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| INDUSTRY Electric car makers want excise back Man sold faulty second-hand car by INTERVIEWS/FEATURES CARS, SUVs, MUVs Future prospects good for auto sector: Aulbur Volkswagen appoints Palace Cross as dealer COMMERCIAL VEHICLES | ALLIED INDUSTRIES FINANCE & INSURANCE Oil spikes above USD 72 per barrel INTERNATIONAL NEWS GM says tries to reach deal with Magna for Opel GM in talks with Swedish co to sell Saab Volkswagen posts gain in May ECONOMY & FINANCE Sensex ignores strong IIP numbers
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| INDUSTRY Go To Top TATA MOTORS, FIAT TO HALT COMPETITIVE LAUNCHES Hindustan Times (Web & Print Edition)
Mumbai; Italys Fiat and Tata Motors, locked in a carefully crafted partnership in a competitive industry, will not launch models in segments where they would have to compete with each other.
The two companies, which are in a wide-ranging tie-up, would have a common strategy to take on competition in India, a top Fiat official told Hindustan Times.
Between the two of us, beginning with the Nano, we will have a line-up of cars that would pretty much cover that part of the market, said Rajeev Kapoor, managing director, Fiat India Auto Private Ltd, the Italian majors local subsidiary. The decision shows how deep the Tata-Fiat combine in India now runs into the manufacturing functions of the two companies.
Tata Motors is not readying any new car launches in the sub Rs. 8-lakh end of the market other than the Indigo Sedan, Rajiv Dube, president, passenger cars, had told Hindustan Times last month. The new Indigo sedan is an upgrade over the existing Indigo, where Fiat does not have any models. Fiat will not be launching the high-end Bravo, which is a hatchback originally planned for import into India.
FIAPL and Tata Motors are betting big on the Grande Punto. It is now time to get into the volume segment. The Punto is going to bring us numbers, said Kapur. Grande Punto, FIAPLs new car, will be priced above Tatas Indica Vista, but below the Honda Jazz and the Skoda Fabia, Kapoor said.
With the two Fiat cars, the Tata-Fiat combine will have the lower end of Indias car market pretty much covered. The Tata-Fiat combine has close synergies. Tata Motors gets Fiats technology and support. It also gets a share of the numbers that the Linea and Grande Punto make. It gets to manufacture cars in Fiats brand new Ranjangaon plant.
Fiat on the other hand gets the reach of Tata Motor showrooms in the country, and the might of Tata Motors over its suppliers means Fiats aggressive plan of cutting costs through buying Indian components becomes easier.
We are looking at very high level of localisation. We will establish the localisation aggressively, Kapoor said. http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName=
ELECTRIC CAR MAKERS WANT EXCISE BACK
New Delhi: At a time when other industries are asking for tax cuts and fiscal incentives, the domestic electric vehicle industry has a rather unique demand. The industry wants the government to re-introduce excise duties waived off last year.
The waiving off of excise duties for electric vehicle last year was done with right intentions but it created a peculiar problem for us, said Sohinder Gill, director-general, corporate affairs, Society of Manufacturers of Electric Vehicles (SMEV). While excise duties become zero, import duty for components remained at 10 per cent, resulting in CENVAT, which could not be utilized. Hence vehicle prices actually went up, Gill, who is also the CEO of Hero Electric, added.
The Hindu (Web Edition)
Kochi: Kochi-based Indus Motors has won the award for being the dealer selling the most number of Maruti cars in the country. It sold 28,447 cars in 2008-2009, according to Indus Motors chairman and managing director P.V. Abdul Wahab. http://www.hindu.com/2009/06/13/stories/2009061356791700.htm
MAN SOLD FAULTY SECOND-HAND CAR BY MARUTI TRUE VALUE, MOVES COURT Neeraj Chauhan The Indian Express (Web & Print Edition)
New Delhi: Buying a second-hand car is always tricky business, even if it is from an authorised dealer like a Maruti True Value outlet. One Brijesh Shukla, a resident of Karawal Nagar, realised this the hard way after he was sold a faulty car by a Maruti True Value shop T R Sawhney Motors on Wazirabad Road, where he had gone to buy a second-hand Wagon R car.
Shukla paid Rs 1,80,000 for a second-hand 2003 model Wagon R in January after taking a car loan. The car provided to him stopped working properly within two weeks of purchase.
Shukla was earlier told by True Value he would be given a Wagon R in very good condition worth Rs 2,43,000. Later, he was told that the owner of that car had taken it back and he would now be given another 2003 model worth Rs 1,80,000. The car was in good condition, its engine, speedo meter, air-conditioning system and other instruments were in working order, he was promised. At the time of the delivery of the car, the odometer reading was shown to be 48,917 km. However, in one weeks time, the cars AC stopped functioning. Other problems like petrol leakage developed as well, said Brijesh Shukla.
A helpless Shukla approached a consumer court after knocking on Marutis door several times in the last few months. Shukla also recovered the service records of the car sold to him, and found that True Value allegedly carried out technical manipulations in the car.
The service records showed the odometer reading in January 2006 to be 57,933 km. It went up to 62,763 km in the next four months. However, when the car was given to me, the odometer reading was shown to be 48,917 km, alleged Shukla.
He further claimed that a lot of parts had been changed in the car and the car insurance records were manipulated before being handed over to him.
Shukla has written to the Deputy Commissioner of Police, Northeast District, and the Commissioner of Police in this regard. I want justice. I had paid hard-earned money to buy a good second-hand car, but I have been cheated, said Shukla.
When contacted, True Value manager Deepak Bhatnagar said, We have given our reply. The case is in court. I dont want to say anything more than that. http://www.expressindia.com/latest-news/man-sold-faulty-secondhand-car-by-maruti-true-value-moves-court/475753/
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| INTERVIEWS/FEATURES Go To Top Remember the Audi 100 and former cricketer Ravi Shastri posing against it at the end of the World Championship of Cricket (WCC), 1985, in Australia? The Audi brand from the Volkswagen (VW) stable has grown steadily since then and, has easy recall in India, accomplishing Audis initial motive. In this conversation with FEs Shweta Bhanot, Audi India managing director, Benoit Tiers, recalls the journey of the brand in the country and the way ahead.
How have been the past few years for Audi in India?
When I look back, the last 24 months in the Indian market have been very exciting. In 2007, the brand was comparatively unknown except among a few cricket fans. It has grown from the Ravi Shastri times to become a brand everyone can relate to. If you go out in the city, you will find the Audi badge not only at our dealerships, on our cars, but also on autorickshaws that flaunt the brand proudly. This is good news for us. People recognise the brand and thats what we were looking to build over the last two years.
Consumer expectation from the brand is growing. How do you plan to fulfill it?
Everything comes at its own time. Like I said, the last 24 months were important for the brand as we were streamlining efforts to establish Audi in the country. That task is over. We have an assembly plant in Aurangabad, a strong dealership network that we will continue to expand, and have launched six products in the marketone every four months. More will follow soon. Localisation is the next step and we are studying the market. We are not in a rush, as we want to ensure quality. Currently, we are importing all the components from Germany.
When you talk about localisation, what synergies does Audi share with the VW Group?
Localisation is a completely different level of positioning. Of course, the VW group as well as the brand is looking at what makes sense for long term business in India. There are a lot of good quality vendors in India looking to do business with us. We will do what benefits our customers. The VW Group has synergises in purchasing, but there are not many product synergies.
How do you see the luxury car market performing this year?
The car market globally has suffered, but is in the recovery stage. We see the luxury car market recovering faster than the other segments of the car market. India, which is showing signs of recovery, is expected to become the first country to come out of the slowdown. The year has started well for us and we have managed to sell 600 cars in the first five months of 2009. Our target for this year is to sell 1,500 cars compared to 1,050 we sold last year. In 2009, we expect to sell 1,000 units of the A4 and the A6 (put together); 400 units of the Q7 and around 100 units of the Q5. We expect the sales of Q5 touch 400-plus by next year.
Which are your top selling models?
Currently, the A6 contributes the maximum, followed closely by the A4. However, there is huge potential for the SUVsthe Q7 and the Q5in the Indian market. http://www.financialexpress.com/news/localisation-is-the-next-step-for-audi-in-india/475627/2
Arun Jaura The Financial Express (Motobahn)
When Henry Ford revolutionised the auto industry more than a hundred years ago, CO2 was not an issue, neither was fuel efficiency. With 1.2 billion vehicles projected by 2020 on the planet, CO2, end of life of vehicles and fuel efficiency challenges are staring us in our face.
CO2 is measured in grams per kilometre generated by a vehicle. In various regions of the world, regulators are working on different vehicle platforms for limits of 140 gm per km upward, with a phased-in approach of getting it down to 90 gm per km over the next three-plus years. Many governments levy taxes at point of purchase, if a vehicle does not meet prescribed limits but also provide an incentive to purchase vehicles that have lower CO2. This strategy works well in taking older vehicles off the road. Many experts recommend that state and central governments should limit tax breaks to greenfield sites and R&D concessions only for design and development, and manufacture of products that will meet radical regulatory limits of CO2. Only Leeds ratings of manufacturing units will not cut it anymore.
Some automakers holistically look at the challenge to include design and development, standardisation and rationalisation, recycling, manufacturing, distribution, servicing, marketing and sales, cost of ownership, supply chain, spares and disposal of the vehicle. At every stage it is imperative to ask, how does each action contribute to the reduction of CO2 and improving sustainability. Before beginning a vehicle programme, one of the major organisational actions should be to outline the CO2 walk, so it ensures each system and function is assigned a percentage of CO2 reduction in the overall walk.
Similarly outline the recyclable material walk for each subsystem. Define and agree with the vendors on the content of recycled material that will be used to make new components. Consider the example of vehicle chassis design from basics. After reviewing customer requirements, vehicle attributes and lessons learnt, review software for design, processing time, computers to run this software, infrastructure required to host this equipment, time to process design, the extent of virtual engineering before a prototype is built etc. Then there is the vendors capability to meet limits, upfront participation of vendors in the development process and of course the chassis integration with other systems as it goes to the assembly line. Other business function drivers have to be defined in a similar manner.
As 9.4 billion humans are expected on this planet by 2050, handling the CO2 challenge needs an innovative astuteness. The luxury of being able to choose whether or not to go green is unlikely because pundits say that it is only a matter of time that consum- ers will make buying decisions by reading product CO2 labels to avail carbon credits in addition to helping this world become a better place. The author is vice-president, technology, Eaton Corporation & head, Eaton India Engineering Centre.
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| CARS, SUVs, MUVs Go To Top CAR COS LINE UP BIG DISCOUNTS IN MAY-JUNE Nandini Sen Gupta & Sumit Chaturvedi The Economic Times (Web & Print Edition)
If you thought December is the best time to pick the cheapest deals in autoville, think again. The monsoon isnt here yet, but its already raining discounts in Motown. In fact, the May and June discount roster is the same as December considered the highest discount month in the car market minus the excise reduction benefits.
Car marketers say promotional schemes have now become de rigueur, so customers demand rebates on new models as well. Said Ankush Arora, V-P, sales and marketing, GM India: Consumers are always looking at some kind of incentive to purchase cars and nowadays they expect the same on newer car models also. But its not just discounts but the entire package which attracts a customer. The package includes post sales services such as free car servicing and vehicle checking camps etc at regular intervals.
FUTURE PROSPECTS GOOD FOR AUTO SECTOR: AULBUR PTI See this story in: The Economic Times (Web Edition), Business Standard (Web Edition), mint (Web Edition), The Hindu Business Line (Delhi Print Edition)
Ahmedabad: Mercedes-Benz India on Friday said it is expecting a 10 per cent increase in its sales in the next one year as the future prospect for his company and the auto sector is looking up with a stable Congress-led government at the Centre. http://www.business-standard.com/india/news/future-prospects-good-for-auto-aulbur/360918/ http://www.livemint.com/2009/06/12151802/Future-prospects-good-for-auto.html
Manu P. Toms The Hindu Business Line (Web & Print Edition)
Mumbai: Fiat India Automobiles has deferred the launch of its super hatchback Bravo which was part of its CBU (completely built up) import agenda. The company believes that current market conditions are not appropriate to retail an expensive car.
The Bravo would have sported a price tag of over Rs 20 lakh thanks largely to the 100 per cent plus import duty levy. It was to have been launched initially in 2008, but this was put off to this calendar. There is no indication now when it is likely to hit Indian roads.
We wanted to launch the Bravo but put it off because of poor market conditions. Anything above the C segment (mid-size cars in the Rs 7-10 lakh range) is not selling, Mr Rajeev Kapoor, CEO, Fiat India Automobiles, told Business Line. The car could be launched when things begin to look up for expensive cars.
Fiats CBU import plan is part of its efforts to create a fresh brand image in India. The first model to be launched was the two-door Fiat 500 in July last year. The company has sold 52 units of the car, which costs around Rs 15 lakh. The next batch of 20 units (of the Fiat 500) is on its way from Italy.
The company also believes that it makes more sense to focus on locally manufactured products such as the mid-size Linea and the high-end hatchback, Grande Punto, due to be launched next week. The Palio is of a critical part of its operations at the Ranjangaon plant near Pune which is part of the joint venture with Tata Motors.
Satisfied with Linea Mr Kapoor said that Fiat was satisfied with the performance of the Linea whose sales are averaging 1,500 units a month. It is targeting sales of 70,000 units in 2010.
The second homecoming in India is crucial to the company after its jinxed innings at the Kurla plant when nothing seemed to go right. Globally, it is in the news for taking charge of Chrysler and it now remains to be seen if the alliance with Tata Motors will benefit in the process. http://www.thehindubusinessline.com/2009/06/13/stories/2009061351420200.htm
VOLKSWAGEN APPOINTS PALACE CROSS AS DEALER PTI See this story in: The Hindu Business Line (Web & Print Edition)
Bangalore: Volkswagen India on Friday announced the Volkswagen Palace Cross showroom as its authorised dealer here.
Volkswagen Palace Cross showroom would offer premium buying experience to its customers, at par with the Volkswagen's global standards, a company release said. The company said it is witnessing an upsurge in demand from across the country and its plant at Chakan, Pune, is ready for manufacturing ahead of its schedule.
The Palace Cross showroom is also setting up a state-of-the -art service facility here, which would be operational from July 2009, it said.
Volkswagen currently operates franchises in Delhi, Mumbai, Bangalore, Hyderabad, Chandigarh, Noida, Ludhina, Jaipur, Cochin, Chennai, Ahmedabad, Goa, Kolkata, Lucknow, Pune and now adds its second facility at Bangalore. In 2009 Volkswagen aims to add 25 more outlets in India taking the total number to 40, it added. http://www.thehindubusinessline.com/blnus/19121506.htm
Malabika Sarkar The Financial Express (Motobahn)
GM Corp has filed for bankruptcy, Toyota and Honda are downsizing operations in some countries, and all major car companies are facing the heat globally. While India hasnt been particularly immune from the dusty winds of recessionattributed to the worldwide consumer credit crunch amid a serious global financial crisisin recent months the automobile market has made some determined efforts to get its act together and take the growth story forward.
And June is turning out to be among the most eventful in recent months with the launch of a slew of cars across categories. General Motors India has launched the LPG version of their popular small car Chevrolet Spark. The Spark LPG comes in two variants1.0L PS priced at Rs 3.52 lakh and 1.0L LS priced at Rs 3.69 lakh (ex-showroom Delhi). Both come with a certified, factory fitted LPG kit as well as the three-year/1,00,000-km standard company warranty, which is an industry first in the mini-car segment. Karl Slym, president & MD says, The launch of the LPG mode reiterates Chevrolets vision of moving towards environment friendly alternative fuels. With this, GM plans to continue to introduce variants of the Spark that target different groups of customers. GM is also scheduled to bring to India the Chevrolet Cruze in September this year.
In the luxury segment, German premium car maker Audi has recently unveiled its luxury sports utility vehicle (SUV) Audi Q5. The Q5 is the sixth offering from the Audi portfolio in the country and is its second SUV to hit Indian roads. The Q5 comes with two engine types2.0 TFSI (petrol) for Rs 38,29,000 and 3.0 TDI (diesel) for Rs 44,19,000 (ex-showroom Mumbai). The Q5 will be competing against the BMW X3 in the market. In 2009, the company expects to sell 1,000 units of the A4 and A6 taken together; 400 units of the Q7 and around 100 units of Q5. The company has 12 dealerships across the country.
Toyota Motors launched its flagship model New Land Cruiser with a starting price of Rs 81.64 lakh (ex-showroom Thane). This launch would help us build our brand in the country, says a company spokesperson. The car comes with 4.5 L V8 engine and will be available in all major cities.
The most awaited launch was perhaps the Honda Jazz, known as the Fit in European markets. Jazz is the only small car model in Hondas portfolio in India. Launched in Japan in 2001, Honda Fit sold successfully in over 130 countries with cumulative sales of more than 2.8 million units. In India Jazz will be available in three variants and is priced between Rs 6.8 lakh and Rs 7.33 lakh (ex-showroom Delhi). The supermini shares the same platform as the City and is powered by a 1.2 litre i-VTEC engine. We have brought the same global quality to India. As a package its an extremely attractive proposition, says a company spokesperson.
For auto enthusiasts theres more excitement in store. Tata Motors is set to launch a new version of the Tata Indigo Vista. The Indigo Vista would be based on the Indica Vista platform and will be manufactured at the new Fiat-Tata joint venture facility at Ranjangaon in Maharashtra. The diesel version will be equipped with the 1.3l multi-jet engine of the Fiat Linea and the petrol variant would be equipped with the 1.4l petrol engine powering the current Tata Indigo. Needless to say, the pricing of the car would decide its fortune in India. This would be followed by the large hatchback Grande Punto from Italian major, Fiat. Launched in 2005 in the European markets, Grande Punto is a B-plus segment car. It is the largest selling hatchback in Europe and is understood to have significantly bolstered the fortunes of Fiat. The launch of the car is scheduled for June 17.
According to Abdul Majeed, auto analyst,PricewaterhouseCoopers,Launches would happen and launches should happen. Launches always excite the customer and also help companies maintain their market share. Auto manufacturers are looking at some more rationalisation in the excise duty structure and other taxes as well as access to credit at affordable rates.
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| 2/3 WHEELERS Go To Top ROYAL ENFIELD TO LAUNCH 2 BIKES; RAMP UP CAPACITY BY 35% PTI See this story in: The Economic Times, mint, The Hindu Business Line, The Financial Express, The Hindu
New Delhi: Heavy-weight motorbike maker Royal Enfield on Friday said it will launch two models by early next year and plans to expand its overall production capacity by over 35 per cent by 2010. http://www.livemint.com/2009/06/12174631/Royal-Enfield-to-launch-2-bike.html http://www.thehindubusinessline.com/2009/06/13/stories/2009061351410200.htm http://www.hindu.com/thehindu/holnus/006200906121679.htm
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| COMPONENTS Go To Top AUTO PARTS MAKERS SOFTEN BLOW FROM GM COLLAPSE Reuters See this story in: The Economic Times, Daily News & Analysis
Mumbai: The blow from the slow and prolonged collapse of auto giant General Motors Corp has landed softly on auto parts makers who continue to supply its small and medium cars and cut credit risks. http://www.dnaindia.com/money/report_auto-parts-makers-avoid-big-hit-from-gm-collapse_1264381
BHARAT FORGES NON-AUTO REVENUES TO GROW The Hindu Business Line See similar story in: Daily News & Analysis
Bangalore: Auto-parts maker Bharat Forge expects 40 per cent of its revenues to come from sectors such as mining, power, oil and gas and aerospace by 2013.
The Executive Director of Bharat Forge, Mr Amit Kalyani, told reporters at the sidelines of the CIIs fifth India Innovation Summit that this move was part of the de-risking strategy of the company. He also said the company will progressively reduce its exposure to the commercial vehicle sector. He said revenues from the commercial vehicle sector were about 35 per cent while revenues from the passenger car sector were around 25 per cent. But he did not give a timeline or by how much the company, which is the flagship of Kalyani Group, will reduce its exposure to the commercial vehicle sector.
India share Mr Kalyani said 25 per cent of the revenues of Bharat Forge come from India, and because of the huge potential the country has, it will increase its revenue share over a period of time.
Earlier, speaking during the first session of the summit on economic cycles and innovations, Mr Kalyani said companies that continue to invest in innovation would come out of the recession stronger and would be able to convert adversity into opportunity.
Innovative cost-effective measures are bringing down cost through focus on cash conservation, product quality and speed to market. Companies should concentrate on bringing even the lowest denomination of employees into the game and eliminate waste processes, he said.
Ms Sahana Sarma, Partner, McKinsey & Company, said the current downturn is a structural break and is the time to ask What is the new normal?. Indian innovation is among the fastest growing in the world but with a low level of diversification. Indias young population can be a critical asset over the next few decades, Ms Sarma said.
Potential The potential areas to drive innovation in India are mobile services, building management systems and solutions that are applicable to local as well as international market. The industry should also focus on improving talent base and enabling entrepreneurial culture. Mr Girish Wardadkar, President & Executive Director, KPIT Cummins, said digital manufacturing is a tool and process to validate and establish proof of concept for a new product and associated infrastructure. http://www.thehindubusinessline.com/2009/06/13/stories/2009061351190300.htm http://www.dnaindia.com/money/report_bharat-forge-to-up-capital-goods-play_1264363
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| ALLIED INDUSTRY Go To Top MODI RUBBER RETURNS TO TYRE BUSINESS Ajay Modi Business Standard
New Delhi: After a gap of eight years, V K Modi-controlled Modi Rubber re-entered the tyre market on Thursday through its subsidiary Modi Tyre Company, which has already began production at its Modipuram plant near Meerut in Uttar Pradesh.
The company plans to manufacture 25,000 truck tyres this month and ramp up capacity by August to make 95,000 tyres every month. Tyres manufactured by Modi Rubber would be marketed under the Continental brand name as it has entered into a new technical and branding joint venture with the German tyre-maker. http://www.business-standard.com/india/news/modi-rubber-returns-to-tyre-business/360971/
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| LUBRICANTS & ALTERNATIVE FUELS Go To Top PRIVATE OIL COMPANIES MAY HIKE PRICES Piyush Pandey The Economic Times
Mumbai: Even as the government is yet to take a decision on revising upward product prices of state-run oil companies, private oil firms, such as Reliance Industries (RIL) and Essar Oil, are close to deciding on a price hike, as early as next week.
RIL has started operations progressively at some of its retail outlets during the last one month. Currently, only diesel is being sold through these outlets at prices at par with PSUs. We continue to monitor developments on fuel price deregulation to decide on further course of action, said an RIL spokesperson. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://economictimes.indiatimes.com/News/News-By-Industry/Energy/
OIL SPIKES ABOVE USD 72 PER BARREL See this story in: The Indian Express Singapore: Oil prices hovered above USD 72 a barrel on Friday in Asia near an 8-month high as investors eyed signs that the global recession may be easing.
Benchmark crude for July delivery fell 31 cents to USD 72.37 a barrel by midday Singapore time in electronic trading on the New York Mercantile Exchange. On Thursday, it rose USD 1.35 to settle at USD 72.68, the highest since October. An improving crude demand outlook helped bolster prices.
On Thursday, the International Energy Agency in Paris said in its monthly survey that global oil demand would fall by 2.9 percent this year, better than its May forecast of a 3 per cent annual fall. It was the organisation's first upward estimate of demand in 10 months. "Oil prices are discounting positive economic growth by around the end of the third quarter," said Christoffer Molke-Leth, head of sales trading for Saxo Capital Markets in Singapore. "If that doesn't happen, prices at this level are overbought." Prices have more than doubled since March as investor optimism grew that the worst of a severe US recession was over.
The Labor Department reported that the number of newly laid-off Americans filing for jobless benefits fell last week by 24,000 to 601,000 - better than economists had forecast. http://www.indianexpress.com/news/oil-spikes-above-usd-72-per-barrel/475385/
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| INTERNATIONAL NEWS Go To Top GM, CHRYSLER EXECUTIVES DEFEND DEALERSHIP CLOSINGS Agencies See this story in: The Economic Times
Washington: Under withering criticism in Congress, General Motors and Chrysler executives on Friday called the closings of hundreds of dealerships painful steps needed to right-size the auto giants.
GM SAYS TRIES TO REACH DEAL WITH MAGNA FOR OPEL Reuters See this story in: The Economic Times
Washington: General Motors Corp is trying to cement an agreement with Canadian auto parts group Magna to buy its European unit, Opel , and is willing to broaden discussions if necessary, GM's chief executive said on Friday. http://economictimes.indiatimes.com/News/International-Business/
GM IN TALKS WITH SWEDISH CO TO SELL SAAB Carter Dougherty/NYT See this story in: The Times of India
"We are still working on the deal," the person said, speaking on condition of anonymity because the agreement was incomplete. "It is not the done deal that some people in Sweden seem to think it is." Swedish television reported that a group of Norwegian investors was involved in the deal. Saab separated from GM under Swedish law in February as GM embarked on the restructuring that led to its bankruptcy filing this month. Saab then announced its intention to seek new investors who would take it over. In contrast to the help that GM has received from the United States, Canada and Germany, the Swedish government has been cagey about supporting Saab with the upfront loan guarantees and capital injections that kept General Motors assets at work elsewhere. It prefers to wait for an actual sale. "We have always said that when there is a new owner of Saab, the debt office could be commissioned to negotiate about loan guarantees, if such are needed," said Goran Hagglund the state secretary in the Swedish industry ministry, a news agency reported.
VOLKSWAGEN POSTS GAIN IN MAY See this story in: The Financial Express
The groups core VW brand contributed substantially with a 10% gain in deliveries in May thanks to strong demand for its popular Tiguan SUV and Golf hatchback, as well as models sold in China like the Lavida and Passat Lingyu. We have to some extent been able to uncouple ourselves from an overall market that remains very weak thanks to our strong, young product range plus the additional sales advantage that comes from the comparatively high residual value of our used cars, Volkswagen sales chief Detlef Wittig said in a statement.
However, with the exception of China, global passenger car markets are not showing any signs of recovery. It is not clear whether the markets have hit rock bottom yet. Government scrapping incentives in Germany have boosted the market for low-priced models, helping VWs group deliveries in Germany rise 36%. The groups brand Skoda saw sales drop 7.3% in May due to an overall slump in key Central and Eastern European markets. http://www.financialexpress.com/news/volkswagen-posts-gain-in-may/475677/
VOLVO AGREES DEAL TO CUT WORKING HOURS, PAY See this story in: The Hindu Business Line
The deal meant the company would cancel redundancy notices for 30 employees, it said in a statement, Work hours will be reduced by a maximum of four working days per month and pay reduced by a maximum of 10 per cent during the agreement period, Volvo said.
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| ECONOMY & FINANCE Go To Top FOREX RESERVES DIP BY $1.08 B The Hindu Business Line
Mumbai: The countrys foreign exchange reserves fell by $1.089 billion to $261.217 billion for the week ended June 5, according to figures released in the Reserve Bank of Indias weekly statistical supplement.
For the week ended May 29, reserves had risen by $1.667 billion to $262.306 billion. In the week under review, the foreign currency assets decreased by $1.089 billion to $250.367 billion, on account of revaluation of the reserves.
Foreign currency assets expressed in US dollar terms include the effect of appreciation or depreciation of non-US currencies. The dollar had weakened against the euro and the pound in the week ended June 5, said a dealer with a public sector bank.
In the week under review, the dollar touched a low of 1.424 against the euro and 1.654 against the pound. Gold reserves, SDRs and the reserve position in the IMF remained unchanged at $9.604 billion, $1 million and $1.245 billion respectively. http://www.thehindubusinessline.com/2009/06/13/stories/2009061351320600.htm
SENSEX IGNORES STRONG IIP NUMBERS PTI See this story in: The Hindu Business Line
Mumbai: The Bombay Stock Exchange Sensex ignored good industrial growth for April on Friday as realty, auto and consumer durables stocks pulled the barometer down for the second consecutive day. In high volatility, the Sensex oscillated between 15,600.30, a fresh one-year intra-trade high, and 15,174.28, before concluding at 15,237.94, a fall of 1.13 per cent from its previous close.
Asian indices showed a mixed pattern of trading at the end while European markets resumed slightly lower. The broader 50-share Nifty of the National Stock Exchange also dropped 54.30 points or 1.17 per cent to 4,583.40 from its last close.
Metal shares continued to attract good buying support, buoyed by a fresh strong rally in prices on the London Metal Exchange. Stocks like realty, auto and consumer durables, which are sensitive to interest rates, were at the receiving end after recent decent rally on profit-booking.
SMC Global Vice-President, Mr Rajesh Jain said, The market did not react to positive IIP data as it is saturated at the moment. Investors should not expect a rally for so long. It is only a normal correction, which happened. Going forward, one can expect corrections in the market. http://www.thehindubusinessline.com/blnus/05121901.htm
Last Financial closing
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