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| INDUSTRY Auto majors post double-digit growth Tata Motors May sales down 13.26% Why must we always live our lives to western standards? INTERVIEWS/FEATURES GM India is no affected, says company GM India assures its there for you Its business as usual, says GM India chief Fiat to position Grande Punto in premium small car segment Skoda announces management changes Renault may be prompted to revive Chennai car project COMMERCIAL VEHICLES Daimler trims heavy trucks plan Ashok Leyland plans CNG vehicles CONSTRUCTION & AGRI MACHINERY Suzuki motorcycle sales up 17.42 pc in May TVS Motor May sales up, eyes double digit FY10 growth Yamaha Motor sales rise 82% in May COMPONENTS Impact minimal, says Sundram | ALLIED INDUSTRIES Natural rubber output falls 10% as dry weather lowers yield FINANCE & INSURANCE LUBRICANTS & ALTERNATIVE FUELS INTERNATIONAL NEWS GM, Chrysler bankruptcies may cost quarter million jobs: report Dow gets shake-up as GM, Citi kicked out of average Investors wary of ride in new General Motors Chrysler gets nod to sell assets to Fiat-led group GM bankruptcy has no effect on Saab: CEO Ford Motor seeks to gain amid GM's pain: Report The 31-year-old in charge of dismantling General Motors ECONOMY & FINANCE
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| INDUSTRY Go To Top New Delhi: Galloping sales in rural India allowed largest car maker Maruti Suzuki and largest two wheeler maker Hero Honda to record high double-digit growth year-on-year in May, while other players coped with tough market conditions. But, other car makers saw subdued sales in May. Sales by Korean car maker Hyundai dropped 4% to 23,503 units, though higher exports in May pushed up cumulative growth to 8.36% to 43,628 units. Utility vehicle maker Mahindra & Mahindra sales fell 14% to 13,047 units in May with Logan sedan sales dropping almost half to 427 cars in May compared with 977 cars sold in the same month last year. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved" AUTO MAJORS POST DOUBLE-DIGIT GROWTH Chanchal Pal Chauhan The Economic Times (Web & Print Edition) New Delhi: Market leaders in the passenger car and two-wheeler segments continued to record high double-digit growth in May over the same month last year even as other players fought tough market conditions. Largest car maker Maruti Suzuki Indias (MSI) sales increased 10.4% to 70,785 cars and the largest two-wheeler maker Hero Hondas sales jumped 23% to 3.82 lakh units in May 2009 on the back of increased demand from rural markets. Both the market leaders have started separate marketing initiatives for such markets for incremental numbers. Our share of rural sales have reached double digit. It has gone up to 10% of the total sales from 3.5% two years ago. This market is buoyant and now even urban markets are showing increased demand and higher offtake in sales, MSI executive officer (sales and marketing) Mayank Pareek said. While Hero Honda plans to increase its activities in small markets with most of its new sales points coming in operations in such places. Going forward, we will continue our effort to reach out to customers spread across the semi-urban and upcountry markets, Hero Honda senior VP (marketing & sales) Anil Dua, said. The company would increase its network to 4,000 sales touch points by the end 2009 from the existing 3,500 touch points. Other car makers performance remained subdued in May. Korean car maker Hyundai recorded 4% fall in car sales to 23,503 units, though higher exports in May pushed up cumulative growth to 8.36% to 43,628 units. Tata Motors sales dropped 22% to 15,388 vehicles. General Motors, which declared bankruptcy for its North American and Canadian operations on Monday and operates through a wholly-owned subsidiary in India reported a 7% drop in sales to 5109 cars in May. Utility vehicle maker Mahindra & Mahindra sales fell 14% to 13,047 units in May with Logan sedan sales dropping almost half to 427 cars in May compared with 977 cars sold in the same month last year. Analyst tracking the auto industry said companies with large exposure to semi-urban and rural markets have benefited with high sales on the back of robust agriculture produce this year. Entry into this new market is propelling high growth for big players with regular growth in sales. Even niche-players like BMW is entering smaller cities and markets to generate incremental sales. With a normal monsoon expected this year we are looking at robust performance by some companies, said an auto analyst with Morgan Stanley. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" Hindustan Times (Web & Print Edition), See this story in: Business Standard (Web & Print Edition), The Financial Express (Web & Print Edition), The Times of India (Web Edition), The Tribune (Web Edition), The Pioneer (Web & Print Edition), Deccan Herald (Web Edition), Business Standard (Web & Print Edition), Daily News & Analysis (Web Edition), The Indian Express (Web & Print Edition)
Maruti beat all expectations including its own for the second straight month, by posting a double-digit growth. The company's domestic sales grew 10.4 per cent at 70,785 units even as its closest competitors Hyundai and Tata registered declines. Hyundai which was subject to a mini-strike in the later half of the month saw domestic sales decline by 4 per cent at 23,503 units while Tata Motor's sales slid by 20 per cent at just 15,388 units. Utility vehicle major Mahindra and Mahindra which had also witnessed protracted labour unrest at its Nashik plant, also saw its sales decline by over 3 per cent. The company though said that the strike had no impact on demand for its vehicles. "We do not expect the strike to have any impact on our annual plan," said Rajesh Jejurikar, Chief of Operations, Automotive Sector, Mahindra & Mahindra Ltd. "Moreover a lot of the loss of production due to the strike will be made good by the cancellation of the scheduled block maintenance closure between June 1-6, 2009. In the two wheeler segment, Hero Honda continued to lead industry growth with a 22.5 per cent rise in sales at 382,678 units. TVS Motor, Yamaha and Suzuki also posted growth during the month strengthening the rebound for the sector. Our policy to consistently refresh our products, aggressively expand network and explore new markets has been the hallmark of our consistent growth month after month," said Anil Dua, sr. Vice-President (Marketing, Sales & Customer Care), Hero Honda Motors Ltd. "Going forward, we will keep up our relentless effort to reach out to customers spread across the semi-urban and upcountry markets. http://business.rediff.com/report/2009/jun/01/maruti-sales-up-in-may.htm http://www.financialexpress.com/news/auto-sales-set-to-revive-as-bikes-zoom-ahead/469744/2 http://www.tribuneindia.com/2009/20090602/biz.htm#4 http://www.dailypioneer.com/180134/Overall-auto-sales-positive-in-May.html http://www.deccanherald.com/content/5791/auto-majors-may-sales-show.html http://www.business-standard.com/india/news/auto-sales/-rough-ride-continues/359849/ http://www.dnaindia.com/report.asp?newsid=1260954 http://www.indianexpress.com/news/automobile-sales-a-mixed-bag-in-may/469800/ TATA MOTORS MAY SALES DOWN 13.26% PTI See this story in: Business Standard (Web Edition), The Times of India (Web Edition) New Delhi: Auto maker Tata Motors reported a 13.26 per cent decline in its total sales at 40,916 units in May compared with 46,339 units in the same month last year. The homegrown firm's total passenger vehicle sales in the domestic market stood at 15,388 units in May as against 19,234 units in the same month last year, a decline of 20 per cent, the company said in a statement. The company's exports in May plummeted by 47.30 per cent at 1,804 units compared with 3,423 units in the same month last year, it added. 'Indica' reported sales of 10,006 units, up 3 per cent over May, 2008, Tata Motors said. 'Indigo' family, however, recorded sales of 2,832 units last month, a fall of 37.6 per cent over the same month last year. 'Sumo' and 'Safari' accounted for sales of 2,550 units, a decline of 49 per cent compared with May, 2008. In the commercial vehicles segment, sales in May in the domestic market stood at 23,004 units compared with 23,682 units sold in the same month last year, down 2.86 per cent. Light commercial vehicles sales during the month were at 14,380 units, a growth rate of 20 per cent over the last year, while medium and heavy commercial vehicle sales stood at 8,624 units, down 27 per cent compared with May, 2008. http://www.business-standard.com/india/news/tata-motors-may-sales-down-1326/63436/on WHY MUST WE ALWAYS LIVE OUR LIVES TO WESTERN STANDARDS? R Vaidyanathan Daily News & Analysis (Web Edition) A financial newspaper recently carried a report on how car makers design their vehicles using data on physical attributes of users. Interestingly, such data has never been available for India. "Indian and foreign car makers sold 1,551,880 cars, and utility and multi-purpose vehicles in India last year, but none of these was made for Indians. Car makers design their vehicles using data on physical attributes of users. Such information, called anthropometric data, includes details such as height, weight and key physical specifications of people who are likely to drive or be driven around in the car. In the absence of this data, which has to be collected on the basis of a study of the Indian population, car makers such as Maruti Suzuki India, Mahindra and Mahindra and Tata I do not know how the American size of 6 ft and 75 kg suits Indian drivers in terms of brake and clutch operations. The report suggests that such data on Indians is being collected now. In a similar vein, but with much more disastrous effect, the condoms available in India are not appropriate for Indians since they are made for international sizes. I had mentioned in an article in 2007 how a survey of more than 1,000 men in India --- according to BBC and covered in many Indian newspapers --- in 2006 had concluded that condoms made according to international sizes were too large for a majority of Indian men. The survey had found that more than half the men measured had penises shorter than international averages. This has led to a call for condoms of mixed sizes to be made more widely available in India. The two-year study conducted by the Indian Council of Medical Research using 1,200 volunteers from all parts of India had their penises measured precisely, down to the last millimetre. The report suggested that the sample was representative of India as a whole in terms of class, religion and urban and rural dwellers. It was found that nearly 60% of Indian men have penises 3-5 centimetres shorter than international standards used in condom manufacture. The study concluded there was an obvious need for custom-made condoms, as most of those currently on sale were too large. This is a serious issue due given the failure rate on family planning and HIV related issues. Yet, there has been no report to suggest the situation is any different even. Another area where we have not developed our own standards is in readymade garments for men and women. We have European numbers and American sizes, but none for Indians. That is the reason for the ill-fitted shirts and trousers into which Indian men try to get into. Unfortunately, even after more than 60 years of independence and 20 years of globalisation, the situation does not seem to have changed. Every time I buy a coat I try to "fit myself in to it" instead of getting a coat which fits me. The picture regarding inner wear is more problematic for both men and women since US standards are totally useless in our context. The same is the issue with footwear --- both shoes and chappals. Hurting shoes is a part of our day-to-day living. The other issue is regarding the use of first name, middle name and surname. Many of us do use only one name and it is not considered as "universal standard". But the forms are designed for global standards and hence my father or village name is used as my surname and everyone in foreign countries calling me by my father's or village name. We need to explain that in many parts of India we do not have this surname business. Still, there is significant need to create Indian standards in many products/ processes for different uses. These are the ones which affect our day-to-day living. Standards and measurements specific to Indians will give us a sense of pride. Who won't be happy if in a London store or Singapore mall they are asked about Indian size 8 or 9 for shoes or Indian size 38 for shirts? It might be argued that given our heterogeneity it is not easy to develop common standards, but that does not seem to be an acceptable argument. The market is large and we are as much heterogeneous as perhaps the enlarged EU. The cost of developing standards may be another issue. But a large number of businesses can pool their resources and conduct or finance conducting such studies. Fortunately, majority of Indians burn their dead. Otherwise, coffins of Japanese standards would be the norm to suffer even after death! It is a shame that after more than 60 years of Independence, we are yet to develop standards for our day-to-day living, even though we claim to be becoming a global power. Blame it on our colonial genes to carry on globalised condom sizes, ill-fitting pants and oversized cars. Will we ever have yardsticks entirely our own? The writer is professor of finance and control, Indian Institute of Management -Bangalore, and can be contacted at vaidya@iimb.ernet.in. Views are personal. http://www.dnaindia.com/report.asp?newsid=1260928 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| CARS, SUVs, MUVs Go To Top The Times of India (Web & Print Edition) New Delhi: Car sales moderated in May with market leader Maruti witnessing a double digit growth, while others reporting a decline. Maruti said sales in the domestic market grew 10.4% at 70,785 units against 64,143 units in May 2008. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://timesofindia.indiatimes.com/Business/Car-sales-moderate-in-May/articleshow/4605878.cms MARUTI SALES UP 15.75% IN MAY New Delhi: Car maker Maruti Suzuki India Ltd has reported a 15.75% jump in the total sales in May at 79,872 units as against 69,001 units in the same month last year. PTI See this story in: The Hindu Business Line (Web Edition) New Delhi: The country's second largest carmaker, Hyundai Motor India Ltd (HMIL), on Monday reported a 4.11 per cent fall in domestic passenger-car sales during May at 23,503 units, from 24,510 units in the same month of 2008. The company's cumulative sales (including exports) during May were up 8.36 per cent at 43,628 units against 40,261 units in the same month a year ago, HMIL said in a statement. Exports for the month stood at 20,125 units against 15,751 units during the same month last year, a rise of 27.77 per cent. HMIL sold 39,864 units of hatchbacks Santro, Getz Prime and i10, 3,735 units of Accent and Verna, 27 units of Sonata Transform and two units of its SUV Tucson during May. Our cumulative sales growth is driven by the demand for our cars from the overseas market. EU countries had taken the initiative of reviving auto sales by introducing various incentives like the scrappage incentive,'' HMIL Senior Vice-President (Marketi ng and Sales) Mr Arvind Saxena said. Due to higher demand by the European countries, the company was forced to adjust our domestic production to address the needs of this unique market opportunity'', he added. - http://www.thehindubusinessline.com/blnus/02011396.htm GM INDIA IS NO AFFECTED, SAYS COMPANY PTI See this story in: Business Standard (Web & Print Edition), The Hindu (Web Edition), Deccan Herald (Web Edition), The Pioneer (Web & Print Edition), The Telegraph (Web Edition), Asian Age (Web & Print Edition), The Times of India (Web & Print Edition), The Hindu Business Line (Web & Print Edition), The Financial Express (Web & Print Edition) New Delhi: General Motors India, the Indian subsidiary of the bankrupt US car major, said its operations in the country will remain unaffected and will go ahead with its planned launch of two more cars in 2009. "GM India operations are not included in the US filing for Chapter 11. Consequently, all GM India dealers, warranty and customer support services will remain unaffected and continue to function as normal," General Motors India said in a statement. The company said it would go ahead with the launch of its luxury sedan Chevrolet Cruze, besides introducing a "mini car" in the Indian market by the end of this year. "We are committed to ensuring that our customers continue to receive top-notch sales, service, spare parts and warranty coverage experience. Our dealers will also continue to receive all our carlines, while our suppliers will continue to work with us to supply parts and components for our cars," GM India President and Managing Director Karl Slym said. The company would continue to produce its vehicles from the two facilities in Talegaon and Halol, which together have an annual manufacturing capacity of 2.25 lakh units, he added. "We have no intention to modify our products, brand or other business plans, including new product launches -- the all new Chevrolet Cruze from our mother plant in Halol and an all new Chevrolet mini car from our new state of the art plant at Talegaon," Slym said. In order to contribute to GM India's long-term viability and the bottom-line, the company would pursue its business aggressively, he added. The once largest carmaker of the world started its India operations in 1994 by forming a 50:50 joint venture with Hindustan Motors. It became the wholly-owned subsidiary of the US firm in 1999. "Till 1999, we had invested $19 million in India. Our investment went up significantly after 1999 and it is over $1 billion," GM India Vice President P Balendran said. The company said it has so far invested over Rs 5,000 crore in setting up and strengthening GM India's operations in the country. It currently employs over 4,000 people. "We are deeply committed to this market, our customers, suppliers, dealers and all other stakeholders to continue our rapid story of successful growth in India. We are not going anywhere and we are here to stay for the long term," Slym said. Besides, the company would launch LPG and CNG variants of its current products in the coming months. GM India manufactures the Optra Magnum, Aveo, SRV, Aveo U-VA, Spark, Tavera and Captiva for the Indian market. http://www.business-standard.com/india/news/gm-india-is-no-affected-says-company/63435/on http://www.hindu.com/2009/06/02/stories/2009060260661800.htm http://www.deccanherald.com/content/5787/no-impact-us-says-gm.html http://www.dailypioneer.com/180145/India-operation-not-affected.html http://www.telegraphindia.com/1090602/jsp/business/story_11051402.jsp http://www.asianage.com/presentation/leftnavigation/news/business/no-impact-on-gm-india.aspx http://www.thehindubusinessline.com/2009/06/02/stories/2009060251320200.htm http://www.financialexpress.com/news/bankruptcyhit-gms-india-ops-unaffected/469707/ GM INDIA ASSURES ITS THERE FOR YOU Lijee Philip The Economic Times (Web Edition) Mumbai: With the North American operations of car major General Motors (GM) filing for bankruptcy, its Indian subsidiary has been busy firing-fighting to send out the message that all is well. The company has posted some of its key representatives across 35 cities to handle any fear or apprehension that the customers may have on the future of GMs operations here in India. ITS BUSINESS AS USUAL, SAYS GM INDIA CHIEF Nandini Sen Gupta & Abhishek Gupta The Economic Times (Web & Print Edition) Anxious customers, worried dealers, antsy vendors and a 4,000-strong workforce wondering if they still have their jobs. General Motors India has a lot of confidence-building to do in the wake of its iconic parent filing for bankruptcy protection. In a chat with ET Now, GM India president and CEO Karl Slym attempted to allay fears about his company and emphatically stated that its business as usual for him and his team. Excerpts: FIAT TO POSITION GRANDE PUNTO IN PREMIUM SMALL CAR SEGMENT PTI See this story in: The Hindu Business Line (Web Edition), The Financial Express (Delhi Print Edition) New Delhi: Car maker Fiat India on Monday said it will position its hatchback Grande Punto, which will be launched in both petrol and diesel variants on June 17, in the upper side of the small car segment. Fiat India Automobiles Ltd (FIAL), a 50:50 joint venture between Italy-based Fiat SpA and domestic auto major Tata Motors, plans to position the car in the premium hatchback segment along with Maruti Suzuki's Ritz, Hyundai's i20, Skoda's Fabia and to be launched Honda Siel's Jazz, the company said in a statement. The company, however, did not disclose the price of Grande Punto, which was first launched in Europe in 2005. Grande Punto will roll out from the companys state-of-the-art plant at Ranjangaon (in Maharashtra) which also manufactures Fiats Linea and Palio,'' it added. The localisation content of components of the car would be increased up to 85 per cent by the end of this year, it added. The company is also working to ensure that the car is supported through a robust Tata-Fiat dealer network comprising of 100 sales and service outlets by time of launch,'' it said. FIAL was originally incorporated in 1997 and the definitive agreement was signed in 2007. http://www.thehindubusinessline.com/blnus/19011592.htm http://www.tribuneindia.com/2009/20090602/biz.htm#3 SKODA ANNOUNCES MANAGEMENT CHANGES PTI See this story in: Business Standard (Web & Print Edition), Daily News & Analysis (Web Edition) Mumbai: Car maker Skoda Auto India has announced changes in its management, with Karsten Bogun, Managing Director, Commercial Affairs, retiring from the company to take up new responsibilities as the Chief Financial Officer of the VW Braunschweig plant in Germany. This comes into effect from, a company release here said. Bogun joined Skoda Auto India in December 2006 and played a vital role in the company's financial sphere. http://www.business-standard.com/india/news/skoda-announces-management-changes/359845/ http://www.dnaindia.com/report.asp?newsid=1260830 RENAULT MAY BE PROMPTED TO REVIVE CHENNAI CAR PROJECT Murali Gopalan The Hindu Business Line (Web & Print Edition) Mumbai, June 1 French automaker Renault, which had frozen its Chennai car project owing to the global slowdown, could now be compelled to revive it sooner than it expected to. Nissan, its global ally, is incidentally, readying its own assembly line in the same plant for the launch of two sub-compact cars codenamed the X02A and X02B scheduled to debut in 2010 and 2011. Top sources say Renaults decision could be prompted by its Chief Executive Officer (who also heads Nissan), Mr Carlos Ghosns assertion last Friday that the time had come to work on greater synergies with Nissan worldwide. A beginning will be made this year in Brazil and South Africa where there will be cross-production synergies between the two companies. As for India, and specifically Chennai, Renault will have to think of an appropriate product from its own stable that can be built on the Nissan assembly line. How soon this can be done remains to be seen though it is emerging rather clearly that the plan will have to be put on the fast track now. Small car market Renault had planned to manufacture derivatives of the Logan sedan, now being assembled in Nashik, in an exclusive assembly line in the Chennai facility. These included the Steppe station-wagon and the Sandero hatchback. The company, subsequently, decided that the Sandero would be a better bet given the potential of Indias small car market. Once the Chennai plan was deferred, talks were held with its local partner, Mahindra & Mahindra to explore the option of rolling it out of Nashik. After all, the plant was lying underused because of the tepid market response to the Logan and it would have only made more sense to include another product like the Sandero. Nothing concrete emerged from the talks, and sources say the biggest stumbling block boiled down to the economics of manufacturing the small car. Will Renault now look at manufacturing the Sandero on the Nissan assembly line in Chennai? This is not a decision that can be made overnight. The company will have to revisit its product portfolio, check out which of these would be appropriate for the country and will also fit in with the Nissan line. Most importantly, localisation will be the biggest concern in a price-sensitive market like India, sources said. Global alliance Last Friday, Renault and Nissan announced plans to expand the scope of their global alliance. This would involve increasing their joint manufacturing operations and co-operate more on platforms, powertrains, vehicle engineering, logistics and R&D activities. Over the last decade, we used the alliance to develop win-win synergies between Renault and Nissan, and that approach worked well when both were profitable and growing. We have to move faster. Seeking synergies is no longer optional, but mandatory, Mr Ghosn said in the statement. Renault and Nissan are, of course, involved in another project in India with Bajaj Auto for the ULC (ultra low-cost) car scheduled to be launched from a plant near Pune in 2011. http://www.thehindubusinessline.com/2009/06/02/stories/2009060251690300.htm | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| COMMERCIAL VEHICLES Go To Top PTI See this story in: Daily News & Analysis (Web Edition) Mumbai: Mahindra & Mahindra (M&M) said on Monday its domestic sales in May was 16,581 units against 19,296 units in May 2008. "In spite of the recent shut down at our Nashik plant, we clocked impressive sales number of 16,581 units in May 2009 reflecting a positive and healthy demand for our products," M&M Chief of Operations Rajesh Jejurikar said in a release. It sold 12,620 utility vehicles in the reporting month against 13,048 units in May 2008. It sold 2,703 three wheelers against 3,708 units in may 2008. It sold 427 Logans and 831 LCVs against 1,531 Logans and 1,009 LCVs a year ago. Its total sales including exports stood at 16,866 vehicles in May 2009 against 20,653 vehicles in May 2008. The company's domestic tractor business witnessed growth in May. It sold 12,870 tractors against 8,825 in May 2008, a jump of 46 per cent. Total sales including domestic and exports stood at 13,500 units against 9,470 for May 2008, a jump of 43 per cent. http://www.dnaindia.com/report.asp?newsid=1260855 DAIMLER TRIMS HEAVY TRUCKS PLAN Sindhu Bhattacharya Daily News & Analysis (Web Edition) New Delhi: Daimler AG, the world's largest truck maker, appears to be scaling down plans for making light, medium and heavy duty trucks in India. Now, the first trucks will roll out of its Chennai plant in 2011, against the earlier deadline of 2010. Also, against the initially planned production capacity of 70,000 units per year, the German major may begin with just 6,000 units. According to sources, 3,000 units each of the 9 tonne and 12 tonne truck range would be produced at Chennai in 2011. And though production levels would be increased substantially each year, even the 50,000 unit mark would be crossed only by 2016. The drastic reduction in production targets comes on the back of Daimler's joint venture with the Hero Group falling apart last month. The Hero Group walked away from the partnership citing tough economic conditions and its inability to put in the required investment in a project of such large scale. "For Daimler Trucks, India is more than just a market. It is the key to a completely new generation of products. However, we have to realise that the economic crisis does not pass India without any impact. But this gives us more time since Daimler Trucks will not position trucks in an economic downturn," a Daimler spokeswoman said from Stuttgart. Though she declined to reveal the new production figures, the spokesperson said the company would still produce trucks for the domestic volume segment and that exports would be considered only later. Earlier, the Daimler Hero partnership was to invest over Rs 4,000 crore in establishing this JV, but there is no clarity now on how much of this amount Daimler would bring in on its own to India. The Hero Group is in the process of selling back its 40% stake in the JV to Daimler and once the separation is complete, the venture would be renamed. To a question on Daimler looking out once again for a suitable Indian partner, the spokeswoman said "We are open for a new partner but at the moment we are not in negotiations with possible partners." She also clarified that as of now, there was no plan to merge the Actros truck business with the new venture. At present, the passenger car arm of Daimler, Mercedes-Benz India, is also selling special applications of Mercedes-Benz trucks (Actros, which are mainly used in the construction industry) independently. http://www.dnaindia.com/report.asp?newsid=1260916 ASHOK LEYLAND PLANS CNG VEHICLES Piyush Pandey & Sachin Dave The Economic Times (Web Edition) Mumbai: Hinduja Group's flagship Ashok Leyland is planning to develop heavy vehicles that run on compressed natural gas (CNG) as the availability of gas is expected to double this year with gas flowing from Reliance Industries' Krishna Godavari basin. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://economictimes.indiatimes.com/News/News-By-Industry/Auto/Automobiles/Ashok-Leyland-plans-CNG-vehicles/articleshow/4605867.cms | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| 2/3 WHEELERS Go To Top PTI See this story in: The Hindu Business Line New Delhi: The country's largest two-wheeler maker, Hero Honda Motors Ltd (HHML), on Monday reported a 22.52 per cent jump in its total sales in May at 3,82,678 units, over 3,12,317 units in the same month last year. The strategic building-blocks that we put in place in the past couple of years have been key to our consistent growth month after month,'' Hero Honda Motors Senior Vice- President (Marketing and Sales) Mr Anil Dua said in a statement. The company would increase its network to 4,000 touch points by the end 2009 from the existing 3,500 touch points, he added. Going forward, we will therefore also keep up our relentless effort to reach out to customers spread across the semi-urban and upcountry markets,'' Mr Dua said. http://www.thehindubusinessline.com/blnus/02011196.htm SUZUKI MOTORCYCLE SALES UP 17.42 PC IN MAY PTI See this story in: The Economic Times New Delhi: Two-wheeler maker Suzuki Motorcycle India on Monday reported a 17.42 per cent growth rate in its sales in May at 12,734 units compared with 10,845 units in the same month last year. TVS MOTOR MAY SALES UP, EYES DOUBLE DIGIT FY10 GROWTH Reuters See this story in: The Economic Times, The Hindu Business Line, The Financial Express Mumbai: TVS Motor Co Ltd on Monday reported a 5 percent rise in two wheeler May sales and forecast a double digit growth in sales for FY10. India's third largest two wheeler maker said on Monday total vehicle sales for the month stood at 118,574 units compared with 112,770 units last year, helped by higher domestic motorcycle and moped sales. http://www.thehindubusinessline.com/blnus/02011392.htm YAMAHA MOTOR SALES RISE 82% IN MAY PTI See this story in: The Hindu Business Line New Delhi: Two-wheeler maker India Yamaha Motor on Monday reported a 82.38 per cent increase in sales during May at 16,952 units, from 9,295 units sold in the same month last year. With products like FZ-S, FZ-16 and YZF-R15, India Yamaha Motor has been able to register a unit volume growth despite market challenges,'' the company said in a statement. http://www.thehindubusinessline.com/blnus/02011696.htm | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| COMPONENTS Go To Top The Economic Times New Delhi: The bankruptcy filing by General Motors, the worlds largest carmaker till last year, may hit Indian auto component exports, lead to surplus capacity and payment delays in the domestic market, say industry experts. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved" The Hindu Business Line Coimbatore: Despite posting a modest increase in turnover in 2008-09 compared with the previous fiscal, the Coimbatore-based auto component manufacturer Pricol Ltd posted a substantial loss in the last fiscal. The company blamed loss of market share due to labour problems and high cost of raw materials for the loss. According to the audited financial results communicated to the BSE, net sales during the January-March quarter in 2008-09 was Rs 147.27 crore, compared with Rs 162.79 crore in the corresponding quarter in the previous year. The company posted a loss of Rs 9.68 crore from ordinary activities before tax and after providing for tax, the net loss stood at Rs 2.48 crore compared with a net profit of Rs 6.26 crore in the same period in 2007-08. For the whole year (2008-09), Pricol registered a turnover of Rs 614.07 crore which was slightly higher than Rs 606 crore recorded in the previous fiscal (2007-08). But the net loss in 2008-09 was a high Rs 30.02 crore compared to the net profit of Rs 19.06 crore in 2007-08. The EPS was in the negative (Rs -3.34) compared with Rs 2.12 (share face value Re 1) in the previous financial year. Pricol Ltds board of directors, at its meeting held on May 29, appointed Mr Vikram Mohan as an additional director. http://www.thehindubusinessline.com/2009/06/02/stories/2009060251420200.htm IMPACT MINIMAL, SAYS SUNDRAM When reports of General Motors filing for bankruptcy trickled in, it deepened the worries of Indian auto-component makers, who were already coping with low demand in the domestic market, reports ET NOW. But TVS group company Sundram Fasteners, which has been supplying radiator caps to GM for the last fifteen years is not worried as it has gradually reduced exposure to the carmaker over the years, a top official said. Last year, of our total sales of Rs 1,260 crore, GM contributed Rs 11 crore. At one point, the supply was huge but now its less than 1% of revenues. We have diversified our exposure over the years, Sundram Fasteners chairman and managing director Suresh Krishna said. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" TRF PACT WITH TATA CAPITAL, JASPER The Hindu Business Line Mumbai: TRF Ltd, a Tata group company, on Monday said it has entered into a shareholders agreement with Tata Capital Ltd and Jasper Industries Pvt Ltd to from a joint venture company - Adithya Automotive Applications Pvt Ltd. The venture is constituted with the objective of engaging in the business of automotive applications to provide end solutions through fabrications and machining for vehicles, TRF Ltd said in a filing to the Bombay Stock exchange. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ALLIED INDUSTRY Go To Top The Hindu Business Line See similar story in: The Hindu The company registered sales income of Rs 330.2 crore for the fourth quarter (Rs 304.6 crore), a growth of 8 per cent despite reduced lead prices. The company annual revenue, however, was up 21 per cent at Rs 1,583 crore (Rs 1,349 crore), and the net profit was lower at Rs 80.4 crore as against Rs 94.3 crore for the previous year, with the company providing Rs 32 crore for forex losses. The Managing Director of Amara Raja, Mr Jayadev Galla, in a statement said despite the slowdown in automotive sector, drop in lead prices and steep rupee depreciation which impacted our growth, the performance of the company during FY 2009 was satisfactory. The Governments economic relief measures, lower inflation and our focus on customers helped us to tide over the impact of slowdown in the economy. With appreciating rupee and relatively stable prices, we are cautiously optimistic of the companys growth, Mr Galla said. The board has recommended a dividend of Rs.0.80 per share of Rs.2 each. While the industrial batteries division continued its growth momentum, the automotive battery unit performance was in line with the industry growth. The company introduced motorcycle batteries during the year. http://www.thehindubusinessline.com/2009/06/02/stories/2009060251400200.htm http://www.hindu.com/2009/06/02/stories/2009060251151300.htm NATURAL RUBBER OUTPUT FALLS 10% AS DRY WEATHER LOWERS YIELD Bloomberg See this story in: Business Standard Natural rubber production in India, the worlds fourth-biggest producer, declined 10 per cent last month after dry weather lowered yield in the main growing region boosted latex output, the state-owned Rubber Board said. Production in May totaled 54,000 metric tonne, compared with 60,000 tonne a year earlier, Joseph Alexander, deputy director at the board said in a phone interview from Kottayam in Kerala, the nations biggest producer of the commodity. There was a drought-like situation in Kerala in April and May and that hurt yields, Alexander said. Output in the April-May period fell 9.4 per cent to 106,000 tonne, he said. India plans to boost rubber production and demand this year as demand revives on rising car sales. Output and consumption may total 867,000 tonne and 875,000 tonne respectively in the year to March 31, 2010, the Rubber Board said in April. Indian tyre makers more than doubled imports to 12,500 tonne last month as prices overseas were cheaper, said Alexander. Imports in the two months to May 30 were 20,500 tonne, compared with 10,800 tonne a year earlier, he said. Exports slumped to 750 tonne in the first two months of the year started April 1 from 5,000 tonne a year ago. Stockpiles rose to 178,000 tonne at the end of May, compared with 150,000 tonne a year earlier, Alexander said. India produced 855,000 tonne last year, up from 825,345 tonne a year ago and consumed 866,000 tonne, according to the board. http://www.business-standard.com/india/news/natural-rubber-output-falls-10-as-dry-weather-lowers-yield/359784/ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FINANCE & INSURANCE Go To Top The Hindu Business Line Mangalore: Karnataka Bank Ltd has signed a memorandum of understanding (MoU) with Mahindra & Mahindra Ltd (Swaraj Division) for financing purchase of tractors, power tillers, vehicles and other farm equipment. A bank release said here on Monday that finance will be extended under the KBL-Swaraj Sarathi Scheme. The customers availing themselves of finance under the MoU will get an additional benefit of Rs 4,000 per tractor. The tractor financed under the scheme will carry a warranty for one year from the date of sale or 1,000 hours of usage from the date of sale, whichever is less. Mr N. Upendra Prabhu, General Manager of the bank, and Mr Mahesh Kaushal, Senior Vice-President, Finance, Mahindra http://www.thehindubusinessline.com/2009/06/02/stories/2009060251300600.htm | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LUBRICANTS & ALTERNATIVE FUELS Go To Top PTI See this story in: The Economic Times New York: Crude oil prices soared above $68 a barrel for the first time in seven months, boosted by higher Chinese output, a weak US currency and rising equity markets, traders said. "The increase is not unique to the oil sector, it affects all raw materials. The investment funds in particular are investing in commodities as a protection against the dollar or to manage the fears of inflation," he said. http://economictimes.indiatimes.com/Oil-soars-above-68-to-seven-month-high/articleshow/4606494.cms
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| INTERNATIONAL NEWS Go To Top Bloomberg See this story in: Business Standard, The Hindu Business Line, The Tribune,. Daily News & Analysis, The Hindu, The Pioneer, The Statesman, The Telegraph, Asian Age, Hindustan Times, The Indian Express, The Times of India, Yahoo India, Deccan Herald New York: General Motors Corp, the worlds largest carmaker until its 77-year reign ended last year, filed for bankruptcy protection in the US with a plan to create a 21st-century company that can compete in world markets. GM reported $82.3 billion in assets and $172.8 billion in debt. The US government will bankroll the transformation of the 100-year-old automaker, a victim of tumbling sales and higher gas prices. The US plans to convert much of its $50 billion of loans to a 60 per cent stake in the new entity. Todays filing in New York coincided with a deadline for GM to convince a government auto task force that it could reorganise out of court through debt and cost-cutting. Its a bit like the Titanic sinking, said Stephen Pope, chief global strategist at Cantor Fitzgerald in London. This is a step they should have taken more than a year ago, which could have put them in much better shape. GM is the largest manufacturer to file for bankruptcy, surpassing Chrysler LLC. Detroit-based GM plans to launch a new company in 60 to 90 days, armed with vehicles from its Cadillac, Chevrolet, Buick and GMC units for the US market. The court will supervise the sale or liquidation of unprofitable brands, such as Saturn and Hummer, and at least 11 unwanted factories. GM said it has more than 100,000 creditors, and that unsecured creditors will recover some assets in the reorganization. Company operations outside the US werent included in the petition. The case was assigned to US Bankruptcy Judge Robert Gerber in Manhattan, who also presides over the bankruptcies of Lyondell Chemical Co. and BearingPoint Inc. He presided over the bankruptcy of Adelphia Communications Corp as well. Marks a defining moment in the reinvention of GM, said company President and Chief Executive Officer Fritz Henderson. The economic crisis has caused enormous disruption in the auto industry. GM listed in its petition as top creditors Wilmington Trust Co, representing bondholders owed $22.8 billion; International Union, the United Automobile, Aerospace and Agricultural Implement Workers of America, owed $20.6 billion; and Deutsche Bank AG, representing bondholders owed $4.44 billion. The Unofficial GM Dealers Committee, which said it represents more than 6,000 GM dealers in the US, filed a notice that it will take part in the bankruptcy litigation. One idle GM facility in the US will be retooled to make small, fuel-efficient cars as part of an agreement with union workers, GM said May 29. GMs Saab unit is reorganizing in Sweden. The German government picked Magna International Inc, a Canadian car-parts maker, to buy GMs Opel unit. The GM Chapter 11 petition filed in the US Bankruptcy Court for the Southern District of New York makes the carmakers reorganisation the third-largest bankruptcy in US history, ranked by total assets listed in the initial filing, after Lehman Brothers Holdings Inc. and WorldCom Inc. Any suggestion that an American corporate icon like GM could file for bankruptcy would have been laughable a few years ago, said Lynn Hiestand, a lawyer specialising in restructuring with Skadden, Arps, Slate, Meagher & Flom LLP. Chryslers April 30 filing listed $39 billion in assets. The Auburn Hills, Michigan-based carmaker plans to transfer most of its assets to a new entity run by Italys Fiat SpA. Another bankruptcy judge in New York approved that deal last night. http://www.thehindubusinessline.com/blnus/10011920.htm http://www.tribuneindia.com/2009/20090602/biz.htm#1 http://www.dnaindia.com/report.asp?newsid=1260904 http://www.hindu.com/2009/06/02/stories/2009060260561800.htm http://www.dailypioneer.com/180147/Fall-of-a-titan-GM-files-for-bankruptcy.html http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=256427 http://www.telegraphindia.com/1090602/jsp/business/story_11051799.jsp http://www.asianage.com/presentation/leftnavigation/news/business/gm-drives-into-bankruptcy.aspx http://www.indianexpress.com/news/general-motors-files-for-bankruptcy/469123/ http://timesofindia.indiatimes.com/Business/GM-files-for-bankruptcy-/articleshow/4604498.cms http://business.rediff.com/report/2009/jun/01/general-motors-bondholders-clear-bankruptcy-plan.htm http://in.biz.yahoo.com/090601/137/batnw5.html http://www.deccanchronicle.com/business/gm-drives-bankruptcy-499 GM, CHRYSLER BANKRUPTCIES MAY COST QUARTER MILLION JOBS: REPORT PTI See this story in: Business Standard Washington: Bankruptcies of automakers General Motors (GM) and Chrysler could cost as many as quarter million people their jobs over the next year and a half, a media report says. According to a report in MarketWatch.Com, a publication of Dow Jones & Company, "If all goes according to plan, the bankruptcies of GM and Chrysler, which went bankrupt in late April, could cost about a quarter million people their jobs over the next year and a half." The report quoted a top researcher at the Center for Automotive Research, a non-profit research organisation funded in part by the auto industry as saying that "Whether GM's bankruptcy turns out to be a major or minor chapter in US economic history will depend greatly on how quickly and painlessly it emerges as a new company, ready to compete". In its reorganisation as it comes out of bankruptcy, GM would employ fewer workers, operate fewer plants and produce fewer cars, even in the best-case scenario. The MarketWatch report said that much of the required downsizing had already taken place as GM's position as the pre-eminent car maker in the world has eroded over the past three decades. "During that time, GM's US workforce has fallen from a high of 6,20,000 in 1979 to about 1,20,000 now," it stated. DOW GETS SHAKE-UP AS GM, CITI KICKED OUT OF AVERAGE Reuters See this story in: The Economic Times New York: General Motors and Citigroup were kicked out of the closely watched Dow Jones industrial average on Monday, marking a historic fall from grace for two once venerable American corporations. "We thought it was a fitting replacement for General Motors because Cisco with its products is really the pavement on the information highway and it's helping shape the 21st century much the same way automobiles shaped American culture in the 20th century," said John Prestbo, editor and executive director of Dow Jones Indexes. In the Dow industrials, the financial sector remains a little underweight after it was eviscerated by the financial crisis fallout. That is putting more prominence on energy companies Chevron and Exxon Mobil. begins on Tuesday, when it is expected to start trading on the Pink Sheets under a new ticker symbol, according to an analyst at Pink OTC Markets Inc. INVESTORS WARY OF RIDE IN NEW GENERAL MOTORS Reuters See this story in: The Economic Times Boston: When carmaker General Motors Corp rolls off the lot as a retooled company, US pension and mutual funds may not be there for the ride. The Obama administration's bankruptcy plans include splitting General Motors, an icon of American capitalism, into an "Old GM," where liabilities would be eliminated and debt restructured, and a "New GM." GM, known for its Cadillac, Chevrolet and Buick units, will lose its classification as a large, growing company -- which means that hundreds of fund managers who put about $294 billion into funds specializing in large-capitalized growth companies will skip GM when it eventually sells new shares. The company will also be dropped from all US stock indices, including the benchmark Standard & Poor's 500 Index, making it off limits to "index funds" that mimic market benchmarks by buying companies included in a specific index. Investors ranging from the California Public Employees Retirement System, the country's biggest pension fund, to giant mutual fund firm Vanguard Group, may want to avoid a replay of recent decades, when GM lost market share while costs rose. Thirty years ago, GM controlled roughly half of the U.S. auto market. Now it has about 13 percent. CHRYSLER GETS NOD TO SELL ASSETS TO FIAT-LED GROUP Reuters See this story in: The Economic Times New York/Detroit: A US bankruptcy judge approved the sale of substantially all of US automaker Chryslers assets to a group led by Italys Fiat hours before an expected bankruptcy filing by General Motors. GM BANKRUPTCY HAS NO EFFECT ON SAAB: CEO Agencies See this story in: The Economic Times Trollhaettan, Sweden: Sweden's Saab Automobile will be unaffected by its parent company General Motors filing for bankruptcy in the United States, Saab chief executive Jan-Aake Jonsson told media on Monday. FORD MOTOR SEEKS TO GAIN AMID GM'S PAIN: REPORT Agencies See this story in: The Economic Times New York: Ford Motors, one of the big three in the US auto industry, is planning to increase its market share at a time when its rivals, GM and Chrysler, are tackling bankruptcy and restructuring procedures. THE 31-YEAR-OLD IN CHARGE OF DISMANTLING GENERAL MOTORS Washington: It is not every 31-year-old who, in a first government job, finds himself dismantling General Motors Corp. and rewriting the rules of American capitalism. But that, in short, is the job description for Brian Deese, a not-quite-graduate of Yale Law School who never stepped foot in an automotive assembly plant until he took on his nearly unseen role in remaking the US automotive industry. Nor, for that matter, had he given much thought to what ailed an industry that had been in decline since he was born. A bit laconic and looking every bit the just-out-of-graduate-school student adjusting to life in the West Winghes got this beard that appears and disappears, notes Steven Rattner, one of the leaders of US President Barack Obamas automotive task forceDeese was thrown into the auto industrys maelstrom as soon as the election-eve parties ended. There was a time between 4 November and mid-February when I was the only full-time member of the auto task force, Deese, a special assistant to the president for economic policy, acknowledged recently as he hurried between his desk at the White House and the treasury building next door. It was a little scary. But now, according to those who joined him in the middle of his crash course about the auto makers downward spiral, he has emerged as one of the most influential voices in what may become Obamas biggest experiment yet in federal economic intervention. While far higher-profile members of the administration are making the big decisions about Detroit, it is Deese who is often steering them there. A month ago, when the administration was divided about whether to support Fiat SpAs bid to take over much of Chrysler Llc., it was Deese who spoke out strongly against simply letting the company go into liquidation, according to several people who were present for the debate. Brian grasps both the economics and the politics about as quickly as Ive seen anyone do this, said Lawrence H. Summers, the head of the National Economic Council, who is not known for being patient whenever he believes an analysis is subparor disagrees with his own. And there he was in the Roosevelt Room, speaking up vigorously to make the point that the costs we were going to incur giving Fiat a chance were no greater than some of the hidden costs of liquidation. Deese was not the only one favouring the Fiat deal, but his lengthy memorandum on how liquidation would increase Medicaid costs, unemployment insurance and municipal bankruptcies ended the debate. The administration supported the deal, and on Monday a federal judge handling the high-speed bankruptcy proceeding approved the sale of Chryslers best assets to the Italian car maker. Deeses role is unusual for someone who is neither a formally trained economist nor a business school graduate, and who never spent much time flipping through the endless studies about the future of the American and Japanese auto industries. He lives a dual life these days. He starts the day at a desk wedged just outside Summers office, where he can hear what young members of the economic team have come to know as the Summers bellow. From there, he can make it quickly to the press office to help devise explanations for why taxpayers are spending at least $50 billion on what polls show is a very unpopular bailout of the auto industry. Several times a day he speed-walks to treasury, taking a shortcut through the tunnel under the colonnade, near the kitchens. The other day he talked about how sharply perceptions of the industrys future changed after Obamas election. At the first meeting with Rick Wagoner, he said, referring to GMs recently deposed chief executive, they were in a very different place. He said publicly that bankruptcy was not a viable option. Its been a long process getting everyone to look at the options differently. http://www.livemint.com/2009/06/01215936/The-31yearold-in-charge-of-d.html | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Hindu Business Line Mumbai: The rupee touched a six-month high buoyed by strong gains in the domestic equities market and a weak dollar. Although there was a two-way movement, the strengthening bias for the rupee continues, said a forex dealer with a private sector bank. On Monday, the rupee opened at 47 and closed at 46.97 against Fridays close of 47.08. These levels were seen more than five months ago, the dealer added. But there was some intervention, probably by the RBI, whic h capped further gains by the rupee. There was not much demand for the dollar from importers or oil companies. In the overseas market, the dollar weakened against other major currencies. As the rupee has breached the 47 levels, it is likely to remain around 46.50-46.80, dealers said. http://www.thehindubusinessline.com/2009/06/02/stories/2009060251190600.htm The Hindu Business Line Mumbai, June 1 The Sensex and the Nifty recorded nine-month closing highs on Monday, their fourth consecutive day of gains. The Sensex closed at 14,840 and the Nifty at 4,529 both gaining 1.5 per cent. There is runaway enthusiasm at the new Cabinet composition at the Centre, said a senior official with SBICAPS. Independent investment analyst Mr. R Balakrishnan said this was the last leg of the current rally which valuations do not support. He said he had reservations about the nature of funds inflow through the FII route: nowhere do you see dilution of promoter stake through QIPs (qualified institutional placements) leading to a rise in stock prices. FIIs were net buyers of equities for Rs 280 crore and DIIs net sellers for Rs 197 crore. Trading was highly volatile; the Sensex touched a high of 14,907 soon after market opening but dipped 352 points to an intra-day low of 14,655 in the first one and a half hours of trade. http://www.thehindubusinessline.com/2009/06/02/stories/2009060252100100.htm Last Financial closing
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