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| INDUSTRY Automobiles: Speeding beyond control INTERVIEWS/FEATURES CARS, SUVs, MUVs Maruti to offer clean fuel cars soon GM's new small car at Rs 4 lakh to hit roads by year-end GM India sets store by new mini car, exports There is no impact on India; new cars are still rolling out: President & MD, GM India Ford gears up to invest Rs 2k cr in TN Ford looks at India, China to beat downturn blues Tax break for Toyota small car project Toyota Kirloskar launches Corolla Altis Sport Audi launches compact SUV Hogging the Limelight: BMW still ahead of Merc on Indian roads COMMERCIAL VEHICLES | ALLIED INDUSTRIES Anti-dumping duty likely on import of carbon black FINANCE & INSURANCE LUBRICANTS & ALTERNATIVE FUELS Oil close to $70 in Asian trade INTERNATIONAL NEWS GM to offer over $2.5 bn for Delphi buyout Mitsubishi rolls out zero-emission electric minicar ECONOMY & FINANCE Sensex in no mood for correction
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| INDUSTRY Go To Top See this story in: The Indian Express (Web Edition), The Times of India (Web Edition), Hindustan Times (Delhi Print Edition), The Financial Express (Delhi Print Edition) New York: Tata Motors hopes to offer the Nano, dubbed the world's cheapest car, in the United States within two years, its chairman said. "It will need to meet all emission and crash standards and so we hope in the next two years we will be offering such a vehicle in the US," Ratan Tata told a panel at the Cornell Global Forum on Sustainable Global Enterprise late Wednesday. The company plans to offer a European version of the car, which costs about $2,300, in 2011. Tata got the idea to make a car that poor people could afford while thinking about the motorbike and scooter riders who maneuver through the streets of Indian cities with their children on board. The four-seater car gets up to 65 miles per gallon (28 km per litre). Cheap labor helps to keep the price down. Tata said his company was also working to develop cars that run on fuels other than gasoline such as clean diesel, biofuels and batteries. The Nano debuted in showrooms in January 2008, but production was delayed by protests over land use where a plant was to be located. The cars will be available in India by July with a lottery to select the first 100,000 owners. http://www.indianexpress.com/news/tata-hopes-to-sell-nano-in-us/471663/ http://in.biz.yahoo.com/090604/137/batomr.html AUTOMOBILES: SPEEDING BEYOND CONTROL Shobhana Subramanian Business Standard (The Compass) Mumbai: Less than a month back industry watchers were wondering whether Maruti Suzuki would be able to sustain 70,000 units a month and whether Hero Honda would manage to grow by 8 per cent this year. Of course, auto stocks were climbing back from their March 2009 lows but opinion was divided on whether an Ashok Leyland would see an increase in sales of commercial vehicles this year. There were analysts who downgraded stocks such as Bajaj Auto annd Ashok Leyland after the reults. Defying fundamentals, the BSE automobiles index hit a 52 -week high on Friday to touch 4934. Its true the rest of the markets rallying too and rallying like theres no tomorrow, but its hard to explain intra-day rises of 5 per cent for Tata Motors, after the stock has already risen more than 200 per cent from its 52-week low, when volumes arent even back to 2007-2008 levels. Even a rise of 3 per cent for Ashok Leyland and Mahindra and Mahindra are confounding given that recent volume numbers have been nothing to write home about, although there may have been some improvement in the past few months. For sure, money is becoming cheaper and banks might just be willing open up the loan counters again. But its not as though the economy is headed for even a 7 per cent growth this yearthe consensus is somewhere at 6.5 per cent---and so its not clear yet that demand for trucks or three wheelers will bounce back so sharply. In fact, Rajiv Bajaj said recently that he wasnt sure consumer demand was really picking up that fast. And Tata Motors Ravi Kant too was circumspect when talking of the prospects for CVs this year saying the demand for the heavier trucks was still quite weak. Yes, Hero Honda has been doing brisk business but much of it is in the rural markets where consumers havent felt the pinch as much as their city cousins have. Also, its the smaller 100 cc bikes that comprise the bulk of Hero Hondas sales. though that really matt'een re-rated and the company is growing sales. Marutis valuations at around 17.5 times forward earnings too cant really be justified even if one believes that that macroeconomic recovery is round the corner. Also, subdued consolidated earnings for Tata Motors, courtesy possible losses at JLR, mean that the stock is clearly overpriced Rs 386---stand-alone earnings are expected to come in at around Rs12-13 per share, this year. Ashok Leyland trades at around 20 times forward earnings and doesnt deserve a multiple higher than 13-14 times at best. As for Bajaj Auto, its much too soon for the stock to get re-rated and the multiple of 17 times estimated 2009-10 earnings that it currently commands seems overdone. http://www.business-standard.com/india/news/automobiles-speeding-beyond-control/360233/ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTERVIEWS/FEATURES Go To Top Mumbai: Exploring the dynamic limits of a Rs 60 lakh car should not be done in front of a camera. I mean, it wont be nice to be photographed as you dump all that expensive glass and metal onto unforgiving rock and emerge from the mess with airbag dust all over you, right? The road surface at Isle of Man (that is what we call our favourite bit of accessible and twisty road on the outskirts of Mumbai) has been deteriorating over a period of time and there was loose gravel at almost all corners. I was giving a few runs for Pablo's Nikon and was getting progressively comfortable with the concept of carrying speed into corners. The new improved Audi A6 with a blown V6 had impressed me all morning with its prodigious torque. Then, as I hit a corner at near three-digit speeds, I let my eye shift from where I was supposed to be going to where Pablo was standing on top of a small hill. The car ran a little wide and on to loose stuff enough to unsettle the tail of the near two-tonner. The ensuing slide was spectacular enough to startle me if not long enough to be captured by the Nikon. The right dose of reflex-lock from me straightened the car but what happened after that was pure magic rather an act of Quattro, if you insist. Power from the offending wheels was taken away and sent to those with more traction and the big Audi emerged out of the corner carrying more speed than what it entered it with... and throughout the process my right foot remained planted. So there, in a little move, the new improved A6 reminded me why one should consider it over a BMW 5 or a Mercedes E Quattro! But the new flagship of the A6 range gets a spanking new motor and a host of small changes that makes this, a former World Car of the Year winner, an even more accomplished machine. Let's get closer. Externally, there are a few subtle changes which include the single-frame grille, redesigned bumpers and fog lamps, though the most noticeable feature is the now common LED strips and integrated running lights. New wheels are not as evocative as the ones in the past model and the changes at the rear are limited to a splash of chrome and a hint of a spoiler. And yes, more LEDs. Honestly, I like the blunt weapon image of the A6 especially when seen in darker hues and am glad the facelift has not tried to change much for change's sake. The interior of the A6 has been The Standard for quite some time now, and as mostly is the case with good design, it is all down to the details. The lounge concept is carried further with softer leather that pampers your elbows at least that is what I noticed the most. The test car came equipped with Bose speakers and even the local radio jockeys sounded good in it. Really. This mid-life facelift of the A6 means there will be four engine options for India two petrols and two diesels. The basic petrol engine is a new variant of the 2.8-litre FSI unit that is good for 220 bhp and features Audis valvelift system. The diesels are legendary TDI units that displace 2700cc and 3000cc respectively to develop 190 bhp and 240 bhp and 38 kgm and 50 kgm of torque respectively. Of course, we had to have a go in the very best of the species, which meant the top-of-the-line V6 petrol with a 3000cc heart and a rather healthy 290 bhp under its bonnet. This is a TFSI engine with the T now standing for force induction in general (and not just turbocharging) and in this case the car gets breathed on by a supercharger. The result, dear reader, is the reason why this road test report is a 1,000-word plus affair. Compared to the older 3.2 litre FSI engine, the new motor improves the power-to-weight, specific output and torque-to-weight characteristics of the A6. Typical of a supercharged engine, power delivery is spontaneous and 42 kgm of torque surges throughout a spirited acceleration run from 2500 to 4850 rpm. Despite the new car being heavier by 155 kg, the car accelerates to 100 kph in 6.6 seconds flat and can easily achieve the top speed of 250 kph (governed). As this surge of power is enjoyable day in-day out, the trade-in could be a bit of driveability. Rohin, our road tester, found progress through traffic jerky and he blamed it on the surge of power and throttle sensitivity, which for some strange reason, I never really noticed. What I did notice was the absence of keyless start and lack of paddle shifters. The latter is sorely missed in a car that is blessed with this er, super engine! Also, the test car came without the optional ride height adjustment a boon in our road conditions. I got a chance to sample an E 280 CDI just after I tossed the key of the A6 back and I have to say that the mid-size Mercedes rides better on Indian roads and more so, as experienced from the rear seat. And that is a critical fact that Audi India needs to address by sending this feedback straight to the R&D guys at Ingolstadt. It is a combination of the tyres and damping (Bridgestones in the test car) that results in the rear passenger being constantly told of the undulations of the road surface and it is something that can be sorted out. That said, the A6 is way too sportier a machine and those who enjoy their driving will actually appreciate the feedback sent to the driver through the seat of the pants. And again, when you approach a corner at three-digit speeds and find loose gravel at the apex, you will swear that the on-road price of Rs 58.8 lakh was justified. http://www.business-standard.com/india/news/blown-away/360185/ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CARS, SUVs, MUVs Go To Top Mumbai: The battle for market between two of the countrys largest car makers Maruti Suzuki and Hyundai Motors may well get into another round of mud-slinging due to claims made in an advertisement. Korean auto company Hyundai has used the findings and comments made by European auto magazines and auto experts to show Marutis newly launched hatch-back Ritz in poor light. Hyundai, in a web advertisement for its successful hatch-back i10, has made direct comparisons between the model and Maruti Ritz, using strong negative comments given by automotive experts. In addition, the Korean company in a newspaper advertisement also made comparisons between the equated monthly instalments (EMIs) payable on its range of models with that of just Maruti Suzuki models, highlighting the price advantage of Hyundai models. The web promotion by Hyundai carries 10 different reasons why buyers should go in for the i10 and not the Ritz. Titled The Ritz has no Glitz, Hyundais latest campaign against Maruti is reminiscent of its earlier similar campaign titled Xing ahead of the Swift, launched more than three years ago. Incidentally, both the models i10 Kappa and Ritz sport a similar capacity (1.2 litre) petrol engine, while costing Rs 4.05-Rs 5.30 lakh (ex-showroom Mumbai). Ritz also has a diesel variant, but the i10 comes only in petrol. An email questionnaire sent to spokespersons of Hyundai failed to elicit a reply. While a Maruti Suzuki spokesperson said that, so far, the company hasnt initiated any legal action against the advertisement, but is studying the material. Owing to a slump in demand for cars in the domestic market, manufacturers are compelled to focus on increasing their market share targeting each others market. Hyundais domestic sales saw a dip of 4 per cent in May at 23,503 units, while its April sales were only marginally better by 3.5 per cent at 22,247, as compared with the corresponding months of the previous year. MARUTI TO OFFER CLEAN FUEL CARS SOON Maruti Suzuki India said on Friday, the World Environment Day, it is working on introducing cleaner fuel CNG variants of its existing models to expand its offering in the alternative fuel technology. "Our initiatives for non-conventional clean fuel will take a step further in the coming times with factory fitted CNG options on several models," Maruti Suzuki India managing director and CEO Shinzo Nakanishi said. He, however, did not disclose details about the models, which are likely to be introduced in CNG variants. Nakanishi said the company's R&D units are currently working to upgrade MSI's car models to adopt the CNG version. "In terms of future technology that is still to come to India, newly launched Maruti Suzuki models A-star and Ritz meet the End of Life norms that are yet to be adopted in India. Progressively, we will make all Maruti Suzuki models ELV compliant by 2010," Nakanishi said. The company's Ritz, launched in May, was the first car in India to conform the Bharat Stage-IV emission norms. GM'S NEW SMALL CAR AT RS 4 LAKH TO HIT ROADS BY YEAR-END PTI See this story in: The Economic Times (Web Edition) New Delhi: Undaunted by its parent going belly up in the US, General Motors India on Friday said it will roll out a slew of models, including a small car priced at around Rs 4 lakh by this year-end. GM INDIA SETS STORE BY NEW MINI CAR, EXPORTS The Hindu Business Line (Web & Print Edition) See similar story in: The Tribune (Web Edition), Daily News & Analysis (Web Edition), Hindustan Times (Web & Print Edition), The Indian Express (Web Edition), The Pioneer (Web & Print Edition), The Hindu (Web & Print Edition), Asian Age (Web & Print Edition), The Telegraph (Web Edition), Rediffmail (Web Edition), The Times of India (Web & Print Edition), Business Standard (Web Edition) New Delhi: Dismissing concerns over its prospects in the domestic market, General Motors India on Friday said that the year 2010 will be big for the company. The Indian subsidiary of the troubled US automaker said that with the launch of its new mini car and exports kicking in, next year would be significant. It also calmed fears of the company facing funding problems to meet its engine plant requirement. The year 2010 will be big for us when we bring in a high volume car and exports will also start by the end of next year, said Mr Karl Slym, President and Managing Director, General Motors India, at the launch of LPG variant of Spark. This will cost Rs 3.52 lakh Currently, Spark is the largest selling model in General Motors portfolio in the country. With the new car, the company expects to boost volumes further. The company claims it to be to a brand new model which is not made in any country and will be available in both petrol and diesel variant. The new small car is likely to be made in Korea, India and at one of their European plants. To begin with, the company will export it to neighboring countries like Sri Lanka, Bhutan and Bangladesh where it already sells its existing models except Tavera. Mr Slym indicated that the company was eyeing Europe and major markets in Asia Pacific for exports. With the new compact car, exports could be 25 per cent of our domestic capacity, he said. This year capacity utilisation is expected to be at 30,000 units at Halol. Its installed capacity is 85,000 units. At the Talegaon plant, it will produce around 40,000 units of the total capacity of 1.40 lakh units. Its Cruze sedan which will be built at Halol will contribute 3,000 units during the current calendar year after it is launched in September. http://www.thehindubusinessline.com/2009/06/06/stories/2009060650470200.htm http://www.tribuneindia.com/2009/20090606/biz.htm#4 http://www.dnaindia.com/report.asp?newsid=1262369 http://www.indianexpress.com/news/gm-india-launches-spark-lpg-to-cost-rs-3.52-lakh/471858/ http://www.dailypioneer.com/181075/GM-India-plans-on-track.html http://www.hindu.com/2009/06/06/stories/2009060655351600.htm http://www.telegraphindia.com/1090606/jsp/business/story_11071137.jsp http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=256942 http://business.rediff.com/report/2009/jun/05/gm-india-launches-spark-lpg-at-rs-3-point-52-lakh.htm http://timesofindia.indiatimes.com/Business/India-Business/GMs-Rs-4-lakh-small- http://www.business-standard.com/india/news/gm-india-says-all-investments- THERE IS NO IMPACT ON INDIA; NEW CARS ARE STILL ROLLING OUT: PRESIDENT & MD, GM INDIA Gayatri Verma The Indian Express (Web & Print Edition) While GM in USA has filed for bankruptcy, Karl Slym, president and MD of GM India, speaks to Gayatri Verma on why India should put its faith in Chevrolet If GM India has always been safe from the effects of Chapter 11 bankruptcy, Why has the company not taken steps to boost customer confidence? Sales have fallen 21 per cent between January and April. I think until the 1st of June it was going to be speculation. I think now that weve seen exactly whats going to happen and the fact that GM in India is not part of the filing but part of new GM, thats when you can provide clarity and a new message. The most important thing we did was introduce the Chevrolet Promise, ensuring the consumers they will get three years of service and maintenance free of charge, and it was part of the package of the Spark. I think this was a right step. Is bankruptcy and the launch of the LPG Spark in the same week just a coincidence? Well that wasnt planned either so some of that sure is coincidence. But it also helps because now people can see there is no impact on India, new cars are still being rolled out. We did intend for it to be out in May or June. Given the Chevrolet brand is going to remain with GM, does that mean you will once again be able to depend on your parent company as a funding option? As far as the US operations are concerned, they have entered Chapter 11 and therefore we wont be taking any funds from them. We have three methods of funding internal accruals, local financial support and GMs global network of partners. Those three avenues remain open. What about capital expansion plans? All capital expenditure earmarked until 2010 has already been made. We will only look at further expansions after that time. What are your sales projections for the next two quarters? Interesting question, thank you for that. Last year, we grew at 10 per cent while the industry shrank at 2 per cent and this year Ive always said we should do something similar. Of course with an unknown industry outlook, it changes daily. Last year, we sold 65,702 units and this year I see a capacity utilisation of about 30,000 at the Halal Plant and 40,000 at the Talegaon Plant. What markets now become important for new GM? Where does India figure? The US will of course be key, but also China, where we are the market leaders, and India. Here our current market share is only about 3.6-3 per cent and our 2010 target is 10 per cent which I think is doable given the new launches we have lined up. What then is your India strategy? For this year, to grow ahead of the industry, and 2010 is really the year in which we will bring in high-volume cars. Our biggest handicap has been that when we entered the market we did not have a mini car which is the dominant segment here in India. We are sticking to our product launch schedule for 2009. The LPG Spark out is a foray into alternate fuels. The Chevrolet Cruz, will be out soon and there will be a Rs 4 lakh mini car positioned at the higher end of that segment out at the end of the year. These will also be manufactured in India. Are you looking at India as an export or an R&D hub or a real base of operations? When you use the word hub all of a sudden it got all of these connotations. It will have the ability to export vehicles and it does have an R&D teams in Bangalore and that is how it will remain. The fact that weve already put Rs 5,000 crore ($1 billion) and built a total manufacturing capability of 3,85,000 units in our plants which is well beyond domestic needs means we consider it an important focus area in the medium and long term for both domestic and export plans. http://www.indianexpress.com/news/there-is-no-impact-on-india-new-cars-are-still-rolling-out/472211/ FORD GEARS UP TO INVEST RS 2K CR IN TN Hemamalini Venkatraman The Economic Times (Web & Print Edition) Chennai: Downturn or not, the investment climate is intact in Tamil Nadu as committed projects in the automotive segment are on track. For another big project is in the offing for the DMK government, which has taken charge for the second consecutive time after the just-concluded elections.
Subhro Niyogi The Times of India (Web & Print Edition) See this story in: The Telegraph (Web Edition) Kolkata: Ford Motor Co is banking heavily on its subsidiaries in India and China to tide over the unprecedented crisis that has gripped American automobile manufacturers . "India is a great market to be in, particularly so at these challenging times. The $500 million funds injection to expand operations in the country is on schedule," Ford India vice-president (sales) Timothy Tucker said. The new investment increases Ford's total financial commitment in India to more than $875 million, and underscores its plan to elevate India as one of the strategic production hubs for small cars. In 2007, the company launched a small car production facility in Nanjing, China, for $510 million. http://www.telegraphindia.com/1090606/jsp/business/story_11071136.jsp TAX BREAK FOR TOYOTA SMALL CAR PROJECT The Hindu Business Line (Web & Print Edition) See similar story in: The Tribune (Web Edition), Daily News & Analysis (Web Edition), The Statesman (Web Edition), Business Standard (Delhi Print Edition) Bangalore: The Karnataka Government, on Friday, extended tax concessions of up to Rs 80 crore for a three-year period to Toyota Kirloskar, which is expanding its manufacturing facility at Bidadi on the citys outskirts. Toyota Kirloskar, as part of its expansion plans to set up a small and compact car manufacturing unit, would invest about Rs 3,200 crore, creating 2,000 jobs, the Home Minister, Mr V.S. Acharya told reporters after a Cabinet briefing here. The company, which already has a manufacturing facility, will get exemption from entry tax and other benefits for its expansion, Mr Acharya said. The incentive has come at a time when the company was considering sites outside the State for its small car project. According to company sources, the entry tax benefit will lead to a saving of 2 per cent of the total value of goods brought into the State. In value terms, it will lead to a saving of Rs 60-70 crore. The State Government is also in receipt of a proposal from Bosch Ltd to set up a Rs 400-crore automotive components facility near Toyota Kirloskars car plant in Bidadi. In what seems to be a concerted effort to welcome industrial investment, the State Government only a few days ago okayed 64 new projects, involving an investment of Rs 1,600 crore, including a Rs 19-crore proposal by Tata Communication for laying optical fibre cables in the city. The Single Window Clearance Committee also cleared a Rs 60 crore project proposal of VSL Steels Ltd and a Rs 22 crore project bid by Gujarat NRE Coke Ltd. The committee could not meet over the last few months, owing to the enforcement of the model code of conduct in the run-up to the general elections. The State Government is likely to clear projects worth Rs 12,000 crore next week, which includes those in energy, food processing, iron and steel, information technology, engineering and hospitality. This includes a project proposal by the National Thermal Power Corporation to set up a 4,000 MW thermal plant at Kudigi in Bijapur district. Some of the major projects that could be cleared soon are: a market chain of fruits and vegetables by Premium Farm Fresh of the Lalit Suri group (Rs 400 crore), and thermal plants by Delta Power and the Katari Group, both in Bijapur district. However, there is a gap between proposals cleared and actual investments.Of the 108 projects approved in 2008-09, worth Rs 1.6 lakh crore, only four have been implemented. Toyota Kirloskar Motor said recently that it would launch its sports utility vehicle (SUV) Fortuner, in India, by September. The Fortuner will be brought to India as a knocked down unit and will be assembled at Bidadi, the company said. http://www.thehindubusinessline.com/2009/06/06/stories/2009060650641900.htm http://www.tribuneindia.com/2009/20090606/biz.htm http://www.dnaindia.com/report.asp?newsid=1262393 http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=256943 TOYOTA KIRLOSKAR LAUNCHES COROLLA ALTIS SPORT Toyota Kirloskar announced introduction of the all new Corolla Altis Sport (Limited Edition) to target young car enthusiasts. Available in 2 exciting colors new metallic grey and metallic silver, the product is priced attractively at Rs 11.35 lakhs, ex-showroom, Delhi. The Corolla Altis launched last year has been highly appreciated by our customers because of its advanced luxury and comfort features,Toyota Kirloskar Motor (TKM) MD Hiroshi Nakagawa said in a statement. AUDI LAUNCHES COMPACT SUV Audi on Thursday launched its compact SUV Q5, in Mumbai priced at Rs 38.57 lakhs. According to estimates, last year India witnessed sales of 7,000 luxury cars. The luxury car market is growing at a faster pace in India and we are targeting that,said Audi India MD Benoit Tiers. The other Audi range sold in the India are A6, A8, Q7, A4, TT and R8. ANDHRA & TN ON PEUGEOT RADAR FOR RS 1.5K-CR PROJECT Appaji Reddem, Lijee Philip & Hemamalini Venkatraman Hyderabad/Mumbai/Chennai: French carmaker Peugeot has begun evaluating locations for its car project in India. It has kicked off negotiations with the Andhra Pradesh government that has offered to allocate around 800 acres of land near Hyderabad. The company is understood to be looking at an investment of Rs 1,500 crore for the project. Tamil Nadu is also on the companys radar, amid expectations that Peugeot will roll-out low-cost cars in emerging markets like India by 2010. It is also not clear whether the French auto major will bring in the Peugeot or the Citroen brand first. Decisions on product portfolio is expected to be taken after the finalisation of the location. But the company intends to launch both Peugeot and Citroen products in a limited timespan, said a person familiar with the development. We had a proposal sometime back from Peugeot for setting up a facility to make cars here. It was offered land that was earlier offered to the Tata Nano project. Although the first round of evaluation was done, the company is yet to furnish a detailed project report. A team is scheduled to visit Hyderabad in mid-June, B Sam Bob, principal secretary (industries) told ET. We are evaluating several locations across India and a team from Peugeot is expected in the country in the second week of June to take a decision on the location, said a senior Peugeot India official. Andhra also lost the Volkswagen project to Maharashtra, after a political controversy. UK-based Caparo Group was expected to invest around Rs 3,500 crore for a luxury bus manufacturing facility in collaboration with Hyundai Motors. But the project has not taken off due to the global economic meltdown, said a government official. Tamil Nadu, the auto hub of the south, is home to Hyundai, Ford, BMW and Daimler Chrysler and many auto component makers. Government functionaries said a team from Peugeot had visited Tamil Nadu as well. The company has not yet taken a decision on the nature of the facility. It is a huge investment decision and given the current scenario globally (with General Motors filing for bankruptcy), the French carmaker may not be in a tearing hurry to set up shop here , said a source privy to the development. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" HOGGING THE LIMELIGHT: BMW STILL AHEAD OF MERC ON INDIAN ROADS The Economic Times (Delhi Print Edition) Mumbai: German luxury car major, BMW continues to maintain its lead after overtaking arch-rival Mercedes Benz as the number one luxury car in India through aggressive launches and dealer network expansions. In Apr-May 2009 , BMW India sold 466 cars as compared to Mercedes which sold 371 units. The third luxury brand Audi, which entered the market later sold 233 units in the same period. Incidentally, while BMW and Audi report retail sales figures, Mercedes Benz reports wholesale figures. ET had reported that BMW overtook Mercedes for the first time in January 09. BMW hopes to retain the momentum for the rest of the year. We are bullish about the luxury car segment and expect a growth of 15-20% this year, said a senior BMW official. In 2008, BMW sold a total of 2,908 units compared to 1,293 units in 2007. For the first five months, while BMW sold a total of 1,458 units, Audi sold a total of 617 units and Mercedes sold 1,141 units. Currently BMW manufactures the 3 and 5 series at its Chennai facility which account for more than 80% of BMW sales in India. The X3, X5, and 7 series are imported as completely built units (CBUs). BMW has launched 4 new products this year and is expected to expand dealer networks to around 20 cities by 2010. BMW and Audi have kept pace with more sportier features and new launches, encouraging younger buyers. Discounts offered by Mercedes and fewer launches have eroded the brand value, said an analyst of a Mumbai-based brokerage. Mercedes dealerships are also understood to be stuck with inventory, which led to the German carmaker despatching fewer cars to dealerships. The luxury car market continues to show growth trends despite recessionary trends in the car market. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LIGHT COMMERCIAL VEHICLES CUSHION FALLING CV MARKET Shweta Bhanot The Financial Express (Web & Print Edition) Mumbai: At a time when the commercial vehicle (CV) market is reeling under the slowdown, its the sub-3.5 tonne light commercial vehicle (LCVs) segment that is playing the messiah, cushioning the former from falling further. This is indicative from the performance of the LCV segment which has seen a fall of just 7%, compared to medium and heavy commercial vehicle (M&HCV) segment which saw a dip of 33% during April to March 2009. Overall, the CV market was down by 22% in the period. The industry is expected to growth at a rate of 6%-8% in FY10 over FY09. Stating that the LCV segment played the barrier in the further fall of the CV market, Sanjay Vasudevan, industry analyst Frost & Sullivan said, The share of LCVs in the total sales of CVs is expected to grow steadily due to changes in the freight movement system, such as hub-and-spoke model and improvement in road infrastructure. Currently, the share for the FY08 stands at around 52.2%. This is also due to the increase in the offerings in the segment by different players. Domestic companies, with a significant three wheeled goods carrier portfolio, are anticipated to rush into the sub-3.5 tonne four-wheeled commercial vehicles, to keep abreast with the market trend for instance Piaggio Ape Truk, said Vasudevan. Growth will be largely driven by the sub-one tonne category for last mile transport requirements due to increase in the retail and intra-city goods transportation needs. Typically, LCV segment comprises of products up to 7.5 tonne. However, it was the sub-3.5 tonne that saw maximum growth. Companies like Mahindra & Mahindra (M&M), Ashok Leyland with Nissan and Bajaj Auto have also shown interest in the sub-3.5 tonne segment. Tata Motors, who revolutionised the LCV segment with its sub-one tonne Ace, is working on more variants from the platform. Also, the CV market is expected to be polarised with the medium commercial vehicle (MCVs) segment loosing its charm with dwindling volumes over the years. We are witnessing a change in the profile of CV makers. It is LCV and HCV now, said Arindam Chakrabarti, practice head-automotive and engineering, Tata Strategic Management Group. The share of MCVs in the total volumes has come down from 38% in 2004-05 to 27.4% in 2008-09. The MCV segment comprises products in the range of 7.5 to 16.2 tonne. Mudit Gupta, project manager, industries - automotive, logistics and utilities, Datamonitor, said The LCV segment is expected to grow at a compounded average growth rate of 20% in the next three years and see maximum action, as far as launches are concerned. He also added that the segment was growing at 41% pre-October 2008, when the economic slowdown struck. Business Standard, Motoring Mumbai: What do you think of when we mention Tata and trucks in the same statement? You dont generally relate ergonomics, safety, performance and style with Tata trucks, right? Well, that might just become a thing of the past. And the reason for that is the truck you see on this page. This is the fruit of Tata Motors'labour over five years to change the very face of trucking in the country that Tata first developed nearly six decades ago. Call it the face of a new, resurgent Tata Motors; one that isnt just acquiring fabled brands like Land Rover, but can take on established world names like Volvo, Mercedes-Benz, Scania and MAN head-on. It all began when Tata Motors acquired Daewoos trucking arm in 2004. The South Korean company had a brilliant product platform on its drawing board, but not the money to execute it. Tata Motors, which was then looking to expand their portfolio and improve their learning curve, looked at the product with keen interest. In what was considered a give-and-take relationship, Tata offered its range of MCVs in return for a world class truck platform. The World Truck is available in three distinct chassis styles, 200 different applications and 1,000 combinations. That might sound like a supplier nightmare, but it isnt. With two tractor-trailer axle options, five multi rigids and a two-axle to begin with, Tata Motors will manufacture the truck range at a robotised line at Jamshedpur, the only other manufacturing facility for the World Truck outside Tata Daewoo Commercial Vehicles at Gunsan, South Korea. While the range consists of engines developing 148 bhp to 552 bhp, the Indian operations will commence with 280 and 380 horsepower versions, with the choice of Cummins or Cursor 9 engines and six-, nine- or 12-speed gearboxes. Tata Motors has spared no effort in this project. With an investment of over Rs 1,000 crore, which includes R&D expenses and a 55,000 unit annual capacity plant, it has gone for the best in the business. Design inputs from Stilo Bertone and technical inputs from Tata's European tech centre apart, it has done Quality Function Deployment (QFD) tests in the BRIC countries as well as completed engine, suspension and gearbox development and tests in Europe and the US. Safety tests too were carried out, including the Swedish Impact test and a 147 kN roof test to replicate roll-over. The battery of tests lasted over one million kilometres on road and one million on the test rig. In the end, the vehicles meet not only Euro 3 and Euro 4 norms, but can be prepared for Euro 5 as well, while meeting stringent safety standards. The modern cab of the World Truck can accommodate sleeper versions and also come with, among other things, automatic climate control, steering wheel controls for the stereo, electrically height adjustable seats, anti-lock braking systems, etc. With the truck set to roll out across the country in the next two months and exports to begin by the last quarter of the current financial year to the Middle East, Turkey and Russia, Tata Motors will have their hands full with the World Truck. And hopefully, it will, once and for all, change the way you think about their trucks. http://www.business-standard.com/india/news/the-trucksthe-matter/360186/ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CONSTRUCTION & AGRI MACHINERY Go To Top | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| COMPONENTS Go To Top | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ALLIED INDUSTRY Go To Top The Economic Times New Delhi: Michelin has sold 3.3% stake in Apollo Tyres for around Rs 45-50 crore in the open market. The French tyre major had picked the stake more than five years ago in what was seen as a strategic investment in the Delhi-based firm. As per disclosure to stock exchange, Michelin continues to hold 7.98% in the Indian tyre maker. Apollo Tyres scrip closed the day at Rs 29.6, up 2.4% at BSE on Friday. Michelin had originally acquired 14.9% for around Rs 130 crore in Apollo Tyres in early 2004. At the same time it announced plans of a separate 51:49 JV with the Indian firm to make truck and bus radial tyres. One year later the two partners announced the postponement of the proposed venture citing the market conditions as the reason. But Michelin remained invested in Apollo Tyres. Michelins original 14.9% holding had come down after a qualified institutional placement at Apollo Tyres raised the total number of shares of the company three years ago. The French tyre firm had earlier sold small chunk of its holding between July and December 2008. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" ANTI-DUMPING DUTY LIKELY ON IMPORT OF CARBON BLACK PTI See this story in: The Hindu Business Line New Delhi: India is considering imposing anti-dumping duty of up to $0.195 per kg on the import of carbon black, widely used in manufacturing tyres, from countries such as Australia, China and Russia to protect the domestic industry. In its findings, the Directorate General of Anti Dumping and Allied Duties (DGAD) has recommended the matter to the commerce ministry to check the damage to the domestic industry. The provisional anti-dumping duty will be $0.078-0.195 per kg, the DGAD said in its notification. The domestic industry has suffered material injury, the DGAD said, adding that the injury has been caused by the dumped imports from Australia, Russia, China, Iran, Malaysia, and Thailand. Acting on an application from domestic players, the DGAD had initiated the investigation into the dumping of carbon black. The import of carbon black from these countries increased to 53,652 tonnes in 2007-08 from 20,746 tonnes in 2005-06.The overall import has increased to 63,066 tonnes in 2007-08 from 23,885 tonnes in 2005-06. The country has imposed anti-dumping duty on several products imported from China including fabric, colour picture tubes, nylon tyre cord and several stainless steel products. http://www.thehindubusinessline.com/blnus/03051607.htm Business Standard The ongoing strike by the MRF workers at its Arakkonam plant near Chennai has resulted in a production loss of around Rs.80 crore. The company had written to the workers that it was losing Rs 3.5 crore per day due to the strike that has shut production for over 20 days now. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FINANCE & INSURANCE Go To Top The Hindu Chennai: Indian Overseas Bank (IOB) has signed a memorandum of understanding (MoU) with TVS Motor for extending finance for purchase of TVS King autorickshaws and commercial three wheelers. http://www.hindu.com/2009/06/06/stories/2009060650531500.htm | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LUBRICANTS & ALTERNATIVE FUELS Go To Top Ajay Modi Business Standard New Delhi: The Union Cabinet is likely to review prices of petrol and diesel as crude oil price continue to move northward. The average price for the Indian basket of crude in June (till date) is $67.04 a barrel, up 15.59 per cent from the May average of $58. The basket stood at $67.28 barrel as on Thursday. When inquired if the government was considering a hike in petrol and diesel prices, Petroleum Secretary R S Pandey said the Cabinet will take a decision. I cannot talk about the proposal we are taking to the Cabinet. With this surge in crude price, diesel, which has been in the positive territory for last seven months for the oil marketing companies (OMCs), would also slip into the red. The over-recovery on diesel has come down from Rs 0.32 a litre in the second fortnight of May to Rs 0.05 a litre now. In the second half of June, diesel will definitely slip into negative with an under-recovery of around Rs 2 a litre, said an OMC official. Diesel accounts for nearly 39 per cent of total petroleum products demand. At the same time, the under-recoveries on petrol, kerosene and LPG cylinder whose prices are also administered would increase further. Currently, the under-recovery on petrol, kerosene and LPG is Rs 3.10 a litre, Rs 12 a litre and Rs 60 a cylinder respectively. From its peak of $142 a barrel in July last year, crude oil prices touched a low of $32.40 in December. When the last price cut in petrol, diesel and LPG was taken in January, crude oil price averaged $42.12 a barrel. With signs of demand revival becoming apparent in major consuming economies like China and India, crude oil prices have started firming up. The only cushioning for the OMCs is the strengthening of rupee against the dollar. The OMCs are estimated to have closed the financial year 2008-09 with under-recoveries of Rs 103,908 crore on subsidised sale of petrol, diesel, kerosene and LPG cylinders. They have been compensated for the under-recoveries by means of government bonds and discounts from upstream oil companies. http://www.business-standard.com/india/news/cabinet-likely-to-review-fuel-prices/360224/ OIL CLOSE TO $70 IN ASIAN TRADE The Hindu Business Line Singapore: Oil prices rose to $70 in Asian trade on Friday, buoyed by hopes of a recovery in the global economy. In the afternoon trade New York's main futures contract, light sweet crude for July delivery, gained 53 cents to $69.34 a barrel. Brent North Sea crude for delivery in July rose 40 cents to $69.11. http://www.thehindubusinessline.com/blnus/10051506.htm | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTERNATIONAL NEWS Go To Top Bloomberg See this story in: The Economic Times New York: Chrysler and General Motors will likely succeed in spinning off their best assets to new entities because the law favours them over creditors trying to block the deals, bankruptcy lawyers said. Reuters See this story in: The Economic Times Detroit: General Motors has a reached a preliminary agreement to sell its Saturn brand to Penske Automotive Group in a deal that could preserve more than 350 dealerships and 13,000 jobs, the companies said on Friday. , Vue and Outlook on a contract basis, if the transaction is completed, GM and Penske said. GM created Saturn in 1984 to compete with Japanese vehicles in terms of quality and service and initiated no-haggle flat-price sales for its models. GM TO OFFER OVER $2.5 BN FOR DELPHI BUYOUT Rediffmail See similar story in: The Financial Express Bankrupt General Motors will give more than $2.5 billion to Platinum Equity to finance the acquisition of auto parts company Delphi Corp. "Flush with $30 billion in new capital from the US government, General Motors Corp has agreed to finance a private equity firm's buyout of bankrupt auto-parts company Delphi Corp," The Wall Street Journal has reported. Quoting a person familiar with the matter the daily said, General Motors would provide more than $2.5 billion of the $3.6 billion necessary for the private equity firm to gain control of Delphi. General Motors filed for bankruptcy protection on Monday. "Since Monday, GM and the government have been mum about who would provide the money to help Delphi emerge from bankruptcy," the report said. Under the terms of the transaction, Platinum would invest no more than $750 million, while the bankrupt car maker GM would provide the balance in financing. Delphi, a former unit of GM, has been bankrupt since 2005. The company said funding for the Delphi buy out was "incorporated into GM's revised viability plan. . ." "As part of the deal, GM is buying back four Delphi plants and Delphi's Saginaw, Mich, global steering division. In addition, it is providing a $250 million loan to fund Delphi's operations while it remains in Chapter 11," the report said. The Platinum deal needs to be approved by the bankruptcy court, as part of the Chapter 11 filing. "If the company doesn't get that support, it will try to complete the transaction through a sales process under the US Bankruptcy Code," WSJ quoted GM as saying. GM's involvement represents new ground in its use of government support. The Obama administration has begun to use private equity firms to take over failed banks but has yet to use them in the auto industry. On Monday, the world's biggest car maker GM had filed for Chapter 11 bankruptcy protection in a New York court, making it the third biggest bankruptcy filing in the history. The company is expected to get $30 billion from the US government as part of the Barack Obama administration's restructuring plan for the iconic auto giant. MITSUBISHI ROLLS OUT ZERO-EMISSION ELECTRIC MINICAR AFP See this story in: Hindustan Times Tokyo: Japans Mitsubishi Motors Corp. rolled out its first zero-emission electric minicar on Friday, hoping to capture a slice of the fast-growing market for environmentally friendly vehicles. The new i-MiEV short for Mitsubishi Innovative Electric Vehicle can seat four adults, emits no carbon dioxide and has a range of up to 160 kilometers (100 miles) on a fully-charged battery. The distance should be enough for day-to-day city driving in Japan, said company president Osamu Masuko, who added that the automaker was initially targeting corporate and government clients. We at Mitsubishi Motors hope to build technology that will put us in a competitive position in the global market of the future, he told a press conference. Thinking about the Japanese auto industry in 10 to 20 years from now, we must make sure the industry does not fall behind our foreign rivals. Mistubishi says the car, priced at 4.6 million yen (47,500 dollars), runs quietly but accelerates quickly, and the running cost is one third of that of a petrol-powered car or less if it is charged during off-peak hours. Because of its efficiency including converting braking energy into battery power the vehicle emits only one third of the CO2 of a petrol car when the electricity generated to recharge it at a power plant is factored in. The battery can be charged overnight on a domestic power source, or it can be powered up through quick-chargers now being developed by power companies, Mitsubishi said. The i-MiEV is the latest addition to a lineup of Japanese autos with green technology. Industry leader Toyota Motors Prius hybrid became Japans best selling car in monthly sales in May, pulling ahead of its rival, Hondas Insight, also a hybrid. The Japanese government has offered tax breaks and other incentives for consumers to buy fuel-efficient vehicles. Masuko said: The current launch price is high for ordinary motorists to purchase. But mass production will allow it to fall. He added that Mitsubishi hopes to eventually bring the cost down to around two million yen. For the year to March 2010, the company aims to sell 1,400 i-MiEVs to government and corporate users in Japan, in addition to 250 units overseas. The company will start selling the vehicle to the general public from April 2010, with an annual target of 5,000 units in Japan and 1,000 overseas. In 2011, Mitsubishi hopes to sell as many as 15,000 units, Masuko said, adding that the company would make a profit on the model once production rises above 30,000 vehicles. http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName=Business AP See this story in: The Economic Times Milan: Fiat CEO Sergio Marchionne said on Friday that the Italian automaker hasn't given up on Germany's Opel, even though a tentative Opel takeover deal by rival bidders Magna International and Russia's Sberbank was moving ahead. "Our interest remains, but it is not up to us," Marchionne was quoted by Italian news agencies ANSA and Apcom as saying at an event in Turin, Fiat's hometown. "Technically, it's not closed. Let's see." Fiat pulled out of a decisive round of talks on Opel last week focusing on emergency funding because of what it said were "unreasonable" funding demands, but said it remained interested. Fiat is also on the verge of taking over assets of Chrysler. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ECONOMY & FINANCE Go To Top The Hindu Business Line Mumbai: The rise in foreign currency reserves moderated during the week ended May 29. According to the Reserve Bank of Indias Weekly Statistical Supplement, foreign currency reserves increased by $1.667 billion to touch $262.306 billion. In the pervious week, forex reserves had increased by $6.432 billion to touch $260.639 billion. During the week under consideration, foreign currency assets increased by $1.291 billion to touch $251.456 billion. Foreign currency assets expressed in US dollar terms include the effect of appreciation/depreciation of non-US currencies like euro, sterling and yen held in reserves. This was the week when the dollar gained against other global currencies like yen and euro. The euro weakened from $1.4023 at the beginning of the week to $1.3984 against the dollar. Gold reserves increased by $373 million to touch $9.604 million. SDRs were unchanged at $1 million. The countrys reserve tranche position in the IMF increased by $3 million to touch $1.245 billion. http://www.thehindubusinessline.com/2009/06/06/stories/2009060651550600.htm SENSEX IN NO MOOD FOR CORRECTION PTI See this story in: The Hindu Business Line Mumbai: Domestic and global factors combined to lift the BSE Sensex by 95 points to nearly a ten-month high of 15,103.55 as IT, capital goods and the auto sector kept up the growth tempo. Domestic institutional investors remained heavy sellers in equity for the second successive day despite signs of a recovery in the Indian economy and the government's reforms agenda in key sectors such as financial, infrastructure and realty. The Sensex rose 94.87 points at 15,103.55, setting the stage for its 13th weekly advance, the longest since August 2005, as capital goods, information technology and the auto sector surged on brisk buying. It touched the day's high of 15,257.30 points. In a similar fashion, the 50-share National Stock Exchange index Nifty rose by 14.25 points at 4,586.90, after touching the day's high of 4,636.85. Global markets traded higher on fresh signs of a recovery in the economy after US unemployment insurance dropped for the first time in five months and the European Central Bank kept its benchmark interest rate at one per cent. The market was looking to take a correction as the frontline stocks are looking tired, but the market got a boost from the President's assertion that the reforms would be given priority,'' SMC Global Vice-President Rajesh Jain said. http://www.thehindubusinessline.com/blnus/05051901.htm Last Financial closing
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