|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INDUSTRY Maruti to unveil hybrid car during Games, looks for tech partners M&M signs wage pact for Igatpuri plant M&M may move production of key models out of Nashik 'We might move production out of Nashik if situation continues': M& M Hero Honda to replace Ranbaxy in Sensex INTERVIEWS/FEATURES 'We aim at expanding the product portfolio in India': Paul De Voijs, MD, Volvo Car India CARS, SUVs, MUVs Maruti boosts compact car portfolio with Ritz Maruti takes a Ritzy risk, pits new launch against Swift-selling model Maruti to make all its products BS-IV compliant Maruti Ritz is here at Rs 3.90 lakh! Tatas, M&M, Maruti join hands for hybrid models Audi targets 55% sales growth in India this year COMMERCIAL VEHICLES Ashok Leyland-Nissan JV to be delayed CONSTRUCTION & AGRI MACHINERY 2/3 WHEELERS BSA Motors eyes 18-20% eBike market share LML launches new version of NV brand scooter | ALLIED INDUSTRIES INTERNATIONAL NEWS GM dealers expect word on plans to cut 1,100 shops GM to shut down 1,600 dealerships Opel requires $1.4bn in bridge loans to survive Honda CEO says 2009/10 is floor for earnings Ford looks to 2011 for moving into profitability BMW CEO says cooperation integral, rejects mergers ECONOMY & FINANCE Sensex rises 300 points on the eve of election results
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INDUSTRY Go To Top PTI New Delhi: Just a day ahead of the announcement of results of the Lok Sabha elections, car market leader Maruti Suzuki India on Friday said it expects the new government to continue to support the slump-hit auto industry.
The Financial Express (Web & Print Edition) New Delhi: Maruti Suzuki India, the country's largest passenger car manufacturer, will soon unveil its hybrid car in the country during the upcoming Commonwealth Games next year. Indian government has put in money for developing hybrid vehicles through the National Hybrid Project and we have also joined that process. Our team is working on hybrid cars and we will demonstrate the first hybrid vehicle in the Commonwealth Games in 2010," Shinzo Nakanishi, managing director and CEO of Maruti Suzuki India (MSI) said. Suzuki is already working on hybrid cars in its R&D centre in Japan and once the product is ready, the company will consider bringing it to India, he added. Each manufacturer has to demonstrate 10 hybrid vehicles, which will be used for ferrying the players during the games. We are also developing hybrid vehicles for the same, said CV Raman, chief general manager (engineering, research, design & development)of Maruti Suzuki India. It is a partnership programme, where government will bear 50% of the development cost, while rest will be spent by individual companies, Nakanishi said. While Raman refused to divulge investment details, it is estimated that development of each vehicle could cost around Rs 10 crore to Rs 12 crore. According to IV Rao, Maruti Suzuki India managing executive officer (engineering), the company is at present scouting technology partners for the motor, battery, controller and transmission of the proposed hybrid vehicles. The company, on Friday, launched Suzukis fifth global car, the Ritz, in India. The car, which is build on the Swift platform, is available in three petrol and two diesel variants and is priced between Rs 3.90 lakh and Rs 4.99 lakh. Ritz is Suzuki's fifth global model and it will be the first Bharat Stage-IV emission norms compliant car in India, says Nakanishi. According to him, since the new small car has been developed on the existing hatch-back Swifts platform and has localisation of up to 85%, the company has managed to keep its cost competitive.The company also showcased its first brand centre in the country in Delhi on Friday and plans to set up more in cities like Bombay and Bangalore to showcase all Suzuki products. M&M SIGNS WAGE PACT FOR IGATPURI PLANT The Hindu Business Line (Web & Print Edition) See similar story in: The Economic Times (Web Edition), The Financial Express (Web Edition) Mumbai: Mahindra & Mahindra (M&M) has signed a wage settlement agreement with the labour union of its Igatpuri plant, even as the strike at its Nashik unit continues. The automotive major has entered into a long-term wage agreement with the Bhartiya Kamgar Sena Union (BKS) which represents workmen of the Igatpuri plant, said a company statement. This agreement will be valid for three-and-a-half years . M&M produces automotive engines at this plant. Mr Suryakant Mahadik, President, BKS, represented the workmen while Mr Vijay Dhongde, Senior Vice-President, Manufacturing Operations, acted on behalf of the management. Strike at Nashik plant Meanwhile, the tool down strike in M&Ms Nashik plant which started on May 5 still continues. It is here that the Bolero, Xylo, Scorpio and the Logan sedan are made. According to the company, the strike triggered by the disciplinary action against the employee union leader is illegal and unjustified as it started without prior notification. The employee union of the Nashik plant is not under the control of BKS and we could not intervene in the matter. We urge the workers to end the strike given the current recession, said Mr Mahadik. Strike illegal The Nashik Industrial Court on Thursday had declared the strike as illegal and directed employees to resume work in 48 hours. However, the workers decided to appeal against this order in the High Court. The company has refuted the unions claim that the unsettled wage issues have led to the strike. A section of M&Ms dealers believe that the strike may impact delivery schedule of vehicles, particularly the Xylo, which has been getting a good response from customers. Production has been affected for the last 8-9 days but we have an inventory pipeline. We have a court order asking the workmen to end the strike and we hope they adhere to it, said Mr Rajesh Jejuriker, Chief of Operations, Mahindra Automotive Sector. http://www.thehindubusinessline.com/2009/05/16/stories/2009051650200300.htm http://www.financialexpress.com/news/m&m-signs-wage-deal-at-igatpuri-unit/460262/
M&M MAY MOVE PRODUCTION OF KEY MODELS OUT OF NASHIK Swaraj Baggonkar Business Standard (Web & Print Edition) Mumbai: The deadlock between Mahindra & Mahindra (M&M) and over 4,400 workers at the company's Nashik plant hardened, with the union saying it was appointing a lawyer to appeal to the Bombay High court against an industrial court-imposed 48-hour deadline for workers to return to work. The deadline ended. In response, the M&M management, which has taken a production hit of over 4,500 vehicles owing to the nine-day strike, is looking at shifting the production of some of its key models like the Xylo, Scorpio, Bolero and the Logan (jointly produced with Renault) to its plants in Zaheerabad near Hyderabad or Kandivali in the suburbs of Mumbai. "Every organisation will have an alternate plan and so do we. We will decide at what stage we will do it," said Rajesh Jejurikar, chief of operations, M&M. On Wednesday, the Nashik industrial court had declared the tool-down strike illegal and unjustified, and set the 48-hour deadline but gave workers 20 days to appeal against the decision. Workers at the Nashik plant struck work after the management declined to accede to their demand to reinstate Madhav Dhatrak, the union president (internal) of M&M, Nashik, who was suspended. The management said the suspension was part of corporate disciplinary action. Dhatrak confirmed that the union would approach the Bombay High Court. As a small reprieve, however, M&M stated that it had signed a three-and-a-half-year wage agreement with the Bhartiya Kamgar Sena (BKS), which represents workmen of the company's petrol and diesel manufacturing plant at nearby Igatpuri in Maharashtra. The company said although the supply of vehicles had been hit, there had been no impact so far on the demand side. The spurt in demand for Xylo had forced the company to double production of the vehicle to 135 a day. It has already lost more than 1,200 units of Xylos because of the labour strike. Meanwhile, workers said the agitation would continue as long as the management did not meet their demand. http://www.business-standard.com/india/news/mm-may-move-productionkey-models-outnashik/358291/ 'WE MIGHT MOVE PRODUCTION OUT OF NASHIK IF SITUATION CONTINUES': M& M Swaraj Baggonkar Business Standard (Web & Print Edition) Mumbai: M&M, Indias largest utility vehicle maker, has so far lost about 4,500 units in production due to the unprecedented tool down strike at its manufacturing facility in Nashik. The strike has entered its 9th day, with the workers deciding to approach the Bombay High Court to appeal against the industrial courts (Nashik) verdict asking them to resume duty within 48 hours. Swaraj Baggonkar spoke to Rajesh Jejurikar, Chief of Operations, M&M, for an update. How did all start? The 48 hour deadline set by the industrial court comes to end, but workers are in no mood to relent. Your comment? What will be M&Ms next move? M&M announced earlier in the day that it has signed a salary agreement with the workers at its (nearby) Igatpuri plant. Why isn't it doing the same at Nashik? We had signed a memorandum of understanding (MoU) with the earlier union. It is the responsibility of the current office bearer to decide on it. This MoU was signed in February last year, when the economic condition was even worse than it is. It has been nine days since production at the plant was paralysed. What is the production loss? Has there been any demand loss for Scorpio and Xylo? It is too early to say but according to my knowledge, there hasn't been any impact on the demand side. Obviously, the shortage has led to more clamouring for our vehicles. Besides trying to induce the workers to resume, what are the alternative plans? Every organisation will have such a plan and so do we. We will decide at what stage we will do it. At a very broad level, yes, we are considering moving the production out of Nashik (to other plants like Zaheerabad or Kandivali).
The Hindu Business Line (Web & Print Edition) See similar story in: mint (Web & Print Edition) Mumbai: Hero Honda Motors will replace Ranbaxy Laboratories Ltd in the Sensex, BSE said in an announcement on Friday. The replacement will be effective June 29, the exchange said. The stock of Ranbaxy Laboratories was up by 8.59 per cent and closed at Rs 199.80 at the end of the trading session on Friday. The share of Hero Honda Motors closed at Rs 1,221.65, up 1.02 per cent over the previous close. http://www.thehindubusinessline.com/2009/05/16/stories/2009051651511000.htm http://www.livemint.com/2009/05/15224520/Ranbaxy-replaced-by-Hero-Honda.html | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTERVIEWS/FEATURES Go To Top Malabika Sarkar The Financial Express, Motobahn Ever since Maruti decided to phase out the M800 and Omni from the Indian metros (as they wont be able to match the upcoming emission norms), consumers have been enthusiastically waiting for the next big launch from the automobile giant. The wait is finally over. India has been getting all the latest products developed my Suzuki, be it Swift, SX4 or the Grand Vitara. And now its time for the Splash to come home. Suzuki Splash made its world debut at the 2007 International Motor Show in Frankfurt and was placed in the super-mini category in the European market. After the huge success of the car in the European market and Japan, Maruti Suzuki has launched Splash in India as Ritz. However, the Indian version, Maruti Suzuki Ritz, is different from original Splash in terms of engine specifications, inter-iors and suspension, which are redesigned to suit Indian road conditions and customer preferences. Ritz is Indias first BS-4 compliant car. It will be available in two variants, petrol and diesel. The 1.2 litre K12M petrol engine offers 85PS power and a fuel efficiency of 17.1 kmpl. The 1.3 litre DDiS diesel engine, used in the diesel variants of Swift and Swift DZire, gives a fuel efficiency of 21.1 kmpl and 75PS of turbo power. In the petrol range, Ritz will have three modelsLXi, VXi and Zxiand the diesel twoLdi and Vdi. It is priced at between Rs 3,90,000 and Rs 4,80,000 for the petrol version. The diesel variant of the car will cost between Rs 4, 65,000 and Rs 4,99,000 in Delhi. Designed as a tallboy hatchback, the Ritz is positioned at the premium end of the compact car market. With this, Maruti Suzuki aims to consolidate its leadership in this highly competitive A2 market segment, where it already has five compact offerings: Alto, WagonR, Swift, Zen and the newly-launched A-Star. The segment has recorded a growth of around 17% in last fiscal. With 58%, Maruti commands the largest share of the A2 segment. We expect an enthusiastic response from the Indian market as the Ritz combines modern European design, the sportiness of the Swift, the latest engine technology (K12M engine) and Suzukis globally acclaimed expertise in compact cars. The design of the Ritz is based on Suzukis concept Splash which in turn is based on the Swift platform, says a Maruti Suzuki spokesperson. Ritz has been conceived on the theme of family and is positioned as "a car for everybody". The key elements that guided the development process were drivability, passenger comfort and contemporary interiors. Maruti Suzuki India is already the largest operation among Suzukis subsidiaries across the globe. It sold a total of 7,92,167 vehicles in 2008-09. This marks a growth of 3.5% over the previous year. With the launch of Ritz and by pushing existing models, Maruti expects to beat the 3.5% industry growth forecast for car sales for 2009-10. The company is banking on rising demand from rural areas and overseas markets to boost sales. The slowdown has affected our bottomline growth but has spurred us to explore other marketing avenues such as rural India. With focused initiatives for such market segments, we were able to grow 3.5% during fiscal 2008-09 while most other car manufacturers recorded a decline, says a company spokesperson. Parent Suzuki Motor Corporation (SMC) aims to make Maruti Suzuki a global research and development hub. SMC has also said that India would be the global small car development hub outside Japan for other markets. That the company chose India to be its sole manufacturing and export base for Suzukis world strategic model A-star bears testimony to its plans. In fact, the only diesel engine manufacturing facility of Suzuki in the world has been set up in India, at Manesar in Gurgaon district of Haryana. Small car segment to be Jazzed up soon Honda Siel Cars India will soon launch its premium compact hatchback Jazz with a 1.2 litre iVTEC petrol engine. If technical specifications are anything to go by, Ritz may not just match up, but may actually pip the Jazz to the post. With an almost similar engine (the Jazz churns out 90 PS of power as against Ritz 85 PS, and returns a fuel efficiency of 16 kmpl as against Ritz 17.1 kmpl). Maruti Suzuki will certainly have a price benefit on the Jazz. According to reports, Jazz will sport a tag of Rs 7 lakh against Ritz Rs 3.90-Rs 4.99 lakh. With Honda not planning a diesel version anytime soon, Ritz seems to have the upper hand, at least for now.... http://www.financialexpress.com/news/motowns-new-hatchback/460347/2 'WE AIM AT EXPANDING THE PRODUCT PORTFOLIO IN INDIA': PAUL DE VOIJS, MD, VOLVO CAR INDIA The Financial Express, Motobahn Volvo Car India (VCI), a subsidiary of Ford group company Volvo Car Corporation, expects the demand for luxury and super luxury cars to double in India and wants to be part of that growth. The luxury carmaker, which was founded in 1927 in Gothenburg, Sweden, sells its cars in about 100 countries. Paul de Voijs, managing director, Volvo Car India, told FEs Malabika Sarkar that the company hopes to strengthen its foothold in the country by expanding its dealerships and by bringing new models from its global portfolio. Excerpts from the interview: As a brand, a Mercedes or a BMW has a much higher prestige value than a Volvo, which is identified more with safety and less with luxury. What are you doing to change the perception and move to the big league in India? Firstly, our pricing is very competitive; the V8 engine is one of the most competitive V8s available in India. We believe in providing luxury at the right price. We are looking at building and spreading awareness about the brand image and its core values among its target audience. We are also establishing an efficient infrastructure with an experienced dealer network. At present we have five dealerships as we wanted to start with a limited number of dealers being new in this country. We have an energetic product linethe first flagship models being the sedan S80 and the crossover XC90. We are also keen on bringing in our international properties into India showcasing our commitment to this market. In 2008 Kochi witnessed the Volvo Ocean Race, the biggest yacht race across the world. In 2009, we intend to bring in our popular golf tournament Volvo Masters Amateur. By 2009, you were planning to open 14 new dealerships in the country. How many have been opened and how many are in the pipeline? Our aim is to have a dozen dealerships in India by the end of 2009. Currently we have five dealerships (New Delhi, Mumbai, Chandigarh, Kochi and Hyderabad) and going forward in 2009, we plan to expand our footprint and increase our dealer base to about nine in cities like Pune, Chennai, Bangalore, Ahmedabad, Jaipur and Kolkata. Volvo imports its vehicles through dealerships, and the import duty, wily nily, adds to the final price. If you are looking at India for the long term, you have to set up a manufacturing facility here, right? Yes, import duties... add to the price of the cars. On the other hand, if you have a manufacturing facility in the country there are several fixed and variable costs attached to the same. Additionally, there are some domestic duties levied on the production of cars locally. Therefore there is marginal difference in the final price of the car sold at the dealerships. If you compare the price of a Volvo car in India to any of the other luxury brand, you will find our pricing to be competitive. Currently we are looking at strengthening our foothold in the country by way of opening several dealerships across metros and mini metros. There are no plans for setting up a manufacturing plant in India at present. How long would it take you to develop India as an important base? We consider India as an important market with immense potential in the luxury car segment. Our aim in the first year of operations was to establish our brand name and make the consumers familiar with our values. Our management team is also working at expanding the product portfolio in India with the launch of Volvo XC60. We are confident that 2009 will be a positive year for Volvo in India. ... http://www.financialexpress.com/news/we-aim-at-expanding-the-product-portfolio-in-india/460349/2 Srirupa Tandon, Vinesh Kriplani The Financial Express, Motobahn The current unprecedented market conditions pose strategic and financial challenges-and opportuni- ties-for automakers. In these circumstances, lean is in for all. Tax-efficient supply chain management (TESCM) is a process that teams supply chain (logistics, manufacturing, distribution, inventory) efficiencies with tax (direct and indirect) to develop and implement a business model, wherein the functions and risks within the multinational group are allocated in such a way that higher profit attribution (from a transfer pricing perspective) can be made to lower tax jurisdictions. Take the case of an auto MNC with manufacturing facilities in India and customers across the European regionserved by subsidiary distributor companies set up in a couple of countries (say countries A and B) in the region. The tax rate in India is, say, 35%, whereas the tax rate for A and B is 38% and 40% respectively. The effective tax rate (ETR) of the group is around 38%. If it implements the toll manufacturing model, it could achieve considerable savings by centralisation of functions and risks and optimisation of tax costs. Conceptually, a toller converts raw material into finished product for a service fee on behalf of a principal company located in a low-tax jurisdiction. The MNC could identify a suitable jurisdiction, having regard to commercial and tax considerations that could act as the principal company for the group in the region. The tax rate of the principal company could be, say, 25%. The principal company will undertake key strategic func-tions, own critical intangibles and largely assume the risks of the business. It would also act as a distributor for sales to the entities in A and B, make marke- ting efforts and bear the credit/ sales risks. The entities in coun- tries A and B would act as limi- ted distributors undertaking some distribution functions and associated insignificant risks. Thus, while the manufacturing and distribution entities will have limited profits, taxed at local tax rates (35%, 38% and 40%), the residual income would accrue to the principal company situated in a jurisdic- tion enjoying a comparatively lower tax rate (25%). Effective implementation of a TESCM model is likely to bring down the ETR and thereby rationalise the tax cost of the MNC group. TESCM can be a useful mechanism to have a lean and efficient business structure geared to achieve significant economies by centralisation of functions, avoidance of duplication and tax-cost optimisation. For some in the auto sector it could be... the antidote for the current crisis. The authors are senior professionals at Ernst & Young, India ... http://www.financialexpress.com/news/manage-supply-chain-save-tax/460352/2 Bijoy Kumar Y Business Standard, Motoring Mumbai: Maruti has launched its seventh small car, and of course, weve driven it! While you have to wait for the June issue of BSM for a detailed drive story, here are over a dozen things you wanted to know about the Suzuki Ritz, but didnt know whom to ask Is it bigger than the Swift? If it is known as the Suzuki Splash abroad, why is it not called the same in India? Is it easy to get in and out of the Ritz? Why should you consider the Ritz when you can buy the established Swift, in both petrol and diesel?
What is so unique about the Ritz interior? Is it the same petrol engine as in the Swift? Well, the petrol engine is all new designated K12, this DOHC unit displaces 1197cc to develop 84 bhp at 6000 rpm and 11.3 kgm at 4500 rpm. It is expected to return 13-14 kpl. How about the diesel?
Is it still being produced in Europe? Yes, it is a very successful car under the name Suzuki Splash in Europe. Actually, this car was designed in Europe with European sensibilities in mind. Is it quick and spirited to drive? It is adequately quick and fast, if not spine-chillingly so. Want more involvement? Then buy the Swift. How does it handle potholed roads? Ride quality on bad roads is way better than that of the Swift, thanks to improved shock absorbers. The car is well planted around corners too, if you are interested. Can I buy it with airbags and ABS? Yes, the ZXi version with the petrol engine comes with ABS-EBD (anti-lock braking system and electronic brake distribution prevents the wheels locking up under heavy braking. For example, you can steer around a cow or a pedestrian while standing on the brake) and airbags. If you are a diesel car buyer, you cannot avail of passive safety in the form of airbags, but you can still opt for ABS+EBD in the VDi variant. What else can I consider, if not the Ritz? Well, you have the Hyundai i20 with its 1.2-litre petrol engine, for starters. Its a quality small car with lots of space, but the engine lacks grunt. Another choice is the Skoda Fabia, that also boasts of great build quality, good space and ride. But the engines (1.2 petrol and 1.4 diesel) are adequate at best and the car is pricey to buy and maintain too. The upcoming Fiat Grande Punto and the Honda Jazz could upset matters here for the Ritz, but it all depends on how they price it. One thing we would do to improve the Ritz package? http://www.business-standard.com/india/news/the-/five-star/-small-car/358226/
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CARS, SUVs, MUVs Go To Top Agencies See this story in: The Economic Times (Web & Print Edition), The Hindu Business Line (Web Edition), The Financial Express (Web Edition), Business Standard (Web & Print Edition), The Times of India (Web & Print Edition), The Telegraph (Web Edition), The Indian Express (Web & Print Edition), The Tribune (Web Edition), The Hindu (Web & Print Edition), Hindustan Times (Web & Print Edition), Deccan Herald (Web Edition), Rediff India (Web Edition) New Delhi: The country's largest car maker, Maruti Suzuki India, on Friday launched its latest small car Ritz in both petrol and diesel variants, offered at an introductory price of Rs 3.90-4.99 lakh. The petrol version of Ritz would be available in three variants in the price range of Rs 3.90 lakh to Rs 4.80 lakh, while the diesel engine car would be available in two variants between Rs 4.65 lakh and Rs 4.99 lakh. http://www.thehindubusinessline.com/blnus/19151391.htm http://www.financialexpress.com/news/maruti-launches-ritz-priced-at-rs-3.904.99-lakh/459955/ http://www.business-standard.com/india/news/maruti-suzuki-rolls-out-ritz/358301/ http://www.telegraphindia.com/1090516/jsp/business/story_10972259.jsp http://www.indianexpress.com/news/Maruti-drives-ahead-with-Ritz/460316 http://www.tribuneindia.com/2009/20090516/biz.htm#2 http://www.hindu.com/2009/05/16/stories/2009051652171600.htm http://www.deccanherald.com/content/2721/maruti-suzuki-unveils-ritz.html http://business.rediff.com/slide-show/2009/may/15/slide-show-1-check-out-the-maruti-ritz.htm MARUTI BOOSTS COMPACT CAR PORTFOLIO WITH RITZ The Hindu Business Line (Web & Print Edition) New Delhi: Maruti Suzuki on Friday launched its second premium compact car within six months, aiming to further strengthen its small car portfolio. In November it had launched the A-star. With the launch of the Ritz, Maruti will compete with other cars in the A2 segment such as Hyundais i10, Honda Jazz and Skoda Fabia. The Ritz is available with a 1.2 litre K12M petrol engine and is priced from Rs 3.9 lakh (ex showroom Delhi) for the base model to Rs 4.8 lakh for the top-end version. In diesel, the Ritz is equipped with a 1.3 litre engine and is priced at Rs 4.65 lakh for the Ldi variant and Rs 4.99 lakh for the Vdi variant. The Maruti Suzuki Managing Director, Mr Shinzo Nakanishi, said, We are consciously expanding our portfolio in the competitive compact car segment. The common platform of Ritz and high localisation has helped us to keep our costs in control. The company does not see the Ritz eating into the market share of its popular selling hatchback Swift, even though both the models are priced competitively. (The Swift petrol is available in the price range of Rs 3.99 lakh to Rs 5.15 lakh, while the diesel version in the Rs 4.67 lakh to Rs 5.01 lakh range.) Currently, the Swift commands a market share of 75 per cent, where it competes with Getz, Fabia and i10 among others. The Swift is an iconic brand and was an instant success. While there could be minor cannibalisation of up to 8-10 per cent, we expect to increase our market share with both the models in the premium A2 segment, said Mr Mayank Pareek, Executive Officer (Marketing and Sales), Maruti Suzuki India. With the Ritz diesel variant sporting the same engine that is fitted in Swift and Dzire, there is a concern over the waiting period. While on Swift diesel, the waiting period is three months, in the case of Dzire sedan it is about six months. Of the existing diesel capacity of 2 lakh units, excluding Swift and Dzire, it is estimated that the company is left with a production capacity of about 80,000 units annually. Maruti indicated that it would up production and may also go to three shifts if required. The company denied any plans to export Ritz or to phase out any of the existing models to streamline its portfolio. http://www.thehindubusinessline.com/2009/05/16/stories/2009051651480200.htm MARUTI TAKES A RITZY RISK, PITS NEW LAUNCH AGAINST SWIFT-SELLING MODEL Hindustan Times (Web & Print Edition) New Delhi: Looking to create a big splash in the super hatch segment, car market leader Maruti Suzuki India Ltd (MSIL) unveiled its second offering in the segment on Friday the Ritz. Perhaps ironically, the new car faces the toughest competition from its own sibling, the Swift, which has a 75 per cent marketshare in the segment. MSIL is offering both petrol and diesel variants of the Ritz, priced at Rs 3.9-4.8 lakh and Rs 4.65-4.99 lakh respectively. While the car shares its 1.3 litre multijet diesel engine with the Swift, the petrol variant is powered by Maruti's newly-developed 1.2 litre K-series engine. It is almost Rs 10,000 cheaper than the Swift as its sub-1.2 litre engine attrracts lower excise duty. We are consciously expanding the product portfolio in the compact car segment as no two customer is alike and we do not want to miss out on any opportunity," said Shinzo Nakanishi, managing director, Maruti Suzuki India Ltd (MSIL). "There will be marginal cannibalisation between the Swift and Ritz, but like in the case of Zen and Wagon R, the two together will help expand the market." The super hatch segment is set to witness a host of activity in the near future, with Honda and Fiat readying their own products, the Jazz and the Grande Punto respectively, next month. Volkswagen, Nissan and Toyota are also finalising their products for the segment. Other than the Swift, the super hatch segment currently has Hyundais Getz and i20, Chevrolets Aveo and U-VA and the Skoda Fabia. Though the Ritz is priced aggressively (see table), the Swifts success in the domestic market since its launch in 2005 has made the company evasive on its expectations for the Ritz. "We have kept a flexible target for this year in view of the prevailing market situation," said IV Rao, managing executive officer (engineering and R&D), MSIL. "We have the capacity to supply any demand that maybe generated. The car has a lot in common with the Swift and that helped us in keeping costs low." Ritz has a local content of 95 per cent. The Ritz is named Splash overseas. The company could not use the name in India as it is already registered with Ford India. Looking to create a big splash in the super hatch segment, car market leader Maruti Suzuki India Ltd (MSIL) unveiled its second offering in the segment on Friday the Ritz. Perhaps ironically, the new car faces the toughest competition from its own sibling, the Swift, which has a 75 per cent marketshare in the segment. MSIL is offering both petrol and diesel variants of the Ritz, priced at Rs 3.9-4.8 lakh and Rs 4.65-4.99 lakh respectively. While the car shares its 1.3 litre multijet diesel engine with the Swift, the petrol variant is powered by Maruti's newly-developed 1.2 litre K-series engine. It is almost Rs 10,000 cheaper than the Swift as its sub-1.2 litre engine attrracts lower excise duty. We are consciously expanding the product portfolio in the compact car segment as no two customer is alike and we do not want to miss out on any opportunity," said Shinzo Nakanishi, managing director, Maruti Suzuki India Ltd (MSIL). "There will be marginal cannibalisation between the Swift and Ritz, but like in the case of Zen and Wagon R, the two together will help expand the market." The super hatch segment is set to witness a host of activity in the near future, with Honda and Fiat readying their own products, the Jazz and the Grande Punto respectively, next month. Volkswagen, Nissan and Toyota are also finalising their products for the segment. Other than the Swift, the super hatch segment currently has Hyundais Getz and i20, Chevrolets Aveo and U-VA and the Skoda Fabia. Though the Ritz is priced aggressively (see table), the Swifts success in the domestic market since its launch in 2005 has made the company evasive on its expectations for the Ritz. "We have kept a flexible target for this year in view of the prevailing market situation," said IV Rao, managing executive officer (engineering and R&D), MSIL. "We have the capacity to supply any demand that maybe generated. The car has a lot in common with the Swift and that helped us in keeping costs low." Ritz has a local content of 95 per cent. The Ritz is named Splash overseas. The company could not use the name in India as it is already registered with Ford India. MARUTI TO MAKE ALL ITS PRODUCTS BS-IV COMPLIANT The Pioneer (Web & Print Edition) New Delhi: Maruti Suzuki will not phase out any of its existing models as it is working on making every product BS-IV compliant even as it launched Indias first BS-IV compliant hatchback Ritz on Friday. http://www.dailypioneer.com/176390/Maruti-to-make-all-its-products-BS-IV-compliant.html MOTOWN'S NEW HATCHBACK Malabika Sarkar Yahoo India (Web Edition) Ever since Maruti decided to phase out the M800 and Omni from the Indian metros (as they won't be able to match the upcoming emission norms), consumers have been enthusiastically waiting for the next big launch from the automobile giant. The wait is finally over. India has been getting all the latest products developed my Suzuki, be it Swift, SX4 or the Grand Vitara. And now it's time for the Splash to come home. Suzuki Splash made its world debut at the 2007 International Motor Show in Frankfurt and was placed in the super-mini category in the European market. After the huge success of the car in the European market and Japan, Maruti Suzuki has launched Splash in India as Ritz. However, the Indian version, Maruti Suzuki Ritz, is different from original Splash in terms of engine specifications, inter-iors and suspension, which are redesigned to suit Indian road conditions and customer preferences. Ritz is India's first BS-4 compliant car. It will be available in two variants, petrol and diesel. The 1.2 litre K12M petrol engine offers 85PS power and a fuel efficiency of 17.1 kmpl. The 1.3 litre DDiS diesel engine, used in the diesel variants of Swift and Swift DZire, gives a fuel efficiency of 21.1 kmpl and 75PS of turbo power. In the petrol range, Ritz will have three models LXi, VXi and Zxi and the diesel two Ldi and Vdi. It is priced at between Rs 3,90,000 and Rs 4,80,000 for the petrol version. The diesel variant of the car will cost between Rs 4, 65,000 and Rs 4,99,000 in Delhi. Designed as a tallboy hatchback, the Ritz is positioned at the premium end of the compact car market. With this, Maruti Suzuki aims to consolidate its leadership in this highly competitive A2 market segment, where it already has five compact offerings: Alto, WagonR, Swift, Zen and the newly-launched A-Star. The segment has recorded a growth of around 17% in last fiscal. With 58%, Maruti commands the largest share of the A2 segment. "We expect an enthusiastic response from the Indian market as the Ritz combines modern European design, the sportiness of the Swift, the latest engine technology (K12M engine) and Suzuki's globally acclaimed expertise in compact cars. The design of the Ritz is based on Suzuki's concept Splash which in turn is based on the Swift platform," says a Maruti Suzuki spokesperson. Ritz has been conceived on the theme of family and is positioned as "a car for everybody". The key elements that guided the development process were drivability, passenger comfort and contemporary interiors. Maruti Suzuki India is already the largest operation among Suzuki's subsidiaries across the globe. It sold a total of 7,92,167 vehicles in 2008-09. This marks a growth of 3.5% over the previous year. With the launch of Ritz and by pushing existing models, Maruti expects to beat the 3.5% industry growth forecast for car sales for 2009-10. The company is banking on rising demand from rural areas and overseas markets to boost sales. "The slowdown has affected our bottomline growth but has spurred us to explore other marketing avenues such as rural India. With focused initiatives for such market segments, we were able to grow 3.5% during fiscal 2008-09 while most other car manufacturers recorded a decline," says a company spokesperson. Parent Suzuki Motor Corporation (SMC) aims to make Maruti Suzuki a global research and development hub. SMC has also said that India would be the global small car development hub outside Japan for other markets. That the company chose India to be its sole manufacturing and export base for Suzuki's world strategic model A-star bears testimony to its plans. In fact, the only diesel engine manufacturing facility of Suzuki in the world has been set up in India, at Manesar in Gurgaon district of Haryana. Small car segment to be 'Jazz'ed up soon Honda Siel Cars India will soon launch its premium compact hatchback Jazz with a 1.2 litre iVTEC petrol engine. If technical specifications are anything to go by, Ritz may not just match up, but may actually pip the Jazz to the post. With an almost similar engine (the Jazz churns out 90 PS of power as against Ritz' 85 PS, and returns a fuel efficiency of 16 kmpl as against Ritz' 17.1 kmpl). Maruti Suzuki will certainly have a price benefit on the Jazz. According to reports, Jazz will sport a tag of Rs 7 lakh against Ritz' Rs 3.90-Rs 4.99 lakh. With Honda not planning a diesel version anytime soon, Ritz seems to have the upper hand, at least for now. http://in.biz.yahoo.com/090515/203/batkzu.html Deccan Herald (Web Edition) New Delhi: The petrol version of the Ritz, which is a variant of Suzukis European car Splash, will be priced at between Rs 3,90,000 and Rs 4,80,000 (ex-showroom). And the diesel variant of the car will cost between Rs 4,65,000 and Rs 4,99,000 in Delhi, top officials of the company said here. Ritz will be available with two different engine options: a new 1.2-litre, four-cylinder 85 PS petrol version and Marutis successful 1.3-litre, 16-valve DDiS, 75 PS diesel engine. The Ritz combines modern European design, the sportiness of the Swift, the latest in engine technology and Suzukis globally acclaimed expertise in compact cars, MSIL Managing Director and CEO Shinzo Nakanishi, said while unveiling the new model. The new car, which will be available in five variants, three with petrol engines LXi, VXi and ZXi and two with diesel engines LDi and VDi, will primarily seek to consolidate its leadership in the highly competitive compact car segment, he said. MSIL claims that it commands the largest market share of 58 per cent in the compact car (A2) segment. http://www.deccanherald.com/content/2721/maruti-suzuki-unveils-ritz.html MARUTI RITZ IS HERE AT RS 3.90 LAKH! See this story in: Rediff India (Web Edition) Maruti Suzuki India, on Friday launched its latest small car Ritz in both petrol and diesel variants, offered at an introductory price of Rs 3.90-4.99 lakh. "Ritz is our parent Suzuki's fifth global model and it will be the first Bharat Stage-IV emission norms compliant Indian car. We have launched it at the beginning of the fiscal and we hope it will bring excitement in the market," Maruti Suzuki India Managing Director and CEO Shinzo Nakanishi said. The small car has been developed on the existing hatch-back Swift's platform and common usage of the platform helped the company to offer Ritz at a lower price, he added. "Also higher level of localisation helped us in reducing the cost. Ritz has 85 per cent of localisation in components," Nakanishi said. http://business.rediff.com/slide-show/2009/may/15/slide-show-1-check-out-the-maruti-ritz.htm S. Muralidhar The Hindu Business Line (Web & Print Edition) Chennai: Maruti Suzukis latest entrant the Ritz has been launched into an Octomom style family of small cars that already exist in the portfolio of the passenger vehicle market leader. Its introduction is also timely given the fact that the premium hatchback segment is set to witness quite a flurry of new launches in the next few months. With the Ritz being the eighth car that Maruti has introduced in the small car segment, the difficulty as regards brand and price positioning has been handled with aplomb. The tall-boy design of the Ritz and the fact that it shares the platform with the Swift, has meant that giving it a family ownership focus was sort of inevitable. This has ensured that the Swifts youthful target buyer profile can been carried forward. It is also smart move by Maruti to offer the Ritz at a slightly lower price point compared to the Swift. The lower price position runs across all variants, though the new hatch does seem to offer more novelty and a better finish quality in its interior when compared to that of the Swift. So, the price was crucial, after all, the family man or woman who is its focus, almost naturally acquires the need to do VFM-shopping post-marriage. Compared to the Swift, the Ritz offers a package that is taller by almost 10 cm, but has a slightly (3cm) smaller wheelbase. But, compared to that of the Swift, rear seat passengers in the Ritz might still feels less cramped thanks to the raised seat height, which has been made possible due to the taller roof. The new, extremely refined and fuel efficient K12M petrol engine also gives the Ritz a different focus compared to the Swifts engine that focuses on being peppier and is also less fuel efficient. The Ritz is also closely next to the Hyundai i10 and i20 in terms of dimensions. But, Maruti has given this new hatch too an advantage that the Korean car maker will also want to endow its hatches with. Unlike Marutis earlier small cars, which were not originally designed to handle diesel mills, the new series of Suzuki World Strategic models are all designed to handle both types of engines. The Ritz is the third car from Maruti to get the 1.2-litre DDiS diesel engine. Going by the popularity of the diesel versions of the Swift and the Swift DZire, which sport the same engine, the new hatchs DDiS versions could also turn out to be the bigger draw. http://www.thehindubusinessline.com/2009/05/16/stories/2009051651470200.htm TATAS, M&M, MARUTI JOIN HANDS FOR HYBRID MODELS The Hindu Business Line (Web & Print Edition) New Delhi: In their quest for alternative technology at lower costs, domestic auto makers are now working together to develop future technology. The Tatas, Mahindra and Maruti Suzuki are working on a shared technology basis to develop hybrid and battery-powered vehicles. In the first phase, they are aiming to demonstrate their fleet of vehicles for the Commonwealth Games to be held in 2010 in the country. Under the initiative of the Department of Heavy Industries, Government of India, and the Society of Indian Automobile Manufacturers, these companies will work in key areas such as transmissions, electronic controllers, battery and motor. In all the four areas, there will be a member from each of the three companies, said Mr C.V. Raman, Chief General Manager (Research and Development), Maruti Suzuki. Working together He said while the details are being worked out, the focus is likely to be on high-powered lithium iron batteries, which can be used with a gasoline or a diesel engine. Maruti Suzuki will demonstrate the technology on its passenger car models. Mahindra will showcase the technology on its sports utility vehicle and the Tatas on their heavy vehicles like buses. After collaborating on the basic areas of transmission and batteries, they will then integrate the technology in their vehicles independently. The project is being headed by the Maruti Suzuki Executive Officer (R&D), Mr I.V. Rao, who chairs the committee on National Hybrid Propulsion Programme. Each company is expected to demonstrate the technology on a fleet of ten vehicles. It is believed that the Government has taken a cue from the Beijing Olympics, during which Chinese auto makers showcased their technology by ferrying passengers. http://www.thehindubusinessline.com/2009/05/16/stories/2009051652200100.htm AUDI TARGETS 55% SALES GROWTH IN INDIA THIS YEAR The Hindu Business Line (Web & Print Edition) See similar story in: Deccan Herald (Web Edition), The Economic Times (Web Edition), Hindustan Times (Delhi Print Edition) Kochi: The German luxury car manufacturer Audi is targeting a 55 per cent sales growth in India in the current year despite the crisis in the luxury car market worldwide. The company had sold 500 cars in the country in the first four months of the calendar year and is aiming to touch 1,500 by the year-end. Of this, 80 cars would be sold in Kerala, Mr Benoit Tiers, Managing Director, Audi India, told reporters here on Friday. Mr Tiers, who was here in connection with the opening of the countrys first Audi Terminal showroom, said the impact of the global meltdown on the Indian luxury car segment has been marginal even as the markets in the US and Europe have declined by 25-50 per cent. The luxury car market in India will get out of the crisis much faster, he said. The company has adopted a long-term strategy for the Indian market and is constantly investing in network expansion. Of the 12 dealerships, nine had already started functioning and the remaining three would be opened in Ludhiana, Chennai and Delhi by 2010. Terminal showroom The production facility at Aurangabad, with an investment of 30 million, has the capacity to manufacture 1,000 cars which can be enhanced to 1,300, he said. Audi Kochi is the flagship showroom in India that exemplifies the latest and exclusive terminal architecture of Audi. The purpose of the terminal is to increase the visibility of the brand through a design that is instantly recognisable in the metropolises around the world. The dealership in Kochi has a 9,000 sq.ft. wide area exclusively dedicated for sales. The Kochi terminal is the second largest dealership in the country dedicated for sales and display of eight Audi cars. The super sports car Audi R8 will be on display for the opening. The new Audi terminal in Kochi is an addition to the worldwide examples of the new Audi corporate architecture located in Tokyo, Geneva, Sydney and Munich. By the end of 2012, more than 350 Audi terminals are to be set up worldwide, he said. http://www.thehindubusinessline.com/2009/05/16/stories/2009051650150300.htm http://www.deccanherald.com/content/2629/audi-aims-55-pc-growth.html http://economictimes.indiatimes.com/News-by-Industry/Audi-aims-55-growth-from-India/articleshow/4535565.cms | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| COMMERCIAL VEHICLES Go To Top The Financial Express (Web & Print Edition) See similar story in: The Hindu (Web & Print Edition), Daily News & Analysis (Web Edition), The Hindu Business Line (Delhi Print Edition) On a reduced sales volume of 54,431 vehicles (as against 83,307 units during last fiscal), the turnover has declined to Rs 5,981.07 crore (Rs 7,742.58 crore), with other income contributing Rs 49.62 crore (Rs 57.61 crore). Faced with a steep fall in demand, the company had curtailed production by resorting to lesser number of working days starting November 2008, which has brought down operating costs, contributing to lower other expenses at Rs 493.21 crore (Rs 541.20 crore). Addressing a press conference here to announce the annual performance as well as future plans, R Seshasayee, managing director of Ashok Leyland, said: One disturbing trend in the segmental shift is the steeper fall in demand for higher capacity vehicles such as tractor trailers and multi-axle vehicles, at least temporarily retarding the modernisation of Indias vehicle composition. These are also segments where Ashok Leyland has a stronger presence and the maximum model options. This segmental reversal and the relatively robust demand in the eastern region impacted the companys goods volumes. The redeeming feature was the bus demand which was down just 9.7%. The company improved its market share in buses by 0.5% and retained the top position. In order to offset the possible downturn and to bring up its growth in future, the company will be floating a vehicle finance company in the next two months. We are waiting for RBI approval and we expect to float the same in the next two months, Seshasayee said. Overall, the share of non-cyclical business has gone up to 50% from 34% in 2007-08, with the engines business fetching a revenue of Rs 404 crore (Rs 204 crore). This represents higher volume of genset engines (11,264 nos) and transformation of the business stream from mere trading in engines into the `Power Solutions Business' through greater value addition, he pointed out. According to Seshasayee, the industry is going through a segmental shift towards multi-axle, conventional, 4X2 tractor trailer and general purpose vehicle which is prevalent in the developed countries. The slowdown forced a quick redrawal of the capex plans. Investment plan for 2009-12 has been scaled down from Rs 3,000 crore to Rs 2,000 crore, yet protecting product development outlay. While the... additional 20,000 engine capacity at Ennore is on and the Ras Al Khaimah bus plant is operational, the Uttarakhand unit will go on stream with an initial capacity of 50,000 vehicles by this fiscal-end. The diversification JVs are progressing. The joint venture with John Deere for construction equipment is progressing. As for the light trucks JV with Nissan, with respect to the various products, development activity is on track and on schedule. The two partners are also evaluating the possibility of enlarging the product range in the manufacturing plan, including some additional products from Nissan's global portfolio of light commercial vehicles. Current assumption for start of volume production is 2011. http://www.financialexpress.com/news/ashok-leyland-net-falls-60-to-rs-190-cr/460292/2 http://www.hindu.com/2009/05/16/stories/2009051652181600.htm http://www.dnaindia.com/report.asp?newsid=1256359 ASHOK LEYLAND-NISSAN JV TO BE DELAYED Business Standard (Web & Print Edition) See similar story in: The Economic Times (Web Edition), Asian Age (Web & Print Edition), Deccan Chronicle (Web Edition) Chennai: Commercial vehicle major Ashok Leyland said that its joint venture with Nissan to manufacture Light Commercial Vehicle (LCV) near Chennai will be delayed by six months due to the current economic slowdown and delay in land acquisition. The company will scale down investment in the project. Meanwhile the company has brought down capex plan by Rs 1,000 crore for the next three years to Rs 2,000 crore from Rs 3,000 crore, which was earlier planned. Speaking to reporters after announcing companys results R Seshasayee, managing director, Ashok Leyland said that current assumption to start production (Nissan project) at Pillaipakkam, near Chennai, would be 2011. He added, initial investment along with the partners in the Nissan project was Rs 2,000 crore which has to be scaled down. Seshasayee did not comment on how much percentage it would come down. The joint venture partners initially was planning of produce 3,4 and 6 tonne vehicles, now in addition to that Nissan is looking at producing some more products for overseas markets this will also lead to offer larger portfolio. Meanwhile, AL has lost its market share by 1.8 per cent in 2008-09 due to the current economic slowdown in the commercial vehicle industry. The company has reported a 70 per cent drop in the net profit for the quarter ended March 31, 2009 which stood at Rs 53 crore as compared to Rs 180 crore, a year ago. Terming the year as a turbulent year and challenging , Seshasayee said that one disturbing trend was the segmental shift is the steeper fall in demand for higher capacity vehicles such as tractor trailers and multi-axle vehicles at least temporarily retarding the modernisation of Indias vehicle composition. He said that the company had lost its overall market share by 1.8 per cent, which is not a good news. However it maintained its market share of 46 per cent in the bus segment. Companys overall sales dropped to Rs 1,218 crore from Rs 2,565 crore, a drop of 52 per cent during the last quarter ended March 31, 2009. In terms of units, sales in 2008-09 dropped to 54,431 units in 2008-09 from 83,307 units in 2007-08, a drop of 34.7 per cent. http://www.business-standard.com/india/news/ashok-leyland-nissan-jv-to-be-delayed/358300/ http://www.asianage.com/presentation/leftnavigation/news/business/all-postpones-nissan-jv-deal.aspx http://www.deccanchronicle.com/business/all-postpones-nissan-jv-deal-384 Mobis Philipose Mint (Web & Print Edition) Auto maker Ashok Leyland Ltds results for the quarter ended March held no surprises, with pre-tax profit falling by 86% to Rs35.9 crore on a year-on-year (y-o-y) basis. Sales halved to Rs1,218 crore as volumes plummeted owing to the economic slowdown. When the downturn was at its worst late last year, and the company had announced a halving of its production, some analysts had feared that the company may even run into losses. The company did go to the brink in the December quarter, reporting a pre-tax profit (excluding other income) of merely Rs8 crore, or 0.8% of sales. Things have looked up since. In the March quarter, the company had a pre-tax profit margin (excluding other income) of 1.9%. The company has cut costs aggressively, enabling it to record an operating margin of around 9% in the past two quarters, despite the sharp drop in sales and a commensurate cut in production. In the year-ago period, when sales were about double those levels, the operating margin was around 10.7%. What has pushed Ashok Leyland to the brink really is a sharp rise in interest cost. The company was set to increase capacity a little before the downturn which, coupled with higher working capital and higher interest rates, has caused interest costs to balloon. In fiscal 2009, the interest cost rose 139% to Rs118.7 crore. The company has increased the proportion of non-cyclical business such as buses and engines to 50% of total revenues, but its important to note that the majority of profits still comes from the truck business, which is evident from the fact that profit fell by 86% last quarter despite the relatively decent performance of the non-cyclical part of the business. Ashok Leyland has been underperforming its rival Tata Motors Ltd in recent months owing to both its product portfolio as well as its geographical spread. The company gets a large proportion of its sales from southern states, where demand for heavy commercial vehicles has been hit more than the country average. Besides, the company mainly sells heavy trucks in the goods segment and hardly has a presence in the light commercial vehicles segment, demand for which has been fairly robust in recent months. Needless to say, for any recovery in the companys sales, there has to be a recovery in economic activity. Recent signs that the economy may have bottomed out has led to a 50% jump in the companys share price from its lows in early March. The company may continue to report large declines in sales (on a y-o-y basis) for the next few months, but in a few months, the comparable base will be rather low and Ashok Leyland is expected to be back on the growth path. But since the stock has already recovered smartly and there is still a fair bit of uncertainty, further gains in the stock will depend on sales in the next few months. http://www.livemint.com/2009/05/15213641/Ashok-Leyland-bottomed-out.html | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CONSTRUCTION & AGRI MACHINERY Go To Top Nandini Sen Gupta The Economic Times Automobile and farm equipment major Mahindra & Mahindra (M&M) is in advanced stages of talks with US-based construction equipment maker Caterpillar for a 51:49 joint venture, which will make engines for the US firms tractor range. http://economictimes.indiatimes.com/News/News-By-Industry/Auto/MM-Caterpillar-in-engine-JV-talks/articleshow/4537135.cms | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2/3 WHEELERS Go To Top PTI See this story in: The Economic Times
http://economictimes.indiatimes.com/News/News-By-Industry/Auto/Two-wheelers/Hondas-2-wheeler-production-likely-to-be-hit-by-MRF-strike/articleshow/4536251.cms BSA MOTORS EYES 18-20% EBIKE MARKET SHARE The Hindu Business Line See this story in: The Hindu, Asian Age Hyderabad: Last to enter the electric bike (eBike) segment in the country, BSA Motors is eyeing a market share of about 18-20 per cent by the end of this financial year. Part of the Rs 15,646-crore Murugappa group and a strategic business unit of Tube Investments of India, BSA Motors has announced the launch of five bike models in Andhra Pradesh and hinted at entering the western and northern regions shortly. The Managing Director of Tube Investments of India, Mr. L. Ramkumar, said BSA Motors is in the process of consolidating its business after gradual rollout of bikes in the southern market. Having stabilised operations with positive market response, we plan to enter the western and northern market. As a part of expansion of footprint in the country, the company plans to increase its dealership network from the present 30 in four southern states to about 100 within three months and thereafter increase it to about 120 by the end of this fiscal. Fiscal target Addressing a press conference here after the rollout of five ebikes and launch of two COCO (company owned and company operated) showrooms in Hyderabad, Mr Ramkumar said that the company expects sales of about 25,000 bikes during the current financial year. The market for eBikes is just about blossoming and we expect volumes to come up in couple of years, just as it happened in China. However, a uniform taxation regime and support like that offered by the Delhi Government, will actually help penetrate the market much faster, Mr K.B. Srinivasan, Vice-President, BSA Motors, said. Price range Five models of BSA bikes are priced in the range of about Rs 26,500 to Rs 35,900 for the top-end model. The tax sops offered by the Delhi Government have brought down the cost of such bikes by about 30 per cent. If other Governments too help, customers will benefit, Mr. Srinivasan said. The eBike segment is a Rs 450 crore market and appeals to a wide section of users, both youngsters and elderly with its utilitarian features. These bikes do not require any licence or registration. BSA Motors has supplied these electric bikes for use in IIT-Madras campus and was engaged in talks with large corporate houses with campuses such as Infosys, to consider use of these eco-friendly bikes, Mr Ramkumar said. http://www.thehindubusinessline.com/2009/05/16/stories/2009051650591600.htm http://www.hindu.com/2009/05/16/stories/2009051659800400.htm http://www.asianage.com/presentation/leftnavigation/news/business/
The Economic Times New Delhi: The beleaguered two wheeler company LML has launched its second geared scooter in the domestic market, on the back of a revival of demand in domestic scooter market. LML has introduced a 4-stroke version of its NV brand of scooters in select market of Delhi and Ghaziabad. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://economictimes.indiatimes.com/News/News-By-Industry/Auto/LML-launches-new-version-of-NV-brand-scooter/articleshow/4535388.cms | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| COMPONENTS Go To Top
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ALLIED INDUSTRY Go To Top | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FINANCE & INSURANCE Go To Top | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LUBRICANTS & ALTERNATIVE FUELS Go To Top Amitav Ranjan The Indian Express At these levels, state-run oil marketing companies (OMC) would compete for price discovery. This will bring benefits of efficiency in operations, better choice for consumers and enhance service standards, says the proposal. In the event crude oil crosses the $75-a-barrel mark, the government would intervene in the market to lessen the burden on the common man through a sharing of the under-recoveries of OMCs among the national treasury, upstream oil and gas companies as well as the OMCs. The existing burden sharing scheme be continued as it provides more flexibility to vary the contribution from upstream oil companies, says the draft. http://www.indianexpress.com/news/Fuel-price-decontrol-coming/460319 AFP See this story in: The Times of India
http://timesofindia.indiatimes.com/Business/Oil-prices-up-in- | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TOYOTA PLANNING MAJOR MANAGEMENT REJIG NEXT MONTH: REPORT PTI See this story in: The Economic Times, Business Standard London: Japanese car maker Toyota Motor is planning one of its most major management reshuffles in 70 years of existence next month, when Akiko Toyoda will take over as company's chief executive, says a media report. http://www.business-standard.com/india/news/toyota-mulls-major-mgmt-rejig-next-month-report/61768/on GM DEALERS EXPECT WORD ON PLANS TO CUT 1,100 SHOPS Agencies See this story in: The Economic Times Detroit: A day after Chrysler LLC told a quarter of its dealers that it won't renew their contracts, owners of General Motors Corp. dealerships are awaiting word on whether they will be next. GM TO SHUT DOWN 1,600 DEALERSHIPS Agencies See this story in: The Economic Times Detroit: General Motors Corp plans to drop about 1,600 US dealers as it struggles to slash billions of dollars in operating costs and debt ahead of an anticipated bankruptcy filing by the end of the month. Taken together with a similar announcement by bankrupt Chrysler LLC a day earlier, over 2,300 US auto retailers have been put on notice that they are being eliminated by the two embattled automakers. OPEL REQUIRES $1.4BN IN BRIDGE LOANS TO SURVIVE Bloomberg See this story in: The Economic Times Michigan: General Motors Corps Opel unit needs at least 1 bn euros ($1.4 bn) in bridge loans to continue operations while it negotiates with two or three potential bidders, the automakers top European executive said.
Reuters See this story in: The Economic Times Tokyo: Honda Motor Co's earnings will hit bottom this year and improve after that as demand in the United States returns in the second half, the Japanese automaker's chief executive said on Friday. FORD LOOKS TO 2011 FOR MOVING INTO PROFITABILITY See this story in: The Hindu Business Line
Were on a good glide slope to get back to profitability in 2011, Mr Mulally told shareholders at the automakers annual meeting in Wilmington, Delaware, We have sufficient liquidity, weve got a good product plan and weve got the restructuring in line with that product plan. Now its just staying on that plan. BMW CEO SAYS COOPERATION INTEGRAL, REJECTS MERGERS See this story in: The Hindu Business Line
BMW, which builds engines for the Mini model with PSA Peugeto Citroen, will extend its purchasing co-operation with Daimler AGs Mercedes-Benz division without compromising the companys independence, the Chief Executive Officer, Mr Norbert Reithofer, said in a copy of a speech to be delivered on Thursday at the Munich-based companys annual shareholders meeting. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ECONOMY & FINANCE Go To Top The Hindu Business Line Mumbai: Indias foreign exchange reserves increased by $4.239 billion to $255.941 billion for the week ended May 8, according to figures released in the Reserve Bank of Indias weekly statistical supplement. For the week ended May 1, reserves fell by $1.389 billion to $251.702 billion. The foreign currency assets increased by $4.014 billion to $245.501 billion, on account of revaluation of the reserves. Foreign currency assets expressed in US dollar terms include the effect of appreciation or depreciation of non-US currencies. The dollar had weakened against the euro and the pound in the week under consideration, said a dealer with a public sector bank. In the week under review, the dollar touched a low of 1.343 against the euro and 1.514 against the pound. According to the figures released by the Securities and Exchange Board of India, foreign institutional investors were net buyers in the equity markets to the tune of $906.5 million for the week ended May 8, pulling up the reserves. Gold reserves and SDRs remained unchanged at $9.23 billion and $1 million respectively. The reserve position in the IMF increased by $225 million to $1.208 billion. http://www.thehindubusinessline.com/2009/05/16/stories/2009051650340600.htm SENSEX RISES 300 POINTS ON THE EVE OF ELECTION RESULTS The Hindu Business Line Mumbai: Showing confidence in the midst of uncertainty, foreign and domestic institutional investors pumped in as much as Rs 1,400 crore into equities, driving the Sensex up 300 points on Friday, on the eve of the general election results. The market has taken a definite view that either the UPA or the NDA will come to power, said Mr Motilal Oswal, Chairman and Managing Director of Motilal Oswal Financial Services Ltd. The exit polls gave comfort to the markets as the Government wont be dominated by the Left parties. A Government led by BJP or Congress both are seen as favourable for the market, said Mr Dinesh Thakkar, CMD, Angel Broking. But any contrary development, such as the Third Front emerging as a force to contend with, or delay and difficulty in Government formation in the coming days could tank the market, added Mr Oswal. Choppy course The benchmark index tracked a choppy course upward, ending the day at 12,173, gaining 2.5 per cent. Even through a broader time span, the key index has been flirting with 12,000 mark since the beginning of this month. Fridays close in fact, shows hardly any change from the first trading day of the month on May 4 when the index closed at 12,134. The NSE-Nifty closed at 3,671 with a gain of 78 points. Global cues The cues from the global front supported the initial uptrend in the market; the positive opening of the European markets and the US index futures market further fuelled the uptrend in the afternoon session, said Mr Alex Mathew Head, Research Centre Geojit BNP Paribas Financial Services Ltd. The market was driven up mainly by FII buying, said Mr Oswal: The rally seen these days is a global liquidity driven one and it will be the case in the short run, Mr Oswal said. FII buying FIIs were net buyers of equities for Rs 984 crore on Friday while domestic institutional investors were net buyers for Rs 432 crore, the provisional data provided by the stock exchanges showed. FIIs have been net buyers in both April and May (to date); their net buy at Rs 1,300 crore and Rs 1,870 crore respectively. Cumulative buying by FIIs during this calendar year so far has amounted to Rs 1,927 crore. Shares of banks, capital goods, consumer durables and IT companies were in good demand, their respective BSE sectoral indices gaining between 2.5 and 4 per cent. The PSU index closed flat. Twenty five of the 30 stocks in the Sensex pack advanced, while five declined. Seventy five of the BSE-100 stocks advanced. Volatility feared The markets may show higher volatility if there is a fractured verdict and the possibility of a stable political formation withers, said analysts. NSEs volatility index closed at 49.64 just below the closely watched 50 mark indicating prospects of high volatility in the near term. Todays rally consisted more of cash based buying rather than any activity in the futures segment, said Mr Siddarth Bhamre, Fund Manager-Derivatives & Equities, Angel Broking Ltd. With the election results still very uncertain, investors are not willing to carry forward their positions and so they are squaring off their positions during the past one week, he said. Investors who want to take positions in the market are preferring to take exposure in the options segment, as they have to pay only a small proportion of the contract value in the options segment, added Mr Bhamre. http://www.thehindubusinessline.com/2009/05/16/stories/2009051652060100.htm Last Financial closing
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PLEASE NOTE text matter of each news item. NURC News Update -- AUTOMOBILES News on Indian Auto Industry. Copyright 1999 NURC MediaNext Pvt. Ltd. This update purports to be a compilation of the top stories for the day in the leading Indian and International dailies, websites and other information sources and NURC MediaNext Pvt. Ltd. cannot and does not vouch for their authenticity. NURC MediaNext Pvt. Ltd. cannot be held responsible for any loss(es) arising out of or incidental to the use of this News Update. Reproduction or redistribution without express permission of NURC MediaNext Pvt. Ltd. is strictly prohibited and is a violation of the subscription agreement. Such instances will result in immediate cancellation of subscription to the Service without any refund for the remaining period at the sole discretion of NURC MediaNext Pvt. Ltd. For any comments, questions or subscription details, please contact: NURC MediaNext Pvt. Ltd. Director Sapna Kulshrestha Mo: 9810975257 Client Service Mona Mo: 9958949710 Marketing Rashmi Khandelwal Mo: 9811709447 Telephone : +91-11-64603361 / 43062412 / 22626650 ****************************************************************************** | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
This message sent from Sundaram Clayton Ltd. may contain information (Including attachment) that is non-public, proprietary,privileged,confidential and intended only for the use of individual or entity to which it is addressed. If you are not the intended recipient and received this email by mistake,you are hereby otified that any use of this information, distribution,retransmission,dissemination
or copying is unlawful and strictly prohibited.You are advised to delete this email from your system immediately.
Posts
No comments:
Post a Comment