycotted the Lok Sabha polls. MUWU workers claimed they have over 30,000 votes at Arakaonam. The union is demanding reinstatement of dismissed workers following unionisation, recognition of the union by the company and wage revision. Court representatives, labour department offcials and senior police officials visited the factory in the wee hours of Wednesday to assess the situation on the direction of the Madras High Court. Rama Prabha, an advocate representing MUWU, told Business Standard that the petition came for hearing late evening on Tuesday at the Madras High Court. Justice C T Selvam ordered the advocate commissioner, deputy commissioner of labour department and the deputy commissioner of police to visit the factory and to make an announcement that whoever wanted to leave the premises can do so without fear and that they will get police protection. TV Paramasivam, president, MUWU, said that officials came to the Arakkonam factory at 2.45 am on Wednesday morning and made the announcement. They also advised the workers to resume work. However, according to Paramasivam, nobody has come forward to leave the sit-in-site. http://www.business-standard.com/india/news/mrf-strike-issues-reaches-madras-hc/358048/ http://www.thehindubusinessline.com/blnus/02131806.htm MRF WORKERS BOYCOTT POLLS, CONTINUE STRIKE The Economic Times Chennai: Labour activism has again reared its head in Tamil Nadu. Less than a week after the Hyundai strike was called off in Chennai, its now tyre-maker MRF facing the heat. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://economictimes.indiatimes.com/News/News-By-Industry/Auto/Tyres/MRF-workers-boycott-polls-continue-strike/articleshow/4526223.cms | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FINANCE & INSURANCE Go To Top Business Standard Chennai: Chennai-based commercial vehicle financier Shriram Transport Finance Company will raise Rs 1,000 crore through a secured, redeemable non-convertible debenture (NCD) issue. The company is also planning to set up a subsidiary for equipment finance with a proposed capital of around Rs 150 crore. R Sridhar, managing director, Shriram Transport Finance, said that the new company would start operations in the next three months from 470 locations across the country. Sridhar said the company would cater to small and medium contractors in the construction industry before diversifying into other segments. He noted that both used and new equipments will be provided finance. Meanwhile, the company, which is a part of the Chennai-based Shriram group, has reported a 35.67 per cent growth in its net profit in the quarter ended March 31, 2009 at Rs 153.8 crore, compared with Rs 111.8 crore during the same quarter last year. Total income for the quarter stood at Rs 995 crore as against Rs 768 crore in the corresponding quarter last year, while the total expenditure stood at Rs 242.7 crore as against Rs 208.7 crore in the same quarter last year. The companys board has recommended a dividend of Rs 4 per equity share for the financial year 2008-09, which is in addition to the interim dividend of Re 1 per equity share already paid. Sridhar said gross non-performing loans (NPLs) increased to 2.14 per cent, compared with 1.74 per cent in September because of market conditions. However, he felt things would improve as the increase in NPLs was only marginal. Sridhar said 85 per cent of the companys loans were to the small truck owners who operate in the rural and semi-urban areas. This segment had not been impacted as much as the medium and big truck segment. Asked whether this was a high risk area, Sridhar said small truck owners paid 30-40 per cent of the money upfront and hence the default rates were generally low. Around 60-70 per cent of the customers paid on time and the balance took six more months than their schedule. SHRIRAM TRANSPORT FINANCE Q4 NET UP 37% The Hindu Business Line See similar story in: The Hindu, Asian Age, Business Standard Chennai: Shriram Transport Finance Company has reported net profit of Rs 154 crore for the fourth quarter of 2008-09, which is 37 per cent higher than in the comparable quarter of last year (Rs 112 crore). For the full year 2008-09, it reported net profit of Rs 612.40 crore compared with Rs 389.82 crore, a rise of 57 per cent. The company's board of directors has recommended a final dividend of Rs 4 a share, taking the total dividend for the year to Rs 5 a share. Total assets under management as on March, 31, 2009 increased by 19.26 per cent to Rs 23,278 crore compared with Rs 19,520 crore at the end of March, 2008. Of this, the company has around Rs 18,000 crore of assets on its books; the rest have been securitised off. The Managing Director of Shriram Transport, Mr R. Sridhar, said that disbursements last year were Rs 11,500 crore. "Ours is an insulated business model," Mr Sridhar told Business Line, observing that 70 per cent of its book and 85 per cent of last year's disbursements are loans given for the purchase of used trucks. This segment has not been affected by the economic slowdown, he said. The company has also disclosed its intention to raise up to Rs 1,000 crore by issue of non-convertible redeemable debentures. It would like to have a "diversified liability basket". Entry into equipment finance Shriram Transport had earlier signed an MoU with GE Capital for forming a joint venture for equipment finance business. But now, with GE taking stock of its global businesses, there has been some delay in activating the joint venture. Not to be left waiting, Shriram Transport has decided to get into the business on its own and has incorporated a company, Shriram Equipment Finance Company Ltd. At present, Shriram Equipment is wholly- owned by Shriram Transport. This company will be up and running in 3-4 months, Mr Sridhar said. In the current year, Shriram Transport expects to grow by 25 per cent. It expects to have Rs 30,000 crore of assets under its management by March 2010. http://www.thehindubusinessline.com/2009/05/14/stories/2009051452120600.htm http://www.hindu.com/2009/05/14/stories/2009051454281400.htm http://www.asianage.com/presentation/leftnavigation/news/business/stfc-to-set-up-new-unit.aspx http://www.business-standard.com/india/news/shriram-transport-risesq4-results/357999/ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LUBRICANTS & ALTERNATIVE FUELS Go To Top Ajay Modi Business Standard See similar story in: The Times of India, The Hindu Business Line New Delhi: The recent surge in crude oil prices will not impact retail prices in the near future because the government says the price is still within its comfort zone. This is despite the fact that retail margins on all the four subsidised petroleum products petrol, diesel, kerosene and LPG are set to turn negative again in June. There is no cause for worry. Oil prices move both ways upward and downward. We have weathered a price as high as $147 last year and so todays situation is comfortable, said R S Pandey, secretary, Ministry of Petroleum and Natural Gas. International crude oil prices crossed the $60 a barrel mark yesterday up from a record low of $32.40 in December last year on the back of improved sentiment over the economic recovery, especially in China and Europe. The Indian basket of crude has averaged $55.75 a barrel in May so far, up 11 per cent from the April average. When compared to the March average of $46.02, price is up by over 20 per cent. These prices are, however, much lower than the average price of $83.57 a barrel for the Indian basket during the previous year, which led to under-recoveries of Rs 103,908 crore for the three government-owned oil marketing companies Indian Oil, Hindustan Petroleum and Bharat Petroleum. The huge under-recoveries were the result of negative margins on all the four subsidised products and are usually compensated by oil bonds issued by the government and discounts from upstream oil companies. The under-recoveries estimated at a record Rs 103,908 crore for last year, is certain to be much lower this fiscal, given the drop in crude oil prices from last year's peak. The government-owned oil marketing companies are also shrugging off the increase for now. "So long as prices are in range of $50 to $60 a barrel, there is not much cause for concern," said a senior official of Indian Oil Corporation, the country's largest oil marketer and refiner. The marketing companies are currently incurring losses on the sale of petrol (Rs 1.54 a litre), kerosene (Rs 11.80 a litre) and LPG cylinders (Rs 88 per cylinder) according to the data available for the current fortnight. It is only diesel that is bringing positive margins of Rs 1.09 a litre. The recent price surge means that diesel, which accounts for the bulk of fuel consumption, will also fall into the negative territory. If the current crude oil price is sustained, there will be more under-recoveries. Diesel, which has remained in the positive territory for nearly six months now, is certain to turn negative in the first fortnight of June, said Niraj Mansingka of Edelweiss Securities. Even private companies like Reliance Industries and Essar Oil, which restored retail operations when prices came down to $35-36 a barrel in December last year, are now feeling the pinch. Petrol margins turned negative from second half of April. With the continuous surge, even diesel margins are under pressure, said an Essar Oil spokesperson. The company operates 1,200 retail fuel outlets. http://www.thehindubusinessline.com/blnus/08131091.htm | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTERNATIONAL NEWS Go To Top Reuters See this story in: The Economic Times Detroit: General Motors Corp and Chrysler aim to drop as many as 3,000 US dealers and are expected to begin sending notifications as early as Thursday, three people briefed on the still developing plans said. GM PLANS CHINA-MADE VEHICLES FOR US MARKET CHRYSLER DEAL BARS STRIKES FOR 6 YEARS Bloomberg The Economic Times Southfield, Michigan: Chrysler LLC, seeking to sell most of its assets out of bankruptcy to a new company run by Fiat SpA, wont have to contend with a strike by the United Auto Workers until at least 2015. DAIMLER TO CUT 2,300 JOBS AT JAPANESE UNIT See this story in: The Hindu Business Line
AUDI EXPECTS TO REPORT PROFITS DESPITE INDUSTRY CRISIS See this story in: The Hindu Business Line
In this crisis year, the luxury carmaker was on track to achieve a significant positive result, the Audi Chief Executive, Mr Rupert Stadler, told employees at the firms annual general meeting in Germanys Neckarsulm. RENAULT FOLLOWS FERRARI IN F1 PULLOUT THREAT AP/ PTI See this story in: Business Standard London: Renault is following Ferrari in threatening to withdraw from next season's Formula One world championship because of the budget cap imposed by the sport's governing body. Renault said it is frustrated that FIA adopted the new regulations while ignoring alternative plans proposed by the teams. Like Ferrari a day earlier, Renault said it will only take part in the 2010 championship if FIA revokes the new regulations. FIA president Max Mosley is leading the FIA's push to curb costs, with a voluntary 40 million pound (euro 45 million; $60 million) budget cap being made available to teams. But big teams fear the rules will effectively split F1 into two tiers, those that can live with the cap and enjoy the technical advantages and those that can't. "Renault has always considered Formula One as the pinnacle of motor sport and the perfect stage to demonstrate technical excellence," Renault F1 team president Bernard Rey said in a statement. "We remain committed to the sport. "However, we cannot be involved in a championship operating with different sets of rules and, if such rules are put into effect, we will be forced to pull out at the end of this season." http://www.business-standard.com/india/news/renault-follows-ferrari-in-f1-pullout-threat/61512/on | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ECONOMY & FINANCE Go To Top The Hindu Business Line Mumbai: The rupee fell by around 38 paise against the dollar on Wednesday tracking the domestic equity indices and as investors bought dollars ahead of the election results to cover their positions. The rupee opened stronger at 49.25 and strengthened to touch an intra-day high of 49.71. It closed at of 49.69, against the previous close of 49.31. The rupee lost most of its gains in the last two hours of trade as importers were buying dollars to cover their positions ahead of the el ection results, said a dealer with a private bank. In the overseas markets, the dollar strengthened marginally against the pound and the euro but weakened against the yen. In the forward premia market, the six-month premium closed marginally higher at 2.85 per cent (2. 80 per cent) and the one-year closed at 2.35 per cent (2.28 per cent). http://www.thehindubusinessline.com/2009/05/14/stories/2009051452020600.htm SENSEX FALLS ON POLITICAL UNCERTAINTY PTI See this story in: The Hindu Business Line Mumbai: Metals and IT stocks pulled down the Bombay Stock Exchange Sensex by 138 points, amid rising uncertainty on the outcome of the Lok Sabha elections. The Sensex, after a good start, fell to end with a hefty loss of 138.38 points at 12,019.65. It moved between 11,934.44 and 12,256.43 points, coming in and out of the green frequently. The 50-share National Stock Exchange index Nifty moved between 3,610.20 and 3,709.60, before ending with a loss of 45.85 points at 3,635.25. All the sectoral indices except consumer durables recorded losses in varying measures. The metals and IT sectors suffered the most. Market players adopted a cautious approach, brokers said, adding that some brokers booked profits on every surge. Reliance Industries fell 1.04 per cent, Infosys Technologies 1.51 per cent and ICICI Bank 1.61 per cent. All the three together carry nearly 32 per cent weight in the Sensex. The metal index suffered the most, losing 2.07 per cent to 7,812.99, as Sensex-heavy Tata Steel, Sterlite Industries, SAIL and Ispat Industries lost heavily. The IT sector was the second-worst performer and lost 1.56 per cent to 2,792.64 with Infosys Technologies, Wipro, Tata Consultancy Services and HCL Techno falling sharply. http://www.thehindubusinessline.com/blnus/05131901.htm AUTO COS CAUTIOUS, BUT IT, REALTY, BANKING HOPEFUL The Economic Times With sales of cars and two wheelers rising significantly in the past few months, one would assume that the bulk of the automobile sector, barring commercial vehicle makers, would be finally breathing a sigh of relief. But no, the sector remains on guard still, with all three auto makers that constitute the BSEs 30-share Sensex, including Indias biggest car maker Maruti Suzuki, telling an ET poll of CEOs that the economy was still to see off the slowdown. The CEO of Hero Honda, Indias biggest two-wheeler maker but not a member of the BSE-30, also held the same view. However, surprisingly, Indias top three IT companies TCS, Infosys and Wipro, which have been hard hit by the recession in core western markets and are increasingly looking inwards, believe that the Indian economy has turned the page on the slowdown. Interestingly, the realty firms feel that way too. Asked for a simple Yes or No response to the Have we seen off the economic slowdown? question, chiefs of DLF and Jaiprakash Associates also said they believed that we had, although the sector is yet to signal any signs of an imminent recovery despite lending rates coming down. The banking sector too feels that way. The countrys top two private banks, ICICI Bank and HDFC Bank are convinced that the worst is behind us, echoing the view of Indias biggest bank. OP Bhatt, chairman of State Bank of India, said last week that with auto and housing loans picking up, the worst was over. SBI is not alone in feeling this way. The chief of Indias biggest mortgage lender HDFC, Deepak Parekh, answered the ET poll with an emphatic Yes when asked if the country has seen off the slowdown. Most state-run companies too sided with the banks and the IT sector. Heavy equipment maker BHEL, Indias biggest thermal power generator NTPC and steel major SAIL, all told the ET CEO poll that the inflection point had been reached. Three out of the four manufacturing majors polled too said things are only going to be better from here on, although a smattering of Sensex constituents continue to believe that the optimism was premature. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" Last Financial closing
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