INDUSTRY
Auto industry far away from full revival mode
Auto industry wants sops for CVs, exports
Convention on road safety
INTERVIEWS/FEATURES
CARS, SUVs, MUVs
It's business as usual for GM India
Honda Siel eyes 10% jump in sales in 2009-10
Used cars congest Indian roads as sales spike
COMMERCIAL VEHICLES
CONSTRUCTION & AGRI MACHINERY
2/3 WHEELERS
TVS Motor to roll out Apache in US
TVS hopes to ride on new launches
TVS to launch two bikes this year
TVS intensifies bike war with Bajaj
COMPONENTS
JBM aiming to buy out European ancillary company for Rs 300 cr
Hinduja Foundries Q4 net loss at Rs 7 cr
KIT: The Indian car accessory market
Sundaram new Managing Director for TVS Capital
Kirloskar Oil gets shareholders nod for demerger
ALLIED INDUSTRIES
FINANCE & INSURANCE
Rise in car sales augurs well for Kotak Mahindra Prime
Tata Motors, Bank of India tie up
LUBRICANTS & ALTERNATIVE FUELS
Deora hints at fuel price hike to tackle revenue deficit
Crude oil prices sink under $70
INTERNATIONAL NEWS
Honda may miss Insight sales target in US: Report
Saab will unveil its new owner this week
EU wants thorough review of Opel plan
ECONOMY & FINANCE
Rupee weakens against $
Sensex tumbles 362 pts; RIL down over 7%
India ready to help overcome global economic crisis: PM
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AUTO INDUSTRY FAR AWAY FROM FULL REVIVAL MODE
Jayaraman Sekar
The Financial Express (Web & Print Edition)
The overall performance of the countrys auto industry in the just concluded fiscal was in no way different from that of previous year. The unprecedented slump in demand led to negative growth on few segments of vehicles. While passenger cars and two wheelers reported a growth of o.13% and 2.6%, respectively, three wheelers marginally declined by 4.13 % and commercial vehicles fell by whopping 21.69%.
The industry is still far away from full revival mode. Passenger Vehicles segment during April-May 2009 grew marginally at 1.68% over same period last year. Cumulative sales of Commercial Vehicles Segment continued to register de-growth. The segment grew at (-) 13.08% during April-May 2009. It appears that for Passenger vehicles, Two-wheelers and Light commercial vehicles segment, the worst is over. The commercial vehicle continues to be under pressure.
The government now needs to speed up long pending reforms in financial and infrastructure sectors. Credit squeeze has had its impact on small and medium sized companies collapsing and larger ones running scared. As its being followed in few countries, the government can take steps to reduce interest rates to 5 to 6% to accelerate growth.
New projects are being postponed or shelved due to non-availability of demand particularly in the Commercial Vehicles segment. The proposal to invest Rs 60,000 crore in construction and modernisation of 40,000 km roads should be immediately implemented. Incomplete projects such as Golden Quadrilateral should be expeditiously activated. We need to avoid delays inherently present between announcement of schemes and actual execution. The growth of real estate through availability of cheaper credit will further spur growth.
The demand outlook for component sector remains negative. With low capacity utilisation, the profitability and financial profile of component manufacturers is expected to worsen over the short term. Volatile metal prices causes further difficulty as the metal suppliers link the prices with reference to London Metal Exchange market trends.
Corrective actions in the price fixing mechanism together with some significant tax reliefs should result in creation of robust demand. The recent dip in exchange rates to US dollar will add to export market advantage.In turbulent times like this, the governments support is critical to various forms of market activity and requires complete, continuous, conservative and constructive strategy.
The writer is Leader, Automotive Practice, PwC
http://www.financialexpress.com/news/auto-industry-far-away-from-full-revival-mode/477092/
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AUTO INDUSTRY WANTS SOPS FOR CVS, EXPORTS
Danny Goodman
Rediff India (Web Edition)
New Delhi: Auto industry executives expect this year's Union Budget to provide immediate relief to the ailing commercial vehicle industry. Sales of medium and heavy commercial vehicles had dipped 33 per cent in 2008-2009.
The interim Budget in May this year had extended the depreciation benefit on purchase of new commercial vehicles to September from March 2009.
Industry executives said this should be extended as sales of large vehicles slumped 40 per cent in April and May this year. "The other issue we expect the Budget to address is investment in infrastructure. Once this happens, the demand for commercial vehicles used in the construction industry will pick up. In addition to providing incentives for scrapping old trucks and lorries, which not only pollute but also pose safety risks, the Budget could provide funding for an integrated public transportation system. This will boost demand for buses," said R Seshasayee, MD, Ashok Leyland.
Manufacturers of passenger vehicles say that, given the negligible growth in sales of cars and utility vehicles last year -- the growth was a mere 0.13 per cent -- the Budget needs to tackle two anomalies in the system.
"Additional taxes on large cars need to be rationalised in line with the excise duty on small cars," said Masahiro Takedagawa, president and CEO, Honda Siel Cars. While small cars attract 8 per cent excise duty, the effective manufacturing duty on large cars and utility vehicles is 22-24 per cent.
A company executive said since utility vehicles like Safaris and Maxx were widely used in rural areas where public transport was underdeveloped, it didn't make sense to impose such high taxes on these vehicles.
"The other issue impacting car sales is the different VAT rates that states levy," said
Ankush Arora, vice-president, marketing (sales), GM. For instance, the VAT rate on cars in New Delhi is 12.5 per cent, while in other states it is 15 per cent.
Large exporters, like Hyundai, want the Budget to provide export sops. They say the Budget could include small cars in the focus product scheme for exporters.
Auto parts manufacturers say the import duty for certain components stands at 7. 5 per cent. "This has to be raised to the general taxation rate of 10 per cent," said Jayant Davar, MD, Sandhar Technologies. Davar said the Budget could provide incentives such as tax holidays and lower tax rates to promote auto ancillary manufacturing parks.
In an effort to promote domestic R&D in the auto industry, the government had earlier proposed 150 per cent weighted deduction on R&D investments by companies. This is effective till 2011.
"This benefit has to be given for a period of 5-10 years, which will help automobile manufacturers plan their investments," said Venu Srinivasan, CMD of Motors and the current president of the CII.
http://business.rediff.com/report/2009/jun/15/budget09-auto-industry-wants-sops-for-cvs-exports.htm
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CONVENTION ON ROAD SAFETY
The Hindu Business Line (Web Edition)
Hyderabad: The Society for Automobile Fitness and Environment (SAFE), an initiative from Society of Indian Automobile Manufacturers (SIAM), in association with the Ministry of Shipping, Road Transport and Highways is hosting its annual convention on road safety here on June 17. The theme for this year's annual convention would be `Safety through enforcement and inspection and certification." The convention would deal with safety and best practices in traffic enforcement system. This day-long convention will have officials from Central and State Governments, Traffic Police Departments and industry bodies from India and representatives from Japan, the Netherlands, Germany, Philippines and Geneva.
http://www.thehindubusinessline.com/2009/06/16/stories/2009061650331709.htm
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IT'S BUSINESS AS USUAL FOR GM INDIA
Business Standard (Web & Print Edition)
New Delhi/Kolkata/Mumbai/Bangalore: Just media hype, said a relieved Sachin Kumar, executive of the Auto Vikas showroom of General Motors India in West Delhis Moti Nagar. There were some showroom queries on the first two days, but it died down.
If prospective consumers of GMs cars are visibly disturbed by the news that its US parent has declared bankruptcy and filed for restructuring, it isnt apparent over here. All showroom staff have been directed to wear big badges with a There for you, there for India logo. And zonal executives have been told to visit individual dealerships to directly tell customers that alls well and will continue to be so for GM India and its products. But the need doesnt seem pressing, given the scene at dealerships through the big cities.
There has been a dip, about 15 per cent, said the manager of a Mumbai showroom, of the fortnight since the news of the giants fall. But no cancellations. Enquiries are still flowing in.
The Detroit automaker filed for Chapter 11 bankruptcy protection on June 1 the largest auto industry bankruptcy in history.
The automotive industry in India has been going through a rough patch. The worst sales slump in eight years saw top automakers like Tata Motors and Mahindra & Mahindra cut production. Subsequently, government stimulus measures sparked a recovery, with car sales climbing for a fourth month in May and foreign car firms launching new models for India.
GM, which is dropping high profile brands, including its Hummer, Saturn and Saab brands, is now betting heavily on small cars and expanding in countries like India via new brands and local sourcing. It has 192 showrooms in the country and sold 61,526 cars last financial year.
A few of our customers did cancel earlier bookings, but many others dont seem much aware of it, said the sales manager at Sundaram Motors, a long-time dealer in Bangalore for GM, one of two in the city. Sales have been normal for the past 10 days.
There was some apprehension in customers initially, admitted J K Singh, at Kolkatas India Automobiles showroom. But things improved after the company held press conferences and confirmed its India investment plans and launches were on track.
Added Rajesh Sanei, director of Dulichand Motors, another leading GM dealership in that city: Customers are mostly concerned about spare parts availability, and we tell them we are maintaining ample stock and can refill as and when required from the plants.
We are booking six-seven cars on an average every day and there has been no significant drop in bookings since December. Though, footfall is down by 5-10 per cent, said Sanei.
It helped that GM prepared the dealerships before the formal announcement. They were told of what was in the offing and what it meant and how to address the queries. Notably, for instance, they were told that no service warranty was being withdrawn, that the earlier planned launches of the LPG variant of the Spark, the Chevrolet Cruze and the Beat mini-car would all be held as planned, that the company was here to stay. And, that the Chapter 11 bankruptcy filing was meant to restructure and shed flab, to resume business, not to shut down.
They assured us that there will be no supply problems for any spare parts or any other maintenance issue relating to the vehicles. And that GM India will continue to work, just as earlier, said the Mumbai dealership. That theyve invested more than $1 billion in India and are here to stay.
But what about customers?
When there were queries, we explained the difference between bankruptcy filing in India and the US, that this is meant to prevent closure. And on all the plans and launches for the Indian market, said Shashank Immanuel, sales executive at Delhis Vardajyoti Automobiles. The giant displays in showrooms, on the three-year warranty or free maintenance for 100,000 km, unmatched by either Maruti or Hyundai, do help. And the tubeless tyres offer.
That three-year, no maintenance cost service on the Spark gets a good response, said a manager at Bangalores Sundaram Motors. Each Indian dealership, said Kolkatas Sanei, keeps 150-200 cars in stock and that helps, too. More so, the 30-day stock of spare parts, something the company re-emphasised in the run-up.
At the moment, the Chevrolet Spark, the Aveo and the U-VA are the most sought after, says Kolkatas Sanei. His dealership booked 108 cars last month and the daily average pace has continued.
It is the service back-up and spare parts that prospective buyers have on top of their minds, not the US news, says the Mumbai dealership, which sells around 100 cars a month. That gives their sales people a chance to pour out all the reassuring data.
The average customer who comes to buy a Spark or to ask about a Tavera seems to be either ignorant about the Chapter 11 filing or has forgotten about it, said Auto Vikas in Delhi. Only a few of our customers have cancelled their bookings and others dont seem much aware (of the US news), echoes Sundaram Motors in Bangalore. Overall, its normal sales for the past 10 days.
We tell everyone that the company sees India as a major market for growth, say executives at the Mumbai dealership. The idea is that people, sooner or later, come to see GM India as part of the Good GM unit.
http://www.business-standard.com/india/news/its-business-as-usual-for-gm-india/361212/
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HONDA SIEL EYES 10% JUMP IN SALES IN 2009-10
PTI
See this story in: The Hindu Business Line (Web Edition), mint (Web Edition)
Chandigarh: Honda Siel Cars India on Monday said it is aiming to achieve a growth rate of 10 per cent in sales volume in the current fiscal on the back of surge in demand.
We are targeting a double-digit growth rate of at least 10 per cent in sales in 2009-10, Company's Director, Mr Tatsuya Natsume said after launching the Jazz model here.
With automobile sector showing signs of recovery, the company has been able to manage growth of 6-8 per cent in the past two months.
We have achieved growth of eight per cent in April and 6.5 per cent in the month of May, he said, adding that the company achieved highest sales of 8,900 units in the month of March this year since its operations in India.
However, it posted negative growth of 10.88 per cent in 2008-09 by selling 55,250 units compared with 62,000 units sold in 2007-08. The sales dipped in 2008-09 owing to supply constraint and drop in demand due to economic slowdown, he said.
http://www.thehindubusinessline.com/blnus/02151908.htm
http://www.livemint.com/2009/06/15175152/Honda-Siel-eyes-10-jump-in-sa.html
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USED CARS CONGEST INDIAN ROADS AS SALES SPIKE
Reuters
See this story in: The Economic Times (Web & Print Edition), mint (Web & Print Edition)
Mumbai: When Indian insurance executive K. Shankar shopped for a car, he was pleasantly surprised to discover he could buy a three-year-old SUV in near mint condition for just a bit more than a new hatchback.
"This SUV is ideal for me ... and if I can get it for the price of a much smaller new car then why not?" said Shankar.
Used car<http://economictimes.indiatimes.com/News/News-By-Industry/Auto/Automobiles/Used-cars-congest-Indian-roads-as-sales-spike/articleshow/4657034.cms> purchases are soaring in India, the world's second most populous country, as a host of global and local auto firms offer attractive trade-in deals to build customer loyalty and boost new car sales.
Many of these used vehicles<http://economictimes.indiatimes.com/News/News-By-Industry/Auto/Automobiles/Used-cars-congest-Indian-roads-as-sales-spike/articleshow/4657034.cms> are getting snapped up by people who have never owned cars before or families adding second or even third vehicles to their fleets.
With over one million cars being added to India's roads every year, experts worry the country's creaky infrastructure won't keep up with the volume of traffic, causing unbearable congestion and more traffic accidents in a country with already one of the world's worst road death tolls.
"Growth in vehicle ownership has reduced rush hour speeds to 5-10 km an hour in the central areas of major cities," the World Bank said in a recent report on India.
The number of vehicles on Indian roads has grown at an average pace of 10.2 percent annually over the last five years, it said, adding that 50 percent of roads were in a state of disrepair and only 30 percent of highways had two lanes or more.
PRE-OWNED CARS
Until recently, the used car market in India was dominated by neighbourhood dealers and roadside garage mechanics who controlled nearly 90 percent of the market, say industry experts.
But several global car makers such as Hyundai Motor<http://economictimes.indiatimes.com/News/News-By-Industry/Auto/Automobiles/Used-cars-congest-Indian-roads-as-sales-spike/articleshow/4657034.cms>, Ford Motors and General Motors have entered the market with pre-owned certified car programmes, causing used car sales to soar. India's largest vehicle maker, Tata Motors, also entered the market earlier this year.
Local firms Maruti Suzuki<http://economictimes.indiatimes.com/News/News-By-Industry/Auto/Automobiles/Used-cars-congest-Indian-roads-as-sales-spike/articleshow/4657034.cms> and top utility vehicles maker Mahindra & Mahindra's were the first to spot an opportunity when they launched their pre-owned certified cars programmes more than five years ago.
The used car programmes allow customers to get new cars in exchange for their older ones at substantial discounts. These used cars are then refurbished and sold with warranties.
For auto firms, the exchange programmes are a way of building brand loyalty. For new car owners they are an opportunity to buy bigger cars at entry-level prices. "We will be able to ensure customer loyalty and it will also reflect in the sale of new cars," said General Motors India's Vice President P. Balendran.
Most used car buyers are first-time owners or those buying additional cars for their spouses or their children, said Hormazd Sorabjee, auto expert and editor of Autocar India magazine.
According to industry estimates, in the last fiscal year ending March 2009, new passenger vehicle sales were about 1.5 million units while sales of used cars were about 1 million.
"If you look at the mature markets such as the US and Europe, used car sales<http://economictimes.indiatimes.com/News/News-By-Industry/Auto/Automobiles/Used-cars-congest-Indian-roads-as-sales-spike/articleshow/4657034.cms> are in multiples of new car sales ... and that is the sort of trend we are seeing replicated in India," said Jayesh Jagasia, founder of VeriCAR, a company that inspects used cars for customers.
The growth in used cars might make life more convenient for many Indians, but it has the potential to grind life down to a halt in major cities where road infrastructure is not keeping up with the ballooning volume of traffic. Car accidents are also a major concern. India's road toll is one of the worst in the world with around 100,000 people getting killed in road accidents in 2007 alone.
As business grows, an industry for used cars has also sprung up such as web sites advising customers on good car deals and rating used vehicles. The financial crisis, in which India's growth has slowed to 6.7 percent in the fiscal year ended March from 9 percent a year earlier, has also been behind the growth in used car sales.
"Interest in used cars has increased over the last one year or more because of uncertainty prevalent in the market and unavailability of loans," said Umang Kumar, co-founder of Gaadi.com, a search website for used and new cars.
http://www.livemint.com/2009/06/15203830/Used-car-sales-soar-congestio.html
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TVS MOTOR TO ROLL OUT APACHE IN US
Chanchal Pal Chauhan
The Economic Times
New Delhi: TVS Motor, the flagship company of the $4-billion TVS Group, will launch its premium 160cc bike Apache RTR in the US this year, the worlds most developed automobile market this year, said a top company executive. If TVS Motors enters the US, it will be the second indigenous company to foray into that market, the first being Royal Enfield bike. Another Indian company, utility vehicle maker Mahindra & Mahindra also plans to introduce its flagship Scorpio SUV<http://economictimes.indiatimes.com/News-by-Industry/TVS-Motor-to-roll-out-Apache-in-US/articleshow/4660152.cms> in the US next year.
The Chennai-based two-wheeler company has cleared the mandatory technical and emission tests for its bike and plans to launch it later this year.
TVS Motor president (marketing & sales) HS Goindi told ET: We are in the launching mode, and finalising our entry into the US market. Our bike has met all stringent technical norms in the US and we have also appointed distributor to sell our products in the market. The company will launch our advanced fuel injection Apache in the US. We have tweaked the product we already sell in India with some minor changes to meet the US automotive standards.
According to an auto industry<http://economictimes.indiatimes.com/News-by-Industry/TVS-Motor-to-roll-out-Apache-in-US/articleshow/4660152.cms> executive, TVS has held negotiations with Classic Motorworks, an importer and distributor of two-wheeler in the US, which already distributes Royal Enfield Motorcycle Bullet, Classic and Croma brands in the US.
A senior company official confirmed that Minnesota-based Classic Motorworks has shown interest in selling TVS bikes<http://economictimes.indiatimes.com/News-by-Industry/TVS-Motor-to-roll-out-Apache-in-US/articleshow/4660152.cms>, as commuter mode of transport to feed the lower-end of the two-wheeler market.
The company will start shipping bikes in the next few months. TVS is not expecting big volumes, but looking at high brand leverage in the US, a predominant high-end big bike market like the Triumph, Harley Davidson, Honda, Suzuki<http://economictimes.indiatimes.com/News-by-Industry/TVS-Motor-to-roll-out-Apache-in-US/articleshow/4660152.cms> and Yamaha.
America is a small market for two-wheelers with a few lakh units being sold every year and even that is being cornered by bigger bikes. We are expecting to sell a few thousand bikes in the first year, but these will boost our bottomlines, as profit margins are much higher in the overseas markets. Once we establish our brand, we will market more products from the TVS stable in the next few years, added Mr Goindi.
TVS Motors has presence in a few overseas markets, including a 300,000-units a year manufacturing facility in Indonesia, and also sells its bikes, scooters<http://economictimes.indiatimes.com/News-by-Industry/TVS-Motor-to-roll-out-Apache-in-US/articleshow/4660152.cms> and mopeds in Latin America, South-East Asia and Africa. The US is amongst the top 10 two-wheeler markets in the world with China is the largest followed by India, with over 70 lakh two-wheelers sold every year.
Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved"
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TVS HOPES TO RIDE ON NEW LAUNCHES
The Financial Express
See this story in: Yahoo India, The Hindu Business Line, Daily News & Analysis
New Delhi: Defying its dismal performance in 2008-09, Chennai-based TVS Motors is eyeing double-digit growth in 2009-10 on the backdrop of recently launched 2009 version of Flame, called SR125, followed by the 180cc Apache, and an upcoming scooter and a motorcycle in next four-five months.
TVS is aiming at 12-14% growth in the current financial year as we have started billing of the new TVS Flame from June onwards and the company is gearing up to come up with a new bike in the executive category followed by another scooter in next five months, says HS Goindi, president (marketing), TVS Motors, adding that the company is eyeing 8,000 to 9,000 units of new Flame a month by the end of 2009.
According to the Society of Indian Automobile Manufacturers, sale of TVS Motors registered 1.36% drop in 2008-09 at 11,36,344 units as against an increase of 2.6% in total two-wheeler sales in the country in the last financial year, at 74,37,670 units.
Though Goindi refused to talk about the latest ruling of Supreme Court on Flame, sources say the new SR125 will omit the controversial twin-spark plug technology over which the Chennai-based company is locked in a two-year old legal battle with Pune-based Bajaj Auto.
The Supreme Courts interim order issued last week had allowed TVS to continue producing the Flame series but had restricted the company from marketing them. The order comes on the back of an interim stay from the Madras High Court that had, in effect, given a go ahead to TVS plans to manufacture Flame. Bajaj claims that Flame will be an infringement of its patented twin-spark plug technology. TVS Motors, on the other hand, has countered this arguing that it is an old technology and that Bajaj had no patent claim over it.
TVS Motors posted 5% growth in domestic sales in May at 1,18,574 units as against 1,12,770 units during the same month last year.
...lines up 3 more launches in next few months
TVS Motor Company on Monday unveiled the Apache RTR 180 equipped with both electric and kick start. The bike is priced at an introductory Rs 63,990 (ex-showroom Delhi).
The company is working on a slew of new products, both in scooter and motorcycle segment, which will be launched over the next few months. After Apache RTR 180, TVS is all set to enhance its portfolio with three more launches. The company plans to launch a new motorcycle SR125 this month, which is essentially the same controversial Flame but under a new name. The bike will cost approximately Rs 45000 (ex-showroom Delhi).
Apart from the SR125, TVS also plans to launch one product each for the scooter and motorcycle segment respectively in another 4-5 months
http://www.financialexpress.com/news/tvs-hopes-to-ride-on-new-launches/477010/2
http://in.biz.yahoo.com/090615/50/batqmv.html
http://www.thehindubusinessline.com/2009/06/16/stories/2009061651130200.htm
http://www.dnaindia.com/money/report_tvs-targets-double-digit-growth-this-yr_1265220
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TVS TO LAUNCH TWO BIKES THIS YEAR
Rakesh Bihari Jha
The Pioneer
See this story in: Mint, Deccan Herald, The Statesman, The Telegraph, The Hindu
New Delhi: Two-wheeler maker TVS Motor Company said it would launch two more products this year even as the company launched its premium motorcycle Apache RTR 180 on Monday.
We will be introducing two more products in the next four to five months. The company will launch one scooter and one motorcycle in the executive segment, said TVS Motor Company president (Marketing) HS Goindi.
TVS offered Apache RTR 180 at an introductory price of Rs 63,990 (ex-showroom, Delhi), which is an advanced version of its 160cc Apache model.
Though it has been difficult time for auto industry as a whole for the past one year in the backdrop of global recession and consequent slowdown in our country. But motorcycle segment has grown comparatively better, added Goindi.
Asked about the plans for the Apache segment after launch of the RTR 180, he said: We are currently selling around 10,000 bikes per month of Apache. Our target is to sell 15,000-17,000 bikes from our Apache RTR 160, RTR 160 Fi and RTR 180 within next two years.
TVS hopes to grow 12 to 15 per cent this fiscal as we would have a complete line up for the customer by the end of this year, he added. Motorcycle sales of the company registered a 2.23 per cent fall in May at 53,495 units compared with 54,717 units in the same month last year.
The company will also launch a motorcycle in Indonesia in the next 2-3 months.
http://www.dailypioneer.com/183089/TVS-to-launch-two-bikes-this-year.html
http://www.livemint.com/2009/06/15163258/TVS-launches-Apache-RTR-180-fo.html
http://www.deccanherald.com/content/8280/tvs-rolls-apache.html
http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=258135
http://www.telegraphindia.com/1090616/jsp/business/story_11117075.jsp
http://www.hindu.com/2009/06/16/stories/2009061655971400.htm
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TVS INTENSIFIES BIKE WAR WITH BAJAJ
Hindustan Times
See this story in: The Indian Express
New Delhi<http://www.hindustantimes.com/Search/Search.aspx?q=New%20Delhi&nodate=1>; Looking to intensify competition in the premium motorcycle segment, the country's third largest two-wheeler maker, TVS Motor Company Ltd, on Monday launched a 180 cc version of its existing bike Apache RTR.
The bike which locks horns directly with the Bajaj Pulsar 180 DTS-i is priced at Rs 63,999 ex-showroom in Delhi. With this, there are three versions of the Apache RTR 160 and RTR 160 EFI available now in the country.
The Apache bikes are our mainstay in the motorcycle segment and we currently sell around 10,000-11,000 bikes a month of the brand, said H S Goindy, President, TVS Motor. In the next two years we are hopeful sales would be in the range of 15,000 and 17,000 bikes a month.
Hit by the slowdown, TVS had an insipid year in 2008-09, with its sales slipping by nearly one per cent to 1,140,940 units. The numbers were however, propped up by scooter and moped sales as its motorcycle sales during the year slumped by 8.9 per cent at 4,57,896 units. The company is hopeful, however, that things will change.
We are a full range manufacturer of bikes but unfortunately we could not sell the Flame which is our only product in the 125 cc segment, due to litigation, Goindy said.
http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName=<http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName=BusinessSectionPage&id=bdd5c00b-01be-4065-9d0d-29d6d504152f&Headline=TVS+intensifies+bike+war+with+Bajaj>
BusinessSectionPage&id=bdd5c00b-01be-4065-9d0d-29d6d504152f&Headline=TVS+intensifies+bike+war+with+Bajaj<http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName=BusinessSectionPage&id=bdd5c00b-01be-4065-9d0d-29d6d504152f&Headline=TVS+intensifies+bike+war+with+Bajaj>
http://www.indianexpress.com/news/tvs-launches-apache-rtr-180-for-rs-63-990/476909/
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JBM AIMING TO BUY OUT EUROPEAN ANCILLARY COMPANY FOR RS 300 CR
Swaraj Baggonkar
Business Standard
Mumbai: The New Delhi-based diversified JBM group, which manufactures components for the automobile sector, is looking to foray into the aviation space with an acquisition of a European parts making company for Rs 200-300 crore.
The groups senior management is currently holding talks with at least 3-4 target companies based in Europe, which cater to clients like EADS, Boeing and Bombardier, among others.
JBM is one of the few domestic auto parts-making companies which had outlined plans recently to enter the aviation space. Some other Indian companies that have similar plans include Bharat Forge, Maini Precision Products, Lumax, Minda NTS, Sundaram Fasteners and MRF Tyres.
JBM Groups Executive Director Nishant Arya said: We are talking to a few Tier-I parts making companies that supply to aircraft manufacturing firms. We are considering buy-outs or an alliance with the target company. The Rs 2,700-crore JBM Group has over 28 plants at 11 locations under its fold. It has 14 companies which supply to manufacturers like Maruti, Tata Motors, Bajaj, General Motors, Volvo and Ford, among some others.
The group is looking to take advantage of the lower valuation of the many mid-sized European companies, which are looking for fresh equity support from a foreign organisation through a stake sale or through joint ventures.
Indian companies foraying into the aviation sector either have very little or no exposure on making of aircraft parts and are doing so only to gain access to the complex manufacturing processes and design technology employed in the sector. We can have the technology through an acquisition or by a technical licensing alliance with the company. The acquisition should be over before the end of the financial year, added Arya.
Indian auto parts supplying companies have only recently warmed up to the idea of making an entry into the aviation industry, while their counterparts in western countries including ThyssenKrupp and GKN Aerospace have already forayed into the sector.
The ongoing slump in the auto sector, which started at the beginning of the third quarter in the last financial year, had forced auto component makers to cut production by half and even shut manufacturing facilities to match decreasing demand from original equipment manufacturers (OEMs).
Analysts feel many component companies in India, which have been catering to the auto sector firms as their core beat are now shifting focus to other sectors like aviation, energy (wind mills), oil & gas, railways and marine to reduce their dependence on the volatile sector.
With premier aircraft manufacturing companies like Airbus, Boeing, Hawker Beechcraft and Embraer eyeing India as a major maintenance, repair and overhaul (MRO) centre, Indian auto parts making companies will tap the aviation sector in a big way, said a city-based auto analyst.
Margins in the aviation industry are also far higher than those in the auto component industry, which survives on margins of 10-12 per cent, analysts said.
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HINDUJA FOUNDRIES Q4 NET LOSS AT RS 7 CR
PTI
See this story in: Business Standard
Mumbai: Hinduja Foundries reported a net loss of Rs 7.53 crore during the fourth quarter ended March 31, whereas it had a net profit of Rs 7.01 crore during the corresponding period a year ago.
The net sales of the company also dropped to Rs 60.08 crore during the quarter from Rs 129.91 crore in the same quarter last year, Hinduja Foundries said in a filing to the Bombay Stock Exchange.
For the financial year ended March 31, 2009, the company posted a net loss of Rs 11.98 crore, while it had a net profit of Rs 16.92 crore a year earlier.
The Hinduja Group firm, in a separate filing to the BSE, said it plans to raise Rs 50 crore.
"The board has decided to raise further capital of Rs 50 crore," it said.
"The terms and instruments of issue of capital will be decided in the board meeting scheduled to be held on June 19," it added.
Shares of Hinduja Foundries slipped 5 per cent to touch its lower trading limit of Rs 75.15 on the BSE.
http://www.business-standard.com/india/news/hinduja-foundries-q4-net-loss-at-rs-7-cr/64686/on
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KIT: THE INDIAN CAR ACCESSORY MARKET
Technopak Advisors
Business Standard
New Delhi: The launch of new passenger car models, India emerging as a major hub for small car manufacturing and the rising per capita income are some of the key reasons for the growth of this market.
The unorganised sector accounts for nearly 60 per cent of the total car accessory market.
Entertainment (purchase of head units, speakers, amplifiers, sub-woofers and so on) is the biggest revenue earner for players in the segment.Consumers generally spend close to 3-4 per cent of the car value on car accessories.
http://www.business-standard.com/india/news/kitindian-car-accessory-market/361136/
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SUNDARAM NEW MANAGING DIRECTOR FOR TVS CAPITAL
The Hindu
Chennai: TVS Capital Funds Limited, the asset manager of the Rs. 600-crore mid-cap growth equity fund, has appointed D. Sundaram as Vice-Chairman and Managing Director. He will assume charge from July 10, says a release. He will function from the newly-started Mumbai office.
Mr. Sundaram has over 34 years of association with Hindustan Unilever (HUL). He joined HUL in 1975 as a management trainee. After serving the organisation in various capacities over three decades, he became Vice-Chairman of HUL in April 2008. Mr. Sundaram has wide experience in corporate finance, business performance, operations, governance, mergers & acquisitions, talent/people management and strategy.
TVS Capital Funds was founded in late 2007 by Gopal Srinivasan. TVS Shriram Growth Fund I was the first fund raised by the company. It is an India-focussed growth equity fund, established with a vision to develop and nurture Indias mid-cap businesses into world-class companies.
The sponsors of the fund are the TVS Group and the Shriram Group.
http://www.hindu.com/2009/06/16/stories/2009061655981400.htm
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KIRLOSKAR OIL GETS SHAREHOLDERS NOD FOR DEMERGER
The Hindu Business Line
Mumbai: Diesel engines manufacturer Kirloskar Oil Engines on Monday said shareholders have approved the demerger of its engine and auto component business into Kirloskar Engines India Ltd.
The shareholders have approved the scheme of arrangement between the company and Kirloskar Engines India Ltd, Kirloskar Oil Engines said in a filing to the BSE. - PTI
http://www.thehindubusinessline.com/blnus/02151311.htm
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ALLIED INDUSTRY Go To Top
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FINANCE & INSURANCE Go To Top
RISE IN CAR SALES AUGURS WELL FOR KOTAK MAHINDRA PRIME
The Hindu Business Line
Mumbai: Kotak Mahindra Prime Ltd (KMPL) is banking on improving car sales and a slew of new car launches to grow its topline by around 30 per cent in FY10 after adverse market conditions impacted business in FY09. To fund the growth in the current financial year, the standalone car financing company plans to raise Rs 3,000 crore, most of it from banks.
After last years roller-coaster ride, whereby car sales slumped in the September-October-November period, business is now looking up. We have budgeted for a 30 per cent topline growth as there has been an improvement in car sales in the last few months and new launches are also in the pipeline. However, we expect our bottomline, which grew by 57 per cent to Rs 157 crore in FY09, to be flattish, said Mr Sumit Bali, CEO, KMPL.
Emphasising that his non-banking finance company, a wholly owned subsidiary of Kotak Mahindra Bank, was as competitive as banks were in the car financing space, Mr Bali explained that though interest rates charged by KMPL were a tad higher (25-50 basis points) vis--vis banks, the formers customers enjoyed prompt and efficient service, including fast-track loan approvals, from a dedicated team of 400 professionals specialising in car finance across the country.
We work on thin spreads, four per cent thereabouts. With consumer behaviour some prone to litigation, some not inclined to pay instalments, etc - varying across geographies, car finance is not an easy business to be in, he said.
In FY10, KMPL expects to finance around Rs 2,800 crore for new car purchase and Rs 1,300 crore for used cars. According to Ms Suman Sidana, Senior Vice-President, KMPL, in keeping with the business requirements, the company will raise around Rs 3,000 crore in the current financial year. With banks being flush with liquidity, the company has been able to raise working capital loans at 7-8 per cent.
With repossession of vehicles from defaulting customers turning out to be a long-drawn out affair, sometimes taking as much as six months (as against two months earlier) between issuing a recovery notice to taking possession of the asset, which now requires a court order, the non-banking finance company has tightened its credit appraisal procedures, according to Mr Bali.
http://www.thehindubusinessline.com/2009/06/16/stories/2009061651590600.htm
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TATA MOTORS, BANK OF INDIA TIE UP
The Hindu Business Line
See similar story in: The Hindu, The Statesman
Mumbai: Bank of India has entered into an understanding with Tata Motors to ensure consumer finance for Fiat cars which are available through the Tata-Fiat dealer network.
Customers can get special interest rates for loans up to Rs 10 lakh of 9.75 per cent to 10.25 per cent for the Linea, Palio and soon-to-be launched Grande Punto, said a Tata Motors release.
Fiat India is a 50:50 joint venture between Fiat Italy and Tata Motors.
Bank of India offers car loans up to 90 per cent of invoice, for loans up to Rs 10 lakh for tenure ranging up to 6 years. This facility will be available at all metro, urban and semi-urban branches of Bank of India and the 100 sales touch points of the Tata-Fiat distribution network, the release added.
http://www.thehindubusinessline.com/2009/06/16/stories/2009061651580600.htm
http://www.hindu.com/2009/06/16/stories/2009061655801300.htm
http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=258135
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LUBRICANTS & ALTERNATIVE FUELS Go To Top
DEORA HINTS AT FUEL PRICE HIKE TO TACKLE REVENUE DEFICIT
PTI
See this story in: The Financial Express
New Delhi: Concerned at the rise in international crude oil prices, the government is looking at solutions to tackle the widening revenue deficit and one of the options on the table could be raising petrol and diesel prices.
We are seriously concerned about the rise in crude oil prices ... we have to look for solutions, petroleum minister Murli Deora said on Monday.
Deora, who met Finance Minister Pranab Mukherjee on Monday afternoon to present his ministry's Budget wishlist, also discussed the deregulation of fuel prices and asked to restore tax breaks on natural gas production as is given for crude oil.
We appealed to him that the seven-year tax holiday from payment of income tax should also apply to natural gas as is available on crude oil production, he told reporters after the meeting. He also pressed for giving declared goods status for natural gas to end the differential sales tax in states.
Deregulating petrol and diesel prices has been on the cards since the crude oil prices came down by $100 from the historic high of $147 a barrel, a few weeks back. But with the rates climbing again, doubts are being cast if prices can actually be freed.
Crude oil prices are ruling at $71-72 a barrel, a seven-month high. We have to seriously look at solutions... the alternatives before us are raising petrol and diesel prices, asking the government to make up for revenue loss (of fuel retailers) through issuing oil bonds and upstream firms (like ONGC) chipping in, he said. It could even be all of the three as had been the practice till now, he added.
Deora, however, was not categoric in saying if raising petrol and diesel prices was on table. I cannot say that, he said when asked if the government was considering a fuel price hike. State fuel retailers Indian Oil, Bharat Petroleum and Hindustan Petroleum may together lose close to Rs 60,000 crore in revenues if they are to sell petrol, diesel, domestic LPG and kerosene at current rates.
Till last fiscal, the revenue loss was divided among all three stakeholders consumers, oil companies and government equally by way of a small price increase, oil bonds and upstream assistance.
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CRUDE OIL PRICES SINK UNDER $70
AFP
See this story in: Asian Age
London: Oil prices fell under $70 here on Monday as traders cashed in profits from last weeks big rally, dealers said. London Brent North Sea crude for July delivery dropped $1.01 to $69.91 a barrel. New Yorks main futures contract, light sweet crude for delivery in July, sank $1.28 to $70.76 per barrel. Crude oil had soared above $73 a barrel last week, hitting a 2009 peak of $73.23 in New York last Thursday amid hopes of a global economic recovery.
INTERNATIONAL NEWS Go To Top
HONDA MAY MISS INSIGHT SALES TARGET IN US: REPORT
Reuters
See this story in: The Economic Times
Tokyo: Honda Motor Co may fall short of its US sales goal for the new Insight hybrid by a third in the model's first year due to the recession and relatively cheap gasoline, Bloomberg reported, citing a top local executive.
"Given some dramatic change in things, I don't think we'll get to 90,000. At 50,000 to 60,000, we will be just fine," Bloomberg cited American Honda Motor Executive Vice President John Mendel as saying. Japan's No 2 automaker has forecast annual worldwide sales of 200,000 units for the Insight, which went on sale first in Japan in February and in late March in the United States.
Honda<http://economictimes.indiatimes.com/News/International-Business/Honda-may-miss-Insight-sales-target-in-US-Report/articleshow/4657106.cms> expects to sell half of that in North America. A spokesman in Tokyo said there had been no change in Honda's sales forecast.
But Honda Chief Executive Takeo Fukui told media last month that while response to the Insight has been good in the United States, Honda was placing priority on meeting brisk demand in the Japanese market partly due to unfavourable exchange rates.
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SAAB WILL UNVEIL ITS NEW OWNER THIS WEEK
Stockholm
Deccan Herald
Reuters: A source told Reuters last week luxury carmaker Koenigsegg and Norwegian investors had reached a preliminary agreement to buy Saab Automobile, which was put up for sale by its now bankrupt US parent earlier this year.
A Saab spokeswoman said an announcement should come soon.
I think that during this week, chances are good. It could be anytime now, spokeswoman Gunilla Gustavs said.
Saab, which first sought protection from creditors in February and was granted an extension until August 20 to get time to restructure and line up a new owner, said more than 80 percent of its creditors had agreed to write down the value of their Saab debt.
The Swedish carmaker has said it needs $1 billion in financing to see it through the crisis and has asked creditors to write off 75 percent of the companys 10.6 billion crown ($1.4 billion) debt, most of which is owed to GM.
http://www.deccanherald.com/content/8284/saab-unveil-its-owner-week.html
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EU WANTS THOROUGH REVIEW OF OPEL PLAN
AFP
See this story in: The Hindu Business Line
Berlin: EU Industry Commissioner Guenter Verheugen wants a thorough examination of plans to rescue troubled German automaker Opel, which he believes would ultimately benefit Russia, a German daily reported.
"The European Commission cannot allow such a plan to pass automatically, it must examine it from top to bottom," said the German commissioner in an article to appear in Monday's edition of Die Welt.
He said the plan must "truly offer assurances that the business will survive and will be competitive for a length of time."
Opel was bailed out late last month by a 1.5-billion-euro (2.1-billion-dollar) loan from Berlin as well as a promised initial investment of 700 million euros from Canadian auto parts maker Magna, which won the bidding war to take over the struggling firm.
Magna and General Motors, Opel's parent company which has been bailed out by the US government, have haggled over finalising their preliminary agreement.
Under the proposed deal, GM would keep 35 percent of the company and Opel's workers would retain 10 percent. Magna would hold 20 percent, and Russia's state bank Sberbank, which has joined forces in the deal with troubled Russian car maker GAZ, would have 35 percent.
"So far no investor in the world has come forward to continue the activities of GM Europe without public aid, that (shows) the risk for the business is very high," Verheugen said.
"The only ones who incur a relatively low risk by participating in General Motors Europe are the Russians," he added. "They are going to gain access to more modern technologies and can then build up their own automobile industry, suitable for exports."
Verheugen admitted that in the end "the key decisions about the business could not be taken without the approval of the governments in Moscow and Washington."
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ECONOMY & FINANCE Go To Top
RUPEE WEAKENS AGAINST $
The Hindu Business Line
Mumbai: Rupee weakened against the dollar due to negative domestic equity markets and as the dollar strengthened in the overseas markets. The rupee opened weak at 47.72 and weakened during the day to touch 47.9950. There were some stray deals at 48, a level last seen in mid-May. But some dollar selling by the Reserve Bank of India and some inflows from corporates helped the rupee minimise some of its losses. It closed at 47.72, about 10 paise down from Fridays close of 47.6 1. Dollar demand from corporates also put pressure on the rupee, said a forex dealer with a public sector bank. The RBI intervention was to arrest the volatility and to a large extent, he said. In the overseas market the euro and pound weakened against the dollar. In the forward premia market, the six-month closed at 2.77 per cent (2.79 per cent), while the one-year was unchanged at 2.4 per cent.
http://www.thehindubusinessline.com/2009/06/16/stories/2009061651530600.htm
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SENSEX TUMBLES 362 PTS; RIL DOWN OVER 7%
PTI
See this story in: The Hindu Business Line
Mumbai: The Bombay Stock Exchange benchmark Sensex tumbled by 362 points on MOnday on heavy selling by funds, sparked by the Bombay High Court verdict asking Reliance Industries and Reliance Natural Resources to enter into a fresh deal.
The Sensex dropped 362.42 points to close at 14,875.00, dipping below the crucial 15,000 point level after a court asked RIL and RNRL to enter into a fresh deal in a month to provide gas at $2.34 per mmBtu for 17 years.
The 50-share National Stock Exchange index Nifty also fell by 99.40 points at 4,484.00.
A steep fall in Reliance Industries' stock mainly dampened trading sentiment, brokers said. The stock was down 7.70 per cent or Rs 183 to Rs 2,178.80 on the NSE.
Stock brokers said reports of weakening trend at the Asian markets, slipping from almost eight-month highs struck earlier this month, and profit-bookings at prevailing levels by retail investors, mainly dampened the trading sentiment.
Major losers, which dragged the Sensex down, were metals, realty, consumer durables and banking stocks.
http://www.thehindubusinessline.com/blnus/05151901.htm
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INDIA READY TO HELP OVERCOME GLOBAL ECONOMIC CRISIS: PM
Agencies<http://www.indianexpress.com/columnist/agencies/>
See this story in: The Indian Express
New Delhi: Leaving for Russia on his first foreign visit after assuming office for a second term, Prime Minister Manmohan Singh on Monday said India is ready to play its part in coordinating global efforts to overcome the economic slowdown. "India is among the fastest growing BRIC economies, and we are ready to play our part in coordinating international efforts to overcome the ongoing financial and economic slowdown," he said in statement before his three-day visit to Russia during which he will meet several leaders including Pakistan President Asif Ali Zardari.
Singh, who will be attending the Brazil-Russia-India- China (BRIC) and Shanghai Cooperation Organisation (SCO) Summits, said the BRIC grouping has the potential to lead global economic growth. "In fact, global economic recovery is closely linked to the success of BRIC economies".
During his stay in the Russian city Yekaterinburg, the Prime Minister will meet Zardari, marking the first contact at top level between India and Pakistan since the 26/11 Mumbai terror attacks. Referring to the SCO Summit which he would attend for the first time, Singh said "my decision to attend the Summit is a reflection of the high regard we have for Russia's Presidency of the SCO."
Singh said the decision to attend the SCO Summit also reflected India's desire to "intensify our engagement with countries of our extended neighbourhood in Central Asia. Observing that there were several issues which concerned both India and the SCO, he said these included fight against terrorism and extremism and cooperation in areas of energy security, infrastructure development, agriculture, transportation, science and technology and education. "India and the SCO stand to gain considerably from each other through such cooperation," he said.
Singh said during his visit, which was at the invitation of Russian President Dmitry Medvedev, he would look forward to meet and exchange views with world leaders present in Yekaterinburg. On the BRIC Summit, he said the four countries together account for 40 per cent of the world population and 40 per cent of the global GDP. "The BRIC countries have a role to play in promoting the principle of multilateralism in international affairs, and in the reform of the institutions of global governance, including the United Nations, to reflect contemporary realities," he said.
The Prime Minister said that from these points of view, the convening of the first standalone Summit of BRIC was a "significant development". Its main agenda is expected to include the global financial crisis, terrorism and food security. A significant aspect of the visit in Indo-Pak context would be a meeting between Singh and Zardari on the sidelines of the two Summits which may break the ice in bilateral ties. Singh and Zardari will have a brief interaction during which they are expected to talk about bilateral ties and the way forward.
This will be the first highest-level contact between the two countries since the Mumbai attacks last year as India has suspended dialogue till Pakistan takes "concrete" action against those behind the strikes and dismantles the terror infrastructure. The meeting between Singh and Zardari, though informal with no structured agenda, may lead to resumption of bilateral dialogue at some level if the two leaders agree to it. Earlier, Singh had said "there is no other alternative but to pursue the path of dialogue... It is in our vital interest to try again to make peace with Pakistan but it takes two hands to clap."
Singh's attendance at the SCO meet will mark the maiden participation by an Indian Prime Minister in the Summit of the six-nation grouping in which India is an observer. The SCO comprises Russia, China, Kazakhstan, Uzbekistan, Turkmenistan and Kyrgyzstan. India, Pakistan, Iran and Mongolia are Observers. The BRIC Summit is expected to see the four nations discuss issues relating to immediate reform of international financial institutions.
http://www.indianexpress.com/news/india-ready-to-help-overcome-global-<http://www.indianexpress.com/news/india-ready-to-help-overcome-global-economic-crisis-pm/476821/3>
economic-crisis-pm/476821/3<http://www.indianexpress.com/news/india-ready-to-help-overcome-global-economic-crisis-pm/476821/3>
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Last Financial closing
Sensex
14,875.52
US$ spot
Rs.47.66
US$
Y.98.3292
US$ 6 months
Rs.48.38
Yen
Rs.0.48
Euro spot
Rs.66.04
LIBOR 6 months
%
Call
%
GOI sec. 10 years
- - - -
Aluminium (per kg)
Rs.
Aluminium Ingot
Rs.
Copper (per kg)
Rs.
Gold (10gm)
Rs.14,450
Lead (per kg)
Rs.
Mild Steel Ingots (Mumbai)
Rs.
Nickel (per kg)
Rs.
Nickel Cathode
Rs.
Silver (1kg)
Rs.22600
Sponge Iron (per tonne)
Rs.13980.00
Steel Flat (per tonne )
Rs.29120.00
Steel Long GVD (per tonne)
Rs.23265.00
Steel Long BVN (per tonne)
Rs.23040.00
Tin (per kg)
Rs.
Zinc (per kg)
Rs.
Zinc Ingot
Rs.- - - -
Crude Oil (WTI)
$- - - -
Crude Oil (Brent)
$70.01
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